Transcript for:
My system for outworking everyone - (Alex Hormozi)

if you're a business owner or work for one this presentation may be the most tactical thing that I can do to make you money I think this one's going to be a really big hitter which is why I wanted to do it live to you guys um so let me ask you guys a question who believes that you have to work hard to make money real question okay who believes that no one can outwork them okay good I have at least some honest people in this room um well I'm going to attempt to prove some of you wrong who believe that you can never be out work because I see that on the internet all the time and it drives me banana um and the reason this is so important defining work is that all of us claim to work every day and yet most of us can't even Define the word and so how do you define work so we can use the science definition which is you know work equals force time distance problem is that that's not very useful for knowledge workers for what we do uh do we use the time on clock definition you know time spent working as our inputs prob is you know work 16 18 hours a day and so if everyone is already doing that then how can one person work harder than another okay okay um so then do we Define it by how hard you try so the effort that you expend is the work that you do well do you want participation trophies and people just saying like yes you tried your hardest is this how you want your employees to gauge themselves well I tried really hard even though I suck it's like well okay and so if it's if work isn't four times distance if it's not just the time you put in and if it's not just how hard you try then what is work and so we better be clear on what it is we're trying to to do to make money right if we're going to do more of it to make more money and so this is my definition which is work equals outputs and outputs equal volume times leverage so some of you guys have seen this for me before and the Plaine is the number of times you do something times how much you get out of each time you do it fundamentally that's what it is and so the next question that follows is well then how do we work faster or how do we do more work per unit of time and so that's volume times leverage divided by time and so the plain speak is output per unit okay and so if you want to the most per unit of time please pay attention because I do think that this will help you and so how can we get more out of the time we put in which in the game of business is money and so now everyone's like attention you know perks up they're like ah that that stuff I would like that and so visual for you so volume is the number of times you do the thing leverages how much you get out of each time you do it equals your output how many times you do it times how much time you get equals your output and so some quick examples and you guys can tell me whether it's high or low all right is this high output or low output this is low it's very hard to do that with very low leverage high or low high great high or low higher exactly high or low highest because we have a lot of volume on good leverage and so now we understand what work is you can either do more activity do more stuff or get more for it to get get higher output and so normally I spend the vast majority of my career talking about leverage but today I actually want to talk about volume and the reason for that is because talking to a lot of businesses and um I have taken for granted that people do all the volume stuff and it turns out after talking to many of you that is just not true and so here I am talking about leverage because I just assume you work your ass off um and that's fundamentally false for most of you um and I'm baffled by how little people people actually work when they think they are working it's for you and so I'm going to cover two things today number one clear on the input that grows your business the most two is removing everything that isn't that from your life my disclaimer is that this is for business owners and specifically your highest level employees and so if you're like taking notes and you're like hey I want to send this to my team I would recommend because my team saw these slides beforehand and I had like two guys being like I'm going to change a whole bunch of stuff and I was like great and that's my sign for good presentation so figuring out the right input let's say that you want to grow your business you can either get more customers or you can make them worth more that's it you either sell more units increase LTV done so breaking this into actions for customers you either get more traffic or you convert a higher percentage of them of the traffic you have that's the action making them worth more you raise prices decrease your cost of goods sold buy more get people to buy more stuff more times those are the things that's all you got and if you look at four things what do you actually do well to get more traffic you have to advertise more better to increase your conversion you have to practice sales or you have to improve your offer if you want to raise your prices you just have to grow goads and decide by the way goads are are both both sexes so there you go there's my PC for the day buy more times which would be decreasing turn you have reach outs you have exit interviews you do pre- payments you improve your on boarding you get faster results you hold events to appreciate members or clients but if you look at your time you do almost none of these things you're not doing this stuff now and that's why you're probably not making money or as much as you want and so if you don't do this stuff all the time that you spend quote working has the same impact as doing nothing and it's kind of like spending your entire week thinking about how you're going to build and redesign your website and then deciding not to do it except it's just more tiresome than just watching Netflix and relaxing and so you'd literally be better off doing nothing than doing the work that you claim to be work that actually isn't and so that's why most of the businesses here are stuck and why many people watching this at home aren't growing as fast as they want and so for most of you especially the smaller businesses your effort should be disproportionately here on getting more traffic advertising more advertising better and higher con conversion meaning your actual activities on a daily basis is letting more people know about your stuff and practicing getting them to give you money when they find out about it that is what you do on a regular basis with a vast majority of your time after all if you do not have customers then there is no one that you can raise his prices on and that you can get to buy more times and increase their lifetime value and so let's pick apart this first one first advertising more and better so you advertise better by advertising more Excellence comes from repetition when we even use volume as a measure for skill like I've taken 4,000 sales consults we even say that we use it as a proxy and yet we don't think about that for our own skill and business and so if you want to get unreasonably good at advertising do so much advertising that it would be unreasonable for you to suck after doing that much of it again we're just defining inputs here so if you run ads it means you commit to spending four hours a day scripting analyzing writing copying recording ads which may mean learning how to use editing software or an iPhone if you use Outreach it means spending four hours a day reaching out to people across social media platforms if you use content as your primary advertising then you make content for four hours a day every day and you make it on every platform if you use partners and Affiliates it means spending four hours a day doing Outreach ads or making content to help your Affiliates send you more customers so these actions become the volume that create the outputs which for many of you is more leads and if you're hearing 4 hours a day and thinking how will I have time to do everything else remember that doing everything else is what's this is what your time looks like when your business is stalled this is what your time looks like when your business is growing and so too many of you if you're honest with yourself your days look like this and expect results that look like this I told you I'll just give you a really thorough answer and so before you say but I need to keep doing insert whatever thing that isn't growing your business remember you guys can do whatever you want but if you keep doing the same stuff and your business isn't growing then the stuff that you're doing is wrong it is not the right stuff and you have to learn how to let some fires burn some problems are problems but they not the problem of the business today and this is the essence of strategy you learn to prioritize some things are more important than others which means yes you can neglect them for a season then when they actually become the true limiter of the business the true constraint then you focus on them four hours a day until you solve it and so if you use these four things as our guide let's say you master traffic and you're getting loads of leads but you can't close a barn door if the wind was behind you right then conversion becomes your limiter and so then you train someone else on the advertising stuff you do because you mastered it and then spend four hours a day trying to optimize your conversion which might look like this you might actually track your close rate for a change you might actually report all your sales interactions and do them from behind the person you actually see their identity this is for Brick and mor people and have a sign on your door that says that you record so you can do this legally watch game tape of sales that actually worked every single morning you practice your script out loud every single day you hire someone who can give you feedback ideally daily on how well you sell you have a two-minute mental prep before you take consults every single time you give a pre-sale questionnaire to every person who walks in the door if you're bricking Mort or you have some sort of thing online to get them ready for the sale you qualify people on the phone better to pre-sell them and then you actually do that every time there we go you guys getting this cool okay so all problems are solvable with skills and all skills are attainable repetition and feedback and once you have a skill you can do it in less time which gives you Leverage so you get more for what you do the better you get at it the less time it takes for you to do it so you get more time back in other words once you get great at sales you don't need to switch As Much Time on it and you'll still close the same percentage you go from growing a skill to maintaining a skill and it's much easier to maintain a skill and continue to stay at that same level than it is to gain a skill and so it's kind of like maintaining weight if you've ever like lost weight or gained weight like once you get to that level it's much easier to stay and maintain that it is to to break the whatever the word is homeostasis and same thing for gaining muscle and everything you spend your time on has to clearly lad up to one of these four things and so right now if you look at your schedule and you're not lading up to these four things you're not doing the stuff that makes money otherwise you're just doing this rather than this but still some of you guys are going to be thinking to yourselves well with what time out I can barely keep water as is I'm very busy understandable and if you have a special snowflake excuse I'm special um you're totally right it's literally impossible for you to do what I'm saying and that's why your business will never grow cool and that is my talk for today now be better of course you're rights will never grow right happy now you're totally justifies not achieving your goals consider yourself excused all right so for everyone else right um we just have to face reality success the marketplace your customers they don't care about whatever your excuse is and it may be entirely Justified it also doesn't matter and they also don't care they just care about output they care about what they can get from you what's in it for me and so if you're open to the idea that might a little bit about making money and growing businesses I want to get to the second part of my presentation which was that was my 11-e transformation that's my before and after how to make this easier for you so I said I was going to cover two things the first is how to get very clear on the inputs that grow your business every feel very clear on the four things that you need to do and how they lad up to activities that you spend four hours a day and you're like great but I don't have four hours a day well that's why we're going to do the second part which is removing everything else that isn't that from your life and so the nice part about this second half of the presentation is that there's nothing to argue about it's just facts we all have 24 hours a day I'm good there so far I've just stated facts okay people who move faster just do better things with their time you can cut grass with scissors and it will take all day or you can make one call and have someone else do it in either scenario both people get the grass cut and so we outlined that you need to spend your time working on those four levers in your business at least four hours a day and so I'm going to show you how to find the time with a combination of habits and buying time this may be one of the more tactical things that I give you guys that will probably change your life from this whole experience so first we have to find time and second we will buy time so let's start with finding time so there's two types of work that every entrepreneur has you've got maker time you've got manager time maker time is long blocks of uninterrupted time four to six hours you only have 14 work blocks per week of this maker time it's very very valuable it's low urgency High importance work that's the stuff that moves the business forward a productive maker calendar is an empty calendar an interruption always destroys an entire time block who here has had a Time block where you're like really excited and then a 1-hour call comes in at 10: a.m. and you're like well there goes my morning yes we've all been there and you hate that person and this is what maker time looks like looks great look at that beautiful blue space so much work so much money to be made made on the other hand you've got manager time and we manage both of these things these are time blocks as small as 5 to 15 minutes you've 100 of these plus per week the goal is to fill your calendar with these slots if you're in your manager time and you're are Maxim manager when you have no gaps and this is usually when you're spending time training teams coordinating communicating putting out fires and this is what it looks like when you're on manager time this is also my calendar when I'm on a manager day and both of these work styles are important everyone here has worn both of these hats right okay but the moment these two hats meets is when disaster happens and so if you're trying to in tiny slices of management into your making time kill half a day it doesn't work and if you have lots of empty slots between your managing time it's also inefficient there too because you're not doing anything with that time you might as well fill it with more meetings and so you have to understand what type of work you're doing when you start the day and explain to your team the difference between these types of work and the importance of those time periods and why you have to prioritize them the entire business can grow and so beyond explaining the difference in the of work I don't know why I keep going out there um here's what I did to facilitate maker time because manager time kind of always happens so here are the maker habits that I have so one is I decide the one project I need to work on that's most important and yes it can be the same thing for a while I woke up at 4:00 a. I worked until 9:00 a.m. on that work 5 hours that's how I work I turned off all my notifications I have a dark room my office now still has no windows um no sound earplugs I keep it very very simple I want to put everything out of my world besides the work and I realize that there are no emergencies so this is something that for all entrepreneurs we have to understand is that there are no emergencies there's 911 someone's dying in which case call them not me and then there's the emergency that your business isn't going to grow for the third year in a row which you need to solve now which also means going to bed at the same time every single night is a habit that served me very well and that also includes weekend I just and if you're like how do I do that I always go to sleep late just wake up early once and be tired that's how it works it's my brilliant idea treat weekends and weekdays the same and realize that drinking cost you two days the day you drink and the day you recover and some makers work late at night after their kids have gone to sleep anyone here who have that is that your time slot for making okay cool it doesn't matter what your time slot is as long as you make time for it just find the four to five hours that you can turn everything off and working weekends is also a hack that you can move forward it's 104 days a year the amount of entrepreneurs that're like I take weekends off like 104 days of uninterrupted time okay got it understood well I'd love to compete against you anyways so those are some of the habits that help me find time to do the things that matter most the second is buying time so let's talk about that so you are the most valuable person in your business you produce the most most value for the company and if you had a star employee You' want to maximize their ever weeking moment right if you've got everybody here have some person you're like man I just want to clear the way for them I just want them to just keep working working working okay and we often do this with our teams right we try and Empower them we try and clear their calendars trying to give them help but we don't do this for ourselves and so there's the myth of work life and personal life you know integration or whatever and this isn't that talk believe me I don't care about that talk what I mean is that we all have one battery and the problem with your spouse and your kids and your chores and your employees is they all drain from the same source and so you become more productive by eliminating the things that make you unproductive more than you have some pomodora time hack and like this is what I really want to have syn in you will become more productive through elimination than by adding optimization just by taking away all the things that are not the things that grow the business and so I also bring this up because no one ever sticks with that stuff anyways we all see the Tik Tock hack of like put a timer and then take a walk or like no one does it no one does it no one doesn't so let's let's just forget about it why bother but cutting things out they are permanent reductions and energy drainage that you can reallocate to making more money doing the stuff that matters and so if we all have 24 hours a day someone who works on the most important stuff for 16 hours six days a week is going to move way faster than someone who's who does it three hours per week in real real work time some of you guys if you look back on your last week you're like how much real maker time did I make for myself to work on the stuff that grows the business many times if you're really honest with yourself it's like four hours and so there's a reason that someone could actually move 30 times faster than you and that's the difference if you're doing three hours of productive or 96 productive hours it's just the math and so it's not even close that's how you move 30 times faster than somebody else even though both people work all day and so hopefully they convince you about how important this is and maybe why other people you know move faster than you and so let's get really tactical the average American spends 50 hours per month on food groceries eating prepping cleaning the replacement cost for that is $800 a month the average American spends 25 hours per month cleaning their home the replac cost for that is $500 a month the average American spend 16 hours per month doing laundry washing drying folding organizing dry cleaning driving to laundromat $200 a month to replace that which means that for $1,500 a month you can get 96 hours per month back that's two full work weeks every single month and that means that if you can make more than $15 per hour with your time you should make that trade seven days a week twice on Sunday and once for your mom and this is very much a form of reinvesting in yourself but you have to use the time that you buy to work to make even more so this isn't the I will spend $1,500 a month and then I will get 96 hours back and I will watch 96 more hours of Netflix this is not that plan and I bring this up amazed at how many people feel like they're being irresponsible by spending this money like the amount of entrepreneurs that I talk to that are like that will happily hire somebody for $50,000 a year and are unwilling to think about the idea of spending $1500 a month on things that make them feel fancy or frilly or like exess expenses is ridiculous I'll say that is silly but if you could spend $1,500 a month on your most valuable employee forget about you for a second you're most valuable employee to have 50% more out of them wouldn't you do that every day of the week and twice on Sunday of course but you are that more valuable employee you are that person in the business by far not even close it's you and I didn't even get into into the free 40 hours a week that people spend all right so following sports teams four hours a week replacement cost of not following sports teams zero dollar watching TV 21 hours a week on average replacement M literally nothing scrolling social media 17 hours a week also literally nothing driving to and from work and refilling gas four and a half hours a week replacement cost is $700 a month for Uber you have somebody else drive you I tweet on my way to work and I tweet on my way back where I get my content and for $1,500 a month you can still do those fun things so I'm not even I'm not even taking those out because you're not going to do it anyways you're still going to watch TV you're still going to you're still GNA scroll social media you're gonna do all that stuff not even gonna try you can still that stuff and spend $1,500 a month and get 96 hours a month back and so I want to be clear this is a one-time investment you will never get this back I can't resend the $1,500 and get another 96 hours back you only get to pull this trigger once and I'm still amazed at the businesses that are doing 50 100 $500,000 a month and they still are analyzing this bill as something that they have even hesitated to spend money on because of whatever narrative they have around why it's good to clean your own laundry or cook your own food now sure if you like cooking and it's recreational then fine but you and I both know that's not what we're talking about it's lunch on Tuesday that's what I'm talking about and so there are so few things that you can spend $1,500 a month on getting 96 hours per month back and you can only pull the trigger once and so this advice is so simple and yet when I see rooms like this with the same problems again and again and again I had to make this incredibly obvious presentation because the only thing that's easier than doing this is not doing it which is what most of you will probably do is you will nod and you will think about it and then you will do nothing and you will still cook your [ __ ] food and you will still drive yourself to work and you will still still clean your house you're like well I like my clothes folded a certain way who cares like is it worth the business not growing by 50% this year and somehow those of you who do nothing will be amazed while you're later you're still in the exact same position while someone else who took these simple steps 30X their output and this is how you can actually do your day job as the manager while also giving yourself the time to do what matters most as a maker those 96 hours you can take those four hours a day and it's there that's just from the stats that's not just me like that's it's right there you can have it and so this trading up for time is buying time and it it it's less valuable work that you trade money for for more free time to do more valuable work that you then trade to get more money and you just never stop this NE this whole process never ends and so bringing this all together that's the stuff that actually grows your business if you work on the right stuff your business will grow like getting more customers making them worth more and if you want to do as much and you want to do as much of that as you can to grow your business as fast as you can and make sure your day looks like this not like that and to do that in the real world you eliminate everything else that's not that which you do by understanding and explaining the differ between maker and manager yourself and your teams and giving yourself time every single day to decide the project that matters most wake up a little bit earlier turn off your notifications get a zone that you can actually work investing your most valuable employee by eliminating 96 hours per month of work for $1,500 a month so that you can actually work not to 2X or Forex more effective let me say that again so you can work not just two or four times more effective than your competition but 30 times more effective than them because they're like you super distracted have their notifications turned on are taking calls in the middle of the day and they too are only working three hours or productive hours a week and you can absolutely murder them in their sleep by how much you crush them in business if you actually spend the time to do the things that matter which almost no one does and it's crazy because I spend all this time making all this business content about LTV to C ratios and decrease inur and make sure your onboarding is on board is streamlined people are like I don't have the time find the [ __ ] time buy it it's right there it's for sale and so you maximize your time and actually work on the things that matter which everyone else would then wonder when you actually do this how does he move so fast how does she move so fast but you will know the secret is that there is no secret you have one battery and you just try and eliminate as many drains as you can that aren't aligned with your goal and that's how you can compress multiple lifetimes of growth into one thank you any questions on this is this uh was there was there anything that was unclear about that presentation go for it what time do you go to sleep uh so I get in bed at 9: I go to sleep by 10: you get up 4 uh I'm probably up well today I was up at four but like most of the times I'm up by like five yeah 10 to fives works fine I like I've haven't had an alarm in like five seven years I a long time um I'm a big fan so I probably should add this is that I think you should have a sleep alarm not a wake up alarm I mean I sleep as long as you can because like if I don't know about you but like if I get nine hours of sleep I'm like I can cure cancer today like like I I so rarely get nine like if I get seven you know I'm I'm fine but nine like I I literally look at Lea I'm like give me the hardest problems today like like I'll just sit in in discomfort go for it manag time sure yeah so I think okay so the question was um is it okay to make your goal eliminating manager time um I see it as a Continuum rather than an absolute or a binary so it's not like I am 100% maker or I'm 100% manager I think it's just how much of that so like Leela's calendar is flipped from mine so I have four days a week of maker time and one manager day on Mondays which I just stack the living hell out of I'm just like just I just tell the team I was like just destroy me just just put everything in there I expect to accomplish nothing and I will just make all the decisions and talk to everybody about all the stuff the other four days I work on things that I think matter most and I also work the weekends her schedule is more like this where she has four days a week where she has their manager time in one day a week that's maker time she also spends the weeker do week ends doing maker stuff and so that's kind of how she balances it um because Lea actually runs everything in the business I take credit for running everything in the business that's kind of our division uh it's worked well for us for years yeah so recommend yeah shoot how much time you spend on I just tweeted about this like 10 minutes ago which is great yeah so how much time do I spend on Fitness stuff in general so my big advice is get in shape between 18 and 24 and then after that the maintenance of being in shape it takes like 10% of your time which I was alluding to in the presentation and so it takes me very little time to maintain this um but I now have a gym downstairs and so it's super super easy uh but you know I work out when I can I usually probably work out three four days a week and it's just downstairs and I do it in the morning or I do in the afternoon keep the relationship not turn off make it more of a business relation so how do we I'm repeating it because no one has a mic just so you know um so how do we manag being married and being co-managers of the business always talking about the business oh so we always talk about business I think what we don't do is Judge ourselves for talking about business I think more people get stressed about what they think they should be doing rather than just being like this is our relationship these are our rules which we make and we don't think they exist it's worked fine so far if one of us wasn't into business it would suck it's all I want to talk about shoot this is this is [ __ ] awesome so the question was do I have uh do I have fun outside of of work um the majority of my fun is in work uh but I take like one or two vacations a year that are like three or four days um and we try to do it with friends of ours because most of the friends that we have don't live where we live and so most the friends that we have not most all the friends that we have are all pretty high level entrepreneurs and they're really busy too and so we try and have you know company there while we can all talk about business and talk about you know what we're excited about and that's what works for us you know there the first I think three years of our marriage we didn't take any I mean we didn't take we didn't do a honeymoon we work the day we got married we work the next day um we're like we but we do us though and so I don't like I don't for every like I don't see this as prescription we just do we just do what we want to do um and so I always hesitate with those those questions because people take it as gospel and I just like we really really spend a long time trying to not care about what anyone else thinks about what we do okay yeah so how often do I review what the constraint is in the business your business constraint doesn't change that often once you get it right and so once you know it's like okay I need to advertise more you just keep doing that until you break something else and sometimes you can do that for a very very very very very long time and the constraint then goes one is chunked down so it's like we need to okay so it's like you're advertising and you're running ads but you're like I need a second channel so you're still like the the bigger constraint is still the same I need more leads but you need to have the constraint of like I need to solve this next acquisition Channel and so it'll it'll move against the larger constraint of the business but finally all the constraints are going to chunk up to I need to get more customers I need make them worth more and I might need to make them more so that I can get more customers and so those will oscillate back and forth um on the business the big thing that will matter is kind of benchmarks is understanding like I think we were talking earlier when the guys were there with the med spa um he had a LTV issue he didn't have a leads issue and so it's making sure that we're solving the right problem and I see a lot of business owners really obsessing trying to drive down lead costs and I find it to be more easy to just fix the sales process and add a zero to your price and then all of a sudden all your lead problems go away and so it's it's I try and find the easiest way to solve problems which often times isn't the thing that's immediately apparent so I'll tell you I'll tell you a fun a fun so we have so the book launch is g to come up at some point um and so I was thinking about some of the goodies that I was going to be giving away and one of the goodies I had was like like legit like 400 more hours of work and so I started the project and I stopped after an hour and I was like okay can I use my second brain cell here and think of something else that I can give away that's more valuable than this that doesn't take me 400 hours and it took me like an hour to think of something else that was better and took less time and so I think sometimes like the the pendulum swing on the other side of this is if you have tremendous work ethic then sometimes you want to solve problems the hard way but there's like this is something that I feel like I've found more and more as I've like gotten doggy years aged in business is like like there's usually a more elegant solution if you just take a second and you're like and I like asking hypotheticals of like what would it take two or if I had to make something more valuable in a tenth of the time what would I do if someone 10 times smarter than me had the same problem what would they do and like cycling through those frames helped me attack the problem differently and that that helps me a lot like I use those frames a lot when I'm trying to solve things guys I appreciate you all hope you enjoyed the uh the Youtube video thank you much appreciate you