My Simple 3-Step Framework For Making More Money

17, Dec 2022

My Simple 3-Step Framework For Making More Money

The Hyperfocused Entrepreneur
December 16, 2022
Read time: 7 minutes

Today, I’m going to share the simple 3-step framework we’ve used to 25x our real estate private equity firm over the past 4 years.

Don’t worry, this doesn’t just work for real estate.

I’ve used this framework to build a window washing company, a manufacturing business, and a publishing house.

How I used this framework was often the difference between growing a thriving business and crashing it into the ground.

(Trust me, I’ve had more crash-and-burns than not.)

Most people fail in business because they don’t understand their key Money Making Activities (MMAs) at different points in their businesses’ life-cycle.

As a result, they waste time and energy doing things that don’t matter.

The Only Goal of a Business is to Make Money

If your business isn’t making money, then you’re not gonna be in business very long.

To survive, you need to get crystal clear on your key MMAs and tackle them daily.

This is the 3-step framework I use to think through my Money Making Activities:

Plant a Money Seed
Grow a Money Tree
Harvest that Money Tree

Here’s how:

3-Steps to Growing a Money Tree

1. Plant a Money Seed

First, and this might seem obvious, but you need a money making vehicle.

There are two important things to recognize at this point:

Not all Money Seeds are equal

Money Seeds can take a million different forms. You could:

Get a job as an accountant
Invest in stocks
Buy a piece of real estate
Start a clothing company.

How big your Money Tree can grow depends on the Seed you plant. It’s critical you plant something capable of producing the fruit you would like to enjoy in life.

Choose wisely.

No Money Seed can grow until it’s planted

Here’s the most common reason people don’t make money: They don’t take action.

It’s so easy given what I mentioned in the previous point to get stuck in a cycle of Analysis Paralysis.

Terrified of making the wrong decision, most people opt out of making ANY decision at all.

In my book, not taking action is the only true form of failure. Everything else is merely a mistake.

Credit: @VisualizeValue

If you’re concerned about planting the wrong seed, don’t be. You can always dig it up and put something else..

In the beginning it’s about taking action, even if that means just planting a Money Bush.

Once you’ve selected your Money Seed, it’s time to go out and get one.

Here’s how:

Learn everything there is to know about your Seed
Network with others who have a similar Seed
Take massive action to get yourself a Seed

In Real Estate, that means:

Reading books
Watching videos
Submitting offers
Touring properties
Attending meetups
Practicing underwriting
Starting to cold call sellers
Networking with brokers, lenders, vendors, & partners

In a DTC (Direct-to-Consumer) brand like an Online Clothing Brand, that means:

Learning
Marketing
Creating products
Crafting a killer offer
Getting your first sale
Designing your “store”

During this phase, you’re preparing fertile soil for your Money Seed to grow.

If you’re starting from scratch, you’ve probably got some rocky soil to clean up. Most people get frustrated and simply settle for planting a Money Weed (aka: a crappy job they hate).

Understand that this won’t be easy, but the results are worth the effort.

So persevere, get that first Money Seed into the ground, and then move onto the least sexy part of the process.

2. Growing Your Money Tree

Most people think getting the seed is the hardest part of growing a Money Tree.

It makes sense why they think that. In the beginning you have no knowledge, network, and resources. You’re trying to get the flywheel going from a standstill.

And truth-be-told, that part IS hard.

But it’s not the hardest part.

The hardest part is watering a patch of dirt for months (maybe even years) hoping and praying and making deals with the devil that you aren’t just wasting your time.

Welcome to the unsexy work of running an actual business that nobody likes to talk about.

But remember, a brilliant idea alone won’t make you money. You’ve got to bring that thing to life.

I always say:

“A million dollar idea is worthless without million dollar execution.”

In Real Estate, this means you’re spending all your time on:

Hiring
Training
Leasing
Evictions
Paying Bills
Renovations
Maintenance
Collecting Rent
And so much more…

In our DTC Clothing Brand, all your time is spent on:

Shipping orders
Hiring and firing
Customer support
Writing email copy
Tweaking landing pages
Managing suppliers and vendors
Dealing with payment processors
And so, so, so much more…

This is where most people quit. They just can’t sustain the effort long enough to see the fruits of their labors.

And even after that first stalk sprouts from the ground, elation often turns to frustration as systems that once worked, suddenly stop.

This happens because in the beginning you had a particular set of problems to solve.

Now, you’ve got an all new set of issues to fix. These growing pains are natural, but they come with the realization that what got you here, won’t get you there.

It’s in this period of constant trial and error that most people lose faith and the will to continue.

But if you refuse to quit, then eventually you’ll make it to the hallowed harvesting season, which is where the fun really begins.

3. Harvesting Your Money Tree

Congratulations. You’ve busted your hump to get here. Enjoy that wave of sweet relief as you realize you’re no longer teetering on the edge of oblivion…

At this point, you’ll have a thriving Money Tree bearing fruit and you’ll be tempted to think you’ve finally arrived.

You haven’t.

In fact, you’ve just entered one of the most perilous periods on your journey to building true wealth.

Here are two of the major mistakes people make when they get their first taste of success:

First, they stop doing what made them successful.

As the Marvin Hagler famously said,

“It’s tough to get out of bed to do roadwork at 5am when you’re sleeping in silk pajamas.”

You will likely experience the same thing. Success breeds a certain type of complacency.

That fire in your gut, the one motivating you to get on this path and to persevere in the first place, well… if you’re not careful, it simply doesn’t burn as hot anymore.

The second mistake people make upon seeing those first fruits blossom is they harvest too much, too soon.

Humans are stupid.

When times are good, we can’t imagine a world where things could ever be any different.

So we see those juicy fruits hanging from our Money Tree and we start feasting.

To be a successful entrepreneur requires a certain amount of hubris to believe you can beat the odds.

This semi-delusional belief has served you well up until now.But once you get your first taste of success, your mindset must shift from pure growth to preservation and sustainability.

And the only way that you can fortify yourself against the vicissitudes of fate is to diversify and grow.

Okay, let’s say that in a way less fancy way:

To protect yourself from shit going wrong, you can’t rely on a single Money Tree.

Upon reaching the harvest season, it’s time you prepare to scale.

Because what’s better than one Money Tree? An entire forest of Money Trees.

The prudent gardener of wealth doesn’t pluck all the fruit and throw a feast.

No, they take just enough to sustain themselves and with the remainder they…

Return to step one: Plant a Money Tree.

Repeat this cycle a couple more times and you’ll soon have more fruit than you could ever possibly consume.

Remember, the ability to delay gratification is a required skill if you want to build true wealth.

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The Hard Truth

This is not a linear process.

You can’t just check the box for step one and then move on…

No, to be successful you have to master the art of prioritization.

See, everyday you must decide where your energies are best spent.

Should you cold call sellers or design a new product in an attempt to plant another seed?

Or maybe you need to focus on growing your current tree by leasing a vacant unit or fulfilling a customer order.

Then again, you could spend a couple hours thinking strategically about capital allocation and your growth plans for the coming year.

Put simply, you’ll need to constantly reassess which money making activities require your focus at any given moment.

The ability to accurately discern where your time is best spent in your business (and life) is truly a super-power.

If that’s a super-power you crave, well then you’re in the right place. I’m working on something wicked-awesome for ya’ll right now: The Decision Journal.

We’re designing The Decision Journal to help you get better at making hard decisions.

I’ve been keeping a personal Decision Journal for years and it’s helped me tremendously. I’m looking forward to bringing this to you in the next 6 months, so stay tuned.

Want to be notified when that drops?

Just click on this link and let me know.

But until then…

Stay Hyperfocused, My Friends.

Anthony

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Whenever you’re ready, here are some ways I can help you:

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→ The Hyperfocused Masterclass: the exact system I used to overcome ADHD, write 12 books, build 4 businesses, and acquire $70M of real estate.

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→ Invictus Capital: my real estate private equity firm.
→ Multifamily Investing Made Simple: Top Apple Podcast.
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4. The Amplified Impact Podcast: A daily podcast for those in relentless pursuit of Less, but Better: