Lessons from Nature Podcast

Cloudminer: Observation 35. Optimizing Business Systems by mining money from the future. 2018

April 10, 2024 Mark Rubin Season 1 Episode 35
Cloudminer: Observation 35. Optimizing Business Systems by mining money from the future. 2018
Lessons from Nature Podcast
More Info
Lessons from Nature Podcast
Cloudminer: Observation 35. Optimizing Business Systems by mining money from the future. 2018
Apr 10, 2024 Season 1 Episode 35
Mark Rubin

Observation:

The key observation in this story is the innovative approach to business efficiency through optimizing the movement of jobs from the future to the present, thereby securing income that could otherwise be lost to future cancellations. This method, demonstrated by the "Cloud Miner" software, effectively increases income velocity by forecasting and preemptively managing potential losses, essentially "mining money from the future."

The Lesson:

Efficiently managing and predicting business activities can significantly enhance profitability and reduce potential losses.

How this is Helpful:

  1. Efficiency: Understanding and implementing time and resource management.
  2. Innovation: Embracing new ideas and technologies to improve business.
  3. Forecasting: Learning the importance of predicting and preparing for future events.


Questions for Reflection:

  1. Future Predictions: How can I better anticipate and prepare for future possibilities in my life or work?
  2. Innovative Solutions: What new methods can I employ to solve existing problems?
  3. Resource Optimization: How might I use my current resources more effectively to achieve greater outcomes?


For more ‘Practical Dreaming’, visit https://www.markianrubin.life/practical-dreaming 

Show Notes Transcript

Observation:

The key observation in this story is the innovative approach to business efficiency through optimizing the movement of jobs from the future to the present, thereby securing income that could otherwise be lost to future cancellations. This method, demonstrated by the "Cloud Miner" software, effectively increases income velocity by forecasting and preemptively managing potential losses, essentially "mining money from the future."

The Lesson:

Efficiently managing and predicting business activities can significantly enhance profitability and reduce potential losses.

How this is Helpful:

  1. Efficiency: Understanding and implementing time and resource management.
  2. Innovation: Embracing new ideas and technologies to improve business.
  3. Forecasting: Learning the importance of predicting and preparing for future events.


Questions for Reflection:

  1. Future Predictions: How can I better anticipate and prepare for future possibilities in my life or work?
  2. Innovative Solutions: What new methods can I employ to solve existing problems?
  3. Resource Optimization: How might I use my current resources more effectively to achieve greater outcomes?


For more ‘Practical Dreaming’, visit https://www.markianrubin.life/practical-dreaming 

00:00

My name is Mark Rubin, and I'm a dream weaver. I hope these widgets help you weave your dreams into reality. This is a story about mining money from the future. No joke for actually doing this and creating money, with this process, creating millions of dollars so far. And this is a story about something practical that I made to demonstrate my ideas about business visualization, and energy optimizations. And this story occurred after I created software called visualizer. I created I started working on visualizer, in 2016, and spent a ton of money and basically had one meeting at Salesforce with a guy named Peter Schwartz. And basically, the first thing he told me is that he was retiring in three days, that was an unexpected twist in the storyline of my life. But when I left that meeting, I was on the plane coming back from San Francisco. And I was thinking, I should make something practical. The software I created before visualizer creates a visual spatial model of business systems, a scale model, that shows the value of the money flowing through the business and the processes that move the money. And the performance of the people out each step in the process, and a timeline of everything that's happening in the order that things happen and why they happen. And color coded them in a way that makes it easier to optimize things because you can understand how everything connects. Now, that is, I think, a beautiful way to look at a system. But what it didn't do is tell you what to do next. That was the feedback I got from Peter Schwartz and a couple other people about visualizer. So on the way home from this meeting, I decided I'd make something practical, which is now called Cloud miner, and cloud miner, what it does is it takes the ideas that are in visualizer in terms of identifying opportunities, and automates them, and automatically does a magical thing. And the magical thing it does is it prevents future cancellations. So I'm going to describe this software cloud liner of how it works. And how this software creates money. If you imagine in a business, that there are customers scheduled for today, right now, like right now in the world, I have 400 trucks driving around, picking up stuff at customers houses today. But three times as many customers as there are today, or in the future, they scheduled for tomorrow. And the next day. And the next day, the next day, out a week or two these people have scheduled in the future, they don't want to go today. For some reason, whatever the reason is, they don't want to go to that usually because they're moving in the future or something's happening in the future. And so the timing is important. But what happens is, for customers that are scheduled in the future, they have an escalating cancellation rate, which means the more time a person has to find a less expensive way to get rid of things, in my case, they'll find it increases the chances that they'll find a way to get rid of their old bed for free. In this example, instead of hiring a company like mine, to come and get their old bed, we measure this the rate of cancellation as a function of time in the future, which in business terms is that there is a sales funnel, which is a people in series of stages coming into the business. And the stages are first there are aware of the business. And then if they have a need for it, they become a lead, which means that they are are a schedule that I have. If we show up at their house, they become a job, which is work that we're doing. But they're not a customer yet. Only a customer after they pay us can then become a customer. And then we take that money, which is called revenue. And we spend most of it to operate the business and whatever's leftover is called profit. And that's on the income statement side of the business. And so what happens in a business is the longer people are on the sales funnel, the more time they're sitting in the future, the greater the chance that they'll or cancel. And some real numbers go like this is that if a customer books a job today for today in my business, there is a 90% chance that that job will occur. It's only a 10% cancellation rate. But going out one week, there's a 35% cancellation rate 35% of the people that booked today, or one week from today cancel, because they found another way to get rid of their stuff. And so what this means is if if I can move jobs from the future, and today, in this example, seven days out, I can create 25% More money. Now, not everybody wants to move to today. The question is, how many could I move? And how big of an impact could that have overall on my business? And so I created software, called Cloud minor, what it does is it analyzes all the jobs in the future. And it looks at where the trucks are driving today to pick up customers objects today. And it looks at where are the jobs in the future? Like geographically? How many jobs are we driving past today? Where are the items located? Are they located on the driveway? On the street? Are they outside in a shed? Does the customer even need to be home for us to pick up their items, or other things like how many days in between that day, and the last time they used us and lots of different variables. And I rank these opportunities in two ways? Basically, their likelihood of canceling. And their likelihood of saying yes, they would like to go today, these two things. And I created the software to automatically text, these customers that are already on our schedule. And ask them through various short SMS messages. If they want to go today, even things like we're down the street, we can be there in five minutes. Do you want to go today? Or driving past your house? And or do you want to go today? Would it be helpful if you went today? Can we help you better if we went now, these kinds of things. And the software moves jobs around. And by moving these jobs from the futures to today, it creates money. And so far proven overall, in the current state, it's created between five and 7%. more revenue, the business does over $100 million in revenue. So this has been beneficial for the business. And the idea is that if we don't move the money from the future, today, it evaporates later. This is the same philosophical idea identical to having a reservoir of water and having a turbine at the bottom of a dam. And every day water is evaporating off the top of this dam. Every day that the water sitting in the dam, there's less water that flows through the turbine, even though water is filling up this dam at a rate but assume it didn't seem it didn't in this case is that every day that water that you don't push through the turbine to convert into electricity, which gets converted into money from a power company every day you have less water in the dam. And if you can understand that philosophical concept, then understanding that the velocity of the water flowing through the dam, how fast you can push it through the dam. And how fast you can push future customers through a business. It's the same story is that by capturing the energy today, you prevent it from evaporating tomorrow. And this game that I created has made me carbon negative for life is that I use some of the money that I created using Cloud miner to undo my lifetime carbon footprint many times over. And that was important to me to both demonstrate my ideas, but energy optimization, creating money in this way, which is money that we would never have gotten had it not had the software not been created. So basically creating a tool to create money that would have evaporated later so that I could use some of that money that I created this way to undo my lifetime carbon footprint. enlarge my ego project with this idea. I'm happy that I was able to create something practical. I'm happy it's being used. I'm happy I We'll be adding AI to it in the coming months and making it even more efficient life is lucky