The Game with Alex Hormozi - When to stop coaching classes...and how to #levelup skillsets to scale your business...HOW TO MINE FOR GOLD FROM YOUR BUSINESS 💰 | Ep 74

Episode Date: August 29, 2018

"If right now your income has been stagnant for some time, it is because you have a lack of skills." Today, Alex (@AlexHormozi) discusses the importance of acquiring high-value skills to level up and scale a business. He includes examples of how investing in leadership, sales, and marketing skills can help increase revenue and productivity.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:(1:26) - Acquire high-value skills to increase income.(3:32) - Increase earnings by selling training hours.(5:34) - Stay in the boring zone to avoid trouble.(8:44) - Manage attention despite parental distractions.(11:00) - Identify lacking skills and improve results.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

What on everybody, happy hump day, happy Wednesday. I hope you guys are having an awesome, awesome week so far. Today I have a video that I have been pondering for a really long time in terms of like putting notes down and what I wanted to cover. I really hope that comes out the way that I want it to. But that being said, one of the number of questions I get from people in general is how to level up, how to move up in their skill set. And I made the headline, when to stop coaching classes, and how to level up your skill sets and scale your business. So ultimately, the business will always be limited by your personal growth and your skill set growth. So an easy example to illustrate that is somebody who's just starting out in fitness is coaching their sessions, right?

So some of the people who are in this group right now are popping all right now, they coach their sessions, right? And so sometimes you get the question. It's like, well, how can I stop coaching these sessions because I can't afford to pay someone to coach these sessions instead of me, right? And the honest truth is that a lot of times you can't afford not to pay someone. Now, the caveat is that the reason that you can't afford to pay someone at this point is because you lack a skill set that allows you to make more money than the $15 an hour that you're making coaching the classes. And so if you have a desire to make more money and yet you are filling your time with

tasks that are a $10 an hour or $15, whatever, you know what I mean? That hourly wage that is below you would like to be making, then that should be an indicator for you that you need to level up and acquire more skills. So the nice thing is, like high value skills are not difficult to acquire, but most people just don't know that that's how it works. So here's the example. The gym owner has been coaching all of his sessions for three years at his gym,

and then all of a sudden the revenue and the business triples because he uses gym launch stuff. Now, you can forget that it's gym launch, but the point is that what happens is he shifts from his time being spent telling people how to squat right and then turns into him selling because selling is a more valuable skill set in the marketplace like and so for that for every hour he meets with two people and he closes one or two at five six hundred dollars and now he goes from making fifteen dollars an hour to making five hundred to a thousand now now how many hours of five hundred dollars an hour does it

take to cover all of your training sessions one sale covers all of your training sessions for the week How important do you think that it is for you to get all of your training session hours back? Probably pretty important, right? And so that would probably be the next skill set that you would need to acquire in order to get out of the day-to-day operations of your gym. Now, the next thing is how to, like, let's be real, though. You're like, well, I'm sure I can sell, but I have people walk into the door. So the reason that the actual gym-launch gyms and gym legacy gyms make so much more and make it so quickly is that we give them two skills, not just sales, but sales and marketing. And once you have both of those together, that's when you can really start cranking and make your own paycheck, right?

And so if you aren't making the money that you want to make, it's because you lack these skills that are necessary to, like, right now you're trading your time for dollars for $15 an hour thing. And you're like, I don't know how to make more. Do I need to train more sessions? And no, obviously not. You need to think differently in terms of what you're trading your time for dollars for. Ultimately, we're always trading our time for dollars, despite what anyone will say. But it's just that like a skill set of leadership is just more difficult to track the hours. is being spent on leading or casting a vision.

But is that more valuable than sales? Yes, right? And so that's the next natural question. It's like, okay, so first thing I need to learn is how to coach sessions, and that's the first thing you do. And then you're like, okay, well, if I can make more than four times, five times as much as that, then for every one hour selling, I can replace 10 hours of training. Awesome.

So I just need to sell for five more hours. Boom, right. Now, for anyone who's working at a gym right now, like, this is how you become more valuable. This is how you become more valuable to the business. It's because you acquire skills that are valued by the business that are valued at a higher rate. You want to get paid more? This is how you do it. Right. Now, what happens, and this is where business owners and entrepreneurs will get stuck, right? This is the obstacle part, is that once you make a transition from, let's say, sales, so you made the transition from coaching to sales, which I think is really, really easy

because the value discrepancy is so enormous. Like, one sale covers an entire week of training sessions. That is how huge the value discrepancy is. And what's crazy is, if you watch an hour's worth of videos and recordings, you can acquire that skill. You should do it. Right. That should make sense. Now, once you do start selling and then you're like, you know what? Now, I've been selling for a while. I get this gig. I feel good about it. Right. It should be at the point where you're almost bored selling. Now, once you're bored selling, what does that mean? It means you need to make a process about it because now you've gotten so good at it that your subconscious is taking over. You have unconscious competence. Awesome.

document it, right? And once you document it, then you can transfer the skill to the next person because teaching people how to sell is more valuable than being able to sell, right? Because then you're scaling an ability, right? So that is the next thing that you would need. Real quick, guys, if you can think about how you found this podcast, somebody probably tweeted it, told you about it, shared it on Instagram or something like that. The only way this grows is through word of mouth. And so I don't run ads. I don't do sponsorships. I don't sell anything. My only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast that you do the exact same thing. So if it was a review, if it was a post, if you do that, it would mean

the world to me and you'll throw some good karma out there for another entrepreneur. Learn. Now, once you're scaling your ability to sell, then you have to start owning the next thing, right? And so the next thing for you is going to be owning the actual business, which is going to be mostly in the beginning, just making sure that it's continuing to rain and what I mean by that is marketing, right? And then casting the vision and running an actual team because that is a skill. How many people have had really shitty managers, right? They didn't have the skill. And so the entire team as a whole operated at a lower level. And so if you can get everybody to operate at twice the productivity, that is a very, very valuable skill. But a lot of people

don't have that in the beginning. And so what happens is there's this jump that needs to happen where you go from selling to leading and marketing, marketing still, because it's still more valuable and probably no one else will do it or have that skill set in your area, right? But marketing and leadership. Now, the thing is, is that when you make that jump, you the new person who's coming into sales isn't that good yet right and when you jump into leadership you're not that good yet either and that's where people get in trouble so how do you not get in trouble when you make your transitions you stay in the boring zone for a little longer than you think you should right and the boring zone is where you're like you boring makes you rich i'll say it over

and over again like a boring business will make you rich as in every day the front desk girl smiles and greased people by name that is boring but that is fundamental business right every day the sessions are great right like the bathrooms are clean the music is fresh like these are simple things like you don't always need to do different a lot of times you should need to be better at the thing that you are doing um something that is really refreshing for maybe the people who are on here right now just a total side note and i'll make a whole video about this but half the people who are watching this are below average just mathematically half the people watching this right now are below average so if you think about it from that standpoint there's a lot of growth for growth there's a lot

things that you can do to be better, right? Because half the people watching this are not even middle. So when everyone's like, man, we're, we totally overdelivered, like we're the best in the area, like you're probably not, because if you were, you'd already be full. Anyways, so let me get back to the main point. Um, skill set wise, as you were acquiring these skills, you have this little, this little gap period. The first thing is when the business is boring, that is when you need to document. All right. That's number one. And you're documenting the process. And then at that point is when you start bringing someone in to start We're shattering, take over a third of the sales, half of the sales, and that way you can get feedback, but you're not at huge cash flow risk, right?

The next thing is that you want to make sure you're stacking cash. That's why it's one of the big things that we have in legacy. Stack cash this full time. Don't then think like, okay, now I finally deserve my vacation because this is the, for three months in a row, I've made $15,000 net. Awesome. That's what you should have been doing for a long time. Put it in the bank, right? Because you don't know how good things will be forever, period. I don't know how good things are going to be. Things are great for us right now, but I don't. know. And so I like to have a huge war chest just in case, right? And so you have that war chest so that when you do make that final transition and you push the person full time into sales, if for some reason cash flow drops or sales drop, you can do so without having to jump back in because you have a cash flow cushion, right? You have a cushion here. And that's what you want. Now, during that period of time, as you're making transition from one third of sales to half sales

to three quarter sales being the other person, that's when you start really investing in consuming all the content around leadership, right? And then practicing it. Because no shit. If you're trying to sell, right, what do you do? You practice. You get in front of people because reading the book is just the beginning. Watching the modules is just the beginning.

But how do you know that you're leading people well? You can see, right? You can see if you're selling them because that's really what it is. It's just a higher level sell. You're selling them on the business. You're selling them on the vision. You're selling them on the future. You're selling them on your customers, right?

Rather than selling them to get their credit card, which is transactional. can only be one time. Now you're selling them for life and you're selling them on a a continual basis, right? Because the reality is you don't just sell an employee one time. You have to sell them on a daily basis. You have to sell them on a weekly basis. That's why the comp cycles exist. That's why you have to have repeated communication cycles because people's motivation dips, right? They forget because their kids get sick and because they get sick and because their parents have issues and blah, blah, blah, blah, right? Other things take

their attention because they are not you yet. They don't manage their attention the way you are trying to because they're not that stage yet. Their attention just gets taken from them left and right and they don't even know that it's happening, right? But you have to know that it's happening. You have to take responsibility for the fact that it's happening. And so you have to be the one who's repeatedly selling them on a regular basis so that they get bought in and so that they keep their productivity high and they ultimately make the business

profitable. So here's a, here's your litmus test for knowing if this is something that you should be investing in. If right now your income has been stagnant for a period of time. right we're not grown in the amount that you think it should have grown as a period of time it is because you have a lack of skills right you have a lack of skills and so if you want to make more and it has been stagnant then it could be you don't know how to sell right and so you're just coaching sessions or maybe you're selling but you don't know how to get someone else to sell for you

so that you can scale your time right maybe that's a set maybe that's what it is or maybe you don't know how to lead and manage people to get the most productivity out of the entire team. Because whenever you take yourself out of the training or like being micromanaging on the trainers or being micromanaging on the admin and front desk or being micromanaging sales, everything drops. Why? Because you're lacking leadership skills, right? And so just look at that as a little litmus test of what skills am I lacking. And if it's been the same, just trying to identify what skill it is. And then once you know what skill it is, then the easy part is just attacking it and then just doing it until it gets better. Crazy, right? So anyways,

I hope that this was valid before you. I think I covered all of the notes, not in any order that I wanted to. But I hope that made sense for you guys. I hope you guys have an awesome, amazing week. Thank you all for giving me your most valuable asset, which is your attention. I hope I give you a good return on it.