How I work 2hrs a day in my SMMA and make $40k/mo
Summary
TLDRThe 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
🚀 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.
🤖 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.
💡 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.
🌱 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.
Mindmap
Keywords
💡Leverage
💡Systems Theory
💡Input-Output Equation
💡Automation
💡Feedback Loop
💡Scaling
💡Efficiency
💡Business Growth
💡Delegation
💡Digital Product
💡Exponential Agency
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
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