Your Roadmap to a $10M Net Worth

Hey LinkedIn,

Ever wondered how the rich get richer while you're still calculating if you can splurge on that artisan coffee machine? Well, strap in; I've got the blueprint from a private membership course given by Alex Hormozi on how to hit that $10 million net worth sweet spot.

Strategy 1: Qualified Dividends - The Top 1% Club

Imagine lounging on your yacht, sipping on a drink that costs more than your first car, all because you've invested wisely. To be part of this elite club, you’d need to have $500k to kickstart your investment. By pouring this into the stock market, focusing on companies that offer qualified dividends, you could see your money grow passively.

• Why it works: Qualified dividends are taxed at a lower rate than regular income, meaning your money does more with less being siphoned off by taxes. Think of it as your money getting a VIP pass through the tax system.
• The catch: You need that initial capital, and you need to know which stocks will be the golden geese. It's not just about investing; it's about investing smartly.?

Now, if you’re reading this and realizing this method has tax savings that it leverages to increase the amount of capital actually being invested (AKA has the most “bang for your buck”) – congrats! You probably have some insight that most business owners do not.

Don’t you wish you had a situation that you could leverage, save on taxes and increase the amount of return you’re getting from your asset?

Stay tuned… I have something for you!

Strategy 2: Straight Income - The Grind Method

This is the strategy for those who believe in the power of the daily grind. To get to $10M, you'd need to earn a whopping $15M over your lifetime. But here's the reality check - after taxes (in most cases, a hefty 67%!), you're left with just over $10M.

• The Breakdown: This method involves no fancy footwork. Just earn, pay taxes, and hope your salary keeps up with inflation. It's straightforward but requires a lifetime of high earnings or a significant chunk of your income going into tax-efficient savings or retirement accounts.
• The Reality: Unachievable for most. However, most of us rely on this method to get to our retirement “nest egg” because, frankly, it's what's accessible. Forget about this not exciting, and it’s definitely not the fastest route to wealth.

Strategy 3: Income + Passive Investing - The Smart Money Moves

This strategy is for those who understand the power of compounding but also recognize the importance of strategic investment.

• The Plan: Invest $1M annually at a 9% return for 10 years. Sounds simple, but here's where it gets nuanced.
• After-Tax Income: If you make $1M a year, after taxes, you're looking at about $670k. Investing this requires you to make decisions that will outperform the tax drag.
• Compounding Magic: The investments made in the early years are crucial because they have the longest time to grow. It's like planting a tree; the earlier you plant, the taller it can grow. Plant in the wrong area, you’ll be lucky to get a sapling… and if that happens, you lose the leverage of “compounding”. Get the drift?
• Skill Set: This isn't just about throwing money into stocks. It's about understanding market trends, diversification, and sometimes, taking calculated risks.

Now, for the Rest of Us: Building a Business - An Asset!

Strategy 4: Income + Active Investing (Private Equity) - The Entrepreneur's Dream

For those who love the thrill of building something from scratch, or for most of you that are in the middle of that grind, this is your strategy. If you scale your business, it owns most of the assets (i.e. equipment, back office systems, strong employee culture, etc), it has a diversified client base and it is NOT dependent on you (the owner) for it's daily survival - you're onto something!

• The Business: Not just any business, but one in industries like HVAC, dental offices, or home healthcare. These are seen as stable, with predictable cash flows, making them attractive for high multiples when sold.
• The Multiplier Magic: If your business generates $1.2M in owner's earnings, selling at a 10x multiple (and after capital gains tax) nets you $10M. Some businesses have even fetched 14x!
• Exit Strategy: Here's the deal... It's not just about building; it's about planning your exit. When working with us, we focus on structuring your business for maximum value, ensuring tax efficiency, and preparing for a sale that maximizes your return.

Remember "most bang for your buck" from the beginning of this article? This is what I'm talking about... leveraging the optimization of an asset while minimizing your tax exposure.

Most of you are sitting on that yacht mentioned in the first strategy's story and don't even know it!

This year, we aim to guide 10 business owners in these lucrative sectors to not only achieve but exceed the 10-14x EBITDA multiplier. We're here to:

• Benchmark: Get your business to the right metrics. We provide the strategies AND the capital!
• Strategize: Plan your exit so when you sell, you keep more of what you've earned.
• Execute: Whether it's preparing for sale or even buying your business outright.

10 - That’s it. That's the number.

Are you one of our 10? Don't wait for an ad campaign, because we aren’t doing that; this is exclusive. Reach out to me directly here on LinkedIn. Let’s discuss turning your business into your golden ticket or even discussing a potential acquisition.

Why gamble with your life's work, when you can strategize your way to success? Send me a DM, and let's make your business the next big thing!

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Carpe Diem,

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Jose Sauceda | BDA Solutions

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P.S. Remember, this isn't for the masses - just for the savvy few looking to leave a legacy. Let's make it happen!

Disclaimer: Jose is not a financial adviser; please consult one. Luckily, he has a team of financial advisers, business professionals and attorneys that you can work with.