James Schramko here. Today, I’m going to share with you a technique to know instantly how safe your business is.
When I talk about safe, I mean, danger is a job, right? Job is where you get paid by one person and if that one person has a problem with you or something goes wrong with the business, that job ceases. And that is dangerous.
Now, if you want to get paid by a lot of people, then you probably have a business and you’re much safer. If you want to get paid by a lot of people in different countries, in different currencies for different products, then that is way, way, way less risky. So if you want to de-risk your business, the simple technique is to get paid by more people. How do you get paid by more people? Well, you create value that scales. You help more people, you will actually earn more income.
I like to have my business spread across different markets. I get paid in different currencies. I’m holding money in different currencies and I have different products. I have SilverCircle, I have SuperFastBusiness, I have a book “Work Less, Make More” on Amazon and Audible. I also have some affiliate income and I’m building assets to sell in the background and I have some revenue/royalty share deals which is a model that I teach people about inside SuperFastBusiness. So when it all adds up, I’m getting paid from hundreds and hundreds of different places so my chances if I upset one person or my product is not a good fit for one person, that’s not really going to affect my business because it’s going to be less than a fraction of a percent of my portfolio is impacted by something like that.
So there you go. The quick metric to know how safe your business is, simply how many people do you get paid by. And the goal of course, is to increase that number. If you could be paid by tens of thousands or hundreds of thousands of people, you probably have a pretty safe business in terms of revenue. Now, there are other factors, of course. You have to have a good business model. It wouldn’t help if you’re a Blockbuster and then Netflix comes along. Even if you are paid by a lot of people, you don’t want a mass exodus. So there’s a lot of other factors to consider. But the main point here is, if you’re only being paid by one person or two or three, see if you can get that to five or six or ten or twenty and build in some security for your business.
I’m James Schramko and this is superfastbusiness.com.
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