The Man That Makes Millionaires: Turn $0 to $10k With This Step By Step Formula! Alex Hormozi

if you want to make more money you might want to consider doing this so number one is hold that thought for just a

second because the thing that comes before that is this grow of yours oh God this is the entrepreneur life cycle and

there are six stages now the vast majority of people get stuck on stage three and I've made some of the biggest career mistakes at this point and you

end up living the same 6 months for 20 straight years suffering until you learn how to break free from it I want to go

through the whole thing this is going to be awesome Alex horos is the master of business strategy an autist in tring

companies into the millions and a leading voice in how to craft your way to success he's an entrepreneurial

Powerhouse whether you're starting out or want to go from 1 million to 10 million there are certain behaviors and actions that will increase the

likelihood of success that we're going to go through but here's the really hard truth that a lot of people don't like talking about entrepreneurs must be

willing to make impossible choices have the courage to be willing to be wrong have Shame by failing at things in front

of people whose opinions they care about and that fear keeps people stuck in a job and a life they don't want for years

and that was my path I had a white collar job condo overlooking the city everything's according to plan and I

remember thinking like I didn't want to be alive cuz I was so afraid but once

you get over the fear it unleashes this whole new realm of possibility of being able to do what you want and that is

when you can learn the real game of Entrepreneurship such as knowing that business ideas typically come from one of three piece and you only need one of

those three and then there's the four RS for customer success how to learn new skills quickly how to stand out in a competitive market the winning strategy

for 2025 and so much more so where should I start

I have been forced into a bet with my team we're about to hit 10 million subscribers on YouTube which is our

biggest Milestone ever thanks to all of you and we want to have a massive party for the people that have worked on this show for years behind the scenes so they

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Subscribe button actually this is the first time I'm going to tell you not to subscribe because it might end up

costing me an [Applause]

[Music]

awful Alex if someone's just clicked on this conversation and they're considering listening for the next

couple of hours based on everything that you do for the millions of entrepreneurs that follow you that read your books can

you tell me exactly why you believe they should stay and listen and who should stay and listen at

acquisition. we scale businesses the content that I generate that we put out conversations like this

helps people who are going from Z to one just getting off the ground to helping people go from 1 million to 10 million

um to helping the entrepreneurs going from 10 to 100 either get there or exit along the way and there are Frameworks

that cross all three of those that I consider both deep and wide um that help

any business navigate whatever strategic decision is in front of them to get The Highest Potential return for their time

and so if you're listening or watching then if one of those Frameworks applies

immediately to your business and allows you to pull five years forward in your career I would say that's a pretty good

return on time for the people that are at zero yeah what is it that they're typically coming to you to help them

with so if you were one of them yeah what is it that they want from Alex hzi

I think it's um there's what they think they want and what they actually need um

which are two different things and so I think what they think they want is uh

some tactic that's going to immediately help them start a business um what they

typically actually need is um the courage to be willing to be wrong and to

be willing to have Shame by failing at things in front of people whose opinions

they care about and I think that's like if I re rewind the clock for me it was

probably one of the hardest things that I had to get over and so I think that's why maybe my message resonates with a lot of people is because it was so hard

for me um to get over and what's interesting is basically anybody who's listening the harder it is for you to

break free of whatever kind of mental prison you've made for yourself whether that's real or just in in your head

the more compelling your story will be when you break through it um because it will resonate with even more people uh

for the people that it was easy that their story doesn't have doesn't have a lot like I was immediately an entrepreneur like I wasn't like that I

had a job when I was in high school I had a job immediately out of college some people were like I was selling lemonade out of the back of my you know

thing when I was 13 I didn't do any of that like I School failed me I actually was pretty good at school uh I didn't

have any of those issues you know what I mean and so I had a pretty clear career path and so I had many would consider

like I had a real opportunity cost so I had a white collar job and I had uh a

GMAT score above Harvard's mid score and so I had a a really clear path of what my life would could look like in the

next 20 30 years and it was fairly well defined like I'll go to Harvard or Stanford or one of the top Business

Schools and then I will either go back into management consulting or I'll go into Investment Banking and then eventually end up in private Equity um

and that would be the path right and then all the flowers would be set at my feet and you know everyone would say we

approve of you you're an excellent person but when I saw the people who were 20 years ahead of me I really

didn't want their life and then it started making me look at my life and I was like I don't even know if I really want my life um and so the the big

decisions that I've made in my life unfortunately um have almost always come at the at the the doorstep of a parent

death um and I think maybe in some ways that makes me a coward uh for having

needed death to make decisions and so operational realizing that has been

something that has helped me move faster to make decisions that I know I need to make but don't and so like the first big

kind of like what felt like a death decision was um I was a consultant 22 is

years old I had a paid for you know condo that I bought uh overlooking the city and I remember thinking like I

really hope I don't wake up tomorrow and that and I don't mean that to be melodramatic it just I just for a period

of time I just always just like hooped every night I was like I just really up I don't wake up tomorrow like I just don't want to do this and what was

difficult about that was that at that time was when my father was most proud of me uh because I was doing everything

that was according to plan you know he could talk like his son who graduated in three years from Vanderbilt had the had

the good job like everything was we're following the plan um and it was upon

realizing that my ultimate expression of living out his dream was me feeling like

I didn't want to be alive and so in and it took me time to get to that point to

even articulate that because obviously you never want to kind of like admit failure of like I have really messed

something up here um but I was living my life to win someone else's game and when

I realized that I realized that one of our dreams had to die either his or mine

and when I realized that his dream must die in order for mine to live was a a

statement that I kind of crystallized when I was at that point in my life like I had to keep repeating that like his

dream has to die in order for mine to live and so to put this in perspective of like how afraid of my father's

judgment I was I left the state and drove across the country halfway through before calling him to tell him that I

was gone and so I I bring this up because I don't try I'm not trying to be dramatic here but I'm saying that if you

feel a lot of pressure I get it like I tried to leave the job that I was at to pursue just literally anything that

wasn't that just I wanted to start a business at some point I didn't know how I was going to do it I just knew that what I was doing was not the path I

wanted to be on and everybody around me wanted me to be on that path and so I went to go be like hey I'm thinking

about doing something else and you know it would always be that ah you know don't later later like everything's good

later you know and um I remember when I called my dad and I told him that he said understand why don't you come like

come home well uh well I didn't tell him that I was I was gone yet like I said hey I want you know I want to go pursue

this Fitness thing um he said cool come over for lunch we'll talk about it you know and and he

and I was like I'm I'm already gone and then obviously his tone changed a lot um

and um and you know our relationship struggled for you know years after that and I I also bring that up because

sometimes there's this illusion that like you know you get on the on the Oscar stage or whatever it is and you're like hey I just want to think you know

my mom my dad my friends for always supporting me and um I can't say that

and I wish I could and you might not not be able to say that either and I also don't think that's a reason not to do it

and so um we did struggle for years after that to kind of like because I was basically living as what was once his

prodical son uh goes and takes a minimum wage job as a personal trainer at a gym uh like you know cleaning floors and

stuff to learn just to learn the gym business um but that was ultimately like how I broke free literally you know

physically uh leaving the area and you know mentally but I think that I had to

accept that there was a there was a timeline where my father would never talk to me again and I had to be okay with that um to

pursue what I wanted and I think that when you ask the original question what are the people from 0 to one really looking for I read tons of business

books at that time but I couldn't use any of them because I was so afraid and

what's crazy is that like I think about it now in retrospect and it's like it's crazy how large the perceived monsters

can appear and Leila has this quote that I love but it's um is a mile wide an

inch deep and so you look at it it looks like this ocean and then you take the first step and you realize you don't

drown because it's like oh there's ground underneath of this right there's other people who are more on my path and

the friends you lose you gain new friends right and so um that

fear was the hardest decision that I've had to overcome in my entrepreneural career and I think of all the of all the

the split paths in my life that was the one that if I had many timelines or many universes that existed that was is

probably the one that is the most likely that I would not have parted from so I think in like 90% of universes that Alex

rosi exists I'm just a consultant somewhere and so um I would encourage you if you do feel that you're not going

to die like you won't die and you might just live it's so interesting because I think

everything you've said is just absolutely spot on but you're right in way you say that if you'd asked an audience member listening now why they

haven't started yet they would say fear they would say I haven't got the X I

haven't got the Y but actually it is such an emotional thing and we don't talk about that enough because uncertainty is humans seem to be

allergic to uncertainty and they'd rather the certain misery of their current situation typically than

uncertainty and I think um and I and I used what I consider a very non-p

palatable word of coward purposefully because no one wants to say they're

afraid because if you say you're afraid then it means you're a coward and I think that it only means coward if you

don't if you allow that fear to change your behavior in an aversive way as in

it not towards what you want and so you know the inverse of that many people have heard it Courage is not acting um

without fear but despite fear um and I think that um when you

act when you allow fear to change your behavior the wrong way that is when you

can give yourself that title of coward and I think that that is a title that I feared my whole life and that label is

almost I'm more afraid of that label than the label of failure I'd rather be

a failure than a coward is there a framework for knowing when to

quit so I think there's the there's like the math behind it and the math I think is pretty straightforward so like when

do you quit your business I like you've saved up three to six months of personal

savings number one number two is that you have started something because nowadays in the digital age you can

begin a business on the side that can generate income and that income um in

the small amount of time that you're not working uh replaces or at least matches the existing income you have from your

your current job and you've been able to do that or demonstrate that income for like 3 to six months if you do that

that's a very like math way of approaching it that also is basically never the reason that people aren't quitting their job right like that's a

really s like I have I have I have backlog I've matched my current income with my part-time work and if I just put

my full-time work I would probably make more very reasonable but never actually the reason that people don't do it I was

I was thinking about the two sort of reasons why someone might quit something or feel like they want to quit and one

of them is clearly because it's hard and that's obviously not reason enough to quit and then there's another one which you are speaking to there which is it's

not moving me towards a meaningful goal irrespective of how hard it is like a marathon you're raising money for a

charity you care about it's hard but you don't quit yeah and then there's maybe if you're running a marathon for no

apparent reason you know there was no charity there was no one watching there was no like Fitness benefit then that's

a good I guess moment to consider quitting um my story mimics yours in a

way that I didn't realize I didn't realize you went through a similar thing in terms of call the parents disownership yeah um no real great

option to to flee to but feeling like the current path that would have led me to be I don't know business management

student was significantly worse on balance than taking the risk but I think

maybe a point of Distinction is it didn't I was so naive that it didn't feel like a risk yeah so what's really

interesting about that is um the guarantee and so a lot of times we don't

we don't look at what I call the don't which is like the the alternate path and so if I had played out my existing path

I had a guarantee of outcome I didn't want it was just out a delay whereas here there's a chance that

I can make it and so one of the final kind of framework for making the decision was guaranteed bad chance at

good and I was like well I might as well take a chance and I I strongly um

encourage thinking about uh playing it out and so what I mean by that is like I

think fear exists in the vague not in the specific and so when you say I'm GNA

quit my job and then what if this doesn't work I'm GNA failure tons of fear

if I say I'm going to quit my job and then I'm going to try and start a business and if the business doesn't

work I'll probably have a compelling story that I could tell for business school if I wanted to to show that I had

some entrepreneurial slant in the meantime I could use that experience plus my job experience to probably get

another or maybe even better job in the meantime and match or or supersede my existing income and the actual loss

would be maybe the savings that I had saved up but if I'm younger or I haven't made as much money as I want then that's

never been the amount of money that would be material anyways on the grand scheme of what I would like to make um and in terms of living situation I will

worst case go back to my parents house with my tail between my legs or sleep at

a friend's couch because I have enough people that would be willing to put me up in a garage if I had to and so it's

like okay so my actual worst case scenario is just like I have a cool story and maybe some shame that I is

self-inflicted cuz it's not like no one else cares really but it's self-inflicted shame and maybe a detour or a different story

that I have to tell later on in my career not as much fear there right but

like the first one like I'll fail everyone will hate me and I'll die the first one sounded like it was written by

your like amigdala like the Fierce and the second one was pure like prefrontal cortex it was all logic yeah and I'm

wondering you know as you're going into that decision obviously fear is going to lead it so of course you're going to go for option one where you just think about the downside maybe there's a

practice that allows you to get into your prefrontal cortex into logic and I think that's I actually so I think you nailed it and said it way better than I

did but I think that's I think going from vague to specific basically disengages your mdala because it's it

can't reason the logic chain of causation and causality of what's going to happen next in a chain of events and

so when you get into the specific of it all of a sudden you're like okay I'm not

going to be homeless and then shamed and die um I might live in inferior living

conditions for a short period which by the way when you're later on in your life you'll look back and think of as the good old days cuz I can't believe I

was couch surfing I was pursuing my dreams right it's it's only like in the moment that it feels bad when you look

back like even I I find this hilarious like like how long after you do something embarrassing is it

funny right like at at some point for almost all of us with enough time the shameful experience becomes funny and so

if it is going to become funny eventually it might as well become funny now yeah and so it's just like pulling the time Horizon up but all of that

prefrontal cortex decision making and so um no but I think that's exact like I think that that nailed it because when I

thought about this this decision obviously I had my very you know emotional statement around like his dream has to die for mine to live yes

also logic downside risk here I'll have a story and I can always get my job

back okay and if I can't get that job back I'll will have other ones that will be available fine and if I have a

downgrading and some people think that I'm not as successful as then okay I'll not stop though and so I think that that

that demystifies a lot of the fears I think that applies not just for entrepreneurial fears I think applies for any fear like I'm going to talk like

I can't tell this person this bad news all right let's play it out I say something and then they're going to kill me probably not so what's going to

happen I'll say these words and then there they they they'll flip the table they'll they'll flick me off they'll

maybe just feel hurt and maybe they'll cry maybe they'll shout okay okay if they shouted at me what do I do like and

you just kind of play it out and you're like okay I think I have like most of these conditions prepared for and then

all of a sudden you can like have those things what you also said is that in the face of guaranteed misery any option is

better yeah like it's real you get to live once yeah so like why would guaranteed misery be better than any

available option it's delay discounting that's what's crazy is delay discounting happens both ways like um so like you

set your alarm for 5:00 a.m. at night and you're like I'm going to wake up at 5: but that's because you're delaying

the pain of waking up and when it's immediate when I have to quit the job like I'll quit my job tomorrow for 20

years and so it's just like we always we we we delay the fact that we're going to be miserable into the present uh to like

a like we we massively discount what a whole lifetime of misery would be amen

when you're thinking about what to pursue so say you've left the job you've quit the thing when you're thinking about what to

pursue how much of that is a decision derived from self-awareness

because you know they'll someone will look at you now and be like Oh No Alex did this so I'm going to start a acquisition. comom you know or they'll

say um I want to I saw Steve Jobs did that thing with the computers I'm going to start Apple yeah right or Elon I'm

going to do the spaceships how much do you have to know thyself to know what to pursue man this is a really good

question so um there's a tweet that I love by Andrew Wilkinson which is um

every entrepreneur ever colon here's the winning number for my lottery ticket and

so it's like every entrepreneur will say here's the winning lottery ticket but it's like that game already that drawing

already happened ah okay yeah right and so like you can't cash that ticket in it's already done and so people say the

word first principles no one really knows what it means uh I mean some people do but the I think far more

people say it than know what it means and so basically there are foundational truths of business that that exist and

the conditions of the environment will change and so you have to apply those truths to whatever the current condition

is and so that's what I try and tease out with the books and the stuff that I that I put out in content but at the end

of the day you have an input of time like zooming all the way out if the goal assuming that your goal is to make money

okay like and this is just a purely economic business goal then you have time which is the primary currency that

you trade it and you make dollars over a period of time and so I tend to reject the idea of like never you know never

trade time for dollars or anything like that because everyone trades time for dollars it's just some of us are more

efficient at it than others but even exchanges that occur that just are not denominated in time still occur over

time and so uh you have this foundational unit of time which you're going to give in what we're seeking is

the highest return on that time and so there you know within a business context

there's kind of three levels of uh things that have to occur in business you have to you know attract attention you have to convert attention then you

have to deliver something uh for that attention and in each of those things you want as much leverage as possible so

you want as little time as possible required to get the most output and so I have built acquisition. comom on

basically two primary thesis uh which are in the logo which is this is a full

Crum for leverage for people that can't see it's like a triangle yeah so it's like a triangle or the Illuminati

because that always gets brought up um right so we've got the full Crum for leverage and then inside of it you have

supply and demand and I see those as the two foundational principles of business and so which is you need supply and

demand to have a business and then leverage to get as much out of it as you possibly can and so um when you're

looking at the assets that you have assets can also be skills resources what you have available to you now if you

have nothing then all you have is your brain your hands and the time that you have that you can put towards learning something which is why I'm a big fan of

skill acquisition as one of the the primary things that you can do is educating yourself and not formally educating but informally or

alternatively educating yourself on super tactical things uh once you get over the fear then you start asking okay

okay how do I let people know about my stuff and what do I let them know right and so you have to have something to

sell which is the offer and ideally you want the offer to have as much leverage as possible like so if you sold software

or you sold media those are things that you can U cut once sell sell a thousand times um if you have a conversion

mechanism it's like you can have it be automated like a check out page or some sort of video sales letter or something

like that where people just buy without a phone salesperson if you add a phone salesp person there's less leverage not to say this wrong but you you want to

have the highest leverage opportunity and then from a um from the deliverability expect uh perspective um

I kind of talked about deliverability first but uh from the advertising perspective uh if you reach out to

people one-onone that's lower leverage than being able to make one piece of content that a million people see right and so over time you go from low

leverage to high leverage uh where you have the same inputs but you just get significantly more for your output and

that fundamentally is like if we're reasoning up from first principles how do I get the said differently the

question someone I think is really asking is how do I get the most for what I put in and you have to reason within

your current context of your skills and your resources and your assets in order to derive that solution for you so if

someone walks up to you in the street and they say Alex what idea should I pursue I've just quit my job yeah right

so I would say um business idea is typically come from one of three PS so it comes from a pain that you're

currently experiencing a past profession so the thing that you just quit or some of the jobs that you just quit or a

passion MH so it's something that you're inherently interested in that you would spend your time doing anyways uh some skill that you learned

while you were in the workforce which by the way is one of the most proven ways of making money because the economy has already showed you that people are

willing to exchange money for that for that specific job and so uh in the world

of gig economies and solar preneurs every business can be dismantled into just jobs being done and all of those

jobs can be fractionalized so anybody like we look at any business you've got sales you've got you've got marketing

you've got customer uccess you've got you've got customer support if you want to differentiate that you've got product you've got design you've got web pages

there's you know there's so many different components to a business you just need to learn one of them and then it's like boom you have a skill that you

can trade for money that you don't have anybody else to report to um and then pain is usually I think um in some ways

um sometimes one of the biggest drivers it's like you had an eating allergy and

you couldn't find pancakes that dealt with your specific eating all and you

bet that there's a decent amount of other people with that allergy that also like pancakes and so then you make pancakes that that are delicious and

amazing that also cater to people with that food allergy and then all of a sudden like you have a business based on pain and why why does that matter what

the Pain part um I what leverage and Advantage does it give you for the next five years I think that deep knowledge

of the prospect is Paramount or very important for creating exceptional

products and you can either do that by doing a ton and ton of research or by being the Prospect and there's a certain

amount of like visceral feel that you'll know like if someone wants to make a nose product for breathing I have tried

every product since I was in eth grade so it's been 20 plus years 30 whatever a lot of years um that since then and I've

tried everything and so I know the pros and cons of every product that exists on the market and I can tell because and

I've done it's not like oh I tried it for a day it's like I'll try things for a month at a time and so I have so much time exposure to this problem that I

have a lot of nuance in my opinion on what's wrong with the solutions so I can formulate a way better hypothesis on how

to fix it and that hypothesis would will be for an investor so much more compelling because you lead with a story

as opposed to logic I met the guy who uh invested in Regal Cinemas which is the

probably the biggest chain in the US um and it was when it was there was guy had just one theater and it became now

obviously Co has disrupted that business but you know for 20 you know years whatever they they crushed and he said

it was so weird to say that oh Cinemas are going to make a comeback because they'd kind of been on a downturn or something like that during the time that

he was making the investment and he said the reason I decided to invest in it was because this guy knew everything about the business down to how much the cost

of Colonel of popcorn was and he just knew it so like the back of his hand that he was like this guy can't fail

like he just knows too much about this business to not have it work and so he investing in you know making gazillion

dollars and so but I think that that deep understanding and if you look at all of these the passion things you'll

have deep understanding because you're spending spending all of your discretionary time pursuing this passion the pain you have a deep understanding

of the of the problem and the prospects going through it because you've experienced it probably for years now

the professional one I would say is a bit of a shortcut um because if you're quitting the job because you don't like

it and then you say I'm now going to do this for myself well you're

okay um I mean well the the the one the one proven point about that is that that one is proven to work from an economic

perspective you will be able to make money doing that because you already have made money doing it these other two are less proven

but sometimes have a significantly more upside when you were talking about the breathing example with your nose it's

funny because if you had sat down and said to me Steve I've made these like breathing nose strips um they are better they're 20% more durable they expand

your nostrils by 20% it is multiples less compelling than you telling me that

story you just said about being a kid having breathing problems trying to solve this problem for yourself and it's

funny cuz that that story you told versus the sort of rational logical approach or the benefits approach is

your marketing campaign for the next five years on Tik Tok and Instagram it's I had a problem I solved it I tried

everything and solved it for myself there's almost like nothing more compelling and believable no we see that in Dragon's Den it we'll be sat there

listening to these pictures all day then someone will come in and say I had ADHD I tried Energy Products they all made me

crash so I went out and solved this problem for myself and we're on edge cuz we almost can't argue with it yeah at

that point you know yeah so basic has this great framework where he talks about missionaries and mercenaries and

so it's kind of like you have the guy who says okay I looked at market trends and this is a growing category and you

know I surveyed people and this was the you know the result that came back and so I believe that if we time this

product right uh at this point in the market we'll achieve huge you know a mass adoption blah blah blah blah and

it's like loging your way through and to be fair some people do you know do make it work but the missionaries are the

ones that end up making the most money because is like they do it sure for the money cuz the business has to have some

economic engine behind it but really because they viscerally experienced this problem and don't want anyone else to solve to deal with that problem either

and so like if I were to tell that story like you were saying like when I was in eth grade it was the first year that I I

started really noticing I couldn't breathe at night and so I learned how to fall asleep with my hand on my face like this so that my nostril would so I could

fall asleep in my hand with because you there's no actually other because you can't hold your because you fall asleep right and so if I fall asleep with my

hand like this right like like I'm on the couch and I fall asleep like that it keeps my nostril open and I can fall

asleep and it doesn't move and so that's how I learned how to sleep for years uh before founding like just like simple

nasal strips and things like that but there's tons of problems with with those solutions that exist right now that I won't get into but um maybe someday I'll

make a nasal product I think I mean literally just delivered [ __ ] I can tell you if you

put if you put every product in front of me that exists right now I can tell you what's wrong with it cuz I've tried I've tried literally all of them not like I'm

pretty obsessive and so like I've tried all of them missing opportunity here I've tried I've tried the ones from Europe I've tried the like not just us

like I've tried I've tried every product that exists on Amazon I've tried all the ones from foreign countries every every

fan or follower who sends me a product that is a nasal company that's new um I will try the product I still do um and

there has yet there's there's yet to be one that has truly solved it I mean you should I

mean but I I think in some ways uh so this is actually a really good meta uh concept here which is that um if you

want to be compelling a demonstration or a model is always more compelling than anything else and

so me even going through that entire narrative right is taking everyone else

who's been listening to this on some Journey it's like if you want to make a compelling pitch for a business it's like we pretty much just kind of went

through one um and so that's that's really what it comes down to you're like well what do I do with my business it's

like create your Narrative of why you're even doing this and if you can explain to

somebody why why they should care about this problem or more specifically why you care about this

problem I'll tell you this more investors will like I might be like I don't care about kitchen utensils but

this girl certainly does and I'm sure there's other women who do too and what everyone wants to see is Obsession and

unfortunately in like some of the world I know more in the UK than the US now like that kind of perspective of like

just being all in obsessed with stuff has almost been like um bastard or like you know been um

chastised and I but the people who are obsessed with the ones who changed the world at least changed their world and

um and I think that so a very close friend of mine um did all the uh Olympic

teams um nutrition and supplementation stuff for uh a country overseas and he

said you know the difference between Champions and everyone else and I was like what he said everyone always looks at them and says what do champions have

that I don't have and he said it's they have it backwards he said it's what do

Champions not have that I have it's what do they lack and it's an off button they

just don't stop and so in dealing with the gold medals he's like they just never stop they just can't stop

everything in their life is geared towards one goal and so finding that

thing and they approach everything in their life that way and I think that that level of obsession of around like

everything that you touch on a daily basis is required for really getting to where you want to

go so interesting because as we spoke there about the reason why the story was

so much more compelling it was back to the amigdala it was back to emotion right and it's funny because we we said

a second ago that when someone's thinking about quitting a job they're like SE in their amigdala humans run mostly on their amydala so when we think

about pitching we should really be aiming at the same part of the brain which is what you did when you showed me

that you were sleeping as a kid with your hand stretching across your face I immediately felt sorry for you felt sympathy and I immediately believed that

if anyone's going to solve this problem it is this [ __ ] guy who's been through that pain I've had two surgeries both of them didn't really work like I

mean like i' I've got the story my girlfriend's the same what really two surgeries but she's coming up to her

third one now we've tried all the nose drips I saw you wearing one I bought that one for her yeah um and so there's

a lot of people watching right now and there's something going on with these bloody [ __ ] like noses yeah people shouldn't like yeah we're doing

something I I feel like I may it popular some of the N Stuff yeah but D making it

cool pain profession passion yeah ideally you have all three if you have all three then you're I mean my God

you're set like if you if basically pain created an obsession and for some reason you also were doing something like that

in your work like I feel like the likelihood that you don't succeed is almost nothing you only need one of those three you just pick one like if

you just had one pain that you had that you wanted to overcome or one passion that you were just inherently interested

cuz sometimes passion has nothing to like you might just be really into model cars it's okay well there's a lot of businesses that you can build around model cars it's like you can you can

manufacture model cars uh you can have services around model cars making them faster because some people race model cars you can uh be a collector and start

flipping model cars like you can just make media around how to build them and then have a media company around like

there's so many different components of any Obsession or interest that you can make I I was talking to um on one of the

future episodes of uh mosy tank uh that's coming out we have a guy who's um he loves Dungeons and Dragons so he's an

it he's an IT guy and just loves Dungeons and Dragons and he was like I

just want this to make enough money that I don't have to do ID anymore and but it was so pure you know

what I mean and so I was like we're going to help you do this and so we kind of walk through the business plan for it but like is he going to be a billionaire

no but I also don't think that's his goal and so I think being really clear on what you want um is important so if

you're like I want to be the richest person in the world I think it's a terrible goal but if you want that great

well you have to have a multi-trillion dollar idea because now because by the time that occurs there's already multi-

trillion dollar companies now so you got to be looking at like Deca trillion dollar opportunity and so believe it or

not basically the bigger the goal the narrow the scope of the path to get there if you're like I want to make $10 million like you can literally do that

in almost any business you want to make $100 million probably still almost any business you can do it on a long enough

time rise and you can do it a trillion or decad trillion it's going to be some sort of tech it's probably going to have

some sort of AI like and so you get basically the bigger the goal is the narrower the scope of of how to get there but the vast majority

of people were like I want to be the richest man in the world it's just because they don't know how to like really think through it and be like all right well after like a hundred there's

really nothing you can't do except buy more big things but like in terms of your actual consumption maybe even 20 is

like you can only eat at restaurants that go so expensive you can only stay at the best hotels you can only drive the nicest cars you can do that with about 25

million what do you think the cheat code is then so I've got my idea what do you think the cheat code is in 2025

to win at the game of attention like there's got to be some new rules here

because we've got AI we've got new platforms we've got New Media you know I'm give you a

hypothetical business idea I'm going to be a personal trainer okay and I pick that because everyone can do it and it's

it's a saturated industry if I'm if I'm a personal trainer in the 2025 how should I be thinking about

building attention mhm so I'll tell you what I wouldn't do first which is I

don't think I try and out science the science people uh because like unless you have some PhD there is a PhD guy

who's already jacked who's making content and so he's more knowledgeable and more Jack than you so you're not

going to win there and so I think in the game of attention it's trying to find what is unique right and so how do you

how do you quote stand out when everyone's loud and this is going to sound trite but your fingerprint is

unique literally from a biological perspective but so is your life and your experiences and so there's there's real

Alpha or or benefit to be had above normal level of effort by leaning into

you and so what makes every person unique is what makes their content unique and so trying to be like oh I

want to make content like Alex is probably not the best way to do it because you're not going to beat me at being me but you'll beat me at being you

and so it's basically your flavor of media so like for me it's like you know what is you know my brand to to to to

model this it's like well I have elements of flly philosophy that are in my brand well do I need that no but that's like kind of me um I obviously

talk a ton about business marketing and sales promotion conversion those are all things that I spend a lot of time thinking about and so a lot of my

content about that um Fitness is a component of my life and so there's light sprinkling of Fitness uh in my

content also I come from a background of Fitness um with the the with gym launch and and the companies that I owned

before that and so that would make sense that and I've my wife Lea and so that sprinkled in and so like those are

basically the components of My Life um and so that's what kind of shines through in my content I consume a ton of comedy and so sometimes you'll see some

dry humor and dark humor that that shines through um but that's me now you have all of those little buckets of you

and not only are those buckets unique but also the proportions of those buckets will be different and so maybe

your philosophy is way bigger or maybe Fitness part is way bigger but I think what makes the truly unique personal trainer or Fitness brand is leaning

into people being interested in you for being you and then being like by the way

I have Fitness stuff if you want to buy it from me and I think the key part is

the vast majority of products and services are commone tized there you're not you're probably not going to be significantly better than other trainers

just being real you probably aren't but you will be different than them and we

want to lean on I I want to buy Fitness from somebody and so I might as well buy from her or I might as well buy it from

him so you're taking basically this audience that would buy from anyone but your brand premium gets them to want to

buy it from you we think about Prime for example with the drink the drink company like it's a it's a drink that there's

other products that already exist in the marketplace that satisfy the same thing as Prime but if you are agnostic to that

brand and you have brand Affinity with that that Creator then you're like well then if I have two things that are

basically equal and I just like this guy better I'm just going to as long as the prices are comparable I'll just vote

with my dollars here and so I think that if you're a personal trainer in 2025 um it's going to be longterm it's going

to be building the content short term it's going to be Outreach to people that you know and making a compelling offer

to get people to try to work with you this overarching point you said there about being yourself as I was thinking

about it I was thinking gosh do you know what the thing that all of my favorite creators and the Really successful creators have in common is they all have

and I use these words intentionally the courage to be themselves yeah because I

tell you what when I was starting out as a content creator and I looked back I was showing one of my team members the other day the things I used to post it

was like everything happens for a reason it was cringe cliche fluff and it took

me several years to almost relax into just realizing that the game here was to get to the point where I could be myself

on the internet and actually that was the most high value because of you know of what you said it's the uniquest part of me but the courage to be yourself and

it's it's it is the winning strategy for 2025 and it's I think um it's leaning

into it and the thing is is that everything in you wants to not do that I'm not really sure why um but I was

having a conversation with Ila I want to say two nights ago or three nights ago um I got a bunch of flack for uh some X

poost that I made and she just looked at me and she was like never dilute

yourself because I was like maybe I was like maybe I shouldn't talk about this stuff like maybe I should just like you

know I'll just lean off and she was like never dilute yourself like there are so

many more people people who need that message than people who are hating that

message and she was like and if you're actually going to make a difference in a lot of people's lives there's going to

be an equal and opposing force of people who want to reject that and she's like this just comes with the territory of

like how big of an impact you want to have and it was just such a great you know wife talking to husband you know conversation um that I guess for me at

the end of the day I'm like as long as she thinks I'm cool like you know I I'll keep doing it but um but yeah it's just

uh because the diluted down version all all of a sudden becomes everyone else's

stuff well you said a second ago you're not sure why that is but by very

definition of it being unique that that means that there is no blueprint yeah there is no person that's come before

you and proven that it works so the courage of being yourself there's only one Steven Bartlett so if I'm truly

myself it's never been done before that means that the risks are unknown the upside is also unknown yeah but so again

going back to to our our hate of uncertainty it makes much more sense for me to try and copy you because I can see

a blueprint there than to run the risk of being yourself and you are someone have to say who is running the risk of

being yourself and actually as someone who's observing you now I know who you are and I now know who you're not and

it's important for me as someone that follows your work yeah that actually I see consistency because I've established

Alex os's values yeah and anything that diverts from that is actually less valuable because you say it's more like

everyone else and the things I've had before but it's also it wouldn't feel true anymore yeah and um and this is

something that even as a Creator myself I I have to fall back on is my audience know who I am now For Better or For

Worse yeah they're not going to learn anything new yeah you know what's really interesting is navigating the gray and

so there are contradictory ideals and this is what I kind of come back to when

I'm when I'm like worried about these types of things which is like you've got mercy and you've got

Justice they are somehow opposed and they are both ideals so how can we

believe in Justice and also believe in Mercy at the same time and so and I mean there's you can have variety and

consistency like there there's there there's tons of examples of this right um and so we have these diametrically

opposed ideals which means that if you ever say by the way I'm a little bit more of a Justice guy like I understand

they had a hard time but at some point you got to take your own personal accountability so like no you're not going to get out of the speeding ticket

you're going to get like that's what's just on the other hand it's like hey single mom uh gets pulled over uh for

driving too fast you know what maybe we let her off today both of those stories fair but you're going to get attacked by

the other side that has an ideal that all humans try to strive for and it will feel terrible because they are right and

so what and so I think that like understanding that that conflict will always exist between two apparent ideals

that and this is fun this is foundationally what politics is right is that there are two apparent ideals that

bet all of us I would say 99% of people would say justice is good Mercy is good

variety is good consistency is good right respecting values is good so is innovating and doing new things how can

we have both of these contradictory ideas and at the same time like navigate that without conflict you can't because

how much becomes the question and so I think that your thumbprint as a Creator is that when someone presents a

scenario and says does Alex choose Mercy or Justice in the scenario that your

audience says gets it right and so I think about um branding in general as

basically a mosaic that you get to create and so like each piece of content is a little tile that has a single color

on it and if you just see one piece of short content of of Steven Bartlett you you don't really have an idea who Steven

Marlett is but if you see a thousand of them all of a sudden you zoom out and you get to see the whole picture and I think that that the the colors that are

in those mosaics and the and the proportion of how many yellows how many Reds how many greens and where are they

is what ultimately creates the brand and so um because people want to try and turn this into okay so I make one post

about family I make one post about finances I make one post about whatever right it's like I don't think that's how

it works I think you just be you and then those proportions will naturally shake out and also over time you will

change and so it also makes sense that your brand will change and was I had to recile which likeit I don't know if I

agree as with some of the things that I said years ago the thing is in the digital world like my first podcast was

2017 July of 2017 wow episode 8 is called stop

branding I have changed my views on branding to be clear yeah but that first

podcast is 90 days from when I lost everything MH and so the entire the

entire like horm Journey if you want to call that from zero to billion is actually documented 90 days from zero

it's all there and so you can see how my my my views on business have changed and like what I was thinking about at every

kind of portion of my life and so I had to just be okay with the idea that like

I will change my mind because I will get new information because let's take the alternative stance if I get new information do I just keep parting what

you did before this is also an issue with politics right is that like he's flippy floppy it's like so they're not allowed to learn

yeah you've been in politics like you haven't learned anything like no stances Chang like I feel like we should be able

to do that obviously Brands don't work that way so it has to be gradual over time which I think if you were always

you at all times it will be gradual over time yeah I don't know I think a lot of the time we end up over focusing on

unreasonable people which is a war we can never win anyway because you say that to me I think so I think it was

like I had this uh this guy therapist on my podcast who I then spoke to after the podcast and he basically broke it down to me he was like there's 20% of people

that just absolutely love everything you will ever do like you could say anything you change they're [ __ ] they're just super fans there's 80% of people that

are actually like he said there 60% of people that are really reasonable they don't speak yeah they just watch they're

like reasonable and there's 20% of people with no matter what the [ __ ] you do they're going to be he is like don't

spend your life focusing on the the 20% the quiet majority the 60% they don't tweet they don't they just chill and

then the 20% you know they your evangelists but you know I find myself falling into the Trap of the so what's

interesting about the 20% is that like um I was thinking about this today the your so no matter who you are you're

going to be disliked period because no one's liked by everyone so we just have like let's if we can accept that as a

premise right no one's going to be like for everyone you might as well be disliked for being you than being somebody else amen am at the most basic

level you the being disliked is a fixed cost and and I think to to to to take

the opposite pers perspective I think it is far better to be disliked for being who you are than loved for someone you're not yeah and one one of the great

entrepreneurs I interviewed on the podcast said to me when it comes to marketing and branding and this sort of attention conversation we're having she

said to me that in order to reach your 80% you have to piss off your 20% or at

least be willing to piss off your 20% it was Jane warang who's the founder of demica global Beauty um brand with I

think hundreds of thousands of people and she sat and said to get to your 80% you have to be willing to piss off no

actually [ __ ] she said to get to your 20% you have to be willing to piss off the 80% and from a branding perspective it

makes so much sense because when you stand for something clearly which you do you inadvertently stand against a you

have to if you draw a line there's there's there's a side on either side and you have to say like I'm on this side did you see that Nike ad dude I was

just going to say that I was just going to say that yeah the William defo ad yeah like what's yours is mine and what's mine is mine yeah just like it

was actually the first time that I'd seen something from Nike in a long time that I was like this is what built this

brand and I think they have they had lost their way for a while yeah uh with like the wokeism and all that stuff and

I think it's like Nike means Victory which means people have to lose yeah and

they were willing to say that for the first time ever right I posted it on my LinkedIn and it was 50/50 yeah I'd say

it was actually more like 80% of people were either neutral or pissed off and 20

yeah and 20% of people were like that is me I am a Nike person and for me when I

saw that I thought I want to buy some Nike shorts yeah it was I mean it was the first time I actually felt like I had positive brand Affinity towards the brand in a long time how important in

this game of building and starting is people oh very a hiring question I'll tell you

why I asked this question because when I look at my portfolio early stage first Founders never seem to understand the

importance of hiring in people yeah and I bang my head against the wall trying to convince them that actually the game

they're playing is in the company group of people yeah so I would I'll start

with one thing and then I'll answer the question so I was talking to um a mentor of mine and he said when I was in my 20s

it was all about the destination he said when I got to my 30s I realized it was all about the journey he said when I was

in my 40s I realized it was about the company and I was like I can't wait till you're in your 50s the next one right but I thought

that was such a great like such a profound shift in terms of how he thought about his business success cuz he was like I don't need to be a you

know a Deca billionaire he's like I'm I'm cool where I'm at um and now I just

want to do it with people that I like and so to the question about um people

overall I believe that the potential of an organization is directly correlated

with the aggregate intellectual horsepower of everyone contained within it and so if you are the smartest person

in the business then and you can do every everyone's job better than everyone in your company then it means

that the limit of the business is purely based on one person's horsepower and one person's life

experiences and that will be the cap and basically it doesn't matter how smart you are you can't live a 100 lifetimes

like you can learn quickly sure there's some people who can learn faster than others but you're not going to be able to live a thousand lifetimes and

so as a business grows more expertise is required and I think the easiest liit

test for this is if you look at the richest people in the World almost none of them Own 100% of their business so

number one most of them don't even own 50 like most of them are small percentages Jensen WIS at 4% for NVIDIA

basos is at seven or 9% for for Amazon uh I think elon's at 20 for Tesla like

small percentages and it's because it takes a lot of horses to take a chariot

to the Moon right and so basically as you put in more intellectual horsepower

the potential peak of the business goes so much so much higher so much faster

Keith rabois from um he's one of the original PayPal Mafia guys has a really good analogy for this and he talks about

it in terms of barrels and ammunition and he says so as soon as you get some product Market fit the business starts

to grow and you say okay we need to start shipping things faster and this works the same with a Services business a physical products business software

business the concept's the same and said so what happens is you then hire a lot of people and you assume that your

throughput is going to increase proportionally so we have 10 people we hire 50 we should 5xr output and then you quickly realize that that is not the

case and so what happens is uh there are people who are rate limiters for or or

and organization and those are the barrels so think about like a civil war Barrel you know Old Cannon and you've got these cannonballs next to it he said

most people are ammunition and so you bring more ammunition but you're still going to be limited by the one barrel

capacity of how how many shots can get taken by the barrel and so you need to find more barrels so you have to go from

one barrel to two barrels two barrels to three barrels and that becomes an increase in capacity or throughput for

the organization and there are very few of those in a different um I can't remember the law but it's some

organizational uh law but uh the square root of the number of people in a company generate 50% of the work so you

have 100 people in an organization 10 people are responsible for 50% of the value that's created facts right anybody

who's been in like you're like of like preach and so the thing is is I think

the real game of Entrepreneurship is that your standards rise over time and it's unfortunate because we we hear

things that other entrepreneurs tell us it's all about the people stupid and then you're like sure but look at my and it's like no you're not hearing it and I

don't know there are some I think Williamson talks about this how there's like some lessons that for some reason it's like we have to learn for ourselves

I still believe that that it's like we can operationalize this at a lower level so that we don't have to learn it for ourselves but like I'm convinced I

haven't figured it out yet but um so every entrepreneur can can can can resonate with this which is every

business that I've started I've gotten to the success of the business Prior Way faster and I kind of liken it to a video

game where it's like you beat level one and then you know you get to level two and it's like you spend months trying to

beat this boss and you finally figure how to beat the boss and it's like great and you spend another three months getting beating Boss 3 and let's say you

start the game over with a new character it's like you just zoom through level one two and three and then you get to level four and you're like shoot now I

got to spend time it's like virgin land like I don't know how to beat this yet and so I think that that happens for

archetype finding for skill and talent within an organization and so say that again so if you have functions across an

organization there are people who are going to drive results within that function and the first time you hire a

salesperson for example you don't know what you're looking for and so you just hire a human who says they can sell and

maybe they can maybe they can't and then you cycle you try to train them that doesn't work does work whatever and then

finally you let's say you cycle through three sales guys and finally you find a killer and then you have this recognition you're like okay that's what

I'm looking for and then all of a sudden you try and approximate that person or that archetype as as much as you can and

so when you start your second company you're like oh I can quickly staff up sales because I know what I'm looking for but then you're like shoot I've

never really nailed sales manager yet and so then you cycle through you start you start whacking away at the boss and

then you have to end up firing the boss at level because you're like oh God this didn't work and then six months are gone

because you had to find them recruit them hire them train them and then find out they sucked and then start over again and maybe it takes 18 months to

really find the right sales manager and then you're like okay I know what that looks like but I still don't have a

director of marketing what does that look like and so it's basically developing this pattern recognition

across all functions of the business so you that you know what exceptional looks like and then over time what happens is

as a business grows your ability to attract Talent increases and so then your standards also grow and then you

find out that there's even more Nuance to this which is that there's a director of sales at a $1 to10 million level

which is a different looking person from10 to100 million level and it continues to go all the way up and so

it's basically building this repertoire of identifying patterns and what if you

talk to I would say more experienced entrepreneurs now they don't talk about building businesses it's like assembling them you just assemble the pieces and

you just know that this is how it's all going to flow together and that fundamentally is basically what I try

and decode within the content that I have so that it's like here's a pattern for how you recognize this here's a pattern for how you recog ize this so

that you can just move faster through the levels um to get to where you want to go and so to loop back to the

original question which is how important are people in an organization people are the organization and so if you ever want

to build Enterprise Value it's building the collective consciousness of the organization the skills and how they

collaborate together towards a specific outcome and so knowing how to staff that up is the

job I think the reason why first-time Founders feel like they have to learn this lesson themselves is because

everything you've just said is an unknown unknown like they don't even know that they don't know it so they stumbl they hire the sales guy because

they were their friend from high school and then [ __ ] and then they go through the pain and I say this because

I'm so unbelievably passionate about it I went through the same BS I hired my friend who worked at Prada to be art account I hired a guy I met at a rap

battle to be my marketing director who who was literally playing video games for a living at 30 years old um and I

went through this whole thing and then at maybe three four years into my first business I accidentally hired someone

great like through no intention of myself accidentally I saw the net impact they had and I thought oh my God over

the coming years I learned that the game the fundamental game here is as you said assembling the best group of

people how if I'm a firsttime Founder can I put a system in place to to make

sure that even though I don't know what a good salesperson looks like yeah even though I don't know what an ex good

person looks like I still attract them to my company the simplest way of doing it so the

simplest way of attracting somebody to your business when you don't know how to do the job or know who to look for is to

unfortunately do the job yourself and then once you can break down the job we follow 3DS which is um document

demonstrate duplicate that's how we train anybody so first you have to document everything that you do to

successfully do the job and that's step-by step into a checklist then you demonstrate so you do do this checklist

in front of the person that you're trying to bring on then they duplicate they do the checklist in front of you

what's interesting about that three-step process is that you'll often find when you try to demonstrate following the checklist you don't follow your

checklist and so then you have to adjust the checklist until you actually follow the checklist and then when you can consistently follow that checklist and

get the output then you can have them do that checklist and so I think this is why bootstrap Founders uh I think often

times will find they they tend to know more about more things because they had to learn them in order to teach them now

what's really interesting about what you said about accidentally finding that that star at 3 or four years in is that

I think that happens to almost everyone well hopefully it the people who end up making it it happens to almost everyone

um because then you realize oh my God like if I had four of these people like we could change the world right say

something as well the other Epiphany Revelation I had was the star hired

Stars yeah right and so I think of her name's casy leison of the 10 people she then hired nine of them became the best

people in my company and also I'm not going to say his name but someone else in my business a c player yeah of the 10

people he hired yeah he and everyone he hired was F so one of the it's so as you

go up in the organization with hires the risk and reward goes up and so that's something that a lot of people don't like talking about but I will um which

is if you hire somebody and let's say that they're not a cultural fit maybe they have the skills uh or they are a

cultural fit and they don't have the skill fit and they're a leader what you find often and it sucks is that

everyone it's almost like it's like a tree that has an entirely rotten Branch it's like you end up having to scoop out

three4 of what was underneath because you realize that they were ineffective or they just were against the actual

mission of the business and it's it's harrowing and it's horrible but I try to

give this analogy um to my team because we've had to do it in every business we like it happens it's just part of business

is if somebody goes to the bar and you're at the club and somebody racks up

you know just ordering shots for everybody shots shot shot shot shot shots and then that guy dips that guy leaves we all have to pay the bill in

the moment when we pay the bill when we scoop out the Deadwood when we scoop out the rot from the organization it feels

horrible but that pain isn't because the scooping out the rot is bad it's because

we planted it on bad ground or because that guy ordered all these shop but couldn't afford it and I have a

different analogy because I really want to drive this home because I think it's important is that in the in the relationship world if one spouse tells

the other spouse hey I cheated on you I had an affair that moment is incredibly

painful for both parties and so what it makes you think is oh this was wrong to

tell the truth but it's not wrong to tell the truth what's wrong was cheating

when you tell the truth is when you make it right and so the pain that you often have to to encounter in organization

feels wrong but is right because that was you're you're writing a wrong and

that's where the pain occurs and that's why so many businesses stay stuck is because they have this affair they have

this person and they're unwilling to have that hard conversation or multiple in order to make it right and they stay

stuck for years this is another quality of really successful

Founders that I've noticed which is what you just said is the ability to have the hard conversation sooner and in my first

um in my Folia where there's firsttime Founders they're coming to me and in our like uh monthly meeting saying God

there's this guy who's running the Ecom Division and he's so bad and I'm having to do the job for him what do I do about

it Steve what do you think but then they come back to me two weeks later and they're like he's still

there yeah right A year later and you're like it's still John you know you're like what are we talking about here I remember asking him when at such meeting

uh does JN know that you're unhappy with him oh yeah no so there this quiet dis

faction which I think is a virus right right and what what no one wants to discuss is the fact that everyone else

knows John sucks amen and that that becomes the minimum standard for what is acceptable for excellence in the

organization and so I think like so if brand is what your reputation is externally I think culture is kind of

what reputation is internally and so I Define culture operationalized because I think culture is a very fluffy word what

does that mean right it's the rules that govern reinforcement within organization what do we reward what do we punish and

so the thing is is that there's realistically there's like people have values because they're bundled terms

that lad up many behaviors if I said Rolls-Royce probably would have some

value that's quality over speed probably right and so they would have that but somebody would have to say like what

does that mean right well we hope that we use this as a decision-making filter for how it affects behaviors on every

situation so that when you're in the should I go fast or should I make it right you make it right and there are

other organizations kind of like the speed uh justice and mercy speed and quality both of them are important and

sometimes they sit diametrically opposed and so it's like we have to say where do we sit in the gray so that we can duplicate decision-making across the

organization so that we can maintain the culture and so culture uh you know lless

this is a lot but culture I think this is a drer quote actually U culture Trump's strategy like twice week and

every day on Sunday if you have a mediocre strategy but an unbelievable culture you will crush somebody who has a great strategy and a terrible culture

because culture Lads up to Performance and execution and almost every business is limited by execution not strategy

most business strategies isn't that complicated like let's do a really good job so good that people tell their friends about us and as long as we have

enough gross margin we'll make money it's not that hard right it's just that the doing it is the hard part and so so

when we have these uh they are the spoken and unspoken roles mostly unspoken if someone shows up 3 minutes

late to a meeting and there's 10 people in the meeting and it's supposed to be a marketing meeting and I'm there if I don't say anything I have now said we

have an unspoken rule that if someone shows up 3 minutes slate to a meeting it's okay I've I've reinforced that rule

now if I I've reinforce it by not punishing the behavior or at least calling it out um on the flip side if

someone comes in and I berate them that's also a way of changing Behavior maybe not the right way to do it um but

I could then like what do you do in that situation someone shows up 3 minutes late um first off you would probably

sideline with that person be like hey I don't know if you realized that you were 3 minutes late what happened and

they're like I was on a client call um it went late I'm really sorry or I was

on a sales call for me in my organization clients in sales like will take priority so if you have a meeting

and you're on a sale and you're about to close it close the sale right but if you were just doing nothing and we have this

meeting then this is the priority and so the next time we hop on I'll be like hey guys I just want to address something

John was late he was late because of aale call or when I dm' him right as he got on late I would say hey make sure

you say that and be like hey guys sorry I was late I was on a sales call and then I would say that's fine you're good

to go always go make money yeah and then I'm reinforcing the right thing yeah right and so I think we're very big on

rapid feedback um in the moment because that's how you train Behavior so if you look at if so there's tons of studies on this

but basically if you want to train a dog right um and you want it to sit if you have it sit and then immediately give a

biscuit it learns really quickly if you have it sit and then wait 10 seconds

before you give a biscuit it takes like three times as many repetitions for it to learn that the that the sitting gets the biscuit if you wait more than a

minute it never learns really it just you can see the learning curve the amount of repetitions just skyrockets

until eventually there is no amount but here's where it gets crazy that biscuit is still reinforcing something just not

sitting it's reinforcing the thing that just came before it so if we want people to do something we have to change in the

moment and so when we train and I think that we're we're a training organization we're very good at training whatever

skills um is engineering ways to give

many feedback loops in a short period of time around uh specific skills so I use

sales because it's one that everyone understands if you're training a script with someone at the if you if you let

someone read through a script and then at the end you say Hey you know here here's the things you could have done better blah this is how 95% of people

train it's also doesn't work mhm we set the premise with you're going to read through the script and in the first 30

minutes we might get through a third of it and I'm going to probably stop you like 30 times and if that happens it means we're doing it right so we set the

premise that I'm going to interrupt you a bunch of times and as soon as you say the first line I'm going be like stop say it again say it like this go again

and then they're like okay and they say it and I'm like awesome job do it again awesome job do it again so I reinforce

it as many times I can okay go to the second sentence right now do first and second right do second and third right and you keep working working your way

through until eventually they just say like a whistle they can sing it because they've also had so many repetitions and so many feedback loops that they're like

this is what it sounds like when it's right and I think that the vast vast majority of organizations have no idea

how to train and their entire training their their way of getting Talent is just uh let's hire 10 and we'll just see

who works out rather than being able to take someone and level them up and I think that the ability to train is one

of the largest Alphas that exist in organizations because if you can buy Talent at at B skill and get them to A+

then you net the Delta and profit between what you had to attract and pay the person to come and what they perform

at if you have to use a picking strategy then you have to pay for ex for current market rate of the skill and so you

actually eat into margin because you don't know how to train there are advantages to speed and sometimes it still makes sense to bring in the talent

because maybe the training requires so much time that it's not worth it and so

from a hiring perspective because I we were just talking this is the theme we always want to hire for the smallest

skilled deficiency and so in low skilled labor for example if we have a cupcake uh Bakery and I need somebody to work

the counter that is pretty low skilled labor and so if there's a number of

skills that are required being able to be on time smile be nice those things are bundled terms that have many skills

underneath of them right whereas teaching someone how to use the register might take like 30 minutes and so it

makes sense to hire for attitude and then train aptitude when you have low skilled

labor when you have really high skilled labor I can't teach someone 10 years of

being a CFO for m&a just just an extreme example right and so in that instance we

still hire for the smallest skilled deficiency but I can probably teach someone to be nice under these

circumstances faster than I can teach them to be a CFO if they have everything that I want here obviously you would

want both but the world is imp perfect and so we just try to hire for the smallest SK Gap and attitude is a series

of skills and so instead instead of thinking of things as an attitude and aptitude just think of everything as skills and then we hire always for the

smallest efficiency mhm the thing that's easiest to train up yeah okay one of the

things that's so Central to that is we were saying about giving people feedback and I wrote down most companies and most

entrepreneurs and Founders are scared to give Petty feedback oh because if like I

might notice you're making a slight error yeah but if feels Petty to point that out it feels like I'm some kind of

rude dictator yeah why is that so important and how do you create an

environment I'm totally good with that yeah I a lot of people aren't I I have lots of managers on my teams and they don't want to offend people their

Central focus is too much on being nice and it's dude kind not nice it's one of our one of our one of our cultural you

know I wouldn't say it's not the one on the site but things that are repeated internally all the time K not nice is

one of the big ones which is that you're actually being unkind to someone by not maximizing the likely that they succeed

in their role and people don't lose jobs because typically because of one thing it's

usually a hundred small things and so if we can immediately fix those hundred Small Things most people want to do a

good job and most people want to succeed and most people want to move up and we can maximize the likelihood that those

things occur if we help them and this is where the culture is there

if on that first day like I said we say we're going to work through the script and we're only going to get through a third of it I'm going to stop you 30 times to correct you we've already kind

of set the expectations of how things go here like we will fix things and we will fix them fast and it's understanding the

difference and I we teach our teams this is what is the difference between an insult and criticism so criticism is a

discrepancy between actual and desired so you were supposed to be on time and this week you were late twice and so

that is discrepancy and you're lazy is the insult and so the Judgment that's

associated with the discrepancy is insulting someone pointing out the discrepancy is purely criticism and

that's objective and so if you want to improve the team remove insults focus on criticism and tell them what to do

instead and so the easiest way to think through this I think is stop start keep

so I'll tell you a real story so we had um we had a we had a a director level so

a relatively High person um in the organization who was having um behavior issues uh oh said differently everyone

thinks you're a dick and so so he ended up making his rounds of the executive team uh and

having a sit down with all of them because he was really proficient at the scale he's high performer like good at what he does just no one liked him and

so um he talks to four different Executives and the behavior didn't change and so he finally came to to my

office and he was like a little bit worried and he was and he was like am I going to get fired and I was like no HR will fire you if you're going to get

fired you're not going to meet with me what are we talking about um but when we sat down I said Okay I want to be clear

I want to decrease the likelihood that people call you a dick in the future I was said does that sound like an agreeable goal and he said yeah I don't

I want that I was like okay good I also don't care if you are a dick I just care that everyone else thinks you are and so

I just want to minimize likely that I get drawn into this ever again so the reasons that they are calling you

a dick we need to dive into that because every other conversation you'd had with you know some of the leaders was just like hey man stop being a dick and the

thing is is what do you do with that nothing you just get insulted and then you have nothing to do and so

instead it's like okay when you cut people off when they

talk stop start keep doing do this instead shut up so when someone else is

talking wait until they finish and if you're not sure ask if they're done it's like

okay when uh you give unsolicited advice on how they should run their Department

don't or ask if they want it if if they say no don't say anything and so we

identified three or four behaviors that he was doing and I said just do this instead and literally the next week

people were like what happened to him he's like a new man and the thing is is that he wasn't a dick he just didn't

know how to behave and so if you want to teach teaching has to come from conditions and a behavior and so if

you're trying to get someone to be different you have to give them the conditions under which they need to change so when someone says this if this

occurs there's a condition and then this is you need to do and so the vast majority of training that exists does

none of that it's just people shouting at each other insulting them and saying hey you need to level up you need to you

need to get you know you need to increase your performance what does that mean and so I think one of the easiest

ways to identify the actual Behavior because that's actually the tough part is like why do I think he's a dick why

do I think she's lazy because I want to insult them but that's not so how do I help her it's like okay why am I

describing her this way okay so when I slack she she tends to be slow in her response so sometimes it takes an hour

sometimes three hours I'm like okay so I'm going to gather that data and be like okay so when I talk to her I'm like I'm going to have this this branch of data the next thing is when I get stuff

uh you know projects from her they are incomplete I feel like they're not all the way fleshed out I'm like okay that's

a second second bucket um the next one is that when she shows up on Zoom she looks disheveled I'm like okay so now

when I talk to Sandy I'm not going to say hey Sandy you look lazy need you to level up a little bit here otherwise

we're going to have issues and have to put you on a pip performance Improvement plan right instead of saying that just

put her on the performance Improvement plan without saying it's performance Improvement plan and just say when you show up on calls change

your background to like the the standard company setting so we don't see your bedroom right and and make sure that

from the waist up you look professional and what do why I mean by look professional have a collared shirt and

put your hair back okay now some people like how does that work at in woke politics no idea deal with it in your

country but like you should have a culture where you can say stuff like that the second thing is that right now I need you to turn on slack

notifications and I need you to respond within within 10 minutes okay during work hours after work hours fine but you

know 9 to5 you have to respond within 10 minutes do you think you can do that yes and so the end goal here is like I will

get everyone to stop calling you lazy and this is how we do it it's interesting because it goes back to

something you were saying earlier where you were saying specifics versus vague yeah prefrontal cortex versus amigdala like insult is amigdala totally can't do

anything with that but if you make it specific then action is more likely to occur and useful action is more likely

to occur um on on this point of a person who's listening now who's an entrepreneur they've got a business yeah

and they're thinking about making those first hires I want you to throw a proposition at you to see what you thought of this one of the things that I

think can help you not [ __ ] up in the hiring process especially early is if you just live it with the permanent

assumption that you are bad at hiring so I live with the permanent assumption that I'm bad at hiring because I've got

biases there's things I don't know about certain things Etc and when you start with that assumption that you are really

really bad at hiring you try and decentralize the decision- making so one thing I say a lot to Startup Founders is

if you're hiring a salesperson create an interview process where there's five people and one of them might be you and

the other four are the best salesp people you've ever encountered in your life like who sold you your house yeah

and ask them ask them to be part of the interview process how does that sit with you I think it sits great and I think

that the amount of references that you go for is proportional to the importance of the role okay so say I'm the

co-founder of school um when he so he was a non-technical Founder who school what is school sorry oh so school's uh

school.com is uh a platform for building communities right now it's online but we have an inperson component so that

people can meet online then meet in person it's awesome and so that's the only investment that I've publicly uh

Associated myself with outside of acquisition. comom so it's a very big deal it's something I believe in a lot because it's education it's where

education and media meet um Sam is the is the is the founder of

school and he is not Technical and so he knew that to build an exceptional

software product you need worldclass talent and so he interviewed 600

developers to find Daniel who' become the CTO of school and he asked everybody

to know who the best coders were and then he talked to all those people and then he asked them who the best coder they knew was and he talked to those

people and then he asked them who they thought the best coder they knew was and eventually like Daniel's name came up as

like god tier he's like if you can ever get this guy he'd be amazing and so he ended up finding a way in to find Daniel

and then he ended up becoming a co-founder of school as well and what's interesting about that process is that

it actually Lads into uh rapid learning and so when I was a consultant you I was

22 years old and I would go and have to give presentations to fourstar generals right about about weapon systems that I knew

nothing about cuz I was you know chugging beers like 12 months earlier right um and so how do you sound

intelligent in front of somebody who has 30 years more experience than you do and

so this is the Consulting process for Rapid learning first is you find five experts

so you ask the one person you're like hey tell me the five people you know who are the best at this thing and then you ask them who are the five people you

know who are who are who also know a ton about this thing and for each of the interviews you take all of their their

information down of like what do you think about this what do you think about this what do you think this and what happens you start mapping kind of like the E the information ecosystem and the

reason you talk to experts first is that there's no lack of information like you can Google whatever you want the problem is there's too much and so the filter

becomes where the highest point of Leverage is and so experts have spent years filtering out for what's important

and so then you basically rapidly consume the most filtered information and then you reor organize the

information and so this is what a typical analyst will do as a consultant is like I would so for the space and cyber project that I did I we had 600

pages of notes from all the interviews that we did first step is you recategorize all all the newes by

category so it goes from raw notes to categorized notes then from there you distill and consolidate notes into what

are the what are the TR truths or the the most distilled beliefs that we have

about these particular in this case weapon systems but it could be whatever and then from there you're able to

generate your inferences for what the what it looks like when it's right what the problems are what potential

Solutions might be and then that's fundamentally how you say this is what we need to do next that's if you're trying to learn something but in talking

to all those people it actually works the same way because the interview process the higher up the talent is the

more I would encourage entrepreneurs to use it as a learning process as a consultant and so I present somebody who

wants to come in for this role the actual problems of the business for which they would have control over and

say how would you solve these and so then they tell me all the things that they would be considering and what they're thinking about and then I'll ask

the next guy what he thinks and what he thinks and what he thinks or she thinks and then all of a sudden one I get free consulting which is amazing but secondly

you can tell by how the quality and quantity of metrics that someone tracks

how good they are at a particular scale and so this is fundamentally what separates beginners from experts and so

beginners typically have binary thinking in terms of outcomes either it worked or it didn't work an expert for example for

a marketing campaign isn't going to say oh marketing doesn't work or ads don't work they're going to

say this particular campaign didn't work because our click-through rate was too low or because it was sending traffic

that wasn't qualified and we weren't converting enough on the page or we didn't have enough people who were taking the second step in our four steps

and like they can break down any part of those any part of that Continuum if I'm interviewing a salesperson and the

person says and I say okay how are you going to affect these metrics what behaviors are are you going to do so to

the same degree about vague versus spefic specific if they give me vague things back I'm going to dial in and say no what are you going to do that's going

to change that and by the way this is a wonderful way to teach in the organization how what they do makes a business money and so if you have like a

customer support rep for example and you say Hey how do you make our company money if they can't explain it to you

they probably aren't doing it and it sounds as simple as it is but if someone says well you know I answer customers

questions and it's like how does that make us money now if they're able to say when I answer customers questions I

increase the likely that they refer other customers and I increase the likelihood that they stay and continue to pay for us so I help us get new

customers by delivering an amazing experience and I get the customers that we have to continue to pay us and if it

makes sense I recommend other products and services that we have that I can introduce them to sales guys who can explain that so we generate even more

revenue from them I'd be like one if you can articulate that you're probably not just a front like us you're probably a

director right and so that level of nuance the specificity is what shows

expertise and so when I look for and I'm interviewing uh for candidates I first I

I want to gather this once information as I can I want to drain as much knowledge as possible but I'm also really looking for the quality and

quantity of metrics they track and behaviors that they do to influence those metrics so in the hypothetical

problem that let's say we're trying to solve uh we have low clickthrough rates I'd be like okay this is the problem we have how would you approach changing it

right and then that actually gets me to understand what they would do in the organization because it's very easy to

say uh you know I'm going to come in and let's say a sales director I'm going to come in and I'm going to I'm going to improve the the sales team I'm like okay

cool what are you going to do you know I'm going to coach the guys up I'm like okay what does that mean and so just continuing to ask what does that mean

how do you do that until they're like okay well I'm going to meet with the guys every single morning and we're

going to do role play all right how do you role playay well we're going to start with the script and we're like the more detailed they get the more I

believe they can do it because they've actually explained what actions they will take if someone can't dial into

actions then it's very unlikely that they're going to take them and so what I just outlined is basically Three core

things so one is the quality and quantity of metrics that they track the second is the behaviors that they're going to do to influence those metrics

and then lading up to Third how do those metrics and these behaviors influence the revenue in the business if they can

explain that clearly you have a winner all of that is requires them to know if the person's

not bullshitting and also to know like what metrics matter right cuz someone could sit in an interview if for my firsttime

founder say a bunch of big complicated words it sounds good I hire them and that's really what I'm trying to

mitigate here is how do I not let a [ __ ] a pass me so assume I know nothing let's start there what do you

think customer service means and so if someone really has expertise so

Richard fan was famous this the physicist which is if you can't explain it to a child then you don't understand it well enough and so if they do confuse

you it means that they don't understand it or they're doing it purposefully neither of which are good scenarios you

said something during during that explanation you said you were talking about your like your founding partner at

school and you said that he was pursuing a CTO and he said if we can get this guy

he'd be amazing yeah so many entrepreneurs that are starting in business have that thought sometimes

they think if I could just get that guy from that amazing company to come join our garage where we're building this new

startup it would change our fortunes but how how do I get a truly

exceptional person who is being paid [ __ ] tons of money who has a comfortable job who has security to come join me in

my bedroom well I think there's there's the soft and the hard side right so the hard

side is the is compensation maybe you don't have as much cash so it's like you're going to have you know a few

levers at your disposal so you have what do you pay them in cash what's their upside if there's Equity or shares that

you're going to give them this is obviously if it's soft software business you can and I'm you know it's probably worth segmenting this so if you're not

in a software company which is probably the vast majority of people listening to this there are four elements within

Equity that that that exist you have control so who gets to call the shots

you have risk what happens if everything goes wrong who's liable you have profits

which is the cash flow of the business who gets distributions and then basically sale or Enterprise Value when

we sell or if we sell who gets to participate in that upside those are kind of the four elements of equity now

the thing is is that you can obviously Grant shares or you can give stock in a company that's one way of doing it but

you can also basically contract around any of these things now most of the times they don't want the risk and they

probably won't get the control uh if it's your company so you really just have profit and you have uh and you have

upside in terms of uh a sale and so you can contract these things and there's

lots of structur so I'm not going to get into legal around this um but asking somebody what do want sometimes it's

just a very powerful way of beginning this and my favorite question for these types of scenarios is asking what would

it take so when you have this guy it's like man it would be amazing like how do I sell this guy I just ask him what would

sell you so I say what would it take because I don't know he'll tell me and I

love that frame because it assumes yes it assumes you're going to come so what would it take how so many of the

books that you you write and so much of the content you make centers on this idea of sales yeah and it is a sale

isn't it totally and I I always think about the Steve Jobs quote where he met with was it John Scully who was working

at like Pepsi and he said do you want to consider continue selling sugar water for the rest of your life who you want to come change the world yeah um how

does that sort of emotional psychological element of this self factor into it persuading someone exceptional to come and join your

mission I think it's the amigdala story that we started with the nasal strip thing which now has actually reared its

nose multiple times poked its nose in a few times here but I think that pitch that you're giving to a potential

co-founder or potential early hire who's going to be a leader is the same more or less that you'd give to an investor it's

almost the same pitch except instead of investing Capital they're investing time they're investing their life they're investing their expertise but

fundamentally you're asking for investment I'm just asking you there's also this weird question

which I've I've actually never asked anybody but Founders often struggle with

do I hire naivity because that's going to probably create new solutions to Old problems like the young Scrappy kid that

gets Tik Tok or do I hire experience which is going to be more expensive more conventional and safe and I see some

companies lean too far either way yeah I have actually fairly strong

opinions on this oh great so I actually think it's um and I was talking to the CEO of butcher boox about this

particular thing um last week I think it's a barbell strategy

where you have people on either ends and very little in the middle interesting so I love lots of young hungry people who

are here for growth and want to learn and are ready to work long hours and just go all

in and the people at the call it the L the back half of their career that are

here that they they've made enough money they know they can get a job wherever they feel like it you're not doing them

a favor by giving them a job and they're not what I a term I hate which is careerists they're not obsessed with

their title they're not obsessed obsessed with their career path what their promotion plan is going to be they

basically have a litmus test which is like I have to have make about this to get to come in and do this with you but

they actually just really love the work and so these people are learning so the young people are learning and and

overcompensating with tons of hours and Reps and these people are bringing their experience to the game and creating

significantly more leverage with strategy the people in the middle are the ones that tend to be the pain in the

ass for everybody and I don't think and be clear here I don't think this is actually an age thing I think it's a

perspective thing so it's just are you here for growth or are you here to share

what you know and I think that it's the people in the middle that are like well I'm bringing something but I need some

it's like this kind of tit fortat relationship that um I would say the vast majority of people that don't work

out are in that bucket and what role does naivity play in Innovation here

because the kids that don't know the rules yeah are more likely to stumble across nuances right I think yes

uh you can fundamentally you can disrupt any industry if you don't know how it's supposed to go and so but that's I think

that really teases out something we said at the very beginning which is um starting from first principles which is

what are the few things I know to be true and then basically forgetting everything else and when you build from

those assumptions up you end up building a lots of different paths up the mountain that may or may not have been Trot in before I think one of the one of

the one of the most um ating things that can happen sometimes is that like you rederive a solution that already works

and you're like okay well now I know why this works right and I think but I think that's actually then you have more confidence in the path and you're like

okay that's fine but now I know why we're doing this not just because other people did it but because I understand why it works and so I think it just

comes down to what are the few truths that I know to be true and going all in on those things like I know that if

customers love my product they are more likely to tell other people about it than if they hate it that I feel very

confident so then we say okay what are the things that must occur in order to get someone to quote love my product AKA

increase the likelihood that they tell their friends about it or post about us and so now there's and you can break

this and again this is where quality and quantity of metrics matter so it's like how how much more Nuance can I break and

break this up into small pieces so it's like okay at what time do we deliver these messages or around what

experiences that have high likelihood of them posting can we decrease the friction around uh them sending friends

how can we make it both easy and how can we incentivize it and so all of these components whether it's a service business a physical products business a

software business it still works the same way is you know and for each each customer for example as we're taking

someone through this I have four Milestones that I look for which are the four RS so how do I get them to review

my product how do I how do I well in order it be how do I retain them immediately how do I get them to review

my product how do I get them to refer somebody and then how do I resell them

and so they're basically those for RS is what I try and take every customer through it's a very simple framework right when you think I was like oh man

customer success what does it mean it's just like well these are the four things that I want to occur and so all I'm trying to do is reverse engineer what

activities increase the likely that each of these four hours happen this year 55% of businesses

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RS but I also I think that what comes before the 4 RS is knowing how to get customers in the first place which is a

was a tricky one and actually maybe even the thing that comes before that is being psychologically prepared for

the the toll and the roller coaster that business is I found this um found this

graph of yours oh God yeah and I think for any founder starting a business it's

important to for them to understand this cycle um I think you call it like the crash burn cycle or something because if

you're not aware of the cycle when you hit certain parts of it you're probably going to think that there's something wrong with you yeah and but there's a

certain inevitability to this crash cycle I'll put it on the screen for anyone to see yeah this is this is the

entrepreneur life cycle until you learn how to break free from it and so there are six

stages you have stage one which is uninformed optimism this is where you

see your friend or you see something online and it looks like they're making money or it looks like there's some opportunity and you think oh my God that

sounds amazing and you have optimism because it looks great but it's uninformed because you have no idea what

it entails so then you dive in and you say okay I'm going to pursue this this thing whatever is it baking cupcakes or I'm

going to I'm going to do lawn mowing or I'm going to do crypto trading whatever second step is you get into it and

you're like oh my God I don't know there's so many things involved in this and this is significantly more complicated than I I expected so then

you become an informed pessimist you now know uh that it's hard or

significantly harder than you expected the third stage is you have your crisis of meaning or the value of Despair so

you're continuing to do this stuff it's continuing to not work and you keep working and it keeps not working and so

this is the step and this is the this is the point of Truth and this is the cycle where the the paths of the entrepreneurs

split and the vast majority of people take this next step which is they then say you know what

there's that thing over there that my other friend's doing maybe I should do that instead and so then they hop back

to uninformed optimism and then they go boom to inform pessimism and they just go around and around and around and they

live the same six months uh for 20 straight years now the other path of from the

valley of Despair is sticking with it and so then you become an informed

Optimist because now you understand you still understood all the bad stuff but you also understand the good stuff and

how to avoid the bad and maximize the good and then once you're there you do you stick on that path long enough and

you end up achieving what you originally thought was really easy and fast and so that cycle this is more or less the um

the Alex rosi life story which is why I can so intimately describe you to the steps is that I call that Loop and that

uh the person on the other side the woman in the red dress which is probably my favorite part of the Matrix movie

which is Neo who's the the main character uh is in a program to teach him one thing and so he's walking uh

through the crowded streets of what looks like a New York City with Morpheus leading him and uh he's drawing on about

something that he's supposed to learn and he says Neo were you listening to me or were you looking to the woman looking at the woman in the red dress and and

Neo was looking at the woman in the red dress as Morpheus is talking and then he says look again and he looks back at the

one the dress and it's agent Smith with a gun point at his head and in that moment he's like freeze

and he explains that you're either one of us or one of them and they are the

people who are Sentinels sent to destroy us and so what appears to be the woman in the red dress is actually a a an

agent from the system meant to destroy the opportunity that you're in right now and so I love the woman that red dress

so much because it's so real because you're in this thing you're in this relationship with your business and

you're like you know this girl seems great and then you you get to know her and you find out she snores when she sleeps and all of a sudden it's like you

know uh you know you see you see the sweatpants and no makeup in the morning and you realize that sometimes she's

Moody whatever but you get to you start to get to know you're like I don't know if we're going to get married like you know this is kind of where we're at and

then you see a woman in the red dress and you're like you know what I think that's the girl and so you quit this

relationship with your business and you get into that relationship but then you realize that that girl has crab she has a crazy ex-boyfriend and you're like oh

my God I didn't want to deal with any of this stuff right and so my CF so was one of the first people that were like oh my

God I hired that person it changed everything so my CFO in gym launch um had taken four companies from 0 to 100

million um she had done over 40 m&a transactions her largest one was 5 billion super experience um she was the

very end of her career and she was like I'll take you guys I'll I'll take this one last ride with you guys and so you

know mind you Leila and I I'm 26 or 27 at the time Leela's 23 24 and we're sitting across the table from a very

experienced business person being like please help us and so one of the things

that she taught me that I I'll never forget is she said the grass is always greener on the

other side you just don't know that it's fertilized with [ __ ] and she and she she's Southern so

she have this deep southern act she's like there's always [ __ ] yeah [ __ ] everywhere and so she's like I've been

in enough businesses to know that all businesses have [ __ ] and so you just have the [ __ ] you don't know about and the [ __ ] you do know about and you're in

this business and so this is the [ __ ] you know and that has been so profoundly

impactful in my life because it was so hard for me to break the cycle really hard for me um I mean I gave you my my

life story of the many businesses that I've been involved in and so like the entrepreneurial add has been so real for me and I've made some of the biggest

career Mistakes by just pursuing and splitting my attention between multiple Endeavors and I can say truthfully that

this 2024 was the first year and this is now 2025 the first time in my life where I haven't experienced fomo so fear of

missing out and it was one of those things things that I just always had I would see somebody doing really well like oh man I mean I should be getting

into that like that I shouldn't be doing this I should doing that um and it was it was one of those things it's kind of

like being happy where like you don't realize you're happy you just look back and you're like you know what that was a really good year you know like you kind

of like you kind of see it in retrospect what I realized was that now when I hear someone say like oh my God I crushed it

with this thing I think that's amazing for them I'm sure there's tons of problems that I don't know about and that's amazing but I'm going to keep

doing this thing because this is the only thing I know how to do pretty well and I'm just going to keep compounding my information advantage against everybody else who thinks this is easy

and wants to get into it and so um I think that that every any any massive company that

you know of has existed for multiple decades and in order for something to exist for multiple decades the founder

has to stay focused on that thing for the whole time and I measure focus by the quantity and quality of things that

you say no to and I measure commitment or I Define commitment as the

elimination of Alternatives and so if you think of marriage as the commitment then it is the ultimate commitment

because you've limited literally every alternative besides this person and so I think that many business problems and

many entrepreneurs would 5x 10x their business if they simply gave themselves

no way out this is what I'm doing and I'm I mean the term you know burning the boats

but I'm eliminating all Alternatives and structuring my life such that I I make

it very difficult to pursue the Alternatives and I think by doing that you can actually conquer this this cycle

and make it past the split where you go uh Crash and Burn and then restart the Doom Loop or make it to informed

optimism and then eventually to the achievement that you want there's so much there there's so

much there but it's such an important Point um so where should I start so at that

moment here this crisis of meaning moment yeah what I see so much of is

entrepreneurs not necessarily quitting the old thing but just taking on something else and get entrepreneurs

will come up to me in the gym and they'll say hey Steve um just want to let you know what I do and see if you can offer me any advice and then they'll

list three things they'll say I'm starting this crypto thing with my friend Dave I've got this hair business where we're selling on Ecom and I've got

this other thing and they almost assume that the more things they're doing the higher the probability that they'll be

successful in something my mom was that my my mom has

started 30 businesses and I watched for my whole childhood how she was start a

hairdressing salon and then the person down the street running an estate agents would come in and say we're making loads

of money as an estate agents she'd start that that business would suck she'd hit this moment of crisis of meaning she' then start a Furniture business and a

and then she she so she jumped between 20 to 30 businesses and it's kind of

still happening now where they last six months they eventually go bust she sort of like you know like the monkeys that

swing to the next brch swings to the next thing and there's never been the escape Velocity that comes from this formed optimism

part so yeah this it really rang true for me in every sense of the word this idea of like a focus going against all

of your instincts and your emotions but being pivotal to achievement I think

entrepreneurship is far more a war of the heart than it is a war of the mind like we can understand what we should do

we just don't do it and I think that's why um we are so much better at giving advice than we are at following it so

most people if they just followed their own advice they'd be successful right and so um with this

kind of valley of Despair I call it um Niche slapping it's like don't make me nit slap

you which is like when you have three things going on it's like let me like slap you into just picking one because

the thing is is that any of them can work but none of them will work unless you pick only one because it's actually

in my opinion an exercise and arrogance to assume that you doing three things is

somehow going to beat somebody who's doing one and I can promise you the competitor who is going to beat you is

only doing that one thing and you think a third of your time is going to be there no it's not going to I think it's

arrogant and so there's actually like an under there's like an underpinning of egoo underneath of this and I say this

to somebody who did this so like when I had the launch business I also had my six gyms I also had a chiropractor

agency and I also had a dental agency and so I would introduce myself I'm like oh I own lots of companies but I think

one of the biggest Mis conceptions when you're an entrepreneur is not understanding the difference between being an owner and being the CEO and so

they might hear that you have a portfolio they might hear that I have a portfolio and be like okay well they have a portfolio so I must model that

that guy's tall I should play basketball doesn't work that way right I should be so if I want to be rich I should fly private doesn't work that way right um

it's conflating order and so we must do these things in order uh

to get the outcome we have to concentrate on only one thing in order to get the outsized return

and that spreading of attention especially when you're newer in the entrepreneurial career it's like you

already don't know so many things how do you now want to have three sets of unknowns that you want to try and Conquer at the same time and the the

fallacy of thinking is that I'm going to try all of them and see which one works but none of them will work because

you're waiting to see which one will work because you can force in my opinion you can force one thing to work provided

like I'm I'm going to just assume BAS like you're selling you're not selling $5 bills for $4 like like you know the

normal economics of a business like if if if if a real estate business exists there are other people are making money there are hairon businesses where people

are making money there are lawnmowing business where people are making money you can make money in all of them you just can't make money in all of

them at the same and it it's when you walked in today and you sat down on the chair I said like what's going on with

you professionally I remember what you said you said more of the same and better which clearly comes from your

wisdom my my infinite wisdom right well it's just from from from from from suffering um the the the wo of this

like the biggest entrepreneurial mistakes I've made in my career have all come from splitting my attention every

one of them like every single one of them like I talked about how I had the e-commerce business that I bolted on to

my to my licensing company I should not have done that as soon as I did that my my Revenue started slowing down and it's

growth why did you because I was add like I just I was like oh my I don't

want to leave money on the table and I want to I want to be so violent about this you are always going to leave money

on the table that is the result of focus but you're you're leaving a small amount

of money on the table to pursue the much larger money that's on another table of just sticking with the thing that you're

on right now because compounding if I were to show a chart here it's like if you're at year three of your thing and

you want to think about moving to year zero of a new thing you have to compare maybe year zero of a new thing grows

faster but it has to grow faster than year three to four of the thing that you're on right now and I think that's

that people will compare year zero to year zero but not year four to year zero and the thing is is you actually we have

a linear life and so we that is it's an unfair but true comparison of the opportunity cost and every exceptionally

um successful entrepreneur that I know has just stuck with one thing for such an inordinate amount of time and I think there's a quote by um I want to say

Shane per is but he said um success is doing the obvious thing for an

extraordinary period of time without believing that you're smarter than you are and it's just like you we we know

what we need to do and comp so we don't need to make our lives more complex complexity will come

with scale I promise and so just simply trying to do more of what you're already doing well is already hard enough don't

add anything else and so like if you need to write some sort of commitment of like I'm just going to stick with this

then do that but the what happens is we were talking

about the levels earlier about like beating the bosses so what happens is

you know how to beat boss one through three of of the game and so then you

just say okay well I'm just going to start the game over and beat boss I mean this is this time it's going to be different but then you just get to level

three again and then you're stuck again and so people just keep getting up to level three and new and and and new

Endeavors over and over again because they never learned how to get past that boss and so you just have to confront

the uncertainty of knowing that you don't know how to do it but that you will figure it out if you keep doing

enough repetitions and that's where you talk to as many people as you can you see what they said you consolidate it

all you say I think this is the highest likely path it might not work but I do believe fundamentally that if we cut

people's hair well and we do it for a long period of time we will have a thriving business and if we have a

really good model from that thing we might be able to open up another location and if we keep our costs down we might be able to have an actual model

that we could either invest our own capital or bring somebody else and take it national like all of these like I

have yet to find a business that can't get to $100 million a year that has a permutation of it that exists you're a

dry cleaner fine well cool we'll build the model and either we're going to license the model we can franchise the model out we can get outside investors

we can scale it nationally we can do it but the crazy goals are only crazy because people crazy timelines they're

actually very seane goals if you extend the timeline out if you have a a true 10 year goal or true 20- year goal almost

anything's accomplishable I mean almost every multi-billion dollar company is

about you know they get it's usually between like years six and 10 when companies get to kind of like those big

numbers and most people who are listening to this are five years into entrepreneurship but you're six months

into the thing that you've been working on right now and you keep restarting the clock for getting to year 10 every time

you start over and I think that's the part that it took me a very long time to figure out and I think it takes a lot of

entrepreneurs like everyone messes around with a lot of stuff in the beginning because you just don't know what you're doing and so in my

experience it takes about five years for most entrepreneurs that I know to just like find something that works like like

takes about five years to figure out which way is North yeah right and then it takes like another five years and a

lot of people that's it like they they restart they they they go off Crash and Burn um and it takes another 5 years to

build something that can can create generational wealth so it's about a 10year slug and here's the really hard

truth about it if you have a job right now for almost all of that five years

you quit your job because you don't want to work as hard as you are and you want to make more money and as soon as you

quit you will realize that you are now going to work way harder than you were and you're going to make less money for

an extended period of time the one benefit is that you get to claim all responsibility for how little you make

and how much you work because you're like my boss is an idiot and it's me but it's the truth and I

think that in some ways having that um optimistic ignorance is actually one of

the really redeeming traits of entrepreneurs and one of the really hard Parts is that the biggest jump you have

to make gets so immediately reinforced from the freedom you have from being able to you know chart your own

path but that big success of quitting one thing

and starting another you need to immediately forget and I think that fundamentally that is why so many

entrepreneurs keep doing it is because the first time you do it it's the biggest rush ever you quit your job you

do the business and and you get some some first traction and that that first dollar that you make when the new business is like the best dollar ever

right but it such a strong reinforcer that what does it reinforce it

reinforces stopping what you're doing and St starting something else and so I think one of the fundamental errors of

Entrepreneurship is that sometimes the jumping ship to start this thing is the

lesson that you need to immediately unlearn because after that you have to just stick with it for a very long

period of time there's also something in that entrepreneurs don't go into starting a

company with the belief that their hypothesis is wrong so in year one or

seven months in when they realized that their initial hypothesis was wrong they think that means abandoned [ __ ] because

my hypothesis was wrong whereas successful entrepreneurs that I've met especially second time Founders realize that their hypothesis is almost

certainly wrong from the jump and that the process of starting is to correct and to find a new hypothesis I think

about like Mark Zuckerberg in his room with like face swap or whatever it was rating people's attractiveness and now

meta is this like virtual reality AI company yeah but understanding that your hypothesis is wrong from the jump and

that you know this is a process of finding a new hypothesis I think would give you a little bit more p patience as well through these cycles of the crisis

of meaning and so on so two things so one is I had this tweet that went like super viral but it was like uh

first-time founder hey I need you to sign an NDA before I tell you my business idea I know you've gotten I

know I know you have third time founder uh here's everything I have

here's all the documents here's all the projections it's probably all wrong and this probably won't work um but I have a

couple smart people and I think we'll be able to f figure it out it'll probably cost longer and take longer cost more and take longer than we think but we

think it's worth a shot and that things because everyone

who who who's been on both sides of that understand like the entrepreneurs got it because they're like oh my God I was that guy um and all the investors get it

because they're like oh my God I deal with this guy all the time but actually what you just said with the many many

iterations that from your original idea until what actually happens is yet again one of those um demonstrations of the

difference between a beginner an expert a beginner has binary thinking so they think this worked or it didn't work and

if it didn't work then I need a new idea rather than having the Nuance thinking of a master or an expert or Advanced

person who says what about this if I click into it I break it into its component parts what about this didn't

work okay it's not that meta ads don't work or advertising doesn't work it's that we didn't nail the hook in our ad

or that we didn't make our our offer clear enough on the landing page or it was not congruent with the advertisement

or um you know it was the offer itself wasn't very compelling or it didn't have it didn't like it was just this we

everyone's coming in and saying yeah yeah I kind of want that but this is actually my issue we're not solving the core problem so it's it's always in the

in the details it's always in the sifting through the many small things that you find the kernel that ends up

fixing uh the business I mean I know that uh Facebook was trying to fix their

virality issue and they were locked in a room for days trying to figure out how

they could get more users to retain on the platform right people would sign up but then they wouldn't do anything and then they they drop out and so finally

um Zuck just said okay we have some belief that if people have more friends

that they will engage and so they didn't and here's the thing like with the uncertainty they couldn't prove it he

just was like I feel like that's better than them not having friends and so he said all right the new goal is 10

friends in 14 days that's the goal so we have to create the experience so that we can get it to introduce them to 10

people or connect them with 10 people they already know on the platform within 14 days and as soon as that happened

then obviously Facebook took off or continued to grow and so he wasn't like

oh Facebook doesn't work anymore or social networks aren't going to be a thing it's it's usually way smaller and

way the adjustment you need to make is much more nuanced than what you originally expect if the foundational

principle of like cutting hair mowing lawns whatever it's like this problem exists and I can charge a certain amount

and make a profit on it then there's nothing wrong with the business it's just what is the constraint that's holding us back and then usually zooming

into the constraint and realizing there's 20 things that are contributing to the outcome not one and that's where expertise and that and you develop that

expertise by trying and failing yeah and that's and that's just the name of the game and so I think you have to have an

incredibly high tolerance for failure without internalizing it and feeling like you yourself are a failure as a

result of failure well this is it when I started my first business at 18 years old called wallpark social network whatever um I thought the

game was to be right yeah I came to learn from businesses that came after

that actually the game of Entrepreneurship is to be successful and they're two very different things to win

because when you want to be right you not only want to be CEO and you want your hypothesis that you put in that first um Pitch deck to come true and

even when customers are telling you that you were wrong you try and force the [ __ ] hyp yeah but when when your game is to

be successful there's a couple of really interesting things that I observe happen one of them is you I watch Founders say

actually maybe I'm not the best person to be CEO yeah even though I founded this thing maybe I should be Chief brand officer when I think about some of the

top companies in the UK represent just valued at 100 million Jim shark Ben's

business valued at 1.5 billion Julian's business probably valued at a billion I'm involved in some of these businesses

in different ways but um the thing they all have in common is at some early point the founder their ego secondary to

the success of the business they said actually I'm not the best CEO I should be head of brand or marketing product or

product or whatever it is and that's that mindset shift from being I need to be right and I need to be at the helm of

being right versus this thing needs to be successful and this goes back to the

who which is if you if you at some point if you want to have a really

ridiculously successful company it will require more lifetimes of expertise than you can live and so then it's it becomes

a recruiting game like very quickly almost all business becomes recruiting which is how do I I mean if

you if you listen to Zuck talk about it you look you listen to Elon talk about it you listen to to Steve Jobs talk

about it Steve would talk about how the best players that he had in the company he would set aside like a year to 18

months to bring them in amen and he said every time I you know I I I knew who I

wanted and then I would he's like you know I would take some calls with other people and I would just be like but

they're not John they're not John and so he would just keep working on them and working on

them and working them and eventually they're like you know what fine they like give up they're like if this guy's

this persistent like he probably will be successful on but he will take us there and I think that like people are the

highest leverage thing that you that you can bring into the company outside of you know crazy technology I am one of my favorite

videos of all time is where Steve Jobs who you just mentioned talks about hiring tril exceptional people and he

says words to the effect I'll play it on screen he says um people think the success of Apple is a consequence of me

and my talent and my skills but what I've actually done is I've built my career quote on hiring truly exceptional

people doing the extremely hard work of finding them and hiring them and this crazy thing happens when you do that is

it propagates I a players then want to work with a players they also hire a

players and it spreads I think it was this video I've

built a lot of my success off finding these truly gifted people and not

settling for B andc players but really going for the a players and I found something I found that when you get

enough a players together when you go to through the incredible work to find you know five of these eight players they

really like working with each other because they they've never had a chance to do that before and they don't want to

work with BNC players and so it becomes self-policing and they only one hire more a players and so you build up these

pockets of a players and it propagates the thing is is that it's

just like money won't make you happy it's one of those things that like every founder like has to figure out for

themselves but the thing is is and I and I've had obviously a bunch of conversations around this but

like what you think is an a player today is not what you will think an a player is in five years and so I think one of

the the hardest mental hacks around this is trying to project yourself into the future into the size business that you

want to have and say who would be an a player at that size and scale and then

coming back to the present and saying how do I get them to work for me today amen and it's it's really and so as a

mental process for anybody who does have a business right now and has some employees if you like everybody right

now you probably have some version of your a player because every business has at least one hopefully right besides you um imagine your business had five of

those people like you picture in your head you've got that one person now you have five of them how much more would

you make would you would you double would you would you five would you 10x would you 50x and sometimes you realize

you're like no I think I would actually 10x and so if that were the case one Not only would you 10x the company number

two the value of the company would more than 10x because it would no longer be it would be significantly less relied on you and it'd be more reliant on the team

that you've built number three if would happen faster because you would have more barrels that were firing concurrently

moving things forward and those those pieces when put together you have to

then ask yourself from an opportunity cost perspective what other activity could I be doing that would have the

possibility of texing my company doing it faster and increasing the Enterprise Value multiple that's not that and if you

can't find one then it means you're working on the wrong stuff and I think that is one of those um great litmus

tests of like if I can find something and I'll give you a really simple one that's not not human B the talent based

here something as simple as calling your leads so there's tons of research that suggest that you can four 5x your

conversion of leads by calling them within 60 seconds of them opting it for any product you

have if you have all of these priorities they have across the company does any of them have the high

likelihood of four or 5x in your business immediately with very low cost of doing

so less so than just calling the leads within 60 seconds if the answer is no

Then by God why are you not calling all your leads within 60 seconds the fob question would would be like well I

don't have enough people to call our leads within 60 seconds so then we'd say okay what is 4X the revenue of your

company worth okay what does it cost to hire one person who whose only job is to

just call the leads now I recently talked to a Restoration company so they did water damage for homes when they got

hit by storms and he told me he said he was converting 55% of his leads not calls leads and I was like how on Earth

are you doing this and I was like well how many leads a day do you get he said two or three I was like okay so what's

the process he's like oh it's really simple uh my aunt I pay her $60,000 a

year and she has only one job she has no responsibility in the company besides the moment a lead comes in you stop

having sex with your husband you stop you stop you stop cooking you stop loving your child and you immediately call the lead that's the only

responsibility she just has to make three calls a day at the moment the leads come in and he pays her

$60,000 and that brings in millions of dollars of Revenue and So you you're not

going to pay for it out of the dollars you have now you're going to pay for it out of the dollars that you're going to make that you're not making yet because

you haven't done it yet and so pin in that

back to the people I think the hardest time I we call this the swamp at acquisition.

comom but it's usually between like 1 and 3 million is the swamp and I think there's a numberous reason for why it's

such a painful period for entrepreneurs let's say 1 million for

simple math if you have a million-dollar business let's say that you have 20% margins so that means you're making

$200,000 a year in profit for you to get an a player it's probably going to cost

you 100% of your profit to get that a player and so you'll have what appears to be an impossible Choice you'll have

do I sacrifice basically 100% of my profit to bring this person in or do I

work another six hours a day to to do the job that this person is doing both

paths work both are painful and risky because the overworking yourself thing

you can get yourself through that hump and then now you're at maybe 3 or 4 million and that 20% is 800 you can you

can spend 200 you still have cash flow you can still live the downside for the picking the person path is that what if

you pick wrong and this by the way ladies and gentlemen is why entrepreneurs get

outside returns is because we take on outside risk and so this is the this is

the job is that we have to be willing to make impossible choices and the vast

majority of choices for entrepreneurs in the business are impossible choices between two relatively bad scenarios

because the rest of the choices aren't don't even feel like choices because they're obvious of course we should car

leads faster of course we should follow up more of course we should try and onboard faster okay all these things are the obvious ones but when you

have man I'm trying to think of the ones I I'm not I'm not almost all the decisions that you

get stuck with and Elon says this really beautifully he says um running a business is like staring

out to the abyss and chewing glass so because uh the staring out to the abyss component of it is just the fact that

this may never work and you're almost facing existential risk at all times to

the business and the eating glass component is that you will by nature of your role get funneled the worst

problems in the business and the problems that no one else can solve so it's one problems that people can't solve two the worst ones or that they

they don't want to solve and they suck and so you basically become a filter for the worst things and that's why it feels

like a fire every single day in the business because you're the only one who can make the tough call because no one

else wants to choose between these two impossible choices and you're like why is it so hard and the thing is is that

it literally never stops being hard it's that the currency that you pay for in the hardness changes and so you know a

lot of people have this envisionment of like the rocky cut scene of like it must be hard for business but I don't I don't think that's where the hardship comes I

think the hardship is that at every level of business there's new sacrifices

that you didn't know you were going to have to make because if it was just oh I have to work long hours there's tons of people work long hours in their business

and don't don't grow and it's usually because they're unwilling to have a hard conversation it's a different currency

right they have to take on risk it's a different currency they have to um they

have to they have to make some sort of BET right that they otherwise wouldn't have had to make they have some sort of legal issue that they encounter they

have an employee who tries to sue them for some sort of Mal whatever right all of a sudden you're like wait all of

these things are happening and they happen on a regular basis and at each level you unlock new levels of glass

that you get to True through and so this is why like most entrepreneurs in my opinion don't actually quit they fizzle

so it's not a big bang usually it's they just they stop seeking so either they

get content at the level that they're at and they just don't strive for more um and sometimes they say it just wasn't

worth the trade and I respect that if you're like you know what I'm at a million dollar a year and I don't want anymore fine you won congratulations

like you won at life um but most of the time they don't really quit they just stop trying and then they just either

coast and or it just Fizzles into into nothingness and that's just my experience of having I'm sure you've

seen this having gone through like cycles of entrepreneur it's like Seasons it's like oh yeah I came in through even

like in the media and influencer space whatever it's like there's a bunch of guys that 10 years ago it's a different landscape now than it was 10 years ago

some people adapted some of them were like I don't like the they they just they just they weren't willing to chew

the new glass which is how do I learn Tik Tok how do I learn but man blogs were so good it's like yeah and they're

not anymore I talked to an entrepreneur really massive many hundreds of millions of year in sales and he was like dude we

were killing it on infomercials so TV and he's like we just you know we uh we

just we really just have to crack YouTube and I'm thinking to myself like dude it's 2024 like what like you needed

to crack YouTube 10 years ago and he had the resources to do it but it was just a different kind of hard and so most of

the hard is one a level of uncertainty that that goes into it and almost

certain immediate failure because the first thing you're going to do will probably not work and again it's the

iterations of when you get into the new domain you have to transfer your generalized knowledge which is that as

an entrepreneur I will know that this doesn't work probably because I only know four things about it and I need to

know like 400 and so I will get my first shot and I need to get directionally correct and then just keep doing more of

that and so I gave the Consulting way of learning kind of like a new space but if you want to learn a new skill the

fastest way that I do it that's outside of courses or anything is tremendous volume of activity so whether that's

like I want to take a lot of sales calls I want to do a lot of Outreach I want to make a lot of content I want to do a lot of customer success calls whatever it is

you do a hundred of those and then you say what are the top 10% of these okay what did these top 10% have different

than the other 90 and then I say okay well these ones had these three things that were different let's try and do

those three things on the next 100 and then because of the variety of life there's going to be some new variables

that exist that you look at the top 10% of the next 100 and you're like okay we did those three but there's also two

more things that happened in this 10 versus the other 90 now let's do all five of those things and over time this

is how you develop a checklist for making Banger content and Banger videos and I'm sure like there's this clip

David Perell talks about Chris Rock's creative process and he says how is it

that you see Chris Rock at Madison Square Gardens and it's just like 60 Minutes of just fire you're like how is

this guy so funny and it's because what you don't see is the many small clubs and the first club that he goes to and

does a whole hourong set and has like three moments that people laugh a lot about and he's got like five minutes

that are good and the other 55 minutes basically suck and so the next time he goes to a club he takes those five

minutes puts them at the front and then he tries all new material for the next 55 minutes and he gets another 5 minutes

and he continues to repeat this process and put the new stuff at the front until eventually is 60 Minutes of uninterrupted laughing and then people

are like oh my God he's so talented I can't believe that he can just stand up there and talk into a microphone and make everyone laugh cross age boundaries

cross cultural boundaries um cross you know all of the boundaries that you might imagine how can he be so funny to

everyone that's how how can that guy be so good at writing well he looked at the stuff that he wrote he found the best

stuff made it into the the few things that he always does and then kept writing and that fundamentally is the process of learning anything and it's

usually not one thing it's many small things that when added together in aggregate create the outside returns

sorry that was a little Pulpit there I just get violent about skill acquisition like that's what it takes so interesting

but it's so interesting to see your journey through that and how and how you you you ended up at skill acquisition because I was as you went through there

was three things that I was thinking about and I managed to write them down the first at the top of it was you you

detailed three reasons why hiring the um exceptional person when you're faced with that Paradox of what do I do with

my profits Mak so much sense one of the big things I hear from Founders that they don't appreciate

is to go for a long period of time you have to have some kind of emotional

regulation and as you were talking about the the different levels of business and every level you have more problems what

I often see is a young founder hasn't hired those levels in between to deal

with all those different types of problems and they are like burning out and thinking of quitting I had someone in my office last week and she's on

route to build about a $50 $50 million business this year and the first question I said to her was what's your

executive team and she just like rolls her eyes and she's like I don't have an executive team she'd done a post on

social media basically in tear saying that she was going to quit she's got a 30 to 50 million business it's growing

like wildfire but she's about to almost quit it because she's dealing with every single problem and often Founders say to

me they think because they're experiencing so much hardship in that like 1 to three million phase that

forever it's going to be just huge pain and I talked to them about this thing I called the promised land I love this cuz

cuz I cuz in the first two three years of my business I thought that forever I'm going to have to deal with every [ __ ] problem Jenny and the offic is

pissed off at Dave and on Saturday night when they were drunk they did something which they shouldn't have have and I realized the problem was I hadn't solved

for hiring these levels so everything was coming to me and the emotional toll and my nervous system of dealing with

problem was not sustainable and then I accidentally hiir someone good yeah who I mentioned and from and she dealt sheal

with all [ __ ] and then I could think again as a Founder right so I wanted just give a moment to that and your

thoughts on that I want to do my best shot at operationalizing what you just said for someone who's

listening when we have when we encounter this issue we have a specific process that we go through and so we tell the

founder I want you to make a Google sheet really simple and I want you to have the time slots from 5:00 a.m. to

you know midnight what however long you work in 15minute increments and I want you to set a timer easy timer kitchen

timer like for cooking for every 15 minutes and every 15 minutes I want you to when it dings I want you to write

down what you did one or two one or two words doesn't doesn't doesn't take a lot now as soon as I say that people are

like oh my God I don't have time for this I will promise you it will be the most productive week of your life because you will be aware of how you're

spending your time every time I do this I immediately think I should do this all the time and I don't so just do it just

do it for the one week okay and so what happens is you'll do it for a whole week and then what the second step of this is

you'll look at that and you'll say okay wow I didn't know that 40% of my time is

dealing with this thing and I can hire a role to handle 40% of my time for this

amount of money if I had 40% of my time back I could double this business and

that would be worth significantly more than what I'd pay this person and then you look at the next 13 you know 15% of

your time and you're like okay is this something that I can give to somebody else like can I can I push this down can

I create some process around this that can correct it or do I need to keep eating it for a little bit until it's enough that it's a full-time role and so

fundamentally I see the entrepreneur as the the many hated fractional that you

continue to pull things under your plate until you have enough that you can ship it out to somebody else full-time and

being aware of again the one resources we have which is time how we're allocating it so we get the highest

return and so if you look at the stack of time as an entrepreneur we are always getting paid for our time kind of the

premise of the the whole the whole talk here um is that we trade our time for dollars and so we always the whole

process of Entrepreneurship is continuing to trade up what you're trading your time for and that's it like

at the most foundational level that is all we're doing and so to take this as a

hypothetical your business doesn't need you right now you spend spend whatever

hours you do working and you do these things imagine a world where you could hire somebody who could spend the same

amount of time doing all that stuff now you own the business and whatever you have to pay them you take out of the profit and everything else is now

distributions that you own as an owner that's it now the entrepreneur

who's Missi driven then Stacks their plate with even more things that they need to do and then just continues that