You will never outwork a poor business model
Originally sent exclusively to The Letter subscribers on May 5th. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.
£150k for this, £350k for that, £2m for Mrs Reeves and some other turnover tax that’s been rustled up because our government thinks it can spend our money better than we can.
Drives me potty.
If unwelcome fireworks weren’t raining over the UAE I can’t help but ponder the occasional thought to my chums who have moved there and are frankly loving it.
That’s my brain every single day. An entrepreneur in growth mode is always optimising cash.
Growing a company taxes you far more than money.
It will rock your relationships and steal your calm. If you’re going for a breakthrough, aim for a calm mind and make that a priority when you come out before you go again, if only for your family.
I’m making a coffee now on a Sunday morning and I’m thinking, how am I going to solve challenge 634?
I’d like to be making the coffee and thinking about hugging my kids or planning a family adventure.
If you’re like me, you solve challenge 634, take a breath, and then start taking on challenges you didn’t even need to, it’s not our fault we’re wired this way.
What a curse energy and ambition can sometimes be.
The trouble with me is, I always overcome them.
And that’s where the danger lies. You just keep going, armed with resourcefulness and newly found skills.
You know the feeling is temporary. You’re a ray of sunshine in a twisted set of circumstances.
You’re a ball of glitter dust in a pile of shit.
Marching forward is what you do. Winning can be a curse. Marathon runners go again and again. Heaven knows why.
You’re an entrepreneur. You’re a doer. Netflix and chill isn’t you.
That’s why.
Whether things are going your way or not, life will throw a curveball at any moment and you need to be ready.
Life is up and down. When the difficulty turns up. Use it. I always have.
On paper, I have considerable net worth. I know that.
But I feel lost and broken at least 100 days a year.
If things never go well and you feel lost and broken for 365 days a year, I’ve got some thoughts and questions for you to ponder.
This is my playbook. Please swipe and deploy.
You must ask yourself a few key questions:
Is my model good or great?
If the answer is no, stop. You will never outwork a poor business model.
Trust me. The model is the foundation. If you’ve got a bad one, don’t fret.
You’ve just had a five-star education in entrepreneurship on how not to build a shockingly shit model.
Most people who get early success stumble across a great model by luck, not judgement.
They’ve got no scars, and they end up mucking up a good thing by diverting profits into a mountain of shite ideas.
Ask Richard Branson. He took profits from seriously good models to fund vodka, cola and wedding dresses.
Top tip: go to my website, jamessinclair.net, and take the model analyser quiz to see where your model is at and what you need to tweak.
If your model is good, and it’s been verified by someone who actually knows what they’re doing, someone mega successful in your sector, then it’s time to do the following.
First: Get A players that are better than you at ops and admin.
Second: Build your personal brand to attract more A players.
Get great at marketing, specifically direct response and content marketing.
Third: Get mentorship and build a thirst for learning. Seminars, YouTube, books and podcasts are incredible resources.
They certainly weren’t around in the same way when I started.
The A players you’ll need:
A shit-hot MD who looks after operations and ensures your vision is implemented properly.
An amazing FD who optimises cash and finds funds.
It’s all about entrepreneurship plus management equals success. E + M = S.
Get yourself a PA. If you haven’t got an assistant, you are the assistant.
Once you’ve got that in place, focus on revenue generation. Then put people in to lead revenue generation.
My experience has taught me that administration and organisation are far easier to fulfil than winning contracts and driving growth.
Lastly…
Protect yourself. Build assets around you. I call these slow pounds.
They protect you and your family if everything stops tomorrow.
Fast pounds, your business, need a completely different approach. Keeping that going is the entrepreneur’s job.
Slow pounds, for me, is commercial property. That can be run by any half-wit commercial agent.
Then buy companies that bolt on to what you already do.
Final thought:
When you’re going through hell, keep going. Embrace awkward conversations. Rest if you must, but don’t quit.
To your continued success,
James
