. on Nostr: Satsflow for small business 🥞 I understand the term satsflow to mean a complex ...
Satsflow for small business 🥞
I understand the term satsflow to mean a complex investment thesis of venture capital but I also understand it from the left curve of earn more sats than yesterday.
An underlying idea is that you shouldn't take a business action if it doesn't make more bitcoin than the amount of bitcoin invested. Or don't invest in an action if it wouldn't make more money than simply buying bitcoin.
This is very hard to do because a simple investment in ₿ has no additional costs like rent or labor.
Now the difficulty is that you have to pay rent and meet payroll, buy inventory, market it and sell it every month. You don't have then luxury of waiting on four year returns to keep the door open today.
So first thing is to really get your house in order. I have stripped my businesses down to the bare necessities while maintaining maximum sales and customer satisfaction. Get as lean and close to profitable as possible understanding there could be current debt etc.
In the past the standard business model was to expand locations with saved capital, capture more market and reduce prices.
The satsflow model to me is now to maximize profits and invest any into sats. While the underlying dollar spent in the best performing version of your business won't outperform being invested in bitcoin, any profits from keeping the lights on will go into sats and not more of the lower performing basic function of the business.
example: Sell ice cream cones, don't invest in more carts, buy bitcoin instead. Then keep selling really good ice cream cones and buy more bitcoin.
With time a decent ₿ reserve will be on hand. My thesis is that this reserve will perform over time as if it was an additional location or department that you had considered adding from profits or loans. I have seen this with my own business where daily gains in bitcoin reserve compare to those of daily sales for example.
The compounding effect gives the operator confidence because there can still be gains even if business is slow. And further there are reserves that can be called upon to improve the business with necessary maintenance or improvements.
Now with that in mind this is for current entities that have obligations to meet and haven't yet figured out what kind of business just straight up beats bitcoin.
This brings us to the paradox of why do anything except buy bitcoin. So we can earn bitcoin directly, already are wealthy enough to not to need to work or like most of us still have short term bills to pay.
It may be easy to say bitcoin has a better return than farming but the farmer has family land to keep, kids to feed and some way to earn dollars or bitcoin to do so. Plus we all need to eat today, not in four year average from today.
So really for the ordinary person trying to run a modern business during the greatest transformation of money in history it comes down to doing things smarter than ever and investing profits in bitcoin.
But there are more strategies availble to amplify satsflow as a regulated kyc'd business.
Square loans to buy bitcoin and pay back as portion of daily sales, shorting dollars.
River fiat checking with ₿ back with set buy orders.
Strike business pay with ₿
I don't see most giving up their businesses until they have enough bitcoin to not work, and even then having a fiat mine that prints bitcoin is never a bad thing. I see more that we offload our consumer production needs onto those trying to come up or onto those that don't know better over the next decades.
This essay is intended for small operators not tech at scale. Satsflow is imperative for mainstreet to survive this current economy yet I am one of two local operators I know who even know about the model.
This is my current thoughts on satsflow for the small business as I understand it.
#satsflow #bitcoin
I understand the term satsflow to mean a complex investment thesis of venture capital but I also understand it from the left curve of earn more sats than yesterday.
An underlying idea is that you shouldn't take a business action if it doesn't make more bitcoin than the amount of bitcoin invested. Or don't invest in an action if it wouldn't make more money than simply buying bitcoin.
This is very hard to do because a simple investment in ₿ has no additional costs like rent or labor.
Now the difficulty is that you have to pay rent and meet payroll, buy inventory, market it and sell it every month. You don't have then luxury of waiting on four year returns to keep the door open today.
So first thing is to really get your house in order. I have stripped my businesses down to the bare necessities while maintaining maximum sales and customer satisfaction. Get as lean and close to profitable as possible understanding there could be current debt etc.
In the past the standard business model was to expand locations with saved capital, capture more market and reduce prices.
The satsflow model to me is now to maximize profits and invest any into sats. While the underlying dollar spent in the best performing version of your business won't outperform being invested in bitcoin, any profits from keeping the lights on will go into sats and not more of the lower performing basic function of the business.
example: Sell ice cream cones, don't invest in more carts, buy bitcoin instead. Then keep selling really good ice cream cones and buy more bitcoin.
With time a decent ₿ reserve will be on hand. My thesis is that this reserve will perform over time as if it was an additional location or department that you had considered adding from profits or loans. I have seen this with my own business where daily gains in bitcoin reserve compare to those of daily sales for example.
The compounding effect gives the operator confidence because there can still be gains even if business is slow. And further there are reserves that can be called upon to improve the business with necessary maintenance or improvements.
Now with that in mind this is for current entities that have obligations to meet and haven't yet figured out what kind of business just straight up beats bitcoin.
This brings us to the paradox of why do anything except buy bitcoin. So we can earn bitcoin directly, already are wealthy enough to not to need to work or like most of us still have short term bills to pay.
It may be easy to say bitcoin has a better return than farming but the farmer has family land to keep, kids to feed and some way to earn dollars or bitcoin to do so. Plus we all need to eat today, not in four year average from today.
So really for the ordinary person trying to run a modern business during the greatest transformation of money in history it comes down to doing things smarter than ever and investing profits in bitcoin.
But there are more strategies availble to amplify satsflow as a regulated kyc'd business.
Square loans to buy bitcoin and pay back as portion of daily sales, shorting dollars.
River fiat checking with ₿ back with set buy orders.
Strike business pay with ₿
I don't see most giving up their businesses until they have enough bitcoin to not work, and even then having a fiat mine that prints bitcoin is never a bad thing. I see more that we offload our consumer production needs onto those trying to come up or onto those that don't know better over the next decades.
This essay is intended for small operators not tech at scale. Satsflow is imperative for mainstreet to survive this current economy yet I am one of two local operators I know who even know about the model.
This is my current thoughts on satsflow for the small business as I understand it.
#satsflow #bitcoin