Good businesses have margin.— Justin Jackson (@mijustin) January 7, 2020
Profit margin, yes.
But also margin for your time, your emotional and physical health, your relationships, your sanity, and your integrity.
Low-margin work eventually leads to ruin. The margins rarely get better; the sunk costs get worse.
If you’re employed by a “low-margin” business, do everything you can to get out.— Justin Jackson (@mijustin) January 7, 2020
Your boss will download their anxiety, lack of health, and mania on to you.
They’ll make YOU feel the pressure THEY feel.
Things won’t get better. Get out as soon as you can.
An example from my life:— Justin Jackson (@mijustin) January 7, 2020
In my early 20s I opened a skateboard/snowboard shop. It was low-margin everything:
– low markup on the products we sold
– high complexity (ordering, employees, inventory)
– high risk
– high stress (theft, capital)
– long hours, low pay (as an owner!)
One thing you’ll notice with low-margin businesses: you’re always “adding more” hoping it will increase your margins.— Justin Jackson (@mijustin) January 7, 2020
At the skateboard shop we added a mini-ramp, did events, published a magazine, ran contests, and started doing bike repairs.
“Throwing good effort after bad.”
Just found this, and it relates so much to this thread:— Justin Jackson (@mijustin) January 10, 2020
“Adding more and more layers to a system intended to avert disaster often makes catastrophe all the more likely.”https://t.co/3keRbQZyl9 pic.twitter.com/sg4uPFg7MN
Great advice, Justin. 👆— Daniel Vassallo (@dvassallo) January 7, 2020
Safety margins give us optionality. And the more optionality we have, the less we need to rely on being able to predict the future.
I’ve worked in low-margin and I’ve worked in high-margin: the work place quality has a lot to do with the quality of the leadership than it does the margins. Low-margin ≠ low-profit, you scale low-margin and operate with high efficiency so you can still make lots of money.— nicknow (@nicknow) January 7, 2020