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It's going on, everybody.

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Happy Thursday.

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I hope you have an amazing week so far.

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We're now three quarters the way through the week over the hump.

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And I want to make this video for you because I saw somebody recently who's actually in

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my group who's not taking my advice and I'm going to try and have you avoid the mistake

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that I make that I think that this person is going to make.

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And I've had so many gem owners make this mistake and I'm begging you to not make it

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too.

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So after I had my first location, so for some of you who don't know me that well, my first

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location was in Huntington Beach, California.

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It took me about nine months to get it from, what's it, me, yeah, nine months to get from

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zero to 250 active or crane members.

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And I had an outsourced at that point as well, outsourced me and like I wasn't doing

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the sales.

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I was still obviously there, but I just wasn't doing the sales or the managing of the

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training.

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You know, I felt like I was like a super, super hot, hot star, you know, and so I was like

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awesome.

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We're opening the second location.

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It's going to be great.

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And on my second location, I spent a quarter million dollars.

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I spent 250 grand on my second location and I opened that up at month 15.

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As in month zero was when I opened my first location at month 15 of being in the gym

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business.

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I opened up my second location and spent a quarter million dollars, which is basically

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everything that I had made up to that point.

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And it was just such a terrible, terrible decision because the second location, I was like,

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this one we're going to do, big, we're going to do a ride, I'm going to put all this equipment

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in there, right?

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And I forgot about the thing that had made us money in the beginning.

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And it wasn't the equipment because the thing is, is that you and I, as micro gym owners,

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will never be able to compete with LA Fitness and 24-Fitness and Equinox on the basis of

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facility.

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It's just not going to happen, right?

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They have 10, 20, 100, you know, I mean, like they have ridiculous budgets in order to

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outfit their facilities, make beautiful bathrooms with marble and cucumber, water and all sorts

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of stuff, right?

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And for some reason, I had diluted myself into believing that I was going to be able to

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compete with them on that pricing wise, right?

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And so, well, like, how do you do that?

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But what's the one thing that makes this money, right?

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It's service.

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It's high quality, amazing customer service, amazing customer experiences.

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That's our strategic advantage.

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That's how a micro gym owner is able to command premium prices in a marketplace and retain

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customers at prices that are 5, 10 X, anyone else in that space, right?

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And so, I had forgotten this and went and spent all of my money on a second location and

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buying all the fancy new equipment and then what happened, right?

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It made no more money than my first gym did.

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And that's mind blowing to me, right?

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And so, first thing is, hopefully, let me save you a quarter million dollars and don't

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do that.

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Don't just think that all of a sudden because you have the money, you should go spend

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it on more equipment, okay?

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That also goes for your current location.

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If you fall into some money and buy that, I mean, you start gym lunch and you start making

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some money fast, don't just take that money and they'd be like, all right, great, we're

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buying a whole bunch of rowers or we're buying a whole bunch of assault bikes or whatever

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else you want to do, stack the cash, put it in your bank account, save it, okay?

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That's the point.

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The point of owning the businesses to make money and it's okay to just make money and

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not keep reinvesting everything, that's the point, right?

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I can't say many times I've seen gym owners who will be in business for three years and

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every single month they reinvest all the profits of their business back into the business,

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meaning they just don't take a paycheck and they're like, I'm just reinvesting.

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And then at three years or four years, all of a sudden they have a couple of bad months

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or a train to leave and takes half the business or whatever.

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Everyone's heard the story and then they close their doors and they have nothing, they

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have nothing.

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They didn't hedge their bet, they didn't take money and put it in the bank account because

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the whole time they're like, I'm going to keep doubling down, like every time you don't

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take money out of your business, you're doubling down.

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It's like being at the casino and putting your bets on the table and being like, I'm going

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all in again, I'm going all in again, it's dumb, it's not smart, like financial decision-making

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as a business owner and I made this mistake, okay?

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So I'm saying don't do it or you can make them stick and then learn it and tell those

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people later.

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I think I hope it said like one of the beautiful things about humans is that we're the only

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species that is able to learn from other people's mistakes rather than making them ourselves

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and then learning.

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So real quick guys, you guys already know that I don't run any ads on this and I don't

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sell anything.

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And so the only ask that I can ever have are you guys that you help me spread the words

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so we can have more entrepreneurs, make more money, feed their families, make better

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products and have better experiences for their employees and customers.

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The only way we do that is if you can rate and review and share this podcast.

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So the single thing that I have to do is you can just leave a review and take 10 seconds

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or one type of the thumb to the absolute world to me and more importantly, it may change

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the world for someone else.

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Now the last piece that I'm going to talk about here with regards to blowing money

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is that this happened, I'm really just making this video for all my legacy guys.

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So all of you guys who are in the free group, enjoy.

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This happens so many times in driving a wall.

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If you're making money, keep making money.

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Like if you're at 50K or 60K or 80K per month right now, go up to 110, go up to 120.

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Don't think.

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Okay, we just went, so in the last three months with working with us, we've taken our

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EFD from 25,000 to 45,000 a month, which is great.

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Don't get me wrong.

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It's awesome.

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But the point there is to stack the money.

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Don't immediately say, I'm going to open a second location.

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Like I can't tell you, I literally cannot tell you how many gyms that we have worked

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with who month zero, they're almost closing their doors or they haven't taken a paycheck

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in however many years.

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They're putting payroll in a credit card or they're worried about rent, et cetera month

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zero.

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Then they make 30 grand in their first month in additional revenue using gym lunch.

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And then next month, they make an additional 30 grand in revenue using gym lunch.

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And then let's say month three or month four, now they've taken their gym total revenue

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from let's say 15,000 a month to 45 or 50,000 a month, okay, 15 to five zero, all right,

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within three months or so.

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And then I get messages from the owner and be like, hey man, I'm opening up my second

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location.

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Like you're like psychotic, right, like you should be able to maintain this for six straight

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months, minimum maintaining a solid margin, stacking cash in the bank account and then

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feeling financially secure, making sure like getting ahead on mortgage payments, paying

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off your car, paying off your debt so that you have no constraints on you so that you

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can breathe with this money that your business is making you because a lot of times people

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forget the point of the business is to make you money.

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That's the point, right, and so we're like, cool.

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And then we don't want to take all this money and just go double down again.

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So we're back with the casino and so we're like, awesome, I just made 10 grand three months

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in a row net profit.

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I'm going to open a second facility, no, like let's try and see exactly now we just covered

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all the overhead and now we have a profit margin.

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Let's see how much gravy we can pull on top, right, like how much whipped cream, how much

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hot fudge can you pull on top of this Sunday that we can take home with us, right?

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And so it's like when you have this, like you can make a sick amount of money from one

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gym, all right, like the biggest failure, I see it all the time, like that's why I'm

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making this video like so many gym owners will do this because we want to grow and I get

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it.

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But like you can like learn from my quarter million dollar mistake, don't do it too soon.

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Otherwise, you scale issues.

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If you feel like you're working 40 hours a week and you have one gym, you work 80 when

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you have two.

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That's what happens.

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No problems, all right, you scale the amount of time that you have to put into it.

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You should literally be on, you should be bored out of your mind at your gym for six to

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nine straight months, cashing in 20, 25,000 a month take home before you open the second

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location, all right, I'm begging you.

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And for those of you who this resonates with because you've been in that situation that

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some of you guys who work with me and you sold off a location because I asked you to

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so we could make you more money, please comment to just help other people who don't believe

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me right now.

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Like our egos get involved, our status gets involved, so we want to say, hey, I have four

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gyms, I have three gyms, I have two gyms, whatever, but I like who cares, right, like your wife

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doesn't care.

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She cares how much money you take up and if this is, if you're a woman, then your husband

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doesn't care what you're going to say.

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I'm just using he because I'm a he and that's what I think.

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But anyways, don't make my quarter million dollar mistake.

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Don't go walk, like don't keep putting, buying a ton of equipment as soon as you make money.

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As soon as you start making some money three months in a row, don't start looking for

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a second location, all you should be doing is continuing to stack cash, take as much

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money out of the business, don't double down on black, put it in your bank account, pay

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off debt, increase your net worth, that's the game.

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The whole point we got into this business was for freedom, financially, geographically,

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and temporal.

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That's what virtually every entrepreneur gets in this business for, right, freedom, right?

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And then as soon as we make some money, like all we do is we want to tie ourselves down

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to them, right?

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It's insane, but we do it constantly, right?

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So if you've got into this business to have freedom, then build your freedom, like make

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sure the gym is 100% out, like outsource, make sure there's a sick profit margin, pay

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off all your debt.

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Like those are the things that are going to increase your freedom, timelines, geographically,

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financially, all those things.

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Okay, thanks guys, I hope this makes sense.

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And all you have to do is double down on your customer service, giving amazing experience

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you can charge premium and prices and take home a fat margin.

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So lots of love guys, I hope you have an amazing day.

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I was a little bit of a rant this morning, I just saw a couple of people who I love.

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And like I see, we're trying to open new gyms just because they did like 80k, like two months

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in a row, and I'm like, don't do that, just stop, just take the money, just freaking make

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your money and just make it and just keep making money.

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That's the point.

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Okay, so thank you very much everybody.

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You can also, if you feel like it, follow me on Instagram.

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We just started a new Instagram account, we have little videos and things like that that

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are going on there.

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It's Alex, Under School, Hermosi, follow us on Instagram.

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Lots of love.

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Thank you.

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Bye.