From: alexhormozi
Providing genuine value is foundational to long-term success in entrepreneurship and life. It underpins value creation, building a valuable business, and personal fulfillment.
The Foundation of Hard Work and Delayed Gratification
To surpass 99% of people, one must continuously work without needing immediate reward . The journey of hard work involves losing sleep, doubting, stressing, and having unfinished to-do lists, but this is the nature of true effort . The more intensely one works, the more one realizes their previous definition of “hard work” was limited .
The most potent combination for making money is work ethic and time . Achieving greatness requires immense effort, forcing individuals to focus on only a few key areas and ignore the rest . The work simply needs to be done; there are no shortcuts .
“The work just needs doing, and no one’s going to do it for you.”
When working for oneself, compensation is based on output, not merely presence . Therefore, a “workday” is defined by clear output or forward movement . The longer one can delay the need for immediate reward, the greater the ultimate outcome . This concept is likened to a plane taking off: a longer runway allows for a bigger plane . Entrepreneurship naturally involves uncertainty, sleepless nights, and long-term commitment without guaranteed credit .
The Value Equation and Long-Term Perspective
The value equation in entrepreneurship presents a paradox: while a dream outcome exists, it is neither guaranteed nor easy, and it takes a long time to achieve . Many entrepreneurs fail because they are in a rush, leading to poor decisions and constant “hopping” between ideas, which guarantees failure .
Building a strong foundation requires patience and a long-term perspective. For example:
- Brand Building: Developing a reputation over a long period, not just for transactions, but to associate oneself with positive attributes . This allows people to learn about you, develop affinity, and make multiple associations . This is like a bamboo tree, which spends five years growing roots before shooting up rapidly .
- Product Development: Investing significant time in coding, building a robust codebase, or navigating regulatory complexities . For e-commerce, it involves extensive communication with manufacturers, prototyping, testing, and capital investment for inventory .
- “Sharpening the Axe”: Spending time preparing and building a strong foundation, which can yield significantly greater results in the long run . An individual who spends a year sharpening their axe to a “lightsaber” will far surpass someone who immediately starts hacking away with a dull axe .
One’s “measuring stick” must change when entering entrepreneurship; family and friends on an “employee time horizon” may not understand the extended timeline for results . The fastest path to a large income may not be the fastest path to a significantly larger one .
“The fact that you don’t know if it’s going to work is exactly what makes it worth doing.”
Embracing uncertainty is crucial for entrepreneurship; the real challenge isn’t the work itself, but the not knowing if the work will pay off . If effort leads to personal improvement, no effort is wasted, preventing burnout .
Investing in Skills for Income Insurance
The most significant lesson the speaker learned was that what they built were their skills, not just a business or assets . Skills act as “income insurance,” providing confidence in one’s ability to generate money regardless of external circumstances . Investing in skills is akin to investing in retirement, as they can always be traded for value .
Reconsidering Work-Life Balance
The modern concept of a “weekend” is a relatively recent invention . Instead of focusing on a 7-day work-life balance, consider it over a 7-year horizon, recognizing seasons of intense work and less work . The ideal is to have work that one never wants to retire from . People who live longest often have reasons to stay alive, and work can be one of them .
The desire to avoid work often stems from hating “soul-sucking” jobs . However, not working on weekends (104 days a year) can significantly hinder progress . If leads aren’t worked on weekends, sales can be lost, and not generating income creates a deficit that must be made up during the week, effectively reducing productive workdays . Someone consistently moving forward or gaining ground on weekends can progress seven times faster than someone who loses momentum .
Dealing with Competition and External Feedback
“Success is the only revenge” . Rather than focusing on competitors, winners focus on customers . Competitors who try to copy are often distracted from their own customers, confirming that you’ve already won because they need you . It’s a positive sign when people copy your work .
The market “pie” is much larger than most people perceive . Challenges and competition are ultimately beneficial, helping one become the person they aspire to be .
“If you are the output of your life… then competition is good for you.”
Feedback, including “hate,” should be treated as data to be considered for its validity, rather than a judgment .
Addressing Emotional States
- Sadness often comes from a perceived lack of options, leading to hopelessness . It is solved with knowledge .
- Anxiety results from having too many options but a lack of priorities, causing paralysis . It is solved with a decision .
- Disappointment occurs when expectations are unmet . To overcome it, one must either change expectations or change reality . Imagining worse scenarios or repeating the disappointment a thousand times can help adjust expectations .
The ultimate goal should be to become the person one wants to be, as this is 100% within one’s control . Mapping one’s behavior to that desired self brings greater joy .
The Strategy of Providing Value for Free (Initially)
A highly effective strategy, especially when starting out, is to initially give value for free .
- Acknowledge your initial lack of skill: If you haven’t done it yet, you probably “suck,” and it’s a gift if someone allows you to work for them .
- Gain Leverage: Providing value for free allows you to build testimonials, referrals, and potentially convert into paying customers .
- Scale Pricing: Once demand at the “free” price point is too high, gradually increase pricing, starting at a fraction of your desired rate and scaling up .
- Give without Expectation: Go above and beyond, do a lot of work, and simply give it to the person without expecting anything in return .
Often, nothing happens, but it demonstrates your work ethic . Even if the specific offering isn’t needed, hard work and effort are always valued by those at a higher level . Alternatively, your work might directly align with their needs .
“If you give tremendous value to 100 people, you’ll be able to make more income than most jobs in America.”
The speaker’s own experience with the “Free Training Project” involved training customers for free if they donated to charity, eventually transitioning to charging for continued training when demand became too high . This illustrates the power of providing initial value to build a customer base and prove your worth.