- The biggest mistake you can make is to try to become a millionaire in 90 days.Almost anyone can become a millionaire in a decade, but you have to be willing to: (1) NOT be a millionaire for 9.9 years. (2) Put in more hours of work than anyone else. (3) Avoid shiny objects and get rich quick schemes. Very few people truly want to do that.
- Figure out how to get more revenue per customer. A business wins by making the same customer more valuable to its business than to that of its competition. Read Alex Hormozi's book. Read Russell Brunson's books.
- You have to develop your skills to the point where you are a real expert and can over-deliver on your promise. There is no shortcut.
- All businesses are information arbitrage. You are selling your expertise to someone that does not know how to do what you do (or doesn’t want to do what you do).
- Sales skills translate into all areas of life. You have to “sell” to motivate your team. You have to “sell” to get people to work for you. Study persuasion and influence. Read Robert Cialdini's books.
- When you first start a business, do things that don’t scale. Do one-on-one help. Go on a flight to close a deal in person. Do sales in person and sign them up right there—don’t just send them a link, go on their phone and complete the Stripe checkout.
- Cut out toxic people. Cut out people who waste your time.
Business Scaling Bottlenecks:
- Promotion $0-1 million. Focus on YouTube and (affiliate) marketing until you make $1 million.
- Product $1-10 million. Focus on making the product great to make $10 million.
- People (partners, employees) $10-100 million. Find the best partners and hire the best employees to make $100 million.
- Investing $100m-$1B. Invest in other businesses to make $1 billion+.
Focus on one business. One thing. It has to be something that is not commoditized. Find the most difficult problem in your field and work on it.
Analyze your business partners, employees, friends, and acquaintances:
- Do I trust this person with my wife if I wasn’t there for a long period of time?
- Would you trust them to hold a huge amount of money for you?
- During the holocaust, would this person let you hide in their home?
You need to deeply evaluate their character before having a relationship with them.
How to evaluate a business opportunity:
- Total addressable market (TAM).
- How much profit can you make? What are the margins?
- How many competitors are there and what barriers to entry are there?
Ex) Supplements have a huge TAM and a high margin, but there are a TON of competitors.
How to increase your market (TAM):
- Upmarket: sell the same thing to larger entities (Ex. Hair salons)
- Downmarket: sell to smaller entities (Ex. Hairstylists, or aspiring hair stylists)
- Adjacent market: similar demographic (Ex. Eyelash salon, nail salon)
- Broader: all adjacent markets under one umbrella (Ex: beauty)
- Narrower: Get more specific about the prerequisites you require for someone to become a customer
You often want to start by going narrower because you don’t know who your target audience is and you should figure out whom you want to serve and who the best clients are. Think: what do all of our top 20% of clients have in common?
The domain name Acquisition. com costed $400k. Marketing. com would have been $6 million.
Whenever you’re working, you should either be learning or earning (or both).
Give money back guarantees. Take on the customer’s risk as your own risk. Basically, if you don’t get them results, you don’t get paid (or you have to pay them!). Your guarantee should scare you. It should scare you into becoming an expert and not messing up.
You need a team to grow past $10 million.
If you have a great product, you don’t need marketing because people will tell others about it (word of mouth).
Do ONE thing. No side hustles. No other businesses.
Your attention is your most important asset.
No drinking. No drugs. Get good sleep.
Do the minimum number of workouts to be healthy. About 4 hours/week in the gym.