Podcast Summary
Learning the Skills of Sales and Customer Retention in Small Business Ownership: Small business owners must be willing to learn sales skills and focus on customer retention to succeed.
Small business ownership requires a deep love for the product and the experience. The speaker shares how his experience with running a gym led him to learn the skills of getting more customers, making more per customer, and keeping them longer. He also discusses the importance of sales, which he initially struggled with due to his preconceived notions. The speaker's journey involved a forcing function when he realized he needed to pay rent for his gym and had to figure out how to sell and bring in customers. He learned how to run Facebook ads at a weekend workshop and signed up 27 clients in the first two weeks. Despite the challenges, he worked tirelessly, teaching sessions, running ads, having sales appointments, cleaning the gym, and doing billing at night. This experience taught him valuable lessons about the importance of sales and the need for a strong presale period. In essence, small business ownership requires a willingness to learn and adapt, especially when it comes to sales.
Using a clear offer and effective marketing to attract customers: A clear, attractive offer and effective marketing can help bring in customers and build a successful business
Starting a successful business requires a clear offer and effective marketing. The entrepreneur in this story started a gym and used a 6-week weight loss challenge as his offer. He marketed it through Facebook ads and attracted customers by promising a refund if they didn't meet their weight loss goal. The challenge wasn't just about losing weight, but also about understanding the lifelong process of weight loss. The entrepreneur provided meal plans and workout schedules to help his clients reach their goal. By letting people sign up for the challenge as they walked through the door, he turned his onboarding process into a sales tool. The success of the challenge came from the high percentage of people who continued working out after the challenge ended and became long-term members. The key takeaway is that having a clear, attractive offer and effective marketing can help bring in customers and build a successful business.
Charging more for one-time expenses helps cover costs and grow revenue: Investing in expert guidance and one-time expenses can lead to mastering new skills and increasing earning potential
Charging more for one-time expenses can help businesses cover acquisition costs more easily. This pricing strategy, which the speaker has employed in all his businesses, allows for higher revenue in the initial period when onboarding and acquisition costs are high. The speaker also shared his personal journey from being uncomfortable with selling to recognizing its importance in growing a business. He emphasized that paying for educational resources like workshops or one-on-one coaching can provide significant value by offering speed, expertise, and troubleshooting that might not be available through free resources like YouTube. The speaker's experiences demonstrate that investing in learning from experts can lead to mastering new skills and increasing earning potential. Additionally, the speaker shared that he started his gym business at the age of 23 and signed a $5,000 a month lease, highlighting the ambitious nature of his entrepreneurial endeavors.
Learning about Facebook ads at a marketing workshop led to significant opportunities for the interviewee's gym business.: Ignorance and luck can lead to unexpected business opportunities. Don't let fear of failure or disapproval hold you back from pursuing your dreams.
Sometimes ignorance and luck can lead to significant opportunities. The interviewee shared how they attended a marketing workshop two weeks before opening their gym and learned about Facebook ads, which turned out to be their saving grace as running Groupons did not bring in any customers. The decision to quit their job felt risky due to the emotional attachment to their planned career path and family disapproval. However, the dissatisfaction with their job played a role in their determination to not let their father have a "I told you so" moment and pursue entrepreneurship despite the risks.
Personal growth and fulfillment require emotional risks: Choosing personal growth over approval and financial success requires emotional courage and seeking guidance from trusted sources.
Making significant life changes, whether it's leaving a toxic relationship or abandoning a long-held career, can be an emotional and complex decision. The speaker in this discussion shares how he felt dead inside in his relationship and ultimately chose to prioritize his own self-acceptance over his partner's approval. Similarly, when he decided to leave medicine, he had achieved financial success but felt unfulfilled, leading him to pursue entrepreneurship in the fitness industry. These decisions were not based on mathematical calculations but rather emotional needs. The speaker's experiences demonstrate that personal growth and fulfillment often require taking risks and making difficult choices. Additionally, seeking advice and guidance from trusted sources can help clarify thoughts and make informed decisions.
Learning valuable skills and experiencing personal growth in owning a gym: Owning a gym provides opportunities to learn sales, management, and valuable skills in the fitness industry, leading to financial growth and personal development.
Owning a gym can be a profitable venture if you have a passion for small business ownership and the product experience. It's an excellent opportunity to learn various skills, such as sales and management, which can be applied to larger businesses. The ability to sell and convert customers is particularly valuable in the fitness industry, where there's a high volume of interactions. Moreover, the skills and knowledge gained from running a gym can lead to significant financial growth. As for wealth, there are different levels beyond basic needs and discretionary spending. These levels allow for more luxuries and investments in knowledge, which can lead to even greater returns. Overall, the gym industry offers a unique opportunity for personal and professional growth, as well as financial success.
Understanding income, expenses, and personal comfort levels for effective financial management: Find a financial strategy that aligns with personal goals and risk tolerance, emphasizing liquidity, tax efficiency, and potential passive income.
Managing personal finances involves understanding different levels of income and expenses, and finding the right balance between saving and spending based on individual comfort levels and risk tolerance. The speaker, who saves a large percentage of his income and keeps a significant cash reserve, emphasizes the importance of having liquidity and the freedom to make big investments when opportunities arise. He also acknowledges the tax efficiency of certain investment strategies, such as qualified dividends, and the potential benefits of passive income. Ultimately, the key is to find a financial strategy that aligns with one's personal goals and risk tolerance, whether that means living frugally and saving aggressively, or taking bigger risks to grow wealth.
Expanding business portfolio through bigger investments: Speaker plans to expand business by making bigger investments, taking majority ownership, and differentiating himself through accessible business education.
The speaker is planning to expand his business portfolio by making bigger investments and taking majority ownership in companies that align with his existing portfolio. He believes that this strategy will yield better returns than investing in the S&P or smaller minority deals. Additionally, he emphasizes the importance of word-of-mouth in growing his business and aims to make real business education accessible to everyone through various platforms. The speaker's mission is to provide business knowledge to a wider audience, and he sees his own growth as an opportunity to learn and document the path to success. He differentiates himself from other business educators by coming up through the world of learning from YouTube, seminars, and coaching programs. Ultimately, he values the freedom and optionality that building a successful business provides him.
Passionate about making business knowledge accessible: Investing in accessible education, valuing relationships, and growing with a team can lead to successful content creation.
The speaker is passionate about making business knowledge accessible to everyone and sees it as an important investment, putting in considerable effort and time to deliver high-quality content. He values the freedom and flexibility of alternative education and earning skills quickly, but also recognizes the importance of relationships, family, and stability. He shares a relatable and authentic approach to content creation, starting with minimal resources and growing with the help of a team. Despite the desire for a more polished production, he believes in the value of the raw, unfiltered truth.
Adapting to changing consumer habits: Creating engaging content in various lengths helps reach a wider audience, keeping production costs low with an in-house team, and maintaining creative control to make business knowledge accessible to all.
Creating engaging content that caters to various attention spans is essential to reach a wider audience. The speaker, who runs a successful YouTube channel, acknowledged the importance of adapting to changing consumer habits and producing a mix of long and short videos. Despite generating significant revenue, the speaker's expenses are relatively low, with an in-house team handling most content production. Agencies can provide ideas and outlines, but the speaker maintains creative control. The ultimate goal is to make business knowledge accessible to everyone by maximizing reach and output across multiple social platforms.
Maximizing existing platforms, expanding operations, and exploring new opportunities: Continuously improving and expanding a content business involves maximizing existing platforms, taking operations in-house, producing high-quality content, and exploring new avenues like paid advertising, affiliates, and advanced topics.
Creating and growing a successful content business requires continuous improvement and expansion. The speaker is currently focusing on maximizing existing platforms, taking operations in-house, and producing more high-quality content. However, they acknowledge the need to explore new avenues such as paid advertising, affiliates, and more advanced topics. They believe that creating content that appeals to both beginners and experts is achievable with the right packaging and presentation. The speaker also reflects on starting earlier in their content creation journey and wishes for a faster progression. Lastly, they mention their past achievement of having six-pack abs since the age of 16 but admit they have not maintained it and that maintaining motivation is a separate challenge.
Bridging the accountability gap: To achieve goals, recognize the accountability gap and make it more uncomfortable to not follow through than to do so, through accountability or consequences.
The key to achieving goals, such as having a six pack or losing weight, is not just knowledge, but rather overcoming the accountability gap. People often know what they need to do, but they don't follow through due to the discomfort of short-term sacrifices for long-term gains. To bridge this gap, it's essential to make it more uncomfortable to not follow through than to do so. This can be achieved through accountability, such as having someone hold you accountable or implementing consequences for not sticking to your goals. Ultimately, it's about recognizing and addressing the underlying reasons why we may choose not to follow through and finding ways to make the journey towards our goals more inconvenient in the short term but ultimately more rewarding in the long term.
Identify, Determine, and Pay the Price for Your Goals: To achieve your goals, identify what you want, determine the cost, and be willing to pay the price. The investment upfront may be significant, but the long-term benefits and reduced maintenance costs make it worth it.
We all have limited resources, including time and money, and we need to prioritize how we use them to achieve our goals. For example, if you want to improve your physical appearance, like getting a six-pack, it may require a significant investment of time and effort upfront, but once achieved, the maintenance cost is minimal. Similarly, maintaining a healthy body requires less effort if you've built the muscle in the first place. Ultimately, it's essential to identify what you want, determine the cost, and be willing to pay that price. Whether it's worth it is a personal decision.
