WEBVTT

1
00:00:00.000 --> 00:00:04.320
And what's wild is that a lot of you guys think you have that skill, you only do when it comes to cookies,

2
00:00:04.320 --> 00:00:08.080
but not when it comes to money. And so you give your clients all these lectures about self-discipline

3
00:00:08.080 --> 00:00:12.480
and being hard and believing in your better self, but you will take actions that are in direct

4
00:00:12.480 --> 00:00:18.560
contradiction. The wealthiest people in the world see business as a game. This podcast,

5
00:00:18.560 --> 00:00:21.520
the game is my attempt at documenting the lessons I've learned on my way to build a

6
00:00:21.520 --> 00:00:25.200
acquisition.com into a billion dollar portfolio. My hope is that you use the lessons to

7
00:00:25.200 --> 00:00:28.000
bring your business and maybe someday soon partner with us to get to a hundred million dollars

8
00:00:28.000 --> 00:00:35.280
in beyond. I hope you share and enjoy. So right now, there's a lot of shit that you guys probably

9
00:00:35.280 --> 00:00:39.760
learned so far. You're going to learn tomorrow and the rest of the day, etc. If it doesn't do one of

10
00:00:39.760 --> 00:00:46.720
these three things, toss it. Number one, number two, you might only be able to do one of them

11
00:00:47.200 --> 00:00:53.680
or two of them. And so then you got to pick, okay, of all of these things, which of these has the

12
00:00:53.760 --> 00:01:00.720
highest likelihood of working with the least amount of effort. You do that one first. And as silly

13
00:01:00.720 --> 00:01:05.600
as this sounds, many of you won't do this. And the reason I say this is because I talk to people

14
00:01:05.600 --> 00:01:11.360
who are making a million a month, a million a week, and they sometimes forget too. So like,

15
00:01:12.160 --> 00:01:15.440
when you have the same conversation over and over again, you start to develop frameworks around

16
00:01:15.440 --> 00:01:19.840
it, all right? And the first framework that I wanted to give you around strategy is how does this

17
00:01:19.840 --> 00:01:24.000
get us more customers? How does this make them worth more? And how does this increase the

18
00:01:24.000 --> 00:01:28.640
likelihood that those two first things don't stop happening? If it doesn't map to that, forget

19
00:01:28.640 --> 00:01:33.440
about it. Just cut it because there are other things that will do that that we should be doing

20
00:01:33.440 --> 00:01:43.440
instead. Cool. Now, the second framework is going to go one level down. What? Who? How? So

21
00:01:44.320 --> 00:01:48.160
usually when you do this whole thing, you get a big list of what's, right? These are all the

22
00:01:48.160 --> 00:01:53.280
things I got to do. What? You're like, fuck, there's a lot of what's? Who's going to do it?

23
00:01:54.320 --> 00:02:00.800
Most of the time you're like, me? Right? The difference in the guys who become bigger business owners

24
00:02:00.800 --> 00:02:05.040
and the ones who don't is they have to think, how can I get my team to do this for me? Now,

25
00:02:06.400 --> 00:02:10.960
this is not a team team talk, but I am telling you that the reason that Jim launch went from

26
00:02:10.960 --> 00:02:18.960
three million year, never was to 37 and still cranks, which because of Layla, because I was like,

27
00:02:19.520 --> 00:02:25.680
we're going to make it the Alex show. She's like, that's a terrible idea. And so she built a team

28
00:02:25.680 --> 00:02:28.560
and started empowering the team. She's like, you can't do that. She started taking things off my

29
00:02:28.560 --> 00:02:33.760
counter. I was like, hey, I like that. She's like, no, not for you. That's for Sandra. Look,

30
00:02:33.760 --> 00:02:39.680
I got six Sandra's. They all want to work. And so what ended up happening is, has anyone given

31
00:02:39.680 --> 00:02:45.040
a task to someone on your team? And they actually just did a great job with it. And you're like,

32
00:02:45.040 --> 00:02:52.560
oh, thank God, that was awesome. Anyone had that happen? Okay. So big businesses do that all the time.

33
00:02:53.440 --> 00:02:59.200
And you just do it lots of Sandra's. And if you can't gift shit to any Sandra's, then you're the

34
00:02:59.200 --> 00:03:04.800
problem because you have really low standards and you're a pussy. You can't have hard combos.

35
00:03:04.880 --> 00:03:10.560
So what did it like literally comes down to that big mantra guys can't tell the female trainer that

36
00:03:10.560 --> 00:03:18.320
she sucks. Can't do it. We can't do it. And so what happens is we have this big list of what's

37
00:03:19.040 --> 00:03:23.360
and then we put Santana on the first two and we're like, man, it'd be cool if we could do some

38
00:03:23.360 --> 00:03:29.280
these other ones. Who should we give it to? And then we start assigning the who's. But here's

39
00:03:29.280 --> 00:03:34.960
a fun trick. If you've given the same who the same thing 12 weeks in a row like each quarter

40
00:03:35.600 --> 00:03:42.720
and the what's not done, the who's the problem. Winners win. And I'm sure that the best people that you

41
00:03:42.720 --> 00:03:46.320
have on your team hit the ground running started taking shit off your plate immediately start executing

42
00:03:46.320 --> 00:03:53.280
everybody love them. Remember what that felt like? That blueprint is what talent looks like. And

43
00:03:53.280 --> 00:03:58.480
you just have to do more of that. Get more of those people, which then opens up the next thing,

44
00:03:58.560 --> 00:04:03.760
which is I'm not the type of leader who will track that type of talent. I don't have time to get

45
00:04:03.760 --> 00:04:09.440
into fixing you right now, but that is what the next thing that happens is. Okay, fantastic. So

46
00:04:10.640 --> 00:04:16.240
TikTok over for this strategy session. Go to the next one. All right. Oh good. I'm

47
00:04:16.240 --> 00:04:23.360
great. I'm crushing on time. Next framework for you. More better new. So as soon as we figure out

48
00:04:23.360 --> 00:04:30.480
that we have the highest strategic leverage activity that we can in a business, we then ask ourselves

49
00:04:31.200 --> 00:04:37.360
can we just do more? Why can't we do more? I want to do more more money. Let's do that more and

50
00:04:37.360 --> 00:04:43.760
more and more, right? Or we say can we do it better? We don't have to invest in any resources. Just

51
00:04:43.760 --> 00:04:46.960
do it better. We're going to go from calling leads in 30 minutes to calling leads in under five.

52
00:04:47.600 --> 00:04:53.280
Deal? Fantastic. Once we do all the moors and all the bettors, then and only then

53
00:04:53.280 --> 00:04:59.280
do we do new. Now, here's how most small business owners decide what they're going to do.

54
00:05:00.640 --> 00:05:05.920
No. And the thing is, there's a lot of you guys are going to come back from here with lots of new.

55
00:05:05.920 --> 00:05:09.200
And you're going to be like, hey, team, I'm going to vomit all over you. I'm going to make no plan.

56
00:05:09.200 --> 00:05:11.840
It's going to be awesome. And they're just going to be like, let's give it a week.

57
00:05:11.840 --> 00:05:16.720
He'll forget about all the things he said. And we'll go back to normal. Real talk. It's going to happen.

58
00:05:17.200 --> 00:05:23.680
Jim launch since we sold it to whatever ish years ago, whatever the time was, 2021.

59
00:05:25.120 --> 00:05:29.680
I'm so proud of KL and the team because they consistently asked, thank you.

60
00:05:31.520 --> 00:05:33.920
How can we do more what we're doing? How can you do it better?

61
00:05:34.480 --> 00:05:40.720
Jim was just going 40% since Alex and Layla exited the majority share. We still own 30% of it.

62
00:05:40.720 --> 00:05:46.640
But and I think in a lot of ways, KL is a better CEO than I am because I also like new shiny things too.

63
00:05:47.200 --> 00:05:51.040
But KL is super disciplined. He's an exceptional CEO. There's lots of learn from him.

64
00:05:51.600 --> 00:05:55.920
How can I do more? How can I do it better? So it's like, hey, dude, I think we should be getting on TikTok.

65
00:05:55.920 --> 00:06:00.480
He's like, you know, we could also do. We fucking double our call call team. Do that. What do we do that?

66
00:06:00.480 --> 00:06:03.920
What's the likelihood that if we double our call call team, we'll make more sales?

67
00:06:03.920 --> 00:06:08.160
Hi, we already have a trot and path there. Let's just do more of that.

68
00:06:08.160 --> 00:06:12.320
But what about TikTok? It's like, yeah, likely that we're going to get sales.

69
00:06:12.320 --> 00:06:15.280
I don't know. We've never done it before. I don't know. But what about this kid?

70
00:06:15.280 --> 00:06:19.120
I saw on the internet. He's making millions. Let's just double our call call team.

71
00:06:19.920 --> 00:06:25.280
And then let's look at our better and say, like, do you think we can clean the numbers more?

72
00:06:25.280 --> 00:06:29.520
Do you think we can improve the script? Do you think we can follow up faster?

73
00:06:29.520 --> 00:06:32.560
Do you think we can personalize the reach outs more? Probably.

74
00:06:33.520 --> 00:06:40.960
And so, right now, this is real real. The thing that is killing most of you guys

75
00:06:42.400 --> 00:06:48.080
is the desire to 10X in 90 days and then not doing it and trying something new and hoping for

76
00:06:48.080 --> 00:06:51.760
a silver bullet that never comes. It's just, it's a hundred golden babies.

77
00:06:52.400 --> 00:06:57.120
Like, the big businesses, it's just golden babies. It's just improving lots of little things

78
00:06:57.120 --> 00:07:01.520
over and over again. The 40% improvement that Jim Muchos had since we sold our majority share has,

79
00:07:01.520 --> 00:07:05.440
there's been no one thing. And man, wouldn't I love to make that short video?

80
00:07:06.080 --> 00:07:10.960
There isn't one thing. We just improved a lot of little things. And that creates the big outcome.

81
00:07:11.680 --> 00:07:17.600
And so right now, you probably have this big list of should-do's. Like, I should do that.

82
00:07:18.320 --> 00:07:24.720
I should probably email my list sometime. Right? At some point. I should do that. Right? I should

83
00:07:24.720 --> 00:07:31.040
probably do more cold DMs or do more reach outs. I should probably make more ads to run.

84
00:07:31.600 --> 00:07:36.320
I should probably do that. I should probably figure out our pricing and optimize it. I should

85
00:07:36.320 --> 00:07:39.600
probably create that sales training program or get my team to go through that sales training program.

86
00:07:39.600 --> 00:07:43.680
I should probably set up a role playing cadence for my team so they sell better.

87
00:07:44.400 --> 00:07:52.320
But you know what's new? That sounds cool. The should-do's, if you actually just

88
00:07:52.320 --> 00:07:57.040
wrote all the things that you need to do down and then you tick them off and you realize that it

89
00:07:57.040 --> 00:08:00.960
takes two years to build an exceptional business and you did nothing but just actually do all the

90
00:08:00.960 --> 00:08:05.600
shit you know you should be doing. You usually build a pretty exceptional business. It's the rush

91
00:08:05.600 --> 00:08:10.320
that kills everyone. It's the hope that this new thing is somehow going to shortcut the work that

92
00:08:10.320 --> 00:08:14.880
needs to be done. And like this has just been true and true because the thing is that that list

93
00:08:14.880 --> 00:08:20.480
for a $10 million company is longer and bigger. That list for a $100 million company is longer and

94
00:08:20.480 --> 00:08:25.840
bigger. And it's just shit that needs to get done. And so the faster you can confront the work that

95
00:08:25.840 --> 00:08:30.640
has to get done, the faster you start getting the getting. Getting to the getting. There you go.

96
00:08:30.640 --> 00:08:38.240
This is making sense. All right. Now you're going to have a lot of different things. You're going to

97
00:08:38.240 --> 00:08:42.800
have a lot of different things that that you could do, right? And you've noticed this is the central

98
00:08:42.800 --> 00:08:46.960
theme. It's like you've got a lot of decisions to make and I just want you to make the right one.

99
00:08:46.960 --> 00:08:51.360
I want you to make the one that makes the most bang for the buck. And an easy way to order this

100
00:08:52.320 --> 00:09:04.480
is impact ease. So when you have your big list of shit, just put it as one, two, three, four.

101
00:09:04.480 --> 00:09:11.360
Just put a number next to it. Really easy. Lots of impact. Really easy. Do these first.

102
00:09:12.160 --> 00:09:18.160
Then once you've done all of those, hey, don't consume any more information. Once you've done,

103
00:09:18.160 --> 00:09:26.720
wait, once you do all of these, then start working on these, then start working on these,

104
00:09:27.440 --> 00:09:36.960
then fuck these. I really want to rebrand the logo. Why? No one knows that you exist to be

105
00:09:36.960 --> 00:09:42.640
in with. What are we talking about? You're like, I want to rebrand. It's like, you have a nameless

106
00:09:42.880 --> 00:09:48.560
that no one has any association with your first thing. Xerox is just made up letters, right?

107
00:09:48.560 --> 00:09:53.200
They created a brand because branding is the consistent action of associating the unknown with

108
00:09:53.200 --> 00:09:58.240
the node, right? I know I'm supposed to talk about social media branding. I didn't think it was going

109
00:09:58.240 --> 00:10:02.800
to be super important for you guys because you don't need to. For now, in my opinion,

110
00:10:04.480 --> 00:10:07.520
not because it wouldn't benefit you, but because there are other things that I think would benefit

111
00:10:07.520 --> 00:10:16.800
you more just to be clear. Okay. Now, I'm going to give you this little tie-rade, and then I may

112
00:10:17.600 --> 00:10:24.320
have time, but I may not have time at the infracuria. We'll see. Oftentimes, the things that

113
00:10:24.320 --> 00:10:30.480
is limiting the business is the big, obvious thing. We have really big egos about our business.

114
00:10:30.480 --> 00:10:35.600
We assume that it's exceptional. We assume that it's excellent. In your heart of hearts,

115
00:10:36.320 --> 00:10:41.440
you probably know that if you were actually fucking exceptional, you would not be asking questions

116
00:10:41.440 --> 00:10:46.080
about how to get more leads, because you would have people referring their friends, and referrals,

117
00:10:46.080 --> 00:10:50.960
by the way, are non-linear in that they are exponential in nature to bring four, four,

118
00:10:50.960 --> 00:10:56.400
bring eight, et cetera. The book, the 100 million dollar offers book, was probably my first big

119
00:10:56.400 --> 00:11:00.480
experience with that because I spent a very long time writing it, and then I gave away for

120
00:11:00.480 --> 00:11:05.520
99 cents, and I made one post, and I think this one I had like 20,000 Instagram followers in total,

121
00:11:05.520 --> 00:11:10.720
and I didn't have really any other platforms. In that book, to this day sells more copies every month

122
00:11:10.720 --> 00:11:16.160
than it did the month before, and like last month, this sold 25,000 copies. It's like almost a

123
00:11:16.160 --> 00:11:23.360
thousand books a day, a thousand customers every day. No marketing spent, just word of mouth, right,

124
00:11:23.440 --> 00:11:30.800
and 14,000 five stars. It's the big, obvious thing, and from being in the room with

125
00:11:32.640 --> 00:11:38.960
billionaires, the thing that has become so clear to me is that the people who are obsessed with

126
00:11:38.960 --> 00:11:45.600
their product are the ones that get the compounding. Every business needs to have some sort of

127
00:11:45.600 --> 00:11:49.040
compounding vehicle within it, otherwise you're going to spend the rest of your life trying to promote

128
00:11:49.600 --> 00:11:53.520
it. So think about this way. If I spend two years trying to write a book, and at the other

129
00:11:53.520 --> 00:11:57.840
two years it's exceptional, I'm going to give the alternative example first. If I spend two months

130
00:11:57.840 --> 00:12:02.480
writing a book, and I publish it, and then I have to spend the rest of my life trying to promote it

131
00:12:02.480 --> 00:12:08.720
to get people to buy it, it's a tough life, low leverage. On the flip side, if I spent two years

132
00:12:08.720 --> 00:12:13.120
trying to build something fucking incredible, and then let my customers market it for the rest of my

133
00:12:13.120 --> 00:12:19.520
life. More work up front, less work long term. It's just that being willing to delay

134
00:12:20.320 --> 00:12:25.440
satisfaction or gratification is, in my opinion, the single greatest skill that you can develop.

135
00:12:25.440 --> 00:12:29.440
And what's wild is that a lot of you guys think you have that skill. You only do when it comes to

136
00:12:29.440 --> 00:12:35.120
cookies, but not when it comes to money. And so you give your clients all these lectures about

137
00:12:35.120 --> 00:12:41.920
self-discipline and being hard and believing in your better self, but you will take actions that

138
00:12:41.920 --> 00:12:47.120
are in direct contradiction. That same thing, it's just we're switching calories for dollars. Same

139
00:12:47.120 --> 00:12:53.040
thing. And so when I see a lot of the bit like the gym owners that struggle, it's just the big

140
00:12:53.040 --> 00:12:58.400
obvious thing, the sandwich sucks. I like dude. What's the new marketing thing for like gyms? I'm like,

141
00:12:58.400 --> 00:13:03.200
have you tried your sandwiches? They are terrible. Why would you want more people to know?

142
00:13:04.160 --> 00:13:12.320
Right. It's real though. Imagine I had a mediocre book, which is what most people would have,

143
00:13:12.320 --> 00:13:16.960
and then I spent tons of money trying to market it. Why would I do that? It sounds ridiculous

144
00:13:16.960 --> 00:13:20.640
when you think about it. You're like, I'm just going to let everyone know I'm mediocre. That would

145
00:13:20.640 --> 00:13:27.280
suck. But that's what a lot of people in this room do every day. And so the thing is that

146
00:13:28.160 --> 00:13:33.040
in my opinion, if I were to start a gym over today, I would consistently work on the actual

147
00:13:33.120 --> 00:13:36.640
product, the experience, the way people get greeted, the trainings for all of the teams,

148
00:13:37.760 --> 00:13:43.520
into the world's simplest model. And until people were not leaving, I would not be worried about

149
00:13:43.520 --> 00:13:48.400
bringing more customers in. Once you get that right, then when you're pouring all this gas in,

150
00:13:48.400 --> 00:13:54.160
you can catch it. Because if you got to hold out the other side, your constraint is the fact that

151
00:13:54.160 --> 00:13:59.040
people don't stay. And so the biggest thing that you have to solve for, because now we buy into a

152
00:13:59.040 --> 00:14:05.280
lot of brick and mortar chains, it's one of my favorites, unsurprisingly, is LTV, or Lifetime

153
00:14:05.280 --> 00:14:13.520
Gross Profit, over everything. The guys who can spend the most money on marketing are the ones

154
00:14:13.520 --> 00:14:18.160
who make the most money from ads. So when you see these massive marketing companies or these massive

155
00:14:18.160 --> 00:14:23.840
campaigns that are out there, it's not because they're better at marketing. It's because their LTV

156
00:14:23.840 --> 00:14:28.960
enables them to spend as much as evenly possible on the marketing. If you print cash on the back,

157
00:14:28.960 --> 00:14:35.280
and you can get silly on the front end, this has to sink in. This has to sink in. And I keep

158
00:14:35.280 --> 00:14:39.680
being repetitive about this because I continue to get the same questions whenever I go. And it's like,

159
00:14:39.680 --> 00:14:43.680
what's the new marketing trick? What's the new hack? It's like, you have to solve the root issue.

160
00:14:44.240 --> 00:14:49.280
And it's kind of like the, it's like the gal who's like, hey, is it keto? Is it intermittent fasting?

161
00:14:49.280 --> 00:14:53.440
Is it, you know what? I'm just trying to give the parallel here. That's what you sound like. You

162
00:14:53.440 --> 00:14:57.440
don't get it. You got to understand how to count your macros. It is what it is. Done.

163
00:14:58.320 --> 00:15:02.800
And so like in the business, it's like you have to figure out how to get the mouse trap to work,

164
00:15:02.800 --> 00:15:07.760
even at its simplest level, so that people actually like the thing you have. And I just feel like

165
00:15:07.760 --> 00:15:14.000
so many of the gyms that I see and I go to, it's obvious. Like takes five seconds to see why

166
00:15:14.000 --> 00:15:18.640
they're not successful. And the gym owner, because they're in it, can't see it. Because their ego,

167
00:15:18.640 --> 00:15:23.280
their identity is attached to it. Because you think that if your gym sucks, it means you suck.

168
00:15:23.440 --> 00:15:27.200
And that's not true. She have to break that. You should be like, oh, yeah, we suck at that.

169
00:15:28.560 --> 00:15:32.560
Onboarding, not existing. Turn for the roof.

170
00:15:34.720 --> 00:15:37.360
You should see my trainers. Slave each other. It's terrible.

171
00:15:38.560 --> 00:15:44.720
Place absolute pig stock, right? So what's your plan? I'm going to market it. I'm going to market it.

172
00:15:46.960 --> 00:15:51.440
Real quick, guys, you guys already know that I don't run any ads on this and I don't sell anything.

173
00:15:51.440 --> 00:15:54.880
And so the only ask that I can ever have are you guys that you help me spread the word so we

174
00:15:54.880 --> 00:15:59.280
can have more entrepreneurs, make more money, feed their families, make better products, and have

175
00:15:59.280 --> 00:16:03.680
better experiences for their employees and customers. And the only way we do that is if you can

176
00:16:03.680 --> 00:16:08.320
rate and review and share this podcast. So the single thing that I have to do is you can just leave

177
00:16:08.320 --> 00:16:12.480
review, let's take 10 seconds or one type of the thumb. It means the absolute will to me. And more

178
00:16:12.480 --> 00:16:14.640
importantly, it may change the world for someone else.

179
00:16:14.880 --> 00:16:27.200
So to give a quick recap, and if I have time for Q&A, I will. One, brand is making

180
00:16:27.200 --> 00:16:32.000
associations between things that are intangible with things that are tangible and unknown.

181
00:16:32.000 --> 00:16:37.200
So things that people like, if I hold a bunch of bricks of gold on stage or I hold a bunch of

182
00:16:37.200 --> 00:16:41.280
stacks of cash, you will make associations of money with me. And if you didn't know who I was,

183
00:16:41.280 --> 00:16:44.720
you would assume that I have something to do with money. That would be your assumption.

184
00:16:44.720 --> 00:16:48.720
That would be the association. If I stand next to a porn star, you would assume other things,

185
00:16:48.720 --> 00:16:55.520
right? Associations. And so if you want to build the brand, associate the service that you have

186
00:16:56.320 --> 00:17:01.280
with the intangible ideas you want the prospect to believe about you. So if you want them to think

187
00:17:01.280 --> 00:17:07.440
that you are clean and you are friendly and that you care and start there, magic wand. If you feel

188
00:17:07.440 --> 00:17:13.120
sad, immediately translate that into, I do not know what to do next. It massively simplifies this

189
00:17:13.120 --> 00:17:18.400
very hard, painful experience. It's been really helpful for me. So if you feel hopeless,

190
00:17:18.400 --> 00:17:23.360
or you don't know what to do, it means you just don't have options. You don't perceive that you

191
00:17:23.360 --> 00:17:28.880
have options. It's a lack of options. So you just have to become informed. So whenever I think

192
00:17:28.880 --> 00:17:33.840
sadness, I think ignorance. It's like, oh, that's solvable. And then I can start attacking it.

193
00:17:34.800 --> 00:17:39.200
On the flip side, if you have lots of options and you feel anxiety, it's because you don't know

194
00:17:39.200 --> 00:17:42.720
how to pick, which means you have to prioritize. It means you have a lack of strategy.

195
00:17:44.000 --> 00:17:51.280
Strategy is getting the most bang for the buck. It is allocating finite resources against infinite

196
00:17:51.280 --> 00:17:57.040
options. And some of the biggest strategic moves are outside the board. And that's where sometimes

197
00:17:57.040 --> 00:18:03.440
having gym lunch, other people, etc. is helpful because you have outside eyes. So your mouth,

198
00:18:03.440 --> 00:18:07.760
inch below your nose, but you still need somebody else to tell you a bad breath. I heard that the other

199
00:18:07.760 --> 00:18:12.480
day. I really liked it. Right now, there's a constraint in your business. If you do not know

200
00:18:12.480 --> 00:18:16.000
what the constraint of your business is, you will not solve it. You'll continue to do this shit

201
00:18:16.000 --> 00:18:19.760
you have been doing and that has not been getting you what you want. So right now, unless you change

202
00:18:19.760 --> 00:18:24.560
the activities you do, you will not change the getting that you are getting. So if you go back,

203
00:18:25.600 --> 00:18:32.560
so I'll give you a different one. So intelligence and learning, this will be fun. So

204
00:18:33.520 --> 00:18:38.160
the definition of intelligence as I define it is rate of learning. It's a speed.

205
00:18:38.160 --> 00:18:46.000
Someone learns fast. They're smart. Someone learns slow or a little slow. Right? Rate of learning.

206
00:18:46.000 --> 00:18:53.280
Okay. What does learning mean? This is how you can remember it. Same condition, new behavior.

207
00:18:55.040 --> 00:19:02.960
Which means the phone rigs and I trained you and you answered it one way before I trained you.

208
00:19:03.440 --> 00:19:08.080
And then I have the same condition. The phone rings again. And then after I trained you,

209
00:19:08.080 --> 00:19:14.480
you behave differently. You have learned. If you come to this event and you do things,

210
00:19:15.040 --> 00:19:18.960
and then you leave this event and you do the same things, you have learned nothing.

211
00:19:19.680 --> 00:19:24.320
Which means that change in behavior is the way that you can measure intelligence.

212
00:19:24.880 --> 00:19:30.880
The speed at which you change behavior within the same conditions is your rate of learning.

213
00:19:30.960 --> 00:19:36.880
The faster you do that, the smarter you are. It's a sum of y'all are hold on. I got to figure out the

214
00:19:36.880 --> 00:19:43.440
politically wrong one. Done. But again, when I define words or operationalize them, it becomes a lot

215
00:19:43.440 --> 00:19:47.680
more under my control. So I'm like, man, I don't want to be stupid. It's like, they got to do this thing.

216
00:19:49.200 --> 00:19:53.680
I went to this marriage seminar and they say that when my wife walks in the door, I should say

217
00:19:53.680 --> 00:19:59.600
something nice to her. Damn. All right. Walks in the door. You went to the seminar and you're like,

218
00:20:00.480 --> 00:20:04.560
nice blast. She's like, is that the top one or the bottom? We're like, I don't know.

219
00:20:07.040 --> 00:20:12.880
One of them, right? And so same condition, new behavior. It's also a great way to teach your team,

220
00:20:12.880 --> 00:20:16.800
which is like, I'm going to present this condition. We're going to train. And when I present

221
00:20:16.800 --> 00:20:20.080
this condition again, I need you to change your behavior. That's what learning is.

222
00:20:20.880 --> 00:20:24.560
And so everybody here, if you don't know what to do, then you're not going to be able to change

223
00:20:24.560 --> 00:20:30.080
behavior, which means you're not going to get a different outcome. So most of the success that I've

224
00:20:30.080 --> 00:20:38.480
had is my effort to try and boil everything down into an inputs to outputs equation. I remember

225
00:20:38.480 --> 00:20:44.000
when I was studying for the GMAT back in the day, I found this research study that showed that

226
00:20:44.000 --> 00:20:48.960
the number of problems that you solved was in direct correlation with the score you got on the test.

227
00:20:49.680 --> 00:20:55.680
And I was like, oh, yeah. Okay. This is a clear input output. Life isn't always this clean,

228
00:20:55.680 --> 00:21:00.080
but I was like, fantastic. So I did about a stack of phone books this high, and it four hours a day

229
00:21:00.080 --> 00:21:04.800
for 16 weeks of problems. And then I scored above a Harvard's midscore. I didn't start there,

230
00:21:04.800 --> 00:21:10.160
but I had the graph. I was like, more problems I do, the higher my score is. And by the time I got

231
00:21:10.160 --> 00:21:12.400
to the actual test, I was like, I've literally seen every one of these problems before, and I've

232
00:21:12.400 --> 00:21:18.080
done all of them a hundred times, right? And so we can really easy. And so if you don't have the inputs

233
00:21:18.080 --> 00:21:21.680
outputs equation, which will be the last thing I do, because Kale asked me to talk about leads.

234
00:21:23.680 --> 00:21:26.640
Then you're not going to get there. All right. So I'm going to give you guys a sneak peek.

235
00:21:27.440 --> 00:21:30.240
You can write it down. You can't take pictures or talk about it.

236
00:21:32.480 --> 00:21:37.120
There's only eight ways to get customers. You got warm outreach. You've got cold outreach.

237
00:21:37.680 --> 00:21:42.240
You got paid ads. You got content. These are the only four things that you can do.

238
00:21:42.960 --> 00:21:47.040
So if you claim that you're constrained because everything's amazing about your gym and your

239
00:21:47.040 --> 00:21:51.040
trainers aren't sleeping with each other. And the gym's really clean and people don't churn

240
00:21:51.040 --> 00:21:55.040
and your price appropriately. And you have a really good onboarding experience. And people get

241
00:21:55.040 --> 00:21:59.280
reached out on a regular basis to checking on them to show that you actually give a shit. You do all

242
00:21:59.280 --> 00:22:03.040
that stuff, right? And you think that your constraint is more marketing, which by the way,

243
00:22:03.040 --> 00:22:08.000
everyone thinks that's what it is. And if you keep thinking that, nothing changes. Maybe wrong.

244
00:22:08.000 --> 00:22:13.440
Anyways, let's talk about leads. So these are the only four things you can do. You can either

245
00:22:13.440 --> 00:22:21.440
post content, do warm reach outs, do cold reach outs, or run paid ads. Simple. I like to quantify

246
00:22:21.440 --> 00:22:25.520
this by the rule of 100, which means you either spend a hundred bucks a day on ads. You do 100 cold

247
00:22:25.520 --> 00:22:29.040
hour reaches, you do 100 warm hour reaches, or you do 100 minutes of content. You do it every day.

248
00:22:29.600 --> 00:22:35.440
And if you want to get there faster, do more. Because you'll also get better because you did more,

249
00:22:35.440 --> 00:22:41.120
just like the problems on the GMAT test. If you're not doing this stuff, what are you doing?

250
00:22:41.120 --> 00:22:49.200
You might be thinking about marketing or advertising, maybe strategizing, planning. You're not doing

251
00:22:49.200 --> 00:22:52.720
any of it. And the amount that you get will be directly proportional to how much of this stuff

252
00:22:52.720 --> 00:22:57.760
you do. This is how you let other people know about stuff. That's it. That's all there is. Now,

253
00:22:59.920 --> 00:23:05.840
OOP is other people. You've got your customers who can refer you people. You've got affiliates

254
00:23:06.480 --> 00:23:11.440
who can send you people. You've got employees who work for you. And then you've got agencies.

255
00:23:12.800 --> 00:23:20.320
Those are the other four types of people who can get you the stuff. If you think about it,

256
00:23:20.320 --> 00:23:26.560
any of these four do these on your behalf. This, by the way, is leverage.

257
00:23:27.280 --> 00:23:33.040
If I can go get my customers to tell everybody about my book, then I won't have to. If I can get

258
00:23:33.040 --> 00:23:38.400
affiliates, all the car practice places in a five mile radius from my gym and all the massage

259
00:23:38.400 --> 00:23:44.080
studios in a five mile radius from my gym to just give a free month with any new customer they have

260
00:23:44.720 --> 00:23:48.480
because they know that I will treat them right. Then I can just have 200 different businesses

261
00:23:49.200 --> 00:23:53.280
that come to me. Now, do those 200 businesses come out of the sky? Nope. What would you do?

262
00:23:54.320 --> 00:23:59.120
One, reach outs, cold reach outs, run ads, or make content targeting those people. Then they'd

263
00:23:59.120 --> 00:24:04.080
come and then they do those things on your behalf. Agency will do those things on your behalf.

264
00:24:04.080 --> 00:24:09.120
Or if you do all that stuff, then you cold outreach, cold outreach,

265
00:24:09.120 --> 00:24:13.920
warm outreach, paid ads may content you, get employees. And then the employees will do those things

266
00:24:13.920 --> 00:24:20.320
on your behalf. Is this simplifying some shit? Right now, business can feel confusing. And usually,

267
00:24:20.320 --> 00:24:24.160
it's because we have not defined terms. If you define the terms, then you can know what you're

268
00:24:24.160 --> 00:24:29.440
actually talking about rather than like making noise with your face. Okay? If you don't make noise

269
00:24:29.440 --> 00:24:32.960
with your face and just know what you're talking about, it becomes a lot easier because the variables

270
00:24:32.960 --> 00:24:37.760
become defined. And so if you want to get more leads, you have to do these things. If you want to

271
00:24:37.760 --> 00:24:41.040
get even more leads, you get other people to do these things for you, which starts with you doing

272
00:24:41.040 --> 00:24:49.760
these things to get those people. That's it. I have three minutes. So I'm going to see if I missed

273
00:24:49.840 --> 00:24:55.280
anything. By the way, giving away really good free stuff, great way to get more people to opt

274
00:24:55.280 --> 00:25:00.240
into your thing. Just in case anybody needed to be convinced about doing free stuff.

275
00:25:01.520 --> 00:25:06.960
All right, covered branding, covered all this stuff. All right, let's talk about this

276
00:25:06.960 --> 00:25:11.440
last three minutes. Last take talk of the day. Who here wants to know what it looks like when it's

277
00:25:11.440 --> 00:25:15.840
all the way right? Yeah, talk about scaling it. Okay, so this gives you a little bit of vision

278
00:25:15.920 --> 00:25:21.520
for the future. So we love local brands. They're great. They're wonderful capital compounding

279
00:25:21.520 --> 00:25:26.000
vehicles. What you need to know is how much does it cost to open a facility? All right, cost to open.

280
00:25:26.560 --> 00:25:30.080
Then you got to know your top line revenue or more specifically your bottom line profit

281
00:25:31.200 --> 00:25:35.840
per facility. The ratio between these things, let's say it's cost me 100K to open a facility.

282
00:25:35.840 --> 00:25:42.320
And let's say I make 100K per year, then I have a 100% cash and cash return. Who here members

283
00:25:42.320 --> 00:25:49.200
of the stock market is? Less than that, right? Which is why I like it. Now, this would not be that

284
00:25:49.200 --> 00:25:52.720
interesting to me. Why? Because I know there's a lot of operational drag associated with opening

285
00:25:52.720 --> 00:25:58.560
a facility. Just make 100 grand, right? And so the idea is how can I, is there a way that I can get

286
00:25:58.560 --> 00:26:05.040
a more leverage model so I can make maybe like 250 to 500,000 per facility? And then maybe even if

287
00:26:05.040 --> 00:26:12.240
it cost me 500 to make 500, then I only have to open one fifth as many facilities in order to

288
00:26:12.560 --> 00:26:17.760
compound my cash. Now, the way to do this, and this is one of the things that I've observed with

289
00:26:17.760 --> 00:26:23.120
some of the most successful franchisers in the space, is you have your facility. Now, it has been

290
00:26:23.120 --> 00:26:27.600
your special child. You have lots of due dads and lots of whiz bangs that you've attached to it,

291
00:26:27.600 --> 00:26:32.640
specialized sessions, blah, blah, blah. The franchises that are the most successful,

292
00:26:34.080 --> 00:26:38.320
simplify it. Even if they're corporate or headquarters has like all this stuff,

293
00:26:38.320 --> 00:26:42.880
when they want to scale, they massively simplify. They think how little square footage can I possibly

294
00:26:42.880 --> 00:26:45.840
use? Because I'm not using this to fill my ego, I'm using it to fill my bank account,

295
00:26:45.840 --> 00:26:50.400
big difference. How little can I make this so that I'm really efficient with capital?

296
00:26:51.280 --> 00:26:55.840
And then how can I make it as little operational drag as possible? I can do it with six people,

297
00:26:55.840 --> 00:27:01.360
but can I do it with three? How would I incentivize those people? I know I went from like super dirt,

298
00:27:01.360 --> 00:27:09.520
sorry, clouds to dirt here, but that is how you unlock going from five locations to 50 locations.

299
00:27:09.520 --> 00:27:12.720
And then you start building the machine that builds the locations. So then you have

300
00:27:12.720 --> 00:27:17.360
launch teams that fill it up before it opens. You turn it over to management. They keep running it.

301
00:27:17.360 --> 00:27:23.760
And the big key of making all of these work is that it can't just be based off some unique acquisition

302
00:27:23.760 --> 00:27:29.600
channel, because those all eventually go away. All advertising platforms will eventually become

303
00:27:29.600 --> 00:27:35.040
too expensive and they will eventually die because attention always moves, right? And so the only way

304
00:27:35.040 --> 00:27:39.040
to become enduring with your business, like if you really want to not, like if you want to sleep well

305
00:27:39.040 --> 00:27:44.000
at night, you have to fix the back end. If you know that if you don't sell any new customers,

306
00:27:44.000 --> 00:27:47.280
you're still going to be fine next month and you do that for three or four more months and you'll

307
00:27:47.280 --> 00:27:52.720
still be fine, that's the perfect business to then go market. But like that's the boring work

308
00:27:52.720 --> 00:27:57.840
that no one wants to do. I'm going to end with this one thing. A franchise or a really popular,

309
00:27:58.720 --> 00:28:05.760
not really popular. They had, I think, 20 locations. A franchise came to me and he's like,

310
00:28:05.760 --> 00:28:12.960
my franchise isn't working, right? And they had, I think, six corporate stores,

311
00:28:12.960 --> 00:28:18.560
14 franchised and the average store cost about a million bucks to open and they made about 150,000

312
00:28:18.560 --> 00:28:23.440
dollars in profit per year, right? It's like you might as well just like invest in a stock and just

313
00:28:23.440 --> 00:28:30.000
not bother, right? Like that's what you have to think with. And when I saw that they were doing,

314
00:28:30.720 --> 00:28:37.360
I think the average was like 1.3 in top line and 150 in bottom line. And I think they were running

315
00:28:37.360 --> 00:28:43.840
like a very small margin. I thought to myself, I think it's actually less than 150 point is

316
00:28:43.840 --> 00:28:49.680
shitty margins. He was trying to figure out how to market his franchise better. How ridiculous is

317
00:28:49.680 --> 00:28:54.080
that, right? But the thing is is that like many people who are in this room are thinking the exact

318
00:28:54.080 --> 00:28:58.880
same way. And so instead, what I said was, hey, man, I actually think your margins blow. And I think

319
00:28:58.880 --> 00:29:02.720
you have a lot of interest because that's why I took the call. I knew the brand. And I was like, I think

320
00:29:02.720 --> 00:29:07.680
you have really good products. I think you just, you just have to get the ops right to get your margins

321
00:29:07.680 --> 00:29:12.800
in check, right? You've got this menu that has 500 items on it, boil it down to the top 15 that

322
00:29:12.800 --> 00:29:17.520
everyone usually does. Look at all the ingredients by type, see if we can negotiate better deals with

323
00:29:17.520 --> 00:29:20.800
vendors because we're going to consolidate all over demand. We'll get more volume, et cetera,

324
00:29:20.800 --> 00:29:27.680
et cetera. And so what I did was I said, hey, we've got 12 months. I want you to spend one month,

325
00:29:28.480 --> 00:29:34.400
12 months in a row, to get 1% profit back. Once one, you get 1% back. It's all you have to do. It's

326
00:29:34.400 --> 00:29:39.040
my only thing that's 1% back. And next month, you're going to find another 1%. Next month, you're

327
00:29:39.040 --> 00:29:42.720
going to find another 1%. It's all you have to do. Hey, if you find three, three months ahead.

328
00:29:43.360 --> 00:29:48.560
Next month, another 1%. And 12 months from now, you would have a business that would be

329
00:29:48.560 --> 00:29:53.280
sellable, would be investible, and would have already tripled or whatever was the profit of that

330
00:29:53.280 --> 00:29:59.920
and made it a scalable enterprise. But he had spent 10 years, 10, trying to scale the franchise.

331
00:29:59.920 --> 00:30:04.320
When it was the big, obvious thing, the sandwich just wasn't that good. The sandwich in the

332
00:30:04.320 --> 00:30:08.400
literal sense was okay for the customer, but it was terrible for the investor. So you had to fix

333
00:30:08.400 --> 00:30:13.440
the model. And so I think right now, a lot of everyone here, as much as everybody loves to come

334
00:30:13.440 --> 00:30:18.160
for leads, and that's great. A lot of you guys are just serving media of percentages. And I think

335
00:30:18.160 --> 00:30:22.320
if you spent a year eating your own sandwich, you would immediately see all the things that are

336
00:30:22.320 --> 00:30:35.840
wrong with it. You'd fix that. And then the rest of your life, you'd be able to scale this thing.

337
00:30:38.400 --> 00:30:40.720
You