An Inch Wide & A Mile Deep

Many entrepreneurs believe owning multiple businesses is the key to building wealth.

They point to legends like Richard Branson (400+), Warren Buffet (60+), and Tony Robbins (100+). They say it gives them multiple streams of income, diversification and love to tell you all about it.

For 99% of entrepreneurs is this a terrible idea.

Multiple Businesses = Diluted Focus

Every business legend has built their entire fortune upon the foundation of one core business.

They focused entirely on building a single business for years. They scaled it and turn them into money printing machines. They replaced themselves in all operational roles. Only after the pinnacle of success is achieve in the core business did they venture into another business.

Owning multiple businesses dilutes your focus and ability to build a solid foundation.

Inch Wide & A Mile Deep

When you a mile wide & an inch deep you become a weed with roots that grow just below the surface of the ground. You pop up everywhere and grow fast but can be easily be plucked out.

Example: You own a landscaping company, a pizza shop, one home service franchise territory, and a few self-managed rental properties.

There is zero synergy between the businesses.

Your attention is split among the multiple companies, people & challenges. The operators in place at each business are focused on running the day-to-day business, not solving the bigger challenges & mapping out an aggressive growth plan.

Instead when you are an inch wide & a mile deep you become an oak tree with deep roots that anchor you into the earth. You grow slow, then all at once. You are resilient having survived multiple storms.

Example: you own 25 pizza shops.

You've become an excellent operator. You acquire failing shops for pennies on the dollar from disengaged (mile wide & inch deep) owners and turn them into profitable locations within a few months.

You have multiple people in leadership positions and pipeline of talented being developed every day.

Who do you think is going to build a bigger & more profitable business?

The guy who’s scattered or the guy who’s focused?

What About Diversification?!?!

When you are the building phase you want to minimal time diversification to concentrate maximum energy on growing your business. The sun diversified across the earth keeps us warm. The sun concentrated with a magnifying glass will light something on fire 🔥

You want to be the magnifying glass

Once capital is created from your core business you want to diversify your investments. Prioritize ones that perform without to your personal involvement.

Here's how I diversify with passive investments that require near zero time invested

1. Infinite Banking - max out funding policies for the entire family that provides a great place to warehouse, grow and protect capital

2. Real Estate Syndications - multi-family, self storage, and mobile home parks run by solid operators. These investments provide cash flow, appreciation across multiple asset classes and geography

3. Private Businesses - invest into private businesses that have strong competitive advantages run by rock-star teams. These investments include a wedding/hotel/golf business & the largest coffee company in Colombia

4. Index Funds - dollar cost averaging into low-cost index funds gets the rest of the capital. Boring but consistent long-term performance.

5. Amazon Business - we invested into an Amazon store thats 100% managed by another company. Read more about it here.

6. Rental Properties - can provide some cash flow & appreciation but you must have a great property management team in place.

7. Hard Money Lending - we lend out capital a small group of real estate investors to buy & flip properties. I spend 2-3 hours up front on a loan that cash flows passively for 6 to 12 months.

TLDR;

• Concentrate on 1 business, turning into a money printing machine

• Say no to everything that doesn’t improve your core business

• Don’t let your investments distract you

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Business with Beers

Every week on my podcast I bring you the stories of entrepreneurs about building their business, wealth & passive income.

See you again next week!

Cheers

Brian