- More than 90% of small businesses
never pass the one million dollar revenue mark.
(upbeat music)
Most small businesses make less
than million dollars a year.
Why is that?
How entrepreneurs actually get rich
and make a lot of money?
I think first of all, most people, they're confused.
They don't know the difference between
a business owner and an entrepreneur.
When you ask a business owner what do 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 mom is still trying to figure out
exactly what do I do to make a living, okay.
It is, sometimes my mama's friends ask her
what exactly does your son do?
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 do 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,
try to get into, you know, mobile phone,
and all these different things,
because as an entrepreneur, what we do...
If you talk to 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.
Interesting.
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 innovate 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.
10 years later, you ask them what do you do,
well I own an plumbing business.
Kinda same ol' same ol.
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 off in the beginning
as a 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're 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 30%, everything sells through the App store,
they make 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, a friend of my house,
I see the Disney Cruise all the time.
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?
Comment below if this makes sense to you.
That's what I'm talking about.
That's how entrepreneurs really get rich.
Now, with what about your business?
On a small scale, what I'm talking about is
ask 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.
Until next time, I'll see you in my Bentley.