John McCormack, Inc. Entrepreneur of the Year

John McCormack
Inc. Entrepreneur of the Year

John McCormack was a New York City police officer-turned-stockbroker who made a million bucks before age 30, and then lost it all. His wife owned a hair salon. With a little time on his hands and not really sure how he'd make his comeback, he began pitching in a little around the salon. A few improvements here, a few there. He discovered it could be a profitable business, and felt the industry seemed ripe for innovation. Fifteen years later, Visible Changes was arguably the largest and most respected upscale hair salon chain in the United States. And John McCormack was named the 1988 Inc. Magazine Entrepreneur of the Year. I met him in person. He said there is one, and only one, imperative above all others for the aspiring entrepreneur. That is:

Spend less than you make.

How much less?

He said if you spend more than 70% of what you make, you're risking it. But save (and reinvest) 30% or more of your annual income, no matter how large or small your income is, and you'll soon be making more money than you ever imagined.