The 3 companies stages of an entrepreneur

[AmandaRob]

The 3 companies stages of an entrepreneur

From my own experience and the experience of others, there is a growth process as an entrepreneur. Your first company shouldn't be a home run and just doesn't need to be. Here are the 3 key types of companies each entrepreneur should focus on:

1. Your first company: Your first company should be purely for learning. It doesn't need to be something you LOVE doing, but it needs to give you the backbone what hard work, generating income, and hopefully dealing with people. It needs to generate cash flow, but does NOT need to be an asset that you plan to liquidate and sell for millions after a few years. Many entrepreneurs try to skip this vital first company and hit a home run on their first shot. A few examples here could be to offer marketing services, flip items on eBay, dropship eCommerce items, start a blog, do some VA work, write content, mow lawns, pressure wash, wash cars, affiliate market, etc.
2. Your second company: If you are able to do it, learn from company 1 and use the revenue to start building company number 2. Company number 2 should be an asset that generates substantial income and should have a long-term exit strategy. This is a company that you don't have to LOVE, but it can help get you to your first "win" as an entrepreneur with a successful exit. A couple examples could be building a SaaS product, becoming a value added reseller and build a client base, start a marketing agency with over 50 clients, create a physical product to sell online, etc.
3. Your third company: This is the company where you can do exactly what you want. You have created freedom for yourself so you can either repeat one of the first 2 companies, or you can build something that you never want to sell. The goal here could be to go public, pass the company on to future generations, or just live off of passive income that some different projects generate. You have the freedom now and can do whatever you want. Lots of entrepreneurs think being an entrepreneur means skipping to step 3 and making millions, but it's rarely the case.

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