Question about valuing Time vs learning Skills and Polygamy

[Trud09]

Hi There, I just finished reading the book and it was very insightful. I wish I had read it before starting a business and even before I started college.

Anyway, my question(s) stem(s) from the book.

What idea should I use to make my millions (I'm kidding, hopefully my value addition can be humor)

I am all for learning new skills and do not struggle with that. I more struggle with learning skills that don't directly benefit my business so I don't have to hire them out. Where should I draw the line? I do my own marketing accounting etc. At what point should I value my time more that the time it takes to learn a skill?

My Second questions is related to the first. I struggle with polygamy in trying to run multiple businesses at once. I will typically learn a skill and figure I can easy sell it and make money. I now see I should be running it through the needs in the marketplace test. The question is what is considered sticking with one business, how close do the products need to be together? For example I think there are 3 different categories:

A. Related activities:
A financial Advisor that does taxes
Cell phone service provider that sells cell phones
Author and Speaker
Realtor and Loan Officer

B. Somewhat related activities or similar products that kinda go together:
Financial Advisor who does Mortgages
Financial Advisor and Real estate investor
Mortgage Loan Officer who does taxes

C. Unrelated Activities:
Cell phone seller that is a Loan Officer
Realtor and a Roofer
Poop Scooper and Roofer

I understand category C would by polygamy. Would 2 things in category B be considered polygamy? From the consumer viewpoint they sometimes go together, but sometimes don't. I assume products that can be sold together are not considered polygamy.

Thank you for any insight.

 

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[Trud09]

That is very interesting.

How should I decipher whether or not it is polygamy? Is it if I am meeting the same need? Is it if I can sell the products together under one brand the consumer doesn't scratch their head? What if one naturally follows the other like the FA and taxes or Realtor and Loan officer. Should I focus on one exclusively? Couldn't it be a USP to go to one place for your your financial needs?

Just thinking out loud and I would appreciate further detail about the reason behind your answer.

Thank you

 

[Trud09]

A Realtor and Loan Officer are NOTHING alike. They hold different licenses and are licensed by different government agencies. In fact, in some states, there are laws against one earning commissions off the other for referring business. If done right, each of them is a full time job.

I was surprised how well you knew each one until I clicked your link. Nice website.

I understand that the top performers for each are different. To me they are filling the same need. I will easily agree that I spread my interest too thin to be great at one thing. I guess I am looking for a filter to help me not do that. Should I ignore extra revenue from someone who is already a client?

Thank you for your thoughtful replies thus far.

 

[MJ DeMarco]

Hi There, I just finished reading the book and it was very insightful. I wish I had read it before starting a business and even before I started college.

Anyway, my question(s) stem(s) from the book.

What idea should I use to make my millions (I'm kidding, hopefully my value addition can be humor)

I am all for learning new skills and do not struggle with that. I more struggle with learning skills that don't directly benefit my business so I don't have to hire them out. Where should I draw the line? I do my own marketing accounting etc. At what point should I value my time more that the time it takes to learn a skill?

My Second questions is related to the first. I struggle with polygamy in trying to run multiple businesses at once. I will typically learn a skill and figure I can easy sell it and make money. I now see I should be running it through the needs in the marketplace test. The question is what is considered sticking with one business, how close do the products need to be together? For example I think there are 3 different categories:

A. Related activities:
A financial Advisor that does taxes
Cell phone service provider that sells cell phones
Author and Speaker
Realtor and Loan Officer

B. Somewhat related activities or similar products that kinda go together:
Financial Advisor who does Mortgages
Financial Advisor and Real estate investor
Mortgage Loan Officer who does taxes

C. Unrelated Activities:
Cell phone seller that is a Loan Officer
Realtor and a Roofer
Poop Scooper and Roofer

I understand category C would by polygamy. Would 2 things in category B be considered polygamy? From the consumer viewpoint they sometimes go together, but sometimes don't. I assume products that can be sold together are not considered polygamy.

Thank you for any insight.

You're thinking about this too much, like its a precise formula. Follow the need and the marketplace. If you're doing that, the multiple business BS cancels itself out.

Example 1:
Business A: Makes $25,000/mo, phone is ringing off the hook.
Business B: Makes $250/mo, you're struggling to find sales.

Business A wins because that is where the market is reflecting need and demand. That is where your focus should be.

Except one problem...

You never get to Business A because you never hit any one business hard enough.

So now you get:

Business A: Makes $25/mo
Business B: Makes $140/mo
Business C: Makes $90/mo
Business D: Makes $9/mo
Business E: Makes $11/mo
Business F: Makes $180/mo

You have SIX businesses that SUCK.

And they will continue to SUCK because you are spread too thin and not focused on ONE and its core value proposition.

If you want to get to a business earning $25,000/mo, you need focus so you can build, adapt, and grow to that point. Four hours a week, whether that's your dedication, or that's your lifestyle beach schedule, ain't gonna cut it.

Good luck.

 

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[Trud09]

You're thinking about this too much, like its a precise formula. Follow the need and the marketplace. If you're doing that, the multiple business BS cancels itself out.

Example 1:
Business A: Makes $25,000/mo, phone is ringing off the hook.
Business B: Makes $250/mo, you're struggling to find sales.

Business A wins because that is where the market is reflecting need and demand. That is where your focus should be.

Except one problem...

You never get to Business A because you never hit any one business hard enough.

So now you get:

Business A: Makes $25/mo
Business B: Makes $140/mo
Business C: Makes $90/mo
Business D: Makes $9/mo
Business E: Makes $11/mo
Business F: Makes $180/mo

You have SIX businesses that SUCK.

And they will continue to SUCK because you are spread too thin and not focused on ONE and its core value proposition.

If you want to get to a business earning $25,000/mo, you need focus so you can build, adapt, and grow to that point. Four hours a week, whether that's your dedication, or that's your lifestyle beach schedule, ain't gonna cut it.

Good luck.

Thank you for your reply. I have started too many businesses and hoped people would beat down my door to buy from me based on product alone. I am still looking for that opportunity and I now see that is unwise. I am ready to buckle down and work hard to get in the fast line. Get rich quick instead of get rich easy.

I still have some things that are not clear to me. Some of it I think stems from my business background.

Ways to make more money (according to them):
1. More sales
2. More profit per sale
3. Get more of your customers wallet (find ways to meet your current customers other needs)

1 and 2 are straightforward and mentioned in the book. My questions I guess is around 3. Would this be considered a different business or the same? Example, a CPA that is a financial advisor. Fairly different products in a similar field. Some people use this as a USP, being a one stop shop.

Different business meeting a similar need(s?) or the same business meeting a need? Being multiple places in the same transaction (Realtor, Mortgage LO, Title Company Etc) is this same need same business or different business?

I have already used the WADM which is a great tool. I look forward to any replies. Thank you