06.28.24: Diversification | Business Talks With Ty

Yo, what's happening? All right, this week I'm back with better service. Last week I was in France. I think I was supposed to promote this or something like that, man. Let's see if I can share it somewhere on. On Twitter. I think that's what it is. I can share it on Twitter. Nope, can't share it on Twitter. Position on my computer. What I can do is drop this thing in WhatsApp so that my team can share it. Can you share this on Twitter, please? And I will share. All right, man. So it's been a very eventful business week, to say the least. Really. Two weeks. First thing is a lot of the conversations. You know, I had a speech I had did with, with Forbes magazine and the topic at hand was about the digital CEO and the entrepreneurship in the digital age. Right. And so I was speaking with a co panelist by a guy by the name of Thomas Walker Insight, VP of Insights Marketing. Not mistaken for ebay. I think that's his correct title. But one of the topics that was very, very interesting that we delve into was diversification. And with diversification, it's always interesting when people talk about diversification because it's like, how do you diversify? We're always diversifying our times by multitasking. I feel like my hair all crazy. We are diversified our time through multitasking, finding ways to be impactful through our investing about resources, which includes money, bartering, services, but also our time. Right. And one of the, the panelists, the moderator on the panel was asking me about diversification. And one of the things that I pointed out is I was like, transparently speaking, I spent a lot of time focusing on building out a music business before I truly started to diversify in a real way. So you're talking about six to seven years of focusing on the same thing, AKA being in a box. Being in a box, focusing on being in that box for seven years almost. Then going into the eighth year, we start diversifying across entertainment, media and sports. But the reason why we diversified is because we know that a healthy business is a business that's. That has equilibrium across the different sectors. If you got three businesses or if you got three products and one product is representative of 75, 80% of your revenue top line, and then the other two represents 20%. That's an unhealthy business. If anything happens to this one vertical, your entire business, folks. So the, the goal from the reason on why you diversify is if you got three products, three verticals, three companies, and one of your Companies in your portfolio and your virtual fund or whatever it is, if one of them is doing 45% of the sales, other one is doing 35 of your sales and another one is doing so that's 45, that's 35, that's 40, 35, 45, that's 80, 80. You got a third that's doing 20. Your diversification strategy is to get that 20 to be up to more like 30 and you want that 45 drop more like the 33 and you want to make it so that it's a third third. That is a very healthy business. You know, if one go down, the other two can, can, can work. They only got to increase by 10% each to kind of balance out that down, that down downward spiral of a second venture or a second partner or a third product, right? So the diversification thing starts in. I'm like, man, how do I communicate diversification from a business perspective to an audience, right? And for me, what it, what it feels like is we have to talk first, we have to talk about diversifying, we have to talk about diversifying educationally first, right? How do you diversify by your education? And what I mean by that is if you want to learn something outside of what you deal with on a day to day basis, you have to spend time there to be educated and to learn something new. So when you come back to your base, you got your main thing that you know and then you just diversify your educational experience through something that never knew about before, but you becoming like an early expert on it because you're putting the time in. So now when you have conversations with people, now you can have more diversified conversations. But it is so important to be so skilled in being able to communicate, execute, understand your main thing that puts you in that box. For me, it was music management and music business, which are the same thing. In the era that I'm doing music, right, I learned everything that I needed to learn about music business and music management side of the business. That when it was time for me to, to go out and diversify into sports management, some of the things that I learned in management of music and management of business started to, started to transfer over. So now I'm like, boom, I'm doing sports management. I go and I get a degree, a master's in sports management. I have an undergrad in psychology, but my. Now I, I got an undergrad in psychology. I have a, a street degree in music and management, right? Just, just. I wouldn't say a degree, I would say experience. I Have the experience that I have done years in, took me four to five, really took me seven years to get my undergrads right. As a psychology, I spent five to seven years learning about music business specifically, specifically. Then I took the time to go and go get my undergrad, spend two years learning about sports management. So psychology, understanding people, that's a certain education. Then I, I diversified into managing of understanding music business and music management. Then I did a, diversified more into understanding management across the sports business. Now when I'm doing the management of sports, I'm like, okay, boom, I diversify into real estate management and real estate, just real estate as a whole. Now I look back, I'm diversified from an education perspective in four different sectors, right? Psychology, which is a professional trade. Not professional trade, that is my undergrad, that's my study. Then my second thing where I got experience in music, music management. Then I went back and I got my, I went back to studies into sports management, which some of my experience in management in the music side with talent, with ip can translate over a little bit to the management of sports, right? Then I go and I want to learn about real estate. Now with real estate, you have management, you got to manage assets. You know, you got to understand like all of these different elements of it. Right? Now I haven't talked about investing money at all. I'm purely sitting here and spent the last three to four or five minutes of what we're doing talking about diversification in terms of how you educate yourself, how you prepare yourself through education to be able to take advantage of opportunities that present yourself. Now, boom, I get an inheritance of $50,000, right? Boom. Now I'm saying, okay, I can take this $50,000. I can apply my real estate experience or, well, my real estate knowledge to gain experience, right? So my knowledge is going to tell me, you know these things. You do know these things. You know these things, but you don't know these things. So maybe you should partner with somebody, pull some money together and get you a single family household. Single family, apart house first to start, right? You kind of build out those different things. But I just did diversification. I broke that down in the educational way without even starting to talk about investing. Investing is not always about money that you put in, but it's about your resources, like how you invest in your time, how you invest in the information that you like. What are you, where are you putting that stuff at? Things of that nature. Oh, let me go to. I'm looking at this. Sorry, I will your name up and My name has been up my entire life. So I will not do you that way. So I will, I will not try to pronounce that. And we can probably talk about that later. Hey Ty, I hope you're doing well. Just want to ask what are some of the differences you notice when comparing sports management, real estate management, music management, man, sports management is that athletes, they get inherited or ingested into infrastructure. So you get drafted to a team, that team already got schedule where you're going to report it, where you're going to work out at, what city is in, what rules, what regulations, all of these different things, right? It's the easiest lift for a manager or agent because there is protocol, processes and procedures. There's consequences, repercussions, disciplinary actions. If you're not on time, if you don't do this, if the contract is not done by this date, there is no being late. It's a consequence to being late. When it comes to sports management, when you translate over to real estate management, there's still structure, rules, contracts, all those different things, right? But when you are building out a low income apartment unit and you acquire that, you acquire all of the headaches from a management perspective. So if I acquire a new athlete as a client, they already got, they set up, they, their management is clean. But when I acquire what they call a distressed property from a real estate management side, I gotta go evict tenants, people late people probably pay their rent in two, three months, it's been managed improperly. And then I can get punished by the city by not having proper management, right? I can get punished by sports on the union side by not managing the athlete properly. Then when you start talking about music, you have to build infrastructure for your management to be successful. You have to build it so that the clients trust that you have infrastructure that they can walk into and to be, you know, taken care of, protected, all of those different things, right? So the differences when I compare them is that sports management is a cleaner protocol and procedures because of the leads that, that you're going to be enter into. There's still always wackiness because that's with any business, but it's more cleaner and structured real estate management, the difference, the biggest difference is that you, you can't really like there's so many things that can, like somebody can die on the property, get shot on the property. You have to worry about more with real estate management, right? Your liabilities can be higher because you're, you're, you're, you're overseeing tenants. So if there's a mold infection in the, in the, in the apartment. You're. You're held liable to it. You have more liability, right? With the music management side, man, it's just a wild wild west. You got to build it how you want it to be built. You do have a lot of obligations, but you can only just. It's just one person that you're probably focusing on from that perspective. So to put it in a condensed way, the differences between all of them is the level of responsibility that you inherit when you, when you're dealing with all the different types of management. Between sports, real estate and music, sports is probably the most disciplined. Real Estate is a product. The apartment is never talking back. I, I started to say Ali, but I ain't want to do the black people, whether we don't know how to pronounce first name, so we just automatically give them a nickname. I ain't want to do that. So I was like, let me not do that part of it. Let that person communicates that that's what they are used to being called by Shark. You know what I'm saying? Because you could easily be like, yeah, did you call me? So that's what they said, my last name. You could have easily said that. So. So I appreciate that, but thank you for the question, Ali. I am four minutes over time and once again I have a very eventful week when it specifically talks about talk about business. So this is just the outlet that I wanted to start every Friday. I literally, I'm in LA right now. I'm actually in the apartment that I, that I. I'm in the apartment building that I moved into in 2015. I used to stand a studio apartment in the same building on the third floor. Now it's a one bedroom apartment on the first floor. And so every time I come back to la, I still come stay in the same same apartment trying to save the money. But BET weekend is this week. So we out here working, trying to get things done. But it felt like it was a really great conversation to talk about diversification from a business perspective on being educated, not more so money. Because money can be intimidating when people are like, oh my God, like it's so much money to invest into things. Let's start on a base level. Let's not talk about money. Let's talk about how do we diversify our educational experience while we here on our journey to better ourselves for opportunities that will come, that people will be impressed by you because of how much you know about this topic and you could earn equity into a company by how smart you are, how intelligent intelligent you are about the product. So once again, business talks with Ty every Friday. Try to do them for at least 10 minutes, five minutes over which is fine. Ali asked a great question. Thank you for taking the time. Always. Always. So y' all enjoy this. You can share it. Obviously it's live now but when I end it it populates and it's a a clip that everybody can share and get gems from and and I try to re watch them and look at look at some of the the the the comments and answer some of the comments and I'm continue to keep this inspiration because I gotta write the Culture Playbook Bible too. So we gotta still keep that that inspiration so I can get this book done. So thank you all. Enjoy your weekend. Enjoy your next week. I'll speak to you next.