Welcome back to Tom engineering. It's great to be with you and wherever you might be in this wonderful world. I hope everything is absolutely awesome. In this module, I'm gonna transform the way that you look at yourself the things you do, and how you make money for the rest of your life in your business. I promise you. Now, if you've watched my flagship program, thought engineering, you may remember part of this module from that.

However, this piece of content is so critical to you understanding your real income potential that we need to go over it again here. I'll be adding a number of more directly relevant points in this module that I didn't cover in thorough engineering. So please stay focused. A number of years ago, I was sitting at dinner with a group of business Simon is always mentoring. We were discussing a number of subjects over the night when one of the group who was having a very tough week out of frustration asked me a very direct question. How the hell do you make so much money for?

Now, a couple of people at the table thought the question was a little bit abrupt, even a little offensive because he was asked out of frustration, and the tone it was asked him was a little bit harsh, but it didn't bother me in the slightest, because I could see the David, the gentleman who asked me the question was approaching a snap point, which is awesome. Now, a snap point is that point in your life where you're so frustrated, you find yourself somewhere between wanting to scream and being completely disheartened and all perturbed. Basically, you just snap and you say I've had enough of this. I'm going to do whatever it takes to get out of this position. Now, I can assure you from personal experience and from entering many, many individuals to becoming millionaires, this is a great position to get to, because this is where real transformation takes place.

Anyway, back to the story. So I, I looked at David and I said this, David, it's actually really simple. I spend almost all of my working life engaged primarily in nexus point activities. And then I stopped. There was a salience at the table as everyone just stopped and looked at me, like a deer in the headlights waiting for further explanation of what an access point was. So I asked the waitress quite politely Could I write on the table, to which she abruptly said no in its own that my mother would probably use?

I don't think she realized I was only joking. She then bought me a piece of paper, and I explained it like this. So I said to the group, let me Start by asking you what makes a business tick, tell me all the things that you would do on a daily or weekly business with daily weekly basis, I should say in your business. Now, when I teach seminars and play this game with a live audience, everyone, just basically I get everyone to just call out all the things that they do. But obviously, we can't do that in this format. So I'm going to imagine that you've called them all out to me and that I've already written them down.

There's, there's no right or wrong answers here. And some of these may not be may not specifically apply to you, but you'll get the gist of what I'm getting to when I get to the end of this little game. So while I do this live, the list I usually end up with looks a little bit something like this, and here's one I prepared earlier. So the list usually goes like this accounts that you know T bass VAT monthly tax reports staff training, recruitment customer complaints, paying bills banking, reporting HR issues insurance phone calls, compliance, maintenance invoicing emails chasing debtors, repairs keeping creditors happy or happy. Claiming rosters budget stock control deliveries, wages permits, websites actual work on site, blah blah blah and the list goes on. It's never ending is it?

And let's dive in start on how much time people waste on things like Facebook, social media and all that crap. Then we have three other activities. We have these three other activities and they are sales, marketing and product innovation. Now clearly there are two distinctive and separate columns here. And you might be wondering why I separated these? Well, you see all the activities in the right hand column.

All the ones over here are what we call busy time activities. And all the items in the left hand column are what we call what we call income time activities. The critical difference here is this. busy time activities are as a general rule, consumptive activities and efficient Come time, activities are generative activities. You see in business, there are only three activities that generate income, sales, marketing, and product innovation. These activities are called nexus point activities.

Nexus point activities. And the ultimate key to making money in business is to remain focused and engaged primarily on nexus point activities. Because the only time that you or your business can make money is when you're engaged in a nexus point. And what is the nexus point? It is the collision point of opportunity where you or your agent hence your website, sales letter, salesperson, advocate Timing your marketing sales device etc. meets a client or customer, because it is only at that point that a client or customer can provide you with money.

Now, I'm not saying that all the busy time activities I list aren't necessary components. What I'm attempting to distinguish for you is the comprehension that none of these activities provide you with a nexus point opportunity, the opportunity to make money. Now, please allow me to clarify something very, very quickly. And then I'll get back to the content, incomplete truth product innovation is not technically a nexus point, activity. However, it is such a critical part of business development growth that I included on that side. Anyway, so as a business owner, you want to spend at least and I mean, at the very least 80% of your time focused on and invested and engaged in income time activities, sales and marketing and product innovation and product development.

Because it's only in that space that income can be generated, nothing else does. And without income, do you have a business? No. Every other activity in your business is expense related, either expense on your time or your money. And when you choose to engage in busy time activities, and I assure you it is a choice, primarily what you do is commit to spending your time however, when you choose to primarily engage in and structure your Your environment so you can focus on and primarily engage in income time activity, you commit to investing your time in activities that produce a direct financial return, and you will reap an incredible return on that conscious investment. The table that night, there were aha moments going off like fireworks on the Fourth of July.

And when I finished, I looked at David, and I respectfully asked him. So David, let me ask you the million dollar question. How much of your day is spent on busy time activity versus how much is invested in income time activities. David then sat back in his chair very calmly, and a smile started to appear on his face. You know, one of those nervous smiles that says I don't think I really want to answer that question. Anyway, After a minute itself, salience II actually said this, I think the answer would scare me.

And I can't believe how simple that is, and how much sense it makes. Now, there is a second component directly linked to this, that will actually transform the way that you look at yourself, your time, and your business instantly and forever. And if you really get this, it will transform your ability to generate income, wealth and freedom almost overnight. I have never done this exercise with a business owner where they didn't have a business altering aha moment. So let's cover it now. I have a very good friend called pay.

He genuinely is the loveliest hardest working gentleman you could ever meet. I was at his warehouse a number of months ago having a chat and I asked him what he was doing that day. And he said this to me. I have to clean my way. House Excuse me. Now, I actually know a lot about pizza business.

So I was able to ask the following straight off the bat p, your business turns over roughly $900,000 a year. Correct to which you agree. Now kk calculated over a 40 hour week and a 45 week ie the average business owners approximately 1800 hours in a year. So but 40 hours a week, 45 weeks a year approximately 1800 by user 45 week year for these calculations, because by the time you've had your holidays, public holidays, days off, etc. You usually only have on average a maximum 45 productive weeks and he so paid that means that your productive hourly rate is 900,000 divided by 1800 hours which equals $500 an hour, nice round number. If it's going to take you five to six hours to clean your warehouse, then then activity is going to cost you between two and a half and $3,000 For a job you could get done for 150 bucks on a Tosca p Where is your time better spent out speaking with clients getting orders, cementing relationships and expanding your opportunity opportunities engaged in $500 an hour income time activity or hate cleaning a warehouse involved in busy time activity.

Pages looked at me with a book and said, Wow, I've never ever looked at it that way. There please stay with me on this because if you can get this on a cellular level, everything whoops, everything changes. And I mean absolutely everything. Oops, we lost that one. That's okay. most business owners would look at the equation that I just did with P. And they would say, Okay, I understand that hourly calculation.

However, there is a far more profound way to look at this. Think about it this way. The only time you can actually generate income is while you're engaged in income time activities, which it is, then your hourly rate should only be calculated using your income time hours. Which means that if you've already calculate your hourly rate, as we did in the example with Pete, then you like almost all business owners have vastly miscalculated and underestimated your income potential as your annual value, I should say, as a business owner, look at it like this. When I calculated Pete's hourly income, right, I worked on him spending every hour of every week, that's 40 hours of every week only doing income time activity. But the fact is, that's nowhere near a reflection of the reality of Pete's situation.

In fact, when we broke it down, we could only find 10 hours per week, and that was being incredibly generous. That pay was engaged solely In income time activities, hence, a total of 10 hours per week times 45 weeks equals 450 income our income time hours per year not 1800. So he's income time hourly right? Being 900,000 divided by 450 hours, not 1800 was actually more like $2,000 per hour, which meant that cleaning his warehouse was actually a 10 to $12,000 activity. You see, most business owners never take the time to understand what their actual income Tom Olli right ease. And because I have no no tangible awareness or comprehension of the value of their time, they are unable to consciously choose to allocate it most productively.

And as a result, they spend vast amounts of time engaged in activities that are not supporting the productivity. Any profitability if you knew your actual income time hourly rate was $2,000 an hour, do you think you would still clean your warehouse? Or do your best your insurances, invoicing or any number of busy time activities? So let's let's go through the process. Let's actually define your income time hourly rate right now. So you can gain some perspective on that.

It takes less than a minute or so to calculate it. So let's do it right now. Okay, all right. Fantastic. Okay, first, how many income hours do you do in a day? hours that directly produce income says let's write that down.

I'll use four in my example up here. Okay. So now that you've come up with that number divided by two, because I guarantee you that you're being generous, so we're going to make that too. You can add it back later if you don't think it is now. Now the number of income times As you do a year, base it on a 45 week year because as I said earlier, but it's Tommy factoring, holidays, public holidays, Christmas, you know, days off, etc, that's about the absolute maximum that you get in any year and productive weeks in any year. So multiply your income time hours by five to get a weekly number.

So five, five gives us 10 and then multiply our 10 by 45, to get an annual number. So 10 by 45 equals 450 hours. In my example, whatever the number is that you're in, that's fine. So if your income time hours, two hours per day, times five per week times 45 equals 450 hours per year, income time, activity hours per year. Now take your yearly gross income and divided by your yearly income time hours. In my example here, I'm going to assume that My company generates 450,000 per annum just to make it easy.

So we've got 450 k bought by 450 hours. business income Tom hourly, right? $1,000 per hour. Okay? So now that you have your income time, hourly, right, whatever the number is at your end is fine. It doesn't matter whether it's higher or lower, whatever it may be, this is just an example.

But now that you've got that income, hourly rate, what I need you to truly grasp here is this. Every single hour that you spend on busy time activities is a loss of that amount. Why? Because you could have invested that time in income time activities and earn that much money. What I'm trying to bring to your awareness is that every hour you spend doing busy time activities, there is a loss that is building Because you are not engaged in focused on the nexus point on income time activity. And just because it doesn't appear on your p&l or balance sheet, doesn't mean it doesn't exist.

It doesn't mean that it isn't a real measurable and tangible loss, because it is. So going right back to what I said to David that night at the dinner table. When he asked me, How do you make so much money? The answer is very simple. I am acutely aware, acutely aware of my income, time, hourly, right. And because I am acutely aware of it, it dramatically alters how I view value and most importantly, how I apply my time.

And because of this awareness, I spend almost all of my working life engaged primarily in nexus point activities, income time activities, and as a result, I'm able to generate incredible amounts of revenue and income Please understand this, this equation is it's not a linear progression, you don't go from engaging five hours income time per week to 10 hours and expect to see a doubling in your income over time. Double your time engaged in focused income time activity, and I can assure you, you can expect to see your income multiply by a factor far greater than just two. Because it's an exponential equation, it builds on itself. So how does this help you? Well, simple. Now that you understand the critical difference between busy time and income time activities, and now that you know your income, time, hourly, right, now that we have that awareness, well, now you get to choose how productive you are going to be every day of your working life.

Now you will see all the mundane activities that you are allowing to consume your productive time in a home whole new light. And I hope that you are now truly gaining the comprehension that money is not hiding from you, you are hiding from me, whether consciously or subconsciously, by permanently spending your time engaged in mundane, busy time activities and busy time activities and by no uncertain terms assure you, it is absolutely a choice that you are allowing to occur. Okay. So let's take a break. Because that was that was another big piece of content. Whenever I teach this, I'm always asked, Well, where do I start?

Well, how do I get on top of this? Where do I begin? We've already started by simply watching and learning the knowledge in this module, but to help with cementing this learning I would like to give you an activity that will dramatically impact your act or your productivity relatively quickly within a couple of weeks. If you truly want to get control over your time, then as I've said several times, awareness is the first key. Included in this in this module is a simple download called income time busy time chart. It's a week broken down into 15 minute interval intervals.

Your job is to get a small electronic clock or timer. I did have one to show you but it's gone now and set it for 15 minutes, you can go online and get one line at a time line line, set it for 15 minute intervals and every 15 minutes you need to note on the income time busy time chart, whether you were doing income time, activity, hence nexus point activity or busy time activity. Then you can add up at the end of the week. So you can see where your time is being consumed. Now a couple of details to be aware of. Firstly, you don't have to do this.

But you do need to understand this universal law, that which remains then measured cannot be improved, because there's no basis upon which to gauge the improvement. Second, the measured information will only be as good as the data that you enter into. I've seen many individuals enter data into this exercise that is incorrect because they feel guilty or couldn't face the truth of the situation. Please understand, this has nothing to do with right or wrong or good or bad. This is about awareness and improvement is about optimization. This is about expanding your profitability and your prosperity.

And this is about your abundance and freedom. Yes, or Thirdly, I should say, Yes, I know that this will take some work to do but up choose to either live in blissful ignorance and live with the consequences of that action. Or you can get re you can get ahead of the game. I assure you however, the information and direction that this will provide you will be incredibly valuable, providing Of course, that you act upon it. Lastly, not only will this report tell you how your time is being allocated, income time or busy time, you'll be able to see with absolute clarity patterns of where your most productive times are and where interruptions most impact your day. And you'll be empowered to then managing and change or alter both.

Remember, clarity underpinned by knowledge is power. So in summary, the core focus of this module was one to bring your awareness to the theory of the nexus point where the money is and to, to clarify the true income value of your Time. Oh and one more thing to make you aware that in almost all cases, money is not hiding from you, you are hiding from it by being tied up in consumptive busy time activity. So let me ask you, are you going to allocate your time to consumptive busy time activity or generative nexus point, income time activities, because the choice is utterly yours. You have the power inside you right now, to influence where your time is allocated, and as a result, have an incredible influence over the productivity, the profitability and the prosperity of your company and your business and your life. Awareness is the first key and you're now away.

So I urge you take action and make the necessary changes to support your productivity prosperity and abundance. I assure you The result will be absolutely life changing. In the next module, we're going to speed things up substantially and cover a number of closely linked short, sharp and to the point concepts that will dramatically increase the time you have in your hands. And as a direct result, your income potential potential immediately. So, until we meet again in the next module, please basically think clearly and have an absolutely incredible day.