Three Leverage Tools

A framework for building highly profitable businesses with minimal employees by leveraging code, capital, or media instead of human labor.

Core Concept

• Successful 1-2 person businesses use leverage tools instead of employees to scale
• Must be exceptional at either distribution or product development
• Need deep expertise in at least one key skill area
• Can reach massive scale through proper leverage

Three Key Leverage Tools

1. Code/Software

• Build once, runs automatically
• Examples:
  • Gaming apps (Stardew Valley - $150M revenue, one developer)
  • Companion apps (Wargraphs - $54M exit, one person)
  • Browser tools (Photopea - recreated Photoshop in browser, one developer)

2. Media/Content

• Create content that scales without additional effort
• Examples:
  • Newsletters (Kevin Van Trump - $20M/year agricultural newsletter)
  • Podcasts (Joe Rogan - $100M+ revenue with 2-3 person team)
  • Educational content (Miss Excel - teaches Excel through TikTok)

3. Capital

• Use money instead of labor to scale
• Examples:
  • Marketplaces
  • Data aggregators (Built With - $14-15M revenue tracking website technologies)
  • Investment-focused businesses

Common Industries That Work Well

• Social media thought leadership
• Ecommerce
• Agencies
• Games
• Apps/plugins
• Data aggregation platforms

Key Success Factors

1. Distribution Excellence

• Must be exceptional at reaching audience
• Leverage existing platforms
• Build authority in specific niche

2. Product Excellence

• Deep technical expertise
• Solve specific problems extremely well
• Create automated/scalable solutions

3. Timing

• Being early to new platforms/opportunities
• Catching market waves at right time
• Identifying emerging niches

Challenges

• Can be very lonely working solo
• Requires intense self-motivation
• Hard to push yourself without team
• Recommendation: Partner with 1 other person for ideal balance
• Two people provides autonomy while maintaining productivity and enjoyment