Nathan Sykes

March 29, 2021

Philosophy 2 of 3: Expand Horizontally

This is post two of three in our company's philosophy. Yesterday, I realized that our philosophy was not available on our rebranded website, so I wanted to throw it up on HEY World for prosperity. These philosophies are really what help guide us as a company. Above all, it's important for us to understand - it's just money! We're buying and managing companies. We're not building rockets. We're here to have a good time, and make some cash. Let's treat it as such.

Our second core philosophy, Expanding Horizontally:

Our focus is on creating and scaling small, profitable micro-businesses – companies that traditionally earn $250k or less in profit per year, and employ less than five people. The companies we invest into are small, boring, and profitable (there’s that word again! Hopefully you’re learning that it’s important.)

“But why?” you ask. “Why don’t you just focus on growing one or two large companies, instead of a bunch of small ones?”


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Great question. The answer is diversification. We very rarely own more than one business in a specific field. Take three of our most recent ventures – a film festival, a government services provider, and an e-commerce store. Three very different companies with very different processes, clients, and products.

Last month (this is being written in June 2020), Google announced a “change” to the way that they run advertisements for government services. The change they were announcing was that advertising for government services was now against their Terms of Service. What fun! At the time, we had an advertising budget of hundreds of thousands of dollars with them for that one specific business. It accounted for roughly 90% of our incoming payments, and Google had the ability to cut it off, just like that.

Imagine if that was our only lifeline for revenue – we’d be screwed.

Because we focused on diversification, we took a significantly smaller hit than we would have if we had invested all of our time and energy into one business.

We keep it small, agile, and profitable. Micro-businesses are fantastic, because they’re supposed to provide a solid living for one family. $250k/yr is enough for a family to live on, anywhere in the world. But if you stack up more than one of those small, agile, and profitable micro-businesses, you have the potential to make double, then triple, so on and so forth.

Micro-businesses are the foundation for a solid multi-million dollar investment portfolio that’s diverse, focuses on real assets, and makes money month-over-month, year-over-year. Even with industry changes, or a PR blunder, or a global health pandemic, not ALL of the micro-businesses will fail.