Thursday, November 24, 2022

Capacity, Focus, and a Container

Three things matter. The first is having capacity or capital. The second is having problems to focus on. And the third is having a container. 

Capital is fungible. It can change shape and form and be used for a variety of things. Capital can go anywhere. You can sell shares in a business. On one day, it is working at Google, you sell it and the next day it is working at Colgate. Unlike people, it does not matter to money where it is invested. 

Even though we are all connected, and all a part of the universe, we need shape and form to understand. The illusion of separation helps us engage. We think through stories. We think through contrast, light, dark, and division. We form words. Form manifests as a tool for action. Manifesting is not separation. Manifesting is the container in which we can hold our activity. Hold our problem solving. Make decisions. We call that mental accounting. An overlay on something that is not separated to make sense of the world. We put our experiences in groups and create plans. 

The container has various barriers to entry. Businesses are legal people. Much like money is money because the government says it is money. Companies are real because the government says so, and we agree. Property Rights are an agreement we find useful. We create boundaries so that people can be incentivised to invest. 

If there were no boundaries, we would all just be pure energy. We would not see anything. That sounds beautiful. That would certainly reduce anxiety and stress if you realise everything is connected. But by creating boundaries, and creating friction, you can create shape and forms and negotiate stories. You can create characters, narrative arcs, and meaning. Containers help us create. 

Study the containers that impact your life and decision making. 

The Porter Five Forces are a framework for stakeholder analysis. Identify the various people and institutions that are involved. Pay attention to your competitors, regulators, customers, suppliers. Study the supply chain, and how you are involved in the process. Understand the big picture organisation and your role, but do not be defined by it. A framework, like money, is a tool. It is a way to build limited but useful understanding. To model, not imprison, reality. 

Ideally, you have a strong container, within which you have a sense of ownership. An awareness of the agreements and trust that form the foundation. The boundaries that support its structure. The container holds space for you, so that you can solve problems, and turn that problem-solving into capital. Then the capital evolves over time as it compounds and grows. Providing insurance for the unexpected. Softening the impact of short-term noise. Sustaining capacity for long-term planning, commitment, and involvement over a longer period than if you are constantly starting. 

Starting is the hardest part. Once moving, the focus becomes the connection between moments. If you build momentum, you can connect what you were doing yesterday to what you are doing tomorrow. In a way that avoids losing track of your values. If you are so obsessed with the past or the future, that you are not doing anything of consequence today, you just get stuck. You still need to maintain the connection between the two. That is what happens in a well-constructed container. 

Then it comes down to problems. What are you solving? 

Money making is about problem solving. Not all good ideas are good business ideas. Good business ideas are profitable. You need a clear ask and a clear offer. It is difficult to articulate because our worlds are different. We have different illusions. We need to find a shared vocabulary. We need to find a way to contribute to someone’s world in a way they understand. Quite simply, you need to get paid. To get paid, you need an offer the asker recognises. That is the goal. 

Problem solving requires the ability to step back and analyse. Identify decision makers with money. You can have a great idea, but nothing happens unless you can find the funding to make the change. If you can find a decision maker empowered to say yes or no. So that the money hits your bank account. That requires finding where the control is. Where the power is. Where the impetus is. Where do things happen?

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