I’m a Self

Jul 25, 2023

Success as an entrepreneur comes in all forms. You might build your wealth through a unicorn startup, becoming a serial entrepreneur who starts several small businesses, or become an investor in many small businesses.

GOBankingRates spoke to Darin Huffaker, President of Huffaker Business Consulting, to learn more about how he built wealth through investing in small businesses.

Here’s how investing in small businesses helped build up my fortune.

See: 7 Frugal Habits That Aren’t Actually Good for Your FinancesMore: What To Do If You Owe Back Taxes to the IRS

Over the last 20 years, Huffaker has invested in different types of small businesses. Some of these ventures have included a maid service, disaster clean-up business, commercial door and hardware, construction, and pest control.

For a while, Huffaker said he bought or built new businesses as quickly as possible. He brought on partners to run these businesses, but many of the companies were failures in the long run. According to Huffaker, it takes a certain kind of person with a certain kind of personality to succeed in entrepreneurship. Many of his partners didn’t possess those attributes.

After 10 years, Huffaker sold his first million-dollar business. Ten years later, he sold his second business for four times the value of the first one. The bulk of Huffaker’s success was discovered in an unusual space: the pest control industry.

“The advantage of the pest control industry is it has repeat revenue,” said Huffaker. “Many of the other businesses I invested in you had to continually advertise to bring in new clients. Pest control clients sign up and stick with the company for over four years. Thus, your revenues are predictable.”

Learn More: How To Build Generational Wealth From Scratch

In addition to being the president of Huffaker Business Consulting, Huffaker is also the COO of Dancan The Pest Control Expert, an angel investor, and a Small Business Development Center advisor.

Those thinking about investing in small businesses should know it’s a rough yet rewarding road. Huffaker said many people lack the basic understanding of a financial statement or how to advertise. These skills can be learned, but it takes effort. The same can be said for investing in small businesses that reward those who are willing to continually learn.

“If you want a job that starts at 8:00 a.m. and ends at 5:00 p.m., this is not the route you should take,” said Huffaker. “If you are willing to work hard and learn, millionaire status can be achieved quickly. Plan on at least a five-year total investment of time, money and effort.”

More From GOBankingRates

4 Ways To Become Rich Working Less Than 5 Days a Week

9 Middle-Class Money Traps That Keep You From Being Wealthy

3 Ways to Recession Proof Your Retirement

5 Best Ways To Stay Safer From Identity Theft When You're Online

This article originally appeared on GOBankingRates.com: I’m a Self-Made Millionaire: How I Invested in Small Businesses To Build Up My Fortune