How I work 2hrs a day in my SMMA and make $40k/mo

Summary

The video emphasizes the concept of leverage in business, illustrating how optimizing inputs for maximum outputs can lead to exponential growth. It discusses the importance of systems theory, leveraging technology like automation and digital products, and reinvesting in business processes to work smarter, not harder. The speaker shares personal experiences of building a successful coaching business and SMA with minimal hours, stressing that understanding and applying leverage can significantly increase efficiency and profitability.

Takeaways

• 🔨 Leverage is the key to working less and earning more, defined as the amount of output for each input in a system.
• 📈 Systems theory is crucial for understanding cause and effect in business, and using it to improve processes.
• 📊 By adjusting inputs based on feedback, one can increase efficiency and output in business operations.
• 💡 The leverage pyramid consists of labor, capital, code, and media, with media being the highest form of leverage.
• 🚀 Businesses can scale exponentially by effectively using leverage and reinvesting in areas that yield the most output.
• 🤖 Automation and software can replace manual tasks, saving time and allowing for business growth without increasing labor.
• 🎯 Focusing on high-leverage activities, such as creating content that can reach thousands, is more effective than low-leverage tasks.
• 📈 Scaling a business can create mess and challenges, so it's important to match growth with the capacity to deliver results.
• 💼 The concept of 'working 2 hours a day and earning 40K a month' is achievable through understanding and applying leverage correctly.
• 🌐 The potential for one-person businesses to reach significant scale is increasing due to advancements in technology and automation.
• 🔄 Continuously iterating and improving based on feedback is essential for optimizing systems and achieving growth.

Q & A

What is the main claim of the video regarding work and income?

The main claim of the video is that by understanding and applying the concept of leverage, one can work fewer hours and earn more money.

How is leverage defined in the context of systems theory?

Leverage is defined as the amount of volume or outputs in the system for each input. It's a measure of how effectively inputs are transformed into outputs.

What is the importance of feedback in the input-output equation?

Feedback is crucial as it allows for the adjustment of the process or inputs to achieve the desired output. It helps in understanding what works and what doesn't, guiding further actions.

Can you provide an example of how changing the input can affect the output in a business scenario?

In the video, changing the tonality during a cold call session is an example of altering the input. This change led to a higher appointment booking rate, showing that modifying the input can significantly affect the output.

What are the three tiers of the leverage pyramid as mentioned in the video?

The three tiers of the leverage pyramid are Labor, Capital, and Code. Labor involves hiring people to do tasks, Capital is about investing in the business for automation, and Code refers to software and systems that run the business processes.

How does the video illustrate the concept of leverage with YouTube videos?

The video uses YouTube videos as an example of high leverage. By uploading a video, the creator can reach hundreds or thousands of viewers with a single input (the video creation), significantly multiplying the output without the need for repeated effort.

What is the potential downside of scaling a business too quickly?

Scaling a business too quickly can create a mess, as the team might become overwhelmed with the increased workload. This could lead to poor client management and failure to deliver promised results, ultimately affecting the business's reputation and sustainability.

How does the speaker apply the concept of systems theory to business?

The speaker applies systems theory by breaking down business processes into input-output equations and using feedback to continuously improve and optimize these processes. This approach allows for systematic growth and efficient use of resources.

What is the significance of the quote by Archimedes in the context of the video?

The quote by Archimedes emphasizes the power of leverage. In the context of the video, it illustrates that with enough leverage (like a long lever), one can achieve significant results (move the world) with relatively little effort.

How does the speaker suggest one can work 2 hours a day and still run a successful business?

The speaker suggests that by effectively using leverage through automation, hiring quality team members, and reinvesting in systems that reduce the need for personal effort, one can scale the business exponentially while only working a few hours a day.

What is the ultimate goal of applying the input-output-feedback model in various aspects of life?

The ultimate goal of applying the input-output-feedback model is to optimize and scale efforts in any endeavor, whether in business or personal life. By understanding and manipulating these elements, one can achieve exponential growth and success.

Outlines

00:00

🚀 Leveraging Time and Business Growth

The speaker introduces the concept of working smarter, not harder, by leveraging systems theory to build a successful business with minimal time investment. They explain that by understanding the relationship between input, output, and feedback, one can optimize their efforts to earn more while working less. The importance of leverage is emphasized, defined as maximizing outputs for each input, and the speaker shares personal experiences of building a coaching business and a 40K month SMA with only 2 hours of work per day.

05:00

🤖 Automating Processes and Leveraging Technology

This paragraph delves into the specifics of automating business processes to increase leverage. The speaker discusses how they have applied systems theory to their own business, using examples such as cold call sessions and onboarding emails to illustrate how feedback can be used to improve outcomes. They introduce the leverage pyramid, which includes labor, capital, code, and media, and explain how each level can be utilized to multiply results for a given input. The power of media, specifically YouTube, is highlighted as a means to reach a large audience with minimal effort.

10:02

💡 Scaling with Care: Managing Growth and Mess

The speaker addresses the challenges of scaling a business, emphasizing the importance of managing growth to avoid creating a mess in the process. They discuss the limitations of their team and the potential issues that arise from rapid scaling, such as an overbooked calendar and an inability to deliver results. The concept of systemization is introduced as a way to manage and improve the feedback loop, allowing for sustainable growth. The speaker shares their approach to scaling by investing in ads and hiring additional sales staff, while also considering the long-term impact of these decisions on the business.

15:02

🌱 Reinvesting in Leverage for Exponential Growth

The speaker discusses the concept of reinvesting in leverage to achieve exponential growth in business. They provide examples of how reinvesting in software for email sequences and service delivery can lead to more efficient operations and increased outputs. The idea of a one-person team achieving significant business success is presented, with the speaker expressing their belief in the potential for such businesses to emerge due to technological advancements and automation. The importance of applying systems theory to all areas of life is emphasized, and the speaker shares their vision for helping others scale their businesses using the principles discussed.

Keywords

💡Leverage

Leverage, in the context of the video, refers to the concept of maximizing output from minimal input, a fundamental principle in systems theory. It is about understanding how to use resources efficiently to gain greater control and achieve desired outcomes in business. The video emphasizes leveraging different aspects such as labor, capital, code, and media to work smarter, not harder. For example, the speaker discusses using a specific tonality during cold calls to increase appointment booking rates, which is a form of leverage where a small change in input (tonality) leads to a larger output (more bookings).

💡Systems Theory

Systems theory is a broad, interdisciplinary field that studies systems in terms of their interactions, interdependencies, and feedback loops. In the video, the speaker applies systems theory to business, focusing on the cause-and-effect relationship between inputs and outputs. The concept is used to illustrate how understanding and manipulating these relationships can lead to more efficient and effective business operations. The speaker emphasizes the importance of feedback in this system, as it allows for adjustments and improvements to be made based on observed results.

💡Input-Output Equation

The input-output equation is a representation of the relationship between the resources or efforts put into a process (inputs) and the results or outcomes produced (outputs). In the video, this concept is used to analyze and optimize business processes. The goal is to minimize inputs while maximizing outputs, which can be achieved through strategies like automation, delegation, and optimization. The speaker uses this equation to demonstrate how making small changes can lead to significant improvements in efficiency and profitability.

💡Automation

Automation refers to the use of technology to perform tasks without human intervention. In the video, the speaker discusses automating various aspects of the business, such as email sequences and customer onboarding, to save time and increase efficiency. Automation allows for the multiplication of outputs with minimal additional effort, contributing to the leverage effect. It is presented as a key strategy for scaling a business while reducing the amount of manual labor required.

💡Feedback Loop

A feedback loop in systems theory is a sequence of events in which the output of a system is returned to the input, either to be repeated or to be reviewed and improved upon. In the context of the video, feedback loops are crucial for refining business processes and strategies. The speaker emphasizes the importance of using feedback to make informed decisions about adjustments to inputs, which can lead to better outputs and overall system optimization.

💡Scaling

Scaling refers to the process of increasing the size or volume of a business, often with the goal of expanding reach, revenue, or influence. In the video, the speaker discusses the challenges and strategies associated with scaling a business, particularly the importance of leveraging various resources to manage growth effectively. The speaker warns against the pitfalls of rapid scaling without proper systems in place, which can lead to chaos and decreased quality of service.

💡Efficiency

Efficiency in the video refers to the ability to produce the most effective output with the least amount of input, which is a core goal when applying the principles of leverage and systems theory. It involves optimizing processes, reducing waste, and using resources wisely. The speaker advocates for working smarter, not harder, by leveraging technology and strategic planning to achieve greater results with less effort.

💡Business Growth

Business growth is the process of expanding a business in terms of its size, revenue, or market presence. The video emphasizes the importance of leveraging various resources, such as labor, capital, code, and media, to achieve exponential growth. The speaker shares strategies for scaling a business effectively, including the use of automation and the reinvestment into leverage points to achieve sustainable and profitable growth.

💡Delegation

Delegation in the video refers to the act of assigning tasks or responsibilities to other individuals, such as hiring employees to handle certain aspects of the business. This allows the business owner to focus on high-level strategy and growth, while day-to-day operations are managed by the team. Delegation is presented as a form of leverage, where the business owner can achieve more output by utilizing the skills and efforts of others.

💡Digital Product

A digital product, as discussed in the video, is a type of good that is produced and delivered in a digital format. This could include software, online courses, e-books, or any other intangible item that can be distributed electronically. The speaker highlights the leverage potential of digital products, as they can be sold without the need for physical production or shipping, and can reach a wide audience through platforms like YouTube.

💡Exponential Agency

The term 'Exponential Agency' refers to a business model that focuses on achieving exponential growth through the strategic use of leverage points such as automation, delegation, and reinvestment. The goal is to create a business that can scale rapidly and efficiently, without being limited by the owner's time or resources. The speaker envisions a future where businesses can achieve significant growth with minimal labor input, thanks to advancements in technology and smart business strategies.

Highlights

The speaker shares their experience of working around 2 hours a day and building a successful 40K month SMA and a 20K month coaching business.

The concept of leverage is introduced as a key to working less and earning more, defined as the amount of volume for outputs in the system for each input.

Systems theory is utilized to explain how cause and effect can be applied in business, emphasizing the importance of understanding inputs, outputs, and feedback.

An example is given where adjusting the tonality in a cold call session leads to a higher appointment booking rate, showcasing the power of feedback in improving business tactics.

The leverage pyramid, coined by nval, is introduced with its three levels: Labor, Capital (code), and Media, highlighting the progression from manual effort to automation and scalability.

The speaker explains how hiring (Labor) can be the least efficient form of leverage due to management and payment responsibilities.

Investing in capital (code) is discussed as a way to achieve higher outputs with less direct effort, such as using software to automate tasks.

Media is positioned at the top of the leverage pyramid as it allows for reaching a vast audience with minimal additional effort, exemplified by the speaker's use of YouTube.

The importance of understanding the input-output equation and feedback loop is emphasized for scaling a business effectively and efficiently.

The potential messiness of rapid business scaling is acknowledged, with the speaker sharing personal experiences of managing growth while maintaining quality.

The idea of reinvesting into leverage is introduced, suggesting that continuous investment into automation and systems can lead to exponential business growth.

The speaker predicts the rise of one-person businesses reaching billion-dollar revenues due to the increasing capabilities of software and automation.

The concept of 'mini systems' is introduced, explaining how every aspect of a business or life can be broken down into an input-output-feedback loop for optimization.

The speaker encourages the audience to apply systems theory not only to business but to all areas of life, such as fitness and personal development.

The video concludes with the speaker offering a free school group with resources and videos for those who found value in the content.

Transcripts

welcome to the video today I'll be

showing you exactly how I work around 2

hours a day and built a 40K month SMA

and as well I'm building a 20K month

coaching business this might sound too

good to be true how are you working 2

hours a day what are you doing to do

that I'm going to explain that in this

video but my Hope by the end of this

video is that you will be working less

and earning more money that's a big

claim but just watch the video and go

through the tactics I'm showing you it's

no getrich quick scheme or anything like

that it's going to take hard work and

you just have to internalize this video

to actually make it work so enjoy all

right first to understand that to

actually work less we first have to

understand what Leverage is and this

doesn't sound like a shiny object

doesn't sound fancy but this is just the

hard truth of business you have to learn

these things in order to work less and

actually develop the business right so

leverage can be defined as the amount of

volume for outputs in the system for

each input so this is actually

definition from systems theory I love

systems theory and in this we'll be

breaking down exactly what that means so

first of all we have an input and we

have output right so everything in life

is down to cause and effect so systems

theory is just a way of actually putting

cause and effect into business and

actually maing it so we can use a mental

model with everything we're doing inputs

represent the basic materials or

resources that we've transformed in the

output feedback is the element of

control if the desired output is not

achieved the process or the inputs must

be adjusted to achieve the goal so okay

we're talking about all this but what

does this actually mean in the game of

business right so let's let's give some

examples right so input during a cold

call session you attempt pitching in a

different tonality right so that that's

your input you're trying to see exactly

what pitching in a different tonality

does output the prospects when you're Co

calling were quite receptive to this in

a different tone and they're booking a

lot of appointments you're like wow

that's that's that's great so you get a

feedback so a feedback at the end of the

test was that there's a higher

appointment booking rate on the calls

that were actually made that day so with

this feedback you now know that this

tonality in the next C call session is

actually going to be better than the one

you're using before so let's actually

apply this then the first C call session

before using this tonality appointment

book rate was 2% on 100 calls that you

did so you got two appointments

so with the better tonality on the cold

calls with 100 calls you then got four

appointments right so notice how we're

getting more outputs for the inputs

we're putting in immediately when we

start building the skill in the thing so

the persons who who has actually learned

from the feedback in the scenario kept

adjusting the outputs to edit their

inputs now that we have an example and

we understand the input output equation

feedback and how we can adjust from that

with our actions let's get some more

examples and I'll show you how to

actually systemize absolutely everything

in your agency to start getting better

at things and then first cutting the

things out right so let's give one more

example goal is onboarding prospects

into our agency right so we signed a new

client we're getting a new client on the

input here is that every time we sign a

client we're sending out onboarding

emails to a prospect every single time

they sign and we're welcoming them to to

our team right so this might be

literally me going in Gmail and then

going into it copy and pasting a welcome

email editing all the variables in there

with the email and sending to the

prospect right just to get a first good

Prospect interaction when signing the

client so output is the prospect

receives the email and accesses your

resources so you probably won't learn

much from that like you you're just

sending an email but one day after doing

the input output you're like hey I can

actually probably just automate this

like I'm spending 10 to 15 minutes

emailing the prospect sending them all

the resources building their customized

plan with the email I don't need to do

this right

so then you go what can I automate like

if I if I am automating the email I can

just send this email it's just to save

me 10 to 15 minutes every time what else

can you automate in the business so next

I'm going to get into what I call the

leverage pyramid this is coined by nval

big fan of all so first we have Labor

Capital code and media so what does this

all mean so labor is you're hiring

people to do things so if I wanted

someone to work for me to actually send

out those emails like send out the

emails to the Prospect and just give

someone else a Tas right you can do that

no problem but one you have to manage

them two you have to pay them right so

there's a bunch of variables here that

just cause it to be unnecessary when

you're hiring so hiring is kind of the

bottom tier of a leverage because

there's a bunch of other

responsibilities and time management

things that come along with hiring right

next is paying capital I can't really

use this example in terms of sending the

email cuz you can't use money to send an

email right other than unless you're

paying for for software but then that's

that's what we'll get to right now which

is code um capital is like investing

into business right so these are all

things that get the most outomo of

outputs for your inputs so if you're

investing in a business the business run

itself right they have a CEO they have

all these things the structure of the

business and the big the business is

independent of usually you you probably

have a decision-making say in it

obviously but it doesn't require all of

your day cuz it's just earning in your

sleep right next thing let's go back to

the email example right here code right

so with the software

it is working all the time anytime a

client comes in so you can sign a client

tomorrow that have instantly or whatever

zap you're sent out the email and all

you're paying for is the monthly

subscription of like I don't know zap is

like $10 $15 something like that right

so you're just paying for that monthly

subscription to have it all auto made

out so what why are you telling me this

Joe what are you trying to get at most

of the things in your agency with the

new ages with chat GPT all these things

can be automated out most of the time

you don't need anybody right with this

coaching business I'm running right now

zero employees except me zero right and

this is because I have built this

coaching business I'm building right now

completely off of media since you're

watching this YouTube video so let's

give another example if I'm sending this

video to one person at a time that's

really low leverage right we're getting

one person out of one input right so

think of systems theory right we have

input output feedback so I send a a

video to someone they receive the video

I get feedback the person saw the video

Perfect right next one right I post the

video to YouTube I get a th000 views I

notice that a th000 people watched it I

start posting on YouTube right so that's

just a very obvious example but this is

a very very understandable thing for you

right you need to understand that you

need to make the most out of your

outputs in business right so by me

uploading this YouTube video I'm

reaching probably hundreds or thousands

of people depending on how what well it

does right and I understand understand

that that's why I upload YouTube videos

instead of send I don't know people

aloom independently record this a

million times right so you want to get

the most outputs for your input and I

cannot make this clear enough right so

quickly a quote by Archimedes he said

give me a lever long enough in a fulcrum

on which to place it and I shall move

the world and this is a perfect diagram

of Leverage if you have enough leverage

with this lever you're generating enough

Force to actually multiply it enough

times with the lever so think of it like

this this YouTube this video on YouTube

is acting as a lever right now cuz I can

have as many people as I possibly can

view it and it does not matter for me

there is no restrictions on the amount

of people that can view this YouTube

video if I was sending a loom to each

person it would be one so this is a

multiplier if Archimedes is standing far

enough away from this the longer the

lever is the more it's multiplied right

so what we want to do is multiply the

amount of outputs in the system for our

input so what are we making the most

outputs from that we are putting in the

system so let's go back to Direct

business so we can tie this in so in

scaling a business there becomes a mess

so let's say I'm running ads for my SMA

right now if I want to do $100 in ads a

day I can scale my business really

really quickly right but then you have

like the whole sales team booked out you

have your full calendar booked out and

you're signing clients like a client a

day right why am I not doing that right

now because it would create an

unprecedented amount of mess with the

business right with scalability it comes

mess so I would have to have dozens of

client be delivered client results being

delivered for them my team is only a few

people so I wouldn't be able to deliver

the results that we're actually saying

cuz I only have a few people managing

dozens and dozens of clients it's not

going to work I only have two sales guys

so they can only take a certain amount

of appointments the Realtors or whatever

Niche you're in would have to be booking

for weeks out so this is the mess like

you have to realize that the scaling of

the business comes with mess in the

process right so this is where we have

the input output equation right so let's

say I'm investing in ads input that's an

input I am I am running ads that's an

input equation output is a bunch of

appointments that all my sales people

can't take right so then we have

systemization this is the feedback for

the next input of remember this equation

here try to memorize this you can use it

for everything in your life right

everything uh I'll use some more

examples in a moment so you understand

but with all the appointments I have my

calendar I have to hire another sales

guy and I train the sales guy teach him

how to sell the framework of my offer

the backend all that thing that might

take weeks it might just take weeks

right so then you have a systemization

of the sales team you have another

person coming in and then you can run

more ads cuz you have three calendar

slots right perfect so think about it

like this let's say a digital product

then let's say we're on the top of this

leverage pyramid we're on the code and

we're using digital product let's let's

use Imon godi for a second right we have

a digital product that's advertised in

all inbound leads from Iman Gody team

like he's attracting clients and clients

and clients a day to buy his products

right and let you have code to deliver

the product so you have all the

attraction done by the the actual

Outreach or the in leads are coming in

sorry then you have all the service

delivery done because it's just a

product and you have input Service

delivery let's say you're taking I'm in

God's business

model and let's just kind of map it

right this isn't exact obviously we're

just using this as a mental model for

you to understand what Leverage is but

let's say working without leverage right

we we're not worrying about systemizing

absolutely anything like we don't care

let's say I'm not doing any hiring I'm

not doing any advertising I'm not using

any

anybody to reinvest in businesses let's

say I'm just doing that right my SMA

would look like this because I a one

person team maybe I'll hit 10K a month

and I'll have 45 hour weeks like I'm

just done I'm tapped out that's how I

make all my money I can't can't hire

can't do anything I'm just going to be

at a because I'll be capped by my time

I'll be completely Capa by my time right

so let's say I'm working with leverage

just like let's say I can do some hiring

can run some ads right perfect so that's

when it's going to start going up cuz

then we have more outputs for our inputs

and we start going up we understand

Leverage is important we're working with

leverage and we're linearly heading

upwards okay next thing reinvesting into

leverage right so let's go back to the

email sequence let's say we signed a

client I don't even have to have team

members to send those email sequences I

reinvesting into software to do my email

sequences perfect another example I'm

using software for Service delivery

let's say I automate go high level with

automations that I don't have to touch

Service delivery right let's say I

reinvest some my front end where I don't

even need a sales team they can just buy

a digital product right so when you're

reinvesting into this leverage pyramid

continually then this is when you start

seeing an exponential growth in the

business and this is why I put the title

of this document building the

exponential agency cuz you can work 2

hours a day and then scale infinitely

with the right amount of Leverage and

there's a there's a few sayings I think

uh one is by the leader of chat um chat

gbt or open AI it's Sam mman he believes

that there'll be a one man1 billion

business very soon and I do agree I do

agree because we are having the times

right now are coming with infinite

Innovation scale with our softwares and

our media and whatever automations right

it's unbelievable chat TBT is the first

step in that right so we're going to get

business having one person in the team

and then breaching a billion dollars

probably so I see all these SMA guys not

to call them out uh but I'd rather do

things a different way and I like

investing into leverage I like investing

into growing my business exponentially

um and actually just automating things I

don't need to be done by a person

without sacrificing the quality of my

SMA I think these things can be done now

cuz we're seeing guys on YouTube work 10

to 15 hours on things that really don't

matter and you can hire people for

things that they're probably better than

you at if you pick the right talent and

you'll be getting more outputs in the

actual equation on the system Ser

equation so think about this for a

second

now that you understand systems theory

input output feedback that's the main

one you can break everything in your

agency to an input output equation right

so full credit to easy grow here this is

from Easy grow but let's say we get a

human and then this is the input then we

have the output and we get feedback

perfect feedback boom and this is a

system in itself next we head up we get

attention

right then we have attention into

interest like they saw our cold email on

their Gmail attention is it turned into

interest cuz we had a good offer right

then you send a thousand emails and you

get more feedback to turn more attention

into more interest you change your email

and get better email copy this is

another system right then you get the

interest and you turn it into an

appointment and then you get more

appointments and then you edit your

scripts and you edit your systems so

this is all iteration like this is the

feedback on everything everything is a

Min system absolutely everything is min

system even let's say Your Service

delivery let's talk about Service

delivery for one more minute I'm going

to rant but I hope you guys find this

valuable um Service delivery you onboard

the client right you find a new way to

onboard the client that's a system then

you set up their Google ads let say

right you run the Google ads you find

feedback on what's working and what's

not working you iterate right then you

test something else it does worse

perfect feedback is don't do that right

try it again same thing split test

another thing this is all many systems

each one of these things I'm mentioning

is just Min systems in the broadscale

business right and I'm talking about

business cuz it's the business Channel

and I love business and I want you guys

to find Value and scale your businesses

from my channel but you can apply this

to Fitness right you can apply this to

the gym you lift the weights that's

input you try one different exercise you

find your sword from the exercise

perfect do more of the exercise perfect

you grow your muscle a bit next thing

try a different exercise feedback you

don't like it perfect then screw it

don't do the don't do it right um test

things with your diet you eat 2,300

calories you bulk up too much than you

would like right you want to you eat

want to me eat at maintenance then you

2100 perfect I'm staying the same way

I'm staying the same way I'm recomping

recomping right next thing I want to go

in a ball perfect 2500 way too much

calories don't like that that's the

feedback 2400 perfect that's my new

recall so these are all mini systems and

whatever you're trying to do in your

life you need the goal you need the

input you need the output you need the

feedback and that's how you optimize

that's how you scale that's how you

reinvest into leverage and that's how

you grow your business exponentially and

I hope you found value in this that's

just how I break things down into life I

see life through this input output

equation and the feedback um this is how

I got to working on my business 2 hours

a day and I hope you found some value to

this automate out systems hire people

that are quality to replace your job and

uh if you found value in this video I

have a free school group in the

description I give away all the

resources and all my videos into that

school group and then as well if you

enjoyed the video just like And

subscribe that would mean a lot I

appreciate it thank you very much and

I'll see you later goodbye