I love everything that sparkles, it has become a running joke that I have magpie eyes and love glitter. I used to collect gem stones or anything that was sparkly. There was a particular rock caller Pyrite, otherwise known as ‘fools gold’ and I remembered this when I was thinking about shiny pennies and this blog. In our quest to find treasure, do we potentially miss actual opportunities because they don’t sparkle as brightly?
The ‘shiny pennies’ are those great ‘opportunities’ that come with big ticket promises. They are appealing because they can appear to shorten the work, planning and time it takes to achieve success or appear to be the equivalent of the business lottery ticket.
They can also be the distractions.
The importance of your strategy
In any business plan, your strategy will inform your plan of how to get there. This is a very basic simplification. The clearer you goals and strategy, the more you will be able to identify the action steps needed. Then it comes down to sheer hard work and consistency.
The distractions come when you see what others are doing, have done and have been successful at. We can overload our brains with the hundreds of different opportunities and ways of doing things. We can be swayed into changing our minds, then our strategy and then our plan. Do this too many times, every time a new shiny penny catches your eye and you end up doing nothing.
I am not preaching. I have been guilty of this. I love learning, so every time I learn something new, I want to do it. What I am now learning, is that it doesn’t all have to be done right now. I have moved to a new city, which has so much potential and opportunity, it can be overwhelming. The flitting between ideas only lost me time and mentally wore me out.
Sit down with your goals and really think about what they mean to you. Think about what you want and what you are able to do. This doesn’t mean limiting self beliefs of what you are capable of, this is the reality of whether you can travel regularly, the time you have available, how quickly you want to achieve a certain amount of income per month etc. This differs for everyone, so comparing your plan with what others are doing isn’t helpful. Yes we can learn from each other, but we don’t know everyone’s personal situations. I will share ours purely as an example of why we have chosen the strategy based on our goals, so you can see the process.
- £xxx cash flow PCM by Jan 2020 (strategy will need to be income producing)
- £xxx in capital by April 2019 (strategy will need to make chunks of money)
- £xxx in capital by Jan 2020
- Flips – will create the pots of capital
- HMOs and Sourcing – will create monthly income in the time frame we have set
Birmingham – Due diligence and research to find locations
When I have this, I can focus now. I am not trying to see what others are doing, I am not constantly trying to find a new area or looking at every property under the sun. It stops the external noise and I can set to work.
Beware the shiny penny. There are always brilliant opportunities and bigger goals and projects. But if we never learn the craft long enough to build and grow our experience and work our way up, what we have will never seem enough. We will constantly be thrown by the next thing that glistens and we may just end up with fools gold.