Your Next Five Moves: Complete Summary of Patrick Bet-David’s Blueprint for Business Strategy and Success

Patrick Bet-David’s “Your Next Five Moves” is a comprehensive guide that redefines strategic thinking in business, drawing parallels between entrepreneurship and the game of chess. The book emphasizes that true success comes not from reacting to immediate challenges, but from anticipating future outcomes and planning multiple steps ahead, much like a grandmaster in chess. It teaches readers how to cultivate a visionary mindset, develop unwavering self-awareness, master the art of processing complex issues, build high-performing teams, scale businesses for exponential growth, and execute powerful strategic plays.

This book is for anyone looking to transition from an amateur to a strategic thinker in business, whether they are aspiring entrepreneurs, seasoned CEOs, or individuals seeking to maximize their potential within an existing organization. It offers practical methodologies and real-world examples, moving beyond mere motivation to provide a proven framework for achieving success and building a lasting legacy. Readers will learn to make decisive choices, navigate chaos, leverage social media, and cultivate the relationships necessary for sustainable growth, all while understanding the inherent risks and rewards of the entrepreneurial journey.

Introduction: Before Your First Move

The introduction to “Your Next Five Moves” sets the stage for a strategic approach to business, inspired by the foresight of chess grandmasters and successful entrepreneurs like Magnus Carlsen and Elon Musk. The core premise is that effective strategy involves thinking multiple moves ahead, anticipating reactions from the market and competition, rather than just planning the first strike. Most people, labeled as “amateurs,” think only one or two moves ahead, leading to quick burnout in business.

The Chess Master’s Mindset for Business

Successful entrepreneurs share a common trait with chess masters: the ability to see many moves ahead. This foresight allows them to predict and control outcomes, making them unflappable in the heat of battle. Elon Musk is cited as an example, with his brother noting his ability to see “twelve moves ahead.” This long-term perspective is crucial for effective strategy in any competitive environment.

The Power of Planning Five Moves Ahead

The book focuses on thinking at least five moves ahead for two key reasons:

• Optimal Strategy and Action: Five moves represent the “sweet spot” for thoughtful strategy without leading to analysis paralysis. It’s enough to anticipate future outcomes and countermoves effectively.
• Five Master Moves for Success: The book itself is structured around five essential “moves” that readers need to master to achieve business success.

Author’s Journey and Credibility

Patrick Bet-David shares his personal journey from a hot-tempered, insecure salesman burdened with $49,000 in credit card debt to a strategic, self-aware CEO. His transformation stemmed from learning to think five moves ahead. He founded PHP Agency, a financial services marketing company, growing it from 66 agents in one office to over 15,000 agents in 120 offices across 49 states and Puerto Rico in just ten years. His agency is recognized for its diversity, millennial culture, and social media presence, challenging the “boring” reputation of the life insurance industry.

Addressing Common Entrepreneurial Questions

Bet-David addresses frequent questions from aspiring entrepreneurs and executives, such as whether to quit a job to start a business or how to raise money. He emphasizes that answers are rarely binary (yes/no) but rather a “series of moves deployed in the proper sequence.” He highlights the common mistake of trying to make move number five without first executing the preceding moves.

The Importance of Anticipation in Strategy

Shrewd strategists excel at anticipation. This skill is seen in military leaders, world-class poker players, and investors like Warren Buffett, who plays the “long game.” NBA legend Kobe Bryant is noted for his childhood ambition to be the greatest, demonstrating a long-term strategic mindset. These examples underscore that success comes from consistently thinking ahead.

What Readers Will Gain

The book promises to equip readers with everything needed to think like a master strategist, including how to:

• Differentiate unique value and communicate it effectively.
• Find investors and build high valuations.
• Attract and retain top talent with proper incentives.
• Maintain systems during growth and sanity during chaos.
• Process issues, make decisions, and solve problems effectively.
• Identify personal legacy and desired identity.
• Negotiate, sell, and strategize effectively.

Learning from Adversity and Wisdom

Bet-David’s background as an Iranian immigrant who faced war, lived in a refugee camp, spoke little English, and had a 1.8 GPA in high school, demonstrates that entrepreneurs can come from anywhere. He attributes his success to the challenges he experienced, which fueled his desire. His Valuetainment YouTube channel, started in 2013 with simple videos, grew to over 2 million subscribers by March 2020, attracting entrepreneurs and executives globally. This platform allowed him to interview brilliant minds like Ray Dalio, Billy Beane, Robert Greene, Kobe Bryant, and Patty McCord, as well as former mobsters, integrating their wisdom into his business philosophies.

The Five Master Moves Structure

The book is organized into five core moves, each building on the last:

1. Master Knowing Yourself: Focuses on self-awareness, identity, and personal vision.
2. Master the Ability to Reason: Teaches effective decision-making and problem-solving methodologies.
3. Master Building the Right Team: Covers attracting, retaining, and leading high-performing talent.
4. Master Strategy to Scale: Explores exponential growth, capital, and organizational systems.
5. Master Power Plays: Delves into competitive advantage, negotiation, and controlling narratives.

The goal is to create “Aha!” moments and train the brain for a new way of processing information, leading to confidence, problem-solving prowess, and personal/business growth.

Move 1: Master Knowing Yourself

This section emphasizes that self-awareness is the foundational step for any strategic decision-making in business. It challenges the reader to deeply understand their motivations, aspirations, and limitations.

Chapter 1: Who Do You Want to Be?

This chapter stresses the fundamental question that precedes all business decisions: “Who do you want to be?” The answer dictates one’s urgency, commitment, and strategic path. It emphasizes that understanding one’s deepest desires is paramount for success and resilience.

Unveiling Deepest Desires Through Self-Inquiry

The author argues that nothing matters unless you understand what makes you tick. Consultants and influencers often err by assuming everyone desires the same outcome. The initial step for any leader is to gather information about a person’s desired life and identity before offering recommendations. This process of self-inquiry is continuous and aims to clarify one’s personal “story.”

Leveraging Pain as Fuel for Success

The author recounts his experience being denied a promotion at Bally Total Fitness despite outperforming a veteran employee. This “humiliation” became a defining moment that fueled his resolve. He emphasizes that moments of feeling powerless, angry, or sad are crucial clues to one’s deepest drive. The ability to channel fury into fuel is a powerful motivator, as exemplified by Elon Musk’s father’s disdain, Barbara Corcoran’s ex-partner’s dismissal, and Michael Jordan’s high school rejection.

The Power of “Never Again!” and Nonnegotiables

His personal realization after his father’s thirteenth heart attack and a humiliating encounter at a public hospital led him to declare “never again” to feeling controlled by others. This marked the “death” of the old Patrick and the birth of a new, disciplined self. This experience solidified his “nonnegotiables,” such as working with people who keep commitments and a clear merit-based path to advancement. Readers are encouraged to identify their own nonnegotiables.

Identifying Your Ideal Role

The chapter guides readers to discover their best-suited professional path: founder, CEO, chief strategy officer, sales leader, intrapreneur, or solopreneur. It underscores that entrepreneurship is high risk and high reward, often demanding significant sacrifices like time away from family. The author highlights that more money provides more choices, potentially allowing work trips to become family vacations. The choice of route depends entirely on the answer to “Who do you want to be?”

Embodying Your Future Truth for Present Action

The concept of “future truth” is introduced: living in the present as if your desired future has already materialized. This is exemplified by IBM founder Thomas J. Watson’s philosophy that a company must “act like a great company long before it ever became one.” The author shares his own bold declarations about PHP Agency’s future, such as having Kevin Hart perform and interviewing George W. Bush and Kobe Bryant at conventions—all of which materialized years later. This conviction inspires others.

Drawing Inspiration from Heroes and Visuals

Readers are encouraged to use heroes and visuals as constant reminders of their aspirations. The author’s “Dead Mentors” painting features figures like Albert Einstein, John F. Kennedy, Marcus Aurelius, Abraham Lincoln, and Tupac Shakur. These mentors, despite their philosophical differences, serve as a source of counsel and a reminder to embody heroic traits. This practice helps challenge oneself to “embrace greatness” and “live up to the ideals of those you seek to emulate.”

Chapter 2: Study the Most Important Product: You

This chapter argues that self-study is the most crucial learning endeavor for long-term success and freedom, surpassing the value of studying others. It emphasizes that understanding yourself liberates you from self-judgment and turns perceived shortcomings into assets.

Aligning Career with Your True Self for Fulfillment

The chapter illustrates with the story of Shawn, a friend who quit multiple jobs before working for the author. Shawn realized his constant dissatisfaction stemmed from comparing himself to others and not being honest about his own desires. He discovered his ideal life involved a $150,000 annual income and ample family/leisure time, not being the richest. This clarity allowed him to stop envying others and find fulfillment. Ray Dalio’s quote, “Maturity is the ability to reject good alternatives in order to pursue even better ones,” underscores this point. Envy is presented as a crucial indicator: if it arises, it means you either want what others have but are afraid to work for it, or you are not being honest with yourself.

Self-Inquiry Leads to Acceptance and Power

The author links self-inquiry to self-acceptance, which in turn leads to freedom from self-judgment and empowerment for bold moves. He references David R. Hawkins’s “Power vs. Force,” highlighting that acceptance is a higher level of consciousness than courage. Through introspection, he accepted his own hypomanic tendencies as an advantage for building a company.

The Four Categories of Personal Drive

The book breaks down the different motivations that drive individuals, emphasizing that understanding your “why” is crucial for sustained effort:

• Advancement: Driven by climbing the ladder, new heights, and continuous progress.
• Madness: Motivated by unconventional factors, enemies, or targets.
• Individuality: Desires personal recognition, status, and unique lifestyle perks.
• Purpose: Aims to make a significant impact, be remembered, or contribute to something bigger than oneself.
  These motivations can shift over time, and identifying them helps explain why some individuals are constantly driven.

Graduating Through Four Levels of “Why”

Building on Maslow’s Hierarchy of Needs, Bet-David presents four evolving levels of “why” that motivate individuals:

• Level 1: Survival: Focus on meeting basic needs and paying bills.
• Level 2: Status: Desire for recognition, material possessions, and keeping up with others.
• Level 3: Freedom: Pursuit of financial independence, flexibility, and autonomy.
• Level 4: Purpose: Driven by legacy, impact, helping others, and self-actualization.
  Very few people reach the purpose level, often due to fear, distractions, or a lack of self-inquiry.

The Personal Identity Audit: A Catalyst for Breakthroughs

The author considers the Personal Identity Audit (provided in Appendix A) the most important tool in the book. This series of 83 probing questions (condensed for the book) is designed to facilitate deep self-discovery, similar to how he used it to overcome personal struggles. The audit is meant to be an emotional and intense exercise to reveal flaws, fears, and limiting beliefs, ultimately leading to acceptance and clarity. Over 200,000 people from 130 countries have used it, finding it transformational.

Actively Seeking and Addressing Blind Spots

Despite self-study, blind spots are inevitable. The first step to recognizing them is the desire to improve. The author recalls his early arrogance when pitching large insurance carriers, proclaiming “half a million licensed insurance agents” within weeks of founding his company. His blind spot was failing to understand his audience’s defensive posture after the 2008 financial crash. An executive, Cathy Larson (Allianz), called him out, leading him to adapt his approach while maintaining his “future truth.”

Chapter 3: Your Path to Creating Wealth: Intrapreneur or Entrepreneur?

This chapter guides readers in selecting a career path that aligns with their vision and strengths, emphasizing the distinction between being an entrepreneur and an intrapreneur. It argues for “game selection”: choosing a market where one has an inherent advantage.

The Myth of Climbing Other People’s Ladders

The author challenges the conventional wisdom of climbing the “school ladder” and then the “corporate ladder” for security. Citing Robert Kiyosaki’s “Rich Dad, Poor Dad,” he asserts that true wealth and success are rarely found at the top of someone else’s ladder. Taking responsibility for one’s own success is key, whether as an entrepreneur, by working on commission, or as an intrapreneur. He stresses that entrepreneurship cannot be solely about money, as the pain involved is too great to sustain.

Understanding Intrapreneurship: The “$59.1 Billion” Opportunity

An intrapreneur operates within an existing company, creating new business units, leading initiatives, or earning incentives/equity for driving growth. Steve Ballmer, with a net worth of $59.1 billion as of March 2020, is cited as the world’s richest intrapreneur, having joined Microsoft as employee number thirty and later becoming CEO. Steve Jobs also became an intrapreneur upon his return to Apple, negotiating a 5.5 million share deal.

Five Qualities of a Successful Intrapreneur

Intrapreneurs are highlighted as individuals who think, work, innovate, possess urgency, and protect the brand like true entrepreneurs, but within a larger organizational structure. They differ from entrepreneurs in that they are typically deferential to authority, working within the system to improve it.

How Companies Foster Intrapreneurship

Companies that attract intrapreneurs, like Google, often implement policies such as “20 percent time” (which led to products like Google News, Gmail, and AdSense) to encourage creativity and innovation. The author recounts his own experience at an insurance company where executive Katie shut down his innovative ideas, forcing him to leave and become an entrepreneur. This illustrates that companies driven by ego and bureaucracy (as described in Lawrence M. Miller’s “Barbarians to Bureaucrats”) often stifle intrapreneurship.

Traits of Companies That Attract Intrapreneurs

• Comfortable taking calculated risks and encouraging creativity.
• Compensation plans incentivize innovation and outstanding performers.
• Executives play offense (improve) instead of just defense (cover asses).
• Executives elevate potential stars rather than holding them back.
• Executives actively seek ideas from all organizational layers.
• Executives actively look for young talent to stay vibrant.

Judging Entrepreneurs by Their Journey, Not Just the Destination

The author advises against judging entrepreneurs solely by their “final product” or current success. He stresses the unseen struggles, betrayals, and empty bank accounts that typically precede success. He shares a personal anecdote from Dubai in 2015 where a colleague couple, Sheena and Matt Sapaula, were fighting due to financial stress, only to become multi-million earners four years later. This highlights the importance of recognizing the “product in development” and being honest about the immense adversity involved.

Finding Your “Blue Ocean”

Inspired by W. Chan Kim and Renée Mauborgne’s “Blue Ocean Strategy,” the author emphasizes finding uncontested market spaces where you can win and make competition irrelevant. The example of Xerox’s (formerly Haloid Company) pivot to photocopy machines illustrates this. In his own industry, Bet-David recognized the aging, predominantly white male demographic of insurance agents in 2007. He identified a “blue ocean” by focusing on women and minorities (especially the growing Latino population), leveraging social media (an underutilized tool in the industry), and specializing in life insurance (avoiding the complex licenses of broader financial services). This strategic niche allowed his company to gain an edge against established “Goliaths.”

Move 2: Master the Ability to Reason

This section focuses on developing the critical skill of processing issues—the ability to make effective decisions by rigorously analyzing problems, anticipating hidden consequences, and planning a sequence of moves to solve them permanently.

Chapter 4: The Incredible Power of Processing Issues

This chapter introduces “processing issues” as the most critical skill for success in business and life. It emphasizes that problems are inevitable, and the ability to respond calmly and effectively determines outcomes. The author recounts his own struggle with panic attacks due to indecision, which led him to develop a systematic approach to problem-solving.

Defining Effective Issue Processing

Processing is the ability to make effective decisions based on available information, maximizing favorable odds. It involves rigorous mental analysis of choices, problems, or opportunities. Crucially, it means playing out strategies, seeing hidden consequences, and sequencing moves for permanent problem resolution. This skill transforms complex issues into manageable tasks.

The Core Trait: Taking Responsibility

Great processors take responsibility for their role in any problem, asking “How did I contribute to this?” In contrast, poor processors blame others or external events, using phrases like “All millennials are lazy” instead of “I’m doing a poor job managing millennials.” This shift from “they” to “I” is fundamental. Deep-level processors seek root causes for long-term solutions, unlike surface-level processors who look for quick fixes.

Three Approaches to Dealing with an Issue

The book outlines common (and often ineffective) ways people react to problems versus the effective approach:

• Blame: Externalizing the problem and finding someone else to fault.
• Escape: Distracting oneself with social media, news, or entertainment to avoid confronting the issue.
• Process by taking responsibility: Taking a deep breath, recognizing the moment as a differentiator, and actively working to find solutions.

How Great Leaders Own Their Role

Winners consistently use phrases like “My bad” or “This mistake is on me.” They don’t play the victim. Joe Rogan is presented as an example, taking responsibility for a bad coffee partnership by saying, “I f—in’ bought it. Here we have a problem that we’ve allowed to be created.” Instead of blaming, he directed his frustration into learning, reading “more about coffee over the last three weeks than I’ve ever wanted to read.” This proactive approach transforms adversity into a learning opportunity.

Managing Crises: Poise and Communication

Crises are inevitable and often beyond one’s control (e.g., the 2020 pandemic). A leader’s reaction directly impacts a crisis’s lifespan. Decisiveness, resiliency, and calm processing are critical. Going silent during a crisis is a common mistake; instead, frequent and quality communication magnifies in importance. Leaders must be the “calm in the storm.”

Leveraging Investment Time Return (ITR) for Decisions

Most issues involve time and money. Effective processing incorporates the Investment Time Return (ITR) formula.
ITR Formula: (Money Invested + Time Invested) = Expected Return
Before making a decision, one should:

• Create three proposals with different price tags.
• Calculate time frames for completion based on investment.
• Determine the return (e.g., revenue increase, risk reduction).
• Assess worst-case scenarios and acceptable losses.
  People tend to justify decisions with best-case numbers; instead, be realistic and factor in the cost of capital.

Learning from Mistakes for Permanent Solutions

The author shares his $100,000 mistake investing in an apparel company—an industry he knew nothing about—because he was cocky and greedy. His failure to do proper due diligence and invest outside his “sphere of competency” led to losses. His key takeaway: “If you’re going to lose, don’t lose the lesson.” Like Magnus Carlsen analyzing losses, entrepreneurs must reflect on mistakes to prevent recurrence.

The Eight Traits of a Great Processor

Great processors are characterized by:

1. Asking lots of questions for more data.
2. Not caring about being right or wrong, only the truth.
3. Not making excuses.
4. Liking to be challenged.
5. Being curious and constantly learning.
6. Preventing more problems than they solve by spotting “yellow flags.”
7. Making great negotiators by using logic.
8. Being interested in permanently solving problems, not just Band-Aids.

Embracing Issues as a Game

Expert processors welcome issues and treat them like a game. Instead of panicking when a top salesman threatens to leave, they see an opportunity to “develop a strategy to build the most loyal sales force in the business.” This mindset is key to entrepreneurial success. Regular leadership meetings for collaborative debate on problems foster this culture.

Chapter 5: How to Solve for X: A Methodology for Effective Decision Making

This chapter provides a structured methodology for making effective decisions, akin to solving for an unknown variable “X” in algebra. The author emphasizes that a systematic approach to thinking brings peace of mind and ends indecision, which caused his own panic attacks.

Identifying the “X”: The Unknown Variable

“Solve for X” means isolating the root problem. It’s not enough to say “my boss is the problem”; one must drill down to specific issues like “lack of autonomy” or “intellectual challenge.” The author illustrates this with a colleague named Charlie, who initially thought he “didn’t love this anymore” (financial services) but, through deep questioning, realized his dissatisfaction stemmed from weight gain and a sales slump, not the business itself. The problem is often hiding beneath surface emotions.

The “Solve for X” Methodology

The chapter outlines a step-by-step process for problem-solving:

• Eliminate non-issues: Discard assumptions, biased opinions, and emotional responses.
• Identify “burning platforms” (hot problems) and “golden gates” (bright opportunities).
• Ask “Why?” repeatedly until the deepest cause (the “deepest why”) is revealed. Example: Lost customer because product had too many unneeded features, leading to higher cost. Solution: Offer a leaner, cheaper version.
• Break down the problem into manageable components.
• Brainstorm solutions and their potential outcomes.
• Implement a solution and track results.

Processing When Your Business Is on the Line

The author recounts the lawsuit filed by Aegon (a $400 billion industry giant) against his new company, just five weeks after founding it. This was his biggest test, threatening to put him out of business. Instead of panicking, he focused on what he could control (plotting next moves, choosing attorneys, keeping sales focused) versus what he couldn’t (Aegon’s motives, lawsuit outcome). He chose to settle, cutting a huge check to move on, because his long-term goal was growth, not winning a legal battle. This decisive action, based on thorough processing, brought peace of mind.

Distinguishing Offense and Defense in Business

All business decisions fall into two categories, which helps simplify thinking:

• Offense: Opportunities for growth, expansion, marketing, and sales (e.g., launching new products, entering new markets).
• Defense: Solving problems, preventing losses, or protecting against competitors/market corrections (e.g., compliance, legal matters, financial hedging).
  Categorizing issues makes them less intimidating and more manageable.

Doing the Math: Art and Science in Decision Making

The author shares an example of Alice Terlecky (COO) and Ian Benedict (CFO) at his company, analyzing how to speed up policy application processing. Initial ITR showed a $1 million investment to save $50,000 annually, seeming not worth it (20-year payback). However, by extrapolating the company’s growth rate, the payback period dropped to less than five years (from 30,000 policies/year to 240,000/year in year 5). This demonstrates that “doing the math” is more art than science—requiring realistic assumptions and an understanding of future growth trajectories, not just current numbers.

Move 3: Master Building the Right Team

This section highlights that successful entrepreneurs cannot operate alone; building and retaining the right team is paramount. It explores strategies for recruiting, compensating, and leading people, emphasizing that a strong team is the foundation for scaling.

Chapter 6: The Myth of the Solopreneur: How to Build Your Team

This chapter dispels the idea of the solopreneur, emphasizing that no matter how brilliant, a solo game will always lose to a team. It underlines that effective collaboration with clients, employees, investors, and partners is essential for sustained success.

The “Benefits Program” for Potential Employees

Before a company is large enough to offer extensive benefits, the author emphasizes that people are recruited “to you,” not to your company. You must offer an attractive “benefits program” based on what you, as a leader, can give them. This includes a track record of enriching others’ lives through your example, contacts, coaching, knowledge, or tough love. He asks three key questions:

1. What benefits are you currently offering to others?
2. In what way do people improve by associating with you?
3. How many lives have you changed positively in the past year?
   Recruiting top talent is an ongoing process; CEOs must constantly “re-recruit” by demonstrating personal development and company growth.

The Indispensable Role of a Consigliere (Trusted Adviser)

Great entrepreneurs, even those like Warren Buffett (with Charlie Munger), Steve Jobs (with Steve Wozniak), and Bill Gates (with Paul Allen), rely on trusted advisers (consiglieres). These individuals provide wise counsel and challenge blind spots. Patty McCord (Netflix’s former Chief Talent Officer) is cited for her willingness to challenge CEO Reed Hastings, despite his authority to fire her. The key is to find someone with similar values but different temperaments (e.g., impatient leader with a calm, deliberate adviser).

Avoiding “Donnie Brasco” Hiring Mistakes

The author warns against making key hires without thorough due diligence, even when individuals come highly recommended. The story of FBI agent Joe Pistone (Donnie Brasco) infiltrating the Mafia for six years, gaining absolute trust before revealing himself, serves as a cautionary tale. Greed can blind leaders to risks. The chapter outlines five crucial questions to ask before any big hire, including checking references, conducting background checks, probing résumé gaps, and implementing a 90- to 120-day probationary period. Patty McCord’s advice that “97% of your employees will do the right thing” if you “tried really hard to not hire those people, and we let them go if it turned out we’d made a hiring mistake” reinforces this.

Granting Equity to Build a Committed Team

The United States’ success in attracting immigrants is attributed to the “chance to get equity and build wealth.” Similarly, companies can attract and retain top talent by “giving them a piece of it.” The author recounts how his former company refused his request for equity/profit sharing, leading him to leave despite lucrative renewals. He illustrates how a $250,000 bonus for Johnny, who grew a business from $10 million to $15 million in revenue, is a win-win, adding $500,000 to company coffers. He advocates for equity and profit sharing over bonuses to foster an “ownership mentality” and long-term commitment. He shares the example of a European battery manufacturer increasing growth by 25% after shifting from a flat salary to a profit-sharing plan.

Creating “Golden Handcuffs” with a Smart Vesting Schedule

The strategy is to grant equity gradually, allowing employees to earn it over time, creating “golden handcuffs.” This incentivizes long-term commitment. The author’s own company created an equity plan within two years of founding, with a complex vesting schedule. He emphasizes that the compensation plan needs to be a “perfect melody,” with three tiers of incentives. This approach shifts thinking from an “employee mentality to an ownership mentality,” incentivizes smarter work, and increases retention.

Clear Communication of Expectations

Communicating expectations clearly, early, and often is crucial for managing performance and preventing misunderstandings. This involves monitoring performance, providing direct feedback, and giving employees the chance to improve. If improvement doesn’t occur, clear expectations make termination fair and objective. The example of “Bob” being late highlights the need for direct, specific communication.

The Art of Gentle Termination

Firing people is one of the toughest entrepreneurial tasks, and doing it poorly can poison company culture. The author advocates for “firing gently”:

• Without histrionics or blame.
• Getting straight to the point without dragging it out.
• Being firm yet gentle.
• Acknowledging the other person’s feelings.
• Having a good exit strategy (e.g., in-person meeting, joint discussion with manager).
• Talking about the person’s strengths and suggesting future paths.
  He shares the story of firing his “worst assistant,” Hoot, but doing so gently and honestly, recognizing Hoot’s desire to surf, fostering a continued friendship. The principle is: “Hire slowly; fire quickly.”

Chapter 7: Create a Principles-Based Culture

This chapter argues that businesses, like religions, need true believers and rituals, embodied in a strong, principles-based culture. Without shared values, even great ideas and talented people cannot sustain their full potential.

Building Core Principles

The author details how he and his wife, Jennifer, established 43 family values, later condensed to ten core principles, including “Lead,” “Respect,” “Improve,” and “Love.” They also defined “What We Don’t Tolerate” (bullying). This relentless repetition of principles is key to embedding them in the culture. The author applies this to his company, noting that unless people are “mocking you” for repetition, you haven’t repeated the message enough.

Proving Your Principles Through Action

In 2010, one year after starting his company, the author faced a critical test of his principles. He hired “rogue agents” who generated significant revenue ($100,000 each in three months) through unethical, potentially illegal practices. Despite the financial gain, he had to terminate his top producer based on evidence from Amour Noubarentz, his newly hired compliance officer. This act of “pushing millions of dollars of revenue out the door” proved his zero tolerance for unethical behavior and solidified the company’s commitment to its principles. This led to instituting a company book club focusing on ethical management.

Embracing Radical Transparency

The author emphasizes the importance of “radical transparency,” a principle championed by Ray Dalio (Bridgewater Associates). He made Dalio’s book “Principles” mandatory reading for his company. While some, like his COO Alice, found it “too radical,” he insisted on it as a nonnegotiable, leading to productive, often heated discussions within the team. He connects this to his father’s teaching: “Never be afraid of the truth.” He analyzes the Morgan Stanley case study of Rob Parson, arguing that the failure was not Parson’s behavior but the manager’s lack of direct communication and fear of honest feedback.

Establishing a Clear Company Code

A company code defines acceptable behavior and boundaries, similar to rules in a family or social group. It provides clarity on what lines cannot be crossed (e.g., poaching colleagues’ business, disrespecting a boss, internal dating policies). The author recalls implementing a strict code in his first sales office, fostering accountability and preventing animosity. This code, and the clear consequences for violating it, is crucial for a thriving business culture.

Creating a Replacement Game Plan for Scalability

A business’s value increases the less it depends on any single individual. The author highlights Microsoft’s continued growth after Bill Gates’s departure (valuation increased by over a trillion dollars since 2006, and $930 million since Satya Nadella took over in 2014) and Apple’s success after Steve Jobs’s death (stock increased by over a trillion dollars since Tim Cook became CEO). This proves that organizations can create cultures more powerful than visionary leaders. Entrepreneurs must:

• Codify their knowledge into manuals or video libraries.
• Develop leaders to replace key personnel.
• Identify seasonal roles vs. long-term roles.
• Understand different communication “languages” for various teams (sales, support, tech, exec).
• Have a mindset of continuous leadership development.
  Media.net founder Divyank Turakhia emphasizes: “Keep figuring out how to replace yourself because your time is most valuable.”

The Benefits of Friction in Culture

The author challenges the misconception that good company cultures lack arguments or conflict. He argues that “friction is good” as it stimulates growth, creativity, and learning. He encouraged his sales team to “call out” colleagues when principles were violated, fostering “positive peer pressure.” This approach, while uncomfortable, leads to accountability and better team performance. He recommends Patrick Lencioni’s “The Five Dysfunctions of a Team” and “Difficult Conversations” by Stone, Patton, and Heen for navigating conflict. He uses the example of Joe Rogan’s “tough love” critique of Brendan Schaub’s UFC performance to illustrate how honest, direct feedback, even if painful, comes from a place of care and aims to elevate performance.

The Strategic Use of “Back Talk” (Positive Gossip)

Instead of negative gossip, the author advocates for “talking behind people’s backs” in a positive way. This involves praising an employee’s specific skills or character traits to other colleagues, knowing that the positive feedback will eventually reach the person being praised. This creates “positive friction,” boosts confidence, and solidifies connections within the team, making it a powerful motivational tool.

Chapter 8: Trust = Speed: The Power of Reliability

This chapter establishes a critical equation: Trust = Speed. It argues that building trust is essential for accelerating every aspect of business operations, from sales to delivery, ultimately leading to greater efficiency and momentum. It also warns against naive trust and emphasizes the importance of formal agreements.

The Need for Contracts: “Love You, But Sign the Prenup”

The author learned the hard way that anticipating issues and putting documents in place is crucial, especially after being “ripped off and screwed too many times.” He uses the analogy of a prenuptial agreement in marriage: discussing potential worst-case scenarios (like divorce) beforehand can prevent immense stress and financial loss later. In business, this means documenting everything with employees, partners, investors, and suppliers: code of conduct, equity ownership, salary, vesting periods, and probationary periods. This provides a “cognitive frame around emotional issues” and safeguards against conflict.

Asking Questions to Go Beneath the Surface

To build trust and effectively lead, one must truly understand people beyond superficial knowledge. The author recalls a powerful phone call with Danny, an old colleague he had pushed hard as a sales manager. Danny, now a bank president, thanked him, stating, “everything I’m putting into this leadership position is the stuff I learned when I was working with you.” This profound impact came from the author’s willingness to ask “dig-deep questions” that revealed Danny’s core motivations (e.g., wanting to retire his parents). When people become emotional during these probes, they reveal their hidden selves, which is “gold” for building productive, long-lasting relationships and understanding their “game plan.”

Trust as a Pendulum and the Importance of Reliability

The author describes trust as a pendulum that swings between low (micromanage) and high (less supervision) based on performance. Entrepreneurs often feel victimized when trust is betrayed, but he argues the onus is on the leader for allowing themselves to be “hustled.” Reliability is the key to trust: consistent delivery of promises allows for greater autonomy.

The Four Levels of Trust for Strategic Engagement

The author provides a practical framework for assessing trustworthiness to inform engagement levels:

• Stranger: Zero personal experience or reliable endorsements. Trust should be minimal.
• Endorsed: Recommended by trusted individuals or has a strong résumé. Exercise caution, but more potential for trust.
• Trusted: Direct personal experience demonstrates loyalty, honesty, and reliability. Higher level of trust.
• Running Mate: The highest level; a professional equivalent of a best friend. Willing to “move mountains” to assist. Rarely more than one such individual.
  The author notes that as one becomes more successful, the circle of truly trusted individuals often shrinks. This framework helps avoid being “burned” and guides appropriate levels of trust.

Understanding and Speaking Individuals’ “Love Languages”

Drawing from Gary Chapman’s “The 5 Love Languages,” the author applies this concept to business relationships. Instead of the Golden Rule (“Do unto others as you would have them do unto you”), he advocates for “Do unto others the way they want to be treated.” Understanding what motivates each individual (e.g., praise, quality time, gifts) is crucial for showing appreciation effectively. He cites a CEO whose $825,000/year salesman wanted a phone call (words of affirmation) after a big month, not just money.

The Nine “Love Languages” of Entrepreneurs for Team Motivation

To bring out the best in people and build trust, leaders must speak these “languages”:

1. We Need You: Granting responsibility and showing indispensability (e.g., Steve Kerr selling Andre Iguodala on a bench role).
2. Recognition: Publicly acknowledging contributions (e.g., customized gifts or awards). Denying the need for recognition often means it’s deeply desired.
3. Praise (Private, Public, Behind Their Back): Tailoring praise to the individual’s preference (e.g., a quiet conversation vs. a public shout-out, or positive “back talk” that eventually reaches them).
4. Clear Direction: Providing specific deliverables and timelines, especially for those who thrive on clear instructions.
5. Vision: Constantly articulating the future direction and goals, inspiring people with “where the team is going.”
6. Dreams: Connecting daily work to individuals’ personal aspirations (e.g., retiring parents, lifestyle goals).
7. Involvement: Soliciting opinions and feedback, and genuinely listening (and acting on) ideas.
8. Challenge: Pushing people beyond their comfort zones, privately and publicly, to foster growth and prevent complacency.
9. Listening: Simply zipping your mouth and allowing people to talk, showing genuine interest and care. This is a critical, often overlooked skill.

Move 4: Master Strategy to Scale

This section delves into the practical strategies required for exponential business growth, emphasizing the CEO’s role in capitalizing, innovating, and developing leaders. It highlights the importance of maintaining momentum while preparing for inevitable chaos.

Chapter 9: Scaling for Exponential Growth

This chapter focuses on the transition from a founder or sales manager to a CEO capable of scaling a business. It distinguishes between linear and exponential growth, outlining the four strategic areas a CEO must master to achieve the latter.

The Journey to Becoming a True CEO

The author recounts his personal struggle transitioning from a successful salesman/manager to a CEO, admitting he had “no idea in hell what I was doing” when he launched his agency. He joined Vistage, attended a Harvard program for company owners, and devoured business books to learn about vision, strategy, and logistics. His commitment: to either become a CEO he’d trust to run a Fortune 500 company or “fire myself.” This section emphasizes the foundational knowledge (self-awareness, reasoning, team-building) that precedes scaling.

The Four Phases of Every Start-Up

Businesses typically progress through these phases:

1. Formulation: The initial stage of developing the idea and laying groundwork.
2. Survival: The challenging period of trying to stay afloat and prove viability.
3. Momentum: Achieving consistent growth and gaining traction.
4. Plateau: Reaching a stagnant point where growth slows or stops.
   The chapter’s goal is to help readers understand how to move towards and beyond the momentum phase by enabling exponential growth.

Capitalizing Your Business: Strategic Funding

The author emphasizes that the method of capitalization is industry-specific. Tech companies, like Twitter or Instagram, need significant upfront capital, while others grow organically. Jack Ma’s Alibaba received $20 million from Softbank in 2000 based on a “shared vision,” not revenue. Jeff Bezos raised $1 million from twenty-two people for Amazon in 1995 when investors still asked, “What’s the internet?”

Ten Questions to Ask Before Raising Money

1. Should you even raise money? Can you bootstrap it?
2. How would you make it work if you couldn’t raise money? (Makes you more attractive to investors).
3. How will the money be used? Show a clear plan for converting cash to growth.
4. What does an ideal investor look like? Active or passive, what kind of connections/experience?
5. Do you want to keep total control? Funding often means ceding control.
6. Do you want accountability? VCs demand involvement.
7. Have you researched your industry enough? Show preparation.
8. What makes your business model different? Highlight competitive advantage.
9. Have you done the math for valuation? Provide sound projections and “comps.”
10. Are you building to sell? Investors need an exit strategy.
    Mentors are cited as the best way to connect with investors.

The Strategy Quadrant: Linear vs. Exponential Growth

A CEO’s responsibility is divided into four strategic areas:

• Linear Growth Side:
  1. Operating Systems: Tightening technology, systems, and processes for efficiency. This is often “least exciting” but crucial for supporting growth and preventing failure from growing too fast. The author cites his company’s $2 million investment in operations, which ultimately saved millions.
  2. Biz Dev & Sales: Building relationships with new vendors, partnerships, and improving sales processes. This involves networking and consistent relationship building.
• Exponential Growth Side:
  3. The Next Innovative Campaign: Launching game-changing programs or promotions. Examples include Bally Total Fitness’s zero-down memberships, Continental Airlines’ on-time bonuses, Mitsubishi’s free gas campaign, Hyundai’s extensive warranty, and Amazon Prime. These are not day-to-day decisions but strategic leaps.
  4. Leadership Development: Identifying, grooming, and challenging future leaders for more responsibility. This involves assessing strengths/weaknesses and setting clear growth paths. The CEO is judged by the leaders they develop.

Desensitizing Employees to Pressure for Peak Performance

The author’s philosophy, inspired by NFL coaches like Bill Belichick, is to apply pressure until people become “immune” to it. This prepares them for customer grief and conflict. He challenges his team by asking questions about their own goals and holding them accountable to those self-set standards, rather than imposing his own. This creates a “positive peer pressure” and becomes part of the culture.

The Reality Distortion Field of Visionary Leaders

Inspired by Steve Jobs’s “reality distortion field,” effective CEOs push others beyond their self-imposed limitations, constantly raising standards. This can be uncomfortable for employees who feel the “marker” is always moving. The author highlights that CEOs are “fired” more often (through employee quits, customer losses, lawsuits) than regular employees, emphasizing the constant pressure they face. He challenges his employees by asking them to compare their current income to their desired income, leading them to self-reflect on their “value in the marketplace.”

Empowering Lions to Build Empires

“Lions” are standout, aggressive performers who drive significant revenue but can also be demanding. The author, who identifies as a former “lion” himself, emphasizes that great companies are filled with many lions running their own “empires.” The key to managing them is to challenge them constantly, pushing them beyond their pain threshold.

Seven Ways to Hold People Accountable

1. Don’t be afraid to call them out, clearly stating it’s about performance, not personality.
2. Ask “why” and listen silently for deep explanations.
3. Make specific, quantitative statements instead of vague ones.
4. Provide clear metrics and incentives for hitting goals.
5. Coach them through workflow to ensure resources and expertise.
6. Understand each person’s role in the team dynamic.
7. Finish with heart and empathy, recognizing human feelings.
   The author stresses that CEOs also need accountability from respected peers or organizations like Vistage or YPO.

Chapter 10: Make Momentum Your Friend—and Be Prepared for Chaos

This chapter explores momentum as a critical force in business—the product of an entrepreneur’s “mass and velocity.” It highlights how to create and maintain momentum, while also preparing for the inevitable chaos that rapid growth can bring.

Overdosing on Speed for Competitive Advantage

The author’s relentless expectation is “speed, execution, and efficiency.” He illustrates this with the evolution of Ferrari’s 0-60 mph times (from 6.9 seconds in 1977 to 2.9 seconds in 2017), emphasizing that reducing time frames in any business function is always possible. He cites Toyota’s “59-second rule” for addressing assembly line problems as a reason for its dominance.

Four Ways to Accelerate Business Growth

1. Functioning Speed: Improving the efficiency of support systems and team capabilities through training or new talent.
2. Processing Speed: Streamlining the steps in a given function (e.g., customer order to delivery). Amazon’s “one-click” ordering is an example of optimizing processing speed.
3. Expansion Speed: How quickly a company moves into new markets, makes acquisitions, or introduces new products. Identifying and eliminating bottlenecks is crucial.
4. Timing Speed: Correctly timing initiatives, attacks, hires, or bonuses to double their impact.
   The chapter provides a seven-step system to compress time frames, from choosing a process and listing steps to removing, minimizing, beta testing, adapting, and refining.

Planning for Growth (Optimistically and Wisely)

Inspired by Wayne Gretzky’s quote, “I skate to where the puck is going to be, not to where it has been,” the author emphasizes proactive planning for growth. He advises leasing office space based on needs 18 months in the future if capital allows. He recounts Romeo’s catastrophic mistake of leasing 30,000 square feet for $75,000/month for a small startup with only five full-time agents, leading to bankruptcy. This illustrates the danger of overspending on infrastructure based on unfulfilled aspirations. He also lists humble beginnings of successful companies like Mattel (garage), Google (rented garage), Disney (uncle’s garage), eBay (home office), Harley-Davidson (cramped woodshed), and Dell (dorm room).

Regret Minimization and Sustaining Momentum

Jeff Bezos’s “regret minimization” concept is introduced: projecting oneself to old age and reflecting on what one might regret not having done. Warren Buffett’s trajectory from $67 million at age 47 to $90 billion at 89 is attributed to minimizing regrets and avoiding bad habits, thus maintaining consistent momentum. The cautionary tale of Morton Downey, Jr., a successful talk show host who self-destructed due to vices and a fabricated story, illustrates how rapid momentum can be lost through poor personal choices.

Vice Management: Avoiding the Four Hazardous G’s and Five Deadly Sins

The author, influenced by Pastor Dudley Rutherford, identifies four hazardous G’s that can destroy a person or business: Greed, Gluttony, Girls/Guys, and Gambling. He emphasizes that effective vice management is crucial for sustained success.

He also lists five deadly sins specific to entrepreneurs:

1. Being too cheap or splurging unwisely: Conservative “prevent defense” stifles growth, while reckless spending depletes capital.
2. Letting the wrong people have influence: Allowing those with hidden agendas or jealousy to sway decisions.
3. Having a “royalty” mentality: Becoming entitled and expecting obedience, stifling dissenting opinions and risk-taking.
4. Refusing to adapt: Clinging to outdated strategies when market conditions shift.
5. Obsessively comparing yourself to others: Focusing on competitors’ success rather than one’s own strategy.

Navigating “Fast Money Temptations”

Entrepreneurs are constantly tempted by shortcuts or “side deals” that offer quick money or rapid growth but often compromise integrity. The author shares his experience resisting $200,000 side deals early in his company’s growth, understanding that such actions would destroy loyalty and expose him to future blackmail or betrayal from “side-deal guys.” Maintaining integrity is a long-term winning strategy, preventing “little scores instead of big, sustainable ones.”

Chapter 11: Moneyball: Designing Systems to Track Your Business

This chapter champions the power of data and systems for effective business management and scaling. It argues that successful leaders move beyond personality-driven management to rely on quantifiable metrics and codified knowledge.

The Power of Data-Driven Execution

The author states that if you don’t have measurable numbers you check daily, you’re managing inefficiently. He likens his “mad scientist” study of baseball box scores to his business, inspired by Michael Lewis’s “Moneyball.” Billy Beane’s Oakland A’s used predictive analytics to prioritize on-base percentage over batting average, a previously undervalued metric, leading to competitive advantage. He challenges entrepreneurs to find their business’s equivalent of “on-base percentage”—their key undervalued metric.

Using Data and Logic to Predict the Future

Great entrepreneurs look at least five moves ahead, using data to project future scenarios and prepare for change. Michael Burry’s (from “The Big Short”) prediction of the 2008 housing bubble collapse is a prime example of dissecting data to see the “larger picture” when others were too focused on short-term gains. The author advises that the “best investment” to scale is often hiring a “predictive analytics expert” (your “DePodesta”) to make up for personal weaknesses in this area.

Codifying Knowledge for Scalability

To scale, knowledge must be transferable, not just reliant on individual genius. The author contrasts Bill Belichick’s (secrecy, non-transferable genius) with Bill Walsh’s (codified knowledge, multiple successful coaching “descendants”). Walsh’s success in transferring his “West Coast Offense” was due to his “lists” and systematic documentation. For a sustainable business, knowledge must be codified into manuals or video libraries to allow the business to operate without constant founder presence.

Making Numbers Visible for Accountability and Insight

Displaying data streams and metrics visibly throughout the office creates accountability and radical transparency. This acts as a “carrot and stick,” recognizing performers and making non-performers uncomfortable, leading them to either improve or leave. The author uses data to identify “leaks” (inefficiencies) and “trends” (patterns). By analyzing sales data, he discovered seasonality in his industry (75% of policies sold in 6 months). He combatted this by running innovative campaigns during slow months and tying incentives (like conference attendance) to summer sales. Creating “baseball cards” with agent statistics, displayed on January 15th, dramatically boosted December sales, reducing seasonality from 75/25 to 55/45 within two years.

Trusting Numbers, Not Just People

When running a company, relying solely on qualitative feedback (e.g., “roughly,” “I think”) is inefficient. Numbers provide objective truth and defuse emotion in discussions. The author describes challenging a sales rep, Paul, whose high closing ratio didn’t match his low sales volume. By focusing on the data, they discovered Paul’s problem wasn’t his closing skill, but his lack of prospecting (zero cold calls), relying only on referrals. Data reveals the “X” to solve for.

The Importance of Implementing Systems for Exponential Growth

Without a system, exponential growth is limited. Relying on personality alone leads to unpredictability. Systems, procedures, and protocols decrease the need for micromanagement, empower employees, prevent deception by “hype,” and ultimately provide the CEO with more freedom. While creating systems can be “tedious and painful” for sales-focused entrepreneurs, it is essential for creating long-term value rather than just short-term profit. A business built on documented systems is inherently more valuable.

Chapter 12: Stay Paranoid; The Grand Master Never Lets His Guard Down

This chapter emphasizes the critical importance of constant vigilance and strategic paranoia for long-term survival and success in business. It asserts that “peace never exists” in the business world, and leaders must always be alert to threats.

The Brutal Reality of Business Longevity

The author highlights the high churn rate of companies on the Fortune 500 list: only 52 of the original 500 firms from 1955 remained on the list in 2019. Similarly, the average tenure in the S&P 500 has shrunk from 33 years in 1965 to 20 years in 1990, projected to be 14 years by 2026. This data underscores that “89% of the original Fortune 500 have either gone bankrupt or fallen off the list.” Complacency is fatal; technology and social media further accelerate this churn.

“Stay Alert; Stay Alive”: Cultivating a Sense of Urgency

Successful entrepreneurs maintain a heightened sense of urgency, treating every day as a “battle.” Robert Greene’s “The 33 Strategies of War” advises cutting ties to the past and entering “death ground” to foster intense fight. Cautionary paranoia means being aware of potential dangers without obsessing. Leaders must investigate the “deepest cause” of recurring problems, such as seasonal sales dips or meeting inefficiencies, as a function of paranoia leading to solutions.

Success Breeds Vulnerability

Success can diminish paranoia and lead to complacency. The author shares the tragic story of Rick, a successful criminal defense lawyer in Los Angeles in the 1970s and ’80s, who lost his career and was jailed due to cocaine addiction and poor choices fueled by overwhelming success and attention. Brené Brown’s work on vulnerability and setting boundaries (“Daring to set boundaries is about having the courage to love ourselves even when we risk disappointing others”) is relevant here. In contrast, lawyer Robert Shapiro maintained success by “never establishing a relationship, a friendship, with my clients,” setting boundaries. Entrepreneurs must be prepared for the perks of success and avoid buying into their own hype.

Three Tactics for Staying Centered in Chaos

1. Make Friends with Murphy’s Law: Anticipate the “very worst events” that might happen before a major move and take steps to mitigate them. The author holds “anti-Murphy’s Law meetings” with his top five team members to brainstorm what could go wrong, sometimes delaying or trashing ideas.
2. Admit Defeat by Accepting Small Losses: Great entrepreneurs accept losses early, conserving cash rather than throwing money at bad investments. The author recounts pulling the plug on a Groupon-like venture after trusted friends pointed out flaws, saving his core business.
3. Identify Your Next Three (or More) Steps: In chaotic situations, combat “decision paralysis” by quickly committing to three immediate, actionable steps. These can be solutions or temporary measures to “stop the bleeding,” getting back into motion.

Managing Ego and Building Alliances

Big egos are common among CEOs, but unchecked, they lead to demise. Successful leaders cultivate a small circle of people who will tell them the truth, counteracting the constant flattery from those who fear being fired. Humility is crucial for building alliances and fostering diverse, dissenting voices. Robert Greene’s Law 18 from “The 48 Laws of Power” warns against isolation.

Strategic Alliances: Even with Enemies

The author highlights Steve Jobs’s willingness to approach Bill Gates for a $150 million investment in Apple in 1997, despite their rivalry. This “unthinkable” alliance saved Apple by settling legal disputes and making Microsoft Office compatible with Mac. Similarly, Amazon’s “groundbreaking agreement” with Toys “R” Us in 2000, during the dot-com bust, was a crucial alliance for survival and traffic, even though it eventually turned into a lawsuit. The lesson: “Even after you build an alliance, stay paranoid!”

Seeking Wise Counsel: Theory, Witness, and Application (TWA)

When adversity strikes, wise counsel is invaluable. The author contrasts “smart” (knows answers) with “wise” (comfortable not knowing all answers). He categorizes mentors/advisers into three expertise levels:

• Theory: Well-read, academic.
• Witness: Has observed successful leaders closely (e.g., Guy Kawasaki with Steve Jobs).
• Application (the best): Has “walked their talk” and implemented strategies successfully (e.g., Magnus Carlsen hiring Garry Kasparov as a coach).
  “Trifectas” possess all three. The author learned to seek wisdom after his own financial struggles, devouring books and surrounding himself with wise people.

Move 5: Master Power Plays

This section delves into advanced strategies for cultivating power, mastering influence, and maintaining a battle-tested mindset. It emphasizes the importance of leverage, strategic negotiation, and understanding what truly drives people to maximize potential.

Chapter 13: How to Beat Goliath and Control the Narrative

This chapter prepares entrepreneurs for the inevitable battle against their “Goliath”—a larger, more established competitor—and how to win by controlling the narrative through effective self-promotion and social media use.

The Reality of Facing Goliath

The author asserts that every business has a Goliath (bigger, more capitalized, reputable, but often complacent). Taking on Goliath requires acknowledging intense fear, panic, and anxiety. It demands “delusional” belief, ten times more work, and unwavering health to sustain the fight. The author’s own experience with Aegon’s lawsuit in Move 2 is revisited as his personal Goliath, which, once overcome, provided the confidence to tackle larger challenges.

Why Goliaths Are Vulnerable

Goliaths, despite their size, can be beaten because they tend to:

• Get softer and complacent after winning.
• Lose touch with current marketing methods and direct customer engagement.
• Lack nimbleness and are slow to adapt.
• Have too much to lose to take risks.
• Cannot recruit the “crazy and hungry” underdogs who are driven by the challenge of taking out a Goliath.
  The author outlines a dozen ways to beat Goliath, including knowing both your and Goliath’s weaknesses, specializing, appearing bigger than you are, moving quickly, partnering with shared enemies, studying history, and not disclosing your full strategy.

Controlling the Narrative in the Digital Age

Social media is the “great equalizer,” allowing individuals to control their own story. When the author’s competitors spread “horrible things” about him, he used online content to present his true self, turning negative gossip into opportunities for partnership. He contrasts this with Steve Jobs’s pre-internet efforts to control his narrative (calling Playboy) versus the instantaneous feedback loop of modern social media.

The Art of Shameless Self-Promotion

Entrepreneurs must be shameless about self-promotion, overcoming the fear of judgment. This doesn’t mean bragging but subtly showcasing achievements through stories (e.g., mentioning a personal award in conversation). Making bold predictions within one’s industry, even if sometimes wrong, builds credibility and keeps you in the news (like Jim Cramer or Peter Schiff).

Key Tenets of Social Media Promotion

• Have a personality and be authentic.
• Be bold and brash (if it’s authentic to you).
• Be engaging by asking questions and inviting opinions.
• Trumpet successes and poke fun at failures.
• Be consistent with content delivery (e.g., Seth Godin’s daily blog, Daniel Pink’s bi-weekly Pinkcast).
• Maintain integrity by aligning with sponsors and refusing to “prostitute your brand.”
  Other techniques include “book-dropping” (recommending relevant books to show intellectual depth) and having strong, well-supported opinions on industry topics.

Aligning Your Brand with Your Master Vision

The author shares his journey of rebranding his YouTube channel from “Patrick Bet-David” / “Two Minutes with Pat” to “Valuetainment.” This strategic shift was driven by his master vision to create a leading global platform for entrepreneurial education, moving the focus from himself to the mission. He outlines fifteen strategic moves for this transformation, including brainstorming names, studying marketing, hiring experts (SEO, editor), increasing content rate, mapping social media strategy, presenting himself as an expert, and setting clear guest criteria. This intentional alignment led to billions of minutes of content watched and over 2.3 million YouTube subscribers by May 2020.

Turning Off the Noise and Cutting the Fat

A major power move is eliminating distractions and negativity (“noise”). This includes ignoring celebrity gossip, avoiding negative friends and family, and cutting unproductive habits and vices (the “fat” from your life). The author shares his personal experience of making a vow in his mid-twenties to abstain from sex until he made his first million, a “fast” that lasted seventeen months. This extreme self-discipline forced him to channel all his energy into revenue-producing activities, leading to a productivity skyrocketed and, eventually, meeting his wife. He advises identifying and cutting unproductive activities (e.g., limiting football watching from 13+ hours to one game/week) to reclaim time and focus.

Future Truth Versus Positive Affirmations

The author differentiates between living your “future truth” (embodying your desired future now) and merely reciting positive affirmations. He emphasizes that affirmations are “useless without emotion and conviction.” To make them real, one must connect them to personal pain and triumphs. He suggests a mental inventory of five most painful, five most successful, and five “untouchable” moments. Then, affirmations should be stated with validation: “I will be a great leader because I came through when my family needed me,” or “I’m going to make the greatest comeback ever because I’ve overcome more.” This anchors future aspirations in past resilience, as exemplified by Trent’s coaching of Mikey in the film “Swingers,” urging him to embody a “bad man” persona.

Chapter 14: Study Mobsters: How to Sell, Negotiate, and Influence

This chapter presents a controversial but insightful perspective: learning sales, negotiation, and influence tactics from mobsters. The author clarifies that this is about learning from their methods in high-stakes environments, not endorsing criminal activity. He emphasizes that mobsters are “ultimate entrepreneurs” in their risk-taking and negotiation skills.

Learning from “The 48 Laws of Power” and “The Godfather”

The author made Robert Greene’s “The 48 Laws of Power” mandatory reading for his company, not to become manipulative but to understand how such laws could be used against them. He views “The Godfather” (I & II) as an essential business education, illustrating themes like betrayal, recruiting, and negotiation. His interviews with former mobsters like “Sammy the Bull” Gravano and Joe Pistone (Donnie Brasco) provide insights into high-stakes communication, preparation, and human psychology.

A “Made Man” Knows How to Prepare

Michael Franzese, a former high-earning caporegime, is presented as an expert in preparation due to the life-or-death stakes of his past. The author outlines seven essential steps to prepare for any meeting:

1. Consider the other party’s needs, desires, and frustrations (fear, greed, saving face).
2. Anticipate what they will say.
3. Develop a script/outline.
4. Role-play different reactions.
5. Ask trusted advisers for blind spots.
6. Enter with the best frame of mind.
7. Build a reputation for overdelivering.
   Franzese’s calm response to an accusation of stealing billions (which his father had secretly orchestrated to expose him) showcased his meticulous preparation and ability to control emotions under extreme pressure.

The Art of the Sit-Down: High-Stakes Negotiation

The author recounts his high-stakes “sit-down” in the Cayman Islands with senior executives of a major insurance company, where he sought a compensation increase. He applied all seven preparation steps, including anticipating their frustrations and preparing data to support his request. His opening move was not to demand, but to offer value first (e.g., waiving a $1 million system fee they were interested in). This “win-win” approach, combined with his thorough preparation and understanding of their leverage, resulted in a successful negotiation, illustrating Don Vito Corleone’s “offer he can’t refuse” principle.

Effective Sales: Conviction and Transference of Feeling

Drawing on Zig Ziglar’s story of a struggling cookware salesman who only succeeded after buying the product himself, the author emphasizes that true selling is about conviction and a “transference of feeling.” Sales should be effortless, a “natural extension of who you are,” rooted in absolute belief that what you’re selling is “worth more than the price you ask for it.” He looks for hires who believe in themselves and the company, rather than just “naturals” with the gift of gab. Estée Lauder’s quote, “I have never worked a day in my life without selling,” reinforces this.

Negotiation Is About Leverage

The core of negotiation is leverage: the party that needs the deal least has the most power. Having options is key to gaining this power. The author recounts his early career strategy of structuring deals that were initially “the worst” for him but maximized risk minimization for the other party, allowing him to build long-term partnerships and gain future leverage. He details a four-minute phone call where he used his credibility and the potential for a supplier to gain many new clients as leverage to waive a $50,000 software licensing fee. This power play not only succeeded but also led to a $10 million investment in his next funding round.

Winning by Letting Others Think They Won

Sometimes, the best way to win is to let the other party believe they came up with your idea or won the negotiation. The story of Darius, a young hedge fund analyst, who learned to present his brilliant investment ideas to his ego-driven boss, Dale, by asking questions and feigning confusion, making Dale believe the idea was his own (“We need to short ten-year Treasuries!”), illustrates this. This subtle power play allows brilliant ideas to be implemented, while managing difficult personalities.

Chapter 15: Cultivate Your Power, and Stay Battle Tested

This final chapter synthesizes the book’s themes, focusing on how to sustain power, leverage, and growth over the long term. It re-emphasizes the importance of constant self-improvement, strategic thinking, and genuine leadership that understands and motivates others.

Real Power Comes from Having Options

Leverage is having options. The person who needs a deal the least is in the strongest negotiating position. The author advises cultivating multiple options (e.g., three potential homes, multiple key hires). He shares the cautionary tale of Bobby’s $8 million business, where $5 million came from one customer—making him vulnerable to constant concessions. When that customer left, Bobby’s business became unsustainable, forcing him to sell to the very customer who had exploited his lack of options. The lesson: diversify revenue streams and never let one customer represent 30% or more of your revenue.

The Long-Term Game of Power: Humility and Service

True power is built on a foundation of humility and service, not just a “shotgun approach” to business. The author recounts his early career experience with Eli, a well-connected family friend. Instead of asking for leads immediately, he built a genuine friendship, even washing dishes at Eli’s party and visiting his imprisoned son for months (a four-hour drive, multiple times). Only after earning Eli’s trust and asking, “How can I help you?” did Eli offer him a list of 600 contacts, one of whom eventually led to $30 million in business. This illustrates that power plays are about the long game and offering value first.

The Formula for Gaining Sustained Power

• Outwork: Consistent effort is foundational.
• Outimprove: Continuously find new ways to elevate your business and yourself.
• Outstrategize: Think five moves ahead, plan for scale, and patiently wait for results.
• Outlast: Develop endurance and make choices that maintain focus, especially during success and failure.

Shadowing for Accelerating Your Growth

The power play for becoming who you want to be is to shadow someone already there. Warren Buffett’s willingness to work for free for his hero, Benjamin Graham, exemplifies this. The author emphasizes physical proximity and observing how successful people handle conflict and negotiations. He shares his own experience shadowing Francisco Davis, a top salesman at Bally, simply to observe and learn. He also highlights NBA coach Steve Kerr’s decision to be an assistant to Gregg Popovich for Team USA, even after winning multiple championships, to continue learning from a great leader. Providing value (e.g., offering to edit proposals, help with social media) is key to securing shadowing opportunities.

Leadership: Understanding What Drives People (Beyond Love Languages)

Building on the “Nine Love Languages of Entrepreneurs,” this section deepens the understanding of human motivation. A great leader sets an example and earns moral authority, but also drives others to their own standard of excellence. This high-paying skill involves understanding what truly motivates individuals:

• Advancement: Constantly set new goals and positions for them to move up.
• Individuality: Appeal to their desire for unique lifestyles, prestige, and personal achievement.
• Madness: Provide constant “enemies” or targets to challenge them.
• Purpose: Connect their work to something bigger, a legacy, or a historical impact.
  The author stresses that leaders should understand, position, and lead, but “do not try to fix” people. Trying to change others is “delusional behavior”; instead, focus on listening, asking questions, and nudging them to self-correct based on their inner drive.

Conclusion: Checkmate

The conclusion brings the book’s core themes full circle, emphasizing that sustained success in business, like chess, is a result of deep personal commitment and continuous learning.

The Cost of Lacking Passion: The Andrew Bynum Story

The author uses the cautionary tale of Andrew Bynum, a highly talented Los Angeles Lakers first-round draft pick who, despite winning two NBA titles by age 25, ultimately ruined his career by age 26 due to lack of effort and disrespect for the game (symbolized by shooting the ball indiscriminately in practice). The reason for his underachievement, the author speculates, is that Bynum “did not love the game.” This highlights the number one factor in reaching potential: it must matter to you. Success that comes too easily, like a large inheritance, can lead to entitlement and taking things for granted, removing the “struggle” necessary for growth.

Leveling Up Means Starting Over at the Bottom

To reach one’s full capacity, one must be willing to “compete up” and “start at the bottom” at each new level. The “king of grade school” becomes the “low man on the totem pole” in middle school. This applies to careers: each advancement means being at the bottom of the next level. The author provides a chart illustrating this concept:

• Grade School King > Middle School Freshman
• Middle School King > High School Freshman
• High School King > College Freshman
• College Graduate > Entry-Level Employee
• Entry-Level Employee > Supervisor
• Supervisor > Manager
• Manager > Director
• Director > VP
• VP > President
• President > CEO
  This constant challenge, while often uncomfortable, is what prevents stagnation and reveals inner potential. Investing in learning and growth is crucial for this continuous ascent.

Entrepreneurs as World Problem Solvers

The author reiterates his core belief that entrepreneurs will solve many of the world’s problems. They are inherently problem solvers: they take complex issues, study them, simplify them, and find solutions across health, economics, environment, and education. While initial motivation might be personal wealth, the “mission has to be bigger.” The start-up graveyard is filled with talented people who weren’t prepared for the chaos. True success comes from fighting for a mission, living your “future truth,” and guiding others, bringing daily rewards.

Final Call to Action: Your Next Five (or Fifteen) Moves

The book culminates with a challenge: readers must apply what they’ve learned by identifying their next five (or even fifteen) moves. This involves:

• Sequencing: Understanding that moves must be made in the right order for maximum impact.
• Holistic Application: Integrating all five master moves—knowing yourself, reasoning, team building, scaling, and power plays—into their strategy.
  The ultimate goal is to win not just in business (“war room,” “boardroom”) but also in personal life (“bedroom”), by becoming a grand master of strategy.

Appendix A: Personal Identity Audit

The Personal Identity Audit is presented as a crucial tool for self-discovery and breakthrough. It is a series of in-depth questions designed to help individuals understand themselves, their motivations, fears, and limiting beliefs.

The Purpose of the Audit

The audit aims to facilitate deep self-reflection leading to self-acceptance and liberation from self-judgment. It helps individuals identify their “best version,” what drives them, how they handle challenges, and their core values. The author emphasizes that the only right answer is the honest answer, and the more emotional the process, the more likely a breakthrough will occur.

Key Questions for Self-Discovery

The audit includes questions like:

• How do you think the world views you?
• How do you view yourself?
• How is the “public you” different from the “private you”?
• What conditions produce the BEST VERSION OF YOU? (e.g., competition, fear of loss, setbacks, victories, belief from others, a point to prove).
• Name a ninety-day period of your career during which you were the hungriest to succeed. What drove you?
• How do you handle a public loss?
• Do you feel you’re entitled to things without earning them?
• How difficult a personality do you have?
• Do you have a tendency of blaming others for your lack of effort or discipline?
• Who are you secretly envious of that no one knows about?
• What type of people annoy you the most and why?
• What brings out the worst side of you? Why?
• What do you value the most in business and in life?
• Who do you want to be?
• What kind of life do you want to live?
  The audit is designed to be a private exercise, prompting profound introspection.

Appendix B: Solve for ‘X’ Worksheet

The Solve for ‘X’ Worksheet provides a structured methodology for effective decision-making and problem-solving in business. It helps users break down complex issues into manageable steps, identify root causes, and plan strategic responses.

The Methodology for Problem-Solving

This worksheet guides users through a systematic approach to tackle any business issue, large or small. The core idea is to identify the unknown variable (‘X’) that represents the true root cause of a problem, rather than just addressing symptoms.

Worksheet Components and Process

The worksheet prompts users to:

• Define the problem: Clearly articulate the challenge at hand.
• Distinguish between symptoms and root causes: Ask “Why?” repeatedly to drill down to the fundamental issue.
• Analyze available data: Gather all relevant information to inform the decision.
• Brainstorm multiple solutions: Generate a range of potential actions, considering different costs, timeframes, and risks.
• Apply the Investment Time Return (ITR) formula: Quantify the potential return on investment for each solution, factoring in both time and money.
• Consider best-case and worst-case scenarios: Evaluate the potential upsides and downsides of each option.
• Develop a strategic plan: Outline the step-by-step actions to implement the chosen solution.
• Determine metrics for success: Identify how to track and measure the effectiveness of the implemented solution.
• Assess the type of issue: Categorize it as “offense” (growth opportunity) or “defense” (problem to solve) to frame the approach.

Recommended Reading

This section provides a comprehensive list of books that have influenced Patrick Bet-David’s thinking and contributed to the methodologies presented in “Your Next Five Moves.”

PBD’s Top 52 Business Books

This curated list serves as a powerful resource for continuous learning and development for entrepreneurs and leaders. It includes foundational texts in business strategy, leadership, personal development, and understanding human nature.
Some notable titles include:

• “Blue Ocean Strategy” by W. Chan Kim and Renée Mauborgne
• “Principles: Life and Work” by Ray Dalio
• “The Five Temptations of a CEO” by Patrick Lencioni
• “Built to Sell: Creating a Business That Can Thrive Without You” by John Warrillow
• “Competitive Strategy” by Michael E. Porter
• “Multipliers” by Liz Wiseman
• “Only the Paranoid Survive” by Andrew S. Grove
• “The Five Dysfunctions of a Team” by Patrick Lencioni
• “Mastery” by Robert Greene
• “The 33 Strategies of War” by Robert Greene
• “Meditations” by Marcus Aurelius
• “Rich Dad, Poor Dad” by Robert T. Kiyosaki
• “The Hard Thing About Hard Things” by Ben Horowitz
• “The Hypomanic Edge” by John D. Gartner
• “Power vs. Force” by David R. Hawkins
• “The 48 Laws of Power” by Robert Greene
• “How to Win Friends and Influence People” by Dale Carnegie

Other Referenced Books

This list supplements the core business books with titles covering broader themes of relationships, psychology, and personal growth that inform entrepreneurial success.
Notable titles include:

• “The 5 Love Languages” by Gary Chapman
• “The 7 Habits of Highly Effective People” by Stephen R. Covey
• “The Big Short” by Michael Lewis
• “Difficult Conversations” by Douglas Stone, Bruce Patton, and Sheila Heen
• “Moneyball” by Michael Lewis
• “Powerful: Building a Culture of Freedom and Responsibility” by Patty McCord
• “Steve Jobs” by Walter Isaacson
• “The Toyota Way” by Jeffrey Liker
  This comprehensive reading list reinforces the book’s emphasis on lifelong learning and drawing wisdom from diverse sources to master business strategy.