7 steps to building your own million-dollar business

7 steps to building your own million-dollar geschftliches miteinander7 steps to building your own million-dollar businessMaybe you want tostart your own business in midlifeso you can escape the corporate grind, gain more control of your time, or pursue a long-postponed passion.The goal isnt to get rich Youd be delighted to match your income from your last job, or even come close. Breaking $1 million in annual revenue seems like a target best left to young entrepreneurs with the freedom and stamina to work 24/7.Follow Ladders on FlipboardFollow Ladders magazines on Flipboard covering Happiness, Productivity, Job Satisfaction, Neuroscience, and moreBut some solo entrepreneurs in their 50s and 60s are bucking that conventional wisdom.The $1 million club is exclusive, for sure, but in recent years the door has opened ever so slightly- wide enough for the three small business owners youll meet below to walk in.Of the countrys nearly 25 million nonemployer firms - primarily businesses sta ffed by just the owner - only 36,161 generated between $1 million and $2.5 million in revenue in 2016, according to theU.S. Census Bureau. But thats a 35% jump from 2011.And plenty of otzu sich one-person shops are knocking on the door Nearly a quarter million brought in $500,000 to $999,999 in 2016.While unterstellung high-revenue firms are outliers, the lessons you can take from their success can help you launch your own $1 million idea.Fill a real needTo me, the first question is Does it solve a harte nuss?, says Kelly Lester, a New York City entrepreneur in her 50s who in 2009 foundedEasyLunchBoxes, an online store that sells bento-style, multi-compartment food containers, and built it to a business that has broken more than $1 million in annual revenue.In her case, Lester had found that the plastic containers on the market were too big to fit into the standard insulated lunch bags her three daughters used. The one she designed fit in neatly.If you come up with something that s olves a problem that theres not already an answer for, youre golden, she says.Lean into what you knowWhat often distinguishes high-earning micro-businesses is that the owners specialize in a narrow and well-paying niche they know well. Take Steve Ferreira, the 58-year-old founder of Ocean Audit and a married father of three from the Hartford, Conn. area.Ferreira had worked for years as an auditor in the shipping industry before striking out on his own in 2004. He knew that when department stores order clothes from overseas factories, they often overpay for ocean shipping because of mistakes on the bills.There was money to be made in helping big retailers identify these errors and recoup the money. In whats proven to be a lucrative business model, when Ferreira spots a mistake (the bills are public) he approaches the company and offers to collect the over-billed amount for 50% of the total.With errors sometimes reaching six figures, he has been able to build his business to $1.7 mill ion in annual revenue, with no employees.Ferreira believes that one of his most powerful advantages comes from having deep knowledge of his field ocean transport. Im a bigOutliersfan, says Ferreira, referring to Malcolm Gladwells book. You do 10,000 hours of something, it makes you something of an expert. I have 40,000 hours of expertise in my field.That kind of deep knowledge is an advantage many people have once they reach their 50s.Keep a sharp eye on overheadWhat many lucrative solo business share is a smart approach to operations. The owners find creative ways to extend what one or two people can do without high overhead that would erode their profits.For instance theyll hire contractors for projects like web design and outsource ongoing tasks like shipping so they can focus on high-value work like winning new business. Ferreira, for instance, has hired freelance copywriters to craft email campaigns.Many entrepreneurs automate routine procedures like scheduling appointments, us ing the manyeasy-to-use and low-cost and free apps available. Ferreira gained an edge by hiring a web developer to help him automate his searches for errors in documents that list the cargo on a ship.Market smartWhen Lester launched EasyLunchBoxes, she was looking for a way to help support her family- both she and her husband are professional actors. Without a huge budget for marketing, she made the most of social media.Noticing that food bloggers were taking pictures of the meals they packed into her lunch boxes and sharing them on social media, she shined a spotlight on these bloggers by sharing their posts. That, in turn, helped raise awareness of her brand.Realizing that social media does not stay static, Lester paid close attention to trends, such as the rise of Instagram, and now has a strong presence there.Lately, shes turned her attention to Vine, a video sharing site thats becoming more important. It depends on where your audience is hanging out, she says.No matter what you r business, the key to success is making sales- and the way to start doing that is to meet customers where they are.Stretch your startup cashBy your 50s, you may find yourself with decades ofsavings to tap for your launch- or on tight budget, thanks to unexpected life events.Johan Hattingh of Gig Harbor, Wash. shows that deploying even a small amount of startup cash very strategically can help you accelerate growth, no matter how little you have at the start.When sudden health problems forced him to leave his career in finance while he was still in his 50s,Hattingh, now 69 and a married father of three grown children, had to find a new way to make a living.Given his health, Hattingh decided on a home-based business that did not require a lot of phone work. After doing research online, he landed on the idea of an e-commerce store on Amazon in an area that interested him garden and home ornaments.Hattingh launched his business, Aint It Nice, in July 2011. His upfront investment $700 t o buy inventory from a wholesaler hed found online. He outsourced the storage and shipping of his wares to Fulfillment by Amazon, which gets a cut in merchants sales.Running his store on Amazon meant wide visibility, and he found he loved thinking about ways to make the most of it, such as introducing new items. You wake up in the morning and suddenly, theres a new idea in your head, he says. Or you wake up at night, and theres something percolating in your mind. Youre excited about it and you run with it.As sales started coming in, Hattingh kept records of his best-performing products and weeded out the underachievers. As money came in, he reinvested it in new inventory. My wifes eyes popped when I would order over $5,000 worth of products, he says.Dont be afraid to start smallWhen he launched Ocean Audit, Ferreira realized he had a lot to learn about how best to run his business. So he started modestly. His won his first client by volunteering to look over a small firms bills- and quickly spotted an $800 mistake.Today, $800 would be a disappointment, he says. But at the time, making that first $400- his half of the money recouped- gave him a talking point to mention in passing to other clients.One of the first things you get asked is if you have done this before, he says. You need to be able to say, I did this for so and so.Manage your cash flowAs Johan Hattinghs business garnered positive reviews on Amazon, sales grew. But higher revenues bring new challenges One of the biggest issues is always cash flow and staying ahead of it, he says. Thats the whole thing with growing a business.What helped him was the strong credit hed build over the years- an advantage many people have in mid-life- so he was able to use his American Express card and supplier credit when needed.By 2012, Hattingh brought in $540,000 in revenue for the year. Since then, Hattinghs adult son Eugene, who has a military background, has come on board as a business partner.In 2018, Aint It Ni ce closed the year with just under $2 million in revenue. Hattingh finds that running the business is energizing. Its more than just a job, he says. Its a way of life. Its great.This article first appeared on Considerable.You might also enjoyNew neuroscience reveals 4 rituals that will make you happyStrangers know your social class in the first seven words you say, study finds10 lessons from Benjamin Franklins daily schedule that will double your productivityThe worst mistakes you can make in an interview, according to 12 CEOs10 habits of mentally strong people