Nearly 22 million Americans — roughly one in 15 people — have a net worth exceeding $1 million, according to the UBS Global Wealth Report 2024.
For those looking to enter this club quickly, multimillionaire and “Shark Tank” alum Kevin O’Leary has some advice.
“The fastest way to make a million dollars is to make the first $10,000,” he said in a video posted to his YouTube channel. “That’s really how it works. But really, it’s not about anything else except focusing on what people want and how to solve their problems.”
In other words, his advice for anyone looking to build wealth quickly is to launch a business. “Successful businesses solve problems for people and [customers] want to pay because it saves them time and money… people don’t want to walk around in bare feet, so they buy shoes.”
He added, “Try to find a pain point that you know everybody has, and then provide a product or service that solves that.”
Here’s why working for yourself may be the quickest way to enter the seven-figure club, but is not necessarily the best way.
O’Leary’s comments about making that first $10,000 and solving a “problem” implies starting a business and making it profitable. Over time, a profitable business could scale up and generate wealth for the owner.
Indeed, headlines are often dominated by the overnight success stories of innovative entrepreneurs.
Artificial intelligence search engine maker, Perplexity AI, was launched in 2022 and is already valued at $3 billion as of June, according to CNBC. That created a massive windfall for the company’s founder Aravind Srinivas.
However, you don’t need a groundbreaking business idea to make a fortune. According to a study by JPMorgan Chase, 8.9% of small businesses successfully scale up to $1 million in revenue within the first five years of their existence.
Sure, it’s not the experience for the majority of small business owners; however, this statistic suggests there’s some truth to O’Leary’s belief that it’s a quick path to millionaire status. That being said, it doesn’t indicate how likely — or even risky — that path is.
An estimated one in four new businesses fail within their first year of operation, according to LendingTree’s analysis of data from the U.S. Bureau of Labor Statistics (BLS). In addition, 48% of businesses fail within their first five years.
