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[MUSIC PLAYING] khanacademy for small business management
-So how did you apply this principle and small business management to your DJ Connection business? It became one of the largest privately owned entertainment businesses. How did you do that?
-I specifically scheduled a time for sales, service, customer service, accounting, and marketing. And I put it on the schedule.
-All of them?
-All of them, except meetings. So right now for Thrive, just an example, if you want to come here and hang out with us-- by the way, on Thrive, we offer free high fives. So you can fly to Tulsa at any point, come sit in a meeting if you want, free high five. You can come here, and it's cool. We'll let you do that until there's about a million of you. And then we'll have to set some limits.
But here's the thing. We have our set meeting. Every single Monday, I have a PR meeting at the same time. So a PR meeting at 11 o'clock on Monday, I'm on the phone, 11 AM, boom.
-No matter what.
-No matter what. I'm on the phone 11 AM Monday.
-You can't make it up, as you go. You can't, I got behind in this, this, and do two hours next week.
-Accounting. I have a meeting with my accounting team on Tuesday to make sure I approve everyone's paychecks. I have a newsletter that goes out at Tuesday, the same time every Tuesday. Then on Thursday, I have our sales meeting, our sales production meeting. It's the same time every Thursday from 1 o'clock to 3.
Friday, I have a creative meeting at 10 AM. It's the same every week. And that's why it's successful.
-In your small business management, how did you keep track of what each employee needed to learn, or what they were learning? Did you have a list, a checklist for each employee?
-What you want to do is you want to have a book, like this, like a binder. And every employee needs to have a binder. And then in the binder you would write the different areas that they need to know. And you would give them a grade on A, B, and C.
You have all the areas they need to learn. And then you have their grade and the date. So you'd write, June 5th, C, sales. June 5th, B, marketing. June 5th-- and then over time, you keep grading them until they get proficient. That's how you do it.
-I feel like for business owners, so often there's those little problems that you're always having. You call them little fires that you've gotta put out all the time. And a lot of times it's inevitable.
But oftentimes they're simple things, like my employees don't know what the passwords are. Why is that happening?
-It's happening because, as a general rule, as a human we prefer-- I am going to write this on the board, because this is a little crazy.
-Good. You love that board.
-Well, I do it. It's a beautiful technology. Here's the thing is that human-- most of us, we prefer chaos over predictable success. We prefer chaos over predictable success.
Why? And when you guys edit this, make it nicer.
But we prefer chaos over predictable success. Why? Because we would rather do anything than to be bored. So what happens is we would hate to have the same meeting every Tuesday, because that's predictable. Right?
So we would hate to have-- the people I know who went to medical school and who graduated with top honors, they had the same schedule every week where they would study. They were people of routine. Every entrepreneur I've ever read about-- let's just take a look. Let's look at this for a second here.
James Brown, musician. He's the first one to really move on the stage. He could really energize the crowd. He did the stuff, the foot shuffle. He kind of gave Michael Jackson that. Michael Jackson kind of improved upon where James Brown took it.
James Brown was the godfather of soul music. But he was the hardest working man. And he had a set schedule for his band. And they would practice, and practice, and practice. And if you look up his life story, or you watch it on one of these television shows about the life of James Brown, you'll discover a man who practiced, practiced, practiced, practiced practiced.
Michael Jordan, you'll watch a video about a guy who practiced, practiced, practiced, practiced, practiced. Steve Jobs, practiced, practiced, practiced, practiced. And was it random? No, it was a set time.
So that's something we have to do. But we have to fight the desire to have predictable chaos.
-To help you guys out, we made a list of the meetings that we have every week, that you have every week. So we've got the sales meeting.
-You've got the accounting meeting.
-The leadership meeting.
What are some of the meetings that you used to host at DJ Connections? Were those the same ones essentially? Did they change with Thrive?
-Well, when you're in a small business, you want to take these multiple meetings and combine them into meetings. So you might have a meeting just on marketing and sales, because you don't have enough revenue and enough people to have someone who specializes in just social media. So social media and sales and marketing, they might have to all be at the same time.
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-So what did those meetings look like for you, though, when you just had two or three people?
-I would say--
-Is it awkward or is it good?
-I'd say hey, hey-- and I'm changing some names here--
- --but hey, Bill-- let's just pretend you're Bill.
-Hey Bill, this week we've got to make sure that you know this sales script, so here's the script, I'm going to role play. I'm going to pretend like I'm the customer, you're going to pretend like you're the sales guy, and let's do it.
-Yeah, and then you just do it.
-I like it.
-That's good. Well hey, let's just go ahead and jump right into the next one then. Number 10 here.
-Being a leader, not a pleaser. A leader, not a pleaser. Notable quotable from Colin Powell, decorated military hero, four-star general of the United States Army, and former US Secretary of State. He once said, being responsible sometimes means pissing people off. What was he talking about, and why is that important?
-Well, here's what he's talking about. You're going to first hire somebody, then they're going to respect you, then they're going to like you.
-You don't need them to like you in the beginning?
-If you hire somebody, your number one goal is to get them to respect you, then to like you. That's how it works.
So yesterday was the first day in probably a month where I've smiled for a sustained period of time, because of some of the neat stuff that's going on. There's people online for Thrive right now who are wanting to win this trip to visit Lee Cockerell, to go to Disney World to meet the man who once managed it. And I'm so excited to hear these stories of people-- of you guys who-- your stories and why you want to go to Disney World.
-This is what you care about, man.
-This is what I'm into.
-This is what gets you up in the morning, is helping people like that.
-So the thing is, though, I am excited because the people we've hired are now doing the jobs needed, and the customers are having success, which is now-- the people on the team are going gosh, we're actually doing this crazy person systems and the customer's actually like us. Now that they feel better about their job, they feel better about me, they feel better about the customer, it's a great thing.
I see in businesses all the time, what we do is we hire people and our number one goal is to get them to like us, and then they never respect us.
-So is that the main difference, then, between the leader and the pleaser?
-Yeah, a pleaser is going to be right here. This is what the pleaser's going to do, and this is what the leader's going to do. And Colin Powell articulately put it. What'd he say again? He says--
-He says, being responsible sometimes means pissing people off.
-You've got to piss people off. So that's the thing. If you have somebody who works for you and they're not following your sales script or they're not building the right widget properly, they're not making your cupcake the right way, they're not installing roofs the right way, you have to say something. You have to hold them accountable.
I don't know if the people who work for you are just weird, but as a human, as a general rule we all don't like criticism, right? So when somebody tells you for the first time, hey, you didn't do that good of a job on your sales call, we don't want to hear it, right? We're like, what?
But when your boss is firm and is consistent and says, hey, I want to help you grow, Caleb, but in order to keep you from limiting your paycheck and your potential, I've got to hold you accountable to this system. And my goal is not for you to like me, my goal is for you respect me because I'm going to help you make money. So for your benefit, the benefit of our customers, the benefit of our business, I'm going to hold you accountable. Once you start having success, you'll like me.
But if I hire you and my number one priority is to get you to like me, so I don't give you that constructive criticism, you'll never respect me because you'll never get results.
-Have you found that-- with all the consulting that you do-- a lot of times these companies are led by pleasers?
-Yeah. It's the worst thing you could possibly do, almost. I know that I'm a polarized person where everything's the best movie or the worst movie ever. "Noah" right now happens to be the worst movie I've ever heard about, but there will be another movie that I think is the worst movie ever.
But really, this is a really, very terrible thing that you can do in your business. If you're a pleaser, you just can't grow.
-Well I mean, we can go back through the other principles we've already talked about. There's no way-- if you're pleaser-- you're getting the people off the bus that need to be getting off the bus.
-You can apply it to almost all of these we've talked about already.
-I don't think anything we talked about today works if you're a pleaser... Small Business Management.
-Exactly. Exactly. So tell me this then. If I am naturally a pleaser and not the leader you're talking about, what do I do, what action steps do I take to change this mindset?
-Well right now, this very second, you have to decide something. Right now.
-There's a choice.
-Not later. I talked to a guy the other day, and he has a wife and he's got these two little kids, and serious like a heart attack.
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-He is in a situation where he has an employee that's not performing. It's a small business. And this employee literally is not performing. He's doing a bad job.
-And it's costing my main man $50,000 a year. Because this person who works for him is not performing.
-$50,000. You're saying, what kind of business? It's a professional business. It's a business. There's medical and legal. It's a professional business. And this person is not doing his job, and it's costing him $50,000 a year. Now, if he-- so he has to stay late every night. Staying late. He financially is struggling. And I just asked him, do you care more about keeping that guy happy or your wife or kids? And he's like, what do you mean?
I said, well, if you care more about your wife and kids, you need to tell that person right now, stop it. I'm done with that whole thing you're doing. We're done with it. And I have interviewed other people, and I will fire you right now if you do not follow these systems. But I am not staying late again to cover for you. I'm not going to another meeting on your behalf. I'm not meeting with another client because you're calling in late or drunk. I'm done with it. And I know I've known you since college, but you are an alcoholic, and I do not care. And if you do not stop doing this, I am going to fire you because I would rather spend my life with my kids and my wife than to spend time filling in for you.
-Now, for some people watching this, that's hard to do. And I'll tell you for me, it was hard to do. I had a young man who-- I've told this story before, but I can't tell it enough-- he used to literally come to work every single day late. So, every single night I had to miss family time because I had a cover for this guy. Every single holiday I had to-- always. At least once or twice a week I'd have to fill in because this person wasn't getting their job done. Well, now, that's not the case anymore because I can hold the person accountable. I can be over here. That's what matters.
-I can only imagine what that does to the morale of the office, too, when you eradicate this person from the office.
-Oh, it's a cancer.
-The whole environment has got to just completely change.
-All right, well, let's go on then to number 11 here. This is not the last one. We advertise 11. We have a bonus one.
-You always go above and beyond.
-Right, that's what we're doing here. So number 11 is a master the small task to achieve your big goals.
-Notable quotable from John Wooden, coach. "It's the little details that are vital. Little things make big things happen." What does this quote mean to you, Clay?
-Well, first off, if you're born yesterday. You were born sometime after John Wooden was--
-First of all, well done, you're getting a head start on life.
-John Wooden won more NCAA championships than any coach. Absolutely dominant. And he won with big players, short players, fast teams, slow teams. He just won. Think about Phil Jackson, Kobe Bryant, how many championships has Kobe Bryant won without Phil Jackson? How many did Michael Jordan win without him? So, is maybe there a common link there? Probably. Well, Phil Jackson is a master of the details. OK. So, the details-- when you talk about the details--
-The details come down to daily check lists. And what you have to do is you have to have a checklist for every position in your business. One for the bathroom. One for the lobby. One for your social media. One for anything that you want to get done, you have to be a master of those details. Those small little details, check in the box, did you do it or not? That's the difference between mastery and just complete mediocrity.
-I mean, but even just in the time that I've been with you, I've seen countless numbers of business owners that have great ideas, right? Big ideas.
-Changing the world.
-Changing the world.
-Beautiful, but they can't take five minutes to make a business plan. Why is that?
-Making a checklist is boring. And we would rather have predictable chaos. Right? We'd rather have just that chaos that happens than to have where you have a scheduled success. I mean, it's so boring to make a checklist. You know, I don't want to make a checklist. That's boring. I want to talk about unicorns and Narnia.
-If I'm trying-- to switch over here-- and start managing those details, what does that look like practically for me?
-Practically, you need to make a checklist for every single position in your business.
-Realistically. Checklists, really?
-Yeah. And you probably--
-You have to do a checklist.
-It will probably take you 30 hours to make a checklist for every position in your business.
-And there's no way around it. It needs to happen.
-No way around it.
-How have you seen-- this is how all the great leaders do it?
-Everyone. Go to a Chicl-fil-A. Ask them for their checklist. Go to Starbucks and ask-- perhaps you're watching this, and you're a barista, First off, I commend you because I love your beverages. But if you're watching this, there's a system. If you go to Starbucks and you order a frappuccino with a pump of this and a pump that, hold this, add that, with the grande, whatever. It's the same. Standardized. Coast to coast. It's always the same... Small Business Management.
-There's no special touches here. And a little--
-Yeah. It's duplicatable. If it's not duplicatable and replicateable. If it's not completely duplicatable-- because that's something you can replicate-- it's not worth
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