WEBVTT 1 00:00:00.000 --> 00:00:03.360 one of the highest leverage opportunities that exist is finding people to help you do stuff, 2 00:00:03.360 --> 00:00:06.880 which is the first level of leverage. The next level of leverage is to compress 3 00:00:06.880 --> 00:00:10.960 other people's time as units of money that you raise from them giving you money to then go 4 00:00:10.960 --> 00:00:16.560 allocate on your own. Just capital. The wealthiest people in the world see business as a game. 5 00:00:16.560 --> 00:00:20.240 This podcast, the game, is my attempt at documenting the lessons I've learned on my way to building 6 00:00:20.240 --> 00:00:24.080 acquisition.com into a billion dollar portfolio. My hope is that you use the lessons to grow your 7 00:00:24.080 --> 00:00:27.920 business and maybe someday soon partner with us to get to $100 million in beyond. I hope you share 8 00:00:27.920 --> 00:00:32.880 and enjoy. What's the billionaire morning routine? What's the millionaire morning routine? 9 00:00:32.880 --> 00:00:36.160 Right? A lot of people ask these questions. If you look on YouTube, you look on Instagram, 10 00:00:36.160 --> 00:00:40.240 you look on TikTok, it's some of the number one performing content is so-and-so's morning routine. 11 00:00:40.240 --> 00:00:45.040 XYZ's morning routine. The five things so-and-so does the moment he wakes up, right? And it's because 12 00:00:45.040 --> 00:00:50.800 everyone's curious. The question is why. And I think if we dive a couple levels deeper, it's because 13 00:00:50.800 --> 00:00:56.240 they don't know the question to ask. Okay? So they think that there's some magic pill or some 14 00:00:56.240 --> 00:01:01.360 super five step thing that's going to somehow get them to do the work. And so the issue is we 15 00:01:01.360 --> 00:01:06.880 have to define what productivity even means, right? What is productivity? Productivity is getting more 16 00:01:06.880 --> 00:01:12.160 done per unit of time. That's what it is, right? And so what's interesting is that people approach 17 00:01:12.160 --> 00:01:16.560 the problem of the fact that they're not getting enough done per unit of time and they think that I 18 00:01:16.560 --> 00:01:22.160 should add more things that are not getting things done to become more productive per unit of time. 19 00:01:22.160 --> 00:01:26.000 Well, that doesn't make sense, right? Why do people not think that way? Because people don't 20 00:01:26.000 --> 00:01:31.680 define the terms that they use. So again, productivity, more shit done per unit of time. And so their 21 00:01:31.680 --> 00:01:36.960 solution to that is add more stuff that's not getting work done. Huh? Doesn't make a lot of sense. 22 00:01:37.840 --> 00:01:42.480 So if we were to try and think of like the perfect morning routine, right? We should think about 23 00:01:42.480 --> 00:01:46.960 the reverse of that, which is what's the worst morning routine. All right? So how can I create a 24 00:01:46.960 --> 00:01:52.720 morning routine that would make me the least effective, right? Get the least amount of stuff done. 25 00:01:52.720 --> 00:01:57.680 One, I'll make it long as humanly possible, all right? Number one, number two, I'd have lots of 26 00:01:57.680 --> 00:02:02.960 steps and processes involved, all right? So that I could use up lots of mental energy before I could 27 00:02:02.960 --> 00:02:08.160 even start working, all right? So lots of time, lots of mental energy. Number three is that I would 28 00:02:08.160 --> 00:02:12.880 become very, very reliant on that thing. So if I don't get this one thing in, then it means I 29 00:02:12.880 --> 00:02:18.240 cannot work, right? So I'd also increase how fragile I am and dependent I am on this superstitious 30 00:02:18.240 --> 00:02:23.120 process that I've evented or created in my life. And the reason that I meet that side quest on this 31 00:02:23.120 --> 00:02:28.080 is that I saw this, there's this viral video, which is like, you have to make your bed in order to 32 00:02:28.080 --> 00:02:32.400 become a millionaire. Like it starts with the small things. And the problem with that is that we're 33 00:02:32.400 --> 00:02:41.520 separating fact from psychology, okay? Which is if I make making my bed mean that I'm going to do 34 00:02:41.520 --> 00:02:46.400 the things that I said I'm going to do, then it's super productive. Because it means that I'm 35 00:02:46.400 --> 00:02:50.720 going to do the things that I said I'm going to do. But it's not the making the bed. That's the 36 00:02:50.720 --> 00:02:54.240 thing that's important. It's the fact that I'm committed to doing the things that I said I'm going 37 00:02:54.240 --> 00:03:00.400 to do. That's the point. And so what happens is gurus will get on this superstition around 38 00:03:00.400 --> 00:03:04.720 these things that they do, but not describe the meaning that they've described to the thing. 39 00:03:05.680 --> 00:03:12.400 That's the important part. And so whenever the easiest way to just prove something is to say let me 40 00:03:12.400 --> 00:03:15.840 find an instance where this doesn't exist and I still have the alka. That's how you just 41 00:03:15.840 --> 00:03:21.200 prove something in like science, right? And so if there's a millionaire morning routine, 42 00:03:21.200 --> 00:03:25.600 then it would have to be the same thing that all millionaires do. They would all have to have it 43 00:03:25.600 --> 00:03:30.880 in common in order for it to be not just descriptive, but an explanation. All right, a description is 44 00:03:30.880 --> 00:03:34.400 this happened. Here's all the shit that happened around it. Did it mean that all the things happened 45 00:03:34.400 --> 00:03:39.680 around it are the reason it happened? No, we're just describing it. But if we explain it as 46 00:03:39.680 --> 00:03:45.280 in it's a causal rather than a correlate, those few things are the things that drive the impact. 47 00:03:45.280 --> 00:03:52.000 So what would all millionaires have in common? They have a million dollars. Okay, that's causal, 48 00:03:52.000 --> 00:03:55.360 right? You got to have a million bucks or something worth a million dollars in order to be a 49 00:03:55.360 --> 00:04:02.240 millionaire. Check. Fantastic. What else do you have? Well, you have to wake up early. I can tell 50 00:04:02.240 --> 00:04:05.600 you right now. Plenty of millionaires don't wake up early. All right, plenty of billionaires 51 00:04:05.600 --> 00:04:10.000 don't wake up early. What else do you have to have? Well, you have to have seven streams of income. 52 00:04:10.000 --> 00:04:13.760 Well, all I have to do is find one person who doesn't have seven streams of income to show you 53 00:04:13.760 --> 00:04:18.240 that that's not true. Okay, that's gone. What else we got? You have to dollar cost average 54 00:04:18.240 --> 00:04:22.160 into the S&P 500 for your entire life. And that's how you become a millionaire. Are there millionaires 55 00:04:22.160 --> 00:04:27.600 who don't have that? Absolutely. That one's gone. You have to invest in real estate. All wealth, 56 00:04:27.600 --> 00:04:33.120 90% of millionaires are invested in real estate. Maybe, but did they become millionaires because 57 00:04:33.120 --> 00:04:37.600 they invest in real estate or did they become millionaires and then then choose to invest in real estate 58 00:04:37.600 --> 00:04:43.600 just as a hard asset to diversify their portfolio? Hmm, sequence. All right. So do you have to do real 59 00:04:43.600 --> 00:04:48.320 estate in order to become a millionaire? No. In fact, many millionaires don't do that. They just 60 00:04:48.320 --> 00:04:53.600 invest in it later. You have to be in software. You have to be in Web 3 if you want to be rich. 61 00:04:53.600 --> 00:04:58.480 Well, all I have to do is find a lawn care guy who's making 10 million dollars a year. By the way, 62 00:04:58.480 --> 00:05:04.800 buddy, doing 70 million a year with janitorial services for big buildings, boring as shit, right? 63 00:05:04.800 --> 00:05:08.720 So both of those just prove that. And I can keep going with this and hopefully you understand 64 00:05:08.720 --> 00:05:15.200 the spirit of the video, which is that I want to communicate a thinking process around outcomes 65 00:05:15.840 --> 00:05:21.600 because most people spend most of their time doing shit that doesn't matter. And so when we're 66 00:05:21.600 --> 00:05:26.960 about to do something, people are more effective. People who move faster in life don't actually move 67 00:05:26.960 --> 00:05:35.360 faster. They get more done per unit of time. The definition of leverage is you get more output per 68 00:05:35.360 --> 00:05:41.040 unit of input. So if I get if I do a little bit and I get a lot, I have a lot of leverage. If I do 69 00:05:41.040 --> 00:05:46.160 a little bit and I or do a lot and I get a little bit out, then I have low leverage. And so when you 70 00:05:46.160 --> 00:05:51.840 are becoming more productive, all it is is the act of doing less to get more. That's it. So when you 71 00:05:51.840 --> 00:05:56.080 hear leverage, hear the fancy words, that's what it means. And so if you look at that as the lens 72 00:05:56.080 --> 00:06:01.680 through which all opportunities and all tasks that you do are measured through what is the degree 73 00:06:01.680 --> 00:06:06.160 of leverage that I have in this task, how much do I put in versus how much it get out? And if you're 74 00:06:06.160 --> 00:06:11.200 like, well, how do I measure the what I put in the easiest base unit is time. All right. So as much 75 00:06:11.200 --> 00:06:15.920 as people like, there's passive income, you were alive. There's time that expires during that 76 00:06:15.920 --> 00:06:19.600 period of time and money comes to you over that period of time, which means that you simply have 77 00:06:19.600 --> 00:06:24.400 some things that you get more money per period of time and less money per period of time. That's 78 00:06:24.400 --> 00:06:29.920 it. The real estate guys were like, this is totally passive. Sure. How many deals did you look at? 79 00:06:29.920 --> 00:06:33.680 How many brokers did you negotiate with? How many deals did like, how did you get all the financing 80 00:06:33.680 --> 00:06:38.720 set up? Whatever. All of that, that sure sounds like work. And it is. So they had a more compressed 81 00:06:38.720 --> 00:06:43.840 period of time of working, but they still had active work over a period of time and then return 82 00:06:43.840 --> 00:06:47.920 from that. Even if you just make you buy a bond on the internet and it takes you five seconds, 83 00:06:47.920 --> 00:06:53.280 just the act of deciding which one to buy, logging and figuring out and making the purchase 84 00:06:53.280 --> 00:06:59.280 is work. And so it's only a question from a leverage perspective of units in, which is time, 85 00:06:59.280 --> 00:07:03.360 units out, which is money. If that's what we're choosing to use as our metric time to money. 86 00:07:03.680 --> 00:07:11.120 Most of the nation real quick, if you are a business owner that has a big old business and wants 87 00:07:11.120 --> 00:07:16.240 to get to a much bigger business, going to $50 million plus, we would love to talk to you. 88 00:07:16.240 --> 00:07:20.080 And if you like that, we'd like to hear more about it. Go to acquisition.com and you can plan 89 00:07:20.080 --> 00:07:24.000 anywhere on the page and talk to one of our team and see if we can help you get there. 90 00:07:26.640 --> 00:07:31.680 So when we're thinking about what tasks to do, what are the tasks that get us the most output? 91 00:07:31.760 --> 00:07:36.000 And I will tell you right now, at the very end of this video, I'll give you my morning routine. 92 00:07:36.000 --> 00:07:41.040 All right, I'll give you everything that I do between when I wake up and when I work. All right, 93 00:07:41.680 --> 00:07:45.600 stay to the end for that because you're going to love it. You order your tasks in order of the 94 00:07:45.600 --> 00:07:52.000 leverage that they have. And so for example, I could make sales calls if I were a business owner. 95 00:07:52.000 --> 00:07:57.440 That is going to be a one-to-one input of like, I do this effort and I get sales out of it. Now, 96 00:07:57.440 --> 00:08:01.280 with that same level of effort, if I could go recruit a salesperson, which would take me a 97 00:08:01.280 --> 00:08:06.400 finite period of time. And then that person replaces that. My ongoing support for that person 98 00:08:06.400 --> 00:08:11.840 is going to be two, three hours a week. So I gain back 20 hours a week of prospecting in exchange 99 00:08:11.840 --> 00:08:16.800 for two to three hours a week plus money. Right? And so the active entrepreneurship is simply 100 00:08:16.800 --> 00:08:21.760 consistently making these trades of what can I buy my time back with. You never completely buy it back. 101 00:08:21.760 --> 00:08:25.840 You just get fractions and fractions down. Even at the point where you had an entire company 102 00:08:25.920 --> 00:08:31.040 leading to one person and that person talks to you. Right? So you've compressed all of the 103 00:08:31.040 --> 00:08:34.800 communication cycles of all of these things to one person and you still have the communication cycle. 104 00:08:34.800 --> 00:08:39.280 Right? You still are going to talk to people. And so you never eliminate, it's just reduction. 105 00:08:39.280 --> 00:08:42.800 All right? So these things exist on continuums. They're not binaries. That's why there is no such 106 00:08:42.800 --> 00:08:47.920 thing as active versus passive. It's just how active is it versus how passive is it? How passive is 107 00:08:47.920 --> 00:08:52.080 it? It's how much leverage do I have in the opportunity? What's the discrepancy between how much time 108 00:08:52.080 --> 00:08:56.560 I put in and how much money I get out? Okay? Which is why one of the highest leverage opportunities 109 00:08:56.560 --> 00:09:00.400 that exist is finding people to help you do stuff, which is the first level of leverage. 110 00:09:00.400 --> 00:09:05.280 The next level of leverage is to compress other people's time, right? As units of money that you 111 00:09:05.280 --> 00:09:09.600 raise from them giving you money to then go allocate on your own, which is capital. And then the 112 00:09:09.600 --> 00:09:14.640 two permissionless versions, this is from Naval Robocon, is social media. You can take something 113 00:09:14.640 --> 00:09:18.800 one time like this video and millions of people can see it. I do the effort one time. The output is 114 00:09:18.880 --> 00:09:24.640 very high, right? The same degree with code or software. I can build a thing one time and then the 115 00:09:24.640 --> 00:09:30.160 incremental unit of each person using it after I take the time to build it decreases, which is why 116 00:09:30.160 --> 00:09:34.240 automation and business is a high leverage activity. So if you can take five hours one day to automate 117 00:09:34.240 --> 00:09:38.160 something that now only takes you 10 minutes for the rest of your life per week, then you gain back 118 00:09:38.160 --> 00:09:44.080 five hours per week, you get 250 hours a year back, great return, right? And so I'll tell you a 119 00:09:44.080 --> 00:09:49.520 wrong example of this is that we in in prestige labs, we had my finance team was like, hey, 120 00:09:49.520 --> 00:09:54.720 we have this manual entry thing. It takes us two hours a week of manual like code entry or whatever 121 00:09:54.720 --> 00:09:59.040 to get it done, right? And I was like, okay, they're like, so we want to build this like software 122 00:09:59.040 --> 00:10:03.680 patch from the dev team, because we had a development team to solve this for us. And I was like, okay, 123 00:10:03.680 --> 00:10:09.600 so we scoped it out. And the dev team said it would take them 10 days to do this to build this patch. 124 00:10:09.680 --> 00:10:15.360 And the cost of the dev team is 3,000 a day, okay? So it's going to cost $30,000 to replace two 125 00:10:15.360 --> 00:10:22.800 hours a week. So 100 hours a year of somebody who was making $25 an hour. So let's do the math. 126 00:10:22.800 --> 00:10:29.040 So it's going to cost $2500 of man hours for me to get this manual work done versus spending $30,000 127 00:10:29.920 --> 00:10:34.320 to get the software patch, all right? Not including any upkeep that that's going to probably have 128 00:10:34.320 --> 00:10:39.520 on a consistent basis anyways. But the 30,000 patch, so it would take me 10 years to get a 129 00:10:39.520 --> 00:10:44.560 return on this. Does that make sense? Not really. And this was the finance department. But they 130 00:10:44.560 --> 00:10:48.640 were thinking like individuals not like business owners. And so if you think about ordering your day 131 00:10:48.640 --> 00:10:53.120 that way, it's just a question of what am I trading my time for. And so what I want to wrap this 132 00:10:53.120 --> 00:10:59.920 up with is just a quick thing, which is one, when people give you their advice for how to become 133 00:10:59.920 --> 00:11:06.880 productive, think, is this adding things that are not work to my calendar? Number one, number two 134 00:11:06.880 --> 00:11:11.840 is of the work that I'm doing, how much leverage am I getting from that work? So I can multiply 135 00:11:11.840 --> 00:11:18.960 even further the work that I do. And so the fundamental equation of productivity of how much output 136 00:11:18.960 --> 00:11:24.960 you get is a function of how much you do multiplied by how much leverage you have on the stuff you do. 137 00:11:25.760 --> 00:11:30.560 That's it. And so if we're defining those things as the equation for productivity, 138 00:11:30.560 --> 00:11:35.920 then the perfect morning routine should be one that maximizes the volume of work you do and the 139 00:11:35.920 --> 00:11:42.320 leverage that you create from the volume. And so for me, that looks like waking up, having a 140 00:11:42.320 --> 00:11:47.760 cup of coffee and getting to work. And then ordering my day in the order in which I have the highest 141 00:11:47.760 --> 00:11:53.280 leverage activities to the lowest leverage activities. That's it. And so if you're thinking about 142 00:11:53.280 --> 00:11:59.440 what is the most productive way to get things done, you have to do the work rather than avoiding 143 00:11:59.440 --> 00:12:03.520 doing the work and think of elimination as the ultimate productivity hack because anything that 144 00:12:03.520 --> 00:12:09.280 is not work is fundamentally not work. So you're not doing any volume and no matter how much leverage 145 00:12:09.280 --> 00:12:14.400 it is, if it's still multiplying a zero, it doesn't matter. And so you get the leverage by ordering 146 00:12:14.400 --> 00:12:19.280 and prioritizing the things the right way of when you are working. And then you maximize the amount 147 00:12:19.280 --> 00:12:24.080 of work that you do. And for me, I drink up the coffee because I like it and I have to time with my 148 00:12:24.080 --> 00:12:27.920 wife. And for me, that's the leverage on my marriage. I had this guy reach out to me and he's like, dude, 149 00:12:27.920 --> 00:12:32.480 I got this coach. He's got me doing like morning walks and the red lights on and I do a cold 150 00:12:32.480 --> 00:12:35.520 plunge and I do my gratitude journal. He's like, by the time I'm done my morning routine, it's like 151 00:12:35.520 --> 00:12:39.200 11 a.m. He was waking up a little later. It's like eight to 11. It's like three hours in my day. 152 00:12:39.200 --> 00:12:42.720 It's gone. And I was like, do you think you'd be more productive if you just prospect it? It was 153 00:12:42.720 --> 00:12:45.600 a small business order. I was like, for three hours a day, do you think you'd make more money than 154 00:12:45.600 --> 00:12:50.160 that? It was like, yeah, probably. And I was like, doesn't sound very productive then. So a lot of 155 00:12:50.160 --> 00:12:54.560 people inherit these things that they're hearing on the internet because realistically, it just 156 00:12:54.560 --> 00:12:58.720 procrastinates them from doing the work. And so they just gives them an excuse of mental masturbation 157 00:12:58.880 --> 00:13:03.120 or feeling like they're productive. But if you define productivity as units work, times leverage, 158 00:13:03.680 --> 00:13:08.960 right? The amount of work you do per unit of time, you probably would stop doing a lot of the 159 00:13:08.960 --> 00:13:13.600 things that you're doing. That aren't work. There's work to be done. And the question is, how quickly 160 00:13:13.600 --> 00:13:20.560 can I begin that work? That's it. That is the point. That is like, and eventually it's like the 161 00:13:20.560 --> 00:13:24.240 perfect routine would be you wake up and you'll immediately work because you've trained yourself to 162 00:13:24.320 --> 00:13:28.640 be able to do it. And so the challenge that I want to issue to everyone is if you are one of these 163 00:13:28.640 --> 00:13:35.280 people who has a 90-minute morning routine before you start working, try waking up and walking 164 00:13:35.280 --> 00:13:39.680 straight over to begin work. Don't even check your phone. Walk over and get straight over to 165 00:13:39.680 --> 00:13:43.920 beginning your work and watch how much you get done. So the job of the CEO or the job of the 166 00:13:43.920 --> 00:13:49.440 entrepreneur is to do two things. First is to properly identify the constraint of the business, 167 00:13:49.440 --> 00:13:54.800 which is why is this business bottleneck? And every business has a single constraint, okay? Like 168 00:13:54.800 --> 00:14:01.360 there's always, because it businesses a pipeline. So if I'm blowing traffic or water through a pipe, 169 00:14:01.360 --> 00:14:05.760 there's going to be the narrowest part of the pipe. The narrowest part of the pipe will be 170 00:14:05.760 --> 00:14:10.720 the bottleneck. The moment I open up that bottleneck, it will then find another bottleneck which 171 00:14:10.720 --> 00:14:15.280 will be the next restriction port or the next constraint. The job of the CEO is to identify 172 00:14:15.280 --> 00:14:21.280 properly what the constraint is. Step one, step two, solve the constraint. That is the job of the 173 00:14:21.280 --> 00:14:25.680 CEO. So you have to have the discernment to see the whole system and then properly identify, 174 00:14:25.680 --> 00:14:30.400 which is what takes time. Now the problem is that most people don't know what the fuck they're doing. 175 00:14:30.400 --> 00:14:35.920 And so they reinforce parts of the pipe that are not the bottleneck. So it's like if you've got 176 00:14:35.920 --> 00:14:40.240 this narrow part of the pipe here, they're just adding more flow on this side and that's not the 177 00:14:40.320 --> 00:14:46.000 constraint. And so to be productive, first, you want to maximize your personal amount of time 178 00:14:46.000 --> 00:14:49.680 that you're working. Cool. Got that done. But now we want to make sure that we're working on the 179 00:14:49.680 --> 00:14:54.160 right stuff. And so the leverage is occurred where the percentage of our work goes towards 180 00:14:54.160 --> 00:14:58.320 deep bottlenecking the constraint as fast as possible and getting to the next constraint and the 181 00:14:58.320 --> 00:15:02.720 deep bottlenecking that constraint. And once you have deep bottleneck in an entire acquisition 182 00:15:02.720 --> 00:15:05.760 system, so it's like, you know how to get the man, you know how to convert the man, you know how to 183 00:15:05.760 --> 00:15:10.000 deliver the man, you know how to acquire, acquire talent, all those things, then business is stable. 184 00:15:10.000 --> 00:15:14.000 What do you do? Increase the front end again. Because now the bottleneck is the fact that you don't 185 00:15:14.000 --> 00:15:17.840 have enough traffic coming in. So you increase that. And around and around you go, you always say, 186 00:15:17.840 --> 00:15:27.360 can I do more? Can I do more? Can I do more? Can I do more?