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if you want to make more money you might want to consider doing this so number one is hold that thought for just a
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second because the thing that comes before that is this grow of yours oh God this is the entrepreneur life cycle and
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there are six stages now the vast majority of people get stuck on stage three and I've made some of the biggest career mistakes at this point and you
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end up living the same 6 months for 20 straight years suffering until you learn how to break free from it I want to go
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through the whole thing this is going to be awesome Alex horos is the master of business strategy an autist in tring
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companies into the millions and a leading voice in how to craft your way to success he's an entrepreneurial
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Powerhouse whether you're starting out or want to go from 1 million to 10 million there are certain behaviors and actions that will increase the
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likelihood of success that we're going to go through but here's the really hard truth that a lot of people don't like talking about entrepreneurs must be
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willing to make impossible choices have the courage to be willing to be wrong have Shame by failing at things in front
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of people whose opinions they care about and that fear keeps people stuck in a job and a life they don't want for years
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and that was my path I had a white collar job condo overlooking the city everything's according to plan and I
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remember thinking like I didn't want to be alive cuz I was so afraid but once
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you get over the fear it unleashes this whole new realm of possibility of being able to do what you want and that is
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when you can learn the real game of Entrepreneurship such as knowing that business ideas typically come from one of three piece and you only need one of
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those three and then there's the four RS for customer success how to learn new skills quickly how to stand out in a competitive market the winning strategy
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for 2025 and so much more so where should I start
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I have been forced into a bet with my team we're about to hit 10 million subscribers on YouTube which is our
00:01:37
biggest Milestone ever thanks to all of you and we want to have a massive party for the people that have worked on this show for years behind the scenes so they
00:01:44
said to me Steve for every new subscriber we get in the next 30 days can $1 be given to our celebration fund
00:01:52
for the entire team and I've agreed to the bet so if you want to say thank you to the team behind the scenes at D of here all you've got to do is hit the
00:01:58
Subscribe button actually this is the first time I'm going to tell you not to subscribe because it might end up
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costing me an [Applause]
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[Music]
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awful Alex if someone's just clicked on this conversation and they're considering listening for the next
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couple of hours based on everything that you do for the millions of entrepreneurs that follow you that read your books can
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you tell me exactly why you believe they should stay and listen and who should stay and listen at
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acquisition. we scale businesses the content that I generate that we put out conversations like this
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helps people who are going from Z to one just getting off the ground to helping people go from 1 million to 10 million
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um to helping the entrepreneurs going from 10 to 100 either get there or exit along the way and there are Frameworks
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that cross all three of those that I consider both deep and wide um that help
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any business navigate whatever strategic decision is in front of them to get The Highest Potential return for their time
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and so if you're listening or watching then if one of those Frameworks applies
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immediately to your business and allows you to pull five years forward in your career I would say that's a pretty good
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return on time for the people that are at zero yeah what is it that they're typically coming to you to help them
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with so if you were one of them yeah what is it that they want from Alex hzi
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I think it's um there's what they think they want and what they actually need um
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which are two different things and so I think what they think they want is uh
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some tactic that's going to immediately help them start a business um what they
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typically actually need is um the courage to be willing to be wrong and to
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be willing to have Shame by failing at things in front of people whose opinions
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they care about and I think that's like if I re rewind the clock for me it was
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probably one of the hardest things that I had to get over and so I think that's why maybe my message resonates with a lot of people is because it was so hard
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for me um to get over and what's interesting is basically anybody who's listening the harder it is for you to
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break free of whatever kind of mental prison you've made for yourself whether that's real or just in in your head
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the more compelling your story will be when you break through it um because it will resonate with even more people uh
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for the people that it was easy that their story doesn't have doesn't have a lot like I was immediately an entrepreneur like I wasn't like that I
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had a job when I was in high school I had a job immediately out of college some people were like I was selling lemonade out of the back of my you know
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thing when I was 13 I didn't do any of that like I School failed me I actually was pretty good at school uh I didn't
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have any of those issues you know what I mean and so I had a pretty clear career path and so I had many would consider
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like I had a real opportunity cost so I had a white collar job and I had uh a
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GMAT score above Harvard's mid score and so I had a a really clear path of what my life would could look like in the
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next 20 30 years and it was fairly well defined like I'll go to Harvard or Stanford or one of the top Business
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Schools and then I will either go back into management consulting or I'll go into Investment Banking and then eventually end up in private Equity um
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and that would be the path right and then all the flowers would be set at my feet and you know everyone would say we
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approve of you you're an excellent person but when I saw the people who were 20 years ahead of me I really
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didn't want their life and then it started making me look at my life and I was like I don't even know if I really want my life um and so the the big
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decisions that I've made in my life unfortunately um have almost always come at the at the the doorstep of a parent
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death um and I think maybe in some ways that makes me a coward uh for having
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needed death to make decisions and so operational realizing that has been
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something that has helped me move faster to make decisions that I know I need to make but don't and so like the first big
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kind of like what felt like a death decision was um I was a consultant 22 is
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years old I had a paid for you know condo that I bought uh overlooking the city and I remember thinking like I
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really hope I don't wake up tomorrow and that and I don't mean that to be melodramatic it just I just for a period
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of time I just always just like hooped every night I was like I just really up I don't wake up tomorrow like I just don't want to do this and what was
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difficult about that was that at that time was when my father was most proud of me uh because I was doing everything
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that was according to plan you know he could talk like his son who graduated in three years from Vanderbilt had the had
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the good job like everything was we're following the plan um and it was upon
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realizing that my ultimate expression of living out his dream was me feeling like
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I didn't want to be alive and so in and it took me time to get to that point to
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even articulate that because obviously you never want to kind of like admit failure of like I have really messed
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something up here um but I was living my life to win someone else's game and when
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I realized that I realized that one of our dreams had to die either his or mine
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and when I realized that his dream must die in order for mine to live was a a
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statement that I kind of crystallized when I was at that point in my life like I had to keep repeating that like his
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dream has to die in order for mine to live and so to put this in perspective of like how afraid of my father's
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judgment I was I left the state and drove across the country halfway through before calling him to tell him that I
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was gone and so I I bring this up because I don't try I'm not trying to be dramatic here but I'm saying that if you
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feel a lot of pressure I get it like I tried to leave the job that I was at to pursue just literally anything that
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wasn't that just I wanted to start a business at some point I didn't know how I was going to do it I just knew that what I was doing was not the path I
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wanted to be on and everybody around me wanted me to be on that path and so I went to go be like hey I'm thinking
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about doing something else and you know it would always be that ah you know don't later later like everything's good
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later you know and um I remember when I called my dad and I told him that he said understand why don't you come like
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come home well uh well I didn't tell him that I was I was gone yet like I said hey I want you know I want to go pursue
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this Fitness thing um he said cool come over for lunch we'll talk about it you know and and he
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and I was like I'm I'm already gone and then obviously his tone changed a lot um
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and um and you know our relationship struggled for you know years after that and I I also bring that up because
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sometimes there's this illusion that like you know you get on the on the Oscar stage or whatever it is and you're like hey I just want to think you know
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my mom my dad my friends for always supporting me and um I can't say that
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and I wish I could and you might not not be able to say that either and I also don't think that's a reason not to do it
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and so um we did struggle for years after that to kind of like because I was basically living as what was once his
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prodical son uh goes and takes a minimum wage job as a personal trainer at a gym uh like you know cleaning floors and
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stuff to learn just to learn the gym business um but that was ultimately like how I broke free literally you know
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physically uh leaving the area and you know mentally but I think that I had to
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accept that there was a there was a timeline where my father would never talk to me again and I had to be okay with that um to
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pursue what I wanted and I think that when you ask the original question what are the people from 0 to one really looking for I read tons of business
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books at that time but I couldn't use any of them because I was so afraid and
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what's crazy is that like I think about it now in retrospect and it's like it's crazy how large the perceived monsters
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can appear and Leila has this quote that I love but it's um is a mile wide an
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inch deep and so you look at it it looks like this ocean and then you take the first step and you realize you don't
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drown because it's like oh there's ground underneath of this right there's other people who are more on my path and
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the friends you lose you gain new friends right and so um that
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fear was the hardest decision that I've had to overcome in my entrepreneural career and I think of all the of all the
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the split paths in my life that was the one that if I had many timelines or many universes that existed that was is
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probably the one that is the most likely that I would not have parted from so I think in like 90% of universes that Alex
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rosi exists I'm just a consultant somewhere and so um I would encourage you if you do feel that you're not going
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to die like you won't die and you might just live it's so interesting because I think
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everything you've said is just absolutely spot on but you're right in way you say that if you'd asked an audience member listening now why they
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haven't started yet they would say fear they would say I haven't got the X I
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haven't got the Y but actually it is such an emotional thing and we don't talk about that enough because uncertainty is humans seem to be
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allergic to uncertainty and they'd rather the certain misery of their current situation typically than
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uncertainty and I think um and I and I used what I consider a very non-p
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palatable word of coward purposefully because no one wants to say they're
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afraid because if you say you're afraid then it means you're a coward and I think that it only means coward if you
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don't if you allow that fear to change your behavior in an aversive way as in
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it not towards what you want and so you know the inverse of that many people have heard it Courage is not acting um
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without fear but despite fear um and I think that um when you
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act when you allow fear to change your behavior the wrong way that is when you
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can give yourself that title of coward and I think that that is a title that I feared my whole life and that label is
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almost I'm more afraid of that label than the label of failure I'd rather be
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a failure than a coward is there a framework for knowing when to
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quit so I think there's the there's like the math behind it and the math I think is pretty straightforward so like when
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do you quit your business I like you've saved up three to six months of personal
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savings number one number two is that you have started something because nowadays in the digital age you can
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begin a business on the side that can generate income and that income um in
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the small amount of time that you're not working uh replaces or at least matches the existing income you have from your
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your current job and you've been able to do that or demonstrate that income for like 3 to six months if you do that
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that's a very like math way of approaching it that also is basically never the reason that people aren't quitting their job right like that's a
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really s like I have I have I have backlog I've matched my current income with my part-time work and if I just put
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my full-time work I would probably make more very reasonable but never actually the reason that people don't do it I was
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I was thinking about the two sort of reasons why someone might quit something or feel like they want to quit and one
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of them is clearly because it's hard and that's obviously not reason enough to quit and then there's another one which you are speaking to there which is it's
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not moving me towards a meaningful goal irrespective of how hard it is like a marathon you're raising money for a
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charity you care about it's hard but you don't quit yeah and then there's maybe if you're running a marathon for no
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apparent reason you know there was no charity there was no one watching there was no like Fitness benefit then that's
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a good I guess moment to consider quitting um my story mimics yours in a
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way that I didn't realize I didn't realize you went through a similar thing in terms of call the parents disownership yeah um no real great
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option to to flee to but feeling like the current path that would have led me to be I don't know business management
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student was significantly worse on balance than taking the risk but I think
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maybe a point of Distinction is it didn't I was so naive that it didn't feel like a risk yeah so what's really
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interesting about that is um the guarantee and so a lot of times we don't
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we don't look at what I call the don't which is like the the alternate path and so if I had played out my existing path
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I had a guarantee of outcome I didn't want it was just out a delay whereas here there's a chance that
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I can make it and so one of the final kind of framework for making the decision was guaranteed bad chance at
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good and I was like well I might as well take a chance and I I strongly um
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encourage thinking about uh playing it out and so what I mean by that is like I
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think fear exists in the vague not in the specific and so when you say I'm GNA
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quit my job and then what if this doesn't work I'm GNA failure tons of fear
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if I say I'm going to quit my job and then I'm going to try and start a business and if the business doesn't
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work I'll probably have a compelling story that I could tell for business school if I wanted to to show that I had
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some entrepreneurial slant in the meantime I could use that experience plus my job experience to probably get
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another or maybe even better job in the meantime and match or or supersede my existing income and the actual loss
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would be maybe the savings that I had saved up but if I'm younger or I haven't made as much money as I want then that's
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never been the amount of money that would be material anyways on the grand scheme of what I would like to make um and in terms of living situation I will
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worst case go back to my parents house with my tail between my legs or sleep at
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a friend's couch because I have enough people that would be willing to put me up in a garage if I had to and so it's
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like okay so my actual worst case scenario is just like I have a cool story and maybe some shame that I is
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self-inflicted cuz it's not like no one else cares really but it's self-inflicted shame and maybe a detour or a different story
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that I have to tell later on in my career not as much fear there right but
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like the first one like I'll fail everyone will hate me and I'll die the first one sounded like it was written by
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your like amigdala like the Fierce and the second one was pure like prefrontal cortex it was all logic yeah and I'm
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wondering you know as you're going into that decision obviously fear is going to lead it so of course you're going to go for option one where you just think about the downside maybe there's a
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practice that allows you to get into your prefrontal cortex into logic and I think that's I actually so I think you nailed it and said it way better than I
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did but I think that's I think going from vague to specific basically disengages your mdala because it's it
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can't reason the logic chain of causation and causality of what's going to happen next in a chain of events and
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so when you get into the specific of it all of a sudden you're like okay I'm not
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going to be homeless and then shamed and die um I might live in inferior living
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conditions for a short period which by the way when you're later on in your life you'll look back and think of as the good old days cuz I can't believe I
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was couch surfing I was pursuing my dreams right it's it's only like in the moment that it feels bad when you look
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back like even I I find this hilarious like like how long after you do something embarrassing is it
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funny right like at at some point for almost all of us with enough time the shameful experience becomes funny and so
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if it is going to become funny eventually it might as well become funny now yeah and so it's just like pulling the time Horizon up but all of that
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prefrontal cortex decision making and so um no but I think that's exact like I think that that nailed it because when I
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thought about this this decision obviously I had my very you know emotional statement around like his dream has to die for mine to live yes
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also logic downside risk here I'll have a story and I can always get my job
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back okay and if I can't get that job back I'll will have other ones that will be available fine and if I have a
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downgrading and some people think that I'm not as successful as then okay I'll not stop though and so I think that that
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that demystifies a lot of the fears I think that applies not just for entrepreneurial fears I think applies for any fear like I'm going to talk like
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I can't tell this person this bad news all right let's play it out I say something and then they're going to kill me probably not so what's going to
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happen I'll say these words and then there they they they'll flip the table they'll they'll flick me off they'll
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maybe just feel hurt and maybe they'll cry maybe they'll shout okay okay if they shouted at me what do I do like and
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you just kind of play it out and you're like okay I think I have like most of these conditions prepared for and then
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all of a sudden you can like have those things what you also said is that in the face of guaranteed misery any option is
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better yeah like it's real you get to live once yeah so like why would guaranteed misery be better than any
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available option it's delay discounting that's what's crazy is delay discounting happens both ways like um so like you
00:18:50
set your alarm for 5:00 a.m. at night and you're like I'm going to wake up at 5: but that's because you're delaying
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the pain of waking up and when it's immediate when I have to quit the job like I'll quit my job tomorrow for 20
00:19:02
years and so it's just like we always we we we delay the fact that we're going to be miserable into the present uh to like
00:19:09
a like we we massively discount what a whole lifetime of misery would be amen
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when you're thinking about what to pursue so say you've left the job you've quit the thing when you're thinking about what to
00:19:20
pursue how much of that is a decision derived from self-awareness
00:19:27
because you know they'll someone will look at you now and be like Oh No Alex did this so I'm going to start a acquisition. comom you know or they'll
00:19:34
say um I want to I saw Steve Jobs did that thing with the computers I'm going to start Apple yeah right or Elon I'm
00:19:40
going to do the spaceships how much do you have to know thyself to know what to pursue man this is a really good
00:19:46
question so um there's a tweet that I love by Andrew Wilkinson which is um
00:19:51
every entrepreneur ever colon here's the winning number for my lottery ticket and
00:19:56
so it's like every entrepreneur will say here's the winning lottery ticket but it's like that game already that drawing
00:20:04
already happened ah okay yeah right and so like you can't cash that ticket in it's already done and so people say the
00:20:10
word first principles no one really knows what it means uh I mean some people do but the I think far more
00:20:15
people say it than know what it means and so basically there are foundational truths of business that that exist and
00:20:23
the conditions of the environment will change and so you have to apply those truths to whatever the current condition
00:20:29
is and so that's what I try and tease out with the books and the stuff that I that I put out in content but at the end
00:20:34
of the day you have an input of time like zooming all the way out if the goal assuming that your goal is to make money
00:20:40
okay like and this is just a purely economic business goal then you have time which is the primary currency that
00:20:47
you trade it and you make dollars over a period of time and so I tend to reject the idea of like never you know never
00:20:52
trade time for dollars or anything like that because everyone trades time for dollars it's just some of us are more
00:20:57
efficient at it than others but even exchanges that occur that just are not denominated in time still occur over
00:21:03
time and so uh you have this foundational unit of time which you're going to give in what we're seeking is
00:21:11
the highest return on that time and so there you know within a business context
00:21:16
there's kind of three levels of uh things that have to occur in business you have to you know attract attention you have to convert attention then you
00:21:22
have to deliver something uh for that attention and in each of those things you want as much leverage as possible so
00:21:27
you want as little time as possible required to get the most output and so I have built acquisition. comom on
00:21:33
basically two primary thesis uh which are in the logo which is this is a full
00:21:39
Crum for leverage for people that can't see it's like a triangle yeah so it's like a triangle or the Illuminati
00:21:44
because that always gets brought up um right so we've got the full Crum for leverage and then inside of it you have
00:21:50
supply and demand and I see those as the two foundational principles of business and so which is you need supply and
00:21:56
demand to have a business and then leverage to get as much out of it as you possibly can and so um when you're
00:22:03
looking at the assets that you have assets can also be skills resources what you have available to you now if you
00:22:08
have nothing then all you have is your brain your hands and the time that you have that you can put towards learning something which is why I'm a big fan of
00:22:15
skill acquisition as one of the the primary things that you can do is educating yourself and not formally educating but informally or
00:22:22
alternatively educating yourself on super tactical things uh once you get over the fear then you start asking okay
00:22:28
okay how do I let people know about my stuff and what do I let them know right and so you have to have something to
00:22:34
sell which is the offer and ideally you want the offer to have as much leverage as possible like so if you sold software
00:22:39
or you sold media those are things that you can U cut once sell sell a thousand times um if you have a conversion
00:22:47
mechanism it's like you can have it be automated like a check out page or some sort of video sales letter or something
00:22:52
like that where people just buy without a phone salesperson if you add a phone salesp person there's less leverage not to say this wrong but you you want to
00:22:59
have the highest leverage opportunity and then from a um from the deliverability expect uh perspective um
00:23:06
I kind of talked about deliverability first but uh from the advertising perspective uh if you reach out to
00:23:11
people one-onone that's lower leverage than being able to make one piece of content that a million people see right and so over time you go from low
00:23:17
leverage to high leverage uh where you have the same inputs but you just get significantly more for your output and
00:23:23
that fundamentally is like if we're reasoning up from first principles how do I get the said differently the
00:23:28
question someone I think is really asking is how do I get the most for what I put in and you have to reason within
00:23:34
your current context of your skills and your resources and your assets in order to derive that solution for you so if
00:23:41
someone walks up to you in the street and they say Alex what idea should I pursue I've just quit my job yeah right
00:23:46
so I would say um business idea is typically come from one of three PS so it comes from a pain that you're
00:23:52
currently experiencing a past profession so the thing that you just quit or some of the jobs that you just quit or a
00:23:57
passion MH so it's something that you're inherently interested in that you would spend your time doing anyways uh some skill that you learned
00:24:04
while you were in the workforce which by the way is one of the most proven ways of making money because the economy has already showed you that people are
00:24:10
willing to exchange money for that for that specific job and so uh in the world
00:24:15
of gig economies and solar preneurs every business can be dismantled into just jobs being done and all of those
00:24:21
jobs can be fractionalized so anybody like we look at any business you've got sales you've got you've got marketing
00:24:27
you've got customer uccess you've got you've got customer support if you want to differentiate that you've got product you've got design you've got web pages
00:24:33
there's you know there's so many different components to a business you just need to learn one of them and then it's like boom you have a skill that you
00:24:39
can trade for money that you don't have anybody else to report to um and then pain is usually I think um in some ways
00:24:47
um sometimes one of the biggest drivers it's like you had an eating allergy and
00:24:52
you couldn't find pancakes that dealt with your specific eating all and you
00:24:59
bet that there's a decent amount of other people with that allergy that also like pancakes and so then you make pancakes that that are delicious and
00:25:05
amazing that also cater to people with that food allergy and then all of a sudden like you have a business based on pain and why why does that matter what
00:25:12
the Pain part um I what leverage and Advantage does it give you for the next five years I think that deep knowledge
00:25:19
of the prospect is Paramount or very important for creating exceptional
00:25:24
products and you can either do that by doing a ton and ton of research or by being the Prospect and there's a certain
00:25:31
amount of like visceral feel that you'll know like if someone wants to make a nose product for breathing I have tried
00:25:39
every product since I was in eth grade so it's been 20 plus years 30 whatever a lot of years um that since then and I've
00:25:45
tried everything and so I know the pros and cons of every product that exists on the market and I can tell because and
00:25:51
I've done it's not like oh I tried it for a day it's like I'll try things for a month at a time and so I have so much time exposure to this problem that I
00:25:58
have a lot of nuance in my opinion on what's wrong with the solutions so I can formulate a way better hypothesis on how
00:26:04
to fix it and that hypothesis would will be for an investor so much more compelling because you lead with a story
00:26:10
as opposed to logic I met the guy who uh invested in Regal Cinemas which is the
00:26:15
probably the biggest chain in the US um and it was when it was there was guy had just one theater and it became now
00:26:21
obviously Co has disrupted that business but you know for 20 you know years whatever they they crushed and he said
00:26:27
it was so weird to say that oh Cinemas are going to make a comeback because they'd kind of been on a downturn or something like that during the time that
00:26:33
he was making the investment and he said the reason I decided to invest in it was because this guy knew everything about the business down to how much the cost
00:26:39
of Colonel of popcorn was and he just knew it so like the back of his hand that he was like this guy can't fail
00:26:45
like he just knows too much about this business to not have it work and so he investing in you know making gazillion
00:26:50
dollars and so but I think that that deep understanding and if you look at all of these the passion things you'll
00:26:57
have deep understanding because you're spending spending all of your discretionary time pursuing this passion the pain you have a deep understanding
00:27:03
of the of the problem and the prospects going through it because you've experienced it probably for years now
00:27:08
the professional one I would say is a bit of a shortcut um because if you're quitting the job because you don't like
00:27:15
it and then you say I'm now going to do this for myself well you're
00:27:21
okay um I mean well the the the one the one proven point about that is that that one is proven to work from an economic
00:27:27
perspective you will be able to make money doing that because you already have made money doing it these other two are less proven
00:27:33
but sometimes have a significantly more upside when you were talking about the breathing example with your nose it's
00:27:38
funny because if you had sat down and said to me Steve I've made these like breathing nose strips um they are better they're 20% more durable they expand
00:27:44
your nostrils by 20% it is multiples less compelling than you telling me that
00:27:50
story you just said about being a kid having breathing problems trying to solve this problem for yourself and it's
00:27:55
funny cuz that that story you told versus the sort of rational logical approach or the benefits approach is
00:28:01
your marketing campaign for the next five years on Tik Tok and Instagram it's I had a problem I solved it I tried
00:28:08
everything and solved it for myself there's almost like nothing more compelling and believable no we see that in Dragon's Den it we'll be sat there
00:28:14
listening to these pictures all day then someone will come in and say I had ADHD I tried Energy Products they all made me
00:28:20
crash so I went out and solved this problem for myself and we're on edge cuz we almost can't argue with it yeah at
00:28:26
that point you know yeah so basic has this great framework where he talks about missionaries and mercenaries and
00:28:31
so it's kind of like you have the guy who says okay I looked at market trends and this is a growing category and you
00:28:37
know I surveyed people and this was the you know the result that came back and so I believe that if we time this
00:28:43
product right uh at this point in the market we'll achieve huge you know a mass adoption blah blah blah blah and
00:28:50
it's like loging your way through and to be fair some people do you know do make it work but the missionaries are the
00:28:56
ones that end up making the most money because is like they do it sure for the money cuz the business has to have some
00:29:02
economic engine behind it but really because they viscerally experienced this problem and don't want anyone else to solve to deal with that problem either
00:29:08
and so like if I were to tell that story like you were saying like when I was in eth grade it was the first year that I I
00:29:14
started really noticing I couldn't breathe at night and so I learned how to fall asleep with my hand on my face like this so that my nostril would so I could
00:29:21
fall asleep in my hand with because you there's no actually other because you can't hold your because you fall asleep right and so if I fall asleep with my
00:29:27
hand like this right like like I'm on the couch and I fall asleep like that it keeps my nostril open and I can fall
00:29:33
asleep and it doesn't move and so that's how I learned how to sleep for years uh before founding like just like simple
00:29:40
nasal strips and things like that but there's tons of problems with with those solutions that exist right now that I won't get into but um maybe someday I'll
00:29:47
make a nasal product I think I mean literally just delivered [ __ ] I can tell you if you
00:29:53
put if you put every product in front of me that exists right now I can tell you what's wrong with it cuz I've tried I've tried literally all of them not like I'm
00:29:59
pretty obsessive and so like I've tried all of them missing opportunity here I've tried I've tried the ones from Europe I've tried the like not just us
00:30:06
like I've tried I've tried every product that exists on Amazon I've tried all the ones from foreign countries every every
00:30:11
fan or follower who sends me a product that is a nasal company that's new um I will try the product I still do um and
00:30:19
there has yet there's there's yet to be one that has truly solved it I mean you should I
00:30:25
mean but I I think in some ways uh so this is actually a really good meta uh concept here which is that um if you
00:30:32
want to be compelling a demonstration or a model is always more compelling than anything else and
00:30:39
so me even going through that entire narrative right is taking everyone else
00:30:45
who's been listening to this on some Journey it's like if you want to make a compelling pitch for a business it's like we pretty much just kind of went
00:30:51
through one um and so that's that's really what it comes down to you're like well what do I do with my business it's
00:30:57
like create your Narrative of why you're even doing this and if you can explain to
00:31:03
somebody why why they should care about this problem or more specifically why you care about this
00:31:08
problem I'll tell you this more investors will like I might be like I don't care about kitchen utensils but
00:31:13
this girl certainly does and I'm sure there's other women who do too and what everyone wants to see is Obsession and
00:31:19
unfortunately in like some of the world I know more in the UK than the US now like that kind of perspective of like
00:31:27
just being all in obsessed with stuff has almost been like um bastard or like you know been um
00:31:32
chastised and I but the people who are obsessed with the ones who changed the world at least changed their world and
00:31:40
um and I think that so a very close friend of mine um did all the uh Olympic
00:31:45
teams um nutrition and supplementation stuff for uh a country overseas and he
00:31:51
said you know the difference between Champions and everyone else and I was like what he said everyone always looks at them and says what do champions have
00:31:58
that I don't have and he said it's they have it backwards he said it's what do
00:32:04
Champions not have that I have it's what do they lack and it's an off button they
00:32:10
just don't stop and so in dealing with the gold medals he's like they just never stop they just can't stop
00:32:16
everything in their life is geared towards one goal and so finding that
00:32:21
thing and they approach everything in their life that way and I think that that level of obsession of around like
00:32:29
everything that you touch on a daily basis is required for really getting to where you want to
00:32:35
go so interesting because as we spoke there about the reason why the story was
00:32:41
so much more compelling it was back to the amigdala it was back to emotion right and it's funny because we we said
00:32:47
a second ago that when someone's thinking about quitting a job they're like SE in their amigdala humans run mostly on their amydala so when we think
00:32:53
about pitching we should really be aiming at the same part of the brain which is what you did when you showed me
00:32:58
that you were sleeping as a kid with your hand stretching across your face I immediately felt sorry for you felt sympathy and I immediately believed that
00:33:04
if anyone's going to solve this problem it is this [ __ ] guy who's been through that pain I've had two surgeries both of them didn't really work like I
00:33:11
mean like i' I've got the story my girlfriend's the same what really two surgeries but she's coming up to her
00:33:16
third one now we've tried all the nose drips I saw you wearing one I bought that one for her yeah um and so there's
00:33:22
a lot of people watching right now and there's something going on with these bloody [ __ ] like noses yeah people shouldn't like yeah we're doing
00:33:28
something I I feel like I may it popular some of the N Stuff yeah but D making it
00:33:33
cool pain profession passion yeah ideally you have all three if you have all three then you're I mean my God
00:33:40
you're set like if you if basically pain created an obsession and for some reason you also were doing something like that
00:33:45
in your work like I feel like the likelihood that you don't succeed is almost nothing you only need one of those three you just pick one like if
00:33:51
you just had one pain that you had that you wanted to overcome or one passion that you were just inherently interested
00:33:57
cuz sometimes passion has nothing to like you might just be really into model cars it's okay well there's a lot of businesses that you can build around model cars it's like you can you can
00:34:04
manufacture model cars uh you can have services around model cars making them faster because some people race model cars you can uh be a collector and start
00:34:10
flipping model cars like you can just make media around how to build them and then have a media company around like
00:34:16
there's so many different components of any Obsession or interest that you can make I I was talking to um on one of the
00:34:21
future episodes of uh mosy tank uh that's coming out we have a guy who's um he loves Dungeons and Dragons so he's an
00:34:27
it he's an IT guy and just loves Dungeons and Dragons and he was like I
00:34:33
just want this to make enough money that I don't have to do ID anymore and but it was so pure you know
00:34:39
what I mean and so I was like we're going to help you do this and so we kind of walk through the business plan for it but like is he going to be a billionaire
00:34:45
no but I also don't think that's his goal and so I think being really clear on what you want um is important so if
00:34:51
you're like I want to be the richest person in the world I think it's a terrible goal but if you want that great
00:34:56
well you have to have a multi-trillion dollar idea because now because by the time that occurs there's already multi-
00:35:03
trillion dollar companies now so you got to be looking at like Deca trillion dollar opportunity and so believe it or
00:35:09
not basically the bigger the goal the narrow the scope of the path to get there if you're like I want to make $10 million like you can literally do that
00:35:16
in almost any business you want to make $100 million probably still almost any business you can do it on a long enough
00:35:22
time rise and you can do it a trillion or decad trillion it's going to be some sort of tech it's probably going to have
00:35:27
some sort of AI like and so you get basically the bigger the goal is the narrower the scope of of how to get there but the vast majority
00:35:33
of people were like I want to be the richest man in the world it's just because they don't know how to like really think through it and be like all right well after like a hundred there's
00:35:39
really nothing you can't do except buy more big things but like in terms of your actual consumption maybe even 20 is
00:35:46
like you can only eat at restaurants that go so expensive you can only stay at the best hotels you can only drive the nicest cars you can do that with about 25
00:35:52
million what do you think the cheat code is then so I've got my idea what do you think the cheat code is in 2025
00:35:58
to win at the game of attention like there's got to be some new rules here
00:36:03
because we've got AI we've got new platforms we've got New Media you know I'm give you a
00:36:09
hypothetical business idea I'm going to be a personal trainer okay and I pick that because everyone can do it and it's
00:36:14
it's a saturated industry if I'm if I'm a personal trainer in the 2025 how should I be thinking about
00:36:21
building attention mhm so I'll tell you what I wouldn't do first which is I
00:36:26
don't think I try and out science the science people uh because like unless you have some PhD there is a PhD guy
00:36:32
who's already jacked who's making content and so he's more knowledgeable and more Jack than you so you're not
00:36:38
going to win there and so I think in the game of attention it's trying to find what is unique right and so how do you
00:36:44
how do you quote stand out when everyone's loud and this is going to sound trite but your fingerprint is
00:36:52
unique literally from a biological perspective but so is your life and your experiences and so there's there's real
00:36:59
Alpha or or benefit to be had above normal level of effort by leaning into
00:37:05
you and so what makes every person unique is what makes their content unique and so trying to be like oh I
00:37:12
want to make content like Alex is probably not the best way to do it because you're not going to beat me at being me but you'll beat me at being you
00:37:19
and so it's basically your flavor of media so like for me it's like you know what is you know my brand to to to to
00:37:25
model this it's like well I have elements of flly philosophy that are in my brand well do I need that no but that's like kind of me um I obviously
00:37:32
talk a ton about business marketing and sales promotion conversion those are all things that I spend a lot of time thinking about and so a lot of my
00:37:38
content about that um Fitness is a component of my life and so there's light sprinkling of Fitness uh in my
00:37:43
content also I come from a background of Fitness um with the the with gym launch and and the companies that I owned
00:37:48
before that and so that would make sense that and I've my wife Lea and so that sprinkled in and so like those are
00:37:54
basically the components of My Life um and so that's what kind of shines through in my content I consume a ton of comedy and so sometimes you'll see some
00:38:00
dry humor and dark humor that that shines through um but that's me now you have all of those little buckets of you
00:38:07
and not only are those buckets unique but also the proportions of those buckets will be different and so maybe
00:38:12
your philosophy is way bigger or maybe Fitness part is way bigger but I think what makes the truly unique personal trainer or Fitness brand is leaning
00:38:20
into people being interested in you for being you and then being like by the way
00:38:27
I have Fitness stuff if you want to buy it from me and I think the key part is
00:38:33
the vast majority of products and services are commone tized there you're not you're probably not going to be significantly better than other trainers
00:38:40
just being real you probably aren't but you will be different than them and we
00:38:46
want to lean on I I want to buy Fitness from somebody and so I might as well buy from her or I might as well buy it from
00:38:52
him so you're taking basically this audience that would buy from anyone but your brand premium gets them to want to
00:38:59
buy it from you we think about Prime for example with the drink the drink company like it's a it's a drink that there's
00:39:06
other products that already exist in the marketplace that satisfy the same thing as Prime but if you are agnostic to that
00:39:12
brand and you have brand Affinity with that that Creator then you're like well then if I have two things that are
00:39:18
basically equal and I just like this guy better I'm just going to as long as the prices are comparable I'll just vote
00:39:23
with my dollars here and so I think that if you're a personal trainer in 2025 um it's going to be longterm it's going
00:39:31
to be building the content short term it's going to be Outreach to people that you know and making a compelling offer
00:39:37
to get people to try to work with you this overarching point you said there about being yourself as I was thinking
00:39:42
about it I was thinking gosh do you know what the thing that all of my favorite creators and the Really successful creators have in common is they all have
00:39:50
and I use these words intentionally the courage to be themselves yeah because I
00:39:56
tell you what when I was starting out as a content creator and I looked back I was showing one of my team members the other day the things I used to post it
00:40:01
was like everything happens for a reason it was cringe cliche fluff and it took
00:40:06
me several years to almost relax into just realizing that the game here was to get to the point where I could be myself
00:40:12
on the internet and actually that was the most high value because of you know of what you said it's the uniquest part of me but the courage to be yourself and
00:40:21
it's it's it is the winning strategy for 2025 and it's I think um it's leaning
00:40:27
into it and the thing is is that everything in you wants to not do that I'm not really sure why um but I was
00:40:33
having a conversation with Ila I want to say two nights ago or three nights ago um I got a bunch of flack for uh some X
00:40:40
poost that I made and she just looked at me and she was like never dilute
00:40:46
yourself because I was like maybe I was like maybe I shouldn't talk about this stuff like maybe I should just like you
00:40:51
know I'll just lean off and she was like never dilute yourself like there are so
00:40:56
many more people people who need that message than people who are hating that
00:41:02
message and she was like and if you're actually going to make a difference in a lot of people's lives there's going to
00:41:07
be an equal and opposing force of people who want to reject that and she's like this just comes with the territory of
00:41:14
like how big of an impact you want to have and it was just such a great you know wife talking to husband you know conversation um that I guess for me at
00:41:21
the end of the day I'm like as long as she thinks I'm cool like you know I I'll keep doing it but um but yeah it's just
00:41:28
uh because the diluted down version all all of a sudden becomes everyone else's
00:41:33
stuff well you said a second ago you're not sure why that is but by very
00:41:39
definition of it being unique that that means that there is no blueprint yeah there is no person that's come before
00:41:45
you and proven that it works so the courage of being yourself there's only one Steven Bartlett so if I'm truly
00:41:51
myself it's never been done before that means that the risks are unknown the upside is also unknown yeah but so again
00:41:56
going back to to our our hate of uncertainty it makes much more sense for me to try and copy you because I can see
00:42:03
a blueprint there than to run the risk of being yourself and you are someone have to say who is running the risk of
00:42:09
being yourself and actually as someone who's observing you now I know who you are and I now know who you're not and
00:42:16
it's important for me as someone that follows your work yeah that actually I see consistency because I've established
00:42:22
Alex os's values yeah and anything that diverts from that is actually less valuable because you say it's more like
00:42:28
everyone else and the things I've had before but it's also it wouldn't feel true anymore yeah and um and this is
00:42:34
something that even as a Creator myself I I have to fall back on is my audience know who I am now For Better or For
00:42:40
Worse yeah they're not going to learn anything new yeah you know what's really interesting is navigating the gray and
00:42:46
so there are contradictory ideals and this is what I kind of come back to when
00:42:52
I'm when I'm like worried about these types of things which is like you've got mercy and you've got
00:42:58
Justice they are somehow opposed and they are both ideals so how can we
00:43:04
believe in Justice and also believe in Mercy at the same time and so and I mean there's you can have variety and
00:43:10
consistency like there there's there there's tons of examples of this right um and so we have these diametrically
00:43:17
opposed ideals which means that if you ever say by the way I'm a little bit more of a Justice guy like I understand
00:43:24
they had a hard time but at some point you got to take your own personal accountability so like no you're not going to get out of the speeding ticket
00:43:29
you're going to get like that's what's just on the other hand it's like hey single mom uh gets pulled over uh for
00:43:35
driving too fast you know what maybe we let her off today both of those stories fair but you're going to get attacked by
00:43:43
the other side that has an ideal that all humans try to strive for and it will feel terrible because they are right and
00:43:51
so what and so I think that like understanding that that conflict will always exist between two apparent ideals
00:43:58
that and this is fun this is foundationally what politics is right is that there are two apparent ideals that
00:44:04
bet all of us I would say 99% of people would say justice is good Mercy is good
00:44:09
variety is good consistency is good right respecting values is good so is innovating and doing new things how can
00:44:16
we have both of these contradictory ideas and at the same time like navigate that without conflict you can't because
00:44:22
how much becomes the question and so I think that your thumbprint as a Creator is that when someone presents a
00:44:29
scenario and says does Alex choose Mercy or Justice in the scenario that your
00:44:34
audience says gets it right and so I think about um branding in general as
00:44:40
basically a mosaic that you get to create and so like each piece of content is a little tile that has a single color
00:44:45
on it and if you just see one piece of short content of of Steven Bartlett you you don't really have an idea who Steven
00:44:51
Marlett is but if you see a thousand of them all of a sudden you zoom out and you get to see the whole picture and I think that that the the colors that are
00:44:58
in those mosaics and the and the proportion of how many yellows how many Reds how many greens and where are they
00:45:04
is what ultimately creates the brand and so um because people want to try and turn this into okay so I make one post
00:45:10
about family I make one post about finances I make one post about whatever right it's like I don't think that's how
00:45:16
it works I think you just be you and then those proportions will naturally shake out and also over time you will
00:45:24
change and so it also makes sense that your brand will change and was I had to recile which likeit I don't know if I
00:45:31
agree as with some of the things that I said years ago the thing is in the digital world like my first podcast was
00:45:36
2017 July of 2017 wow episode 8 is called stop
00:45:44
branding I have changed my views on branding to be clear yeah but that first
00:45:50
podcast is 90 days from when I lost everything MH and so the entire the
00:45:55
entire like horm Journey if you want to call that from zero to billion is actually documented 90 days from zero
00:46:03
it's all there and so you can see how my my my views on business have changed and like what I was thinking about at every
00:46:09
kind of portion of my life and so I had to just be okay with the idea that like
00:46:14
I will change my mind because I will get new information because let's take the alternative stance if I get new information do I just keep parting what
00:46:21
you did before this is also an issue with politics right is that like he's flippy floppy it's like so they're not allowed to learn
00:46:27
yeah you've been in politics like you haven't learned anything like no stances Chang like I feel like we should be able
00:46:33
to do that obviously Brands don't work that way so it has to be gradual over time which I think if you were always
00:46:39
you at all times it will be gradual over time yeah I don't know I think a lot of the time we end up over focusing on
00:46:46
unreasonable people which is a war we can never win anyway because you say that to me I think so I think it was
00:46:52
like I had this uh this guy therapist on my podcast who I then spoke to after the podcast and he basically broke it down to me he was like there's 20% of people
00:46:59
that just absolutely love everything you will ever do like you could say anything you change they're [ __ ] they're just super fans there's 80% of people that
00:47:05
are actually like he said there 60% of people that are really reasonable they don't speak yeah they just watch they're
00:47:11
like reasonable and there's 20% of people with no matter what the [ __ ] you do they're going to be he is like don't
00:47:16
spend your life focusing on the the 20% the quiet majority the 60% they don't tweet they don't they just chill and
00:47:23
then the 20% you know they your evangelists but you know I find myself falling into the Trap of the so what's
00:47:29
interesting about the 20% is that like um I was thinking about this today the your so no matter who you are you're
00:47:36
going to be disliked period because no one's liked by everyone so we just have like let's if we can accept that as a
00:47:41
premise right no one's going to be like for everyone you might as well be disliked for being you than being somebody else amen am at the most basic
00:47:48
level you the being disliked is a fixed cost and and I think to to to to take
00:47:56
the opposite pers perspective I think it is far better to be disliked for being who you are than loved for someone you're not yeah and one one of the great
00:48:04
entrepreneurs I interviewed on the podcast said to me when it comes to marketing and branding and this sort of attention conversation we're having she
00:48:10
said to me that in order to reach your 80% you have to piss off your 20% or at
00:48:16
least be willing to piss off your 20% it was Jane warang who's the founder of demica global Beauty um brand with I
00:48:22
think hundreds of thousands of people and she sat and said to get to your 80% you have to be willing to piss off no
00:48:28
actually [ __ ] she said to get to your 20% you have to be willing to piss off the 80% and from a branding perspective it
00:48:35
makes so much sense because when you stand for something clearly which you do you inadvertently stand against a you
00:48:42
have to if you draw a line there's there's there's a side on either side and you have to say like I'm on this side did you see that Nike ad dude I was
00:48:50
just going to say that I was just going to say that yeah the William defo ad yeah like what's yours is mine and what's mine is mine yeah just like it
00:48:57
was actually the first time that I'd seen something from Nike in a long time that I was like this is what built this
00:49:02
brand and I think they have they had lost their way for a while yeah uh with like the wokeism and all that stuff and
00:49:08
I think it's like Nike means Victory which means people have to lose yeah and
00:49:14
they were willing to say that for the first time ever right I posted it on my LinkedIn and it was 50/50 yeah I'd say
00:49:19
it was actually more like 80% of people were either neutral or pissed off and 20
00:49:24
yeah and 20% of people were like that is me I am a Nike person and for me when I
00:49:29
saw that I thought I want to buy some Nike shorts yeah it was I mean it was the first time I actually felt like I had positive brand Affinity towards the brand in a long time how important in
00:49:36
this game of building and starting is people oh very a hiring question I'll tell you
00:49:45
why I asked this question because when I look at my portfolio early stage first Founders never seem to understand the
00:49:50
importance of hiring in people yeah and I bang my head against the wall trying to convince them that actually the game
00:49:56
they're playing is in the company group of people yeah so I would I'll start
00:50:02
with one thing and then I'll answer the question so I was talking to um a mentor of mine and he said when I was in my 20s
00:50:07
it was all about the destination he said when I got to my 30s I realized it was all about the journey he said when I was
00:50:13
in my 40s I realized it was about the company and I was like I can't wait till you're in your 50s the next one right but I thought
00:50:19
that was such a great like such a profound shift in terms of how he thought about his business success cuz he was like I don't need to be a you
00:50:25
know a Deca billionaire he's like I'm I'm cool where I'm at um and now I just
00:50:30
want to do it with people that I like and so to the question about um people
00:50:38
overall I believe that the potential of an organization is directly correlated
00:50:44
with the aggregate intellectual horsepower of everyone contained within it and so if you are the smartest person
00:50:53
in the business then and you can do every everyone's job better than everyone in your company then it means
00:50:59
that the limit of the business is purely based on one person's horsepower and one person's life
00:51:05
experiences and that will be the cap and basically it doesn't matter how smart you are you can't live a 100 lifetimes
00:51:12
like you can learn quickly sure there's some people who can learn faster than others but you're not going to be able to live a thousand lifetimes and
00:51:18
so as a business grows more expertise is required and I think the easiest liit
00:51:24
test for this is if you look at the richest people in the World almost none of them Own 100% of their business so
00:51:29
number one most of them don't even own 50 like most of them are small percentages Jensen WIS at 4% for NVIDIA
00:51:36
basos is at seven or 9% for for Amazon uh I think elon's at 20 for Tesla like
00:51:41
small percentages and it's because it takes a lot of horses to take a chariot
00:51:46
to the Moon right and so basically as you put in more intellectual horsepower
00:51:53
the potential peak of the business goes so much so much higher so much faster
00:51:59
Keith rabois from um he's one of the original PayPal Mafia guys has a really good analogy for this and he talks about
00:52:04
it in terms of barrels and ammunition and he says so as soon as you get some product Market fit the business starts
00:52:11
to grow and you say okay we need to start shipping things faster and this works the same with a Services business a physical products business software
00:52:17
business the concept's the same and said so what happens is you then hire a lot of people and you assume that your
00:52:23
throughput is going to increase proportionally so we have 10 people we hire 50 we should 5xr output and then you quickly realize that that is not the
00:52:29
case and so what happens is uh there are people who are rate limiters for or or
00:52:34
and organization and those are the barrels so think about like a civil war Barrel you know Old Cannon and you've got these cannonballs next to it he said
00:52:40
most people are ammunition and so you bring more ammunition but you're still going to be limited by the one barrel
00:52:46
capacity of how how many shots can get taken by the barrel and so you need to find more barrels so you have to go from
00:52:52
one barrel to two barrels two barrels to three barrels and that becomes an increase in capacity or throughput for
00:52:57
the organization and there are very few of those in a different um I can't remember the law but it's some
00:53:03
organizational uh law but uh the square root of the number of people in a company generate 50% of the work so you
00:53:10
have 100 people in an organization 10 people are responsible for 50% of the value that's created facts right anybody
00:53:16
who's been in like you're like of like preach and so the thing is is I think
00:53:21
the real game of Entrepreneurship is that your standards rise over time and it's unfortunate because we we hear
00:53:29
things that other entrepreneurs tell us it's all about the people stupid and then you're like sure but look at my and it's like no you're not hearing it and I
00:53:36
don't know there are some I think Williamson talks about this how there's like some lessons that for some reason it's like we have to learn for ourselves
00:53:43
I still believe that that it's like we can operationalize this at a lower level so that we don't have to learn it for ourselves but like I'm convinced I
00:53:49
haven't figured it out yet but um so every entrepreneur can can can can resonate with this which is every
00:53:56
business that I've started I've gotten to the success of the business Prior Way faster and I kind of liken it to a video
00:54:04
game where it's like you beat level one and then you know you get to level two and it's like you spend months trying to
00:54:10
beat this boss and you finally figure how to beat the boss and it's like great and you spend another three months getting beating Boss 3 and let's say you
00:54:16
start the game over with a new character it's like you just zoom through level one two and three and then you get to level four and you're like shoot now I
00:54:21
got to spend time it's like virgin land like I don't know how to beat this yet and so I think that that happens for
00:54:27
archetype finding for skill and talent within an organization and so say that again so if you have functions across an
00:54:35
organization there are people who are going to drive results within that function and the first time you hire a
00:54:40
salesperson for example you don't know what you're looking for and so you just hire a human who says they can sell and
00:54:46
maybe they can maybe they can't and then you cycle you try to train them that doesn't work does work whatever and then
00:54:52
finally you let's say you cycle through three sales guys and finally you find a killer and then you have this recognition you're like okay that's what
00:54:58
I'm looking for and then all of a sudden you try and approximate that person or that archetype as as much as you can and
00:55:04
so when you start your second company you're like oh I can quickly staff up sales because I know what I'm looking for but then you're like shoot I've
00:55:10
never really nailed sales manager yet and so then you cycle through you start you start whacking away at the boss and
00:55:15
then you have to end up firing the boss at level because you're like oh God this didn't work and then six months are gone
00:55:20
because you had to find them recruit them hire them train them and then find out they sucked and then start over again and maybe it takes 18 months to
00:55:25
really find the right sales manager and then you're like okay I know what that looks like but I still don't have a
00:55:31
director of marketing what does that look like and so it's basically developing this pattern recognition
00:55:36
across all functions of the business so you that you know what exceptional looks like and then over time what happens is
00:55:42
as a business grows your ability to attract Talent increases and so then your standards also grow and then you
00:55:49
find out that there's even more Nuance to this which is that there's a director of sales at a $1 to10 million level
00:55:54
which is a different looking person from10 to100 million level and it continues to go all the way up and so
00:56:01
it's basically building this repertoire of identifying patterns and what if you
00:56:07
talk to I would say more experienced entrepreneurs now they don't talk about building businesses it's like assembling them you just assemble the pieces and
00:56:14
you just know that this is how it's all going to flow together and that fundamentally is basically what I try
00:56:21
and decode within the content that I have so that it's like here's a pattern for how you recognize this here's a pattern for how you recog ize this so
00:56:27
that you can just move faster through the levels um to get to where you want to go and so to loop back to the
00:56:33
original question which is how important are people in an organization people are the organization and so if you ever want
00:56:39
to build Enterprise Value it's building the collective consciousness of the organization the skills and how they
00:56:44
collaborate together towards a specific outcome and so knowing how to staff that up is the
00:56:51
job I think the reason why first-time Founders feel like they have to learn this lesson themselves is because
00:56:57
everything you've just said is an unknown unknown like they don't even know that they don't know it so they stumbl they hire the sales guy because
00:57:02
they were their friend from high school and then [ __ ] and then they go through the pain and I say this because
00:57:07
I'm so unbelievably passionate about it I went through the same BS I hired my friend who worked at Prada to be art account I hired a guy I met at a rap
00:57:14
battle to be my marketing director who who was literally playing video games for a living at 30 years old um and I
00:57:20
went through this whole thing and then at maybe three four years into my first business I accidentally hired someone
00:57:27
great like through no intention of myself accidentally I saw the net impact they had and I thought oh my God over
00:57:33
the coming years I learned that the game the fundamental game here is as you said assembling the best group of
00:57:38
people how if I'm a firsttime Founder can I put a system in place to to make
00:57:47
sure that even though I don't know what a good salesperson looks like yeah even though I don't know what an ex good
00:57:52
person looks like I still attract them to my company the simplest way of doing it so the
00:57:59
simplest way of attracting somebody to your business when you don't know how to do the job or know who to look for is to
00:58:07
unfortunately do the job yourself and then once you can break down the job we follow 3DS which is um document
00:58:15
demonstrate duplicate that's how we train anybody so first you have to document everything that you do to
00:58:20
successfully do the job and that's step-by step into a checklist then you demonstrate so you do do this checklist
00:58:26
in front of the person that you're trying to bring on then they duplicate they do the checklist in front of you
00:58:32
what's interesting about that three-step process is that you'll often find when you try to demonstrate following the checklist you don't follow your
00:58:38
checklist and so then you have to adjust the checklist until you actually follow the checklist and then when you can consistently follow that checklist and
00:58:44
get the output then you can have them do that checklist and so I think this is why bootstrap Founders uh I think often
00:58:51
times will find they they tend to know more about more things because they had to learn them in order to teach them now
00:58:59
what's really interesting about what you said about accidentally finding that that star at 3 or four years in is that
00:59:04
I think that happens to almost everyone well hopefully it the people who end up making it it happens to almost everyone
00:59:09
um because then you realize oh my God like if I had four of these people like we could change the world right say
00:59:15
something as well the other Epiphany Revelation I had was the star hired
00:59:20
Stars yeah right and so I think of her name's casy leison of the 10 people she then hired nine of them became the best
00:59:26
people in my company and also I'm not going to say his name but someone else in my business a c player yeah of the 10
00:59:33
people he hired yeah he and everyone he hired was F so one of the it's so as you
00:59:39
go up in the organization with hires the risk and reward goes up and so that's something that a lot of people don't like talking about but I will um which
00:59:47
is if you hire somebody and let's say that they're not a cultural fit maybe they have the skills uh or they are a
00:59:53
cultural fit and they don't have the skill fit and they're a leader what you find often and it sucks is that
00:59:59
everyone it's almost like it's like a tree that has an entirely rotten Branch it's like you end up having to scoop out
01:00:05
three4 of what was underneath because you realize that they were ineffective or they just were against the actual
01:00:11
mission of the business and it's it's harrowing and it's horrible but I try to
01:00:17
give this analogy um to my team because we've had to do it in every business we like it happens it's just part of business
01:00:24
is if somebody goes to the bar and you're at the club and somebody racks up
01:00:31
you know just ordering shots for everybody shots shot shot shot shot shots and then that guy dips that guy leaves we all have to pay the bill in
01:00:39
the moment when we pay the bill when we scoop out the Deadwood when we scoop out the rot from the organization it feels
01:00:46
horrible but that pain isn't because the scooping out the rot is bad it's because
01:00:52
we planted it on bad ground or because that guy ordered all these shop but couldn't afford it and I have a
01:00:57
different analogy because I really want to drive this home because I think it's important is that in the in the relationship world if one spouse tells
01:01:05
the other spouse hey I cheated on you I had an affair that moment is incredibly
01:01:11
painful for both parties and so what it makes you think is oh this was wrong to
01:01:16
tell the truth but it's not wrong to tell the truth what's wrong was cheating
01:01:21
when you tell the truth is when you make it right and so the pain that you often have to to encounter in organization
01:01:27
feels wrong but is right because that was you're you're writing a wrong and
01:01:33
that's where the pain occurs and that's why so many businesses stay stuck is because they have this affair they have
01:01:39
this person and they're unwilling to have that hard conversation or multiple in order to make it right and they stay
01:01:44
stuck for years this is another quality of really successful
01:01:49
Founders that I've noticed which is what you just said is the ability to have the hard conversation sooner and in my first
01:01:55
um in my Folia where there's firsttime Founders they're coming to me and in our like uh monthly meeting saying God
01:02:02
there's this guy who's running the Ecom Division and he's so bad and I'm having to do the job for him what do I do about
01:02:07
it Steve what do you think but then they come back to me two weeks later and they're like he's still
01:02:13
there yeah right A year later and you're like it's still John you know you're like what are we talking about here I remember asking him when at such meeting
01:02:20
uh does JN know that you're unhappy with him oh yeah no so there this quiet dis
01:02:26
faction which I think is a virus right right and what what no one wants to discuss is the fact that everyone else
01:02:32
knows John sucks amen and that that becomes the minimum standard for what is acceptable for excellence in the
01:02:38
organization and so I think like so if brand is what your reputation is externally I think culture is kind of
01:02:44
what reputation is internally and so I Define culture operationalized because I think culture is a very fluffy word what
01:02:50
does that mean right it's the rules that govern reinforcement within organization what do we reward what do we punish and
01:02:55
so the thing is is that there's realistically there's like people have values because they're bundled terms
01:03:01
that lad up many behaviors if I said Rolls-Royce probably would have some
01:03:07
value that's quality over speed probably right and so they would have that but somebody would have to say like what
01:03:12
does that mean right well we hope that we use this as a decision-making filter for how it affects behaviors on every
01:03:20
situation so that when you're in the should I go fast or should I make it right you make it right and there are
01:03:26
other organizations kind of like the speed uh justice and mercy speed and quality both of them are important and
01:03:32
sometimes they sit diametrically opposed and so it's like we have to say where do we sit in the gray so that we can duplicate decision-making across the
01:03:38
organization so that we can maintain the culture and so culture uh you know lless
01:03:44
this is a lot but culture I think this is a drer quote actually U culture Trump's strategy like twice week and
01:03:50
every day on Sunday if you have a mediocre strategy but an unbelievable culture you will crush somebody who has a great strategy and a terrible culture
01:03:56
because culture Lads up to Performance and execution and almost every business is limited by execution not strategy
01:04:01
most business strategies isn't that complicated like let's do a really good job so good that people tell their friends about us and as long as we have
01:04:07
enough gross margin we'll make money it's not that hard right it's just that the doing it is the hard part and so so
01:04:13
when we have these uh they are the spoken and unspoken roles mostly unspoken if someone shows up 3 minutes
01:04:19
late to a meeting and there's 10 people in the meeting and it's supposed to be a marketing meeting and I'm there if I don't say anything I have now said we
01:04:27
have an unspoken rule that if someone shows up 3 minutes slate to a meeting it's okay I've I've reinforced that rule
01:04:32
now if I I've reinforce it by not punishing the behavior or at least calling it out um on the flip side if
01:04:38
someone comes in and I berate them that's also a way of changing Behavior maybe not the right way to do it um but
01:04:45
I could then like what do you do in that situation someone shows up 3 minutes late um first off you would probably
01:04:54
sideline with that person be like hey I don't know if you realized that you were 3 minutes late what happened and
01:05:00
they're like I was on a client call um it went late I'm really sorry or I was
01:05:05
on a sales call for me in my organization clients in sales like will take priority so if you have a meeting
01:05:11
and you're on a sale and you're about to close it close the sale right but if you were just doing nothing and we have this
01:05:18
meeting then this is the priority and so the next time we hop on I'll be like hey guys I just want to address something
01:05:23
John was late he was late because of aale call or when I dm' him right as he got on late I would say hey make sure
01:05:29
you say that and be like hey guys sorry I was late I was on a sales call and then I would say that's fine you're good
01:05:35
to go always go make money yeah and then I'm reinforcing the right thing yeah right and so I think we're very big on
01:05:41
rapid feedback um in the moment because that's how you train Behavior so if you look at if so there's tons of studies on this
01:05:48
but basically if you want to train a dog right um and you want it to sit if you have it sit and then immediately give a
01:05:55
biscuit it learns really quickly if you have it sit and then wait 10 seconds
01:06:01
before you give a biscuit it takes like three times as many repetitions for it to learn that the that the sitting gets the biscuit if you wait more than a
01:06:08
minute it never learns really it just you can see the learning curve the amount of repetitions just skyrockets
01:06:13
until eventually there is no amount but here's where it gets crazy that biscuit is still reinforcing something just not
01:06:19
sitting it's reinforcing the thing that just came before it so if we want people to do something we have to change in the
01:06:25
moment and so when we train and I think that we're we're a training organization we're very good at training whatever
01:06:31
skills um is engineering ways to give
01:06:36
many feedback loops in a short period of time around uh specific skills so I use
01:06:41
sales because it's one that everyone understands if you're training a script with someone at the if you if you let
01:06:48
someone read through a script and then at the end you say Hey you know here here's the things you could have done better blah this is how 95% of people
01:06:54
train it's also doesn't work mhm we set the premise with you're going to read through the script and in the first 30
01:07:00
minutes we might get through a third of it and I'm going to probably stop you like 30 times and if that happens it means we're doing it right so we set the
01:07:06
premise that I'm going to interrupt you a bunch of times and as soon as you say the first line I'm going be like stop say it again say it like this go again
01:07:14
and then they're like okay and they say it and I'm like awesome job do it again awesome job do it again so I reinforce
01:07:20
it as many times I can okay go to the second sentence right now do first and second right do second and third right and you keep working working your way
01:07:25
through until eventually they just say like a whistle they can sing it because they've also had so many repetitions and so many feedback loops that they're like
01:07:31
this is what it sounds like when it's right and I think that the vast vast majority of organizations have no idea
01:07:37
how to train and their entire training their their way of getting Talent is just uh let's hire 10 and we'll just see
01:07:45
who works out rather than being able to take someone and level them up and I think that the ability to train is one
01:07:50
of the largest Alphas that exist in organizations because if you can buy Talent at at B skill and get them to A+
01:07:57
then you net the Delta and profit between what you had to attract and pay the person to come and what they perform
01:08:03
at if you have to use a picking strategy then you have to pay for ex for current market rate of the skill and so you
01:08:09
actually eat into margin because you don't know how to train there are advantages to speed and sometimes it still makes sense to bring in the talent
01:08:16
because maybe the training requires so much time that it's not worth it and so
01:08:21
from a hiring perspective because I we were just talking this is the theme we always want to hire for the smallest
01:08:26
skilled deficiency and so in low skilled labor for example if we have a cupcake uh Bakery and I need somebody to work
01:08:33
the counter that is pretty low skilled labor and so if there's a number of
01:08:39
skills that are required being able to be on time smile be nice those things are bundled terms that have many skills
01:08:45
underneath of them right whereas teaching someone how to use the register might take like 30 minutes and so it
01:08:52
makes sense to hire for attitude and then train aptitude when you have low skilled
01:08:57
labor when you have really high skilled labor I can't teach someone 10 years of
01:09:03
being a CFO for m&a just just an extreme example right and so in that instance we
01:09:10
still hire for the smallest skilled deficiency but I can probably teach someone to be nice under these
01:09:15
circumstances faster than I can teach them to be a CFO if they have everything that I want here obviously you would
01:09:21
want both but the world is imp perfect and so we just try to hire for the smallest SK Gap and attitude is a series
01:09:28
of skills and so instead instead of thinking of things as an attitude and aptitude just think of everything as skills and then we hire always for the
01:09:34
smallest efficiency mhm the thing that's easiest to train up yeah okay one of the
01:09:39
things that's so Central to that is we were saying about giving people feedback and I wrote down most companies and most
01:09:46
entrepreneurs and Founders are scared to give Petty feedback oh because if like I
01:09:52
might notice you're making a slight error yeah but if feels Petty to point that out it feels like I'm some kind of
01:09:58
rude dictator yeah why is that so important and how do you create an
01:10:03
environment I'm totally good with that yeah I a lot of people aren't I I have lots of managers on my teams and they don't want to offend people their
01:10:09
Central focus is too much on being nice and it's dude kind not nice it's one of our one of our one of our cultural you
01:10:16
know I wouldn't say it's not the one on the site but things that are repeated internally all the time K not nice is
01:10:21
one of the big ones which is that you're actually being unkind to someone by not maximizing the likely that they succeed
01:10:27
in their role and people don't lose jobs because typically because of one thing it's
01:10:32
usually a hundred small things and so if we can immediately fix those hundred Small Things most people want to do a
01:10:38
good job and most people want to succeed and most people want to move up and we can maximize the likelihood that those
01:10:43
things occur if we help them and this is where the culture is there
01:10:49
if on that first day like I said we say we're going to work through the script and we're only going to get through a third of it I'm going to stop you 30 times to correct you we've already kind
01:10:55
of set the expectations of how things go here like we will fix things and we will fix them fast and it's understanding the
01:11:02
difference and I we teach our teams this is what is the difference between an insult and criticism so criticism is a
01:11:09
discrepancy between actual and desired so you were supposed to be on time and this week you were late twice and so
01:11:15
that is discrepancy and you're lazy is the insult and so the Judgment that's
01:11:21
associated with the discrepancy is insulting someone pointing out the discrepancy is purely criticism and
01:11:26
that's objective and so if you want to improve the team remove insults focus on criticism and tell them what to do
01:11:32
instead and so the easiest way to think through this I think is stop start keep
01:11:38
so I'll tell you a real story so we had um we had a we had a a director level so
01:11:44
a relatively High person um in the organization who was having um behavior issues uh oh said differently everyone
01:11:52
thinks you're a dick and so so he ended up making his rounds of the executive team uh and
01:11:59
having a sit down with all of them because he was really proficient at the scale he's high performer like good at what he does just no one liked him and
01:12:05
so um he talks to four different Executives and the behavior didn't change and so he finally came to to my
01:12:12
office and he was like a little bit worried and he was and he was like am I going to get fired and I was like no HR will fire you if you're going to get
01:12:17
fired you're not going to meet with me what are we talking about um but when we sat down I said Okay I want to be clear
01:12:25
I want to decrease the likelihood that people call you a dick in the future I was said does that sound like an agreeable goal and he said yeah I don't
01:12:31
I want that I was like okay good I also don't care if you are a dick I just care that everyone else thinks you are and so
01:12:38
I just want to minimize likely that I get drawn into this ever again so the reasons that they are calling you
01:12:44
a dick we need to dive into that because every other conversation you'd had with you know some of the leaders was just like hey man stop being a dick and the
01:12:51
thing is is what do you do with that nothing you just get insulted and then you have nothing to do and so
01:12:57
instead it's like okay when you cut people off when they
01:13:02
talk stop start keep doing do this instead shut up so when someone else is
01:13:09
talking wait until they finish and if you're not sure ask if they're done it's like
01:13:14
okay when uh you give unsolicited advice on how they should run their Department
01:13:21
don't or ask if they want it if if they say no don't say anything and so we
01:13:28
identified three or four behaviors that he was doing and I said just do this instead and literally the next week
01:13:34
people were like what happened to him he's like a new man and the thing is is that he wasn't a dick he just didn't
01:13:39
know how to behave and so if you want to teach teaching has to come from conditions and a behavior and so if
01:13:46
you're trying to get someone to be different you have to give them the conditions under which they need to change so when someone says this if this
01:13:52
occurs there's a condition and then this is you need to do and so the vast majority of training that exists does
01:13:58
none of that it's just people shouting at each other insulting them and saying hey you need to level up you need to you
01:14:04
need to get you know you need to increase your performance what does that mean and so I think one of the easiest
01:14:10
ways to identify the actual Behavior because that's actually the tough part is like why do I think he's a dick why
01:14:15
do I think she's lazy because I want to insult them but that's not so how do I help her it's like okay why am I
01:14:22
describing her this way okay so when I slack she she tends to be slow in her response so sometimes it takes an hour
01:14:28
sometimes three hours I'm like okay so I'm going to gather that data and be like okay so when I talk to her I'm like I'm going to have this this branch of data the next thing is when I get stuff
01:14:36
uh you know projects from her they are incomplete I feel like they're not all the way fleshed out I'm like okay that's
01:14:43
a second second bucket um the next one is that when she shows up on Zoom she looks disheveled I'm like okay so now
01:14:50
when I talk to Sandy I'm not going to say hey Sandy you look lazy need you to level up a little bit here otherwise
01:14:57
we're going to have issues and have to put you on a pip performance Improvement plan right instead of saying that just
01:15:02
put her on the performance Improvement plan without saying it's performance Improvement plan and just say when you show up on calls change
01:15:10
your background to like the the standard company setting so we don't see your bedroom right and and make sure that
01:15:15
from the waist up you look professional and what do why I mean by look professional have a collared shirt and
01:15:21
put your hair back okay now some people like how does that work at in woke politics no idea deal with it in your
01:15:26
country but like you should have a culture where you can say stuff like that the second thing is that right now I need you to turn on slack
01:15:32
notifications and I need you to respond within within 10 minutes okay during work hours after work hours fine but you
01:15:39
know 9 to5 you have to respond within 10 minutes do you think you can do that yes and so the end goal here is like I will
01:15:44
get everyone to stop calling you lazy and this is how we do it it's interesting because it goes back to
01:15:49
something you were saying earlier where you were saying specifics versus vague yeah prefrontal cortex versus amigdala like insult is amigdala totally can't do
01:15:56
anything with that but if you make it specific then action is more likely to occur and useful action is more likely
01:16:03
to occur um on on this point of a person who's listening now who's an entrepreneur they've got a business yeah
01:16:08
and they're thinking about making those first hires I want you to throw a proposition at you to see what you thought of this one of the things that I
01:16:14
think can help you not [ __ ] up in the hiring process especially early is if you just live it with the permanent
01:16:20
assumption that you are bad at hiring so I live with the permanent assumption that I'm bad at hiring because I've got
01:16:25
biases there's things I don't know about certain things Etc and when you start with that assumption that you are really
01:16:31
really bad at hiring you try and decentralize the decision- making so one thing I say a lot to Startup Founders is
01:16:38
if you're hiring a salesperson create an interview process where there's five people and one of them might be you and
01:16:44
the other four are the best salesp people you've ever encountered in your life like who sold you your house yeah
01:16:49
and ask them ask them to be part of the interview process how does that sit with you I think it sits great and I think
01:16:56
that the amount of references that you go for is proportional to the importance of the role okay so say I'm the
01:17:02
co-founder of school um when he so he was a non-technical Founder who school what is school sorry oh so school's uh
01:17:07
school.com is uh a platform for building communities right now it's online but we have an inperson component so that
01:17:12
people can meet online then meet in person it's awesome and so that's the only investment that I've publicly uh
01:17:19
Associated myself with outside of acquisition. comom so it's a very big deal it's something I believe in a lot because it's education it's where
01:17:25
education and media meet um Sam is the is the is the founder of
01:17:30
school and he is not Technical and so he knew that to build an exceptional
01:17:35
software product you need worldclass talent and so he interviewed 600
01:17:42
developers to find Daniel who' become the CTO of school and he asked everybody
01:17:49
to know who the best coders were and then he talked to all those people and then he asked them who the best coder they knew was and he talked to those
01:17:56
people and then he asked them who they thought the best coder they knew was and eventually like Daniel's name came up as
01:18:02
like god tier he's like if you can ever get this guy he'd be amazing and so he ended up finding a way in to find Daniel
01:18:10
and then he ended up becoming a co-founder of school as well and what's interesting about that process is that
01:18:17
it actually Lads into uh rapid learning and so when I was a consultant you I was
01:18:24
22 years old and I would go and have to give presentations to fourstar generals right about about weapon systems that I knew
01:18:31
nothing about cuz I was you know chugging beers like 12 months earlier right um and so how do you sound
01:18:37
intelligent in front of somebody who has 30 years more experience than you do and
01:18:43
so this is the Consulting process for Rapid learning first is you find five experts
01:18:49
so you ask the one person you're like hey tell me the five people you know who are the best at this thing and then you ask them who are the five people you
01:18:55
know who are who are who also know a ton about this thing and for each of the interviews you take all of their their
01:19:01
information down of like what do you think about this what do you think about this what do you think this and what happens you start mapping kind of like the E the information ecosystem and the
01:19:08
reason you talk to experts first is that there's no lack of information like you can Google whatever you want the problem is there's too much and so the filter
01:19:14
becomes where the highest point of Leverage is and so experts have spent years filtering out for what's important
01:19:19
and so then you basically rapidly consume the most filtered information and then you reor organize the
01:19:25
information and so this is what a typical analyst will do as a consultant is like I would so for the space and cyber project that I did I we had 600
01:19:32
pages of notes from all the interviews that we did first step is you recategorize all all the newes by
01:19:37
category so it goes from raw notes to categorized notes then from there you distill and consolidate notes into what
01:19:43
are the what are the TR truths or the the most distilled beliefs that we have
01:19:49
about these particular in this case weapon systems but it could be whatever and then from there you're able to
01:19:55
generate your inferences for what the what it looks like when it's right what the problems are what potential
01:20:00
Solutions might be and then that's fundamentally how you say this is what we need to do next that's if you're trying to learn something but in talking
01:20:07
to all those people it actually works the same way because the interview process the higher up the talent is the
01:20:13
more I would encourage entrepreneurs to use it as a learning process as a consultant and so I present somebody who
01:20:19
wants to come in for this role the actual problems of the business for which they would have control over and
01:20:24
say how would you solve these and so then they tell me all the things that they would be considering and what they're thinking about and then I'll ask
01:20:30
the next guy what he thinks and what he thinks and what he thinks or she thinks and then all of a sudden one I get free consulting which is amazing but secondly
01:20:36
you can tell by how the quality and quantity of metrics that someone tracks
01:20:42
how good they are at a particular scale and so this is fundamentally what separates beginners from experts and so
01:20:48
beginners typically have binary thinking in terms of outcomes either it worked or it didn't work an expert for example for
01:20:53
a marketing campaign isn't going to say oh marketing doesn't work or ads don't work they're going to
01:20:58
say this particular campaign didn't work because our click-through rate was too low or because it was sending traffic
01:21:04
that wasn't qualified and we weren't converting enough on the page or we didn't have enough people who were taking the second step in our four steps
01:21:10
and like they can break down any part of those any part of that Continuum if I'm interviewing a salesperson and the
01:21:16
person says and I say okay how are you going to affect these metrics what behaviors are are you going to do so to
01:21:23
the same degree about vague versus spefic specific if they give me vague things back I'm going to dial in and say no what are you going to do that's going
01:21:29
to change that and by the way this is a wonderful way to teach in the organization how what they do makes a business money and so if you have like a
01:21:36
customer support rep for example and you say Hey how do you make our company money if they can't explain it to you
01:21:43
they probably aren't doing it and it sounds as simple as it is but if someone says well you know I answer customers
01:21:50
questions and it's like how does that make us money now if they're able to say when I answer customers questions I
01:21:56
increase the likely that they refer other customers and I increase the likelihood that they stay and continue to pay for us so I help us get new
01:22:02
customers by delivering an amazing experience and I get the customers that we have to continue to pay us and if it
01:22:08
makes sense I recommend other products and services that we have that I can introduce them to sales guys who can explain that so we generate even more
01:22:14
revenue from them I'd be like one if you can articulate that you're probably not just a front like us you're probably a
01:22:20
director right and so that level of nuance the specificity is what shows
01:22:25
expertise and so when I look for and I'm interviewing uh for candidates I first I
01:22:31
I want to gather this once information as I can I want to drain as much knowledge as possible but I'm also really looking for the quality and
01:22:37
quantity of metrics they track and behaviors that they do to influence those metrics so in the hypothetical
01:22:44
problem that let's say we're trying to solve uh we have low clickthrough rates I'd be like okay this is the problem we have how would you approach changing it
01:22:51
right and then that actually gets me to understand what they would do in the organization because it's very easy to
01:22:56
say uh you know I'm going to come in and let's say a sales director I'm going to come in and I'm going to I'm going to improve the the sales team I'm like okay
01:23:02
cool what are you going to do you know I'm going to coach the guys up I'm like okay what does that mean and so just continuing to ask what does that mean
01:23:08
how do you do that until they're like okay well I'm going to meet with the guys every single morning and we're
01:23:13
going to do role play all right how do you role playay well we're going to start with the script and we're like the more detailed they get the more I
01:23:20
believe they can do it because they've actually explained what actions they will take if someone can't dial into
01:23:25
actions then it's very unlikely that they're going to take them and so what I just outlined is basically Three core
01:23:31
things so one is the quality and quantity of metrics that they track the second is the behaviors that they're going to do to influence those metrics
01:23:37
and then lading up to Third how do those metrics and these behaviors influence the revenue in the business if they can
01:23:43
explain that clearly you have a winner all of that is requires them to know if the person's
01:23:52
not bullshitting and also to know like what metrics matter right cuz someone could sit in an interview if for my firsttime
01:23:57
founder say a bunch of big complicated words it sounds good I hire them and that's really what I'm trying to
01:24:03
mitigate here is how do I not let a [ __ ] a pass me so assume I know nothing let's start there what do you
01:24:10
think customer service means and so if someone really has expertise so
01:24:17
Richard fan was famous this the physicist which is if you can't explain it to a child then you don't understand it well enough and so if they do confuse
01:24:24
you it means that they don't understand it or they're doing it purposefully neither of which are good scenarios you
01:24:30
said something during during that explanation you said you were talking about your like your founding partner at
01:24:36
school and you said that he was pursuing a CTO and he said if we can get this guy
01:24:42
he'd be amazing yeah so many entrepreneurs that are starting in business have that thought sometimes
01:24:47
they think if I could just get that guy from that amazing company to come join our garage where we're building this new
01:24:53
startup it would change our fortunes but how how do I get a truly
01:24:58
exceptional person who is being paid [ __ ] tons of money who has a comfortable job who has security to come join me in
01:25:05
my bedroom well I think there's there's the soft and the hard side right so the hard
01:25:11
side is the is compensation maybe you don't have as much cash so it's like you're going to have you know a few
01:25:17
levers at your disposal so you have what do you pay them in cash what's their upside if there's Equity or shares that
01:25:22
you're going to give them this is obviously if it's soft software business you can and I'm you know it's probably worth segmenting this so if you're not
01:25:28
in a software company which is probably the vast majority of people listening to this there are four elements within
01:25:34
Equity that that that exist you have control so who gets to call the shots
01:25:39
you have risk what happens if everything goes wrong who's liable you have profits
01:25:45
which is the cash flow of the business who gets distributions and then basically sale or Enterprise Value when
01:25:51
we sell or if we sell who gets to participate in that upside those are kind of the four elements of equity now
01:25:56
the thing is is that you can obviously Grant shares or you can give stock in a company that's one way of doing it but
01:26:03
you can also basically contract around any of these things now most of the times they don't want the risk and they
01:26:09
probably won't get the control uh if it's your company so you really just have profit and you have uh and you have
01:26:14
upside in terms of uh a sale and so you can contract these things and there's
01:26:20
lots of structur so I'm not going to get into legal around this um but asking somebody what do want sometimes it's
01:26:25
just a very powerful way of beginning this and my favorite question for these types of scenarios is asking what would
01:26:31
it take so when you have this guy it's like man it would be amazing like how do I sell this guy I just ask him what would
01:26:37
sell you so I say what would it take because I don't know he'll tell me and I
01:26:43
love that frame because it assumes yes it assumes you're going to come so what would it take how so many of the
01:26:52
books that you you write and so much of the content you make centers on this idea of sales yeah and it is a sale
01:26:58
isn't it totally and I I always think about the Steve Jobs quote where he met with was it John Scully who was working
01:27:04
at like Pepsi and he said do you want to consider continue selling sugar water for the rest of your life who you want to come change the world yeah um how
01:27:10
does that sort of emotional psychological element of this self factor into it persuading someone exceptional to come and join your
01:27:16
mission I think it's the amigdala story that we started with the nasal strip thing which now has actually reared its
01:27:21
nose multiple times poked its nose in a few times here but I think that pitch that you're giving to a potential
01:27:27
co-founder or potential early hire who's going to be a leader is the same more or less that you'd give to an investor it's
01:27:33
almost the same pitch except instead of investing Capital they're investing time they're investing their life they're investing their expertise but
01:27:39
fundamentally you're asking for investment I'm just asking you there's also this weird question
01:27:45
which I've I've actually never asked anybody but Founders often struggle with
01:27:50
do I hire naivity because that's going to probably create new solutions to Old problems like the young Scrappy kid that
01:27:57
gets Tik Tok or do I hire experience which is going to be more expensive more conventional and safe and I see some
01:28:04
companies lean too far either way yeah I have actually fairly strong
01:28:10
opinions on this oh great so I actually think it's um and I was talking to the CEO of butcher boox about this
01:28:15
particular thing um last week I think it's a barbell strategy
01:28:20
where you have people on either ends and very little in the middle interesting so I love lots of young hungry people who
01:28:28
are here for growth and want to learn and are ready to work long hours and just go all
01:28:34
in and the people at the call it the L the back half of their career that are
01:28:40
here that they they've made enough money they know they can get a job wherever they feel like it you're not doing them
01:28:46
a favor by giving them a job and they're not what I a term I hate which is careerists they're not obsessed with
01:28:52
their title they're not obsessed obsessed with their career path what their promotion plan is going to be they
01:28:57
basically have a litmus test which is like I have to have make about this to get to come in and do this with you but
01:29:02
they actually just really love the work and so these people are learning so the young people are learning and and
01:29:09
overcompensating with tons of hours and Reps and these people are bringing their experience to the game and creating
01:29:15
significantly more leverage with strategy the people in the middle are the ones that tend to be the pain in the
01:29:20
ass for everybody and I don't think and be clear here I don't think this is actually an age thing I think it's a
01:29:25
perspective thing so it's just are you here for growth or are you here to share
01:29:31
what you know and I think that it's the people in the middle that are like well I'm bringing something but I need some
01:29:37
it's like this kind of tit fortat relationship that um I would say the vast majority of people that don't work
01:29:43
out are in that bucket and what role does naivity play in Innovation here
01:29:49
because the kids that don't know the rules yeah are more likely to stumble across nuances right I think yes
01:29:56
uh you can fundamentally you can disrupt any industry if you don't know how it's supposed to go and so but that's I think
01:30:04
that really teases out something we said at the very beginning which is um starting from first principles which is
01:30:10
what are the few things I know to be true and then basically forgetting everything else and when you build from
01:30:16
those assumptions up you end up building a lots of different paths up the mountain that may or may not have been Trot in before I think one of the one of
01:30:22
the one of the most um ating things that can happen sometimes is that like you rederive a solution that already works
01:30:28
and you're like okay well now I know why this works right and I think but I think that's actually then you have more confidence in the path and you're like
01:30:34
okay that's fine but now I know why we're doing this not just because other people did it but because I understand why it works and so I think it just
01:30:40
comes down to what are the few truths that I know to be true and going all in on those things like I know that if
01:30:46
customers love my product they are more likely to tell other people about it than if they hate it that I feel very
01:30:51
confident so then we say okay what are the things that must occur in order to get someone to quote love my product AKA
01:30:57
increase the likelihood that they tell their friends about it or post about us and so now there's and you can break
01:31:02
this and again this is where quality and quantity of metrics matter so it's like how how much more Nuance can I break and
01:31:08
break this up into small pieces so it's like okay at what time do we deliver these messages or around what
01:31:13
experiences that have high likelihood of them posting can we decrease the friction around uh them sending friends
01:31:19
how can we make it both easy and how can we incentivize it and so all of these components whether it's a service business a physical products business a
01:31:25
software business it still works the same way is you know and for each each customer for example as we're taking
01:31:30
someone through this I have four Milestones that I look for which are the four RS so how do I get them to review
01:31:36
my product how do I how do I well in order it be how do I retain them immediately how do I get them to review
01:31:43
my product how do I get them to refer somebody and then how do I resell them
01:31:49
and so they're basically those for RS is what I try and take every customer through it's a very simple framework right when you think I was like oh man
01:31:56
customer success what does it mean it's just like well these are the four things that I want to occur and so all I'm trying to do is reverse engineer what
01:32:02
activities increase the likely that each of these four hours happen this year 55% of businesses
01:32:08
globally are utilizing AI in some form it's become so integrated across every point of my businesses that it's hard to
01:32:14
remember a time when my team and I weren't using it Adobe Express who sponsored this podcast is a prime
01:32:19
example of a tool our team uses day in and day out it's generate image tool only needs a few words describing what
01:32:25
you want and using AI it returns many images for you to choose from if you're watching see how quick and easy it is
01:32:32
and you can try it yourself for free the customizable templates mean you or anyone in your team can create something
01:32:38
that stands out without starting entirely from scratch or being a design expert it's the type of technology that
01:32:44
differentiates Adobe Express from being just another design tool and makes it the quick and easy create anything app
01:32:51
search Adobe Express will download it for free in the the app store right now well I want to go through the the four
01:32:57
RS but I also I think that what comes before the 4 RS is knowing how to get customers in the first place which is a
01:33:03
was a tricky one and actually maybe even the thing that comes before that is being psychologically prepared for
01:33:10
the the toll and the roller coaster that business is I found this um found this
01:33:16
graph of yours oh God yeah and I think for any founder starting a business it's
01:33:21
important to for them to understand this cycle um I think you call it like the crash burn cycle or something because if
01:33:27
you're not aware of the cycle when you hit certain parts of it you're probably going to think that there's something wrong with you yeah and but there's a
01:33:33
certain inevitability to this crash cycle I'll put it on the screen for anyone to see yeah this is this is the
01:33:39
entrepreneur life cycle until you learn how to break free from it and so there are six
01:33:45
stages you have stage one which is uninformed optimism this is where you
01:33:52
see your friend or you see something online and it looks like they're making money or it looks like there's some opportunity and you think oh my God that
01:33:58
sounds amazing and you have optimism because it looks great but it's uninformed because you have no idea what
01:34:04
it entails so then you dive in and you say okay I'm going to pursue this this thing whatever is it baking cupcakes or I'm
01:34:10
going to I'm going to do lawn mowing or I'm going to do crypto trading whatever second step is you get into it and
01:34:15
you're like oh my God I don't know there's so many things involved in this and this is significantly more complicated than I I expected so then
01:34:21
you become an informed pessimist you now know uh that it's hard or
01:34:26
significantly harder than you expected the third stage is you have your crisis of meaning or the value of Despair so
01:34:34
you're continuing to do this stuff it's continuing to not work and you keep working and it keeps not working and so
01:34:41
this is the step and this is the this is the point of Truth and this is the cycle where the the paths of the entrepreneurs
01:34:48
split and the vast majority of people take this next step which is they then say you know what
01:34:54
there's that thing over there that my other friend's doing maybe I should do that instead and so then they hop back
01:35:00
to uninformed optimism and then they go boom to inform pessimism and they just go around and around and around and they
01:35:05
live the same six months uh for 20 straight years now the other path of from the
01:35:14
valley of Despair is sticking with it and so then you become an informed
01:35:19
Optimist because now you understand you still understood all the bad stuff but you also understand the good stuff and
01:35:24
how to avoid the bad and maximize the good and then once you're there you do you stick on that path long enough and
01:35:30
you end up achieving what you originally thought was really easy and fast and so that cycle this is more or less the um
01:35:37
the Alex rosi life story which is why I can so intimately describe you to the steps is that I call that Loop and that
01:35:45
uh the person on the other side the woman in the red dress which is probably my favorite part of the Matrix movie
01:35:52
which is Neo who's the the main character uh is in a program to teach him one thing and so he's walking uh
01:35:57
through the crowded streets of what looks like a New York City with Morpheus leading him and uh he's drawing on about
01:36:04
something that he's supposed to learn and he says Neo were you listening to me or were you looking to the woman looking at the woman in the red dress and and
01:36:11
Neo was looking at the woman in the red dress as Morpheus is talking and then he says look again and he looks back at the
01:36:18
one the dress and it's agent Smith with a gun point at his head and in that moment he's like freeze
01:36:24
and he explains that you're either one of us or one of them and they are the
01:36:31
people who are Sentinels sent to destroy us and so what appears to be the woman in the red dress is actually a a an
01:36:38
agent from the system meant to destroy the opportunity that you're in right now and so I love the woman that red dress
01:36:44
so much because it's so real because you're in this thing you're in this relationship with your business and
01:36:50
you're like you know this girl seems great and then you you get to know her and you find out she snores when she sleeps and all of a sudden it's like you
01:36:57
know uh you know you see you see the sweatpants and no makeup in the morning and you realize that sometimes she's
01:37:02
Moody whatever but you get to you start to get to know you're like I don't know if we're going to get married like you know this is kind of where we're at and
01:37:08
then you see a woman in the red dress and you're like you know what I think that's the girl and so you quit this
01:37:13
relationship with your business and you get into that relationship but then you realize that that girl has crab she has a crazy ex-boyfriend and you're like oh
01:37:19
my God I didn't want to deal with any of this stuff right and so my CF so was one of the first people that were like oh my
01:37:25
God I hired that person it changed everything so my CFO in gym launch um had taken four companies from 0 to 100
01:37:30
million um she had done over 40 m&a transactions her largest one was 5 billion super experience um she was the
01:37:37
very end of her career and she was like I'll take you guys I'll I'll take this one last ride with you guys and so you
01:37:43
know mind you Leila and I I'm 26 or 27 at the time Leela's 23 24 and we're sitting across the table from a very
01:37:49
experienced business person being like please help us and so one of the things
01:37:54
that she taught me that I I'll never forget is she said the grass is always greener on the
01:38:01
other side you just don't know that it's fertilized with [ __ ] and she and she she's Southern so
01:38:08
she have this deep southern act she's like there's always [ __ ] yeah [ __ ] everywhere and so she's like I've been
01:38:13
in enough businesses to know that all businesses have [ __ ] and so you just have the [ __ ] you don't know about and the [ __ ] you do know about and you're in
01:38:19
this business and so this is the [ __ ] you know and that has been so profoundly
01:38:25
impactful in my life because it was so hard for me to break the cycle really hard for me um I mean I gave you my my
01:38:31
life story of the many businesses that I've been involved in and so like the entrepreneurial add has been so real for me and I've made some of the biggest
01:38:36
career Mistakes by just pursuing and splitting my attention between multiple Endeavors and I can say truthfully that
01:38:44
this 2024 was the first year and this is now 2025 the first time in my life where I haven't experienced fomo so fear of
01:38:51
missing out and it was one of those things things that I just always had I would see somebody doing really well like oh man I mean I should be getting
01:38:57
into that like that I shouldn't be doing this I should doing that um and it was it was one of those things it's kind of
01:39:02
like being happy where like you don't realize you're happy you just look back and you're like you know what that was a really good year you know like you kind
01:39:07
of like you kind of see it in retrospect what I realized was that now when I hear someone say like oh my God I crushed it
01:39:13
with this thing I think that's amazing for them I'm sure there's tons of problems that I don't know about and that's amazing but I'm going to keep
01:39:19
doing this thing because this is the only thing I know how to do pretty well and I'm just going to keep compounding my information advantage against everybody else who thinks this is easy
01:39:26
and wants to get into it and so um I think that that every any any massive company that
01:39:33
you know of has existed for multiple decades and in order for something to exist for multiple decades the founder
01:39:38
has to stay focused on that thing for the whole time and I measure focus by the quantity and quality of things that
01:39:44
you say no to and I measure commitment or I Define commitment as the
01:39:50
elimination of Alternatives and so if you think of marriage as the commitment then it is the ultimate commitment
01:39:55
because you've limited literally every alternative besides this person and so I think that many business problems and
01:40:01
many entrepreneurs would 5x 10x their business if they simply gave themselves
01:40:07
no way out this is what I'm doing and I'm I mean the term you know burning the boats
01:40:13
but I'm eliminating all Alternatives and structuring my life such that I I make
01:40:18
it very difficult to pursue the Alternatives and I think by doing that you can actually conquer this this cycle
01:40:24
and make it past the split where you go uh Crash and Burn and then restart the Doom Loop or make it to informed
01:40:30
optimism and then eventually to the achievement that you want there's so much there there's so
01:40:37
much there but it's such an important Point um so where should I start so at that
01:40:43
moment here this crisis of meaning moment yeah what I see so much of is
01:40:48
entrepreneurs not necessarily quitting the old thing but just taking on something else and get entrepreneurs
01:40:54
will come up to me in the gym and they'll say hey Steve um just want to let you know what I do and see if you can offer me any advice and then they'll
01:41:00
list three things they'll say I'm starting this crypto thing with my friend Dave I've got this hair business where we're selling on Ecom and I've got
01:41:06
this other thing and they almost assume that the more things they're doing the higher the probability that they'll be
01:41:12
successful in something my mom was that my my mom has
01:41:18
started 30 businesses and I watched for my whole childhood how she was start a
01:41:24
hairdressing salon and then the person down the street running an estate agents would come in and say we're making loads
01:41:29
of money as an estate agents she'd start that that business would suck she'd hit this moment of crisis of meaning she' then start a Furniture business and a
01:41:37
and then she she so she jumped between 20 to 30 businesses and it's kind of
01:41:43
still happening now where they last six months they eventually go bust she sort of like you know like the monkeys that
01:41:48
swing to the next brch swings to the next thing and there's never been the escape Velocity that comes from this formed optimism
01:41:55
part so yeah this it really rang true for me in every sense of the word this idea of like a focus going against all
01:42:03
of your instincts and your emotions but being pivotal to achievement I think
01:42:08
entrepreneurship is far more a war of the heart than it is a war of the mind like we can understand what we should do
01:42:15
we just don't do it and I think that's why um we are so much better at giving advice than we are at following it so
01:42:21
most people if they just followed their own advice they'd be successful right and so um with this
01:42:27
kind of valley of Despair I call it um Niche slapping it's like don't make me nit slap
01:42:33
you which is like when you have three things going on it's like let me like slap you into just picking one because
01:42:40
the thing is is that any of them can work but none of them will work unless you pick only one because it's actually
01:42:48
in my opinion an exercise and arrogance to assume that you doing three things is
01:42:54
somehow going to beat somebody who's doing one and I can promise you the competitor who is going to beat you is
01:42:59
only doing that one thing and you think a third of your time is going to be there no it's not going to I think it's
01:43:05
arrogant and so there's actually like an under there's like an underpinning of egoo underneath of this and I say this
01:43:10
to somebody who did this so like when I had the launch business I also had my six gyms I also had a chiropractor
01:43:16
agency and I also had a dental agency and so I would introduce myself I'm like oh I own lots of companies but I think
01:43:22
one of the biggest Mis conceptions when you're an entrepreneur is not understanding the difference between being an owner and being the CEO and so
01:43:28
they might hear that you have a portfolio they might hear that I have a portfolio and be like okay well they have a portfolio so I must model that
01:43:33
that guy's tall I should play basketball doesn't work that way right I should be so if I want to be rich I should fly private doesn't work that way right um
01:43:41
it's conflating order and so we must do these things in order uh
01:43:48
to get the outcome we have to concentrate on only one thing in order to get the outsized return
01:43:54
and that spreading of attention especially when you're newer in the entrepreneurial career it's like you
01:44:00
already don't know so many things how do you now want to have three sets of unknowns that you want to try and Conquer at the same time and the the
01:44:07
fallacy of thinking is that I'm going to try all of them and see which one works but none of them will work because
01:44:14
you're waiting to see which one will work because you can force in my opinion you can force one thing to work provided
01:44:21
like I'm I'm going to just assume BAS like you're selling you're not selling $5 bills for $4 like like you know the
01:44:27
normal economics of a business like if if if if a real estate business exists there are other people are making money there are hairon businesses where people
01:44:33
are making money there are lawnmowing business where people are making money you can make money in all of them you just can't make money in all of
01:44:39
them at the same and it it's when you walked in today and you sat down on the chair I said like what's going on with
01:44:44
you professionally I remember what you said you said more of the same and better which clearly comes from your
01:44:49
wisdom my my infinite wisdom right well it's just from from from from from suffering um the the the wo of this
01:44:59
like the biggest entrepreneurial mistakes I've made in my career have all come from splitting my attention every
01:45:06
one of them like every single one of them like I talked about how I had the e-commerce business that I bolted on to
01:45:11
my to my licensing company I should not have done that as soon as I did that my my Revenue started slowing down and it's
01:45:17
growth why did you because I was add like I just I was like oh my I don't
01:45:22
want to leave money on the table and I want to I want to be so violent about this you are always going to leave money
01:45:28
on the table that is the result of focus but you're you're leaving a small amount
01:45:34
of money on the table to pursue the much larger money that's on another table of just sticking with the thing that you're
01:45:39
on right now because compounding if I were to show a chart here it's like if you're at year three of your thing and
01:45:47
you want to think about moving to year zero of a new thing you have to compare maybe year zero of a new thing grows
01:45:54
faster but it has to grow faster than year three to four of the thing that you're on right now and I think that's
01:46:01
that people will compare year zero to year zero but not year four to year zero and the thing is is you actually we have
01:46:07
a linear life and so we that is it's an unfair but true comparison of the opportunity cost and every exceptionally
01:46:16
um successful entrepreneur that I know has just stuck with one thing for such an inordinate amount of time and I think there's a quote by um I want to say
01:46:22
Shane per is but he said um success is doing the obvious thing for an
01:46:29
extraordinary period of time without believing that you're smarter than you are and it's just like you we we know
01:46:36
what we need to do and comp so we don't need to make our lives more complex complexity will come
01:46:43
with scale I promise and so just simply trying to do more of what you're already doing well is already hard enough don't
01:46:51
add anything else and so like if you need to write some sort of commitment of like I'm just going to stick with this
01:46:57
then do that but the what happens is we were talking
01:47:03
about the levels earlier about like beating the bosses so what happens is
01:47:08
you know how to beat boss one through three of of the game and so then you
01:47:14
just say okay well I'm just going to start the game over and beat boss I mean this is this time it's going to be different but then you just get to level
01:47:20
three again and then you're stuck again and so people just keep getting up to level three and new and and and new
01:47:27
Endeavors over and over again because they never learned how to get past that boss and so you just have to confront
01:47:32
the uncertainty of knowing that you don't know how to do it but that you will figure it out if you keep doing
01:47:38
enough repetitions and that's where you talk to as many people as you can you see what they said you consolidate it
01:47:44
all you say I think this is the highest likely path it might not work but I do believe fundamentally that if we cut
01:47:49
people's hair well and we do it for a long period of time we will have a thriving business and if we have a
01:47:54
really good model from that thing we might be able to open up another location and if we keep our costs down we might be able to have an actual model
01:48:00
that we could either invest our own capital or bring somebody else and take it national like all of these like I
01:48:06
have yet to find a business that can't get to $100 million a year that has a permutation of it that exists you're a
01:48:13
dry cleaner fine well cool we'll build the model and either we're going to license the model we can franchise the model out we can get outside investors
01:48:18
we can scale it nationally we can do it but the crazy goals are only crazy because people crazy timelines they're
01:48:24
actually very seane goals if you extend the timeline out if you have a a true 10 year goal or true 20- year goal almost
01:48:29
anything's accomplishable I mean almost every multi-billion dollar company is
01:48:34
about you know they get it's usually between like years six and 10 when companies get to kind of like those big
01:48:40
numbers and most people who are listening to this are five years into entrepreneurship but you're six months
01:48:46
into the thing that you've been working on right now and you keep restarting the clock for getting to year 10 every time
01:48:51
you start over and I think that's the part that it took me a very long time to figure out and I think it takes a lot of
01:48:56
entrepreneurs like everyone messes around with a lot of stuff in the beginning because you just don't know what you're doing and so in my
01:49:02
experience it takes about five years for most entrepreneurs that I know to just like find something that works like like
01:49:10
takes about five years to figure out which way is North yeah right and then it takes like another five years and a
01:49:16
lot of people that's it like they they restart they they they go off Crash and Burn um and it takes another 5 years to
01:49:22
build something that can can create generational wealth so it's about a 10year slug and here's the really hard
01:49:28
truth about it if you have a job right now for almost all of that five years
01:49:34
you quit your job because you don't want to work as hard as you are and you want to make more money and as soon as you
01:49:40
quit you will realize that you are now going to work way harder than you were and you're going to make less money for
01:49:46
an extended period of time the one benefit is that you get to claim all responsibility for how little you make
01:49:51
and how much you work because you're like my boss is an idiot and it's me but it's the truth and I
01:49:57
think that in some ways having that um optimistic ignorance is actually one of
01:50:04
the really redeeming traits of entrepreneurs and one of the really hard Parts is that the biggest jump you have
01:50:11
to make gets so immediately reinforced from the freedom you have from being able to you know chart your own
01:50:19
path but that big success of quitting one thing
01:50:25
and starting another you need to immediately forget and I think that fundamentally that is why so many
01:50:31
entrepreneurs keep doing it is because the first time you do it it's the biggest rush ever you quit your job you
01:50:38
do the business and and you get some some first traction and that that first dollar that you make when the new business is like the best dollar ever
01:50:45
right but it such a strong reinforcer that what does it reinforce it
01:50:50
reinforces stopping what you're doing and St starting something else and so I think one of the fundamental errors of
01:50:56
Entrepreneurship is that sometimes the jumping ship to start this thing is the
01:51:01
lesson that you need to immediately unlearn because after that you have to just stick with it for a very long
01:51:06
period of time there's also something in that entrepreneurs don't go into starting a
01:51:12
company with the belief that their hypothesis is wrong so in year one or
01:51:17
seven months in when they realized that their initial hypothesis was wrong they think that means abandoned [ __ ] because
01:51:23
my hypothesis was wrong whereas successful entrepreneurs that I've met especially second time Founders realize that their hypothesis is almost
01:51:30
certainly wrong from the jump and that the process of starting is to correct and to find a new hypothesis I think
01:51:35
about like Mark Zuckerberg in his room with like face swap or whatever it was rating people's attractiveness and now
01:51:41
meta is this like virtual reality AI company yeah but understanding that your hypothesis is wrong from the jump and
01:51:48
that you know this is a process of finding a new hypothesis I think would give you a little bit more p patience as well through these cycles of the crisis
01:51:56
of meaning and so on so two things so one is I had this tweet that went like super viral but it was like uh
01:52:02
first-time founder hey I need you to sign an NDA before I tell you my business idea I know you've gotten I
01:52:08
know I know you have third time founder uh here's everything I have
01:52:15
here's all the documents here's all the projections it's probably all wrong and this probably won't work um but I have a
01:52:20
couple smart people and I think we'll be able to f figure it out it'll probably cost longer and take longer cost more and take longer than we think but we
01:52:26
think it's worth a shot and that things because everyone
01:52:32
who who who's been on both sides of that understand like the entrepreneurs got it because they're like oh my God I was that guy um and all the investors get it
01:52:38
because they're like oh my God I deal with this guy all the time but actually what you just said with the many many
01:52:44
iterations that from your original idea until what actually happens is yet again one of those um demonstrations of the
01:52:51
difference between a beginner an expert a beginner has binary thinking so they think this worked or it didn't work and
01:52:57
if it didn't work then I need a new idea rather than having the Nuance thinking of a master or an expert or Advanced
01:53:03
person who says what about this if I click into it I break it into its component parts what about this didn't
01:53:09
work okay it's not that meta ads don't work or advertising doesn't work it's that we didn't nail the hook in our ad
01:53:16
or that we didn't make our our offer clear enough on the landing page or it was not congruent with the advertisement
01:53:23
or um you know it was the offer itself wasn't very compelling or it didn't have it didn't like it was just this we
01:53:29
everyone's coming in and saying yeah yeah I kind of want that but this is actually my issue we're not solving the core problem so it's it's always in the
01:53:36
in the details it's always in the sifting through the many small things that you find the kernel that ends up
01:53:41
fixing uh the business I mean I know that uh Facebook was trying to fix their
01:53:46
virality issue and they were locked in a room for days trying to figure out how
01:53:52
they could get more users to retain on the platform right people would sign up but then they wouldn't do anything and then they they drop out and so finally
01:53:59
um Zuck just said okay we have some belief that if people have more friends
01:54:07
that they will engage and so they didn't and here's the thing like with the uncertainty they couldn't prove it he
01:54:13
just was like I feel like that's better than them not having friends and so he said all right the new goal is 10
01:54:20
friends in 14 days that's the goal so we have to create the experience so that we can get it to introduce them to 10
01:54:26
people or connect them with 10 people they already know on the platform within 14 days and as soon as that happened
01:54:32
then obviously Facebook took off or continued to grow and so he wasn't like
01:54:37
oh Facebook doesn't work anymore or social networks aren't going to be a thing it's it's usually way smaller and
01:54:43
way the adjustment you need to make is much more nuanced than what you originally expect if the foundational
01:54:49
principle of like cutting hair mowing lawns whatever it's like this problem exists and I can charge a certain amount
01:54:55
and make a profit on it then there's nothing wrong with the business it's just what is the constraint that's holding us back and then usually zooming
01:55:02
into the constraint and realizing there's 20 things that are contributing to the outcome not one and that's where expertise and that and you develop that
01:55:09
expertise by trying and failing yeah and that's and that's just the name of the game and so I think you have to have an
01:55:15
incredibly high tolerance for failure without internalizing it and feeling like you yourself are a failure as a
01:55:21
result of failure well this is it when I started my first business at 18 years old called wallpark social network whatever um I thought the
01:55:28
game was to be right yeah I came to learn from businesses that came after
01:55:34
that actually the game of Entrepreneurship is to be successful and they're two very different things to win
01:55:40
because when you want to be right you not only want to be CEO and you want your hypothesis that you put in that first um Pitch deck to come true and
01:55:46
even when customers are telling you that you were wrong you try and force the [ __ ] hyp yeah but when when your game is to
01:55:53
be successful there's a couple of really interesting things that I observe happen one of them is you I watch Founders say
01:55:58
actually maybe I'm not the best person to be CEO yeah even though I founded this thing maybe I should be Chief brand officer when I think about some of the
01:56:05
top companies in the UK represent just valued at 100 million Jim shark Ben's
01:56:10
business valued at 1.5 billion Julian's business probably valued at a billion I'm involved in some of these businesses
01:56:16
in different ways but um the thing they all have in common is at some early point the founder their ego secondary to
01:56:23
the success of the business they said actually I'm not the best CEO I should be head of brand or marketing product or
01:56:29
product or whatever it is and that's that mindset shift from being I need to be right and I need to be at the helm of
01:56:34
being right versus this thing needs to be successful and this goes back to the
01:56:40
who which is if you if you at some point if you want to have a really
01:56:45
ridiculously successful company it will require more lifetimes of expertise than you can live and so then it's it becomes
01:56:52
a recruiting game like very quickly almost all business becomes recruiting which is how do I I mean if
01:56:59
you if you listen to Zuck talk about it you look you listen to Elon talk about it you listen to to Steve Jobs talk
01:57:04
about it Steve would talk about how the best players that he had in the company he would set aside like a year to 18
01:57:09
months to bring them in amen and he said every time I you know I I I knew who I
01:57:15
wanted and then I would he's like you know I would take some calls with other people and I would just be like but
01:57:21
they're not John they're not John and so he would just keep working on them and working on
01:57:27
them and working them and eventually they're like you know what fine they like give up they're like if this guy's
01:57:32
this persistent like he probably will be successful on but he will take us there and I think that like people are the
01:57:40
highest leverage thing that you that you can bring into the company outside of you know crazy technology I am one of my favorite
01:57:47
videos of all time is where Steve Jobs who you just mentioned talks about hiring tril exceptional people and he
01:57:53
says words to the effect I'll play it on screen he says um people think the success of Apple is a consequence of me
01:57:58
and my talent and my skills but what I've actually done is I've built my career quote on hiring truly exceptional
01:58:04
people doing the extremely hard work of finding them and hiring them and this crazy thing happens when you do that is
01:58:10
it propagates I a players then want to work with a players they also hire a
01:58:15
players and it spreads I think it was this video I've
01:58:20
built a lot of my success off finding these truly gifted people and not
01:58:28
settling for B andc players but really going for the a players and I found something I found that when you get
01:58:35
enough a players together when you go to through the incredible work to find you know five of these eight players they
01:58:42
really like working with each other because they they've never had a chance to do that before and they don't want to
01:58:47
work with BNC players and so it becomes self-policing and they only one hire more a players and so you build up these
01:58:54
pockets of a players and it propagates the thing is is that it's
01:59:01
just like money won't make you happy it's one of those things that like every founder like has to figure out for
01:59:07
themselves but the thing is is and I and I've had obviously a bunch of conversations around this but
01:59:13
like what you think is an a player today is not what you will think an a player is in five years and so I think one of
01:59:21
the the hardest mental hacks around this is trying to project yourself into the future into the size business that you
01:59:27
want to have and say who would be an a player at that size and scale and then
01:59:32
coming back to the present and saying how do I get them to work for me today amen and it's it's really and so as a
01:59:39
mental process for anybody who does have a business right now and has some employees if you like everybody right
01:59:45
now you probably have some version of your a player because every business has at least one hopefully right besides you um imagine your business had five of
01:59:53
those people like you picture in your head you've got that one person now you have five of them how much more would
01:59:59
you make would you would you double would you would you five would you 10x would you 50x and sometimes you realize
02:00:06
you're like no I think I would actually 10x and so if that were the case one Not only would you 10x the company number
02:00:13
two the value of the company would more than 10x because it would no longer be it would be significantly less relied on you and it'd be more reliant on the team
02:00:19
that you've built number three if would happen faster because you would have more barrels that were firing concurrently
02:00:26
moving things forward and those those pieces when put together you have to
02:00:33
then ask yourself from an opportunity cost perspective what other activity could I be doing that would have the
02:00:40
possibility of texing my company doing it faster and increasing the Enterprise Value multiple that's not that and if you
02:00:48
can't find one then it means you're working on the wrong stuff and I think that is one of those um great litmus
02:00:54
tests of like if I can find something and I'll give you a really simple one that's not not human B the talent based
02:01:00
here something as simple as calling your leads so there's tons of research that suggest that you can four 5x your
02:01:08
conversion of leads by calling them within 60 seconds of them opting it for any product you
02:01:14
have if you have all of these priorities they have across the company does any of them have the high
02:01:21
likelihood of four or 5x in your business immediately with very low cost of doing
02:01:27
so less so than just calling the leads within 60 seconds if the answer is no
02:01:33
Then by God why are you not calling all your leads within 60 seconds the fob question would would be like well I
02:01:39
don't have enough people to call our leads within 60 seconds so then we'd say okay what is 4X the revenue of your
02:01:45
company worth okay what does it cost to hire one person who whose only job is to
02:01:53
just call the leads now I recently talked to a Restoration company so they did water damage for homes when they got
02:01:59
hit by storms and he told me he said he was converting 55% of his leads not calls leads and I was like how on Earth
02:02:06
are you doing this and I was like well how many leads a day do you get he said two or three I was like okay so what's
02:02:12
the process he's like oh it's really simple uh my aunt I pay her $60,000 a
02:02:17
year and she has only one job she has no responsibility in the company besides the moment a lead comes in you stop
02:02:23
having sex with your husband you stop you stop you stop cooking you stop loving your child and you immediately call the lead that's the only
02:02:29
responsibility she just has to make three calls a day at the moment the leads come in and he pays her
02:02:35
$60,000 and that brings in millions of dollars of Revenue and So you you're not
02:02:41
going to pay for it out of the dollars you have now you're going to pay for it out of the dollars that you're going to make that you're not making yet because
02:02:47
you haven't done it yet and so pin in that
02:02:52
back to the people I think the hardest time I we call this the swamp at acquisition.
02:02:58
comom but it's usually between like 1 and 3 million is the swamp and I think there's a numberous reason for why it's
02:03:04
such a painful period for entrepreneurs let's say 1 million for
02:03:09
simple math if you have a million-dollar business let's say that you have 20% margins so that means you're making
02:03:14
$200,000 a year in profit for you to get an a player it's probably going to cost
02:03:20
you 100% of your profit to get that a player and so you'll have what appears to be an impossible Choice you'll have
02:03:28
do I sacrifice basically 100% of my profit to bring this person in or do I
02:03:34
work another six hours a day to to do the job that this person is doing both
02:03:40
paths work both are painful and risky because the overworking yourself thing
02:03:46
you can get yourself through that hump and then now you're at maybe 3 or 4 million and that 20% is 800 you can you
02:03:51
can spend 200 you still have cash flow you can still live the downside for the picking the person path is that what if
02:03:57
you pick wrong and this by the way ladies and gentlemen is why entrepreneurs get
02:04:03
outside returns is because we take on outside risk and so this is the this is
02:04:08
the job is that we have to be willing to make impossible choices and the vast
02:04:13
majority of choices for entrepreneurs in the business are impossible choices between two relatively bad scenarios
02:04:20
because the rest of the choices aren't don't even feel like choices because they're obvious of course we should car
02:04:25
leads faster of course we should follow up more of course we should try and onboard faster okay all these things are the obvious ones but when you
02:04:32
have man I'm trying to think of the ones I I'm not I'm not almost all the decisions that you
02:04:39
get stuck with and Elon says this really beautifully he says um running a business is like staring
02:04:46
out to the abyss and chewing glass so because uh the staring out to the abyss component of it is just the fact that
02:04:53
this may never work and you're almost facing existential risk at all times to
02:04:59
the business and the eating glass component is that you will by nature of your role get funneled the worst
02:05:06
problems in the business and the problems that no one else can solve so it's one problems that people can't solve two the worst ones or that they
02:05:13
they don't want to solve and they suck and so you basically become a filter for the worst things and that's why it feels
02:05:19
like a fire every single day in the business because you're the only one who can make the tough call because no one
02:05:25
else wants to choose between these two impossible choices and you're like why is it so hard and the thing is is that
02:05:30
it literally never stops being hard it's that the currency that you pay for in the hardness changes and so you know a
02:05:38
lot of people have this envisionment of like the rocky cut scene of like it must be hard for business but I don't I don't think that's where the hardship comes I
02:05:44
think the hardship is that at every level of business there's new sacrifices
02:05:49
that you didn't know you were going to have to make because if it was just oh I have to work long hours there's tons of people work long hours in their business
02:05:55
and don't don't grow and it's usually because they're unwilling to have a hard conversation it's a different currency
02:06:01
right they have to take on risk it's a different currency they have to um they
02:06:06
have to they have to make some sort of BET right that they otherwise wouldn't have had to make they have some sort of legal issue that they encounter they
02:06:12
have an employee who tries to sue them for some sort of Mal whatever right all of a sudden you're like wait all of
02:06:18
these things are happening and they happen on a regular basis and at each level you unlock new levels of glass
02:06:24
that you get to True through and so this is why like most entrepreneurs in my opinion don't actually quit they fizzle
02:06:32
so it's not a big bang usually it's they just they stop seeking so either they
02:06:37
get content at the level that they're at and they just don't strive for more um and sometimes they say it just wasn't
02:06:43
worth the trade and I respect that if you're like you know what I'm at a million dollar a year and I don't want anymore fine you won congratulations
02:06:48
like you won at life um but most of the time they don't really quit they just stop trying and then they just either
02:06:55
coast and or it just Fizzles into into nothingness and that's just my experience of having I'm sure you've
02:07:01
seen this having gone through like cycles of entrepreneur it's like Seasons it's like oh yeah I came in through even
02:07:06
like in the media and influencer space whatever it's like there's a bunch of guys that 10 years ago it's a different landscape now than it was 10 years ago
02:07:12
some people adapted some of them were like I don't like the they they just they just they weren't willing to chew
02:07:19
the new glass which is how do I learn Tik Tok how do I learn but man blogs were so good it's like yeah and they're
02:07:24
not anymore I talked to an entrepreneur really massive many hundreds of millions of year in sales and he was like dude we
02:07:31
were killing it on infomercials so TV and he's like we just you know we uh we
02:07:37
just we really just have to crack YouTube and I'm thinking to myself like dude it's 2024 like what like you needed
02:07:45
to crack YouTube 10 years ago and he had the resources to do it but it was just a different kind of hard and so most of
02:07:52
the hard is one a level of uncertainty that that goes into it and almost
02:07:58
certain immediate failure because the first thing you're going to do will probably not work and again it's the
02:08:04
iterations of when you get into the new domain you have to transfer your generalized knowledge which is that as
02:08:10
an entrepreneur I will know that this doesn't work probably because I only know four things about it and I need to
02:08:15
know like 400 and so I will get my first shot and I need to get directionally correct and then just keep doing more of
02:08:22
that and so I gave the Consulting way of learning kind of like a new space but if you want to learn a new skill the
02:08:28
fastest way that I do it that's outside of courses or anything is tremendous volume of activity so whether that's
02:08:34
like I want to take a lot of sales calls I want to do a lot of Outreach I want to make a lot of content I want to do a lot of customer success calls whatever it is
02:08:40
you do a hundred of those and then you say what are the top 10% of these okay what did these top 10% have different
02:08:48
than the other 90 and then I say okay well these ones had these three things that were different let's try and do
02:08:53
those three things on the next 100 and then because of the variety of life there's going to be some new variables
02:08:59
that exist that you look at the top 10% of the next 100 and you're like okay we did those three but there's also two
02:09:06
more things that happened in this 10 versus the other 90 now let's do all five of those things and over time this
02:09:12
is how you develop a checklist for making Banger content and Banger videos and I'm sure like there's this clip
02:09:18
David Perell talks about Chris Rock's creative process and he says how is it
02:09:24
that you see Chris Rock at Madison Square Gardens and it's just like 60 Minutes of just fire you're like how is
02:09:30
this guy so funny and it's because what you don't see is the many small clubs and the first club that he goes to and
02:09:36
does a whole hourong set and has like three moments that people laugh a lot about and he's got like five minutes
02:09:42
that are good and the other 55 minutes basically suck and so the next time he goes to a club he takes those five
02:09:48
minutes puts them at the front and then he tries all new material for the next 55 minutes and he gets another 5 minutes
02:09:54
and he continues to repeat this process and put the new stuff at the front until eventually is 60 Minutes of uninterrupted laughing and then people
02:10:01
are like oh my God he's so talented I can't believe that he can just stand up there and talk into a microphone and make everyone laugh cross age boundaries
02:10:08
cross cultural boundaries um cross you know all of the boundaries that you might imagine how can he be so funny to
02:10:14
everyone that's how how can that guy be so good at writing well he looked at the stuff that he wrote he found the best
02:10:20
stuff made it into the the few things that he always does and then kept writing and that fundamentally is the process of learning anything and it's
02:10:26
usually not one thing it's many small things that when added together in aggregate create the outside returns
02:10:31
sorry that was a little Pulpit there I just get violent about skill acquisition like that's what it takes so interesting
02:10:37
but it's so interesting to see your journey through that and how and how you you you ended up at skill acquisition because I was as you went through there
02:10:44
was three things that I was thinking about and I managed to write them down the first at the top of it was you you
02:10:49
detailed three reasons why hiring the um exceptional person when you're faced with that Paradox of what do I do with
02:10:55
my profits Mak so much sense one of the big things I hear from Founders that they don't appreciate
02:11:02
is to go for a long period of time you have to have some kind of emotional
02:11:07
regulation and as you were talking about the the different levels of business and every level you have more problems what
02:11:13
I often see is a young founder hasn't hired those levels in between to deal
02:11:18
with all those different types of problems and they are like burning out and thinking of quitting I had someone in my office last week and she's on
02:11:25
route to build about a $50 $50 million business this year and the first question I said to her was what's your
02:11:31
executive team and she just like rolls her eyes and she's like I don't have an executive team she'd done a post on
02:11:36
social media basically in tear saying that she was going to quit she's got a 30 to 50 million business it's growing
02:11:43
like wildfire but she's about to almost quit it because she's dealing with every single problem and often Founders say to
02:11:50
me they think because they're experiencing so much hardship in that like 1 to three million phase that
02:11:55
forever it's going to be just huge pain and I talked to them about this thing I called the promised land I love this cuz
02:12:03
cuz I cuz in the first two three years of my business I thought that forever I'm going to have to deal with every [ __ ] problem Jenny and the offic is
02:12:08
pissed off at Dave and on Saturday night when they were drunk they did something which they shouldn't have have and I realized the problem was I hadn't solved
02:12:15
for hiring these levels so everything was coming to me and the emotional toll and my nervous system of dealing with
02:12:21
problem was not sustainable and then I accidentally hiir someone good yeah who I mentioned and from and she dealt sheal
02:12:28
with all [ __ ] and then I could think again as a Founder right so I wanted just give a moment to that and your
02:12:34
thoughts on that I want to do my best shot at operationalizing what you just said for someone who's
02:12:40
listening when we have when we encounter this issue we have a specific process that we go through and so we tell the
02:12:47
founder I want you to make a Google sheet really simple and I want you to have the time slots from 5:00 a.m. to
02:12:52
you know midnight what however long you work in 15minute increments and I want you to set a timer easy timer kitchen
02:12:59
timer like for cooking for every 15 minutes and every 15 minutes I want you to when it dings I want you to write
02:13:05
down what you did one or two one or two words doesn't doesn't doesn't take a lot now as soon as I say that people are
02:13:10
like oh my God I don't have time for this I will promise you it will be the most productive week of your life because you will be aware of how you're
02:13:16
spending your time every time I do this I immediately think I should do this all the time and I don't so just do it just
02:13:22
do it for the one week okay and so what happens is you'll do it for a whole week and then what the second step of this is
02:13:29
you'll look at that and you'll say okay wow I didn't know that 40% of my time is
02:13:34
dealing with this thing and I can hire a role to handle 40% of my time for this
02:13:40
amount of money if I had 40% of my time back I could double this business and
02:13:45
that would be worth significantly more than what I'd pay this person and then you look at the next 13 you know 15% of
02:13:51
your time and you're like okay is this something that I can give to somebody else like can I can I push this down can
02:13:57
I create some process around this that can correct it or do I need to keep eating it for a little bit until it's enough that it's a full-time role and so
02:14:04
fundamentally I see the entrepreneur as the the many hated fractional that you
02:14:09
continue to pull things under your plate until you have enough that you can ship it out to somebody else full-time and
02:14:15
being aware of again the one resources we have which is time how we're allocating it so we get the highest
02:14:20
return and so if you look at the stack of time as an entrepreneur we are always getting paid for our time kind of the
02:14:26
premise of the the whole the whole talk here um is that we trade our time for dollars and so we always the whole
02:14:34
process of Entrepreneurship is continuing to trade up what you're trading your time for and that's it like
02:14:40
at the most foundational level that is all we're doing and so to take this as a
02:14:46
hypothetical your business doesn't need you right now you spend spend whatever
02:14:51
hours you do working and you do these things imagine a world where you could hire somebody who could spend the same
02:14:56
amount of time doing all that stuff now you own the business and whatever you have to pay them you take out of the profit and everything else is now
02:15:03
distributions that you own as an owner that's it now the entrepreneur
02:15:09
who's Missi driven then Stacks their plate with even more things that they need to do and then just continues that
02:15:14
process over and over again now this is the part where the the push back comes which is no one can do what I can do and
02:15:21
I want to say you're right and if I wanted to let's say you're a unicorn so we can imagine this mythical
02:15:28
unicorn got this White Horse got the horn tail everything and the little pixie pixie flies for the magic that's
02:15:33
around it okay you probably won't find a unicorn but you can find a white
02:15:40
horse and you can find a rhinoceros to get the horn and you can find some fireflies to give you the twinkles and
02:15:47
so you may not hire one person who has all of these things but you can hire three and then those three together can
02:15:55
potentially do everything that you're doing better because it's all they're doing with all of their time and
02:16:01
breaking it up into basically understanding that you're not going to find that unicorn but you just break it into pieces and then you can partition
02:16:07
it out to people who can just do those parts makes it a lot more manageable
02:16:12
from an emotional level to think like I'm never going to find this of course you're not and that's okay because we
02:16:18
can find we can solve for parts of our calar calend and fundamentally when you buy back the time you can then do what
02:16:26
you're like basically take the next step in the business the other really interesting thing as you were talking about your friend who was doing blogs
02:16:31
and missed YouTube was the idea that our success trapped the old innovators dilemma yeah that success traps Us in
02:16:39
the past so your friend probably missed YouTube because he didn't want to reallocate headcount to something that
02:16:44
was working and paying the bills and this I guess ties into your point about failure being so unbelievably important
02:16:49
because what me and you both do right now is going to get old yeah like you
02:16:55
know mean and we probably both watched the people that came before us fade into irrelevance look at these dinosaurs yeah
02:17:01
right and we're part of some kind of new school of content creation but we're going to become part of the old school if we don't
02:17:08
yeah what's what's in that Gap adapt and I think that it's a poort so
02:17:14
you know Google has their their you know I think Sergey like solved this mathematically but they I think they called it 72010 so 70% of resources get
02:17:23
allocated to the Core Business do more of what we're currently doing 20% goes to adjacent businesses so things that
02:17:29
are high likelihood success that are you know one-step removed from the existing Core Business um and then 10% goes to
02:17:35
moonshots totally like off the path like let's just see maybe we'll get 100 extra turn we probably will lose on most of
02:17:41
these and he proved it with math he's smarter than I am um but fundamentally
02:17:47
that is the concept of more better new and so that's one of the chapters in in in the leads book which is okay now that
02:17:53
you have the core four right these are the four things that you can do you can post content you can run ads you can do Outreach to strangers you can do Outreach to people you know those are
02:17:58
the four things any person can do to advertise the first thing you do is you do more and for most small businesses
02:18:06
they're they're doing so little and think they're doing so much and it's it's a huge gap in in understanding and
02:18:13
so I'll I'll tell this this story that's that's probably the easiest way to explain it which is when I had my first
02:18:19
gym I called up a mentor he had 20 locations I said how do you advertise he said I use flyers I said okay so I put
02:18:26
300 Flyers out it didn't work I called him back I was upset I said WTF he said slow down
02:18:35
what was your test size and I said what do you mean he's like well your test size so like I mean 300 wasn't the only
02:18:43
amount that you put out I was like well yeah it's like well our test size is 5,000 flyers and then once we have a
02:18:51
winner then we do 5,000 every day in terms of Flyers that they put on cars to get people in the get people in and so
02:18:58
over a 30-day period he would be putting out 150,000 flyers and over a 30-day period I put out
02:19:04
300 and so he was in a very real way doing whatever the math is there but like 300 times or whatever I don't know
02:19:10
a lot more 500 times the math sorry 500 times the Flyers that I was and of course he was getting a better result
02:19:16
and so one of the fundamental misconceptions of small businesses is that they mistake V they mistake low
02:19:23
volume for volatility meaning if you if you're not sure where
02:19:29
your sales come from and you get one sale here and then you know two weeks later you get another sale and it feels
02:19:34
sporadic it feels volatile well there is a certain amount of advertising activity that is occurring over that period of
02:19:41
time and we know that a month passes and you get one to two sales and so the
02:19:47
companies that are in your space that are doing one to sales a day take what
02:19:52
you're doing in a month and they do that every day and I know that you can get this and I want to put this in context
02:19:58
here I hear I would like to build a personal brand and I say cool and then I ask how much cont are you putting out
02:20:04
and they say you know I put out you know one or two pieces a week and I like that's amazing um for context for anyone
02:20:09
who's listening to this we put out 450 pieces a week and so the brand that we have is
02:20:16
way larger because we do so much more than you do and that's it's people can't fathom the idea
02:20:24
that someone Works two times five times 10 times a thousand times more output
02:20:29
than they are doing but it is usually the reality of why they are getting a thousand times more than you're getting
02:20:35
and fundamentally this is the concept of Leverage which is you know the that you get more for what you put in in the beginning you're the one doing the
02:20:41
flyers then you get leverage because then you make enough from those flyers that you can look at your time study and be like okay I can pay two guys to do
02:20:47
these flyers and I can get eight hours back that would be amazing but now you've got two guys doing Flyers which is still double of what you were doing
02:20:53
now you have double the revenue that's coming in like okay should I hire more guys that's more or should I do something better should I change my
02:20:59
flyer up should I change the offer on the flyer that would be better or should I start Facebook ads well the new which
02:21:06
would be Facebook ads is the 10% thing now when you're looking at allocation of resources let's say we're now I'm fast
02:21:12
forwarding a little bit into a company that has you know profit that they can do stuff with part of the reinvestment
02:21:17
is insurance for the future and so every business has three strategic buckets
02:21:23
that it has to allocate its resources into number one is how do we get more customers like if we get more customers
02:21:29
the company grows period number two how do we increase lifetime gross profit per customer so if we got the same amount of
02:21:35
customers but we made all the customers worth more we would also grow bucket three is how do we decrease risk AKA how
02:21:41
do we increase the likelihood that the first two things don't stop happening and so those are the three buckets and so when we're when you look at that
02:21:49
72010 the for the most part is usually going to be directed towards get more customers make them worth more and the
02:21:54
better also Lads up to that the risk factor is usually going to be the new
02:21:59
thing that you're going to do to uh ensure your future is going to be there by the time you get there and so if you
02:22:06
Noti if we noticed for example that like YouTube becomes like Legacy television and you know viewership starts dropping
02:22:11
and it becomes this new VR whatever right at some point we're going to have to look and be like we need to take 10%
02:22:18
20% of our profit every year and start building out this this new team we're going to continue to do what we're currently doing and here's the mistake
02:22:24
that you need to avoid don't take the stars that are making the one thing work and then push them on the other thing
02:22:30
you have to find the people who can build this otherwise you're going to sacrifice the core because all of a sudden it's like oh god well now we're
02:22:37
totally screwed because now we're not getting customers from our existing thing and we haven't figured out the new thing yet right and so this is
02:22:42
fundamentally where I see the CEO role is like you want to eventually become the flex player which is that you can
02:22:48
parachute in to a specific division or Department that's solving a complex issue and then you have the benefit that
02:22:54
you have a CEO or founder is that you have decision- making power and you have the ability to allocate resources and
02:23:00
immediately say yes to things and that's why and to be fair it's unfair to your team to say why can't why can't they do things as fast as me well because you
02:23:06
can write the checks and because you can say yes you don't need to check with the committee you don't need to run it up the flag pole it's just you saying do
02:23:12
this do that don't worry about that I'm telling you you can stay late for this meeting this is more important and so
02:23:17
strategy is just a fancy word that people say when mean prioritization that's all it means we have we have
02:23:23
unlimited opportunities that we can allocate things towards but we have limited resources and so how do we prioritize those unlimited opportunities
02:23:30
against those limited resources that is fundamentally what strategy is and that's another way of just saying we prioritize yoga and Mya is the home of
02:23:38
our digestion and it's also a gateway to Better Health but it can be hard to know what's going on in there Zoe who
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sponsors this podcast has one of the largest microbiome databases on the planet and one of the world's most
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metabolism oh and I can't forget there's also a poo sample which is a critical step in understanding the health of your
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AUD yourkit and find out and because you're one of our listeners use code Steven 10 for 10% off your membership
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head to zoe.com now at my company flight Studio which is part of my bigger company flight group
02:24:43
we're constantly looking for ways to build deeper connections with our audiences whether that's a new show a
02:24:48
product or a project it's I launched the conversation cards I've relied on Shopify before who's a sponsor of
02:24:54
today's podcast and I'll be using them again for the next big launch which we'll hear about soon and I use them
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02:25:27
Bartlet that's shopify.com Bartlet or find the link in the description
02:25:33
below on the on the car example you're talking about with the Flyers yeah what I was thinking is so many businesses try
02:25:38
and win on the game of creativity so we'll create something more creative and appealing as an advert and I see this in
02:25:45
my portfolio because they'll send me something and they'll go Steve one particular business thinking about a
02:25:50
major national supermarket has given us a display slot in a in 400 supermarkets
02:25:56
which display should we use and they'll say to me this one or this one right and I remember replying to them and saying I
02:26:03
don't know and you don't know but here's a system to find out we're going to create a 100 displays and we're going to
02:26:09
run them as ads on Facebook or we're going to create some kind of environment where we're not going to try and win on being the best creative guesses we're
02:26:15
going to win on our rate of experimentation yeah we're going to conduct more experiments yeah and I think this is a a real shift in so many
02:26:22
regards because especially if we've gone through University and we've been trained as a copywriter we have the old
02:26:28
problem of wanting to be right not successful yeah and and being able to as a creative even as a podcast to say I
02:26:34
don't know what the right answer is but I'm I'm going to create a system where our rate of experimentation is going to be so much higher than our competitors
02:26:40
that we're going to stumble across the right answer more than they do is a shift in thinking so there are two types
02:26:47
of questions that you shouldn't ask questions that that can be solved with a spreadsheet and questions that can be
02:26:53
solved with testing and so fundamentally the outside advice that you get on something that can be solved with math
02:26:59
just solve with math and I get I would say like 30% of the questions that I get are like should I should I sell this one or this one and I'm like okay well
02:27:05
what's lifetime value of this product and what's lifetime value of that product okay what's cost to acquire for this customer what's cost to acquire for
02:27:11
that customer okay this is a math problem you have way higher LTV to C ratio here allocate resources here but
02:27:16
that's a math problem anyone can just do that math for the testing one I love this like the leads book um I didn't
02:27:23
know what to name it so it's about advertising so I ran story tests for
02:27:28
like a week or two just saying uh $100 million promotions $100 million uh
02:27:34
advertising and then advertising one it's like1 million dollar advertising $100 million marketing okay then advertising wins I'm like okay $100 $100
02:27:40
million uh advertising $100 million leads leads wins $100 million leads versus two other things leads keeps
02:27:46
winning okay that's the title and then I did the same thing for the cover I did the same thing for the sub headline and
02:27:51
so I tested every component of it to get the thing that people seem to want which is like the book is advertising but
02:27:57
ironically people want leads so it's kind of like uh do I want to have a book on drills or do I want to have a book on holes right people want the hole in the
02:28:03
wall not the drill that's just the vehicle and so the book is just the vehicle to getting leads amen um but uh
02:28:08
as a quick hack uh for anybody who has a a brick-and mortar business this is just a just a quick hack for anybody if
02:28:14
you're like what Market should I expand into here's five markets we're looking at take $1,000
02:28:20
run your best promotion that you win in your current market in all five of those markets see what your lead cost is in
02:28:26
all five markets the one that has the lowest lead cost then open in that market don't spend
02:28:32
$250,000 you know doing all these studies and then and then building out this location only to find out that the
02:28:37
lead cost in that area sucks just test it first it's the best $5,000 or $10,000 that you're ever going to spend to just
02:28:45
ensure this is a risk this is a risk bucket ensure that when you're there it's going to work
02:28:51
I mean amen it's our whole philosophy so it's U it's so wonderful to hear that and I didn't realize that you done that
02:28:57
with the book oh yeah I have it in the chapter where I'm like you have to wrap everything and and I show all the tests
02:29:02
that I ran to I'm like you can see all the percentages of of people saying this is the that's the book title when people look at you Alex they you're a guy that
02:29:08
knows a lot about a lot and one of the questions that I often get as well is um I need a mentor people kids will come up
02:29:15
to you and say I'm sure they say it to you all the time will you be my mentor yeah do mentors
02:29:22
matter so to I I'll explain what I'm thinking through so to answer that question I think it asks what is what is
02:29:29
required to win and is a mentor required
02:29:37
no but there are certain behaviors and actions that
02:29:43
will increase the likel of success if you can do those actions faster then you will have a
02:29:50
higher likelihood of winning and high have a higher likelihood of winning faster all of humanity has been built on
02:29:57
us standing on our forefather's shoulders and taking what they learned we don't have to figure out how light
02:30:03
bulbs work I have no idea how the internet works but I know that it works and there's somebody who can figure it out and so we just start where they kind
02:30:10
of lay off the Baton and then we pick it up from there and we and we run the next Tower manyu and then we die and we end to the next guy
02:30:16
and I think you don't need mentors but you need to learn from people ahead of
02:30:22
you and so I think in models not mentors what can I model about their behavior so
02:30:29
that it can change my behavior to increase the likelihood that I win faster and so everything that I do and I
02:30:34
feel like pretty this a pretty strong statement everything that I do Ls up or
02:30:40
down to behavior and so you'd probably notice it when I talk about training and employees when I talk about advertising
02:30:46
I just want to increase the likelihood that a stranger takes that Des desired action that's all I'm trying to do and
02:30:51
when we get into Behavior change it removes a lot of the surface level fluff
02:30:58
that I think confuses the vast majority of people and so I'm always afraid to go on podcasts where somebody is like
02:31:06
really heavy in like manifestation and like energy and frequencies and like whatever the
02:31:12
hell and they'll say things like I manifested this meeting and I'll be like
02:31:17
you didn't you're uh you have content that did well because you produce content on a regular basis and then your
02:31:23
EA reached out to my EA that reach out is what initiated this not whatever Vibes you were setting out into the
02:31:29
universe now some people might say yeah it was also The Vibes but I would bet that if they made the content and did
02:31:35
the reach out I would still do it which means that those are the core things because if we' removed those if we just
02:31:40
did the manifestation and didn't make the content on the reach out I would not be here and so one of these works one of
02:31:46
these doesn't and so that is what has allowed me to try and extract the essence from the mentors or Heroes ahead
02:31:53
of me I I consume a tremendous amount of Elon basos Zuck anything that I can find
02:32:00
uh that they put out or that they're interviewed on I try and consume it and the whole goal is I want to think about
02:32:06
their decision-making process as it relates to what they did and try and
02:32:11
apply that to my context um in terms of behavior and so that has been just like
02:32:17
the big the big big big zoom out for do I need a mentor no but you need to learn
02:32:22
stuff and so whatever way is the fastest way for you to learn things do that and so I'll tell this story because I think
02:32:28
it's it it like do you need one no no one needs one you could you can literally just do all of these things through trial and err on your own and
02:32:34
you will figure it out time is obviously the one thing that is the the big question mark and I think part of it is
02:32:39
a question of how valuable is your time to you not in a micro example but could would I pay in time or money to move
02:32:46
forward five years and not make five years of mistakes so when I started my first gym I didn't actually start the
02:32:52
gym because I quit my job and I drove across the country and I showed up at a guy's house that I Googled on the internet who said he was good at running
02:32:58
gyms his name was seven figure Sam all right and so he was a gym Guru and so I showed up at his actual gym unannounced
02:33:05
and I was like hey I'm here to be mentored and learn and he was like uh
02:33:11
I'm working um I really don't know who you are and uh like maybe we'll talk
02:33:17
tomorrow or something and I was like okay and he's like where are you staying and I said I don't know haven't decided yet he's like what do you mean I was
02:33:24
like that's my car I just drove here and all my stuff's in there and he's like you have nowh I was like figured I just figured out when I got here and so he
02:33:30
offered me to stay that at his at his house that night which was unbelievably generous and maybe my salesmanship got him you know who knows um but within a
02:33:38
few weeks he had a Meetup of all the gyms that were kind of like following his little system for how he ran his personal training studio and and boot
02:33:45
camp and I got to go as a 22-year-old and I paid to have access to this
02:33:50
community of gym owners and they were all going around talking about what was going good and what was going wrong uh
02:33:56
in the business and when it got to me I was like well okay so I want to open a location and this is kind of what I was
02:34:02
thinking about my model and this is what I was thinking about price points and they were like wrong wrong here's why that's not going to work here's how
02:34:07
that's not going to work and I was like oh uh okay well this is where I was going to buy equipment they're like don't buy there that's retail you can
02:34:13
get it from secondhand over here and it's literally a tenth of the price and I was like oh that's awesome okay great
02:34:18
I was like well I was thinking about getting this this type of thing they're like no girls will eat [ __ ] on that and they'll fall like I've had two girls do
02:34:23
it don't worry about it like you're end not going to use it but you can get sandbags you can use them all the time and they're super cheap and if you have
02:34:29
to replace them you can but you can use them for like hundreds of exercises and I was like great I'll do that and then I was like okay so I was thinking about
02:34:34
this kind of square footage for my for my facility they're like dude you don't need all that you can cut that in half and I was like okay well cut that in
02:34:40
half and um I was like I'm willing to pay two bucks a foot and they were like no never go over 150 and I was like okay
02:34:46
never go over and so like in a matter of a day I got to take like all of the
02:34:51
knowledge of all of these guys of the mistakes that they had all made with their gyms and I started my first gym
02:34:57
just on their backs and so how much was that Worth to
02:35:02
me years and so for me I have always
02:35:07
been willing to pay in whatever currency was required to get knowledge that I don't know can you get that now for free
02:35:15
yes it didn't exist then YouTube wasn't even a thing Instagram had just come out like for context who listening to this
02:35:21
um I think about this equation a lot and I actually had some video of somebody [ __ ] on me for this but I'm going to say it anyways because there's the 20% G
02:35:27
to say that's I'm not going to dilute myself so I saw a Salesman say this at a
02:35:32
at a at a conference and he he wrote a million doll on a whiteboard and he called up a lady in
02:35:39
the in the audience and he said how much do you make and she said $50,000 a year so he wrote $50,000 underneath the million and he subtracted it and it said
02:35:46
$950,000 he said it cost you $950,000 every single year you don't know how to
02:35:51
make a million dollar a year and so the question is what is the value of that
02:35:56
skill and the answer is the difference and so the the the troll who
02:36:03
who who who responded to this originally was like well you can keep going what about a100 million do a year or a billion dollars a year and I was like
02:36:10
yes yes if you had the skill of making a billion dollars a year then the difference between 50,000 and a billion
02:36:16
is the Delta of the value of that skill and it's really not one skill it's many
02:36:21
skills that lad her up to when combined together to create that kind of value but I remember that being like seared
02:36:27
into my memory which is like whatever I want to have the Delta between where I'm
02:36:32
at and where that thing is is what basically what I've what I'm willing to sacrifice in order to learn what I need
02:36:39
to learn to get there and I think that if people appraised that Delta not by
02:36:45
the money in their wallet or the time that they currently have but how much they would be making or how much time they would have and how much that's
02:36:52
worth to them then I think far more people would be willing to invest in their education and it's such a taboo
02:36:57
word because people hate the word education it's like oh it's like work but like you want to be an entrepreneur like you got to learn you just have
02:37:04
there's so much stuff to learn Pirates versus practitioners this is an idea that I've I've thought about a lot over
02:37:10
the years because I look at someone like you and I can tell based on everything you say today that you are a
02:37:16
practitioner um in this analogy what I call a parot is is someone who hears what Alex said and then starts saying it
02:37:22
but your lessons and wisdom have come from going through that [ __ ] and and
02:37:28
being able to distill the essence like Richard Fryman and then share um there is a group of people that just spend
02:37:33
their whole life reading books yeah posting about it Etc they never take the jump Pirates versus practitioners is the
02:37:40
best way to learn being a practitioner this is widely known in the education space but not as much in the
02:37:45
the content world but there are two types of uh education there is procedural and there is declarative so
02:37:51
declarative knowledge is knowing about something procedural knowledge is knowing how to do something so a simple example would be okay I understand how
02:37:58
private Equity works right like that you can you could talk about it you can explain how okay they take some debt and
02:38:04
then they have this Arbitrage and they get this Enterprise Value multiple whatever but you've never done a deal
02:38:10
and until you've done a deal you will not have procedur knowledge of knowing how to actually do a deal and so you can
02:38:15
read a hundred books on sales but you will learn more about actually selling from your first hundred sales calls and
02:38:21
business is the same yes and so the idea in my opinion for most people is that if you want to rapidly learn you want to
02:38:27
rapidly do those 100 repetitions as fast as you can so that you can suck a 100 times in a row and find the 10 that did
02:38:34
that sucked the least and then say how do I suck least on the next 100 and you keep doing that so many times until
02:38:40
eventually you suck so little that you're actually good hard work yes and I think you know
02:38:46
this is actually really interesting because it Lads up to because there's two types of creators you've you've got entertainers and then you have Educators at least that's how I separate it the
02:38:52
point of entertainment is to maintain the attention of the audience that is it so the point of an Entertainer is to
02:38:58
literally just keep people watching the point of an educator is to change someone's behavior and so if you
02:39:06
uh if you want content to do well in either of these buckets fundamentally at
02:39:13
least in the education space you selling time so education is
02:39:20
I spent all this time doing this thing to learn these four things that I can give to you so that you don't have to
02:39:25
spend this time learning it and so education is actually if said differently what you do is you buy time
02:39:31
so when you buy it's the only thing it's the only way to actually buy time today so if you want to basically Time Warp
02:39:38
into your future you have to buy education so that you can buy all of the life experiences from all these people
02:39:43
and then not pay for it in your life you pay for it with less time by consuming
02:39:49
what they have or some money or some combination of those things and fundamentally we usually pay with the currency that we value least and so
02:39:58
interestingly a rich person values their time more than their money and so they're willing to pay with money to get time back a poor person will also pay
02:40:04
for their time and drive around to 10 different gas stations to find the one thing that's 10 cents cheaper or drive to 10 different grocery stores to to use
02:40:11
whatever whatever coupons they're valuing their time over their money in that instance and
02:40:17
so back to the the educator if you want to be certain or
02:40:22
have confidence in any Endeavor you have to do so much volume of activity that it would be unreasonable that you would
02:40:29
suck and if you were to write out the equation of like okay how many public speeches would I need to give for it to
02:40:35
be unreasonable that I would suck is it 10 is it 100 is it a thousand write the
02:40:41
number that you're like there's no way that I would suck after this many and then all of your effort gets really
02:40:46
narrowed commitment elimination of Alternatives focused turn down quality and quantity of other things to just doing that and then and the key part of
02:40:54
this is not just to do the Thousand but after every 10 or every 20 looking at the top 10 or 20% and saying what did I
02:41:00
do well there and then because you have to have the feedback loop otherwise it's not just doing 100 reach outs you have to do 100 reach outs and then look at
02:41:05
what worked and then do more of what worked and so for the the parent versus the uh practitioner uh component of
02:41:13
this even if you're starting out you can have confidence in what you're doing
02:41:18
because you derived the solution and you can actually answer why you do something
02:41:24
so if you cannot explain why you believe what you believe it's not your belief it's someone
02:41:30
else's and so most people I would say parot the vast majority of the things
02:41:35
that they say because and to be fair that's how humans learn you're 5 years old you say what's that they say Bull and you say bull you pared it back and
02:41:42
there we go right but when it comes to uh skills you can describe what other
02:41:47
people have said before but if something goes wrong or what about this condition you won't know what to do but if you
02:41:54
derived it from the ground up and there's a there's a great uh portion of this in the Y combinator Community that you or the Silicon Valley Community that
02:42:00
you probably heard it maybe like three or four months ago it was like founder mode did did that get to the UK okay it was from um Brian ches I actually
02:42:06
messaged him about it after oh yeah it was like it was it was awesome right and so the basically the tenant is that the
02:42:12
founder always has special powers in the company because you know what built it and so that is basically at its core the
02:42:19
practitioner versus parrot the people who came later are parting why you do what you do but you know what conditions
02:42:26
you were in when you made this Rule and also you know how to break it and when to bend those rules and so if you build
02:42:34
something when you built it from those repetitions to to still out the few truths that exist you'll know why those
02:42:40
are the truths like I'll give you a really simple example so if we you know we've tried to learn YouTube and we've gotten better over time um but in the
02:42:46
beginning I did this massive review and I figured out that the the videos that we had that had three things at the beginning proof promise plan was the
02:42:54
videos that did the best and so then all of a sudden we said okay all videos have to have proof promise plan right at the
02:42:59
beginning the first 30 seconds great so we started doing that for a while and then we looked at the outliers among those and we were like oh well we also
02:43:06
in some of the ones that did really well also had some sort of visual picture of of this plan all right so it became
02:43:11
proof promise plan picture then we kept looking and we found out over more repetitions that if
02:43:18
we also include includes some sort of pain or problem that's being solved that also helps so proof promise plan picture
02:43:24
pain and so you're like wait if you keep adding to this thing it's going to get really long no sometimes you can check
02:43:29
multiple boxes with one thing and this becomes the Elegance of creation like how can I how can I check off three of
02:43:34
these boxes with one sentence right and so that is by the way for if you're like thinking about this you're like do they
02:43:40
really think about this when they're making videos yes and that is the difference between a 10,000 view video and a million view video and it's it's
02:43:46
understanding that level of nuance across the ENT ire thing that creates expertise and also when you're like oh
02:43:53
this video flopped when you're a beginner you're like these videos in general don't work or content doesn't work rather than saying this video
02:43:58
didn't work and here's why because we did three of the five and so it's just like all of the I
02:44:05
mean the devil is in the details and you only you only you meet the Devil Himself by doing the unreasonable amount of work
02:44:11
and then it becomes it goes from uninformed uh lack of knowledge to informed optimism because first you're
02:44:18
like I can make videos get rich then you realize that it's really hard to make videos that people watch and then finally you start develop a framework of
02:44:24
this is how I make videos that people watch and when they don't watch it it's because I didn't follow it it's so
02:44:29
timely because it's weaves into something you said earlier because my girlfriend came to the recording yesterday and as I went into the green
02:44:35
room and I sat down she went babe look I found this new app and I said what is it she goes it's an app that summarizes
02:44:40
books yeah and she it's called like head something and she showed me it and I go look at my book yeah cuz I know the laws
02:44:46
I know the chapters I know all of the principles that lead up to the point so show me my book and law two of my book's
02:44:53
called 33 laws so these 33 laws I got it yeah and um law two was about the Richard fman technique you talked about
02:44:58
and I explain why that process of learning something simplifying it to its Essence for a 10-year-old teaching it to
02:45:05
someone else if they understand it move on if they don't go back to the top and learn again and it had summarized l two
02:45:11
of my book to um like writing is the best way to learn yeah and I said babe if you I said if you just read that that
02:45:17
summary the top of the pyramid and you don't have the story and all these agreeable foundations which I then explained to her would you be able to
02:45:25
then translate that and truly understand the nature of the problem so that you could apply it to lots of different settings and so on and then I told her
02:45:31
what that that second law in my book actually meant and she deleted the app yeah because there's no point knowing the the conclusion the aphorism yeah
02:45:38
like like the punchline when you don't know the story um and without the story you can't I I guess get get to the first
02:45:45
principles of the thing so this is really interesting because um with that fan example it it proves that the
02:45:51
distillation of knowledge is not bidirectional so you Richard Fineman can
02:45:57
break it down to a child but a child cannot then rederive what Fineman has done interesting yeah and so it's it's
02:46:03
convenient for the transmission of communication and for teaching someone who's let's say coming new to an organization here's the here are the
02:46:10
things and these give you the decision-making Frameworks around which and it can give you directional um uh
02:46:16
guidance but that is the whole founder mode that is basically a different way of getting to the founder mode idea that
02:46:22
person derived this thing yeah and so when a problem arises we can rederive
02:46:27
the next solution rather than trying to apply the aphorism to a new setting another point for Founders who are
02:46:34
getting their work copied because this everything you've just said actually should give a Founder who's having their
02:46:39
work copied their t-shirt designs their content copied huge amount of piece because if I need to know steps 1 2 3 4
02:46:46
five up the staircase to success to be able to predict step six then if
02:46:52
someone's just copying your step five you should be at total piece because they don't know yeah the the foundations
02:46:58
that would lead to the next step and that's what we see as podcasts podcast is copy you they'll copy your thumbnail your title your whatever dude I mean I'm
02:47:04
sure you you see it everywhere but the piece that the piece that I have is honestly I say to the team all the time
02:47:10
if that's the thing that makes us special we're [ __ ] anyway yeah like if if it's the thumbnail or the this or the
02:47:15
how we do this if it's the trailer that made us special we're [ __ ] any way yeah but also there's a set of
02:47:21
principles we call it the iceberg the 99% of what we do you can't see it's the it's the culture as you said it's like
02:47:28
uh so I have so much on this so um one is right when I sat down you were telling me about uh the episode that we
02:47:34
we ran that was like akin to a shark tank but new version that we had on our Channel and as you saw me like kind of
02:47:40
like grow and be like it was 56 minutes on video but it was so much work to
02:47:45
produce that one thing but no one sees all the work behind it that's the 99% % so that's thing one the the next thing
02:47:51
is think about the if you're a Founder who's plagued with competition and being upset about it I was one too and I want
02:47:58
to tell you how I got over it so number one is think about the alternative which is that no one copies you because no one
02:48:04
cares about what you're doing well then it would be a requisite for Success that people will copy you so as long as you are successful this is just a part of
02:48:12
business the the second piece is by definition if someone copies you they
02:48:19
are second period and so if you want to lead you can't look at anyone else you
02:48:25
have to consistently be deriving the next step the step six that's unseen from your first five steps to innovate
02:48:33
rather than I'm just going to parot the next thing and as soon as you find yourself copying you have admitted
02:48:39
defeat you've admitted that you were no longer the leader and that you were just following in someone else's footsteps and you're giving them the Baton and
02:48:45
saying you be the champion I'm happy with second third fifth place and in a winner take all world like attention is
02:48:52
all the fruits go to the first place anyways amen amen I have nothing more to
02:48:57
add that's talk two last the last thing I want to talk to you about is it's really like a three-part thing it's hard
02:49:02
work love and happiness okay and I put them together intentionally um one could say work life balance yeah love
02:49:09
happiness I think these things are kind of fundamentally intertwined but how do you think about it you're someone that's known as being very obsessive um very
02:49:17
into your work to say the least um you have a wonderful partner who seems to be aligned I know oh super okay good she's
02:49:24
hardcore so let's go through it work life balance SL hard work love and
02:49:29
happiness okay if we start with work life balance it was that [ __ ] question
02:49:35
beliefs on it yeah so I will answer with how I derived my kind of Life thesis which was after
02:49:44
we uh so when we went to so we had taken about $40 million in distributions from gym launch um personally throughout the
02:49:51
you know years that we ran the company and then in the year of the sale um for those of you've never sold a company
02:49:56
before you typically don't want to change a lot of things you kind of want the company to just be like be stable keep working everything's fine and so
02:50:03
one of it's one of the most harrowing experiences to go through because you can't really change anything and if
02:50:10
you're the founder you're always trying to innovate so you can't do what you're normally doing um and you also can't
02:50:16
start the next so you can't change current and you can't start new because if the deal doesn't go through then you don't want to start two
02:50:21
businesses remember because we you know cardinal rule number one we're not chasing chasing wom in the red dress and so you basically have to sit idly by and
02:50:28
just like let things operate and so in that year it was one of the most miserable years of my life because I
02:50:33
basically had nothing to do and um when I looked back on my life this sounds
02:50:40
like you know I looked back on my life as though it's been so long I looked at the days that I enjoyed the most and on
02:50:47
those days I had worked out and I had produced something and I had done both
02:50:53
of those with people I liked and almost all of those days I'd worked
02:51:00
many many hours and when I realized that the idea
02:51:06
of working hard so that I can insert blank the so that actually makes it
02:51:13
still destination driven so that was when I DED what I
02:51:19
called hard work is the goal it's just to work hard that is my goal and then
02:51:25
die MH on things worth doing and I those are the days that I
02:51:33
love and I get a tremendous amount of push back for saying this and it bothers
02:51:38
a lot of people and to them I say live your life whatever way you want this is
02:51:44
again my my life is not a sermon it's a documentary this is just how I do it you can do whatever you want and for the
02:51:50
people who are dissatisfied try it and if not no worries um I really enjoy
02:51:56
working like the best days are like when I write those books it's the happiest I am and it's not happy in the moment
02:52:03
because it's really hard but the amount of challenge is about proportional to my level of skill and every book I think is
02:52:10
better than the last and the third book that's coming out is going to be [ __ ] awesome I'm very excited about it but
02:52:17
there's nothing that I enjoy more more but in the moment I'm like how do I break this down and I'm just rubbing my forehead and I'm like and then I and I
02:52:23
create two three different Frameworks I'm like no that's that doesn't work here and that doesn't work here which means some kid in Afghanistan is going
02:52:29
to get stuck on this step because it doesn't work I have to figure out how to get it so that it works everywhere and I
02:52:34
keep driving into but the moment it's like it clicks I'm like that's it fight me like that's the framework that is what I what I strive
02:52:41
for and for me the love the happiness and work have all because of the nature
02:52:47
of my life in one now some people have lived their lives where their love life
02:52:52
and their happiness and their work are all separate um for me it has just been life and I like it that way and for the
02:53:00
people who are upset by that I'm not upset about how you live your life um I just choose to live it this way and if
02:53:06
in the future I change my mind I'll change my life if I get to a point where
02:53:12
I'm like this is no longer a priority for me something else is then I will but when I look at the centenarians and I
02:53:18
look at the people who like I look at Warren Buffett as somebody and Charlie merer as two of my heroes Charlie worked
02:53:23
until the day he died and to be clear I don't work on a 7-Day calendar um I
02:53:29
don't work a certain hour I work as much as I can until I feel like my rate of output drops precipitously because of
02:53:35
fatigue and then I and I sleep and then if I feel like on a on a longer time Horizon of like I've worked nine days
02:53:41
I've worked 20 days I've worked 30 days in a row and I'm like all right I feel like I don't have any gas today then I'll take the whole day off and whether
02:53:47
that's a Tuesday or a Sunday or Saturday I take the day off and that just is what it is and I've just I have learned to
02:53:53
work that way and I am okay with it the goal clearly for you then is the hard
02:53:58
work itself and not a certain place you're trying to get to necessarily because that always moves yeah and so um
02:54:04
Jesse iler has this and maybe maybe I'll I'll be able to steal it from him someday um but he told I saw him show a
02:54:11
picture of his kid finishing a race and putting a zero up and what that signified was nothing left in the tank
02:54:18
that he'd spent everything he had on the field and I would and it's like I have this visual
02:54:25
of uh the 300 movie where the queen says to the king as he goes off the battle she says come back with your Shield or
02:54:31
on it and I kind of see like my work that way like I can't imagine a better
02:54:37
way to go out than like doing the thing I love and it bothers a lot of people that I love something different than
02:54:43
they love and it's like it really it really Bo and it it bothers me that it bothers them to be honest
02:54:50
um because I I I make no projections like do whatever you want and I feel
02:54:55
like if if I ever had a a like one thing that that people took from me it was
02:55:01
like absolute freedom and because of that absolute freedom we are 100%
02:55:06
responsible for our own lives and so where we place the the finger of blame is also where power flows so if you
02:55:12
blame your parents for your life your parents have power over your life if you blame your boss for your bad life your boss has power over your life if if you
02:55:18
blame you for your bad life at least you can change you and you can do something about it and so I think absolute
02:55:23
responsibility has been my my core tenant and if you have a life where you're like I don't want to care about
02:55:30
work that much and I just want to spend all my time with my family I'm like congratulations you [ __ ] won that's
02:55:35
amazing just don't assume that everyone's you and that winning for me is is the same as winning for you and
02:55:44
and it and I think the the times that I talk about this I I know that my my
02:55:51
message won't resonate with everyone and that's okay but it's for the few people who were like me and felt like everyone
02:55:57
told them there was something wrong with them and I still get people to tell me there's something wrong with me and if wrong means not normal then yeah you bet
02:56:05
but it's more so that like you are different and that's okay and I think
02:56:10
that if you're if you're okay with that then it unleashes this whole new realm of possibility of being able to do what
02:56:17
you want and kind of like I had the you know you do a 100 of these and you look at the top 10% do 100 of these look at
02:56:23
the top 10 percent that was my way of trying to operationalize happiness because it was
02:56:28
this ephemeral thing that when I was 18 19 20 21 22 I struggled a ton with I was
02:56:34
very depressed I looked at you know religion I looked at a lot of different things and this is common for people at
02:56:40
that age and um I I came up with a mantra for me
02:56:45
at that time which was [ __ ] happiness now people then hear this and I'm sure this will get taken out of context but
02:56:52
that was basically like this release moment for me where by continually chasing happiness it always existed
02:56:59
outside of me and so it was always this carrot that was in front of me that I could never really get to and so by
02:57:05
saying [ __ ] happiness I was like it's unattainable I'm just going to work and
02:57:12
I'm just going to do the stuff I want to do and when I started doing the stuff that I wanted to do I looked up years
02:57:17
later and I was like I kind of like my life and I was like is this what happiness is and I was like I don't know
02:57:24
but I think one of the the major plights of humanity myself included is the expectation that life should be
02:57:30
different than it is and so we we we create this idea that whatever we have
02:57:36
right now is not what it should be and I think should is the is the root of all
02:57:42
pain is that all the things that we think should happen but aren't is our is
02:57:48
basically the measurement of our pain and so I've tried to eradicate should from my life should for other people she
02:57:54
should do this they should do that um and just just lean into is it just is
02:58:01
this way I work period not I should work more I should work less I should work differently I should see my mom more I
02:58:06
should call my dad more I do this and if something changes I will change and so
02:58:11
unconditional shoulds now if there is a condition of like if you want to make more money then this is a high higher
02:58:17
likelihood you you might want to consider doing this those are things that I don't consider in that category but just the generalized shs of he
02:58:25
shouldn't do that he should he should build a family he should have kids he should have gotten married earlier he
02:58:30
should have gotten later he should have married someone different he shouldn't have the the life that he has he shouldn't work this way according to
02:58:38
what and so for me that is my my theory on life on on on happiness work and love
02:58:45
has been very unified because I love my work so much
02:58:50
that I got out of a relationship and when I you know started dating Ila I
02:58:57
said I am not willing to change this and so you have to be willing to deal with
02:59:03
me working this way or this won't work because my relationship with my work is
02:59:09
the most satisfying relationship I have now people will hear that and be like well that's because he's never experienced True Love or Whatever
02:59:15
Whatever Whatever narrative they'll they'll say but it's like you haven't lived my life and I haven't lived yours and I don't project anything onto you um
02:59:22
but I I like I like I love what I do and I like I get attacked for liking what I do so much and I like working a lot and
02:59:30
and it's because they have negative associations with the word and that's that's their own history of of of their
02:59:36
experience with the word but I see my goals and my relationship with my goals as one of the most sacred things that I
02:59:42
have because I see them as a relationship with myself and so those those proxy ones
02:59:48
someone comes in and says hey you know sweetie you've been working too much
02:59:53
according to what why should I stop right um now let's do this other thing
02:59:59
and people will probably see this as a they'll put whatever labels they want on it but like I just said this is what I would like to do with my life and if you
03:00:05
can incorporate yourself into that that would be amazing and so my second date with Ila after we talked about business
03:00:11
for 4 hours on our first date was I said I'm going to be working all day it'd be cool if you worked with me and she just
03:00:18
worked next to me she had her own thing but she just worked beside me and I was like this is nice and over time
03:00:23
eventually was like hey maybe you want to work on my thing with me and she was like yeah that sounds good it was a
03:00:29
little bit more than that but like fundamentally I got her to to switch switch to to working on it with me and at that point what we got to talk about
03:00:36
was what we were creating together and to me that's been you know the Journey of my life and it's been it's been amazing and um I'm not saying it works
03:00:43
for everyone I say it probably doesn't work for most people uh but it has worked really well for me and it would
03:00:49
make sense for me that my path would be different than most people's because I don't behave like most people and so I
03:00:54
would have to have a different formula for how I drive you know meaning or Joy from my own life and since I don't
03:01:01
believe in inherent meaning um just the meaning that we choose to ascribe to things then it's up to me to create that
03:01:09
meaning within the work that I do and so the reason acquisition. comom was all based on and it was during that year
03:01:15
where I just basically had nothing to do where I was like what do I want to do with my life because I don't need to work anymore and that was you know we
03:01:20
taken 40 out before the sale and then we obviously got the sale so like I don't need to work I like to work and I I try
03:01:27
to spend I look at you know I had this boss that told me this and was one of the one of the catalysts for for looking
03:01:33
at life this way she said I had just had like a good weekend or something and I came in like chipper and she said well
03:01:39
you must have had a good weekend and I was like yeah it was it was good and she said this it was like an off-handed
03:01:45
comment she said I'm pretty sure the key to happiness is living as many days in a row like that as you can and it was
03:01:51
actually like really operational like I could I was like I can use this like what are the good days how do I live as many of those days in a row as I can and
03:01:58
so I've you know I've been attacked for like saying that I don't really enjoy going on vacation very much um and it's
03:02:03
because like I just want to get I just want to get back to doing the thing that I really enjoy doing and I remember we Lea and I went to uh Mexico uh this year
03:02:11
for a week and it's always during the week of Christmas cuz no one works and it drives me nuts and I've just like I've I've just given up trying to get
03:02:17
you know get to work because even if my team will work cuz my team will because they they're crazy too other teams won't
03:02:23
and vendors won't it's aain anyways and so while we were there all I came out with was like this is for other people
03:02:28
and not me comma and that's okay ear WR when we were talking about s a long r no it's
03:02:35
beautiful because it so a couple of takeaways from it but earlier on we were talking about being a great content creator is a byproduct of Having the
03:02:44
courage to be yourself and from that what everything you just said solo yeah I also gleamed something similar which
03:02:50
is being happy MH requires the same thing which is the courage to be
03:02:56
yourself and in both in the previous analogy you said everybody is unique yeah and that is their value as it
03:03:02
relates to showing up in marketing or with whatever product they have but also when I think about Alex's story your
03:03:09
story and all you went through with your father and the early experiences in that consultancy firm the gym the fur place
03:03:14
you worked logically from first principle the that's going to make you happy
03:03:20
because you are completely unique is going to be completely different from everybody else right like to varying
03:03:27
degrees depending on how you sort of defining your early experiences are but I actually think we talked about the courage of being yourself there's also
03:03:34
the courage of being happy MH and with the courage of being happy you have to
03:03:40
withstand public pressure the shoulds you said from your parents whatever from social media especially if you become a bigger
03:03:46
Creator to actually just listen how you feel every day can I can I throw something out that I think might like so
03:03:52
this blew my mind so I was in around that same period of time I because I talked to everybody I could to try and
03:03:58
get context on this and so I I called a friend of mine up um or not a friend I would say acquaintance that I got
03:04:03
connected with who'd sold his company for hundreds of millions of dollars really bright guy and one of the
03:04:09
questions I asked him I said so how do you how do you drive meaning from your
03:04:15
life and he said and that really really shook me um which doesn't happen that
03:04:21
much given him my worldview he said why do you think that life needs to be meaningful and it was just this really
03:04:28
interesting question which is basically that I had an unspoken demand of the universe life should be meaningful I
03:04:34
should be happy and so it's the shoulds that we don't even know that we think and say that are the ones that chain us
03:04:40
the most like hardcore and so my favorite quote of all time which is
03:04:45
probably at the front of a few of the books that I have and probably be the one that'll be on my my Tombstone is a
03:04:50
permutation of an or Orson Scott Card quote which is we question all of our beliefs except for those that we truly
03:04:55
believe and those we never think to question and so I would say that a lot of my entrepreneu career even just human
03:05:01
Journey has been what are the beliefs that I so so inherently believe that I
03:05:06
don't don't even see them I don't even think about the should and so when he said that to me I was like whoa I have
03:05:13
had this inherent demand of the universe that my life be meaningful
03:05:18
and now people would hear this and be like they have their shoulds and they're going to say well it should be meaningful and I'm like why according to
03:05:26
what and if we look at history history pretty much sweeps everyone under the under the bed like within a hundred
03:05:32
years and within a thousand years basically everyone and the people that we remember we remember some of their works and we go a 100,000 years in the
03:05:40
future or 10,000 years in the future probably unlikely that we will be remembered in general and that is
03:05:45
solving for the idea that we need to be remembered again we have to why and so
03:05:51
my solving has been for um degrees of freedom and uh responsibility so what
03:05:57
are the things that I can control and I will do the very best of my ability to try and do the things um within my
03:06:04
control to ideally make other people's lives better and my own in the process now that is a choice rather than a I
03:06:11
demand that of the Universe um and this gets really abstract and heady really fast and so I will try and you know
03:06:17
bring us back down to Earth but by by by demanding that life be meaningful by
03:06:23
demanding that I be happy when I understood that I was demanding these things and and pursuing them that they
03:06:29
were outside of me by saying I need to do this that I created inherent space
03:06:35
that I could never Gap I could never close and so by trying to forget or eliminate the demand is where it was the
03:06:43
first time that I experienced those things and so IED to keep them out of my head to the greatest degree possible so
03:06:50
that I can be inside of them that sounds weird um rather than in
03:06:56
Pursuit and so that um and so the times where I derive the most Joy from my life
03:07:02
if I'm if I'm optimizing for that which is I wouldn't necessarily say that I am optimizing for Joy um I think Williamson
03:07:09
was like you definitely optimize for purpose or meaning or something like that and um I I kind of reject a lot of it mostly
03:07:16
because I do what I have been rewarded for doing in the past and so because I have a behaviorist view of the world
03:07:22
which is that everything boils down to behaviors um why do I do these things I
03:07:27
do these things because when I have done them in the past I have enjoyed the result and so I continue to do things
03:07:33
that I've enjoyed the result of and if other people have done things that they enjoy the result of then I encourage you to keep doing them and I also encourage
03:07:39
you to not project that other people need to also do those things and that they will experience the same result as you because they might
03:07:45
not Alex thank you oh that was such a a beautiful way to end
03:07:50
and um I I've it's so interesting because if if people attack you for that
03:07:56
I just wanted to give my own perspective is when I hear you say these things about not not enjoying holidays and yeah
03:08:02
um things about your relationship with Laya and how how that happens for me I
03:08:08
feel even if I don't agree with 100% I probably get to 95% to be honest with you the fact that you're telling me that
03:08:15
you're different makes my difference whatever it might be
03:08:20
feel acceptable do you know what I'm saying I I 100% know what you're saying because because when I heard you say
03:08:26
these things and I go oh my God Alex feels like he's different from the normal too we might not be me and Alex
03:08:31
aren't the same but we both feel inherently like we're not playing by the
03:08:37
rules and therefore in some way getting life wrong based on this like public Narrative of the way we should live our
03:08:44
lives I thought amazing I remember watching the video where you talked about not like in going on holidays and being like absolutely obsessed and me
03:08:50
thinking oh my God I'm so [ __ ] glad he said that because deep in my heart somewhere I felt a guilt yeah oh I you
03:08:57
know a guilt and I'm like where did the guilt come from I'm doing it something that I love every single day but I feel guilty well I feel guilty because of
03:09:03
other people's shs right so please Alex despite the um despite any critics that
03:09:08
might be out there please continue to have the courage to be yourself CU you have no idea how it's making a group of
03:09:15
weirdos that feel like they don't fit in feel heard and understood for their variance well that is my yeah I mean
03:09:22
it's I I make it for them we have a closing tradition on this podcast as you know where the last guest
03:09:27
leaves a question for the next guest not knowing who they're leaving in for god I'm laughing because it's so
03:09:34
ironic okay great what is the meaning of
03:09:41
life well the short answer is obviously 42 um but um
03:09:48
um I actually do think it's learning um because if we think about
03:09:55
what learning is it's that you're exposed to new conditions that over time
03:10:01
change your behavior and so you are different now than you were 10 years ago because you've learned more things and
03:10:07
so if we think about the meaning of life as what is the output of life so I
03:10:13
actually do really like this so people talk I can relate this to business of
03:10:19
course I can really what's the meaning of life to business but what is the meaning of a business the purpose of the
03:10:26
business is is whatever the output of that business
03:10:31
is that's the meaning it's it's what the output of that business is and so if the
03:10:38
mission like with uh Elon is like to get to Mars then the output of the the
03:10:43
mission is that people get to Mars and so that's the meaning of that business and so the meaning of life in general
03:10:49
for me I think for All Humans is that the output of experience is
03:10:55
learning and so we will learn regardless whether we
03:11:01
want to or not we learn Learning Happens whether you want whether you like it or not you will learn um and I think that
03:11:08
that's where I would just leave it and the question is are you learning the things that you want
03:11:14
amen I highly recommend people go and check out the new format you launched on your YouTube channel it's um titled
03:11:19
building a $1 million business for a stranger in 56 minutes it's kind of like a new take on Shark Tank but it's more
03:11:25
actionable more practical it's what you referenced earlier and I know it took you many many many many hours yeah to perfect it but it's a really interesting
03:11:31
format that I think YouTube is seeking because it's so actionable and practical and I'd highly recommend I'll link that
03:11:37
below but i' would also highly recommend people go and check out these books I mean they've been to say they've been Smash Hits is a mass massive
03:11:42
understatement um thank you Mil I just I mean I just see it everywhere I fit feel like it's a prerequisite of any
03:11:49
entrepreneurs toolkit when they're starting and they're trying to figure out Frameworks for scaling a business
03:11:55
making sales generating leads and I know there's another one on the way which you won't tell me about but I know it's coming this year which is volume three
03:12:02
of this this format and I'm exceptionally excited to see it and for any entrepreneurs out there that are looking to get in business with you I'd
03:12:07
highly recommend they go check out acquisition. comom because there's so much there regardless of where you are in the cycle whether you're starting out
03:12:13
whether you're scaling up whether you're looking for advice acquisition. comom is the to be thank you Alex for your generosity I appreciate it and thank you
03:12:20
for all that you do thank you for being weird and different because like that's again that's the value that's all the
03:12:25
value in the world um we don't need more of the same we need people that have the courage to be themselves and the courage
03:12:30
to be happy um and that's exactly who you are and I really really appreciate it thank you so
03:12:37
[Music] much isn't this cool every single conversation I have here on the DI of at
03:12:43
the very end of it you'll know I ask the guest to leave a question in the Diary
03:12:49
of a CEO and what we've done is we've turned every single question written in the Diary of a CEO into these
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conversation cards that you can play at home so you've got every guest we've ever had their question and on the back
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03:13:10
question we're finally revealing all of the questions and the people that
03:13:15
answered the question the brand new version 2 updated conversation cards are
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out right now at Theon conversation cards.com they' sold out twice instantaneously so if you are interested
03:13:27
in getting hold of some limited edition conversation cards I really really recommend acting quickly
03:13:34
[Music]
03:13:47
oh
