• This will talk will cover three things.
1. How making money really works
2. Why new stuff is making you poor
3. Why better is the way

How making money really works → Leverage

• If we must work to make money, we must define exactly what work is so we can do more of it and better.
• Work = Outputs
• Outputs = Volume x Leverage
• Number of times you do something times how much you get out of each time you do it.
• How does one work faster?
• Work Rate = (Volume x Leverage) / Time
• Outputs per unit of time.
• Doing more is capped by time and physical ability. How much you get (leverage), is uncapped.
• If you want to out-work your competition you really should be out-leveraging them.
• Leverage: the difference between what you put in and what you get out.

Why new stuff is making you poor

1. Uninformed Optimism

2. Construction Buddy
1. He has a friend who owned a roofing business, but his focus was wide and distracted he tried to many different businesses because he was afraid of leaving money on the table.
2. The money you leave on the table is proportional to the focus that you do not give to the one most important/effective thing that will make you money.
3. In order to do something epic you have to be able to do the same thing for an extended period of time, without convincing yourself that you are smarter than you are.
4. What is the definition of learning?
1. Same Condition different response or action.
1. If you do the same thing when presented with the same stimulus then YOU HAVE LEARNED.
5. Ordinary business done for extraordinary time creates extraordinary results.
1. Compounding must occur. There is no truly extraordinary business model, there are just models that compound more or less over time.