Thread by @fitwithrashid

Meet Sam Ovens the KING of online business.

He went from broke to $65 million by age 26 all from his laptop.

His secret?

He had 4 mental models that gave him an unfair advantage in business.

Here's how I apply them in my life and business ↓🧵

Sam Oven believes with the internet you have unlimited choices.

You can learn and build almost anything you just need time.

Winning becomes a game of choosing what has the highest leverage.

To win big you need to focus on making choices that have high leverage.

Not All actions are equal.

Some actions have a huge impact for high effort.
Some actions have a low impact for low effort.

Your goal is to pick actions that have a huge impact for low effort.

That's how you get an unfair advantage in business by just making better choices.

Sam Ovens uses 4 Mental Models that allow him to gain leverage over his time, energy, and effort:

1. Input and Output Symmetry
2. Half-Life of Decision
3. Second Order Consequences
4. Feedback Loops

1. Input and Output symmetry

In Business:

• Your input is Time, Energy, and Money

• Your output is Value Created for Customer, Profit, and Number of New Users

For each action you do, you want to weigh the output over the input.

ROI = Output/Input

Sam Ovens says you want to find actions that produce a lot of results for not much effort:

• Cutting Costs
• Upgrading SOPS
• Hiring Quality Talent

and minimize Low ROI Tasks:

• Cooking, Cleaning, Preparing Food
• Grocery Shopping
• Running Errands

Here's How I use Mental Model 1:

I write down all my choices and rate them by Impact and Easiness.

Impact 1 → 10 (1 low impact, 10 high impact)
Easy 1 → 10 ( 1 ton of effort, 10 takes no effort)

I add up Impact and Easy scores and prioritize the highest scores first.

2. Half-Life of Decision

If you make a decision how long do you have to wait to make it again?

Aka Decision Fatigue. If you have to make the same decision again you're burning mental energy.

Make 1 decision one time that'll solve it forever.

Sam Ovens says that deciding what to eat has the shortest half-life because you need to decide 3 times a day every day.

Each time you need to decide what to eat you're wasting mental energy and time.

When you hire a chef/a meal prep company you eliminate decision fatigue.

Extend this to other parts of business/life:

When you wear the same clothes every day
When you hire quality talent
When you set up automation

You free up the mental energy you were spending on trivial stuff to spend on higher-leverage tasks.

Here's How I Use Mental Model 2:

I have a home chef/maid that cooks all the meals for me or If I cook myself I always use Meal Prep Devices (Instant Pot & Air Fryer)

I have a VA that helps me with trivial work so I can focus on high-ROI tasks.

I use automation (Zapier).

+ More ways I use Mental Model 2:

I ask experts/coaches so I can avoid wasting mental energy and research trying to figure out how to do something.

I plan the day before so I can avoid deciding what to work on.
I just wake up and get to work.

3. Second Order Consequences

What are the long-term second and third consequences of making this decision?

For every decision, there are negative and positive consequences.

Sam Ovens says that when people buy things they don't think about the long-term consequence.

The real cost of the TV is wasting hours of your time.

The real cost of the car is not the price, it's the time you spend making yourself drive it to feel good about buying it.

Eating fast food/junk food might feel good now, but in the long term, you'll perform worse and be out of shape.

Getting 6 hours of sleep to work harder might work now, but in the long term, you'll experience sleep deprivation.

On the same side of the coin you want to look at choices with positive consequences:

Posting every day on social media
Working out consistently for years
Optimizing your office space
Hiring quality talent
Reduce Costs

Leads to massive results in the long run.

Here's How I Use Mental Model 3:

I get 8 hours of sleep each night (yes I do get less time but I'm able to do more with that time)

I eat a high protein whole foods diet so I can minimize sickness and maximize productivity

I streamline exercise and workout like a minimalist

+ More ways I use Mental Model 3:

I uninstall/block video games completely even if they're free because you pay with time and energy.

I cut off negativity completely, instant block or mute.

I try to surround myself with winners and learn from them.

I keep things simple

4. Feedback Loop

How can you make this compound over time?

Look for feedback loops that will lead to exponential results for example:

• Word of Mouth
• Long Term Behavioral Change
• Compound Interest

Sam Ovens says the best product wins it just takes time for the market to discover it.

Because once people know a word of mouth it will take over.

Focusing on marketing and sales will work in the short term, but building the best product

Sam Oven also says spending time setting guiding principles and culture leads to compound results.

Because if you can hire talent and have them all work in sync systematically compounds insanely fast.

How I Use Mental Model 4:

I use this cheat sheet ↓

I also use Sam Ovens 80/20 Power Grid

I created a Notion Template you can duplicate here:

https://t.co/pVALYz1mLNthepeakperformer.notion.site/80-20-Power-Gr…

That's a wrap!

If you found this helpful:

1. Retweet it so other entrepreneurs can find this.
2. Follow → @fitwithrashid for more content on how to automate your health & performance to earn more money.

https://twitter.com/1343958723950239744/status/1686014690281840640