How to Make Earning Your First $1 Million in Revenue a Reality

Scaling a business to its first million dollars in revenue is a significant milestone, and we've gathered wisdom from CEOs and founders to illuminate this path. From discovering your unique value proposition to networking and building strong relationships, explore the diverse strategies and personal experiences of 22 entrepreneurs who have navigated the journey to $1M in revenue.

Discover Your Unique Value Proposition

My best tip for hitting your first $1M in revenue is to find your value. Let me explain: your business can either deliver a small value to a large number of people or a significant value to a smaller group. Both strategies are effective, but much depends on your product or service.

We started as a design agency in 2009, working on various projects ranging from e-commerce websites to media platforms, EdTech, and gaming. However, we hit our first $1M in revenue when we focused only on fintech and banking.

Going into a niche is often considered scary because it seems like you're limiting your project volume. But in reality, it allows you to become more focused, gain specific expertise, and develop deeper knowledge and skills than working across different industries.

We noticed this almost immediately when we created the first Ukrainian neobank, revolutionizing the banking industry in the country in 2017. This project earned us numerous international awards, including the Red Dot Award, and led to dozens of new banking and fintech projects being added to Alty Inc.'s portfolio.

Don't be afraid to step into a niche. It gives you the potential to become a super-expert in that area and attract clients who value your insights and the products you create for their audience.

Leo Goriev, Co-Founder, Alty Inc.

Create Focused, High-Quality Products

Focus is the key. Specifically, here's what I did to hit $1.1M in sales within 11 months: after working with clients one-on-one, I decided to use my business knowledge to create a course for people who wanted to leave their jobs and become entrepreneurs. But early on, I created a smaller "first steps" course to teach people how to get their first paying clients.

Later, I expanded it to create my signature Employee to Entrepreneur course using the feedback and knowledge I had gained. Without focus, I wouldn't have been nearly as successful. So, bottom line: it's better to create one valuable product at a time—and make it the best it can be—than to create many different products that no one wants.

Luisa Zhou, Founder, LuisaZhou.com

Set Achievable Milestones for Growth

My advice is to forget hitting $1M. Aim lower. Much lower!

Instead of focusing on a steep amount like $1M, focus on earning your first hundred thousand instead. That way, you can approach your goal using a step-by-step process. When it came to our company, my co-founder and I would have gone crazy well before hitting the million-dollar revenue marker if that had been our original goal.

Instead, we tackled and conquered each obstacle on a daily basis. We gradually built our business brick by brick and consistently laid the groundwork for sustainable growth. As a result, there were some days when we felt like our progress was turtle-slow. But even when we didn't see immediate results, we learned something new each day. Every menial call, every task, every balance sheet, new partnership, and daily trial contributed to the overall progress.

And, before we knew it, we'd made our first $1M.

So, my tip: instead of getting overwhelmed by the big picture, prioritize daily goals that will ultimately propel you toward your success. Measuring and hitting smaller, achievable goals led to our company's significant growth. That process can work for your company, too.

Jordan Harary, Co-Founder, The Bid Lab

Leverage Your Network for Growth

As a long-time entrepreneur who has built four companies that surpassed $1M, I've developed a few core strategies to aid the growth of my startups. My best tip for building a business that exceeds $1M in revenue is to grow, curate, and nurture your network. I leveraged my network (including 24K+ LinkedIn connections) to help build my team (key employees), strategic partners, and, most of all, sales pipeline.

It doesn't have to be complicated. Simply share your vision and offering with your network and make the ask: "If you know anyone that may benefit from my products/services, please send them my way." It took me a few years to get over the idea of being intrusive or selfish in my ask, but if you believe in your business, you're offering a gift, not begging for customers.

Kent Lewis, Founder, pdxMindShare

Find Brand Ambassadors and Stay Lean

Stay as lean as you can and try to find as many brand ambassadors who truly love your product as you can! Getting your product to the right people who will talk about it the right way is what will help you reach the right audiences. Don't waste money on a ton of marketing until you have a great understanding of product-market fit and who your ideal customer is, plus why your product is so great for them.

Danielle Gronich, CEO, CLEARSTEM

Conduct In-Depth Market Analysis

Achieving your first $1M in revenue is a huge milestone. Here's how we got there: before expanding nationally or globally, conduct an in-depth market analysis to understand demand in different regions and prepare accordingly. Ensure your supply chain can meet anticipated demand.

Once you expand, adapt your marketing strategy. Create unique pages for each local market, and craft geographically tailored ads. Invest in regions with higher demand. Leverage SEO to create content specific to local markets; this drives more organic traffic and engagement.

A big temptation is to scale too quickly. While it's exciting to see rapid growth, it's crucial to maintain service quality. Growth must be calculated and manageable to ensure orders can be fulfilled efficiently. Innovation should never compromise your brand's integrity or product quality.

Your business name should reflect what you do, especially for an e-commerce business without a physical store. An explicit name helps potential customers understand your offerings, which is vital for brand recognition and trust.

Marketing is the biggest driver of sales. Choose products that can be marketed in an aspirational way. UGC is a powerful tool—it can populate your website and socials quickly and affordably, building credibility and engagement.

Before fully committing to a product, test its demand on platforms like eBay or Gumtree. Monitor social media for market response and penetration. This simple testing can provide valuable insights into the viability of your product.

Utilize tools to check search volumes for keywords related to your product. Aim for high search volumes and low competition to find opportunities to rank well and drive traffic.

Choose a niche that excites you and has the potential for longevity. Your passion will drive your motivation, which is crucial during the challenging early days. Stay updated on trending niches and ensure they align with your interests. Understand your market and competition thoroughly.

Engage with your customers, gather feedback, and adapt your strategies based on their needs and preferences. Building a loyal customer base can drive repeat sales and organic growth.

Forming partnerships with other businesses, local Chambers of Commerce, or awarding bodies can provide additional exposure and credibility.

Combining these strategies helped us scale effectively and reach our first $1M.

Jake Munday, CEO/Co-Founder, Custom Neon

Simplify the Product for Self-Service

Make the product self-serve.

Often, products are not self-serve because:

They have a customized product for each customer.
Their ICP is enterprise customers.
Sales acquisition channels are outbound.

What we have realized over time is that none of these reasons are good reasons for a product to be complex in today's world. Using the product shouldn't require reading documentation or speaking with a customer success person.

Everyone appreciates a product that is simple to use, respects their time, and makes the purchase decision easy.

In fact, we acquired several enterprise customers for the simple reason that our product is seamless and easy to use. And that was one of the key reasons we were able to hit $1M in revenue.

Deepti Chopra, Co-Founder, Adaface

Pivot Quickly to Market Demands

My story to the first million is unconventional. We originated out of Museum Hack, for which I was the Marketing Director and my partner, Tasia, was the Operations Director before we bought the company from the founder. Museum Hack was bringing in about $2.8 million annually at the time of the sale, in large part from our expansion into strategic cities beyond NYC. This growth plan required exceptional teamwork between our departments—marketing to raise product awareness and operations to deliver on those promises.

Mere months after the sale, the pandemic hit, and we quickly pivoted to virtual team-building events. The first million came rapidly, as demand for our services boomed in lockdown conditions, and we were one of the first providers to market in the relatively new space.

I suppose that the lesson other entrepreneurs can take from my journey is that the path to $1 million in revenue is not formulaic and can vary greatly. Your route does not necessarily have to be starting a company from scratch and steadily growing it to seven figures in a predictable way.

Michael Alexis, CEO, teambuilding.com

Establish Predictable Recurring Revenue

My best tip for hitting your first $1M in revenue is to create recurring revenue. The beauty of recurring revenue lies in its predictability. Knowing how many customers are on recurring plans allows you to plan your hiring, spending, and growth with confidence.

From my own experience, our company's revenue has fluctuated significantly, with some months bringing in low and some coming in high. However exciting those numbers may sound, they need to be viewed in the context of our monthly expenses. With recurring revenue, even though we start making money right away, there's no guarantee these customers will stick around long-term.

But here's a key caution: don't just jump on the recurring revenue bandwagon because you're dreaming of a constant stream of passive income like Scrooge McDuck. This model should only be used if it's something your customers genuinely want to pay for on a monthly basis. It needs to make sense for them to engage in a recurring payment rather than a one-time purchase. For us, this model works through our Sumo website tools.

However, it's important to recognize that recurring revenue isn't without its challenges, such as dealing with customer churn. It's not as simple as setting up a subscription service and forgetting about it. You need to continuously engage and provide value to ensure customers see the worth in staying subscribed.

Alex LaDouceur, Co-Founder, Webineering

Obsess Over Customers' Customers

My team and I have broadly implemented three key strategies. First, go beyond being customer-obsessed; be obsessed with your customers' customers, prevent feature creep, and make sure the process maximizes value for their customers. Second, fuel harmony between engineers and product managers by setting up analytics and providing technical support to understand customer behavior and feature effectiveness. Lastly, you must adopt agility, be ready to pivot quickly, and help clients experiment and adapt to what works.

Maulik Bengali, Founder, Ajackus

Listen, Learn, and Evolve Strategically

Listen, Learn, and Evolve.

First, sharpen your listening skills and listen to your business. What do people value most? What do people throw in the trash? (Literally, check the trash—it's a sign of what they don't value!) What is getting the most utilization and seeing the most success?

Early in our journey, we landed on one customer who succeeded tenfold more than any others. At the time, we thought we were being opportunistic by working with her, but she brought so much more to the table than we originally anticipated. Once we saw her success, we listened to every word she said, every piece of feedback she brought, and even what was between the lines of what she told us.

Second, learn from your business. After our big first customer success, we studied her intensely, deducing what characteristics she was bringing to the table that mattered most. Comparing her against other customers, we could see what clearly differentiated her. If we could replicate her success, we knew we could scale.

Finally, once you learn, you have to apply those learnings to evolve and have the impact you seek. When we thought we understood the key characteristics of our high-value customer, we created a scoring matrix for future customers and started to rate them against her. After all, our goal was to find a lot more customers just like her! All of a sudden, we had a clear target customer and a way to qualify leads. We were on our way to scale!

Our first high-value customer was a pivotal point in our business, and she formed the framework of the customers we still pursue today. However, it wouldn't have been possible if we didn't have the ability to listen to our business (and her), learn from what she brought to the table, and quickly evolve.

Josh D'Angelo, CEO, MovementX

Craft a Story-Driven Marketing Strategy

When my family started our company, we had to figure out what really set us apart in a crowded market. Our focus from day one was on authenticity. We committed to creating high-quality, sustainable leather bags with a bohemian aesthetic that genuinely resonated with our target audience. This wasn't about following trends but staying true to our brand's unique voice and values.

One of the most effective strategies we used to scale to $1M was leveraging story-driven marketing. Sharing our brand's history and values helped us build a strong connection with our customers. We didn't just focus on selling bags; we shared the craftsmanship, the artisans' stories, and our commitment to sustainability. This approach made our customers feel like they were part of something bigger, creating loyalty and word-of-mouth buzz that was invaluable for growth.

Entrepreneurs should focus on creating an authentic brand story that resonates with their audience and then communicate that story consistently across all channels. This helps in building a loyal customer base and drives organic growth.

Ben Schreiber, Head of eCommerce, Latico Leathers

Seek Diverse Advice and Set Goals

Get started today. Find your first customer, build something, and get people interested. If you manage to generate some initial revenue and have a few people who love your idea, well done! Most people never make it this far. But getting from here to $1M in revenue is not easy.

My best advice is to not rely on a single piece of advice. This journey is where most founders fail, and the best strategy for one company might not work for another. Therefore, ensure you get plenty of good and diverse advice. Seek mentors, advisors, or even a board with experience in scaling businesses. Make sure they have different backgrounds to cover all bases—from sales and product to tech.

Be extremely selective with your advisors, co-founders, and team members. Recruit the best people who can help you reach $1M in revenue and cover your weaknesses.

In addition to recruiting, strategic advice that helped me includes:

Identify and Solve Real Problems – Ensure you're addressing a genuine problem in the world.
Think Big, Start Small – Set a big vision but begin with the smallest possible ideal customer profile (ICP) and excel there before expanding. It's easier to capture a larger share of a small market and then grow.
Adapt and Expand – Be ready to pivot as needed and gradually expand your ICP.

We reached $1M in revenue by engaging with inspiring people, identifying their problems, forming a diverse team to solve those problems, enlisting the right advisors, and expanding our ICP step by step.

Mads Viborg Jørgensen, CEO and Co-Founder, PatentRenewal.com

Reinvest Earnings for Sustainable Growth

My best tip for hitting your first $1M in revenue is to reinvest your earnings back into your business strategically, and avoid focusing on short-term goals. This approach ensures that your company can scale sustainably by continually improving its products, services, and operations. By allocating profits toward critical areas such as marketing, talent acquisition, and technology upgrades, you create a solid foundation for growth.

I would say that reinvestment also allows you to harness the momentum of your initial success, driving innovation and enhancing your market position. Entrepreneurs can learn that thoughtful reinvestment, rather than solely focusing on short-term gains, is key to creating long-term prosperity and reaching significant revenue milestones.

For example, my company focused on consistently improving our services and customer experience, investing in top talent, and expanding our marketing efforts. As a result, we were able to attract more customers, increase customer retention rates, and expand into new markets. By continuously evaluating and reinvesting in these core areas of the business, we were able to grow our revenue steadily and hit our first $1M milestone within three years.

David Rubie-Todd, Co-Founder & Marketing Director, Glide

Implement Systems and Automation Early

My best tip for hitting your first $1M in revenue is to implement systems and automation early on that will support all departments of your business. These tools should be easy to understand and user-friendly, ensuring they aren't roadblocks but rather enablers of growth. From my experience scaling a business to $1M, automating our marketing, sales, and customer service processes played a crucial, and often underrated, role in achieving that goal as it led to efficiencies in our business that ultimately enabled growth. I would encourage fellow entrepreneurs to learn the importance of investing in the right technology and processes at the start in order to streamline operations and free up time to focus on strategic growth.

Marina Middleton, Co-Owner and CEO, Create & Cultivate

Niche Down and Focus on ROI

My biggest tip for founders wanting to hit their first $1M in revenue? Niche down.

Read the book "Focus" by Al Ries—then read it again. Entrepreneurs make the mistake of being a "jack-of-all-trades," and this works when you are just starting out, but it doesn't work at scale. In fact, this approach breaks.

Here are three things we did to finally hit $1M in revenue in 2022:

We niched down. It hurt. We turned off two revenue sources: weddings and corporate Videos. Al Ries said it best: "The essence of positioning is sacrifice. You must be willing to give up something in order to establish that unique position." One night in 2020, I was up drinking whiskey, and I bought the domain name FranchiseFilming.com after we did our first franchise video for Go Minis—and the rest was history. We used to be CorporateFilming.com, and I had to turn that off if I really wanted to niche. I still pay $15 a year to this day. In fact, HubSpot says businesses in a niche get on average 65% more leads than those in a crowded market.

We fished in the pond where our ideal market was. This means going to expos and shows that cost between $2,500-$15,000 to attend and network. I don't go to free shows anymore—most big decision-makers don't go to big shows. If I pay $5,000 to attend a show, yet we land a $50,000 client, that is a 900% ROI. Name me another source that would get you that. PLUS, they see you and can become your friend. Before someone can buy from you, they must like you.

We started doing monthly live webinars to the space. I was doing live webinars about franchise development videos before I was even a thought leader. But I knew video and storytelling—and that sells franchising. I wanted to educate people before I even tried to sell to them.

My takeaways for you:

Find a company name that is in your ideal niche. Change your name.
Go to one expo a quarter in your niche for two years. Don't say it doesn't work until you do this. People have to see you over and over.
Do one live webinar a month to your ideal niche. It doesn't matter if 1 or 100 people come. Keep doing it.

Those are three tips to niche down and hit your first seven-figure year. If it's painful when you start doing this, good. It means you are doing it right.

Trevor Rappleye, CEO & Storyteller, FranchiseFilming

Execute Daily Plans With Commitment

While this advice may seem obvious, it can be challenging to implement. Make a plan and commit to executing it every single day to achieve your company goals. Stay focused and avoid distractions, always keeping your eye on the prize, whatever that may be. Remember to make adjustments as needed and learn from your mistakes—there will be plenty along the way.

Jeffrey Gabriel, CEO, Saw.com

Build Relationships Over Transactions

When we were just starting out, hitting that first $1M in revenue felt like chasing a unicorn. But here's the secret sauce: focus on relationships, not transactions. We didn't just build websites; we built trust. One of our earliest clients was a small local accounting firm. We poured our heart into their project, and they loved it so much they recommended us to everyone they knew.

Word-of-mouth became our best friend. We also made sure to understand our clients' businesses inside and out, which allowed us to offer tailored solutions that genuinely helped them grow. This approach not only brought in repeat business but also attracted bigger clients who appreciated our dedication.

So, if you're aiming for that $1M milestone, remember: it's not just about the money, it's about the people. Treat every client like they're your only client, and the revenue will follow.

Patrick Deja, CEO & Founder, Codi.pro

Focus on Large-Scale Opportunities

My tip for hitting your first $1M in revenue is to focus on big opportunities rather than spreading yourself thin across numerous smaller ones. We achieved this milestone by launching our product in 3,000 CVS stores. By concentrating our efforts on securing and successfully executing this large-scale partnership, we were able to gain a significant market presence and build momentum quickly. With limited resources, it's crucial to prioritize and invest in opportunities that offer substantial growth potential. This approach not only maximizes your impact but also helps establish a strong foundation for future expansion.

Lauren Picasso, Founder & CEO, Cure Hydration

Understand and Serve Dual Markets

We hit our first $1M in revenue in 2019. This milestone taught us valuable lessons that other entrepreneurs can apply: laser-focus on your customers' needs, even if it means building multiple businesses simultaneously.

As the leading marketplace in our space, we essentially had to build two businesses at once—one for buyers and one for sellers. This dual focus was challenging but crucial. We dedicated ourselves to understanding and meeting the unique needs of both sides of our platform. This attentiveness allowed us to build trust and cement our position as the authority in the Australian market, even as we faced competition from billion-dollar U.S. companies.

We didn't worry about our competitors. Instead, we concentrated on providing a unique experience tailored to our Australian market. This approach proved that if you can offer something truly distinctive, you can scale successfully, regardless of your competition's size.

A key strategy in reaching that $1M mark was doing things that don't scale—it might be a cliché, but it's powerful. We focused intensely on building a brand and community around our company, moving beyond being just a utilitarian platform. We put enormous effort into ensuring our first 100 or so customers absolutely loved us. This created a solid foundation of loyal users who became our brand advocates.

For example, we personally reached out to early users, seeking detailed feedback and even implementing their suggestions in real time. These actions weren't scalable long-term, but they were invaluable in building a devoted community.

The lesson for other entrepreneurs is clear: don't just focus on transactions; focus on experiences. Build a community around your brand. Really get to know your early adopters and super-users. Their passion and loyalty will fuel your growth far more effectively than any marketing campaign.

Remember, scaling to $1M isn't just about the numbers—it's about creating value and fostering relationships that make those numbers possible. If you can provide a unique experience and build a community that truly loves your brand, you'll be well on your way to hitting that $1M milestone and beyond, just as we did in 2019.

Justin Truong, Co-Founder & CEO, PUSHAS

Invest in Ads and Conduct A/B Testing

Being willing to invest in ads and doing A/B testing played a huge role in getting us to over $1 million in revenue. It can be scary to invest tens of thousands or even hundreds of thousands into ads, which is why you need to start small, test, and implement what works on a larger scale. The return on ad spend (ROAS) has been a significant driver for my company.

Simon Bacher, CEO and Co-Founder, Ling

Network and Build Strong Relationships

Networking is key! Networking can be done online or in person, and you should make time for both. By having good networking skills, where I give so much in a relationship or partnership for business, my name is mentioned in rooms I'm not in, continuing to build my network. This is how we have landed over $4 million in sales.

I also have a strong team that is managing their roles and supporting me, so I can stay the visionary as well as continue to network.

Paige Griffith, Lawyer, The Legal Paige