WEBVTT 1 00:00:00.000 --> 00:00:05.600 Do not go half it. There are no half measures. You can't half impregnate someone. You can't half marry 2 00:00:05.600 --> 00:00:09.600 someone, right? You can't dip your toe in the water. It does not work that way. 3 00:00:12.400 --> 00:00:15.680 The wealthiest people in the world see business as a game. This podcast, the game, 4 00:00:15.680 --> 00:00:19.200 is my attempt at documenting the lessons I've learned on my way to building acquisition.com 5 00:00:19.200 --> 00:00:22.640 into a billion dollar portfolio. My hope is that you use the lessons to bring your business and 6 00:00:22.640 --> 00:00:26.080 maybe someday soon partner with us to get to a hundred million dollars in beyond. I hope you share 7 00:00:26.080 --> 00:00:32.800 and enjoy. One of the lessons that I've learned and I feel like I repeatedly learned and I learned 8 00:00:32.800 --> 00:00:38.080 in different situations is the power of going all in and cutting your ties, earning your boats. 9 00:00:38.880 --> 00:00:44.000 And so right now, obviously, we've talked about hybrid and the new model that's coming out. 10 00:00:45.280 --> 00:00:49.920 I want everyone to know that I'm saying this half to my audience as well as half the people who 11 00:00:49.920 --> 00:00:58.080 don't know who we are, that it's scary when you make changes, right? And the time to make changes 12 00:00:58.080 --> 00:01:03.840 is not when you're back as against the wall, right? When the stock market is going well, 13 00:01:03.840 --> 00:01:09.440 is the time that no one wants to sell, right? That's when no one wants to sell and then it crashes 14 00:01:09.440 --> 00:01:14.320 and then that's when everyone wants to get out and they lose everything, right? And so, 15 00:01:15.280 --> 00:01:21.200 like the cost of having foresight, of having vision, of seeing what's going to come is the courage 16 00:01:21.840 --> 00:01:28.400 to break something that isn't broken and sacrifice good for great, right? That's the sacrifice. 17 00:01:28.400 --> 00:01:34.320 It's sacrificing good for great. It's sacrificing comfort for more, right? And it's almost like 18 00:01:34.320 --> 00:01:39.680 a spiritual experience. You have to, the old must die for the need to live. You can't do this 19 00:01:39.680 --> 00:01:43.760 half-assed. If you want to commit to something, you have to go all in. And so like for us, 20 00:01:43.760 --> 00:01:48.560 at gym lunch, like I told our entire team, I was like, we are going all in on this. And that's 21 00:01:48.560 --> 00:01:54.000 the job of the CEO. That is your job is to look at your team. Even when they think you're crazy and 22 00:01:54.000 --> 00:01:58.720 say like, this is where I believe we are going. This is where I believe the market is going. And for 23 00:01:58.720 --> 00:02:02.320 these reasons that support this decision, this is what makes sense. And this is where we're going 24 00:02:02.320 --> 00:02:08.720 to go. And there are short periods of discomfort that follow those types of decisions that ultimately 25 00:02:08.720 --> 00:02:13.680 grow you and will grow your business. And when you endure through those, you will break through 26 00:02:13.680 --> 00:02:19.120 the other side. Now, the amount of people who laughed at people in 2007, right, right before the 27 00:02:19.120 --> 00:02:22.480 crash, who are like, I think things are going to happen. I'm selling everything. They're like, 28 00:02:22.480 --> 00:02:26.720 you're going to miss out. This thing's a bull market. We're going like this, right? Those guys 29 00:02:26.720 --> 00:02:32.000 seem like fools, except a year and a half later, when everyone had lost everything, right? 30 00:02:32.080 --> 00:02:39.760 And so I'm telling you right now that the market for gyms is about to contract, right? The 31 00:02:39.760 --> 00:02:44.880 market for large group training specifically is about to contract. Are you happy? Right? You look 32 00:02:44.880 --> 00:02:49.920 at in the stock market, there's a whatever I want to give you to this. I feel like there's, 33 00:02:49.920 --> 00:02:53.520 there are leading indicators, right? There are more gyms that are closing than are opening right now. 34 00:02:55.200 --> 00:03:00.240 Why? Right? Because in a competitive marketplace, once there are too many players in a marketplace, 35 00:03:00.240 --> 00:03:06.160 it begins to contract price pressures increase and drive down pricing and commoditization increases, 36 00:03:06.160 --> 00:03:11.200 which means this harder and harder and harder compete offering an equivalent service, right? And 37 00:03:11.200 --> 00:03:15.920 when profits go down or pricing gets driven down, profits almost disappear and that is why people 38 00:03:15.920 --> 00:03:20.960 will start going under, okay? So how do you come back against that? It's not incremental changes. 39 00:03:20.960 --> 00:03:26.240 It's not, it's not, it's not like not 1.1, 1.2, 1.3. It's not incremental changes. It's 40 00:03:26.240 --> 00:03:31.920 massive changes. It's 1 to 0 or 0 to 1. New things, new models that are going to have to emerge 41 00:03:31.920 --> 00:03:41.360 from this, right? And so I'm saying this because like we at gym lunch as of 628 are not going to be 42 00:03:41.360 --> 00:03:47.440 selling gym lunch anymore, right? We are not even doing legacy anymore. Everything is all in on hybrid, 43 00:03:47.440 --> 00:03:52.400 right? Because I believe through and through that this is where everyone needs to go. And I also 44 00:03:52.400 --> 00:03:58.000 believe that in 24 months people will look back and I'm going to have these videos saying that this 45 00:03:58.000 --> 00:04:02.960 is what's what the new models were, right? And this is like the people who get in now or the 46 00:04:02.960 --> 00:04:06.480 ones who are going to be able to ride the ride that no one else is going to be able to do because they 47 00:04:06.480 --> 00:04:11.200 were afraid. And then everyone's going to try to come in and copy after we have yaked all of the 48 00:04:11.200 --> 00:04:18.560 profit we've dominated all of the market share with this, right? And so I beseech you and begging you 49 00:04:18.560 --> 00:04:24.320 for your own good. Do not go half in. There are no half measures. You can't half and pregnant 50 00:04:24.320 --> 00:04:29.120 someone. You can't half marry someone, right? You can't dip your toe in the water. It does not work 51 00:04:29.120 --> 00:04:34.160 that way. Like it requires burning your boats and making the full decision all in on what you 52 00:04:34.160 --> 00:04:40.240 believe is right. And what is right a lot of times is not what's popular and it's not what's 53 00:04:40.240 --> 00:04:46.480 easy. It's easy to do nothing. It's easy to stay the same. It's easy to stay comfortable, right? 54 00:04:46.480 --> 00:04:52.000 But the thing is is so many people stay comfortable. Stay where it's easy. Stay in the road that is 55 00:04:52.000 --> 00:04:57.680 trotting, right? That has been walked on. And those are the people who find themselves in the same 56 00:04:57.680 --> 00:05:02.000 boat as everyone else, right? And so it's like I want to achieve what no one else has achieved. 57 00:05:02.000 --> 00:05:06.000 And you have to do the things that no one else has done, right? Or no one else is willing to do. And 58 00:05:06.000 --> 00:05:13.760 more times than not, it's fear. It's pure fear. And so what I will beseech you to do is that you 59 00:05:13.760 --> 00:05:18.800 have to walk through the logical outcomes of what happens. What happens next, right? 60 00:05:18.800 --> 00:05:22.160 What are my fears, right? And you have to paint out your worst case scenario. 61 00:05:24.160 --> 00:05:28.720 Real quick guys, you guys already know that I don't run any ads on this and I don't sell anything. 62 00:05:28.720 --> 00:05:32.240 And so the only ask that I can ever have are you guys that you help me spread the words we can 63 00:05:32.240 --> 00:05:37.040 out more entrepreneurs, make more money, feed their families, make better products, and have better 64 00:05:37.040 --> 00:05:41.520 experiences for their employees and customers. And the only way we do that is if you can rate and 65 00:05:41.520 --> 00:05:46.080 review and share this podcast. So the single thing that I have to do is you can just leave a review, 66 00:05:46.080 --> 00:05:50.320 take 10 seconds or one type of the thug that it means the absolute will to me and more importantly, 67 00:05:50.320 --> 00:05:55.440 it may change the world for someone else. And Layla and I go through this exercise all 68 00:05:55.440 --> 00:05:59.920 the time whenever we make a big pivot, right? Mind you, we just made this change, right? And 69 00:05:59.920 --> 00:06:06.560 it's worked in the middle of it and on 628 will be 100% done. But like I am taking a 25% hit 70 00:06:06.560 --> 00:06:13.120 on my cash flow. Significant, right? Businesses don't run on 100% margins, right? So right now, 71 00:06:13.120 --> 00:06:17.600 if you think about your business, if you took 25% of your growth revenue and kept your costs the same, 72 00:06:17.600 --> 00:06:22.080 what happened? You probably would make less. You might even lose money. Why would I make such a 73 00:06:22.080 --> 00:06:28.000 drastic decision? Because I'm all lit, right? Because I believe that the truth will always win and 74 00:06:28.000 --> 00:06:34.240 that the best model will always win. Period. Just give it time, right? And so there's my word for 75 00:06:34.240 --> 00:06:39.120 everybody today is like no half measures. If you're making a change, go all in. Don't let it be 76 00:06:39.120 --> 00:06:42.800 incremental. Don't dip your toe in. Don't say I'm not really sure because when that happens, 77 00:06:42.800 --> 00:06:47.840 you will not succeed and you guarantee it. And then you start to tell yourself the story of like, 78 00:06:47.840 --> 00:06:52.160 well, you know, maybe it just wasn't for us or something like that, right? You tell yourself 79 00:06:52.160 --> 00:06:57.120 that story, but it's because you did not go all in. You like, shaft it. And that is why you did 80 00:06:57.120 --> 00:07:01.360 not succeed. So you have to be willing to burn your boats. You have to be willing to make sacrifice. 81 00:07:01.360 --> 00:07:05.440 You have to be willing to have hard conversations with your staff, with your clients, with yourself, 82 00:07:05.440 --> 00:07:10.160 with your spouse, because that isn't what you're required. Not what's desired, but what is required 83 00:07:10.160 --> 00:07:14.560 to get to where you want to go. All right. Sorry. We'll feel it today. So anyways, I hope you guys 84 00:07:14.560 --> 00:07:18.720 are having a great start to your week. Maybe look at some of the things that you've been putting off 85 00:07:18.720 --> 00:07:23.680 that you know are the right decisions and and not doing them because I can tell you like, 86 00:07:24.480 --> 00:07:29.040 they only they don't go away. They don't go away. They come back and they bite you and ask with 87 00:07:29.040 --> 00:07:33.760 interest, right? The more time you let something to do, let something not change that you should 88 00:07:33.760 --> 00:07:40.240 have changed. Stay that way. The bigger the bite gets. And that happens at stock markets. That 89 00:07:40.240 --> 00:07:44.240 happens in real estate, happens in business, right? And so right now I'm telling you, this is where 90 00:07:44.240 --> 00:07:51.120 it's going. Like the market will change. Right now, lifetime fitness is goals, 24-hour fitness, 91 00:07:51.120 --> 00:07:55.040 all of them have group training classes with highly skilled trainers because they're pooling from 92 00:07:55.040 --> 00:07:59.280 the same talent pool as we are. But my community is so great. Everyone says whenever you have 93 00:07:59.280 --> 00:08:03.040 humans in a room, you have a good community, right? As long as you're not a dick, right? And the 94 00:08:03.040 --> 00:08:07.760 thing is is you're not even there. Your trainers are there, right? So you're not even involved in, 95 00:08:08.800 --> 00:08:12.560 right? And that means that you have the exact same environment that they do, except they're offering 96 00:08:12.560 --> 00:08:20.000 parking, amenities, pools, everything, right? Better equipment. And they're doing it at half to a 97 00:08:20.000 --> 00:08:24.000 quarter of the price that we are because they have the square footage and they can do that, right? 98 00:08:24.000 --> 00:08:27.680 And they have 10 million dollar facilities. So how do you compete with that? You do not. 99 00:08:28.480 --> 00:08:33.280 You play a different game. And that is why I'm so, so passionate about this because I'm telling you, 100 00:08:33.280 --> 00:08:39.840 this is what's going to happen. So anyways, guys, I hope, I hope maybe one person hears this and 101 00:08:39.840 --> 00:08:44.640 decides to not not dip their toe in, not think I'm not sure, you know what I mean? It sounds like a 102 00:08:44.640 --> 00:08:50.000 big change. It is huge. It's a massive change. It's enormous. It's an entirely new way, a new core 103 00:08:50.000 --> 00:08:53.120 offer, a new way of doing business, right? It's a new way of doing business for me. 104 00:08:53.840 --> 00:08:57.840 It's entirely new. I don't need to do this. You know what I mean? Like, I don't need to do this. 105 00:08:59.760 --> 00:09:07.120 But if I stay awake at night and I think to myself, what do we stand for? What are all my life to be 106 00:09:07.120 --> 00:09:12.240 about? Then you're left with no other option. And then you take yourself down the logic of 107 00:09:12.240 --> 00:09:15.440 having like, well, that I guess the only thing I have to do is we have to change, right? We got to 108 00:09:15.440 --> 00:09:21.360 grow or die. If we say that they're for tenet, then we got to walk in, right? And growing or dying 109 00:09:21.360 --> 00:09:26.080 is painful, right? Dying is painful too. And so is growth. Both are painful. It's just which kind 110 00:09:26.080 --> 00:09:31.840 of pain do you want, right? So anyways, have an amazing day, guys. I hope I know this inspired 111 00:09:31.840 --> 00:09:35.680 somebody who's the language decision that you need to make. Maybe you need to let a trainer go 112 00:09:35.680 --> 00:09:40.880 confront it. No half measures. Don't try and lean it off, confront, right? Maybe you'll climb, 113 00:09:40.880 --> 00:09:45.760 suck, confront. No half measures. You have to make a change. You got to cut classes, right? 114 00:09:46.400 --> 00:09:56.240 Do it. Make the change. All right. No one's going to wait for you.