WEBVTT

1
00:00:00.000 --> 00:00:05.520
why your feelings are killing your finances. So one of the fun quotes that I love about business

2
00:00:05.520 --> 00:00:11.200
is business is simply mathematical decisions made within the context of human psychology,

3
00:00:11.200 --> 00:00:16.240
which essentially means that you need to do arithmetic and division and algebra in order to make

4
00:00:16.240 --> 00:00:22.240
business decisions and then overlay that on the people that they're going to affect, right? And so

5
00:00:22.240 --> 00:00:27.120
one of the fun things is that if you look at really, really high up CEOs, like you look at Elon

6
00:00:27.600 --> 00:00:33.280
Mark Zuckerberg and you listen or Warren Buffett and you listen to them speak, right? They sound

7
00:00:33.280 --> 00:00:40.720
like computers, like Bill Gates. They sound like robots. They sound devoid of any human emotion.

8
00:00:40.720 --> 00:00:44.320
And I think that that's there's the nature and nurture part of it, which is that there's some

9
00:00:44.320 --> 00:00:50.720
people who are CEOs who are, I don't want to say like sociopaths, but like basically who have

10
00:00:50.720 --> 00:00:55.200
a little bit less human affect than others and they're able to make mathematical decisions

11
00:00:55.200 --> 00:00:59.760
despite some of the emotions that may be around them which actually make better business

12
00:00:59.760 --> 00:01:04.000
sense even though they may be difficult. The thing is is that once you get up to that level,

13
00:01:04.000 --> 00:01:07.200
that billionaire is dead, I said I'm not there, but I'm just saying if you observe the people

14
00:01:07.200 --> 00:01:13.600
who are there, it's a very common trend. And I think this is my, you know, petition is that

15
00:01:13.600 --> 00:01:18.240
the reason that they're able to achieve that is because they're able to make decisions devoid

16
00:01:18.240 --> 00:01:24.240
of human emotion. And so the human within the context of human psychology, the second part of

17
00:01:24.240 --> 00:01:28.720
that sentence, a lot of times comes into play when you're talking about sales and marketing and

18
00:01:28.720 --> 00:01:35.120
positioning because all of that is soft skills. But when it comes to the business model monetization

19
00:01:35.120 --> 00:01:41.920
and then in some instances, making the difficult decisions around personnel, a lot of times your

20
00:01:41.920 --> 00:01:46.480
emotions are really only things that are going to get in your way. There are a lot of decisions

21
00:01:46.480 --> 00:01:51.360
right now that you may or may not be making because you have emotional charge around them.

22
00:01:51.360 --> 00:01:57.200
So you may have a fire decision or a hiring just like somebody who you know is not best

23
00:01:57.200 --> 00:02:03.200
for that position. And it is up to you as the business owner to be able to make the decision

24
00:02:03.200 --> 00:02:08.080
without the emotion. And so what happens is, and this is something that I've noticed is that

25
00:02:08.960 --> 00:02:15.600
I've become less and less reactive as we have gone higher and higher and higher up in business

26
00:02:15.600 --> 00:02:20.480
because you have to be. And if you aren't, then you won't keep moving up. And so it's like if you

27
00:02:20.480 --> 00:02:23.760
see these people all the way up here, and some part of you might say like, I don't know if I

28
00:02:23.760 --> 00:02:29.280
want to be that. And that's fair. But in order to get all the way up here, you basically in some

29
00:02:29.280 --> 00:02:36.480
ways have to become like a robot and be able to show up neutral in all situations so that you

30
00:02:36.480 --> 00:02:41.200
can't get hotheaded, so that you can show up consistently to your team and make decisions that

31
00:02:41.200 --> 00:02:46.160
they can have faith in that they are logical, that they are based on math, they are based on

32
00:02:46.240 --> 00:02:52.480
reason and not based on like swings of emotion of feeling like we're doing great, oh no, we suck.

33
00:02:52.480 --> 00:02:57.280
Because the reality is that usually it's in the middle. Nothing, and this is just like one of the

34
00:02:57.280 --> 00:03:00.400
like I was going to make this thing for my birthday and then decided not to, but like one of the

35
00:03:00.400 --> 00:03:04.640
lessons that I've learned has been that nothing is ever is good as you think it's going to be

36
00:03:04.640 --> 00:03:08.400
or as bad as you think it's going to be. The only things that are above those things are things

37
00:03:08.400 --> 00:03:12.880
that you don't think about. So the only things that will be worse than you ever imagined are things

38
00:03:12.880 --> 00:03:17.680
that you didn't expect to come. Anything that like nothing is going to be better than you imagined

39
00:03:17.680 --> 00:03:21.600
except for things that you didn't expect to have happened. I did not expect Jim wants to take

40
00:03:21.600 --> 00:03:25.520
off the way that it did because the original model that we had was not the model that we switched

41
00:03:25.520 --> 00:03:30.080
to and we have now. This model I did not have a huge anticipation for because I was actually getting

42
00:03:30.080 --> 00:03:34.000
out of the business when I made the decision to switch it to a done with you model instead of

43
00:03:34.000 --> 00:03:38.640
a done for you model and that's when everything took off. And so it's the things that we don't expect

44
00:03:38.640 --> 00:03:42.560
oftentimes that do the things that are beyond that. And the reason I'm saying this is because

45
00:03:42.560 --> 00:03:48.640
we have so much emotion that's charged on the future, charged on our anxieties or our hopes.

46
00:03:48.640 --> 00:03:53.120
And a lot of times that impairs our ability to function today. And a lot of times whether it's

47
00:03:53.120 --> 00:03:57.360
good or bad, how you show up to the team in a positive way or negative way. Like if you're

48
00:03:57.360 --> 00:04:01.760
somebody who's like really cold or really hot, like if you're like I always want to be positive,

49
00:04:01.760 --> 00:04:08.400
like that also is not good because it just shows that you're not stable. And so the goal in my

50
00:04:09.040 --> 00:04:12.080
and what I observe with people who are doing much better than me is that I talk about this

51
00:04:12.080 --> 00:04:16.560
all the time that it's quiet. They keep their surroundings quiet. They always show up the same.

52
00:04:16.560 --> 00:04:21.760
That's why consistency is so key so that you have these routines in place that you can show up

53
00:04:21.760 --> 00:04:27.680
the same every single day independent of the circumstances around you so that you can make the

54
00:04:27.680 --> 00:04:34.240
decisions using the same frameworks and using logic and feelings. And so one of the goals that

55
00:04:34.240 --> 00:04:40.000
Lail always has is as a leader and she puts this posted on her on her computer is be neutral.

56
00:04:40.000 --> 00:04:46.240
And so it's the reason it's so hard is that the middle path is so difficult, right? It's the

57
00:04:46.240 --> 00:04:51.120
dichotomy of leadership. Like you want to be really high when it's high and you want to be really low

58
00:04:51.120 --> 00:04:56.560
when it's low and entrepreneurs by nature tend to be more emotional. That's what creates the creative

59
00:04:56.560 --> 00:05:01.840
spark that creates the desire to innovate. It's what is the initial thing that allows you to get

60
00:05:01.840 --> 00:05:06.160
that emotion going to take the risk to leave your job to start the business to do all these things

61
00:05:06.720 --> 00:05:12.320
and then the moment you start you have to be the opposite of who you are in order to succeed.

62
00:05:12.320 --> 00:05:16.880
And so it's very counterintuitive that you're like wait I have to be devoid of emotion. And so

63
00:05:17.600 --> 00:05:22.640
what happens is you have to start these things with practice. It's like well how do I do that? How

64
00:05:22.640 --> 00:05:28.240
to make emotions without feelings and the best way at least in my experience is to always break

65
00:05:28.400 --> 00:05:34.400
down the math, right? Is to break it down the math and put as many decisions as I can through data

66
00:05:34.400 --> 00:05:40.080
and actually extrapolate out what this decision means data wise. And so a lot of times if you're

67
00:05:40.080 --> 00:05:47.600
looking okay how much it will it cost me to keep someone in a position that they are not suited for

68
00:05:47.600 --> 00:05:51.840
and then I start breaking down. Okay well I have the cost that I'm actually paying and that's the

69
00:05:51.840 --> 00:05:56.640
hard cost, right? And then I have the soft cost of the job that they're actually not doing. So it's

70
00:05:57.120 --> 00:06:01.600
there's money that's going out for them, right? And then there's the value that they're not

71
00:06:01.600 --> 00:06:05.920
added, which is actually a double burn. And then if there's someone who is in leadership then it's

72
00:06:05.920 --> 00:06:11.440
all of the downstream effects of the decreased effectiveness of the entire team and then you have

73
00:06:11.440 --> 00:06:15.760
the hard costs for those members. And so you can see how these things extrapolate out. And so

74
00:06:17.280 --> 00:06:22.080
breaking it down to the numbers like that sometimes can give you the confidence to make the

75
00:06:22.080 --> 00:06:28.080
decisions that sometimes are difficult to make. And I think that what happens over time is that you

76
00:06:28.080 --> 00:06:34.880
just get used to it. Real quick guys if you can think about how you found this podcast,

77
00:06:34.880 --> 00:06:39.520
somebody probably tweeted it, told you about it, shared it on Instagram or something like that.

78
00:06:39.520 --> 00:06:44.240
The only way this grows is through word of mouth. And so I don't run ads, I don't do sponsorships,

79
00:06:44.240 --> 00:06:48.480
I don't sell anything. My only ask is that you continue to pay it forward to whoever showed you

80
00:06:48.480 --> 00:06:53.120
or however you found out about this podcast that you do the exact same thing. So if it was a review,

81
00:06:53.120 --> 00:06:56.320
if it was a post, if you do that would mean the world to me and you'll throw some good karma

82
00:06:56.320 --> 00:07:04.160
out there for another entrepreneur. And so your skin gets thicker. And a lot of times if you look at

83
00:07:04.160 --> 00:07:10.000
some of these interviews like I was referencing, if you watch these CEOs, the super high level entrepreneurs,

84
00:07:10.960 --> 00:07:15.920
they're very deliberate with how they speak and what they say because

85
00:07:16.320 --> 00:07:23.520
they've done it so many times, it becomes second nature. And it's difficult to develop that

86
00:07:23.520 --> 00:07:28.400
type of thick skin without going through the fire pit in the gauntlet of having

87
00:07:29.520 --> 00:07:35.920
you know, employees that you loved start you know claiming that you were a racist and trying

88
00:07:35.920 --> 00:07:40.960
to sue you. And having it, you know, I've been like, I love everybody. I'm an equal opportunity,

89
00:07:41.040 --> 00:07:47.280
everything. Okay, but I'm saying that these things happen to you. Elon Musk was on a podcast the other

90
00:07:47.280 --> 00:07:54.080
day and he's like, he has like 25 lawsuits ongoing anytime. Like people suing him because the car

91
00:07:54.080 --> 00:07:59.760
didn't drive them to work every day. Like ridiculous things because he's elevated to that position.

92
00:07:59.760 --> 00:08:04.080
And if you cannot quiet your emotions, there's no way that you're going to be able to move to the

93
00:08:04.080 --> 00:08:10.000
next level. And so it does require this sort of deadening of your emotional reactions. And so

94
00:08:10.960 --> 00:08:15.440
it's that's that's my current chapter that I'm on right now of this little entrepreneurship

95
00:08:15.440 --> 00:08:21.760
journey is is is is looking at all the things that create emotion in my life both positive and

96
00:08:21.760 --> 00:08:27.440
negative and seeing how it affects me and how I show up on a daily basis. And then more importantly,

97
00:08:27.440 --> 00:08:34.800
how it affects the decisions that I'm able to make with Claire. And so my my urgent to you is right

98
00:08:34.800 --> 00:08:39.840
now there probably are some decisions that you are not making because they're emotionally charged.

99
00:08:39.840 --> 00:08:45.280
And what you need to do is look at it within the context of math and say does this make sense

100
00:08:45.280 --> 00:08:50.080
and do it like and you have to make the hard choice and a lot of times the hard choice is not the

101
00:08:50.080 --> 00:08:55.040
popular. It's not the one that makes you everyone's best friend. But the thing is is that it will either

102
00:08:55.040 --> 00:09:01.520
be you who makes the hard choice to to in the moment today or the hard choice we made for you by

103
00:09:01.520 --> 00:09:07.200
the marketplace because your business will not work. And so it's it's a constant like I feel like

104
00:09:07.200 --> 00:09:12.720
life a lot of times man this is big broad statement. But life a lot of times is sacrificing your

105
00:09:12.720 --> 00:09:18.240
short term comfort for your long term benefit. And so when it comes to fitness sacrificing your

106
00:09:18.240 --> 00:09:23.440
short term comfort of eating what you want to eat for your long term benefit. Sleep for sacrificing

107
00:09:23.440 --> 00:09:26.880
your short term benefit of like why would I watch one more episode I want to stay a little bit later

108
00:09:26.880 --> 00:09:31.520
I want to I want to waste time on my phone rather than going to sleep right but the long term

109
00:09:31.520 --> 00:09:36.320
benefit is clear. I want to keep this person on because maybe they'll turn around but they probably

110
00:09:36.320 --> 00:09:40.000
won't you already know that if you had to bet on it you probably wouldn't bet on right I'm just

111
00:09:40.000 --> 00:09:44.000
using that as an example there's a million other things that you have to do syncing with clients

112
00:09:44.000 --> 00:09:49.760
if you have a client who is just consistently draining your attention just get them out you know

113
00:09:49.760 --> 00:09:54.880
what I mean but it's hard and the reason it's hard is the reason that mouth is wide most people

114
00:09:54.880 --> 00:10:01.040
don't succeed that's it so like the advanced people don't do anything advanced they just never

115
00:10:01.040 --> 00:10:05.200
don't do the basics and so like this is something that I'm continuing to go back to at least in the

116
00:10:05.200 --> 00:10:10.160
season that we're in entrepreneur really is that it's consistently revisiting the basics of like

117
00:10:10.160 --> 00:10:16.480
how can I do the basics better rather than how can I find advanced things and I think that a lot of

118
00:10:16.480 --> 00:10:21.520
us you know and I say this a lot but like we need to be reminded more than we need to be taught

119
00:10:22.080 --> 00:10:29.280
like if you've ever like Bruce Lee said I don't fear a man who's done a thousand kicks one time

120
00:10:29.280 --> 00:10:33.600
but the man who's done one kick a thousand times right like we get better by doing the same things

121
00:10:33.600 --> 00:10:41.040
over and over again and um that's like and it's boring and that's what makes it hard and that's

122
00:10:41.040 --> 00:10:44.960
why most people don't succeed is that they want something that's fun and exciting because that's

123
00:10:44.960 --> 00:10:51.920
what entrepreneurs want but business requires consistency and the business requires you to be

124
00:10:51.920 --> 00:10:58.800
everything that you weren't born to be and that is why most people don't make it so just food for

125
00:10:58.800 --> 00:11:05.520
thought um if you have some things that you need to do just do them take out take the math out

126
00:11:05.520 --> 00:11:10.400
look at it from pure numbers and make the decision as though it were someone else's company and then

127
00:11:10.400 --> 00:11:15.920
you'll be surprised how how easy and how clear some of those decisions can be one other context

128
00:11:15.920 --> 00:11:21.360
or frame that I like to make some decisions on is if I were significantly smarter than myself

129
00:11:21.360 --> 00:11:27.280
what would I tell myself to do and or if I were the smartest man in the world what would that guy do

130
00:11:27.360 --> 00:11:31.600
and if you think about things I know it's silly but a lot of times you think that guy would be a

131
00:11:31.600 --> 00:11:36.160
super genius and he would look at it purely like this dollars and cents and then you'd be amazed

132
00:11:36.160 --> 00:11:40.800
to the quality of the decisions that come out of that type of thought process so anyways I will

133
00:11:40.800 --> 00:11:44.960
catch you guys on the flip side sorry for the long delay I've got some amazing stuff I will talk

134
00:11:44.960 --> 00:11:49.600
about from the Arnold this weekend and from the charity event that we sponsored um it was super

135
00:11:49.600 --> 00:11:54.320
cool and I will go into cool details on uh the giving stuff and lots of stuff that uh we did

136
00:11:54.320 --> 00:11:59.200
from there lots of celebrities that we got to meet in person and so I will up to you on that soon

137
00:11:59.200 --> 00:12:04.080
I'm an amazing day and uh if you could uh throw a like or comment or anything that you know

138
00:12:04.080 --> 00:12:13.520
I would appreciate it below anyways talk to you soon