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Do I make more assets or grow the ones I have?

Discussion in 'Making Money' started by Omirag, Jan 20, 2017.

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Do I make more assets or grow the ones I have?

  1. Create-spinoffs

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  2. Grow current businesses

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  3. Other (see post)

    0 vote(s)
    0.0%
  4. I just want to click a button

    40.0%
  1. Omirag

    Omirag Jr. VIP Jr. VIP

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    Hypothetically speaking, say you built a buisness to 30k a year. Then you built a spin-off business that is in its early infancy and is at 10k a year. The process of going from 0-10k takes about a year and the process from 10k-30k takes an additional year.

    Would it be best to continue to create spin-offs, or should one focus on increasing the revenue of the two current businesses?
     
  2. Morpheus696

    Morpheus696 Registered Member

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    Create a few spinoffs. If that business worth 30k went under at least you still got your few spinoffs
     
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  3. Spintent

    Spintent Junior Member

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    Makes a lot of sense. Diversification is the key! But by all means don't bite off more than you can chew!
     
  4. Omirag

    Omirag Jr. VIP Jr. VIP

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    Yes, I believe this is the key. It is finding how much work is enough and when it is time to spin-off again. I just created the third spin-off so we shall see. Just hit a bit of a drought in the other 2 and trying to figure out how to get them moving again before I put to much more time into this third one.
     
  5. yitaoz

    yitaoz Jr. VIP Jr. VIP

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    I think it is a bit of a false choice here. I don't think it is either or. Once you have cash flow from your first business you can hire someone for your spin off
     
  6. Omirag

    Omirag Jr. VIP Jr. VIP

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    This sounds like you would set a goal before you moved to your next company. How much money do you need per year, per month? before "you can hire someone for your spin off"
     
  7. yitaoz

    yitaoz Jr. VIP Jr. VIP

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    I think that is really circumstantial. Are you living off the money from this company or is this a side hustle. How much burn rate can you endure and how much runway do you have.

    For example Uber has been spinning off into different locales, Uber eats, Uber delivery etc for years now, but they still make massive losses every quarter but they are ok with it because they have a lot of runway and can handle the burn rate.

    But at the end of the day it comes down to a cost benefit analysis. If you think in a year the spinoff can hit 10k profit annually, and you have 2 businesses pumping up a combined 30-40k from the sound of it, then maybe hire some employee from the Philippines working from home to start your third niche. They are pretty cheap maybe 500usd a month. I hire about 6 of them and they are quite good and communicative.

    So one year on, you would have your third niche making 10k a year, and would have paid about 6k to make that possible. Sounds like a good deal
     
  8. jonwilliams

    jonwilliams Junior Member

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    Smart people make assets.!
     
  9. Nut-Nights

    Nut-Nights Jr. VIP Jr. VIP

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    You better have more than one income source. But if you business have good scope you can focus on it.