1. Buy an asset, using bank leverage.
You need some capital. You need a business that's cash flowing or has fixed assets (so bank can pony up majority of the needed purchase capital).
Find a business that you can exponentially increase (e.g. through using code, marketing or some gap the business isn't fulfilling).
You can do this in the range of 100k, 1M or 10M depending on your risk appetite, ability to persuade and network.
2. Run business for growth (not cash flow) for 3-5 years.
If you had spotted the correct opportunity, with the right gaps, you can 3-5x the business in this timeframe with an intent to sell or leverage for a loan.
3. Sell or leverage the business
At this stage, your multiple for a sale will go up. If you paid, e.g 4x EBITDA, then with the with the higher revenue, you should be able to sell for a 7x. This number can vary wildly.
If you paid 1M for a business doing 250k in profit and you move the revenue to 5M with no change on EBITDA, you can now sell for 8.75M.
You could also use this valuation or LOI to raise money or bank debt to buy your next business in the next range over e.g. 10M.
4. Rinse and repeat.
0. Notes
HN crowd are typically solid programmers and thinkers (although there are a good many business people here). So ignore anyone giving limiting responses. They are only telling you what's true in their experience (career programming).
This type of path is done all the time in the business world to build wealth, especially real estate (slower but more stable). It has more pitfalls than anything and can be a brutal way to live.
This is just a blueprint for someone actually seeking.
Have at it and good luck!
1. Monitor the Mega Millions Jackpot at https://www.megamillions.com/. Wait until it gets to a large-ish value like >$400 million, or if you're extra patient, wait until it surpasses $1 billion (see the history at https://www.megamillions.com/jackpot-history).
2. Once the jackpot is high enough, buy a ticket and select the winning numbers. The trick is to select those numbers before they're announced, otherwise they won't count, because it will already be the next jackpot with different numbers (and a different prize amount).
3. After you win, select the cash option. Unfortunately, you will almost certainly not end up with $1 billion after taxes. However, now that you have hundreds of millions of dollars, you can multiply your fortune through investments to reach $1 billion relatively quickly.
4. With your $100+ million, all you have to do is buy the stocks that are going to rise before they do so, and sell them before they start to fall. After a few months or years doing this, you should have over $1 billion. One nice thing about this strategy is, even after you reach $1 billion, you can continue for as long as you want, and you will not only keep accumulating wealth, but at an exponential rate.
> "There are three ways to make a living in this business: be first, be smarter, or cheat."
Not sure if this takes you to a whole billion, though
There have been numerous technologies that have emerged or hit the mainstream in my adult life that have spawned multiple billion dollar companies. EVs/charging, renewables, crypto/fintech, much of “modern” social media, same day/last mile delivery, drones, etc. Probably at least a few that I don’t know exist. Looking back across the history of business and innovation in the 1900s, this doesn’t seem that anomalous.
I think the actionable framing of this is -
- Build skills that are transferable between different industries that allow you to take advantage of the areas of greatest opportunity as they emerge.
- Build a network of likeminded people with complimentary skills who are willing to take a flyer on opportunities with you.
- Make friends with people with money who will fund these efforts, or build a resume that will make you an appealing founder or very, very early employee to VCs.
I do think that the situation of your birth has a major impact on your ability to put yourself in this position - I’m less sure about the timing aspect.
You would probably need a billion dollar business beforehand.
And a sure-fire way to end up with a billion dollar business is simply to start with two billion.
Listen, what I made up in my mind. I want to create an impact in the world. Money will follow.
Focus on the work you have to do.
Provide to the human, human will give you their money.
look how Facebook has done it, virtual social network for all. look how Tiktok, leveraging short-form content and made people addicted look how Apple, sells luxury to the customer look how Tesla, selling EV look how Microsoft, selling windows and making billions
and look at Google, doing everything to make an impact to people's lives. (google maps, google search, android, Gmail etc)
Provide value to the world, the world will give you what you want.
It's never easy to become a billionaire. The quicker you rise, the faster you will fall.
See you in the Billionaire's Index List
2. Read business books by people who consistently lead/advised at that level.
3. Find your philosophy. (Hint: this happens within, in your inner world.)
— You only need two or three great books in each category to really get going. Date of publication doesn't matter much; try to vary across backgrounds and decades, centuries.
4. Exercise a minimum on a weekly basis.
5. Eat well. Sleep well.
And train that voice within to become a perfect friend. (Funny to think you only have to will it to get that in life, just… inside.)
That's the TL;DR.
The rest will be self-evident on your journey, and involve a lot of luck. But if you're like most people, were you to reach a few % of that wealth, you'd probably stop right there and no longer worry about money, for the rest of your life. Incredibly few have the will to 10× that, then 10× again, because it's exponentially harder and comparatively useless.
Also, „becoming a billionaire” is such a distorted goal that I’d recommend a psychiatric checkup for anyone who seriously considers it as their life’s goal.
That's the only real way to become a billionaire
