When it comes to building a business that generates millions, you have two choices.. Aspiring million-dollar CEOs often find themselves at a crossroads when deciding between creating a seven-figure business and establishing a seven-figure company. Understanding the differences between the two options can pave the way for a strategic and intentional approach to achieving your desired level of success.
There is a fundamental difference between having a business and running a company. Having a business is centered around the individual, where the focus is on the entrepreneur as the primary face and service provider of the operation. In contrast, a company shifts the focus to the team, with an expectation that clients will interact and work with the team members rather than with the business owner.
A 7-figure business can be achieved by serving a relatively smaller number of clients, typically 50 or less annually. This approach can work by offering one signature or select offer, priced between $25,000 to $50,000, and focusing on a lean, automated business success formula. Typically a 7-figure business is a a lifestyle business, which allows for a great-paying job with the flexibility of being one’s own boss, is often characteristic of a million-dollar business.
In contrast, a million-dollar company involves serving a larger client base, potentially 100s of clients. This approach may encompass offering multiple services at different price points, requiring a more extensive team structure with one service provider for every 30 to 40 clients. The emphasis on operational infrastructure and the ability to work oneself out of a job highlights the transition from a business-oriented model to a company-focused approach.
When deciding between which option is best for you, you must understand there are personal, mental, financial, and operational implications of choosing one path over the other. The decision-making process involves assessing one’s leadership capacity and desired level of involvement in day-to-day business operations, ultimately shaping the trajectory of growth and scalability.
Now there is no definitive right or wrong answer when it comes to choosing between building a million-dollar business vs a million-dollar company. Each path comes with its unique set of opportunities and challenges, and the decision should align with individual goals, preferences, and the desired lifestyle.
In conclusion, understanding the critical differences between building a seven-figure business and establishing a seven-figure company is vital when deciding your path to millions and beyond. When keeping these practical considerations and perspectives in mind, I encourage you to make an informed decision that aligns with your vision for business success. Whether it’s the lifestyle of a million-dollar business or the expansive infrastructure of a million-dollar company, the path to millions unfolds uniquely for each entrepreneur.To listen to this week’s episode on the Move to Millions Podcast, visit www.movetomillionspodcast.com
