WEBVTT 1 00:00:00.000 --> 00:00:04.880 If you're a small business owner and you're trying to build a brand and generate leads, 2 00:00:04.880 --> 00:00:12.480 I just did a full keynote at JimCon talking about business in general and how two generate leads 3 00:00:12.480 --> 00:00:18.640 for your business. Enjoy. Okay, so last one's referral. And I'm going to say, when I say 4 00:00:18.640 --> 00:00:22.720 referral here, I mean, a referral partner, meaning you have a chiropractor, you have a doctor 5 00:00:22.720 --> 00:00:25.920 that you helped out and they have a huge practice and they start sending you and you create some 6 00:00:25.920 --> 00:00:32.000 sort of relationship that you still do these things to attract this person and if you're like, 7 00:00:32.000 --> 00:00:36.560 man, if I only I've got this one guy and he sends me like half my customers, well, how amazing 8 00:00:36.560 --> 00:00:40.960 would it be if you had 10 of those guys or 20 of those guys? Well, you know how you do that? 9 00:00:40.960 --> 00:00:49.440 You ask them. You reach out to them. You give them gifts. You bribe them. Really? That's how it works. 10 00:00:50.400 --> 00:00:56.240 And you know you bribe another business owner? You send them business. If you want someone 11 00:00:56.240 --> 00:01:01.040 to send you business, send them business first. Little rule of life. It works a lot better that way. 12 00:01:01.040 --> 00:01:07.600 Okay, so we have our inputs and our outputs in the system, right? So it starts with advertising. 13 00:01:07.600 --> 00:01:15.840 And for the vast majority of you guys, you are not advertising enough. That's it. Who here spends 14 00:01:15.840 --> 00:01:20.640 four hours a day, six days a week advertising doing one of those four things? 15 00:01:23.520 --> 00:01:26.560 Does your gym make money? Yeah. 16 00:01:30.400 --> 00:01:33.040 It's like, I don't have a gym, but yes, I make money. It's like, what are you doing here? It's 17 00:01:33.040 --> 00:01:40.080 called gymcon. All right. I promise you, if you spend four, like four hours a day is not much. 18 00:01:40.080 --> 00:01:48.560 They four hours a day. I don't know. What do you do it? 19 00:01:54.560 --> 00:01:59.280 Why your business isn't growing? You're not trying to grow it. 20 00:02:02.800 --> 00:02:06.000 All right. Cool. Well, I mean, we could just stop there. 21 00:02:06.240 --> 00:02:12.320 None of you are even doing it. All right. Well, let's talk about efficiency while 22 00:02:12.320 --> 00:02:15.120 rat. It doesn't matter. It's not putting anything in the system. Anyways, well, let's talk about it. 23 00:02:15.680 --> 00:02:25.920 So fundamentally, I'm being dead serious. If I were to spend a full day with each of you, 24 00:02:26.720 --> 00:02:31.440 I'd be like, oh, okay, well, what are we going to do with the rest of our eight, seven hours and 25 00:02:31.440 --> 00:02:35.600 40 minutes that we have for this day because that's the problem. But okay, let's talk about 26 00:02:35.600 --> 00:02:41.520 efficiency. So fundamentally, you've got to let people know. Fantastic. Now they know you've got to 27 00:02:41.520 --> 00:02:45.520 get them to give you money, which is going to be the conversion process. All right. Cool. 28 00:02:45.520 --> 00:02:50.240 Conversion is going to be the next step in this efficiency. I'll give you a little spoiler 29 00:02:50.240 --> 00:02:55.120 of the next ones. Then you've got your price and then you've got your churn. 30 00:02:56.640 --> 00:03:01.280 And I'm saying this specific to gyms because it's recurring business. Okay. So if we think 31 00:03:01.280 --> 00:03:07.840 about what a business is, you get more customers or you make them worth more. It is the only way that 32 00:03:07.840 --> 00:03:14.160 you will make more money. Fundamentally, that is it. There's no other way. Get more customers, 33 00:03:14.160 --> 00:03:18.480 make them worth more. If we double click into each of these, getting more customers means you need 34 00:03:18.480 --> 00:03:23.600 more traffic and better conversion. And so if right now you're not getting enough customers, it means 35 00:03:23.600 --> 00:03:29.760 you need more traffic or better conversion. If you need to make your customers worth more, 36 00:03:29.760 --> 00:03:34.480 the only thing you can do to make them worth more is you raise your prices, you decrease churn. 37 00:03:38.160 --> 00:03:42.000 That's what you have control over. And so if you're like, okay, how do I make my customers 38 00:03:42.000 --> 00:03:47.280 worth more? Raise your prices, get them to buy more times. That's what churn, decreasing churn is. 39 00:03:47.280 --> 00:03:50.560 Get them to buy for 10 months rather than five months or three months. 40 00:03:52.240 --> 00:03:57.120 And so the idea here is that once we feed the machine, this is the raw input, this is eyeballs, 41 00:03:57.120 --> 00:04:01.760 this is the activities that you do that get people to find out. Then it's about how many of these 42 00:04:01.760 --> 00:04:08.080 things can we turn into money? And how much money can we turn it into? And so the most efficient 43 00:04:08.080 --> 00:04:14.160 gyms are ones that convert a very high percentage, at a very high price, and get people to buy lots of 44 00:04:14.160 --> 00:04:21.040 times. And so this is from a constraints perspective, figuring out what's wrong with your gym, 45 00:04:21.040 --> 00:04:24.080 and for everybody who didn't raise their hand, which is literally everyone here, it's this, 46 00:04:25.040 --> 00:04:31.200 but we'll talk about the other three. Is that you have steps within this conversion process, 47 00:04:32.320 --> 00:04:36.480 you have to get them to schedule, you have to get them to show, and you've got to close. 48 00:04:37.440 --> 00:04:43.360 So who here sucks at sales? Can I get a hand? Some of you suck at sales. That's fine. It's helpful 49 00:04:43.360 --> 00:04:48.960 to actually, it's like the first step is being like, hi, my name's Sarah, and I can't close a door. 50 00:04:49.920 --> 00:04:56.560 So it's okay. And so if you want to get better at sales, if that's the problem, you're getting 51 00:04:56.560 --> 00:05:01.920 leads in the door, but you can't close, then you practice closing, and you do that for four hours 52 00:05:01.920 --> 00:05:06.400 a day. And so there's probably a meta takeaway here, which is that whatever the big problem in my 53 00:05:06.400 --> 00:05:13.840 businesses, that's what my first four hours every day are spent doing, until I solve that problem. 54 00:05:14.560 --> 00:05:18.640 And then I change what that four hours have spent on, but that four hours that I spent in the 55 00:05:18.640 --> 00:05:22.880 morning, before everyone gets there, or if you're a late night person, the last hours of the day 56 00:05:22.880 --> 00:05:28.000 when everyone's asleep, that is what moves the business forward. The vast majority of people 57 00:05:28.000 --> 00:05:32.880 skip those four hours and go straight to firefighting all day, but the thing is that if you look back 58 00:05:32.880 --> 00:05:38.000 on last month, or two months, or three months back, the only thing that you really will have to show 59 00:05:38.000 --> 00:05:43.440 for progress is what you did in those four hours. It's something that it took me a little bit of time 60 00:05:43.440 --> 00:05:48.800 to realize. And I was like, oh, if I don't do that four hours, nothing big moves forward, 61 00:05:48.800 --> 00:05:52.560 but what I can promise is that I don't remember any of the fires that I put out last month. 62 00:05:54.160 --> 00:05:57.920 The fires are going to happen and they will get put out. You'll also find that if you ignore them, 63 00:05:57.920 --> 00:06:05.120 they tend to also go away. Real talk. And so if you're having a conversion issue from sales, 64 00:06:05.120 --> 00:06:09.280 you practice sales. The way you practice sales is you role play. You do it with somebody else. 65 00:06:09.280 --> 00:06:15.600 Play with a friend. It's how it works. And you want fast feedback loops. You need to be able to 66 00:06:15.600 --> 00:06:22.640 breathe the script. And the secret to making sure that you don't sound dumb in the sale is you make 67 00:06:22.640 --> 00:06:28.160 them sound dumb in the sale. And you do that by asking questions. So no one can oppose you as a little 68 00:06:28.160 --> 00:06:35.840 pro tip. No one can oppose you if you make no statements. So whoever answers questions in the sale 69 00:06:35.840 --> 00:06:40.480 is the one who's losing. And so you can even address this with every single obstacle that you 70 00:06:40.480 --> 00:06:47.280 ever come in contact with. Well, what certifications do you guys have here? Which ones you're looking for? 71 00:06:49.280 --> 00:06:52.800 They don't know. This is a question their friends told them to ask. They have no idea. 72 00:06:55.040 --> 00:06:59.600 And then they're like, you know, what are the workouts like? Well, what's your dream workout? 73 00:07:00.240 --> 00:07:05.760 They tell you. You're like, well, it's not that. If I really want to be like, well, 74 00:07:05.760 --> 00:07:09.760 how's that working for you? Well, I don't do them. Okay. That's why you're here. Cool. Well, 75 00:07:09.760 --> 00:07:15.200 don't want you to do our workouts. So the thing is, there's always a way to sidestep 76 00:07:15.200 --> 00:07:19.360 objections by just asking what they're trying to get out of the question that they're asking you. 77 00:07:20.400 --> 00:07:24.800 And most of the time, they have no idea because you should know the answer to their question 78 00:07:24.800 --> 00:07:28.880 better than they do because you've had this conversation before. Imagine having the same conversation 79 00:07:28.880 --> 00:07:34.560 over and over again and sucking at that one conversation. Mind blowing. It's also like not 80 00:07:34.560 --> 00:07:45.600 advertising your fucking business. Anyways, so you've got show rates. You've got schedule rates. 81 00:07:46.720 --> 00:07:53.200 And you've got close rates. So that's our conversion efficiency. And so whichever one of these is 82 00:07:53.200 --> 00:07:57.360 below benchmark is the one that you spend your hours on. I'll also promise you that schedule 83 00:07:57.360 --> 00:08:01.440 rate and show rate if you actually spend four hours a day on it will not be a problem at all. 84 00:08:02.240 --> 00:08:06.160 But everyone just wants this to just go away magically and wants everyone just like show up 85 00:08:06.160 --> 00:08:13.760 ready to close like my lead suck. All leads suck until they become customers and they're amazing. 86 00:08:14.320 --> 00:08:19.920 But then like the process of taking a lead and making it to a customer is work. And everyone's 87 00:08:19.920 --> 00:08:27.040 afraid of doing that. And so now we get into LTV. So you advertise more. You work on these things 88 00:08:27.040 --> 00:08:31.360 for conversion to increase the conversion rate you have in the business. And then you've got 89 00:08:31.360 --> 00:08:42.320 price in turn. Now, KL I'm sure talked about pricing at some point. Yes? Okay. You're probably price 90 00:08:42.320 --> 00:08:49.440 too low. And it's not because we want to destroy your gym. You're price too low because at that 91 00:08:49.440 --> 00:08:54.240 price you will not make a profit. The amount of times that I had gym owners were like my gym's 92 00:08:54.240 --> 00:08:59.440 full and I'm not making money. And I was like do you see a problem? Like you can't service any more 93 00:08:59.440 --> 00:09:06.320 customers, but you don't make any money. Get one going with this. Like something has to change. 94 00:09:06.320 --> 00:09:10.640 And if you're already full, we just need to increase the price. You're miss price and that's okay. 95 00:09:11.360 --> 00:09:17.040 Like that's how you learn. But for many of you, you just need to send an email and send the letter 96 00:09:17.040 --> 00:09:22.800 and let people know that from this point going forward. This is the new price. Grab your big boy 97 00:09:22.800 --> 00:09:27.040 and big girl pants and say like I'm going to take this risk because the other way is guaranteed 98 00:09:27.040 --> 00:09:32.000 to never work. That's the thing is like we want to stay in the same boat and be like you know what? 99 00:09:34.000 --> 00:09:39.280 Even though all the math makes sense with this higher price, I'm afraid and I'm going to let that 100 00:09:39.280 --> 00:09:48.640 stop me forever from getting the business to be where it needs to be. That sucks. So don't think that. 101 00:09:48.720 --> 00:09:57.280 Make the bet and then deliver like that actually is your price and do a really good job on the 102 00:09:57.280 --> 00:10:03.040 back end. And the way that you do a good job, which Jim much has already given you, but you have 103 00:10:03.040 --> 00:10:06.560 exit interviews with people on the way out the door. You can save half of them by saying oh you're 104 00:10:06.560 --> 00:10:10.160 right, I didn't give you enough support. You should go into this higher thing. That's what actually 105 00:10:10.160 --> 00:10:15.040 gives you the support. You save half of your customers. Awesome. You reach out to them every two 106 00:10:15.040 --> 00:10:22.240 weeks or so as though you actually cared about them. That was a joke. But no one laughed it down. 107 00:10:22.240 --> 00:10:27.840 Anyways, so you reach out to them every couple weeks and you just make sure it's a touch base. 108 00:10:27.840 --> 00:10:31.680 It's a pulse check. You don't even need to talk about fitness. It's just to make sure that they know 109 00:10:31.680 --> 00:10:36.320 that you know that they exist. You track attendance when someone says that they're actually going to show 110 00:10:36.320 --> 00:10:40.560 up for a time. You make sure they show up and if they don't show up you say hey Marley, where were 111 00:10:40.560 --> 00:10:46.320 you? I missed you. We actually track this and we could watch people go from three times a week, 112 00:10:46.320 --> 00:10:50.720 three times a week, two times a week, one time a week, cancel. You can just watch it if you track 113 00:10:50.720 --> 00:10:55.680 attendance. But if you implement that you go three times a week, three times a week, two times a 114 00:10:55.680 --> 00:10:58.880 week, Marley get your ass in here, three times a week, three times a week and she keeps going. 115 00:11:00.080 --> 00:11:01.600 They have to know that they're missed. 116 00:11:05.760 --> 00:11:09.360 The next one and this is something that happened later in my life that I learned is about 117 00:11:09.360 --> 00:11:14.240 onboarding. So when somebody comes in the door and you do sell them, the next 24 hours are 118 00:11:14.240 --> 00:11:17.840 absolutely crucial to making, is setting all the expectations of what their experience is going to 119 00:11:17.840 --> 00:11:27.280 be. And so right now if your onboarding process is shop on Monday, tough, very hard. And so if 120 00:11:27.280 --> 00:11:32.000 there's ever a time where you invest more resources into a customer, it's in that first 24, 48, 121 00:11:32.000 --> 00:11:37.360 72 hours so that they know exactly where they're going to go at what time, who's going to talk to 122 00:11:37.760 --> 00:11:41.040 them, who we confirm's they're showing up because they're petrified because they've worked out 123 00:11:41.040 --> 00:11:43.600 in six years and they feel terrible and they used to be a high school student and they can't 124 00:11:43.600 --> 00:11:48.160 look at the skill now because it makes them feel terrible. Whatever. Right. And we have to deal with this 125 00:11:49.360 --> 00:11:55.360 by over communicating in the window of time that makes the most sense. And so even if it feels like 126 00:11:55.360 --> 00:12:00.320 it takes a little bit more effort, I promise you, you will get two, three, five more purchases from 127 00:12:00.320 --> 00:12:05.040 this person in terms of months by just making sure that they know when they're supposed to be there, 128 00:12:05.040 --> 00:12:08.320 who's going to be there to welcome them and who's going to show them around a little bit in the 129 00:12:08.320 --> 00:12:17.200 beginning so that they don't feel like they're completely lost. Okay. That's churn. Fantastic. 130 00:12:18.080 --> 00:12:24.480 So right now, if your business is not growing as much as you want, you're not advertising enough. 131 00:12:24.480 --> 00:12:27.840 If you're advertising enough and people are finding out about it, you're getting leads, 132 00:12:27.840 --> 00:12:31.840 they're either not scheduling, not showing or not closing. If it's one of those three, 133 00:12:31.920 --> 00:12:35.360 then all of your effort in that first four hours of the day is to get into the schedule, 134 00:12:35.360 --> 00:12:40.720 getting to show, getting to close. If you're getting all of that stuff, you've got lots of people 135 00:12:40.720 --> 00:12:44.640 and you're closing them up, but you're not making any money, you're mispriced. 136 00:12:47.920 --> 00:12:52.320 And if you're getting all of this and you have a high price, but everyone falls out the back door, 137 00:12:52.320 --> 00:12:57.120 you have to make your stuff better. And this is how you walk through it. This is how you figure out 138 00:12:57.120 --> 00:13:02.080 what the problem in the business is. And so, who here has capacity in their gym right now? 139 00:13:03.520 --> 00:13:16.720 Okay. Start there. So, that is part one of my talk. Everyone feel good about that? Okay. 140 00:13:18.000 --> 00:13:24.000 Thank you. So part two of the talk is reverse engineering your goal. 141 00:13:24.720 --> 00:13:29.200 And so, the reason that I broke down the activities that you need to do into those four things is 142 00:13:29.200 --> 00:13:33.760 because we have to figure out how many cost or how many activities 143 00:13:36.960 --> 00:13:49.440 equals one customer. So, if you know that on average, you post, let's say 30 times a month, 144 00:13:49.440 --> 00:13:56.320 so you post 30 times a month. And from those 30 posts that you make, you get five customers. 145 00:13:59.040 --> 00:14:03.600 Which for most of you is not the case because your local businesses and this doesn't work that way. 146 00:14:03.600 --> 00:14:07.440 But since that's what 20% of you are doing, we'll talk as though that's what happens. 147 00:14:08.080 --> 00:14:12.160 So, if you make 30 posts, you get five customers, so you can say for every six posts, I get one customer. 148 00:14:12.880 --> 00:14:18.400 Okay. So, I need to make more posts and any better posts. And if you're like, okay, I want to get to 149 00:14:20.320 --> 00:14:29.680 25 customers is my goal. This is the goal. Then, I need to 25x this. 150 00:14:32.640 --> 00:14:38.640 So, you make 150, which means I need to do five a day. Okay. This is something I can control. 151 00:14:40.240 --> 00:14:44.080 Is this making sense? This is literally what I do with the businesses that we buy. 152 00:14:44.720 --> 00:14:48.800 I just say, I just boil everything down to like, what do we do that makes us money? 153 00:14:48.800 --> 00:14:51.520 Not all the stuff after that. What do we do that makes us money? 154 00:14:51.520 --> 00:14:56.080 And they're like, okay, we have an outbound team. I'm like, okay. So, what are the outbound activities? 155 00:14:56.080 --> 00:15:01.920 It's like, well, we haven't tracked it well yet. Well, start. So, let's say you do 100 reach outs. 156 00:15:04.960 --> 00:15:10.560 And that creates one customer. Okay. And currently you're getting 10 customers. 157 00:15:10.960 --> 00:15:18.720 Currently, fantastic. And so, maybe you're doing 1000 per month, which means you're doing 30 per day. 158 00:15:20.160 --> 00:15:27.440 Okay. Well, if I want to get to 50 customers a month, then I need to 5x this to get to 150 per day. 159 00:15:28.960 --> 00:15:34.960 And then that gets me my 50 customers. And what's interesting is that when you do actually 160 00:15:34.960 --> 00:15:40.880 increase the volume that much, you also get better. So, you actually get leverage on the time 161 00:15:40.880 --> 00:15:45.360 because your skill improves. If you do 100 reach outs a day for a while, you get pretty good at. 162 00:15:46.240 --> 00:15:50.640 But when you start in the beginning and you do 10 a day, you just tend to keep sucking. 163 00:15:51.520 --> 00:15:55.600 Because you never do enough to turn the corner to get enough reps in. So, let me ask you a different 164 00:15:55.600 --> 00:15:59.920 question. Maybe drive this home. Has anyone had a day where you had like, or like, maybe a week 165 00:15:59.920 --> 00:16:03.600 where you had a lot of sales? You had two, three, four appointments a day for like a week straight. 166 00:16:03.600 --> 00:16:08.080 Can I get a hand? Okay. Did you feel like you were way hotter? Like, when you were selling, 167 00:16:08.080 --> 00:16:10.800 you're like, okay, because you get these fast feedback groups. You're like, I got another one 168 00:16:10.800 --> 00:16:14.880 in another one an hour and then you like, practice again. Ooh. And so, like, you're sharpening the 169 00:16:14.880 --> 00:16:19.680 sword. On the flip side, you have a dead week and you have like two sales consults. It's like, 170 00:16:19.680 --> 00:16:25.840 you got to like, like, brush the rust off, right? Like, the amount that you work, the amount of volume 171 00:16:25.840 --> 00:16:30.720 you do will directly feed into how good you are at it. And that's why the rich keep getting richer. 172 00:16:30.720 --> 00:16:36.160 Is that they do more and by doing more, they get more from there more. They get better too. 173 00:16:37.520 --> 00:16:41.360 And so, that's how skills start compounding and that's how you can just blow everyone away. 174 00:16:41.360 --> 00:16:46.160 Like, the idea that any single person here gives a shit what the guy down the street is doing, 175 00:16:46.800 --> 00:16:56.160 baffles me. It just doesn't matter at all. Because that guy is like, everyone else here 176 00:16:56.240 --> 00:17:03.840 and not even advertising. And he's mispriced and he's breaking even, even though his classes are 177 00:17:03.840 --> 00:17:08.240 their people running outside looking crazy, he still doesn't take any money home. You know, I know, 178 00:17:08.240 --> 00:17:12.720 because I've looked at so many Jim owner P&Ls, no one makes money, except for the guys who track 179 00:17:12.720 --> 00:17:17.920 their stuff, know their imports, actually advertise, work their leaves, price appropriately, 180 00:17:18.000 --> 00:17:19.600 and remind customers to actually use the gym. 181 00:17:27.600 --> 00:17:34.480 It's just that the bar for winning is not that high. And so, I was going to wait to make this like 182 00:17:34.480 --> 00:17:38.720 the last part of the presentation, but I'm going to end up going here, so whatever. 183 00:17:48.000 --> 00:18:01.920 I don't understand why you don't do this. Because like, everything you want is on the other side 184 00:18:01.920 --> 00:18:06.480 of you getting the business that works, that generates a profit, that keeps your customers happy, 185 00:18:06.480 --> 00:18:10.880 that provides for your team. Like, everything that you want is on the other side of that. 186 00:18:11.840 --> 00:18:16.800 And you're like, you're like on Facebook. And I just, I don't get it. 187 00:18:18.000 --> 00:18:21.520 Like, I just, I don't get it. It's beyond me. And so, 188 00:18:23.600 --> 00:18:28.560 and this is the part that I said was similar between companies of the size. So I'm going to give you 189 00:18:28.560 --> 00:18:35.360 hopefully the highest ROI hack that you will only be able to do at this level under 150,000 a month. 190 00:18:35.360 --> 00:18:38.800 You'll never be able to get this again. It will only happen at this stage. 191 00:18:40.400 --> 00:18:44.400 And so, when I think about conferences and workshops and things that I've attended, 192 00:18:45.600 --> 00:18:49.200 you all have a lot of notes. You have a lot of stuff written down that you're like, 193 00:18:49.200 --> 00:18:56.160 I need to do all seven pages of these notes. But we'll be real. You'll fly back. 194 00:18:56.880 --> 00:19:00.240 You'll put the notes somewhere or that Google Doc will start moving down in the 195 00:19:00.240 --> 00:19:04.400 recent C thing. And then you'll be like, oh, wait, what was I going to do? 196 00:19:05.360 --> 00:19:09.760 And so, realistically, you have like a sticky note that has like three things on it. 197 00:19:09.760 --> 00:19:14.800 They are actually going to do. Everything else, really great ideas, might not be what you need right now. 198 00:19:15.520 --> 00:19:21.200 Because every business only has one constraint. And so, you can de-constraint it, it will stay stuck. 199 00:19:21.760 --> 00:19:25.680 And then when you do that, it will grow until it's next constraint. And that's how business works. 200 00:19:26.400 --> 00:19:32.000 And so, I want to make sure that the three things on that sticky note are the right three things 201 00:19:32.000 --> 00:19:40.560 that will make you the most money. So, what if I told you that there were a way that you could get, 202 00:19:40.560 --> 00:19:44.880 so who, right now, imagine you're best employee. Who here is employees just to make sure? 203 00:19:44.880 --> 00:19:51.360 Okay, thank you. Okay. So, imagine the best employee you have. If you could have 204 00:19:51.520 --> 00:20:01.040 twice that. Would you make more money? Would you be willing to pay $1,500 a month? 205 00:20:01.760 --> 00:20:06.480 This isn't going where you think it is. $1,500 a month to get that employee a double, 206 00:20:06.480 --> 00:20:15.440 a clone, if you will, of that employee. Would you do it? All right. So, the average American 207 00:20:15.440 --> 00:20:26.560 spends 20 things 20, my numbers are going to be close. 24 hours per month on food. 208 00:20:29.680 --> 00:20:36.800 Food. As in going to the grocery store, prepping, cooking, cleaning up after yourself, 209 00:20:37.440 --> 00:20:41.920 consuming the food and cleaning up after the dishes that you made. All of that 24 hours a month. 210 00:20:42.320 --> 00:20:48.160 The average American also, so this is food, for cleaning, cleaning their homes, 211 00:20:51.280 --> 00:20:57.200 spends, you know what? It might be per week. I can't remember. I'll just say the three 212 00:20:57.200 --> 00:21:04.960 and I don't remember the stats, but for cleaning, it's like 20 hours per month that people spend. 213 00:21:05.040 --> 00:21:18.560 And then laundry is like 19 or something. All of these on a monthly basis add up to 96 hours, 214 00:21:18.560 --> 00:21:25.360 which is what I actually remember. Between all the time you spend on food, all the time you spend 215 00:21:25.360 --> 00:21:30.560 cleaning, all the time you spend doing laundry, all the time you spend doing human stuff, 216 00:21:30.800 --> 00:21:36.400 like things for your human, this body bag you got to walk around it, right? Really annoying. 217 00:21:36.400 --> 00:21:42.080 No one can do it. No one can go to the bathroom. If I could delegate like going to the bathroom 218 00:21:42.080 --> 00:21:46.240 and showering, like, dear God, it would be awesome. There's a point to this. 219 00:21:48.400 --> 00:21:56.160 You can get 96 hours a month back by paying 1500 bucks a month to get someone to make all your 220 00:21:56.160 --> 00:22:06.080 food for you, clean your house, and do your laundry. And hold on, hold on. And you would do this 221 00:22:06.080 --> 00:22:11.360 for the most valuable person in your business who's not your employee, it's you. 222 00:22:13.360 --> 00:22:18.800 You're happy to do it for them, but you don't do it for you because you don't want to waste money. 223 00:22:19.520 --> 00:22:26.560 But you would literally do it for a teammate who's not as good as you, and I'm making a bet here 224 00:22:26.560 --> 00:22:29.040 because they don't own the business and they probably not as skilled as you are because you probably 225 00:22:29.040 --> 00:22:35.440 taught them half the stuff they know. And you're not doing it. And so I want to break this like, 226 00:22:35.440 --> 00:22:41.680 if I can get every single person here in 96 hours a month, it's almost it's more than two full 227 00:22:41.680 --> 00:22:46.720 work weeks. And the difference is like I don't get into like stop watching Netflix and television 228 00:22:46.800 --> 00:22:50.400 and all that stuff because that's another 100 hours. But you guys like that stuff and you're not 229 00:22:50.400 --> 00:22:58.640 going to stop. So who cares? I'm not even getting it. You are. But no one likes this. Now if you like 230 00:22:58.640 --> 00:23:04.400 cooking fine, that's leisure, but like prepping your food, prepping other people's food, 231 00:23:04.400 --> 00:23:07.920 going grocery shopping, no, it's like, man, I just love grocery shopping. Well, some of you do, 232 00:23:08.000 --> 00:23:18.720 you're fucking weird. But, but it's not worth it. And so right now, I'm lattering up to this, 233 00:23:19.520 --> 00:23:24.880 the four hours a day that no one here is spending to actually grow their company, I just found it. 234 00:23:26.480 --> 00:23:31.520 And for $1,500 a month and I said, you can only do this once. I can only outsource my food one 235 00:23:31.600 --> 00:23:37.760 time in my career. After that, I don't get the gain again. You're at a point where you have to start 236 00:23:37.760 --> 00:23:42.240 valuing your time and being willing to trade dollars for time. Like if you had to hire somebody 237 00:23:42.240 --> 00:23:47.600 for two grand a month, you're like, oh, wow, what a steal. But I'm asking you to hire yourself 238 00:23:47.600 --> 00:23:52.080 for another 96 hours a month by getting rid of all this stuff on your plate that's not making you 239 00:23:52.080 --> 00:24:01.040 money. And so when I go, when I go back to this idea of the stuff that grows your business 240 00:24:01.120 --> 00:24:06.480 is really straightforward. And so I was racking my brain. I was like, why don't people do this? 241 00:24:07.120 --> 00:24:13.680 And maybe you're tired, maybe you're distracted. Well, when I had these meetings where I talk to 242 00:24:13.680 --> 00:24:18.240 these smaller, you know, with the business owners that are between 10 and 150,000 a month, 243 00:24:19.600 --> 00:24:26.560 this is what they're telling me they're spending their time on. And don't stop. 244 00:24:26.560 --> 00:24:35.520 And I promise you, if you spend 96 hours a month on the constraint of your business, it will grow 245 00:24:35.520 --> 00:24:40.640 a lot. And then everything will be a year. And then it was like, what it was your secret? 246 00:24:40.640 --> 00:24:44.960 Like, I told me I should stop cooking my own food. And then I started working my leads. 247 00:24:44.960 --> 00:24:50.800 Look, and we made more money. If you can make more than $15 an hour actively working, 248 00:24:50.800 --> 00:24:56.000 because that's with 1,500 bucks divided by 96 is roughly. Then it's worth it. 249 00:24:56.960 --> 00:25:01.440 Now, if you do that, and then you do nothing with the action 96 hours, then shame on you. 250 00:25:01.440 --> 00:25:02.320 It deserve to be part. 251 00:25:06.000 --> 00:25:12.160 So, please do that. It's on the sticky note for the day. 252 00:25:13.040 --> 00:25:17.120 Is that maybe sticky point number one? Spend four hours a day on the constraint of my business. 253 00:25:17.760 --> 00:25:23.920 Sticky note number two. Make sure that I actually get those four hours a day in by paying for all 254 00:25:23.920 --> 00:25:29.040 the things that are not that. And so, once you're really clear on the things that you actually have 255 00:25:29.040 --> 00:25:35.440 to do from an activity perspective, the rest becomes elimination. And so, right now, a lot of you guys 256 00:25:35.440 --> 00:25:39.280 have a lot of things on your to-do list, right? I'm sure, especially leaving here, like, oh my God, 257 00:25:39.280 --> 00:25:44.800 I have all the stuff I have to do. But I would encourage you to focus on your to-don't-list, 258 00:25:45.440 --> 00:25:56.480 like, really, really. I get a lot of credit for the speed that we moved in business, 259 00:25:57.200 --> 00:26:06.080 and I would put a disproportionate amount of effort or weight on the fact that we just try not 260 00:26:06.080 --> 00:26:13.120 to spend time doing stuff that doesn't matter. And trying to not spend time wasting mental energy 261 00:26:13.120 --> 00:26:18.880 on things that I can buy to replace. And so, like, when I was a single guy, I get made fun of 262 00:26:18.880 --> 00:26:23.760 on TikTok now for it. But, like, I just went to Chipotle for all my meals. I never bought groceries 263 00:26:23.760 --> 00:26:28.720 because it didn't make any sense. Because I was like, well, if I close a sale, that's $500. 264 00:26:29.760 --> 00:26:37.440 And that's all my Chipotle for, like, two weeks. And then I can not worry about food at all. And 265 00:26:37.440 --> 00:26:42.320 then the next hour, I could close another $500 and be like, well, that's my cleaning for the month. 266 00:26:42.320 --> 00:26:48.560 And then the next hour, right? See what I'm saying here? But if you think small, you stay small. 267 00:26:49.040 --> 00:26:53.280 Like, you got to be willing to take the bet. And if there's ever been somebody to reinvest your time 268 00:26:53.280 --> 00:26:57.120 into getting more skills, why on earth would you not do it for you? 269 00:26:57.600 --> 00:27:13.120 Okay. So, I'm going to do two more. Okay, I'm good. So, I'm going to do two more. Two more quick 270 00:27:13.840 --> 00:27:23.120 topics. So, one of the things that I pride in myself on was buying education, buying experiences, 271 00:27:23.120 --> 00:27:29.680 buying help to move faster. And anyone here have a client that you're like, they're just an 272 00:27:29.680 --> 00:27:33.280 amazing client. I could have just said, like, run that way and just eat less than they would have 273 00:27:33.280 --> 00:27:37.120 just succeeded. I mean, like, hands if you had that client. I love that client. They leave the 274 00:27:37.120 --> 00:27:42.240 best testimonials. They're the great before and after pictures. On the other hand, who here's 275 00:27:42.240 --> 00:27:49.280 had Susan? You already know Susan. We all know Susan. Right? Susan has a slow metabolism. 276 00:27:49.280 --> 00:27:55.760 All right. She is very bad genetics. And big bone is, you know, everyone in her family is. 277 00:27:56.320 --> 00:28:01.520 And, you know, she's been to a couple of doctors. They gave her some medications. And nothing's 278 00:28:01.520 --> 00:28:10.320 worked. And you know, when you start, she's already blamed nine people for the fact that she cannot 279 00:28:10.320 --> 00:28:22.400 control this. Being real, how do you think you get fat? This. Just this. This one activity. That's 280 00:28:22.400 --> 00:28:29.920 it. And she's blamed every other person on earth for the fact that she can't stop doing it. 281 00:28:31.520 --> 00:28:34.240 Some of you guys are Susan with your business. 282 00:28:34.480 --> 00:28:43.200 You're not this person who can go watch a YouTube video and immediately execute everything and be an 283 00:28:43.200 --> 00:28:50.960 amazing client. You're Susan. You're saying my market sucks. My leads are bad. Like this, the price 284 00:28:50.960 --> 00:29:00.160 change didn't work for me. My turn's high because people don't value my product. And so it's just 285 00:29:00.240 --> 00:29:08.560 this loser victim wanting to buy things only to prove that it won't work for you so that you can 286 00:29:08.560 --> 00:29:18.160 be self affirmed in the fact that it's not your fault. It's ridiculous. It's Susan. You're a 287 00:29:18.160 --> 00:29:27.280 Susan. Susan sucks. And the thing is, it's like, even one of you is like, you know what I do kind 288 00:29:27.280 --> 00:29:34.400 of do that. My goal of every time I get into anything that's education based has always been to 289 00:29:34.400 --> 00:29:41.440 not be a success story, but to be the number one person they have ever had. And to be real, I was 290 00:29:41.440 --> 00:29:48.240 like, because it's about me not you. I will win. I don't care if they're a mediocre teacher. I'll 291 00:29:48.240 --> 00:29:53.200 still learn it. And I'll still execute them. And I'll get better than they are at their own 292 00:29:53.200 --> 00:30:00.800 things so that people start asking me to teach them. And that's more or less happened in my life. 293 00:30:02.080 --> 00:30:07.440 But the idea that you can have like there's no there's no savior. Jim won't just not your savior. 294 00:30:08.320 --> 00:30:12.800 We're not going to save anybody. We'll tell you the stuff that you need to do. And if you actually 295 00:30:12.800 --> 00:30:18.400 do it, you'll win. But that if you actually do it is the part that most people suck at. 296 00:30:18.640 --> 00:30:25.120 And so I'm trying to give you these hours things of like, okay, buy by 96 hours back. And trying to 297 00:30:25.120 --> 00:30:30.880 give you this this stuff of don't go into anything with the idea that you want like if you ever buy 298 00:30:30.880 --> 00:30:38.800 something with the intention of proving that it doesn't work. Shame on you. It sucks. What a terrible 299 00:30:38.800 --> 00:30:46.240 little if. Like go into it trying to be the person who gets so good that the the the business 300 00:30:47.680 --> 00:30:55.280 asks you for advice. And I don't know where where when something snaps in you. But like I've seen 301 00:30:55.280 --> 00:31:03.200 it happen. I remember there was a gym owner years ago who was a Susan just moaned just moaned. 302 00:31:03.280 --> 00:31:09.440 It's all like a moaning just moaning all day about his life. And I remember having like 303 00:31:09.440 --> 00:31:14.800 hopping on a call or being a little bit rougher than I normally am. And he like snapped out of it. 304 00:31:16.560 --> 00:31:20.240 And then he became one of the top gyms and then we hired him on. 305 00:31:22.400 --> 00:31:28.880 Same got. Same information. Completely different perspective on how he chose to execute it. 306 00:31:29.840 --> 00:31:34.640 And so like if you like so many here who here got into fitness because you like fitness. There's a 307 00:31:34.640 --> 00:31:40.640 passion of yours. Right. You need to start learning how to love business. Because if you treated 308 00:31:40.640 --> 00:31:46.400 your business the way you treated your body you make a shit load more money. And so one of the 309 00:31:46.400 --> 00:31:51.120 interesting things about the fitness space is that I see the posts I actually see a lot more of your 310 00:31:51.120 --> 00:31:57.840 guys stuff than you guys think. Where you make these posts about being disciplined right about doing 311 00:31:57.840 --> 00:32:04.640 the hard work when no one's looking. Right. It's right. Day 72. You know still cranking 312 00:32:04.640 --> 00:32:12.800 stuff out here 4 a.m. Getting it in. But it doesn't make you tough because you like it. 313 00:32:14.480 --> 00:32:19.840 What makes you tough is doing shit you don't like. And right now you don't work your leads. 314 00:32:20.800 --> 00:32:24.640 You don't follow up with customers. You don't send handwritten cards. You don't have member 315 00:32:24.640 --> 00:32:29.120 events. You don't spend money on ads. You don't learn editing software so you can make better ads. 316 00:32:29.120 --> 00:32:32.960 You don't research what you're going to say in the ads that they're actually good. You don't 317 00:32:32.960 --> 00:32:36.560 practice your sales script. You don't set up your lobby. You don't put reviews online. You don't 318 00:32:36.560 --> 00:32:40.560 ask people for reviews. You don't ask people for referrals. You don't try and make affiliate partners. 319 00:32:43.680 --> 00:32:46.240 But you're tough because you can drink egg whites. 320 00:32:46.320 --> 00:32:54.960 The only person you fool is you. 321 00:33:00.560 --> 00:33:05.040 And so I just I just I want everyone here to make a lot of money and I want you guys to have 322 00:33:05.040 --> 00:33:11.280 the gyms you want. And believe it or not the gym business has not changed. You still have to 323 00:33:11.280 --> 00:33:16.480 promote it. You still have to convert those leads. And then when they come in you have to price 324 00:33:16.480 --> 00:33:20.400 appropriately so that when you're at capacity you're making a lot of money. And you have to do whatever 325 00:33:20.400 --> 00:33:26.400 you can to keep people. That's not going to change. It's just your dedication to the execution of 326 00:33:26.400 --> 00:33:33.840 it that will. And so I'll bring up my second to last point depending on when they kick me off. 327 00:33:33.840 --> 00:33:42.960 Your team sucks. 328 00:33:42.960 --> 00:34:03.120 We thought earlier about your favorite employee, right? Now picture your least favorite employee. 329 00:34:03.840 --> 00:34:11.840 Also Susan. Susan sucks. So Susan everybody got Susan in their mind that that one person that 330 00:34:11.840 --> 00:34:16.080 you're like you know it's our second quarter in a row we've been I think she's going to turn the 331 00:34:16.080 --> 00:34:24.720 corner. She can be tough sometimes. Yeah fire Susan please fire Susan she's not going to turn 332 00:34:24.720 --> 00:34:29.760 around. She's not going to make your business better. What you see is her best behavior. 333 00:34:30.720 --> 00:34:36.160 Her best behavior. And the moment you fire her you're going to hear horror stories. 334 00:34:36.160 --> 00:34:39.600 From all the customers they're going to come up to be like oh my god thank god you fire Susan. 335 00:34:39.600 --> 00:34:44.800 She was sleeping here once. Oh my gosh the other day you wouldn't believe what she said to me. 336 00:34:44.800 --> 00:34:50.720 All of this stuff fire Susan because the other thing that Susan does is she sets the bar 337 00:34:52.240 --> 00:34:58.160 for your standards. And I can tell you that the one of the biggest things that like if I can 338 00:34:58.160 --> 00:35:01.280 identify something in an entrepreneur to know that they're going to win I just look at their team. 339 00:35:02.480 --> 00:35:04.640 I don't even have to look at them I just because they're the ones doing it. 340 00:35:06.080 --> 00:35:10.320 And I'll tell you your story at least if I tell I can tell a PG version of this. 341 00:35:14.000 --> 00:35:15.680 I'm just going to be real with you. So 342 00:35:21.520 --> 00:35:26.560 when I started talking to private equity groups to consider selling a portion of gym 343 00:35:26.560 --> 00:35:30.240 much so that we could reinvest in some of the stuff that you guys will see soon it's dope. 344 00:35:33.440 --> 00:35:40.160 I had all these calls with investment bankers and private equity groups. And I remember so 345 00:35:41.040 --> 00:35:45.440 starkly the contrast between the quality of the questions that they were asking 346 00:35:46.800 --> 00:35:52.960 and how intelligent every single person on their team was compared to my team that I had built. 347 00:35:53.520 --> 00:35:59.840 And we built you know $1,500 million dollar business not bad but they were going to go make an extra 348 00:35:59.840 --> 00:36:07.440 $3 billion. And it was this moment where I was like oh there's just more levels it just keeps going. 349 00:36:08.560 --> 00:36:11.680 Steve Jobs spent the vast majority of his time bringing in talent 350 00:36:13.360 --> 00:36:18.000 because fundamentally someone else can run your facility better than you. 351 00:36:18.960 --> 00:36:23.040 The problem is that you can't get that person to work for you because of who you are 352 00:36:23.600 --> 00:36:25.840 because of the people that you allow to be in your facility. 353 00:36:27.280 --> 00:36:30.720 They would walk in they would see the other people and be like oh I don't want to associated with them 354 00:36:31.440 --> 00:36:34.640 and they just walk out the other side. And so 355 00:36:38.320 --> 00:36:43.840 you need to raise your standards. And right now I'll bet that the vast majority of the people 356 00:36:43.840 --> 00:36:49.280 that work in your business are mediocre. And that's why your gym's mediocre. 357 00:36:51.360 --> 00:36:53.600 Because if we're being real they're the ones that are doing everything. 358 00:36:54.400 --> 00:36:57.440 They're the ones that are teaching the classes. They're the ones not working the leads when you tell 359 00:36:57.440 --> 00:37:00.800 them to. They're the ones not following the sales script when the person walks in the door. 360 00:37:00.800 --> 00:37:04.720 They're the one forgetting to write the handwritten cards. They're the ones that shop late to the 361 00:37:04.720 --> 00:37:08.400 event that they're supposed to be the champions of and invite their people to but they didn't. 362 00:37:09.200 --> 00:37:12.960 They're the ones that don't wear the uniform the way you ask them to because they want to be special. 363 00:37:13.840 --> 00:37:25.600 Has anyone dealt with any of this stuff? Yes. But you tolerate it. And so it's your fault. 364 00:37:27.520 --> 00:37:36.000 And so the better the higher my standards have become the better my teams have become the easier 365 00:37:36.000 --> 00:37:42.560 businesses gotten because solving the business problems aren't complicated. It's the everything 366 00:37:42.560 --> 00:37:49.920 else. It's the fact that Susan still takes up your time. The fact that you like when you're 367 00:37:49.920 --> 00:37:54.960 in bed at night and you're talking to your spouse and you're like, God, Susan, I just I want to 368 00:37:54.960 --> 00:38:02.080 believe her. But this is the third time she was late and I'm just third time third. What happened 369 00:38:02.160 --> 00:38:09.440 after the first one? Right? And we're spending all this time, all this bandwidth that you could be 370 00:38:09.440 --> 00:38:16.640 spending actually improving the business? Not. And so Susan's cost isn't just the fact that she 371 00:38:16.640 --> 00:38:24.720 sucks at her job. She also repels anyone who's good. She also is bad with customers and she drains 372 00:38:24.720 --> 00:38:28.880 the single most important resource from the most valuable employee in the business, which is you. 373 00:38:29.040 --> 00:38:36.240 So you just have to raise the standards. Like if I were going to spend a day with each of you, 374 00:38:36.240 --> 00:38:40.560 I can promise you half the conversation. I'd be like, okay, so when you leave here today, 375 00:38:41.360 --> 00:38:46.960 you're going to you're going to stop spending 96 hours a month on stuff that you can outsource 376 00:38:46.960 --> 00:38:52.720 for $1,500. You're going to spend the four hours you just gained back actually doing whatever the 377 00:38:52.720 --> 00:38:57.600 constraint of the businesses. So you actually make more money. And you're going to get rid of 378 00:38:58.320 --> 00:39:03.520 all the people who suck. Now, part of you, I can already hear it. Like, but what am I going to do 379 00:39:03.520 --> 00:39:09.840 with the bad work that she's going to stop doing? Right? What am I going to do about the work she's 380 00:39:09.840 --> 00:39:15.200 not doing that she pretends to do that I pay her for anyways? And this is the real talk. 381 00:39:22.800 --> 00:39:30.000 Burn it through these pages. I would say you can say it with me, but we're going to 382 00:39:30.000 --> 00:39:36.080 miss time and it'll be really messy. So you can just think it with me. Double time. 383 00:39:36.640 --> 00:39:45.360 So this is a concept that I have spent almost my entire life living by, which is that I spend 384 00:39:46.320 --> 00:39:52.560 half my day working tomorrow's job and the other half of the day working my day job. 385 00:39:54.080 --> 00:40:00.880 And by thinking about my time this way, I can move on double time. I can move it twice 386 00:40:00.880 --> 00:40:10.080 the speed, but that does compound over time. And so if you have to take Susan's work over, 387 00:40:10.080 --> 00:40:16.080 I'll bet you that what took Susan 20 hours that you pay her 44, you can do in five. 388 00:40:18.240 --> 00:40:21.520 And because you haven't done it in a while, you probably realize there's a bunch of systems you 389 00:40:21.520 --> 00:40:27.200 probably clean up. And then you'll get closer to the customer. It's not a bad thing. And when you 390 00:40:27.200 --> 00:40:30.640 bring that next person in, you'll have been fresh on it and you can actually train them how to do it 391 00:40:30.640 --> 00:40:36.720 the right way and put a good feedback loop in for when they do it right. So one of the big problems 392 00:40:36.720 --> 00:40:42.160 with management overall is that it's basically, if I don't say anything, you're doing great, 393 00:40:42.160 --> 00:40:48.080 and when you mess up, I hammer you. What you want to be able to do is give people a cookie when a 394 00:40:48.080 --> 00:40:54.640 plane lands on time rather than only when plane crashes happen. Because it's kind of like, if you do 395 00:40:54.640 --> 00:40:59.600 something for your spouse, let's say you wash the dishes because they like that you wash the dishes. 396 00:40:59.600 --> 00:41:04.320 If you do that three, four, five times and they never say thanks, you're just like, either this 397 00:41:04.320 --> 00:41:10.720 isn't important or I just don't, I don't need to do this. And they think the same way about 398 00:41:10.720 --> 00:41:14.000 the role. So if you just say, hey, do this thing and you never say it again and you ever tell them 399 00:41:14.000 --> 00:41:18.320 a good job when they do it, they will do it one time. And then stop doing it because you didn't 400 00:41:18.320 --> 00:41:21.280 talk about it. And then you find out months later that this thing you thought was happening, 401 00:41:21.280 --> 00:41:24.480 isn't happening and you've been paying them for it the whole time. And so I promise you, 402 00:41:24.480 --> 00:41:28.400 if you think Susan sucks, she probably sucks more than you think she does. And she's not doing 403 00:41:28.480 --> 00:41:33.040 nearly as much work as you think she is either. And the work she is doing also probably not that good. 404 00:41:35.120 --> 00:41:46.320 So we have our big sticky note. Number one, four hours per day on the constraint. 405 00:41:47.600 --> 00:41:52.800 Which for what it sounds like everybody here is you're not advertising enough. Number two, 406 00:41:52.960 --> 00:41:59.200 you're going to replace all of the time that you spent doing human stuff, you're going to pay 407 00:41:59.200 --> 00:42:11.040 someone else to do it for you. So I'm going to say replace hours with vendors for human stuff. 408 00:42:11.040 --> 00:42:26.400 Three, get rid of Susan. But here's the thing. I say this, we laugh, we have a good time, 409 00:42:26.400 --> 00:42:32.000 get on the plane, you go back and guess what you don't do? You don't get rid of Susan. 410 00:42:32.960 --> 00:42:43.520 So let's explore this. You don't get rid of Susan because you're afraid of the conversation. 411 00:42:43.520 --> 00:42:47.840 And not the way you think it is. I'm not afraid of Susan. I'm not afraid of Susan. 412 00:42:50.640 --> 00:42:57.680 To some degree you like Susan. Susan was there in the beginning. She hasn't been always the best, 413 00:42:57.680 --> 00:43:04.800 but she's been there for you. And you care about her as a human being. And you're like, I don't 414 00:43:04.800 --> 00:43:07.040 know what Susan is going to be able to do. I don't know if she's going to be able to get a job 415 00:43:07.040 --> 00:43:10.880 after this. Imagine no one wants to hire Susan. And that's what you're afraid of. 416 00:43:13.040 --> 00:43:22.160 You're like, so I'll do it. And so you then, you know, I'm just going to have a talking tool 417 00:43:22.800 --> 00:43:29.520 that's what I'm going to do. I know Alex said this, but I know better. So I'm going to tell her 418 00:43:29.520 --> 00:43:33.760 she's missing expectations. And it's not her fault. It's not your fault, Susan. I've been a good 419 00:43:33.760 --> 00:43:40.640 communicator and I've been clear about it. And it's okay. This is good. This is communication. 420 00:43:40.640 --> 00:43:45.760 This is how we get better. You have this whole talk. And Susan keeps sucking. 421 00:43:46.240 --> 00:43:53.280 We laugh, but this is what's going to happen for 90% of you in the room. You're not going to do it. 422 00:43:55.280 --> 00:44:00.880 And so the reason the vast majority of business owners stay mediocre, stay small is because they 423 00:44:00.880 --> 00:44:09.600 can't make the hard call. They can't say, I love you, Susan. I also love every other person 424 00:44:09.600 --> 00:44:13.840 who works in this business and all of the customers. And so I have to let you go. 425 00:44:16.960 --> 00:44:24.400 And I still love you as a human being. And then you're like, wow, that felt great. Geez. 426 00:44:25.040 --> 00:44:27.120 And then you look and you're like, oh my god, you did this all wrong. 427 00:44:29.680 --> 00:44:35.440 And then you have space to go bring someone else in who's right. Because the process of building 428 00:44:35.440 --> 00:44:40.000 the gym is that you learn all the roles. You do them well. You train someone else to them. 429 00:44:40.000 --> 00:44:44.240 And then eventually if you get all those people right, you don't have to do anything. And you can 430 00:44:44.240 --> 00:44:51.840 own the asset. And then you can do it again. As a side note, I haven't seen anybody scale, 431 00:44:51.840 --> 00:44:56.320 brick and mortar, chain, service businesses without having operated that as a profit share. 432 00:44:56.880 --> 00:45:00.960 I'm just letting you guys know, this is what I've seen. It's usually 10 to 20% that usually makes 433 00:45:00.960 --> 00:45:06.720 someone the neighborhood of like 75 to 100,000 here. So for right now, you're like, I would really 434 00:45:06.720 --> 00:45:11.280 like this thing to just be an asset that makes me money. Until you can get to that point, it's not 435 00:45:11.280 --> 00:45:17.040 in the cards. Because somebody who really can run the business is going to make 75 grand to 100 grand 436 00:45:17.680 --> 00:45:26.000 today to do it. And so you need to get everything so dialed that they can make that and you make money. 437 00:45:26.560 --> 00:45:31.600 That's how it has to work. So I'm just telling you guys right now, because the amount of you seen 438 00:45:31.600 --> 00:45:37.760 this one too, my gym's making money. I just signed a lease to my second location, even though I was 439 00:45:37.760 --> 00:45:44.160 literally not profitable four months before gym launch. Santana seen it. You seen it a lot of times. 440 00:45:44.160 --> 00:45:53.360 A lot of times. Don't be that gym owner. Get it so that you are bored out of your mind for months 441 00:45:53.360 --> 00:45:59.600 on end. And you keep hitting KPI. You keep growing. You keep becoming more profitable. If you can't 442 00:45:59.600 --> 00:46:06.400 leave the business for six months and it still grow, you're not ready. The business model isn't ready. 443 00:46:06.400 --> 00:46:10.880 Now some of you are like, man, that's a really high bar. Welcome to growing the legitimate business. 444 00:46:13.040 --> 00:46:22.640 So what it is. So we have five minutes left. I want to make sure that the sticky note that you 445 00:46:22.640 --> 00:46:35.600 actually do when you get home has the right stuff on it. Okay. So who here after hearing this is 446 00:46:35.600 --> 00:46:48.000 like, I'm not advertising enough. Thank you. Who here is going to get rid of all the human stuff 447 00:46:48.000 --> 00:46:55.680 for $1,500 a month so they can do that? Thank you. And who here for the love of God? 448 00:46:57.760 --> 00:47:01.760 Instead of wishing out and pretending like you're making progress and saying that you didn't 449 00:47:01.760 --> 00:47:07.600 communicate when you really know that Susan's never going to make it. And maybe you just have to say, 450 00:47:07.600 --> 00:47:12.400 I'm not good enough of a manager. You just say, I'm not good enough of a manager. You're amazing. 451 00:47:12.480 --> 00:47:16.160 I suck. Either way, it's not working because I can't fire me. I still got to be here. 452 00:47:20.880 --> 00:47:29.600 Sorry. Fulcret, that's a layliquid. For the love of God, get rid of Susan. 453 00:47:30.720 --> 00:47:35.040 And I'll give you a belief that I have about talent, which is that you absolutely 454 00:47:35.760 --> 00:47:42.560 can train anyone to do anything. I believe that in my core. The question is whether it's worth it. 455 00:47:44.800 --> 00:47:49.920 Like, I think everybody here could be a neurosurgeon if given enough time. It's just that who's 456 00:47:49.920 --> 00:47:57.360 going to pay for that? And some of you would take a while. I go wild. I've seen some of your hands, 457 00:47:57.360 --> 00:48:03.680 man, some fucking sausage. I don't know, brain. You could do it eventually. But the question is 458 00:48:03.680 --> 00:48:07.840 whether you want to be the one to incur the cost. Because fundamentally, all business is, 459 00:48:07.840 --> 00:48:12.000 is reallocation of resources. You have time. You've got money and you've got energy, 460 00:48:12.000 --> 00:48:15.280 and you put it in, and the people will get the best returns on it, make the most money. 461 00:48:16.960 --> 00:48:21.920 And so when you're spending all this time on Susan, you could just take a seven and make a 462 00:48:21.920 --> 00:48:29.520 10. And it would take you less time. You literally get a better employee to be better even faster 463 00:48:31.440 --> 00:48:37.520 instead of riding this ride you keep having with Susan over and over again. Does everyone know 464 00:48:37.520 --> 00:48:43.760 who their Susan is in their mind right now? So number three on the sticky note, will you please 465 00:48:43.760 --> 00:48:50.720 for the love of God get rid of Susan? Actually, you got to get hands. All right, please remember if you 466 00:48:50.720 --> 00:49:00.720 raised your hand and 30 days from now, Susan's still here. I just need you to write on your mirror. 467 00:49:08.960 --> 00:49:13.280 And just accept the fact that you can't have hard conversations and you will never guard your business. 468 00:49:13.760 --> 00:49:21.280 You're in a service business. Service business are people. It's culture and training. All of those 469 00:49:21.280 --> 00:49:27.200 are interacting with others. If you cannot have a hard conversation, which I define a hard conversation, 470 00:49:27.200 --> 00:49:30.800 something, it's easy to have a hard conversation with someone you hate. Because you're like, I've 471 00:49:30.800 --> 00:49:36.480 been waiting for this. I hate this guy. Yeah, Todd, you know when you're taking all those pictures, 472 00:49:36.480 --> 00:49:41.840 are you sure listening to the bathroom? Yeah, customers didn't like it. But I've been such a good, 473 00:49:41.840 --> 00:49:46.240 yeah, I got to go. Sorry, I've been totally believe you. I think you're amazing. Be awesome. 474 00:49:46.240 --> 00:49:52.880 And you're like, I hope that guy never calls me again. Easy if you hate the guy. Hard if you like 475 00:49:52.880 --> 00:49:57.920 the person. But like, this is what being a grownup is. It's like you got to be able to have these 476 00:49:57.920 --> 00:50:03.520 hard conversations. You got to be able to say, it's not working out. And so many of you have personal 477 00:50:03.520 --> 00:50:08.320 issues. I know this because I've spent days and days and days and days with deep dives in the 478 00:50:08.320 --> 00:50:14.240 business. And honestly, you don't need a deep dive in the business. What you're not doing is 479 00:50:14.240 --> 00:50:19.600 obvious. And so I put all my effort on why you're not doing it, which is that your time is getting 480 00:50:19.600 --> 00:50:25.040 stuck up with human stuff and your attention is getting drained by girls like Susan and guys like Todd. 481 00:50:26.800 --> 00:50:29.680 Cool. All right. Thank you guys so much.