12 Months to $1 Million

1. Define Your Core Customer and Build a Brand Around Them

A brand is trust. A brand is an expectation that the customer will be happy with his or her purchase. A brand is something built by creating a group of products that all serve the same person.

Identify your ideal customer. This is the foundation of your business. Rather than trying to appeal to everyone, focus on a specific group of people with shared characteristics, needs, and desires. This targeted approach allows you to create products that truly resonate with your audience.

Outline multiple products for your core customer. Identify 3-5 products that your ideal customer regularly buys. This ensures you're building a brand, not just selling a single product. Consider:

• What products does your customer need at different stages of their journey?
• What complementary products naturally fit with your initial offering?
• How can you solve multiple problems for the same customer?

By focusing on a specific customer and creating multiple products for them, you're laying the groundwork for a sustainable, scalable business that can potentially reach millions in revenue.

2. Choose Your Gateway Product and Stack the Deck for Launch

If you listen to podcasts, you've definitely heard an ad at some point for one of the following: Casper Mattress, Blue Apron, Harry's Razors, Stitch Fix, or Brooklinen.

Select your first product strategically. Your gateway product should be the natural entry point for customers into your brand. It should solve a clear problem or fulfill an obvious need for your target audience. This initial product sets the tone for your entire brand and opens the door for future purchases.

Build anticipation before launch. "Stacking the deck" means creating a small but passionate audience before your product is even available. This can be done through:

• Documenting your product development journey on social media
• Building an email list of interested potential customers
• Engaging with your target audience in online communities
• Collaborating with micro-influencers in your niche

The goal is to have a group of people eagerly waiting to buy your product on launch day, giving you the initial momentum needed for success.

3. Develop Your Product and Prepare for Launch

If you are not embarrassed by the first iteration of your product, then you aren't moving fast enough.

Focus on speed over perfection. While product quality is important, don't get stuck in an endless cycle of refinement. Launch with a "good enough" product and improve based on real customer feedback. This approach allows you to:

• Get to market faster
• Learn from actual customer usage
• Iterate and improve based on data, not assumptions

Prepare for inventory challenges. Many new entrepreneurs underestimate how quickly they'll need to reorder inventory. Consider:

• Ordering more initial inventory than you think you'll need
• Planning for your next order as soon as you launch
• Building relationships with reliable suppliers
• Exploring funding options to support inventory purchases

Remember, running out of stock can kill momentum, so it's better to err on the side of having too much inventory rather than too little.

4. Launch Your Product and Focus on Getting to 25 Sales Per Day

I have found this formula to be helpful during this process: 1,000 followers + 10 personal contacts + 1 influencer = 100 sales

Execute a strategic launch. Leverage the audience you've built during the "stack the deck" phase. Utilize:

• Email marketing to your list
• Social media announcements
• Influencer partnerships
• Personal outreach to your network

The goal is to create a burst of initial sales and reviews, which will help propel your product's visibility on platforms like Amazon.

Prioritize customer satisfaction and reviews. In the early days, treat every customer like gold. Go above and beyond to ensure they have a great experience. Encourage happy customers to leave reviews, as social proof is crucial for building trust with future buyers. Focus on:

• Responsive customer service
• Personalized follow-ups
• Incentives for leaving honest reviews

Remember, your goal is to consistently reach 25 sales per day. This level of sales proves product-market fit and sets the stage for expanding your product line.

5. Expand Your Product Line to Build a Million-Dollar Brand

Three to five products, at an average price point of $30 per unit, each selling twenty-five to thirty units per day, you have a million-dollar business.

Launch complementary products. Once your first product is consistently selling, introduce new items that serve the same customer base. These additional products should:

• Solve related problems for your core customer
• Naturally fit with your existing offering
• Expand your brand's presence in your niche

Leverage the network effect. As you introduce new products, you'll often see a boost in sales for your existing items. This happens because:

• Repeat customers are more likely to try your new offerings
• New products attract fresh customers who then discover your other items
• Platforms like Amazon recommend related products, increasing visibility

Aim to have 3-5 products each selling 25 units per day. This diversification not only increases revenue but also makes your brand more attractive to potential acquirers.

6. Leverage Influencers and Audiences to Scale Your Brand

If I can spend more money to acquire a customer than my competition, then I am going to win every single time.

Focus on targeted marketing channels. Rather than broad, expensive advertising campaigns, concentrate on channels where your ideal customers already spend time. This might include:

• Niche podcasts
• Relevant YouTube channels
• Specialized blogs or online communities
• Instagram accounts focused on your market

Build relationships with influencers. Start with micro-influencers (10,000-50,000 followers) in your niche. These partnerships can be more affordable and often have higher engagement rates than mega-influencers. To build these relationships:

• Offer value first (free products, exclusive content, etc.)
• Engage genuinely with their content
• Propose mutually beneficial collaborations

Remember, the goal is to tap into existing audiences that align with your target customer, allowing for more efficient and effective marketing.

7. Consider Selling Your Business for a Life-Changing Payday

In early 2019, they wrote Mark a check for $200 million.

Prepare your business for potential acquisition. As you build your brand, keep in mind that selling could be a lucrative exit strategy. To make your business attractive to buyers:

• Focus on sustainable, profitable growth
• Build systems and processes that don't rely solely on you
• Develop a strong brand identity and loyal customer base
• Keep clean, accurate financial records

Understand the pros and cons of selling. While a big payday can be life-changing, selling your business also means giving up control. Consider:

• Your long-term goals and vision for the brand
• The potential for continued growth under new ownership
• How an acquisition might impact your customers and employees

Remember, even if you don't plan to sell immediately, building your business with a potential exit in mind can lead to better practices and increased value overall.

Last updated: August 8, 2024