6 Figure Business: Definition, Types, and Examples

A 6 figure business generates annual revenue between $100,000 and $999,999. This financial milestone marks the transition from a small startup to a thriving enterprise. Achieving 6 figure revenue requires a viable business model, effective strategy, and strong execution.

Definition

A 6 figure business is defined as a company that earns total yearly sales from $100,000 up to $999,999. The term "6 figures" refers to the 6 digits in numbers like $100,000 or $850,000. Businesses use revenue, not profit, to determine if they reach the 6 figure threshold.

Characteristics of 6 figure businesses include:

• Inspiring vision
• Sense of urgency
• Multiple income streams
• Excellent product/service quality
• Focus on the present

Types

Some common types of 6 figure businesses are:

1. Service-based

   • Consulting, freelancing, agencies
   • Leverages the owner's time and expertise
   • Examples: marketing agency, web design firm, business coach, SaaS companies like Embeddable

2. Product-based

   • Sells physical or digital products
   • Requires inventory management and fulfillment
   • Examples: e-commerce store, info-products

3. Hybrid

   • Combines services and products
   • Diversifies revenue streams
   • Example: web designer who also sells WordPress themes

Advantages

The benefits of running a 6 figure business include:

• Lifestyle freedom - control your own schedule
• Self-fulfillment - turn your passion into profit
• Financial success - earn more than a typical salary
• Skill development - learn valuable business and personal skills
• Prestige - gain recognition in your industry

Examples

Here are some real-world examples of 6 figure businesses:

1. Freelance copywriter

   • Provides writing services to clients
   • Earns $100k+ per year working from home
   • Key skills: persuasive writing, SEO, self-motivation

2. Amazon FBA seller

   • Sells physical products on Amazon
   • Sources inventory from wholesalers or manufacturers
   • $350k in revenue in year 1
   • Key factors: identifying in-demand products, optimizing listings, managing inventory

3. Business coach

   • Offers 1-on-1 and group coaching to entrepreneurs
   • $500k in annual sales
   • Keys to success: clear niche, premium pricing, strong marketing

4. Mobile app developer

   • Creates apps for iOS and Android
   • $150k/year as a solo developer
   • Skills needed: programming, UI/UX design, app store optimization

How to Start

The path to 6 figures typically follows these steps:

1. Identify a profitable business idea that aligns with your skills and interests
2. Validate the idea by talking to potential customers and researching the market
3. Develop your minimum viable product or service
4. Acquire your first paying clients through networking, cold outreach, or paid advertising
5. Deliver excellent quality and results to generate referrals and testimonials
6. Reinvest profits into growth and scale up your lead generation

Mistakes to avoid include:

• Choosing an idea you aren't passionate about
• Waiting too long to put your offer out there
• Underpricing your products or services
• Trying to do everything yourself instead of outsourcing
• Giving up too soon before seeing results

Scaling to 7 Figures

The jump from 6 to 7 figures requires:

• Increasing sales volume (getting more customers)
• Raising prices (earning more per customer)
• Productizing services for leverage
• Building a team to handle increased business
• Implementing systems and processes
• Strengthening your brand and authority

A 7 figure business is not just a 6 figure business with more revenue. It demands a shift in strategy, skills, and mindset. The transition involves working on the business, not just in it.

Conclusion

Building a 6 figure business is a realistic goal for entrepreneurs who are willing to put in the work. By choosing the right business model, delivering value to customers, and continuously improving, you can achieve the income and freedom you desire. The key is to start lean, stay focused, and scale smartly. With persistence and the right strategy, your 6 figure dreams can become a reality.