How to Start a Business and Grow it to a Billion Dollar Company

– Fancy homes. Private jets. Condos overlooking the Strip. I’ve had it all. But you know what one
thing I haven’t had is? I haven’t built a billion
dollar company yet. And I’m gonna share with
you how to build one, and the mistake that stopped
me from building one yet. (gentle instrumental music) Most of my friends are entrepreneurs. Similar to me, they’ve done well. And when you look at me, you
think, oh successful guy, nice home, he has money,
he dresses decent. But you know what, compared to my friends, I’m really, really poor. I have a lot of friends whose salary, not business revenue, but their salary is in the hundreds of
millions of dollars a year. I have friends on the Fortune 1,000 list, and people are worth five, 10… Actually I don’t know anyone above 10, but I know quite a few people between five and 10 billion dollars. That’s a lot of money, right? People think millions of
dollars is a lot of money, no, billions of dollars is a lot of money. I’ve seen some of my
friends walk in a Vegas casino, and people are
really sad, and they’re like here’s 50 grand. But you know what? Them giving 50 grand to people is like me giving a dollar to someone. That’s how rich they are when they’re worth five or 10 billion dollars, on the Forbes, or Fortune 1,000 list. So here’s a thing that you need to do if you want to build a
billion dollar business. It’s not about how hard you’re working, or how smart people you have on your team, because you know what, to create a million dollar business, or a
multi-million dollar business, you need that as well. But the difference between
creating a business that does hundreds of
millions, versus billions of dollars is you need
a business that solves a problem for a really big market cap. One of my first businesses
is called Crazy Egg. A lot of businesses are using it. We have hundreds and
thousands of companies that are using Crazy Egg
each and every single month. And what it does is it helps
you optimize your website, so that way more of your visitors convert into customers,
and that’s a decent pain that a lot of people are experiencing. But here’s a problem, and here’s why Crazy will never be a billion dollar business. It doesn’t solve a big enough problem. Now think about Uber on the other hand. They’re solving transportation problems. They’re making it more efficient for you to get to one place, to another, and spending less money doing that, and best of all, you
don’t even have to drive. You can be a poor person, and now you can have a driver just like
those rich people have. Uber is solving a huge problem. It was such a big problem that they increased the market size
of the whole taxi industry. That’s right, before Uber, the taxi industry was actually smaller. They didn’t just take a
portion of the taxi industry, they grew it, and making it way bigger. So if you don’t solve a big problem, and go after a huge market, you’re not gonna create a billion dollar business. Now whatever idea you have,
you have somewhat competitors. It may not be direct competitors, like Uber’s not directly
competing with taxis. A lot of people aren’t like should I take a taxi, or Uber, it’s more so they’re like oh I need to go to a place, I’d rather have an Uber, versus having my own car. Like me, I don’t even drive, right, but when I’m in New York it’s easier to grab a cab, then it is
to grab Uber in most cases. But if you’re not going
after a really big market, you won’t do well. And a lot of people,
and you may be thinking, hey if I wanna create a
billion dollar business, I wanna create this new
category, but no, stop. Sure you can innovate in a sector, but go after something
that’s a really big TAM. If you’re not familiar with TAM, T, A, M, stands for, TAM is total
addressable market size. So if you go after something
big like a Salesforce’s market size, or the CRM market, and lets say they’re worth 50 billion. Will we be bigger than Salesforce? If you dream it, maybe it’ll happen. But chances are you’re
not, but that’s okay. If you’re, you know, 5% of Salesforce, you’re still a billion dollar company. So if you go after something
that’s really huge, like the advertising
space, or the CRM space, or support, or if you
go after transportation, or automation, or trucking,
or shipping containers, how boring that may sound, like companies like Docker, or Dock,
or whatever they are. They’re huge. It’s because they’re going after something that’s totally big. And if you go after a
really huge market size, even if you take 1% of
it, you can do well. I was at a conference the other day, speaking in Arizona, and
a company was holding it. It was called NexCon, and it was held by this company called Nextiva, which offers voice over IP phone services. And they’re already doing over 100 million dollars in revenue. And you know what the founder told me? He’s like, “Neil, it’s
crazy, the voice over “IP market, you know like
those Vonage commercials, “the woo-hoo, hoo-hoo-hoo,
and you pick up the phone, “and you can call over
the internet, those guys? “That market has only 8% penetration.” That means 92% of the people out there are still using landlines. That’s a small market penetration. But that means five, 10 years from now, it can grow to be even bigger and bigger. Yeah Nextiva’s doing
over 100 million dollars, and they’re not even the
biggest player in this space. There’s companies like Ring Central, and Vonage, that are already
worth a billion plus. But as you can see, you probably haven’t heard of Nextiva, yet they’re still making hundreds of millions of dollars. So if you go after a huge
market, you have a much better shot of creating a
billion dollar business. And that’s why you see
me creating multiple products in the marketing space. It’s not that I want four, or five different companies, it’s because I can combine them all, and I eventually will, and I can have a business that’s going after a really big TAM. Total addressable market. And if you go after a big
market, what does that mean? You can have a big company. So if you’re not sure if your idea is going to be big enough, where you can hit that billion dollar
mark, leave a comment, and I’ll respond, and I’ll tell you if it’s a big enough idea. And if you’re unsure, and you need help, go to Google Finance, you can see other publicly traded companies,
and their financials, that’ll help you determine
if idea’s a good idea. You can just type in a stock hold like Apple, AAPL, and it’ll reveal their stock price, and market cap. The other thing you can do is go look at Google Trends, and type in key words related to your space, and it’ll show you how many people are searching for stuff related to your space,
like the word computers. So once you have that
chart, and if it’s huge, you’re doing a good job. If it’s small, you’re doing a bad job, and compare it when you’re
using Google Trends, to the term digital marketing. It has to be at least 10 times bigger than the word digital marketing. And again, if you’re
unsure, leave a comment, I’m here to help you out. Make sure you subscribe to the channel, and I’ll speak to you in my next video.


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