10K Hackers Week 2 Update- Forging Ahead with Long Term Vision
Week 1 was exciting!
We saw real progress, made some moves and surely ran into some good luck in getting %14 of the way to our goal in just a week. This week was different. Slow from the outset, new challenges presenting themselves and the grunt work that is required in an early stage startup that we’d much rather outsource down the road needs to get done.
The disappointing numbers for week 2 showed just a $567 weekly income, but it was everything else that happened that should really be brought to focus. Something that is important to understand when you are in the early stages of your business is that huge, major roadblocks will consistently be presenting themselves in the way of unplanned expenses, corporate structuring, expansion hurdles such as licensing and other regulations will all come at you, many times all at once. That was my week two and though it was challenging we managed to get through it and turn a profit despite spending the majority of our time on other aspects of the business that do not necessarily create immediate revenue, but rather provide the essential base for which a passive income business can be built upon.
Long Term Vision
While the obvious path for most entrepreneurs in the beginning stages is to create revenue and proof of concept, it is vital to take a step back and see the bigger picture. I knew that in producing revenue this quickly I had my proof of concept and that this business could grow quickly, however I also knew that there is only so much low hanging fruit that can be picked before the real seeds of growth needed to planted in order to build a business that is built for the long term.
The path of least resistance is clearly the most trafficked these days by new business owners looking to strike it rich. While it has never been easier to build an online business or a side hustle selling on Amazon or Ebay, it is also a business in which very few entrepreneurs really succeed at a high level for a long duration. This is because the rush of other entrepreneurs soon arrives, selling the same items sourcing the same products from Alibaba and creates a race to the lowest price on these seller platforms. The same was true in my own business.
I knew that anyone could easily replicate my business and once this idea became interesting to enough other professionals in my industry, the inevitable influx of competition would drive down prices and reduce my businesses revenue unless I created something that others could not easily replicate. Through a massive amount of research on the current real estate markets nationwide and an understanding of where my services would be most valuable, I realized that out of the 3 markets I was currently in, all ranked very low in terms of Foreclosures and asset disposition in comparison to other markets around the country. This fact drove me to the conclusion that I would have to take some very difficult and very expensive steps in the beginning stages of my business in order to expand to new markets across the country.
This is no easy feat in the real estate industry as just being a licensed agent in one state can be very expensive. Nearly every state requires background checks, fingerprinting, 60-90 hour pre licensing classes, state and national exams that require exam fees, initial license fees, and on top of that once all these requirements were fulfilled, continuing education is required in all states through even more classes, license applications and fees and then monthly fees are required to be a member of the MLS. Quarterly fees are required to be a member of each board of Realtors in each area many times running nearly $1,000 annually and after all of this I would also need to pay each broker in each state a monthly fee just to be a member of their brokerage firm.
But what I also knew was this colossal barrier to entry with months of licensing education and exams and tens of thousands of dollars in ongoing fees thereafter would prevent at least 99% of agents from trying to tread this path.
In short, by taking on this massive undertaking that nearly no one else was willing to attempt, I would in the end have very little competition and a massive portion of the national market share by enduring the short term financial burden and mental exhaustion derived from passing over 20 licensing exams. To build a truly remarkable and unique business I needed to not take the path of least resistance, but instead one marred with near overwhelming challenges.
I knew that if my vision was true, if my idea was really valid and I was ready to take on this challenge, I could eventually be in a position that very few could ever reach without tremendous obstacles. I knew that if I could get into position at the right time, before anyone else and get through this trial of will, I could create something extremely rare, powerful and lucrative.
They say entrepreneurship is living for a few years like many aren’t willing to in order to live a life that others cannot in the future. Now was my time to begin the biggest trial of my life. I was ready…
I knew then that my next step was expansion. Smart expansion into markets that would allow my business to thrive for years to come. Next week in my week 3 update I will outline this expansion and the massive commitment necessary to create the passive income money system that will soon drive me to the 10K goal.
Week 2 Numbers- Profit- $567
Overall monthly Profit- $2034
Progress- 20% of goal