No Half Measures Ep 132

Summary Notes


In a candid discussion about business strategies, Alex Hormozi emphasizes the necessity of committing fully to change and innovation, especially in competitive markets like gym ownership. He shares his personal decision to shift his company, Gym Launch, away from its original model to a new hybrid approach, despite the short-term financial hit. Hormozi argues that incremental changes are insufficient in the face of market saturation and impending contraction; instead, he advocates for bold, transformative actions. He encourages entrepreneurs to confront fears, make tough decisions, and "burn their boats" to ensure success, rather than taking half measures that guarantee failure. This approach, he believes, will position Gym Launch and like-minded businesses to dominate the market and achieve unprecedented success.

Summary Notes

Introduction and Context

  • Speaker A opens with a greeting and a mention of the day, Tuesday.
  • Speaker A expresses a desire to discuss a particular lesson learned over the past six months of 2019.

What's going on, everyone? Happy Tuesday. Hope you guys have been rocking and rolling. Tuesday start to the week. I wanted to make this about. I've had many lessons over the last six months or whatever month it is for 2019, and I wanted to share one of them in particular with you because it kind of came up fresh today.

The quotes set the scene for the podcast, indicating that Speaker A will be sharing a lesson learned recently.

No Half Measures

  • Speaker A introduces the concept of "no half measures" as a key lesson.
  • Emphasizes the importance of commitment, going all in, and not holding back.
  • Uses metaphors like "cutting your ties" and "burning your boats" to illustrate the point of full commitment.

And so I'm just calling this no half measures.

This quote introduces the main theme of the discussion, which is the importance of full commitment to an endeavor.

Timing for Change

  • Speaker A discusses the timing of making changes, suggesting it should not be done when forced by circumstances.
  • Compares the concept to stock market behavior, where people hesitate to sell during good times and rush to sell when it crashes, resulting in losses.
  • Highlights the costs of foresight and the courage needed to break away from what isn't broken.

And the time to make changes is not when your back is against the wall, right? When the stock market is going well is the time that no one wants to sell, right?

This quote emphasizes the idea that strategic changes should be made proactively, not reactively, to avoid panic-driven decisions.

Sacrifice and Vision

  • Speaker A talks about the need for sacrifice, suggesting that one must give up good to achieve great.
  • Describes the process as a "spiritual experience" where the old must die for the new to succeed.
  • Stresses that commitment cannot be half-hearted.

And so the cost of having foresight, of having vision, of seeing what's going to come is the courage to break something that isn't broken. And sacrifice. Good for great, right?

The quote connects the concept of vision and sacrifice to the overarching theme of making full commitments and the necessary courage to pursue greater achievements.

Leadership and Direction

  • Speaker A reflects on their role as CEO of gym launch, sharing the decision to fully commit to a new direction.
  • The CEO's job is described as guiding the team with conviction, even if the decision seems unconventional.
  • Acknowledges the discomfort that follows big decisions but emphasizes the growth and breakthroughs that result from enduring them.

And so for us, at gym launch, I told our entire team, I was like, we are going all in on this. And that's the job of the CEO. That is your job is to look at your team even when they think you're crazy and say, like, this is where I believe we are going.

This quote highlights the CEO's responsibility to lead decisively and inspire the team to embrace new directions, emphasizing the theme of leadership in the context of commitment and change.

Market Predictions and Actions

  • Speaker A predicts a contraction in the market for gyms, specifically for large group training.
  • Suggests that this contraction is already beginning to take place.
  • Reflects on those who anticipated the 2007 market crash, noting that while they were initially ridiculed, they were proven right when the crash occurred.

And so I'm telling you right now that the market for gyms is about to contract, all right? The market for large group training specifically is about to contract. It's already happening, right?

The quote provides a specific example of applying the discussed principles to a real-world scenario, illustrating the importance of foresight and decisive action in business.

Market Saturation and Competition

  • Market saturation occurs when there are too many players in a competitive marketplace.
  • This leads to price pressures, commoditization, and reduced ability to compete.
  • As a result, profits diminish and businesses start to fail.

"Because in a competitive marketplace, once there are too many players in a marketplace, it begins to contract. Price pressures increase and drive down pricing and commoditization increases, which means it's harder and harder and harder to compete offering an equivalent service, right?"

This quote explains the dynamics of a saturated market where competition leads to decreased pricing and commoditization, making it difficult for businesses to maintain profitability.

Necessity for Drastic Change

  • Incremental changes are insufficient in a highly competitive and saturated market.
  • Significant, innovative changes are necessary for survival and success.
  • Speaker A's company, gym launch, is pivoting to a new business model called "hybrid" in response to these market conditions.

"It's not incremental changes, it's massive changes. It's one to zero or zero to one. New things, new models that are going to have to emerge from this, right?"

This quote emphasizes the need for radical changes rather than small, incremental ones in order to adapt to market conditions and remain competitive.

Commitment to Innovation

  • Speaker A believes their new hybrid model is the future of the industry.
  • They predict that in 24 months, this model will be recognized as the new standard.
  • Speaker A encourages full commitment to this change, without hesitation or half measures.

"And so I'm saying this because we at gym launch as of 628 are not going to be selling gym launch anymore, right? We are not even doing legacy anymore. Everything is all in on hybrid, right?"

The quote highlights the speaker's commitment to their new business model and the discontinuation of their old services in favor of the new approach.

Overcoming Fear and Embracing Full Commitment

  • Speaker A urges listeners to commit fully to their decisions and not to take half measures.
  • They stress that success requires doing what others are not willing to do, often due to fear.
  • Full commitment is likened to "burning your boats," meaning there is no turning back.

"It requires burning your boats and making the full decision all in on what you believe is right. And what is right a lot of times is not what's popular and is not what's easy."

This quote conveys the speaker's belief that true commitment to a decision or a course of action requires an all-in mentality, without any room for hesitation or retreat.

Achieving Uncommon Success

  • To achieve exceptional success, one must take actions that others are unwilling to take.
  • Speaker A associates common paths with common results and encourages taking the road less traveled.
  • They also suggest confronting fears by logically considering the worst-case scenarios.

"I want to achieve what no one else has achieved, and you have to do the things that no one else has done or no one else is willing to do."

This quote encapsulates the speaker's philosophy that in order to reach unparalleled success, one must be willing to do what others avoid, often out of fear.

Podcast Promotion and Listener Engagement

  • The host emphasizes the importance of spreading the word about the podcast to help more entrepreneurs.
  • They ask listeners to rate, review, and share the podcast as a way to contribute since there are no ads or products being sold.
  • A simple action such as leaving a review is highlighted as having the potential to make a significant impact.

"The only ask that I can ever have of you guys is that you help me spread the word so we can help more entrepreneurs make more money, feed their families, make better products, and have better experiences for their employees and customers."

This quote underlines the host's primary request from the audience, which is to promote the podcast for the benefit of a wider entrepreneurial community.

"Leave a review, but take 10 seconds or one type of the thumb. It would mean the absolute world to me. And more importantly, it may change the world for someone else."

The host simplifies the action they desire from listeners to a quick and easy task, suggesting that even such a small effort can have a profound effect.

Business Strategy and Commitment

  • Speaker A shares a personal experience of making a significant business pivot that resulted in a 25% reduction in cash flow.
  • The concept of going "all in" when making changes in business is emphasized, suggesting incremental changes won't lead to success.
  • The speaker advocates for a no half measures approach, warning against the consequences of not fully committing.

"I am taking a 25% hit on my cash flow. Significant, right? Businesses don't run on 100% margins."

This quote provides a concrete example of the speaker's own business decision, highlighting the gravity of the sacrifice made for a strategic pivot.

"Because I believe that the truth will always win and that the best model will always win, period. Just given time, right?"

Speaker A expresses a strong belief in the integrity and efficacy of their business model, suggesting that truth and optimal strategies will prevail eventually.

"If you're making a change, go all in. Don't let it be incremental. Don't dip your toe in. Don't say, I'm not really sure, because when that happens, you will not succeed, and you guarantee it."

The speaker stresses the importance of full commitment to changes in business, arguing that anything less than full commitment ensures failure.

The Importance of Tough Decisions

  • Speaker A discusses the necessity of making difficult decisions and having hard conversations in business.
  • They encourage listeners to address issues they've been avoiding, warning that procrastination can lead to compounded problems.

"You have to be willing to burn your boats. You have to be willing to make sacrifice."

This metaphor suggests that success requires a point of no return, a commitment to moving forward without looking back.

"Maybe look at some of the things that you've been putting off that you know are the right decisions and not doing them, because I can tell you, they don't go away."

Speaker A advises listeners to confront procrastination and make the tough decisions they've been avoiding, emphasizing that unresolved issues will only worsen over time.

Market Evolution in Fitness Industry

  • The fitness industry is experiencing a shift with traditional gyms like Lifetime Fitness, Goals, and 24 Hour Fitness now offering group training classes.
  • These classes are led by highly skilled trainers, competing directly with smaller fitness businesses.
  • The community aspect is emphasized as a positive, but it's not unique as it exists wherever there are group interactions.

"Like, the market will change right now. Lifetime fitnesses, goals, 24 hours fitness. All of them have group training classes with highly skilled trainers because they're pulling from the same talent pool as we are."

This quote highlights the current trend in the fitness industry where large fitness chains are expanding their offerings to include group training classes, which were traditionally the domain of specialized or smaller fitness businesses.

Competitive Disadvantages for Small Fitness Businesses

  • Large fitness centers offer more amenities such as parking, pools, and better equipment at a lower cost due to their scale and financial capabilities.
  • Smaller businesses cannot compete on the same terms due to lack of resources.

"And that means that you have the exact same environment that they do, except they're offering parking, amenities, pools, everything, right? Better equipment. And they're doing it at half to a quarter of the price that we are because they have the square footage and they can do that, right?"

This quote explains the competitive disadvantages smaller fitness businesses face when compared to larger chains, which can offer more at a lower price due to their larger scale and better facilities.

Need for Change and Innovation

  • The speaker emphasizes the necessity of playing a different game rather than trying to compete directly with large fitness chains.
  • The speaker is passionate about the need for change in the business model and approach.

"You do not. You play a different game. And that is why I'm so passionate about this, because I'm telling you, this is what's going to happen."

The quote underscores the urgency and inevitability of change in the strategy small fitness businesses must adopt to survive in the evolving market.

Personal Reflection and Business Philosophy

  • The speaker reflects on personal values and the purpose of their life, leading to the conclusion that change is the only option.
  • The core tenet of the speaker's business philosophy is to "grow or die," which implies that both growth and failure are painful but necessary.

"But if I stay awake at night and I think to myself, what do we stand for? What do I want my life to be about? Then you're left with no other option, right?"

This quote reveals the speaker's introspective process and the alignment of personal values with business decisions, highlighting the importance of having a clear purpose and philosophy guiding one's actions.

Embracing Difficult Decisions

  • The speaker encourages action without hesitation, such as letting go of a trainer or a problematic client.
  • There is a call to confront issues directly with "no half measures" and to make necessary changes promptly.
  • Delaying decisions can lead to more significant problems in the future.

"Confront it. No half measures. Don't try and wean it off. Confront."

The quote is a call to action, urging decisiveness and the courage to address problems head-on rather than avoiding them or seeking gradual solutions.

Urgency and Proactivity

  • The speaker uses the metaphor of slaying a "little dragon" versus a "big one" to illustrate the importance of dealing with problems early.
  • There is an emphasis on the urgency of making changes and not waiting for external forces to compel action.

"No one's going to wait for you. It's going to build up with interest and eat you way down the road when it's a monster with huge ass teeth. I'd rather kill a little dragon than a big one."

This quote stresses the importance of proactive problem-solving and dealing with issues before they grow out of control, using vivid imagery to convey the potential risks of inaction.

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