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January 8, 2025 • 40min
How to Make $1,000,000 After You Graduate (5 steps)
My First Million
In this episode, Shaan Puri breaks down his proven 5-step process for making $1,000,000 quickly based on his personal experience going from a "painfully average" college graduate to successful entrepreneur. He shares both high-level principles and specific tactical advice for those looking to build wealth in their 20s rather than waiting for traditional retirement.
How to Make $1,000,000 After You Graduate (5 steps)
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Key Takeaways
- The 5 key steps to getting rich quickly:
- Have the courage to start now and avoid the "salary monster"
- Be prepared to fail multiple times and play the game 10 times
- Build core skills: learning to build, sell, and get lucky
- Move to where successful people in your industry are
- Be impatient with action but patient with results
- Three recommended "white belt" businesses for beginners:
- Marketing agency
- Real estate development (via apprenticeship)
- Business acquisition through SBA loans
- The "Freedom Number" - Calculate the minimum salary needed to have maximum freedom of time
- Proximity is power - Being around successful people in your desired industry accelerates success
Introduction
In this episode, Shaan Puri breaks down his proven 5-step process for making $1,000,000 quickly based on his personal experience going from a "painfully average" college graduate to successful entrepreneur. He shares both high-level principles and specific tactical advice for those looking to build wealth in their 20s rather than waiting for traditional retirement.
Topics Discussed
Slaying the Salary Monster (2:32)
Shaan explains why taking a traditional job can be dangerous to entrepreneurial dreams, introducing the concept of the "salary monster" - the addictive nature of a monthly paycheck that keeps people from pursuing bigger opportunities.
- "The three most harmful addictions in the world are heroin, carbohydrates and a monthly salary" - Nassim Taleb quote shared by Shaan
- The "someday trap" - Many say they'll start a business "someday" but that day never comes
- Zoo Tiger vs Jungle Tiger analogy:
- Zoo tiger (corporate employee) - comfortable but dependent
- Jungle tiger (entrepreneur) - self-sufficient but faces challenges
Playing the Game 10 Times (13:26)
Shaan discusses why multiple attempts at entrepreneurship are usually necessary for success and how to approach repeated failure constructively.
- Statistical reality: With a 10% success rate, trying 10 times gives you a 65% chance of success
- "Startups fail, but founders don't" - Naval Ravikant quote highlighted by Shaan
- Building your skill stack through failures:
- Learning to build/create
- Learning to sell
- Learning to get lucky
How to Win Even When You Lose (20:05)
Shaan explains how to extract value from failed ventures and build toward eventual success.
- Four types of luck:
- Blind luck (random chance)
- Motion luck (from taking action)
- Pattern recognition luck (spotting opportunities)
- Reputation luck (opportunities find you)
- Key skills to develop:
- Building/creating something valuable
- Sales and marketing capabilities
- Networking and relationship building
Proximity is Power (25:26)
Discussion of why location and environment matter for entrepreneurial success.
- Every city has its "whisper" - dominant industry and network
- Strategic relocation recommendations:
- Tech → Silicon Valley
- Finance → New York
- Entertainment → Los Angeles
- Being around successful people accelerates learning and opportunities
White Belt Businesses (26:33)
Shaan shares three specific business models that are accessible to beginners.
1. Marketing Agency
- Getting started:
- Pick one marketing channel to master
- Start with friends/family businesses
- Build portfolio through free work
- Scale to paying clients
- Target: 10 clients at $5k/month = $50k monthly revenue
2. Real Estate Development
- Entry strategy:
- Contact local developers within 5-mile radius
- Offer to work for free as apprentice
- Learn business fundamentals
- Leverage relationship for first deal
3. Business Acquisition
- Requirements:
- Higher experience/capability threshold
- Understanding of business fundamentals
- Knowledge of financing options (SBA loans)
- Benefits: Skip startup phase, immediate cash flow
Conclusion
Shaan emphasizes that getting rich quickly is possible but requires:
- Immediate action rather than waiting for the perfect moment
- Resilience through multiple attempts and failures
- Skill development in building, selling, and leveraging luck
- Strategic environment choices that support success
- Selection of appropriate business model based on individual capabilities
The path to wealth doesn't require genius-level intelligence or revolutionary ideas, but rather systematic execution of proven principles combined with persistence through multiple attempts.