Aug 042010
 
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I guess this is basically the inverse of the point about most businesses never making any money.  There are businesses that make money hand over fist, both from the perspective of percentage of revenue and sheer magnitude of profit.  I have worked with companies that make 40% or greater net margins, and not just on a couple of million dollars in sales, we’re talking on tens or in some cases, hundreds of millions of dollars in sales.  This is the carrot that makes many of us work so hard, like the high school or college athlete trying to make it to the pros.  Some entrepreneurs make it very big, often by following many of the lessons we’ve been covering here.  The good news is that you don’t have to have the natural talent of a Michael Jordan or Tiger Woods to make it as an entrepreneur; you do however, have to work extremely hard, keep your head and the game, and while never depending on luck for your success, it’s probably not a bad idea to have luck on your side.  Per this point above, unless you’re primarily in business for a reason other than creating wealth, don’t waste your time on businesses that have little or no chance of being very profitable, no matter how well you execute.  They are not easy to find, but there are some businesses out there with the potential to be exceptionally profitable.  Focus on those..

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