Summary

• Your business isn’t growing because not enough people know you exist. Focus on advertising to increase awareness.
• There are four methods to get customers: ads, outreach, content creation, and referrals. Track what works best for you and do more of it.
• If content is your primary method, know it’s usually not effective for local businesses to rely solely on it. Use content to convert potential customers rather than to find them.
• For paid ads, spend at least 4 hours each day on creating and refining your ads. Look at successful ads for inspiration and constantly improve your skills through practice.
• Commit a specific dollar amount to daily ads. Treat this expense as non-negotiable if you want the business to grow.
• A brand is built on what you say, what others say, and the actual customer experience. Excellent service reinforces your brand.
• Many business owners think their service is exceptional, but if it were, they’d have more customers. Honestly assess and improve your service.
• Efficient conversion involves improving scheduling, show rates, and closing rates. Whichever is lacking, focus on improving that area.
• Employ the rule of 100 – consistently reach out to 100 people or do 100 outreach activities daily to maintain lead flow.
• Price appropriately. If your gym is full but you’re not making money, you are undercharging. Be willing to increase prices.
• Maintain a customer-focused onboarding process to reduce churn and increase long-term customer value.
• Spend 96 hours a month on activities that grow your business by outsourcing tasks like cooking, cleaning, and laundry for $1,500 a month.
• Spend half the day working on tomorrow’s job and the other half on today's tasks. This approach allows you to move faster.
• Bad employees are costly and detrimental. Fire underperforming staff like “Susan” to save time and resources.
• Excellent employees are worth the investment. They set the standard and attract more good talent.
• Raise your standards. Higher standards lead to better teams, making business easier.
• Reallocate resources wisely, choosing to invest in employees that offer the best returns on your time and money.
• You can improve your team by focusing on making good employees great rather than trying to bring poor employees up to average.
• If you find yourself overburdened with tasks or staff issues, reassess priorities, and focus on high-impact activities that grow the business.
• Equip yourself and your team with the skills and practices needed to continuously improve and drive success.

Video

How To Take Action

Action Plan for Small Businesses and Entrepreneurs

Increase Awareness

1. Advertise Effectively: Start with low-cost advertising to let more people know about your business. Spend 4 hours daily creating and refining your ads. Look at successful ads for inspiration and keep improving your skills.

2. Track Methods: Measure the success of your advertising, outreach, content creation, and referrals. Do more of what works best. Track activities like posts or outreach efforts and measure their effectiveness in getting customers.

Content and Outreach

1. Purpose of Content: Use content to convert potential customers rather than solely to attract them. Make sure your online presence is alive with at least one weekly post to show you’re active and credible.

2. Outreach Consistency: Follow the rule of 100 – reach out to 100 people daily or achieve 100 outreach activities. This keeps your pipeline filled with potential leads.

Efficient Conversion

1. Focus on Key Metrics: Improve your scheduling, show-up rates, and closing rates. Spend your first 4 hours daily addressing whichever area is weakest.

2. Pricing Strategy: Evaluate your pricing. If your business is full but not profitable, consider increasing your prices. Ensure you charge enough to secure a profit margin.

Customer Onboarding and Retention

1. Strong Onboarding: Spend extra effort in the initial 24-72 hours to make new customers feel welcomed and informed. Over-communication at the start can significantly reduce churn.

2. Regular Check-Ins: Maintain customer follow-ups bi-weekly to show that you care and ensure they’re satisfied. Track attendance and address drop-offs promptly.

Improving Efficiency

1. Reallocate Time: Outsource tasks like cooking, cleaning, and laundry for $1,500 a month to free up 96 hours. Use this time to focus on activities that grow your business.

2. Focus on Tomorrow: Spend half your day working on tasks for the next day's growth and half on today’s tasks. This maximizes your efficiency and long-term growth.

Team Management

1. Raise Standards: Fire underperforming staff (like Susan) who drain resources and lower your standards. Hire people who meet higher standards to attract and keep top talent.

2. Invest in Excellent Employees: Focus on making good employees great rather than elevating poor performers. High standards make your business run smoothly and grow faster.

Continuous Improvement

1. Skill Development: Equip yourself and your team with practices that continuously improve your business operations and sales techniques.

2. Data-Driven Decisions: Always use data to drive decisions. Understand the cost per customer acquisition and tailor your outreach efforts accordingly to ensure profitability.

Implement these strategies to effectively grow your business with minimal cost and high value, focusing on increasing awareness, improving conversion rates, and maintaining high operational standards.

Quotes by Alex Hormozi#### "People have to know you exist"

• Alex Hormozi

"If your business is struggling or you're struggling to grow your business, then it means not enough people know that you exist"

• Alex Hormozi

"For most small businesses, if you're under $100,000 a month, you just need to let people know that you exist"

• Alex Hormozi

"You can spend all the time in the world trying to imagine how good your customer success is going to be until you have customers, and then you learn"

• Alex Hormozi

"Get rid of all the people who suck"

• Alex Hormozi

Full Transcript

why your business isn't growing and so we have our inputs we have efficiencies and we have an output and so this output most of the time for a business is money right the issue that I continue to see is that people aren't clear on what the inputs are and so taken to this extreme I could say okay if no one knows that your gym exists will you make money no so we have to get people to know that you exist all right step one people have to know you exist and so right now part of some of your problems is that not enough people know that you exist and so what do we do to increase how many people know that we exist we get traffic or we advertise now if advertising is the thing that we're going to do to get more people to know about our stuff what is the primary method of advertising that you have right now now for those guys who who hear red leads by the way the book oh neat thank you appreciate it um so you can reach out to people that you know or don't know you can make content you can run ads or realistically you can get an affiliate partner who does those things for you but for everyone here so we can make this interactive who here only uses ads to get customers or primarily uses ads to get customers okay so that looks like about a quarter quarter to a third okay who here uses Outreach to get customers primarily oh less okay like 10% okay who uses making content to get customers interesting that was higher than I expected who here has referral Partners who refer you business on a regular basis and that's the primary way you get customers okay not a ton okay so the reason this is so important is that if your business is struggling or you're you're struggling to grow your business then it means that if the first step in the ch for you making money is that people find out about the stuff a lot of you guys aren't letting people know and you haven't boiled it down to the inputs so I'm going to come back to this page if we have content as your primary way of getting customers if we have paid ads if we have Outreach and if we have referrals or referral partners then we have to book R this down to the activities that we need to do in order to do more of it right so you're like okay I make content so then the question is how much are you making and how good is it now I personally believe that for local businesses the purpose of content is not to get customers it is to convert a higher percentage of customers because most of the algorithms on these platform are Global and so if you make content and you're in Idaho and the vast majority of people who see your content are not in Idaho or not even in a f mile radius who cares unless you want to go on the online thing which is a totally different game and so I see the purpose of making content as a local business owner as something that when you do reach out or if someone does get referred to you or you do run an ad people click over to your page and they see if you're legit or if you look friendly you look nice they look at the equipment they look at the facility say oh this place looks cool oh it's right by where I live or it's right on my way to work and then they make a decision to move forward so if you're currently making zero content super Light Lift make some like one a week so you just look like you have a heartbeat online really high Roi for like one piece a week Beyond going above that then you get into the I want to make content as my primary marketing mechanism and now you're driving volume and quality through that so this then if content is your primary way which I'm still amazed by for those of you uh who that's what you do is that you want to start thinking how do I make and for context we make about 400 pieces of content a week we posted it's a lot and so you're like wait a sec you're like doing the math you're like that's 55 pieces a day it's a lot it's more than two an hour so a lot and so that is a baseline let's start with like two a day something that you can do and the reason I want to boil this down this way is that if you're like I can't grow my gym I can't grow my business and the thing that grows my business is that I make content then do a shitload more of that I know crazy it's what I'm known for the very deep insights all right so so paid ads which was I think the largest percentage of you here still a minority which half frightens me for you but we'll keep going paid ads the thing that you do when you run paid ads is that you're spending money every day so the actual platform does the distribution of the content for you does the distribution of the offer for you so that you can generate leads but the work of making paid ads that you do every day is in the creative it's in scripting out the ads thinking through the hooks doing research on other ads that are working in the weight loss space and thinking okay how can I emulate that part of that might be I have to learn how to use one of those phone editing softwares yeah that's that's the job that's work that's how it works and so for each of these activities I'll give you my rule of thumb which is that it's 4 hours a day and some of you are going to be like gulp 4 hours a day yeah you're trying to grow right like I I I don't we'll get to this in the second half of this this talk but if this is the input into the system that makes everything go Burr then this is the thing that makes you money and everything that you're doing that's not this is not making you as much money as doing more of this and for most small businesses if you're under $100,000 a month you just need to let people know that you exist and some of you guys are concerned about your Brands and things like that the brand is 100% going to be delivered based on the quality of the product quality of the service that you give so let going give you a quick little little hack here and then we'll come back to this so brand can only be built in three ways one is what you say the second is what other people say and the third is what people experience themselves and so what ends up happening is in the beginning you have no customers in the beginning it was dark right so you say stuff you say hey my stuff's awesome look it's clean it's stuff it's it's in the neighborhood that you like it's safe whatever you won't get hurt here you'll look nice and skinny you want to be skinny look at me I'm skinny too you could be like me so you say these things great then somebody will buy and then if they have good things to say they leave you reviews and then the person who's considering buying is like okay well I like what they were saying and other people seem to be saying nice stuff so then maybe I will buy but then as soon as they do buy they actually have an experience personally so here these two things are approximations these two things are advertising this is product because somebody can come out with the coolest most premium sweetest looking brand in the world but if you buy the shirt and it has holes in it not the holes that are cool just holes it's going to suck and you be like these guys are full of it if you go to if you wait in line forever for this Swanky new restaurant because they say they were really cool and expensive and other people say they were really cool and expensive and then you go there and you're like this is not cool and just expensive you're like I hate this place and so immediately there's a promise that you're making here and then you deliver it here and if you deliver based on the promise you make that reinforces the brand and then these people become these people and they say nice [ __ ] and that is how you build a brand in a local business that's it it's all about the delivery and the reality is the vast majority I'll say the average person here is mediocre was waiting for that to hit but maybe it didn't anyways half of you are below average I know um but the real real is like everybody here most people would say no our gym like the amount of times that I heard my Gym's amazing if people just came in to experience it I'd be like do you have customers and they're like yeah I'm like and they're not getting any more customers it's not amazing you're not that good Comm and that's okay but the problem is when you think you are good and then don't put any attention to it because you delude yourself into thinking that you're so good that no one talks about your [ __ ] I'm so good people just want to keep me a secret sure it's like I love you so much baby I just can't bring you in public okay so back to advertising all right so you're making two pieces of content today if that's what you're doing if you're doing runand paid ads you want to commit to a certain dollar amount per day and I can't impress this upon you enough is that like you spend this money before you eat like this is how your business eats this is not this is not feeding your child if you don't spend this money because this is how you distribute your message this how people find out about your stuff this is the input into the system that goes burn and makes money so you spend the money and then your four hours for this is about how to make ads and that's the skill if you do that every day guess what you'll get way better at making ads and so I'll give you a little hack that I do one whenever I see an ad of any kind so one I'm not premium on anything I want to see the ads if I like an ad I save it I screenshot it and I have an album that's all the ads that I like then when I go to start making ads which if it's you you're going to be doing this every day I go back I review my all-time greatest ads and I like to drink them in so I'm like okay these are the words that I were saying these are the hooks these are the settings that I was using okay these are the pain points I brought up and then I look at the new ads that I've seen that week that I thought were kind of interesting and I say okay what elements from this can I merge with the stuff that I already know to create something that's kind of new and so then I make a whole bunch of those and I take my winning ads and I just make them again like same words same I just do it again and then I run them and I see how they're doing and if I want to learn an effect I Google how to put this effect on a video and then we put the effect on the video and then the ad starts performing or does it and guess what you do tomorrow you do it a [ __ ] again and like I have had a lot of conversations with gym owners in my life and I'm not going to get to the second part of this talk because otherwise I'm I'm going to I'll get more offensive so I'm going to wait I'll I'll complete this thought process so okay please please spend money on ads please so that people can find out about your gym and if your stuff sucks then how are you going to get better besides kind of like bringing people in so that you can learn that you suck and then getting practice so that you can get better because you can spend all the time in the world trying to imagine how good your customer success you know is going to be until you have like 20 new members and you're like oh my God everything's broken I don't have any process for anything and like I suck and my trainer was late and wow what a terrible experience but you can't have that learning until they walk in the door so you're running paid ads if you're doing Outreach which was like 10% of you guys I'm going to say it again but the rule of 100 it just it just works it's consistent as gravity it works problem is most people don't work and so that's why they don't make money they like to think about working and they like to come up with excuses for other things that became quote urgent that never are in a gym there's basically no emergency I had I remember I got a call at like 4:30 in the morning when there was a water man that broke pouring over my floor and my trainer called me and he was like hey we have an emergency he said that and I immediately assumed someone's dead I was like heart attack someone's on the floor and if that's the case why are you calling me call [ __ ] 911 but he was so he said that and he's like are you ready and I was like yes just tell me he was like it's a water man I like well what are you calling me for I'm not a plumber I was like call a plumber and I could have slept a couple hours I wasn't going to change anything what do you want me to do what do you think you should do work out outside great idea do that why are you calling me there's no emergencies like unless you're in healthcare and you're in shock trauma there are no emergencies and so I say this to underline one point which is that many of you become distracted by things that you perceive to be emergencies but the real emergency is that you're not doing the [ __ ] you need to do to grow your business [Applause] thanks with the music there you go it's a real bar okay so last one's referral um and I'm going to say when I say referral here I mean a referral partner meaning you have a chiropractor you have a doctor that you helped out and they have a huge practice and they start sending you and you create some sort of relationship that you still do these things to attract this person and if you're like man if I only I've got this one guy and he sends me like half my customers well how amazing would it be if you had 10 of those guys or 20 of those guys well you know how you do that you ask them you reach out to them you give them gifts you bribe them really that's how it works and you know you bribe another business owner you send them business if you want someone to send you business send the business first little rule of life it works a lot better that way okay so we have our inputs and our outputs in the system right so it starts with advertising and for the vast majority of you guys you were not advertising enough that's it who here spends 4 hours a day 6 days a week advertising doing one of those four things does your gym make money Havey yeah it's like I don't have a gym but yes I make money it's like what are you doing here it's called gimc con all right I promise you if you spend four like four hours a day is not much like four hours a day I don't know like what do you doing why your business isn't growing you're not trying to grow it all right cool well I mean we could just stop there none of you are even doing it all right well let's talk about efficiency while we're at it it doesn't matter because you're not putting anything in the system anyways but let's talk about it so fundamentally I'm being dead serious like it does if I were to spend a full day with each of you I'd be like oh okay well what are we going to do with the rest of our eight you know 7 hours and 40 minutes that we have for this day because that's the problem but okay let's talk about efficiency so fundamentally you got to let people know fantastic now they know you got to get them to give you money which is going to be the conversion process all right cool conversion is going to be the next step in this efficiency I'll give you I'll give you a little spoiler the next ones then you've got your price and then you've got your turn and I'm saying this specific to Jims because it's recurring business okay so if we think about what a business is you get more customers or you make them worth more it is the only way that you will make more money fundamentally that is it there's no other way get more customers make them worth more if we double click into each of these getting more customers means you need more traffic and better conversion and so if right now you're not getting enough customers it means you need more traffic or better conversion if you need to make your customers worth more the only thing you can do to make them worth more is you raise your prices you decrease churn that's what you have control over and so if you're like okay how do I make my customers worth more raise your prices get them to buy more times that's what turn decreasing turn is get them to buy for 10 months rather than five months or three months and so the idea here is that once we feed the machine this is the raw input this is eyeballs this is the activities that you do that get people to find out then it's about how many of these things can we turn into money and how much money can we turn it into and so the most efficient gyms are ones that convert a very high percentage at a very high price and get people to buy lots of times and so this is from a contraints perspective of figuring out what's wrong with your gym and for everybody who didn't raise their hand which is literally everyone here it's this but we'll talk about the other three is that you have steps within this conversion process you have to get them to schedule you have to get them to show and you've got a close so who here sucks at sales get a hand some of you suck at sales that's fine it's helpful to actually it's like the first step is being like hi my name is Sarah and I can't close a door uh so it's okay and so if you want to get better at sales if that's the problem you're getting leads in the door but you can't close then you practice closing and you do that for 4 hours a day and so there's probably a meta takeaway here which is that whatever the big problem in my business is that's what my first 4 hours every day are spent doing until I solve that problem and then I change what that four hours is spent on but that four hours that I spend in the morning before everyone gets there or if you're a late night person the last hours of the day when everyone's asleep that is what moves the business forward the vast majority of people skip those 4 hours and go straight to firefighting all day but the thing is is that if you look back on last month or 2 months or 3 months back the only thing that you really will have to show for progress is what you did in those 4 hours it's something that it took me a little bit of time to realize I was like oh if I don't do it in that four hours nothing big moves forward but what I can promise is that I don't remember any of the fires that I put out last month the fires are going to happen and they will get put out you'll also find that if you ignore them they tend to also go away real talk and so so and so if you're having a conversion issue from sales you practice sales the way you practice sales is you roleplay you do it with somebody else play with a friend that's how it works and you want fast feedback loops you need to be able to breathe the script and the secret to making sure that you don't sound dumb in the sale is you make them sound dumb in the sale and you do that by asking questions so no one can oppose you this is a little Pro tip no one can oppose you if you make no statements so whoever answers questions in the sale is the one who's losing and so you can even address this with every single obstacle that you ever come in contact with well what certifications do you guys have here which one's you looking for they don't know this is a question their friend told them to ask they have no idea and then they're like uh you know what are the workouts like well what's your dream workout they tell you and you're like well it's not that if I really want i' be like well how's that working for you well I don't do them okay that's why you're here cool well then want don't you do our workouts so the thing is is you there's always a way to sidestep objections by just asking what they're trying to get out of the question that they're asking you and most of the time they have no idea because you should know the answer of their question better than they do because you've had this conversation before imagine having the same conversation over and over again and sucking at that one conversation mindblowing it's also like not advertising your [ __ ] business anyways so you've got show rates you've got uh schedule rates and you've got close rates so that's our conversion efficiency and so whichever one of these is below Benchmark is the one that you spend your hours on I'll also promise you that schedule rate and show rate if you actually spend four hours a day on it will not be a problem at all but everyone just wants this to just go away magically and wants everyone just like show up ready to close like my leads suck All Leads suck until they become customers and they're amazing right but then like the process of taking a lead and making it to a customer is work and everyone's afraid of doing that and if you're looking to make your first dollar online or monetize your audience no matter what the size is school.com games is the easiest way that I know how to do it I take a call once a week inside of that community to answer questions for people who are getting started I have a step-by-step course that lays out what exactly to do to make your first dollar online and once a month I drop 8 hours of training from the top 10 community business owners showing exactly what they're doing to scale their communities today school.com SuperGames you can start for free and so now we get into LTV so you advertise more you work on these things for conversion to increase the conversion rate you have in the business and then you've got price insurance now kale I'm sure talked about pricing at some point yes okay you're probably price too low and it's not because we want to destroy your gym you're price too low because at that price you will not make a profit the amount of times that I had gym owners who were like my Gym's fool and I'm not making money and I was like do you see a problem like you can't service any more customers but you don't make any money get one I'm going with this like something has to change and if you're already full we just need to increase the price you're mispriced and that's okay like that's how you learn but for many of you you just need to send an email and send a letter and let people know that from this point going forward this is the new price grab your your big boy and big girl pants and say like I'm going to take this risk because the other way is guaranteed to never work that's the thing it's like we want to stay in the same boat and be like you know what even though all the math makes sense with this higher price I'm afraid and I'm going to let that stop me forever from getting the business to be where it needs to be that sucks so don't think that make the BET and then deliver like that actually is your price and do a really good job on the back end and the way that you do a good job which gym launch has already given you but you have exit interviews with people on the way out the door you can save half of them by saying oh you're right I didn't give you enough support you should go into this higher thing that's what actually gives you the support you save half your customers awesome you reach out to them every two weeks or so as though you actually cared about them that was a joke but um no one laughed at that one anyways so so you reach out to them every couple weeks and you just make sure it's a touch base it's a pulse check you don't even need to talk about fitnesses just to make sure that they know that you know that they exist you track attendance when someone says that they're actually going to show up for a time you make sure they show up and if they don't show up you say hey Marley where were you I missed you we actually track this and we could watch people go from three times a week three times a week two times a week one time a week cancel you can just watch it if you track attendance but if you implement that you go three times a week three times a week two times a week Marley get your ass in here three times a week three times a week and she keeps going they have to know that they're missed the next one and this is something that happened later in my life that I learned is about onboarding so when somebody comes in the door and you do sell them the next 24 hours are absolutely crucial to making setting all the expectations of what their experience is going to be and so right now if your onboarding process is show up on Monday tough very hard and so if there's ever a time where you invest more resources into a customer it's in that first 24 48 72 hours so that they know exactly where they're going to go at what time who's going to talk to them who reconfirms they're showing up because they're petrified because they haven't worked out in six years and they feel terrible and they used to be a high school weight and they can't look at the skill now because it makes them feel terrible whatever right and we have to deal with this by overc communicating in the window of time that makes the most sense and so even if it feels like it takes a little bit more effort I promise you you will get two three five more purchases from this person in terms of months by just making sure that know when they're supposed to be there who's going to be there to welcome them and who's going to show them around a little bit in the beginning so that they don't feel like they're completely lost okay that's churn fantastic so right now if your business is not growing as much as you want you're are not advertising enough if you're advertising enough and people are finding out about it you're getting leads they're either not scheduling not showing or not closing if it's one of those three then all of your effort in that first 4 hours of the day is to get into a schedule get a show getting to close if you're getting all of that stuff you've got lots of people and you're closing them all but you're not making any money you're mispriced and if you're getting all of this and you have a high price but everyone falls out the back door you have to make your stuff better and this is how you walk through it this is how you figure out what the problem in the business is and so who here has capacity in their gym right now okay start there so that is part one of my talk everyone feel good about that okay thank you so part two of The Talk is reverse engineering your goal and so the reason that I broke down the activities that you need to do into those four things is because we have to figure out how many custo or how many activities equals one customer so if you know that on average you post let's say 30 times a month so you post 30 times a month and from those 30 posts that you make you get five customers which for most of you is not the case because you're local businesses and this doesn't work that way but since that's what 20% of you are doing we'll talk as though that's what happens so if you make 30 posts you get five customers you can say for every six posts I get one customer okay so I need to make more posts and I need better posts and if you're like okay I want to get to 25 customers is my goal this is the goal then I need to 25x this so I make 50 which means I need to do five a day okay this is something I can control is this making sense this is literally what I do with the businesses that we buy I just say I just boil everything down to like what do we do that makes us money not all the stuff after that what do we do that makes us money and they're like okay we have an outbound team I'm like okay so what are the outbound activities it's like well we haven't tracked it well yet well start so let's say you do 100 reach outs and that creates One customer okay and currently you're getting 10 customers currently fantastic and so that me you're doing a th000 per month which means you're doing 30 per day okay well if I want to get to 50 customers a month then I need to 5x this to get to 150 per day and then that gets me my 50 customers and what's interesting is that when you do actually increase the volume that much you also get better so you actually get leverage on the time because your skill improves if you do 100 shots a day for a while you get pretty good at it but when you start in the beginning and you do 10 a day you just tend to keep sucking because you never do enough to turn the corner to get enough reps in so let me ask you a different question maybe drive this home has anyone had a day where you had like or like maybe a week where you had a lot of sales you had two three four appointments a day for like a week we straight can I get a hand okay did you feel like you were way hotter like when you were selling you're like okay cuz you get these fast feedback peeps you're like all right I got another one and another one in an hour and then you like practice again oh and so like you're sharpening the sword on the flip side you have a dead week and you have like two sales consults it's like you got to like like d like brush the rust off right like the amount that you work the amount of volume you do will directly feed into how good you are at it and that's why the rich keep getting richer is that they do more and by doing more they get more from their more they get better too and so that's how skills start compounding and that's how you can just blow everyone away like the idea that any single person here gives a [ __ ] what the guy down the street is doing baffles me it just doesn't matter at all because that guy is like everyone else here and not even avertising and he's mispriced and he's breaking even even though his classes are they're people running outside looking crazy he still doesn't take any money home you know I know cuz I've looked at so many gym owner pnls no one makes money except for the guys who track their stuff know their inputs actually advertise work their leads price appropriately and remind customers to actually use the [Music] gym it's just that the bar for winning is not that high and so I I was going to wait to make this like the last part of the presentation but I'm gonna end up going here so whatever I I don't I don't understand why you don't do this because like everything you want is on the other side of you getting the business that works that generates a profit that keeps your customers happy that provides for your team like everything that you want is on the other side of that and you're like you're like on Facebook and I I I just I don't I don't get it like it I just I don't get it it's beyond me and so and this is the part that I said was similar between companies of the size so I'm going to give you hopefully the highest Roi hack that you will only be able to do at this level under 150,000 a month you'll never be able to get this again it will only happen at this stage and so when I think about conferences and workshops and things that I've attended you all have a lot of notes you have a lot of stuff written down that you're like I need to do all seven pages of these notes but we'll be real you'll fly back you'll put the notes somewhere or that Google doc will start moving down in the recency thing and then you'll be like oh wait what would I what was I going to do and so realistically you have like a sticky note that has like three things on it that you're actually going to do everything else really great ideas might not be what you need right now because every business only has one constraint and until you DEC constraint it it will stay stuck and then when you do that it will grow until its next constraint and that's how business works and so I want to make sure that the three things on that sticky note are the right three things that will make you the most most money so what if I told you that there were a way that you could get so who right now imagine your best employee who hear has employees just to make sure I've got okay thank God okay so imagine the best employee you have if you could have twice that would you make more money would you be willing to pay $1,500 a month this isn't going where you think it $1,500 a month to get that employee a double a clone if you will of that employee would you do it all right so the average American spends 20 I think it's 20 my numbers are going to be close 24 hours per month on food food as in going to the grocery grocery store prepping cooking cleaning up after yourself consuming the food and cleaning up after the dishes that you made all of that 24 hours a month the average American also so this is food for cleaning cleaning their homes spends oh you know what it might be per week I can't remember I'll just say the three letter and I don't remember the stats but for cleaning it's like 20 hours per month that people spend and then laundry is like 19 or something all of these on a monthly basis add up to 96 hours which is what I actually remember between all the time you spend on food all the time you spend cleaning all the time you spend doing laundry all the time you spend doing human stuff like things for you're human this body bag you got to walk around in right really annoying no one can do like no one can go to the man if I could if I could delegate like going to the bathroom and showering like dear God it'd be awesome there's a point to this you can get 96 hours a month back by paying 1,500 bucks a month to get someone to make all your food for you clean your house and do your laundry and and hold on hold on and you would do this for the most valuable person in your business who's not your employee it's you you're happy to do it for them but you don't do it for you because you don't want to waste money but you would literally do it for a teammate who's not as good as you and I'm making a bet here because they don't own the business and they're probably not as skilled as you are because you probably taught them half the stuff they know and you're not doing it and so I want to break this like if I can if I can get every single person here 96 hours a month it's almost it's more than two full work weeks and the difference is like I I don't get into like stop watching Netflix and television and all that stuff because that's another 100 hours but you guys like that stuff and you're not going to stop so who cares I'm not even get into it you are whatever but no one likes this now if you like cooking fine that's Leisure but like prepping your food preing other people's food going grocery shopping no one's like man I just love grocery Sho well some of you do you're [ __ ] weird but but but it's not worth it and so right now I'm lading up to this the 4 hours a day that no one here is spending to actually grow their company I just found it and for $1,500 a month and I said you can only do this once I can only Outsource my food one time in my career after that I don't get the gain again you're at a point where you have to start valuing your time and being willing to trade dollars for time like if you had to hire somebody for two grand a month you're like oh wow what a steal but I'm asking you to hire yourself for another 96 hours a month by getting rid of all this stuff on your plate that's not making you money and so when I go when I go back to this idea of the stuff that grows your business is really straightforward and so I was racking my brain I was like why don't people do this and maybe you're tired maybe you're distracted well when I had these meetings where I talked to these smaller you know with the business owners that are between 10 and 150,000 a month this is what they're telling me they're spending their time on and it don't stop and I promise you if you spend 96 hours a month on the constraint of your business it will grow a lot and then every you'll be here and everyone's like what what was your secret like Alex told me I should stop cooking my own food and then I started working my leads and we made more money if you can make more than $15 an hour actively working because that's what 1,500 bucks divided by 96 is roughly then it's worth it now if you do that and then you do nothing with the extra 96 hours then shame on you deserve to be poor so please do that it's on the sticky on the on the sticky note for the day is that maybe sticky Point number one spend four hours a day on the constraint of my business sticky note number two make sure that I actually get those four hours a day in by paying for all the things that are not that and so once you're really clear on the things that you actually have to do from an activity perspective the rest becomes eliminated and so right now a lot of you guys have a lot of things on your to-do list right I'm sure especially leaving here like oh my God I have all the stuff I have to do but I would encourage you to focus on your toone list like really really I I get a lot of I get a lot of credit for the speed that we moved in business and I would I would put a disproportionate amount of effort or wait on the fact that I we just try not to spend time doing stuff that doesn't matter and trying to not spend time wasting mental energy on things that I can buy to replace and so like when I was a single guy I get made fun of on Tik Tok now for it but like I just went to Chipotle for all my meals I never bought groceries because it didn't make any sense CU I was like well if I close a sale that's $500 and that's all my Chipotle for like 2 weeks and then I can not worry about food at all and then the next hour I can close another $500 and be like well that's that's my cleaning for the month and then the next hour right see what I'm saying here but if if you if you think small you stay small like you got to be willing to take the BET and if there's ever been somebody to reinvest your time into getting more skills why on Earth would you not do it for [Music] you all right [Music] all right okay so I'm going to do two more okay I'm good so I got I'm going to do two more two more quick topics so one of the things that I pred myself on was buying education buying experiences buying help to move faster and anyone here have a client that you're like they're just an amazing client I could have just said like run that way and eat less and they would have just succeeded like hands if you had that client I love that client they leave the best testimonials they're the great before and after pictures on the other hand who here's had Susan you already know Susan we all know Susan right Susan has a slow metabolism all right she has very bad genetics and uh big boned is you know everyone in her family is and uh you know she's been to a couple doctors they gave her some medications and nothing's worked and you know when you start she's already blamed nine people for the fact that she cannot control this being real how do you think you get fat this just this this one activity that's it and she's blamed every other person on Earth for the fact that she can't stop doing it some of you guys guys are Susan with your business you're not this person who can go watch a YouTube video and immediately execute everything and be an amazing client you're Susan you're saying my market sucks my leads are bad like this the price change didn't work for me my turns High because people don't value my product duh and so it's just this loser Vic wanting to buy things only to prove that it won't work for you so that you can be self-affirmed in the fact that it's not your fault it's ridiculous it's Susan you're a Susan Susan Sucks and the thing is is like I if like even one of you is like you know what I do kind of do that my goal of every time I get into anything that's education based has always been to not be a success story but to be the number one person they have ever had and to be real I was like because it's about me not you I will win I don't care if they're a mediocre teacher I'll still learn it and I'll still out execute them and I'll get better than they are at their own thing so that people start asking me to teach them and that's more or less happened in my life but the idea that you can have like there's no there's no savior gym launch is not your savior we're not going to save anybody we'll tell you the stuff that you need to do and if you actually do it you'll win but the if you actually do it is the part that most people suck at and so I'm trying to give you these hours things of like okay buy buy 96 hours back I'm trying to give you this this stuff of don't go into anything with the idea that you want like if you ever buy something with the intention of proving that it doesn't work shame on you it sucks what a terrible way to live like go into it trying to be the person who gets so good that they that the the business asks you for advice and I don't know where where when something snaps in you but like I've seen it happen there was a gym owner years ago who was a Susan just moaned just moaned it's all I'm moaning just moaning all day about his life and I remember having like hopping on a call or being a little bit rougher than I normally am and he like Snapped out of it and then he became one of the top gyms and then we hired him on same guy same information completely different perspective on how he chose to execute it and so like if you like so many here who hear got into fitness because you like Fitness there's a passion of yours right you need to start learning how to love business because if you treated your business the way you treated your body you'd make a shitload more money and so one of the interesting things about the fitness space is that I see the posts I actually see a lot more of your guys stuff than you guys think where you make these posts about being disciplined right about doing the hard work when no one's looking right that's right Day 72 you know still cranking still out here 4:00 a.m. getting it in but it doesn't make you tough because you like it what makes you tough is doing [ __ ] you don't like and right now you don't work your leads you don't follow up with customers you don't send handwritten cards you don't have member events you don't spend money on ads you don't learn editing software so you can make better ads you don't research what you're going to say in the ad so they're actually good you don't practice your sales script you don't set up your lobby you don't put reviews online you don't ask people for reviews you don't ask people for referrals you don't try and make affiliate Partners but you're tough because you can drink egg whites the only person you fool is you and so I just I just I want everyone here to make a lot of money and I want you guys to have the gyms you want and believe it or not the gym business has not changed you still have to promote it you still have to convert those leads and then when they come in you have to price appropriately so that when you're at capacity you're making a lot of money and you have to do whatever you can to keep people that's not going to change it's just your dedication to the execution of it that will and so I'll I'll bring up a my my second to last Point depending on when they kick me off your team sucks we thought earlier about your favorite employee right now picture your least favorite employee also Susan Susan Sucks so Susan everybody got Susan in their mind that that one person that you're like you know it's our second quarter in a row we've been I think she's going to turn the corner yeah me she's she she can be tough sometimes yeah fire Susan please fire Susan she's not going to turn around she's not going to make her business better what you see is her best behavior her best behavior and the moment you fire her you're going to hear horror stories from all the customers they're going to come up to be like oh my God thank God you fired Susan she was sleeping here once oh my gosh the other day you wouldn't believe what she said to me all of this stuff fire Susan because the other thing that Susan does is she sets the bar for your standards and I can tell you that the one of the biggest things that like if I can identify something in an entrepreneur to know that they're going to win I just look at their team I don't even have to look at them I just because they're the ones doing it and I'll tell you a story Le if I I can tell a PG version of this I'm just going to be real with you [Music] so when I started talking to private Equity groups to consider selling a portion of gym launch so we could reinvest in some of the stuff that you guys will see soon it's dope um I had all these calls with investment bankers and private Equity groups and I remember so starkly the contrast between the quality of the questions that they were asking and how intelligent every single person on their team was compared to my team that I had built and we built you know 50 100 million doll business not bad but they were going to go make an extra three billion and it was this moment where I was like oh there's just more levels it just keeps going Steve Jobs SP the vast majority of his time bringing in talent because fundamentally someone else can run your facility better than you the problem is that you can't get that person to work for you because of who you are because of the people that you allow to be in your vicinity they would walk in they would see the other people and be like oh I don't want to associate with them and they just walk out the other side and so you need to raise your standards and right now I'll bet that the vast majority of the people that work in your business are mediocre and that's why your Gym's mediocre because if we're being real they're the ones that are doing everything they're the ones that are teaching the classes they're the ones not working the leads when you tell them to they're the ones not following the sales script when the person walks in the door they're the one forgetting to write the handwritten cards they're the ones that show up late to the event that they're supposed to be the champions of and invite their people to but they didn't they're the ones that don't wear the uniform the way you ask them to because they want to be special has anyone dealt with any of this stuff yes but you tolerate it and so it's your fault and so the better the higher my standards have become the better my teams have become the easier business has gotten because solving the business problems aren't complicated it's the everything else it's the fact that Susan Still takes up your time the fact that you like when you're in bed at night and you're talking to your spouse and you're like God Susan I just I I want to beli but this is the third time she was late and I'm just third time third what happened after the first one right and we're spending all this time all this bandwidth that you could be spending actually improving the business not and so Susan's cost isn't just the fact that she sucks at her job she also repels anyone who's good she also is bad with customers and she drains the single most important resource from the most valuable employee in the business which is you and so you just have to raise the standards like if I was going to spend a day with each of you I can promise you half the conversation I'd be like okay so when you leave here today you're going to you're going to stop spending 96 hours a month on stuff that you can Outsource for $1,500 you're going to spend the four hours you just gained back actually doing whatever the constraint of the business is so you actually make more money and you're going to get rid of all the people who suck now part of you I can already hear it like but what am I going to do with the bad work that she's going to stop doing right what am I going to do about the work she's not doing that she pretends to do that I pay her for anyways and this is the real talk I'm burning through these pages I would say you can say it with me but we're going to miss time it it'll be really messy so so you can just think it with me double time so this is a concept that I have spent almost my entire life living by which is that I spend half my day working tomorrow's job and the other half of the day working my day job and by thinking about my time this way I can move on double time I can move at twice the speed but that does compound over time and so if you have to take Susan's work over I'll bet you that what took Susan 20 hours that you pay her 40 for you can do in five and because you haven't done it in a while you'll probably realize there's a bunch of systems you probably clean up and then you'll get close to the customers not a bad thing and when you bring that next person in you'll have been fresh on it and you can actually train them how to do it the right way and put a good feedback loop in for when they do it right so one of the big problems with management overall is that it's basically if I don't say anything you're doing great and when you mess up I hammer you what you want to be able to do is give people a cookie when a plane lands on time rather than only when plane crashes happen because it's it's kind of like if you do something for your spouse let's say you wash the dishes because they like that you wash the dishes if you do that three four five times and they never say thanks you're just like either this isn't important or I just don't I don't need to do this and they think the same way about their role so if you just say hey do this thing and you never say it again and you ever tell them a good job when they do it they will do it one time and then stop doing it because you didn't talk about it and then you find out months later that this thing you thought was happening isn't happening and you've been paying them for it the whole time and so I promise you if you think Susan Sucks she probably sucks more than you think she does and she's not doing nearly as much work as you think she is either and the work she is doing also probably not that good so we have our big sticky note number one 4 hours per day on the constraint which for what it sounds like everybody here is you're not advertising enough number two you're going to replace all of the time that you spend doing human stuff you're going to pay someone else to do it for you so I'm going to say replace hours with vendors for human stuff three get rid of Susan but here's the thing I say this we laugh we have a good time you get on the plane you go back and guess what you don't do you don't get rid of Susan so let's let's let's explore this you don't get rid of Susan because you're afraid of the conversation and not the way you think it is not you're afraid of I'm not afraid of Susan yeah I know I know you're not afraid of Susan to some degree you like Susan Susan was there in the beginning you know she she hasn't been always the best but she's been there for you you know and you care about her as a human being and you're like I don't know what Susan's going to be able to do I don't even know if she' be able to get a job after this imagine no one wants to hire Susan and that's what you're afraid of you're like so I'll do it and so you then decide you know I'm just going to have a talking tour with her that's what I'm going to do I'm not going to f i I know Alex said this but I know better so I'm just going to tell her she's missing expectation and it's it's not her fault it's not your fault Susan I like I haven't I haven't been a good communicator and I haven't been clear about it and and it's it's okay this is this is good this is communication this is how we get better right you have this whole talk and Susan keeps sucking we laugh but this is what's going to happen for 90% of you in the room you're not going to do it and so the reason the vast majority of business owners stay mediocre stay small is because they can't make the hard call they can't say I love you Susan I also love every other person who works in this business and all of the customers and so I have to let you go and I still love you as a human being and then you're like wow that felt great geez and then you look you're like oh my God you did this all wrong uh and then you have space to go bring someone else in who's right because the process of building the gym is that you learn all the roles you do them well you train someone else do them and then eventually if you get all those people right you don't have to do anything and you can own the asset and then you can do it again as a side note I haven't seen anybody scale brick and mortar chain service businesses without having an operator that has a profit share I'm just letting you guys know this is what I've seen it's usually 10 to 20% they usually Mak in the neighborhood of like 75 to 100,000 a year so if right now you're like I would really like this thing to just be an asset that makes me money until you can get to that point it's not in the cards because somebody who really can run the business is going to make S you know 75 grand to 100 Grand today to do it and so you need to get everything so dialed that they can make that and you make money that's how it has to work so I'm just telling you guys right now because the amount of you seen this one too my gym is making money I just signed a lease to my second location even though I was literally not profitable for months before gym launch Santana seen it you've seen it a lot of times a lot of times don't be that gym owner get it so that you are bored out of your mind for months on end and you keep hitting kpi you keep growing you keep becoming more profitable if you can't leave the business for 6 months and it still grow you are not ready the business model isn't ready now some of you are like man that's a really high bar welcome to growing a legitimate business it's what it is so we have 5 minutes left I want to make sure that the sticky note that you actually do when you get home has the right stuff on it okay so who here after hearing this is like I'm not advertising enough thank you who here is going to get rid of all the human stuff for $1,500 a month so they can do that thank you and who here for the love of God instead of wussing out and pretending like you're making progress and saying that you didn't communicate when you really know that Susan's never going to make it and maybe you just have to say I'm not good enough of a manager and you just have to say I'm not good enough a manager you're amazing I suck either way it's not working because I can't fire me I still got to be here sorry full credit that's a Lea quote for the love of God get rid of Susan now I'll give you a belief that I have about about Talent which is that you absolutely can train anyone to do anything I believe that in my core the question is whether it's worth it like I think everybody here could be a neurosurgeon if given enough time it's just that who's going to pay for that and some of you would take a while like a while I've seen some of your hands man some [ __ ] sausage like I don't know brain you you do it eventually but the question is whether you want to be the one to incur the cost because fundamentally all business is is reallocation of resources you have time you've got money and you've got energy and you put it in and the people who get the best Returns on it make the most money and so when you're spending all this time on Susan you could just take a seven and make them a 10 and it would take you less time you literally get a better employee to be better even faster instead of riding this ride you keep having with Susan over and over again does everyone know who their Susan is in their mind right now so number three on the sticky note will you please for the love of God get rid of Susan actually can I get hands all right please remember if you raised your hand and 30 days from now Susan's still here I just need you to write on your mirror and just accept the fact that you can't have hard conversations and you will never grow your business you're in a service business service buses are people it's culture and training all of those are interacting with others if you cannot have a hard conversation which I to find a hard conversation some it's easy to have a hard conversation with someone you hate cuz you're like I been waiting for this I hate this guy yeah Todd you know when you're taking all those pictures of you shirtless in the bathroom yeah customers didn't like it but I've been such a good yeah got to go sorry man totally believe you think you're amazing be awesome and you're like I hope that guy ever calls me again easy if you hate the guy hard if you like the person but like this is what being a grown-up is it's like you got to be able to have these hard conversations you got to be able to say it's not working now and so many of you have Personnel issues I know this cuz I spent days and days and days and days with deep Dives in the business and honestly you don't need a deep dive in the business what you're not doing is obvious and so I put all my effort on why you're not doing it which is that your time is getting sucked up with human stuff and your attention's getting drained by girls like Susan and guys like Todd cool all right thank you guys so much