What strategies do you employ to maximize the yield from your personal energy?

Manage Your Energy, Not Your Time

Energy is paramount in life; without it, all operations cease. The common adage, 'that person or activity energizes me significantly,' is widely recognized. Strictly speaking, this assertion is not factually accurate. As human beings, our energy is derived solely from sustenance, hydration, sleep, and respiration, not from external individuals or engagements. Nevertheless, this perception persists.

Some individuals, after a conversation, leave you feeling revitalized and ready to tackle new challenges. Conversely, others, even after a mere five-minute interaction, deplete your energy entirely. I refer to these as 'energy vampires.' This latter category is prevalent, particularly once you become attuned to their presence.

Their motto is to promise extensively and deliver minimally, thereby sustaining a state of illusory contentment.

What is truly implied when one states that an activity or interaction provides significant energy is the identification of an opportunity for gain—specifically, the potential to acquire more energy. As humans, and particularly as entrepreneurs, we are inherently driven by the pursuit of gain and an aversion to loss. What, then, constitutes this gain?

Precisely, energy.

Energy, manifesting in the form of the 3 P's: Profit, Pleasure, or Prestige.

In our inherent creativity, humanity has devised a symbol for energy:

Money. Hence, capital.

Money, in essence, represents a claim on future energy, manifesting as labor, raw materials, or technology, for instance. The significance of money in our global economy directly correlates with the fundamental importance of energy. Through monetary exchange, one can acquire energy. Consequently, one can delegate tasks such as household cleaning, purchase fuel for transportation to obviate walking, or commission meal preparation at a restaurant. Money thus symbolizes all forms of energy within our existence.

What is EROEI?

Virtually all the energy we consume originates from petroleum. Within the petroleum industry, the acronym EROEI, representing Energy Return On Energy Invested, is commonly employed. This metric quantifies the energy yielded relative to the energy expended. In the context of oil extraction, it signifies the number of barrels of oil that must be invested to extract a single barrel from the earth. Thus, if one barrel of oil yields three barrels, the EROEI is positive; conversely, if two barrels of oil are expended to extract one, the EROEI is negative.

As an entrepreneur, one must also consider their personal EROEI. A higher personal EROEI correlates directly with increased contentment and professional success.

The entrepreneurial objective is to achieve maximum output with minimal input. This principle is often referred to by the contemporary term 'leverage.' What constitutes leverage? It is fundamentally the creation of the highest possible EROEI.

Eliminate Energy Vampires and Focus Exclusively on Energy Sources

Are you familiar with the 80/20 rule? This principle posits that 80% of your outcomes are attributable to 20% of your personnel, activities, and products/services.

How do you ensure the initial identification of this critical 20%?

Reflecting on 2015, compile a list identifying which individuals, activities, and products/services demonstrated a high EROEI versus those with a low EROEI.

In other words: which individuals, activities, and products/services generated substantial Profit, Pleasure, and Prestige, thereby acting as genuine energy sources, and which individuals, activities, and products/services constituted or continue to constitute true energy vampires.

Upon compiling the aforementioned list, it will immediately provide clear insights.

To achieve a higher EROEI, the imperative action is to immediately eliminate energy drains and henceforth concentrate solely on energy sources.

What are the dividends of an elevated EROEI?

Attaining greater entrepreneurial success and experiencing enhanced personal fulfillment.

This is the ultimate objective we consistently strive for.