Your Move: The Underdog’s Guide to Building Your Business

by Ramit Sethi

People value what they pay for. If

There’s a 1,000-fold difference between a free reader and a paying customer.

If you’re just starting out, an extra $1,000 a month can dramatically improve your quality of life. Fortunately, there’s a TON of ways to earn an extra $1,000. In fact, when you break down the numbers, it’s not very hard: $1,000/month = $250/week $250/week = $50/day, 5 days a week So you just need to earn an extra $50, Monday through Friday. That’s achievable. And the beauty of it? Now here’s your third lesson: It’s not magic. It’s math.

So, how can you earn that extra $1,000 this month? You can freelance. Find jobs on Craigslist. You can cut back on spending money on things you don’t want or use. You can flip items on eBay. You can find a better job, or negotiate a higher salary at your current one. I’ve taught tens of thousands of students how to do all of these (and included resources on how to get started at growthlab.com/your-move).

But when you start your own business, there’s no limit to how much you can earn.

It’s Not Magic, It’s Math

Again, it’s not magic, it’s just math. Here’s what $1,000,000 in revenue looks like: $50 product x 20,000 sales $100 product x 10,000 sales $200 product x 5,000 sales $500 product x 2,000 sales $1,000 product x 1,000 sales

Part 1: Mastering the Fundamentals

why I want to remind you that the very best in the world are relentless at mastering the fundamentals.

Kobe Bryant spent hours working on dribbling drills every day.

Dave Chappelle and Jerry Seinfeld practice comedy sets in small come...

Here’s why: First, you want to stay sharp. Second, you can always learn something from everyone, no matter what they do. And third, the bigger your business gets, the more impactful a single insight can be.

Now, take that same insight and apply it to my business when it was generating $1,000,000/year, that same 2% was worth $20,000 in one year. And $100,000 over 5 years.

The bigger your business gets, the more the fundamentals matter.

1. The 3 Surprising Rules of Money: Break Them at Your Own Risk

We asked them, “What’s your biggest fear about weight loss?” and one student admitted: “I’m terrified that if I lose weight, I’ll have saggy skin and actually look worse.”

They weren’t just afraid of failing. They were actually afraid of succeeding.

How can you achieve your goal if you’re terrified of what you’ll look like when you’re successful?

If you don’t have your psychology right, it’s 100x harder to succeed. It’s true about fitness. And it’s also true about money.

Understanding how money works — what I call the Surprising Rules of Money — is absolutely imperative… and something few people will ever tell you.

was petrified of selling my first online product

“You know what? My stuff is really good, and I’m going to charge for that and if you are not ready to pay, or you can’t afford it, that’s OK.”

Money is an emotional topic. It makes us feel guilty. It makes us feel alone. Who else can we talk to about it?

These invisible scripts we have in our head act like an anchor tied around our neck, stopping us from making it to the next level because we’re always terrified of what will people think

So here are the 3 Surprising Rules of Money. Don’t worry if they don’t fully sink in right now — it took me years to really “get it.” But when you understand and internalize these, you’ll see it’s the difference between a business struggling to earn its first dollar… and a business that allows you to escape the 9-5 and live the life you want.

Rule #1: People Pay Me for the Va...

Here’s the most fascinating thing behind what they’re really saying. Beneath the words is the belief: “If you make a dollar, I lose a dollar.” That’s a scarcity mindset. People with a scarcity mindset believe there’s a limited pie, and if you take one piece, that’s one piece less for everyone else. The truth is the pie can infinitely expand.

There are people out there who, if you can connect with them emotionally, if you can show them you’ve helped other people like them, if you can promise them the results they want, AND deliver, they’ll pay you $1, $5, $500, $5,000… and they will be happy to do it.

Think of the things that you might be able to help other people with. Maybe you’re a health coach. Maybe you can help people organize their homes or their lives. Maybe you can help them dress better, or you can help them grow their business.

When you can connect and really solve their problems, the price is a mere triviality.

For now, just remember that if you create value for others, they’ll happily pay for it.

Rule #2: The More Money I Make, the More Value I Can Create

Remember, making money is a byproduct of adding massive value to the world (Rule #1). But, how do you think I wrote a New York Times Bestseller based off a blog, built high quality courses, and created a world-class event?

By taking the money I make and reinvesting it back into making my business even better.

In other words, I take the money I make, and I reinvest it back into creating something even better.

Remember: The more money you make, the more value you can create.

This is SO important. For a lot of us, when we first start making money, we start off making $100, maybe $1000. That all soon starts to add up.

You can share what you do for free, but if you want people to truly take action, then you can offer a higher level offer. That’s what I do: 98% of my stuff is free, and for those 2% who are ready, they go to the next level. That 2% funds the entire rest of my business!

Rule #3: Money Is a Marker That I’m Doing the Right Thing

Most entrepreneurs won’t talk about revenue, because it’s scary and it’s intimidating. Which is precisely why we’re talking about this now, in the beginning of the book. It’s critical you nip this in the bud, before it becomes a “thing.”

The best entrepreneurs know we have an OBLIGATION to ask for the sale, because that’s the best way to help our customers. The best entrepreneurs know we have to avoid reporting the “fake” numbers and focus on the number that matters — sales.

I’d rather focus on the few real numbers that matter, like sales, revenue, profit, etc., than all these other proxies for success. Why? Why is money a marker that I’m doing the right thing?

But it takes a lot of trust for someone to actually pull out their wallet and pay you money, because they believe you can help them solve their problems.

Do that, and it means you’ve created something good enough that people say, “Yes, I need this!” When they pull out that credit card, you know they really mean it. They’re not just saying they need it because they’re worried about hurting your feelings.

It’s because you know money is the marker you’re doing the right thing.

Rule #1: People pay me for the value I create. In other words, if I create value, people will be more than happy to pay me for it. Rule #2. The more I make, the more value I can create. I can invest back into the business, by building systems, creating technology, and hiring new people. Rule #3. Money is a marker that I’m doing the right thing. We’re going to avoid fake proxies of success, like how many people like my Facebook page. Instead, we’ll focus on the ultimate sign that you’ve created something the world wants: Sales.

2. Finding a Profitable Idea: The Simple Process We’ve Used With 20 Products

But the point is, we’re all good at something…

And with some careful sleuthing into our X-Men abilities, we can take those skills and turn them into a business.

What Do You Already Pay...