Leverage Stack
Layer labour, media, capital, and technology to multiply each input
- Difficulty
- Advanced
- Time to result
- ~months to results
- Steps
- 6
- Confidence
- 99%
The guest defines leverage as the difference between what goes in and what comes out. Labour is the first layer: work can be done by you or by other people. Media adds reuse because one asset can be distributed or licensed repeatedly. Capital can produce returns without requiring the same hours each time, while technology can let many people use something built once, even though software still needs maintenance. The framework maps the current bottleneck, selects a fitting leverage type, and then stacks compatible layers. It also asks how much leverage each layer actually creates; merely having a podcast or software product does not equal the scale of a leading platform. The aim is more output per unit of continuing input, not growth at any cost.
Origin
Extracted from The Diary of a CEO
Core principles
- 01Leverage is the gap between input and output
- 02Different leverage types can reinforce one another
- 03Reusable assets can produce value more than once
- 04The amount of leverage matters as well as the type
- 05Faster progress can come from getting more from each step rather than moving faster
How to run it
- 1
Measure the input-output gap
List the time, labour, money, and assets required for the current output. Identify where more output demands proportionally more input.
Pro tip Use a recurring unit such as one customer, episode, licence, or transaction.
Watch out Do not call an activity leveraged without measuring the continuing work it requires.
- 2
Add labour leverage
Move suitable work from one person's hours to a repeatable process owned by capable people.
Pro tip Delegate an outcome with clear ownership rather than disconnected tasks.
Watch out More people can add coordination cost instead of leverage.
- 3
Create reusable media
Package knowledge, attention, or creative work so it can be distributed or licensed more than once.
Pro tip Start with material already proven useful in direct delivery.
Watch out Distribution is required; a reusable asset with no audience creates little leverage.
- 4
Deploy capital selectively
Use available capital where it can increase capacity or produce a return without a matching increase in personal time.
Pro tip Compare the expected gain with the cost and downside of the capital.
Watch out Borrowed or outside capital increases risk and does not guarantee scale.
- 5
Encode repeatable delivery
Use technology when the activity is stable enough to be delivered repeatedly to many users.
Pro tip Automate the proven repetition rather than speculative complexity.
Watch out Software is not built once forever; maintenance and improvement remain inputs.
- 6
Stack and remeasure
Combine the layers that reinforce one another, then measure whether output grew faster than continuing input.
Pro tip Remove a layer that creates complexity without measurable leverage.
In the wild
The guest describes moving from employee to self-employment, then employing others, and later licensing a digital product. Each transition reduced the dependence of revenue on one person's direct labour and introduced another reusable input.
→ The business moved through progressively more scalable operating structures.
Common mistakes
Confusing effort with leverage
More input with proportionally similar output is harder work, not greater leverage.
Collecting leverage labels
Using media or technology in name does not show that the business gains meaningful reuse or scale.
Scaling before proof
People, capital, and code can magnify a weak offer or unproven demand as easily as a strong one.
Is it for you?
Best for
It is best for operators redesigning a proven offer or activity that is constrained by personal time.
Not ideal for
It is not ideal for adding staff, capital, or software before demand and unit economics are understood.
From the transcript
“the difference between what you put in and what you get out”
“you want to Stack as many types of Leverage as you can”
From the episode
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