here’s the formula:
o = outcome
t = time
r = resources = labour /capital / materials / etc.
e = effectiveness
o = e * r * t
outcome = effectiveness * resources * time
Your outcome is directly proportional to the resources you input, EFFECTIVENESS with which you do it, and time which passes.
The only constant is time. You can’t input more time. A year is a year, a week is a week, and an hour is a fucking hour
Likewise you can’t output time. You can’t create more time. Not for yourself anyway, as human.
But you can output everything else.
You can output everything else = resources, or effectiveness
How?
As you input the variables into the function and produce an outcome: the outcome comprises of RESOURCES GAIN and KNOWLEDGE GAIN
Knowledge, of course, eventually becomes EFFECTIVENESS
RESOURCES can be a product, or it can be capital, or it can even be more labour (e.g. hiring, as you’re scaling)
As you produced more resources and/or more effectiveness — you can now INPUT IT (back) into the function.
Thus your next outcome will be EVEN LARGER.
And then you’ll feed this greater outcome into the function again — and produce YET greater outcome
This, basically, is COMPOUNDING at work.
You know how compounding works in finance, don’t you?
You invest 1000 at 10%. You make 100 returns over the year. You reinvest that 100. Now input is 1100. You make 10% of that 1100 = 110. You reinvest that too. Now input is 1210…. etc.
The final outcome is that you double your position about every 7.2 years, rather then 10 years (10 x 10% = 100%).
And in 30 years your position is not mere 4 times what it was — but it is fucking 20 times that.
Now, imagine EVERYTHING works this way
Your EFFECTIVENESS improvements COMPOUND
Your material gains, all material gains, can compound
Your WISDOM and SKILLS compound.
(the more you learn the more easily you learn: the more your various learnings can be re-applied)
Even the TIME SAVED compounds — as the time saved is indeed effectiveness gain
(o = r * e * t
O is constant. T decreases. R is the same.
therefore E increases proportionally)
What’s the conclusion?
DO MORE
DO BETTER
DO FASTER
LEARN MORE
SCALE MORE
AUTOMATE MORE
INNOVATE MORE
(therefore experiment and experiment more. this is the only way to continuously innovate. Be naive, not sceptical)
DO BETTER EVERY SINGLE FUCKING DAY
and always,
ALWAYS ELEVATE