How SPinvest is structured by copying what successful people do
Hello, SPIer's. Today we are going to look at why SPinvest is structured the way it is. I used to read books released by entrepreneurs and in them, they would explain their business models and how they scaled. I must have gone through 30-35 books of this genre, I've forgotten more than I remember at this point and im lazy to read them over, was 10-15 years back. I remember the best parts (i think) and SPinvest is sorta a cherry-picked best parts of different entrepreneurs models mashed together in my own way.
Build small projects
SPinvest could easily run its 4 tokens through the @spinvest account but that puts all the eggs in one basket. When Richard Branson launched his Virgin Brand, every different branch of Virgin for the 15-20 years was its own company and he never had more than 100 people employed to each company. So virgin music, virgin mobile, virgin wine, virgin travel, virgin whatever all set up as independent companies.
He said he did it this way because if one of his ventures never worked out and went bankrupt, it had no effect on any other company under the Virgin brand. He never explained this but this the way I remember it. You could 1 big ship with 20 products/services under 1 roof are you could have 20 smaller boats, each representing a different product/service. If your big ship hits rocks or bad weather, she sinks and your fooked. If you lose 2-3 smaller boats from 20, your business continues. There's are lots of other reasons why this is good that does not relate to us like employees rights, company requirements, taxes and other stuff.
For SPinvest, we launch each project to be its own, each token we have released has its own HIVE account and metamask wallet. Each project is its own project. If the SPI account gets hacked and our HIVE and Hive-engine wallet is wiped out, this does not affect EDS, LBI is CL token holders and it would not kill SPI, at most, it would wipe out 40% of the tokens value. If LBI or CL get hacked, there is no effect on any other project. The only one is EDS with SPI because SPI owns the profit HP from the EDS account. It's around 18-19k HIVE so like 5ish% of the fund.
Build small and start from scratch. It's easier to turn 1 cent into 2 cents compared with turning $100 into $200.
Dont box yourself yourself
There's a term called making "one way and two-way door decisions". Jeff Bezos quoted it a few years back in 2016. IN simple terms, a one-way door has no come back where a 2-way door lets come back are reverse whatever you do. As an example's using SPinvest. A 1 door decision was picking the @spinvest account name, the token name, ticker and hard capping. These can not be changed and require a lot of thought and consideration of available options. A 2-way decision is something like the SPI dividend percentage, launching a subsidiary to test the market, anyone remembers @spinvest-contests? are spinvest-neo? These are things that can change, a lot of people might think that the SPI's model to split HIVE earnings as 50% to tokens holders and 50% to be reinvested but the fact is, this can be changed with the holders of a token vote as part of the partnership agreement wrote up over 2 years ago and amended 2-3 times since. Many people would consider terms and conditions to be a 1 door decision but by allowing amendments based on token holder voting, we have the ability to change almost everything.
SPinvest is set up so we are not tied down are dependent to too many things. Most things launched from SPinvest will have a backup plan and exit plan if the project is a loss. Look at EDS as an example, it issued 20k tokens at 1 HIVE and over 6 months, its APY grew a few percent from 12-14%. It was looking dead so we switched it up and launched EDS miners and after 3 months the APY has doubled to over 24%. If miners had failed to work, I had 1 more trick and if that failed, it would have closed down and liquidated. Luckily it worked out.
For SPinvest, if possible there is always a backup and exit plan. Everything is planned out in the best way possible so separate projects do not conflict with each other. Every person connected to SPinvest including myself is replaceable. It would be a more difficult task to change over the @spinvest username to a new account. I said from day one, I dont plan to operate SPinvest forever. I'd like to sit back and collect dividends for a few years. Could someone do the job better than me? 100% someone could but at the minute you get what you get from me for free so there's the difference. SPinvest is worth $150-160k+, it could have been worth $500,000 under someone else. Maybe someday, we'll be better funded and able to hire someone/some people.
I often think what if me and Ray from Brofund had created a fund token together, him as the face and me as idea's, execution and fund management. How big would be that token be with his community and people skills and my accounting/planning and fund management discipline? We'd have a million-dollar fund is what we have. Possible merger? I've gone off subject. By the way, a merger with BROfund would be a 1 door decision as it changes the whole operation and models of both SPI and BRO. A split could take place but the result would not be the same as the reverse back to the original state. SRO token? it's not happening.
Anyways, there are tons more examples/strategies and ways to build, grow and scale an investment fund. I mostly read books from British entrepreneurs, some of them business-related, some of their autobiographies, all of them filled with lots of tips and tricks of how they and why they did what they did on each business to grow them as they climbed the ranks to multi-millionaire our billionaire status. For some reason, I have always remembered these things they did and thought it was really smart thinking. When you look at any of the 4 tokens under the SPinvest umbrella, you can see the model of the token came from SPinvest, normally the wording 100% backed is a giveaway. Anyway you see the SPinvest model, I see about 15-20 different things i learned and remembered from somewhere be it from books, forums, documentaries, youtube, blog articles are from talking with other people. These are where I get most of my idea's from, I cherry-pick what I like and discard what I dont.
A man with a plan is nothing without discipline. Back in the day, I used to do a lot of arbitrage betting running into figures a day and I even played poker for a living for 9-10 months. Lossing half your bankroll from 1 mistake of misjudgement are bad luck will soon teach you bankroll management and you dont learn that lesson, you'll repeatedly lose all your money. If you have a mortgage, food and a life to live, you better learn this lesson. It's not easy to not FOMO into things like POB are other HIVE projects catching that 100x profit but it's more profitable to not in most cases. You sacrifice the short term buzz from getting new investments that will probably lose you money for the satisfaction of sticking to your plan and having more money this time next year.
I hope you've enjoyed today's post, it's a little all over the place but I walked the dog halfway through. What sorts of epic tips and tricks have you heard of before are used yourself?
