What most people don’t understand is that the fact of the matter is this:  it’s not just about working “hard”, it’s about working hard and smart.

Sounds simple enough… but, oy vey, mensch… is it difficult to get the right balance!

From my personal experience, here’s what “hard work” typically looks like:

• Long hours
• Low pay
• Lots of stress
• Little time off
• Little freedom
• Little control

The worst part of all is that hard work alone rarely leads to any real long- term results.  It seems that the harder I have worked in the past, the less I had to show for it in the end.

Working “smart” means your time and talents are leveraged.

One thing I have learned is that there is a delicate balance which one has to find between what it is to “work hard” and to “work smart”.

The secret to working smart is this: working smart means your time and talents are leveraged.  It means that the direct correlation between the exchange of time/talent and remuneration is severed.  This is a KEY distinction that I have only recently understood myself.

When you grasp this concept you will also agree that your income is not limited by how hard/long you work alone, but rather by how much leverage you can also apply to the work you are doing.

Working “smart” gives you leverage- the Entrepreneur’s “secret sauce”.

Combined with hard work, leverage is the secret to breaking free and beginning to replace your income.

It means eventual freedom!

This is exactly what we teach at the Six Figure Mentors, an entrepreneurial empowerment and mentorship company of which I am co-founder.

The following is a very simple example of how leverage can be used to make more money in less time with less effort.

See how Joan is able to use the very same resources as Jim to earn 30 times as much.

Jim digs trenches for a living at Digital Ditches, Inc (DD, Inc).  He earns $750 per completed ditch. (DD, Inc charges the customer $1500.)

The tool given to him for the job is a little garden spade, the same tool all of the other diggers use. (A garden spade is a tool with a blade of about 6 inches and a handle about the same length.)

It takes Jim about 50 hours (a week) to dig each ditch. (That’s assuming he can work 10 hours a day, 5 days a week.)  At $750 per ditch divided by 50 hours, Jim’s maximum earning potential is $15 per hour.

Jim works his butt off every day and win or lose, he’s just a piece of the puzzle.

Little risk, little reward- just lots of hard work.

Jim looks forward to every coffee (tea) break and lunch break.  He looks forward to the weekend.  On Sunday night, he has a pitiful knot in his stomach thinking about the long week ahead.

Though Jim is happy to have a job, he’s generally feeling unfulfilled and is just “putting in time”.  He knows he is worth more, but honestly doesn’t have the motivation to change his circumstances.  Thus, he sticks with what is familiar and safe.

He went to school, got a degree in digital ditch digging and just like his friends and family, he goes to work for a company in the digital gold rush.

Daily, diligently, Jim digs- month after month and year after year.

After 40 years of digging, he has a lot of experience digging trenches.  He may have been rewarded with health care, on going training and some benefits. However, he has little to show for it at the end of the day.

Now, compare this to Joan, a slightly more innovative person than Jim.

Joan started digging ditches for digital diggers the same time as Jim.  After the first month, realizing how back- breaking it was to dig with this little garden spade provided by her employer, she started thinking about a solution.

The garden spade (her “business system”) was the weak link.  She applied some “smarts” to her work and went out on her own, and out of her own pocket, she bought a real shovel.  Now this tool has a blade of 12 inches and a handle of 48 inches.

For the same output and effort, Joan finds a way to achieve 8 times the results.

Compare what she was given, a 6″ blade with 6″ handle (1:1 leverage), to her new shovel.  This new tool has a 12″ blade (2x more result for each shovel stroke) and 48″ handle giving her a whopping 4:1 leverage.

Let’s do some basic math.  Double the result for each scoop plus 4:1 leverage from the long handle = her leverage is now 8 times what it was.  In other words, for the same output and effort, she is getting 8 times the results.

Joan can now earn $750 per ditch in about 6.25 hours instead of 50 hours. (8 x 6.25 = 50)

Joan doubles down and leverages herself even further!

Joan decides she’s ready to make a leap and take on some additional risk.  Instead of working for Digital Diggers the rest of her life, she is going to start her own company.  She’s going to become an entrepreneur and try to increase her income while digging even less.

With her own company, Joan cuts out the middleman and earns the full $1500 per ditch – keeping all the money for herself.

Compare $1500/6.25 ($240 per hour) with Jim at $15 per hour.  By taking on some additional risk, and finding a way to work smarter while STILL working hard, Joan has 16 times the income earning potential as Jim.  Btw, this is the definition of “entrepreneur”. 

And then… without even lifting a shovel – she doubles her income… again.

We could take this a step or two further and look at leveraging her efforts even more.  Maybe Joan learns about business systems (marketing, how to hire employees and contractors, etc), she places an ad online and hires 5 former co-workers from Digital Diggers, including our buddy Jim.  She offers to pay her new subcontractors each $900 per trench, keeping $600 for herself. (They are happy with the pay raise and so is she.)

Now, without even lifting a shovel she is netting an additional $3000 a week (5 x $600) before actually digging a single ditch herself.  Her hard work has paid off and now she is actually making money in her sleep you could say.

Let’s say Joan digs just two trenches a week herself ($3000) plus makes an additional $3000 by leveraging the efforts of her subcontractors.

That’s $6000 weekly for only 12 hours of digging and a little supervising.

Leverage makes life easier.  A whole lot easier…

Leverage makes life easier.  The secret is to stop thinking in terms of “working harder” and to start thinking in terms of leveraging yourself with a “business system” of some sort.

Yes, it’s going to take you learning some new skills, investing in yourself, and maybe even more hard work for a time.  It’s going to take you stepping out of your comfort zone and includes taking on additional risk, but once you get the concept of leverage, there is no limit to what you can earn in the digital economy.

The secret to Joan’s success is her “business system”: 

• She’s able to leverage other people’s time

• Her employees are already trained

• Her market is already established

• One employee gets extra perks to manage the crew of 4

• Her marketing is set

• She gets paid top dollar

• She has a lifestyle business

All of the business parts are systems that work together creating efficiency and profits for her.

Obviously this is an uncomplicated example.  Building a real business from scratch is no small task.  If it were as easy as this example everyone would be a business owner and everyone would be independently wealthy.  The reality is that most small businesses and entrepreneurs fail at least a couple of times before they gain enough real world business experience to have sustainable success. (It’s estimated that 85 to 94% fail within their first 5 years with 50% of survivors lasting an additional 5 years.)

So, what is the solution?  What’s the secret?

The secret is to find an already proven “business system.”

The most predictable and reliable business model is the franchise model.  There are infinite benefits to being able to plug into a proven business system rather than building it all from scratch- especially if you’ve never done it before.

For example, when I started my first online business I made every mistake in the book.  I had to learn everything from scratch. 

Compared to a franchisee, it’s like building your own car from scratch vs. going to a dealership and picking one off the lot.  The beautiful thing about getting a proven business system is that most of the learning curves and opportunities for human error have been eliminated.

You can focus on “running” the business, instead of “building” it first, then running it.

It doesn’t get anymore simple than this.

WAKE UP: Leverage- the Secret Sauce

In this podcast, we talk further about leverage and its many magical attributes.

Don’t get left behind with your 6″ trowel.  Upgrade and add some leverage to yourself, today!

Podcast: WAKE UP: Leverage, the Secret Sauce GET IT HERE

Listen, comment, and share:)

Farmers are the most bad-ass people on the planet.  They have nerves of steel, they know strategy, they know operations and outcomes, they know management and are able to survive in an environment where they cannot control the vast majority of variables.

The differences between being a successful farmer and a successful digital entrepreneur are not that great.  In fact, being a digital entrepreneur is a heck of alot easier, alot less stressful and A LOT more fun than being a farmer!

Springtime!  I just love this time of the year!  It never fails to brings back memories of growing up in Ontario on the farm; the first 3 weeks of May were “planting season” for us.

For a farmer, many factors go into planting and growing a healthy crop.  Months in advance, we’d plan and prepare for the planting season.  There were so many conditions and variables to take into consideration- it took incredible foresight and preparation to pull off a successful planting- and it all had to be done within the first few weeks of May.

Costs, or inputs, and yields were all calculated in advance.  Seminars and conferences were attended.  Intensive information was gathered and equipment serviced.  All of this expense, time, effort, and energy, were part of the process designed to create a particular result within a set time span.  We had to be prepared.  Like a movie shoot, everything was mapped out before we set to work applying the things needed to create the prospective outcome.

When May rolled around we had our specific strategy in place, plus a contingency plan.

Being a digital entrepreneur in the digital economy, comparatively speaking, is like learning to use the ATM machine:  You can access global markets from your smart phone!

Like farmers, digital entrepreneurs all have the same pieces with which to work.  We’ve got the same climate, economy and Internet, as well as access to the same basic components and resources, one way or another.

Snow, rain, or hail are not going to affect our profitability.  We’re not under the gun to get all our marketing done in a 3 week period like a farmer who has limited time to get his fields sown.

Your income has very little to do with the opportunity afforded to you as a digital entrepreneur.

Your income has to do with your self image, your self worth.  “What do you see yourself worth relative to the people around you; and whether you’re going to settle for less?”

WAKE UP!  See the magnificent opportunity you have here in the digital gold rush! Don’t EVER buy into the notion that the opportunity costs of being a digital entrepreneur are too great!

What we have to work with is insane – we dare not take it for granted!!  Trust me, I know.  I once was a bad- ass farmer.

Get more details on my WAKE UP Call on Blog Talk Radio. Listen to the podcast below.

Listen, Comment & Share!

An entrepreneur once asked a wealthy and established businessman, “How did you do it?  How do you continue to increase your profits year after year?  I spend hours each day racking my brain, trying to figure out how to make (get) money – and I can’t seem to do it.”

The wise businessman gave the young man a very sage piece of advice.  “It has never been, and never will it be, my intention to make money.” he told him. “My intention has always been to make a better product.”

When we shift the focus from how we can “get” to how we can “give”, success becomes inevitable.

Join me for a Special Episode WAKE UP: Get What You Give

Jay

I was up to my ears in disenchantment. Inspiration that caused me to take the initial action was gone! All I had left were credit card balances and self doubt.

How often we get excited about a new project, something we’ve been wanting to roll out; it’s like taking in a new adventure. It drives us in a powerful and inspiring way. Fast forward a few months into the project and it’s not so fun anymore; you’re just not feeling it like at first. Disenchantment and self doubt creep in. A critical juncture. It would take little to walk away and go no further.

I have learned that disenchantment is a natural part of the creation cycle and it’s something that everyone deals with.

Patience & persistence has made me more money than any other characteristic or skill.

Characteristics like patience & persistence are two things that anybody can choose. How do you know when it’s time to pack it in? How do you know when to allow disenchantment to run it’s course, where simply all that’s needed really is for you to be digging deeper and muscling through it. Whether to continue with patience and persistence, or to “throw in the towel” is something you’ll have to determine. Having the ability to determine which of those 2 paths to go on is a vitally important factor that an entrepreneur or someone who is self employed must have.

It all comes down to your internal guidance system.

There is only one right path for you at any given moment. It’s a matter of finding where that internal guidance system compass is pointing in that moment when disenchantment sets in.

What does your gut have to say about it?”

The secret is in knowing your path.

Why are you doing all this in the first place? What is the bigger purpose? Without knowing the answers to these questions, there is no way you can push through those tough times. Advancing with confidence, knowing that the path you’re on is right for you, is the only thing that can give you patience and persistence to push through the disenchantment, to put one foot ahead of the next. Peace will rule the day, and you will see momentum swing back into your favor.

This post is based on my Wake Up call on Blog Talk Radio. Listen to the show below!

I love your feedback! Inspired? Comment & Share!

A wake up call came for me one day back In 2004 when I was working at Midas. To sum it up, I came to the realization that if I wanted to find a way to better leverage my time and talents than “standing here behind this counter talking to only one person at a time in this job, this is not the best way to attain it.”

I had to find a better way of bartering my time for money.

There are many types/forms of barter. A person can trade their time for a paycheck, the most common being dollars per hour. Obviously the amount that your job pays will be commensurate to the value of your role within that particular organization, business, etc. Experience, education, tenure, seniority, etc., any of these can affect how much you will be qualified to earn for your time.

For me back in 2004, I felt as though I was beginning to push the top of that envelope, having worked my way up from essentially being a landscaper for the owner, to running and eventually managing these different Midas shops.

I figured out a way to leverage myself and coworkers, to a point where, within a year, I doubled my income.

All throughout I was constantly cognizant of how I was spending my time. Something you want to be extremely aware of no matter what kind of employment situation you’re in is the percentage of time that you are doing an income producing activity for your client or employer.

It’s one thing to show up, put in time, then punch out at the end of your shift. Alternatively being someone who gives 120%, someone who is always looking for ways that lead to opportunity, that! is the distinction!

Even if, you’re still working in a barter economy (where you’re trading time for money), there are ways to significantly leverage your income without leaving that type of work.

Entrepreneurs (and there’s one inside of everyone), embody problem solving. It doesn’t matter what the industry or business. All the skills they need know in order to do the job, they know they can learn or outsource along the way. The secret is to start looking for problems you can solve. Problems mean opportunities and the only way to transition from a barter economy to a leveraged economy is to find solutions to problems that exist in your world.

Difficult situations inspire ingenious solutions.

When a problem, challenge or crisis happens at work, are you one to take responsibility for the matter and look for ways to create a solution? Are you someone who leverages talent or skill for money by “owning” the problem and finding ways to solve it?

Capitalize on the problem by leveraging your unique talents and problem solving skills. Think strategically of ways to turn it into an opportunity. Sometimes all it takes is changing your mindset on how you trade those talents and skills for money, and when you do, all of a sudden your value to your clients, customers or employer increases significantly. Guaranteed your income will increase by 10 or even 100-fold.

Remember, inside of every problem lies opportunity!

Want to learn more? Listen to this week’s Wake Up Call on Blog Talk Radio below.

Inspired? Comment & Share!

It’s a beautiful day to be alive! I’m hoping that you feel the same no matter where you are today in the world. It’s springtime here in New York. Seeing the little green buds poking out their heads as everything is beginning to bud and bloom, Wow! what an incredible feeling!

Imagine doing the things you are genuinely passionate about, the things you love to do, today.

Being able to make a living while doing what you love is the ultimate dream, the ultimate win-win scenario.

Some people have hobbies they love doing; some are fortunate enough to find a way to sustain their hobbies earning a living with them. Quite simply, that process is entrepreneurship; that’s it. Amazing isn’t it! Especially, when you’re getting paid to do what you love! As a human, I think that is the ultimate dream! The ultimate win-win scenario.

So what does it take to figure out your passion, ultimately, to make it your profession or vocation? “Is this even possible for me?”, you might ask. Absolutely!!

Give yourself permission to think about what it is that you really love; what is it that makes you happy?

It could be something completely different from what you think you should do.

For this very reason, I’ve come up with the concept of the X, Y and Z factors. It’s a method you can use to discover and unlock your talents and passions; those things that make you special and unique, the things you love and find fulfillment in.

Once you tap into these aspects of yourself, you can begin to create a life by design.

Do a little bit of something that you love every day, just a little bit… and watch what happens. Notice how you feel.

Personally, I find I am at my best when I’m doing what I love. When I’m doing something that I love, I feel immensely grateful. Being in a place of gratitude gives me a greater capacity for creativity and inspiration.

Make life a balancing act.

The things we really want in life like time, money, passion, fulfillment and happiness, they are, in fact, byproducts of living a balanced life. They are not a means to an end but rather a product thereof.

If you are constantly obsessed about the end result of what you want in life, (true, you want to know the outcome), if it consumes you to a point where your life is not in balance, what good will the outcome be to you.

Begin by doing what you love. Just because… because it makes you feel good, it makes you feel inspired, and grateful because you’re getting to do what you love. Chances are you’re going to excel at whatever it is you love to do, and don’t ever let anyone tell you what that should look like for you.

Do the things you love! Go for it! Do lots of it and you will be great at it! Who knows where that path will take you.

This article is based on the April 9th, 2013 WAKE UP Call hosted on BlogTalkRadio

Listen to the replay below.