It was late at night when I read this alarming news…
I was at my daughter’s musical play rehearsal. She’s playing in Sponge Bob the Musical.
I heard enough of Squidward’s “Another day another migraine” line so I decided to step out and check my phone…
And I read this:
“Carnivore Snax has been stormed by State of Ohio. Meat snack company is shut down!”
Turns out some big meat packaging company who’s been in bed with state employees didn’t like this new “Carnivore Snax” and lured his minions at the State office, to declare war on what they do (simple dried salted meat)… and make it… “illegal”.
Now, I don’t know the full scoop nor how true that last statement is.
And I don’t really care about the meat — I’m a vegetarian.
But it’s another story of government making it nearly impossible for a small business to thrive.
(It’s a good reminder of me of why I moved to Idaho)
Regardless if this affects you or not… read between the lines because it’s a starch reminder of having backup plans for back up plans.
I’m reminded of Charlie Mungers “Inversion Thinking” (which I first heard from Alex Hormozi):
Think about all the ways your business can fail. Write it down. And now write down the solution to that.
And I would take a step further and also consider all the ways outside forces (that you have no control over — like government) can destroy your business.
And then start implementing plans to safeguard it.
Sounds a little “too much”?
Maybe.
But there was one day when Carnivore Snax was riding high, and growing exponentially, using a simple drying salting process that was already approved by the state…
And then the state decided to change its mind.
And now they’re shut down for now. Assets seized by the government. They no longer can manufacture in Ohio.
I remember my old pal Andy Teasley. He understood this for a long time. So his cash flow assets only come from rentals, parks, etc that are close enough for him to ride his bike to collect payment.
So what are the breaking points in your business?
It can be as simple as having only one person who knows anything and everything about the business, while everyone else is sucking their thumb waiting for instructions.
Start working on those breaking points, one at a time.
Paul do Campo