There are two ways to make money in business:
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The Buffet: Offer everything to everyone. (Low margin, high volume, commodity war).
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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 want pizza?” This is how you build a mediocre business. When you try to be everything, you become nothing.
The Law of Dilution Every new product you add dilutes the quality of your existing products.
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If you have 1 unit of attention and 1 product, quality = 100%.
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If you have 1 unit of attention and 2 products, quality = 50%.
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If you have 1 unit of attention and 10 products, quality = 10%. (Mediocrity).
The “Great Sandwich” Heuristic The original post used the metaphor of a sandwich shop.
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Shop A: Sells Sandwiches, Pizza, Tacos, and Sushi. (The food is edible but forgettable).
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Shop 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.
The Protocol: Kill the Menu If you are struggling to grow, do not add. Subtract.
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Audit the Portfolio: List everything you sell (Services, SKUs, Features).
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Identify the Alpha: Which one thing brings 80% of the joy/profit?
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The Guillotine: Stop selling the other 9 things.
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“But we will lose revenue!”
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Yes, initially. But you will gain Identity.
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The Specialist’s Premium 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.”
#DhandheKaFunda: Don’t be a Swiss Army Knife. Be a Scalpel. A Swiss Army Knife is bad at everything. A Scalpel saves lives.