Slow growth is better than no growth or an infinitesimal decline.
My wife is the math wiz in my house. Yet even I know that if you improve 1% a day, the results over the next year will be massive because of the power of compounding.
The great news for those that are self-employed, we can experience the power of compounding in our businesses right now.
The Power of Compounding
Albert Einstein called the power of compounding the 8th wonder of the world.
If we improve 1% each day, every day, we will grow more than 3,678% in one year. THAT IS THE POWER OF COMPOUNDING.
The opposite is true. If we decline 1/10 of 1% each and every day, at the end of the year, we will be more than 30% WORSE OFF than we were if we stayed static.
But living beings are never static. We are either growing or dying.
What Will You Improve On Today?
It may be daunting to consider improving by 3600+% in a year.
IF we think of it in terms of growing our income, that improvement would take us from $1000 per week to an annual income of just over $1.96 MILLION.
That is ridiculous! It’s impossible to go from $52,000 a year to more than $1.96 MILLION, right?
No.
It is possible. For many though, it will never happen because of their lack of faith and belief.
I count myself in that group.
I see no way for me to make nearly $2 million next year. And I am truly poorer for that thinking.
How To Generate More Money
Are you self-employed like me and want to generate more money?
If you answered “yes”, the simple answer is to generate one additional dollar at a time.
But in the above example, that would mean more than 1.96 million transactions.
What if we could help more people at a higher dollar rate?
If we help 5,000 people in a year, and they each pay us $390 or so, we make $1.96 million.
If we help 10,000 people in a year, that means we need to charge only $196.
But do we have 5,000 to 10,000 people we can sell something to? My answer is not yet.
So I do not aim to help 5,000 people. I aim to help 5 per week. At the end of the year, I have helped 260 people.
If I can help more people the following year, I will eventually build my audience from 260 to 5,000 without having to wait 19 or so years.
As I help more people, they will share with others.
Helping people and growing your audience is not linear. You might go from an audience of 75 to an audience of 1000+ in ONE WEEK. Just as my friend Jeff Goins did.
Build On Your Skills and Abilities
If you want to grow and your audience and your ability to make a living doing what you love, you need to provide value and not be afraid to profit from your skills and abilities.
You do not need to invent something from scratch. You need only do something 10% then someone who is already doing something that you can do.
Uber is the world’s largest taxi company but it does NOT own any vehicles.
Facebook is the world’s most popular media owner but does NOT create content.
Airbnb is the world’s largest accommodation provider but owns NO real estate.
What they have in common is they found something that people were already using and they improved upon the user’s experience.
What can you use your skills and abilities to improve?
This is a modified version of a post that was originally posted on my previous blog, FaceYourGoliaths.com
