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Action Academy | Millionaire Mentorship For Your Life & Business
How To Use The Four Types Of Leverage In Your Life / Business (To 10X Your Income In Half The Time)
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What up? What up? Welcome back to the Action Academy podcast, the show that helps you get rich, happy and free with a capital F in your life and business today. Ladies and gentlemen, we're going to help you make 10 times more income, grow 10 times more wealth, do it faster, and in about half the time that it takes you to create the levels of wealth and income that you have today. Once again, as always, if you enjoy the topic of today's episode, please share it with everyone you've ever met. Not one or two people. Just literally send it to everyone. Your grandma, get her financial freedom. Your aunt. Yeah. Get her that new house. Your baby cousin, maybe they want to buy a house in 20 years. Send it to them. Share the Action Academy podcast, help me help you. Let's grow this thing together. So let's get into the topic of today's show. There are a couple different seasons that we go through in our lives when it comes to wealth and income generation. I like to lovingly break it into three different phases. You have fixed, variable, and entrepreneurial. So in the beginning, you have fixed which would be all of my people on salary. You literally get paid to do a job or a task between hours X and hours Y. Each and every day, that's your entire income. You show up, that's how much money you're going to make, whether you kill it or whether you are terrible. That's most people. The second season is variable compensation. The this is where you have a fixed base salary and now you have incentives to perform and make more money based off of the efficiency and levels of your performance. These would be sales positions with commission and bonus structures or any other position that has a key metric that you directly impact. Your position exists to impact that KPI, whether that be growth, retention, whatever have you. Maybe you get a bonus at the end of the year for accomplishing your job. And technically, if you're in an hourly position, working overtime could maybe be halfway considered variable compensation because as you work more hours, you put in more input, you get more direct output because you get paid time and a half your hourly rate to work over 40 hours. And lastly, we get into the entrepreneurial season, which is where you leave that fixed salary, you leave the variable compensation, and now you're creating basically your own comp plan. This is the season where you could either lose it all or take complete advantage of the upside. That's why all these mega mansions around the lakes, around the beaches, on the coastlines are all people that took this risk. They said, hey, I am willing to lose it all because the upside potential is worth it. Long story short, you are never going to live next to your boss in his neighborhood, as his employee, ever. It's just not going to happen. The reason that we're bringing these different seasons up right now is the topic of today's show, which is how to implement the four major types of leverage in your life and business. If you're currently in a fixed position, it will be very difficult to implement leverage because you are essentially a slave to the systems and leverage implemented by your employer. If you're in a variable position, you may be able to implement leverage in the form of a virtual assistant or an admin assistant. And finally, when you get to the entrepreneurial season, leverage is the single most important topic that will be the make or break of your business. I've been in each one of these seasons throughout my wealth building journey and now that I've transitioned full time from entrepreneur to entrepreneur, it's been very, very difficult implementing and understanding these different types of leverage that we're about to discuss what which is why we're doing a lot of episodes and a lot of content on this so I can help you guys. A lot of y' all know that I currently have a $100,000 a year business coach and I was telling him I want to build the million dollar business this year. And I feel guilty and ashamed whenever I'm not actively working towards that. If there's time where I'm not working on my business, I feel like I'm wasting potential and I will look back on this time and say, well, if I would have simply worked 10 more, 20 more hours that week, I would have accomplish my goal. Right? What happens next is why you hire the coach and why coaching is so important. Because he says to me, brian, you can't grind and hustle your way to a million dollars a year. You need to implement leverage, you need to scale. You can't work an additional 20 hours, 30 hours, 40 hours a week. That's a finite resource. You only have so many hours in the day. The best and the brightest utilize leverage to do more with less through the core four types of leverage which are capital, labor, code and media content. These four leverage types are subdivided into two separate categories which are permissioned and permissionless. First, we're going to break down permissioned leverage because it requires a lot more skillset and expertise to pull this off. Then we'll go into permissionless leverage, which is way easier to implement and faster to scale. The two types of permissioned leverage are Capital and labor. Both of these leverage types directly involve other people, giving you their permission to utilize them as a resource for your growth. First, let's begin with capital. This is leveraging private investors. What does this look like in real estate? What does this look like in business? Opm, Other people's money, Private money lending, hard money lending, syndication fundraising. You must get permission to borrow someone else's capital to utilize in your own benefit while paying them an interest in a premium on the capital they provided to you. I need everyone to remember that listens to this show. All big real estate deals are done with multiple people, multiple partners, and 90% of the time, not the original partner's money. It's always opm. This all goes back to the deal triangle of skills that you need to pull off to take down any real estate acquisition. And that would be capital, expertise or hustle. So money, knowledge or hustle, you have to have one or two of the three. Right now, as we're going into this recession, there's a lot of people with a lot of money. I guarantee you, I just golfed in a country club where people are buying $4 million homes to tear them down to the $2 million dirt that they're on top of to build a brand new bigger home where the previous home once st. And I guarantee you guys, these people are great at their one thing, their one business, their one industry that they built their wealth off of. And they don't want to put the 10,000 hours in to learn the other industries. So this is where your knowledge and your hustle comes into play. They have the money. The money is abundantly out there. I can guarantee you this in the billions and trillions of dollars it's out there ready to be deployed by you. Second form of permission, leverage labor. This should go without saying. This is hiring people on your team or partnering with people to scale your output exponentially. Here's some best practice advice for somebody that's in the beginning stages of hiring. Because now I'm one year deep in this and I'm still learning this process. But here's what I've learned so far. Save up 3 months of however much that rock star is going to cost. And one rock star is worth more than 10 decent people, always. So now you hire the person you have three months to Runway to take a calculated bet on if this person is going to be an asset for you or a liability. You want this person to provide a 3-5x ROI on their salary, whether that be through a profit center or an Economic roi, slash them, making your life much more efficient and streamlined and buying your time back for you to be free to focus on your revenue generating activities and your KPIs. So one of these hires may be an executive assistant or an admin assistant as one of your first hires, which is what I did, then we're going to clearly define their top 20% activities. We're going to define what good looks like and then we're going to define what great looks like. And then lastly we're going to define what spectacular looks like. What is the quantifiable goal that we are trying to achieve in every single week? How do they know on a scorecard how they're performing? Because feedback is absolutely key in this process and this is something that I failed at in the very beginning and but now I'm doing a lot better job of articulating. Because your employee cannot read your mind, that's not what you hired them to do. And if you don't have a clear definition of what winning looks like, then the only time that your employee is going to hear from you is when they're messing up. And so they're not even going to know what positive reinforcement even looks like. So these were the first two types of leverage and both of them require other people and permission from those people to be involved in your world. These are the highest ROI skills you can learn as a business owner slash entrepreneur. These are the skills that support these first two types of leverage, hiring, vision, casting, delegation, communication, and lastly reporting slash feedback. And now we get into the last two types of leverage which are code and media. Now for most of us listening to this podcast, you're probably not a technical founder or that proficient in writing code. A lot of us are sales, marketing, entrepreneurial, high ID on a disk, profile, and not really in the weeds of the coding or AI world. Most of us buy sticks and bricks and get passive income. So for the sake of time here I'll just talk about Chat GPT. No matter what industry you're in, whether you're flipping houses or you're doing construction or something that is as far removed from the Internet and artificial intelligence as possible, you need to be playing and learning about chat GPT. This technology is single handedly going to change the world as we know it and right now is very early on. So the faster that you can adopt, utilize and leverage ChatGPT in your business, the faster you're going to grow and the more advantage you're going to have in the next five to ten years over People that do not adopt this. Right now, we're in the early adoption stage and I highly recommend it. I use ChatGPT for almost every aspect of my business, which leads us into the fourth and final form of leverage, which is media. These two forms of leverage are called permissionless, because you don't need other people involved here. You can simply choose to do this. You can yourself. There is no friction, there are no barriers. You can implement this right now and amplify your voice, your message, and your business as much as you choose to. You can write code once for one software platform, one app, one widget, and it will pay you forever. You can create one blog post, one YouTube video, one podcast episode that will be out in the world, and 10 years later, people are still referencing it and utilizing it. Media leverage is the reason that Alex Hormozi currently won't come on my podcast, comma yet. For those of you that don't know Alex, he's one of my favorite entrepreneurs in the game right now on social media. You should go follow him. But for him, he says that he could spend one hour of his time and go on a podcast that gets a hundred thousand downloads per episode or a million downloads per episode. And that same input of time would be better served getting a million downloads as opposed to getting 2,000 downloads. So I get it, I get it. But it also applies to me in this podcast. I. I went to a soccer match in Austin, Texas last night and there was 27,000 people in the stadium. And I did the math and that times two is the normal monthly downloads of this podcast. So we're like a little bit over 50,000 downloads a month here. And I was like, I'm reaching out to and talking to all of you guys through the same amount of effort, talking into a microphone for an hour once a day, like it's insane. So in closing, here's a pro tip where it comes to the combination of media and code. What I do is I go into ChatGPT and I'll have an idea. I'll say I want to talk about leverage in a podcast episode. So then I'll go type into ChatGPT, write me 50 viral worthy video titles on the concepts of leverage in business and it will pop out 50 titles. And then you can even write scripts if you want to through ChatGPT like it does it all. So, so, ladies and gentlemen, in closing, capital, labor, media code, Those are the four ways that you can leverage your business to make 10 times more income in half the time. If you guys want to mash the gas and learn more about all of this stuff and actually implementing it in your life in business. Go in the show description and click the application link for the Action Academy community. This is for intermediate to advanced investors. If you want to grow and scale your passive income so that you could leave that job that you hate within 6 to 12 months, we are your community. Go click the link and apply today. Ladies and gentlemen, thank you so much. Talk to you tomorrow.