Picking an Idea and sticking with it.

[Trud09]

Hello,

I just found this forum last night and have had many insights already. I have lived off my self employment income since I graduated and the income keeps increasing. I am wanting to build a 2nd business now as I now see that my source of income has high risk (aka not having control).

It seems like I am pretty risk adverse. I like the idea of have rental properties to have a safe passive income, but after running the number for a long time and have my first property under contract I realize that I need a lot of capital or private investors to reach my passive income goals.

This led me to this forum, being able to make a lot of money with a business quickly. My questions boils down to this. How do I pick just one idea and stick with it and how do I judge what is the best? I am used to juggling multiple business ideas in my head and executing them when I see fit (or sometimes not executing any of them and staying with my original business that I know I shouldn't grow too big due to a lack of control). What is a good gauge for when a business is a failure to move on with my next idea or stick with the existing one?

PS I haven't read the book, but I will very soon.

 

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[Trud09]

PPS. I ran all my ideas through the 5 laws. How closely do you stick to scale? This is likely answered in the book and if so, just tell me. If it is only a local idea, do you stick with it?

Thank you for your reply

 

[snowbank]

How do I pick just one idea and stick with it and how do I judge what is the best?

By putting in the time and effort to calculate the expected value of each idea. Also, factoring in whether or not you'll be happy working on it. If you don't like it, you won't stick it out.

It seems like I am pretty risk adverse. I like the idea of have rental properties to have a safe passive income, but after running the number for a long time and have my first property under contract I realize that I need a lot of capital or private investors to reach my passive income goals.

Most people start businesses/invest this way. It's good you're realizing this now. Most people start a biz/invest in things that won't actually hit their goals. You need to decide your goal first, and work backwards to get into things that will hit your goals.

 

[Trud09]

By putting in the time and effort to calculate the expected value of each idea. Also, factoring in whether or not you'll be happy working on it. If you don't like it, you won't stick it out.

I partly run into this problem in my analysis of if I would be happy working on it. It is hard for me to know if I would like something unless I try it. About the only filter I have is I am a people person and I like being around people most of the day, not on a computer all day. This isn't a very strong filter, as I can end up hiring people after success or anything that has to do with me doing the sales meets this filter.


It seems like I should disregard what I would like to do in the 5 laws unless I am not fully understanding them. It is pretty satisfying for me to meet others needs, so I don't think I would hate doing anything where that is the case, and the help is measurable. Paying the bills is a must, but currently that seems to be provided through my business that I don't have control over.

 

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[OldFaithful]

How do I pick just one idea and stick with it and how do I judge what is the best? I am used to juggling multiple business ideas in my head and executing them when I see fit

Hi @Trud09, In another post you mention that you've now read the book, so perhaps you could review & apply the following and see if either method helps you better understand your options:

• Worst Case Analysis

• Weighted Average Decision Matrix

 

[Trud09]

Hi @Trud09, In another post you mention that you've now read the book, so perhaps you could review & apply the following and see if either method helps you better understand your options:

• Worst Case Analysis

• Weighted Average Decision Matrix

Thank you for following up with this. I have found the book insightful with this. The only thing I am working through now is trying to narrow it down to one idea by using the WADM.

I do have some questions left about when it is more valuable to pay someone else to do something compared to learning the skill yourself. Learning a skill VS valuing time. I think I struggle with this choice continuously. Feel free to reply here or in the other thread.

 

[OldFaithful]

My opinion is as follows: if the skill is going to part of my core competency (either short term or long term) then I need to learn it. If it is not, then it can be outsourced.

Examples, as a mfg of physical products:
Preparing my taxes is not part of my core competency (it has nothing to do with the mfg of my physical product) so it will be outsourced.
Building my website is also not part of my core competency, so it too is being outsourced.
Writing the text that will go on the website deals very closely with my company's image, so I will write it and send it to the site developer.
Sales and deal making will be integral to my company, so I will be improving that skill.

 

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[Trud09]

My opinion is as follows: if the skill is going to part of my core competency (either short term or long term) then I need to learn it. If it is not, then it can be outsourced.

Examples, as a mfg of physical products:
Preparing my taxes is not part of my core competency (it has nothing to do with the mfg of my physical product) so it will be outsourced.
Building my website is also not part of my core competency, so it too is being outsourced.
Writing the text that will go on the website deals very closely with my company's image, so I will write it and send it to the site developer.
Sales and deal making will be integral to my company, so I will be improving that skill.

This was close to the thought that I had in my mind but you articulated very well. Thank you.