Aaron Harper

They don't create the barriers because the risk associated with pre-investing in the business, hiring people before you need them.

And taking profit that maybe you don't even have yet and putting it back into the business to grow for where you're going to be two years from now versus like right now is scary.

Most people don't have the risk tolerance necessary to be able to do that.

And it's evidenced by out of 100 people who start a business,

nine of them will get to a million dollars in revenue.

Nine percent.

And so if you think about a business doing, let's just call it 10 to 20 percent margins, right?

Like if you have a fast food restaurant, you're doing 11 percent margins.

Like that's what you're doing.

So now you have a business that's doing a million dollars, which let's just call it 11 percent margins.

That's a little over 100 grand that your net profit is.

It is going to take significantly more capital investment than $111,000 to get that business to a million dollars in revenue because you're going to need people, marketing, all these different things.

And so then you've got to go from a million to three million, which is like the death zone for any business because you don't have enough

capital coming in from a profit standpoint to pay for the team that's necessary to get you to three to five million dollars so you're again you're potentially raising capital you're reinvesting you're doing whatever it takes and so this like game of like how do i like remove myself how do i create barriers is in itself hard enough

Versus trying to make the business so complex because you're passionate about it.

Like, who cares?

It's going to be so hard.

You might as well put it on as close to on easy mode as possible by picking a simple business that doesn't have a lot of complexities.

Yeah, so I think most business owners don't have the necessary foresight that they need to create the systems.

Think about the business owner that's the top salesperson at the insurance agency, and he's the agency owner.