How to Identify Strengths and Revenue Streams

I need to make $8,000 to $10,000 (depending on what measurements, more on that later) in 2-4 weeks. This is how much I need in order to get back on my feet, financially. I have a day-job as a business analyst, but it doesn’t bring in enough to pay for my daily expenses, let alone the other events like car insurance, BMV taxes, speeding tickets, hospital visits, and car wrecks that happen along life’s path. This also leaves out any fun, gift giving, or getaways that a normal person might want to do. I decided to do something impactful on the bottom line. I needed to stop the cycle of overdrafts, late fees, and the risk of losing my cars, home, and other assets. I needed a plan.

Triage

The first thing I did was to get organized.  Personally, this is how I solve every problem.  I continue to organize it until there are no more problems within the problem.  In essence, I create a system.  The system then solves the problem.  This may not be the most effective way to solve a problem, but it is how my mind works and it is one of my strengths.  I feel strong whenever I am categorizing things, especially when I have to name or rename things in order to categorize them.  As a side note, I encourage you to ask yourself what makes you feel strong, then to write that down.  In the same way, notice what makes you feel weak (this is a weakness) and write that down too.  Then, start to do more of what makes you feel strong (your strengths) and less of what makes you feel weak.

Getting back to the problem at hand, I began by simply listing out all of my daily expenses in a Google Spreadsheet (by the way, if you ever need help setting up Google Apps or using Google Docs, I am your man, just leave a comment and I’ll be able to contact you from there).  Amazingly, I had not been doing this, but instead, paying bills as they came.  I had no idea how much money was coming in or how much money was going out.  If I wanted to know how much money I had, I logged into online banking and whatever the balance was, that was how much money I had.  I’m astounded about how many people manage their finances this way, or maybe it was just the people I was hanging around (more on that later).

Analysis

Once I had all of the bills, debts, and income listed out on a spreadsheet, I could start to do my analysis.  It wasn’t pretty.  I was getting snapped by late fees, overdue fees, and loads of interest charges.  I could save a boatload of money just by getting my bills caught up and paid on time.  And if I could get debt free, I could save even more on minimum payments, not to mention the interest.  In general, the faster you pay something off, the less interest you pay.  I had listened to enough Dave Ramsey to know that I needed to have a budget, start an emergency fund, and begin the debt snowball.  The question I had was how to do all of this when your budget is already negative?  One idea is to rotate the late payments so no one payment gets so late that you are either sued, leaned, garnished, or repossessed from.  I noted this as a possible solution, but saw it as more feeble than just trying to increase revenue, while keeping expenses low.  And that is exactly what I decided to do.

Start

I did not wait to do anything.  I knew that time was of the essence to as soon as I identified the next step, the next step was taken as soon as I was able to take it.  This sounds easy, but it is highly contingent on your motivation, your energy, and your measurements.  You might know what you need to do, but not want to do it.  This is a motivation issue.  Or you might want to do something you know you need to, but you don’t have the energy because there is only so much time in a day.  Then there is measurement, which shows what you value.  You can’t manage what you’re not measuring and whatever you are measuring will grow, so picking the right metrics and the right measurements is crucial to managing and growing your personal finances.

Motivation

I am using a variety of sources to help motivate me towards my goal of achieving $8,000 to $10,000 in 2 to 4 weeks.  One resource is TED Talks.  TED is a website of inspiring videos of entrepreneurs, teachers, futurists, and writers.  When I am feeling less motivated, I simply browse to ted.com and watch a video or two until I am sufficiently motivated to be more like that person, whom I view as successful.  In the same way, Karl Moore videos also inspire me to take action.  I discovered Karl Moore while doing the Thirty Day Challenge where he does “Mindset with Karl.”  The motivational videos mention the Thirty Day Challenge, but can stand alone on their own merit as truly helpful videos.  Karl Moore also writes books on happiness and self-development like The 18 Rules of Happiness and The Secret Art of Self-Development.

My children, or more specifically, my children’s desires are another source of motivation.  As I wrote in 4 Steps from Wanting to Receiving, having to decide what I can and can’t buy my children at the gas station is not a good feeling for me.  I would like to be able to choose what candy to buy them for health reasons rather than financial ones.  For some reason, this exercise motivates me more than any late fee ever will.

Energy

We all get the same amount of time each day, but because of our body’s limitations, energy is finite.  This means that energy must be spent in the most useful way as much as possible.  At my day job we would call this “utilization”.  While production is the sheer amount produced, utilization is production mapped against time, in other words it is how much was produced (how productive were you) in a given amount of time.  That is your utilization rate, which energy (and motivation) can play a large part in.  Managers wanting to more fully utilize their employees might want to invoke actions that either increase energy levels (by say rearranging a department based on strengths, not just needs) or increasing incentives (positive or negative). I have written a post on Ways to Stay Alert and Focused, but there is an entire site called Stay Alert, which has ways to stay alert and keep you energized.

After approximately 10 hours of working and drive times, I had approximately 3 hours of energy left to do work at home or somewhere else each day.  In order to be successful, I am going to use motivation in order to spend an additional hour each day in order to achieve this goal in 2 to 4 weeks.  To do this, after reading Stay Alert, I am going to be eating more fruits in the morning, more whole grains at night, and less or no meat for supper in order to stay energetic as I can throughout the day.

Measurement

The Law of Focus states that whatever you are focusing on (measuring) will grow.  In Management, Measurement, and Value I note that there is a clear link between value and measurement in that what you measure you also value.  You could say that a measurement of your values is in what you are measuring.  If you, as a manager, are only tracking stats on whether or not your staff shows up on time or not, then your staff will probably show up on time daily.  It shows that you only care (value) about whether or not they are there, but past that point, you are out of the loop.  Contrast that with the manager who tracks personal performance daily to get the utilization rate of each individual staff member, which he can do after implementing the staffing model I developed for his department.  Each staff member is now performing highly and if they come in late, it doesn’t matter, so long as they maintain their personal productivity numbers.

So what did I decide to measure? Remembering that what you measure will grow, I decided not to measure how much debt I owed.  Instead, I measured net worth, income (revenue), profit, and savings.  I also made another Google Spreadsheet which listed all of my assets, all revenue streams, the profit of each revenue stream, and savings from reducing a debt.  Every day, I would log into the various websites which contained information about my metrics and update the spreadsheet with new values.  Because my mind was focused on net worth, revenue, profit, and savings, I consciously and subconsciously began taking actions to increase those numbers.  In the same way that a manager sees improvement in whatever he or she measures in their  department, I would see improvement in my net worth, revenue, profit, and savings simply by measuring them.

Actions

Now that I have identified the problem ($8,000 to $10,000 in 2 to 4 weeks), identified the tools I have available (time, motivation, and energy),  and identified what metrics we are going to use to measure success, the first phase of this goal is complete.  You might call the first phase of research and discovery, “Analysis,” and this next phase, “Execution.”  In the same way that an idea is first created in the mind of man, then written down, and finally designed; it does not take shape until it is developed, manufactured, or implemented.  This second phase is what most people would consider the meat, the actions, the specifics.  It is where you actually do what you say you are going to do.  It’s the “fire” part of “ready, aim, fire.”

I began by doing a cost-benefit analysis of what activities would net the most gain in the metrics I had chosen.  I identified the resources I had available (the tools), which were my day job, a business that does business consulting in Indiana, an Indianapolis web design company, an Indianapolis coworking group, a DVD conversion blog and an Indiana VHS to DVD business, a blog about query string parameters, doing Indianapolis computer repair, helping my wife with her custom hand-knit wool clothes business or her blog about breastfeeding and Motivated Moms, helping Zac with his cognitive psychology training and discussion on what it means to be human, promoting the Erich Stauffer figurines web site, getting another side job, or having a garage sale.  My wife or children could also get a job or create more revenue for the family.  All options would be considered in order to achieve the goal.  This was a brainstorming exercise, which I’ll discuss with you later on to help you decide what activities you could do in order to achieve your goals, but first I’ll discuss how I did my cost-benefit analysis.

Costs and Benefits

It is easiest sometimes to decide what you are not going to do so I first struck the last choices having to do with my children and wife working.  My wife is a stay-at-home mom, but she also home-schools our three children, is a member of La Leche League, and the president of her local Alpha Chi Omega chapter – in addition to knitting for her Cloth Beginnings business.  I also decided not to help other people with their businesses because they don’t care about my goal as much as I do.  This strikes out my day job, computer repair, Zac’s business, and my wife’s business.  While one may want to support a business that is already doing well (defined as profitable – having more revenue than expenses) in the same way that you have the greatest chance at developing a strength you already have than by fixing a weakness, knowing the following information helped me with my decision.  While my day job is a profitable business, it just gave me a raise in July for the year and so is not likely to give me another one and it is not currently allowing any overtime.  Therefore, this opportunity is maxed out.  If I find an opportunity that reaps more revenue than this avenue in my cost-benefit analysis, I may scrap this job altogether.  The other businesses are either not profitable or are sole proprietor shops where the owner wields much influence.  The time it would take to both motivate the owner and get decisions made is longer than the time I have allotted for my goal (if ever).

After striking those choices, I could then analyze what was left over much easier.  This is the same technique used in the TLC show, Clean Sweep, where the first step in the organizational process is figuring out what you don’t need.  In Clean Sweep, the first step was dividing everything in their house into two piles: trash or keep.  This was the first sort.  The next sort moved everything from the keep pile onto a keep pile or a sell pile.  Only the things left in the keep pile went back into the house.  Even if items did not sell, if it went to the sell pile, it didn’t come back in the house.  Troubleshooting can work the same way.  Let’s say you are troubleshooting a broken computer.  One “pile” would be hardware problems, the other “pile” would be software problems.  Once you decide the problem is hardware and not software related, you then do a fine sort to find out whether the problem is with the hard drive or RAM (memory), for example.  In this case, the following choices remain, which must be analyzed using the fine sort method:

1. Watershawl, Inc. – business consulting, computer (technology) consulting, Internet marketing, graphic design, web development, web design, hosting, SEO, and online advertising.
2. Nook Share – a website about Nook covers.

I created two units of criteria in order to decide which pile the above revenue streams would be placed in.  Remembering the goal to make $8,000 to $10,000 in 2 to 4 weeks, I made the following rules: 1) it must be currently making revenue and 2) it must have the potential to make more revenue than it is currently making.  Again, we strike those activities which don’t meet the criteria.  Watershawl, Inc. and Nook Share both failed the first criteria and Erich Stauffer doesn’t have enough global search traffic in order to make more revenue than it is already making so that left Watershawl, DVD Conversion, Turn Film, and Query String Parameters.  The next criteria is time.  What is the sales cycle on revenue? Will the money be able to come within the next 2-4 weeks? Watershawl’s sale cycle is on average, 2 months, whereas DVD Conversion, Turn Film, and Query String Parameters are all Internet marketing businesses, which rely on affiliate marketing or pay-per-click advertising for revenue.  As soon as ad account levels reach certain levels ($100 on average) they pay out within 2 weeks.  I had just exited the business consulting, computer repair, and web design business for the Internet marketing business.

Identifying Strengths and Streams

I realize that since you are not in the same situation as me that the above-mentioned example may not be of good use so I wanted to explain to you how you can brainstorm to find your “strengths and streams.” “Strengths” are the opposite of weaknesses.  Weaknesses make you feel weak, whereas strengths make you feel strong.  “Streams” refers to revenue streams, which is any and all the ways in which you can or have made money in the past.  Brainstorming is the act of recording as many different ideas as possible in a short time without criticizing them as you go.  Save the criticizing (analysis) for after the brainstorming session.  Sometimes bad ideas can help you think of good ideas, so write down any idea that comes to you during this time.  Ready? Here we go. Answer the following questions in order to help you identify your “strengths and streams”:

What makes you feel strong? What makes you feel weak?

What activities are you not just good at, but also feel good doing?

What revenue streams do you have, no matter how large or small?

What are some ways you have made money in the past, which you no longer do?

What are some areas or ideas of things you have thought of doing, but for one reason or another never got around to doing?

Have you noticed any changes in technology lately that would make something easier for someone to do something?

Have you noticed a change in the demographics around where you live that might open a possibility for a new product or service?

Have you noticed any “cuckoos in the nest” where something that wasn’t supposed to happen did, or something was an unexpected success?

Have you noticed any examples of something that was supposed to succeed, but didn’t? What could you do to adapt to this new reality?

When I was young I used to collect aluminum cans to recycle for money.  As I got older I collected antiques to resell.  Later on I bought books to resell online or through local book dealers.  These were all retail activities which involved both labor and a product.  Eventually I started trading labor for revenue, which is called service.  I began doing computer repair and web design.  Eventually people began paying me for my advice and I became a business analyst.  Internet marketing is a mix of product and service because you are using your labor to help sell a product that you yourself do not deliver.  The service is in the promotion, marketing, and advertising of the product.  Anyone can do this using the free tools like the Thirty Day Challenge and other websites like Managing Actions which teach you how to be more effective by first changing how you think, in order to change how you act.

Limiting Factors

In order to be successful, you’ll need to overcome obstacles.  The first obstacle you’ll face is your own limiting thoughts so you’ll need to know how to deal with those right away.  An example of a negative thought is, “I can’t raise $8,000 to $10,000 in 2 to 4 weeks.  That’s impossible.” The first step is to realize that you are having a limiting thought, acknowledge it, then let it go.  Just because your brain creates a thought, doesn’t make it true.  Learn to manage your thoughts in order to manage your actions.

The second factor is the people you associate with.  In the same way that you have a greater chance of smoking if you live or hang around smokers or that you have a greater chance of gaining weight if the person or people you live with or work around are already overweight, if the people you hang around or not successful, are not following their dreams, or do not have multiple streams of income, then they are a limiting factor.  If you want to change, then you’ll need to spend less time with these people.

Next Steps

Every meeting should have two things: minutes and action items.  We have just had a meeting here.  This article is our minutes.  The action items are as follows:

Erich: use all available tools and resources to build and promote the identified websites in order to profit from Internet Marketing.

You: take some time to define the problems you are having, where you want to go, and what you want to accomplish, this will become your goal.

Erich: measure the success or failure of the Internet Marketing campaign, determined by the metric, revenue per man-hour.

You: brainstorm to identify your “strengths and streams” – find what makes you strong and what makes you weak, then write down all forms of income past and present.

Erich: update the personal finance measurements with increased net worth, revenue, profit, and savings from the Internet Marketing campaign.

You: manage your thoughts in order to better manage your actions. Notice when you are having a limiting thought, acknowledge it, then let it go.

Summary

This is not a get rich quick scheme.  This is about how to set a goal, make a plan, and execute (ready, aim, fire).  There is no “thing” that can make you rich, if that is your goal.  There is only you.  Mitch Hedberg said it best when he joked, “I bought a jump rope — but man, that thing’s just a rope. You have to do the jump part yourself.” [Thanks, Johnny] No blog, no self-help book, and no business can help you succeed more than a determination and drive within yourself.  If that is missing, everything else is just a rope.

1. Ultra-Local Marketing – direct communication between business owners and their local markets allows for business large and small to add a personal touch and an heir of transparency to give them a human edge in an increasingly no-touch technology world awash with noise.
2. Networking Old-World Advertising – the still-successful outdoor advertising and television commercials are now being used in conjunction with Twitter to give businesses more ROI and feedback on ad placements and their effectiveness. Even without tie-ins, searches for responses on Twitter can sometimes be just as revealing.
3. Uprooting Wall Street – think of the “Mad Money Effect” on steroids.  When people start talking about a stock and that it should be bought, it gets bought, and conversely, talk about selling leads to selling.  This is a kind of self-fulfilling prophecy, but nevertheless is an effect of Twitter on business stocks.
4. Making Blogs Relevant – blogs entered the scene in a huge way a few years back, but have since become mainstream and a bit of a victim of their own success.  Because of the ease of making blogs, their overall saturation is high and readership has suffered.  Enter Twitter: hyper-focused followings with links to blog posts of interests have made blogs more powerful than ever before.  Call it the SEO effect or not – Twitter is shaping how blogs are viewed as a resource around the world.
5. New Ways to Gather Data – never before has there been a literal tap into the stream of consciousness as there is on Twitter.  A quick search on Twitter’s real-time search engine at http://search.twitter.com reveals whatever anyone was last thinking.  Businesses have an amazingly powerful research tool like never before.
6. Helps TV, Radio, and Print Interact – when you see CNN co-anchoring Twitter side-by-side with the host of the show, you know Twitter has hit mainstream.  Twitter allows live television shows,  radio stations, and magazines get feedback on what they are doing, know what people think, and how they feel.
7. Channeling Micropayments – Twitpay and services like it facilitate small loans or payments to companies or between individuals  and will extend the reach of operations like eBay’s (EBAY) PayPal. eBay, Amazon (AMZN) and other e-commerce companies will get a financial benefit from real-time micropayments.
8. Changing Telecommunications – Telecom companies have chosen to manage user behavior by forcing customers to transfer voice, video and data on platforms that they can track. Twitter will force telecoms into a position similar to the one cable companies find themselves in.
9. Government Interaction – Large government agencies will quickly realize that Twitter may be one of the single best ways to communicate with the public and may even mandate that Twitter participate in some programs to distribute emergency notices to citizens quickly like with the Emergency Broadcast System that was used to reach the public over radio and TV starting in 1963.
10. Enhancing Charity – The Internet and the major products set up to use it are changing at a remarkable speed, permanently altering the way we live. Twitter could have as large a role in this transformation as Google and Facebook have had in the past decade.

I’m going to use Twitter as a marketing tool. I’m going to search for “wish there was a way to” “i would pay for” “i want but” and see what I come up with for possible products or services for a business.

“wish there was a way to”

twitter feature: stop following people for certain parts of the day
wish there was a way to send one casting to all my model friends
wish there was a way to download the “Dont stop believin” version from Glee!
wish there was a way to connect my Flickr with my Twitter
wish there was a way to pump gas without getting out of the car
Wish there was a way to send you some of the heat here
wish there was a way to “detect” the tweets of people near you.
I like the Picnik editor on flickr, just wish there was a way to do a whole set at once
Wish there was a way to convince people that we just need to keep offices at a normal temp when it’s hot. Not at absolute zero
wish there was a way to mute the commentators without the background noise
wish there was a way to create ‘groups’ of people to follow on twitter
wish there was a way to order Showtime and HBO and nothing else.
wish there was a way to really be as indestructable as i felt last week
wish there was a way to sleep longer.
wish there was a way to transfer a custom Google map you created (pins and all) to the iPhone Google map app
WISH there was a way to permanently hide any news feed info relating to those “What kind of blah blah are you” quizzes on facebook.
wish there was a way to download iTunes Pass content onto the iPhone.
Wish there was a way to remote into a computer to enable vnc remote management
wish there was a way to opt out of getting messages from some people in facebook. Seems like whey need a spam filter.
wish there was a way to convert guitar tabs to ukulele tabs!
wish there was a way to transport my Pandora stations to my car. Bump “the networks” lol
wish there was a way to turn device updates off except for @ replies
Wish there was a way to make that txt face with a fat lip
wish there was a way to post PDFs in #Facebook messages…
wish there was a way to store up my morning energy and use it when Jude has his nap in the afternoon. So tired and so much to do.

“i would pay for”

I would pay for the NYT and did.
@JetBlue, I would pay for WiFi! (As long as you also have outlets.)
I would LOVE for a man to do that for me! I would pay for it lol Romance is dead in these dudes eyes because no many women are
I would pay for some of them to come home and do nothing. Just to get them out of office
#ubertwitter is best bb app I’ve used twitberry bbtweet yatca and tinytweet. I would pay for uber and will when beta is over
i think i’m ready to start paying something for #twitter not alot, yet, but who wants to spend for fun? I would pay for technical support
I would pay for an audio copy of the conversation that accompanied these actions. =D http://tise.io/7a60c2
I would pay for 8 hours of uninterrupted snoozy times.
@hodgman I wouldn’t pay for a song, but I would pay for you to record the message on my answering machine.
@TweetDeck I so wish my settings/groups were Global and updated the app no matter where I signed in… I would pay for that
might let the s15 go the insurance/repayments on it is about the same as what I would pay for a wrx with a secured loan
I would pay for the data plan.
is there anyway to win backstage passes? cos i really wanna see enrique so bad, or i would pay for them?
You know, I just had that same thought! I would PAY for a better Twitter to stamp out spam & crap! lol!
I would pay for my college
I love my xm! Never thought I would pay for radio but boy do I love it!:)
lol true but i don’t know if I would pay for twitter though…
it’s days like this i would pay for someone to bath me.
I would pay for content online. Frankly, I’m surprised that it has been “free” this long! Make it easy and really QUICK to pay.
It is free, and really good, so can’t complain. They have to monetize somehow. I would pay for no ads TwitterFon.
i would pay for a megavideo subscription if i wasn’t 10000% sure that they’d spam my inbox & usps mailbox with crap.
tanning rocks..i would pay for it but i like the sun..cheaper ahah
I take it back – TwittedFon app update starts with last 20 tweets and stores everything from there. Ads still blow. I would pay for pro ver

“I want but”

Working on my book list…so many I want but how many do I need?
Buy all the T-Shirt Hell shirts I want but can afford and then spend the rest on a strippers and booze.
I know what i want but dont know how to get it.
Thinking about things I want but cant have… Because life is just that way?
Dont know what i want but i know its not you. I know in my heart its not.     <<<—-OUCH!

How to judge the return on investments you’ve made in your life.

Using the base point of a high school graduate or GED equivalent aged 17-18 years old, what life investments show the greatest ROI (return on investment).  Is it better to start working for another company right away to build experience and move up the corporate ladder or is it better to sit it out four years in college, then start at the bottom working for another company?  Is it better to attend a trade school or 2-year college then enter the workforce as a type of hybrid?  Is working for someone else better than starting out on your own in the beginning, middle, or late in your working life?  How does being married affect your success in life?  Does it matter if your spouse supports you or if you have an unhappy marriage?  How do children affect success?

There are many metrics and many examples of each scenario.  It is hard to know how you want to end up when you are 17-18 years old, but if you could do it all over again – if you could share your experiences with someone just starting out – or just laid off and starting over – what advice would you give them?

My Path

After high school I attended college for 5 years during which time I got married and had children.  I graduated with a bachelors degree and a mountain of debt, going to school and working full time as a bank clerk during and after college.  It wasn’t until I went back to school to get Microsoft certifications that I could get beyond the clerk job.  The 6-month certification training nearly doubled my 5 year investment in college tuition and board.  I watched as peers who didn’t go to college at all were at or above my clerk level and were without the college loan debt.  The only thing that allowed me to move up was going beyond the BS degree.  Because of that experience I tend to recommend going straight into a technical training field or apprenticeship straight out of high shool whether you plan on working for someone else or yourself.  Become an expert in your field and above all, follow your passions, but listen to those around you.  If you keep hearing the same advice from different people, its probably right and should be considered.

Success can be measured many different ways.  While children may take your time and energy, they also give you motivation and fulfil your innate desire to leave a legacy behind.  The joy and agony that comes from raising children is uncomparable to any other duty in life.  Have you ever heard that behind every good man is a great woman?  This is usually true if the man and wife are supportive and loving of each other.  A constant bickering under one roof can only restrain what could otherwise be successful endeavors.  How can we measure success?  How do you measure success?