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I think the easiest way to structure operations is first list out the things

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the desired outcomes that need to happen. Welcome to the gym secrets podcast where

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we talk about how to get more customers, how to make more customer and how to

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keep them longer and the many failures and lessons that we have learned along

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the way. I hope you enjoy and subscribe. Happy Thursday. Hope things are going well

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for you wherever you are at or whenever you're listening to this. I don't get a

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lot of questions about operations. They just become obvious that they are a

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problem within a lot of the people that that we help serve and so it's

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interesting because now that we work on the island side with resellers it's

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very clear who's good at operations and who is not and that is typically based

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on the size of the business. The people who are better at operating are the ones

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who make more money and this is kind of one of the the unspoken secrets of the

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entrepreneurial world, especially within the internet space that we live in now.

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It appears to be all about marketing and sales and lead gen and acquisition and

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although those are very important things and you have to start there it becomes

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very clear that typically the entrepreneur has that promotion type of

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character traits and doesn't dedicate the time to study the operational

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components of the business which typically are the reasons that someone is or is

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not successful and so I wanted to give you at least my simple mental

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framework for how I think about operations in general and and scaling operations

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and so for the vast majority of people listening here you're probably under eight

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figures summer under seven but most people are listening this are probably

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business owners in the multiple hundred thousand year to you know several

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several million year and so for that so this is who I'm talking to within that

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context. I think the easiest way to structure operations is first list out the

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things the desired outcomes that need to happen all right and I think of

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business very much as a pipeline which is from click to close to resell right

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and resell within different businesses can be retaining them so that they pay

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again or could be a variation of a sense but when I say click it means how do I

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get so much click and that's just within the internet environment click to

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opt-in to schedule to show to buy to then ultimately want to buy it again and

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so if you have like with our gyms a four step sales process or three step

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sales process that's happening there are clear activities that need to happen

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right and so in the beginning you will have your front-end sales and so you need

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to list that as one of the activities right because the objective would be to

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sell them the activity is to take the call next you'd have the nutrition

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orientation to be the next time you'd meet with them so then you need to

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allocate how many of those you're going to need based on your current inflow

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and so the nice thing is is that there's a ratio of for every ten customers we

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need to do four of these two of these two of these and one of these right and so

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what you can do is once you realize what the outcomes are you can list out all

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of the activities that are required so for a typical client we might know that

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it takes about two minutes per client per day and if we know that a coach has

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three hours that like we want to say one or cap a coach at a hundred then we

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know that that coach is going to be able to do that within x amount of time

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right and so then we book that time on that person's day and so what happens is

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what you should do when you're creating your company is when you're creating each

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of the roles that are going to support you you need to look at a calendar and

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look at what the times of day that this person is going to be working and what

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they're going to be doing with each hour of their day and so you simply take

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the activities in the allocated time that they need to work and place those on

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their calendar and that's honestly all there is to it all right so I'm going to

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give you an example that hopefully flesh this out a little bit but within

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within an online fitness business which many of you guys are operating right

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now there's really for if if if demand gen is being taken care of right so if

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lead gen is being taken care of lead nurtures being taken care of and I'm saying

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that because it'll make the example simpler but also because that's what we do in

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our company for gyms is if those two things are taken care of then there's

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really not a lot that needs to happen right so first you need to have first

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sales calls right to get new customers talking to prospects then you need an

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onboarding right that onboarding is to be typically a nutritional

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orientation and also walking through the app and the tech and the things that

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need to happen and and that's it right the third thing that will need to

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occur will be some sort of ascension conversation which is going to sell them

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into continuity all right so that's number three now every customer is going to

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have one of these things right and so if you're selling here it is you're selling

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ten people a week then you need ten if you're going to if you're going to

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maintain that flow then if you know that your front-end sales 30 minutes your

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nutrition appointment is 30 minutes and then your ascension is 30 minutes then

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for every client that you're bringing in you have an hour and a half per week

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that's going to be allocated right now you can divide that up between different

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people but the keys to scaling is that eventually it becomes too much for one

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person to do all of those activities and then you start blocking entire pieces of

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that type of activity to the next person right and so I'm going to continue with

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the example after that the only other activity that's going to be there would be

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either recruiting coaches right and obviously the fulfillment and so let's

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see that the average customer is going to take five minutes today I said too

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earlier but let's just say it's five minutes right and somebody has whatever it

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is five minutes is a lot let's say say two for math sake so 200 minutes if you

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had a hundred clients per day is what's going to be allocated so that's what

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there's three three hours and you know 20 minutes so you look at someone's

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schedule now that's obviously in a perfect scenario but I look at one of my

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coaches schedules and say okay we're going to do 90 minutes in the morning and

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we're going to do 90 minutes in the afternoon and we're going to block those

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times out so just like that we had eight hours a day now I have five hours left

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what else do I want this person to do well I probably want them to take the

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onboarding conversations with the new customers are coming in right this is a

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coach and I know that if we generate 10 new customers a week on average then

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that's going to take five hours per week which means I can block one to two

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hours a day for that and be totally fine right so I might block now this is

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where availability becomes interesting because if you just do it at noon every

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day the new customers might not be able to make that time right and so I might

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have you know slots on Monday Wednesdays and Fridays at one time and then

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Tuesdays and Thursdays at another time and that way it gives them some different

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times to select from right but again we have our daily activities now that

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you know for that coach is going to be the fulfillment that's ongoing we might

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also have them do the nutrition orientation which would be an hour or two

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hours per day right so if we have an hour we'll say an hour per day so now we've

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got four of their eight hours that have been taken now we've got four more hours

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that can be used by this person

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hey guys real quick if you're new to the podcast I have a book on Amazon called

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$100 million offers that over 8,000 five star reviews and it has almost a

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perfect score you can get it for 99 cents on Kindle the reason I bring it up is

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that I put over a thousand hours into writing that book and it's my biggest

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gift to our community so it's my very shameless way of trying to get to you to

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like me more and ultimately make more dollars so that later on in your business

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career I can push the part towards you so that's my gift go check it out

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Amazon and back to the show

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so now we have options do we want this person to create content do we want this

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person to do outreach do we want this person to

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gosh I mean whatever I mean do we want to expand this person's capacity right

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so there's or we would know that this person's currently at 50% utilization

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now if you flip that and then think well maybe this person could take some of

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the exit meetings right so this is maybe this person could take some of the

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continent now this is strategic questions not operational questions but I'm

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saying this is how you structure it operationally it's like okay if we're

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selling 10 people a week then we need to have 10 halfway conversations

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where we're going to send them into continuity and then we'll also maybe have

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transformation meeting which is the end where we take the pictures and all that

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kind of stuff and so we know each of those meetings takes another

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30 minutes each per customer if we know that we get 10 new customers per week

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then we know that's going to be another hour so 10 hours per week

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total so that's another two hours per day assuming that they're working five

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hours a week and so now we're at six hours per day of work

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all right now that's if someone's being perfectly efficient I would still

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expect people to be perfectly efficient because I think you don't you get what

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you tolerate and so that would be six hours a day for a coach now at that point

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this coach is handling basically everything

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post the initial sale right they're managing the ongoing fulfillment

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they're managing the onboarding activities for these new customers

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and they're managing the back end meetings with them

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to convert them into continuity right and so all of these things put together

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would create a role within the business and so

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my my my ask or my recommendation for you is if you haven't done this activity

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it provides you immense clarity in understanding what are the different

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activities that need to occur in the business to make more money

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and then once you have the list of the activities

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then you know how long each of the activities could shake

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and then the only variable that will dictate

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how many of them you have is what your inflow is right and so if you know what

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your inflow is and you know what your base of customers is and then um

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and your attrition you can very accurately back into what

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a an ideal day looks like for each of the roles within your business

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also the bigger you get the more you will find inefficiencies where

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you're starting these partial roles they're getting full-time pay for halftime work

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right and so this allows you to be more efficient because you can say hey

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I know you're only at 40% utilization why are you telling me

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that you're too busy right now why are you telling me that need to hire

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another coach what else are you doing that is not within these parameters

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now if someone then says well I'm doing this this and this and it's like oh

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now either they'll be founded at things like things that are useful and you know

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value-producing or they won't be many times they're not but that's not because

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the person whose your employee is doing this out of you know

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nefarious intentions they're not trying to be malicious they're not trying to hurt

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your business it's simply because a lot of people just don't even know

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it's valuable right and so they they're they're trying to work they're trying to

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provide value but a lot of times they just don't get

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how like they just a lot of times they join into the bigger picture or why

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you're not having someone do something right but if the thing that they're

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doing is is a core activity like I got to check in on these people I got to add

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them to this it takes this long to get the documents back or you know

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sometimes leave these password issues then you can see is this something that

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we can fix operation with an additional process

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or is this something that we can you know it

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either throw out and then get this person to refocus and then

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increase how much work they're doing by by adding more clients to their

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roster etc and so all this to say this is how I've

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thought about operations is just in terms of activities and units of time

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and then expected inflow and so based on those three variables of

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this is how many people are coming in these are the activities they need to

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happen and this is how long they should take

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then it allows you to account for all the things that need to happen in the

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business and will ultimately allow you to have a more efficiently run shot

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now I guarantee you that because of the headline that I had operations

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for dummies we one of the least listen to podcasts

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out there but it is the reason that the people who make the most money

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make the most money and I just cannot tell you

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like the amount of people who have access who have tried to copy our stuff at

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gym lunch and and and and our one tenth one twentyth the size of what we are

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and guys just like it's it's the boring work

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it's the it's the it's the rolling your sleeves up it's the repetitive

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work it's the meetings and training your team on improving how good they

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are at doing the things that is ultimately the thing that's going to

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propel a company and those things are based on culture and tolerance of

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the leader and so um I just want to leave you with that so if you feel like

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you're constantly overwhelmed and you don't feel like you have

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transparency into what your people are doing like what are they doing all day

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this is the activity that you can do

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that will give you immense clarity and transparency into what their actions

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are so you can also restructure the business to make the most money and also

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find inefficiencies or additional tasks that you're not accounting for that they

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are doing which are either revenue generating

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or requirements or they're totally worthless activities that they're

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simply doing because they just don't know any better

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and so um highly recommend doing it and if you don't know where to start

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the easiest thing to do is have your employees take a time study all right

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so time study is very simple you have an excel sheet you have every 15 minutes

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of the day and you just have them right down what they did for each of

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this 15 minutes now they're going to think that's going to take a lot of time

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you are never more efficient than when you do a time study i probably every time i do one

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i tell myself i'm going to do it again like forever and then i don't but but you will literally

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be more efficient in your work than you ever will because you know that you're being held accountable

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to it all right so um it's like whenever layland i need to go and take a closer good apartment the

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first thing we do like these numbers aren't adding up this feels weird this feels heavier this feels

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light whatever it is we go we ask them to time stay for a week and then we look at their activities

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you can also very quickly see where there's bullshit right where people are like uh

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responding to emails i'm like why do you have three hours of emails is there something i don't

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know about how long does it take to reply to anyone how many emails are you getting every day and so

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that's how you can start peeling the layers back and seeing if someone's being dishonest which happens

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right and they're doing it because they want to keep their job and i get that but that being said

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it's not useful for the business and so um that is how if you want to get a baseline of like okay well

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now i know what all the activities are you can deem whether they're valuable or not and you can deem

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whether you want them to keep doing it or whether they're expanding their time uh

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sorry expanding their activities to meet the amount of time that they're supposed to be working

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all right so um that is my my quick uh that's that's kind of my mental framework for how i look at

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operations um and how to structure them for different roles within the company is first look at

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the the outcomes that you want the activity you need to generate uh that that outcome how long

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this activity takes per customer per unit and then you can extrapolate out based on the volume

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based on the inflow what each role needs to do and then at what points you will have breaking

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points where somebody will become overwhelmed and you need to create a new role all right so um

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anyways i hope that was valuable for you hope that made sense otherwise have a happy Thursday

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happy corona a happy quarantine and i hope you are adapting because you have no choice but to do so

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otherwise all right lots of love kids guys soon bye