Creators hitting $1M revenue often pocket $500-600k in profit but spend it instead of investing it. As teams grow, many entrepreneurs hate managing larger staffs and feel trapped by the structure they built, regretting the loss of their lean operation.
All of these creators that do a million in revenue, do $500,000 or $600,000 in profit a year, and then spend most of it, and very little actually makes it into something that builds long-term equity value.
Yeah, and keep in mind, when you're getting into those larger revenue numbers, the team is growing usually too. And a lot of entrepreneurs maybe don't want to manage a team. That can be the entrepreneur trap too. Similarly, the headcount, you're like, oh, I have this big team, and then you realize I actually never wanted the big team, and I really liked being lean with an assistant or a few small roles. I feel like I see people falling into that chapel lot. Right.
