Secrets of Compounding: How to Leverage Time to Grow Your Business

E3: Time can either be your friend or an enemy depending on how you utilize it. So how can you tell if time is working for you or against you?

Let's discuss the power of compounding and how important it is to have time on your side.

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TOPICS:
Four Types of Leverage (2:21)
Labor, Capital, Code, Media. Labor and Capital requires permission. Code and Media are permission less.

Time as Amplifier of Leverage (3:33)
Time is the amplifier of the leverage you are currently deploying.

How to Start a Company Using Leverage (4:15)
You raise funding, which is essentially other people's money. That's capital leverage. Now, you go out and recruit the smartest people to help build a team around you. That's labor leverage. Now, your team writes code to solve a particular problem for your customers. This enables your company to serve many customers all at once. Finally, you document your journey and share it with your target audience in a blog, YouTube channel, a podcast, wherever your potential audience may hang out. This is Media leverage.

How to Start a Company Without Leverage (5:03)
You have an idea for a business. You bootstrap it using your own money. You don't hire anybody else. You don't share what you're doing and keep everything to yourself. As time passes, what's going to happen?

Using Leverage as a Bootstrapped Company (5:35)
You can hire offshore virtual assistants for your back office operations. You can get a loan from the SBA to help you expand your business. You can look for different types of software to help you streamline your operations. You can start documenting your business journey and sharing it with your audience.

Time as Your Enemy (6:21)
It's possible to have time work against you. Time is the amplifier of leverage. If you have a negative flywheel, you need to identify it immediately and take steps to get out of it.

Power of Compounding (7:45)
If you were given a single dollar bill today, and that dollar doubled each month, you would have a little over $4,000 after the 1st year. After your 2nd year, you would have close to $17 million dollars.

Warren Buffett's Net Worth (8:34)
99.7% of Buffett's wealth came after his 52nd birthday. 

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First Class Founders is a show for indie hackers, bootstrapped founders, CEOs, solopreneurs, content creators, startup entrepreneurs, and SaaS startups covering topics like build in public, audience growth, product marketing, scaling up, side hustles, holding company, etc.

Past guests include Arvid Kahl, Tyler Denk, Noah Kagan, Clint Murphy, Jay Abraham, Andrew Gazdecki, Matt McGarry, Nick Huber, Khe Hy, and more.

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