← All ModulesModule 1.1  ·  $0–$250K Toolkit Mindset & Theory of Constraints
Opening

The Question

If you're taking on the outsized risk of owning a business... shouldn't you be reaping outsized returns?

A business making $100K/yr is a terrible business. You're making less than a good W-2 job with 10x the stress and risk. A good accountant has no reason not to be making $150K–$250K/yr.
The Target

Why $250K

The minimum threshold where the risk-reward of entrepreneurship makes sense.

$250,000
Revenue target
Federal + state taxes − $40K to $50K
Business expenses − varies
Take-home $150K – $200K
Our Mission

Speed-run to $250K/yr.

The entire toolkit is designed to get you there as fast as possible. Here's how we think about prioritization.

Theory of Constraints

The Core Principle

The concept that tripled Peter's business in 2025.

Every system has one critical bottleneck. Improving anything other than that bottleneck is an illusion of progress.

— Theory of Constraints (Goldratt)
The Analogy

Your Business Is a Pipe

Money goes in at the front. Profit comes out the end. Each stage is a valve.

Marketing
Money in
→
Sales
→
Onboarding
→
Delivery
→
Reviews
Profit out

Click any stage to mark it as the bottleneck

Marketing is highlighted — If leads aren't coming in, none of the other stages matter. Fix this first.
Correct Sequence

Fix Things in This Order

The Anti-Pattern

The Most Common Mistake

Working on the wrong bottleneck. Optimizing your onboarding process when you don't have enough leads to fill it. Improving service delivery when sales is the constraint. You feel busy — but you're not moving the needle.

The firms that scale fastest are the ones who can clearly identify their actual bottleneck — and focus on that one thing ruthlessly.

Diagnosis

Which Constraint Do You Have?

Supply Constrained

  • More demand than you can handle
  • Calendar is genuinely full
  • Turning away clients
  • Need more capacity to deliver

Demand Constrained — You

  • Plenty of capacity to deliver
  • Not enough people buying
  • Time spent on delivery, not growth
  • Need more leads and conversions
The Bottom Line

You Are Demand-Constrained.

If you're under $250K and priced correctly, there is no world in which you are supply-constrained. Every discretionary hour needs to go toward getting in front of more customers.
The one exception: If you're under $250K and your calendar is completely full — you're way undercharging. Fire your lowest-paying clients to make room for premium ones.
What This Means

What Prioritization Actually Means

You're not overwhelmed. You're under-prioritized.

— Alex Hormozi
This Toolkit
11 of 13 modules are about demand generation — pricing, offers, avatar, marketing, and sales.
Not This
Don't spend 4 hours improving your onboarding checklist when you have 2 leads in the pipeline.
Your Homework

Self-Diagnosis

Three questions to answer before moving on.

1
Supply or demand constrained?
Write down which one you are and why. Be honest. If your calendar isn't full at correct prices, you're demand-constrained.
2
What is your one narrowest valve?
Marketing? Sales? Onboarding? Pick one. Not two. The bottleneck that, if fixed, would have the biggest impact on revenue right now.
3
Time audit
How much of your week goes toward demand generation vs. delivery and admin? What needs to change right now?