WEBVTT 1 00:00:00.000 --> 00:00:03.840 Wednesday. Everyone, I hope you guys are having a wonderful, wacky, 2 00:00:04.880 --> 00:00:10.640 fantastic Wednesday. And so what I wanted to cover today was I was calling cash flows oxygen, 3 00:00:10.640 --> 00:00:16.800 how to get some. But this is actually part of a larger discussion that I'm half targeting 4 00:00:16.800 --> 00:00:22.800 towards my coaches and half y'all can just join in on what I would be talking to them about. 5 00:00:22.800 --> 00:00:28.720 And so one of the skills that a coach has to have, and if you are coaching yourself, 6 00:00:28.720 --> 00:00:31.920 you are the coach, you're the master of your own domain, you're the coach of your own business, 7 00:00:31.920 --> 00:00:34.880 right? And you have to coach you better than anyone else can, right? That's good to have 8 00:00:34.880 --> 00:00:37.920 outside counsel, that's what we have coaching, that's what I get coaching. But you have to be 9 00:00:37.920 --> 00:00:40.400 your own coach because you're the one who's going to be making the decisions for your business 10 00:00:40.400 --> 00:00:46.800 more than anyone else for, right? And so oftentimes when I am on the phone with a business owner, 11 00:00:46.800 --> 00:00:53.360 I am listening for the majority of the time of that call and I'm looking for certain things. 12 00:00:53.360 --> 00:00:56.960 And so some of you may have heard of a, a SWAT analysis, right? Strength, weakness, 13 00:00:56.960 --> 00:01:02.720 opportunities, and threats. More commonly now in MBA schools, they've actually reversed that, 14 00:01:02.720 --> 00:01:07.600 and they called an OTSU. And what that means is opportunities threats are disproportionately 15 00:01:08.640 --> 00:01:16.640 weighted as far more important. And then then you have strengths and weaknesses. And so the reason 16 00:01:16.640 --> 00:01:21.440 that I'm saying this is that most times when I'm listening to a client who's saying, I'm struggling, 17 00:01:21.440 --> 00:01:25.040 I'm having an issue where I'm at a bottleneck, it doesn't necessarily need to be that they're losing 18 00:01:25.040 --> 00:01:30.560 money, but just like I can't get past this point with the issue, I'm going to be looking for 19 00:01:30.560 --> 00:01:35.680 cash flow opportunities that are sitting on the ground and massive threats. Those are the two things 20 00:01:35.680 --> 00:01:41.440 I'm looking for in the beginning. Once those boxes check off, then we go down to strengths and weaknesses. 21 00:01:41.440 --> 00:01:48.960 For example, if someone is bleeding cash, I'm not going to tell them to fix their culture, right? 22 00:01:48.960 --> 00:01:53.120 Fixing their culture is something that they absolutely need to do, but it's not going to be the 23 00:01:53.120 --> 00:01:58.160 thing that's going to save their business tomorrow, right? They need money. And so like, it's one 24 00:01:58.160 --> 00:02:01.520 of the things that drives me nuts because it's not prioritizing the actions according to the 25 00:02:02.480 --> 00:02:07.280 how important they are, right? And so an example of this, I mean, I just use the culture example, 26 00:02:07.280 --> 00:02:12.320 but let me look at another one. Here's a more relevant one. Retention, right? And believe me, I'm like 27 00:02:12.320 --> 00:02:16.640 the king of making sure that you're doing a good job to your customers, right? But if your retention 28 00:02:16.640 --> 00:02:23.120 is shit, right? It's absolute shit. That's, if you need to make payroll in the next 30 days, 29 00:02:23.120 --> 00:02:26.880 implementing retention system is not going to solve your problem. It's going to take 12 weeks 30 00:02:26.880 --> 00:02:33.280 for that to, for that to pan out. Now, this is what you should do. Absolutely. After you have milked out 31 00:02:33.280 --> 00:02:37.440 all the big opportunities that sit in front of you and ensure that you're not going to kill yourself 32 00:02:37.440 --> 00:02:41.600 with threat standpoint. Now, if you are, if your retention is like, you know, you're churning 30% 33 00:02:41.600 --> 00:02:45.040 with a month, that becomes a threat. It's not even a week. It's a threat itself to your business. 34 00:02:45.840 --> 00:02:50.880 Now, the number one thing that I see, and this is like, when I'm, when I'm getting on the phone now, 35 00:02:50.880 --> 00:02:55.440 and like I occasionally take calls, which I want us to kind of like just poke and listen, 36 00:02:56.320 --> 00:03:00.080 and I try to advertise it because I couldn't, like I actually thought about this like yesterday 37 00:03:00.080 --> 00:03:05.360 to lay last. I wonder if I can take one call with everyone. If I did 30 minutes for every person 38 00:03:05.360 --> 00:03:08.400 one some month, then I was like, I don't know. It's still taking me three months. So I can't do it. 39 00:03:08.400 --> 00:03:11.920 I tried and I thought about it. It can't work. So all of you is give you the lessons that I have 40 00:03:11.920 --> 00:03:17.840 learned from the people that have spoken with. And so if for example, you don't have a one-on-one 41 00:03:17.840 --> 00:03:21.200 nutrition and accountability program that you have plugged into your facility on top of your group 42 00:03:21.200 --> 00:03:25.520 training, that is the biggest opportunity that sits on top of your business right now. 43 00:03:26.560 --> 00:03:31.280 Would you like to have an extra $15,000 a month spend $0.00 in ad spend, get it in 28 days, 44 00:03:31.280 --> 00:03:35.360 and you have literally no risk, and it's only profit that you'd add on top of your business, 45 00:03:35.360 --> 00:03:40.640 basically no cost. You don't have that? Cool. Nothing else that you were going to do 46 00:03:41.200 --> 00:03:46.560 is going to matter. And so this is called opportunity cost. Of all of the things that we can do, 47 00:03:48.240 --> 00:03:52.320 doing this alternative, what other things are we doing that we're saying notes it, right? 48 00:03:54.800 --> 00:04:03.920 Picking out which of the opportunities to focus on is usually the focus of a good coach. 49 00:04:03.920 --> 00:04:09.680 And this is where experience of a coach matters because they have more plays in their arsenal, 50 00:04:09.680 --> 00:04:15.680 they have more cards up their sleeve that they have seen be executed with precision over a short 51 00:04:15.680 --> 00:04:21.520 period of time. And so to a new coach, they may only have, okay, we need to run more ads, 52 00:04:21.520 --> 00:04:25.840 we need to work our lutes harder, we need to sell better. Those are all very true things. 53 00:04:25.840 --> 00:04:31.200 Those in my opinion would sit within the strengths and weaknesses area, right? But if you are bleeding 54 00:04:31.200 --> 00:04:36.560 cash and you need to make money fast, right? There are three things that will make you money fast. 55 00:04:37.360 --> 00:04:42.960 One is if like all three of them, by the way, include selling shit to your existing customers. 56 00:04:42.960 --> 00:04:47.840 That is it. You don't have enough time to start a campaign, bring people in, market, 57 00:04:47.840 --> 00:04:52.000 stuff like that takes time. And if you don't have it, then there's only three ways to make money in 58 00:04:52.000 --> 00:04:57.520 all three or selling to your existing customer base, all right? In a gym, the first and easiest 59 00:04:57.520 --> 00:05:03.760 and least amount of anything effort is to take three people, run a reason why campaign, 60 00:05:03.760 --> 00:05:08.960 which is like a, hey, I just turned 30. And because of 30, I'm going to take three people with me 61 00:05:08.960 --> 00:05:13.040 on a one-year transformation. It's going to be awesome. And I'm only, like I said, I'm only taking 62 00:05:13.040 --> 00:05:18.640 three people on. It's going to be $3,000. You know, text me if you want it. Just like that, you make 63 00:05:18.640 --> 00:05:21.920 nine grand, all right? You have a hundred people, you're going to have three take the offer, all right? 64 00:05:22.000 --> 00:05:27.440 So if you need money, that's number one, easiest thing to do. You don't want to solve all of those, 65 00:05:27.440 --> 00:05:33.200 limit it, limit yourself, but those cash pops help, right? Cash is oxygen so you can buy yourself 66 00:05:33.200 --> 00:05:39.680 time to have more perspective to make better judgments about the business. Next play is you run an 67 00:05:39.680 --> 00:05:44.080 internal play to your existing customers, right? Now, I guess this one would technically be like 68 00:05:44.080 --> 00:05:51.280 subset A and subset B, which would be the final two. If you have like a normal gym, if you just 69 00:05:51.280 --> 00:05:55.680 want to run like a big booty mechanic or an app challenge or whatever, right? It doesn't really 70 00:05:55.680 --> 00:06:00.160 matter, right? Buns and guts. Any of those things, you can market your existing customer base, 71 00:06:00.160 --> 00:06:04.240 and you have two things that you can do from there. One is you can actually sell the thing itself, 72 00:06:04.240 --> 00:06:08.080 which normally you'll get about 20, 25% take rate of your entire customer base if you sell 73 00:06:08.080 --> 00:06:13.920 between $100 and $200, right? And so if you have 150 people, 25% would be 74 00:06:14.880 --> 00:06:21.040 wherever that is, I don't know, like 35-ish, 40-ish, whatever, somewhere in there, right? 75 00:06:21.040 --> 00:06:26.560 And so you have 35 people who sign up at, let's say, 150. Okay, well, made five grand, 76 00:06:26.560 --> 00:06:30.080 but then you have some more fulfillment, so maybe the painful thing that the three people 77 00:06:30.080 --> 00:06:34.640 might be a better play for that. So we'll see which one, if you did the other one recently, 78 00:06:34.640 --> 00:06:36.080 that would probably be the play today. 79 00:06:38.240 --> 00:06:42.960 Hey guys, love that you're listening to the podcast. If you ever want to have the video version 80 00:06:42.960 --> 00:06:47.360 of this, which usually has more facts, more visuals, more graphs, you know, drawn out stuff, 81 00:06:47.360 --> 00:06:51.280 sometimes it can help hit the brain centers in different ways. You can check out my YouTube 82 00:06:51.280 --> 00:06:55.200 channel. It's absolutely free to check that out if that's what you are into. And if not, 83 00:06:55.200 --> 00:06:56.000 keep enjoying the show. 84 00:06:58.800 --> 00:07:03.600 Now, if you wanted to make even more money, right, then you should make the thing free 85 00:07:03.600 --> 00:07:08.240 that you're giving away, and then upsell them into food and supplements, right? Upsell the 86 00:07:08.240 --> 00:07:13.920 additional services once they start because you'll get an 85% take rate and you'll close 80, 90% 87 00:07:13.920 --> 00:07:20.320 on the upsell, right? So it's more work, but again, in a short period of time, you can sell people 88 00:07:20.320 --> 00:07:25.600 other stuff that's ancillary services, and that's all free money. There's no, there's no fulfillment 89 00:07:25.600 --> 00:07:30.480 that really has to happen there, right? So like you buy something or in our case, you don't buy 90 00:07:30.480 --> 00:07:34.240 something, you just go into prestigious labs and you click send, and then they, you never have 91 00:07:34.240 --> 00:07:39.520 to touch inventory. But point is is like you're taking something for $5, you're selling it for 20, 92 00:07:39.520 --> 00:07:43.520 and then you just take the in between, and that's it. The exchange happens. You keep the money. 93 00:07:44.240 --> 00:07:52.080 Great, right? So that's another easy way of making $10,000, $15,000 in a month. The third thing, 94 00:07:52.080 --> 00:07:56.160 and this is the one that I'm going to drill home for everyone, is that you have the same amount 95 00:07:56.160 --> 00:08:02.400 of effort that is going to go into dealing with any kind of internal plan. So beyond the first 96 00:08:02.400 --> 00:08:07.040 thing, which is like quick text blast limited spaces, make 10 grants more, right? That's like cool, 97 00:08:07.040 --> 00:08:12.400 make 10 grants more. But if you want to make, like if you want to start having established recurring 98 00:08:12.400 --> 00:08:19.200 revenue, right, add an additional level of service, right? Simply giving people one-on-one nutrition, 99 00:08:19.200 --> 00:08:23.040 one-on-one accountability. That's it. A lot of people struggle with getting the gym. A lot of people 100 00:08:23.040 --> 00:08:27.520 would love someone to text them every morning, ask them what their weight is, how they're doing, 101 00:08:27.520 --> 00:08:32.080 make sure they show up at the gym. What this also does is your churn goes through the floor, 102 00:08:32.080 --> 00:08:35.840 as then like your retention goes up. People stop turning out because they have a regular 103 00:08:35.840 --> 00:08:42.240 communication hits. Now, if I had 150 customers, what would I do? I would, being the 104 00:08:42.240 --> 00:08:49.520 enterprising mofo that I am, give everyone at my gym 28 days free or 21 days free or 14 days free, 105 00:08:49.520 --> 00:08:54.880 depending on how much work ethic I have, right? Now, for me, if I get everyone at my gym, 106 00:08:54.880 --> 00:09:01.200 all 150 people, an amazing one-on-one experience that they've never had before, and then after 107 00:09:01.200 --> 00:09:06.880 this 28 days, you can keep doing this for 49 bucks extra a week, right? And that's half what I'm 108 00:09:06.880 --> 00:09:11.680 going to sell new people into it. So they're getting a great deal, right? What percentage of people 109 00:09:11.680 --> 00:09:15.600 do you think would say? You have one-on-one contact with them for a whole month. What do you think? 110 00:09:16.480 --> 00:09:21.520 Half? Being a third would stay probably higher than a third. I think half would stay? I think it's 111 00:09:21.520 --> 00:09:26.560 higher than a half, but let's just say half, right? Half stay. Now, you're not going to get a 112 00:09:26.560 --> 00:09:29.840 hundred percent take rate because you never get a hundred percent take rate on these types of things, 113 00:09:29.840 --> 00:09:35.040 but you get 85 percent, let's say you get 120 people to take the offer, or you get half to stay. 114 00:09:35.040 --> 00:09:41.040 So you got 60, and you got 60 at $200 a month extra that are paying for one-on-one nutrition 115 00:09:41.040 --> 00:09:46.080 accountability. What's the cost of fulfillment there? Very low, right? 20 percent goes to a coach. 116 00:09:46.080 --> 00:09:53.680 Cool. So you pay $2,400 out of your out of your 12th, right? So you're at 96. And now, every single 117 00:09:53.680 --> 00:09:58.880 month from this month going forward, you make your 10th grand a month, and that is profit that is 118 00:09:58.880 --> 00:10:05.280 in your pocket that you can do tomorrow, right? So if you're if you need more profit, if you need more 119 00:10:05.280 --> 00:10:10.400 cash, there's a million ways to do it. And a lot of times like, and this is me, somebody who's a long-term 120 00:10:10.400 --> 00:10:16.800 player, sometimes if you need it fast, fixing your culture is not going to do it. You need cash 121 00:10:16.800 --> 00:10:21.600 today. And so once you can have that and you can plug the whole or you can plug a thread or whatever 122 00:10:21.600 --> 00:10:26.960 it is, right? Then you can start fixing the processes that got you into this pickle to begin with. 123 00:10:26.960 --> 00:10:31.040 But sometimes you need cash tomorrow. And so those are the three easiest ways that you can get 124 00:10:31.040 --> 00:10:37.920 cash tomorrow. The last one, one-on-one, nutrition accountability, by the way, different. Because of 125 00:10:37.920 --> 00:10:40.880 marketing, so don't get scared away, nutrition accountability, kind of part of the game in your 126 00:10:40.880 --> 00:10:47.440 gym owner. That being said, it's free money. And so if I'm fucking to a gym owner, I'm going to 127 00:10:47.440 --> 00:10:53.120 check off the boxes of which of these things they have done. And most times, when I look at all the 128 00:10:53.120 --> 00:11:00.800 opportunities they have in the floor, in front of them, asking them to take it. And so right now, 129 00:11:00.800 --> 00:11:05.040 if you're looking at your business, there's probably a million things that you could do and 130 00:11:05.200 --> 00:11:10.320 arguably should do. But which one thing, given the same amount of time, is going to make you the 131 00:11:10.320 --> 00:11:15.760 most money. Forget about everything else and just do that. And most times, you're going to make the 132 00:11:15.760 --> 00:11:20.640 right call. And what a good coach is supposed to do is figure out of all the plays that they know 133 00:11:20.640 --> 00:11:25.040 in their arsenal, right? All the cards that they have to play, which one is best suited to you 134 00:11:25.040 --> 00:11:31.280 right now that can have high impact and require low resources, right? Those are the best. High 135 00:11:31.280 --> 00:11:37.040 impact high resources. Like, yes, it's going to take a lot, but it's going to cost a lot, right? 136 00:11:38.080 --> 00:11:42.560 Whereas here, you actually get the benefit of having the profit without the risk, right? I'm not 137 00:11:42.560 --> 00:11:46.800 saying front ad spend. I'm not saying, you know, like there's literally nothing that needs to get 138 00:11:46.800 --> 00:11:51.040 added to your business besides a one person with 60 clients, one person can handle that. And that 139 00:11:51.040 --> 00:11:56.080 can be you if you want to. You can keep the extra $24 a minute. It's your call. But all that to say, 140 00:11:57.040 --> 00:12:03.760 if you're looking at your business, it is your job to be able to weigh which of the things that are 141 00:12:03.760 --> 00:12:06.240 in front of you because there's a million plays that are out there. And that's where people get 142 00:12:06.240 --> 00:12:09.840 overwhelmed. They're like, I don't know. Should I run a 28 day transformation? Should I run an 143 00:12:09.840 --> 00:12:14.080 internal play? Should I run a paid and full? Should I run a year of change? Should I run a, 144 00:12:14.080 --> 00:12:18.800 like, should I run high bread? Oh, why don't I want to count a billion nutrition? Right? What should I 145 00:12:18.800 --> 00:12:23.360 do? Look at which one makes you the most money? It takes at least a lot of resources. Depends 146 00:12:23.360 --> 00:12:26.160 how quickly you need money, either money tomorrow. You got to do paid and full. It's going to be a 147 00:12:26.160 --> 00:12:30.320 text blast. You make the money. If you can, if you can wait two weeks to make the money, 148 00:12:30.320 --> 00:12:34.720 you're going to do an internal play. If you can wait a month to make the money, then you should 149 00:12:34.720 --> 00:12:39.360 probably do hybrid, give everyone the free play. And now you just added 120 grand a month to your 150 00:12:39.360 --> 00:12:45.760 facility top line, right? And then bottom line you add, actually, sorry, you would add more than 151 00:12:45.760 --> 00:12:51.920 that top line. You had 144,000 top line, 120 bottom line. All right. One play. Is it worth it? 152 00:12:52.000 --> 00:12:57.680 Arguably. What most people do? Not that. And that's why they struggle. So don't be one of them. 153 00:12:57.680 --> 00:13:02.000 Cash flow is oxygen. Make sure that you prioritize the opportunities that are bigger. 154 00:13:02.720 --> 00:13:07.440 And once you do that, once you execute those things, then yes, you'll have cash flow to breathe. 155 00:13:07.440 --> 00:13:11.280 And then you can invest in things that will actually solve your problem. Then you can pay someone 156 00:13:11.280 --> 00:13:14.640 to start helping retain your customer so that you don't have the term problem. And you can wait 12 157 00:13:14.640 --> 00:13:19.600 weeks and now you have cash flow from the recurring revenue stream that you took a month to build. 158 00:13:20.080 --> 00:13:24.240 All right. So I hope that makes sense. Drop a like, drop a comment, text someone if you feel like 159 00:13:24.240 --> 00:13:29.200 it. Three ways to make cash in the next month. Lots of love. Keeping amazing. Have a wacky, 160 00:13:29.200 --> 00:13:40.480 wonderful one. All right. Be cool. Bye.