From: alexhormozi

Entrepreneurship demands a unique approach to work, differentiating itself significantly from traditional employment models. Success hinges on a profound work ethic and a willingness to embrace uncertainty and sustained effort [00:00:15].

The Nature of Hard Work

Working harder allows individuals to surpass 99% of people, often by simply continuing to work without needing immediate rewards [00:00:03]. The more an individual works, the more they realize their previous definition of “hard work” was nowhere near their true capabilities [00:00:22]. The most powerful combination for generating wealth is work ethic and time [00:00:27].

True “work” in entrepreneurship is defined by clear output or forward movement, not just showing up [00:02:40]. Unlike an hourly job where payment is for presence, self-employment only rewards output [00:02:29].

Long-Term Focus and Perseverance

The longer one can delay the need for reward for their work, the greater the eventual outcome [00:02:51]. This is likened to a plane needing a longer runway for a bigger lift [00:02:54]. A short attention span and a need for immediate gratification often prevent significant achievements [00:03:00].

“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” [00:03:04]

The feeling of uncertainty, sleepless nights, and financial stress are inherent parts of entrepreneurship [00:03:17]. Sitting in uncertainty is the very feeling of entrepreneurship [00:03:41].

The Illusion of Speed

Many entrepreneurs fail because they are “in a rush,” leading to poor decisions and constantly hopping between ventures in search of a faster path [00:03:52]. This constant hopping guarantees they will never reach their goals [00:04:02]. While culture often rewards speed, entrepreneurship is fundamentally the opposite of fast, easy, and guaranteed [00:04:04].

A “billionaire” show that depicts building a million-dollar business in 90 days reinforces a misleading perspective, as true, much larger businesses often take years to establish [00:04:57].

Building Foundations

Building a reputation and a strong foundation takes time [00:05:10]. This can involve:

  • Content Creation: Spending years building an audience before launching a product, allowing “roots to go down” like a bamboo tree before rapid growth [00:05:34].
  • Product Development: Investing significant time in coding software, navigating regulatory hurdles (e.g., banking), or developing prototypes and inventory for e-commerce [00:05:41].

Service businesses can be a good starting point as they often require less initial foundation building [00:06:05]. The analogy of sharpening an axe highlights that dedicating time to building foundational skills and leverage (the “lightsaber axe”) ultimately leads to exponentially greater results than immediately “hacking away” with a dull tool [00:06:16].

Shifting Measurement Sticks

Entrepreneurs must change their “measuring stick” from an employee’s time horizon (e.g., bi-weekly paychecks) to a longer-term perspective [00:06:56]. The fastest way to achieve a million dollars a year might not be the fastest path to ten or a hundred million [00:06:59]. The effort (stress and hours) for vastly different ventures (e.g., a local restaurant vs. a billion-dollar application) can be surprisingly similar [00:07:07]. Entrepreneurs should choose ventures with higher potential payouts, even if the reward is delayed [00:07:30].

The Value of Skills

Losing everything financially can reveal that true assets are not physical possessions but the skills one has built [00:08:52]. Skills are “income insurance,” guaranteeing the ability to generate money regardless of market conditions [00:08:54]. Investing in skills is presented as a superior retirement strategy compared to traditional stock market investments, as skills can always be traded for value [00:09:01].

Redefining Work-Life Balance

The concept of a weekend is a modern invention, barely 100 years old [00:09:15]. True work-life balance for an entrepreneur isn’t about a 7-day work week, but rather a 7-year time horizon with seasons of intense work and seasons of less work [00:09:21]. The goal should be to find work that one never wants to retire from, as purpose-driven work contributes to a long and healthy life [00:09:30].

Working on weekends is acceptable, especially when starting a business [00:00:50]. Not working on weekends, celebrating “cheat days,” or failing to respond to leads can create a significant deficit, effectively reducing productive work days and dramatically slowing progress compared to competitors who maintain momentum or work ahead [00:10:03].

Opinions of Others

Many people are afraid of failing not because of the failure itself, but because of what others will think of them [00:00:10]. However, the reality is that those who don’t have what you want often aren’t thinking of you at all [00:41:40].

When starting out, people might seem happy for you, but this can often be because your initial steps (like quitting a stable job) represent a step down in status or income, counting you out of the “race” in their minds [00:15:04]. As you succeed, your progress can remind others of their unpursued dreams, leading to resentment [00:15:41].

Unless someone is truly ahead of you, their hate is often envy and should be disregarded [00:16:39]. Envy is wanting what someone else has, while jealousy is fearing the loss of something you possess [00:16:44].

Competition

Success is the ultimate revenge [00:11:51]. By expanding and growing, competitors can shrink into irrelevance [00:11:53]. There is no greater waste of time than justifying actions to people whose lives you don’t desire [00:12:02].

A significant mistake in one’s career involved losing $25 million due to focusing on a competitor [00:12:47]. This led to a vow never to let someone else dictate behavior [00:12:57].

  • Winners focus on winning; losers focus on winners [00:13:00].
  • Winners focus on customers; competitors focus on winners, trying to copy them and thus becoming distracted from what truly matters: customer data [00:13:05].

If people copy you, it means you’ve already won because they need you, not the other way around [00:13:17]. Hate is feedback; if it’s from those ahead, it’s fear; if it’s from those behind, it’s envy [00:17:06].

Competition can be beneficial because it pushes one to grow and overcome adversity, which is ultimately desirable for personal development [00:14:09].

Managing Internal Emotions

Sadness and Anxiety

  • Sadness stems from a perceived lack of options, leading to hopelessness [00:18:19]. It is solved with knowledge [00:18:29].
  • Anxiety comes from having too many options but a lack of priorities, resulting in paralysis [00:18:22]. It is solved with a decision [00:18:30].

Disappointment

Disappointment occurs when an expectation is unmet [00:19:00]. The solution is either to change expectations or change reality [00:19:01]. Adjusting expectations can lessen the emotional impact of repeated setbacks [00:19:06]. It is important to shoot big without letting missing the mark mean personal failure [00:19:28]. The best goal to pursue is who you want to be, as this is 100% under personal control [00:19:33].

Strategies for Success

Seeking and Weighing Advice

The fastest way to advance in life is to listen to advice that can accelerate progress, avoiding unnecessary suffering and wasted time [00:20:56]. Advice should be weighed across seven levels:

  1. Level 7: Social media comments from strangers who don’t know you and don’t have what you want [00:21:17].
  2. Level 6: People who know you but don’t have what you want [00:21:24].
  3. Level 5: Someone who knows you and knows someone who went where you’re trying to go [00:21:27].
  4. Level 4: Someone who has been there themselves [00:21:32].
  5. Level 3: Someone who took someone else there [00:21:34].
  6. Level 2: Someone who took someone just like you to exactly where you want to go [00:21:36].
  7. Level 1: Someone who has been there, took someone else there just like you, multiple times [00:21:40].

It is often more valuable to listen to someone who has successfully guided others to a goal, as this indicates teaching ability, rather than just someone who achieved it themselves [00:21:45].

Giving Value Without Expectation

When starting out, the best approach is to give away value for free, as you are likely not yet highly skilled [00:22:08]. This allows for gaining experience, testimonials, referrals, and potentially paying customers [00:22:20]. Many aspiring entrepreneurs make the mistake of immediately asking for something in return when offering value [00:22:41].

The correct way is to go above and beyond, do a tremendous amount of work, and simply give it to the person without expectation [00:23:20]. While often nothing may happen, sometimes the recipient will be impressed by the effort and offer opportunities [00:23:40]. Consistent giving of tremendous value to many people can lead to significant income [00:24:14]. For example, one entrepreneur started by training clients for free if they donated to charity, eventually leading to paying clients [00:24:32].