Why You Need to Make Your First $100K
Summary
- When you have fewer resources, you have access to fewer opportunities. This is a tough reality, but it's true.
- Panda Express made $3.7 billion in sales last year. The owner can buy a building for a billion dollars, flip it, and make another billion. Most people can't do this.
- To get to a position where you have more opportunities, focus on making your first $100,000. Charlie Munger suggests doing whatever it takes to achieve this.
- Once you have $100,000, you gain more leverage. Your efforts will yield much higher returns than before because you'll have more resources at your disposal.
- Initially, you might have to rely heavily on your time and effort. Resource constraints mean you can only do so much, and this limits your growth.
Video
How To Take Action
I would suggest implementing strategies to focus on making your first $100,000. This is your key to unlocking more opportunities and leverage. Here are some low-cost, high-value actions to get there:
Prioritize Your Biggest Opportunities: Look for ways to maximize your current resources. Identify what brings in the most money with the least investment of time and effort. For example, if a certain product or service is more profitable, focus on that.
Cut Unnecessary Expenses: Live lean. If it means eating ramen noodles for a while or walking instead of driving to save on gas, do it. This will free up more resources to reinvest in your business or personal growth.
Bootstrap: Use your own funds and reinvest profits back into your business. Avoid taking on debt unless it's absolutely necessary and has a clear, quick return on investment.
Hustle and Grind: Early on, your time is your biggest asset. Work harder and smarter than others. If you need to work odd jobs or spend extra hours to make things happen, do it.
Network: Leverage your connections. Sometimes opportunities come from who you know, not what you know. Building relationships can open doors that would otherwise be closed.
Learn Continuously: Invest time in self-education. There are tons of free or cheap resources online that can give you the skills you need to succeed.
- Be Ready to Pivot: Always be on the lookout for better opportunities. If something isn’t working, don't be afraid to change direction quickly.
By focusing on making that first $100,000, you’ll give yourself a much stronger foundation to build upon. Once you're there, the opportunities and leverage will come more easily, making it a lot simpler to scale up your operations.
Full Transcript
the tough Parts about reality is that the things that you have access to when you have fewer resources are less than the things you have access to when you have more resources just to give you context Panda Express I think last year did 3 or in 2021 to 3.7 billion in Topline sales Mr Panda can go buy a building for a billion dollars and flip it for $2 billion in a year or two and make a billion dollars and you can't do that not right now but you do have things that could get you there which is why Charlie Munger talks about how do whatever you can do big borrow steel eat ramen walk with your lunch pail both directions do whatever you have to do to make your first 100,000 because he knows that once you get that you can actually get a little bit more leverage in terms you get way more for what you put in because you can't only put your time in cuz it's so limited in terms of how much you can do
