The Game with Alex Hormozi - No Half Measures | Ep 132

Episode Date: June 21, 2019

"If you're making a change, go all in. Don't let it be incremental. Don't dip your toe in…” Today, Alex (@AlexHormozi) emphasizes the importance of going all in and making significant changes instead of incremental ones, even if it requires sacrificing comfort for more. He shares his own experience of making a central pivot in his business and encourages listeners to confront hard decisions with no half-measures.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.Timestamps:(0:46) - It's scary when making changes, not at a wall.(1:08) - Foresight takes courage. Break and sacrifice for greatness.(4:20) - Begging for your sake. No half measures, full decisions.(7:13) - Willing to burn boats, make sacrifices, and have hard conversations.(9:22) - What do we stand for? Change, grow, or die.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

What's going on, everyone? Happy Tuesday. Hope you guys are going to be rocking and roll in 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. And so I'm just calling this No Half Measures. And so one of the lessons that I've learned, and I feel like I repeatedly learned, and I learned in different situations, is the power of going all in and cutting your ties, burning your boats. And so right now, obviously, we've talked about hybrid and the new model that's coming out. And I want everyone to know, and I'm saying this half to my audience as well as half the people who don't know who we are, that it's scary when you make changes, right? And the time to make changes is not when your back is against the wall, right?

But when the stock market is going well is the time that no one wants to sell, right? That's when no one wants to sell. And then it crashes. And then that's when everyone wants to get out and they lose everything. Right. And so like 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.

That's the sacrifice. It's sacrificing good for great. It's sacrificing comfort. for more, right? And it's, it's, it's, it's almost like a spiritual experience. Like you have to, you have to, the old must die for the new to live. You know, like you can't do this half asked. If you want to commit to something, you have to go all in.

And so like for us at gym launch, like I told our entire team, I was like, we are going all in on this. Like, like, 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 is where I believe the market is going. And for these reasons that support this decision, this is what makes sense and this is where we're going to go. And there are short periods of discomfort that follow those types of decisions that ultimately grow you and will grow your business.

And when you endure through those, you will break through the other side. Now, the amount of people who laughed at people in 2007, right, right before the crash, who were like, I think things are going to happen. Like, I'm selling everything. They're like, you're going to miss out. This thing's a bull market. like this, right? Those guys seemed like fools, except a year and a half later when everyone had lost everything, right? And so I'm telling you right now that the market for gyms is about to contract, right? The market for large group training specifically is about to contract. It's

already happening, right? You look at, like, in the stock market, there's a, whatever, I want to to be getting to that stuff. But like, there's, there are leading indicators, right? There are more gyms that are closing than are opening right now. Hmm. Why? Right? 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 to compete offering an equivalent service, right? And when profits go down or pricing gets driven down, profits almost disappear, and that is why people start going under. Okay. So how do you combat against that? It's not incremental changes. It's not

It's not like it's not one point one point two, one point three. 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. And so I'm saying this because like we at gym launch as of 628 are not going to be selling gym launch anymore. We are not even doing legacy anymore. Everything is all in on hybrid. Right. Because I believe through and through that this is where everyone needs to go. And I also believe that in 24 months, people will look back, and I'm going to have these videos saying that this is what the new model is going to be. Right. And this, like the people who get in now are the ones who are going to be able to

ride the ride that no one else is going to be able to do because they were afraid. And then everyone else is going to try and come in and copy after we have yanked all of the profit. We've dominated all of the market chair with this. Right. And so like, I beseech you, right? I'm begging you for your own good. Do not go half in. There are no half measures. You can't half impregnate someone. You can't half marry someone, right? Like, you can't dip your toe in the water. It does not work that way. Like, 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. It's easy to do nothing. It's easy to stay the same. It's easy to stay comfortable. Right. But the

thing is so many people stay comfortable, stay where it's easy, stay in the road that is trotting, right, that has been walked on. And those are the people who find themselves in the same boat as everyone else. Right. And so it's like, I want to, I want to achieve what no one else has achieved. And you have to do the things that no one else is done, right? Or no one else is willing to do. And more times than not, it's fear. It's pure fear. And so what I will beseech you to do is that you have to walk through the logical outcomes of what happened. What happens next, right? What are my fears?

Right? And you have to paint out your worst case scenario. Real quick, guys, you guys already know that I don't run any ads on this and I don't sell anything. And so the only ask that I can ever have of you guys is that you help me spread the words. We can out more entrepreneurs, make more money, feed their families, make better products, and have better experiences for their employees and customers. And the only way we do that is if you can rate and review and share this podcast. So the single thing that I ask you do is you can just leave a review.

but take you 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. And Layla and I go through this exercise all the time whenever we make a big pivot, right? Mind you, when I, when we, we just made this change, right? And we're in the middle of it and on 628, it will be 100% done. But like, I am taking a 25% hit on my cash flow. Significant, right? Businesses don't run on 100% margins, right?

So right now, if you think about your business, if you took 20% percent, 25% of your gross revenue kept your cost the same, what happened? You probably would make less. You might even lose money. Why would I make such a drastic decision? Because I'm all in, right? Because I believe that the truth will always win and that the best model will always win, period. Just given time, right?

And so that is my word for everybody today. It's like no half measures. 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. And then you start to tell yourself the story of like, well, you know, maybe it just wasn't for us or something like that, right?

You tell yourself that story, but it was because you did not go all in. You went half in. And that is why you did not succeed. So like you have to be willing to burn your boats. You have to be willing to make sacrifice. You have to be willing to have hard conversations with your staff, with your clients, with yourself, with your spouse. Because that is what's required, not what's desired, but what is required to get to where you want to go. All right. Sorry, we'll feel it today.

So anyways, I hope you guys are having a great start, you know, to your week. 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, like, they only, they don't go away. They don't go away. They come back and they bite you in the ass with interest. Right. The more time you let something to do, let something not change that you should have changed. stay that way, the bigger the bike gets.

And that happens in stock markets. That happens. And real estate happens in business. And so right now I'm telling you, this is where it's going. Like the market will change. Right now, lifetime fitnesses, goals, you know, 24-hour fitness, all of them have group training classes with highly skilled trainers because they're pooling from the same talent pool as we are.

But my community is so great, everyone's is. Whenever you have humans in a room, you have a good community, right? as long as you're not a dick, right? And the thing is, is you're not even there, your trainers are there, right? So you're not even involved in it, right? 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? And they have $10 million facilities. So how do you compete with that? 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. So anyways, guys, I hope, I hope maybe one person hears this and decides to not dip their toe in, not think, I'm not sure, you know what I mean, sounds like a big change. It is. It's huge. It's a massive change. It's enormous. It's an entirely new way, a new core offer, a new way of doing business, right? It's a new way to do business for me. Entirely, entirely new. I don't need to do this. You know what I mean? I don't need to do this.

But if I stay awake at night and I think to myself, what do we stand for? What I want my life to be about? Then you're left with no other option, right? And then you take yourself down the logic path and you're like, well, then I guess the only thing I have to do is we have to change, right? We got to grow or die. If we say that's our poor tenant, then we got to walk it, right?

And growing or dying is painful, right? Dying is painful. And so is growth. Both are painful. It's just which kind of pain do you want? Right. So anyways, have an amazing day, guys. I hope, I don't know, this inspired somebody who's delaying a decision that you need to make. Maybe you need to let a trainer go, right? Confront it. No half measures. Don't try and lean it off. Confront. Right. Confront. No half measures. Right. You have to make a change. You got to cut classes. Right. Do it. Make the change. All right. No one's going to wait for you. It's just going to build up with interest and that each you way down the road when it's a monster with huge. I'd rather kill a little dragon than a big one. All right. Be easy, guys.

Get you left. Bye!