The Sweaty Startup

1. Forget Revolutionary Ideas; Boring Businesses Build Real Wealth

Most of the wealthy people in your town who are eating at nice restaurants and have memberships at fancy country clubs didn’t disrupt industries or raise venture capital. They started small, boring businesses.

Ignore the hype. The media glorifies tech billionaires and revolutionary ideas, but the most common path to wealth is through simple, proven business models. These "sweaty startups" like lawn care, HVAC, construction, or local services aren't glamorous, but they meet real needs and generate consistent profit. They don't require venture capital or changing the world; they just need to be run a little better than the competition.

Proven models work. Successful entrepreneurs in these fields didn't invent something new. They took existing business models and executed them consistently over five, ten, or twenty years. They started small, traded time for money doing actual work, and slowly grew by hiring others, managing risk, and improving their business skills.

Real-world examples. The author shares stories of people who became millionaires by buying car dealerships, expanding body shops, transforming delivery routes, or building HVAC companies. These are not famous innovators, but average people doing common things uncommonly well. Their success came from sticking with what works and building great businesses over time.

2. True Wealth is Freedom, Built on Leverage (Network, Skills, Capital)

Freedom to do whatever you want to do, whenever you want to do it.

Wealth equals freedom. True wealth isn't just about money; it's about having the freedom to control your time and life. High-paying jobs can trap you, offering money but demanding your time and control, as seen in the lawyer friend's story. Entrepreneurship, done right, offers the potential for high return-on-time, where work done now pays dividends long into the future.

Leverage is key. This freedom is built on leverage, which maximizes your advantage. It comes from three sources:

• Network: Who knows you and can help you (employees, partners, investors, customers).
• Skills: Your ability to make things happen (sales, leadership, hiring, decision-making).
• Capital: Cash flow that supports your life and allows you to take risks and invest.

Build your leverage. You start with little leverage, trading time for money. By consistently building your network, honing your skills through practice, and accumulating capital, you gradually increase your leverage. This allows you to work less, earn more, and eventually reach a point where you can operate from a position of strength, choosing who you work with ("No-Asshole Rule").

3. Business is a Race; Act Fast and Prioritize Execution Over Planning

Execution is a thousand times more important than your idea.

Urgency is essential. Business is a race against time and competitors. You have a limited window to learn, improve, and determine if your idea is viable. Moving fast, even uncomfortably fast, is crucial to gain experience and momentum. The worst outcome is wasting years on a slow-moving, unproven concept.

Bias towards action. Successful entrepreneurs don't get stuck in "analysis paralysis." They aim, fire, aim, fire, fire, fire, and ask questions later. While preparation is needed for high-risk decisions, low-risk ventures should be pursued immediately. The goal is to make money quickly to prove the concept and fund further growth.

Start small, get paid. Your first business should be profitable within six months. Focus on getting customers to pay you right away, even if it's just $500 this weekend. If people won't pay, your idea isn't solving a real problem. Get your hands dirty, trade time for money initially, and learn by doing.

4. Not All Businesses Are Equal; Choose Proven Models with Weak Competition

Unsophisticated and/or weak competition plus high profit margin plus low failure rate equals good business.

Avoid "fun" businesses. Businesses that seem fun or have high status (restaurants, apps, passion projects) often attract too many entrepreneurs, leading to fierce competition and low margins. The market doesn't care about your passion; it cares about value and profitability. Look for opportunities where the competition is less sophisticated and less passionate.

Red ocean advantage. Contrary to popular belief, starting in a "red ocean" (existing market with competition) is often better than a "blue ocean" (new, unproven market). In a red ocean, you can study existing businesses, identify weaknesses, and find ways to compete effectively. Many established companies are poorly run, offering ample opportunity for better operators.

Analyze the market. Evaluate potential businesses based on:

• Competition: How sophisticated and numerous are they?
• Profitability: What are the typical margins?
• Success Rate: What percentage of businesses in this field succeed?
  Aim for weak competition, high margins, and a low failure rate. Use exercises like calling competitors to assess the market directly.

5. Become an Expert Operator, Not Just a Technician in Your Field

Every single business, when operated at a high level, is fundamentally the same.

Operators win. While technical skill is needed initially, successful business owners become expert operators. They don't spend their time doing the core service (e.g., the restaurant owner isn't always cooking); they focus on running the company. This involves sales, hiring, management, delegation, and problem-solving.

Embrace discomfort. Becoming a great operator requires doing hard, uncomfortable things repeatedly. Stress, difficult conversations, and uncertainty are part of the process. The more discomfort you face and overcome, the better you become at making calm, effective decisions under pressure.

Build a Franken Business. Don't try to reinvent the wheel. Study successful competitors and companies in other industries. Copy and adapt the best strategies and processes from each to build your own "franken business." Innovation comes later, often by combining existing successful elements in new ways, not by starting from scratch.

6. Sales is the Foundation; Learn to Persuade and Add Value

Life as an entrepreneur is sales.

Everything is sales. As an entrepreneur, you are constantly selling: employees on your vision, partners on collaboration, investors on your deals, vendors on working with you, and customers on your service. Success requires the cooperation of others, and you must persuade them that working with you benefits them.

It's not about you. People are inherently selfish; they care about their own problems and desires. Effective sales is about understanding their needs and showing how you can make their life better. It's not about manipulation or pushiness, but about building trust and creating win-win scenarios.

Develop sales habits. Improve your sales ability by:

• Accepting not everyone is a fit; vet prospects.
• Getting comfortable with rejection; it's a numbers game.
• Proving expertise by understanding their problems and risks.
• Managing expectations honestly.
• Adding value upfront without expectation.
• Using scarcity (respectfully) to show demand.
• Asking questions to let the prospect sell themselves.

7. Time is Your Most Valuable Asset; Invest it Wisely in High-Leverage Activities

Time is your most valuable asset and your most valuable resource.

Time is finite. Unlike money or opportunities, time is the one resource everyone has equally, and you can't get it back. How you invest your twenty-four hours determines your success. Develop an extreme scarcity mindset around time and be deliberate about how you spend it.

Work on the right things. Many entrepreneurs get stuck owning a job because they focus on urgent but unimportant tasks (Quadrant 3) or time-wasting activities (Quadrant 4). True business growth comes from focusing on important but not urgent activities (Quadrant 2).

Focus on Quadrant 2. High-leverage activities that drive 80% of your results (80/20 rule) fall into this quadrant:

• Recruiting, Hiring, Training
• Sales and Business Development
• Planning and Strategy
• Networking and Relationship Building
• Implementing New Technology
  Prioritize these uncomfortable but crucial tasks to build long-term value and avoid becoming the bottleneck.

8. Embrace Discomfort and Get Your Shit Together; Lose the Victim Mentality

You are not a victim.

Discomfort builds strength. Entrepreneurship is hard and stressful. You will face fear, anxiety, and difficult situations. These challenges are normal and necessary for growth. Learning to push through discomfort and thrive under pressure builds resilience and character.

Take ownership. Avoid the victim mentality that blames external factors (economy, politicians, unfairness) for your situation. Your current life is a direct result of your past decisions and actions. Accepting this responsibility empowers you to change your future.

Practice fear setting. To manage anxiety, write down the absolute worst-case scenario for a decision or situation. Then, analyze the actual consequences. Often, the worst outcome is manageable and not as terrifying as your mind makes it. This exercise helps put risks in perspective and builds courage.

9. People are the Ultimate Leverage; Recruit and Retain High Performers

When it comes to entrepreneurship, people are the ultimate form of leverage.

Always be recruiting (ABR). Great entrepreneurs are constantly looking for talented people, not just when they have an open position. They observe people in everyday life, assess their skills and mindset, and look for opportunities to persuade them to join their team.

Become worth knowing. Your network grows not just by who you know, but by who knows you and what value you bring. Focus on building skills, becoming an expert, and creating success in your own right. People are eager to connect with those who can potentially help them in return.

Identify winners. Look for people with specific attributes:

• Abundance mindset (celebrate others' success)
• Sense of urgency (make things happen quickly)
• Willingness to challenge you (think critically, speak up)
• Good decision-makers (show sound reasoning)
• Willingness to get hands dirty (do the work, not just delegate)
  Avoid deal-breakers like moral unsoundness, pessimism, manipulation, gossip, and a status quo mindset.

10. Hire for Competence and Alignment; Fire Low Performers Quickly

Fire your low performers or watch your high performers walk away.

Vet candidates thoroughly. Don't assume competence. Use interviews and assessments to understand how people think and make decisions. Ask questions that reveal their true motivations and goals.

Ensure alignment. Ask candidates about their ideal future role and what they want from a job. If your company cannot realistically provide what they want, it's not a good fit, and it's better to know upfront. Misaligned expectations lead to unhappiness and turnover.

Don't tolerate incompetence. Your company's performance will sink to the level of incompetence you accept. Keeping low performers burdens high performers, makes them miserable, and drives them away. Have the courage to make hard decisions, let poor performers go quickly, and provide a generous severance to maintain relationships where possible.

11. Start Hiring Low-Risk Talent to Buy Back Your Time

If you’re spending too much of your time doing work that you could pay somebody $20 an hour to do, it is time to hire.

Hire to grow. Don't wait until you're overwhelmed to hire. If you are the bottleneck or spending time on tasks someone else could do cheaper, it's time to delegate and hire. This frees you up for high-leverage activities that grow the business.

Low-risk first hires. The first hire is scary, but starting with an administrator or technician is often the lowest risk. These roles handle repeatable tasks or core service delivery, directly buying back your time. Use a wage spreadsheet to calculate how much you need to charge to make hiring profitable.

Consider overseas talent. Hiring administrative assistants or even higher-level roles overseas offers a significantly lower-risk way to hire. Talent in places like Latin America or the Philippines is often highly competent, hardworking, and costs 80% less than US-based employees, freeing up capital for growth.

12. Master Delegation: First Tasks, Then Decisions

Delegating decisions is the key to truly running a successful company that can grow beyond you.

Avoid the "monkey on the back". When employees bring you problems, don't immediately take them on yourself. This makes you the bottleneck and prevents employees from developing critical thinking skills. Teach them to solve problems themselves.

Ask "What would you do and why?". When an employee presents a problem, ask them how they would solve it and their reasoning. This forces them to think, reveals their decision-making ability, and trains them to handle issues independently.

Two levels of delegation.

• Level 1: Delegating Tasks: Assigning repeatable actions. This buys back your time but keeps you responsible for decisions. It's uncomfortable initially but necessary practice.
• Level 2: Delegating Decisions: Empowering employees to solve problems and make choices. This is harder but essential for scaling the business beyond your direct involvement and achieving true freedom.

Last updated: July 13, 2025