I live in Pennsylvania, the “Keystone State,” which inspired me to consider the keystones of
business strategy. It’s so important, in the world we live in, to develop strategies that work in
any economy—whether it’s up, down, or sideways. This year, we’ve seen chaos in the economy
and in our daily lives, and I think many people awoke to the need for a solid foundation, and
solid financial strategies to match.
So What Are the Keystones of a Strong Strategy?
Clarity is a must amidst the chaos. Clarity in our personal lives, but also clarity in our
strategies. It’s important to know clearly what you want your life to look like, what your
mission is, and how you plan to see that mission through. Know what you’re doing and why
you’re doing it, and then take the appropriate steps to fulfill the life you desire.
In order to build a life by design, you can’t allow life to happen to you. You must be
deliberate and intentional, every single day. By having this kind of clarity, you empower
yourself and the other elements of your life—allowing you to get clear about what your
future will look like, your family, and your day-to-day.
Additionally, clarity requires that you know what you have and why you have it. Do your
assets work together with a purpose, or do you have a vague string of investments and
assets that don’t really make sense? Clarity can improve all aspects of your life by providing
certainty and confidence.
The next keystone of a solid strategy is control. And in this case, I’m talking about having
control over your greatest asset—yourself. There are so many little things that can distract
you throughout the day, and without control over your emotions, thoughts, or mindset, you
have a harder time finding success.
Then, once you do that, look to the other areas of your life you can control. You have
control over your money, your cashflow management, and risk management. Although you
can’t dictate the risks, you can ensure that you have the ability to manage them
Next—do you have control over your taxes? You have more power than you think to control
when you pay taxes and how much you pay. Ask yourself—in your overall strategy, do you
pay taxes on the seed or the harvest? You should also seek to have control over debt, for
that’s something that can easily control you. When you’re in control, debt can be a
multiplier of wealth. If debt controls you, it can bury you.
And lastly, do you control your investments? Whether you’re directly calling the shots, or
partnered with an expert, be in a position of control.
This is my favorite topic of all time. I’ve spoken and written numerous times about this
topic, and how to leverage collateralization. Essentially, you use an asset you already own
as collateral to purchase a new asset. Business owners can use a line of credit secured by
the receivables and the assets of their business to then leverage and use for the acquisition
of new assets. Or, they can get a loan secured by the receivables and assets to buy the
building from which the business operates.
You can collateralize stocks, and invest in real estate with the loan you secured from your
stock portfolio. The same can be done with assets like gold and silver, which is often called
commodity backed financing. Cryptocurrencies, CDs from the bank, and even your home
equity can all be collateralized. My go-to asset for collateral is the cash value of my whole
life insurance policy, and the strategy is called Infinite Banking.
Collateralization is key to any wealth strategy. Having your money doing many, many
different things simultaneously puts your money to work for you.
Are the investments you have and the projects that you’re doing congruent with your
vision, your Investor DNA, and your principles? In one of my companies, when we sit down
with clients for a strategy review, many of them are surprised to realize that they’re
investing in things that don’t really align with who they are.
This not only affects how the world sees you, but can actually derail the things that you
want to champion. If you’ve achieved clarity of purpose, you should focus on purposeful
investments and projects.
Cashflow, cashflow, cashflow. This is what everything is built upon. When money is
stagnant, it loses value. It’s imperative that your money is in motion. Because of the world
we live in, you can’t just stash money away and expect it to grow into a mountain. Growth
requires an intentional approach, and your cashflow depends on a carefully crafted strategy
- where your capital is positioned
- what you invest in
- and what makes sense from a tax standpoint
Then you must be very clear as you structure your cashflow management system, so that
you maximize the velocity at which money moves through your personal, business, and
Those are the five components of the strategy keystone. As you form your own wealth
strategies, I hope you keep these in mind—clarity, control, collateral, congruency, and
You can listen to my new podcast, Cashflow Investing Secrets here.
Live your Freedom, Live Your Legacy, On Your Own Terms,
M.C. Laubscher is a husband, dad, podcaster & Cashflow Specialist. He helps business owners and investors create, recover, warehouse & multiply cashflow. You can learn more about exclusive cash flow strategies in M.C.’s new video series at https://www.yourownbankingsystem.com/
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