More than 60% of small businesses fail and never pass the 1 Cr mark.
Most small businesses make less than 1 Cr a year.
Why is that?
How do entrepreneurs actually get rich and make a lot of money? Let’s figure it out.
How Entrepreneur gets Rich?
I think, first of all, most people, are confused.
They don’t know the difference between a business owner and an entrepreneur.
When you ask a business owner what they do, they will usually say something like –
- I own a plumbing business.
- I own a restaurant.
- I own a flower shop.
- I own a landscaping business.
Whatever business they are in, they will tell you that.
And usually, it’s very narrowly specific, very focused, I do this.
Verses if when you ask an entrepreneur the answer is not so simple.
Right, my wife is still trying to figure out exactly what I do to make a living, okay?
It is, sometimes my wife’s friend asks her what exactly your husband does.
Sometimes, she said he is a digital marketer, sometimes she said he is a blogger and sometimes she said he is an Infopreneur mentor and coach.
It is not so easy to answer, because what we do, as an entrepreneur first and foremost, we make money by execution and by innovative ideas.
So when you ask an entrepreneur what exactly they do, it’s not so easy because there are many things that they do to generate money and revenue.
It’s not so much like oh this is all I do, this is what I do.
And that’s why you see entrepreneurs, we start companies, we grow companies, we turn around companies, we sell companies, and then you find them to do it all over again.
And sometimes in different verticals.
It could be like someone like Richard Branson, and they find that, how come someone like him, the Virgin brand could be in so many different verticals, it could be an airline, it could be in mobile and all these different things, because as an entrepreneur, what we do is different things.
If you talk to an entrepreneur, you could ask them something, and say hey, what are you working on?
And they will say I’m working on this.
And then, three to five months, six months later, you’ll talk to them, they will tell you okay now, from what I was working on, now it’s evolved into this, I’m adding this piece.
And then a year later, two years, they talk to them, they could be doing something completely different.
Now, I’m not talking about the shiny object syndrome, where you jump from one thing to another.
It’s, they’re doing many, many different things, but it’s still within the business.
It’s still within one business.
Now, maybe they could have different businesses, but they are very innovative within that business they’re in.
Verses when you talk to a business owner, you ask them what do you do, well I own a plumbing business. Years later, you ask them what do you do, well I own plumbing business.
Same business. That’s when you know that’s a business owner, that’s not an entrepreneur.
I’ll give you a perfect example, take Apple.
What business is Apple in?
Now, Apple might started in the computer business, right, as a software business.
That’s cool, that’s fine.
And then later on, it evolved into what?
Other types of businesses.
So when you look at Apple, when they launch the iPod, guess now what business they are in?
They’re now in the music business, right?
Now then when you launch the, when they launched the iPhone, now they are in the mobile phone business, right?
And they’re now, with the App store, which they make 20-30%, everything sells through the App store, they make 20-30%, then business are they in?
They’re in the app business.
Now they have this eco-system within what they do.
So if you look at Apple, what exactly, what business are they in,
well, it’s tough to say.
It’s no longer just a computer company, it is much, much more than that.
Now that’s an entrepreneur.
That’s the difference.
You might see they have a business within a business, you might see they have multiple streams of income within a business, or you might see they have this vertical integration, where they own this, and this, and also this, from top to bottom, the chain, you may do that too.
That’s the difference.
And that’s how entrepreneurs really get rich.
It is through innovative ideas.
- How can I make it better?
- How can I add value this way?
- Can I do something like this?
What are some of the things that I do?
You know, even Disney.
What business is Disney in?
Disney is in, oh it’s all, this is a theme park, is it?
What about the Disney Channel?
What about Disney Cruise?
Right, they have the Disney Cruise.
But really, they’re also in the licensing business, they’re in the merchandising business.
It’s not so narrowly focused, or they’re just in this business.
Does that make sense?
That’s how entrepreneurs really get rich.
Now, what about your business? On a small scale, what I’m talking about is asking yourself how can you develop multiple streams of income
within one business?
Not shiny object syndrome, you know how I’m opposed to that.
How can it develop multiple streams of income within one business?
Then, if on a bigger scale, how can I build a business within a business?
How can I add two or three pillars, within what I do to diversify within that business, and innovate, that’s what makes you an entrepreneur?