A HUSTLER WITH ECONOMICS…

A few weeks ago a friend of mine from work called me “a hustler with economics”, and I have been thinking about it ever since.

Does it have to do with smart hustling? Where now one is required to be street smart and understand the market and how best to exploit opportunities in it. For some reason, people respect a man in a suit more than they do one in shorts and flops, to them, he looks trustworthy; so a street-smart entrepreneur would consider this and ensure his sales personnel is forever presentable. Being “street smart” is not just about your drive to knock on people’s doors and selling your creation in the sun day-in-day-out; its more about staying up to date with new developments and upcoming opportunities…but does being “a hustler with economics” have to do with looks and representation of a good quality product and/or knowing things? What really is a hustler with economics? And what is this economics anyway?

School has taught us laws and principles of economics; but school makes life seem so formal and so easy; that’s why I have always believed I will be a millionaire by the age 25, but didn’t have a plan of how to get there; school sold me dreams and I bought them, Cash on delivery.

I want this blog piece to briefly discuss economics from a hustler’s point of view:

1. You cannot sell everything: a person packing her suitcase for traveling by flight, assuming the airline only allows one suitcase of a maximum size, has to select only the necessary stuff for the trip and leave unnecessary “spare change of clothes”. similarly, a “hustler with economics” considers his skills and only focuses on products he can sell faster; this is what the books call TRADE-OFFS. There is need to decide whether to invest in a particular choice, such as one more risky but with a greater potential return…or generally safer, but lower potential returns. You cannot sell everything.
2. My 3 types of models: short term, a cash cow which usually requires less capital and as expected gives out less income. Second, medium term, slightly more risky and requires a lot more investment. Lastly, long term, this requires the most capital (e.g. property investments, bonds, etc). The truth is, all these models cannot be used simultaneously (unless you are well established-financially…I’m not there yet), I’ve had to ask myself important questions: Is one industry doing better than another? What is the economic future of one project over the other? what do I stand to gain by forgoing other options for now? and at the end of it all, a decision to lose others and focus on what my resources & capabilities allow has to be made; this is where we now talk of opportunity cost (Ps, I’m trying to brag without making it too obvious, but I hope my breakdown makes sense).
3. Supply VS Demand: this is by far one the most important aspects in being a hustler with economics; because for every business you engage in, there has to be a lot of potential buyers, and fewer sellers; i.e. demand has to exceed supply; that way prices are not regulated by a saturated market, but by “what makes sense”. With the status quo, for every 100 buyers of hotdogs, there are 10 sellers, therefore price is forced to remain competitive (extremely low)…this is not sustainable; I am waiting for the time when one supplier will decide to introduce burgers and bagels for slightly higher price than that of hotdogs. This is “hustling with economics”.
4. People respond to incentives: people are motivated to buy, be a creative hustler who prompts people to choose you over other suppliers; e.g. introduce discounts and loyalty packages; e.g. I have been using the same Barber for the past 6 years, it would be nice to get a free cut at least once in 2 months; that way I would bring even more customers.
5. The GOOD & The GOOD: ever heard of killing two birds with one stone? in business, the best way to achieve economies of scale is to sell complimenting products simultaneously. e.g. don’t you ever wish food caters could also provide décor? that way you buy both from the same supplier; and most importantly, that supplier will invest the same amount of marketing effort on more than 1 service…hustling with economics!

 

I would really love to discuss economics further…but, we are still building foundations and a deeper understanding of being a GRINDPRENEUR; I hope this is enough to help you hustle differently going forwards (HUSTLE WITH ECONOMICS).

“People were poor not because they were stupid or lazy. They worked all day long, doing complex physical tasks. They were poor because the understanding of Supply VS Demand… Pricing VS Market needs… Basic VS Luxury…is but a false hope.”

STAY GRINDING…