We like to call the big-fish opportunities “windfalls.” Unlike your wheelhouse, a windfall is that heavyweight business deal that flies through your doors at a moment’s notice. It’s an added bonus—a juicy profit you weren’t anticipating, but will welcome with open arms when it comes along.
An important distinction between your wheelhouse and a windfall is that the latter is an opportunity to make a sizable profit, but it can’t be relied upon to keep your business afloat. Why? Because by their nature, windfalls are unreliable—that is, they cannot be expected to appear consistently. Ironically though, windfalls are a direct result of your consistency. They materialize because you’ve been consistent with your wheelhouse and with performing the same, high leverage activities daily.
Here is what we mean: Our core business model at Hard Money Bankers is lending to real estate investors. Because we’re consistent with our business model and services, we are able to capitalize on more lucrative deals (i.e., windfalls) when they arise. Why? Because our hands and minds are free. Because our financial wheelhouse doesn’t require all of our attention, it gives us the financial confidence necessary to take risks.
The ability to take advantage of windfalls is directly linked to your wheelhouse. Remember, your financial foundation comes first. The trunk must be rooted in a strong foundation in order for you to branch out, take risks, and grow. It also needs to be largely self-sustaining. Keeping your wheelhouse on autopilot allows you to focus your energy on the big deals without having to worry about whether you’re going to make enough revenue by the end of the month to make payroll or keep the electricity on. This endows you with confidence and a strong sense of security so that your mind can be free to think outside the box and spot a potential windfall when it blows in your direction.
“How do I spot a windfall?” you may ask. First of all, don’t chase them. Ever. That’s a gross waste of time. The chase will go on endlessly. The best way to put yourself in the path of potential windfall opportunities is to cultivate your sphere of influence. If you work in real estate, for example, the more time you spend in that world—the more conferences, seminars, and networking events you attend, talking with the people who are conducting the deals you want to do—the greater the likelihood that a large real estate transaction will eventually present itself to you.
All that seizing a windfall truly requires is strategic networking and the ability to remain alert so you can capitalize on opportunities when they arise. As highlighted in previous chapters, this is why cultivating your intuition through trial and error is so vital. It allows you to spot the golden opportunities that are worth your efforts. Trust your instincts when it comes to windfalls, and be sure to run with them: the wind is known for its speed, but that’s okay because so are you—or you will be before long.
This article is an excerpt from the book “The Whiteboard: Go from Blank Canvas to a Productive, Leveraged, & Highly-Profitable Business” by Chris Haddon and Jason Balin. Please click here to see more.