This year I set an ambitious goal of reading 30 books relating to finance and business to see if I wanted to change my career path. I was able to achieve this goal and able to answer, yes, to my question about changing careers.
While I slowly chipped away at this goal of reading I started to realize the past businesses I have created or worked for go through certain inflection points where every business goes through short-term struggles. Through this realization, I learned what I could do differently to create another successful business with its focus on long term growth and be well positioned during economic and market downturns. I took the first steps towards starting a new business by slowly and methodically writing a working business plan. This plan helped me formulate my ideas and test them through thought experiments, research, and peer collaboration.
This lead me to a idea for this project, long-term survival in both nature and markets depends less on constant activity and more on minimizing mistakes, preserving resilience, and allowing compounding to work over time. This insight aligns closely with the Law of Least Effort in psychology, philosophy, and biology, which suggests that systems naturally seek the path requiring the least unnecessary resistance. This Law becomes a framework for directing resources toward strategies that maximize endurance and minimize costly errors. In this way, psychology (decision-making), philosophy (principled orientation), and biology (natural selection) can converge into a resilient business mission.
This project is designed as a way to continue learning about business and finance through a hands-on approach. The aim is to follow a steady and methodical path, allowing a part-time venture to grow into a full-time business once sufficient capital has been built. In the meantime, maintaining a full-time role outside of this project will provide both stability and an ongoing opportunity to gain practical knowledge and experience in business and finance.
Below is a draft overview of my project. Co-owners are constructing a durable business model through a strategic framework grounded in five interrelated pillars, each influencing the others. This comprehensive approach ensures resilience and adaptability, allowing this project to navigate and thrive across market and industry cycles.
Business Structure
HLP’s business model is distinct from conventional approaches, allowing us to adapt seamlessly to market cycles. Our objective is to foster slow, organic growth over time, alleviating short-term pressures that often lead businesses astray. This 'slow business model' prioritizes steady, sustainable expansion, enabling us to make thoughtful decisions without the need for rapid scaling. Over the long term, consistent monthly income from our income-generating business will be reinvested into our portfolio, fueling further growth and strengthening HLP's investment strategy. By maintaining this long-term focus, HLP remains resilient through market fluctuations, giving us the freedom to apply our investment philosophy of sustainable growth over an extended time horizon.
Investment Portfolio
Our investment philosophy is grounded in simplicity, patience, and resilience, drawing inspiration from evolutionary principles of adaptation. Rather than chasing short-term gains, the project will focus on enhancing portfolio value by minimizing mistakes and steadily compounding returns. This long-term orientation allows the project to remain resilient in the face of market uncertainty and positions us to acquire high-quality assets and businesses during economic downturns, when opportunities are most favorable.
Income Generating Business
In alignment with our investment portfolio, the projects future business operations will generate revenue that fuels our long-term growth strategy. Starting small, this income-generating business will provide a steady passive income stream, which will be reinvested into expanding our portfolio or acquiring businesses outright when opportunities arise. By gradually scaling this revenue source, the project strengthens its financial foundation, ensuring it can continuously grow and reinvest in line with our patient, long-term approach. This strategy not only enhances our investment capabilities but also reinforces our focus on resilience and sustainable wealth generation.
Ownership
Our philosophy on project ownership is a multi-pronged approach designed to ensure longevity across multiple generations. We have built a business model that not only generates wealth for the present but also preserves and grows funds for future owners. By focusing on ownership that spans decades, the project strengthens one of its core strategies—durability through long-term planning and sustained growth. This extended ownership horizon is a key component of our strategy to weather market turbulence and ensure lasting financial stability for future generations.
Strategy
Is rooted in thorough research of past and current economies, economic cycles, and market trends. This research-driven approach informs our investment-first methodology, guiding us to make slow, deliberate decisions that align with our long-term goals. By setting clear objectives and consistently assessing our progress, we can identify the strategies that deliver sustainable growth over time. Additionally, we analyze a broad set of economic indicators, including government and industry reports, to build a well-rounded understanding of the market and its potential impacts. This comprehensive view enables the project to adapt and thrive in changing economic environments, ensuring that our strategy remains aligned with our core mission of building long-term, multi-generational wealth.
The projects five-pillar business strategy establishes a durable and resilient model designed for long-term growth. By prioritizing slow, organic development, an adaptive investment portfolio, and a sustainable income-generating business, The project is well-positioned to navigate market fluctuations with confidence. Its multi-generational ownership structure ensures lasting stability, while a strategy grounded in thorough research and methodical decision-making keeps the company focused on its long-term goals. This comprehensive approach positions the project to endure economic cycles with minimal effort and steadily build value across generations.