You need to go broke

You need to go broke

With every business that you make 

There will be ups and downs

On the ups, you’re focused on scaling and expanding 

On the downs, you’re eliminating the excess fat and making your business efficient

But you need to go broke sometimes to reevaluate your machine

I look at a business as a machine

A machine that spits out cash 

You put money and energy into a machine and it spits out cash on the other end

A very interesting thing that I’ve realized, is in the process of scaling

You focus on building that machine, making it bigger, hiring, adding parts to that machine

But by doing that in a rushed way can lead to low efficiency

Most people forget about capital efficiency 

Especially those that are not business savvy, they will build a machine

Put time, effort, and money into it.

But the machine that they build not necessarily one that has a higher output than input

Whenever that happens 

Whenever your machine/business is spitting less cash than the energy added inside 

That’s when you go broke if you’re a beginner.

When that happens here’s what you need to do.

-Eliminate the fat

-Learn from your lesson (never repeat)

-Focus on learning

-Live below your means

-Learn how to add tech to the machine

By doing that, you’re basically making that machine more efficient and making it spit more cash relative to the energy you add inside

A great place to learn how to do so is in my group

I’ve just dropped a module about capital efficiency and how you can add AI tech to make that system more efficient

Anyway….

In life you need to go broke a few times to understand how to properly scale companies 

You will go broke 

And that’s natural 

I’ve gone broke many times

No shame about it

It’s all a part of the process

The process of getting better

You just need to be relentless in the journey of success 

As long as you focus on continuously learning and actioning on new data 

You’ll kill it

Go get it man

-JP