Eric Olson, One Hundred Million Dollars, Eleven Years discussed on Journey to $100 Million
Hey there I'm Eric Olson in I'm Kevin days. Join us on our journey to building a one hundred million dollars company. Hey, everybody. It's eric. Have you ever made a costly mistake? My guess is you have. But I bet it was not a one hundred million dollar mistake. Several weeks ago when we were thinking about going to a hundred million dollars, and we had just kind of announce it to the world. And maybe even after a couple of podcast episode, come Allah. We were like, yeah, we're going to do it one hundred million dollars. I thought well what's gonna actually take to get two hundred million dollars? Like how much do we have to sell? How fast we have to grow? We're going to try to do this by twenty thirty. What does it really mean? As far as growth are we talking about tripling the size of the company every single year doubling the size? And so what I do. I sat down and I created a complex spreadsheet. And in the spreadsheet, I said well at the time where it will million dollars a little bit more now, but then it was one million dollars, and we had to get to one hundred million dollars, and we had eleven years, and I brought that up in two months SO, I figured well. If we increase by this much every single month, and since this recurring revenue issued add on top of itself. So let's say we bring say a thousand dollars in the first month will and the second month we bring in thousand dollars again now up to two thousand dollars the third month we bring in one thousand dollars third time. Now, we have total of three thousand dollars. There's a cumulative effect over time, and we had eleven years times twelve months, and that's too much math for me to do right now. I don't know hundred thirty two that's close. If that, correct. So we had a hundred and thirty two months to actually build up this revenue. So I laid out this big spreadsheet and. And I did that we needed to bring an extra twenty six hundred dollars in new monthly recurring revenue every single week in order to achieve a hundred million dollars at the end of that time period, and I actually publish that information. I think I did a podcast episode about it. And I was very proud of myself or calculating that. A some point. I went back, and I looked at it. And I started to kind of question the logic. And I realized I had made a mistake. I had made a big mistake. What I was doing was always adding up all of the money that we would have earned between then and twenty thirty so summing it all up equal one hundred million dollars. That's a lot different than earning. One hundred million dollars in your twenty thirty which is really the goal. The goal is not to earn one hundred million dollars in the next eleven or twelve years. Then there's a big difference. Matter of fact, in order to earn a hundred million dollars over the next eleven years. What that means is into thirty will be an eighteen million dollar company. So think about it this way say like a million dollars in two thousand eighteen two million two thousand nineteen four million two. Thousand twenty cetera Oli up to twenty thirty eighteen million dollars. When you add all that up for every single year. That was one hundred million dollars was the answer. I got and it was wrong. It was a big hundred million dollar mistake. When I realized that and recalculated the numbers were huge. It was something like there was so big that even save the file it was like fifty five thousand dollars a week in revenue or maybe per month. It was a big big way bigger number than we could achieve saw realize that model was wrong. I had made a huge mistake would also realize that is going to be very difficult for us to grow by having a linear amount of new revenue coming in every single week or month. The reality is there's going to be stacking affect if we bring in twenty five hundred dollars per week in new month recurring revenue which is about what we're doing right now that won't be acceptable in five years in five years, and he's be ten or fifteen or twenty thousand a week. The numbers all the numbers are going to get bigger, including how much we bring in. There's also going to be an inorganic component buying companies and foreign them into digital. This is way more complicated of a situation than I originally suspected. It's not gonna be just bringing the same on of money every single week for the next eleven years way, more complicated. I made a huge mistake. I don't know what the answer is yet. But I know that it's not a steady stream of income is going to vary over the years. Thank you for listening. I hope you heard something you can implement in your business right away. Finance online at journey to one hundred million dot com.