My father was a mechanic at a large auto dealership for 30 years. He never made more than $35k a year and the best he was ever going to do was try to get a $5K a year raise.
But school owners are different. As school owners, we are in a unique position. If we choose, we can put our heads down and work hard to give ourselves huge raises.
Here’s some insights from my friend, millionaire and multi-school owner Greg Horton:
Check this out: If your school has 150 students and your netting $100k a year, you’re already covering your overhead, so all new business income drops to the bottom line. Adding only 62 new students at $120 a month will gross you $89,280. Spending a little more on overhead and netting an extra $75,000 a year is a no-brainer.
And it gets better. Only take $25,000 of that income for personal use and invest the other $50,000.
In only five years, you’ll have $250,000 plus any gains you make from your investments. At 6% return in 5 years, you’ve have $334,556.39. At 10%, you have $402,627.50 and that’s a lot of cash, my friend. And here is where it gets even more interesting…
After the five years, stop putting the $50,000 in your savings, give yourself a huge raise, leave the $402,627.50 in at 10% for another 10 years (hey, you’re living on $175K a year!) and at the end of the 10 years, you will have $1,044,312.04.
So let me ask you this. Could you grow your school by 62 students? Are you willing to take action, work hard, discipline yourself and get those extra 62 students?
Because if you do, there could be a million bucks in it for you and your family. Seems like it’s worth a little extra work, right?