Easy Path to $100k Business
To be successful by Silicon Valley or VC standards, you have to make 10s of millions or 100s of millions per year. Otherwise you're just a cute little "lifestyle" business.
I don't think I'm smart enough to build a $50-100mm company. I do think I can build a $1mm/year business. In fact, making $100k seems quite easy when you do the math.
$100,000 / 12 months = $8,333
Say you sell a product or service for $25.
$8,333 / $25 = 333 sales
If you can convince 333 people to buy your $25 product or service each month, then you've got $100,000 a year business.
I've got 472 friends on Facebook. Imagine I had a monthly newsletter (it could be about anything - programming, personal finance, etc). If all my Facebook friends subscribed to my $25/mo newsletter, I'd make roughly $140k. When you think about business ideas in these terms, it seems totally reachable right?
Here are the types of businesses I tend to focus on:
- a) sale price > $50 (takes only 166 sales/month to make $100k)
- b) > 60% profit margin (high margin)
- c) < $5000 to start (capital efficient, little-to-no upfront costs & small recurring costs)
- d) solution to an identifiable problem (amazing how many ideas start with, "wouldn't it be cool if...", yet they don't actually solve a problem or you overestimate how many people actually have a problem worth paying $X to solve)