There are two ways to make money in business:<\/p>\n
The Buffet:<\/b> Offer everything to everyone. (Low margin, high volume, commodity war).<\/p>\n<\/li>\n The Omakase:<\/b> Offer one thing to a select few. (High margin, low volume, monopoly).<\/p>\n<\/li>\n<\/ol>\n Most founders default to the Buffet because they have FOMO<\/b>. “If I only sell sandwiches, what about the people who want pizza?”<\/i> This is how you build a mediocre business. When you try to be everything, you become nothing.<\/p>\n The Law of Dilution<\/b> Every new product you add dilutes the quality of your existing products.<\/p>\n If you have 1 unit of attention and 1 product, quality = 100%.<\/p>\n<\/li>\n If you have 1 unit of attention and 2 products, quality = 50%.<\/p>\n<\/li>\n If you have 1 unit of attention and 10 products, quality = 10%. (Mediocrity).<\/p>\n<\/li>\n<\/ul>\n The “Great Sandwich” Heuristic<\/b> The original post used the metaphor of a sandwich shop.<\/p>\n Shop A:<\/b> Sells Sandwiches, Pizza, Tacos, and Sushi. (The food is edible but forgettable).<\/p>\n<\/li>\n Shop B:<\/b> Sells only Grilled Cheese. But they bake the bread, age the cheese, and serve it with a specific tomato soup. People will drive 2 hours for Shop B. Nobody drives for Shop A.<\/p>\n<\/li>\n<\/ul>\n The Protocol: Kill the Menu<\/b> If you are struggling to grow, do not add. Subtract.<\/b><\/p>\n Audit the Portfolio:<\/b> List everything you sell (Services, SKUs, Features).<\/p>\n<\/li>\n Identify the Alpha:<\/b> Which one<\/i> thing brings 80% of the joy\/profit?<\/p>\n<\/li>\n The Guillotine:<\/b> Stop selling the other 9 things.<\/p>\n “But we will lose revenue!”<\/p>\n<\/li>\n Yes, initially. But you will gain Identity<\/b>.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n The Specialist’s Premium<\/b> The General Doctor (GP) charges $100\/visit. The Brain Surgeon (Specialist) charges $10,000\/surgery. The Surgeon serves fewer sandwiches, but they are “Great Sandwiches.”<\/p>\n #DhandheKaFunda:<\/b> Don’t be a Swiss Army Knife. Be a Scalpel. A Swiss Army Knife is bad at everything. A Scalpel saves lives.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":" There are two ways to make money in business: The Buffet: Offer everything to everyone. (Low margin, high volume, commodity war). The Omakase: Offer one thing to a select few. (High margin, low volume, monopoly). Most founders default to the Buffet because they have FOMO. “If I only sell sandwiches, what about the people who […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[75],"tags":[148,105],"class_list":["post-3616","post","type-post","status-publish","format-standard","hentry","category-blueprint","tag-business","tag-strategy"],"acf":[],"_links":{"self":[{"href":"https:\/\/61.notredamme.com\/utpalmv-v2\/wp-json\/wp\/v2\/posts\/3616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/61.notredamme.com\/utpalmv-v2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/61.notredamme.com\/utpalmv-v2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/61.notredamme.com\/utpalmv-v2\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/61.notredamme.com\/utpalmv-v2\/wp-json\/wp\/v2\/comments?post=3616"}],"version-history":[{"count":0,"href":"https:\/\/61.notredamme.com\/utpalmv-v2\/wp-json\/wp\/v2\/posts\/3616\/revisions"}],"wp:attachment":[{"href":"https:\/\/61.notredamme.com\/utpalmv-v2\/wp-json\/wp\/v2\/media?parent=3616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/61.notredamme.com\/utpalmv-v2\/wp-json\/wp\/v2\/categories?post=3616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/61.notredamme.com\/utpalmv-v2\/wp-json\/wp\/v2\/tags?post=3616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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