I was having a conversation with a young entrepreneur and what he was telling me was he actually moved on to his third business, but the problem he was having is his second and first business had actually had to be closed down because they weren’t becoming successful anymore. Now, they used to be widely successful. When he started with his first he worked his tail off, learned the ins and outs of business and what it took to run a business, actually was able to scale it and then freed his time and used his capital that he had gained from the first business, the money he made, and implied the second business, which I think is actually really smart. Then he did the same thing with the second business, but while he was building a second business, his first business started to diminish, right?
It started to go down because it was lacking his focus and attention. It just needed that to grow. It wasn’t set up properly. It was set up on a shaky foundation, and then he did the same from his second business to his third and the third business actually started to do well, but at the price of the second and the first.
Now today, he was talking to me, he was asking me, “Doug, how do I actually manage this? I want to go to the fourth business now, but I’m worried about the third and I just keep going and going.” I was talking to him I said, “Look, you can’t, you can but you shouldn’t. If you want to be the Author of Your Own Story and really live a digital lifestyle and be able to travel and do the things that you want to do … ” Now this was his story that he related to me.
You want to keep that first and second business thriving. The key is to set the first business up almost like you were going to scale in the sense of franchise, so it’s able to be taken over by somebody else and you are able to pull yourself out of that business at one point, then you need to put somebody else in place. So put a manager, or another CEO is a common way that you could do that, in the place of your business, while you’re moving onto your second so they stay stable.
There’s key performance indicators or KPI’s that are in that first business, so you know the health status of the business. You still should be relying on the business or excuse me, not relying, but you should be looking deep into the business just so you know what’s going on. Then do the same thing with the second business if you’re that lucky. If you’re lucky enough to have two businesses, then work onto number three, great. But the key is to have the infrastructure in place so the businesses don’t run you and you’re able to run them.
For me I found the best way of doing that is systematizing my business, great books on that. Real basic one is the E-Myth, another one is Checklist Manifesto, highly recommend those, but also then, hiring the right people and training and investing in them and making sure they have ownership of the business before you move onto another one, so there is a stream of revenue coming in.
In 2007 a lot of people got hit and one of the reasons they got hit was the falling economy, but what I had noticed when I was talking to a lot of my very wealthy clients, is they had multiple streams of revenue coming in. Some of those were real estate, some of those were investments, and some of them were having multiple businesses coming in. So, if one got affected, the others would actually pick up the slack or really be able to keep them invested in the income producing opportunities that were available to them.
Of course, with those people, they were able to jump on price structures right? So homes especially, and other businesses that were going out, they were able to buy them very cheaply at discounted rates. So, that really opened my eyes and really made me want to think about how I could scale my businesses in the sense of having multiple businesses running, but also making sure I don’t leave number two, in this guy’s scenario, number two and number one, so keeping them all thriving during that transitionary period are possible.
Now, what I want you to think about if you don’t have a business or have no aspirations of owning your own business, where else do you adjust in your life? Where do you go from one fitness goal to another, but at the detriment of the first goal? So, I’m going to use a typical one that I hear from men all the time, wanting to bench press 300 pounds, right? So maybe you bench press 300 pounds, you got this newfound strength, and then you want to be more flexible so you start doing yoga, you start doing some dynamic flexibility, some tissue work, but you forget about the bench press, you’re no longer maintaining that goal, and you actually get very weak, you get a lot of muscle atrophy that comes on.
There’s ways you want to do is really focus your program so you can keep that base layer. You’ve hit this huge goal and this newfound strength, and you want to keep it as you’re getting more flexible during that time. I have certainly found myself guilty of this.
But also in relationships, where are you focused on one relationship, but you do that in a detriment of other ones. Maybe your family, if you have a new love relationship. So what I encourage you to do right now is grab your journal, write your five to thrive, and where are you or where have you sacrificed one goal in pursuit of another one when you really want to keep them both going, right?
So again, in the idea of a relationship, if you have a new relationship or you’re looking for a new relationship, how can you set it up in a sense that the relationship you are focusing on currently, doesn’t really sacrifice the other relationships around you, and look at that. This happens a lot with new friend groups, definitely when you’re dating somebody. Just look at what’s going on in those relationships and how can you keep them accountable? Not accountable, but how can you keep yourself accountable to make sure you don’t dip?
I love going after another goal, love growth, but don’t do it at a detriment of a previous goal. It may take more time, it may not, but it may. But make sure you’re actually really going after that in a smart and an intelligent way that makes sense, that allows you to keep scaling yourself, right?
Write on your five to thrive, write in each category, and just be introspective and look. Where is it that I’m possibly going after goal number two or business number three or four, but at the detriment of the other businesses? The same rules apply to businesses, they apply to your relationships, they apply to your body and your mind, as well as your soul.
That’s it for me today. I hope you’re having a fantastic day. As always, go over to authorofyourownstory.com get more tips, tricks, techniques, as well as insights delivered right to your inbox. I love to hearing from you, as always, go out, inspire somebody else by being the Author of Your Own Story.
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