You want your time to be used wisely when you start your own business. That means you should know the most profitable businesses to start with the time, education, resources, and connections you currently have.

What’s considered “profitable” is always changing, of course, and that’s why we continually update our rankings. Every year the most profitable businesses will change slightly as our economy evolves, products become obsolete, and technology advances.

What follows is a freshly updated ranking of the most profitable small businesses, plus the info and resources you need to get started.

[su_note note_color="#dbeafc"]You’ll want to check out the following businesses. Click on any of the links below to jump to the one that interests you.

• Industries With the Most Profitable Business Ideas
• What Small Business is Good to Start?
  • 1. Cupcake Business
  • 2. Sports Memorabilia Shop
  • 3. Bridal Gowns and Accessories
  • 4. Consignment Shop
  • 5. Food Truck
  • 6. Bed and Breakfast (B&B)
  • 7. Party Rental Business
  • 8. Sewing and Alterations Shop
  • 9. Gently Used Maternity Clothing Shop
  • 10. Cleaning Service
  • 11. Virtual Assistant
  • 12. Social Media Management
  • 13. Accounting and Bookkeeping
  • 14. Consulting
• Least Profitable Industries
• Frequently Asked Questions (FAQs)
  • What are the top five most profitable businesses in the world?
  • What are the easiest businesses to start?
  • What businesses are in high demand?
• So What Are the Most Profitable Businesses to Start?[/su_note]

Industries With the Most Profitable Business Ideas

First, some context. We took a look at financial reports from early 2024 to ensure relatively recent data. When you consider industries with the most profitable businesses in demand, you’ll find:

1. Financials: The monetary sector leads the most profitable companies, with over 30% net income and gross profits for banks nearing 100%.
2. Oil & Gas: The oil and gas energy still has high net profits with 28.26% and a gross profit of 58.75%
3. Tobacco Companies: Selling addictive products pays off with a 27.52 net profit and 61.25% gross profit. If you could start growing and selling your own tobacco, you’d probably make a killing!
4. Transportation Companies: Railroads aren’t making as much as previous years, but they still have a 23.52% average net profit. Ship makers also have been making a great living.
5. Real Estate Investment Trusts (REITs): Real estate investment trusts are a big winner this year. They moved up from ninth place last year. Players in this industry can expect to earn 23.32% net profit and nearly 78% gross margins.
6. Software: Entertainment and system applications software companies are doing well with 20% net margins. Entertainment software has gross margins of 63%, while systems and applications have around 72% gross margins.
7. Investments and Asset Management: Managing other people’s money is an easy startup business. People with the right qualifications can tap into 19.82% net income and 67% gross margins.
8. Water Utilities: Providing water to municipalities can earn a sweet 19.34% net margin and 56% gross margin.
9. Semiconductors: Producing parts for electronic equipment can earn 17.94% net profits.
10. Computers: Computer and peripherals companies have a slightly less profitable business than the semiconductor companies that provide much of their technology, but they still have 17.47% profits.

Many of the most profitable businesses aren’t practical for people who want successful small business ideas for business owners.

Most of us don’t have access to venture capitalists or the ability to run a business for 10 years before it starts making money. So, we’re constraining our list to the most profitable and best small businesses to start.

What Small Business is Good to Start?

A good small business to start will normally have high growth opportunities and low barriers of entry, work well as a home-based business, and provide great profit margins. We’ve handpicked some of the most profitable small business ideas for you. Check out our picks for best profitable businesses 2024 below.

1. Cupcake Business

• Average Annual Revenue: $1.95M
• Average Profit Margins: 5.4%
• Startup Costs: $100-$3M
• Time To Revenue: 1-6 months
• Annual Market Growth Rate: 1.1%
• Best For: Cooks, chefs, bakers, or foodies with customer service, leadership, and marketing skills

Does your baking prowess receive rave reviews?

Consider exploring that talent! The cake industry is anticipated to see 3.3% growth, bringing it to $94.7 billion globally in 2028. Small specialty shops are poised to reap the majority of the profits.

A cupcake business emerges as a feasible option for individuals with limited resources. Launching this potential home-based venture requires only an oven and basic baking supplies.

As sales pick up, there's room for expansion to larger formats. Initially, you might sell cupcakes in a display case at a local shop, progress to a food truck, and eventually establish a standalone brick-and-mortar store.

Before diving in, thoroughly research the laws in your state governing the licenses, permits, and standards applicable to your budding bakery business.

Find out how Mignon Francois started the Cupcake Collection with just $5 and built a $10 million cupcake empire.

https://www.youtube.com/watch?v=jmviDvmh5js

2. Sports Memorabilia Shop

• Average Annual Revenue: $453,257
• Average Profit Margins: 6.7%
• Startup Costs: $100K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 1.5%
• Best For: Sports and pop culture experts, customer- and community-focused entrepreneurs, collectors

The current valuation of the sports memorabilia market is $26.1 billion—and it’s expected to grow to $227.2 billion by 2032 according to a report by Market Decipher.

This projection suggests significant annual profits for brick-and-mortar sports memorabilia shops. The essence of this small business concept lies in acquiring genuine or replica memorabilia and reselling it at a markup.

Procure memorabilia through various channels, including wholesalers, auctions, estate sales, advertisements, and online platforms like eBay. Make sure to confirm the authenticity of any signed memorabilia by autograph authenticators.

As you become proficient in authenticating pieces, you can generate additional income by authenticating memorabilia brought to your shop by customers.

Find out how Jim Sears makes $750K a year selling sports cards.

https://www.youtube.com/watch?v=bP5_Zt9VFXY

3. Bridal Gowns and Accessories

• Average Annual Revenue: $114K+
• Average Profit Margins: 10.3%
• Startup Costs: $500-$250K
• Time To Revenue: 3+ months
• Annual Market Growth Rate: 2.0%
• Best For: Designers, artists, and fashion experts with strong marketing and customer service skills

The bridal industry is expected to grow to $79.8 billion by 2027, which is a compound annual growth rate of 4.4%. According to BusinessWire, nearly 85% of bridal shopping is still done in retail stores.

Pro Tip: Note that bridal shops may cost $250,000 or more to get started because of all the gowns, veils, and accessories you’ll have to stock for your customers.

4. Consignment Shop

• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Costs: $100-$10K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best For: Fashion and style experts who are excellent negotiators and communicators

The projected growth of the secondhand market in the U.S. is astonishing. According to GlobalData and thredUP, the resale clothing market is expected to more than double its current value. With a growth rate that’s 16x faster than the overall retail clothing market, the resale clothing industry will reach a value of $82 billion by 2026.

A consignment shop is the ideal business model for entrepreneurs with limited funds. Entrepreneurs can participate in the profits without purchasing inventory by showcasing other people’s used products, including clothing, antiques, collectibles, and memorabilia.

Additionally, selling items on online marketplaces like Poshmark, Mercari, and eBay creates additional profitable opportunities by expanding to a national or even global market.

Primary consignment shop expenses are:

• Business formation as an LLC
• Storefront rental
• Licenses and insurance
• Inventory
• Point-of-sale (POS) system
• Hiring (if needed)

Overall, the growth in the secondhand market presents a promising opportunity for entrepreneurs interested in the consignment business model.

5. Food Truck

• Average Annual Revenue: $41K+
• Average Profit Margins: 6.4%
• Startup Cost: $1K-$100K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.2%
• Best For: Foodies, chefs, cooks, bakers, and other food service veterans

Many people start food trucks because they are more profitable than owning a restaurant. You can save money by:

• Holding off on hiring employees
• Avoiding the costs associated with a building
• Offering a more focused menu

Kyle Gourlie, the owner of Vet Chef, told us:

[su_quote]To get started, it cost me around $41,200. Today, I am making $417K a year and aim to keep my food costs under 35%.[/su_quote]

Check out our interview with him below to learn how to start a profitable food truck business.

Keep reading for more of our top small business ideas that will make for the most profitable, best businesses in 2024.

6. Bed and Breakfast (B&B)

• Average Annual Revenue: $263K+
• Average Profit Margins: 10.1%
• Startup Cost: $100K-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: 1.3%
• Best For: Property owners who are service industry pros with a passion for entertaining and hosting

If you happen to own a charming, rustic, or historically significant home, a bed and breakfast could serve as an excellent starter business.

According to the Bureau of Labor Statistics, the U.S. bed and breakfast (B&B) industry is presently valued at $2 billion. While it faced a slowdown during the COVID-19 pandemic, its typical growth rate stands at 3.8% annually.

One notable advantage is you’ll live in the business, which cuts down the costs of accommodations. Customers normally expect:

• Personalized customer service
• Unique travel experience
• Home-cooked meals
• Grocery stores nearby
• Personal advice about local attractions

Pro Tip: It's important to invest in home insurance, a food handling permit, and potentially a license to sell alcohol, if applicable. Additionally, if you plan to convert a traditional home into a B&B business, collaborating with your local planning commission may be necessary.

7. Party Rental Business

• Average Annual Revenue: $444K+
• Average Profit Margins: 35-40%
• Startup Cost: $100-$3.5M
• Time to Revenue: 6-18 months
• Annual Market Growth Rate: -0.8%
• Best For: People who own rentable assets, collectors, great networkers

The party rental industry boasts a valuation of $5.9 billion and is experiencing a steady annual growth of 4.3% as indicated by Research and Markets.

A business in party rentals involves leasing various products for events, including tables, tents, caterers, sound equipment, and stages. The venture holds significant profit potential, and your business could cater to a range of events, from nonprofit fundraisers to upscale galas.

While the potential earnings are promising, it's crucial to make a substantial upfront investment in equipment before expecting to see profits. The strategy involves recovering these costs through repeated equipment rentals.

When setting up your business's inventory, you can consider the option of renting a storage facility to potentially save costs. Then maximize community awareness of your offerings by engaging in robust marketing efforts. Establish a physical location as early as possible to build brand credibility and reap long-term savings.

8. Sewing and Alterations Shop

• Average Annual Revenue: $27K+
• Average Profit Margins: 8.3%
• Startup Cost: $500-$250K
• Time to Revenue: 3+ months
• Annual Market Growth Rate: 1.6%
• Best For: Detail-focused entrepreneurs, fashion and clothing experts who excel at listening and communication

Tailoring and alterations earn $9.4 billion, and the industry is anticipated to experience 4.7% year-over-year growth according to a report by Polaris Market Research.

The beauty of venturing into this type of business lies in its scalability, plus it will help you expand your skill set. Tasks like sewing simple hems and replacing buttons might evolve into dressmaking and design as your knowledge and experience grow.

I actually have an acquaintance who designed costumes for Cirque de Soleil before opening her own small business. With that experience in altering and customizing high-end garments, she opened a brick-and-mortar shop and gets asked to design work for businesses and live performances throughout the country.

During the initial stages, it is entirely respectable to launch your operation in a clean, smoke- and pet-free space within your home.

Pro Tip: Begin by making gradual investments in a commercial-grade sewing machine, a variety of fabrics, backup equipment, and a point-of-sale (POS) system. The costs can range from $150 for an entry-level sewing machine to $10,000 or more for a top-of-the-line model.

9. Gently Used Maternity Clothing Shop

• Average Annual Revenue: $60K-$120K
• Average Profit Margins: 5-15%
• Startup Costs: $100-$10K
• Time To Revenue: 30-90 days
• Annual Market Growth Rate: -9.3%
• Best For: Fashion and style experts who are excellent negotiators and communicators

In 2021, the maternity wear industry held a valuation of $12.2 billion, and projections from Research and Markets indicate a growth to $16.5 billion by 2028, featuring a 4.4% year-over-year increase.

The demand for formal business women's maternity attire is notably driven by the nearly 57% female composition of the U.S. workforce, as per the Bureau of Labor Statistics.

Following their pregnancies, many women opt to pass their maternity clothing on to others in need. You can play a role in facilitating this by establishing a shop specializing in gently used maternity attire and other pregnancy supplies.

Start your used maternity clothing venture by selecting and legally formalizing your business structure.

Then, get a seller's permit and source inventory from social media, consignment shops, and thrift stores. Promote your business within the community, expressing your interest in purchasing used maternity clothing. Finally, ensure profitability by selling the clothing at prices that exceed your purchase cost.

10. Cleaning Service

• Average Annual Revenue: $74K+
• Average Profit Margins: 6.7%
• Startup Costs: $1K-$30K
• Time to Revenue: 1-6 months
• Annual Market Growth Rate: 1.2%
• Best For: Self-motivated, independent, and detail-oriented entrepreneurs

Cleaning businesses are virtually gold mines. They’re easy to start, and they have high success rates. Our friend Chris Mondragon pulls in over $125K monthly with his company, Queen Bee Cleaning! In his words:

[su_quote]As you start out, your margins are 40-50%.[/su_quote]

Forty to fifty percent! Seasoned business owners and aspiring entrepreneurs know how significant that is! With only 13 weekly cleaning contracts, you can rake in $7,800—not in revenue, but pure profit! Now imagine signing 20 or 30 of these high-paying contracts.

Cleaning is a business built to scale. But be careful: You can’t scale to millions of dollars just anywhere. There’s a tried-and-true calculation that reveals the earning potential in your area. If the numbers line up, you can scale to seven figures.

If you’re curious about how to use the calculation and want to know how to start your cleaning business from scratch—no franchise required—check out this free masterclass with Chris Mondragon.

You can read Chris’s incredible story here or watch our exclusive interview below.

https://www.youtube.com/watch?v=YcYIYdqegGA

11. Virtual Assistant

• Average Annual Revenue: $35K-$50K
• Average Profit Margins: 10.5%
• Startup Costs: $100-$200
• Time To Revenue: 1-3 months
• Annual Market Growth Rate: 1.9%
• Best For: People with strong organization and communication skills, those who want to work from home and set their own hours

Becoming a virtual assistant for clients you choose is a profitable business to start. Some of the top virtual assistants on Upwork make $85 an hour. That’s up to $152K per year for doing things like scheduling appointments, sending emails, completing research, and other jobs you can do remotely.

Like other jobs that use a knowledge-based business model, the main startup costs are licensing and software. If you want to make more than that, you can start a VA agency and hire other people to help with this small business idea.

12. Social Media Management

• Average Annual Revenue: $817K
• Average Profit Margins: 6.9%
• Startup Costs: $100-$10K
• Time to Revenue: 1-6 months
• Annual Market Growth Rate: 1.3%
• Best For: Social media experts, writers and content creators, people with search engine optimization (SEO) expertise

Social media marketing is a vast industry. According to Statista, it is a $153.7 billion industry. And all you need is a computer, some software, and to find some clients.

Jason Yormark of Socialistics told us:

[su_quote]You can expect each client to be around $2,000-5,000 per month and require 20-40 man-hours to give them proper service.[/su_quote]

That means a single person can make up to $40K monthly from home without investing in inventory. Find out how Jason turned his company into a $500K-a-year social media marketing agency:

https://www.youtube.com/watch?v=kb1czTEK8f8

Pro Tip: You can also learn from our blog on how to start a marketing agency.

13. Accounting and Bookkeeping

• Average Annual Revenue: $244K per employee
• Average Profit Margins: 18%
• Startup Cost: $500-$2.5K
• Time To Revenue: 3-12 months (plus accounting degree)
• Annual Market Growth Rate: 1%
• Best For: Certified accountants, entrepreneurs with strong math and financial skills

To become a certified public accountant, you will need 150 hours of education in accounting. That’s a bachelor’s degree and passing the CPA exam, which is a test for proficiency created by the American Institute for Certified Public Accountants (AICPA).

Once you have a CPA license, you can start a company and make a great living. There are only 40,000 AICPA members and over 80 million tax returns filed annually by tax professionals, so there’s plenty of work.

Granted, tax prep services do some of those, but CPAs do the big ones. Even at the low end of $100 per tax return, that’s still $8 billion in revenue, and that’s just part of what CPAs do.

Add in payroll, quarterly minimum filing, certifying businesses for SOC 2 compliance, managing business sales tax payments, and other business finances, and it’s obvious why working as a CPA is one of the most lucrative business ideas in 2022.

14. Consulting

• Average Annual Revenue: $364K
• Average Profit Margins: 6.4%
• Startup Costs: $1K-$3.5M
• Time To Revenue: 6-18 months
• Annual Market Growth Rate: 2.2%
• Best For: Executives and business leaders, entrepreneurs with management or business expertise, people with strong analytic, problem-solving, and communication skills

A consulting business is focused on helping other business owners solve their problems. You can choose a niche if you have a specific area in which you are an expert, or you can be an all-in-one solution.

When I initially started my consulting business, I was consulting on everything. One day I’d analyze payment processors, and the next, I would look for good influencers for a brand. I eventually gravitated to writing about business and technology because it makes it easier to pass knowledge on to thousands of people per month.

Business consultants can make anywhere from several hundred per day to billions per year. Consultants who specialize in mergers and acquisitions can earn huge commissions.

Check out this interview with Ryan Gromfin, who makes $35K a month with his consulting business:

Least Profitable Industries

There are some industries that are really struggling right now. You might want to avoid these industries if you want to make a profit fast.

Industry	Net Income
Entertainment	-0.23%
Telecom Services	-0.28%
Chemical (Diversified)	-1.01%
Broadcasting	-1.41%
Furniture & Home Furnishings	-2.24%
Rubber & Tires	-2.53%
Electronics (Consumer & Office)	-3.05%
Real Estate (Operations & Services)	-3.14%
Precious Metals	-4.26%
Drugs (Biotechnology)	-11.88%
Software (Internet)	-14.32%
Real Estate (Development)	-16.35%

Most of these industries are tied to big purchases. You’re seeing losses tied to inflation of expenses like materials and wages, combined with people cutting back on making new purchases. This is expected when discretionary income decreases.

Pro Tip: Assuming wage growth continues and outpaces inflation, we should see these return to profitability in a few years. Until then, our blog on recession-proof businesses can provide even more inspiration for getting started in a bad (or questionable) economy.

Frequently Asked Questions (FAQs)

What are the top five most profitable businesses in the world?

According to CompaniesMarketCap.com on December 11, 2023, the five most profitable businesses were

1. Apple (valued at $2.99 trillion)
2. Microsoft (valued at $2.741 trillion)
3. Saudi Aramco (valued at $2.139 trillion)
4. Alphabet (Google, valued at $1.665 trillion)
5. Amazon (valued at $1.503 trillion).

Note that the values of these companies fluctuate daily.

What are the easiest businesses to start?

Dog walking, house cleaning, and sewing businesses are the easiest to start because they have low startup costs and low barriers when it comes to getting licenses and permits.

What businesses are in high demand?

IBISWorld states that fruit and nut farming, solar power, online gambling services, hybrid and electric vehicle manufacturing, and 3D printing and prototyping are the fastest-growing businesses in 2024.

So What Are the Most Profitable Businesses to Start?

We’ve discussed the most profitable business ideas from multiple vantage points. Some are easy businesses to start from home, and some are not as easy to get into because of education requirements or other barriers to entry.

When it comes down to it, the most profitable business for you to start is one you have knowledge in, you know how to find customers for, and you want to spend the rest of your life exploring and working with.

You can make any of your favorite 2024 business ideas one of the most profitable and successful business ideas if you:

1. Create a business plan: Read our guide if you’ve never created one.
2. Provide excellent customer service: Check out HelpScout’s blog on what makes great customer service.
3. Educate yourself on the industry: Follow our blogs and YouTube.
4. Don’t give up: Many business owners give up right before they hit exponential growth. Learn how to run a business.

What other profitable and successful small business ideas are you thinking about starting?

It is tough to find great information on how to get clients for a cleaning business. There are plenty of Facebook scammers, pay-per-click advocates, SEO “experts,” CRMs, and people trying to sell us a bunch of nonsense. Fortunately, we found Chris Mondragon! He owns Queen Bee Cleaning Service, and has found a lot of marketing, technology, and strategies to find clients. He’s sharing all the lessons he’s learned through trial and error, hard work, and a few mistakes on his way to making $1.5 million in one year.  His strategies will help you book clients faster. He'll share ways to get cleaning clients including:

• Where to include your branding
• Software that helps get cleaning jobs
• Ads that get clients for a cleaning business
• Scripts for a successful cleaning business

Get ready for 21 proven strategies that get cleaning clients.

 Tip #1 Always Start with a Marketing Plan

Marketing is a huge part of finding clients. Without it, most businesses struggle to succeed. You'll need a marketing plan to keep you on track. There are a lot of moving pieces, and you’re sure to forget something if you don’t create a plan to drive what's important to you. Chris provides an example in his business plan presentation. It’s a single page but easy to follow: [su_note note_color="#dbeafc"]

• The sales process will begin by generating leads through our marketing campaign ads on Google, Facebook, and Yelp.
• We feel confident that the leads are more likely to be impressed with our professional and responsive customer service. 
• For clients over the phone, we will quote them a price. We will explain in detail why our service is priced a bit higher than most.
• Queen Bee Cleaning Service will explain all the different cleaning systems and what the customer should expect.
• The conversation will leave the prospective customer with the impression that Queen Bee is indeed different from the run of the residential cleaning services and that the price differential is justified.

[/su_note] While a marketing plan is a great start, you'll also want to build a distinct brand.

Tip #2 Target Marketing

Make sure to narrow your target market as well as you can. Research the wealth distribution of neighborhoods if you're doing Airbnb cleaning. If you are trying to find how to get commercial cleaning clients, narrow your search to specific types of businesses.  For example, you might want to clean a family business, or you might want to focus on cleaning banks. We discuss a lot more about how to get clients for a commercial cleaning business in our blog about how to get a cleaning contract. Check out the commercial cleaning blog. Find out how your name can help you find clients for a cleaning business.

Tip #3 Win with Your Name

Your name conveys who you are. The words you use matter. They have connotations and dual meanings, and when they are combined with other terms, different images come to mind. Let’s look at Queen Bee Cleaning Service as an example. What do you picture when you hear the word queen? How about the word bee? Now, when you combine them into Queen Bee, does it take on other meanings? For me, when I think of Queen Bee, I think of the top of the hive, the best of the biz. Then Cleaning Service tells us what business.  We have more great advice in our blog about cleaning business names. Check it out!

Tip#4 Branding a Cleaning Business

You’ll want to make sure to get a logo and put it on the following items:

• House cleaning business cards
• Car magnets
• Apron
• Shirts
• Website
• Social media
• Invoices
• Print materials

Check out the Queen Bee Logo: Visible branding makes your cleaning service stand out to potential customers. Your branding should be on everything your company does. You want the customer to instantly know what company you are when they see the logo. Next, you'll want to have your cleaning prices ready so you can use them in other steps. [su_note note_color="#dbeafc"] LEARN MORE: If you haven't already check out our blog about how to start your your own cleaning business. [/su_note]

Tip #5 House Cleaning Prices

Before thinking about how to get your first cleaning client, you’ll want to have prices put together in a way that is easy for clients (and later employees) to understand. Chris has a separate price list for house cleaning customers and Airbnb clients because they need different services. He also offers various add-on services from which his target audience can choose.

Tip #6 ClickFunnels Built for A Cleaning Company

In our interview with Chris, he told us he uses ClickFunnels and ActiveCampaign to assist with his marketing needs. He has recently changed to HighLevel because it replaces both software and saves nearly $1,800 to create email offers and campaigns to attract customers.  Having well-defined marketing funnels is a crucial part of how to market your business. If you have different segments, you’ll probably want a separate funnel for each type of cleaning service. Potential clients for an office cleaning company will have different needs than residential cleaning customers. Your funnels should be built to make it easier to get clients. If they don't speak to the target market, they won't work. You'll need email templates in your funnels and Chris shared some with us.

Tip#7 Email Templates for a Cleaning Service

Have response templates ready for common and predictable emails. That way, you can provide prompt service without putting much thought into it. Chris has templates for the following types of emails: [su_note note_color="#dbeafc"]

1. Airbnb Cleaning Quote
2. Bad Service Apology
3. Breakage
4. Cancellation Request
5. Deep Cleaning Quote
6. Difference Between Services Questions
7. Move-Out, Move-In Cleaning Quote
8. Office Cleaning Quote
9. Price Increase Email
10. Recurring Cleaning Quote
11. Termination of Services

[/su_note] I can’t include them all here, but I can hook you up with one of them today.  The example below is meant to be used with CRM and email automation. Check out how he responds to customer requests who want deep cleaning quotes:  You can get the rest of the templates from our cleaning course. Sign up now The occurrence of “${words}” means that this is pulling from a spreadsheet or CRM to provide the information. It helps automate emails. Just make sure to leave some time between receiving an email and responding with automation. Make sure to remove the red asterisk if you copy and paste into your system. Some people don’t like automation and may take offense if they get a response unnaturally fast. Make sure to have a few minutes delay. Are you ready for another way to get clients?

Tip #8 Google Business Profile

If you aren’t already familiar with Google Business Profile (Formerly Google My Business), it’s a service Google offers that helps cleaning businesses get clients by displaying them prominently on Google Search and Google Maps. You have to input your business information, then wait for them to send you a postcard in the mail. You can start adding all your information while waiting for the postcard. Once you put the code from the card into the website, your business is authenticated and shows up in search results (like Queen Bee above). Chris told us: [su_quote]Your visibility will be significantly reduced outside of a 20-mile radius, regardless of the service areas you list.[/su_quote] Chris is full of all kinds of unique cleaning business ideas. Watch our interview with him below to hear how he runs his company. [su_youtube url="https://www.youtube.com/watch?v=d4Iip7BHXwg"] I’d use a 20-mile radius as your maximum service distance, but you could use an even smaller radius.  Chris has a complete optimization guide he’ll share with people who take the cleaning master course. You don’t want to miss it. Any local business could use the information he shares for great results. In addition, Chris offered some input on direct mail and door hangers.

Tip #9 Direct Mail and Door Hangers for Cleaners

Direct mail, door hangers, and cleaning flyers should be part of the answer for how to advertise your cleaning business. Chris told us: [su_quote]Every house we clean, we put a door hanger on three houses in each direction.[/su_quote] If you clean three houses per day, that's another 18 people who can become potential customers. Just be careful in gated communities. I’ve seen companies banned for doing door-to-door marketing in some neighborhoods. 

Tip #10 Facebook Can Help Get Cleaning Clients Fast

Facebook is a great social media platform for cleaning companies. Most people are on it, so you can find your first clients by asking friends and family if they need their homes or businesses cleaned.  In addition, Facebook owns other social media like Instagram and WhatsApp. If you want to get cleaning clients fast, you can use Facebook Ads to get more cleaning clients. Chris spends between $500 and $750 on Facebook ads each month, accounting for approximately 23% of his ads spending.  It’s just one of the ways to promote your business. Keep reading for more ways to get cleaning jobs.

Tip# 11 Invest in Paid Ads

Most successful cleaning businesses will run catchy house cleaning ads on social media and search engines. It’s one of the best ways to get clients for your cleaning business. Last year, Chris spent between $2,150 and $5,400 per month on eye-catching house cleaning ads. Here’s the breakdown: [su_note note_color="#dbeafc"]

• Google Local Leads: 67%
• Facebook Ads: 17%
• Craigslist Ads: 7%
• Yelp Ads: 8%

[/su_note] It gets better. Check out his ads! Keep reading for more strategies on how to market a cleaning business.

Tip# 12 Koalas Help You Book Online

Booking Koala is an excellent service that makes it easy to book more clients. While some people in the cleaning industry make it a priority to have that personal touch to get your ideal clients, Chris realizes that not everyone wants to interact. He told us: [su_quote]I let people book online without ever having to talk to an employee. Some people just want to put in their information, get an instant quote, and pay for it. I like to make hiring us as easy as possible.[/su_quote] Check out his implementation. It’s one of the best booking tools I’ve ever seen.

Tip #13 Local Ads: Best Way to Market Your Business

Google Local Service Ads are the preferred method when paying for ads to attract new clients. They are only available to local businesses that have passed Google screening. The process requires verifying entity formation and business licenses, background checks, and insurance. Once a business owner and any relevant staff has completed all the checks, they qualify as either a Google Screened or Google Guaranteed provider. You’ll see them at the top of a Google search like “cleaning quotes for business.” They will show the Google Guaranteed checkmark like the picture below. Chris told us: [su_quote]It’s a great service. You only pay for actual leads and they’ll refund it if you contest billing for jobs you didn’t book.[/su_quote] You’ll want to have Google Analytics set up to easily prove where your home or commercial cleaning clients are coming from to find your site.  Chris also emphasized the importance of how you communicate with potential clients.

Tip# 14 Manners Matter

Remember, a cleaning company is part of the service industry. Clients for your cleaning business will occasionally have complaints or need to cancel. Regardless of the reason, you need to be polite. That’s why Chris suggests: “Beginning with “May I” is a surefire way to soften just about any question well. Try these on for size:

• “May I have your telephone number?”
• “May I ask what company you’re with?”

It sure does. The email templates we discussed earlier also help prevent business owners and employees from making the common mistake of sending an emotional email. Keep reading for information about how to turn bad reviews into a better cleaning business.

Tip #15 No! You Can’t Ignore Bad Reviews

Even if you have a reasonable price and consistently get more clients, you will occasionally have a bad review. Whether it’s from a current client, potential client, or just someone who doesn’t like the marketing campaign, you need to be ready for it.  That’s why Chris has email templates for complaints. He also told us: [su_quote]I reach out to customers after we clean their house to make sure they are happy with their cleaning. If they aren’t, I find out what we can do better and how to make it right. If the review is on a social media platform, make sure to respond ASAP and find out what you can do to make it right. [/su_quote] This solution is great! If potential clients see the review and that you handled it amicably, you will be able to minimize the impact it has on your business. Get ready to learn about how SEO helps get clients.

Tip #16 Optimize Your Site

I know search engine optimization can be frustrating. I deal with it every day by looking at what keywords Google wants to see, but you have to do it. Think about it for a minute…ask yourself: [su_quote]How can I get customers for my cleaning business without playing by Google’s rules?[/su_quote] Unless you have a vast professional network, lots of friends, and a large family that can all afford to pay for commercial cleaning, your business will have to play the SEO game. Here are some strategies: [su_note note_color="#dbeafc"]

1. Create a lightning-fast website (under two seconds, or you start losing mobile users).
2. Research keywords using SEMRush.
3. Scatter them throughout your website content.
4. Write blogs about subjects that interest your customer.
5. Post them regularly.
6. Use sites that help you get high-quality backlinks. There’s a list of 700 sites you can use to build your own backlinks.
7. Any time you update your site, submit a sitemap to the Google search console.

[/su_note] While your website isn’t the only way to get new customers, optimizing it for search engines helps.  You'll also want to optimize your phone conversations. Keep reading to find out how.

Tip #17 Phone Scripts that Make Millions

Once you get a new client on the phone, you’ll need a great script!  Chris shared his with us. Here’s part of it: I’d love to give you the rest of the script, but our team is working hard to create our cleaning business course. I can’t steal all their thunder.  Your team should get so good at it that they can narrate it in their sleep. Sometimes you’ll get commercial cleaning clients that are angry. If you have a potentially angry customer, soften your voice to a calming state, listen to their concerns, apologize for the inconvenience, and ask, “How can I make it better?” Chris told us:  [su_quote]If a client hangs up on you when they are angry, don’t call them back. It will just make it worse.[/su_quote] He said it’s okay to call back as long as the call was accidentally dropped.  Another way of getting and keeping cleaning clients is recurring discounts.

Tip #18 Recurring Discounts

Most businesses in the cleaning industry know that current clients cost less to keep than finding more customers. That’s why they offer discounts to get your house cleaned more frequently. If you played with the Queen Bee Quote System, you probably noticed that he gives an 8% discount for monthly cleaning and 20% for weekly cleanings.  With enough weekly cleanings, you can lower your spending on digital marketing campaigns and increase profit. You just have to reach the point that existing clients request enough services to make the money to take care of your family and employees. You'll also want to pursue references from current clients.

Tip #19 Seek Referrals 

Customer referrals tend to be your ideal client. Referrals carry more weight than marketing materials, and they are more likely to contact you. You can even give discounts when people refer new clients or companies looking for cleaning services. Chris sends emails with some tips for his customers on how to review and refer people to help maximize the benefits. Another way he brings in new and recurring clients is sending SMS discounts if he has a slower week. He told us he gets a 90% open rate and about 1 in 10 clients take him up on the offer. Get ready for another tip for finding quality clients.

Tip #20 Value-Added Pricing

If you are doing Airbnb cleaning or cleaning for other properties where cleanliness is their selling point, you may want to charge a value-added price.  For instance, Chris uses AirDNA to establish what the rental properties in an area go for and charge the property owner based on the cleaning fee. This can improve margins or prevent you from taking unwanted jobs. next, you'll find out why Yelp is so important to cleaning businesses.

Tip #21 Yes! Yelp! Matters!

You see so many businesses use Yelp because customers love it. It helps the cleaning business get more clients and offers high-level backlinks. Plus, Yelp penalizes businesses that incentivize reviews. That means customers can know the reviews are legit.

You'll Book More Clients Soon!

If you follow all these suggestions, soon, you’ll be featured in blogs about how to get clients for a cleaning business. If finding clients sounds like a challenge, you might want to buy a cleaning business.  Do you have any unique approaches you’ve tried while trying to figure out how to get clients for your business? Share your successes and your failures below.

Making a million dollars isn't hard. You'll probably make that much or more in your lifetime, but that doesn't mean you'll develop wealth. For those who want to know how to become a millionaire, just spend less than you make. It's that simple!

We talked to Todd “TJ” Johnson, The Millionaire Mentor. TJ grew up poor and wanted to get out of South Carolina. He started out cutting grass and delivering newspapers as a kid just to feed himself, then joined the Air Force at 17 and went to school to study computer science.

When he left the military, he asked for a salary of the highest-paid military person, and people laughed at him. That didn’t discourage him. He asked what skills he needed to be worth it… then he developed the skills.

Now he owns multiple businesses including weight loss brands and supplements and coaching, and he’s even buying up others’ businesses. Here he’ll share the lessons he’s learned in his path to becoming a millionaire. We’ll share the wisdom he’s developed to make more money and get rich. 

Throughout this article keep in mind this advice from TJ:

[su_quote]The fastest way to become a millionaire is to help as many people as possible.[/su_quote]

[su_note note_color="#dbeafc"]
If you want to jump to a specific portion of the article, use the table of contents below:

• How to Become a Millionaire
  
  • Step 1. Stop Spending Your Money on Frivolous Stuff!
    
  • Step 2. Create A Money Plan To Make A Million Dollars
    
  • Step 3. Make More Money
    
  • Step 4. Consider Some of These Investment Strategies
• Share What Being Rich Means To You

[/su_note]

How to Become a Millionaire

You'll need to invest $12,600 per month and earn a 10% annual return to become a millionaire in 5 years. That's matching the average stock market return. I don't know about you, but I'm not making enough to save that much money.

That means we need to find a way to increase our income to build financial freedom. Check out the blogs below to find ways to increase your income:

• • • Best side hustles
    • Most profitable businesses
    • Passive income

Most have low-cost barriers for a start-up and can make a ton of money quickly.

Step 1. Stop Spending Your Money on Frivolous Stuff!

To become a millionaire, you'll have to do more than make a ton of money to meet your financial goals. You can't spend the money. You need to reinvest it so your money makes more money while you sleep. TJ explained that the company you keep impacts how well you invest in your own business:

[su_quote]Stay away from bad entrepreneurs. If your dog or your kid doesn’t like someone, stay away.[/su_quote]

Spending money badly is also the most common reason for failure:

[su_quote]Inconsistency is the main cause of failure. Chasing skirts, drinking too much, and smoking weed harm success.[/su_quote]

Watch our interview with TJ below.

[su_youtube url="https://www.youtube.com/watch?v=5zZdn3mlU2A"]

Step 2. Create A Money Plan To Make A Million Dollars

Becoming a millionaire doesn’t have to be hard. As TJ told us, you just have to keep rising. The best way to do that is keep your personal finances and goals in perspective. The plan should include:

[su_note note_color="#dbeafc"]

1. Your current financial scenario
2. Your desired financial scenario
3. Your timeline
4. The steps to take to join the millionaire club

[/su_note]

Take a Fearless Inventory of Your Personal Circumstances

To reach financial security, you need to know where you are currently. This isn’t about judgment. It doesn’t matter where you currently are; you are capable of changing. But to be realistic about what steps to take, you need to know:

• How much you make before and after taxes
• Your current monthly expenses. Break them down by the type of bill.
• The amount of debt you have. If you have high-interest debt, meaning debt that costs more to maintain than your investments make, pay it off ASAP (or wait for it to expire in 7 years).
• Any assets you have. Cars, boats, and even homes can be money pits, so don’t count items that depreciate in value. Stocks, bonds, and real estate are great assets to hold.
• Your effective tax rate.
• The money in your checking and savings account.

We created a worksheet to help you reach millionaire status. Download it below.

[maxbutton id="3" url="https://www.upflip.com/wp-content/uploads/2023/05/UpFlip-Financial-Planning-Worksheet.pdf" text="DOWNLOAD HERE" ]

Set Your Timeline

Becoming a millionaire takes time. Sure, you could reach millionaire status by winning the lottery or knocking your first business out of the ballpark, but most successful people do it over years or decades. As TJ told us:

[su_quote]The term ‘easy business idea’ has failure written all over it. It’s not easy to make money. You have to work for it.[/su_quote]

The more time you have, the higher your likelihood of becoming a millionaire. While most people will only reach their millionaire goal close to retirement, the earlier you get started, and the more often you invest, the sooner you’ll reach your goal. As TJ explained:

[su_quote]You don’t just make a million at once. You invest, and it grows, then you get to $100K, then $500K, then $1M. It takes time.[/su_quote]

So how quickly do you want to be a millionaire?

How to Become a Millionaire by 30

If someone wants to be a millionaire by 30, they’ll need to invest money routinely. How much you need to invest varies based on your age and the percent on your returns. We’ve used some common ages people start investing to help you estimate the amount you should invest monthly to have a million dollars by age 30. All figures assume the long-term stock market average of 10.5%. 

Age of First Investment	Number of Years Till 30	Monthly Investment To Have $1 Million By Age 30	Reason
Birth	30	$439.92	Parents Investing For Kids
5	25	$750.32	Parents Investing for Kids after Kindergarten
16	14	$2,742.61	Legal Working Age
18	12	$3,610.76	Transition to Adulthood
21	9	$5,737.71	After College
22	8	$6,832.87	After College
25	5	$12,904.78	After Grad School

How to Become a Millionaire in 10 Years

You’ll need to invest $4,874.42 monthly and earn a 10.5% return on your investment to become a millionaire in 10 years.

How to Become a Millionaire in 5 Years

You’ll need to invest $12,904.78 per month with a 10.5% average return to become rich within five years. This is a fairly short time frame for most investments. If you want to become rich fast, consider these words of advice from TJ:

[su_quote]Buy an existing business without putting money down.[/su_quote]

TJ recommends marketing because it is an in-demand skill. He explained:

[su_quote]It doesn’t matter if the market is saturated. I like to use the example of Hint. If they can break into the water market, you can break into any industry, as long as you know how to market your business.[/su_quote]

How to Become a Millionaire Overnight

The easiest way to become a millionaire with no money is to go buy a lottery ticket and hope you win. You probably won’t get rich this way, but like Mark Cuban says:

[su_quote]It doesn’t matter how many times you fail. You only have to be right once, and then everyone can say you are an overnight success.[/su_quote]

Put Your Desired Results in Writing 

Write down your goals and be as detailed as possible. In the worksheet we created we have separate areas for each area of personal finance so that you can compare them to your current scenario. Be as specific as possible regarding net worth, diversification, emergency fund, real estate, and other investments.

Compare the Goals with Your Past Performance

You’ll want to use the worksheet to compare where you are with where you want to be. Some commonly provided advice you might want to follow includes:

• • 1. Save 15% of your income. Personal finance is about starting early thinking about your life goals and retirement. If you get in the habit of setting aside your money and investing using dollar cost averaging, soon people will be asking you how to be a millionaire.
    2. Create an emergency fund. According to Motley Fool, Americans’ savings are less than half of pre-pandemic levels and 88% lower than the peak of savings during the pandemic. It’s always good to have a nest egg equal to at least three months’ worth of expenses.
    3. Pay off bad debt. Anything that doesn’t make more than the interest you’re earning is not good debt. This includes car loans. You’ll never get to a million dollars if you pay more interest than you’re making in investment accounts. Any interest rate over 10% is just not worth it.
    4. Write out your plan to get from where you are to where you want to be. If you’re not making enough money to meet your goals, then make a plan for how to move in the right direction. Make sure to include short-term goals like reaching $10K, $100K, $250K, $500K, $750K, and $1M. It makes it easier to conceive how to get rich.

Step 3. Make More Money

The more money you make, the easier it is to become a millionaire. Getting a high-paying job, a side hustle, and investing in real estate are some of the easiest ways to increase your earnings and start saving money. Find out what a day int the life of a millionaire who owns a cleaning business is like:

[su_youtube url="https://www.youtube.com/watch?v=c_pvi1q9lMo"]

Step 4. Consider Some of These Investment Strategies

Various asset classes offer different ways to increase your wealth. Consider some of the ideas listed below.

Buy Businesses

If you have a low risk tolerance, buying businesses is one of the best ways to choose investments. Legendary investor Warren Buffett has turned Berkshire Hathaway into a conglomerate that owns businesses including:

Ben Bridge Jeweler	Jazwares
Clayton Homes	NetJets®
CTB Inc.	Pampered Chef®
Duracell	Pilot Travel Centers
Fechheimer Brothers Company	Precision Castparts Corp.
FlightSafety	RC Willey Home Furnishings
Fruit of the Loom Companies	See's Candies
GEICO Auto Insurance	Star Furniture
General Re	TTI, Inc.
Helzberg Diamonds	United States Liability Insurance Group
H.H. Brown Shoe Group	W&W/AFCO Steel
HomeServices of America	XTRA Corporation
International Dairy Queen, Inc.

This strategy has been successful for a lot of wealthy people.

Passive Income

Investing in passive income opportunities is a great way to create a diversified portfolio. A millionaire depends on their own money making them more money.

If you have little excess cash but still want to invest, consider using Stash, which allows you to invest with just five dollars. Once you invest, they’ll give you a free $25. If you’d prefer a passive income business, check out one of the best ways to become a millionaire: vending machine businesses.

Index Funds

An index fund is the best way to become a millionaire if you want to avoid brokerage services and financial advisors. If you have a wealthy family, you may know good financial advisors, but I don’t trust people to manage my money. An index fund matches the performance of the stocks in the index it tracks.

When considering index funds, pay attention to their fees. Most have less than 1% fees. If you choose one with the lowest fees, you’ll save money.

You can also use mutual funds, but they have higher fees and are less liquid.

Employer Match on Retirement Funds

If you are an employee or self-employed with a 401K, check if employer match options are offered. Many will match up to 10% of your salary when you put it into a retirement account. If they do, you should be using it. That extra cash is effectively additional funds. Over time, the additional funds will create a nice nest egg for retirement.

Concepts You Need to Understand to Become a Millionaire

If you want to retire early, never have to worry about extra money, or want to provide for your loved ones when you die, you have to treat money like a game. It's just a means to an end.

Three of the most important strategies you can use are:

• • 1. Compound Interest
    2. Diversification
    3. Tax Advantages

What is Compound Interest?

Compound interest is interest that is reinvested to create more gains. Want to know how I figured out that you'd need to invest $12,600 monthly at 10% interest for 5 years to become a millionaire? I used the compound interest calculator I created to calculate the figure. Check out the table below.

Month	Starting Net Worth	Amount Invested	Compounding rate	Ending Net Worth
0	0	$12,600.00	0.83%	$12,705.00
1	$12,705.00	$12,600.00	0.83%	$25,410.00
2	$25,410.00	$12,600.00	0.83%	$38,326.75
3	$38,326.75	$12,600.00	0.83%	$51,351.14
4	$51,351.14	$12,600.00	0.83%	$64,484.07
5	$64,484.07	$12,600.00	0.83%	$77,726.43
6	$77,726.43	$12,600.00	0.83%	$91,079.15
7	$91,079.15	$12,600.00	0.83%	$104,543.15
8	$104,543.15	$12,600.00	0.83%	$118,119.34
9	$118,119.34	$12,600.00	0.83%	$131,808.67
10	$131,808.67	$12,600.00	0.83%	$145,612.07
11	$145,612.07	$12,600.00	0.83%	$159,530.51
12	$159,530.51	$12,600.00	0.83%	$173,564.93
13	$173,564.93	$12,600.00	0.83%	$187,716.30
14	$187,716.30	$12,600.00	0.83%	$201,985.60
15	$201,985.60	$12,600.00	0.83%	$216,373.82
16	$216,373.82	$12,600.00	0.83%	$230,881.93
17	$230,881.93	$12,600.00	0.83%	$245,510.95
18	$245,510.95	$12,600.00	0.83%	$260,261.87
19	$260,261.87	$12,600.00	0.83%	$275,135.72
20	$275,135.72	$12,600.00	0.83%	$290,133.52
21	$290,133.52	$12,600.00	0.83%	$305,256.30
22	$305,256.30	$12,600.00	0.83%	$320,505.10
23	$320,505.10	$12,600.00	0.83%	$335,880.98
24	$335,880.98	$12,600.00	0.83%	$351,384.99
25	$351,384.99	$12,600.00	0.83%	$367,018.19
26	$367,018.19	$12,600.00	0.83%	$382,781.68
27	$382,781.68	$12,600.00	0.83%	$398,676.53
28	$398,676.53	$12,600.00	0.83%	$414,703.83
29	$414,703.83	$12,600.00	0.83%	$430,864.70
30	$430,864.70	$12,600.00	0.83%	$447,160.24
31	$447,160.24	$12,600.00	0.83%	$463,591.57
32	$463,591.57	$12,600.00	0.83%	$480,159.83
33	$480,159.83	$12,600.00	0.83%	$496,866.17
34	$496,866.17	$12,600.00	0.83%	$513,711.72
35	$513,711.72	$12,600.00	0.83%	$530,697.65
36	$530,697.65	$12,600.00	0.83%	$547,825.13
37	$547,825.13	$12,600.00	0.83%	$565,095.34
38	$565,095.34	$12,600.00	0.83%	$582,509.47
39	$582,509.47	$12,600.00	0.83%	$600,068.71
40	$600,068.71	$12,600.00	0.83%	$617,774.28
41	$617,774.28	$12,600.00	0.83%	$635,627.40
42	$635,627.40	$12,600.00	0.83%	$653,629.30
43	$653,629.30	$12,600.00	0.83%	$671,781.21
44	$671,781.21	$12,600.00	0.83%	$690,084.39
45	$690,084.39	$12,600.00	0.83%	$708,540.09
46	$708,540.09	$12,600.00	0.83%	$727,149.59
47	$727,149.59	$12,600.00	0.83%	$745,914.17
48	$745,914.17	$12,600.00	0.83%	$764,835.12
49	$764,835.12	$12,600.00	0.83%	$783,913.75
50	$783,913.75	$12,600.00	0.83%	$803,151.36
51	$803,151.36	$12,600.00	0.83%	$822,549.29
52	$822,549.29	$12,600.00	0.83%	$842,108.87
53	$842,108.87	$12,600.00	0.83%	$861,831.44
54	$861,831.44	$12,600.00	0.83%	$881,718.37
55	$881,718.37	$12,600.00	0.83%	$901,771.02
56	$901,771.02	$12,600.00	0.83%	$921,990.78
57	$921,990.78	$12,600.00	0.83%	$942,379.04
58	$942,379.04	$12,600.00	0.83%	$962,937.20
59	$962,937.20	$12,600.00	0.83%	$983,666.67
60	$983,666.67	$12,600.00	0.83%	$1,004,568.89

Compounding can be done with any form of cash flow. You just have to put the money into something that will earn returns that beat inflation. Wasting your time putting more money in a savings account that earns less than 1% per month will never get you to your financial goals. You’ll lose money yearly if you make less than inflation on your returns.

Does this mean you should find the highest return and ape into it like crypto bros?

No, please don’t!

Diversification Protects You!

Do you remember companies like Enron? How about Bernie Madoff? These famous scammers helped millions of people become rich, then went bankrupt—along with the many investors that they scammed. We’ve seen the same thing occur with some bankrupted crypto projects that failed to separate client funds from company funds.

During my finance courses for my MBA, one of the lectures was about why the Dow Jones Industrial Average uses 30 stocks to simulate the returns of the entire stock market. Using statistical analysis (which I will spare you from for the sake of readability), they found that you could accurately model the performance of the entire stock market with 30 well-chosen stocks. This strategy saves a lot of money over buying every stock, and the difference in risk was less than 1%.

You can also use diversification to become a millionaire by investing in a combination of assets like:

• • • Stocks
    • Options
    • Bonds
    • Crypto
    • Real Estate

If you have a good amount of diversification, you’re not likely to lose over the long term, but most financial advisors still recommend thinking about investing over a ten-year time frame. 

There are other strategies you’ll want to use as you build more wealth. You’ll learn about them in the next section.

Taxes Are Written to Be Gamed

In today’s world, a million dollars isn’t that much, but to become a millionaire, you need to learn to play legally within the system. There are numerous financial instruments the wealthy use to increase and protect their financial freedom and build wealth. They use:

• • • Tax-advantaged retirement accounts
    • Trusts
    • Corporations
    • LLCs

Let’s look at some of the ways you can use these to accelerate your journey toward making a million dollars.

Tax-Advantaged Retirement Accounts

You’re probably familiar with a retirement account like a 401(k), Individual Retirement Account (IRA), or a Roth IRA, but did you know there are over 16 types of retirement plans?  Some like a Simplified Employee Pension allow up to 25% of a salary to be paid to an employee in their IRA without a matching contribution. 

Retirement accounts can greatly enhance your personal financial scenario.  401(k)s and traditional IRAs reduce your current tax liabilities, but you pay taxes on the withdrawal. Meanwhile, with a Roth IRA, you pay taxes on the front end, and you collect the withdrawals tax-free. Depending on your current tax rate and your tax rate when you collect, you can pay fewer taxes over the course of your life.

Trusts

You can use a trust to protect your money when you die. These contracts prevent probate because they specify how the money is distributed. A common trust used if you want to pass on more money to people who are at least 37.5 years younger than you is an Irrevocable Life Insurance Trust (ILIT), which can be set up by a financial planner to help protect generational wealth.

Corporations

Corporations have a 15-21% tax rate, while personal income tax can be as high as 37%. Dividend payments can also be used to reduce your overall taxable consequences. Plus they get a lot of deductions that individuals don’t. Filing your taxes as a corporation rather than an individual can help you save significantly come tax time.

Limited Liability Companies

Most millionaires have multiple small business ventures protected under separate LLCs. Doing so prevents one investment from being harmed by another investment in the case of a liability claim. This makes becoming a millionaire easier because one failure won’t destroy your other businesses or your pursuit to build wealth.

Share What Being Rich Means To You

Now you know how to become a millionaire with no money. 

Are you still asking yourself how can I get rich?

Check out our cleaning business course with Christopher Mondragon. This free course explains his strategies, while the paid version will provide you with all the actual tools he uses. 

Why do you want to become a millionaire, and what would you do to get there?