The Obstacles to My Success (on Behind the Brand with Bryan Elliot) Pt. 1 March '22 Ep 492

Abstract
Summary Notes

Abstract

In a candid conversation with Brian Elliott, Alex shares his journey from a disillusioned management consultant to a successful entrepreneur in the fitness industry. Alex recounts the pivotal moment when he chose personal fulfillment over his father's expectations, leading him to abandon a secure career path and embrace the uncertainties of entrepreneurship. Despite a series of setbacks, including failed partnerships and financial crises, Alex's resilience and innovative spirit shine through as he pivots his business model from gym launches to selling his gym turnaround system, ultimately finding success by capitalizing on his expertise and eliminating reliance on unreliable partners. His story is a testament to the power of self-awareness, adaptability, and the courage to pursue one's own definition of success.

Summary Notes

Personal Joy vs. Discontentment

  • Identifying sources of joy is more challenging than acknowledging sources of discontentment.
  • Discontentment can be linked to changeable aspects of life such as job, relationships, and location.

"It's a much harder question to answer. What are the things that bring me joy than answering the question, what are the things I hate?"

This quote highlights the difficulty people often face in pinpointing what brings them joy compared to what they dislike, suggesting a potential focus on the negative in personal reflection.

Introduction to the Show's Focus

  • The podcast aims to discuss customer acquisition, increasing customer value, and retention.
  • The hosts share their experiences, including failures and lessons learned in business.

"Welcome to the game 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 we have learned along the way."

The quote outlines the primary topics of the podcast, emphasizing the hosts' commitment to sharing practical business insights and personal experiences.

Career Transition and Family Expectations

  • Alex transitioned from a management consultant to pursuing his own path.
  • The decision was influenced by a desire to live a life not solely determined by his father's expectations.
  • The concept of mortality provided clarity in making life decisions.

"And one day I looked out for my balcony because I had a really nice place because I could afford it at the time. And I was like, is this it?"

Alex reflects on a pivotal moment of self-questioning that led to reevaluating his career and life choices, despite external measures of success.

The Impact of Mortality on Decision-Making

  • Mortality is a significant driver in Alex's life decisions.
  • Awareness of mortality can lead to greater clarity and independence in decision-making.
  • Subjective well-being across the lifespan tends to follow a U-shaped curve, with the lowest points in middle age.

"Mortality has been the single biggest driver and the biggest decisions that I've made in my life."

Alex cites mortality as a critical factor in his decision-making process, suggesting that the awareness of life's finiteness can lead to more authentic choices.

The Role of Legacy

  • Alex challenges the traditional notion of legacy and its importance over an extended time horizon.
  • The significance of one's legacy may diminish over generations.

"And so if that was that level of success and legacy, and only four or five generations later, I don't even remember the man's name, nor do I have any piece of that legacy. It seems a little bit irrelevant."

This quote expresses Alex's perspective on the fleeting nature of legacy, using his own family history as an example to question the long-term relevance of one's achievements.

The Pursuit of Fitness and Entrepreneurship

  • Alex left his job to pursue a passion in the fitness industry.
  • He faced personal and financial hardships, including living conditions, to start his business.
  • The decision was a calculated risk based on potential learning and financial outcomes compared to traditional career advancement.

"I ended up quitting that job, sold everything I had, packed my car, went to California, because that's where I thought the land of fitness opportunity was."

The quote describes Alex's bold move to change his career path, highlighting the sacrifices and risks involved in pursuing a passion.

Motivation and Fear

  • Initially, Alex's motivation was driven by fear, including the fear of failure and disappointing others.
  • His father's reaction to his career change was negative, rooted in his own experiences as an immigrant.

"I mean, at first I was driven by fear, okay? It was all fear. Fear of failure, fear of disappointment, fear of other people's judgment."

Alex admits that fear was a significant motivator in his early career, illustrating how emotional factors can influence professional choices and personal growth.

Recognition of Privilege and Emotional Decisions

  • Acknowledging privilege is important, but it can also come with its own set of challenges.
  • Emotional decisions can be as influential as logical ones when making life choices.
  • Discontentment with one's current life situation can be a powerful motivator for change.

"Yeah. I think it's healthy to recognize your privilege, but at the same time, it came with lots of baggage, too." "The emotional decision was, I don't want to do this. This is not the life I want to lead."

These quotes highlight the recognition of privilege and the emotional factors that drive decision-making. The speaker acknowledges the complexity of their situation, which includes both advantages and personal struggles.

Identifying Unhappiness and Pursuit of Joy

  • Knowing what does not make one happy is a crucial step toward finding joy.
  • Family pressure and expectations can influence personal decisions, but it's essential to consider the context of such advice.
  • Finding joy can be a more challenging but more rewarding pursuit than simply avoiding unhappiness.

"I didn't know what made me happy. I knew what was not making me happy." "What are the things that bring me joy?"

The speaker emphasizes the importance of understanding one's own sources of unhappiness to navigate towards joy. They suggest that identifying what doesn't bring happiness is a starting point for discovering what does.

The Journey of Unlearning and Self-Permission

  • Unlearning societal or self-imposed 'rules' is a continuous process.
  • Giving oneself permission to explore and make changes is crucial.
  • There's a tendency to overestimate how much others think about us, which can limit our actions.

"And I continue to unlearn rules that I thought existed as I continue to go on this journey." "We have a lot more leeway than I think we give ourselves credit for."

These quotes reflect on the process of unlearning and the freedom that comes with it. The speaker suggests that people often constrain themselves based on misconceptions about others' expectations.

The Role of Education and Contextual Advice

  • Education can be a life-changing opportunity, but its value may be perceived differently across generations.
  • Advice from previous generations may not always apply to current contexts.
  • Understanding generational differences can help reconcile differing viewpoints.

"Education saved his life. He was only able to leave the country because he was educated." "And when we did come to terms later, the only time he's ever apologized to me in my life, he said after his apology, he qualified and said, but to be fair, in my time, I would have been. Right."

The speaker discusses the transformative power of education in their father's life and the generational differences in perspectives. They highlight the importance of contextualizing advice based on time and circumstances.

Discovering Personal Passions and Market Rewards

  • Personal interests can align with market demands, leading to both enjoyment and financial success.
  • Discovering a passion for business over a previous interest in fitness was a turning point.
  • Luck is acknowledged in finding joy in a profitable market niche.

"And it's in indirect ways like that. I just happen to love this, and because of that, I will do it for a long period of time, for more than most people, and enjoy learning about it and talk to people in my free time and do everything I can, because it's just the thing I like. And it just so happens to be rewarded monetarily. Well."

This quote illustrates how the speaker's personal passion coincidentally aligned with a profitable market, leading to success and fulfillment. The speaker notes the fortuitous nature of this alignment.

Business Strategy and Growth

  • Different business strategies can lead to varying levels of success.
  • Partnerships can be challenging, especially when there are disagreements on the business direction.
  • Acquiring and launching businesses can be a path to financial success, but it requires strategic decision-making.

"I wanted to be a premium price leader. He wanted to be the low cost leader." "That gym I acquired, compared to the other four. The other four I started, this one I acquired, and I acquired for no money down for $50,000 over a year."

These quotes discuss the speaker's experiences with business partnerships and strategy. They also explain how acquiring a gym led to immediate financial success, contrasting with previous business starts.

Personal Challenges and Resilience

  • Personal hardships, such as legal issues and family health crises, can occur alongside professional endeavors.
  • Overcoming these challenges requires resilience and adaptability.
  • The speaker reflects on patterns in their life, such as seeking father figures, and the lessons learned from these experiences.

"I got a DUI, head on collision. My mother went to the hospital." "I kept repeating the same mistake until I had to learn."

These quotes reveal the personal struggles faced by the speaker during their professional journey. They also indicate a pattern of seeking approval and the eventual realization that led to personal growth.

Alex's Business History and Lessons Learned

  • Alex had success with businesses he owned solely but lost money in partnerships.
  • Sold his gyms to enter a new partnership, which ended with financial loss due to a partner's mismanagement.
  • Realized the importance of ownership and control in business ventures.
  • Experienced the difficulty of managing a business with no funds and high obligations.

"I made a ton of money in. In all the businesses that I partnered with, I had made no money and lost money in." "Woke up, all the money was gone."

The quotes emphasize the contrast between Alex's success in sole proprietorships versus his failures in partnerships, highlighting the importance of careful partner selection and the risks involved in shared business ventures.

Layla's Contribution to Recovery

  • Layla launched a gym in Hawaii, successfully raising enough funds to manage refunds and exit a failing business gracefully.
  • Her success provided a financial lifeline during a critical period.

"She crushed it. She did 100,000 and collect it, and that was enough to fund all the refunds for all of the members to gracefully, which was not graceful, exit the facility."

This quote underscores Layla's significant role in mitigating a financial crisis through her successful gym launch, which was pivotal in resolving the issues created by the previous partnership.

The Importance of Word of Mouth for Podcast Growth

  • Alex emphasizes the reliance on word of mouth for the growth of his podcast.
  • He requests listeners to share and promote the podcast as he does not use ads or sponsorships.

"The only way this grows is through word of mouth."

The quote highlights the organic growth strategy for the podcast and the importance of listener engagement and support in its success.

Personal Struggles and Realizations

  • Alex faced numerous personal challenges, including a DUI and a head-on collision.
  • These incidents prompted him to reevaluate his life and make significant changes.
  • He ended unhealthy business partnerships and refocused on his priorities.

"Alex, your stress is literally going to kill you." "I ended that partnership. I ended the partnership with the agencies."

These quotes reflect the turning point in Alex's life, where he was forced to confront the consequences of his stress and take decisive action to improve his situation.

The Launch Business and Financial Rollercoaster

  • Alex and Layla decided to focus on their gym launch business.
  • They faced a series of financial hurdles, including a payment processor holding funds and navigating daily debits without sufficient cash flow.
  • Despite these obstacles, they managed to find solutions and keep the business afloat.

"I had $23,000. So I paid him the 22, and the $100,000 that I made from the sales never came." "I now had $1,000 total during this period of time."

These quotes illustrate the precarious financial situation Alex and Layla were in, showing the tight margins they operated under and the risks they took to ensure the success of their gym launch business.

Commitment and Partnership

  • Layla demonstrated her commitment to Alex and the business during a moment of crisis.
  • She expressed her willingness to support him unconditionally, solidifying their personal and professional partnership.

"I'd sleep with you under bridge if it came to that." "She's with me. Ride or die."

The quotes capture the deep level of commitment and trust between Alex and Layla, which became a foundational element of their partnership and future success.

Overcoming Adversity and Building Resilience

  • Alex and Layla faced additional challenges with gym owners undermining their business model.
  • They persevered through these setbacks, learning from each experience and adapting their approach.

"She was, like, white. And I was like, what's going on? And she turned her laptop to me, and there was just scrolls of negative transactions on our account."

This quote conveys the shock and gravity of the situation they faced with the refunds, highlighting the constant adversity they had to overcome to maintain their business.

Strategic Problem-Solving and Growth

  • Despite facing a series of financial and operational challenges, Alex and Layla continued to find creative solutions.
  • They worked tirelessly to secure payment processing capabilities and fulfill their obligations.
  • Their determination and strategic problem-solving led to eventual profitability and stability.

"I ran 50 grand, and then two days after I earned 50 grand, which was enough to cover the $100,000, the 3300 a day that was coming out of the card."

The quote demonstrates the strategic financial maneuvering required to navigate the complex situation, showcasing their ability to problem-solve under pressure.

Gym Business Struggles and Unethical Partners

  • Alex discusses the financial challenges his gym business faced due to partners encouraging clients to request refunds.
  • The gym business had a high rate of refunds, which caused a significant financial strain.
  • Alex's partner, Leila, had a side business that was profitable and had no costs associated with it.
  • They decided to focus on expanding Leila's business to cover the financial gap caused by the refunds.

"And so these guys were just like, you know, would be cooler is if we just told them all to refund, and then we got half the money."

This quote highlights the unethical suggestion by the partners to encourage refunds and benefit financially from it, contributing to the business's financial issues.

"And so it was like this impossible situation where I looked at Leila and I was like, okay, if you fly out and I fly out, we can both do 100,000, and we can make sure the gyms don't do anything stupid, and we can cover the 150."

This quote represents Alex's plan to mitigate the damage by having himself and Leila work to generate income and prevent further poor decisions by the gyms.

Pivoting Business Strategy

  • Alex and Leila decided to pivot their business strategy to focus on Leila's profitable online personal training business.
  • Alex created sales copy and ad campaigns to scale Leila's business, which quickly started generating significant revenue.
  • They abandoned the original gym business model and switched to selling their gym launch system to other gym owners.

"What if we just blow you up? And so she said yes. And I spent pretty much every weekend moment after that writing the best sales copy of my entire life, writing an amazing ad campaign, and launched everything within, like, 48 hours."

This quote explains the decision to focus on Leila's business and Alex's efforts to scale it rapidly through effective sales and marketing.

"I think we're still in the gym business, I think we're just doing it wrong."

This quote signifies the realization that their expertise could still be valuable in the gym industry, but through a different business model.

Selling the Gym Launch System

  • Alex sold his gym launch system to a gym owner for $6,000, which was the start of a new business opportunity.
  • He continued to sell the system to more gym owners, adjusting the price upwards and generating significant sales in a single day.
  • The system included detailed sales scripts, training videos, and a proven method for gym launches.

"I said, $6,000. Now, mind you, this is the sim was doing $100,000 in every single gym we launched in a month. And he's like, deal."

This quote reveals the initial pricing strategy for selling the gym launch system and the immediate acceptance by the gym owner, indicating the system's perceived value.

"We know this conversation like that. I could still do it. Still. All that stuff was documents."

Alex explains that their gym launch process was well-documented and effective, which made it an attractive product for other gym owners.

Creating and Selling Educational Modules

  • Alex had created professional training videos and modules for gym owners, which he then repackaged and sold.
  • The educational content was specific and detailed, teaching gym owners how to effectively run and scale their businesses.
  • Alex emphasized the importance of focus and not being distracted by other business opportunities when creating these modules.

"Mine was an hour long training that taught someone how to fucking close. And it was this particular product at this price point for the gym."

This quote discusses the specific and targeted nature of the training modules Alex created, which were designed to produce immediate sales results.

"I just didn't have the ads part, like, documented. So I documented that, and I sent it out."

Alex mentions the final piece he needed to document for his system, which was the advertising component, completing the package for other gym owners.

Lessons on Partnerships and Business Growth

  • Alex reflects on the lessons learned from failed partnerships and the importance of self-awareness in business.
  • He discusses the optimal number of founders for building huge companies and the importance of having complementary skills and aligned values in a partnership.
  • Alex learned to operate a business on his own before understanding how to successfully partner with others.

"Terrible reason to get into business together. But like y combinator, we were talking about this offline 2 seconds ago. Y Combinator has shown that three partners, three founders is actually the sweet spot."

This quote addresses the common pitfalls of forming partnerships and references Y Combinator's findings on the ideal number of founders for a successful company.

"I'm not against partnerships at that time. Time did not understand how to partner and therefore was only able to successfully have business when it was just me."

Alex acknowledges his initial lack of understanding of how to form effective partnerships and how he had to learn to run a business independently before partnering with others successfully.

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