Latest / The Hannah Hammond Show / How to Build & Scale a 7-Figure Business (The Masterclass Every Entrepreneur Needs)

Transcript

How to Build & Scale a 7-Figure Business (The Masterclass Every Entrepreneur Needs) · The Hannah Hammond Show

• 0:00
  Say I'll sound like a hypocrite because I tell people go
• 0:02
  singularity of focus right now on the one thing and when people
• 0:04
  go well, I don't know what my one thing is.
• 0:06
  Do I get the position of the CEO?
• 0:08
  Absolutely. Do I want it?
• 0:10
  I actually came to the conclusion, no, I don't.
• 0:12
  I don't actually stresses me out.
• 0:13
  I don't want to walk into these L10 meetings every week and then
• 0:16
  say, no, guys, I'm sorry. But since I'm Bedros, you can't
• 0:19
  fire me. You can't chastise me.
• 0:22
  I can just ask for an extension on my deadline, right?
• 0:24
  Which then creates A bottleneck for everybody else.
• 0:26
  And as the business gets more complex, let's create a new
• 0:28
  process. 300 locations. We added a few more processes in
• 0:31
  place. 500 locations added more processes and then had to get
• 0:35
  rid of some people because they weren't able to run the complex
• 0:37
  processes. I could stay away till 2:00 in
• 0:39
  the morning, watch TV, goof off, eat bagels, do whatever I want
• 0:42
  because I was stressing. I'm an emotional and stress.
• 0:44
  I was an emotional and stress eater.
• 0:46
  I wasn't a good leader. I wouldn't show up to meetings
• 0:49
  on time and when I would show up I was unprepared and because of
• 0:52
  that I would start feeling anxiety and all that led to a
• 0:55
  massive panic attack. Chest gets tight, tunnel vision,
• 0:58
  hearts racing, sweaty palms. Both arms are like tingling.
• 1:02
  And I remember reading somewhere like in some high school like
• 1:05
  health class that like if an arm tingles are having a heart
• 1:08
  attack. So I'm like, fuck, both arms are
• 1:09
  tingling. This is the big one.
• 1:10
  This is how I go. So as I stumble down the
• 1:12
  staircase, I don't know if it's the fresh air.
• 1:13
  I don't know if it was the movement.
• 1:14
  All of a sudden this all these feelings went away and I'm left
• 1:17
  in a sweaty puddle. I was like, holy shit, I think I
• 1:18
  just dodged a heart attack. Billion dollar company comes
• 1:21
  with billion dollar headaches, but I'd rather have billion
• 1:23
  dollar headaches than third world problems which are I can't
• 1:26
  even keep my lights on. All right, so I am so excited to
• 1:29
  have Bedrose Cooley and sitting in front of and you were just
• 1:32
  literally the epitome of the American dream.
• 1:34
  I mean, you went through severe trauma as a child that most
• 1:38
  normal people would never be able to overcome.
• 1:41
  Your family escaped communism and you're an immigrant to the
• 1:44
  United States. And you just, we were just
• 1:46
  talking offline and your father came with $200 in his pocket
• 1:50
  with his whole family. And then you went through
• 1:53
  obviously a childhood of struggled with addiction and
• 1:56
  food addiction, which we share. And in common, that's always
• 1:58
  been my biggest culprit. And then you went on to build
• 2:01
  multiple multi $100 million companies.
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  You have the largest fitness franchise globally with 500,
• 2:06
  approximately 500 franchise locations called Fit Body Boot
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  Camp. You are a speaker.
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  You're a best selling author on the New York Times bestseller
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  list for your book Man Up. And you're also one of the most
• 2:17
  renowned business coaches out there.
• 2:19
  And I know I look up to you so much.
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  And my best friend Maisie's here right now, and she's just been
• 2:24
  following you for the longest time.
• 2:26
  Thank you, by the way. Yeah.
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  But man, you just like you've done it all, Bedros, and I
• 2:31
  respect you so much because you not only like demand your
• 2:35
  highest potential, you actually go claim it.
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  And not only do you do it for yourself, but you do it for
• 2:40
  other people too. And you push other people to do
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  it. And it's like we have this one
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  life and so many people play it so safe and they play it so
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  small. And you inspire people to live
• 2:51
  their best life and create an empire and not sacrifice their
• 2:55
  family, not sacrifice their health, not sacrifice their
• 2:58
  sanity, like their mental health, their relationships, and
• 3:01
  still dream big, push big, take accountability, take
• 3:04
  responsibility. Stop drinking the liquor, stop
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  smoking the weed, stop watching the porn, stop doing all this
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  shit that controls you and like, create a beautiful life.
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  And that's everything that I want to do.
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  So I'm really inspired by you and I'm just really honored to
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  have you. How?
• 3:19
  How old are you? 28. 28, Just know that I'm 50.
• 3:23
  I know I shared that with you before the mic started to roll,
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  but your audience needs to know I'm 50.
• 3:27
  So between 28 and 50, you will experience stress fractures.
• 3:32
  Stress fractures are good. You look at stress fractures in
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  a bone or you look at scar tissue on the human body.
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  It's always the strongest part of that bone or the body.
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  And so to get to where I am and where others like me are at, you
• 3:47
  don't get there unscathed. Just so you know, right?
• 3:50
  Everything you mentioned, I can check off, check off, check off,
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  check off, check off. But that doesn't mean someone
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  young like you learning that you want to encounter your own
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  variations and versions of it because you're about to start
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  demanding even more of yourself limits.
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  Like you don't even know how much risk tolerance it's going
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  to take, how much shit you're going to have to eat, how many
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  decisions you're going to have to make without having even 50%
• 4:11
  of the information you need to make the right decision.
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  Decisions that you'll make that will cost you hundreds of
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  thousands when you're small, that will cost you millions when
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  you're at my level. I make them often and those
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  decisions happen, but that's part of the game.
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  And if you can accept that, that's what it takes to get on
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  the field from the bleachers, it's a beautiful game.
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  But you're going to walk off the field to sometimes dazed and
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  confused, sometimes limping and that's OK.
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  That's that's the game of life. Most people are spectators in
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  the bleachers. And I invite people to get on
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  the field, but I am also brutally honest and letting them
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  know like you can watch me and others and talk about addictions
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  and abuse and bucked up relationships and this that and
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  the other. And then you'll go and create
• 4:47
  your own variations of it, because to get to this level,
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  there's a lot of sacrifice, risk, decisions that have to be
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  made that some might even call ruthless.
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  So for somebody like me, I have a dream of building a billion
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  dollar empire and I want to be a billionaire and I want to serve
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  as many thousands of people as I possibly can.
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  And I know my purpose on this earth and I know that God gave
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  me a gift to create and I'm a creator.
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  I'm in a textbook visionary. And so, you know, for somebody
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  that has it together, that has the vision, that has the
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  discipline, that has the responsibility and I see it all.
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  I just like I see everything. I see how it needs to happen,
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  how it has to work, who needs to be in place to make it happen?
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  But yet I am so far from that. It's like the tunnel is so long
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  and I could see it happening in so many different ways.
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  Like there's so many opportunities I could be
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  successful in so many businesses and so many decisions.
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  And I almost get like I'm in this analysis paralysis right
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  now of I don't know what to focus on because I have my real
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  estate brokerage and I just launched a debt fund in a
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  lending company And I see that scaling nationally and having a
• 5:45
  big exit. But I also see like being a one
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  stop shop for real estate investors and really having an
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  edge where we help investors find the deal and fund the deal
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  and sell the deal. And if they don't want to do it
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  active, they can passively invest in the deal.
• 5:56
  I love your advice on scaling. Do you think that as a textbook
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  entrepreneur and you're somebody that's involved in multiple
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  businesses, should someone really just dial in and focus on
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  one thing and master that first before they do other things?
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  Or do you think somebody can be successful building and scaling
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  multiple companies at once? So I'm going to sound like a
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  hypocrite when I say someone can be very successful building and
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  scaling multiple companies at once.
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  However, once you've built your first big empire and the reason
• 6:25
  is when you build your first big business.
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  For me, it was fit body boot camp, right?
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  I started fit body boot Camp. I went singularity of focus on
• 6:33
  it like nothing else mattered. I wanted to start a supplement
• 6:36
  company and an apparel company a decade and a half ago, but I was
• 6:39
  like, until I have at least 400 Fit Body Boot Camp locations,
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  singularity of focus because I knew that if I could do that, it
• 6:45
  would give me so much freedom money that I can then buy
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  leaders from my other companies. And so today there's a gentleman
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  named Bryce Henson, one of my mentees from many, many years
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  ago. He's the current CEO of Fit Body
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  Boot Camp. He has a full commitment of Fit
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  Body Boot Camp. I meet with him once a month and
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  him and his leadership team of Fit Body Boot Camp and then they
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  do the daily execution. Same with my supplement company,
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  Jeff Rosenquist, he's the VP of IT.
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  I meet with him once a week because my supplement company's
• 7:14
  only four years old, so still needs a little more daddy time.
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  So I meet with them once a week instead of once a month, but
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  they go execute Fuel Hunt Apparel, now an 8 figure
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  company. When I got on board, they were
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  making approximately $1500 a day in sales.
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  That was two years ago today, 20, five, $30,000 a day in sales
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  of apparel, rash guards for jiu jitsu, combat shorts and then
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  just made in America cool T-shirts and stuff.
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  But I share that with you because I had dreams of all of
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  those things, but I had gone singularity of focus.
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  And I say I'll sound like a hypocrite because I tell people
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  go singularity of focus right now on the one thing.
• 7:49
  People go, well, I don't know what my one thing is because I'm
• 7:52
  a visionary. I'm an eagle, right?
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  Cool. Might sound harsh, but I would
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  say, well, if I were to put a gun to your head and make you
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  pick one, what would you pick? Everyone knows the answer.
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  When there's a metaphorical gun to your head, you know the
• 8:04
  answer. You start with that one, but
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  that doesn't mean we're killing the rest.
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  I'm just putting it on pause. You make this one so profitable
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  and so systematized. You put a leader in and then
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  with the rest. Now new companies that I either
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  acquire or start, I start them with leaders in place.
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  I don't figure out what do I need to do to launch.
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  Like let's say I was going to create a software company.
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  I wouldn't go, what do I need to do to create a software company?
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  I say, who do I need to get to help me bring this vision of a
• 8:30
  software company to life? If I want to start an automotive
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  company, who not what do I need to do right?
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  But I'm at a place where I could deploy my money, hire people and
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  teams and create processes and then they can execute.
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  So go singularity of focus. When that's giving you enough
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  freedom money, you can start hiring teams and people and now
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  literally do what I do. I can take equity in as many
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  companies as I want. And even yesterday I was on a
• 8:54
  phone call with this dude and he's like, man, I just want to
• 8:56
  give you equity in my company. We have three partners, but
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  we'll divide it up four ways. We'll have 25%.
• 9:01
  You don't have to buy in that. I'm like, actually, I like your
• 9:03
  industry, but I don't want to be in it.
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  It's in the jujitsu, competitive, like combat
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  fighting things. But like, I don't want to be in
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  it because you'll get to a place as you build your personal brand
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  off this one thing, as you build freedom, money as you are known,
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  as you write a book on it. You're the expert about it.
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  Now you have so many people who want to work with you and for
• 9:22
  you. You can bring all your other
• 9:24
  visions to life a lot quicker. Does that make sense?
• 9:26
  Yeah, because I love that who not how right you've read that
• 9:29
  book, right? It's such a great book and it
• 9:31
  helped me as I grew my business. But to get to where I got so
• 9:35
  far, it was just a grind. It was I was in the weeds of
• 9:37
  everything, wearing all the hats and then hiring an assistant,
• 9:40
  teaching the assistant, hiring an EA, teaching the EA.
• 9:43
  But I've never been able to have the at this point, I haven't had
• 9:45
  the capital or the capacity or the wherewithal to hire from the
• 9:48
  top down. And so like for instance, for
• 9:50
  this new lending company, if I had a gun in my head, it's the
• 9:52
  lending company because I see the scalability, I see the
• 9:54
  EBITDA multiple I could get. I see the freedom that it brings
• 9:57
  in the work from anywhere and the virtual model and all these
• 9:59
  things and the need for asset based loans.
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  Like that's never going away. And I hate working with
• 10:05
  traditional banks myself. So it was feeling my own need.
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  But what's got me here is not the lending company.
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  That's a new thing. What got me here was the real
• 10:13
  estate brokerage. And so it's almost like almost
• 10:16
  letting go of what got me here to get me there and take the
• 10:19
  leap of faith into a vision that I haven't actually executed on.
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  How do you find that? Who?
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  How do you find a players? That's a really good question.
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  So you're not going to find A players by putting out ads on
• 10:30
  Indeed and, and, and other platforms, right?
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  Because I always say, if someone in an economy like this doesn't
• 10:35
  have a job, they're not an A level, they're probably B -, C
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  level players. And so you have to remember I
• 10:41
  said there's ruthlessness involved at this level.
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  You have to recruit. So if I know, for example, let's
• 10:47
  say the lending company, you're like, if I had a gun to my head,
• 10:49
  it's the lending company, but I've got this real estate
• 10:51
  brokerage that has done well for me, but I know I could still
• 10:54
  scale it. All right, Well, I'm going to go
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  find a second command for someone else's thriving real
• 10:58
  estate company and poach them, offer them an opportunity, an
• 11:01
  opportunity where they can get mentorship access to people,
• 11:04
  maybe equity where they won't be able to get equity there, maybe
• 11:08
  a future partnership, whatever it might be, but I'm going to
• 11:11
  recruit. Poaching sounds a little
• 11:13
  aggressive. You can say recruit and I've
• 11:15
  done that for my for my fit body boot camp brand.
• 11:18
  We needed a compliance officer, but we didn't want to groom one
• 11:21
  from the ground up because it takes some time Federal Trade
• 11:24
  Commission overseas franchises. So as a franchise or I have to
• 11:28
  constantly communicate with the Federal Trade Commission, that's
• 11:32
  a pain in the ass. Federal Trade Commission makes
• 11:34
  franchises have a compliance officer so that we comply with
• 11:37
  whatever the Federal Trade Commission wants.
• 11:39
  So rather than trying to groom one and build one from the
• 11:42
  ground up, I went to some successful franchise brands that
• 11:45
  I felt were similar to what we do as fit Body Boot Camp and
• 11:49
  through LinkedIn, reached out to a whole bunch of people and
• 11:53
  several of them showed interest. One of them was a good fit and
• 11:56
  we welcome come to her on board. And so if you're able to
• 11:58
  recruit, you can find the who's a lot faster.
• 12:01
  If you try and build and develop or hire by putting out ads on
• 12:05
  indeed or you know, monster jobs or whatever, it's going to take
• 12:08
  a long time because the people that don't have a job right now
• 12:11
  or the bottom of the barrel, that's just a reality.
• 12:13
  So I'm going to get AC level player who's probably burnt out
• 12:16
  their heydays or decades behind them and they're going to talk
• 12:19
  about what they used to do instead of what they're able to
• 12:21
  do. I want to recruit from a company
• 12:23
  that's growing, thriving and just bring that person here and
• 12:26
  say, does that make sense? Oh yeah.
• 12:28
  In the real estate brokerage industry, recruiters don't
• 12:31
  recruit like recruiting companies that I, I haven't been
• 12:33
  able to find ones that recruit them because they're mostly
• 12:35
  Commission based. But that would be, you know,
• 12:38
  somebody like that in any traditional brokerage structure
• 12:40
  is 100% Commission. So recruiter recruiting
• 12:43
  companies don't but right? You would be the one recruiting.
• 12:45
  Yeah, so you. Know if you want to hire a
• 12:47
  recruiting company, you'd be the one going, All right?
• 12:50
  Who? Within the 100 miles from here?
• 12:52
  Yeah, right. And I just reach out directly.
• 12:54
  How do you feel about recruiting companies for other roles to
• 12:57
  find C-Suite executives or to find parts?
• 12:58
  I've got a few coaching clients that they've worked for.
• 13:01
  One of my coaching clients, Ashley Lucas, she has a $22
• 13:04
  million weight loss business and we're in the process of two more
• 13:08
  years and she'll be exiting. She's been with me three years
• 13:10
  now, so she'll have spent five years with me.
• 13:12
  She'll be exiting just like me. She's like, look, I'm
• 13:15
  unemployable. I can't sell this company and
• 13:17
  then go work for the private equity that buys it, which is
• 13:20
  why I bought, brought Bryson as my CEO, right?
• 13:22
  When I go to sell Fit Body Boot Camp, I'm not going to all of a
• 13:25
  sudden have a job working as the CEO for Fit Body.
• 13:27
  So I brought Bryson so he could go with the company.
• 13:30
  And so we're in the process of looking for a second in command
• 13:32
  for Ashley for PhD weight loss. And we've kissed a lot of toads,
• 13:37
  but we found a Prince and we think he's the guy.
• 13:39
  So recruiting companies do work, but you're going to have to kiss
• 13:42
  a lot of toads, right? Because you're relying on them
• 13:45
  to go find someone from their pool and their pool, there might
• 13:48
  be people that they've talked to before they plugged into here,
• 13:51
  they they quit or didn't pan out there.
• 13:53
  So now they're going to try and plug them into your company.
• 13:55
  So whenever possible, I'd rather you go out and do that work.
• 13:57
  Priscilla has a really good, good saying.
• 13:59
  He says success is found in inefficiencies.
• 14:02
  And when I heard him say that, we were sitting in a green room
• 14:06
  at Dan Fleischman's event many years ago and I was like, dude,
• 14:08
  say that again. He said success is found in
• 14:10
  inefficiencies. I said, you're absolutely right.
• 14:12
  There's some things that are inefficient, like I should
• 14:14
  probably delegate my assistant to do or second in command, but
• 14:18
  I need to do it and it's inefficient, but only I could do
• 14:21
  it to the level that I need and find that right person for that
• 14:23
  right role. If we're looking for a marketing
• 14:25
  person or head of sales, my team members can go find it, but if
• 14:28
  I'm looking for a second in command, I'm going to go find
• 14:30
  this person. It's very inefficient to do that
• 14:32
  for me. I don't have a lot of time, nor
• 14:34
  do I have a lot of patience, but I'm gonna go do it because I'm
• 14:36
  likely gonna find the right person.
• 14:38
  So recruiting companies do work, but 9 out of 10 times you're
• 14:41
  gonna find the best people for yourself.
• 14:42
  You mentioned one time that you realized you had a bad team at
• 14:46
  some point in your, and I'm sure that's not one time.
• 14:49
  Yeah, multiple times. I'm the king of many times.
• 14:51
  Yeah. So I mean, we talked about the
• 14:53
  part of finding those eight players, but how do you know if
• 14:56
  someone really is right for the role and people are in the right
• 14:59
  seats and are the right players for the team?
• 15:01
  And like, how do you decipher that, determine that and adjust
• 15:04
  for that and try to put? Yeah.
• 15:07
  That's a really good question. So I could almost look at my
• 15:09
  entrepreneurship career now. I'm 26 years in now as an
• 15:12
  entrepreneur and I could look at my entrepreneurship career pre
• 15:15
  2013 and then post 2013. And it was in 2013 that I
• 15:20
  learned about EOS, right Traction, Gino Wickman, and then
• 15:25
  that same year someone, Craig Ballantine sent me Dan Kennedy's
• 15:29
  book, Ruthless Management of People and Profits.
• 15:31
  I haven't. Read that one.
• 15:32
  Great book. You obviously know who Dan
• 15:34
  Kennedy is. You have clearly study direct
• 15:36
  response. You know this, but Dan Kennedy's
• 15:38
  Ruthless Management of People and Profits and Wickman's book
• 15:41
  Traction opened my eyes. And once you do the people
• 15:44
  analyzer, you quickly know whether you got the right seat
• 15:46
  on the bus or not. If there's a third book I would
• 15:48
  recommend in in terms of finding the right people, it would be
• 15:51
  good to great by Jim. Collins, Jim Collins.
• 15:54
  I'm reading it right now. Exactly.
• 15:56
  Great book. Between those three books, you
• 15:58
  learn one very specific thing. First, the GWC filter to this
• 16:02
  individual that I have in the seat, do they get the position?
• 16:05
  Do they want the position and do they have the capacity to
• 16:08
  perform the position? GWC right now, no more emotions.
• 16:12
  Now you're not thinking like, well, you know, B and I hang
• 16:14
  out, we get lunch together, we work out together, we're homies,
• 16:17
  we're friends, and I think he gets it, he wants it.
• 16:19
  He has a capacity. I just haven't done a good job
• 16:21
  training him up. Nope, forget all that.
• 16:23
  No emotional connection because when you're doing EOS, you
• 16:26
  elevate to a board member and advisor instead of the actual
• 16:30
  role that you have in your company and you go what's best
• 16:32
  for the company does Bryce, I got EOS out of my own company.
• 16:35
  Fit body boot camp. Not out isn't like you're gone,
• 16:37
  but I was the CEO, Bryce was my VP and one day we're sitting in
• 16:41
  a in AL 10 meeting, level 10 meeting.
• 16:43
  For your audience who doesn't know, just read the book
• 16:46
  traction by Gino Wickman. Follow that up by rocket fuel.
• 16:49
  Same guy, Gino Wickman and and then install EOS.
• 16:52
  In fact, I won't even take equity in a company unless part
• 16:55
  of that deal is that they will start using EOS and they'll
• 16:58
  start using Brian Underhill, my EOS best implementer and all the
• 17:02
  companies that I've taken the equity in because he's like this
• 17:04
  fucking savant where EOS implementation is concerned.
• 17:08
  So anyways, one day we're sitting at a level 10 meeting,
• 17:10
  which is part of EOS and Bryce is going through, he's my, I'm
• 17:14
  the visionary and he's my integrator using the EOS terms.
• 17:17
  And he says going over the rocks and hey, B, did you get this
• 17:21
  rock done? No, not done yet.
• 17:23
  B, did you get that rock done? No, not done yet.
• 17:25
  And they turned to Brittany and his second in command.
• 17:28
  And she kind of gave him a nod. And they had already planned
• 17:31
  this out. Like if this happened again,
• 17:33
  'cause this was like like the third week of me saying, sorry
• 17:36
  guys, I need more time to get my rocks done right, my deadlines
• 17:38
  in. So he's like, hey, B, we want to
• 17:40
  use the people analyzer on you and see if you're a good fit for
• 17:44
  the visionary position. I was like, fair enough.
• 17:46
  I can be open minded. And when they GWC filtered me,
• 17:49
  do I get the position of the CEO?
• 17:50
  Absolutely. Do I want it?
• 17:52
  I actually came to the conclusion, no, I don't.
• 17:54
  I don't actually stresses me out.
• 17:55
  I don't want to walk into these L10 meetings every week and then
• 17:59
  say, no guys, I'm sorry, but since I'm Vedros, you can't fire
• 18:02
  me, you can't chastise me. I can just ask for an extension
• 18:06
  on my deadline, right? Which then creates A bottleneck
• 18:08
  for everybody else. So I had the capacity, I have
• 18:10
  the C, I have AG, but I didn't have the WI didn't not anymore,
• 18:14
  right? Because I got too many things
• 18:15
  going on. And so Bryce said, I think I
• 18:16
  have a solution because you no longer qualify for the visionary
• 18:20
  seat. I go, what's your solution?
• 18:21
  He goes, I'll step into visionary position.
• 18:23
  I was like, all right, wise guy, I could see that you've been
• 18:25
  with me for eight years now, who's going to be our
• 18:27
  integrator? And he looks at Brittany.
• 18:28
  That already worked it out. And what a beautiful transition
• 18:31
  it was. And I now sit in what's known as
• 18:33
  the owner's box, right? And so I just meet with them
• 18:36
  once a month instead of once a week.
• 18:37
  I don't have any rocks to move forward.
• 18:39
  I might have to send a text message to to someone high up
• 18:42
  somewhere, but that's about the extent of my involvement in Fit
• 18:44
  Body Boot camp. But I say this because with
• 18:47
  traction, you're going to learn the people analyzer and the GWC
• 18:50
  filter with good to great. You're going to learn if you
• 18:53
  have the right person on the bus, but maybe they're in the
• 18:55
  wrong seat. And then you can put them in the
• 18:57
  right seat on the bus or pull the Dame bus over and kick them
• 19:00
  out. And then with ruthless
• 19:01
  management of people and profits, you're going to learn
• 19:03
  to fire fast, hire slow. And you're going to understand
• 19:06
  that every single team member from the lowest level to the
• 19:09
  highest level team member has a walking PNL above their head.
• 19:12
  Like, imagine if I looked at you and right over you was this
• 19:15
  holographic profit and loss report.
• 19:17
  And I could see if Hannah is making me money or losing me
• 19:20
  money. If you're an asset or a
• 19:21
  liability, and I look at this PNL and I'll report in two
• 19:25
  halves, money, are you making me money or losing me money?
• 19:29
  And then are you irritating me or bringing in good culture into
• 19:32
  my organization, right. Because you might have people
• 19:34
  who are profitable, they're making you money.
• 19:37
  They're not a financial liability, but they are a human
• 19:41
  liability in terms of they're banging half the sales team or
• 19:45
  they're showing up late or the culture is completely toxic
• 19:47
  because of this person. They're just as bad as someone
• 19:50
  who's not making you money and then you have to fire fast and
• 19:53
  replace them slowly. So good, yeah.
• 19:55
  And I'm just now starting EOS. I start with my trainer, my EOS
• 19:59
  implementer the end of the month actually so.
• 20:02
  If you're not happy with him or her, just reach out to Joan, OK,
• 20:05
  and ask for an introduction to Bryant Underhill.
• 20:07
  And I don't make a penny from him.
• 20:09
  Like, thank you any of that. It's just he's a he's one of
• 20:11
  those like slightly autistic. God, Brian, I hope you're not
• 20:14
  listening to this slightly autistic goofy.
• 20:16
  And then he's mega tall, lanky, gangly, looks like giraffe arms
• 20:20
  and legs. And he and one day after about 3
• 20:23
  EOS meetings, I'm like, hey, motherfucker, come here.
• 20:25
  He's like, what's going on? I go, now that we're on a break
• 20:27
  and my team's not in here, how much cocaine do you use?
• 20:30
  He goes, no, no, I have two rats.
• 20:32
  And he sticks his tongue out. He goes, look, I chew on my
• 20:34
  tongue and I snort. I'm like, motherfucker, all
• 20:37
  right. So other than that, like he's a
• 20:39
  brilliant human being and that just makes him cute anyway,
• 20:42
  lovable. So anyway, if you need a good
• 20:43
  EOS implementer, he's your man. OK, awesome.
• 20:46
  Thank you. That's a funny story.
• 20:48
  Yeah. I swore that he was coked up and
• 20:50
  I was going to, like, kick him out of my company.
• 20:52
  Like, it turns out the guy's got, like, threats.
• 20:54
  Yeah. So part of what I'm also doing
• 20:58
  is building a personal brand and right now a lot of time, energy,
• 21:02
  money and attention is going into that.
• 21:03
  And I love like this. I would do this 100 hours a
• 21:06
  week. I love this.
• 21:07
  And people are like, well, how are you monetizing?
• 21:09
  I'm like, I'm not doing it to monetize it right now, but it is
• 21:11
  part of the bigger vision of building a brand and having
• 21:13
  influence and being able to impact people's lives and being
• 21:15
  able to make money and build an empire.
• 21:17
  So did you build your companies 1st and become super successful
• 21:20
  first before you started building your personal or did
• 21:23
  you build it alongside it? And what role has that played in
• 21:25
  the building of your companies? And what would you advise like
• 21:29
  what time someone like me allocates to doing stuff like
• 21:32
  this, building the brand, producing the content versus
• 21:35
  focusing and grinding and like being in the business and
• 21:37
  building businesses? If I were to go back to 28 years
• 21:40
  old, I would spend even more time building my brand, creating
• 21:43
  content and building my network and less time in the weeds.
• 21:47
  But I didn't know that, right? Years earlier, I should have
• 21:50
  hired a second in command, but I was like no one my baby, no one
• 21:53
  can treat my baby like I can. No one knows the insurance and
• 21:56
  outs. Guess what?
• 21:57
  All businesses are simple. It breaks down to three PS the
• 21:59
  product, whatever the product is, the people as everything
• 22:02
  from you on down and then the processes.
• 22:04
  So if I've got a great product, I just need to hire good people
• 22:07
  who aren't retarded, who can run great processes.
• 22:09
  And as the business gets more complex, let's create a new
• 22:11
  process. Right when we had 100 locations
• 22:13
  that fit body boot camp, we had some simple processes, 300
• 22:16
  locations. We added a few more processes in
• 22:18
  place, 500 locations, added more processes and then had to get
• 22:22
  rid of some people because they weren't able to run the complex
• 22:25
  processes. So brought in better people to
• 22:27
  run the more complex processes and things are going great,
• 22:30
  right? So it's product, people,
• 22:31
  processes, and as long as you can figure that out, then you
• 22:33
  go, all right, I can step out and become the visionary full
• 22:36
  time. It was in 2013 when I did a
• 22:38
  Spike TV reality show with Randy Couture, MMAUSC Fighter.
• 22:42
  And do you remember the TV show Bar Rescue?
• 22:46
  You ruined that one. No worries.
• 22:49
  Someone in your audience remembers the TV show.
• 22:51
  I think it's still out there called Bar Rescue.
• 22:53
  This guy, Jon Taffer, they take this shitty dive bar that's like
• 22:56
  struggling, barely paying its bills.
• 22:58
  There's all this drama, and Jon Taffer, who knows how to make
• 23:01
  bar successful, goes in there. It's like, all right, the
• 23:03
  stool's got to be this high, and the bar needs to look like this,
• 23:05
  and lighting needs to be there, and the windows need to be open
• 23:08
  and whatever. And he turns his bar around,
• 23:10
  right? So Spike TV started that, and
• 23:12
  the show's been running very successfully for many years.
• 23:14
  So then they were like, you know what, what other business like
• 23:17
  that can we turn around pretty quickly a hot gyms.
• 23:19
  So they hire me and Randy Couture to do gym rescue.
• 23:22
  And so we did the pilot, Pilot blew up, took off Wonderful.
• 23:26
  So we start filming episodes by episode #3 Randy Couture gets a
• 23:31
  phone call from Sylvester Stallone.
• 23:32
  Like, hey man, we want you and Expendables.
• 23:34
  He looks at me, he's like, buddy, like if I leave, the
• 23:36
  show's gone. I go exactly, Should I just turn
• 23:39
  down Sylvester Stallone? I was like, that's a very bad
• 23:41
  idea, go do Expendables. So he let the cast and crew know
• 23:45
  and off he went. And I certainly didn't have the
• 23:47
  star power like he does to carry it.
• 23:48
  I'm the expert and he's like the host, right?
• 23:51
  And so because he's got the star power, that was the end of Gym
• 23:54
  Rescue. However, in those four episodes
• 23:56
  that aired in 2013, I saw how quickly people like, Oh my God,
• 24:00
  stopping me at places like, you're the guy fit by the boot
• 24:02
  camp and you were like going into all these different gyms
• 24:04
  with Brandy Couture and turning him around.
• 24:06
  And it's like, holy shit. Now obviously in 2013, YouTube
• 24:09
  or Facebook or whatever, they were around, but they weren't
• 24:11
  thriving. Even before that, I had a blog
• 24:14
  and I was blogging every day and I was the comments on those
• 24:17
  blogs were blowing up and I was giving away free report direct
• 24:20
  response stuff to get e-mail addresses.
• 24:22
  And I would always like build relationships with those people
• 24:24
  on my e-mail list and time collapse the know like and trust
• 24:27
  factor and then make them several offers, get them on the
• 24:29
  phone, put them in a mastermind, start a licensing program,
• 24:31
  whatever it was. And so when social media came
• 24:34
  around and I saw at the same time from that Spike TV show
• 24:37
  what being on television could do for you, all of a sudden
• 24:40
  people like whatever it cost to pay you to help me turn my gym
• 24:43
  around, I'm down. No objections.
• 24:45
  No. I need to get to know you, like
• 24:47
  you and trust you. Can I talk to some people that
• 24:49
  you've helped? Just I saw you on TV and I want
• 24:51
  to pay you. OK.
• 24:52
  So I learned very quickly that personal brand and network
• 24:56
  matter. And if you can do that, it's
• 24:58
  friends, making money with friends.
• 24:59
  This relationship right here. Who knows, three years from now,
• 25:02
  we might be putting up a massive development somewhere together,
• 25:05
  right? I might be someone helping fund
• 25:07
  massive development. I might make a connection for
• 25:09
  you because I'm like, you know what?
• 25:10
  Hannah does this and this friend wants to do that.
• 25:12
  Hey, here's the connection. It's always about friends,
• 25:14
  making money with friends. And if you're in the weeds
• 25:16
  running your business, you're not looking up and out, You're
• 25:19
  looking down and in. If you're looking down and in,
• 25:21
  you're going to miss all the opportunities that are up and
• 25:23
  out, like connections, network, content, brand, audience.
• 25:28
  And so, yeah, your instincts are right.
• 25:29
  Build your personal brand of the right people with the right
• 25:32
  message. Make as many connections as you
• 25:33
  can. Add as much value to the lives
• 25:35
  of those connections, those people that you're connected to,
• 25:37
  and then build so much money in the Goodwill bank account so
• 25:41
  that when you have to make a withdraw, like I'm like, yes,
• 25:44
  Hannah, I'll gladly help you because you've connected me to
• 25:46
  10 people that have bought this many fit body boot camp
• 25:48
  locations, became coaching clients or help me get this
• 25:51
  other thing off the ground. How can I help you, right?
• 25:54
  Like that's all I've done ever since 2010 because that's when I
• 25:58
  got into Joe Posh's mastermind. And that's when Joe was like, I
• 26:01
  realized how connected he was and all he was doing was doing
• 26:04
  things for others expecting nothing back.
• 26:07
  I was like, this motherfucker is onto something.
• 26:09
  And I was like, hey, what, what is this that you do?
• 26:11
  He's like, well, the more I can build in the goodwill bank
• 26:13
  account, the more withdrawals I can have in the future.
• 26:16
  And those withdrawals can show up in many ways.
• 26:18
  I can ask people to speak on my stage.
• 26:20
  I can ask people to co-author a book with me.
• 26:22
  I can ask people to let me borrow money to launch a new
• 26:25
  project or business or whatever. And I was like, holy smokes,
• 26:27
  he's onto something. And that's what I need to start
• 26:29
  doing. And so the more you do that and
• 26:31
  the more you build your personal brand, the faster your empire is
• 26:35
  built. And when it does master like the
• 26:37
  COVID comes, right, you can reach out to friends again,
• 26:40
  friends making money with friends and be like, hey, look,
• 26:43
  my industry right now, fit Body Boot Camp is crumbling.
• 26:46
  That's 218 locations in not even one year, in 10 months, right
• 26:51
  from March 16th when I told all fit body boot camp owners to
• 26:53
  shut their doors for two weeks because we're going to flatten
• 26:56
  the curve. But because I'm a former
• 26:57
  communist, I come from a communist country, I don't trust
• 26:59
  the government. I turned to Bryce and I said,
• 27:01
  start making workouts that we can do beyond those two weeks
• 27:04
  via Zoom for all the clients across all the Fit Body boot
• 27:07
  camp locations. Because if the clients leave the
• 27:09
  locations, the location stop paying us franchise fees and we
• 27:12
  are out of business, right? Because I knew that that was
• 27:14
  going to happen. I had a gut feeling it was going
• 27:16
  to go beyond the two weeks. Clearly it did.
• 27:19
  We only lost 210 locations. Unlike Orangetheory or F45, we
• 27:23
  did not sell off a single percentage of equity.
• 27:26
  And the vultures were circling, offering us pennies on the
• 27:28
  dollar. And we're like, hey, we're good
• 27:30
  because we were already preemptively training clients
• 27:32
  via Zoom in private Facebook groups and doing everything that
• 27:35
  a fit by the boot camp did right there in their homes.
• 27:38
  And because of that, and when I did need some help from friends
• 27:41
  who were connected to government, I was able to reach
• 27:44
  out to my friends that I had made goodwill deposits in.
• 27:47
  And those friends made the right connections for me.
• 27:50
  And all the different states that we have fit by the boot
• 27:52
  camp locations in, because states like California,
• 27:54
  Pennsylvania, Michigan, New York, they were charging like
• 27:58
  finding us like $5000 a day if you're open, right?
• 28:02
  And so my franchisees are like, dude, I've got like fifteen
• 28:04
  $20,000 of fines racked up just this week.
• 28:08
  What do I do? I was like, don't worry, I know
• 28:09
  a guy who knows the mayor of your city.
• 28:11
  I'm going to like, that's how you can leverage relationships.
• 28:14
  And it was such a good thing to be able to do that and help my
• 28:16
  franchisees. It's where at the end of the
• 28:18
  day, small business owners, they're not sitting at corporate
• 28:21
  office like I am, They're small business owners.
• 28:23
  And so it was really good to be able to help them with the
• 28:25
  connections that I've developed. I love it.
• 28:28
  So when you started the franchise, I mean, you mentioned
• 28:30
  you were on this TV show and people knew you.
• 28:32
  What was your process before you got to that level?
• 28:35
  Like where did you, I guess, make your first million or where
• 28:38
  was that break for you to really start to scale?
• 28:40
  Because it's so hard in the beginning when you're just
• 28:42
  getting started to when you have more limited resources and you
• 28:45
  can't go hire all these suite executives and people that are
• 28:48
  way better than you and you're still scrappy.
• 28:50
  What did that process look like for you?
• 28:52
  And then what was that big break that you could actually start?
• 28:54
  Scaling. Good point.
• 28:55
  I think it's a big gift you're giving your audience right now
• 28:57
  by asking that questions because I can imagine your audience is
• 29:00
  sitting here going all right, tough guy.
• 29:01
  Well, you've got all this money, you've got all these
• 29:03
  connections. You can find leaders and money
• 29:05
  and start new businesses and a leader quits, you can replace
• 29:08
  them with someone else. What do I do?
• 29:10
  So here's what I did way before Fit Body Boot Camp.
• 29:12
  I'd started a gym brand called Premier Results.
• 29:15
  It was a personal training studio probably 3 times.
• 29:17
  It's the size of this room and for your audience, this room is
• 29:19
  pretty small. It's just a tiny little studio
• 29:22
  that we're filming in. So it was probably like 1200
• 29:24
  square feet. My personal training studio
• 29:26
  called Premier Results, one-on-one personal training.
• 29:29
  My personal training client, who I was, I was training him.
• 29:32
  I was a personal trainer at La Fitness.
• 29:34
  His name is Jim Franco. So I was in my early 20s.
• 29:36
  He's in the 60s at the time and Jim Franco was like, why don't
• 29:40
  you have your own personal training studio?
• 29:41
  I'm like, dude, I don't know anything about opening up a
• 29:44
  business like that. Like where do I even begin?
• 29:46
  Do I, do I buy the building? He goes, no, you lease it out.
• 29:48
  You rent it out and go, do I buy the equipment?
• 29:50
  No, you lease that out. I don't know the marketing.
• 29:52
  I don't know any of that stuff, right.
• 29:53
  I just wanted to be a personal trainer and take a lot of
• 29:55
  steroids and, and train my clients.
• 29:57
  That was it. And, and at the time I was
• 29:58
  powerlifting, so all I really cared about was lifting heavy
• 30:01
  weights anyway. But Jim inspired me to open up a
• 30:04
  personal training studio, so I did that one location became 22,
• 30:08
  became 33, became 4, then 51. Advice that Jim Franco gave me
• 30:13
  was I don't know how much you or your audience know about
• 30:16
  personal training, especially back in the day, but personal
• 30:18
  training was sold by blocks of sessions.
• 30:19
  So you might buy 510 or 15 sessions, and then once Hannah
• 30:23
  is done with her 10 sessions with me, then I have to put my
• 30:26
  sales hat back on like, hey Hannah, this is your ninth
• 30:28
  session, tomorrow's your 10th. Do you want to buy another 10?
• 30:31
  Now we're kind of friends and trainers, so you're like, I can
• 30:35
  do it on my own, right? I'm like, fuck, now I got to go
• 30:37
  replace Hannah with someone else because I don't know, I don't
• 30:39
  have that money anymore. And so Jim Franco's like, look,
• 30:42
  dude, you keep selling me 1010 sessions at a time.
• 30:45
  Why don't you just put me on a extended program?
• 30:47
  I'm like, you know how many hundreds of dollars you'd have
• 30:50
  to pay per month? He goes, I could afford it and
• 30:52
  all your personal training clients could afford it because
• 30:54
  they make a lot of money. So it never dawned on me that my
• 30:58
  personal training clients make a lot of money and they could
• 31:00
  afford 6 to $800 a month to work with me.
• 31:02
  So when I started putting people on monthly recurring revenue, I
• 31:06
  was able to build up EFT electronic fund transfer.
• 31:09
  When I was able to build that up, I did the same thing in my 5
• 31:12
  Gems Premier results because I had clients on recurring revenue
• 31:16
  that was scheduled to come in every month.
• 31:17
  A very big brand of gyms that we're all familiar with, but
• 31:21
  because I signed an NDAI can't share, came through and bought
• 31:24
  my 5 personal training gyms in San Diego, CA.
• 31:26
  They didn't buy it because I had all these personal training
• 31:28
  clients. They bought it because of the
• 31:30
  receivables that I had. I had all the clients on a 12
• 31:32
  month contract. Average client was paying $630 a
• 31:35
  month and we had over 400 clients.
• 31:39
  So they bought the receivables from me, right?
• 31:42
  And had I only been selling 5 and 10 sessions at a time?
• 31:45
  So I share this with you because I just started off with one gym
• 31:48
  and that one personal training studio and hired a personal
• 31:51
  trainer. Then I had three or four or five
• 31:52
  trainers per gym before you know what, I sold my 5 gyms and then
• 31:56
  I, I started coaching other gym owners, teaching them how to do
• 31:59
  the same. So the question was, how can
• 32:02
  someone else start if they don't have the means and the access
• 32:04
  right now? Be really good at the thing that
• 32:06
  you're going to do. Be so good that others who do
• 32:09
  what you do come to you and go, how do you do it?
• 32:12
  How do you raise capital? How do you, how do you find real
• 32:15
  estate deals to fund because you're going to be so good at
• 32:17
  it. And then you go, let me coach
• 32:18
  you. And then you could start a
• 32:20
  coaching business doing that. And through that coaching
• 32:23
  business, once I had enough coaching clients, I was like,
• 32:25
  would any of you want to just start using all my systems and
• 32:27
  we can call this thing call Fit Body Boot Camp.
• 32:30
  So I turned my coaching clients that all had different gyms and
• 32:32
  different brands. My first 45 Fit Body Boot Camp
• 32:36
  locations were all former coaching clients who just
• 32:39
  converted their brand to a Fit Body Boot Camp.
• 32:41
  And that's how the whole thing took off.
• 32:43
  That's so cool. And is that that's similar to
• 32:47
  Alex Harmozzi's process or did he do something similar with the
• 32:50
  gyms? Gym launch, Yeah.
• 32:51
  Gym launch, yeah did. But was it also from did he do
• 32:54
  coaching and things like that? Exactly.
• 32:55
  Yeah, Yeah. His whole thing was, hey, I'm
• 32:57
  going to coach gyms on how to do this thing.
• 32:59
  Yeah. It was all about gym owners,
• 33:00
  like many small business owners, don't they?
• 33:03
  They think if I, if I'm a great coach or trainer and I build the
• 33:06
  gym, people will come. And then they're a great coach
• 33:08
  and a trainer. They have ABS.
• 33:09
  But then they built the gym and no one comes.
• 33:11
  And then they look for marketing, sales and processes.
• 33:14
  And that's where they find someone like back in the day
• 33:17
  like me or Alex Hermosi or all these other people who do that
• 33:20
  kind of stuff and those people that exist in every industry.
• 33:23
  Because the lazy who don't want to create the processes will end
• 33:27
  up giving money to the not lazy who will create the processes
• 33:30
  and then charge you to deploy them.
• 33:32
  Yeah, and that's something that I wanna do too, is I wanna build
• 33:34
  a community and do you don't pace more.
• 33:37
  We I don't know. Yeah.
• 33:38
  So he was on the show last week and he's just an incredible
• 33:42
  another incredible person that I look up to and he's built
• 33:44
  something so amazing. Serial Entrepreneur 40I mean
• 33:48
  thousands of students in the community, massive companies,
• 33:51
  super down to earth, great relationships, all that type of
• 33:53
  stuff. And I want to build a community
• 33:55
  too. And he actually advised me like
• 33:56
  why? He's like, people are coming in
• 33:57
  the store, Hannah, and you're not selling anything.
• 33:59
  Like I'm not even collecting emails, you know, And he's like,
• 34:01
  what do you, you know, what do you people want to buy?
• 34:03
  But you're not selling. Like I'm just selling.
• 34:05
  I'm not through social media. I just have my businesses and
• 34:09
  most of what I've done has been word to mouth and referrals and
• 34:12
  direct relationship and like I'm a networker.
• 34:14
  So I'm just now getting into like the marketing, paid
• 34:17
  marketing and advertising and collecting emails and all that
• 34:20
  stuff that's. How we scale, by the way.
• 34:22
  Yeah, yeah, I'm learning that. And so especially being in 100K
• 34:25
  with, you know, all like the really, really big players out
• 34:28
  there, I'm like, Oh my God, they're spending $2,000,000 a
• 34:30
  month on ads, right? Like OK, I got to start.
• 34:32
  Doing this, someone once someone wants to ask me, they go, yeah,
• 34:34
  but I put up content some, a lot of it goes viral.
• 34:37
  I figured out the formula. Go viral.
• 34:38
  I'm like, dude, you wait for algorithms to help you go viral.
• 34:41
  I spend hundreds of thousands of dollars every week across all my
• 34:45
  companies and I make sure that all my ads convert.
• 34:47
  I'm fishing with dynamite, you're fishing with the fishing
• 34:50
  pole. They're like, Oh my God, I got
• 34:51
  it. Like when you throw money at
• 34:54
  paid ads that convert, it becomes infinitely scalable.
• 34:57
  Unless you're like in some micro industry, like whatever, some
• 34:59
  odd industry, but in the industry that you're in, it's
• 35:02
  literally endless. And if you can figure out the
• 35:05
  formula, the market message media and the right ad to the
• 35:08
  right market of people with the right source of content, like
• 35:12
  this thing is going to be over. It's like fishing with dynamite.
• 35:14
  And if you're able to do that, then you start having first
• 35:17
  world problems, scale associated problems, which remember, we
• 35:20
  went, we talked about earlier, the people like, oh, I can't
• 35:22
  wait till I have a billion dollar company.
• 35:24
  Cool. Billion dollar company comes
• 35:25
  with billion dollar headaches. But I'd rather have billion
• 35:27
  dollar headaches than third world problems which are I can't
• 35:30
  even keep my lights on. Right.
• 35:31
  Well, I'll go back to the community thing and then want to
• 35:33
  go back to marketing. Sure.
• 35:34
  So another thing I want to do alongside the podcast and the
• 35:37
  personal brand and the obviously brokerage and the lending and
• 35:40
  all the things is I want to build a community and I want to
• 35:42
  help other people do it because people reach out to me all the
• 35:44
  time. And that's where I get my joy.
• 35:46
  That's what fills my cup is helping other people and then
• 35:48
  learning from other people. But then it's another thing like
• 35:50
  do I build this empire 1st and like really get the lending
• 35:53
  company going and scaled and and dialed in before I get
• 35:56
  distracted by this other thing? Or is that also a compliment to
• 36:00
  go alongside it's? Easy to see a lot of things as
• 36:02
  compliments and like, oh, that will help that and this will
• 36:04
  help this and just build this one lending company.
• 36:07
  I'm telling you, build this one. If you were a coaching clan of
• 36:10
  mine that was paying me 100 grand for my domination year
• 36:12
  coaching program, I would tell you to what Stephen King, who's
• 36:16
  a great author, wrote one book on how to write books.
• 36:18
  So the man that's got like more New York Times best selling
• 36:20
  books than anyone else wrote a book on how to write books.
• 36:22
  And the big take away from that book is be willing to Kill Your
• 36:25
  Darlings is what he said. And he went on to say kill the
• 36:28
  words, sentences, paragraphs and pages that don't add value to
• 36:33
  the reader's life. If you're going to have a 200
• 36:35
  page book, it's going to be that much more difficult for them to
• 36:38
  read if you have 100 page book because you killed the darlings
• 36:41
  on the fun little side stories that you might want to put your
• 36:44
  life story in because we're egotistical humans.
• 36:47
  However, it's not going to add value to the reader's life.
• 36:49
  They're more like you to read the 100 page book, which means
• 36:51
  they're more likely to do business with you because
• 36:53
  they're not going to get through the 200 page book.
• 36:55
  And so the same thing applies here, like be willing to Kill
• 36:57
  Your Darlings. The reason Fuel Hunt, the
• 37:00
  apparel company blew up by like 50X in a year and a half.
• 37:05
  They had almost 50 different logos.
• 37:07
  They call them badges, right? So think about a badge that says
• 37:11
  whatever, you know, kill your distractions and a badge that
• 37:14
  says pain is power. And so each one of those small,
• 37:17
  medium, large, extra large, and then at least two colors, black
• 37:20
  and white or black and Gray. And so the inventory is
• 37:23
  ridiculous. I'm like, guys, what are the top
• 37:24
  10 best sellers? They're like, oh, these ones,
• 37:26
  I'm like cool, kill the rest. What?
• 37:29
  Yeah, yeah, kill the rest. I go all your top sellers say
• 37:31
  sold out. There's only like smediums left
• 37:33
  on the website because all the, you know, larges and extra
• 37:36
  larges are sold out and y'all don't have the money, but you
• 37:39
  have all the stock of all this other bullshit.
• 37:41
  So sell all the rest for dirt cheap and then just make more of
• 37:45
  the top 10. For a whole six months.
• 37:47
  All I had them do is just recycle the money and make more
• 37:49
  of the top ten. And then I was like, now I can
• 37:50
  create an 11th shirt and a 12th and a 13th and now we obviously
• 37:53
  have a big thing, etcetera. But it was about killing all the
• 37:56
  darlings to focus on the things that matter and if you're able
• 37:58
  to kill the darlings and the distractions and the
• 38:00
  opportunities because once in a lifetime opportunities come at
• 38:03
  least twice a year. And so if you were like, man,
• 38:05
  you know, there's an opportunity, I got to take it
• 38:07
  because Pace offered this or you know, Valentine offered that,
• 38:11
  more opportunities will come. It's singularity of focus and
• 38:14
  impulse control are the number one and the number two factors
• 38:17
  to scale a business business faster than ever.
• 38:19
  The third one being your team members, like who's in the
• 38:22
  company with you running it. And so if you could have
• 38:24
  singularity of focus, then you scale that thing, make freedom
• 38:27
  money, and then you start introducing new businesses, new
• 38:30
  companies, new leaders, new processes, and it just blows up.
• 38:33
  OK. And then back to the marketing.
• 38:34
  Yeah, because the one time four years ago I hired a marketing
• 38:37
  agency, signed a 12 month $100,000 contract and I didn't
• 38:41
  get one closing. So I was like fuck marketing.
• 38:44
  That's the. Price we pay, right?
• 38:45
  Remember I said how much shit are you willing to eat?
• 38:47
  That's a beautiful bullshit sandwich for a whole year.
• 38:49
  Yeah, yeah. It's a shit sandwich and and I
• 38:52
  don't know, I didn't know marketing, you know, I'd read
• 38:54
  one or two books, but I'm, you know, busy and crazy.
• 38:57
  I'm like you. I'm hiring you.
• 38:58
  You're. An agency?
• 38:59
  Yeah. Yep.
• 38:59
  So now I'm starting marketing, but I'm so afraid I've I've
• 39:03
  interviewed so many agencies and so many people and like the ones
• 39:06
  that work for all the big names that I know and then that are
• 39:08
  crazy amounts of money. And then the ones that are, you
• 39:11
  know, smaller, just trying to get their feet off the ground
• 39:13
  that are more dedicated and then I don't know who to pick.
• 39:16
  And, and then also like, do I hire in house?
• 39:19
  And then how do I interview if I do hire in house?
• 39:21
  So what would you recommend if you're just starting to run ads
• 39:24
  and who do you partner with? If you're just starting out, I
• 39:27
  would probably hire an agency that comes from someone trusted.
• 39:30
  So you know, like all these people that you've networked
• 39:32
  with, they've probably referred agencies.
• 39:34
  What I would say is, let's say one of them is Joe Polish.
• 39:36
  We're just going to use Joe Polish.
• 39:37
  Hey, Joe Polish referred you and I trust Joe Polish.
• 39:40
  And so I, I, I'm sure you guys will do a great job.
• 39:43
  However, I'm not looking to sign a contract beyond 90 days.
• 39:46
  I'll sign a 90 day contract with nothing beyond that.
• 39:48
  However, I'm sure you guys will do great.
• 39:50
  You guys will perform and when you do, I'll sign a six month
• 39:53
  contract. When that performs and it kicks
• 39:55
  ass, I'll sign whatever the heck you want me to and I'll talk
• 39:58
  about you from the treetops. Like I will let everyone know
• 40:00
  these guys are the agency to work with and that's what you
• 40:04
  have to do to hold their feet to the fire.
• 40:06
  Because they may have worked really well well for Joe, but
• 40:08
  that doesn't mean. They're going to work well for
• 40:10
  you because what I've learned through all the different
• 40:13
  companies that I own or have equity in, a ad agency that runs
• 40:16
  ads for supplement company is really bad at running ads for
• 40:20
  apparel and even worse at running ads for fit protractor.
• 40:24
  Our software company. There are dedicated agencies
• 40:27
  that specialize in different industries and they know the
• 40:30
  trends, they know the processes, they know the ads, they know
• 40:33
  what the scroll stoppers are. They know all the things that
• 40:36
  they have what's known as tribal knowledge because they only
• 40:38
  specialize in software, only apparel, right.
• 40:41
  And so when I had Feeble Hunt Joey and Drew, the founders of
• 40:45
  feeble Hunt apparel, when I had them interview agencies, all of
• 40:49
  them want a 12 month agreement. And I was like, dude, 90 days if
• 40:52
  90 days. And then hey, our partner is
• 40:54
  Bedros Coolian. And if after 90 days this thing
• 40:57
  blows up, he will talk about you from the rooftops and you have
• 41:01
  to hold their feet to the fire and they'll do it.
• 41:02
  If they're good at what they do, they'll do it.
• 41:04
  Of course they want a 12 month agreement with you because they
• 41:07
  just make sense, but you don't know if they're they're going to
• 41:10
  work for you just because they work for Bob over there.
• 41:12
  And so you have to be able to tread lightly and have a RIP
• 41:15
  cord that you can exit. You know 90 days is less painful
• 41:18
  than 12 months. Yeah, for sure.
• 41:21
  And. Then ultimately you'd want to
• 41:22
  bring in house. So as you get bigger, I was just
• 41:24
  going to ask, yeah, you bring people in house.
• 41:25
  So all my companies now, with the exception of one are all in
• 41:29
  house ad buyers. At what ad spend do you think it
• 41:31
  makes sense to bring it in house?
• 41:33
  If you're starting to spend more than 20 grand a month.
• 41:35
  On the ad spend or the man? Yeah.
• 41:37
  On the ad, spend on the actual money that you're running on
• 41:40
  ads, then just pay someone six to seven grand to come in there
• 41:44
  and teach them how and do it for you.
• 41:46
  In fact, I forget the dude's name.
• 41:47
  He's really good at running YouTube ads.
• 41:49
  Dean introduced me to him, Dean Graciosi, and he was running
• 41:52
  many of our YouTube ads for my coaching business when I was
• 41:56
  ready to bring someone in house. I'm like, bro, I'm going to have
• 41:58
  to part ways with you. However, I want to pay you 10
• 42:01
  grand to 15 grand if you will come out to HQ and teach my in
• 42:06
  house person. He's like, but I'm like, I'm
• 42:07
  leaving anyway, So one more final 10 to 15 grand plus you'll
• 42:11
  get referrals from me or peace out.
• 42:14
  And then I have to go find now someone to train this person
• 42:16
  that I'm hiring and he was kind enough to come and train.
• 42:18
  So you'll also do that. And that's kind of you're going
• 42:21
  to hire an agency And when you find the right agency, you're
• 42:24
  going to go, hey, down the line I'm probably going to have an in
• 42:26
  house person. And when I do, I'd love to pay
• 42:28
  you guys to come train that person.
• 42:29
  You just kind of plant that seed because the reality is if you
• 42:32
  grow big enough, it just makes sense that it's in house because
• 42:34
  one person dedicated to your brand is going to do a far
• 42:37
  better job than when they try and scale by hiring people in
• 42:40
  Poland and Pakistan or whatever. Because you know, they're based
• 42:43
  out of wherever Scottsdale, But they're they're going to hire
• 42:46
  people offshore because to run your ads because it's cheaper,
• 42:49
  right? And I don't know what the guy in
• 42:51
  a mud Hut sitting in Pakistan is going to do for my ads.
• 42:55
  That may not be politically correct, but that's it.
• 42:57
  I. Love it.
• 43:00
  Yeah, no, it's it just brings back PTSD from all those
• 43:03
  experiences and she trying to hire all the VA S and in the
• 43:07
  Philippines and the chickens in the background on that.
• 43:10
  Yeah, which is fine and cool, but yeah, again, if they can't
• 43:12
  perform like, what am I going to do with this?
• 43:14
  Yeah. I love the lending company
• 43:16
  because I see a larger EBITDA multiple because there's so many
• 43:19
  avenues of it. And you could be an
• 43:20
  intermediary, you could be a direct lender.
• 43:22
  You there's very little licensing requirements like
• 43:25
  there would be in a brokerage. Brokerages are not worth
• 43:27
  anything on the real estate side.
• 43:28
  But and then part of building the personal brand is that's a
• 43:30
  national reach of people. So I struggle with the concept
• 43:34
  of just focus local when I'm building a national brand, but
• 43:38
  also it's a new company. So what is your advice on that?
• 43:41
  Focus local and turn down all the leads that come in from
• 43:43
  everywhere else. Or because I already have the
• 43:45
  ability to be national because I set it up that way, do I
• 43:48
  actually just start to build a national brand?
• 43:50
  I. Started going national.
• 43:52
  Yeah. With, with social media now it
• 43:53
  makes sense that you go national.
• 43:55
  If we were having this conversation 10 years ago, I
• 43:57
  would say start local. But here I would say absolutely
• 43:59
  go national because you can grow just as fast through social
• 44:02
  media. And if you need someone local
• 44:04
  somewhere else, it's saying Kentucky.
• 44:05
  One quick little Google search and you could find the right
• 44:08
  person anyway to refer someone and take a Commission.
• 44:11
  Yeah, right. And so you got that there as
• 44:13
  well. OK.
• 44:13
  Yeah, that's what's so nice about not having much like
• 44:16
  licensing and restrictions as you can do that and right.
• 44:18
  And then what about for instance, like load originators
• 44:22
  And these are generally Commission based roles, but it's
• 44:25
  very hard to find talent for those roles, especially for a
• 44:28
  startup. And so I guess I don't know how
• 44:31
  do you figure it out your comp plans, like what are the
• 44:33
  appropriate comp plans for different roles in your company?
• 44:36
  Well, I mean, if they have anything to do with sales or
• 44:39
  marketing, they're going to be incentivized with Commission,
• 44:42
  right? Because we want them to eat what
• 44:44
  they kill. If you're a closer or if you're,
• 44:46
  you know, saying you're a great marketer, then yeah, we'll give
• 44:49
  you some kind of a base. That base is just enough for you
• 44:51
  to eat like canned tuna fish and that's it.
• 44:54
  The rest of it you have to earn, right?
• 44:56
  So the compensation might be anywhere from 10% to 15%
• 45:01
  Commission on the deals. If the deal has some kind of
• 45:04
  recurring attached to it, like Fit Body Boot Camp has
• 45:05
  royalties, it's a franchise that sales Rep might get a, you know,
• 45:09
  whatever half a percent of royalties coming to them or
• 45:11
  quarter percent percent of royalties.
• 45:13
  And when the their royalties, almost like an insurance broker,
• 45:15
  right when when the number gets this big, then your royalties,
• 45:18
  your percentage of royalties increase.
• 45:20
  But most everybody else other than the so marketers, closers
• 45:24
  and then leaders get compensated by commissions and bonuses.
• 45:28
  Most everybody else support people, accountants,
• 45:31
  bookkeepers, graphic guys, web guys, things like that.
• 45:35
  They're going to get paid by a salary and bonuses.
• 45:39
  If they exceeded expectation, people go, well, how do you
• 45:41
  structure with what that bonus is like whatever you feel like
• 45:44
  paying them? Like there is no right.
• 45:45
  It's just whatever you feel like paying them.
• 45:46
  Like if they killed it with that website design, like the
• 45:49
  copywriter did a great job writing copy, but if the design
• 45:52
  of the site is clunky and the conversion suck, well, you're
• 45:55
  just getting paid your base. But if you killed it because you
• 45:58
  researched and you're like, what is Russell Brunson's highest
• 46:00
  performing website? Da, da, da, and I'm going to
• 46:02
  make this look like that in terms of flow and etcetera and
• 46:05
  conversions are crushing it and you got it done a couple weeks
• 46:08
  early. Here's a bonus for you, my
• 46:09
  friend. He's a $2000 bonus for you on
• 46:11
  top of that. Because I know also know one of
• 46:14
  the drawbacks of building a brand is your people are always
• 46:16
  being recruited. My assistant Joan is always
• 46:18
  being recruited. Bryce Henson is always being
• 46:20
  recruited. Jeff Rosenquist is always being
• 46:22
  recruited. Brittany Carter is always being
• 46:24
  recruited. Like I could even throw their
• 46:25
  names out and let these people go and recruit because I pay
• 46:27
  them so well and I've got them handcuffed to my business
• 46:30
  because I give them all phantom equity so there's no way they're
• 46:33
  leaving. And I treat them well.
• 46:34
  I treat them like family. But you will have people trying
• 46:37
  to poach your own people. That's how the game is played.
• 46:40
  So also I'd be willing to deal with that so.
• 46:41
  That was going to be my next question about phantom equity or
• 46:44
  real equity in general. Like, how do you know when to
• 46:47
  give that up? Because some people, for
• 46:49
  instance, an integrator, you know, you're second in command,
• 46:52
  like they're going to want something.
• 46:53
  How do you know who those right rules are to give equity to?
• 46:56
  And is it phantom? Is it actual?
• 46:58
  And like, how do you make those decisions and what roles are
• 47:00
  they? Yeah.
• 47:01
  The only time I would give actual equity is if one they
• 47:05
  come in with money, like they buy equity or if they come in at
• 47:09
  ground 0, right? So we're just starting out and
• 47:12
  I'm like, hey, you know Hannah, I got this great idea in the
• 47:14
  lending space and I'm going to front the money to start this
• 47:17
  thing and then I can't pay you much.
• 47:19
  I'm going to give you like, what's the bare minimum you need
• 47:21
  to live? OK, that amount Great, I'm going
• 47:23
  to give you that, but I'm also going to give you 10% real
• 47:25
  equity. Fair enough.
• 47:26
  Yes, that's the only time with fit body boot camp.
• 47:28
  It was making hundreds of millions when Bryce came on
• 47:31
  board as my second in command, first VP, then CEO, right.
• 47:35
  And so I gave him 10% phantom equity and he's like, he had
• 47:38
  never heard the term phantom equity nor had my lawyer because
• 47:41
  I made it up and he was like, what the fuck is phantom equity?
• 47:43
  I go, well, 100% of fit body Boot Camp belongs to me.
• 47:45
  We have this side agreement right here that says that you
• 47:48
  get 10% of the company phantom equity because it's not real
• 47:52
  until we take the company to to a sale.
• 47:54
  And when we take the company to a sale and you stay with them
• 47:57
  for at least two years, if the buyer wants you to stay, that
• 48:00
  10% is yours. Now, if you help me take the
• 48:02
  company to a sale and they're like, we got on a CEO, we don't
• 48:04
  need that. Your CEO, great, you get that
• 48:06
  10% upon close of the deal, I go.
• 48:09
  But if you take a crack habit, a heroin habit, you whatever, you
• 48:12
  go off the deep end and I have to fire you, then you're gone.
• 48:15
  And all you got was your salary and that's it.
• 48:17
  So salary and Bryce's question, and it was rightfully so he
• 48:20
  goes, So what happens if like 6 months before selling the
• 48:23
  company, you just get rid of me? Well, Bryce, that's why we have
• 48:26
  this paperwork in place. But more than that, there's a
• 48:28
  mutual trust, right? And so this kind of goes back to
• 48:31
  a lesson that I teach often on my show, which is your
• 48:33
  reputation. And I've got phantom equity with
• 48:36
  three key principles in my companies, all different
• 48:38
  companies, Fit Body Boot Camp, my coaching business, and Truly
• 48:41
  Supplements. 3 key people have phantom equities because of my
• 48:44
  reputation. They trust me.
• 48:45
  They've known of me for years before they ever started working
• 48:48
  for me. They know that when we get to
• 48:51
  the exit that they will get paid.
• 48:53
  And all of those businesses I had started years before they
• 48:56
  came on board. So it wouldn't make sense to
• 48:57
  give them real equity. So I would always advise you to
• 49:01
  not give real equity unless they bring some kind of magical
• 49:04
  benefit to the relationship that you can go get yourself.
• 49:08
  For example, because again, I could sound very hypocritical
• 49:10
  here, I take equity in businesses without ever giving
• 49:13
  them money. And those businesses are growing
• 49:14
  and doing well and I take equity and we grow them bigger.
• 49:18
  But what do I have? Well, I've got a big following
• 49:20
  that following buys what I promote to them.
• 49:22
  I've got an A network of people who will wear the shirt, take
• 49:26
  the supplements, use the software and therefore tell them
• 49:28
  their people, right? So I've got a network, I've got
• 49:31
  an audience of rabid buyers on an e-mail list, on a text list,
• 49:35
  social media platforms, podcast platforms.
• 49:37
  And I've got allies who have audiences who will help me
• 49:40
  promote my thing as long as that thing is not competitive to
• 49:43
  their thing, right? And so I do take real equity
• 49:47
  without giving a dollar, but that's because I bring something
• 49:49
  magical. So for example, if there was
• 49:51
  some business that if Oprah Winfrey, we talked about like it
• 49:54
  would automatically become a billion dollar business.
• 49:56
  And I started that business and I'm five years in and it's doing
• 49:58
  about 50 million a year. And Oprah's like, hey, I'd like
• 50:01
  50% equity. OK, here it is.
• 50:03
  All yours cost you nothing, honey, because you're Oprah
• 50:06
  Winfrey. You've got the audience, the
• 50:09
  product is a perfect fit for the audience.
• 50:10
  When you say go buy it, it becomes a billion dollar company
• 50:13
  and then we exit. I do that all day long.
• 50:15
  But short of a relationship like that, you want to always keep it
• 50:19
  as a phantom equity, which is why it's important to keep your
• 50:21
  your personal brand and reputation untarnished and clean
• 50:25
  so that no one could ever say shit about you.
• 50:26
  Because if Bryce was to go and ask 50 people that have worked
• 50:30
  with me ever screwed you, has ever made a promise.
• 50:32
  And then a follow up, if even one of them said, Yep, he'd be
• 50:35
  like, bro, I don't want to do phantom equity.
• 50:37
  So I'm not going to be your CEO. And that'd be the end of that,
• 50:39
  yeah. And you give a phantom equity to
• 50:42
  your CFO. And who's your third?
• 50:44
  You said three key principles. Yeah, 3 individuals.
• 50:46
  So yeah, Joan, my assistant who has been with me for 10 years,
• 50:51
  has a small piece of equity in the coaching business.
• 50:54
  Jeff Rosenquist has Phantom equity and Truly supplements,
• 50:57
  he's the VP. And then Bryce, so all my
• 50:59
  leaders gotcha have equity in the businesses that they run.
• 51:02
  And I think that's a fair way to do it, but it's phantom equity.
• 51:05
  Now could that convert into real equity?
• 51:06
  Sure. It felt like, man, I want to buy
• 51:08
  more equity and now I've got the money and I want to buy more
• 51:10
  equity. And I felt like selling it and
• 51:12
  taking some money off the table, sure, I'd be more than willing
• 51:14
  to do that. If Bryce says, hey, I want, you
• 51:16
  know, 30% equity. And this time I'm willing to buy
• 51:18
  it for whatever the companies valued at before we go and sell
• 51:20
  it, right? Sure man.
• 51:22
  Here's what it's valued. So go ahead and pay me X and you
• 51:24
  can get 20% more and off we go. But phantom is always the best
• 51:28
  way that I found because they didn't put skin in the game.
• 51:31
  You've already been around long enough and making money S all
• 51:33
  the hardest parts are done of the business.
• 51:36
  They just need to run the people in the processes and therefore
• 51:38
  phantom equity is plenty for them.
• 51:40
  OK. And then when you're growing all
• 51:42
  these things, your personal brand, your relationship, your
• 51:46
  friends and family, your mental health, your physical health,
• 51:48
  your fitness and then continuing to build an empire, how do do
• 51:52
  you time manage everything? Like what are your non
• 51:56
  negotiables in your day and how do you time block to make sure
• 52:00
  that you are elevating all of those things and not going too
• 52:02
  heavy on one or the other? And.
• 52:04
  Yeah, yeah. So delegate, motivate, sell,
• 52:06
  DMS. 15 years now I've been doing DMS and I learned that got
• 52:09
  to give credit where credit is due from Jim Franco, that
• 52:11
  personal training client that I had who encouraged me to start
• 52:14
  my personal training gyms. He says, look, anything else you
• 52:17
  do other than delegate, motivate and sell is wasted time, wasted
• 52:19
  effort, wasted money. And he's absolutely right.
• 52:21
  And so on my Google Calendar, Joan, who I believe you spoke
• 52:26
  with to set this whole thing up. Like I didn't set it up because
• 52:28
  if I did, I'd never make it out here.
• 52:30
  I'd be in the wrong city on the wrong plane doing the wrong
• 52:33
  thing. Like I'm horrible at that.
• 52:34
  So I don't non negotiables. I don't buy plane tickets,
• 52:36
  hotel, I don't book hotels. I don't reserve cars or car
• 52:39
  services or any of that stuff. If it's on my calendar, it's put
• 52:42
  there by Joan and I execute on it.
• 52:44
  And then on my calendar, all the things on it are things that are
• 52:47
  delegate, motivate, sell. What category would this fall
• 52:49
  into selling? What am I doing?
• 52:51
  I'm selling myself to your audience.
• 52:53
  I'm selling the concepts that I believe in that if they take
• 52:57
  action on, we'll make them more money, right?
• 52:59
  Just because I say go do EOS and retraction doesn't mean they
• 53:02
  will. But if I'm like, here's how it
• 53:03
  changed my life, I'm selling your audience, right?
• 53:06
  So everything I do is I'm either delegating, taking it off my
• 53:08
  plate and giving it to someone else who's more capable to do
• 53:11
  it, motivating my team members to do it.
• 53:14
  And they keep doing it and stay on board and don't quit because
• 53:16
  I love you and I don't want to lose you.
• 53:18
  And for all those things, right? Because they're being poached
• 53:20
  and I do run all my people in the red and so I teach them to
• 53:24
  be very resilient. So delegate, motivate and sell.
• 53:26
  And then the things that are on my calendar have to do with
• 53:28
  delegate, motivate and sell. And everything is time blocked.
• 53:31
  So the first four hours of the morning is mine.
• 53:33
  And then if I have coaching calls that I'm going to do, all
• 53:35
  my coaching calls are back-to-back.
• 53:36
  There are 30 minute coaching calls with like 15 minute breaks
• 53:39
  in between. That way if I have to go over or
• 53:41
  if I have to take a bathroom break in between or eat
• 53:43
  something, I have that opportunity to do like 4
• 53:46
  coaching calls, 6 coaching calls all back-to-back.
• 53:48
  And then all my meetings at the end of the day are all stacked
• 53:50
  back-to-back. And by having having everything
• 53:52
  time blocked that way, I'm not going from a meeting to a Zoom,
• 53:56
  to a coaching call, to a whatever, to a podcast and then
• 54:00
  back to a coaching call. Because in the process of
• 54:02
  shifting gears, you lose a lot of momentum.
• 54:05
  And I don't want to lose momentum.
• 54:06
  I don't want decision fatigue. For the first time in a long
• 54:09
  time, I bought a brand new pair of jeans, Mavi brand jeans.
• 54:12
  I have 9 pairs of barbell brand jeans.
• 54:15
  There's some variation of Gray, dark Gray or black, right?
• 54:18
  And that's because I don't want decision fatigue.
• 54:20
  All my shirts are fuel shirts and that's one because I Co own
• 54:24
  the company and two, I don't want decision and they're all
• 54:26
  dark colors because then it'll match with the dark colored
• 54:28
  jeans and that's that. I don't want decision fatigue.
• 54:31
  I don't want to have to shift gears and lose momentum because
• 54:33
  we all have the same amount of time and then I'll ruthlessly
• 54:35
  say no to everything. There's a broken light bulb in
• 54:37
  the in my office at HQI just have to text Joan or whoever the
• 54:42
  maintenance guy of the building to come and change it.
• 54:44
  Do I have the capacity to change the light bulb?
• 54:46
  Absolutely. Is it worth my time?
• 54:48
  Probably not. Do I know how these microphones
• 54:50
  work? Nope, I just walk into studio
• 54:52
  and start filming, right? I got my content, but I don't
• 54:54
  edit it. I don't film it.
• 54:55
  I don't go to the grocery store. I don't I don't wash my cars.
• 54:58
  I don't book my hotels. I don't book the flights.
• 55:00
  I say no to a lot of things so that I could say yes to the
• 55:03
  three things that matter, delegate, motivate and sell.
• 55:05
  Because Joan could find the restaurant that I need to eat at
• 55:08
  tonight or tomorrow or wherever I go next.
• 55:11
  She can me wasting time to find the restaurant and then instead
• 55:15
  not showing up prepared to this could screw the whole thing up,
• 55:17
  right? Like I can't have Joan come and
• 55:19
  do this podcast while I'm looking to see where I'm going
• 55:21
  to eat, but I can have Joan figure out where I'm going to
• 55:23
  eat while I prepare for this and come and crush it for you.
• 55:25
  And so if people are ruthless about their time and they
• 55:29
  realize that everyone wants to take your time, just five minute
• 55:31
  phone call real quick. Can we do a FaceTime?
• 55:33
  No, fuck off, fuck off and fuck off.
• 55:35
  That's how ruthless you have to be to get to that level.
• 55:38
  There is a another side of me that I just want to be barefoot
• 55:41
  and go hug trees as well. And there's a duality in me that
• 55:45
  my kids will see and people closest to me will see.
• 55:49
  But for the most part, if you're on the battle field of business
• 55:53
  and you're looking to make hundreds of millions or get to
• 55:55
  billions and beyond, it is a pretty ruthless way that you
• 55:58
  have to manage your time. Because as you grow your brand,
• 56:01
  people like, I bet Hannah has something that I could use.
• 56:04
  Could I just take you out to lunch?
• 56:06
  Could I pick your brain? You know how many people want to
• 56:08
  pick my brain apart? No, you can't Take Me Out to
• 56:10
  lunch. I don't want to go work out with
• 56:11
  you. We can't have coffee.
• 56:12
  None of that stuff, not you personally, but I'm just saying
• 56:14
  like when people like will DM and message and whatever.
• 56:17
  And so you have to ruthlessly protect your time.
• 56:19
  You have to structure everything.
• 56:20
  You have to time block everything.
• 56:21
  I, I sleep and wake up at the same time seven days a week.
• 56:24
  So I don't want my circadian rhythm all fucked up.
• 56:26
  One of my coaching clients, Doctor Amy Shaw, who's a
• 56:28
  gangster, she lives right here out here in Scottsdale, has a
• 56:31
  massive following. She's about her second book's
• 56:33
  going to be a New York Times bestseller as well.
• 56:35
  I structured her, hers and Gabrielle Lyons book lunch and
• 56:39
  they both became New York Times bestsellers.
• 56:41
  But she's all about circadian rhythm and she she makes a lot
• 56:43
  of sense. Why on a Friday night or a
• 56:45
  Saturday, am I going to stay up late, get drunk and then do the
• 56:47
  same thing Sunday? And then come Monday, my busiest
• 56:49
  day, now my sleep patterns all fucked up.
• 56:51
  I'm not thinking right. I'm a little foggy headed during
• 56:54
  my busiest day. Like I don't want to go into
• 56:55
  battle like that. So to me, I have a pretty boring
• 56:58
  life. But I like the boring life that
• 57:00
  I have because it gives me access to who and what I need
• 57:03
  and the freedom to do what I want with who I want for as long
• 57:07
  as I want. And I realize I only have a fine
• 57:08
  amount of time on this planet and access and freedom is my
• 57:11
  highest currency. Yeah.
• 57:12
  The one of my mentors that I mentioned earlier, he says that
• 57:15
  on the on the era, what kills the animal and it's the very tip
• 57:19
  of the spear and all your activities, you want to be
• 57:21
  moving closer and closer to the very tip of the spear.
• 57:23
  Yeah. That's a really good way to say
• 57:25
  it. It's a beautiful metaphor.
• 57:26
  So the last question, I want to talk about your book real quick.
• 57:29
  So your book is man up and it's all about taking ownership and
• 57:32
  cutting out excuses and just to level up in business, in life
• 57:35
  and dominate, build an empire and all those things.
• 57:37
  So what was like the most best example in your life where you
• 57:41
  had to man up and you had to cut out excuses and really, like,
• 57:45
  get your shit together to transform?
• 57:47
  Yeah. Good example.
• 57:48
  So I've always had this gift of connection and I got that from
• 57:51
  my dad and my dad knows how to connect with anyone.
• 57:53
  He talked the KGB, which is the equivalent of the FBI in the
• 57:57
  Soviet Union. He talked to KGB out of
• 57:59
  arresting him that heard that we were going to escape the Soviet
• 58:02
  Union. They had heard they even had
• 58:03
  some evidence and he sat them down at the kitchen table, got
• 58:06
  drunk with them, talked them out of arresting US.
• 58:09
  And then in two weeks later we're off to Italy, from Italy
• 58:11
  to the United States. So my dad has the gift of gab
• 58:14
  that is factory installed in me. Like I know how to connect and
• 58:17
  influence people. That also made me a great
• 58:19
  marketer because I was a great marketer and I am a great
• 58:22
  marketer. I could write copy and make
• 58:23
  offers really easily. So I always counted on that.
• 58:26
  When I started my coaching business back in the day, which
• 58:28
  then later became that I started Fit Body Boot Camp.
• 58:31
  Like I was really good at marketing, but as a company grew
• 58:33
  and I had more people working for me, I wasn't as disciplined.
• 58:36
  And so the breaking point for me was my lack of this.
• 58:39
  I could stay away till 2:00 in the morning, watch TV, goof off,
• 58:42
  eat bagels, do whatever I want 'cause I would stress eat.
• 58:44
  I'm an emotional and stress. I was an emotional and stress
• 58:47
  eater. Now I'm not.
• 58:48
  Now I'm a badass, but I would do all that till 2:00 in the
• 58:50
  morning. Then I'd wake up at like 5 or 6
• 58:52
  in the morning. I just crush whatever marketing
• 58:54
  campaigns I need to do and just flood new customers in.
• 58:57
  However, I wasn't a good leader. I wouldn't show up to meetings
• 59:00
  on time and when I would show up I was unprepared.
• 59:03
  And because of that, I would start feeling anxiety and all
• 59:06
  that led to a massive panic attack in 2013.
• 59:09
  Remember I said pre 2013, post 2013, I had a fucking panic
• 59:12
  attack so bad. I thought I was having a heart
• 59:15
  attack. And I talk about that in my
• 59:16
  book, Man Up. The title of that chapter is
• 59:18
  called The Morning of my Heart Attack, 'cause I thought I was
• 59:20
  having a heart attack. I was 38 years old.
• 59:22
  I'm in my guest house and I'm like, holy fuck, I'm up here in
• 59:25
  my guest house and I left my shoes up there the night before
• 59:28
  I, I played the drums and I've got a drum set in the guest
• 59:30
  house and I left my shoes up there, went back to the house
• 59:32
  barefoot across the pool deck. And so in the morning I'm like,
• 59:35
  fuck around my tennis shoes. They're upstairs in the guest
• 59:36
  house, ran across the pool deck, get my shoes, bend down to pick
• 59:39
  up my shoes and all of a sudden my chest gets tight.
• 59:42
  Tunnel vision, hearts racing, sweaty palms.
• 59:45
  Both arms are like tingling. And I remember reading somewhere
• 59:48
  like in some high school like health class that like if an arm
• 59:51
  tingles are having a heart attack.
• 59:52
  So I'm like, fuck, both arms are tingling.
• 59:54
  This is the big one. This is how I go.
• 59:55
  And I remember thinking in that moment like, this sucks.
• 59:58
  I'm 38 years old. I'm building this, this what's
• 1:00:00
  going to be an empire. I accepted death very quickly.
• 1:00:02
  And I was like, I felt very sad for Chloe at the time.
• 1:00:05
  She was like 6 or 7 years old. I was like, who's going to walk
• 1:00:07
  Chloe down the aisle? And I feel.
• 1:00:08
  Really bad for Andrew he was nine years old who's going to
• 1:00:11
  teach him to be a modern day knight like those are my the two
• 1:00:14
  big things that I wanted to do for my babies.
• 1:00:16
  Anyway, Long story short, it's so weird you you accept death
• 1:00:19
  and you stumble down the staircase because my theory was
• 1:00:21
  that if I stumble down the staircase, someone, the lawn
• 1:00:23
  guy, the pool guy, someone's going to find me and they're not
• 1:00:25
  they're going to find me early and it won't be at the end of
• 1:00:27
  the day and the guest house will be bloated and ugly and my
• 1:00:30
  family will be like, Oh my God, dad looks horrible right and
• 1:00:32
  that that'll be traumatic for them like that.
• 1:00:34
  And, and while I thought I was having a heart attack, those
• 1:00:36
  were the thoughts going through my mind.
• 1:00:37
  So as I stumble down the staircase, I don't know if it's
• 1:00:39
  a fresh air, I don't know if it was the movement.
• 1:00:41
  All of a sudden this, all these feelings went away and I'm left
• 1:00:43
  in a sweaty puddle. I was like, holy shit, I think I
• 1:00:45
  just dodged a heart attack. Went to the doctor the next day
• 1:00:47
  and checked my heart. Your heart's good.
• 1:00:49
  Think you had a panic attack. So that was the beginning of me
• 1:00:52
  becoming more disciplined. I would emotionally eat back
• 1:00:55
  then also to fall asleep at 2:00 in the morning 'cause I would
• 1:00:58
  take a lot of drink a lot of coffee and energy drinks
• 1:01:00
  throughout the day. I had a bicep reconstruction.
• 1:01:02
  I tore my bicep from powerlifting and had a big
• 1:01:04
  bottle of Vicodin left. I have a high pain tolerance, so
• 1:01:07
  I didn't use the in for its intended purpose.
• 1:01:11
  I ended up using it to fall asleep at night.
• 1:01:12
  And when one Vicodin wasn't enough, I would take two or
• 1:01:14
  three. When two or three weren't
• 1:01:16
  enough, it was like 345 Vicodins plus some Nyquil on top of that
• 1:01:19
  to fall asleep. And so imagine now being poorly
• 1:01:22
  disciplined, a bad leader on top of that, and then having food
• 1:01:26
  addiction, using food as your emotional crutch because your
• 1:01:29
  company's growing, because you're a genius at writing ad
• 1:01:32
  copy and creative and things like that.
• 1:01:34
  But you can't lead, manage and create systems LMS if your life
• 1:01:38
  to depends on it. And so that's when I had to turn
• 1:01:40
  pro. It was after that big panic
• 1:01:42
  attack. And that's so the book is the
• 1:01:44
  man up is the brutal, honest truth about what it takes to
• 1:01:47
  succeed in life as a high performer.
• 1:01:49
  I don't care if you want to be the best husband, if you want to
• 1:01:51
  be the best wife, if you want to be the best next Mother Teresa,
• 1:01:54
  if you want to save the planet, or if you want to build a
• 1:01:55
  company that's going to do a billion dollars.
• 1:01:57
  Like there's six pillars of entrepreneurial and personal
• 1:01:59
  leadership that starts with you as the leader and ends with a
• 1:02:03
  team of high performers, not employees.
• 1:02:06
  Employees will clock out early, clock in late and do the bare
• 1:02:09
  minimum. A team is ferociously focused on
• 1:02:12
  winning because they know what winning looks like.
• 1:02:14
  They've been told the vision by the leader.
• 1:02:16
  And so the six pillars of entrepreneurial and personal
• 1:02:18
  leadership I've outlined in that book, it's exactly what I used
• 1:02:21
  to change my life from 2013 to in two years, 2013 to 2015, my
• 1:02:26
  company hockey sticked. I stopped doing the Vicodin,
• 1:02:30
  stopped the Nyquil, stopped the emotional eating, started going
• 1:02:32
  to sleep on time. They did everything that I, I
• 1:02:35
  became congruent with the man that I wanted to be.
• 1:02:37
  And wouldn't you know it, my whole life hockey sticked.
• 1:02:39
  And so that's what Manup is all about.
• 1:02:41
  But it's the brutal, honest truth.
• 1:02:42
  I've had many people read the book and say, I don't want to be
• 1:02:44
  an entrepreneur. And I'm like, that's awesome.
• 1:02:46
  There's nothing wrong with being an entrepreneur.
• 1:02:48
  Go work for someone who's driven, who's crazy, who's
• 1:02:50
  willing to take the risks and help them achieve their dreams.
• 1:02:53
  And somewhere within their dreams, as Ed Mylett says,
• 1:02:56
  there's a piece of your dream in there, right?
• 1:02:58
  But you don't have to take those risks.
• 1:02:59
  You don't have to be up till 2:00 in the morning because
• 1:03:00
  there will be nights. During the pandemic of 2020, we
• 1:03:03
  were having 2 L 10, 10 meetings a day.
• 1:03:05
  We went from one a week to two level 10 meetings a day because
• 1:03:09
  how do you tell hundreds of franchisees around the world how
• 1:03:12
  to run their gyms? Places like Texas and Florida,
• 1:03:14
  we're like, fuck workout, do whatever you want.
• 1:03:16
  Go lick door knobs, right? And then at California,
• 1:03:19
  Michigan, Pennsylvania, we're getting fined left and right.
• 1:03:21
  So make no mistake about it. Like there was plenty of days
• 1:03:24
  that I didn't sleep like in 2020 because we're like at the in the
• 1:03:27
  war room, planning, strategizing, trying to figure
• 1:03:29
  out what our next move is. And if you're not dialed in
• 1:03:31
  mentally, physically, spiritually, emotionally, you're
• 1:03:34
  going to get fucked up when the next pandemic comes.
• 1:03:36
  And there's always, as Tony Robbins says, winter is just
• 1:03:39
  around the corner. It's always coming.
• 1:03:41
  You just don't know when. Winter is coming.
• 1:03:43
  Yep. Well, thank you so much and I'm
• 1:03:44
  excited. I'm going to be at your event.
• 1:03:46
  So it's May 31st. May 31st BK live at the Grove
• 1:03:51
  Theatre in Anaheim. It's going to be all about
• 1:03:52
  money, meaning and self mastery. If anyone wants to level up in
• 1:03:55
  those three areas, that's where they want to go to.
• 1:03:57
  Perfect. And we'll put your link in the
• 1:03:59
  BIOS, so. People.
• 1:04:00
  Can sign up. Awesome.
• 1:04:01
  Thank you so much. Thank you.