Thought Experiment


Business is an infinite game. Keeping a company alive and growing as a sustainable entity is the game. Leaders compete on the field of capital allocation and these are levels of success based on how frequently a company can generate a million dollars in revenue during the year.

Levels.

Yearly…
$1,000,000 

Monthly…
$12,000,000 

Weekly…
$52,000,000 

Daily…
$365,000,000 

Hourly…
$8,760,000,000 

Minute…
$525,600,000,000 

Second…
$31,536,000,000,000

So, the thought experiment centers around which level your business can reach.  For example, a restaurant with a single location may never even reach level one while Domino’s has close to 19,000 stores and generates $4.36 billion a year, making it almost a level 5 business. And, at the tippy top, we have Walmart who generates $559 billion a year, over a million dollars every minute.

If you sell a $500 product once a month to 2,000 customers you have a level two business. To be at the same level selling a $20,000 product, you’d have to sell 50 customers a month or 600 per year. These are all made up arbitrary numbers, but the fun is in knowing that it’s all bullshit. You can make up whatever levels you want for your own game. That’s the beauty of it. Sure, you have to play by the broad based set of rules which change at different levels, but it’s still just a game.

have fun.