In the Gym Secrets podcast, the host and guest discuss the necessity of taking imperfect action in the face of uncertainty, particularly highlighting the challenges faced by gym owners during the pandemic. They emphasize the urgency of adapting to a new business model, transitioning from in-person to online services, and the importance of maintaining a positive, action-oriented mindset despite incomplete information and the inevitability of mistakes. The conversation also touches on managing business finances, conserving cash flow, and the potential benefits of a remote business model. The host, Alex Hormozi, stresses the importance of leadership and providing certainty to both teams and customers, while also being prepared to learn and improve from the inevitable initial shortcomings of a rapid business pivot.
Welcome to the Gym Secrets podcast, where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons that we have learned along the way. I hope you enjoy and subscribe.
This quote sets the stage for the podcast, outlining its purpose and inviting listeners to engage with the content.
About imperfect action and certainty. And so a lot of you have either recently started, had to make a massive pivot in your business, or you've been paralyzed by fear.
This quote introduces the main theme of the segment, which is the importance of taking action even when the outcome is uncertain or the situation is not ideal.
It's going to be ugly. There's going to be shit you're going to fuck up. Your team is going to be operating on incomplete info. Because the thing is, what other options.
This quote captures the essence of the challenges faced by businesses, especially during times of crisis, emphasizing the need to move forward despite the lack of perfect information.
Once you've pressure tested everything and gotten, the process flows down. And it's not like the thing is, a lot of you guys had. Everything's cool. And then the next day you were announced you're not allowed to do business, right?
This quote illustrates the sudden and drastic changes businesses may encounter, necessitating swift and decisive action to remain operational.
So when you're talking to your team, be like, listen, right after you explain everything to do, listen, guys, I know this is not perfect. I know this is not even pretty.
This quote emphasizes the leadership strategy of acknowledging imperfection while still rallying the team to move forward with the best available plan.
This is what businesses do over longer cycles. They call these s curves, where an old product dies over time. And then you begin r and D on a new product.
This quote provides a theoretical framework for understanding how businesses evolve and adapt, which is particularly relevant in the context of forced, rapid change.
Never having done it. Your team doesn't know how to do remote. You don't know how to get Zoom to work. You don't know what the communication cadencies will look like. Your clients don't know how to make that stuff work.
This quote highlights the immediate challenges organizations faced when transitioning to remote work, emphasizing the lack of experience and familiarity with remote communication tools and protocols.
We need to reflect certainty in times where you are not certain because that is what everyone is looking for from you as the leader, right?
This quote emphasizes the importance of leaders showing certainty to inspire their teams, even when they themselves may feel uncertain.
It's okay for you to fuck up right now, right? But what's not okay is for you to do nothing.
The speaker encourages taking action despite imperfections, stressing that mistakes are part of the learning process but inaction is unacceptable.
And if you're in an area that isn't quarantined, do not be the guy with the dunce hat on who says, well, I'm going to wait.
This quote criticizes the attitude of waiting for a crisis to hit before taking action, instead of proactively preparing and learning from others' experiences.
You got to take imperfect action. And it has to be massive because you're not going to take a small incremental shift from a shift from a massive external change.
The speaker advises that in response to a massive external change, one must take substantial and immediate action, even if it's not perfect.
Hey, if you're a return listener and you have not rated or reviewed the show, I want you to know that you should feel absolutely terrible about yourself.
This quote is a humorous attempt to encourage listeners to engage with the podcast by leaving ratings and reviews.
But it would mean the absolute world. To me if you guys would go ahead and do that, and you don't. Even have to pause the show.
Here, the hosts express how much they would appreciate listener reviews and ratings, suggesting that it is a simple action that can be done while continuing to listen to the podcast.
"It's okay if you suck. It's okay if the things that you do don't work as nearly as well as you wanted them to."
This quote emphasizes the importance of being forgiving to oneself during trying times and accepting that not everything will go as planned.
"The one thing you cannot stop is marketing and sales."
This quote highlights the necessity of continuous marketing and sales efforts to ensure the inflow of new customers and the survival of the business.
"If your landlord doesn't have to pay his mortgage, you and all likely will do not get penalized for not paying your rent."
This quote suggests that tenants may have leverage in negotiating rent payments if landlords are receiving mortgage forbearance.
"I would be conserving cash flow and only focused on one thing, which is acquisition."
This quote advises businesses to concentrate their resources on acquiring new customers, which is crucial for maintaining revenue streams during a crisis.
"Learn a new acquisition process. Learn a new fulfillment process of selling over the phone, selling over Zoom, fulfilling over Zoom, having zoom workouts, having remote check ins."
This quote underscores the need for businesses to pivot to online methods for sales and service delivery in response to physical distancing measures.
"If you can no longer provide value in this new vehicle, then there's really no place for you here."
This quote addresses the tough decisions businesses must make regarding staffing, based on the changed requirements of the business during the crisis.
"You have to let go of nonessential employees who are not going to provide value in the new setting."
This quote suggests that businesses need to assess and act on staffing changes to align with the operational shifts necessitated by the crisis.
"Would they rather give some months of free rent or give some forbearance so that they could potentially keep you on the longer side? Probably."
This quote implies that landlords may prefer to offer concessions to keep tenants rather than risk prolonged vacancy periods.
"Quick side note, don't let anyone cancel. They can only freeze."
This quote emphasizes the strategy of preventing customer cancellations by offering the option to pause services instead, allowing for easier re-engagement once normal operations resume.
"And you lose 40%, so you're down six... That means you have 9000 recurring left. If you have no rent and you only have one person who's assisting you, you may actually be able to make more money."
This quote illustrates a scenario where a business loses a significant portion of its recurring revenue but could still potentially increase profits due to decreased expenses, such as rent and payroll.
"Like eight or nine months ago, I pushed... for a remote fumbling system, right? Because you're going to be able to prepare and have another way of providing high value, high margin services."
The speaker reflects on past advice to prepare for remote operations, highlighting the potential for high-value, high-margin services that can be provided remotely.
"Remote is a better business model. It's a higher profit model. It has more scale to it."
This quote underscores the benefits of a remote business model, including higher profitability and scalability.
"All we have to do right now is just learn it and be okay and give ourselves permission to suck a little bit in the beginning."
The speaker encourages acceptance of the learning curve associated with transitioning to a new business model and the importance of allowing for initial imperfections.
"Use that if you don't know how to fix your tone."
This practical tip suggests using a mirror or reflective surface to improve tone and communication during sales calls.
"Just because it's change doesn't mean it's bad."
This quote serves as a reminder that change should not automatically be perceived negatively but rather as a potential avenue for improvement.
"Superman ain't coming. It's just us."
The speaker uses this metaphor to convey that individuals must take responsibility for their own actions and not wait for an external savior.
"Thankfully, we're in an industry that we could actually very easily pivot to remote."
Acknowledging the advantage of being in an industry that lends itself well to remote adaptation compared to others that may face more significant challenges.
"Switching to remote restaurant, much more difficult. Switching to remote events. Doing zoom events, not necessarily as valuable as an in person three day event."
This quote provides perspective on the varying degrees of difficulty industries face when adapting to remote operations, highlighting the unique challenges of some sectors.
"So be grateful for what we got."
The speaker calls for gratitude, acknowledging the benefits and opportunities present in the current situation despite the broader challenges.