Out of all the budding entrepreneurs that I’ve spoken with over the past 10 years, they’ve all had one thing in common…a desire to become a millionaire!
For one reason or another, we’re all very fixated on hitting the arbitrary number of £1 million when it comes to our net worth. Whether that be because it means we can finally afford that Lambo that we’ve always been dreaming of, fly business class to whichever destination we choose, or just have the financial freedom to do what we want when we want, it doesn’t really matter – hitting the £1m mark is an important milestone that many people aspire to reach, which for some, might seem so far away that it appears completely unachievable.
As somebody that has crossed the arbitrary milestone of £1 million and learnt some important lessons along the way, I wanted to break down what I feel are the 5 key components that got me to this point, which you can learn from & then implement in order to boost your own earnings and hopefully get you to that 7 figure target.
1: Having Your Own Business
Multiple studies have shown that the majority of the world’s richest people accumulated wealth through creating & running their own businesses. Of course there are plenty of people that have become millionaires from working for others, but the reality of the average person being able to do this is pretty slim.
Instead, you have much a better chance of substantially increasing your own earnings by setting up your own business and then working for yourself. The majority of my net worth has been earnt over the past 4 years, which, unsurprisingly is also the amount of time that I’ve been running the various businesses that I own.
Starting your own business might seem like a scary and overwhelming thing to do, and to be honest – when you first do it, it is, but the freedom, flexibility and unlimited earnings potential that it offers is something that you can’t ignore. Regardless of whether you think you’ll be earning 1k or 100k a year from running your own business when you first start, it doesn’t matter – once you see that you’re capable of making money without having to depend on or answer to anybody else, it will change your entire perception on the art of the possible..and if you’re anything like me, it will help to remove any anxiety that could be caused by the thought of losing your job and not having any money coming in through the door.
Don’t fall into the trap of thinking that your first business venture needs to be the one that makes you rich – thinking this will just mean that you waste time overthinking what it is that you want to do, which is likely to result in your giving up all together and continuing with your day job. Just find something that you’re interested in that is making other people money, and start. Popular ideas for you to research further could include Amazon FBA, Dropshipping, Copywriting, Social Media Marketing, and Video Editing… and this is just a small sample – the opportunities are endless. Just get something set up so you can start to understand the benefits of being a business owner and increase your chances of becoming a millionaire.
2: Doing Something You’re Passionate About
If you were to ask most of the world’s millionaires about how many hours they work a week, their answers would probably surprise you.
Jeff Bezos previously said that he worked 12 hours a day, 7 days a week when building his Amazon business, and Elon Musk has tweeted in the past that he works over 16 hours a day every day of the year.
In terms of my work schedule – whenever I’m at home I’ll typically be in the office ‘working’ on one of my businesses, rather than sat around watching TV or scrolling mindlessly on my phone, and that usually includes a couple of weekends each month too.
There’s a common habit here in the examples of myself, Bezos and elon musk – and it’s not just that we all work hard – what I think is the more important factor is that we’re all working hard on things that we feel incredibly passionate about, which is building our own businesses.
For me, despite the fact that I work on my businesses pretty much every day, because I’m so passionate about what I do, it doesn’t feel like work and so it’s not a chore – in fact I really enjoy it, and because of that I don’t mind sacrificing hours of TV and Facebook time in exchange for working on my businesses in the evenings and at the weekends.
Millionaires typically get to where they are because of hard work, focus & commitment, all of which is made far far easier because they are truly passionate about what it is that they’re building. If you’re looking to earn money from doing something that you just don’t enjoy – whether that be a job that you have or your own business – then the odds of you working late into the evenings and at weekends are going to be low, which limits your earnings potential.
If you want to start a business and become rich, find a topic that you’re passionate about and then think of how you can monetise it. When I first came across the opportunity of Amazon FBA, I was immediately intrigued because I’ve always enjoyed the thrill of making money from buying and selling products, so I knew that running an Amazon FBA business was something that I would enjoy working hard on. Four years after starting, I’m still in love with this business model, and whenever I work on building my business – whether it be 10pm at night or all day on a Saturday, it doesn’t feel like work for me, it feels the exact same as me watching TV or funny videos on TikTok.
Now I’m not saying you cant take breaks or relax or do other fun things, but the reality is that most millionaires will spend a higher proportion of time ‘working’ than they did before starting their own ventures, so earning money from doing something that you’re passionate about is essential, because it will make the hard work, determination & commitment needed for success far easier to do than if you’re doing something that you hate.
3. Entrepreneurial Mindset
Every self-made millionaire has an entrepreneurial mindset, which means that they’re willing to take calculated risks, they’re resilient, and they’re not afraid of failure. In fact, to them, failing and giving up is simply not an option.
One of the most common reasons that people don’t ever start a business venture or money making scheme is because they don’t possess an entrepreneurial mindset, which is essential to have. When I first started my Amazon FBA business, I knew that it wasn’t risk free and there was a possibility of failing, but I didn’t let this put me off from starting. The more invested I became in the idea of being able to provide myself with a substantial amount of additional income, the more determined I was to succeed. I knew that if I didn’t succeed at any point, I would dust myself off, learn from my mistakes, and then give it another go until I got it right.
With every business that I’ve run I’ve experienced problems and set backs of some sort, and some of these problems at times have made me question whether continuing was even worth it. But retaining an entrepreneurial mindset and refusing to accept failure allowed me to bat away any doubts that I’ve had when times got tough, which has ultimately allowed me to build multiple 7-figure businesses.
If you’re in a position where you’ve started a venture but haven’t made much progress due to fear of failing, or you’re desperate to get yourself to a position of being financially free, then the first thing you need to do is work on adopting an entrepreneurial mindset.
Write down your goals & ambitions and when you want to achieve them by, and start to get into the mindset that failure is NOT an option and that taking calculated risks is ok. Once you’ve done that, you are far more likely to stay committed to your goals, start your money making venture, and hopefully one day hit that 1 million milestone.
4. Diversification
Every strong entrepreneur looks to give themselves as many income streams as they can, and they do this for 2 key reasons. The first is to increase their earnings as much as possible, giving them control, financial freedom and a better quality of life, and the second is to reduce the risk of this freedom disappearing if one of their income streams stops or reduces significantly for whatever reason.
The difference between a millionaire and the average person on the street, is that millionaires have multiple streams of income, whereas the average person typically has just one – which is their job. The issue with relying on one income stream such as your job, is that it ends up controlling you because you can’t afford for it to be turned off, meaning that it effectively dictates how you live your life.
Millionaires choose to have multiple income streams because they know that doing that means that they don’t have to rely on a single earnings source for money, giving them direct control over their lives. If they change their minds about having a particular earnings stream and want to quit, then they can do, because if their other income sources are big and diversified enough that their quality of life shouldn’t have to change.
The average millionaire has at least 7 income streams, and over the past 4 years that’s something that I’ve been very focused on giving myself, because I understand that if I really want financial flexibility and to be free from being forced to work for somebody else if I don’t want to, I need to be diversified and have as many earnings streams as I can.
From a skillset that I’ve learnt & developed entirely online, I’ve been able to equip myself with 6 different income streams, which includes income from selling products on Amazon, coaching, copywriting, affiliate marketing, investing, and renting out a property, and all of these combined have allowed me to substantially increase my earnings and to free myself of the need to work for somebody else if I don’t want to.
No matter how small or inconsequential you think an income stream may when you first start, if it’s available to you and it has the potential to be grown over time, my advice is to go for it. Some of my biggest monthly income streams today started out at £10-20 a month, so keep that in mind and remember the proverb: mighty oaks grow from little acorns.
5. Re-Investing
Whilst its tempting to start spending profits on eating out and buying nice clothes as soon as you start making money, wealthy people all have one thing in common: they reinvest their profits as much as possible.
Reinvesting profits might seem like it’s a boring task to do, but doing this as much as possible is going to really accelerate your potential to earn substantial amounts due to the effect of compounding. If you start with £1,000 and make £500 profit from selling products online, think of how much more profit you’ll be able to make the second time around when you buy £1,500 worth of products to sell, rather than taking the £500 to spend on rubbish, and then just starting with £1,000 again.
Or if you make £20,000 of profit each year from your side hustle, imagine how much wealthier you’ll become over time if you re-invest this annual amount into the stock markets, which historically has provided returns of 10% per year on average?
Rather than using profits to buy random things that they don’t really need, millionaires instead have a habit of purchasing income generating assets with their money, effectively getting their money to earn them more money, which is something that I’ve tried to do as much as possible since I first started earning from my own businesses.
Whilst I’ve made a good amount of profit from both my Amazon and coaching businesses, I’ve not really taken much out to enjoy personally because I know the value of reinvesting my profits in order to grow and scale my earnings even higher. So instead of buying myself a fancy car or nice clothes, I’ve invested into more products to sell on Amazon, the stock market, crypto, property and so on, all of which have allowed me to substantially increase my net wealth compared to if I was paying myself a salary each month to spend on items that I didn’t really need.
Of course I will treat myself now and again, but for me, it’s more important to focus on building as many income streams as possible, re-investing into each of them, ensuring that I retain as much financial freedom as I can.
So If you want to get into the 7-figure club you’ll need to adopt the same mindset as its members when it comes to what they do with their money – invest in income generating assets where possible, and delay purchasing non-essential items until you’ve achieved complete financial freedom.
6. Networking
Every successful millionaire has a very strong network of people around them, because they understand that your network helps your net worth. The more people that you can connect with that have similar aspirations and goals to you, the more likely it is that you’ll stay motivated and succeed.
Since I first started learning about Amazon FBA in 2017, I’ve met hundreds of people all with similar interests and goals, and this has undoubtedly helped me to get to where I am today. Surrounding myself with these type of people has taught me new skills and outlooks, put me in contact with specialists that have helped me to grow my business, and generally speaking, kept my motivation high when times have been tough and I’ve needed some support.
The benefits of Immersing yourself in a strong network of people should never be overlooked if you want to be a successful businessperson, and every strong entrepreneur understands this. So if you haven’t already, join Facebook Groups, follow relevant people on Twitter, and start building a network that will undoubtedly help you to increase your net worth and become as successful as possible.
Conclusion
Whilst hitting £1m in net worth can feel like a bit of an arbitrary milestone to some, what it does demonstrate is that the person who has hit it is dedicated, motivated & passionate about what they do, and that they in all likelihood have the financial flexibility that many desire, improving their quality of life massively.
Whether you’re just looking to give yourself the financial freedom to do what you want, or you simply just want to make as much money as possible, I hope you’ve learnt from the points that I’ve learnt over the past 4 years, and you can implement them and use them to supercharge your own net worth as much as possible.
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