From $0 to $2,000,000: Lessons From My First 7-Figure Side Hustle

I’m excited to share 5 simple lessons from my experience building and selling a 7-figure side hustle.

When I was 26, I started an Amazon FBA e-commerce business.

In 4 years, I sold more than $5 million worth of product.

I never quit my day job and didn't hire a single full-time employee.

It was a fun journey, but it wasn't easy.

I made many mistakes along the way want to share a few of my reflections with you.

This issue is really about mindset. In order to achieve the outcome you want you need to be thinking about the right things.

We'll be diving into 5 mental models in today's issue:

1. Do not be afraid to lose money.

2. It’s a marathon, not a sprint.

3. A side hustle is not passive income.

4. A goal without a plan is just a wish.

5. Momentum is real. Harness it.

If you were forwarded this email, sign-up below to receive 1 weekly tip to unlock financial independence. 100% Free.

Lesson #1: Do not be afraid to lose money.

The very first step I took was opening a separate bank account and depositing $15,000.

It doesn’t need to be $15,000.

Perhaps it’s only $1,000. The amount of money isn’t what matters.

What matters is the act of physically opening the account in the first place.

The psychological and emotional value of opening a separate bank account and transferring an amount of money you are comfortable losing is extremely powerful.

• You will spend more freely on the the things your business needs.

• You will feel a sense of accomplishment.

• You will kickstart momentum.

You should never start a business with more money than you can afford to lose.

Putting too much money on the line too early will introduce a sense of anxiety that will cloud your judgement.

You will act emotionally, rather than rationally.

So open a bank account and transfer money you can afford to lose.

You’re already ahead of 90% of your peers dreaming on the sidelines.

Lesson #2: It’s a marathon, not a sprint.

I’m notoriously impatient.

But I’ve learned that building a business doesn’t happen overnight.

It takes small, steady and consistent progress each and everyday.

• Spend 10% of your time focused on the outputs: revenue, traffic, customers, etc.

• Spend 90% of your time focused on the inputs: systems, processes, scalability, etc.

We often overestimate what we can achieve in 1 year, but dramatically underestimate what we can achieve in 3.

Lesson #3: A side hustle is not passive income.

Nothing is more appealing than watching your money work for you.

Trust me, I get that.

But I’m here to tell you that building a cash flowing side business is not the same thing as collecting passive income.

No matter what business model you choose, your side hustle will be work.

• It takes time to hire, train and manage people.

• It takes time to launch a product or write content.

• It takes time to setup standard operating procedures.

Unless you are already an ultra-high net worth individual, and you invest all day for living, it is going to take real work to get ahead.

PS. If what you actually want is 100% passive income, just invest in commercial real estate instead.

Lesson #4: A goal without a plan is just a wish.

Planning is a skill. It takes practice to do it well.

The reason most entrepreneurs fail with their first venture is an inability to plan ahead.

To tie together:

1. The opportunity they're chasing.

2. The resources at their disposal.

3. The time it takes to get there.

My quick tips for effective planning:

• Define key points of leverage "KPIs" in your business (eg. traffic, content, SKUs, etc.)

• Create simple action items to progress against each point of leverage.

• Review and measure your KPIs quarterly.

• Make smart adjustments.

• Repeat.

Overtime, this simple, yet powerful goal setting framework will ensure stuff gets done.

Slow, but steady.

In a few years you’ll look back and be proud of what you’ve built.

Lesson #5: Momentum is real. Harness it.

It’s difficult to explain, but the mind is a powerful force.

When you see a plan, turn into action, turn into accomplishment, you will feel a sense of empowerment.

Everything starts to become just a little bit easier.

And guess what — the outputs start growing.

The business starts clicking and things begin to snowball.

More eyeballs... more leads... more customers... more revenue.

You may be thinking:

Well what if it doesn’t feel that way? What if the more energy you spend, the more difficult things become? The less progress you feel you are making?

Then take a step back.

Refresh the mind and look at the venture objectively:

• Are you still working on the right leverage points in the business?

• Is the market opportunity you originally identified still there?

• Is your time better spent on a new opportunity?

It can be difficult to walk away from something we’ve spent a lot of time building.

But sometimes we need to do just that.

Remember, you started this business with money you could afford to lose. It’s completely fine to adjust course and start again.

Turn a "failure" into a learning.

That’s it for today.

5 simple mindsets all entrepreneurs need to embrace:

1. Do not be afraid to lose money.

2. It’s a marathon, not a sprint.

3. A side hustle is not passive income.

4. A goal without a plan is just a wish.

5. Momentum is real. Harness it.

If any of this resonates with you, feel free to reply to this email.

Until next week,

Danny