the seven per cent rule

and business escape velocity

the seven per cent rule

and business escape velocity

It’s f*cking difficult to start a company and succeed — the stats prove it.

And most new business people are artisan’s who’ve fired the boss, *not* entrepreneurs.

But.

If you are

- decently presented, someone people can do business with

- basically competent and capable

- and you knuckle down to deliver

…then, once you get going and work *incredibly* hard

…it’s actually relatively ‘easy’ to get a business off the ground!

The problem, though, is the 7% rule — the 7–12% gravity zone.

Most successful activity in the world economy achieves about a 7–12% net return, being generous.

> Invest in stonks: 7%

> Buy-to-let: 7%

> Write a book and count the time: 7%

> Build your own house instead of hiring someone: 7% return

> Start a new business, work 90 hour weeks, hire people, train, win work, deliver work, pay the bills…. 7% return

That’s how markets work, I guess

Very few, really successful businesses achieve escape velocity — get out of the gravity trap and into free space…

The trick is, once you’re in orbit, to take your rocket apart, re-engineer, re-fuel, then blast out of orbit.

Neat trick if you can do it ;-)

the seven per cent rule

and business escape velocity

It’s f*cking difficult to start a company and succeed — the stats prove it.

And most new business people are artisan’s who’ve fired the boss, *not* entrepreneurs.

But.

If you are

- decently presented, someone people can do business with

- basically competent and capable

- and you knuckle down to deliver

…then, once you get going and work *incredibly* hard

…it’s actually relatively ‘easy’ to get a business off the ground!

The problem, though, is the 7% rule — the 7–12% gravity zone.

Most successful activity in the world economy achieves about a 7–12% net return, being generous.

> Invest in stonks: 7%

> Buy-to-let: 7%

> Write a book and count the time: 7%

> Build your own house instead of hiring someone: 7% return

> Start a new business, work 90 hour weeks, hire people, train, win work, deliver work, pay the bills…. 7% return

That’s how markets work, I guess

Very few, really successful businesses achieve escape velocity — get out of the gravity trap and into free space…

The trick is, once you’re in orbit, to take your rocket apart, re-engineer, re-fuel, then blast out of orbit.

Neat trick if you can do it ;-)

What’s your advice for getting out of the 7% zone?