I don’t talk much about entrepreneurship here, but I think this idea is really valuable. Many of you know I started a company coming out of college and sold it for about $5M at the age of 34. Now I’m working on building PFC and after making my first post in January of last year I’ve grown this account to over 87,000 followers. The idea in this post is something I think about daily and I believe has played a big part in that success.
Basically, every task you do throughout the day can be categorized in one of these four quadrants. For example, let’s say you are running a cupcake business. Here’s a few tasks and how they’d be categorized:
• Quadrant I: Buy supplies, bake cupcakes, help customers, clean kitchen, do taxes
• Quadrant II: Build website, revamp branding, implement online ordering, research franchising
• Quadrant III: Meet with vendors, respond to emails, deal with neighbors
• Quadrant IV: Switch credit cards, rearrange furniture
On first glance, it might seem like all of that stuff looks like “business stuff”. But read through it again, and think about which of the four quadrants could take your cupcake business from a $50,000/year in revenue to $5 million/year in revenue.
I hope you decided quadrant II. Quadrant I is important. But doing JUST quadrant I will keep your business exactly where it is. All the stuff that will move your business or your life meaningfully forward always lives in quadrant II. And here’s the crazy thing about quadrant II. No one will ask you to do it. No one will ask for revamped branding, or a new website or suggest franchising. You know it’s important long term, but there’s customers who want cupcakes NOW, so it’s easy to get stuck in quadrant I. So in order to make big forward progress, you have to intentionally block time to live in quadrant II as much as possible. If not, you’ll be stuck in the “urgency trap” of quadrants I and III and never meaningfully move forward.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.