How to Get Ahead of 99% of People

Summary

The speaker discusses strategies for business success, arguing that entrepreneurs must continuously improve their skills and find optimal opportunities to leverage those skills. He examines concepts like maximizing input-output ratios through leverage, paying down 'ignorance debt,' the value of skills versus passive investing, and playing infinite games. The talk centers on mindsets and frameworks to advance from early revenue stages to multi-million dollar businesses, stressing that one key ingredient is mastering sales skills to drive the all-important first part of the money-making equation.

Takeaways

• 😀 Most businesses never reach $1 million in annual sales. Only 0.4% do over $10 million.
• 📈 Invest in skills over assets. Skills compound and can't be taken away.
• 💡 Overcome limiting beliefs by exposing yourself to new possibilities.
• ⛓ Use leverage to get exponential returns from your efforts.
• 🏋️‍♂️ Put in more work than others to compensate for skill deficiencies.
• 💰 Get paid to learn. Change jobs to improve your skills.
• 🚀 Start a side hustle and scale it until income matches your day job.
• 🌄 Take risks in business by keeping personal expenses low.
• 🎯 Identify your innate interests. Pursue games you never want to quit.
• 🤝 Give value freely, without expecting anything in return.

Q & A

What percentage of businesses reach $10 million in annual sales?

Only 0.4% of businesses, or 1 in 250, reach $10 million or more in annual sales.

What are the two major categories Alex focuses on for building a $10 million business?

The two major categories are: 1) The entrepreneur and their skills and beliefs 2) The opportunity vehicle or business model they are pursuing and its leverage

What are the 4 types of leverage according to Naval Ravikant?

The 4 types of leverage are: 1) Collaboration - having people work for you 2) Capital - investing other people's money 3) Code - creating software/systems once that can serve many customers 4) Content - creating content once that many customers consume

What financial return does investing in skills provide over stock market investment?

Investing $1,000 in skills that increase your income from $40,000 to $220,000 provides a return of $180,000 extra income every year, massively higher than the ~10% annual return from stock market investment.

What are the steps Alex recommends to transition from getting paid to learn?

The steps are: 1) Live below your means to save cash 2) Invest the cash into your own side hustle 3) Grow the side hustle until it matches your current income 4) Sustain it for 6 months 5) Then cut bait from your current job and go full time on your business

What is the difference between finite and infinite games?

Finite games have known players, agreed rules, and a definite end/outcome. Infinite games have unknown players, no set rules, and the goal is to perpetuate the game.

How does treating business as an infinite game change your approach?

It changes your goal from trying to "finish first" or make the most money, to focusing on longevity and continuing to improve. The day you start is when you win, the day you quit is when you lose.

What would Alex do if he lost everything today in terms of income generation?

He says he would sell cars during the day and strip at night. His baseline skillset today includes sales and marketing worth over $1 million per year, much higher than his options before he learned those skills.

What was the first thing Alex focused on early in his career to boost from under $1 million to over $1 million in income?

Learning sales skills. He says if you can't sell anything, you can't make money, as sales drives the number of customers and total revenue potential.

Why does Alex discourage side hustles as a permanent approach?

He wants to maximize outcomes, so prefers side hustles as a way to transition to your main hustle and eventual primary business. Otherwise you likely won't scale up significantly.