WEBVTT 1 00:00:00.000 --> 00:00:06.000 I think you can beat 99% of people, not by beating them in every possible facet, but just picking one thing to beat them on. 2 00:00:06.000 --> 00:00:10.000 And that's how you can win in competition. Now, if you can do more than one, you dominate. 3 00:00:12.000 --> 00:00:21.000 What's going on guys? This will be either the absolute best video ever see, the worst video ever see, or somewhere in between. 4 00:00:21.000 --> 00:00:28.000 So, was it? You can beat 99% of other businesses if you only pick one thing to beat them on. 5 00:00:28.000 --> 00:00:33.000 Now, if you can beat them in two vectors, you become a possible. But there's four that you can compete on. 6 00:00:33.000 --> 00:00:40.000 Alright, so that's what we're going to talk about. Now, the first of the four vectors is speed. 7 00:00:40.000 --> 00:00:43.000 Right? How do I do what I'm going to do faster than everybody else? 8 00:00:43.000 --> 00:00:48.000 Now, what's interesting about this is that I have been doing business for a minute now. 9 00:00:48.000 --> 00:00:54.000 And I would say that of the four vectors, I'm starting with speed because I actually think it's the most important of the four. 10 00:00:54.000 --> 00:01:04.000 And I think the reason for that is that humans learn behaviors with decreased latency, meaning if like Facebook and Instagram or whatever you're watching this on, 11 00:01:04.000 --> 00:01:13.000 has trained us to come back not because they pay us to come back because they have compressed latency for some positive outcome. 12 00:01:13.000 --> 00:01:18.000 And the positive outcome they give us is a thumbs up. They literally give us a little red light. 13 00:01:18.000 --> 00:01:24.000 And other people give actual money, but add a delay and they struggle to get people to do things. So think about it like this. 14 00:01:24.000 --> 00:01:32.000 You pay someone who works for you every two weeks. It's much harder to motivate them than if you actually paid them in real time. 15 00:01:32.000 --> 00:01:37.000 And paying someone in real time is actually so effective. It's illegal. 16 00:01:37.000 --> 00:01:44.000 And so truckers, for example, used to be able to get paid per mile and like almost essentially in real time. 17 00:01:44.000 --> 00:01:53.000 And so they actually outlawed it because guys would just keep driving to the point of like insanity and wouldn't sleep for days and it was unsafe. 18 00:01:53.000 --> 00:01:57.000 Alright, that's how powerful speed is because that is what trains behavior. 19 00:01:57.000 --> 00:02:02.000 And so functionally, the questions that we have to ask ourselves is, okay, if speed is going to be my competitive advantage, 20 00:02:02.000 --> 00:02:07.000 it doesn't matter what we do, right? If you're in lawn care, there's components to speed. 21 00:02:07.000 --> 00:02:12.000 Right? So on one angle, like you have to think about each of these larger vectors in smaller sub vectors. 22 00:02:12.000 --> 00:02:19.000 So for a speed, it could be the distance between when someone purchases and when they get something, right? That's one vector of speed. 23 00:02:19.000 --> 00:02:24.000 The other vector is that if you're doing something on a recurring basis, how much time is it going to take each time? 24 00:02:24.000 --> 00:02:30.000 So for example, if I had a 10 minute workout, it's going to be more valuable than an hour long workout if I could get the same results. 25 00:02:31.000 --> 00:02:38.000 Right? If I say I'm going to help someone get leads and I can help them get those leads in an hour versus waiting a week to turn on the ads, that's more valuable. 26 00:02:38.000 --> 00:02:43.000 Right? And so at all times, it's always like, how can we take what we're currently doing and do it faster? 27 00:02:43.000 --> 00:02:49.000 And I can promise you, if you just did that one thing compared to everyone else in your marketplace, you just delivered faster, 28 00:02:49.000 --> 00:02:55.000 you have a sustainable competitive advantage over them and be able to charge premium prices for it. 29 00:02:55.000 --> 00:03:00.000 And what's really interesting about speed is that speed rarely actually costs more. 30 00:03:00.000 --> 00:03:06.000 It typically comes from idea alpha, meaning like idea over performance. 31 00:03:06.000 --> 00:03:13.000 Like you thought through the process of the steps better than the competition as it has a result, you actually can get better outcomes. 32 00:03:13.000 --> 00:03:16.000 Now part of this also comes down to what types of customers you're picking. 33 00:03:16.000 --> 00:03:21.000 If you have 100 different types of customers, it's very difficult to do things quickly because you're doing lots of different things for lots of different people. 34 00:03:21.000 --> 00:03:27.000 This is why niching down also helps you provide more value because you're being more selective about the customers you're picking. 35 00:03:27.000 --> 00:03:34.000 And then as a result, you can be more templatized in the types of services and products that you ultimately offer. 36 00:03:34.000 --> 00:03:39.000 And so there's kind of three different vectors that I think about in terms of like, what can I actually do to improve speed? 37 00:03:39.000 --> 00:03:41.000 Because you're like, okay, I get that, but how do I actually do it? 38 00:03:41.000 --> 00:03:44.000 So number one is I want templates. 39 00:03:44.000 --> 00:03:48.000 How can I take what we're currently doing and make these into templates? 40 00:03:48.000 --> 00:03:49.000 Can I have ad templates? 41 00:03:49.000 --> 00:03:50.000 Can I have email templates? 42 00:03:50.000 --> 00:03:51.000 Can I have landing page templates? 43 00:03:51.000 --> 00:03:53.000 Can I have presentation templates? 44 00:03:53.000 --> 00:03:57.000 Can I have at least templated steps that someone's going to follow? 45 00:03:57.000 --> 00:04:01.000 All of these are templates that we can pass on to somebody else, create a repeatable process. 46 00:04:01.000 --> 00:04:02.000 If it's repeatable, they don't have to decide. 47 00:04:02.000 --> 00:04:04.000 Decision making is typically the slowest part in the organization. 48 00:04:04.000 --> 00:04:08.000 So how to remove all decisions to speed up the time of completion. 49 00:04:08.000 --> 00:04:10.000 The second one is pre-made. 50 00:04:10.000 --> 00:04:13.000 So if you're in physical products or even food, it's... 51 00:04:13.000 --> 00:04:18.000 I mean, fundamentally McDonald's changed the game in fast food because they started pre-making food. 52 00:04:18.000 --> 00:04:20.000 They already had burgers on the line. 53 00:04:20.000 --> 00:04:24.000 So when someone ordered a burger that he's handed it to him, and if you haven't seen the movie founder, create movie. 54 00:04:24.000 --> 00:04:28.000 He experiences this and he's like, no, no, no, I just ordered. 55 00:04:28.000 --> 00:04:30.000 They're like, yeah, that's your burger. 56 00:04:30.000 --> 00:04:31.000 And he's like, no, I just ordered. 57 00:04:31.000 --> 00:04:33.000 And they're like, yeah, that's your burger. 58 00:04:33.000 --> 00:04:35.000 And he's like, huh. 59 00:04:35.000 --> 00:04:38.000 And it's this big aha moment, like, oh, this changes everything. 60 00:04:38.000 --> 00:04:41.000 And so sometimes if you know, there was a great Persian place they used to go to. 61 00:04:41.000 --> 00:04:44.000 It crushes in California. It's called Panini Cafe. Go check it out. 62 00:04:44.000 --> 00:04:46.000 But they make amazing Persian food. 63 00:04:46.000 --> 00:04:50.000 But one of the things I realized is right is the lunch hour started because I lived pretty close by back then. 64 00:04:50.000 --> 00:04:55.000 They just started grilling chicken because they knew that they were about to get the lunch rush. 65 00:04:55.000 --> 00:04:58.000 And they knew that they were going to have people who wanted jujube kebab. 66 00:04:58.000 --> 00:04:59.000 Shout out for those who know. 67 00:04:59.000 --> 00:05:02.000 All right. And so they just thought ahead of time. 68 00:05:02.000 --> 00:05:06.000 And it became really because I would show up and be like, jujube kebab, extra rice, my whole thing. 69 00:05:06.000 --> 00:05:10.000 And they would just boom, they would deliver for me because they didn't even have to make to order. 70 00:05:10.000 --> 00:05:13.000 Because they just knew certain amount of things are always going to have to be in. 71 00:05:13.000 --> 00:05:16.000 And even if for some reason someday they're not going to hit that. 72 00:05:16.000 --> 00:05:20.000 The benefit they get of the vast majority of their customers immediately getting served. 73 00:05:20.000 --> 00:05:26.000 And how many tables they will turn faster more than paid for the small extra chicken that maybe they didn't they had to throw at the end of the day. 74 00:05:26.000 --> 00:05:31.000 The third element here and this happens a lot with services is availability. 75 00:05:31.000 --> 00:05:33.000 Now what is this mean? I'll give you a couple examples. 76 00:05:33.000 --> 00:05:36.000 So if you if you have a spa or a salon or something. 77 00:05:36.000 --> 00:05:40.000 If you have more availability for people to book, it means they want something and they can immediately get it faster. 78 00:05:40.000 --> 00:05:46.000 They can get the appointment with you to get the nails done, get their hair done, get you know, get the back crack, get their get their their pain away. 79 00:05:46.000 --> 00:05:51.000 Whatever it is basically the sooner you can have that availability, the more you will be able to convert. 80 00:05:51.000 --> 00:05:53.000 And the more people will be willing to pay. 81 00:05:53.000 --> 00:05:56.000 And so if someone says, hey, I have an appointment in four days or I'm going to appointment in one day. 82 00:05:56.000 --> 00:06:00.000 They're probably far more likely to come to you and be willing to pay more for that one appointment. 83 00:06:00.000 --> 00:06:03.000 And so what but how do you increase availability? 84 00:06:03.000 --> 00:06:07.000 Sometimes it means you have to pay people more or extend their hours or hire more people. 85 00:06:07.000 --> 00:06:16.000 But the reality is that this is one of those things that is one of the largest vectors in terms of increasing throughput on a business that is underappreciated by the vast majority of business owners. 86 00:06:16.000 --> 00:06:22.000 And so when I invest in a company or I look at a company a lot of times I'm like, ooh, like it's one of the those huge hidden diamonds. 87 00:06:22.000 --> 00:06:31.000 I probably shouldn't even share this, but it's one of those hidden diamonds that I could almost always drive 20, 30, 40% more through business by simply better staffing the hours. 88 00:06:31.000 --> 00:06:36.000 And so like even even at acquisition.com we currently sell 12 hours a day, seven days a week. 89 00:06:36.000 --> 00:06:41.000 And we're now investing so we can get to 20 hours a day because we have such a larger international market. 90 00:06:41.000 --> 00:06:48.000 Right? So it's like we always want to increase our availability because I know the math behind this and it's a huge impact on the bottom line. 91 00:06:48.000 --> 00:06:56.000 All right. So the first vector macro vector that you can win on and you only need one, but if you have more than one, you just dominate everyone. 92 00:06:56.000 --> 00:07:02.000 All right. Is that we went over speed. Now the second is risk. All right. 93 00:07:02.000 --> 00:07:12.000 So how can we make our thing not risky? Now think about McDonald's example I gave you. Well, they're both fast and they're not risky. 94 00:07:12.000 --> 00:07:18.000 So what does that actually mean? Now part of you're like, oh, no, they're risky because of cancer and all this stuff. Well, let's ignore that because why? 95 00:07:18.000 --> 00:07:27.000 Why do people not care about this stuff? Actually, it's funny. Speed. It's not latency. If you ate a burger to immediately had something growing on on you, no one would eat the burgers. 96 00:07:27.000 --> 00:07:33.000 But because it happens 40 years from now, no one cares. Speed changes behavior and lack of speed doesn't. 97 00:07:33.000 --> 00:07:47.000 So what about risk? So a way you can translate risk is reliability and consistency. It's a different way of saying it, which is when people, but this is especially important for services that are recurring where people get month after month after month after month, they keep coming back again and again and again. 98 00:07:47.000 --> 00:07:58.000 And so the question is how can we consistently match conditions between the perfect and ideal state and every state that happens afterwards? And most people dramatically underestimate the amount of variables that exist in any given encounter. 99 00:07:58.000 --> 00:08:13.000 And so as a result, they have far less consistency than the otherwise should. All right. So that's just the output. Now what are the other components of this? I'll say when it's consistency, right in terms of in terms of in terms of decreasing risk. 100 00:08:13.000 --> 00:08:27.000 We can also consider that reliability. If you say you're going to cut someone's grass, but sometimes you're late or you shop a different day or you don't shop one week, like that's a major hit. People just don't want to deal with that stuff. Like they're not willing to on the flip side. 101 00:08:27.000 --> 00:08:35.000 If you're the type of guy with someone's like, you know what? I could I could undercut your longcare guy. You know what? I could I could clean instead of your cleaning person. A lot of people are like, you know what? 102 00:08:35.000 --> 00:08:46.000 I've been with Roseford for 10 years and she's never missed a day. You're like, I just I'm not willing to take the risk because she's already paid down so much. So I could do for 20% less. It's like it's just not worth it, right? 103 00:08:46.000 --> 00:09:00.000 That's real value that actually defends the business. Now what other types of risk mitigation can we offer? All right. One of them is reputation. Right. So this is where brand comes in. So you can. 104 00:09:00.000 --> 00:09:10.000 The consistency of reliability typically happens after someone makes a purchase, but how do we how do we shift the perception of the customer that they're going to have a high likelihood outcome that they're going to get what they want? 105 00:09:10.000 --> 00:09:20.000 Well, one of the easiest ways is that you've gotten somebody else exactly what they wanted and that person found out about it. Now, if they don't know someone directly, but then they just heard lots of whispers, that's a reputation. 106 00:09:20.000 --> 00:09:33.000 You've done it enough time for enough people that you just have a reputation for keeping your word. Right. And a lot of people, especially in the in the small business space, especially especially in their response space, all of a sudden sometimes they're they're cost your car customer goes up rapidly. 107 00:09:33.000 --> 00:09:46.000 And they're like, what's going on? What's happening? But the thing is that the CPMs in your industry haven't gone up by double or triple on that same period of time. So what is it? Is that your word of mouth? People believe in positive word of mouth. You think negative word of mouth doesn't exist? 108 00:09:46.000 --> 00:10:05.000 Negative word of mouth is like 10 times as viral as positive. And somehow you think that doesn't affect your sales. Of course it affects your sales. People would have otherwise purchased shoes not to because of something they heard or read online. Right. And so one is okay. So we've got reputation we've got and we've got consistency. So how do we do this? 109 00:10:05.000 --> 00:10:25.000 How do we actually operationalize this? Now I've talked a lot about guarantees. I talked about it in the numbers book. All right. And a lot of people took that in the media like, Oh, guarantees are the only way that we reverse risk. It's just one of the components and I give that to people because I assume that a lot of people don't have a good reputation or don't have a reputation at all. Or they don't have enough customers to really develop a process to become consistent. 110 00:10:25.000 --> 00:10:39.500 But these two things are how you deliver long term risk mitigation in the short term. You do guarantees. Now again, and I was really interesting about this is that everyone assumes that I was like a guarantee guy, but like a lot of stuff that I saw that has no guarantees. Right. 111 00:10:40.000 --> 00:10:49.300 But the thing is is that there's four different types that I cover the book. All right. The first is unconditional guarantees when you're starting out. That's a great way to do it. Conditional guarantees. If you do this. 112 00:10:49.300 --> 00:11:18.300 And it doesn't happen. Then I'll do. Then I'll do why what's my what's my consideration? Right. What am I going to put on the table if you're going to put this money in the table. And a lot of times people mess this up, guarantees only work if you have stakes. So if you don't have reputation, you've got to basically it's literally like giving a payday loan. It's like you got to put you got to take your watch off and be like, if you give me the money, I'll put the watch down. Right. You can take my car. If I don't pay this loan back to say my idea just in business. You're starting out. You're like, here's my shirt. If I don't deliver these leads or I don't deliver a great back. 113 00:11:18.300 --> 00:11:30.300 You know, massage or I don't deliver a good fitness experience. You can take my shirt. Right. But over time, there's the first two. There's two other types of guarantees. There's implied and then there's anti. All right. 114 00:11:30.300 --> 00:11:44.300 So implied guarantees is one of my favorite types to use, which is just performance based. If you're good at what you do, winners always want a computer performance. Think about your best sales people. They always want the most upside because they're good. And so if you're actually good, be willing to put. 115 00:11:44.300 --> 00:11:52.300 It's another way of putting skin in the game for you. Right. And so just put skin in the game and people are farm willing to take risk if you take some risk for them. 116 00:11:52.300 --> 00:11:58.300 So it's like, we've got this big pile of risk. How much are we going to eat down versus the customer eating down? 117 00:11:58.300 --> 00:12:05.300 Real quick guys, I have a special special gift for you for being loyal listeners of the podcast. 118 00:12:05.300 --> 00:12:16.300 Layla and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business. 119 00:12:16.300 --> 00:12:22.300 So you've got marketing, you've got sales, you've got product, you got customer success, you've got IT, you've got recruiting, you've got HR, you've got finance. 120 00:12:22.300 --> 00:12:30.300 And we show the problems that emerged at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. 121 00:12:30.300 --> 00:12:38.300 So it's about 30-ish pages for each of the stages. Once you answer the questions, it will tell you exactly where you're at and what you need to do to grow. 122 00:12:38.300 --> 00:12:44.300 It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. 123 00:12:44.300 --> 00:12:53.300 And so if that's at all interesting, you can go to acquisition.com forward slash road map, R-O-A-D map, road map. 124 00:12:53.300 --> 00:13:02.300 Right, now here's the cool part, is that you can shrink that pile of risk over time with reputation, which brings up the fourth guarantee, which is an anti-guarantee. 125 00:13:02.300 --> 00:13:08.300 Which once you do ever-butation and you are consistent, you don't see McDonald's saying we guarantee that the burger's going to be good. 126 00:13:08.300 --> 00:13:15.300 You just know it's going to be good, right? Because you've had enough people, now people are like, oh my god, McDonald's is not going to calm down, you get the point from business perspective. 127 00:13:15.300 --> 00:13:20.300 All right, so that's vector one is speed, is how can we do whatever we're doing faster? 128 00:13:20.300 --> 00:13:25.300 Number two is risk, how can we do it more consistently? How can we do it more reliably? 129 00:13:26.300 --> 00:13:32.300 How can we, and instead of doing build our reputation over time, and that consistency of reliability, how do I do that tactically? 130 00:13:32.300 --> 00:13:39.300 It's actually looking at as many variables that affect the condition or affect the outcome for the customer as humanly possible. 131 00:13:39.300 --> 00:13:46.300 And then actually trying to control for all of them. So BF Skinner, famous behavioral psychologist said, if many variables exist, many variables must be studied. 132 00:13:47.300 --> 00:13:55.300 And so you might find out, so like for us to make videos, we have like 100 different little golden babies, little things that when put together, make a good video. 133 00:13:55.300 --> 00:14:00.300 And if we just do 98, it's just a little bit less good of a video. If we do 97, it's a little bit less good of a video. 134 00:14:00.300 --> 00:14:04.300 And so we just try it every time we learn a little bit more, we add to that list week. 135 00:14:04.300 --> 00:14:08.300 Another condition that we didn't realize existed that mattered, we were just talking about one right before I did this video. 136 00:14:09.300 --> 00:14:17.300 So we did this big filming session where I did a walk-in talk, and it was hot outside, I checked my shirt off, and I was doing it, it was in Florida, it was superhuman. 137 00:14:17.300 --> 00:14:28.300 And that whole series of kind of like walk-in talk things that I did murdered. It was like some of them, it was probably the single best recording session I've ever had in terms of performance of the clips in the session. 138 00:14:29.300 --> 00:14:38.300 So we were like, oh, walk-in talks work great. So then I did another series of walk-in talks where I'm just like in normal clothes because it was actually cold out, I think I put a jacket on. 139 00:14:38.300 --> 00:14:43.300 And so I put a jacket on in the second one. And literally, I think it might have been the actual worst recording session that I ever had. 140 00:14:43.300 --> 00:14:55.300 And so what we got to see there is that it wasn't the walk-in talk that was the thing that made the shorts valuable. It might have been me being sureless, which I have other considerations for, which was like maybe I'll start only Alex someday. 141 00:14:56.300 --> 00:15:05.300 But for now, those are the first two, speed and risk, or risk A, if you will. Now, the third one is price, it's cheap, right? 142 00:15:05.300 --> 00:15:15.300 So you can be faster, you can be less risky, or you can be cheaper. Now, we have a fourth one too, but let's talk about this for a second. 143 00:15:16.300 --> 00:15:30.300 I'm always the, I tend to be the sell for more, more expensive guy, but you can win with any of these three vectors. If people absolutely know that your stuff's amazing, they'll be willing to pay more for it and they'll come to you instead of somebody else. 144 00:15:30.300 --> 00:15:36.300 If you're the fastest, they absolutely will come to you over other people because you can deliver all these vectors of speed. 145 00:15:36.300 --> 00:15:43.300 If you're the cheapest, people will absolutely come to you, like to pretend the price doesn't matter as silly, of course, price matters. 146 00:15:43.300 --> 00:15:55.300 But so does value, because value is a, sorry, the deal rather is the comparison between price, what you pay, and what you get, right? 147 00:15:55.300 --> 00:16:06.300 And so something is appropriately cheap if you get tremendous value for a low price, but the answer is not hearing this and saying, oh, I will now lower my price. That is certainly a terrible decision. 148 00:16:06.300 --> 00:16:15.300 But instead is day one deciding our competitive advantage, the mode that we're going to build around is being cheaper than everyone else. 149 00:16:15.300 --> 00:16:28.300 And you have to start that way day one. That means every component of the business from click to close to delivered is organized such that you can pass on as much of that cost saving to the customer. 150 00:16:28.300 --> 00:16:36.300 And so for example, if you were like, hey, I want to start a, you know, a marketing agency for small business owners. Well, in general, typically a pretty bad business. 151 00:16:36.300 --> 00:16:41.300 Why? Because it turns out really high. They're volatility reflects on you with an exception. 152 00:16:42.300 --> 00:16:49.300 If you can make the services cheap enough, I have seen it work well, but I mean way cheaper than you think. 153 00:16:49.300 --> 00:16:57.300 I'm talking 100 to $300 a month for services that most people charge $2,000 a month for when you can do that. 154 00:16:57.300 --> 00:17:03.300 Now you have something that a lot of people interested in so that even on their worst day of business, they're like, well, I'm not going to cancel that. 155 00:17:03.300 --> 00:17:08.300 It's only a hundred bucks, only 200 bucks. And it certainly makes way more than that, even on my worst month. 156 00:17:08.300 --> 00:17:15.300 Right? And to the same degree, we basically, okay, if I want to do this, right? If you're like, okay, how do I actually build for cheapness? 157 00:17:15.300 --> 00:17:19.300 All right. So there's three ways that I think about this. 158 00:17:19.300 --> 00:17:25.300 Thank you. Thank you. Thank you. You guys are awesome. We had our highest month ever in terms of downloads for the podcast. 159 00:17:25.300 --> 00:17:30.300 And the only person that I can think is you guys, because you're the only ones who share this. 160 00:17:30.300 --> 00:17:38.300 And so I keep making these because you keep sharing them. So thank you. But if you know somebody, you have an employee, can you share it with your team on Slack? 161 00:17:38.300 --> 00:17:51.300 If you have a friend, can you tax it or, you know, DM them? Or if it's just something that you think you would want to share with your audience, because it's something that resonated with you, please put it on your, on your gram on the IG or maybe on your LinkedIn. 162 00:17:51.300 --> 00:17:56.300 Or whatever it is that you like to share with your audience or maybe send it as an email. Why not? Let's get crazy. 163 00:17:56.300 --> 00:18:01.300 It would mean the world to me. And maybe it might mean the world to them. 164 00:18:01.300 --> 00:18:11.300 So number one is you can have AI, right? Do one now. A lot of you guys should be already be investing in this stuff. Like for sure, AI is giving the best employees 10X the leverage they had before. 165 00:18:11.300 --> 00:18:19.300 And so if there's ever been a time to have to pay people better, it's been today because AI is now taking your best person and making it 10 times as effective. 166 00:18:19.300 --> 00:18:35.300 It's like, why would you not like, you're always a man. If I could have 10, 10 Johns or 10 Daniels or 10, 10 Michaels, man, that would be amazing. It's like, well, AI is giving you 10 Michaels. And so be willing to pay the Michaels of your business more because you actually do get more from them now more than ever. 167 00:18:35.300 --> 00:18:40.300 So number one is AI. The second is I'll just say automation because I think automation for some reason has like been forgotten about. 168 00:18:40.300 --> 00:18:46.300 There's still lots of stuff that can get automated that doesn't necessarily have AI, but you build day one with those automations in place. 169 00:18:46.300 --> 00:18:58.300 Now the third is off story, right? We're near short, basically paying significantly less for the same labor, but you're actually making this your entire business strategy from day one. 170 00:18:58.300 --> 00:19:09.300 We are going to win by being the cheapest. And if that's you, then you state that first and foremost in your marketing and your sales and what's really cool about is typically when you're the cheapest, the sales are pretty easy. 171 00:19:09.300 --> 00:19:19.300 Marketing is not that hard. The difficulty is being profitable, but I've seen some tremendously profitable businesses that structure themselves from day one on being the cheapest. 172 00:19:20.300 --> 00:19:26.300 And a little, a little tidbit, a little pro tip that I think a lot of business owners are going to miss out on. I think people are not, are not getting this. 173 00:19:26.300 --> 00:19:32.300 If you do all this stuff, let's say you do the off-sharing, you do the automation to the eye, you don't need to tell your customers. 174 00:19:32.300 --> 00:19:37.300 You can just have AI automation and off-sharing into your business and you just sell a normal service. 175 00:19:37.300 --> 00:19:42.300 You need to tell them you have a bunch of VA's in the Philippines. You need to tell them that a lot of your stuff is from AI. 176 00:19:42.300 --> 00:19:51.300 People would say, hey, we're at AI design firm. Just be a design firm and then charge the same rates or a good deal for design because you just have an automated back end. 177 00:19:51.300 --> 00:19:56.300 Great. Amazing. So that will allow you to get more cash from the business and ultimately provide more value. 178 00:19:56.300 --> 00:20:04.300 All right. So three vectors so far. Speed. How do I do it faster than anybody else in the market? Risk. How do we do it more reliably and build a reputation better than anyone else in the market? 179 00:20:04.300 --> 00:20:08.300 Cost. How do we do it cheaper consistently and still be profitable than anyone else in the market? 180 00:20:08.300 --> 00:20:15.300 And finally, you have ease. Now before I dive in ease, I want to make this point. If you just win on one of these, you could have an incredibly successful business. 181 00:20:15.300 --> 00:20:19.300 If you could do multiple vectors, then you'll crush everyone. Right. 182 00:20:19.300 --> 00:20:24.300 A quote that I like is the best for the most people for the least. 183 00:20:24.300 --> 00:20:29.300 And so best probably takes into account speed and ease and risk. 184 00:20:29.300 --> 00:20:33.300 And for the most, it's going to be like total number of people in the house. And then for the least, right. 185 00:20:33.300 --> 00:20:39.300 It's like, and I've had everyone was like unique expensive sticky air. How do I do something that no one else can do? 186 00:20:39.300 --> 00:20:44.300 How do I have it that they keep buying it? How do I have it that I have high gross margins? And how do I have it so it's over and over again? 187 00:20:44.300 --> 00:20:50.300 Right. So we think about these little monitors. I think about this one of trying to build a business because ultimately these are the ways that you win. 188 00:20:50.300 --> 00:20:55.300 These are the strategic modes. So people talk about strategy. But fundamentally, it's going to have to ladder up to one of these things. Right. 189 00:20:55.300 --> 00:21:01.300 So, so if you're like, oh, by the way, what's acquisition comms? It's going to be this one probably primarily. 190 00:21:01.300 --> 00:21:05.300 And then I would say secondary vectors are these were obviously not cheapest. Right. 191 00:21:05.300 --> 00:21:13.300 And so that's where I've built my business around. Now, if I had a different now, not all the business are portfolio are built that way. Right. 192 00:21:13.300 --> 00:21:24.300 We have a teeth wedding chain that's more around speed, ease, and cheapness. Right. And so you get like you have to make sure that the strategy is best tailored to the customer after you try. 193 00:21:24.300 --> 00:21:29.300 All right. Let's talk about ease. So I want to make a big point about ease. 194 00:21:29.300 --> 00:21:38.300 If you want to make your product more convenient for customers, you don't make something convenient because we want to like I want to do something to my product. 195 00:21:38.300 --> 00:21:45.300 It's actually the opposite, which is why I think what's products suck. You make something easier by removing everything that is no longer required. 196 00:21:46.300 --> 00:21:51.300 You make something easy by saying what is what is hard about this and then removing everything that's hard. 197 00:21:51.300 --> 00:21:56.300 And so what's cool about this process is all like easy is not the outcome. 198 00:21:56.300 --> 00:22:03.300 It's removing all hard and then easy happens as a consequence. Right. So like easy is not noticeable. 199 00:22:03.300 --> 00:22:12.300 It's like good design. It should vanish. Right. Like if you look at an iPhone, an iPhone is the result of what happens when you remove everything that sucks about a phone. 200 00:22:12.300 --> 00:22:19.300 And what remains is an iPhone. The the UX vanishes into the screen. There's no menus. You just hit what you need. 201 00:22:19.300 --> 00:22:23.300 It immediately opens up. Right. This is how we have to think about ease. 202 00:22:23.300 --> 00:22:30.300 And so this happens for services. It happens for products. And just like I was saying earlier with if many variables exist, many variables must be studied you. 203 00:22:30.300 --> 00:22:35.300 And the nice thing is that customers will tell you what's what's hard thing number one. What's hard thing number two. 204 00:22:35.300 --> 00:22:40.300 What's hard leader but three. What's hard thing number four. And you have that list. 205 00:22:40.300 --> 00:22:49.300 And then the way that you make something easy is one at a time crossing things out one at a time until eventually we were like, man, this thing just works. 206 00:22:49.300 --> 00:22:55.300 And that takes work. Right. And so take a thing, figure out what makes it hard. 207 00:22:55.300 --> 00:23:00.300 Remove all those pieces and then what you're left with is something that's easy. This is the work. 208 00:23:00.300 --> 00:23:05.300 And I wish I could say this in a hundred different ways. But like honestly, that's the game. 209 00:23:05.300 --> 00:23:10.300 And so when we're thinking about this, it's like as a customer, like you want to think again, click to close to delivered. 210 00:23:10.300 --> 00:23:14.300 So when a customer is coming into your ecosystem into your world, right. 211 00:23:14.300 --> 00:23:20.300 Or like how much information do they need to get? Do they have to give information the same information on multiple calls? 212 00:23:20.300 --> 00:23:23.300 Are we passing calls to turnips? Like I'll give you a really simple example. 213 00:23:23.300 --> 00:23:30.300 So right now you probably hit like if you have a business that sells via appointments where you have phone calls you have people who may need to call. 214 00:23:30.300 --> 00:23:36.300 If you have multiple calls that occur in order for someone to buy, let me tell you what happens all the time. 215 00:23:36.300 --> 00:23:41.300 Call one. Tell me about your business. All right. Tell me about the size of the business. Tell me this qualification. 216 00:23:41.300 --> 00:23:45.300 Okay, cool. So then let me set you up with Charlie. Charlie gets you set up. Okay, cool. 217 00:23:45.300 --> 00:23:48.300 Now now we get on the phone with Charlie three days later. Charlie's like, hey, how's it going? 218 00:23:48.300 --> 00:23:51.300 What's the revenue of the business? What's the size of the business? What's it you're like to? 219 00:23:51.300 --> 00:23:56.300 I just I just told the why am I why am I telling I hate you already, right? 220 00:23:56.300 --> 00:23:59.300 And so instead of doing that, let me show you the thing is that this is a very binary outcome. 221 00:23:59.300 --> 00:24:03.300 This is a very binary one. A lot of them are a lot of them are more continues, but this is binary. 222 00:24:03.300 --> 00:24:09.300 And the only thing easier than doing a little about this share with you is not doing it, which is why most people don't. 223 00:24:09.300 --> 00:24:15.300 Your salespeople, your setters or your salespeople in general should take notes on the customers. 224 00:24:15.300 --> 00:24:20.300 And here's what's cool. If you start the second call and say, hey, how to conversation with Charlie? 225 00:24:20.300 --> 00:24:25.300 Charlie told me that your revenue is this, your industry is this, and the biggest issue you're dealing with is this. 226 00:24:25.300 --> 00:24:29.300 Does that sound about right? They're going to be like, wow, they actually did some homework. 227 00:24:29.300 --> 00:24:33.300 This is a pretty buttoned up operation. You know what that just made it easier. 228 00:24:33.300 --> 00:24:37.300 And so we have to think about every single little step. That's just that's just the sale. 229 00:24:37.300 --> 00:24:43.300 And if you don't think that how you sell affects their perception of the quality of service that you have, 230 00:24:43.300 --> 00:24:48.300 you're kidding yourself. Many people will make a judgment based on how good your product is, 231 00:24:48.300 --> 00:24:52.300 based on how good your sales motion is, how clean it and how it's dialed it. 232 00:24:52.300 --> 00:24:56.300 If you call someone in 30 seconds, they're like, man, these guys are on it. 233 00:24:56.300 --> 00:25:03.300 They would imagine that if you make a promise about speed later, guess what the past experience they have that they're going to use as judgment is on. 234 00:25:03.300 --> 00:25:09.300 The sales process. And so this again, I'm just talking about sales because everyone like, you know, everybody likes talking about sales. 235 00:25:09.300 --> 00:25:15.300 But well, I like talking about sales. Fine. Caught me on the flip side is the back end is the same thing. 236 00:25:15.300 --> 00:25:19.300 What's the onboarding call look like? What are the activation points? What are the touch points with the customer? 237 00:25:19.300 --> 00:25:23.300 What kind of reporting are we going to provide to them so they know that we're delivering them value? 238 00:25:23.300 --> 00:25:26.300 What things do we give? We're giving massage. We're giving a map. We show them where the pain is. 239 00:25:26.300 --> 00:25:29.300 And we show them, hey, when they come back in, this is where you said last time you were in pain. 240 00:25:29.300 --> 00:25:33.300 How is that? Oh, no, it's good for one to 10 a day. Wow, that was really good. 241 00:25:33.300 --> 00:25:36.300 Like, I mean, can you imagine walking to a massage place that you've been to before? 242 00:25:36.300 --> 00:25:42.300 They were like, oh, last time you struggled with your shoulder. And the reason that some of you will let just go with the same person is because the business have so few processes. 243 00:25:42.300 --> 00:25:45.300 And so it's like, why might we just go with the same masseuse because she knows me. 244 00:25:45.300 --> 00:25:55.300 But if every masseuse or a massager, I don't know the male version, whatever massager, already knew the pain that you were dealing with beforehand. 245 00:25:55.300 --> 00:26:01.300 Could you imagine what a superior experience that would be as a company? And then also, how much more would you be able to keep customers? 246 00:26:01.300 --> 00:26:05.300 Whereas when the masseuse leaves, they take all the customers that went with them, not very sticky. 247 00:26:05.300 --> 00:26:10.300 But if every massage person knew all the pain points of the business, that would make it easier. 248 00:26:10.300 --> 00:26:15.300 Easy is when everything that's hard vanishes and that's all that's left is the value. 249 00:26:15.300 --> 00:26:21.300 Now, if you're looking at these four, how can I do it faster? How can I make more reliable? How can I do it cheaper? 250 00:26:21.300 --> 00:26:27.300 How can make it easier for the customer? The end state, the kill shot is that you have all four. 251 00:26:27.300 --> 00:26:35.300 Now, to have all four, it almost always has to be tech. Now, you can typically have three of the four if you have labor. 252 00:26:35.300 --> 00:26:38.300 So if you have a service-based business, you're basically going to need to pick three. 253 00:26:38.300 --> 00:26:43.300 But specifically, you need to make sure you have one. Now, why am I so hard on this one thing? 254 00:26:43.300 --> 00:26:49.300 Well, customers do not understand multiple benefits. Now, they can like from a messaging perspective. 255 00:26:49.300 --> 00:26:55.300 Now, when they buy something and they experience it, that's different. But from a marketing angle, if you say, hey, we're the fastest. 256 00:26:55.300 --> 00:27:02.300 We're the least risky and we're the easiest. It's too much. Just focus on the core vector. And if you're like, which one do I pick, 257 00:27:02.300 --> 00:27:07.300 pick the one that buys the most to your customer, pick the one that they care about the most. 258 00:27:07.300 --> 00:27:11.300 And so if you know that your people care the most about speed, then speeds the, speeds the angle. 259 00:27:11.300 --> 00:27:17.300 If there's a huge cost when something doesn't go well with the business, then risk is the angle, right, or the customer, whatever. 260 00:27:18.300 --> 00:27:24.300 And if, and if it's just in general, a huge pain to do this thing, then how can I make it easy? 261 00:27:24.300 --> 00:27:30.300 So I'll tell you, there's a lady that I know in the Albuquerque in New Mexico that I used to, that I used to go to church with when I went to church. 262 00:27:30.300 --> 00:27:38.300 And she had a massive business in New Mexico. And her entire business was built on one thing, speed and ease. 263 00:27:38.300 --> 00:27:46.300 And so she had a DMV business where she just privatized getting people their IDs. That was it. That's all it was. 264 00:27:46.300 --> 00:27:56.300 And I remember her talking to me and she was like, yeah, they just passed a new law that everybody in New Mexico has to get a new ID because we just changed the license. 265 00:27:56.300 --> 00:28:02.300 And she was like, well, that's, you know, 12 million people times 50 bucks. 266 00:28:02.300 --> 00:28:12.300 And I just remember her saying that I was like, how elegant, right? And the thing is that her $50 is like, she was able to get people in and out in 15 minutes from the time they walked in the door at the time they left. 267 00:28:12.300 --> 00:28:18.300 Could you imagine how lovely an experience that would be? Everybody when they think about getting their ID right now, it's like just pain. 268 00:28:18.300 --> 00:28:26.300 All you think is just like waste of a day, just frustration, dealing with inept people who have no urgency, no regard for other people. 269 00:28:26.300 --> 00:28:35.300 And just generally deal with you as a nuisance. Like you're somehow inconveniencing them in their day of not working that you have disrupted their day of not working by existing and breathing on them. 270 00:28:35.300 --> 00:28:41.300 Right? Of course you hate them. And so she just had a business not hard to beat, right? Well, that's the standard. 271 00:28:41.300 --> 00:28:47.300 Again, there are industries that are like this that are privatized that still no one tries to compete in. 272 00:28:47.300 --> 00:28:56.300 And so if you're wondering which of these do I pick, obviously you started the customer reverse backwards. But let's do the DMV example I just said, is she going to win on being cheaper than the government? 273 00:28:56.300 --> 00:29:02.300 No, I'm pretty sure it's free or it's a nominal price in order to get the new the new IDs. And so she's not going to win on cheap. 274 00:29:02.300 --> 00:29:11.300 But what could what else could she win on speed ease in other ways that ease can also be like positive customer spirits like those are things that improve the overall experience for the customer. 275 00:29:11.300 --> 00:29:22.300 Could she double her prices? I bet you plenty of people are willing to pay $100 to not have to waste a day. Right? So she doesn't have to win on this. Right? So she has to pick the one that that now risk. 276 00:29:22.300 --> 00:29:32.300 I mean, as long as you get the ID, I mean, you have to be good enough at this, right? But she's going to work on her reputation by being having a reputation of being faster and easier. Right? 277 00:29:32.300 --> 00:29:43.300 And so if you're trying to pick one, you pick the one that's going to matter most of the customer. And if you are competing in a space that has a lot of cheap or sometimes even free competitors, just remember this fast beats free. 278 00:29:43.300 --> 00:29:51.300 So back in the day, there was Napster, which some of you guys may have remembered. It's probably before actually probably happy all this time. There's something called lime wire that happened later. 279 00:29:51.300 --> 00:30:01.300 There was Kazah. There's all these different basically share where things where you could share files with one another and ultimately just like steel music for free. I'll just be honest with the rules. Right? 280 00:30:01.300 --> 00:30:17.300 So when that was happening, how did the company like Spotify come in not really free and beat them? They won on speed and they went on risk because when you download a lime wire, you knew that you were downloading all sorts of viruses to your computer number one. 281 00:30:17.300 --> 00:30:27.300 And then number two on Spotify, it was like, it was just you just picked the song and you can immediately start listening to it. And so they beat an industry that was literally free by being faster. 282 00:30:27.300 --> 00:30:40.300 And I remember when I went to get Chipotle once, this was at University of Maryland, I was visiting the campus. And it has, I think it's like the number one highest nursing Chipotle like the nation. This thing is packets in the middle of like the commons or whatever, right? 283 00:30:40.300 --> 00:30:50.300 And it was happened to be Halloween, the weekend that I would visit, you can imagine. And so at Halloween for Chipotle, they do this thing where if you wear any kind of foil, you dress up like a burrito, they like give you free burritos or whatever. 284 00:30:50.300 --> 00:31:00.300 And I didn't know, I didn't think that that was the day that I wanted to go have Chipotle. So I walk up and I'm like, oh, and it was, it was imagine a grocery store parking lot. So massive parking lot, there's a Chipotle there. 285 00:31:00.300 --> 00:31:13.300 The line stretched through the entire parking lot, it was insane. And I just remember thinking to myself when I got there and it was like, I would pay $20 to just have the burrito that I want and not have to wait in this line even if it's free. 286 00:31:13.300 --> 00:31:23.300 And that was the moment where I sensed that that that concept fast beats free. So you're not sure start with the customer reverse backwards, look at the landscape. 287 00:31:23.300 --> 00:31:30.300 You probably want to leave one of these four vectors or maybe more. And so if you want to get into a new space or you already have a business and you're like, how do I actually win? 288 00:31:30.300 --> 00:31:38.300 I feel like I'm the same as everybody else. Pick one and dominate. With that being said, rock and roll. Hope you enjoy this and I'll see you guys next time.