From: alexhormozi
The pursuit of “new” ventures often distracts entrepreneurs from the true path to wealth creation: making existing things “better” [01:13:03]. This concept emphasizes that consistent improvement and focus on a single endeavor lead to disproportionately greater returns and leverage [01:16:11].
Redefining “Work” and “Leverage”
Traditional definitions of “work” (force x distance, time spent, or effort) are unhelpful for knowledge workers [02:30:00]. A more effective definition states:
Work Definition
Work = Outputs [04:07:07] Outputs = Volume × Leverage [04:12:12]
In this context, “volume” refers to the number of times an action is performed, and “leverage” is how much is gained from each action [04:17:17]. While doing “more” is capped by time and physical ability, the amount one gets from their efforts (leverage) is uncapped [06:37:00]. To “outwork” competitors, one must learn to “out-leverage” them [07:14:00].
For example, a person making 100 sales calls with better skill, an automated dialer, a superior list, optimal timing, or an exceptional offer will achieve more output than someone without those levers [07:28:00]. The ultimate leverage comes from having a team, allowing for significant output even with zero personal calls [09:01:00].
The Cost of Chasing “New” (How Not to Get Leverage)
Constantly seeking new opportunities and ventures often leads to stagnation and financial hardship [01:13:03].
The Cycle of Uninformed Optimism
Many entrepreneurs fall into a trap known as the “stages of change” or “stages of transition,” often stuck in a loop of:
- Uninformed Optimism: Hearing about someone else’s success and feeling compelled to abandon current efforts for a new venture, only seeing the “highlights” [01:26:26].
- Informed Pessimism: Realizing the true difficulty and hidden challenges of the new endeavor [01:41:41].
- Crisis of Meaning (Valley of Despair): Experiencing prolonged difficulty and low output, leading to questioning the purpose and potentially changing goals [01:33:33]. This cycle often restarts at “uninformed optimism” instead of pushing through to “informed optimism” and eventual achievement [01:41:41]. Unlike video games where restarting is quick, in entrepreneurship, restarting means losing years of progress [01:35:00].
Distraction and Lack of Focus
Pursuing multiple ventures simultaneously dilutes focus and prevents deep improvement in any single area [01:57:00]. A roofing business owner who expanded into general contracting and house flipping, under the guise of “not leaving money on the table,” was advised to pick one and focus on it [01:37:00]. Focusing on a single business allows for compounding growth, as demonstrated by the wealthiest self-made woman in the US, who built her fortune solely on a roofing supply company [01:30:00].
QUOTE
“The money or you were leaving on the table is the focus that you’re not giving to the one thing that matters.” [01:17:00]
The ability to say “no” to other opportunities is what truly drives growth, not the specific opportunity chosen [02:45:00]. It’s about developing the discipline to stick with “one thing, all in” [02:37:00].
The “Woman in the Red Dress” (Seductive Distractions)
New opportunities become more seductive and attractive as success grows, akin to the “woman in the red dress” metaphor from The Matrix [02:50:00]. Learning to say “no” to these increasingly enticing distractions is a muscle that must be continuously flexed [02:57:00]. Failing to do so can lead to being spread too thin, creating chaos and making it difficult to recover [02:06:00]. The path to wealth often lies on the other side of difficult conversations and the willingness to let go of less profitable ventures, even if it means a temporary dip in revenue [02:41:00].
The Power of “Better” (Why Better is Leverage)
Better is better than new [03:09:00]. Improving existing processes and products provides more output for the same input, directly increasing leverage [03:15:00].
”Better Comes from Boring”
True business growth stems from consistent, often “boring,” activities:
- Split-testing landing pages and emails weekly [04:43:00].
- Creating new ads and creative proactively, not reactively [04:53:00].
- Daily role-playing with sales and customer success teams [04:59:00].
- Conducting more interviews to find the best talent [04:23:00].
- Improving lead magnets and offers [04:43:00].
These unsexy but effective tasks, when consistently applied, significantly increase revenue and efficiency [04:54:00]. For example, consistently calling leads within five minutes can triple sales, despite the perceived “boring” nature of CRM setup and call prioritization [03:26:00].
The “Unsexy” Secret to Success
The secret to success lies in doing all the “unsexy” things one already knows they should be doing, but aren’t [04:54:00]. Most people know what to do but avoid it for more stimulating activities [03:25:00].
The Invisible Hand of Word of Mouth
Rushing new, mediocre products or services to market leads to negative word of mouth, which acts as an “invisible hand” working against the business [03:52:00]. This results in higher advertising costs and lower conversion rates because potential customers are actively dissuaded by previous clients [03:55:00]. Taking time to perfect a product, even breaking even for a year, creates a strong foundation that makes future growth effortless [04:01:00].
Commitment and Self-Coaching
To apply the concept of “better over new,” individuals must commit to activities regardless of immediate outcomes and challenge their beliefs [04:29:00]. The “self-coach” mental model asks: “If I were coaching me right now, what would I tell myself to do?” [03:41:00]. Often, the answer reveals a discrepancy between what one knows and what one actually does [03:49:00]. Success comes from acting like the person with desired traits, even when it feels uncomfortable [02:51:00].
The difference between a “seven out of ten” and a “nine and a half out of ten” product or skill might require 20 times the work, but it yields a thousand times the sales [04:32:00]. This 50x increase in output per unit of input is the essence of leverage [04:44:00].
Conclusion
True success and significant financial gains stem from focusing on making one thing better for an extended period, rather than constantly chasing new, shiny objects [05:00:00]. This approach ensures that all actions align towards a single outcome, making success look effortless from the outside but resulting from years of disciplined choices and saying “no” to distractions [05:03:00].