Cut losses or stick it out?

All right, the interesting news came through the sad news came through today that Golden Century has closed in Sydney.

If you're not familiar with Golden Century, then this is a young char restaurant or dim sum if you're in the States, a Great Chinese institution in Sydney's Chinatown, and essentially eight weeks of lockdown has taken out Golden Century.

And, and this is happening.

I mean, this is very difficult in terms of many businesses trying to survive.

For a while I've had this analogy, this interesting idea that COVID essentially has almost been like a giant roulette wheel in the sky, some people have done extraordinarily well, and are buying Lamborghinis and Ferraris, and businesses booming.

And for some, it's horrifically bad.

Now whether this is all just a speeding up of what was already on the cards, that going back before COVID, it was probably possible to see that some of the changes around retail around online shopping around ordering the arrival of Amazon here in Australia, obviously, in the States, you guys have had that for a long time.

But here it was already shifting that dynamic and then throw in lockdowns and the inability for businesses to operate essentially, I walked around firing today and 95% of places that close like maybe three or four restaurants open for takeaway only as essential businesses, you know, the rent, the rent has to keep being paid.

And look, businesses typically just don't have that much cash that it's like, yeah, we can just run for eight weeks with no income.

That's typically not what's going on.

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We're just hanging out with me.

A little too, for 140.

Today, it's, it's the time and pips show.

And coming back to Golden Century, you may be faced if you're not on the Roulette winning side with a difficult decision about hey, what do you do.

And at some point, it may be a choice to cut your losses, and just go, You know what, let's, let's get this killed.

Let's put this business out of its misery right now.

Knowing that eventually, when the locks down lift, when business conditions improve, you can actually be in a better place to go again.

And it's an opportunity to allow what has has been like what lessons did you learn? How would you do it better next time, extract out the wisdom and the learnings and from my perspective, particularly the systems, like in the death of that enterprise? If that is what you are looking at, then hey, what can you take out of it? What systems are applicable across all businesses, I want you to appreciate this idea that many systems you required by every single business.

Like if maybe there are some exceptions, let's say this isn't exceptions.

General Practice, businesses over here typically will not need marketing, sales, advertising.

And in fact, they're banned from advertising.

But all they've got is fulfillment.

But most normal businesses are going to require marketing, sales, advertising fulfillment, they're going to need people they're going to need optics, they're going to need accounting, they're going to need taxes, all of these things.

And there are systems that run this.

I'm reading E Myth again at this time.

And it's just beautiful to see the insight that E Myth brings, essentially, it's a book about McDonald's, and that McDonald's is not a business, selling hamburgers, but rather McDonald's was a business selling businesses.

And irrespective of whether you think the food is amazing, or the food is terrible, or somewhere in between, maybe it's just a great stop on the road while you're traveling.

Like, man, thank you that McDonald's exists, but they were really the first ones to master the selling of business systems.

And so if you are faced with the difficult choice, if you are faced with a difficult choice of like, okay, we're going to close it down, then what do you keep? Yes, the lessons perhaps you put it on is and extract out as much as you can to say, hey, when business conditions improve, we go again, and we're ready.

And this time we're faster.

Perhaps you might even look at the world that we're living in.

Now.

This is not the world that may have existed for you when you started your business.

Five years, 10 years, 15 years 20 years ago, 30 years ago.

Like there's a lot earlier our 80s of being an Australian citizen or really not Americans presents a possible tax haven currency.

Oh, there we go.

We're back.

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So America actually represents very interesting opportunities.

And I've been following a gentleman called Simon black over at Sovereign man.

This is getting into the five flag theory that you put different aspects of your life in different jurisdictions.

And certainly, some of Simon's predictions in terms of having your passport, or having the capacity to keep things out of the government's reach is extremely helpful.

Now, this is done legally, this isn't about doing illegal things.

If you go to Rich Dad, Poor Dad is like, you know, it's easy enough to do it legally, don't be tempted.

But if you know what to do, and you know, are aware of opportunities, then the world is a fascinating place.

Even in New Zealand in itself, like in New Zealand trust could be used.

Now, again, this is not a recommendation.

I'm not a lawyer, and I'm not an accountant.

I'm not an international business specialist.

So you should get your own advice.

But you should definitely check out some of these resources because eventually, it looks like when businesses open up again, when lockdowns come off things boo.

And it's like, okay, be ready, be ready.

Perhaps it's like, Okay, I'm going to cut my losses.

I'm going to take the lessons I'm going to prepare for when the situation changes.

Alright, that's all I got for you today.

Hope you're having an awesome day.

Look forward to seeing you on tomorrow's episodes.

We continue to explore the power of systems to create results.