Thread by @_ScotchBonnet, This is a step by step guide to becoming wealthy (Thread) [...]

This is a step by step guide to becoming wealthy

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Assuming that we’re coming from exactly $0 but with internet access, a phone and a computer. Access to said resources is a privilege but it’s pretty simple to work and achieve that

Here’s what this thread won’t be:
A bullshit guide on how to live extremely frugal and save 90% of your money to enjoy in your 60s
A guide on how to work the corporate ladder in your favor to emerge on top
A guide on how to start the next Facebook or Amazon

Here are a list of internal skills that you may need to develop:
Confidence (believe that you are and you will be)
Communication Skills
Fast learner
Adaptable/ Fluid

Now let’s jump right into the framework, essentially life is broken up into different segments and so is the pursuit of wealth, each level requiring a different approach to wealth generation and effort, I’ll say they’re 3 different levels

Level One- Active (0- 10mil)
This is usually the hardest part and requires a revenue intensive business with high profit margins ( Atleast 50%) and the process can be repeated as many times as you see fit (usually to diversify)

Level Two- Investing (10- 100mil)
A safety net somewhat, usually involves investing in stocks, family real estate and commercial properties to get a sizeable passive inflow should one of your companies crash

Level Three- Forbes Billionaire List (100mil- ???)
Essentially owning a slice of a big pie

Now for the actionable information. A business model that can be used to achieve the millionaire status in modern time can be any one which offers a high value service(b2b) or one which operates at mass (Amazon Reseller/ Shopify store/ Clothing, Haircare brand)

High Value services, such as copywriting, Digital marketing, Website Creation, email marketing and graphic design, are in demand and pretty easy to offer as an agency. Did I forget to mention that? Well, a marketing/ design Agency is a business model that requires almost $0 cap

It’s possible to offer these services as a freelancer and even easier to learn how to do them better than most business owners. You can then turn around and charge businesses $1500+ for said services because they’re a profitable investment.

Freelancing is good up to at most 10k per month, not good for scale. I recommend hiring/ Outsourcing and focusing on sales for scale. As you make money it’s very important to reinvest in the business and build more seamless processes and automations so you can increase capacity.

100 clients on a retainer at 2000 is essentially 200k per month and 2.4 mil/ year. The sky is the limit but you should work on maintaining atleast 100 clients and a 50% profit margin (workers can receive $600 per account and sales agents can receive a 10% commission on sales)

Level one achieved? Hire a manager and fire yourself. Next? Level two. Invest invest invest. This is all about net-worth. You should have enough money to live comfortably and invest as well. Actively search for real estate deals and get mortgages on the most lucrative

Don’t sell, hold and rent them. Also if you’re buying stocks? Buy stocks of essential long term businesses with dividend payments and hold those as well. Make sure you have a framework for analyzing deal.

Level three. At this point you should be pretty wealthy but why stop there? This next level is about acquisitions and mergers mainly. Essentially you find a fragmented industry and consolidate through mergers and acquisitions. Think Disney, Johnson and Johnson etc

You do not have to be the CEO of this company, infact I don’t recommend that you take on that role. Hire a good CEO and allow him/ her to do his/ her thing, you should only be the chairman of the board and the majority shareholder.

Levels three and two are pretty easy and mainly focus on maintaining and multiplying the riches you acquired in level one

That’s it. Go forth and be great. Money is nothing more than freedom and time to do what you actually want to do, so go ahead and live on that beach drinking a red stripe or work to solve world hunger etc.

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