How Many Goats Do You Have?

Yeah yeah I know it sounds weird but tell me my friend, how many goats do you have?

I came up with this question while talking to a friend about business. His idea was to come up with a bunch of products that solve a specific problem and sell them each at a fairly low price point. One product will not make him a lot of money but a bunch of them might just get him there. It’s a sound idea and I like it.

And the goats? Well, I think of each product as one goat. You get milk from one goat. Perhaps enough milk for the family to drink but not enough to sell and make money. So you get another goat and get more milk. Then another goat for more milk and so on. Well you get the point. Imagine if you have a hundred goats providing you milk.

But why goats? Why not cows? Cows will work too (and chickens for eggs) but the reason I chose goats over cows is because they’re smaller and a perfect analogy for small business. Once you’re skilled enough, then you can move on to bigger projects – cows.

Enough analogy and let’s get to business. Here’s what you might want to do.

  1. Identify a problem. Look for a problem that you think you can solve. Just one problem and it has to be specific.
  2. Devise a solution. Come up with a solution. Then refine it and refine it even more.
  3. Package that solution. After refining your solution, you’ll have to package it so that anyone else can use it without a fuss.
  4. Sell it. Sell it a fairly low price point but not very low.
  5. Rinse and repeat.

If you can do this once a month, then you’ll have 12 products in 12 months – 12 goats that give you milk – 12 money machines that work for you day and night. Do this for two years and you’ll have 24 products that make you money.

Each goat is a Product

So, how many goats do you have?

4 Comments on "How Many Goats Do You Have?"

  1. Jerry Papa | 2011/02/03 at 11:31 am | Reply

    what a good example, little things become big things. a single cents for every pie can make a hundreds or even millions if you just collect it right. this can be identify as leverage, but we must be very conscious about different products for many products can make you like Santa clause with different package…

    • Hi Jerry,

      I don’t think the number of products matter as long as they’re in the same category. The problem usually arises when someone gets unfocused and tries to sell/create a lot of different products that don’t relate to each other.

      – Mike

  2. I like this example and you are right about trying to many things at once. That was a big problem with me b/c I have all these ideas that I want to do and it was a hard thing for me to correct, but I think I have.

  3. @Beltwayboy – the key here is to keep all your projects related to each other. That way you won’t have travel too far off track therefore allowing you to stay focused.

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