As you may recall I play Magic. Today I am going to describe life and business as a Magic deck. Now stick with me while I draw this picture, there are certainly more connections than might appear at first glance.
In Magic there are different formats of building a deck or playing the game. The facet I am going to look at today is called Constructed, which oddly enough is that you build (or construct) a deck before playing. In Constructed you build a deck of a minimum of 60 cards and you generally can’t have more than 4 of any specific card. Sometimes it makes sense to have fewer copies if it isn’t something you want to draw early or is something that you can search out. But the cards that are integral to the operation of the deck you want as many as possible. If there are cards that have similar function but with different names you want to max them out too so that you can have more chances to draw that effect. The more copies of an effect you have in your deck the more opportunity you have to draw it, and if it is a requirement for the deck to be successful the higher chances to draw mean you will draw it early and that will also increase the consistency of the deck. I think consistency is probably the most important aspect of having duplicate cards. If your deck is not consistent, then you won’t be winning very many games. So that is all good you say, but what does that have to do with business?
Excellent question! Well to have a successful Magic deck there must be consistency in the deck. I think that is key to business as well. To have success in business your business must do things consistently. Not just anything, but the right things. However if you are doing something profitable, even if it is not the most efficient thing and you do it consistently your business will make money. Obviously if you are doing things to enhance the efficiency then the consistently will bring up the profits.
They key to consistency in Real Estate investing are things like making sure your lead funnel is full, making sure the marketing goes out, making sure the deals close when they are supposed to. The key players that you need for consistency are your acquisition manager, your title/closing attorney, your bird dogs and wholesalers, your contractors and make-ready team. These people make up your core team and combined with the consistent action are where the majority of the money is made in this business.
In Magic I mentioned earlier that you might have less than 4 of a card in your deck. These things are generally big effects that when they go off you typically win the game. So the multiple copies of cards are to build the foundation to get to this game ending effect, and typically you have a way to find it in your deck as one of the foundational items. You are going to have these one-offs in business as well. These will be your estate planner, your insurance agent, your 1031 specialist. When you need them you search them out and use them for the specific task at hand.
In Magic and in business you need to have the building blocks for consistent action, then find the special resources needed to accomplish a specific task. You also have to track what actions are working (as I have mentioned previously about weight as well) and then decide if another action in business or effect in Magic is more efficient then you need to not be scared to change the process or change the deck. Both in Marketing and in Magic testing is in the vernacular. Always test and decide what is most efficient for the task at hand. Let me know here or on twitter what you think of this comparison or other games that you think can be a corollary to business and investing.
Until next time,
Feel the pain and do it anyway.