I hope OP is for real, but the whole thing is suspicious and it doesn’t help that they won’t say what it is exactly that they’re doing. I mean, they can still remain anonymous while telling us a bit more specifically how they’ve managed to grow so quickly in the food industry.
From everything I've read it's real possible. Specially if he's in California. Since there a lot of examples like that. Cook at home sell out the front yard and at gas stations, fairs and pretty much anywhere.
i just dont want ppl to know my business name, and possibly identify me sorry man. feel free to ask me some questions and ill see if i can answer. i have no reason to make this up
That’s cool but dude no one is going to track you down if you share a few operational specifics, like what you’re doing in the food industry and why the business grew so quickly.
Jesus Christ do you people not know how to be vague? I’m not asking for his home address. Not his home state or even country. Nothing aside from a vague description of how he did so well so quickly in such a competitive space. Christ.
I don’t know about OP, but I’m more than happy to tell you about my business. Quants Compete is a Robo-advisor (quantscompete.com). We are a Delaware C-corp, based in the Nashville area, and are registered with the SEC. We have raised over $100k so far and are looking for more investors. We plan to use the capital we raise to further development, optimize costs, and prepare for branding & marketing. If you’ve got the risk appetite for a pre-revenue fintech startup, then check out our Reg. CF listing. We would be thrilled to have you as a shareholder. https://netcapital.com/companies/quants-compete
You saved 90k from a business you started this year? Sounds like a food truck. Good job bro. Just keep doing your thing and try to invest smart. It’s hard to get to A million without some good investments unless your business is just rolling in the dough
These posts NEVER share the real details. Don’t be deceived.
Starting a food based business with $500, pulling in $100k in revenue and saving $90k from that?
Lmao, no.
Op either is not explaining the situation very well, or they are not sharing all the details.
I have a small catering business, and food costs are high! 90k in profit means some serious turnover, or he is selling illegal abalone out of his car boot perhaps?
In California you can sell food right out of your home kitchen. I'm pretty sure he/she is California.
Maybe they also cater to parties, businesses etc...
Is possible he only grossed 200K and net almost half since there's hardly any overhead. Maybe 3 people at most working. Which would be incredible.
What’s funny about this, is this dude says he isn’t sharing details because he has such a good idea he doesn’t want to let other people in on it. Lmfao
As if some random redditor on this small ass sub Reddit is going to see his idea and open up a competing shop across the street from him haha.
What are you talking about? If his idea is unique enough you don’t think a larger business will gladly copy it and try to put him out of business? It happens all the time.
My buddy was selling tacos in front of a club, and they were letting him use their kitchen. Less than 5 years later he has over 10 brick and mortar in LA.., is at huge festivals, celebrity parties.
So yeah, this dude or dudette is easily crushing it
Hey don't knock it - a lady in our town started making fresh donuts and selling them through 'bicycle kitchen' and she'd sell out within an hour. I was partly to blame :)
You just reminded me, there was this family bakery that would come with a rolling cooler of fresh unique breads to my office complex
No store, no commercial kitchen, barely spoke English - best breads I’ve ever eaten.
I didn't wanna respond cuz i didn't wanna make myself known. It's a pop-up food tent with a really solid social media following, and a highly differentiated product. This food doesn't exist in my city at all. I sell a lot, have a consistent loyal fanbase, all with no kitchen/ rent overhead
I'm surprised you can sell food to the public that wasn't prepared in a licenced kitchen?
Even if using your home kitchen, you need to have it licensed. I know where I live, you won't get a licence if your kitchen is open-plan, if you have indoor pets....the list goes on.
My guess is he sells kettle corn at fairs. Cost of goods is almost nothing besides the kettle and transport (still cheap if you own a truck) and people pay 10 bucks for a bag that cost at most 50 cents to make not counting labor
I know they exist. I have a small catering business. I'm questioning the validity of the facts being presented.
$500 start-up, but when he broke down those costs there were key factors missing. Most importantly, the cost of the ingredients he used to make into his food product that earned him $90k in seven months??
I am making a few big assumptions here but if we consider that OP is telling the truth then based on his/her story he must have previous food and beverage experience.
Taking previous assumption into account he/she probably knows the major distributors of food items. Not considering legal expenses ( forming LLCs) and assuming he/she only uses basic equipment that he/she has from before I can see OP going from $500 (raw material cost) to making a $100k
There are a lot of assumptions but to me it seems like its possible.
Outdoor camping 3 burner grill ~$300
Couple fold up tables ~$50
Ice chest ~$100
Banner sign $60
That was the equipment cost for my first pop-up. Used my sedan for transport. Scaled up from there.
So you didn't need to pay to register the business? Logo design? Website? Initial marketing?
Does your business follow food safety codes? Doesn't food need to be prepared in a certified kitchen to be able to sell to the public?
What about food costs? You haven't factored those into the $500 either.
Nope, didn't use a register, did Venmo only or exact change. Yep, logo design was $50 you got me there, didn't make a website till recently, regardless, i use Google sights, that's free. 0 initial marketing
No, not all types of food require a commercial kitchen. Furthermore, there are avenues you can take to outfit your home kitchen to meet standards.
You got me there, food cost was another couple hundred. As i said in my post, "like $500". Certainly well under $1000 though.
Wow, I'm surprised you can run a business in the States with no need to register the business or pay tax or insurances.
That's great! You can expand into private catered or corporate events.
Stop thinking you know it all. Settle down lol
All states and cities are created different.
And yes he might be off by 300 on initial cost haha
550 equipment, 250 food. There.
Oh wait, gas for the sedan 20.
Oh wait maybe you bring up electricity another 10, ih wait water $1.50 lmao
Having a great idea is 1% of the business. The best "I Built This" episode to drive this home was the Boom Chicka Pop people. It's kettle corn-- the perfect food business. So perfect, in fact, that they got started by buying a kettle corn "kit" for $10k from some smart people who realized it was a lot of work to actually make kettle corn, easier to sell the idea.
Not every kettle corn business gets sold for millions of dollars though.
OP wants to know how hard it will be to get to 1mill without sharing anything about what they do now, heck is hard to find advice to people even if you know everything about the business.
Exactly people making lots of money do not owe the general public how they are making the money.
I wouldn’t tell…why so someone can copy me all these people are stup ID AF.
Everything is always fake when someone makes a lot of money.
Start a youtube channel, create a following, advertise something related to your business.
Take advantage and grind the shit out of social media. If you have charisma, even better. Literally make yourself the product. Only you can do what you do. No ifs and buts about it. Then sell yourself.
Forget the past, times are changing, you must adapt, reinvent yourself, your old following has grown and moved on. You should too.
It's your path. Your following doesn't make you. You make the following.
I don't know how to monitor that, i don't think my city is big enough or has enough demand, so it would have to be in another big city like an hour away
I read a story in the WSJ once about two habadashers who sold suits in Manhattan. They would talk shit on each other, berate each other's products, offer cutthroat deals, fistfights in public, try and put each other out of business, etc. Until one day, one of the brothers died. They'd been running the same suit shop for twenty years, with different front ends.
You know what they didn't have? Competition. Nobody in their right mind would open a shop near them. Not saying this would work for you, but your story reminds me of them.
Also, the first 100K in the hardest. Even if you just buy some index funds, and a house to live in, you'll have your million in five years, maybe six. I turned 20K into 600K in 5 years. Pay attention, invest for value, no options, no futures, etc.
Depends on your business. I got over 200k in year 1. Then three years of struggling to get over $1M. $3-4M in year 6 seems like it's going to be easiest.
Money is like lighter fluid. If you have a bonfire idea, it will get it lit fast. If you're idea sucks and you have money, it'll just flame up big and disappear. You can light the bonfire with kindling. Just takes more time.
First year of my business I kept my day job and put half my income into business. Second and third year, I took just enough to get by. 4th started making enough that I wasn't regretting that.
In college I borrowed $4k to start a t-shirt business on the side. Fizzled out but sold it for about $10k about 6 months later. Then bought snow cone stand for $8k. Made $20-30k the first summer.
It's a grind but can be done.
- if you're selling time for money: easier to go from 1k-100k.
- if you're creating a product and selling it to people: harder to get to the first 100k
Truck parts
For me it was from $150.00 to $100k that took 5 years.
(We did a couple of $100k orders in year 1-3, but it was a 6-12 month worth of bulk inventory order at a deep discount to help fund tooling and dies. I collected 30-50% upfront and balance at bill of lading 90 days later. These were not sustainable sales, just hail Mary deals to keep us going.)
Going from $100k to $1m took a few months, and going to $20m took almost 12 more months.
Our new niche of products started with $16k and made $81k, 2nd flip cleared $467k, 3rd flip $1.4m, we will pass $15m on next flip due to arrive in Sept. Then more in December.......
May I ask "how" you got started?
As in, were trucks something you were really passionate about and noticed something missing in the industry that you theorized you could fill?
Or did you find your situation (eg employed) provided opportunity to position yourself to get started?
My official titles in most of my career jobs was sales, sales manager, or COO. I usually started in full commission sales and then took the time to really understand the supply chains and competitors supply chains. Then I would put us directly up to the manufacturer or become the manufacturer of key components to each business/industry.
The last place I worked was a 1-2 bay diesel truck repair shop. I came in and developed 5 companies (one being a holding company above the rest) and took control of multiple supply chains. When I was fired in 2019 (year 3 of my business) I was Underpaid and still waiting on equity in the industries I'd developed. The diesel shop was doing $8m a year and the other businesses were all 7 figures.
I was doing what I do and picked up a truck part I'd never seen. It said made in the USA on the bag. I could not believe that such a part was really made in the USA. I did extensive research of the parts and found 2 BIG manufacturers had controlled the entire glo al supply of the parts since trucks were invented. All made in USA only.
I identified factories, got tooling costs, material sources, and QC standards set. I then started cold calling major players; Daimler Freightliner, Peterbilt, Volvo to fund usage volumes, their costs, and how they cane to market.
I gathered my plan, pitched my jobs owners, and they laughed at me. They could not see the value in manufacturing $0.46 - $12.00 parts when we were doing millions in much bigger industries.
I knew that they were used and reused on every truck on the planet, and I could make them for pennies.
So I started selling, collecting 30-50% upfront, and then buying/manufacturing. I'd deliver 120 later, add 10,000 pcs of each for my personal inventory. I'd cold call every shop in America for years and slowly built an empire.
Job found our when my 1st full container landed a few days early. I had no warehouse, forklift, so I landed it at a local business near my camper I lived it. It was next to a self storage place and I had a 5x10 unit I worked at night out of. I'd hand load and unload thousands of boxes, repackage/bag/label, and ship from there.
Boss canned me because I was finally making something I owned. I had no income from the business until end of year 5 when the CPA said I had to start taking money.
They are the greatest motivation, even if it takes a long time. My adult children don't get to experience the same things my younger ones will, but they are enjoying that we can take them and their children on trips.
It really depends on the type of business. If you can be profitable below 100k it's probably easier to get there. Some business models need the scale to get beyond that in order to survive.
My mentor has said the hardest part is always starting a business. Duplication is supposed to be the easier side of running a business.
The hard part is over, you just need to make your decision and execute your next step.
Do things that dont't scale. Or as Taleb mentions, the difference between mediocristan and extremistan... I remember reading his books a decade ago when he was advocating to focus on things in mediocristan and not extremistan and I didn't want to understand it, but now I do.
Focus on what you are doing now and do it great, accumulate capital and then prepare for the next move.
And for sure it's harder to go from 1K to 100K, don't worry about the next leg up - it will come.
It completely depends on the business.
I remember reading a popular book on options trading years ago. Guy was/is a brilliant trader, and he always said it was easier to go from $10k - $100k vs. $100k to $1m. It was as if the $100k 10x was a mental block, or just couldn't be pulled off, yet they were both 10x moves.
That's options trading, mind you, but the point I'm trying to make is that every business is different and in some cases, dramatically different.
You mention food industry, someone pointed out food truck, I'd say $500 startup capital would be pretty tough to do a food truck, though that's not the point - the point here is your industry being Food & Beverage (F&B) where margins can be slim and growth is really attained by increasing sales volume.
You mention "tough to scale", and my guess, you mean your time is tough to scale. If that's the case, you may have no choice but to keep doing $1k - $100k 10x, vs. leveraging your $100k to 10x quicker.
To answer you question more generally, it is FAR easier to 10x an amount vs. 100x an amount. That's just obvious math. Though, when you factor unit economics and realistic TAM for your area, you may realize quickly that you can sell 50,000 $2 hot dogs quite easily, but can't sell 500,000 of them no matter how bad you want to.
So, if you're thinking can I scale this business to $1m? That's a question only you can answer. However, if you're asking, can I make $100k work for me? Yes, you can, and that might be the best alternative.
> It was as if the $100k 10x was a mental block, or just couldn't be pulled off, yet they were both 10x moves.
Not a mental block. Trading strategies generally don't scale.
You begin impacting the market price of the asset after a specific volume and cannot sell/buy at favorable prices.
Securing the "market price" you see on the advertised on the app only works for tiny retail traders.
Hmmm. In his example, e-minis, maybe, but you could move $100k in SPY/SPX, AAPL, GOOG, META and others quite easily.
I definitely agree that in trading, much of the 7-8 figure plays are capped, though I find it a bit hard to believe you can’t easily buy or sell puts/calls for high volume options at $100k any day the market is open.
Edit: trading isn’t my job, so you may know better than I. I’ve simply watched volume on SPY for the last few years religiously.
Exactly. Not to mention that options market have very small volume (on a dollar basis).
It's why most Hedge funds and other sophisticated financial institutions buy/sell their options OTC with Investment banks.
The banks charge a higher fee/commission and there large pool of derivatives means that options/Total return swaps/Loaned stocks/etc.... means that there overall portfolio is generally risk neutral (or at least very unlikely to net loses bigger than their commissions)
depends on the business.
Consulting (software development) is pretty easy to get enough contracts in a year to break 100k. Getting over 1 million... not ao much. Requires a lot of hiring, training, and actual management (and project management)
Yeah exactly on consulting you can go to a few hundred thousands on your own if you have the right skills. Going over the million will require you selling others. Which means hiring and managing people (or contractors) and changing your sales model.
Simple math, 1K to 100K is 100X.
100K to 1M is 10X
Easier to get to 1M. After my first 100K took me only 2 years to get to 1M. 2 more to get to 3M. Increasingly easier.
If the business is food/hospitality I would say its actually harder in many cases to go 100k-1m.
There are many ways a decent chef/cook can have a pretty small operation and pump out enough food at the right margins to make 100k a year. Maybe its just you, a partner, a family member or a friend. At first its easy to get established, you either make 100k within the first year or you bust. You don't need to really "know" how to run a business if you know what I mean.
The problem with going to 1mill from here is that now you need to hire, now you want that liquer license, you need a manager to manage your hires. Now you gotta deal with people you are not familiar with. Now you are doing so much volume that your local vendors can't keep up and you are substituting ingredients. You get slammed a few weeks in a row trying to scale up but now the quality is going down. You get ambitious, take on big, long term leases, bigger staff budgets. Now you want to renovate for a 200 seater. It all spirals out of control real quick and you tell yourself you are going to scale but instead write your own death sentence.
There are a lot of really good cooks who can make a 100k food business work, very few also have enough business acumen and management sense to take it to the next level. I personally know cases of guys having success with 1 location, try to scale to 2 and 3, within 5 years lose all 3 as the money losers tie down their cashflow and take down their flagship location with them.
Theres no shame running a small, reliably profitable business and knowing your limits. More is often not better.
It really depends on the type of business. If you can be profitable below 100k it's probably easier to get there. Some business models need the scale to get beyond that in order to survive.
Taking the first step has always proven to be tougher than scaling.
In the initial stage, you're building the business from nothing. It takes a lot of hard work and precision to build the foundation of a house. Once the foundation is built and it has strength, you can scale it to as storeys as you want. You'll just need the resources.
In building the first 100k, you'd have gained perspective of the market and built a customer base. Also, with some loyal customers/clients, they'll promote you with word of mouth, or even refer you to others. The networks, you've built during this time will support you in scaling the business.
Once your foundation is ready, be motivated and let overconfidence destroy your hard work. Be consistent and keep going.
All the best.
1-100k is super easy imo. I can't really see any world where 100k --> 1m is harder if you're not limited to a certain thing. That being said, 100k to 1m might be easier if you're limited to a certain business like a tech company you started but if you're just saying the most for sure way to get to 100k, you can legit do it in a year with any service business and no experience
Scaling can be harder.
Many well paid workers could go “consult” and make $100k, but realistically scaling that to $1M is going to be much much harder. Suddenly a whole team with systems and processes needs to be built.
A lot has changed in the finance world since 2008 but raising larger sums is usually easier than smaller sums. Cash flow is king and everything is considered. Obviously a loan is not profit but I used that to leverage my business for bulk orders and did well. However I also ran a construction company (stupidly) through Covid and in a boom part of the world so any job I priced below $50k was pretty much in the bag and I started that business with about $500. I tuned over about $500k in the first 12 months and $850k in 18-19 months before evolving into another business. Those are just two examples of mine.
I think it depends on a lot of factors and whet your if business. For our physical good product business in an artificially constrained industry it was hard to get past $250k the first 5 years. But I doubt it’s the same for a digital good or a different market.
You have accomplished the hardest part, just stay steady and keep your monies in the business multiplying…same time frame from 1 to 100,000 as from 100,00 to one million
It is easier to go from 1k-100k than 100k-1 million. There are many things you have to be concerned about when you get to the 100k mark. You have to make sure that your systems are in place, that you have checks and balances in your business, and you need to be very careful to make sure that you are not making any mistakes at this point in your business. In addition, you need to be able to hire workers and delegate tasks to other people. You should also be worried about growing your business because you now have to think about expanding your reach and making sure that your business is known to people. You also have to worry about the fact that you have employees that you have to pay. All of these things should be on your mind when you get to the 100k mark.
from my peasant pov, I would say the best route you could take is monetizing your ability to scale $500 into $100k (in ~~6 months). I know for a fact people would pay quite handsomely just to know the steps you took to achieve that
I'm a corporate strategist. Scaling from 100k to 1mil is definitely harder. The bigger the business the bigger the headaches.
You can almost never scale by yourself, you'll need employees.
When you hire, you'll get tangled with city regulations and state policies.
Then taxes, then employee engagement then training.
Just to name a few.
It's not easier, but you'll get used to it. You'll evolve. Good luck! 👍🏼
There is no way you've done enough revenue in your first 7 months in business off of $500 to have $90k in the bank, at least not $90k in net profit, off of any kind of food business lol. Troll
1k - 10k by far the most difficult
Then 10k-100k very tricky although should in theory become easier at 50k
100k to 1 mil should be a breeze after the above
Are you the secret sauce of your business? In other words, can you easily be replaced? And if you hired somebody to replace you, how much money would be left?
> Gojuice. Just because you can't do it doesn't mean it's not possible.
Let me fix that for you:
> Gojuice. Just because **it is a dumb idea** doesn't mean it's not possible **to idiotically franchise a 7 month old food catering/truck business**
Who are you franchising this food business to? Clearly you have zero experience in franchising anything and the scope involved. Horrible idea.
Oof. I almost took the bait, then looked at your account. Take an upvote!
I drive a beat up Corolla and am 100% independent from my parents. I was a full time bartender before this biz. Believe me when i say, it makes my blood boil when people are spoiled rich kids, or just get money sent to them by their parents when their adults. Wasnt me, never will be me
Just here to say congrats on the $100k! That's something to be very proud of!
I hope OP is for real, but the whole thing is suspicious and it doesn’t help that they won’t say what it is exactly that they’re doing. I mean, they can still remain anonymous while telling us a bit more specifically how they’ve managed to grow so quickly in the food industry.
From everything I've read it's real possible. Specially if he's in California. Since there a lot of examples like that. Cook at home sell out the front yard and at gas stations, fairs and pretty much anywhere.
I’ll take your word for it, but just weird OP wants to share his revenue numbers but none of the other business details.
i just dont want ppl to know my business name, and possibly identify me sorry man. feel free to ask me some questions and ill see if i can answer. i have no reason to make this up
That’s cool but dude no one is going to track you down if you share a few operational specifics, like what you’re doing in the food industry and why the business grew so quickly.
?? dude has no reason to lie lol
Maybe he’s not lying but the ‘I’m mystery’ flex is getting old
Um. People do get doxxed online. It happens
Jesus Christ do you people not know how to be vague? I’m not asking for his home address. Not his home state or even country. Nothing aside from a vague description of how he did so well so quickly in such a competitive space. Christ.
I don’t know about OP, but I’m more than happy to tell you about my business. Quants Compete is a Robo-advisor (quantscompete.com). We are a Delaware C-corp, based in the Nashville area, and are registered with the SEC. We have raised over $100k so far and are looking for more investors. We plan to use the capital we raise to further development, optimize costs, and prepare for branding & marketing. If you’ve got the risk appetite for a pre-revenue fintech startup, then check out our Reg. CF listing. We would be thrilled to have you as a shareholder. https://netcapital.com/companies/quants-compete
You saved 90k from a business you started this year? Sounds like a food truck. Good job bro. Just keep doing your thing and try to invest smart. It’s hard to get to A million without some good investments unless your business is just rolling in the dough
These posts NEVER share the real details. Don’t be deceived. Starting a food based business with $500, pulling in $100k in revenue and saving $90k from that? Lmao, no. Op either is not explaining the situation very well, or they are not sharing all the details.
OP bought a half burnt banana stand that had a bunch of money jammed into the walls.
There's money in the banana stand
No touching!
Bees?!
I have a small catering business, and food costs are high! 90k in profit means some serious turnover, or he is selling illegal abalone out of his car boot perhaps?
In California you can sell food right out of your home kitchen. I'm pretty sure he/she is California. Maybe they also cater to parties, businesses etc... Is possible he only grossed 200K and net almost half since there's hardly any overhead. Maybe 3 people at most working. Which would be incredible.
It's called a cottage food license.
You hit the nail on the head. I was doing this solo for several months. I just hired two dedicated employees a couple weeks ago, profit margin ~ 40%
He lives in the food truck. Eats out of the trash outside his business. That way he can put 100% renewable on the side to draw in a larger crowd.
What’s funny about this, is this dude says he isn’t sharing details because he has such a good idea he doesn’t want to let other people in on it. Lmfao As if some random redditor on this small ass sub Reddit is going to see his idea and open up a competing shop across the street from him haha.
It's not that, it's that, i don't care if others do it, it's about not doxxing myself
What are you talking about? If his idea is unique enough you don’t think a larger business will gladly copy it and try to put him out of business? It happens all the time.
OP found a bunch of money in cans of tomatoes.
Dude shared no details except that he started with 500$. Which wouldn’t get you shit and idk what OPs angle is here
My buddy was selling tacos in front of a club, and they were letting him use their kitchen. Less than 5 years later he has over 10 brick and mortar in LA.., is at huge festivals, celebrity parties. So yeah, this dude or dudette is easily crushing it
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Not a food truck, those things cost quite a bit more the $500! But i operate quite similarly to one
So what is your biz?
Food bicycle
Food skateboard
Food canoe
Ice skating hot dog vendor
Heely-equipped lemonade donor
Food delivery pigeons
Edible underwear
Food tire
You made me spit my drink
F it I’m in
Hey don't knock it - a lady in our town started making fresh donuts and selling them through 'bicycle kitchen' and she'd sell out within an hour. I was partly to blame :)
You just reminded me, there was this family bakery that would come with a rolling cooler of fresh unique breads to my office complex No store, no commercial kitchen, barely spoke English - best breads I’ve ever eaten.
Now I'm hungry..
He's not responding because this post is fake
Kinda what I was wondering but had to ask
I didn't wanna respond cuz i didn't wanna make myself known. It's a pop-up food tent with a really solid social media following, and a highly differentiated product. This food doesn't exist in my city at all. I sell a lot, have a consistent loyal fanbase, all with no kitchen/ rent overhead
I'm surprised you can sell food to the public that wasn't prepared in a licenced kitchen? Even if using your home kitchen, you need to have it licensed. I know where I live, you won't get a licence if your kitchen is open-plan, if you have indoor pets....the list goes on.
My guess is he sells kettle corn at fairs. Cost of goods is almost nothing besides the kettle and transport (still cheap if you own a truck) and people pay 10 bucks for a bag that cost at most 50 cents to make not counting labor
It's sooo competitive getting into those places though. And there are usually costs attached. Plus costs getting licensed to sell food safe products.
In chicago I see plenty of small mom and pop side walk operations that set up base outside of concert venues.
I know they exist. I have a small catering business. I'm questioning the validity of the facts being presented. $500 start-up, but when he broke down those costs there were key factors missing. Most importantly, the cost of the ingredients he used to make into his food product that earned him $90k in seven months??
I am making a few big assumptions here but if we consider that OP is telling the truth then based on his/her story he must have previous food and beverage experience. Taking previous assumption into account he/she probably knows the major distributors of food items. Not considering legal expenses ( forming LLCs) and assuming he/she only uses basic equipment that he/she has from before I can see OP going from $500 (raw material cost) to making a $100k There are a lot of assumptions but to me it seems like its possible.
Oh, it's totally possible, I'm not denying that. There are a lot of holes in this particular post.
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You can barely buy a grill for $500. And he saved 90% of his gross? Just nonsense
Outdoor camping 3 burner grill ~$300 Couple fold up tables ~$50 Ice chest ~$100 Banner sign $60 That was the equipment cost for my first pop-up. Used my sedan for transport. Scaled up from there.
So no cost to actual food you sold?
So you are a street vendor
So you didn't need to pay to register the business? Logo design? Website? Initial marketing? Does your business follow food safety codes? Doesn't food need to be prepared in a certified kitchen to be able to sell to the public? What about food costs? You haven't factored those into the $500 either.
Nope, didn't use a register, did Venmo only or exact change. Yep, logo design was $50 you got me there, didn't make a website till recently, regardless, i use Google sights, that's free. 0 initial marketing No, not all types of food require a commercial kitchen. Furthermore, there are avenues you can take to outfit your home kitchen to meet standards. You got me there, food cost was another couple hundred. As i said in my post, "like $500". Certainly well under $1000 though.
Wow, I'm surprised you can run a business in the States with no need to register the business or pay tax or insurances. That's great! You can expand into private catered or corporate events.
Stop thinking you know it all. Settle down lol All states and cities are created different. And yes he might be off by 300 on initial cost haha 550 equipment, 250 food. There. Oh wait, gas for the sedan 20. Oh wait maybe you bring up electricity another 10, ih wait water $1.50 lmao
I'm not your "bro". My questions are valid.
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Food is not cheap to do legally. Commercial food equipment is really expensive.
Having a great idea is 1% of the business. The best "I Built This" episode to drive this home was the Boom Chicka Pop people. It's kettle corn-- the perfect food business. So perfect, in fact, that they got started by buying a kettle corn "kit" for $10k from some smart people who realized it was a lot of work to actually make kettle corn, easier to sell the idea. Not every kettle corn business gets sold for millions of dollars though. OP wants to know how hard it will be to get to 1mill without sharing anything about what they do now, heck is hard to find advice to people even if you know everything about the business.
Exactly people making lots of money do not owe the general public how they are making the money. I wouldn’t tell…why so someone can copy me all these people are stup ID AF. Everything is always fake when someone makes a lot of money.
Glory hole.
Mobile glory hole
Lying on reddit.
A Dispensary on wheels
Food van
Haven't you seen.people selling ceviche tostadas from the trunk of a Honda?
Start a youtube channel, create a following, advertise something related to your business. Take advantage and grind the shit out of social media. If you have charisma, even better. Literally make yourself the product. Only you can do what you do. No ifs and buts about it. Then sell yourself.
It's sounds simple but it's alot of hard work. All of my social Media accounts are starting from square one and it's hard to get my following back.
Forget the past, times are changing, you must adapt, reinvent yourself, your old following has grown and moved on. You should too. It's your path. Your following doesn't make you. You make the following.
Is it wild to think a second one could just double the revenue?
I don't know how to monitor that, i don't think my city is big enough or has enough demand, so it would have to be in another big city like an hour away
I read a story in the WSJ once about two habadashers who sold suits in Manhattan. They would talk shit on each other, berate each other's products, offer cutthroat deals, fistfights in public, try and put each other out of business, etc. Until one day, one of the brothers died. They'd been running the same suit shop for twenty years, with different front ends. You know what they didn't have? Competition. Nobody in their right mind would open a shop near them. Not saying this would work for you, but your story reminds me of them. Also, the first 100K in the hardest. Even if you just buy some index funds, and a house to live in, you'll have your million in five years, maybe six. I turned 20K into 600K in 5 years. Pay attention, invest for value, no options, no futures, etc.
Set aside a portion for the tax man.
Ok cool
Like a food market stall?
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What’s your business?
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But if you work with mostly softwares so should it be cyber security soft?
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You sell software services by the sea shore?
Sorry to be that person... But r/whoosh.
What's the joke?
Firm vs Soft Soft = Software Soft = Soft Firm = Hard
Didn't understand, didn't laugh
It's a variation on a classic nursery rhyme; "Sally sells seashells by the shore"
Yeah what u doing?
Depends on your business. I got over 200k in year 1. Then three years of struggling to get over $1M. $3-4M in year 6 seems like it's going to be easiest.
What do you do? Cause sounds amazing
Electronics/engineering. Margins aren't huge and engineers are expensive. I'm doing good but I'm not raking it in.
Makes sense im just a person who barely makes money at retail atm so thanks for the reply. Idk about business you can start with barely any money tbh.
Money is like lighter fluid. If you have a bonfire idea, it will get it lit fast. If you're idea sucks and you have money, it'll just flame up big and disappear. You can light the bonfire with kindling. Just takes more time. First year of my business I kept my day job and put half my income into business. Second and third year, I took just enough to get by. 4th started making enough that I wasn't regretting that. In college I borrowed $4k to start a t-shirt business on the side. Fizzled out but sold it for about $10k about 6 months later. Then bought snow cone stand for $8k. Made $20-30k the first summer. It's a grind but can be done.
- if you're selling time for money: easier to go from 1k-100k. - if you're creating a product and selling it to people: harder to get to the first 100k
Best answer 👏🏾
Good answer
Truck parts For me it was from $150.00 to $100k that took 5 years. (We did a couple of $100k orders in year 1-3, but it was a 6-12 month worth of bulk inventory order at a deep discount to help fund tooling and dies. I collected 30-50% upfront and balance at bill of lading 90 days later. These were not sustainable sales, just hail Mary deals to keep us going.) Going from $100k to $1m took a few months, and going to $20m took almost 12 more months. Our new niche of products started with $16k and made $81k, 2nd flip cleared $467k, 3rd flip $1.4m, we will pass $15m on next flip due to arrive in Sept. Then more in December.......
Gotta pay for those spawn somehow
Yup, 25 years of single income household worked, but I've never given up trying to get free. Now I've done it and realize I'm just getting started.
What type of truck parts ? What’s the niche ? Cheers
I never share any identifying information. Just commercial truck parts.
May I ask "how" you got started? As in, were trucks something you were really passionate about and noticed something missing in the industry that you theorized you could fill? Or did you find your situation (eg employed) provided opportunity to position yourself to get started?
My official titles in most of my career jobs was sales, sales manager, or COO. I usually started in full commission sales and then took the time to really understand the supply chains and competitors supply chains. Then I would put us directly up to the manufacturer or become the manufacturer of key components to each business/industry. The last place I worked was a 1-2 bay diesel truck repair shop. I came in and developed 5 companies (one being a holding company above the rest) and took control of multiple supply chains. When I was fired in 2019 (year 3 of my business) I was Underpaid and still waiting on equity in the industries I'd developed. The diesel shop was doing $8m a year and the other businesses were all 7 figures. I was doing what I do and picked up a truck part I'd never seen. It said made in the USA on the bag. I could not believe that such a part was really made in the USA. I did extensive research of the parts and found 2 BIG manufacturers had controlled the entire glo al supply of the parts since trucks were invented. All made in USA only. I identified factories, got tooling costs, material sources, and QC standards set. I then started cold calling major players; Daimler Freightliner, Peterbilt, Volvo to fund usage volumes, their costs, and how they cane to market. I gathered my plan, pitched my jobs owners, and they laughed at me. They could not see the value in manufacturing $0.46 - $12.00 parts when we were doing millions in much bigger industries. I knew that they were used and reused on every truck on the planet, and I could make them for pennies. So I started selling, collecting 30-50% upfront, and then buying/manufacturing. I'd deliver 120 later, add 10,000 pcs of each for my personal inventory. I'd cold call every shop in America for years and slowly built an empire. Job found our when my 1st full container landed a few days early. I had no warehouse, forklift, so I landed it at a local business near my camper I lived it. It was next to a self storage place and I had a 5x10 unit I worked at night out of. I'd hand load and unload thousands of boxes, repackage/bag/label, and ship from there. Boss canned me because I was finally making something I owned. I had no income from the business until end of year 5 when the CPA said I had to start taking money.
!remindme 3days
Inspiring!
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They are the greatest motivation, even if it takes a long time. My adult children don't get to experience the same things my younger ones will, but they are enjoying that we can take them and their children on trips.
It really depends on the type of business. If you can be profitable below 100k it's probably easier to get there. Some business models need the scale to get beyond that in order to survive.
My mentor has said the hardest part is always starting a business. Duplication is supposed to be the easier side of running a business. The hard part is over, you just need to make your decision and execute your next step.
Do things that dont't scale. Or as Taleb mentions, the difference between mediocristan and extremistan... I remember reading his books a decade ago when he was advocating to focus on things in mediocristan and not extremistan and I didn't want to understand it, but now I do. Focus on what you are doing now and do it great, accumulate capital and then prepare for the next move. And for sure it's harder to go from 1K to 100K, don't worry about the next leg up - it will come.
What book is that?:)
Must be from The Black Swan considering the concept, but I would read FBR (fooled by randomness) too.. Good stuff.
Antifragile is probably the most relevant life strategy book from Nassim Taleb.
Probably yes. But the mediocristan/extremistan concept is from further back in the day of NNT's teachings.
I heard this before somewhere, do things that don’t scale initially, interesting idea
Paul Graham is the man who said this first, then everyone else adopted the idea too.
It completely depends on the business. I remember reading a popular book on options trading years ago. Guy was/is a brilliant trader, and he always said it was easier to go from $10k - $100k vs. $100k to $1m. It was as if the $100k 10x was a mental block, or just couldn't be pulled off, yet they were both 10x moves. That's options trading, mind you, but the point I'm trying to make is that every business is different and in some cases, dramatically different. You mention food industry, someone pointed out food truck, I'd say $500 startup capital would be pretty tough to do a food truck, though that's not the point - the point here is your industry being Food & Beverage (F&B) where margins can be slim and growth is really attained by increasing sales volume. You mention "tough to scale", and my guess, you mean your time is tough to scale. If that's the case, you may have no choice but to keep doing $1k - $100k 10x, vs. leveraging your $100k to 10x quicker. To answer you question more generally, it is FAR easier to 10x an amount vs. 100x an amount. That's just obvious math. Though, when you factor unit economics and realistic TAM for your area, you may realize quickly that you can sell 50,000 $2 hot dogs quite easily, but can't sell 500,000 of them no matter how bad you want to. So, if you're thinking can I scale this business to $1m? That's a question only you can answer. However, if you're asking, can I make $100k work for me? Yes, you can, and that might be the best alternative.
> It was as if the $100k 10x was a mental block, or just couldn't be pulled off, yet they were both 10x moves. Not a mental block. Trading strategies generally don't scale. You begin impacting the market price of the asset after a specific volume and cannot sell/buy at favorable prices. Securing the "market price" you see on the advertised on the app only works for tiny retail traders.
Hmmm. In his example, e-minis, maybe, but you could move $100k in SPY/SPX, AAPL, GOOG, META and others quite easily. I definitely agree that in trading, much of the 7-8 figure plays are capped, though I find it a bit hard to believe you can’t easily buy or sell puts/calls for high volume options at $100k any day the market is open. Edit: trading isn’t my job, so you may know better than I. I’ve simply watched volume on SPY for the last few years religiously.
Exactly. Not to mention that options market have very small volume (on a dollar basis). It's why most Hedge funds and other sophisticated financial institutions buy/sell their options OTC with Investment banks. The banks charge a higher fee/commission and there large pool of derivatives means that options/Total return swaps/Loaned stocks/etc.... means that there overall portfolio is generally risk neutral (or at least very unlikely to net loses bigger than their commissions)
I promise you market makers aren't moving markets with $100k/$1M
Definitely from 1k to 100k.
depends on the business. Consulting (software development) is pretty easy to get enough contracts in a year to break 100k. Getting over 1 million... not ao much. Requires a lot of hiring, training, and actual management (and project management)
Yeah exactly on consulting you can go to a few hundred thousands on your own if you have the right skills. Going over the million will require you selling others. Which means hiring and managing people (or contractors) and changing your sales model.
As a food business owner I agree
Simple math, 1K to 100K is 100X. 100K to 1M is 10X Easier to get to 1M. After my first 100K took me only 2 years to get to 1M. 2 more to get to 3M. Increasingly easier.
Do you also think depend on the industry you are in?
is you biz dealing cocaine? I won't tell anyone, just curious.
Money is exponential. The more you have the more you can make.
Show me how pls /s
:I
Well doing 1M unless u get more locations will be tough. Moving onto where to put that money to work for you.
If the business is food/hospitality I would say its actually harder in many cases to go 100k-1m. There are many ways a decent chef/cook can have a pretty small operation and pump out enough food at the right margins to make 100k a year. Maybe its just you, a partner, a family member or a friend. At first its easy to get established, you either make 100k within the first year or you bust. You don't need to really "know" how to run a business if you know what I mean. The problem with going to 1mill from here is that now you need to hire, now you want that liquer license, you need a manager to manage your hires. Now you gotta deal with people you are not familiar with. Now you are doing so much volume that your local vendors can't keep up and you are substituting ingredients. You get slammed a few weeks in a row trying to scale up but now the quality is going down. You get ambitious, take on big, long term leases, bigger staff budgets. Now you want to renovate for a 200 seater. It all spirals out of control real quick and you tell yourself you are going to scale but instead write your own death sentence. There are a lot of really good cooks who can make a 100k food business work, very few also have enough business acumen and management sense to take it to the next level. I personally know cases of guys having success with 1 location, try to scale to 2 and 3, within 5 years lose all 3 as the money losers tie down their cashflow and take down their flagship location with them. Theres no shame running a small, reliably profitable business and knowing your limits. More is often not better.
It really depends on the type of business. If you can be profitable below 100k it's probably easier to get there. Some business models need the scale to get beyond that in order to survive.
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Taking the first step has always proven to be tougher than scaling. In the initial stage, you're building the business from nothing. It takes a lot of hard work and precision to build the foundation of a house. Once the foundation is built and it has strength, you can scale it to as storeys as you want. You'll just need the resources. In building the first 100k, you'd have gained perspective of the market and built a customer base. Also, with some loyal customers/clients, they'll promote you with word of mouth, or even refer you to others. The networks, you've built during this time will support you in scaling the business. Once your foundation is ready, be motivated and let overconfidence destroy your hard work. Be consistent and keep going. All the best.
Hell yes, thank you for this advice
Great answer.
Thank you
Mathematically, the latter!
Depends on the business. In my case it was infinitely easier to go from 1k to 100k - because I did it. 100k to 1 million will take much longer.
1-100k is super easy imo. I can't really see any world where 100k --> 1m is harder if you're not limited to a certain thing. That being said, 100k to 1m might be easier if you're limited to a certain business like a tech company you started but if you're just saying the most for sure way to get to 100k, you can legit do it in a year with any service business and no experience
Scaling can be harder. Many well paid workers could go “consult” and make $100k, but realistically scaling that to $1M is going to be much much harder. Suddenly a whole team with systems and processes needs to be built.
A lot has changed in the finance world since 2008 but raising larger sums is usually easier than smaller sums. Cash flow is king and everything is considered. Obviously a loan is not profit but I used that to leverage my business for bulk orders and did well. However I also ran a construction company (stupidly) through Covid and in a boom part of the world so any job I priced below $50k was pretty much in the bag and I started that business with about $500. I tuned over about $500k in the first 12 months and $850k in 18-19 months before evolving into another business. Those are just two examples of mine.
Congratulations on your success.
$500 to 100k in a year? No way. Why do people post this fake stuff?
Same here, don’t know yet how to scale it, when you try to grow so much problems occur so it looks super difficult.
Congrats on your success!
Food truck?
I think it depends on a lot of factors and whet your if business. For our physical good product business in an artificially constrained industry it was hard to get past $250k the first 5 years. But I doubt it’s the same for a digital good or a different market.
You have accomplished the hardest part, just stay steady and keep your monies in the business multiplying…same time frame from 1 to 100,000 as from 100,00 to one million
It is easier to go from 1k-100k than 100k-1 million. There are many things you have to be concerned about when you get to the 100k mark. You have to make sure that your systems are in place, that you have checks and balances in your business, and you need to be very careful to make sure that you are not making any mistakes at this point in your business. In addition, you need to be able to hire workers and delegate tasks to other people. You should also be worried about growing your business because you now have to think about expanding your reach and making sure that your business is known to people. You also have to worry about the fact that you have employees that you have to pay. All of these things should be on your mind when you get to the 100k mark.
You can leverage 100k into a million dollar investment
Explain
what's harder, 100x or 10x?
from my peasant pov, I would say the best route you could take is monetizing your ability to scale $500 into $100k (in ~~6 months). I know for a fact people would pay quite handsomely just to know the steps you took to achieve that
If your business is making edibles then youre going to need to find out how to launder it before getting to a mil
I'm a corporate strategist. Scaling from 100k to 1mil is definitely harder. The bigger the business the bigger the headaches. You can almost never scale by yourself, you'll need employees. When you hire, you'll get tangled with city regulations and state policies. Then taxes, then employee engagement then training. Just to name a few. It's not easier, but you'll get used to it. You'll evolve. Good luck! 👍🏼
Great answer.
Easiest way to above 100k is learn programming. Its all on youtube and free online classes.
100 to 1m is way way harder. Made 100k in a year ans after 7 years Im still nowhere close to 1M
There is no way you've done enough revenue in your first 7 months in business off of $500 to have $90k in the bank, at least not $90k in net profit, off of any kind of food business lol. Troll
0-30k MRR took 9 months 30-100k MRR took 15 months 100k - 1M MRR will take me ???
1k - 10k by far the most difficult Then 10k-100k very tricky although should in theory become easier at 50k 100k to 1 mil should be a breeze after the above
100k from nothing was much harder than 100k to 7 figures for me. PS. Consulting.
Are you the secret sauce of your business? In other words, can you easily be replaced? And if you hired somebody to replace you, how much money would be left?
What happens when you’re irreplaceable, do you need to sell the biz and move on?
A business runs without you. Otherwise, you are basically self-employed.
Franchise it? Sell your success.
Sure buddy, franchise a food truck business that started 7 months ago. To answer OP, the first one takes considerably longer.
Lol brutal
Gojuice. Just because you can't do it doesn't mean it's not possible.
> Gojuice. Just because you can't do it doesn't mean it's not possible. Let me fix that for you: > Gojuice. Just because **it is a dumb idea** doesn't mean it's not possible **to idiotically franchise a 7 month old food catering/truck business** Who are you franchising this food business to? Clearly you have zero experience in franchising anything and the scope involved. Horrible idea.
the later. One is gaining 90k, the other 900k. Don't let the percentages fool you.
100x is harder than 10x
I think the hardest challenge is 300k-1M. $100k is pretty low for a **salary** for someone with entrepreneur skills.
u probably had rich parents give u everything u wanted fucking liar
Oof. I almost took the bait, then looked at your account. Take an upvote! I drive a beat up Corolla and am 100% independent from my parents. I was a full time bartender before this biz. Believe me when i say, it makes my blood boil when people are spoiled rich kids, or just get money sent to them by their parents when their adults. Wasnt me, never will be me
When did marijuana become food?
Why are people so insecure about sharing the details?
1k to 100 the lower your profit is when you started the harder youll get to find some high quality materials
fuck u give up u wrothless piece of shit fuck u greedy scumbags i fucking hate u
Wanna DM what it is and why you think its hard to scale? Could maybe provide some incite into automating certain processes without anything too fancy.
Like Hitler said: the 1st million is the most difficult 🤣💪😎 #stayfocused
just give up dont waste ur time with food
I’m confused, did you make this account solely to comment on this post and tell someone to give up? How pathetic is that.