PDF Summary:12 Months to $1 Million, by Ryan Daniel Moran

If building a million-dollar business in a single year sounds impossible, then entrepreneur Ryan Daniel Moran has news for you. In 12 Months to $1 Million, Moran writes that it’s not only possible, but also simple: All you need to do to reach that seven-figure mark is to sell three to five products tailored to a specific audience. To help you achieve this goal, Moran shares proven techniques for creating breakthrough products, marketing your business, and developing a brand with loyal customers. By following his approach, you can turn your ideas into reality, achieve your financial goals, and run a million-dollar business within a year.

In this guide, we’ll discuss the tools and techniques for creating and launching your product line. We’ll also explore Moran’s advice for growing your sales by engaging with your audience, as well as deciding whether to scale or sell your business. Throughout, we’ll compare Moran’s strategy with that of other entrepreneurs and provide actionable tips for applying his strategy to your own business.

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2. Decide where to sell your product. Moran suggests Amazon, Kickstarter (a crowdfunding platform), your own store, or a combination of the three.

(Shortform note: You should also make sure you’re ready to receive sales. According to Guillebeau, you can do this by notifying your bank so that they don’t freeze your account and by preparing various payment options—such as Paypal or Google Pay.)

3. Decide what social media platform you’ll use to interact with your audience—for example, Facebook, Instagram, or LinkedIn. Moran suggests you think about where your audience is most active and go there.

(Shortform note: In Crush It!, Gary Vaynerchuk recommends you use multiple platforms, not just the one that your target audience frequents most often. This allows you to take advantage of the strengths of each platform—for example, the visual appeal of Instagram, the personal connections of Facebook, and the professional networking of LinkedIn. However, make sure that all of them direct audience members to one place, such as your blog.)

Create Content and Engage With Your Audience

Now that you’ve prepared the logistics of your launch, it’s time to build anticipation and attract followers. You can do this by creating engaging content and interacting with people in your target audience.

(Shortform note: In Building a StoryBrand, Donald Miller recommends you include calls to action throughout your content. These are messages that encourage your audience to do something, such as subscribing to your email list or visiting your website. According to Miller, calls to action are crucial because people typically don’t act unless they’re challenged to.)

But what kind of content should you create? Moran recommends you use a format you’re comfortable with—whether that’s writing blog posts, creating videos, or hosting a podcast—and share your business’s journey with your audience—for example, let them see how your product is coming along, share your feelings about the launch, and answer common questions they may have. Creating such content spreads the word about your product launch and gets people excited about it.

(Shortform note: When sharing your business’s journey, consider oversimplifying your content. The authors of Positioning argue that simple and obvious messages are more effective because people’s brains can only hold a few ideas at once. If your message contains too much information, people will get overwhelmed and tune it out, so having clear and simple content about your business and your product will likely be more effective for engaging your audience.)

Moran suggests that in addition to creating content, you should interact with your audience as much as possible. Join conversations they’re having, weigh in on popular topics, and respond to every comment and message you get. Interacting with your audience helps build trust and loyalty, which are essential for building a successful brand and having a successful launch.

(Shortform note: In The Minimalist Entrepreneur, Sahil Lavingia echoes Moran’s suggestion to interact with your audience and recommends you work to become a recognized expert among them. First, lurk around to gain an understanding of the community. Once you feel more familiar with the group, join discussions and eventually start creating content and teaching information to others in the community. Lavingia suggests you let your passion show and truly listen to what others have to say. This helps you build strong relationships with members of your target audience.)

Recruit People to Support Your Launch

In addition to building engagement yourself, Moran suggests you recruit other people to support your launch.

First, he suggests you reach out to 10 people in your network. Ideally, they should belong to your target audience. Give them your product for free and ask them to post about your product. This is an easy way to spread awareness about your launch and cultivate a positive impression of your product.

(Shortform note: If you want to ask people you know to promote your product but aren’t sure how to go about it, consider Chris Guillebeau’s advice in The $100 Startup. He suggests you send a message with the following components: an explanation of what your business is about, the main product you’re selling, and the goals you want to achieve. Then, give one to three ways they could help you and thank them for their time and support.)

Moran says that another way to get more attention for your launch is by finding an influencer to promote it. Moran suggests you connect with smaller influencers who have around 10,000 followers. They have enough influence to boost your sales and are also more likely to agree to work with you.

(Shortform note: While Moran suggests you work with smaller influencers, some marketing experts say the best type of influencer for your company depends on several factors, such as your goals and your budget. If you have a lower budget and want higher engagement, consider working with nano influencers who have under 10,000 followers. If you have a higher budget and want more professional influencer marketing, consider working with mid-tier influencers with over 100,000 followers.)

To get an influencer to support your product launch, Moran recommends that you give them something first rather than ask them for a favor. Think of what you can offer them—one of the easiest ways is to offer money or send a gift, but you could also become more involved with them by sharing their content or interacting with their followers. Moran writes that focusing on building a relationship in this way, rather than merely making transactions, makes people more willing to work with you.

(Shortform note: In Perennial Seller, Ryan Holiday also suggests focusing on relationships instead of transactions, and he presents some additional tactics for persuading influencers to endorse your product launch. First, identify suitable influencers by finding people who have promoted similar products before and reaching out with the intention of improving their lives. Then, consider some other ways to offer value to them, such as giving free content, creating custom products for them, or making them an unofficial ambassador for your brand.)

Create Incentives for Early Buyers

As you near your launch date, ramp up the anticipation by creating incentives for people to buy your product when it launches. Moran suggests two ways of doing this:

1. Create a priority list. Make a list that gives priority access to people most eager to buy your product. To create this list, announce that you have a limited supply of your product and that you can’t guarantee there’s enough for everyone to purchase when it launches. Then, ask people to comment with a specific phrase (like “Save one for me!”) if they want one reserved for them. You can also create an exclusive communication channel with these priority customers to make them feel valued. Moran notes that priority lists create a sense of scarcity—people become more eager to buy because they don’t want to miss out on your product. Plus, by reserving products for people, you ensure you’ll have buyers on your launch date.

(Shortform note: The sense of exclusivity that a priority list creates increases social currency. According to Jonah Berger in Contagious, social currency is something that improves a person’s public image and social influence. Having an insider status gives people social currency because it makes them look good and more powerful. Berger explains that people only talk about things that give them social currency, so they’ll likely brag about being a part of your list. This will encourage other people to want to join as well.)

2. Give special bonuses. Another way to get more sales when you launch is to offer special bonuses for people who buy your product in the first few days of your launch. You could consider doing a BOGO (buy one get one) deal or giving an extra feature or freebie. These bonuses will motivate customers to buy early to avoid missing out on the opportunity.

(Shortform note: When creating special bonuses for your launch, make sure they are amazing deals, not just mediocre ones. According to Jonah Berger, an amazing discount has four characteristics: First, it offers a big saving—such as 50% rather than 5%. This ensures more people will talk about it with others. Second, make sure the discount is limited so that it seems special. Third, use percentage discounts (like 50%) when you have a price below $100 and numerical discounts (like $10 off) when you have a price above $100 to make it seem like a better deal. Lastly, make the discount well-advertised and obvious so people share it with other people.)

Step 3: Grow Your Sales

Once you’ve launched your first product and are taking sales, Moran writes that your focus should be on maintaining momentum and growing your sales. Your goal is to reach 25 sales per day. Moran explains how you can achieve that level of sales by effectively maintaining your inventory and funding and by creating positive buzz around your product.

(Shortform note: While aiming for 25 sales per day can help you know if you’re on track for growing a million-dollar business, other experts suggest you judge your business’s success not by daily sales but by other metrics, such as trends surrounding your busier versus slower days. They point out that daily sales volume can differ dramatically based on the price of your product and argue that it’s better to pay attention to whether your sales are growing, declining, or stagnating over longer periods.)

Maintain Your Inventory

Once you’ve launched your product, you must manage your inventory and keep your product in stock. Moran says that running out of your product can be disastrous for your business: It prevents you from making revenue, destroys your sales momentum, and loses customer engagement. Managing your inventory can be tricky, however, because you have to anticipate the demand for your product. If your product gains sudden popularity and your sales volume spikes, you might run out of stock and be unable to fulfill all the orders.

(Shortform note: According to research, stockouts cause retailers to miss out on nearly $1 trillion in sales. So what should you do if you run out of stock? Experts provide some tips: First, communicate the situation honestly with your customer, apologize to them, and offer a discount on an alternative product if possible. They also recommend you cut your marketing for that product to avoid wasting money and attracting customers to an unavailable product. In addition to this, you should also issue refunds and consider offering the option for customers to pre-order your product.)

Moran offers several tips for avoiding a stockout:

Tip #1. Don’t wait to restock your inventory. Reorder as soon as you know your product has some demand. This should be right as your launch ends or when you start getting more than 10 sales daily.

(Shortform note: You can use inventory management software to figure out when to reorder inventory and avoid running out of stock. Many of these software programs have features for optimizing your inventory levels and making smart purchasing decisions, helping you track, record, and update your inventory to reduce errors and make the process more efficient overall.)

Tip #2: Increase your product price. If your product is selling faster than you can restock your inventory, Moran recommends raising the price of your product to slow the rate of sales.

(Shortform note: Moran doesn’t go into specifics about how to determine what your price should be in the first place. In The Personal MBA, Josh Kaufman describes several methods for pricing your product fairly and profitably. You can determine the price based on your manufacturing costs and your desired profit, the cost of similar products, the long-term value that your product brings to your customers, or how much your product is worth to people who will value it the most.)

Tip #3: Place big inventory orders. Ordering your products in bulk not only allows you to avoid the risk of stockouts, but it also gives you more room to negotiate discounts with your supplier.

(Shortform note: While Moran suggests you order your inventory in bulk to save money, other experts argue that placing smaller, more frequent orders is better for maintaining an optimal inventory level. This allows you to avoid stockouts without having to store large amounts of inventory. Smaller orders also take less time to fulfill so they have shorter lead times (the time it takes for you to receive your inventory after placing your order). This means you can get your inventory faster if you run low on stock than if you ordered in bulk.)

Maintain Your Funding

One main challenge to keeping your product in stock is having enough money to order it. Moran recommends you have $10,000 available at your disposal at all times for this purpose.

(Shortform note: Many experts suggest businesses keep some money in reserve to deploy when needed, but there’s no strict agreement on what the amount should be. Rather than giving a hard number like $10,000, some recommend having enough cash reserves to cover three to six months of your business’s operating expenses. However, the amount of cash you should keep depends on other factors such as the stage of your business and what industry you’re in, so if you’re not sure what’s a safe amount to keep, consider consulting an accountant.)

If you don’t have that kind of money, there are some other options you can consider to fund your business:

Option #1: Find an investor. Bringing in an outside investor can be one of the quickest ways to get money, Moran writes. To give a successful pitch to an investor, Moran suggests you ask them for advice, not money: First, tell them how well your product is selling and how you plan to continue growing your business. Then, ask how they would fund your business if they were you. Asking for advice opens people to helping you, while asking for money closes them up.

(Shortform note: In Pitch Anything, Oren Klaff writes that to win over investors, you must appeal to their emotions, not their logic. Klaff suggests three things you should do when pitching to investors: First, create desire and tension by focusing on the larger vision rather than on small details and data. Second, make them feel like they’re trying to win you over by not appearing needy and asking them why you should partner with them. Lastly, be humorous and lighthearted so that you don’t deter people. Though these specifics are different from Moran’s, the underlying idea is the same: Instead of directly asking for money, engage potential investors in different ways.)

Option #2: Run a crowdfunding campaign. You can get regular people to support your business through crowdfunding sites like Kickstarter. To create a compelling campaign, Moran suggests you create a video showcasing your product, your goals, and your plans for the future.

(Shortform note: Moran doesn’t specifically explain how crowdfunding works, but in The Success Principles, Jack Canfield writes that crowdfunding is when people give money to people, causes, and businesses they care about. He says Kickstarter is the most well-known crowdfunding site, but you can consider others like GoFundMe or Indiegogo. Like Moran, Canfield recommends creating a video because it’s an easy way to share your passion and also because Kickstarter campaigns with videos tend to raise more money.)

Option #3: Borrow money. Another way to fund your business is to get a loan. But, this option has some drawbacks: It can take a long time to get approved and you’ll have to pay it back with interest. Moran recommends you borrow money only when you know you’ll make money by using it—for example, when you’re sure you can sell all of your inventory and make a profit. Don’t borrow money for things that have no guaranteed profit. For example, don’t take on debt for advertising, because you don’t know how much money ads will bring in.

(Shortform note: Funding your business through loans is called debt financing. Financial experts provide some more pros and cons of debt financing that can help you determine if it’s right for your business. Some benefits are that it’s tax-deductible, it allows you to run your business without ceding control or profits to private investors, and it can improve your credit score if you pay your loans on time. However, debt financing often requires you to use private assets as collateral and you may face higher interest rates because lenders will view you as a riskier borrower. This increased expense along with the increased risk is why experts caution against taking on debt for something like advertising.)

Get Positive Reviews

Maintaining your inventory helps you sustain your sales, but how do you increase your sales to 25 per day? According to Moran, the best way to do this is to get more positive reviews, which you can do by engaging with your customers—the real force behind your sales. This means responding to comments and reviews, getting testimonials, and continuing to share the growth of your business. Being active with your audience helps you grow a sense of community, trust, and loyalty, while also increasing awareness about your product.

(Shortform note: While Moran suggests you increase your sales by continuing to interact with your audience, some marketing experts argue that you should focus on attracting new customers rather than nurturing connections with existing ones. In How Brands Grow, Byron Sharp states that marketing aimed at existing customers isn’t very effective because they’ll never buy more than what they want or need. Instead, Sharp suggests you try to expand your audience.)

To get more positive reviews, Moran suggests you ask for feedback from your customers and then reward them for giving it. For example, you might ask how they like the product, give them a discount code when they reply, and then ask them to leave a review on the product.

(Shortform note: In Building a StoryBrand, Donald Miller suggests you specifically get testimonials that showcase how your product changed your customers’ lives. To do this, ask your customers questions such as what problem they faced before encountering your product, how it felt dealing with that problem, how your product resolved this problem, and how their life has since changed. Miller writes that testimonials describing transformation are effective because people are most motivated by the opportunity for transformation—to feel like they’ve become more adventurous, creative, or attractive, for instance.)

Once you receive good feedback or reviews, Moran suggests you screenshot them and share them on social media. This shows your audience that you care about their opinions and also displays their satisfaction with your product.

(Shortform note: In Contagious, Jonah Berger agrees with Moran’s suggestion to share feedback from satisfied customers. He argues that price, quality, and advertising are less important contributors to a product's popularity than word of mouth. Beyond screenshotting and sharing positive feedback to create public visibility, you can also make your product advertise itself by displaying your product name or logo on your product. You can also give customers a gift with your brand on it. This way, people are immediately aware of your brand when they see others using your product.)

Step 4: Launch the Rest of Your Product Line

According to Moran, once your product is making at least 25 sales per day, it’s time to launch your next product. Remember, you need three to five products, each selling 25 to 30 a day at around $30 each to reach seven figures with your business. To achieve this goal, you must repeat the process for the rest of your product line while continuing your advertising efforts.

(Shortform note: Experts recommend you do four things before rolling out the rest of your product line: First, make sure your next product is something your customer actually needs based on the feedback you’ve been receiving from them. Second, create a detailed market strategy determining what customers you want to reach and develop an engaging message. Third, reveal your product as a concept or sneak peek to gauge interest before refining and launching it. Lastly, prepare for unexpected obstacles.)

When launching the rest of your product line, Moran writes that you must focus most on advertising your brand and exposing it to new audiences. You can do this in a number of ways, but Moran argues that the most effective way is to build relationships with more influencers. They already have large followings and are seen as trendsetters, which allows you to reach new potential customers quickly. Moran suggests you form more connections with relevant smaller creators, as we’ve discussed earlier. Ask them to promote your platform and encourage their followers to subscribe to it. Once you form relationships with smaller creators, Moran suggests you network with bigger creators to gain access to even larger audiences.

(Shortform note: If you’d like some extra assistance for partnering with influencers, you can consider working with an influencer marketing platform. Influencer marketing platforms provide tools that help you discover the right influencer for your brand and may even have staff who can vet influencers and see whether they’re willing to work with you. They offer other forms of support as well, such as managing your campaign and relationship with your influencers.)

Step 5: Decide Whether to Scale or to Sell Your Business

Once you’ve launched your entire product line and reached $100,000 in sales per month, you have a million-dollar business. So, what’s next? First, Moran writes that you can start paying yourself. Up until this point, you’ve been working hard and reinvesting your profit into growing your business. Moran suggests you pay yourself enough to work on your business full-time.

(Shortform note: Different experts offer different advice on when you should start paying yourself from your business income. While Moran suggests you wait until you reach the million-dollar mark, others write you can pay yourself sooner, as long as your business is stable and you have a good understanding of your business’s cash flow. When you do decide to pay yourself, you can either give yourself a regular salary or an owner’s draw, which is money you take out of your business when needed.)

Next, Moran says you have two options for what to do with your business: You can keep growing it, or sell it to another company.

(Shortform note: In The Hard Thing About Hard Things, Ben Horowitz presents two questions you can ask yourself to decide whether or not to sell your company. First, ask yourself if the market you're in is larger than anyone realizes. Second, ask yourself if your company has a chance of being the top business in that market. If you answer “yes” to both, Horowitz advises you to stay independent. Otherwise, you risk selling your company for less than what it’s worth.)

Moran says that if you choose to keep growing your business, you should focus on transforming it from a sales machine that depends on your constant involvement to a sustainable business that can operate without you. To do this, reinvest your profits in advertising your brand, creating content, improving logistics, and hiring team members. This frees up your time and energy so that you can focus on expanding your business.

(Shortform note: Although Moran says that you should build a business that can run without you, in The $100 Startup, Chris Guillebeau states that you may want to stay involved and keep your company small if you care about stability and freedom over making money. You can also consider a mid-sized model to reach wider audiences without sacrificing ownership.)

If you choose to sell your business, Moran suggests you focus on your long-term goals. You’ll likely retain a minority stake in your business and receive payments based on how well it performs, so he advises that you don’t settle for a quick payout from someone who will treat your business poorly. Instead, find a buyer you trust and are willing to work with. By selling it to someone who’ll treat your business well, you ensure that your business thrives and that you’ll continue to reap the rewards of your hard work.

(Shortform note: If you’re concerned with how to put your business into good hands, you can consider finding a professional adviser to help you sell your business. In Built to Sell, John Warrillow provides several tips for finding the right firms to aid you in this process: First, consider the size of your business. If it makes under $2 million annually, Warrillow suggests using a business broker. If it makes over $2 million, consider a merger and acquisition firm instead. Next, ensure that your adviser is familiar with your business’s industry, as this allows them to accurately recognize the value of your company.)