.

I came across a bit of shocking information to me the other day.  The information is in regards to the level of success that American small business's enjoy, or should I say don't enjoy.

On average of 100,000 small business, 95% fall short of gross sales of $1,000,000.00 per year.  Of the 5% that hit the $1,000,000.00 mark, only 1% of that 5% ever hit the $5,000,000.00 mark.  Of that final percentage, only 1.6% of those businesses ever go on to hit the $10,000,000.00 mark in gross sales.

In many industries, a net profit margin of 5-10% would be considered good.  In my experience, the majority of people who work for themselves are looking to generate higher levels of income, yet the vast majority of small businesses never hit the $1,000,000.00 mark.  Obviously, there is a great deal of variation between industries.

Lets take my previous company for example.  On good years, we ran on about a 15% net profit margin.  In any business, cash flow is critical.  In the real estate industry, great deals of revenues can pass through the bank account yet never actual end up on the dinner plate.  With a 15% margin we were able to create a decent income on a couple million dollars in annual revenue.  With that, we worked nearly every day of the week, had massive overhead, incredible amounts of exposure, and higher than normal stress levels.

What is my point in this post you may ask.  We as business owners and entreprenuers set out to take control of our financial life as well as our time and quality of life, yet the reality is, most people trade an 8-5 M-F for a 6-8 M-Sun in the pursuit of a dream.  The majority of businesses create large scale debt out of the gate with the hopes of turning a big profit.  Again, in my experience, with a small business the more you make the less time you have to enjoy it.

Don't get me wrong, I consider myself to be unemployable.  I would rather work for beans and know I am working for a purpose, where my efforts are rewarded in a job well done and that the income will come eventually with consistent effort. 

For 95% of people who go out in pursuit of their bit of the American dream, most will fall short.  What if there was a way, where you could realize that dream of business ownership, without the traditional headaches, and instead of running at less than 20% profit margins, over time, you could run at 90% profit margins. 

To me, that is where it is at.  Minimum exposure, hard work, constant effort, and knowing there is truly a light at the end of the tunnel where my family and myself can experience an extraordinary lifestyle.  Yes I can see it now!