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Developing resourcefulness in business

8 min read

From: alexhormozi

The concept of resourcefulness is critical for anyone looking to change their life or improve their business, especially when operating with perceived limitations [00:00:00]. It emphasizes the power of individual decisions and actions to create desired outcomes [00:00:16]. The speaker, who owns Acquisition.com, notes that ten years prior he was sleeping on a gym floor, and now operates from a penthouse, attributing this significant improvement to a series of impactful decisions [00:00:32].

Understanding Power and Decision-Making

Power is defined as the ability to influence or direct events or people [00:04:59]. This ability is neutral; one can be powerful for good or ill, but harnessing it amplifies who a person is [00:02:33]. The ultimate goal is to enable individuals to become more powerful in their lives [00:01:06].

Decision-making is at the heart of this power [00:02:59]. If past decisions have led to an undesirable present, then those decisions were not good, and new decisions are needed to change life for the better [00:00:07].

Resourcefulness vs. Resources

A core principle is the distinction between having resources and being resourceful [00:43:40]. A self-made billionaire, when starting with nothing, is in the same position as someone else with nothing; the difference lies in their resourcefulness [00:42:22]. The speaker illustrates this with the story of Phil Knight, the founder of Nike, who, facing bankruptcy, convinced his vendors to pay his company’s payroll [00:42:50]. This demonstrates that even with “nothing,” creative solutions can be found [00:43:50].

Resourceful, Not Resources

“You have the ability to be resourceful when it’s for someone else and not for you… it’s because you choose to be powerful when someone else needs it but not for yourself.” [00:45:34] If one functions as if they must make payroll, they think differently and find solutions [00:45:50].

Overcoming Obstacles through Logic

When trying to make decisions, or help others make them (e.g., in sales), people often cast their power onto external factors or “distortions of reality” [00:18:15]. These distortions manifest in common excuses or “scapegoats” [00:29:29]. By using logical frameworks, these can be confronted to reveal the true reason for indecision [00:26:07].

The speaker identifies three core distortions, adapted from Dr. Albert Ellis’s cognitive behavioral therapy (CBT) principles [00:27:01]:

  1. Circumstances: “I must get what I want when I want it; I must not get what I don’t want. If I don’t get what I want, I can’t stand it.” (Blaming external situations like time or money) [00:27:42]
  2. Others: “Other people must treat me fairly and kindly, and if they don’t, they are no good and deserve to be condemned and punished.” (Blaming partners, employees, etc.) [00:27:56]
  3. Self: “I must do well, or else I am no good.” (Self-doubt or avoidance) [00:28:06]

These distortions can be peeled back like layers of an onion, starting with external blame and moving inward to the individual’s own responsibility [00:28:32].

Common Excuses and Their Overcomes

  1. Time (Circumstance) [00:32:01]:

    • “I’m busy; it’s not a good time” (Macro): If a solution is meant for the long term, and future busy periods are inevitable, starting now during a busy period teaches how to succeed in those conditions [00:32:57].
    • “I don’t have time in my day” (Micro): Often, perceived lack of time is due to inefficient use of existing time, or engaging in activities that don’t yield results [00:34:39]. Focusing on removing non-working activities creates time [00:34:40]. This relates to prioritizing tasks and eliminating inefficiencies.
    • “When I have time, I’ll start” (When-Then Fallacy): This is a logical fallacy where action is made conditional on a future state that may never naturally arrive. For example, “I’ll pay for the program that’ll make me more money when I have more money” [00:35:36]. The program creates the time or money. This applies to starting a business with limited resources.

  2. Money/Price (Circumstance) [00:37:31]:

    • “It’s too expensive” (Why a lot is good): If something feels expensive, it indicates a high stake, which increases the likelihood of commitment and effort, leading to success [00:38:09].
    • “It’s a lot of money (but why is it not?)”: The absolute cost might be high, but the relative value can be immense. If an investment adds $10,000 a month to income or achieves a desired physical transformation, the value justifies the price [00:38:50]. This emphasizes building a valuable business and strategies for business growth.
    • “What’s money good for anyway?”: Money will be spent regardless. The choice is whether to spend it on things that yield no progress or on investments that accelerate growth, effectively “buying time” by learning from others’ mistakes [00:40:43]. This is about leveraging savings to invest in skills and business growth.
    • Resourceful, Not Resources: Self-made individuals started with nothing, demonstrating that success is about resourcefulness, not initial resources. The ability to find money for unexpected bills proves inherent resourcefulness [00:42:15].

  3. Fit (Self/Identity) [00:46:12]:

    • “I’m a special snowflake/it’s not for me” (New identity, new priorities): Spending patterns reflect current identity. To achieve new outcomes, one must adopt a new identity with corresponding priorities (e.g., investing in education and skills to become rich) [00:48:12]. This relates to identifying skills and resources.
    • “I don’t like this certain aspect” (Change the Change): What has been done repeatedly yields the same results. To change outcomes, the methods themselves must change, even if uncomfortable [00:49:56]. The question becomes whether the pain of staying the same is greater than the pain of change [00:50:39].
    • Hypothetical Agreement: Asking “If this were perfect, would you do it?” can reveal the true underlying obstacle. If the answer is yes, then minor adjustments might satisfy the “fit” issue [00:52:07].

  4. Authority (Others) [00:53:45]:

    • “I have to talk to my partner/spouse”: The issue isn’t the partner, but the individual’s own reluctance to take ownership. Asking for “permission” instead of “support” leads to potential future resentment [00:55:46].
    • The best approach is to explain that the decision is for self-improvement and to prevent future resentment, asking for support rather than permission [00:56:16].

  5. Avoidance/Stall (Self) [00:59:07]:

    • “I need to think about it” (Past, Present, Future):
      • Past: This isn’t a fast decision; it’s often a long-standing issue the person has continually avoided [01:01:17]. Don’t let past bad decisions or investments prevent good future ones (“don’t let it burn you twice”) [01:03:04].
      • Present: Time alone doesn’t provide more information if the source of information is already present. Decisions are made with information, not just time [01:06:46].
      • Future: Consider the cost of inaction. What does another five years of indecision look like? This magnifies the pain of staying the same [01:10:37].
    • Confronting the Decision: A decision requires believing three things [01:07:08]:
      1. The product/service will help achieve the goal.
      2. The provider is trustworthy.
      3. It will work for them specifically.
    • Defining “Decision”: The etymology of “decide” (Latin: dacadere, to cut off/kill off) implies choosing to cut off one future in favor of another [01:09:40]. Inaction is also a decision [01:10:07].
    • Risk-Free Options: Frame the choice as a risk-free option that moves them closer to their goal versus a risk-free option that guarantees no progress [01:11:16].

The “Time Tax of Ignorance”

A key concept is the “time tax of ignorance” [01:19:24]. Not knowing how to achieve a goal (e.g., make a million dollars a year) is actively costing that amount of money because of lost opportunity [01:18:38]. The fastest way to pay down this tax is through education and investing in oneself [01:19:49].

Invest in Yourself

“Everything that I’ve ever made in my life is the result of investing in my own education. It has gotten me far higher returns than any stock, any real estate, any crypto… by a mile.” [01:14:56] This highlights leveraging savings to invest in skills and business growth. Education builds skills that no external force can take away, increasing one’s capacity to earn and live [01:16:51]. The speaker’s father, a doctor, was able to rebuild his life in the US after losing everything in Iran because he had skills [01:16:21].

Conclusion: Activating Personal Power

The fundamental principle is that individuals are always in complete control of their power [01:14:17]. Any external factor blamed for inaction is a distortion of reality and a “false god” [01:20:06]. The very reason someone gives for not taking action is often the strongest reason they should [01:13:42].

To develop resourcefulness and achieve success:

Every decision is a vote for or against the person one wants to become [01:18:09]. By continuously taking steps, even small ones, and investing in experiences that build skills, one can consistently move closer to their desired future [01:17:40]. This fosters strategies for business growth and building a valuable business.

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