Business Growth?

Question

After the first year of business, my relative made about 75-80k take home. If the business continually grows and becomes more established (via word of mouth etc.) how much do you estimate they will take home for the 5th year? for the 10th year?

Answer 1

Usually it take a couple ofyears to become solid... so who knows.  A lot depends on supply-demand.  It could be they plateau and don't grow any more.

Expenses could go up dramatically cutting into the 75k.

Do they have written biz plan and a way to achieve more growth.. vision for growth, steps to get to desired level etc. ?

Answer 2

There's no way to accurately predict this.

It could grow uncontrollably. It could sustain. It could drop like a rock.

Has your relative learned the power of duplication? Whatever he's doing now seems to work pretty well.

Tell him to duplicate his business entity, therefore doubling his earning potential. Duplicate it again, and again, and again.

Duplicating a simple thing over and over is the key to success. Why do you think McDonald's is so successful? They don't sell a $20,000 hamburger. But they do sell a $1 hamburger 20,000 times...

Answer 3

It is difficult to predict the projected growth of income because of various factors, (i.e. number of active users, number of people signing up, number of people dropping out, etc.)  In a perfect world, if your relative makes 75-80K today , it means they are agressive and have been making the right choice.  It all depends on how active and agressive are those who sign up, Things can definitely double or even quadruple.  You'll have to just watch the progress and hope for the best.