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.

Not all avoidance is bad. Sometimes it can be good so long as the timing and time spent allows us to evaluate our circumstances, brainstorm, and/or review technological changes like we wrote about in Determining Your Purpose in Life or Process.

Sometimes creative avoidances can not only be justified, but altogether useful.  For example, avoiding an assignment by taking a walk can be good for your health. And doing chores that need done anyway before doing the the thing in which you are trying to avoid can be good as long as the chores actually needed to get done and you don’t spend your entire allotted time doing them.

Usually, creative avoidance involves choosing one activity over another that might be deemed worthy by an outside party, such as joining the military, but inside you know that the real reason you joined was because you had just broken up with someone and you wanted to get away.  You will still benefit from the military, regardless of the motive.

But, sometimes creative avoidance involves a guilty pleasure in the act of choosing. For example, Jake goes out dancing to avoid doing his homework, and then is unable to complete his homework the next day because he is hungover. We might question if that avoidance choice was creative or dysfunctional, in other words, what was the intent or motive?

How to Know the Difference Between Creative and Dysfunctional Avoidance

To help determine if you or someone else is using avoidance creatively or dysfunctionally, ask the following questions:

1. Is the activity freeing or binding? Does this activity allow you to avoid something you don’t like?

2. Is the activity beneficial or empowering? Does this activity produce anything that will help you or anyone else?

Answering the question restates the avoidance, which helps us be aware of what motivates our actions.  In this way we can better manage our actions. An en example of a restatement is:

I’m choosing to do this instead of that right now, so that I can return to that when I’m ready with clarity, courage, and a fresh set of eyes.

It is possible to change our thought process in order to change our actions. We can stop dysfunctional avoidance completely if we pay attention to what is real and less of our intuition. If it helps you, start a journal recording when you begin to think of something to do instead of what you’re “supposed” to be doing – and your motivations for doing so or reasons why you didn’t give in.

Creative avoidance can be an adventure, but it can also cost you valuable time and energy. Learning to manage our thoughts and actions helps us see the patterns we can develop in our lives, which gives us the tools and ability to change.

Brainstorming

Occasionally, you should take time out to stop and evaluate why you are doing the things that you are doing.  Slow down to think if what you’re doing is the best idea or not. Brainstorm with pen and paper (yes, actually grab a pad of paper and a pencil).  The best ideas come by brainstorming, which provides an opportunity to evaluate your productivity, your methodology, and your overall goal. Brainstorming brings diversity of knowledge and perspectives effective for a more forward looking career. Brainstorming is a great activity, but it’s also good to talk to someone about what you are doing, in order to help establish the purpose.

Mentor Review

Take someone you admire out to lunch and pick their brain.  Tell them about what you are doing to get feedback from them.  Write down their responses, whether you believe them or not, and thank them for their time.  Make sure you pay for their meal.  Successful people like to share what they know (that’s why I have this blog) so don’t be afraid to ask them.

Technology Review

Also, keep yourself up on new technology and continue educating yourself to keep yourself alive and fresh.  It’s easy to become stale no matter what business you’re in.  Try to spend at least 2-3 hours a week just researching and finding new ideas.  It’s hard to break away from the normal routine but brainstorming with new ideas is refreshing and can renew enthusiasm.  This is part of innovation and entrepreneurship, which looks for innovations in changes in technology, among other things.  It could be that the way you have been doing things is no longer relevant at worst or at the very least, no longer efficient.  Ask yourself the following four questions:

1. Is there any new technology I could be using? — Technology may have become more efficient since you first developed your original time-saving method. Relying on an old template could be costing you time and money.
2. Have I learned any new ideas lately that I need to apply here? — You may have acquired some new skills or read about some new ideas that will handle your project even better than the time-saving technique that you are using now.
3. Are there new requirements that mean that I need to review this process? — The client may have updated his or her requirements for their projects. Using your old template or time-saving tools may not meet the client’s newest requirements.
4. Are there any other new tools I could be using? — There may be new tools or resources available to do the work that weren’t originally available when you developed your template.

Personal Brainstorming

At least once a month I block off an hour to go into a dark room and just wait for ideas to come.  I don’t anticipate thinking about any one thing, but there is something about the pitch black silence that allows great ideas to surface.  I’ve had many revelations, not just about business or problem solving, but figuring out why I thought certain ways about certain things.  It’s a chance to re-evaluate all aspects of your life and help you determine your purpose in life or in process.

People at the top of every profession share one quality — they get things done. This ability supercedes intelligence, talent, and connections in determining the size of your salary and the speed of your advancement.

Despite the simplicity of this concept there is a perpetual shortage of people who excel at getting results. The action habit — the habit of putting ideas into action now — is essential to getting things done. Here are 7 ways you can grow the action habit:

1. Don’t wait until conditions are perfect – If you’re waiting to start until conditions are perfect, you probably never will. There will always be something that isn’t quite right. Either the timing is off, the market is down, or there’s too much competition. In the real world there is no perfect time to start. You have to take action and deal with problems as they arise. The best time to start was last year. The second best time is right now.

2. Be a doer - Practice doing things rather than thinking about them. Do you want to start exercising? Do you have a great idea to pitch your boss? Do it today. The longer an idea sits in your head without being acted on, the weaker it becomes. After a few days the details gets hazy. After a week it’s forgotten completely. By becoming a doer you’ll get more done and stimulate new ideas in the process.

3. Remember that ideas alone don’t bring success – Ideas are important, but they’re only valuable after they’ve been implemented. One average idea that’s been put into action is more valuable than a dozen brilliant ideas that you’re saving for “some other day” or the “right opportunity”. If you have an idea the you really believe in, do something about it. Unless you take action it will never go anywhere.

4. Use action to cure fear – Have you ever noticed that the most difficult part of public speaking is waiting for your turn to speak? Even professional speakers and actors experience pre-performance anxiety. Once they get started the fear disappears. Action is the best cure for fear. The most difficult time to take action is the very first time. After the ball is rolling, you’ll build confidence and things will keep getting easier. Kill fear by taking action and build on that confidence.

5. Start your creative engine mechanically – One of the biggest misconceptions about creative work is that it can only be done when inspiration strikes. If you wait for inspiration to slap you in the face, your work sessions will be few and far between. Instead of waiting, start your creative motor mechanically. If you need to write something, force yourself to sit down and write. Put pen to paper. Brainstorm. Doodle. By moving your hands you’ll stimulate the flow of ideas and inspire yourself.

6. Think in terms of now - Focus on what you can do in the present moment. Don’t worry about what you should have done last week or what you might be able to do tomorrow. The only time you can affect is the present. If you speculate too much about the past or the future you won’t get anything done. Tomorrow or next week frequently turns into never. As Ben Franklin said, “Never put off until tomorrow what you can do today.”

7. Get down to business immediately – It’s common practice for people to socialize and make small talk at the beginning of meetings. The same is true for individual workers. How often do you check email or RSS feeds before doing any real work? These distractions will cost you serious time if you don’t bypass them and get down to business immediately. By becoming someone who gets to the point you’ll be more productive and people will look to you as a leader.

It takes courage to take action without instructions from the person in charge. Perhaps that’s why initiative is a rare quality that’s coveted by managers and executives everywhere. Seize the initiative. Be a crusader. When you have a good idea, start implementing it without being told. Once people see you’re serious about getting things done they’ll want to join in. The people at the top don’t have anyone telling them what to do. If you want to join them, you should get used to acting independently.