Dear Emerging Conscious Millionaire,

This week I continue my series on how to Become a Conscious Millionaire. If you didn’t read last week’s, just scroll down and read the prior blog post.

In this blog, I discuss the 3 questions you must ask and answer to create your path to Become a Conscious Millionaire. These questions help you assess where you are, how rapidly you want to achieve millionaire status, and the wealth vehicles you will utilize to achieve it.

Note: if you are already a financial millionaire, then utilize this information to set your sights on adding an additional million in net worth.

The first question helps you assess your current profit level.

QUESTION 1: What is your current annual profit level? (These are  your profits from all sources.)

A. $0 to $100,000 US Dollars

B. $100,000 to $200,000 US Dollars

C.  greater than $200,000 US Dollars

If your current profit level is $0 to $100,000, then make a goal to be in the next profit level ($100,000 to $200,000) by the end of the next 18 To 24 months.

If your current profit level is $100,000 to $200,000, then make a goal to be over $200,000 profits by the end of 12 to 18 months.

And, if you are currently making over $200,000 profit a year, make a goal to add at least 25% more profits than you made last yea- by the end of 12 months. For example, if you made just over $200,000 then that would be an additional $50,000. If you made $300,000 profit last year, set your goal on adding at least $75,000 more profit this year, i.e, a total of $375,000.

QUESTION 2: How quickly do you want to become a Conscious Millionaire?

A. 1-3 years

B. 3-7 years

C. 7-10 years

If you are committed to achieving millionaire status, then the longest it should take you is 10 years. This is the mindset you should establish for yourself.

I’m going to give you a “quick estimate” way to think about what is necessary to be worth a million dollars as a small business owner. And, it is one of the reasons that over 80% of the people who become millionaires are small business entrepreneurs. While the formula for how to determine the net value of a business varies with industries and contains multiple factors, if your business has low debt and you have $500,000 in annual profits (AFTER what you as the owner take or expense such as you w2 earnings, draws, expenses), then there is a good possibility that through your business alone (without including other assets) you could be a millionaire.

Another way to calculate your “millionaire status” is through a combination of the net value of your business (after your earnings, draws, expenses) combined with other net value assets such as equity in your home (yes, this counts as part of your millionaire net worth), savings, stock portfolio, net investment value of investments such as real estate and collectables. For example, you may have $250,000 net profits plus $500,000 in other net asset values and by combining these, be a financial millionaire.

This assumes that the business can be sold without you personally having to provide any continuing services (ie, it isn’t built around you, but instead has products and services that would continue if you were no longer a part of the business.)

Now, if you are just starting out or have annual profits under $100,000, consider setting your millionaire goal at 7-10 years for now. Then next year re-evaluate and if your profits are $100,000 to $200,000, possibly shorten your time horizon for becoming a millionaire.

If you have profits are closer to $200,000, then consider a time period of 3-7 years to become a millionaire. And, if your profits are over $200,000 and are rapidly growing, then you may be able to become a millionaire in the next 1-3 years.

Each person and company’s situation is different and these are not guarantees or actual valuation. You would need to have an expert in business valuations, which may be your CPA or attorney review your personal unique situations. The purpose of this blog is to help you in establishing your initial millionaire goals.

QUESTION 3: How will you create your wealth – what vehicles will you utilize?

A. building a small business / entrepreneurship

B. specific investments such as real estate

C. diversified professionally managed portfolio

Remember that over 80% of people who become millionaires do so by being small business owners. At the same time, many if not most people who build wealth do so by also having real estate or other specific investments as well as putting part of their business profits into a long term diversified portfolio.

Join me again next week as I continue my blog series on how to become a Conscious Millionaire.

To YOUR Entrepreneur Success,

.

J V Crum, III, M.B.A., J.D., M.S. Psy

Author, “Conscious Millionaire: The Formula for Creating Wealth.”

Keynote Speaker, Event Presenter, Radio and TV Guest Personality.

Small Business Coaching, Entrepreneurship Training, Leadership Development

Founder/CEO: Conscious Millionaire Institute, LLC / Conscious World Foundation, Inc.

www.ConsciousMillionaire.com

www.ConsciousMillionaire.com/blog

www.ConsciousMillionaire.com/contact

Keywords: conscious business, conscious entrepreneurship, conscious leadership, small business coaching, small business coach, leadership development,  small business advice, complimentary coaching session, entrepreneurship training, j v crum III