Flee Your Failing Business

Flee Your Failing Business | The Kitti Sisters

EP212: Flee Your Failing Business


Hey hey!!

Do you know why so many businesses either fail, or fall short of their fullest potential? 

It’s all about the business model. 👌

You see, entrepreneurs often focus on the wrong priorities when starting a business – making them miss the mark of what truly leads to growth and success. 

So, what SHOULD be the focus for pursuing maximum revenue and business success? 

When it comes to growing a successful business, you’ve got to have a plan. 

A solid business model offers a roadmap for navigating the challenging parts of running a business. 

And let’s be honest…there are maaaany, many challenges. 😅

But by prioritizing the right things – like profit margins, repeatable revenue, predictable cash flow, and scalability – you can lay the groundwork for long-term success. 

So, let’s chat about it! 

Set yourself up with the best chance of wealth, growth, and the financial freedom you’ve been dreaming of. 

We can’t waaaaait to watch you soar. 

Here’s to beating the odds by building a business that lasts. 🥂

Palmy ➕Nancy
The Kitti Sisters


  • In our latest episode, we’re here to challenge conventional views on entrepreneurship by exploring robust business models for success.
  • We’ll delve into crucial aspects such as profit margins, repeatable revenue, predictable cash flow, and scalability.
  • Discover how to construct a top-tier business model that ensures consistent revenue, provides tax advantages, and remains resilient during economic downturns.

Flee Your Failing Business

💭👀 What do you think of when you hear the word ‘entrepreneur’?

Do you think of a big risk taker, maybe someone super innovative, or maybe the person who was top of their class getting an MBA at Stanford?

Whatever the case, we are here to tell you that being an entrepreneur isn’t what you think.

Maybe you’ve thought about breaking into the world of business yourself, or maybe you’re already there, knee-deep in the grind.

We hate to break it to you, but most businesses don’t make it, or they hang on by a thread, barely scraping by. As bleak as that sounds, the good news is that a small handful not only survive, they actually THRIVE.

So what’s their secret?  😝😝

Well, believe it or not, it’s not some secret sauce that only the elite are entitled to.

At the end of the day, it really comes down to their business model and the profitability of that business model. 

You see friends, that business model and the strength of it holds the key to lasting success and profitability.

And in today’s episode, we’re going to talk about the top things your business model needs to elevate your business.

But first, we want to talk about one of our favorite topics, shopping. 🛍️

Have you guys heard of or used the new shopping app TEMU? 👈

If you haven’t heard of it, basically the app gamifies the buying process, and it’s totally taking the US by storm.

In fact, in December 2022, it was the most downloaded app in the US.

It might surprise you to hear that this business model is built on incredibly thin margins, but the reason for its success comes down to sheer volume. 

Think of it like a powerful vacuum; their business needs constant new customers to survive, and if they can’t maintain the momentum, they collapse. 

What a stressful way to run a business – and live life!

Profit Margins

There’s a simple fix to avoid this, and it’s profit margins.

Quite simply, you must make sure that your business provides good profit margins.  😍😍

Think about it, higher profit margins are what allow you to invest in other things that will benefit and grow your business.

Things like more staff, research and development, and even your customers.

If you’re able to do so safely, close your eyes and think about a company you are familiar with that provides exemplary customer service. What comes to mind? Now, think about a company or companies that have an incredible amount of brand loyalty.

What comes to mind now?

For us, we think about brands like Apple 🍏 and Disney, both of which have mastered the art of profit margins and in doing so, provide experiences and products that not only exceed our expectations, but they have gained our loyalty for life.


Okay, loyalty and profit margins are great, but what else makes a business model successful?

Have you ever used a cast iron skillet 🍳, or maybe a Dutch oven to cook something?

We bet you only own one because while it’s wonderful and very useful, it’s also a super specific product that you only use rarely. 

This isn’t your French press or Nespresso machine that you are busting out on the daily.

Not only that, our friends the cast iron skillets are incredibly durable and sometimes passed down for multiple generations.

This means that if you are Staub, you have a product that isn’t typically repeatable, making it a less effective business model.  

It’s a great product, it just isn’t something that you need to buy often, meaning that you aren’t getting recurring revenue from customers.

By contrast, think about the iPhone. 📱

Not to be a broken record and use Apple again, but it fits this example so perfectly. 😂😂

It’s almost like iPhones were made to break down literally as a new model is released every fall. 

Phones that were seemingly perfect seem to start having glitches, we drop them one too many times, or maybe we just can’t live without the newest wide-lens camera. 🤣🤣

No matter what the case, this is a highly profitable business model where customers are buying 12+ iterations of the same exact product – and feel like they are winning every time. And THAT is just good business.

Predictable Cash Flow

Do you guys ever get hangry?

We sure do‼️

In fact, when we were kids, we would get SO mad if our mom promised us something for dinner and then ended up making another.

We didn’t care about her trips to the grocery store, or the time it took to make, we just wanted what we were promised! 😑😑

And you better believe it when we tell you that no one wants to be around us when we are hangry.

The same thing holds true in business.

If you anticipate your cash flow being one thing and end up with another, it’s disappointing, stressful, and downright infuriating.

So you need to make sure that your business produces predictable cash flow. 

Think about your favorite food.

What comes to mind?

Mexican? 🌮

Sushi? 🍣

Italian? 🍕

How many times a year do you really eat out and enjoy that favorite food?

Maybe a handful, if you’re lucky.

You might be the best restaurant in your area, but you still might not have a predictable cash flow.

But guess what does?

With 🏢 multifamily apartment investing, you tenants usually sign up for a minimum of 12 months lease which translates to 12 months of recurring revenue, no matter what. 

Maximum Profit

If you’re thinking great – but I’m only one person –  we are here to remind you that you’re not alone!

In fact, this business absolutely shouldn’t be driven by one person; you have your team to support you and your property management team. 

And listen, if someone has told you that there is a higher barrier to entry in this market, that’s a good thing!  

You WANT to have a business model and a business that not everyone else is doing. 

Not only that, but in addition to all the other perks that come with multifamily investing, you have a business model that is completely scalable to your needs and your capacity.

Real estate isn’t for everyone, but we love to talk about riches in niches, and for us – the profit margins are great, but it’s unique enough that the Jeff Bezos’s of the world aren’t going to be our competitors.

If recession and the economy are a concern for you, the great news is that a well-managed multifamily property with a diversified tenant base, in a stable location with a strong rental market, is far more likely to weather economic downturns successfully than a lot of other asset classes. 😌😌

On top of that, investing in multifamily apartments offers great tax advantages like depreciation deductions, interest deductions, and expense write-offs, which reduce your taxable income. 

For us, it’s a no-brainer, and we feel confident that the entrepreneur in you will thrive using this type of business model. 😏😏

If you want to learn more about how we’ve structured our business over the years, make sure to check out our website, listen to our podcasts, and view more episodes right here on our channel. 

Now that you’ve learned how to model your business for maximum profit, it’s time to turn that profit into real estate gold.  

If you want to learn more about how we’ve structured our business over the years, make sure to listen to our other Cashflow Multipliers episodes!


Source:  Freddie Mac [Annual Supply as a % of Current Inventory and YoY Rent Growth]

According to Freddie Mac’s Multifamily 2024 Outlook, cities like Salt Lake City, Nashville (Tennessee), Austin (Texas), Charlotte (North Carolina), and Colorado Springs (Colorado) are expected to see a lot of new property development, with each city having more than a 5.5% increase in new housing.

➡️ Conversely, cities like Tulsa (Oklahoma), Rochester (New York), Long Island (New York), Syracuse (New York), and New Orleans are predicted to have very little new property development, each with less than a 0.4% increase in new housing.

fascinating stats

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We're Palmy ➕ Nancy Kitti 〰️ The Kitti Sisters

A sister duo team obsessed with all things financial freedom, passive income, and apartment investing + apartment syndication, who turned a $2,000 bank account into a nine-figure empire.  Now, we're sharing with you the behind-the-scenes secrets of our wealth building strategy.

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