Top Money Expert: How To 10x Your Income & Turn Your Passion Into A Thriving Business | Daniel Priestley
In this episode of The School of Greatness, Daniel Priestley and Lewis Howes explore the challenges and realities of building a successful business. They examine the high failure rates of new businesses and discuss practical approaches to mitigate these risks, including the value of market research and finding opportunities that combine passion with profit potential.
The conversation covers several key areas of modern business development: the advantages of personal branding over corporate branding, the strategic use of AI tools for business growth, and the distinctions between lifestyle and performance business models. Priestley breaks down how different business models align with various personal goals and lifestyles, while sharing insights about leveraging technology and collaborative networks to scale effectively.
This is a preview of the Shortform summary of the May 26, 2025 episode of the The School of Greatness
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1-Page Summary
Entrepreneurship and Business Strategy
Lewis Howes and Daniel Priestley discuss the challenges of entrepreneurship, noting that over 20% of businesses fail in their first year and more than 50% within five years. Drawing from his experience, Priestley shares his journey of rapid business growth, while Howes reflects on the intense effort required during his first decade of business ownership.
To mitigate these risks, Priestley emphasizes the importance of curiosity and experimentation in entrepreneurship. He suggests starting with small, inexpensive tests like survey-based market research before making major commitments. The key, according to both hosts, lies in finding opportunities that combine passion, problem-solving, and profit potential.
Personal Branding and Building a Platform
Priestley explains that personal brands typically outperform business brands in engagement, with personal accounts often gaining 20,000 followers compared to business accounts' 1,000 with the same effort. He emphasizes the importance of publishing content, forming partnerships, and monetizing influence to scale businesses effectively.
The discussion extends beyond entrepreneurs, as Priestley introduces the concept of forming a "squadron" - a collaborative group that can boost each member's brand impact. He stresses the importance of focusing on content creation rather than consumption to build a strong personal brand.
Leveraging Technology (Especially AI) For Business
Priestley compares AI's impact to historical technological shifts, predicting a division between "hyper-creators" who leverage AI for productivity and "hyper-consumers" who are dominated by attention-grabbing technology. He advocates for limiting exposure to attention-demanding platforms like TikTok and Amazon, instead focusing on using AI tools for creative tasks and productivity enhancement.
Distinguishing Between Different Business Models and Growth Trajectories
Priestley outlines two main business models: lifestyle businesses, which typically maintain core teams under 12 people and aim for 6-7 figure revenues, and performance businesses, which target 8+ figure exits and require larger teams of 30+ people. He explains that lifestyle businesses offer flexibility and work-life balance but have limited growth potential, while performance businesses provide higher financial upside but come with increased risk and stress. The choice between these models, according to Priestley, should align with the founder's personal goals and desired lifestyle.
1-Page Summary
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Counterarguments
- While curiosity and experimentation are important, some argue that a clear vision and strong planning can be equally or more important for business success.
- Small, inexpensive tests like survey-based market research can be valuable, but they may not always provide the depth of insight needed to make informed decisions, especially in complex markets.
- The idea that personal brands always outperform business brands in engagement can be contested, as there are numerous examples of business brands with massive followings and engagement rates.
- Content creation is important for personal branding, but the quality and relevance of content are critical factors that can outweigh sheer quantity.
- Forming partnerships and monetizing influence are not universally applicable strategies, as they may not align with the values or goals of every entrepreneur or business.
- The division between "hyper-creators" and "hyper-consumers" in the context of AI may be an oversimplification, as individuals and businesses often play both roles simultaneously.
- Limiting exposure to platforms like TikTok and Amazon may not be feasible or desirable for all businesses, especially those that rely on these platforms for marketing or sales.
- AI tools can enhance productivity, but they also raise concerns about job displacement and the ethical use of technology.
- The distinction between lifestyle and performance businesses is not always clear-cut, as some businesses may evolve from one model to another, or incorporate elements of both.
- The suggestion that lifestyle businesses have limited growth potential may not account for the fact that some lifestyle businesses can scale significantly without losing their core values or work-life balance.
- The assertion that performance businesses come with increased risk and stress may not consider the varying degrees of risk tolerance among entrepreneurs or the potential for performance businesses to implement stress-reducing practices.
- The recommendation to choose a business model based on personal goals and desired lifestyle assumes that these factors are static, but goals and lifestyles can change over time, necessitating a reevaluation of the business model.
Actionables
- You can validate your business idea by hosting a casual focus group with friends or acquaintances who resemble your target market. Invite them for a coffee or a virtual chat to discuss their challenges and needs related to your business idea, ensuring you get direct feedback without the formality of surveys or structured market research.
- Develop a mini-podcast series or blog that explores your business journey or a topic you're passionate about to build your personal brand. Share your insights, stories, and lessons learned on free platforms like Anchor for podcasts or Medium for blogs, which can help you connect with an audience and practice content creation.
- Create a simple weekly routine to evaluate new technologies or platforms that could enhance your productivity or creative output. Dedicate one hour each week to explore one new tool, such as a free AI writing assistant or graphic design software, and experiment with how it can streamline your tasks or improve your business processes.
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Entrepreneurship and Business Strategy
The challenge of creating a successful business is daunting, with many startups failing within the first few years. However, Lewis Howes and Daniel Priestley discuss how entrepreneurial mindset and strategy can mitigate risks.
Most Businesses Fail In Early Years of Entrepreneurship
Lewis Howes and Daniel Priestley confirm the harsh reality that confronts entrepreneurs.
Startup Failure Rates: 20% Fail in Year one, 50% Within Five Years
Lewis shares that in America over 20% of businesses fail within the first year and more than 50% by the fifth year.
Successful Businesses Demand Long Hours and Intense Effort
Daniel describes his own experience of rapid business growth, implying the significant commitment required. He launched his own business at 21, hitting 1.3 million in revenue in his first year and 10.7 million by the third year. He refers to this as "incredibly fast growth," suggesting strenuous work.
Lewis talks about the substantial effort involved in running his businesses for the first ten years. This effort led to financial success and opportunities but also to burnout and resentment toward his business.
Mitigating Risks Through Entrepreneurial Mindset and Strategy
Learning from their experiences, Howes and Priestley provide insights into cultivating a successful entrepreneurial mindset and strategic approach.
Key to Entrepreneurship: Curiosity, Experimentation, and Adaptability
Priestley emphasizes the importance of curiosity and treating entrepreneurship as a series of experiments. Describing it as a personal development journey, Priestley suggests entrepreneurship forces individuals to explore their limits and be creative.
Iterative Steps Make Startup Process Approachable
Instead of making huge commitments, Daniel suggests launching a waiting list landing page to test hypotheses. He underscores the utility of starting with "fast, cheap experiments," like surveying potential customers to understand market demand and validate concepts before full commitment.
Daniel's team conducted an experiment with five questions to potential customers and received 750 responses with a high willingness to pay ($59/month). He also notes that the best opportunities involve a combination of passion, a problem needin ...
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Entrepreneurship and Business Strategy
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Counterarguments
- While high failure rates are a reality, it's important to consider that failure can be a subjective term and not all "failures" are negative; many entrepreneurs learn valuable lessons from failed ventures that contribute to their future success.
- The statistics on business failure rates can be misleading without context, such as the industry-specific risks or economic conditions that may affect these rates.
- The emphasis on long hours and intense effort might perpetuate the myth of the overworked entrepreneur and overlook the importance of work-life balance, which can also contribute to a business's success.
- Daniel Priestley's rapid business growth is impressive but not typical; using such exceptional cases as benchmarks can set unrealistic expectations for most entrepreneurs.
- The narrative that successful entrepreneurship requires extreme personal sacrifice can discourage individuals who seek a more balanced approach to starting a business.
- The idea that curiosity, experimentation, and adaptability are key to entrepreneurship might oversimplify the complex array of skills and attributes needed to succeed in business.
- Suggesting that starting with "fast, cheap experiments" is always the best approach may not apply to all types of businesses, especially those that require significant upfront investment in research and development.
- The notion that passion should align with profitability could be challenged by social entrepreneurs whose primary motivation might be impact rather than profit.
- The recommendation to join an early-stage startup for equity and bonuses may not acknowledge the high risk associated with such positio ...
Actionables
- You can create a "business concept validation journal" where you document daily observations of problems people face, your ideas for solving them, and any evidence of people's willingness to pay for such solutions. This practice encourages you to look for entrepreneurial opportunities in everyday life and keeps you focused on the intersection of passion, problem-solving, and profitability. For example, if you notice many parents in your community complaining about a lack of quality after-school programs, you might jot down ideas for a service that addresses this need and consider how you could test interest and willingness to pay among your peers.
- Develop a "skill swap" network within your circle to exchange expertise with friends or acquaintances looking to explore entrepreneurship. This allows you to gain insights and skills relevant to starting a business without the need for formal education or investment in courses. For instance, if you're good at writing and a friend excels at web design, you could offer to write content for their website in exchange for them designing a logo for your business idea.
- Implement a "micro-experimentation week" where you challenge yourself to test small business ideas or improvements in a low-risk, low- ...
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Personal Branding and Building a Platform
The conversation between Daniel Priestley and Lewis Howes emphasizes the significance of personal branding for both entrepreneurs and non-entrepreneurs in today's digital landscape.
Personal Branding Essential for Entrepreneurs and Leaders to Stand Out
In a world where everyone has to be selective about the opportunities they engage with, the ability to build a discerning personal brand is increasingly crucial for entrepreneurs and leaders.
Personal Brands Outgrow and Engage Better Than Business Brands
Priestley points out that personal brands have a distinct advantage online, observing that a personal brand could gain 20,000 followers, while a business brand might only obtain 1,000 followers with the same amount of effort. This is why having a key person of influence is imperative for a company's growth, especially when scaling from six to seven figures in revenue.
Building a Strong Personal Brand Through Publishing, Partnerships, and Monetization
Priestley and Howes emphasize the potential of personal branding in the digital age, where tools like podcasting, vlogging, and artificial intelligence can amplify messages. A personal brand is enhanced by publishing content like books, engaging in partnerships, and finding ways to monetize one's influence. These activities support scaling a business by positioning the founder or a key individual as the relatable face and voice of a company.
Personal Branding Helps Non-entrepreneurs Diversify Income
Personal branding is not solely for entrepreneurs; it's also a tool for non-entrepreneurs to diversify their income and elevate their professional status.
Forming a "Squadron" Boosts Brand Impact
Priestley talks about forming a “squadron” — a c ...
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Personal Branding and Building a Platform
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Clarifications
- A key person of influence is an individual who establishes a strong personal brand and presence in their industry, becoming a recognized authority and influencer. They are pivotal in driving business growth, especially during the transition from small to large-scale operations. By leveraging their personal brand, they can attract a significant following and opportunities that may not be as easily accessible to a traditional business brand.
- Scaling from six to seven figures in revenue means increasing a company's annual income from a range of hundreds of thousands (six figures) to a range of millions (seven figures). This growth signifies a significant milestone for a business, often requiring strategic planning, increased sales efforts, and operational efficiency improvements. Moving from a six-figure revenue to a seven-figure revenue can involve expanding market reach, enhancing product offerings, and optimizing business processes to accommodate the higher volume of sales. It represents a substantial leap in financial success and business maturity.
- Monetizing one's influence involves leveraging one's reputation, expertise, and following to generate income. This can be achieved through various means such as sponsored content, affiliate marketing, brand partnerships, speaking engagements, and product endorsements. Essentially, it's about turning your personal brand and the trust you've built with your audience into revenue streams. By strategically capitalizing on your influence, you can create financial opportunities and sustainable income streams.
- A mastermind circle, also known as a mastermind group, is a collaborative gathering of individuals who come together to share knowledge, insights, and support to help each member solve problems and achieve their goals. The concept emphasizes collective brainstorming, peer-to-peer mentoring, and leveraging the combined expertise of the group to drive individual and collective success. These groups typically consist of a small number of participants who meet regularly to discuss challenges, offer advice, and hold each other accountable in a structured and supportive environment. The aim is to foster person ...
Counterarguments
- Personal branding might not be equally crucial for all roles and industries; some professionals may succeed through their work's merit without a strong personal brand.
- Business brands can have significant online influence and customer loyalty, sometimes outperforming personal brands, especially in industries where trust and longevity are valued over individual influence.
- Building a personal brand can be time-consuming and may not always lead to direct monetization or business growth, particularly if not strategically aligned with business objectives.
- Diversifying income through personal branding may not be feasible for everyone, especially those with limited time or resources to invest in building and maintaining a personal brand.
- Collaborative groups can be beneficial, but they also risk groupthink and may dilute individuality if not managed pro ...
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Leveraging Technology (Especially Ai) For Business
In the business world, AI is becoming a critical tool that entrepreneurs must leverage to stay competitive. Daniel Priestley and Lewis Howes suggest different ways this can be achieved.
Ai: A Singularity Transforming Economy and Jobs
Ai to Displace Traditional Jobs, Like Industry Did to Agriculture
Daniel Priestley compares the rise of AI to a historical singularity, similar to the invention of tractors that displaced farm workers. Just as the transition from the agricultural age to the industrial age represented a significant shift in economy and jobs, the current transition to the digital age promises to be equally transformative.
Bifurcation: Minority as "Hyper-Creators," Majority as "Hyper-Consumers"
Priestley predicts a bifurcation of society due to AI's influence. He sees a future split between a small segment of society that becomes "hyper-creators," using AI to produce a multitude of work, and a larger segment that becomes "hyper-consumers," overwhelmed by the various apps and platforms designed to demand their attention and consumption.
Thrive In Ai As "Hyper-Creators"
Limit Attention-Grabbing Tech, Leverage Ai For Productivity
To thrive as a "hyper-creator" in a society influenced by AI, Priestley suggests individuals limit the use of attention-grabbing tech such as TikTok and Amazon, which are incredibly proficient in turning people into hyper-consumers. Instead, one should leverage AI for increased productivity, as seen with tools that a ...
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Leveraging Technology (Especially Ai) For Business
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Clarifications
- A singularity in the context of AI often refers to a hypothetical future point where AI surpasses human intelligence, leading to unpredictable and rapid changes in society and technology. It signifies a moment where AI systems may become self-improving and potentially outstrip human capabilities in various domains. This concept raises questions about the implications of such advanced AI on jobs, economy, and societal structures. The term "singularity" is used to describe a transformative event that is hard to predict due to the unprecedented nature of AI advancements.
- The concept of "bifurcation of society due to AI's influence" suggests a future where AI technology could lead to a division in society. This division could create a split between a smaller group of individuals who heavily utilize AI to create and produce, known as "hyper-creators," and a larger group who primarily consume the products and services generated by AI, termed as "hyper-consumers." This potential societal split highlights the impact AI could have on the roles and contributions of individuals in the economy and society at large.
- Hyper-creators are individuals who leverage AI and technology to produce a wide range of work efficiently and creatively. They harness tools and platforms to enhance their productivity and output in various fields. In contrast, hyper-consumers are those overwhelmed by the abundance of digital content and services, often passively consuming without actively creating or producing. This distinction hig ...
Counterarguments
- AI as a critical tool for competitiveness may not be universally applicable; some businesses may thrive through other means such as exceptional customer service, unique craftsmanship, or local community engagement.
- The comparison of AI to historical singularities may oversimplify the complex and nuanced impacts of technology on society; not all technological shifts have uniform effects across different sectors and demographics.
- The transformative effect of the digital age on the economy and jobs is not deterministic; policy decisions, cultural factors, and economic strategies also play significant roles.
- The prediction of a bifurcation into "hyper-creators" and "hyper-consumers" may not account for a diverse range of roles that people might occupy in an AI-driven economy.
- Limiting attention-grabbing tech may not be sufficient for thriving as a "hyper-creator"; other factors such as education, access to resources, and networking opportunities can be equally important.
- AI's assistance in creative tasks does not guarantee quality or originality; human intuition and experience ar ...
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Distinguishing Between Different Business Models and Growth Trajectories
Daniel Priestley shares his insights into creating businesses that stand out and make an impact while also discussing different intentions behind business models and their implications for growth and founder lifestyle.
Business Model Spectrum: Lifestyle to High-Growth Ventures
Priestley hints at a distinction between various business models, from lifestyle-oriented to high-growth ventures, shedding light on the trajectories they take.
Lifestyle Businesses: Core Team Under 12, Aiming For 6-7 Figure Revenues
Priestley characterizes lifestyle businesses as entities that can generate six to seven-figure revenues and profits. These operations aim for fun, freedom, and flexibility, allowing owners and their small teams to live and work from anywhere. Transparency is key in such small teams, with clear visibility on revenues, profits, and customer numbers.
Performance Businesses Aim For 8+ Figure Exits and Need a Team of 30+ For Scaling
Conversely, when Priestley speaks about fast-growing companies like scoreapp.com and Dent Global, he describes them as performance businesses aiming for high revenue targets. These entities may need to scale their teams significantly to be conducive to substantial growth. He describes entering the 'performance zone' when a team grows to 30 to 250 people, which is necessary for businesses aiming for major growth and the potential for exits in the tens of millions.
Business Model Choice Depends On Founder's Goals
Priestley delves into the difference between lifestyle and performance businesses, likening the leap to performance businesses to moving from casual play to competing in professional sports. It involves more commitment and the pursuit of significant capital investment early on, necessary for growth and considerable exits.
Priestley talks about the importance of team size and scaling, further illustrating how moving from a boutique business to scaling up aligns with performance business growth strategies. The larger scale and financial commitment raise potential risks and stress levels for founders.
Performance Businesses Offer Higher Financial Upside but With Increased Risk and Stress
Performance businesses, Priestley notes, come with the allure of a high financial upside. He shares anecdotes of friends who have sol ...
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Distinguishing Between Different Business Models and Growth Trajectories
Additional Materials
Counterarguments
- Lifestyle businesses may sometimes exceed the 6-7 figure revenue mark and can evolve into larger enterprises if the market demand increases or if the owner decides to scale the business.
- Performance businesses do not always require a team of 30+ for scaling; advancements in technology and automation can allow for significant growth with smaller teams.
- The dichotomy between lifestyle and performance businesses might be oversimplified; there are many hybrid models that can offer both personal satisfaction and the potential for high financial growth.
- The assumption that lifestyle businesses limit growth potential may not always hold true, as some lifestyle businesses have found innovative ways to scale without compromising their core values.
- The idea that performance businesses inherently come with increased risk and stress can be challenged by pointing out that with proper management, risk mitigation, and a supportive culture, these factors can be significantly reduced.
- The financial upside of performance businesses is not guaranteed; many high-growth ventures fail to achieve their ambitious targets and can result in financial loss.
- The notion that lifestyle busin ...
Actionables
- You can clarify your business vision by writing a "Business Model Manifesto" that outlines your personal and professional goals, and how you envision your business supporting them. Start by jotting down what matters most to you in life and work, such as flexibility, financial goals, or the impact you want to have. Then, draft a manifesto that aligns with these values, specifying whether a lifestyle or performance business model suits you best. For example, if personal satisfaction and work-life balance are top priorities, your manifesto might emphasize a lifestyle business model that allows for a smaller, more manageable team and a focus on steady, sustainable growth.
- Assess your risk tolerance by creating a "Risk vs. Reward" chart to help you decide between a lifestyle and performance business model. On one axis, list potential rewards like revenue, personal satisfaction, and impact. On the other, list potential risks such as financial investment, stress, and time commitment. Rate each factor based on your comfort level and use this visual to guide your decision-making process. For instance, if you rate high financial investment and stress as undesirable, a lifestyle business might be your preferred path.
- Experiment with a "Micro-Model Test Run" by starting a small project or side hustle ...
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