Ah, leverage—the fulcrum behind some of the world's greatest feats. Whether you are building a megalithic structure or a world-changing start-up, leverage amplifies your input force to maximize output impact. We're going deeper into what you can do to unlock your personal and economic impact in the world. Here are Superstruct's Four Laws of Leverage—guiding principles designed to catapult your personal and business success to new heights.
"Give me a lever long enough and a fulcrum on which to place it, and I shall move the world." – Archimedes
To thrive in today’s dynamic economy, especially as a business owner, you must harness the transformative power of leverage across multiple dimensions.
Superstruct's Four Laws of Leverage:
Know Yourself, Invest in Yourself
Cultivate Energetic Exchange
Raise Revenue First
Stack the Right Capital
Knowing and investing in yourself forms the bedrock, enabling you to harness your personal strengths and fortify your weaknesses. Cultivating a circle of influence amplifies your potential by surrounding you with individuals who challenge and uplift you.
Prioritizing revenue generation first ensures sustainable business growth while maintaining ownership and needlessly giving away your power and control. Lastly, stacking the right capital optimizes your financial foundation, accelerating growth while safeguarding ownership. By integrating these four laws of leverage into your life and business, you set the stage for exponential growth and enduring success.
Law 1: Know Yourself, Invest in Yourself
To truly succeed in business and life, the first and most critical step is knowing yourself. This goes beyond simply understanding your strengths and weaknesses—it means cultivating a deep sense of self-awareness, identifying your zone of genius, and confronting your bad habits head-on. When you invest in your own growth—whether through building emotional resilience, setting clear boundaries, or nurturing your intuition—you unlock the ability to make smarter decisions and leverage yourself for long-term success.
Personal Clarity as the Foundation of Leverage
Understanding your core values, beliefs, and motivations is the foundation for creating leverage in both your personal and professional life. Life evolves and motivations change but values settle and begin to cement firmly in place.
I found out the hard way that personal clarity is not a maybe but a must. I've fallen flat on my face multiple times in my personal life and business ventures. Through rigorous self-reflection and a steadfast commitment to growth, I found my strengths, weaknesses, and aspirations. This clarity enabled me to focus on areas where I could make the most significant impact on a daily basis.
Knowing my strengths illuminated my limitations. By recognizing what I was not good at, I began to delegate those tasks which freed my time and energy to concentrate on tasks that delivered results.
I was resistant to self-reflection at first but when I got honest with myself success unfolded. I built a big life and I feel like I am just getting started at age 46. I helped lead a company to a 9-figure exit, I served as a capital firm executive and empowered a diverse portfolio of disruptors, and now I am breaking ground on what I believe will be the next world-shifting movement in business investment - more to come on this project in later articles.
In your clarity journey, start with a personal SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to gain clarity. This exercise isn't just a business tool—it's incredibly effective for personal growth. Pair this with regular self-assessment and reflection to stay aligned with your evolving strengths and goals. Personal branding frameworks like The Four Cs (Clarity, Consistency, Communication, and Connection) can also be invaluable in this process.
Remember, your personal brand is one of your most powerful assets. Cultivate it by showcasing your strengths and mitigating your weaknesses. Use visualization and goal-setting strategies to help break through any self-imposed limits and propel your personal growth forward. By diving deep into your zone of genius and strategically managing your weaknesses, you'll create a powerful leverage foundation for both your personal and professional endeavors.
Breaking Bad Habits and Developing Good Ones
Bad habits are often the silent saboteurs of progress. Identifying and breaking these habits is crucial for anyone looking to harness their full potential. Acknowledge the behaviors that hold you back. I had to take an honest look in the mirror to recognize that behaviors around procrastination and overcommitting were holding me back from the person I want to become.
Mindful decision-making is my answer to overcoming my short-comings. My go-to framework is the “Start to Continue” practice. This method involves regularly evaluating what’s working and what needs to be adjusted or let go. This can happen on a daily, weekly, and monthly basis depending on the size of the project. By consistently revisiting your actions and choices, you create a dynamic environment for personal growth.
Resilience is a key component in developing good habits. It’s about bouncing back from setbacks and continuing to push forward. I will fail but I will not dwell, that is a useless channeling of my personal energy. Instead I want to be proactive and cultivate habits that set me up to make the best decisions possible. This can include anything from setting aside time for daily exercise to practicing mindfulness techniques. These practices not only enhance mental clarity but also provide the stamina needed to pursue goals relentlessly.
Building Resilience, Setting Boundaries, and Trusting Intuition
Leverage isn’t just about doing more; it’s about doing better with what you already have. This principle underpins the importance of resilience and setting boundaries to protect your energy and focus. By building resilience, you enable yourself to bounce back from challenges and setbacks more quickly. This resilience is often cultivated through experiences and by developing a mindset that reframes negative thoughts positively.
I have to set healthy boundaries in both personal and business relationships to have enough energy to persist through the peaks and valleys of growth. These boundaries aren’t just physical or time-related; they are emotional and intellectual as well. They serve as a protective barrier that ensures I am focusing my energy where it matters most and not getting sidetracked by distractions or draining influences. This sometimes meant making tough decisions, such as ending personal and professional partnerships that no longer aligned with my goals or shifting priorities when necessary.
Trusting your intuition is another powerful tool for leverage. Deep self-awareness and clarity about who you are enable you to have confidence in your gut feelings. When faced with uncertainties, a strong connection to your intuition can guide you toward the best outcomes, reinforcing the strength of your boundaries and the resilience you’ve cultivated.
I simply ask myself: “I am taking care of myself right now? If so then my intuition is online and I can trust my inner voice.”
Practical Actions for Knowing Yourself, Investing in Yourself
Step 1: Identifying Strengths, Weaknesses, and Zone of Genius
Start with a self-assessment. Ask yourself three key questions: What is no longer serving me? What excites me that I haven’t fully explored? What’s already working well? Write down your answers and look for patterns that emerge.
Next, test your strengths in real life by taking on new projects or responsibilities that align with your talents. Ask for feedback from trusted colleagues or friends to confirm where you’re thriving. Once you have a clear idea of your strengths, start integrating them more into your work.
Step 2: Breaking Bad Habits and Setting Good Ones
Start by identifying habits that are holding you back. Track your daily habits for a week, and look at how they align with the strengths and goals you identified in step one. Write down the three most unproductive habits you want to break.
Replace these habits with new, positive ones. Use the habit loop method: identify the cue that triggers the bad habit, choose a new routine to replace it, and reward yourself when you successfully complete the new habit.
A good example could be when the urge to indulge in a vice like sugar, nicotine or alcohol comes up. Tell yourself I am going to do 10-minutes of breath work (use a YouTube video like the Wim Hof Method). This activity will change your physical state of being and like curb the urge. If it doesn’t do something more rigorous but the point is, change your state of being. I mention breathwork because it is something you can do everywhere if you have a smartphone (except driving, don’t do it driving!).
Start with one habit at a time to avoid overwhelm. You might also find an accountability partner or use an app to track your progress and stay on track.
Step 3: Building Resilience and Setting Boundaries
To build resilience, incorporate self-care into your daily routine. This could include exercise, meditation, or journaling. Embrace challenges that push you outside of your comfort zone to help develop mental toughness. View setbacks as opportunities for growth.
Set clear boundaries for yourself, whether in terms of time, personal space, or emotional energy. Communicate these boundaries to the people they affect and practice saying no when necessary. Enforcing boundaries will help protect your energy and focus.
Boundaries require repetition. This may sound rude but I have grown to love saying “no” to people. It is a reflection of how I value myself. That said, I love serving and helping people so I find myself saying “yes” far more often than I say no but you get the point.
Step 4: Reflect and Adjust Regularly
At the end of each week, take time to reflect on your progress. Review your self-assessment, habits, and boundaries. Are you seeing improvements? Where do you need to adjust? Be flexible and willing to change your approach as you grow. Growth is not a straight line, so allow yourself the space to pivot when needed.
By following these steps, you’ll be able to tap into your strengths, break bad habits, build resilience, and set boundaries. Over time, this consistent investment in yourself will lead to meaningful personal and professional growth.
Law 2: Cultivate Energetic Exchange
In business and in life, success is rarely a solo endeavor. As much as personal growth is crucial, the relationships you build and the network you cultivate are equally essential for leveraging opportunities. No one thrives in isolation, and understanding how to surround yourself with the right people can unlock your next level of success. Let’s break down how to create and cultivate your circle of influence.
Curate Your Network Intentionally
Building a meaningful and supportive network starts with intentionality. You cannot rely on chance encounters or social happenstance to find the people who will help you level up. Instead, be strategic about the relationships you nurture. Ask yourself, “Who are the people who challenge me, inspire me, and open doors to new possibilities?”
One key to this is recognizing that not all relationships are created equal. Many of us fall into the habit of maintaining relationships that do not contribute to our growth, whether in business or life. These “comfortable” friendships can create a false sense of security but ultimately hold us back from expanding our influence. Partnerships that do not align with our vision or challenge us to grow become dead weight. In fact, a healthy circle of influence should consistently elevate you—whether that’s by offering fresh perspectives, new knowledge, or simply expanding your horizons.
Take Action → Identify who in your network pushes you to grow and who holds you back. Begin phasing out the relationships that don’t serve your bigger picture. Simultaneously, start seeking out communities, mentors, and peers that operate at a level just above your current sphere, as these people will stretch you beyond your comfort zone.
Invest in Relationships That Bring Value
We often think of networking as a transactional act: exchanging contact information at conferences or business events with the vague hope that the relationship will eventually “come in handy.” However, this mindset can be limiting. Real influence doesn’t come from shallow, transactional exchanges. It is built through deep, meaningful relationships—the kind that can only be developed over time and through genuine investment in the other person.
When you approach networking, focus on adding value first. What can you offer others? How can you support their goals? Whether it’s sharing a resource, offering insight, or simply listening, the key is to develop relationships that are built on reciprocity and mutual benefit. The stronger and more genuine your relationships, the more leverage they will bring in the long run.
I don’t need people who just ‘hang out’ with me—I need people who challenge me, teach me something different, and expand my worldview. Whether it’s friendships, business partnerships, or mentorships, the quality of your relationships will dictate the quality of your network.
Take Action → Start by auditing your relationships. Are you investing in people who inspire you and offer you growth opportunities? Make a conscious effort to strengthen the bonds with these individuals by offering them value, whether through advice, collaboration, or simply supporting their ventures.
Leverage Networks to Create Opportunities
One of the most critical aspects of cultivating a circle of influence is using your network to create leverage. Relationships are your access points to new opportunities, and the more diverse and expansive your network is, the more doors you can open. In many cases, it’s not just about what you know, but who you know.
Throughout my career, my ability to leverage relationships has been instrumental in creating business opportunities. For example, when exploring new ventures, I strategically partnered with people are brilliant in ways that I am not. By connecting with people who complement my strengths, I am able to tap into new industries, markets, and knowledge, ultimately expand my sphere of influence.
Moreover, networks aren’t just about direct benefits; sometimes, they serve as mirrors. The people you surround yourself with reflect who you are or who you are becoming. The network that your partner or friends bring into your life is a reflection of them—and, in turn, of you. This is why cultivating a circle of influence isn’t just about adding more people to your orbit—it’s about surrounding yourself with individuals whose energy and values align with your aspirations.
Take Action → Start viewing your relationships as assets. Where can they lead you? Are you aligning with individuals who open up your world and challenge your thinking? Seek out ways to connect with individuals who can complement your skills and strengths, and work toward mutual growth.
Host and Curate Experiences for Growth
Another way to expand your circle of influence is by creating spaces for meaningful connections to form. This could be something as formal as a business mastermind group, or as casual as hosting a dinner party where you bring together people from different industries and backgrounds. By curating these spaces, you position yourself as a connector and facilitator, making you a more integral part of other people’s networks.
One of the things I value most in my life is salon gatherings that I organize. I gather a group of women together in my apartment in New York City and the common thread is not just professional ambition, but a shared desire to change the world. Through these gatherings, we’ve built powerful communities where like-minded women can exchange ideas and collaborate on innovative projects.
I ensure that I am continually expanding my network, while also investing in the relationships of the people around me. You don’t have to wait for networking opportunities to come to you—you can create them. When you intentionally bring people together, you’re able to influence the narrative and the opportunities that arise from those interactions.
Take Action → Host a gathering, whether it’s virtual or in-person, where you bring together people you admire from different areas of your life. Aim to facilitate meaningful conversations and create an environment where ideas and opportunities flow freely. Over time, you’ll cultivate a reputation as a connector, which will amplify your influence in both social and professional spaces.
Developing a Reciprocal Circle of Influence
The final piece of cultivating a circle of influence is ensuring that your relationships are reciprocal. This means that both parties are growing and benefiting from the connection. It’s not about one person doing all the giving and the other all the taking—it’s about lifting each other up.
I prioritize relationships where there is mutuality. What are you bringing to the table? What is the other person offering you in return? These are essential questions to ask when developing your network. By focusing on relationships where both parties are equally invested, you create a dynamic where everyone wins—and that’s where real leverage comes into play.
Take Action → Strengthen your relationships by making sure they are mutually beneficial. Reflect on what you are giving and receiving in your key relationships. If there’s an imbalance, take steps to correct it. Ask yourself how you can add more value to others, and in turn, how they can continue supporting your growth. The relationships you cultivate today will shape the opportunities you have tomorrow. Choose them wisely.
Law 3: Raise Revenue First
Raising revenue isn’t just about making sales—it’s about proving your business’s value, both to the market and to potential investors. Before diving into the world of capital raising or complex financial strategies, you have to focus on generating revenue. This isn’t just about turning a profit, but about truly understanding your customer, refining your product, and ensuring the market wants what you have to offer. It’s a litmus test that gives you tangible proof of concept and demonstrates that your business is viable.
From my experience, too many businesses look to outside capital before they’ve even nailed down what they’re selling. They get stuck in this trap of focusing on funding when they should be focused on getting the product or service right. Investors want to see resilience, adaptability, and proof that the market is willing to pay for what you’re offering. They want to invest in a business that has already made its first sale, a business that knows how to generate income, even in a small capacity. Why? Because raising revenue first shows that you’re not just throwing ideas at the wall—you’ve taken something to market and it’s working.
Think of raising revenue as building a bridge to your next step. It allows you to raise capital from a position of strength, where you’ve already done the hard work of refining your product, understanding your customer, and beginning to build a sustainable cash flow. This also means you can approach capital-raising from a more powerful position because you’re not asking for money to learn or experiment—you’re asking for money to scale what’s already working.
The Importance of Proving Your Concept
A critical piece of raising revenue is proving your business model. You can have the best idea in the world, but if you can’t translate it into something people want to buy, then it’s just that—an idea. Whether you’re selling a product, a service, or a membership, the focus needs to be on selling it effectively and repeatedly. It’s about testing, refining, and figuring out how to drive consistent revenue. What you’re aiming for is a repeatable business model where you know that every dollar spent will bring in a predictable return.
One of the biggest mistakes I see founders make is assuming that just because something works on a small scale or with their initial network, it will automatically translate to larger success. This assumption is dangerous because it leads to overspending on marketing or infrastructure before they’ve truly proven their business. Until you’ve refined your sales process and know your customer acquisition costs, spending large sums of money can quickly backfire. It’s essential to focus on nailing down a clear path to revenue before scaling up.
Sales as the Core Engine
At the heart of raising revenue is the sales engine of your business. You’ve got to put in the work to make those first sales, whether it’s calling people, networking, or offering discounts. Sales don’t happen by magic; they happen by having a great product and doing the work. Whether you’re a founder, executive, or small business owner, mastering the basics of selling is a non-negotiable part of business success.
When it comes to getting those initial sales, think outside the box. One example I often use is a businesswoman I worked with who needed to raise $100,000 to renovate her business space. Instead of immediately turning to loans or investors, she looked at her email list of 10,000 people and asked, “What can I sell to them to raise this money?” Her answer was to create a special offering, a limited-edition membership that raised enough capital from her existing network to fund her renovations. She didn’t wait for someone to fund her; she created the revenue herself.
This is the kind of creative thinking that separates those who succeed from those who don’t. Too often, founders feel that they have to follow the conventional methods of funding—VCs, angel investors, bank loans—but the reality is that raising revenue can happen through a variety of means. It can be as simple as selling memberships, creating a new product line, or offering limited-time experiences to generate quick cash.
Why Investors Want to See Revenue First
I’ve sat on both sides of the investor table, and here’s the hard truth: investors are not interested in funding your learning curve. They want to put their money into something that’s already moving, something that’s been proven in the market. When you approach investors with revenue already coming in, you’re showing them that you’ve figured out the basics. You’re saying, “I have a product people want, and they’re willing to pay for it.” That’s what makes them sit up and take notice.
Investors want to see that you’ve gone through the fire—made some sales, dealt with the hiccups, and refined your product or service along the way. It’s not just about having an idea; it’s about showing that you can execute that idea. The fact is, anyone can come up with a concept, but not everyone can take that concept to market, prove it, and start generating revenue. Investors want to see that you’ve done the work, so they can feel confident that their money is going toward something that’s already been proven to work.
Focus on a Minimum Viable Product (MVP)
Part of this process means focusing on creating a Minimum Viable Product (MVP)—the simplest version of your product that can go to market and be tested. Too often, entrepreneurs get bogged down in creating the “perfect” product and never actually launch. They waste time and money perfecting something that could have been tested with real customers months earlier. Your MVP doesn’t need to be perfect; it needs to be functional. From there, you can iterate based on real-world feedback.
This iterative process allows you to build a more robust product based on actual market needs, not just assumptions. The faster you get something into the hands of customers, the faster you can refine it and make it better. Investors want to see this kind of hustle and adaptability.
Prove It or Pivot
If you’re not able to raise revenue from your product, it’s time to ask hard questions. Is this the right product? Is it the right market? Does the sales process need refining? Raising revenue first gives you the space to ask these questions early, without the pressure of investor expectations. If you’re not hitting the marks you need, then it may be time to pivot or adjust your strategy. But you need real-world data—revenue data—to make those decisions wisely.
Scaling Comes After Revenue, Not Before
Once you’ve proven your product, raised some initial revenue, and refined your model, then you can begin to scale. This is when it’s time to start looking at external capital. But too many businesses try to scale prematurely, without having a foundation in place. If you focus on raising revenue first, scaling becomes a natural extension of what you’ve already built—not an experiment. Investors want to scale a proven system, not fund a hypothesis.
In summary, raising revenue first is the most critical aspect of leveraging your business’s potential. It not only validates your product or service but also puts you in a strong position to attract investors, allowing you to raise capital from a position of strength. It forces you to get to know your customer deeply, refine your product, and make sure your sales process is airtight. Only then are you ready to scale up and bring in external capital.
Action Steps for Raising Revenue First
Start Small and Sell Something: Begin by identifying a product or service that you can bring to market immediately. It doesn’t have to be your final, polished idea—just something that serves an immediate need. Don’t overthink it, but ensure that it offers real value to your customers. Getting started, even if it’s imperfect, will provide crucial market feedback.
Identify Your Ideal Customer Profile (ICP): Understand exactly who you’re selling to. Take the time to research your target audience, gather insights on their pain points, and make sure your product addresses a real, tangible problem for them. This will help you tailor your sales messaging and approach.
Test and Iterate: Once your product is out there, don’t just sit back. Analyze the results—what’s working, what’s not. Make quick adjustments based on feedback. Pivot if necessary, but always with a data-driven approach. Your first version is likely not your final version, and the market will guide you toward improvements.
Track Metrics and Create a Sales Funnel: Begin with simple metrics like cost-per-acquisition, lifetime value of a customer, and customer retention rate. Use these to fine-tune your approach. Develop a basic sales funnel: attract leads, nurture them through your funnel, and convert them into paying customers.
Avoid Overinvestment Before Validation: Hold off on seeking large sums of capital until you’ve validated your product through revenue generation. The revenue-first model provides concrete evidence that your idea works, reducing risk for investors. Additionally, it will give you more leverage in negotiations when you do raise capital.
Focus on Recurring Sales: Prioritize finding a product or service that generates repeat purchases or recurring subscriptions. This is where true business stability comes from. One-time sales may help you survive, but consistent revenue is what will allow you to thrive and grow sustainably.
Refine Your Messaging: Craft clear and compelling messaging around your product that resonates with your target audience. Your story and brand narrative can be just as important as the product itself. Ensure that you’re conveying the unique value proposition in every interaction with potential customers.
Make the First Sale and Scale: Once you’ve made the first sale, repeat that process. Focus on scaling your operation step by step. Build a process around sales, delivery, and customer service so that you can replicate the experience for more customers without losing quality.
Law 4: Stack the Right Capital
In business, the concept of capital is far more multifaceted than many realize. It’s not simply about having money in the bank—it’s about understanding how to leverage different types of capital and stack them strategically to maximize growth and sustainability. Whether you’re raising capital for a new venture or expanding an existing one, the key lies in understanding which forms of capital to use, when to use them, and how to combine them effectively.
To thrive in today’s market, especially one where venture capital and traditional financing models may be scarce or difficult to access, entrepreneurs must think beyond the obvious funding routes. Raising revenue first is crucial, but when you’re ready to take that next step, stacking capital properly can make or break your future success.
Step 1: Understand the Different Types of Capital
Not all capital is created equal, and understanding the various types available to you is the first step in leveraging them to your advantage. Below are the most common forms of capital you might encounter:
Equity Capital: This is what most people think of first. Equity capital refers to selling a percentage of your company in exchange for cash. Venture capitalists and angel investors typically provide equity capital, betting on your growth in exchange for a share of future profits or exit valuations.
Debt Capital: Unlike equity, debt capital doesn’t require giving up ownership. Instead, it involves borrowing funds that must be repaid, often with interest. This can include business loans, lines of credit, or bonds.
Revenue-Based Financing: This form of capital is becoming increasingly popular. Instead of repaying a fixed loan, you repay a percentage of your revenue until the investment is returned. It’s highly flexible and more closely aligns the investor’s interests with the entrepreneur’s growth.
Grants: If your business contributes to societal good or falls under certain industry categories (such as clean energy or education), grants can be a powerful source of non-dilutive funding. These are often provided by governments, nonprofits, or industry-specific organizations.
Crowdfunding: Platforms like Kickstarter or GoFundMe enable you to raise capital from everyday individuals who believe in your product or service. In some cases, this involves offering early access to your product or other rewards in exchange for financial support.
Working Capital: Day-to-day operational funds fall under working capital. This form of capital ensures you can meet your short-term obligations, such as payroll and bills. It’s the oxygen that keeps your business running smoothly.
Step 2: Match the Right Type of Capital to Your Business Needs
Once you understand the different types of capital, the next challenge is matching them to your specific needs at different stages of your business journey. There’s no one-size-fits-all approach, and depending on the nature of your business, you might find that equity capital makes sense at one point, while debt or revenue-based financing makes more sense at another.
Early-Stage Ventures (Proof of Concept and MVP Development):
At this stage, grants or crowdfunding are often ideal. These forms of capital allow you to test your product or service with minimal financial risk.
Equity capital might also work for highly scalable startups. However, be cautious about giving away too much ownership too soon.
Growth Stage (Scaling and Expansion):
Once you’ve proven your concept and are generating revenue, consider debt capital to fuel further expansion. Business loans can provide the cash infusion you need without diluting your ownership.
Revenue-based financing is another excellent option at this stage, especially if you’re looking for flexible repayment terms that adjust with your revenue streams.
Mature Stage (Sustainability and Market Leadership):
Equity capital becomes increasingly attractive at this stage, particularly if you’re seeking large-scale investment to solidify your market position or to fund an acquisition.
Continue utilizing debt capital to fund day-to-day operations and expansions, as your business’s creditworthiness will likely be stronger at this point.
Step 3: Leverage Capital Stacking
The power of stacking capital lies in diversifying your funding sources. Each form of capital brings different benefits, and when used together, they create a more resilient, flexible foundation for your business. Here’s how to effectively stack capital:
Begin with Grants or Revenue: Non-dilutive capital, like grants, is a great first step. It allows you to maintain control over your company and build your revenue streams. For instance, secure a government grant or philanthropic funding that doesn’t require repayment.
Layer on Debt Capital: As your business starts to generate revenue and your creditworthiness improves, you can add debt capital. Debt can help you expand without giving up equity. For example, you might take out a business loan or use a line of credit to fund a marketing campaign or a new product launch.
Utilize Equity Capital for Strategic Growth: When you’re ready to scale aggressively or pursue new markets, it’s time to consider equity capital. This is where you bring in investors who provide large sums of money in exchange for a share in the company. But remember, equity should be used wisely and strategically—it’s the most expensive form of capital, as you’re giving up ownership in your business.
Incorporate Revenue-Based Financing: For businesses with consistent revenue but hesitant to take on traditional debt, revenue-based financing offers a flexible solution. You can raise capital without giving away ownership and repay the investment based on your revenue performance. This works particularly well for product-based businesses where sales cycles can vary.
Step 4: Avoid Common Pitfalls When Stacking Capital
While stacking capital can provide flexibility and growth, there are potential pitfalls. To avoid common mistakes, keep the following principles in mind:
Don’t Rely on a Single Source: If your business relies on only one form of capital—whether equity or debt—you risk becoming vulnerable if that source dries up. Stacking different types of capital creates a cushion that diversifies your financial risk.
Manage Debt Carefully: While debt can be a great tool, too much of it can over-leverage your business. Always ensure that your revenue projections can comfortably handle debt repayments. Remember, debt is only an advantage when it can be managed sustainably.
Beware of Dilution: Equity capital might seem attractive, especially when large sums of money are involved. However, giving away too much of your company early on can dilute your control over decision-making. Be strategic about how much equity you’re willing to give up.
Think Long-Term: Stacking capital is about sustainability. Don’t just think about your short-term needs. Look at how your business will grow over the next three, five, and even ten years. Ensure that the capital you’re stacking aligns with your long-term vision.
Step 5: Partner with the Right Investors
Just as important as the capital itself is who you bring to the table. Investors are more than just financial contributors—they can become long-term partners who offer strategic guidance and open doors to valuable networks. Here’s how to choose the right ones:
Seek Aligned Values: Look for investors who share your long-term vision. They should not only believe in your product but also understand and support the culture you’re building.
Leverage Investor Expertise: The right investors can provide more than just money—they bring experience, advice, and connections that can accelerate your growth. Choose investors who offer the kind of support that complements your strengths and fills in gaps in your expertise.
Prioritize Patient Capital: Some investors—particularly family offices and certain impact funds—are more patient with their returns, meaning they’re willing to wait for long-term results instead of expecting immediate payoffs. This kind of capital can be a game-changer, especially for businesses with longer growth timelines.
Step 6: Reassess and Adapt Your Capital Stack Over Time
Your capital needs will evolve as your business grows. The forms of capital that were appropriate in the early stages might not make sense when you’re scaling or preparing for an exit. It’s critical to continually reassess your capital stack as your business matures.
Pivot When Necessary: As markets change or your business evolves, you may find that you need to pivot from debt to equity or from equity to revenue-based financing. Stay agile and willing to adjust your capital strategy as your circumstances shift.
Monitor Market Conditions: External factors, like interest rates and investor sentiment, can impact the availability and cost of different types of capital. Keep a close eye on the broader economic landscape to ensure you’re stacking capital at the right time.
The Power of Stacking the Right Capital
Stacking the right capital is about more than just raising funds—it’s about crafting a strategy that aligns with your business’s unique needs, challenges, and growth trajectory. By stacking different forms of capital—whether it’s equity, debt, grants, or revenue-based financing—you create a more robust and adaptable business model. The right capital strategy can be the catalyst that propels your business forward, allowing you to scale sustainably while maintaining control over your company’s destiny.
Remember, the key isn’t just finding capital—it’s about knowing which types to use, how to stack them, and when to deploy each strategically. With a well-thought-out capital stack, you’ll be better positioned for both long-term stability and exponential growth.
Leverage is yours, take it.
Leverage, in its simplest form, is about amplifying the efforts you make to achieve far greater results. As Archimedes once said, “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.” In today’s complex business environment, leveraging the right tools—whether that’s self-awareness, relationships, revenue, or capital—can be the deciding factor between stagnation and growth.
By integrating Superstruct's Four Laws of Leverage into your life and business, you are equipping yourself with a system that can create exponential success. It starts with knowing yourself—investing in personal clarity and strengths, and cutting away what no longer serves you. From there, you build a circle of influence that challenges, inspires, and supports your growth. With the revenue-first mindset, you set the foundation by proving your value in the market, making capital an accelerator—not a crutch. And finally, stacking the right forms of capital ensures that you’re maximizing your financial potential, making the smartest possible moves for long-term sustainability.
These four laws aren’t just business strategies—they’re life principles. Whether you’re just starting out or scaling your venture, applying these concepts will create ripple effects that extend far beyond your current horizon. Leverage isn’t just about doing more; it’s about doing smarter. And when you fully embrace the transformative power of these principles, you won’t just move your business—you’ll move the world.
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