It’s natural to want to take every opportunity that falls in your lap when you start out…but I’m here to tell you, you shouldn’t!
I think this is a problem with a lot of entrepreneurs early on. I tried to take every opportunity and I could not do every opportunity. There’s only so much time and resources. You have to understand how to pick the right opportunities.
“People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying no to 1,000 things.”
-Steve Jobs
How to make decision on things I want to focus on:
How Much Time Will This Take for Me?
I have 168 hours in a week. That is finite. Regardless of money, you have to look at time. I love that I never missed a school event. I never miss anything my children are involved it.
I might look at the team and see something that’s not right and it means I have to spend too much of my time and get too involved for it to make sense for me.
What Are the Real Costs?
A good rule of thumb is that whatever the opportunity is, it’s always going to be more than what someone tells you. It’s always 50% more than you think.
Am I going to have to sound for a loan? What are the real costs in cash AND credit?
Am I Being Asked to Call in an IOU? Do I need to call in someone from my network? You only get so many of these (IOUs) and you have to use them sparingly.
What is the Payoff?
Is this payoff going to alter my life in any way? An offer to make $5k after putting up $100k for a project is not where I’m at. Sure I could make $5k…but I could lose $100k!
Will It Take My Time, Focus, or Resources Away from a Current Winning Company or Project?
What happens if this new venture starts tanking?
Do I have to bring resources over from a successful company to run this one? What are odds of me having to step in and bail this new company out? I have my eye on no more than three balls at a time. That’s my personal limit. If this project is going to take too much focus and I’m going to have to take resources from another company to help this one, it’s not a good idea.
Is There Synergy With Other Projects?
For instance, my digital marketing company is a great investment. It has great synergy with my handyman company because of the digital marketing services it provides. We saw that digital marketing was getting us results, so I hired the person who handled our digital marketing account away and started a partnership with him. Now I only pay costs on digital marketing.
Is It In Your Lane?
Do you understand the business or the area of business that it exists in. I understand marketing and that was enough for me to venture into digital marketing, creating synergy between these two companies.
