Many aspiring entrepreneurs believe building a wildly successful business will just happen with a snap of the fingers. However, vision without execution is hallucination. This course will teach you the step-by-step process of building a successful business.Sign Up to Watch
- All right, we are back with phase nine of Business Startup 101. Recruit stars and fire jerks, idiots and terrorists. So we'll start off with a little notable quotable. "A level three business is systems reliant "With a winning management team in place "And strong internal controls "That allow the business to run smoothly and effectively, "Independent of any one person. "At this point, you truly have built a business. "Not a self employed job. "The business runs smoothly "And your clients look to the business, "Not the owner, to fulfill its promises." Found that out of "Scale" by Jeff Hoffman and David Finkel. - That book is right on your desk. It is awesome. Such a good book. Everyone needs to buy that book, okay? So the main thing is, once you have these systems tight, you've got them right, you've nailed it. You're ready to scale it. You've got to understand the human component and so if you have exact, specific, process that works and you have bad people doing it you're not going to have any success. And I'll give you an example from our own photography company. We have a call script that works, we have a way to get leads that works, we have a way to deliver photos that work, we have great people in many positions, we have great photography systems, we have great equipment. Every single time. I repeat this, every single time. Now that we have great systems, that there's a problem. It's always a people problem. You need to write that down. You need to be thinking about that. When you have a tight system, it's always a people problem. Okay, so we have this one lady and she's probably going to watch this episode so it's good for her. Mikayla, where are you at? - [Man in Black Shirt] Hi Mikayla. - Mikayla, she has high integrity, she does what she's supposed to do, and she doesn't work as unto men, she works as kind of like a form of worship, she sets her own standard. It's like she's, if you're into the Bible there's a verse about how you're supposed to work as unto the Lord. If you're not somebody who values the Bible, that's fine but the point is you want to work like your boss is always watching. And because she does that, anything that she does, any system that I ask her to do, any system that I ask her to execute, she always does it right. Because she's good people. There was another guy who we let go, about six months ago, who couldn't get anything right, anytime he did anything it just would not work, I'm not booking anything, I'm calling all day, I'm not booking anything! He edits stuff, it's wrong, it's late, the computer doesn't work, he can't figure it out. All the video files are late for wedding videos, all the photos are screwed up. He's always late, missing deadlines, he can't figure it out, he's always running behind, he's always stressed, he's always angry, cause he's an idiot! And so you've got to fire people like that! You've got to fire people that are idiots! Because I'm telling you, I don't care how great your system is if you have idiots it won't work. So you've got to first focus on making a great system, so some of you watching right now have an A level system, with D level people. Some of you watching right now have A level people, and a D level system. You have A level people, D level system. Or the inverse. If you have a great system and bad people, not really a good deal. If you have a great system, bad people, you have bad system, great people. Either way, you've got to make sure you have both. Start by building your systems, cause great people don't want to work somewhere where there's horrible systems. - All right, so we've got seven steps we'll get into. - Do it. - Going to get into about recruiting stars, cause that's what you're going to want to do. - Bang. - All right, step one: when there is a problem with execution, your system. Ask yourself, did the person not know what to do or do they not want to do what they know they need to do? - Always ask the question, when you find somebody who's not doing the system right just stop and say hey, did you not know what to do? Or did you choose to not do, what you knew you were supposed to do? And give people the benefit of the doubt, I mean if someone makes a mistake, it's probably because they didn't know what to do a lot of the times, at first. But if they do know what to do, they've watched the videos, they've had the training, you've met with them, and they just choose not to do it. We have a guy at The Elephant in the Room, a business we own, who just, I had to fire him. The guy, literally, every single week I go, "Hey, where did our customers come from this week?" He's like, "Oh I forgot to track it. "Can I have more training on how to time-block?" And I'm like, okay, I'll do it one time. Next time: "I forgot to track it. "Can I have more training on time management "I just struggle with time management." Or I have a late problem, or I didn't know, or there was a miscommunication. The human race, we only have three moves we do by the way. - [Man in Black Shirt] There we go. - There was a miscommunication, I thought you said something else, that's one. Two: I didn't know, I didn't know. I wasn't aware. The third is the emotional outburst. Well I would do it if you guys would empower me and stop putting so much stress on me, I've got to go! - [Man in Black Shirt] Get off my back bro. - So yeah, get off my back bro. So what you do, is with that guy, hey, you know what, you're promoted to customer status. You know it's where you can shop here any time you want but you're gone, you're gonzo, fired. You've got to do it. You've got to make sure that people I ask of, you know what to do, and if you don't know what to do, are you choosing to do it? - That's good stuff.
- Okay, step two. - Yep. - Document all human issues and system issues. - Immediately. So whenever you have a human issue, like today we were on the Thrive set and we had an issue with a camera. We immediately document there's a camera issue. You wanna write it down because that's a system issue. It didn't matter how good you are, how good I am, how good somebody else is, in my case how bad I am. But how good you are, if the camera doesn't work, you can't do your job. Now, if there's a human problem, like a human who showed up late, which we didn't have anybody today that showed up late, but if we did, we'd have to document that immediately. And why do you want to document it? Because once you document it, you put it somewhere where you act on it; it's actionable. So if you have somebody who does a bad job, you write them up immediately. You take out your write-out sheet, and we have downloadable write-up sheets. Thrivers, we have templates; downloadable write-up sheets you can use to write up your people. You write them up immediately. You pull the person aside and you say, "Hey, you chose not to do your job today, here's what's going on." If there's an equipment failure, you immediately write it up. Write it up, get it done, get it fixed, you have to do it immediately. Don't do it later when you're at home, do it immediately. - So important, so important. Okay, step three: Improve systems and hold people accountable. - Holding people accountable just means that you're saying, "I'm going to count what you do. "I'm going to account for what you do." I'm saying, "You said you were going to do this, "and I'm going to hold you accountable." Integrity is an indivisible... The word integer is an indivisible number, okay. So integrity means that if you're indivisible, you do what you say you're going to do. If somebody does what they say they're going to do, they should have no problem with this system. Recently, true story, this just happened Friday. There is a business in town that has hired me to help them, and they are struggling. And so I set up a call recording system. And why did I do that? - So that you can measure and refine? - Yes, and why did the person whose call I was recording not want me to record their calls, in your mind? - They were probable scared they were gonna get messed up, or criticized, or something like that when you were going over them. - This just in: They weren't actually making the calls. - [Voiceover] Oh, that's even worse. - So what we did was we went ahead and installed the call recording system, and I'd said, I was awesome on Friday, I said, "Hey, I just want to verify real quick, "we've been recording your calls this week," and she's like... "And I have looked into the research "and it's still a little bit early to tell all the numbers, "but I can see now how many calls we're making a day, "and I can see what you're saying on the calls, "I can hear the calls, and I just wanna make sure "you're aware of that moving forward." And right away, "When did you start? "That's a violation of my rights, how come I..." We did tell the person, it's in the handbook that says, "All calls are being recorded for quality control," and they initialed that they read it. And it even says on the phone, if you call and you're the caller, it says inbound, "This call is being recorded for quality control." But this person was just so absent minded. Now, what starts to happen? They don't want accountability. And let me tell you something, they're probably get fired next week, because they're choosing not to do their job and the call numbers were so pathetic. They're supposed to make a hundred outbound calls a day and they make, like, four. They knew what to do, chose not to do it. Hopefully they can improve and stay, but if not, we're moving on. - That's gotta happen, right. - Boom - Alright, on to step four. Fire people and systems that are consistently not performing up with the standards that your ideal and likely customers will demand. - Your customers are the people who pay you. I'm gonna put the Sam Walton quote on the screen, but the customer is the boss. The customer can fire everybody from the CEO on down; the customer is the boss. So if the camera that you bought isn't delivering the way that you need it to deliver in order to have your customers wowed, get did of it, right? You just fire the piece of equipment. You get rid of the equipment, you find something new. If you're a home builder and the counter-tops you're using are not high quality, they're not working out well, people are complaining, without any emotion you just switch... You stop using that kind of material, right? Here's the problem. People get so much emotion, E-motion, it's the E in front of the motion. People get E-motion; it stands in the way of the motion and they won't fire people who don't perform, 'cause they're like, "Well that's my brother, that's my cousin, that's my..." I'm just being real. I have had to fire numerous family members. And I always try to do it in a nice way, but I don't care. If you're gonna come work with me because you feel like we've had some success and you wanna come join the team, I am not going to lose customers as a result of you choosing not to do your job. So I will look at it pragmatically. Is the system not working? Is the person not working? And if either the system or the person is not working, I take a time out and go, "Did the system not know to work?" I mean, maybe the computer's a great computer but you didn't program it properly. Maybe the person is a great person but you didn't teach them properly. But if they know, and they're choosing not to do it, you gotta fire them, move on.
- All right, it's excellent. This stuff is so good today. Step five: don't let human weeds grow in your garden. Superstars hate working with idiots. - Okay, you work in the office, and you've probably seen some nice people. Some probably not so nice people that we've had to move on from. But recently, we have a young man in the office, and I won't mention his name because he's a good guy, he's a good guy, he's a good guy I wouldn't mention his name except his name's Rich. And Rich has absolutely been changing in a really positive way. Have you noticed this? - Yes. - And Rich, he's really exploding with an eagerness and an alacrity, and an enthusiasm to, and alacrity, by the way, means it's eagerness to learn. So he like wants to learn. You can tell he wants to learn. And why? Because he's inspired by who? His boss. The people who are in charge. He loves Marshall, so Marshall's one of our guys. He loves Marshall. He's starting to learn. He's like, man, Marshall does these things, I want to get the same result Marshall has. I should learn these things. So because Marshall's not a weed, right? If it's a garden scenario, if he was a weed, it would be spreading. - [Co-host] Yeah. - You've got to look at is, anybody in your company is like a cancerous, viral growth, good or bad. - [Co-Host] Bad. - So if they're good, and let's just say they're a good person. Like a virus, they're going to spread their goodness. If they're a bad person, like a virus, they're going to spread their badness. But note, nothing happens in a vacuum. You either are a viral cause for good, or a viral cause for bad. And somebody here needs to hear this, but you're gonna have to move on if people can't deliver. Listen, if the product doesn't work, if you bought a TV and it didn't work today, you know what you'd do? You'd return it and say you want another TV, because it doesn't work. Somebody else, someone's watching right now saying, I would never return a TV if it didn't work. I'd keep it forever because I'm loyal to the brand. Stop being that, stop doing that. But most of us, if a hammer didn't work, you bought a hammer, it doesn't work, it breaks right away, you'd return it. But for some reason, with people, we're like, oh, I can't do that, that's so mean. Go back to the earlier rule. Ask the person, do they know what to do? If they know what to do, then did you choose to do it? If they chose not to do it, write them up a few times, then whack them. - Awesome, so we've got an idea here. Right person, wrong seat. I'm going to read through that real quick. And get your thoughts on it. In this case, right person, wrong seat. In this case, you have the right person, i.e., one who shares your core values, but he or she is truly not operating in his or her unique ability. - [Clay] Yeah. - This person has been promoted to seat that is too big, has outgrown a seat that is too small, or has been put in a position that does not utilize his or her unique ability. So generally this person is where he or she is because he or she has been around a long time, you like him or her, and he or she is a great addition to the team until now. - Okay, and I'll pick on you as an example. This is a good one. You have done very, very well since joining our team. So you're now given more tasks. So this is kind of fun for Thrivers. This is one of your first times on camera. - Yep, very first, yep. - So you're like, learning stuff, though. And nothing could be more uncomfortable than one, learning on camera, two, having your boss guy talk about you on camera. But the thing is, being real though, and so, you've been promoted because you've done well with what you've been given. You've been given little things. You did great on those little things You do bigger things, bigger things, you're given more things. Pretty soon, you've been so fruitful with what you had, we've decided to multiply your territory and to give you a bigger role. So now, you're in a role where, you're a musician, right? What all do you play? - I used to play the drums and trumpet. Now mainly guitar. - And you can sing well, too, right? - I don't know if I would say, well but I do like to sing. - You can find harmony. So I'm saying but you are a musician. You're a performer. You know what that's like. - [Co-Host] Yeah. - So learning this skill isn't going to be impossible. It's just going to be a thing where it's a trial and error, you learn. But if we put an introvert, a complete, absolute introvert, who is just as good as you were at the jobs you did. Because you've done search engine work. You've done sales calls. You've been in meetings. You've been, I mean you done a lot of great-- - [Co-host] Shooting weddings, all kinds of stuff. - Yeah, you've done everything. Because you've done that, if we now said, okay, great, you've been promoted to being on camera. But you're an introvert? That would not be good for your career. For you, because you're a little bit of an extrovert, it's no problem. But I'm saying is, some people right now, you're watching this, and you're like, my brother's been with my company for 10 years. We started it together. And now that the company's grown, now he's in a position of leadership, but he's an introvert. He's unable to communicate verbally. Some of you are watching this right now, and your sister is in charge of accounting, and that lady can't find her purse and hasn't entered anything into her check register in a decade, but you have her in accounting because she's your sister. That has to stop, we've got to make sure-- - It happens so often, it seems like every small business, somebody's been doing that. - I mean, just this week, I got on the phone with a guy, who, the business, he's in charge because his father passed away. And he's just terrible. He's just not good at leadership, knows nothing about the business, doesn't know what he's doing, but he's in charge. And that's the guy of, a good guy, but he's just not qualified. So he's now facing bankruptcy going, maybe I have to shut the company down. Because think about all of the employees who work for him. They're going to lose their jobs, because he's the great guy in the wrong seat. - [Co-Host] Wrong seat. - Now, if you understand this, if you understand this, if you understand this principle, you'll understand that it applies to you, as well.
Send us your email address, and our team of elite minds will get right on it.