New Income Streams, Auckland Marketing

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–I don’t think I mentioned but also, I am getting back into the game with a new income source. I’m almost set up. The difference now beside being a whole lot smarter, is that I don’t have dickheads hanging around.

It’s the same with music really, the fact that I have done so much in this area only to fail, sets me up with a lot of experience as my equity in this venture.

Risks need to be calculated though, and it’s hard to calculate risks when you’re surrounded by idiots, not to mention idiots are a risk in themselves.

The question is how far to go with it. I mean there’s being prudent – limiting your exposure – but then there’s not capitalizing on opportunity.

There’s also diminishing returns, thats how I see cd and dvd duplication which is my main money.

The money is great – all sense would suggest that just growing my cd dvd business incrementally could easily match my other ideas, but there’s only so much effort that can be put in before it returns less than is worthwhile pursuing. There is a number of CD’s and DVD’s people want from me, I can’t make my people want more discs if they won’t pay for them.

It could be twice as much as I’m doing now, but it is a number and because I don’t know that number I’ll never be sure how much more the market can take without significant effort.

There’s only so much you can make, but because it’s a service, not a product, it works differently. Services can be applied based on demand. Product can be stored until demand is met.

Huge difference. This is why diminishing returns are less of an issue.

So as long as you’re diligent, you can still maintain an even projection of how you can do.

If you can maximise production, what are the risks? Maximise production, minmise risk.

There will become a critical point where I can severely minimise risk at a cost.

At the moment I might peak at $700 - $900 p/week but the turnover could be high risk unless I put in a replacement for myself.

I could have someone else work in the high risk areas and work on something more sustainable while still creating profit as long as there was no unexpected situations - however, it’s something I’d have to be prepared for.

This doesn’t really minimise risk, it just transfers it. But I think it would allow us to go up as high as $1000 profit per week, just because spreading the risk out makes it more acceptable to push a little further in our projections.

What is the furtherest point of accepted risk? $1500. But we don’t have to go there. $1000 is fine. It’s brilliant. So we work down in terms of risk and operations margins from there.