No One Can Outwork Me Keynote Speech at Future Flipper (Pt. 1) Ep 459

In a dynamic talk, Alex from acquisition.com challenges common misconceptions about passive income and the nature of work, emphasizing that success in business hinges on leverage rather than sheer effort or time. He debunks the myth of passive income, stressing that it's actually "less active" rather than truly passive, and highlights the importance of maximizing output over time for wealth creation. Alex illustrates this through his own impressive financial achievements and underscores the pitfalls of uninformed optimism and lack of focus, which lead entrepreneurs to jump from venture to venture without making substantial progress. He advises attendees to concentrate on one business, seek guidance, and learn from mistakes to truly succeed. His core message is that entrepreneurs, not external forces, are the key problem-solvers in society, and leveraging one's time effectively is crucial for making a significant impact.

• Alex emphasizes that passive income is often misunderstood and is not entirely passive; it requires some level of activity.
• Passive income exists on a spectrum of activity, rather than being a binary active/passive concept.
• The audience is warned against being misled by the idea of passive income being completely effortless.

"The reason I'm specifically saying this to this audience is that y'all get fooled all the fucking time by passive income. It's not passive. It's less active. But it is not binary. It is not active or passive. It's how active is it?"

The quote clarifies the misconception about passive income by stating that it's not a matter of being either active or passive, but rather how much activity is involved.

• Alex's goal with acquisition.com is to provide real business education to everyone.
• He wishes successful entrepreneurs like Bezos, Musk, and Buffett had documented their journeys, so he aims to do it for others.
• Alex values entrepreneurship and capitalism as problem-solving tools and dismisses reliance on government or handouts.

"Our mission lay Lanai acquisition.com is to make real business education available to everyone."

This quote outlines the mission of Alex's platform, emphasizing the importance of accessible business education.

• Alex rewrote his entire presentation after interacting with a few people at Yogurtland, indicating responsiveness to his audience's needs.
• The presentation is tailored specifically for the audience, suggesting a high level of engagement and commitment.

"I woke up this morning and rewrote the entire presentation. So this is brand new. It's just for you guys, and so it's going to be fun."

Alex explains his dedication to providing value by mentioning that he completely revised his presentation based on recent interactions, ensuring it is fresh and relevant.

• Alex shares his personal success story of earning more than CEOs of major companies and growing a substantial portfolio.
• He acknowledges that his success might evoke various reactions but focuses on inspiring a select few.
• The aim is to help the audience shortcut their path to material success and then reflect on the purpose of such success.

"As of today, we crossed $100 million. Age 33. And to be honest, no one's more surprised than I am about this outcome."

The quote highlights Alex's significant financial achievements at a young age, which serves as an inspirational anecdote for the audience.

• Alex criticizes the common narrative that no one can outwork certain individuals, finding it misleading and counterproductive.
• He explores different definitions of work, including the scientific definition and the concept of time input, but finds them lacking.
• Effort alone is also dismissed as a measure of work, leading to a discussion on what truly constitutes work for knowledge workers.

"So how can we claim that we work every day and yet we can't even define the word? So how do you define work?"

This quote introduces the issue of defining work in the context of knowledge workers and sets the stage for Alex's own definition of work.

• Alex proposes that work should be defined by outputs rather than inputs like time or effort.
• This definition shifts the focus from how much we do to what we actually accomplish, aligning with the goal of making money effectively.

"Work equals outputs."

The quote succinctly presents Alex's definition of work, emphasizing the importance of results over the amount of time or effort spent.

• Work rate is defined as output per minute of time.
• To increase work rate, one must either increase the volume of work or increase the leverage used.
• The most productive individual can be measured objectively by the net worth added over time.

"How do we work faster? Work rate equals that same thing divided by time. Plain speak output per minute of time."

This quote explains the concept of work rate as the amount of output generated within a given time frame.

"In 2022, he added $140,000,000,000 net worth. For context, that's more than Bill Gates did his entire career in one year."

This quote illustrates the measurement of productivity by comparing the net worth added in a year to that of a successful individual like Bill Gates over his entire career.

• Volume refers to the number of times an action is performed.
• Leverage is the efficiency or impact of each action taken.
• The combination of high volume and high leverage results in the greatest output.

"Volume is the number of times you move the lever."

This quote defines volume as the frequency of actions or efforts.

"The leverage is the length of the lever itself that you're using."

Here, leverage is metaphorically described as the length of a lever, implying the power or advantage one has in a situation.

"The outputs is how much you can lift on the other side."

Output is the result or the amount of work accomplished, akin to the weight that can be lifted using a lever.

• In business, output is synonymous with enterprise value.
• The goal is to increase the value of what is produced, which can be achieved through higher volume or leverage.
• Leverage has no cap, meaning it can be infinitely increased, unlike volume, which is limited by time and physical ability.

"So how can we get more output, which in the game of business is enterprise value? It's how much shit is worth."

This quote emphasizes the importance of increasing the value of business outputs.

"Doing more is capped by time and physical ability. How much you get, aka leverage is uncapped, no cap."

The speaker highlights the limitations of volume and the unlimited potential of leverage in increasing output.

• Working harder does not necessarily mean being more productive.
• Warren Buffett's dividends from Coca Cola exemplify earning more with less time spent, showing the power of leverage over mere hard work.

"Warren Buffett took home 500 million in dividends last year from Coca Cola. As an owner, the CEO took home 50."

This quote demonstrates the disparity between the earnings of someone with leverage (Buffett) versus someone working more traditionally (the CEO).

"If you want to outwork your competition, what you really should be doing is out leveraging them."

The speaker suggests that the key to surpassing competitors is to use leverage more effectively rather than simply working more.

• Skill, technology, quality of leads, timing, and offers all contribute to leverage in sales.
• The person with the best tools, such as an automated dialer, and the best strategy, like calling at the optimal time, achieves higher output.
• Ultimately, a team can outperform an individual, showcasing the ultimate form of leverage.

"The guy who has the automated dialer that keeps his talk time the highest."

This quote illustrates how using technology can increase efficiency and output in a sales context.

"The guy calling with the better offer."

Here, the speaker indicates that the quality of what one is selling (the offer) can significantly increase leverage.

• Time is the constant factor in the equation of productivity; everyone has the same amount to use.
• Money earned over time equates to rate of output, or dollars per hour.
• The concept of passive income is challenged; it is not truly passive but rather less active, and the goal should be to maximize returns per unit of time.

"You spend time. Every second of your life, you receive money over the time that you are alive."

This quote emphasizes that time is continuously exchanged for money, highlighting its value.

"So money divided by time equals rate of output. We are all paid dollars per hour."

The speaker clarifies that the rate of output is essentially how much money one makes within a certain time frame, reinforcing the concept of leveraging time effectively.

• Leverage is defined as the difference between input and output.
• Making money effectively is achieved through leverage, by trading time for greater output.
• Understanding leverage is crucial to financial success.

"So, leverage is the difference between what you put in and what you get out."

This quote simplifies the concept of leverage, emphasizing its importance in the context of making money, where the goal is to maximize output relative to input.

• New ventures or opportunities can often seem attractive and lead to uninformed optimism.
• Uninformed optimism can result in abandoning current projects without understanding the complexities of the new venture.
• This can lead to a cycle of jumping from one opportunity to another without substantial progress.

"You make more money by trading your time for more shit, more output."

Alex is highlighting that the essence of making money is to increase output in relation to the time invested, which is the basic premise of leverage.

• The pursuit of new possessions can contribute to financial instability.
• Consumerism is implied to be a trap that prevents individuals from gaining leverage.
• The conversation at Yogurtland inspired Alex to address this issue, suggesting it's a common pitfall.

"And this is especially relevant for everyone here. Part of this, again, was inspired by the conversations I was having last night at Yogurtland."

Alex indicates that the topic is pertinent to the audience and was influenced by real-life discussions, highlighting the prevalence of the issue.

• Alex outlines five key areas that prevent individuals from gaining leverage.
• These components are uninformed optimism, a construction buddy's story, the magic wand story, half bell bridges, and woman the red dress.
• Each component represents a different aspect of the mistakes people make in their pursuit of leverage.

"There are five pieces to this that I want to break down today."

This quote sets the stage for an in-depth analysis of the five critical mistakes that hinder individuals from achieving leverage.

• Uninformed optimism is the first stage in the cycle of change where individuals are overly optimistic about a new venture without full information.
• This stage is characterized by a lack of understanding of the complexities involved in a new opportunity.
• The cycle includes informed pessimism, crisis of meaning, and potentially informed optimism leading to success.

"The reason is because we're at step one, which is uninformed optimism. You don't know enough about what they're saying."

Alex explains that uninformed optimism is a stage where individuals are not fully aware of the realities of a new opportunity, leading them to make decisions based on incomplete information.

• Entrepreneurs often repeat the cycle of uninformed optimism and failure without learning from their mistakes.
• The cycle is compared to video games, where failure has minimal consequences, unlike real-life entrepreneurship.
• Progress in entrepreneurship requires learning from failures and persisting through challenges.

"In the game of entrepreneurship, you start years later. This is why people don't progress."

Alex highlights the significant time cost associated with failure in entrepreneurship, which contrasts with the quick restarts in video games, emphasizing the importance of learning and persistence.

• The crisis of meaning is a stage where individuals question their pursuit due to the challenges faced.
• It can lead to a shift in goals or abandoning the venture altogether.
• Overcoming this crisis is necessary to reach informed optimism and eventual success.

"The cris of meaning is also called the valley of despair."

This quote identifies the crisis of meaning as a critical low point, also known as the valley of despair, which must be navigated to achieve success.

• Informed optimism is reached after overcoming the crisis of meaning and learning from the experience.
• It involves finding effective strategies and tools that lead to improved results.
• Achieving success at this stage can attract others to the venture, repeating the cycle.

"Then you get to informed optimism. And the number six, you achieve."

Alex describes the process of moving beyond the crisis of meaning to a stage where informed decisions lead to success and recognition from others.

• Starting multiple businesses within a short period can indicate a pattern of not learning from past experiences.
• Serial entrepreneurship is common but can be a sign of repeating the same mistakes.
• Acknowledging this pattern is the first step towards breaking the cycle.

"Who here has more than one business in the last 24 months? Be honest."

Alex is asking the audience to reflect on their entrepreneurial behavior, suggesting that starting multiple businesses in a short timeframe may be indicative of not fully learning from each experience.

• Uninformed optimism is a major factor keeping people from financial success.
• Every business has inherent challenges and difficulties, often referred to colloquially as "shit."
• Acknowledging and learning from new information about these challenges is crucial.
• Staying committed to a business despite difficulties leads to becoming more informed and better equipped for success.

"That is the thing, number one, that is keeping you poor, uninformed optimism."

This quote emphasizes that a lack of realistic understanding of the challenges in business can hinder financial growth.

"There's shit everywhere."

The speaker uses a metaphor to underline that all businesses face problems, which is a normal part of the landscape.

"We're more informed. Fantastic."

Recognizing new issues as a way to become more informed is highlighted as a positive step in business.

• Diversification in business can lead to distraction and impede scaling.
• Specializing in one area, like roofing in the given example, can lead to significant growth and success.
• The wealthiest self-made individuals often focus on one industry for an extended period.
• Age and industry of the wealthiest self-made women on Forbes list suggest that long-term commitment and focus are key to building wealth.

"You're not fucking vertically integrated. You're distracted, right?"

This quote criticizes the misconception that being involved in multiple related businesses equates to effective vertical integration.

"The money you were leaving on the table is the focus that you are not giving to the one thing that matters."

The speaker stresses the importance of focus in one area over spreading efforts thinly across multiple ventures.

"If you want to build something epic, you have to be able to do the same thing for an extended period of time without convincing yourself you're smarter than you are."

This quote underscores the necessity of humility and dedication to one's chosen field for long-term success.

• Engaging in various activities for short durations is a surefire way to avoid success.
• Avoiding assistance from others and repeating mistakes are sarcastically recommended for those not looking to succeed.
• True learning is defined as changing behavior when faced with the same conditions.
• If behavior does not change, no learning has occurred, and time and resources have been wasted.

"Do lots of different things."

This quote sarcastically suggests that a lack of focus is a strategy for failing to make money.

"Who here knows the definition of learning? I'll tell you, same condition, different behavior."

The speaker provides a definition of learning that involves changing behavior to avoid repeating mistakes.

• To make money, one should focus on a single thing for a long period, seek help, learn from others, and avoid repeating mistakes.
• Constantly challenging one's beliefs and asking what might be untrue is a way to grow.
• Ordinary businesses can yield extraordinary results when pursued with dedication over time.
• Compounding effects are vital; if the current business does not allow for compounding growth, it may be necessary to switch to a different venture.

"Ordinary businesses done for extraordinary time create extraordinary results."

This quote encapsulates the concept that dedication to a seemingly mundane business can lead to exceptional success through the power of compounding over time.

"If the vehicle you are in right now does not compound with time, then change the vehicle."

The speaker advises that if a business model does not offer growth through compounding, one should consider changing to a business that does.