From: alexhormozi
The ability to delay gratification is a crucial element for achieving significant success, particularly in entrepreneurship [00:00:01]. It allows individuals to outperform the majority by consistently working without needing an immediate reward [00:00:03].
The Nature of Hard Work
True hard work involves sacrificing sleep, doubting oneself, stressing to make ends meet, and not always finishing a to-do list [00:00:09]. There may be years of uncertainty before knowing if the right call was made [00:00:15]. This is simply “what hard feels like” [00:00:17].
The more intensely one works, the more they realize their previous perception of “hard work” was inaccurate compared to their true capabilities [00:00:19].
The Power of Work Ethic and Time
The “most dangerous money-making combo in the world” is work ethic combined with time [00:00:25]. Understanding the immense effort required to transition from “good” to “great” forces individuals to focus on a few key areas, as it’s impossible to be great at more than one or two things [00:00:31]. Trying to take shortcuts inevitably leads to brutal reminders that “the work just needs doing” [00:00:47].
Shifting the Work Horizon
Initially, working on something for a single day might feel like a significant effort [00:00:53]. However, this perspective must evolve to encompass weeks, months, and even years on a single project [01:03:00]. A useful method for this shift is to start counting effort in “hundreds”—hundreds of minutes, hours, or days towards a specific goal—which automatically pushes for a significantly larger volume of effort [01:14:00].
This concept is illustrated by an art class parable: the group tasked with making as many pots as possible not only produced more, but also better pots than the group focused on making one “best” pot [01:27:00]. This highlights the value of consistent effort over perceived perfection in early stages [01:40:00].
Many people become discouraged when confronted with the actual level of effort required, seeking easier alternatives [02:05:00]. However, the reality is that the work simply needs to be done, and no one will do it for you [02:13:00].
Reward Systems and Outcomes
Unlike traditional hourly jobs where payment is guaranteed for showing up, self-employment only rewards output [02:20:00]. A “workday” for an entrepreneur is defined by clear output or progress, not just time spent [02:38:00].
The longer one can delay the need for immediate reward from their work, the greater the ultimate outcome will be [02:46:00]. This is likened to a plane taking off: a longer runway allows for a bigger plane and thus a greater flight [02:51:00]. A short attention span and a need for instant gratification prevent significant achievements [02:57:00].
“If you feel like you’re behind where you should be by now, if you feel like you’re losing, if you’re not sure it’s going to work, there’s nothing wrong with you. That is entrepreneurship. You’re on the right path, you’re doing the right things, you’re seeing the milestones along the way, but the milestones aren’t parades. It’s uncertainty, it’s a sleepless night, it’s not knowing if you can make payroll, it’s not even being sure that the five years you put into this idea is actually going to turn into something that you’ll get credit for eventually.” [03:04:00]
Success for entrepreneurs is often tied to the internal reward of becoming the person they aspire to be through their efforts, rather than seeking external validation or immediate approval from others [03:32:00]. This mindset helps sustain effort through uncertainty [03:40:00].
The Long Time Horizon
A significant reason many entrepreneurs fail is due to being in a rush, which leads to poor decisions and constantly jumping from one thing to another in pursuit of faster results [03:52:00]. This constant hopping guarantees they will never reach their destination [04:02:00].
Society often values speed, promoting ideas that things should be “fast and easy” [04:04:00]. However, entrepreneurship is the opposite: while the dream outcome exists, it is not guaranteed, is incredibly hard, and “takes forever” [04:23:00].
The concept of a billionaire rebuilding a business in 90 days, as seen in some shows, reinforces the wrong perspective. A much larger business could be built in two years, and the rush to achieve quick results might prevent building something truly substantial [04:45:00]. Building a reputation takes time, allowing people to discover you and develop a strong affinity [05:10:00].
One example is content creators who build an audience for five years before launching a product, which then becomes a massive success [05:29:00]. This is not instant success, but the culmination of years of foundational work, like a bamboo tree whose roots go deep for years before it shoots up [05:34:00].
Sharpening the Axe
The analogy of sharpening an axe illustrates the importance of foundational work [06:16:00]. Someone who immediately starts “hacking away” with a dull axe, without building leverage or foundation, will be quickly outpaced by someone who spends significant time sharpening their “axe” into a “lightsaber” [06:20:00]. Even if it takes a year to sharpen, that person will catch up by year two and far surpass the other by year ten [06:35:00].
Challenges arise when others judge one’s progress on an “employee time horizon” (e.g., expecting a paycheck in two weeks) [06:44:00]. The “measuring stick” must change when playing a different game [06:56:00]. The fastest way to achieve a million dollars per year may not be the fastest way to reach ten or one hundred million per year [06:59:00].
Running a local restaurant can involve the same effort and stress as building a potentially billion-dollar application [07:07:00]. This is like choosing between three slot machines that cost the same to play: one pays out 10 million, and one a billion dollars [07:30:00]. Many line up for the smallest payout. The critical factor is how long the payout is measured: if one pays out now, one in a year, and one in five years, the long-term, higher-reward option is often overlooked for immediate, smaller gains [07:44:00].
The uncertainty of whether the work will pay off is precisely what makes entrepreneurship valuable and not for the faint of heart [08:07:00]. So long as effort contributes to personal improvement, no effort is wasted, preventing burnout [08:20:00].
The Value of Skills as Income Insurance
A profound lesson learned from losing everything was the realization that built skills, not accumulated assets, are the true “income insurance” [08:29:00]. Investing in skills is like investing in a retirement plan, as they can always be traded for money or value [09:00:00].
Re-evaluating the Weekend
The concept of a “weekend” is a modern invention, barely 100 years old [09:14:00]. The real need is for work that one doesn’t feel the need to retire from [09:18:00]. Work-life balance should be viewed on a longer “7-year time horizon” with seasons of intense work and seasons of less work [09:21:00]. People who live long often have reasons to stay alive, and work can be a good one [09:43:00]. This contrasts with soul-sucking work one wishes to escape [09:51:00].
Working on weekends can significantly accelerate progress, as not doing so means going “backwards 104 days a year” [10:03:00]. Losing steam or going off track on weekends can negate all the work done during the week, leading to neutral or even negative progress by year-end [10:47:00]. Someone who maintains momentum or gains ground on weekends moves ahead significantly faster—potentially seven times as fast as someone who doesn’t [11:28:00].
Giving Value First
Especially when starting out, the best approach is to give value away for free [22:08:00]. This is beneficial because new practitioners “probably suck” initially [22:13:00]. Giving value allows for building testimonials, referrals, and potentially attracting paying customers [22:20:00].
Instead of asking “in exchange for,” one should go above and beyond, do a significant amount of work, and simply give it to the desired recipient without expectation [23:20:00]. While often nothing will happen, the effort proves a strong work ethic [23:37:00]. There’s a chance they might offer an opportunity in a different area, or, least likely but most desired, directly utilize the provided value [23:51:00].
Providing tremendous value to a hundred business owners, even if only a few respond, can generate more income than most traditional jobs [24:14:00]. This strategy was personally used to gain initial customers by offering free training in exchange for donations to charity, eventually transitioning to charging clients directly [24:30:00].