When a business is struggling with multiple revenue streams, the best strategy is to simplify. By cutting underperforming or noisy channels, you can amplify your focus on the one or two profitable areas. This distillation creates the clarity needed to stabilize and eventually rebuild the business.
Leverage a principle from Peter Drucker: identify categorical decisions that eliminate entire classes of future choices. Instead of managing countless small decisions, make one sweeping rule (e.g., no new books, no public speaking for a year). This single choice removes thousands of subsequent decisions, creating massive mental space and clarity.
Spreading energy across too many projects results in mediocrity. McConaughey shut down two businesses to focus on three core priorities. He found the energy from the extinguished "campfires" fueled the remaining three, turning them into "bonfires" with more purpose, clarity, and impact.
Intentionally scaling back your primary business and revenue targets creates the space necessary for creative exploration. This can lead to discovering more scalable and profitable opportunities that ultimately generate far greater success than the original, high-effort path.
Before a major business pivot, first identify what can be let go or scaled back. This creates the necessary space and resources for the new direction, preventing overwhelm and ensuring the pivot is an extension of identity, not just another added task on your plate.
Escape the trap of chasing top-line revenue. Instead, make contribution margin (revenue minus COGS, ad spend, and discounts) your primary success metric. This provides a truer picture of business health and aligns the entire organization around profitable, sustainable growth rather than vanity metrics.
Achieve stable, linear growth by combining multiple business lines that have opposing cyclical natures. Instead of cutting a volatile but profitable unit, add a counterbalancing one. This "Fourier transform" approach smooths out revenue and creates a resilient, all-weather business.
Audit your revenue streams to distinguish 'busy revenue' (high-effort, soul-sucking work) from 'aligned revenue' (energizing, sustainable systems). Focusing on growing aligned revenue, even if it means restructuring or eliminating profitable but draining streams, is key to a sustainable business model.
Counterintuitively, focusing on a single, powerful SKU can be more effective for initial growth than launching a full product line. It simplifies your message, makes you attractive to distributors who value efficiency, and builds a strong customer base before you introduce new offerings.
Eliminating a popular and profitable product line can be a wise long-term strategy. If a product, even a bestseller, creates brand confusion or pulls focus from your core vision, cutting it can strengthen your primary brand's identity and lead to more dedicated growth.
Most entrepreneurs are trapped doing things they believe they *should* do, leading to burnout with minimal results. The Pareto Principle suggests 80% of your results come from 20% of your efforts. By auditing your activities to find that 20%, you can eliminate busywork and focus only on what truly moves the needle.