Thread by @taylorawelch

A thread on creating wealth in the consulting niche…

By creating wealth I mean accumulating the capital and resources, along with accompanying skill set, to retire at any age with enough assets to pay the bill.

#BEGIN

The idea is not ‘perpetual’ labor or work but rather, predetermined targets and systems that eventually work your time down to hyper-leverage.

To the extent you can make decisions BEFORE the “deciding” is needed, you will be successful.

People often don’t lack “discipline” they lack a proper design and then don’t know how to discipline the decision…

Here’s how it works.

Let’s say you need to make $300k personal take home. Your lifestyle is good, but not exorbitant.

✅ Phase 1: secure CURRENT income

We don’t want to be messing around with having to make money to spend money inside the same month…

This is where having a basic client system comes into play and knowing HOW you are going to both make money & deliver superior product.

✅ Phase 2: secure FUTURE income

So this month is handled, great… what about December?

January?
February?
Next July?

This is where we want to bulletproof the systems & processes that are responsible for creating future value in your market.

✅ Phase 3: MULTIPLY

Let’s spend a bit of time here because this is where the model begins to deviate from anyone else I’ve seen teaching it…

As determined earlier, for the sake of this exercise, you need $300k/year for burn and living.

Current income is secured.
Future income is secured.

Now we have some breathing room to put our focus into removing the need for ‘income’ at all.

We’re gonna develop and asset plan…

Inside our organization we have a section strictly for investment opportunities. They’re off market deals (both businesses, and real estate) that can multiply your capital into more income and more capital.

Here’s how it works:

✨ $300k/year requires $4.5M at a modest 7% return

✨ let’s give ourselves 5 years to do this (we can flex up and down the timelines based on the business, founder, model, market, etc)

✨ the annual contribution, will be ~$900k x5 years

✨ if we’re burning $300k, and contributing $900k, then we get a total sum of $1.2m of expenditure / outlay ($900k + $300k)

✨ let’s grab taxes and not forget those, at an assumed ~25% bracket, we need to add $300k to $400k to the number so everything is handled 🙂

This gives us our new target: personal take home of ~$1.6M per year which is $133k per month.

REMEMBER: we can flex UP the targets, we can bump DOWN the targets. This is a FIVE year timeline — watch what happens if we move it to 7 instead of 5:

🟡 7 years: $1.2M/year or $100k/mo

🟢 5 years: $1.6M/year or $133k/mo

🔴 10 years: $1M/year or $83k/mo

Regardless — you’re still creating ABSOLUTE financial independence within 10 years but keeping your business on the right targets & timelines.

Here’s where the fourth phase comes in: HARVEST

So far these numbers are only accounting for pure cashflowing towards your target.

One of my clients sold his business a few months ago and several 7-figures flowed into his accounts.

Now he’s buying real estate and duplicating it all…

When your business is set up with the team/leadership/ownership structures that we teach — you have a sellable asset IF that’s every something you’d like to do.

The reason I preach simplicity over and over and over again is because of how much time, money & effort I’ve invested into learning how to make this all simple.

By default, it doesn’t come simple.

It comes with a LOT of steps and a LOT of layers — my organization is the only one in the world (that I know of) that covers full tip to tail and everything in between — not just for the making of money but the stewarding & multiplying of it.

TL;DR

1. Current income
2. Future income
3. Multiplication
4. Harvest & exit

Hope you enjoyed - one take wonder strikes again.

That's a wrap!

If you enjoyed this thread:

1. Follow me @taylorawelch for more of these
2. RT the tweet below to share this thread with your audience

https://twitter.com/taylorawelch/status/1549426921360003074