Key Lessons from a Failed Multi-Business Strategy

Initial Business Journey

• Started Online Fitness Coaching Business: Called the Free Training Project.
  • Flipped to for-profit.
• Opened a Gym: Decided to focus only on one venture initially.
  • The gym grew and led to more gym locations.

Diversification and Overstretching

• Expanding into Multiple Ventures: After success in marketing and sales, diversified into several businesses.
  • Dental agency, chiropractice agency, turnaround business for gyms (flying out to gyms), etc.
• Challenges Faced: CEO of multiple companies, led to a catastrophic overload, personal burnout, and crisis.
  • Had a DUI and head-on collision.
  • Mentor highlighted that lack of decision-making ability can be deadly.

Course Correction

• Breaking Up with Partners: Ended partnerships with various business ventures to regain focus.
  • Dental partner, chiropractor partner, gym partner.
• Refocused on Turnaround Business: Concentrated on a single successful business which then scaled rapidly.
  • Transitioned to licensing and made millions in revenue growth.

The Importance of Focus

• Started New Business 'Prestige': Led to divided attention and slow growth in principal business (gym launch).
• Creation of Ecosystem for Gyms: Ended up with three companies.
  • CEO of Allen, Prestige Labs, and Gym Launch.
  • Led to revenue decline in Prestige Labs and Gym Launch.
• Post Allen Sale: Gym Launch started growing again after selling Allen, leading to a successful company exit.

lessons Learned

• Value of Saying No: Key to maintaining focus and success.
  • Focus means saying no to everything that isn't what you set out to do.
  • It can be scaled in intensity across different domains of life.
  • Elon Musk's example: Protects resources to channel towards own goals.
• Saying No to Good Ideas: Important to say no even to good ideas to focus on the great ones.
  • Justine Musk’s and Steve Jobs’ quotes emphasize the importance of saying no.

Process of Learning Focus

• Bruce Lee's Philosophy: Fear the man who practices one kick 10,000 times rather than someone who practices 10,000 kicks once.
• Examples of Volume vs. Quality: University pottery class analogy where volume led to quality.

Ignorance Debt and Learning the Hard Way

• Definition of Output: Volume times leverage. Output is the amount of stuff you do and what you get from each repetition.
• Ignorance Debt: The cost of learning what it takes to grow a business.
  • Example: Finding and training sales directors by trial and error.
  • Each failed attempt taught valuable lessons.

Real-World Applications

• Turning Down High Revenue Opportunities: Recent billion-dollar opportunities turned down to stay focused on current venture (acquisition.com).
  • Need to avoid the temptation of quick highs from new ventures.
  • Saying no to good opportunities for the sake of long-term success.

Strategy for Success

• Documenting the Journey: Keeping records of lessons learned to recognize patterns and apply playbooks to new situations.
• Playing Out Scenarios: Understanding which business has the highest chance of success and sticking with it.
• Simplifying Decision Making: Asking which problem would you rather have and choosing the business you're better at.
  • Example: Real estate vs. marketing and sales machines.

Closing Notes

• Essential Mindset: Embracing the focus mantra and avoiding failure from distracted pursuits.
  • Protect focus at all costs.
• Conclusion: Winners are those who protect and hone their primary endeavor, saying no to everything else.