All of us learned basic math in school. Addition, subtraction, division, and multiplication. The times tables are one of those things we had to work long and hard on, memorizing basic facts so that the work of complex mathematics that was coming would be easier for us. It was a long term goal that was hard to see at the time, but one that served us very well. The same principle applies when it comes to the profitability of your business. The things that seem to be pressing from an immediate perspective are not always the things that bring the greatest long term result. On this episode Ryan Daniel Moran share his lessons-learned about multipliers, the things you can invest in that will compound your results. You’re going to be challenged and given some very practical takeaways on this one.
Do you know why many businesses plateau after an initial success?
It’s because something in the owner’s understanding of what brings the greatest results shifts. They begin with a clear understanding that certain actions will compound over time to bring even greater results, but once success comes they back off, taking it easy, forgetting that to get the same kind of gains they’ve experienced so far they will have to take the same kind of bold and long-term oriented actions that brought it in the first place. Ryan is convinced that the longer you can push the return on investment into the future, the greater that return will be. You can hear how he’s come to that conclusion as well as get some concrete examples of how it works in real business scenarios on this episode.
Do you understand what a business multiplier is?
Thinking of basic math, your business needs to be adding to the bottom line all the time. You can do that through simple addition (one client or one sale at a time) or you can do that through multiplication (putting your capital and other resources to work in ways that compound the result). On this episode Ryan teaches why a business needs to be oriented toward compounding results by applying your energy and resources to tasks that are multipliers. When you get this and are able to clearly determine that your resources are multiplier focused, you’ll begin to see exponential growth in your business. You’ll want to hear this one.
Delayed gratification is a sign of a good multiplier.
We know what it’s like to struggle between the payoff of immediate gratification and the promise of a delayed gratification. Should I eat the chocolate cake now and enjoy the taste and texture immediately, or should I abstain for the sake health and fitness that will serve me well for years to come? It’s not an easy choice in the moment – unless you’ve already made the commitment to the long term goal. On this episode Ryan Daniel Moran shows us how delayed gratification in business tends to serve as a barometer to determining whether an investment of resources or energy is serving to multiply our efforts or not. You can learn a ton from this episode, so be sure you take the time to listen.
The Eisenhower Matrix can help you determine what is a good multiplier.
General Dwight Eisenhower is well known for using a time management technique that classifies activities into 4 quadrants. Imagine a box divided into 4 equal parts. Moving clockwise around the box starting with the top left quadrant, the quadrants are labeled: 1 – Important and Urgent | 2 – Important but not Urgent | 3 – Not Important and Not Urgent | 4 – Not Important but Urgent. You can see an example below. Using this graph you can identify the tasks and projects that are truly important – and a key point to notice is that the ones that fall into top right quadrant tend to be the ones that are multipliers. Find out how Ryan uses the Eisenhower Matrix for his personal decisions on this episode.
Outline Of This Great Episode
- [0:06] Ryan’s introduction to this episode about multipliers.
- [1:10] What is a multiplier and why you should move toward them?
- [4:00] Example of investing in a multiplier when it comes to hiring .
- [5:41] Freeing up capital by using other people’s money as a multiplier.
- [8:55] Why your own capital should only go to new products/services.
- [9:48] Make it up, Make it real, Make it recur (from Dan Sullivan).
- [12:38] A great way to determine what is a multiplier and what is not.
- [16:30] Relationships as a type of multiplier.
- [17:17] How to determine if something will be a long term multiplier.
- [19:56] The reason businesses plateau.
- [20:00] Why delayed gratification can work for you.
Action Steps From This Episode
FOR GREATER SUCCESS: Understand what is meant by investing in multipliers; things that increase your return exponentially. Get it in your head and heart. Commit yourself to pursuing them over everything else.
FOR GETTING STARTED: Examine your work week and your list of top tasks. If you are spending time on things that are short term gains, reevaluate your priorities. The longer term you can push your results, the bigger those results will tend to be.
Resources Mentioned On This Episode
Connect With Freedom Fast Lane
On Google Plus