We’ve all heard the platitude, ‘If you fail to plan, you plan to fail!’, but rarely do you hear anyone tell you how to plan. The question is: can one really plan to make a million dollars and actually do it? if so, how does one do it?
The Principle of the Tenth Multiple
Thanks to the TV show, “Millionaire”, just about everyone on the planet now understands the ‘principle of the tenth multiple’, which simply states that if you can double a thousand dollars ten times, you will have a million dollars, i.e. $1,000 becomes $2,000; $2,000 becomes $4,000; and so on…and after only ten doublings you would reach a million dollars. On paper it’s real simple, but in real life how does one actually do it?
How one accomplishes this depends on the individual. Anything of value can be bought and sold. Whether it be stocks, bonds, real estate, autos, boats, antiques, or anything else of value, it can be bought and sold (hopefully at a profit). Depending on the interests, knowledge and experience of the individual, a business model can be developed, identifying a commodity (or value-added service) which can be bought at a price that allows it to be sold for a profit. Once a successful (profitable) trade has been made at the thousand dollar level, then one simply doubles up and makes progressively larger and larger deals, basically doubling each time. It is best to make mistakes, if any, early on at a relatively low level of investment.
This Million Dollar Plan also provides a method of assessing tolerance for risk and levels of patience. For example: At an annual return of 10%, it requires 73 years to fulfill the plan, starting with a single thousand…too long for most folks. Similarly, @15% return it requires 50 years; @20% takes 38 years; @40%,21 years; @60%,15 years; and @100% annually it would require only 10 years to reach the million dollar mark.
Historically what sort of investments have yielded those kinds of returns? In the stock market, the Standard & Poors Index has averaged an 11% annual return for the last 70 years. Investors in real estate tax liens have traditionally received 12%-!5% annual return. Using the power of financial leverage real estate investments can frequently bring annual returns in the 100% range.
The Entrepreneurial Team
Our Team assists the client in developing a business model that fits their own unique personality, interests, experience, education tolerance for risk and patience. We are prepared to roll with whatever level the client feels comfortable.
After (1) the Strategic Plan is Developed, the emphasis then shifts to: (2)Executive Development and, finally: (3) eCommerce/Social Media Marketing, which is ‘where the rubber meets the road’ in today’s business environment. For more information and/or a free consultation, call or email: email@example.com
Darrell “Duke” Runyan, CEO
Runyan Management Group(RMG)