paint-brush
Leverage: The Shortcut to Outperforming Everyoneby@praisejames
288 reads

Leverage: The Shortcut to Outperforming Everyone

by Praise J.J.December 7th, 2024
Read on Terminal Reader
Read this story w/o Javascript
tldt arrow

Too Long; Didn't Read

The world doesn’t reward effort. It rewards results. The secret? leverage. Success isn’s about having the right systems.
featured image - Leverage: The Shortcut to Outperforming Everyone
Praise J.J. HackerNoon profile picture

"If you have four hours to cut a tree with an axe, spend three sharpening the axe. If you have six hours, find a chainsaw." ~ Praise J.J.


The world doesn’t reward effort. It rewards results. Yet, effort can lead to results if applied correctly. The secret? leverage.


Let’s start with the question that matters: Are you right enough?

Success Isn’t About Dreams—It’s About Systems

Unlike the feel-good narrative Hollywood sells, success isn’t about bad childhoods and big aspirations. It’s about having the right systems.


Everyone running with Usain Bolt has the same goal: finish first. The winner isn’t the one who wants it most—it’s the one with the right combination of diet, training, and strategy.


The world operates efficiently. Unlike school, where you get points for showing your work, the real world only cares about the answer.


Effort ≠ Justification. Results = justification.


$10,000 in value earns $10,000, whether it takes 20 minutes or 200 hours. Even if it’s 10 lines of code.


The question isn’t whether you’re working hard or smart. The question is: Are you doing what it takes?

“Work Hard" Is Overrated

Let’s break down the world’s advice:

  • 49% say: Work hard. I disagree.
  • Another 49% say: Work smart. I disagree.
  • The final 1% say: Work hard AND smart. I still disagree.


The problem? These phrases are overloaded—they mean different things to different people.


The better word is diligence: doing the work required, with or without recognition, for as long as it takes. Not your best, not your hardest, not your smartest. Just what the problem demands.

Work = Volume × Leverage

The work equation is simple:

  • Volume is the intensity of inputs: 100 cold emails, 10,000 words, 500 squats.
  • Leverage is the multiplier: the tools or systems that amplify your efforts.


To achieve success, you need the right balance of volume and leverage.

  • Increase volume: "Do more."
  • Find leverage: tools, systems, or strategies that multiply your inputs.


There are two types of leverage:

  1. Permissioned: Somebody has to give it to you (e.g., labor, capital).
  2. Permissionless: You don't need consent (e.g., code, content creation).


Leverage is non-negotiable. Without it, you’re playing the wrong game.

Linear vs. Exponential Growth

You either grow or die.


The stock market grows by 9% annually. Money is inflating. Everything is dynamic.


So, being stagnant means you're growing at the same rate the world moves. Anything less is dying.


There are two types of growth paths:

  1. Linear Growth
  2. Exponential Growth

Linear Growth: Climbing the Ladder

Linear growth is when the value of leverage is 1. Most people are taught to grow linearly:

  • Climb the corporate ladder.
  • Add one rung at a time.
  • Earn slightly more each year.


Linear growth is predictable:

  • Input X → Output X.
  • Input 2X → Output 2X.


The problem? You always have to push. If you stop, you die.


Linear growth works for specialists: surgeons, lawyers, and pilots. They’re expensive because they provide immense value. But their value depends entirely on them showing up. No surgeon, no surgery.


If your goal is to build something bigger than yourself, linear growth won’t cut it.

Exponential Growth: Leveraging Multipliers

Exponential growth is where the magic happens.


Here the value of leverage skyrockets. You can work for five years and see nothing, then one weekend in a garage changes everything.


Examples:

  • Facebook isn’t about the code—it’s the network effects.
  • Tesla’s worth isn’t in cars—it’s in the gigafactories and IP.
  • MrBeast’s success isn’t from one viral video—it’s consistency meeting exponential reach.


Exponential growth is uncomfortable because it's not easy to predict.


In exponential growth, you will always get the big payoff, but you can't know when. If you know when, you've already had the payoff.


In linear growth, you will usually be right because you're not doing anything new. 1+1 will always equal 2.


Millions of people have already lived their lives and gotten the same results. It's a framework that always delivers. It's based on simple and concrete truths. You'll only be wrong a few times (accidents and unfortunate circumstances).


In exponential growth, you will be wrong 99% of the time. Just like Thomas Edison, just like the Wright brothers, just like Elon Musk, just like MrBeast and thousands of others that are building things bigger than themselves.

But the only thing that matters is the big one at the end. That's what makes you 100% right. Linear people are 99% right but 100% wrong. The 1% that works overshadows all the failures.


Exponential growth rewards patience, persistence, and adaptability. Every failed iteration builds the foundation for eventual success.

Start Young, Start Small, Start Now

The earlier you start chasing exponential growth, the easier it is.


Early exponential growth:

Early Exponential Growth

Late Exponential Growth:

Late Exponential Growth


Here’s why:

  • When you’re young, failure costs less.
  • As responsibilities grow, the cost of risk skyrockets.


Consider this:

  • If you earn $500/hour, risking 100 hours feels like losing $50,000.
  • If you earn $50/hour, those same 100 hours only risk $5,000.
  • If you earn $0/hour, you have nothing to lose.


Start today. Every day you wait makes it harder to escape the linear trap.

Leverage: The Skeleton Key to Tech Giants

Leverage simply takes a decision that linear people would have to make repeatedly and does it at scale while you sleep. Tech giants leveraged systems that multiplied their efforts. Here’s how:


  1. Intellectual Property
    • Protect unique assets others can’t copy.

    • Example: Google’s search algorithm, Coca-Cola’s secret formula.

    • Takeaway: Build moats around your core value.


  2. Network Effects
    • Users amplify the product’s value.

    • Example: Uber, LinkedIn, and Airbnb thrive because every new user strengthens the ecosystem.

    • Takeaway: Create flywheels where users drive growth.


  3. Vertical Integration
    • Control your supply chain. Keep profits in-house.

    • Example: Apple builds hardware and software; Shopify owns its e-commerce stack.

    • Takeaway: Maximize profits by owning the stack.


  4. Government Contracts
    • Secure recurring revenue and legitimacy.

    • Example: Palantir thrives on defense contracts.

    • Takeaway: Look for opportunities in regulated industries.


  5. Productized Simplicity
    • Nail one thing.
    • Example: The "Yo" app (just sends “Yo”), yet it dominated for its simplicity.
    • Takeaway: Complexity isn’t always an asset.

The Catapult Principle: Consistency Beats Entropy

Success is like a catapult. The more you consistently pull, the farther you shoot. But inconsistency lets the stone fall off.


Be diligent. Show up every day, especially when it feels pointless.

Closing Thoughts: The Best Time to Start

The best time to chase exponential growth was when you were a child. The second-best time is today.


Linear growth gives comfort, but exponential growth gives freedom.


Leverage your unique skills. Start small. Stay consistent. And one day, people will call you an overnight success. Rooting for you.


Enjoy the rest of your day.


PS: Want to unlock exponential growth and mental clarity? Join my newsletter: https://crive.substack.com