This is a special article because we’re really going to tackle the topic you’ve already discovered in the title.
Yes…! You can become a billionaire from scratch.
There are currently over 2,700 billionaires in the world and that number is growing quickly.
56% of billionaires out there are self-made!
Meaning, that they did not inherit the fortune, instead, they’ve build lucrative companies that got them to where they are right now. Currently, a new person becomes a billionaire every 36 hours.
Why? Mostly because of the internet, access to global markets, the influx of cash in the middle class and what used to be considered developing countries. Before you think you’ve got this in the bag, we have to keep it honest with you and hit you with the truth.
There’s a reason why only 0.00003% of the world population hits billionaires status. Big factors like: education, infrastructure, access to capital, desire, IQ, EQ and even luck, all play a major role in this.
And throughout this article, we will analyze the situation where most of these align for you just the right way. Follow this structure and even if you fail, you’ll still end up a multi-millionaire!
With that said… here are the 15 steps to becoming a billionaire from scratch!
01Start Super Early
Some people have what is considered the entrepreneurial gene.
Elon Musk sold his first piece of software when he was 12 years old. Warren Buffet made his first stock investment at the age of 11. At 12 years old, Mark Cuban was selling garbage bags door to door. Richard Branson started his first business at 16. And we can go on like this forever…
If you don’t have a rich father to give you a small loan of 1 million dollars, you’ll have to earn your first million yourself. The sooner you start the bigger the advantage you have, because you’re learning the most valuable lesson in business:
How to get people to give you money?
Think about it like this: it will take a couple of years before you identify a business that has a chance of success. Then with hard work it will take roughly 7 years for the business to mature. If you start when you’re 16, by the time you’re 25, money is no longer an issue.
If you’re a teenager, your time is now!
If you’re older than that, you just have to push yourself harder for the time you wasted.
02Educate Yourself Constantly
Books, interviews, documentaries, case studies, analyze other people’s businesses, analyze how other successful people behave and then emulate everything you learn.
Fortunately for you, quality information is cheap or even free.
Take yourself seriously and invest in books, audiobooks and anything that builds up your skillset. The quicker you are able to build skills in your inner-portfolio, the sooner you will be able to leverage them to accelerate your growth.
In this phase in your life, you need to master the fundamentals: becoming a self-learner, how to self-motivate, self-discipline, time management, sales, how to talk to people, how to build things, how to market, how to scale, how to manage people, how to speak & understand money.
Nobody can take away what you learn!
This is why investing in yourself pays the best dividends.
03Fail Quickly, But Keep Moving
You will fail and this is a fact.
You are too early in your journey, you don’t have enough knowledge, you don’t have enough skills, you don’t understand the markets or the consumers well enough and you don’t yet have people to guide you or save you.
Resilience is key!
The only way to become a billionaire, especially when you’re starting from scratch, is to absorb as much information as possible and transform it into actionable wisdom!
Do not be afraid to fail and do not give up if things don’t go your way.
LEARN! ADAPT! OVERCOME!
Every time you’re faced with a challenge, the market is testing your ability to perform. Failure is not the goal, but it’s part of the journey!
04Sacrifice Your Social Life & Work 80–100 Hours Per Week
We told you we were going to keep it honest. You simply can’t do both.
Building a solid business will require you to put it way above everything else. It will take so much energy, so much drive that there simply isn’t room for anything else.
This is the price you have to pay to escape mediocrity!
Just like a rocket, you’ll have to burn most of your fuel trying to escape the gravitational pool.
Working 40 hours a weeks is survival income! It will keep you fed and warm, but it doesn’t bring that lifestyle you’re looking for. The time you put in over that goes to your success. Relationships, family and sometimes even health will suffer in the process and there’s still a massive chance that you’re not going to make it.
This is why most people never do!
They’re not willing to pay this high of a price and it’s understandable. You can still be like everyone else and be happy. It’s your call to make. At the end of the day, this is one of the few things that is 100% your control.
05Build & Grow Your First Successful Business
In the first 10 years, you learned a bunch, you studied success in many forms, you understand how the market is changing. Inevitably, you’ve identified businesses that are within your reach and took that idea to the market.
Initially, you put a lot of work in yourself, then you started bringing people in. Money starts flowing in and you can start making moves. You test different strategies, different products. Some work, some don’t. You learn from them. The years go by like a roller-coaster!
You either having the best year of your life, or you’re thinking about quitting!
Every successful entrepreneur knows this feeling all too well! Yet you push through and half a decade later, you’re doing ok.
The temptation to spoil yourself is stronger and stronger than ever, but remain disciplined. You reinvest almost everything into the business and it continues to grow. You have a good understanding of how big this can get and what needs to be done in order to get you there. You have successfully matured yourself as a business person!
06Leverage Your Newfound Success To Meet Influential People
On the road to success, you’ve met several people who share the same drive or the same motivations as you.
They’re doing their own things but you share a sense of brotherhood because everyone goes through more or less the same struggles. These are the only people who to some degree understand you and they become your network. Some of them will become future business partners, others will be your mentors and some will open doors you’ve never seen before.
The power of this network is massive.
They will help you navigate life, they have contacts of their own, they’ve done mistakes of their own and the same as you, they’re more than open to share with the group.
You might have heard the term MASTERMIND before.
It’s when smart minds come together and help each other creatively solve problems… only that in business, the payoff is more monetary. The network you build around you will determine how quickly you move through wealth levels.
07Sell Your First Business, Become A Multi-Millionaire
You started with almost nothing and you’ve put years, sweat and tears into the business that’s now quite valuable.
It’s time to let it go…
It is incredibly rare for people to achieve billionaire status from their first few businesses, even in the technology space. In order to tackle big issues, you need money and you need people to trust you enough to give you that money!
Selling your first business is like building a past performance portfolio. It shows people that you can take an idea and execute it flawlessly until completion.
If you did everything right, a 7 figure payout should be within reach.
Everyday 1700 people become millionaires in the Unites States!
If previously geography played a decisive role in your success, as of 2020 you can no longer use that as an excuse. A laptop and an internet connection is the minimum barrier of entry in this race and considering you’re consuming this piece of content right now, you’re way past it.
Here’s the deal:
A million dollars is no longer a lot of money! It’s just a mental milestone you need to pass in order to move into real money territory. You have to enter this stage as quickly as it is legally possible.
Only at this point, you can finally start your race to 1 billion.
08Build A New Innovative/Disrupting Business
As you move into this new level of business, you’ll discover things are quite different. The stakes are higher and now you’re competing with the big boys.
They have all the money in the world, they have the infrastructure and you’re just a cockroach who’s trying to take some of their breadcrumbs. But, because you have your network, you have your track record, you now have access to other people’s money.
The only way to compete with the big boys is to be creative!
You can’t challenge them head-on, because they can bury you. You can’t do it cheaper and you don’t have access to the same resources as they do. Your best bet is to leverage your creativity and the latest technology available.
Statistically speaking, big business isn’t as agile and quick to adopt new tech, this is your window of opportunity. Plus they’re stuck in an old way of doing things because it worked for them for so long.
Quick reminder: Airbnb wasn’t invented by Hilton or Marriott.
Solve a problem, but in a new more efficient way leveraging modern-day tech. Have a look on the article below after completing this article:
Fix the following — If you want to be a BILLIONAIRE
If you want to be a billionaire, here are 15 problems you should solve to get there!
09Expand Quickly & Aggressively
The moment you prove that your solution works, the race begins. It’s a race, between and how much the market you can acquire, before big business catches up.
This is why Elon is so aggressive with his electric cars, Volkswagen and Ford are breathing down his neck, so he needs to secure his position as a big player before they retrofit their production line.
This first mover advantage applies to every industry and it’s usually driven by social and technological change.
The model is simple: Prove the solution works, expand in new geography and use the money to come up with new solutions.
This is usually where businesses raise a second round of investment at a massive valuation that allows them to really have an impact. And based on the goals of the founder we’re faced with the following choice:
10Either Get Acquired Or Try To Build A Monopoly In Your Niche
The big boys are interested in what you’ve built, so they’re offering you buy you out. This is where Facebook pays $1 billion for Instagram or $19 billion for WhatsApp.
Again, this applies to every other industry as well. The moment you start making waves they start doing the math. It’s your choice if you want to sell or if you plan on beating them at the business game.
But you should know that they will come after you with everything they got. Look at Snapchat turning down $3 billion from Facebook, because they wanted to be the next Facebook.
If you go with the second route, execution is your only option. Yahoo! had the option to buy Google 2 times but failed to do so. First time for $1 million in 1998 and the second time for $3 billion in 2002. But because of their ability to execute, Google is now worth almost $1 Trillion.
So how do you become a monopoly in your niche?
- You Buy Out Your Competitors — That’s why every mammoth out there is on a shopping spree right now, from big tech companies to fashion retailers, everybody is buying.
- Make Your Competitors Redundant — This is done either through economies of scale, where they can’t compete in pricing. Meaning you simply can’t produce the same good cheaper than I can — or through technological innovation. Like, if you’re the iPhone to their Blackberry or if you remove their competitive advantage — the same way Facebook’s Insta-stories did with Snapchat.
11Focus On Big Ideas That Impact A Lot Of People
In order to build a multi-billion dollar business, your product or service will need to impact a lot of people. That’s just the facts.
The top 5 industries with the most billionaires are as follows:
- Finance & Investments: 310 billionaires; 14%
- Fashion & Retail: 235 billionaires; 11%
- Real Estate: 220 billionaires, 10%
- Manufacturing: 207 billionaires, 9%
- Technology: 205 billionaires; 9%
Basically, these are the industries that create everything you touch, use or wear. They shape reality. They build your cities, they finance the companies building cities, creating your clothes, the items you use and the digital services required to live a normal life.
5 billion people have a mobile phone. They all paid for their devices. They all use them to access the internet. At the end of the day, making a billion dollars is a rather simple math problem.
How can you extract $1 from a billion people? Or you can take $100 from 10 Million people? Or $10,000 from only 100,000 people. See where we’re going with this? To get handy with these calculations, give a look to:
MILLIONAIRE MATH: Explained
Millionaire Math: The way rich people think about making money!
As the general population gets richer, you will see prices steadily go up. The best indicators are the costs of homes and smartphones.
12Invest In R&D/ Hire The Best Talent Money Can Buy
Staying relevant in a big boys game is incredibly difficult because there’s always a new innovative company coming for what you have while you’re busy holding your own versus your direct competitors.
The only way to keep yourself ahead of everyone else is to innovate. You’ve heard the term before but what does it really mean?
Innovation is the ability to connect the dots of reality in a never seen before way that adds value.
You can innovate in many ways. Take a concept that works in another industry and adapt it to your own. Innovate in design, in experience or come up with something the world didn’t know it needed.
The light bulb didn’t come as a result of incrementally improving the candle!
A company is only as good as the people who push it forward, and you need all the help you can get.
13Go After The Big Bucks
Remember the billion-dollar math we did earlier? Here’s a super valuable piece of advice:
Go where the money is!
If you’re going to work anyway, why wouldn’t you go after the big piles of money.
A great example of everything we mentioned today is a company by the name of UiPath. They’re building the AI bots that are doing repetitive tasks for companies.
Take a moment to think about it. How many accountants are there in the world? What is their economic value? How much are companies paying the entire accounting machine, from clerks, to invoice management, to data entry and so on…
Solve this problem once and then you take it to every big player who needs your solution.
Write this down:
A Transaction happens when the price paid is lower than the perceived value!
As long as you understand this, you will make money!
If humans are costing a bank $100 million per year and you offer a solution that does the same job for half the cost, congrats, you just earned yourself the contract.
UiPath went from 1 million to $100 million in yearly recurring revenue in less than 2 years. The company is now worth over $7 billion and growing quickly.
What is the fundamental way they did it?
They solved a problem for the people who have the means to pay for it!
14Secure Your Wealth — Diversify
Assuming everything has worked out in your favor, you are now finally rolling in money. Your shares in the company are worth a lot, you’re trending, people are looking up to you, it’s time to start taking money out and secure your wealth.
Invest in what you understand — buy land, real estate, art, shares in other companies, anything that’s long term.
Congratulations! You’ve made it.
You’re no longer just a paper billionaire. The moment your solid assets surpass $1 billion, you have secured your position as a billionaire. Your wealth is increasing so much every year that you no longer know what to do with the excess capital you have.
You can start foundations or help charities change the world for the better. You can divert some of the money your investments are making to research or whatever you feel passionate about. You’re surrounded by the right people, who make sure you get every deductible possible so that the wealth is secured.
Now, it’s up to you on what you want to do next…
15Bankroll Super-Business Savvy Individuals Or Do It All Over Again
Remember when you had all those creative ideas before you managed to conquer the world? Find people with the same spark you had in yourself and help them do the same.
That’s what venture capital funds are all about. They are the driving force behind the change-agents that are shaping the world. Governments have fallen way behind on innovation and at this moment in time, the private sector is what’s pushing humanity into the future.
If you still believe you have what it takes, do it yourself, dream bigger than you’ve ever dreamt before.
You want to cure the world of diseases like Bill Gates is doing? Do that!
You want to mine asteroids? Go do it!
You want to solve immortality! Give it a shot!
Take 1 million people to form a colony on mars? Why not?
We need billionaires who have the resources and the vision to push humanity into the next phase. We are reaching unprecedented levels of wealth and innovation ability. Humanity as we know it is on the brink of evolution. You can either be a driving factor or just an observer!
If you look at almost every self-made billionaire on the Forbes list, you will find that almost all of them follow this exact framework we have described for you.
And readers, looking back on what it takes to build this kind of wealth: Do you think the sacrifices are worth it?
Everyone wants to be a billionaire because it’s a round number. It’s the equivalent of “A LOTTA MONEY”, but at that stage, your wealth is just a number on a screen.
What most people really want is what comes with the idea of never having to worry about money again. Instead of billionaire status, we recommend you set a realistic goal of becoming a High Net Worth Individual.
These people have a fortune between 15 and 50 million dollars. If you’re smart, that’s more than enough to feel secure and enjoy a rich lifestyle.
No, you don’t have 2 private jets, but you’re super comfortable renting one whenever you need. You have solid investments that are covering every reasonable expense and you’re still left with more. If you chose to, you could stop working for the rest of your life and you would be fine.
We know you dream of retiring on a beach sipping mojitos, but surprisingly, it gets boring really fast, especially if you’re the type of person who built his fortune from the ground up. You can never really stop your mind from being what it really is — the mind of an entrepreneur!
Only this time, you’re solving business problems just for the challenge of it all. That’s where we wish all of you to become: So rich, that you solve problems just for fun!