WEBVTT 1 00:00:00.000 --> 00:00:03.040 Let's go to everyone. Happy Tuesday. Hope you guys are going to be in a rocking and roll in Tuesday. 2 00:00:03.040 --> 00:00:10.560 Start to the week. I wanted to make this about, I've had many lessons over the last six months or whatever 3 00:00:10.560 --> 00:00:15.120 month it is for 2019. And I wanted to share one of them were particular with you because it kind of 4 00:00:15.120 --> 00:00:20.000 came up fresh today. And so I'm just calling it still half measures. And so one of the lessons 5 00:00:20.000 --> 00:00:24.160 that I've learned and I feel like I repeatedly learned and I learned in different situations 6 00:00:25.120 --> 00:00:31.680 is the power of going all in and cutting your ties, burning your boats. And so right now, 7 00:00:31.680 --> 00:00:35.600 obviously, we've talked about hybrid and the new model that's coming out. 8 00:00:36.880 --> 00:00:42.560 And I want everyone to know, and I'm saying this half to my audience as well as half the people who 9 00:00:42.560 --> 00:00:51.680 don't know who we are, that it's scary when you make changes, right? And the time to make changes 10 00:00:51.680 --> 00:00:57.440 is not when you're back is against the wall, right? When the stock market is going well, 11 00:00:57.440 --> 00:01:03.040 is the time that no one wants to sell, right? That's when no one wants to sell. And then it crashes. 12 00:01:03.040 --> 00:01:07.840 And then that's when everyone wants to get out and they lose everything, right? And so 13 00:01:08.880 --> 00:01:14.720 like the cost of having foresight, of having vision, of seeing what's going to come is the courage 14 00:01:15.440 --> 00:01:22.000 to break something that isn't broken and sacrifice good for great, right? That's the sacrifice. 15 00:01:22.000 --> 00:01:28.720 The sacrifice is good for great. It's sacrificing comfort for more, right? And it's almost like 16 00:01:28.720 --> 00:01:35.360 a spiritual experience. You have to, the old must die for the need to live. You can't do this 17 00:01:35.360 --> 00:01:40.400 half-assed. If you want to commit to something, you have to go all in. And so for us at gym lunch, 18 00:01:40.400 --> 00:01:46.000 like I told our entire team, I was like, we are going all in on this. And that's the job of 19 00:01:46.000 --> 00:01:51.440 the CEO that is your job is to look at your team even when they think you're crazy and say like, 20 00:01:51.440 --> 00:01:56.000 this is where I believe we are going. This is where I believe the market is going. And for these 21 00:01:56.000 --> 00:02:00.000 reasons that support this decision, this is what makes sense. And this is where we're going to go. 22 00:02:00.000 --> 00:02:05.680 And there are short periods of discomfort that follow those types of decisions that ultimately 23 00:02:05.680 --> 00:02:10.640 grow you and will grow your business. And when you endure through those, you will break through 24 00:02:10.640 --> 00:02:16.080 the other side. Now, the amount of people who laughed at people in 2007, right? Right before the 25 00:02:16.080 --> 00:02:20.720 crash where like, I think things are going to happen. Like, I'm selling everything. They're like, 26 00:02:20.720 --> 00:02:24.960 you're going to miss out. This thing's a bull market. We're going like this, right? Those guys 27 00:02:24.960 --> 00:02:30.560 seem like fools except a year and a half later when everyone had lost everything, right? And so 28 00:02:30.560 --> 00:02:38.720 I'm telling you right now that the market for gyms is about to contract, right? The market for 29 00:02:38.720 --> 00:02:43.440 large group training specifically is about to contract. It's already happening, right? You look at 30 00:02:43.440 --> 00:02:48.400 like in the stock market, there's a whatever I want to be going to do this. I feel like there's 31 00:02:48.400 --> 00:02:52.000 there are leading indicators, right? There are more gyms that are closing that are opening right now. 32 00:02:53.680 --> 00:02:58.720 Why? Right? Because in a competitive marketplace, once there are too many players in a marketplace, 33 00:02:58.720 --> 00:03:04.640 it begins to contract price pressures increase and drive down pricing and commoditization increases, 34 00:03:04.640 --> 00:03:09.520 which means it's harder and harder and harder to compete offering an equivalent service, right? 35 00:03:09.520 --> 00:03:14.480 And when profits go down or pricing gets driven down, profits almost disappear and that's why people 36 00:03:14.480 --> 00:03:20.000 start going under, okay? So how do you how do you combat against that? It's not incremental changes. 37 00:03:20.000 --> 00:03:26.080 It's not like it's not it's not like not 1.1 1.2 1.3. It's not incremental changes. It's massive 38 00:03:26.080 --> 00:03:32.080 changes. It's 1 to 0 or 0 to 1. New things, new models that are going to have to emerge from this, 39 00:03:32.080 --> 00:03:41.440 right? And so I'm saying this because like we at gym lunch as of 628 are not going to be selling 40 00:03:41.440 --> 00:03:47.280 gym lunch anymore, right? We are not even doing legacy anymore. Everything is all in on hybrid, 41 00:03:47.280 --> 00:03:52.320 right? Because I believe through and through that this is where everyone needs to go. And I also 42 00:03:52.320 --> 00:03:56.080 believe that in 24 months people will look back and I'm going to have these videos 43 00:03:58.240 --> 00:04:02.800 saying that this is what's what the new model is going to be, right? And this like the people who 44 00:04:02.800 --> 00:04:07.440 get in now are the ones who are going to be able to ride the ride that no one else is going to be able 45 00:04:07.440 --> 00:04:10.400 to do because they were afraid. And then everyone else is going to try and come in and copy after we 46 00:04:10.400 --> 00:04:17.440 have yanked all of the profit we've dominated all of the market share with this, right? And so 47 00:04:18.000 --> 00:04:24.240 like I beseech you, right? I'm begging you, for your own good, do not go half in. There are no 48 00:04:24.240 --> 00:04:29.840 half measures. You can't half impregnate someone. You can't half marry someone, right? Like you can't 49 00:04:29.840 --> 00:04:34.400 dip your toe in the water. It does not work that way. Like it requires burning your boats and 50 00:04:34.400 --> 00:04:41.120 making the full decision all in on what you believe is right. And what is right a lot of times is 51 00:04:41.120 --> 00:04:46.800 not what's popular and it's not what's easy. It's easy to do nothing. It's easy to stay the same. 52 00:04:46.800 --> 00:04:52.400 It's easy to stay comfortable, right? But the thing is is so many people stay comfortable. Stay 53 00:04:52.400 --> 00:04:58.560 where it's easy. Staying the road that is trotting, right? That is has been walked on. And those are 54 00:04:58.560 --> 00:05:03.360 the people who find themselves in the same boat as everyone else, right? And so it's like I want to 55 00:05:03.360 --> 00:05:06.640 I want to achieve what no one else has achieved. And you have to do the things that no one else has 56 00:05:06.640 --> 00:05:12.560 done, right? Or no one else is willing to do. And more times than not, it's fear. It's pure fear. 57 00:05:13.520 --> 00:05:18.800 And so what I will beseech you to do is that you have to walk through the logical outcomes of 58 00:05:18.800 --> 00:05:24.320 what happens. What happens next, right? What are my fears, right? And you have to paint out your 59 00:05:24.320 --> 00:05:31.040 worst case scenario. We'll go guys. You guys already know that I don't run any ads on this and I 60 00:05:31.040 --> 00:05:34.800 don't sell anything. And so the only ask that I can ever have are you guys that you help me spread 61 00:05:34.800 --> 00:05:39.280 the words we cannot more entrepreneurs, make more money, feed their families, make better products 62 00:05:39.280 --> 00:05:43.680 and have better experiences for their employees and customers. And the only way we do that is if 63 00:05:43.680 --> 00:05:48.480 you can rate and review and share this podcast. So the single thing that I have to do is you can just 64 00:05:48.480 --> 00:05:52.720 leave review, take 10 seconds or one type of the thug that it means the absolute world to me and 65 00:05:52.720 --> 00:05:58.720 more importantly, it may change the world for someone else. And Layla and I go through this exercise 66 00:05:58.720 --> 00:06:04.400 all the time whenever we make a big pivot, right? Mind you. When I when we just made this change, 67 00:06:04.400 --> 00:06:09.600 right? And it's in the in the middle of it and on 628, well, but you 100% done. But like, 68 00:06:09.600 --> 00:06:17.760 I am taking a 25% hit on my cash flow. Significant, right? Businesses don't run on 100% margins, right? 69 00:06:17.760 --> 00:06:21.760 So right now, if you think about your business, if you took 25% of your gross revenue and kept 70 00:06:21.760 --> 00:06:26.720 your costs the same, what happened? You probably would make less. You might even lose money. Why would 71 00:06:26.720 --> 00:06:32.800 I make such a drastic decision? Because I'm all in, right? Because I believe that the truth will always 72 00:06:32.800 --> 00:06:40.240 win and that the best model will always win. Period. Just give in time, right? And so that is that 73 00:06:40.240 --> 00:06:45.280 is my that is my my word for everybody day is like no half measures. If you're making a change, 74 00:06:45.280 --> 00:06:49.440 go all in. Don't let it be incremental. Don't dip your toe in. Don't say I'm not really sure because 75 00:06:49.440 --> 00:06:53.680 when that happens, you will not succeed and you guarantee it, right? And then you start to tell 76 00:06:53.680 --> 00:06:59.040 yourself the story of like, well, you know, maybe it just wasn't for us or something like that, 77 00:06:59.040 --> 00:07:03.840 right? You tell yourself that story, but it was because you did not go all in. You went half 78 00:07:03.840 --> 00:07:08.400 in. And that is why you did not succeed. So like, you have to be willing to burn your boats. You 79 00:07:08.400 --> 00:07:11.680 have to be willing to make sacrifice. You have to be willing to have hard conversations with your 80 00:07:11.680 --> 00:07:16.240 staff, with your clients, with yourself, with your spouse, because that isn't what's required, 81 00:07:16.240 --> 00:07:20.560 not what's desired, but what is required to get to where you want to go. All right. Sorry, 82 00:07:20.560 --> 00:07:25.680 little feeling today. So anyways, I hope you guys have a great start, you know, to your week. 83 00:07:25.680 --> 00:07:30.240 Um, maybe look at some of the things that you've been putting off that you know are the right 84 00:07:30.240 --> 00:07:37.600 decisions and, um, and not doing them because I can tell you like, they only, they don't go away. 85 00:07:37.600 --> 00:07:40.960 They don't go away. They come back and they bite you and they ask with interest, right? The more 86 00:07:40.960 --> 00:07:47.120 time you let something to do, let something not change that you should have changed. Stay that way. 87 00:07:48.320 --> 00:07:53.040 The bigger the bite gets. So, um, and that happens in stock markets. That happens in real estate 88 00:07:53.120 --> 00:07:56.480 happens in business, right? And so right now, I'm telling you, this is where it's going. 89 00:07:57.200 --> 00:08:04.240 Um, like the market will change. Right now, lifetime fitness is goals, you know, 24-hour fitness, 90 00:08:04.240 --> 00:08:08.160 all of them have group training classes with highly skilled trainers because they're pulling from 91 00:08:08.160 --> 00:08:12.800 the same talent pool as we are. But my community is so great. Everyone's is whenever you have humans 92 00:08:12.800 --> 00:08:16.480 in a room, you have a good community, right? As long as you're not a dick, right? And the thing is 93 00:08:16.480 --> 00:08:22.320 is you're not even there. Your trainers are there, right? So you're not even involved in it, right? 94 00:08:22.320 --> 00:08:25.680 And that means that you have the exact same environment that they do, except they're offering 95 00:08:25.680 --> 00:08:32.000 parking, amenities, pools, everything, right? Better equipment. And they're doing it at half 96 00:08:32.560 --> 00:08:37.040 to a quarter of the price that we are because they have the square footage and they can do that, right? 97 00:08:37.040 --> 00:08:42.000 And they have $10 million facilities. So how do you compete with that? You do not. You play a 98 00:08:42.000 --> 00:08:46.800 different game. And that is why I'm so, so passionate about this because I'm telling you, this is what's 99 00:08:46.800 --> 00:08:54.640 going to happen. So anyways, guys, I hope, I hope maybe one person hears this and decides to not 100 00:08:54.640 --> 00:08:59.280 not dip their toe in, not think, I'm not sure, you know what I mean? Sounds like a big change. It 101 00:08:59.280 --> 00:09:04.320 is huge. It's a massive change. It's enormous. It's an entirely new way, a new core offer, a new way 102 00:09:04.320 --> 00:09:09.200 of doing business, right? It's a new way of doing business for me entirely entirely new. I don't 103 00:09:09.280 --> 00:09:17.280 need to do this. You know what I mean? Like, I don't need to do this. But if I stay awake at night and 104 00:09:17.280 --> 00:09:25.280 I think to myself, what do we stand for? What are my life to be about? Then, then you're left with 105 00:09:25.280 --> 00:09:28.400 no other option, right? And then you take yourself down the logic of having, like, well, then I guess 106 00:09:28.400 --> 00:09:32.400 the only thing I have to do is because you have to change, right? We got to grow or die. If we say 107 00:09:32.400 --> 00:09:37.680 that's our core tenant, then we got to walk him, right? And growing or dying is painful, right? 108 00:09:37.680 --> 00:09:42.560 Dying is painful too. And so is growth. Both are painful. It's just which kind of pain do you want? 109 00:09:42.560 --> 00:09:48.080 Right? So, anyways, have an amazing day, guys. I hope, I don't know, this inspires somebody who's 110 00:09:48.080 --> 00:09:52.320 delaying a decision that you need to make. Maybe you need to let a trainer go, right? Confront it. 111 00:09:52.320 --> 00:09:58.000 No half measures. Don't try and lean it off. Confront, right? Maybe you'll climb sucks, right? 112 00:09:58.000 --> 00:10:02.880 Confront, no half measures, right? You have to make a change. You've got to cut classes, right? 113 00:10:03.520 --> 00:10:07.600 Do it. Make the change, all right? No one's going to wait for you. It's just going to, 114 00:10:07.600 --> 00:10:12.080 it's going to build up with interest and then each you way down the road when it's a monster with 115 00:10:12.080 --> 00:10:17.440 huge ST. I'd rather kill a little dragon than a bimbo. All right. Be easy, guys. Catch you later.