Rule 1 Don’t focus on one thing
It is more important for you to focus on a few things when you are just starting out. There was a saying, “If you chase two rabbits, both will escape.” This is only relevant if you are going for a huge hit and you are not going to do it when you are starting out.When you start out, the only rule is to pursue three new opportunities at the same time. Once a venture is up and running, you are going to set it on autopilot. When you try and fail, you can diagnose why you fail and learn from the venture. Three projects do not mean three times the work. Focus 80 percent of your time on one project, the one that brings in the most money then split 20 percent of your time between the two remaining ventures. Or choose ventures which are more passive for the 20 percent of time left. 80 percent is about three days a week on your main venture. This could even be a full time job while you are building up savings so that you can quit and focus on other ventures. Don’t launch three huge projects from scratch, this will kill your spirit.
Rule 2: Copy your competitors
Copy your competitors now and aggressively. Do it by spending the least amount of money you possibly can. You just need to take someone’s idea and tweaked it for an entirely different industry. Sometimes copying will be cutthroat. When Facebook is on Snapchat’s tail copying every new feature, they are out to kill Snapchat. Find the patterns that link successful businesses is decoding the secrets behind a win. This is what you are doing when you copy, look for patterns that got your competitors to the top, use the information to match or beat them. If you are starting a side hustle, the opportunities for copying are huge. Keep digging as you think up strategies for your own product. If you are setting up shop as consultant, look at sites where people list their services such as Fiverr.com.
Rule 3: Quit Setting Goals
The biggest mistake you make when trying to build wealth is to set goals you think you can meet. If the goals are achievable in your lifetime, they are holding you back. The rich are obsessed with making their system bigger and better. Systems can pump out goals at a higher speed the more you refine them, with minimal input from you. This is important to build systems to join the New Rich. Luxury goods companies spend millions to convince you that their hot new golden egg should be on your goal list. Set big audacious goals, then forget the goals and focus on creating a system to produce the outcome you want not just once but over and over again. Knowing the minutiae that go into a process lets you create systems that automate the details. If gives you flow and routines. It frees up your brain space so you can keep scaling up. Systems thinking requires you to give up making money today in exchange for taking the time, energy and sweat equity to set up the systems that will do the work for you in the future. It is a lot of up-front work, and that’s the problem for most people. They prefer the short term win and want instant gratifications.
Build systems around things that take up most of your time. Spend a week documenting what you are doing. This kind of awareness forces you to be reflective and intentional, not reactive to whatever thing is in front of you. Drill down to the little things you have to do daily or weekly to produce what you want, whether it’s saving for a house, launching an ecommerce store, getting fit. Go to the smallest detail as possible, how you respond to a customer when an order comes through, how you print your labels, what you eat for breakfast. Once you have uncovered your blind spots, it’s time to line up your parts and build your system. what do you have to feed the system to make it work? What does your system produce for you once it’s set up? Can an output of your system get you better, cheaper, or faster inputs to create a snowball effect?
Rule 4: Sell Pickaxes to Gold Miners
Trying to come up with a brand-new business idea is stupid if you want to get rich. Look at where the masses are going after, and sell into the market that others have built around it. This is “selling pickaxes to gold miners”, this works in B2B selling and on the consumer side. Some pickax ideas:
– Sell add-ons for massively popular items
– Read news headlines each morning in a new way
– Look at other market places
– Leverage online learning platforms
– Eavesdrop on the influencers
– Look at what’s trending on Kickstarter campaigns and other crowdfunding sites.
– Scan Patreon.com to see which digital products are hot.
If you can buy an asset or a group of assets that have one common liability and you are confident in you ability to solve that liability, you can unlock loads of value. That’s the essence of private equity today.
The above are 4 rules I learned from “How to be a Capitalist without any capital” by Nathan Latka. Read here for a continuation of learning on this book. I bought this book because it is worth it.