Cracking value driven transactions
I am Aarihant Aaryan! Welcome to the Iron Sharpen Iron newsletter,
I share my weekly homework from my startup journey, learning about human behaviour, and sometimes decoding industries and business models for fun.
I can’t control my curiosity :) )
Efficiency is the most valuable currency in the world
The world transacts using currency of efficiency
Once you create efficiency people will start giving you “what’s valuable for them” in exchange for efficiency
Efficiency is doing things faster with a higher output and constantly improvising that
A disproportionate amount of efficiency is created when a group of efficient people come and work together
Why most humans are Inefficient:
Most humans are sluggish, they create efficient solutions because they want to save energy constantly
But the problem with lazy people is they can’t scale those efficient solutions as they lack ambition
It's absolutely hard for humans to raise the bar as they don't understand what is the bare minimum
Next time when you want to do something try using ChatGPT, it should be telling you what's the bare minimum and do more than what Chatgpt did!
Hard-working people keep hustling, make sure they spend all their energy and make things happen using conventional processes or old processes - which is an inefficient way of doing things
They are so caught up in making things happen, that they are blind and do not spot “anomalies”- They are ambitious but don’t have the efficiency to scale
Efficiency in animals:
Animals hunt based on a simple theory - The energy earned after hunting should be “net positive” to the energy burnt by hunting
So if they don’t sense the energy earned is going to be net positive post-hunting, they don't hunt.
For animals, efficiency is to decrease the energy spent on hunting which will eventually increase their net positive rate
How do you build efficiency?
Build a disproportionate understanding of something that interests you:
Increase your number of experience in a day/week/month/year - it’s no longer about years of experience. It’s all about the number of experiences you have in a certain period.
When you have better experiences it will help you build disproportionate understanding.
You will be able to see what others can’t
Hack: Chatgpt is a wonderful tool that you can leverage to increase your learnings per day.
Probably aim to learn 10 new things a day from chatgpt - in a year you would have easily discovered/learned 3,650 new things.
When you have a disproportionate understanding, you will predict second-order effects
Second-order effects mean Every action has a consequence, and each consequence has another consequence
Build a core interest circle of 4/5 friends who share the same passion and love for the subjects, and keep sharing notes - this will multiply your learnings
Execute your insights, Insight that isn’t executed is just a theory, it’s like you know something but you didn’t experience it
What happens when you become efficient:
When someone is inefficient they become blind, they don’t see anything in their lives as a problem. They feel it is normal.
Most people felt the education system was all good but it took an efficient solution like chatGPT to tell the world that our education system is inefficient.
when you have a disproportionate understanding, you will create disproportionate efficiency, you will see what others can’t - you will spot anomalies like no one else.
From a distance, things look smooth, but when you learn and build understanding, and get close to the subject, you'll notice it's full of gaps (anomalies)
People who tend to spot anomalies, also end up solving them.
If you have any thoughts share them in the comments :)
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