The Three Energy Sources Every Business Needs to Survive

Greetings Operators!

Long term success in scaling a business is dependent on not running out of energy.

Businesses need energy too, and sometimes we get so focused on optimizing what’s there, we end up starving the business.

Here’s a way to think about what goes into the business, creating a self sustaining machine.

MAIN ISSUE
The Three Energy Sources Every Business Needs to Survive

Think of your business as a closed system. Without consistent energy injections, it will eventually wind down and die. Most leaders focus on outputs—revenue, products, marketing—but the real game is managing your inputs.

Your business needs three critical energy sources flowing in continuously, or you're running on borrowed time.

The Energy Framework: 3Ps (People, Pulse, Pipeline)

1. People Energy

The best businesses are talent magnets. You need systematic ways to:

• Build relationships with top performers in your industry

• Attract future employees, partners, and strategic allies

• Connect with centers of influence who open doors

This isn't just hiring—it's creating a company culture that naturally draws exceptional people.

Great people become your future leaders, decision-makers, and problem-solvers. They compound your growth.

2. Pulse Energy (Information)

In today's market, outdated information kills companies. You need fresh intel flowing in about:

• Industry trends and shifts

• Customer behavior changes

• Competitive movements

• Emerging opportunities

Information becomes strategy. Strategy becomes decisions. Decisions compound into market advantage.

3. Pipeline Energy (Leads)

Leads become customers. Customers become cash. Cash funds growth. Without systematic lead generation, you're slowly dying.

Most cash flow problems trace back to either poor lead flow or poor operations. Fix the pipeline first—everything else gets easier.

💡 Quick Win for Next Week

Pick one energy source that's weakest in your business right now. Spend the next 30 days building one systematic process to improve it:

• People: Start a monthly coffee chat with one industry leader

• Pulse: Set up three industry newsletters and one competitive intelligence routine

• Pipeline: Create one new lead generation experiment

Focus on systems, not one-time efforts. Energy needs to flow consistently.

🔥 Hot Take of the Week 

Most businesses fail not because they're bad at what they do, but because they're terrible at managing their energy inputs.

They focus all their attention on outputs while slowly starving themselves of the fuel they need to grow.

What's Working for You?

Hit reply and let me know: Which of these three energy sources is your biggest weakness right now, and what's one system you could build this month to start fixing it?

OWNER’S CORNER
Stop Overpaying Taxes: How to Pay Yourself Smart

Most business owners are throwing away thousands in tax savings because they haven't thought strategically about their own payroll.

Know Your Legal Options

Your business structure determines payment methods.

• Sole proprietors and LLCs can take "owner's draws" directly from profits. But here's the catch: you'll pay 15.3% self-employment tax on net earnings over $400.

• Corporation owners face different rules. The IRS requires S-corp shareholders who work in the business to take "reasonable compensation"—essentially what you'd pay someone else to do your job. C-corp owners must also take salaries, but face double taxation.

Three Immediate Wins

Consider S-corp election. This lets you split income between salary (facing payroll taxes) and distributions (avoiding self-employment tax). A $150,000 earner taking $75,000 salary and $75,000 distributions saves roughly $11,475 annually in self-employment taxes.

Solo 401(k) for no-employee businesses. If you have no employees (except possibly a spouse), solo 401(k)s allow up to $70,000 in annual contributions under age 50. Available to sole proprietors, LLCs, partnerships, and corporations with no employees. That's an immediate tax deduction potentially worth $15,000-$25,000.

Claim your QBI deduction. Available to pass-through entities (sole proprietors, partnerships, LLCs, S-corps), this lets you deduct up to 20% of qualified business income. Phases out for single filers over $191,950. On $100,000 income, that's $4,000-$7,000 in savings most miss.

Take Action

Start with a business-focused CPA consultation. These aren't loopholes—they're legal strategies written into tax code.

The entrepreneurs building wealth pay attention to how they pay themselves.

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