Earning, saving, and investing enough money to become a millionaire is usually a slow and measured process. In fact, we recently found that you'd have to save $6000 a month to reach six-figure savings in 10 years. So when we heard about Trevor Chapman, a once-broke college student who turned $200 into a million in just 90 days, we couldn't help but wonder how on earth he fast-tracked that process.
"There came a point in time when I had to say, 'I'm in my mid-thirties, am I willing to wait until some of my kids are out of the house … [to enjoy] my life to the extent I imagined I would?" he tells CNBC. Chapman decided to take a gamble and spend $200 launching LDSman, an online store that sells an eclectic mix of inexpensive products sourced from China, such as drink bottles and iPhone lenses.
After just three months, he hit his first $1 million in sales—all by working just an hour and a half per week on the site. The key, he says, was doing drop shipping, a practice that involves setting up a deal with suppliers to have orders shipped directly from their warehouse. It meant that Chapman had very little risk as he didn't have to buy inventory to start the business. "That's the best way to test a product to see whether or not it's actually going to sell," he says.
His top tip for those considering following in his footsteps with an e-commerce venture? Don't quit your day job just yet. "It requires work like everything else, but you don't have to risk your full-time job to do this," he says. With a few hundred dollars and serious business prowess, you can turn a side hustle into a money-making venture, too.
Have you started your own business? Tell us what the biggest challenge was to turning a profit.