Have you got all your eggs in one basket? You may actually have a number of baskets for different areas of your business, and all have the ability for a single basket and its eggs to break, breaking your business.
This FAQ Business Podcast episode we look at a number of areas where putting all your eggs in one basket can prove super costly! Whether it’s a single niche, a single product/service or delivery channel, a single key person risk, your website, back-ups and of course running your business on a social media channel. All of these share the same issue when you put all your eggs in one basket (and we didn’t even mention over concentration of suppliers and customers!) If any of the topics need further depth then please let us know.
This is an episode in thought leadership and is intended to challenge you to think. There’s also some elements of actionable education.
Listen to the episode on all good podcast services, watch on YouTube or if you prefer to read, check out the transcript below.
Disclaimer – All information provided today is general in nature. Please reach out to Jane if required for personalised advice or coaching.
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Season 2 Episode 22 FAQ Business Podcast transcription | Are all your eggs in one basket?
00:01 Are you putting all your eggs in one basket when there are many baskets?
Today’s episode of the FAQ Business Podcast unites around the theme of putting all your eggs in one basket. It’s just that there are many different baskets.
I will question you today to think about your niche, your product or service offering and your delivery method. Your key person risk, running your whole business on a single platform like Facebook, website hosting and backing up. This is a wide variety of issues, but they are all backed by the same problem. Have you got all your eggs in one basket? If any of these baskets break, has your business broken too?
00:45 Welcome to the FAQ Business Podcast with Jane Tweedy
Welcome to the FAQ Business Podcast for business owners covering four pillars actionable education, inspiring leaders, businesses like you, and thought leadership, where we challenge your thinking. Hosted by myself, Jane Tweedy, I’m founder and lead trainer of FAQ Business Training where we want to avoid you getting ripped off or ripping yourself off. We’ll feature an amazing diversity of guests with lots to educate and inspire you. Let’s jump into today’s episode of the FAQ Business Podcast.
01:21 This episode has come through a variety of discussions as well as my own ill health
Hi there. I’m Jane Tweedy and I’m from FAQ Business Training and the host of the FAQ Business Podcast. Today’s episode has come about through a variety of discussions, things I’ve seen in forums, and a variety of places recently, including my own issues with ill health. And this has led to today’s topic about this whole idea of putting all your eggs in one basket.
So many issues around this, I decided to kind of put them all together. But if there’s a particular area that you want to delve into in the future, let us know and we can make it the topic of a future podcast.
01:57 Knowing your niche and your target market
Firstly, we’re going to talk about niche. And niche is something I think has been very confused in the past, and I think well-meaning people have led people to do the wrong thing maybe for their own business.
So my attitude with niching is that you need to know your niche, you need to know who you’re talking to. So an example I give in a Tea Time Tip I did on Buyer Personas and Ideal Clients, was that if the personal trainer has a target market of 18 to 55 year old females, that’s a target market.
02:35 You need to know your niche so you can communicate with them
Within that target market are different niches, different people with different needs. So for instance, the reason the 18 to 25 year old single person goes to see the personal trainer, versus the 25 to 45 year old mum, versus the 50 year old plus mature person who is an empty nester, very different reasons for going and seeing that personal trainer.
And if you want to communicate with them, you need to put up pictures that attract the 18 year old or the 55 year old. You need to communicate with them about messages and transformations they’re seeking to achieve. So that’s why you need to know your niche.
03:16 But do you only need one niche?
Absolutely agree that you need to know that niche, and you need to really narrow it down. However, does that mean you need one niche? No, it doesn’t. Already in that example, I gave you at least three different niches you could consider. But what about other things?
03:34 During Covid some narrowed down too much and then lost their target market
During Covid, this became very apparent. There were some people that had narrowed down. Say for instance, they were a copywriter and they narrowed down to focus on a particular area of copywriting. So they wrote website copy and articles, and things for the travel industry. Well, what happened during Covid, there was no need, no demand for that particular topic.
03:56 Don’t put all your eggs in one basket by niching down too much
However, what was stopping that person who was a good writer and had a good way of communicating with people, and being able to get things out of people, what was stopping them doing other industries? So sometimes niching down too far and putting all your eggs in that one niche is not a good idea. Because like happened in Covid, the niche broke and suddenly you don’t really have any clients left. Not a good way to be.
So really look at it. Is there an alternative niche you could have, that maybe might counter balance? So if times are tough for one, are times easy for another industry? Maybe that might be a good counter to have.
04:38 What about a single product/service with single delivery method?
What about if you have a single product or service offering or a single delivery method? By single delivery method, I’m talking about something like, for instance, a coach or a trainer who only offers face to face, one on one type methodologies.
So obviously, again during Covid, we saw that had to change. People had to switch from face to face to online. Great, we saw that change. But what about an ongoing change? So a lot of people now are offering that online and face to face offerings. They have changed a little bit, but they’re still potentially doing only one on one.
05:16 If only offering one on one you might need to look at other income streams
If you’re only offering one on one. Then what are you constrained by? Obviously, there’s only a certain number of hours in the day. And this has certainly been highlighted for me, particularly in a recent renewal of a contract I have, where the number of hours have been severely cut due to a loss of part of the contract by the provider.
And what that means is that there’s very limited opportunity for me to provide that service during the week. Now, that is a problem for the clients that want to use that service, because there’s going to be very limited spots for them to use. So they’re potentially going to have to look at other things. But obviously for me, that also means I have to look at other ways to replace that income from that particular income stream.
06:01 By only doing one on one you are limited by the number of hours you have
So one thing to look at, like I said, with the coaching for instance, or training or anything like that, when you’re doing it one on one. If you need to do it one on one, then you’ve obviously limited by the amount of hours you have available. And you can’t spend 40 hours a week potentially doing one on ones. You’re potentially doing 30 hours plus 10 hours of admin work and all the other things to run that business. So really think about how that’s going to constrain you.
06:30 Think of other ways to deliver, be open to new ideas
Now you could bring in other coaches. They could also do one on one. How about looking at other ways to deliver? Could you offer a pre-recorded course that people can buy things and do things themselves without you being there? While you’re fast asleep, you are actually selling. So consider whether there’s options like that for you. Anything can be sold in a different way. If you think about it, you’ve just got to be open to ideas.
06:59 You could find new customers and increase your earnings
But also this allows people to use your service that might not have been able to afford it at a single one on one price point. The price point is very high. At a group, small group level, the price comes down to them, but your price earned, your money earned actually goes up.
When you bring it down again, again the price point lowers. But now you’ve got many people potentially buying that product that you’ve created or that productised service. So really do consider what you can put out to the world, and whether you can offer your one on one, in a slightly different manner or a slightly hybrid model.
07:35 Maybe do one on one and some in a pre-recorded format
Part of it can be moved over to being in a structured pre-recorded format. Part of it’s one on one. Therefore the stuff that you’re repeating over and over, when you’re explaining a concept or a theme, you don’t have to do that face to face all the time. Do that bit pre-recorded and then show them the implementation in the session. So really think about how that could work for you.
07:59 Key person risk can also be a big problem
What about key person risk? This for me is a big problem at the moment because I am definitely a massive key person risk in my business. Currently in the future I do intend for there to be multiple trainers and things so I won’t be the only person in the business. But currently I am. And well the only main deliverer of content in the business. That is a massive problem and a massive bottleneck.
08:24 I have been sick for the last few months and its frustrating for me and for clients
So because I have been sick for the last few months, I haven’t been able to deliver to the standard I would like to deliver or the quantity I’d like to deliver. And I’ve had to let some things go and really had to really pull back and from some things. That’s been very hard. It’s been really frustrating for me, it’s been frustrating for clients and it really does highlight this key person risk.
So when we first started our businesses, we often do start with just us and that’s okay to start, but you need to move past that quickly if you want your business to grow. So that’s something I’m definitely going to be looking at in the next year, is getting some of these other trainers on board so that it’s not completely reliant on me, because that becomes very tricky in times when things are a bit tougher (being sick!). But also making sure that the membership and things are going more smoothly, so that has content and things for people to buy, regardless of whether I’m available or not.
09:25 Running your business on only one platform can be risky
Another issue I’ve seen brought up recently is running your whole business on one platform. Yet again this week, I saw someone saying, oh, my gosh my two factor authentication, which they actually had (which is what a lot of people forget to put on, was failing).
09:42 What if everything is going through Facebook and then you can’t get onto Facebook?
Because this particular person was using the Facebook two factor authentication for Facebook. The problem is that product has been deprecated in their own words. So what they’ve said is you have to replace it with another platform. So, for instance, you use Google Authenticator instead of the Facebook Authenticator.
The problem with this was the person hadn’t done this to get access to two factor authentication. She needed to be in Facebook. She couldn’t get in Facebook because she couldn’t get in, and she was having massive issues. The problem was her entire business was built on Facebook. All her orders were coming through Facebook. All her messaging was through Facebook, all her contact with clients was through Facebook.
And I just see this happening time and time again. There was one a few years ago. The person had 4 million followers on her Facebook account and the page got shut down for breaching violations of community standards or whatever, right.
10:42 Don’t put all your eggs in one basket – or all your eggs on Facebook
Don’t put all your eggs in one basket. Don’t put all your eggs in the Facebook channel, particularly if you’re going to the extreme of just doing shopping and e-commerce and messaging and contact with clients all on Facebook, you’re 100% then at the whim of Facebook and that is just far too risky.
11:04 Maintain your own client list and spread things out
Spread things out. Have your own email list maintained, like in a MailerLite or something like that. Have your own client CRM, where you’ve got client details, client relationship management system, everything spread. Because when you have it all in one place, if that one thing fails, that’s it you’re all over Red Rover.
So really consider how this is going to impact you. Imagine what would happen to you if you lost Facebook and Instagram, for instance. How much of an impact does that have on your business? Sure, it might be an inconvenience, but it really shouldn’t be stopping you doing business. And I’ve seen instances where it’s actually stopping the person doing business. That’s not good and that’s not what we want. So make sure you spread your business.
11:51 Website hosting can cause issues – refer S2 Ep3 Is it time to fire your service provider?
Another issue is website hosting. And I have talked about firing your service provider and things before, but in this one, I just want to talk about a couple of issues around website hosting that have again been reminded of recently due to a couple of my clients. So one realised after talking to me that she was spending an awful lot of money on things that she really didn’t need.
12:18 Example of trying to reduce costs and they cancelled the client!
For instance, she had been spending up to AU$10,000 a month on SEO and SEM, search engine optimisation, organic stuff, and search engine marketing – the ads. And the thing was, these just weren’t even delivering. And I found some pretty disturbing things when I looked at her ads and things, some of the copy in them just wasn’t even right. And you’re going, you’re paying all this money and it’s not even correct. It’s just terrible. So there’s a number of issues with this.
Anyway, so she contacted them and sort of expressed her concerns and how maybe they could reduce this cost to something a lot more manageable. And they got incredibly defensive, incredibly angry, and they basically pulled the pin on her before she could even pull the pin on them, kind of thing. So it ended up very negative and very, very bad.
And the problem is they threatened her and they basically said, you’re going to lose everything. Now, the thing is, she actually wouldn’t. So if she went away and set up another website using her domain and things which she should own, particularly in Australia.
13:26 In Australia we own our domain names
So I just want to put out something here first. Domains in Australia that are.com.au or .au are governed by rules that you have to have an Australian ABN with either the business name, a company name or a business offering that is tied to that name. So you can’t just go and register online real estate in those markets in the .com.au domain, or the .au domain, okay?
In .com people can go register what they like. So I can go and register things about butcheries and nurseries, whatever, it doesn’t matter, but it does in Australia. So technically, if this website company had bought the domain or they own the domain, that’s not true because they can’t own it, they won’t be able to own it legally. So this is a bit of an issue.
14:22 Fortunately she owns domain name but will probably have to rebuild website
Now, she has actually got, managed to get her name on the domain itself. So she is registered as the registrant of the domain, which is good because it means she can then control where the domain directs things to, where the website is. However, it is very likely that the website itself will have to be completely started from scratch, because it looks like this company will certainly not give it up.
14:47 Another client got custom website but now they have control of it
Another client who also has been taken for a bit of a ride. He signed up to a website deal with a company. And I will warn you this, please be very wary of companies selling custom websites, okay? They make it sound like it’s so much better. It’s all designed for you, blah, blah, blah.
What they’re neglecting to tell you is therefore they basically hold you ransom because you’re kind of contained to just them to service the website. You don’t have what’s called a content management system typically. You can’t go in and edit things yourself. You can’t go and change the text and change the pictures and things. You can’t do that easily.
15:31 Better to stick with WordPress or Shopify and you can keep adding pages
Even if you can do that piece, you potentially can’t add new pages and things like that. So you make it very restrictive. So my strong advice to you, please stick with something like WordPress or Shopify. Please don’t go down the roots of these custom sites. And I’ll give you an example from one of my clients. I said to the client that he really needed to create some extra pages.
This was one of these sites where you pay an amount of money and it sounds really good to start with. But then if you want more pages, you have to pay more money. So he had a very limited number of pages, really, that he could create or have created for him under this plan. And even if he went to the top plan, there still really wasn’t a huge amount of space in there.
And I said to him this isn’t really going to work for what he needs to do. So we were talking about different options for him. So one thing I said to him though is what platform, again one of these custom built ones.
16:29 These companies are very good at manipulative language to make you think you own it
And again I said to them do you actually own your website? And these people are exceptionally manipulative because they actually have an FAQ on the homepage of their website which says “do I own the website?” And this is the answer to the question. Remember, the question is do I own the website? Okay? That’s an important point. “Absolutely…” If I read that, that sounds like a yes to me. Right?
During the onboarding process, you will be asked to provide your ABN. Your ABN number is used to register the domain name for your new website. Remember I said before, you can’t get a .com.au or .au without having that. That’s why they need that. Right?
17:20 Make sure you register your own domain name that way you always own it
I would always register your own domain yourself. You do not need to get them to register it for you. So never get your web person to register it. Do it yourself. Okay? That way you contain ownership of your domain name for ever more.
Then it further went on. “If you were to leave, you would maintain the domain and all rights to the business name.” Hmmm That wasn’t the question. The question was “do I own the website?” Hmmm That is not saying I own the website. It is literally saying I own the domain name and the business name, which is NOT the website.
18:03 You pay all this money to have the website created and you don’t own it!
So you pay all this money to have this website created and they own it and they maintain it and they keep it and you don’t get access to it when you leave. So all you can do is maintain any copy and things that you did. That’s it. The rest of it poof gone. Start again.
So please remember this. When you are working with website people. It is a very dodgy tactic that they do that they try and make it sound like it’s awesome to have this website that’s custom created. Instead, what you should be doing is having a WordPress or a Shopify website that actually is built for your purpose. So it’s based on that, but it means that another website person can come in and take it over easily.
So with the website, please make sure that you are checking what platform is built on. Please just stick to the ones like WordPress and Shopify. Please don’t go down these custom ones that that person is going to lock you in. Okay? Other people can work on a WordPress or a Shopify website. Please make sure that’s the case.
19:12 When setting up your website make sure you have the option to add additional pages
And make sure that you’ve got that flexibility to add more pages. WordPress and that really shouldn’t limit you. You should be able to create as many pages as you want and have the ability to do that. So what I would suggest you do is you get the person to set up the services page where all the services set, and a service page and then you can replicate that service page as many times as you want every time you add a new service. There shouldn’t be a huge cost to doing that. Okay?
19:39 That’s why I started FAQ Business Training, to stop people getting taken advantage of
So really think about your structure, your website. What you might need now and what you might need in the future. But be very careful of these people that take you for a ride. Unfortunately, it’s why I started FAQ Business Training because I was sick of seeing people getting ripped off and taken advantage of because of what they didn’t know. Because they didn’t ask the right questions, or because they read an answer like that but didn’t ‘read’ the answer.
So when you see Do I own the website? Absolutely. You think, of course I do, I own the website. No, you only own the domain name and the business name. That is very different from owning the website. Arrgghh. Very frustrating.
20:21 Don’t put all your eggs in one basket by backing up your data
The last thing I just want to talk about is backing up and there’s a couple of reasons why all your eggs in one basket here. For a start I saw someone the other day lost their phone. They had not been backing it up and therefore they have potentially lost all their photos and videos, etc, on their phone.
So I had a situation, my contacts weren’t backed up. It was really weird and I literally went into the contacts one day to show my partner something and saw that there was like 798 contacts in my phone. Literally two days later I went in and there were none at all. They just vamoosed. And then mysteriously half of them reappeared, half did not, and about 400 came back. So it was very frustrating, because I’d get people message me and then I’m like, who the heck is this person? Very annoying.
21:10 Be aware of backing up to iCloud as things can be accidentally deleted
So making sure you have proper back-ups for things like even the contacts in your phone, but your photos and things. Now some people use things like iCloud. So they go from the Apple iPhone or whatever to the iCloud. Check what’s going on there? Because I have seen situations where you deleted in iCloud or deleted on the phone, and it’s deleting it in the other spot.
So some people think I need to clear memory on my phone. They think they’ll delete the photos on their phone, because they’re safely in iCloud, not realising they’re deleting them in iCloud, too. Okay, so please be careful of this. It’s a little trap for young players.
21:48 If I store in OneDrive and delete on my computer it deletes in the cloud
I know that I set up OneDrive on my computer, which I still haven’t had a chance to sort out and get rid of because it’s a nightmare. Anyway, what OneDrive does is it effectively stores all the files with these ridiculously long names in the cloud, which causes issues, for a start. But what it does is if I delete a file on my computer, it deletes it in the cloud.
And my problem is I haven’t got enough room on my computer, because every time I record a podcast, for instance, I’m using up about a gig and a half of space. By the time I have the videos, by the time I had the podcast and everything, it’s a lot. So it’s taking up a lot of space. So I have to keep moving things off.
22:30 An external hard drive to back up is a good idea
Now, if I just delete them, thinking, oh they’re in the cloud no, because cloud will delete on me as well. So make sure that you have that one way to the cloud or something like that, set up. Or you have an external hard drive backup. So I tend to have a hard drive backup. I put everything on the hard drive. And then I go and delete it. But remember now that that’s going to delete from the cloud, so I’ll only have it on that hard drive.
22:57 You could store your external hard drive somewhere else as another precaution
And lately my hard drive has been playing up a little bit and it’s been doing some funny things. So, again, don’t put all the eggs in that basket, back up that hard drive to another one. Ideally, do not store it in the same location, because if you have your computer, your hard drive and everything here and there’s a fire, it’s all gone. Okay?
So think about, can you take it somewhere else? If you have an office outside, take it to that office. If your partner has an office or whatever, get them to take a small hard drive, a portable hard drive to their office. That way you don’t have all your eggs in one basket, or in this case, all your hard drives all in one location.
23:36 Have you got too much in one area and putting your business at risk?
So, as we can see, if any one of these fail, if our niche falls over, because that market falls, if we lose everything in back up, we don’t have any of our documentation and things, we are really going to hurt our businesses.
So each one of these things by themselves can be a case of we’ve put all our eggs in one basket, that one basket falls, smashed eggs, broken business, all over Red Rover. So I really want you to think today and look at your business and go, are there any points in my business where I have got too much in one area? And if you do, look at ways to mitigate that risk and ways to spread things out, because when we put everything in one basket, we are taking a risk.
24:27 Same applies to systems – maybe have a few connections between systems
And this even comes to things like automation. I was talking to some people the other day and they said, oh, we have 14 different systems, we really wanted to move them into three. But the risk is if they move them into three, they’re three that aren’t the best. They might have had best of breed in the 14. You’re not going to get best of breed when you go down to three.
But also if one of those fails, you know it’s five or six systems that are failing with it. So instead of doing that, maybe have connections between systems in place. Use Zapier or Integrately or one of those type things to put things together, but don’t necessarily rely on one system running everything. Okay?
25:08 Have a really good think about your business, do you have all your eggs in one basket?
So really think about this, because it can cost us so much when we put all our eggs in one basket. So I challenge you, go away and have a look at your business. And if there’s any spots that you’ve got all your eggs in one basket, think about how you can fix that, so that if you drop that basket and all the eggs break, your business won’t come undone.
25:34 Thank you for listening, don’t forget to subscribe or join our mailing list
Thank you for listening in. Love for you to subscribe either on YouTube, your favourite podcast service, or get on our email list and check out our blogs and things that come out with it. Thank you for listening. I’m Jane Tweedy, here from FAQ Business Podcast.
Thank you for listening to today’s episode of the FAQ Business Podcast, available on all good podcast services. You can subscribe today via FAQ Business Podcast or directly on Apple iTunes, iHeartRadio or Spotify. Subscribe, follow, share and where able to, review our podcast or leave us a comment on either YouTube or our blog page. Thanks for helping us to help you. The small to medium businesses who are growing and want to make a difference. Look forward to connecting with you again on the next episode of the FAQ Business Podcast.
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