How to Reverse Engineer $1,000,000

0:00Hey Alex, I'm 16 years old and can you please tell me how I could go from zero to million by 18 years old so I could prove to my family I don't need to go to college? >> Yes. Reverse engineer what a million means. So, is it a million revenue? Is it a million profit? Is it a million over the two years? Is it a million in profit over two years? Is it a million in revenue? So, number one, quantify the goal really discretely. So, let's just say that by the end of 24 months from now you want to exit velocity meaning your monthly revenue run rate is $83,000 a month. All right, so that would put you on pace for a million dollars. Okay.

0:33So, if that's the goal, then we have to sell enough units per month that it equates to $83,000 a month. And so, let's say that you want to sell uh $2,000 a month uh thing to business owners to help them get leads. So, let's say you run meta ads or you do you know clip content for them or you manage their Reddit uh you know reputation online. Pick something.

0:56Uh and say, "Okay, if I have to get to uh $83,000 a month, let's just call it 84. Keep it Keep it nice and simple math-wise. I've got $2,000 a month per customer, then I need 42 customers in order to get my 80 uh $3,000 a month. Okay. Uh in order for me to get 43 customers, uh what do I think uh my churn on that subscription's going to be? Let's assume it's small business owners. If it's small business owner, I'll tell you that the rule of thumb is probably going to be about 5 months is going to be the uh the expected lifetime. So, call it 20% churn. Again, I'm not saying these are good numbers. I'm saying that's what it's probably going to be. So, that means that you have 5 months of 2K, that's $10,000 total in lifetime value for a customer. And so, your sales velocity, which means how many people you need to sell per month, has to equate to $10,000 or rather $84,000 divided by the LTV of the customer. So, if I have 84,000 divided by 10, then I need to sell 8.4 units per month, which is two per week. If we want to round up, we can say three per week. And so, then we say, "Okay, if we have to sell three units per week at that price point, um how many outreach attempts does it take me to get an appointment? And we'd say maybe it's Let's say it's 100 outreach attempts to get an appointment. That would be pretty high. Let's just say it's 100 to get one. Okay, of my opportunities, how many of them do I close?

2:09Uh, I close one out of four opportunities. Okay? Which means I need to do uh, 400 to get one of those sales and I need three. So, I need 1,200 outreach attempts, uh, per week in order to get my goal. And so, if I have 1,200 outreach attempts per week and I've got 6 days that I'm going to be working, let's say you take Sunday off, then you can do 200 outreach attempts per day and then you wait. That's the game.

2:35And so, I think many of you have these goals, but you have not actually broken down what does it take from a numbers perspective and keep going down to from the number to my daily activity. That's it. You just have to connect what you do to this number and then it's just math. If you like this video and you're business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into completely free scaling road map that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so, you can click here and you can check it out.

3:04Again, absolutely free and since your business owner appreciates you and enjoy.