Original question from Quora:
What’s a business that can make millions?
There are so many businesses that can make millions. I’ve worked for quite a few businesses that make millions.
When you think about it, it’s not hard to make a million dollars with a business. It’s simply a math problem.
Say you sell a $1 item, like a candy bar. You need to sell 1,000,000 candy bars to make millions. Yet, look around and see how many candy bars are in grocery stores, convenience stores, and so on. The big candy companies sell billions of dollars worth of chocolate.
Also, look around and see how many McDonald’s and Chick Fil A restaurants you see. Chick Fil A has average store sales of $3.1 million per year. McDonald’s is $2.6 million.
So, every time you see any of those restaurants, you see a million dollar business.
There are other million dollar businesses too. There are millions of them. A lot of doctors offices and law firms bring in millions. Even weird niche businesses selling socks can bring in millions.
Hillary Clinton gets paid like $200,000 per speech. I guarantee she did more than 5 of those a year, so speaking can be a million dollar business.
There are so many multi million dollar businesses, that it doesn’t matter what type of business you start, it can make a million dollars. In the grand scheme of things it’s not that much money for a business to make.
Again, it’s just math. Take $1,000,000 and divide it by the average price of what you sell and that’s how many units you need to sell to make a million dollars.
Some businesses are easier to do that with than others. If you are selling new houses, and each is $150,000, you only need to sell 7 a year to make a million dollars. If you are building skyscrapers, you build one a year and you have a multi million or billion dollar business.
Donald Trump makes a lot of money because he builds giant buildings and runs the businesses inside them like hotels and casinos. If his margin is 10%, making that on billions of dollars is a lot more money in his pocket than on millions of dollars.
No matter how you look at it, simply find a business that there is demand for and operate in that market. If you do that, you’ll be able to make millions.
Do you remember POGs or Beanie Babies? There were million dollar businesses that popped up on ebay from selling those things simply because they were the hot item. If there is demand and your business fills that demand, you win.
Here’s a business that could make millions or billions…
California is in a drought right now. Water is scarce. If you could sell water to farmers or make it easier for their water to go farther, they will buy what you’re selling because they are desperate for water.
Another easy one…
Find a stretch of interstate where there is lots of traffic and very few rest areas or gas stations. Build a nice gas station that is trucker friendly and has lots of nice products and services for travelers. It’s not hard to find an empty spot like this in the California desert for example…
Any fool can run a nice gas station and make buckets of money in an area where there is no competition and plenty of demand. That’s an easy million dollar business if you can get it off the ground.
The point is, a million dollar business is one where there is over a million dollars worth of demand and you can create over a million dollars worth of value. It doesn’t matter what market that is. It can happen anywhere.
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