Every Level of Success: Which One Are You Stuck In?
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Summary
When we think of entrepreneurs, we often think of working 100 hours a week and having no time for our family. But as I climbed the ladder of success and met billionaires along the way, I learned something simple: top level entrepreneurs run their businesses in completely different ways, making way more money by working way less hours. And if you don t master every level, you'll be stuck in the hamster wheel of entrepreneurship, never getting the freedom you started the business for in the first place.
Transcript
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When we think of entrepreneurs, we often think of working 100 hours a week and having no time
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for our family. But as I climbed the ladder of success and I met billionaires along the way,
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I learned something simple. Top level entrepreneurs run their businesses in
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completely different ways, making way more money by working way less hours. And if you don't master
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every level, you'll be stuck in the hamster wheel of entrepreneurship, never getting the freedom
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you started the business for in the first place. So I'm going to show you what it looks like to
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run a business at every level and how to adapt to each one. Level one, 100K to 300K, this is what I
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call the hustler. So at this level, you sell your time. Your goal is to prove to other people that
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you can deliver value. It's the proof, not the polish. So there's two signs that you're stuck
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at this level. The first one is you're doing everything. Everybody wishes it wasn't that way,
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but guess what? That's where we all start. We have to do everything. The other thing is we're selling
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our time. Meaning that when people buy from us, we're the ones that are doing the work. That's
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why we call it the hustler. Here's a very clear framework to help you level up to the next stage.
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I call it the scaling credo. The whole point is to focus, which stands for follow one course until
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successful, which means we have to pick one target customer, sometimes called an ICP, an ideal
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customer profile. Pick one customer that has the pain that your product can solve. The second is
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one product. Don't sell 14 offers, sell one offer. The third is one conversion tool, one way of
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selling. Most of the time at this level, it's you getting on a phone and talking to the buyer and
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communicating the value that your product solves and getting good at communication, getting good
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at sales. That is a meta skill you're going to take to the next levels. The fourth is one channel,
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one way to get awareness, one way to create marketing and just stick with it. The fifth
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Part of the scaling credo is to do all those four
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I dare you to focus for one year on four things
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If you do that, you'll get to a million in revenue.
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where you're talking to your camera as stories.
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It's gonna teach you to get better at communicating.
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five times a day, where you either message somebody
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Force yourself to do enough reps to get to a point
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where you're making an offer for your service every day.
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A few years ago, I was coaching this freelancer
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So now that you know how to handle the boring stuff,
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At this level, you're essentially getting full of work.
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The marketing's working, the demand's coming in,
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The challenge is, is that you're now the bottleneck.
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So you hire a line cook and a server first
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I remember one time I was chatting with this woman, Sarah,
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in my DMs on Instagram and she had a design shop
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She's freaking out saying, Dan, I need some help.
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So what I suggested, and I teach this in my book,
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Essentially in 30 days of her working through her EA,
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here's the exact frameworks you need to get your time back.
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And it is a simple but crazy powerful strategy.
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And I kind of use that audit to find the bucket of things
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which is I audit my calendar to find that bucket,
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then I hire somebody, now I gotta transfer it to them.
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The best way to do this is called the camcorder method.
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Whatever work you wanna give to somebody else to transfer,
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That way when they join, the first week they're with you
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and creating the SOP that you don't have to create
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because you've already documented it in the videos.
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Once that is filled, then you wanna upgrade your skills,
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And the second framework is called the 1080-10 rule.
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When I sit down with somebody and I'm working on a project,
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like right now I'm working on a really cool car project,
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I'm gonna then go to the 80%, which is execution.
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That's where I get to refine things and tweak things.
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80% done by somebody else is a hundred percent awesome.
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the non-negotiable first hire is an executive assistant.
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is kind of playing entrepreneurship on hard mode.
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And look, I get a lot of people don't even know
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because sometimes those emails don't go directly to you.
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because if you don't value your time, no one else will.
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Now we need a simple system to stop all the fires.
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And what we need to do, and this word, nobody likes it,
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Here's some signs that you might be stuck at this level.
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You have a strong business, but it feels crazy chaotic.
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that these kinds of problems at this level are abnormal.
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That's why I like to use like a laundromat example,
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I go to a laundromat, clothes goes in, it washes,
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he was just trying to do the best thing for the customer.
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Problem is, there was no repeatability with it.
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let's just create a simple path for every new customer.
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cut churn in half, and he was able to raise his rates
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by 20%, making the business a lot more fun to own.
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to the degree I can communicate the specificity
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You gotta outline the process, the sequence of actions.
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Now I know for a lot of creators, this is not fun,
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But if you wanna grow, you have to have system.
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System stands for save yourself time, energy, money,
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Without a system, nobody else can do the thing,
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that they follow in the checklist, that system,
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dry it, and fold it properly as per your standards,
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Establishing the quality expectation or rules or principles,
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If you don't, we're gonna ask whose plate that was,
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and we're informing them that they've lost the privilege
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having them continue to leave their stuff in the sink,
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Without the scorecard, there's no way for somebody to know
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if the work they're doing is at the level you want.
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and also a quality metric so that they're doing it
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at a level that's gonna make you feel confidence
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At this level, this is where you hire someone for delivery
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But if you're like me and you don't wanna stop there,
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don't, we need to really dial in to get to the next level.
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You start making bets that you know are gonna work out.
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And you can start to see how the whole thing works
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and said, what are you gonna do to invest in your business
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then you're stuck here, because that's gambling.
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that's got two engines and one fails, you can still fly.
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It's kind of like one of my private coaching clients.
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Problem was, if he had any issues with the ads,
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All we did is said, hey, let's go take some of that content
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your buyers are already asking on your sales calls.
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He had several, which made the revenue more predictable
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because it took all the anomalies and smoothed them out.
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So an easy framework for you to do this yourself
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We need to create a simple way for you to create content
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where you're teaching, essentially educating your market
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that same content becomes training for your internal team.
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giving them a thing that gets them a quick result,
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is essentially working with somebody that can sell you leads
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The whole process is following a service-based approach,
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meaning I'm just here to see if you have a problem.
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And then what happens is you just pay them a fee
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for every new customer that comes from the referral.
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and can allow you to go from three to 10 million in months.
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Essentially somebody that comes in is responsible
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for all the campaigns and the traffic to your website.
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and those conversions keep happening day over day
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All your focus at this stage is on sales and leadership.
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And that's where I always say, hope isn't a growth strategy.
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When I think of growth, it just exposes all the cracks.
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At this level, the business can no longer be you.
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That's why we have to install weekly and quarterly rhythms.
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At this stage, you become the real chief executive officer,
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If I'm building a building, my job is to be the architect.
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They set the plan with you and inspect what you expect.
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that's gonna keep you stuck from moving forward.
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The other thing is, and this is the worst for entrepreneurs,
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the other day and he told me he approves every expense.
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I said, hey, first off, do you have a financial leader?
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How about you ask them to work with each department
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to create a budget, a structure for them spending money,
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with that framework, then you can empower them.
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And all of a sudden, revenue grew by 40% in nine months
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and he took his first real vacation with his family.
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Everybody on any of my teams have permission to spend $50
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they just get expensive. All I ask is that they tell their leader. That way there's somebody in
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the loop that knows there was a problem and it actually is a feedback loop for the leader to go
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fix that problem. Managers can spend up to $500. Directors up to $5,000. Executive C-level people
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up to $50,000 without needing my approval. You can pick your budgets. That strategy is going to
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empower your leaders and you're going to start to learn how to work through them. If you want to
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level this up. There's a second part to this. It's called leadership rhythms. Most businesses don't
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have a rhythm for meetings. When it comes to leadership rhythms, these are the meetings. One,
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a daily 15-minute stand-up. Simple format. What are the three things you did yesterday? What are
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the three things you're committing to do today? Are you stuck? The leader then spends the rest
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of the day getting his team unstuck. Every week, I call it a weekly sync, a 60-minute meeting per
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team and for the company with the leaders where you review their scorecard, their key projects,
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talk about the 10-year vision, the five-year vision,
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it's one of those things that I can't imagine not doing
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And you're definitely gonna be stuck way below 30 million
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If every road leads to you, you're the traffic jam.
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At this stage, you're no longer just running a business.
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You're running a real company with professional standards,
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and cash discipline that keeps you safe in storms.
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So some of the signs that you haven't done the right things
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Here's my question, do they make your life easier?
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And the other part is every decision is data informed.
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you're gonna be able to go from 30 to 50 million.
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but we're already on pace to create a billion dollars
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but they weren't as strong as they needed to be.
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somebody that had experience managing multiple companies
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That person came in and immediately found opportunities,
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things we were spending money on that we shouldn't,
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So the framework to level up are called the three P's, okay?
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And you need all three to become the professional.
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We hire leaders, we develop leaders, we retain leaders.
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He says it's easy to hire people and tell them what to do.
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is to tell me what they're gonna do in the first 90 days.
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We need to document and create repeatable systems
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You have to look at your cost to acquire a customer,
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And on that, sell things that have high gross margin.
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just search Dan Martell and like how to grow your business
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If you don't have a system for negotiating things
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My favorite part about this is that when you implement these,
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everyone gets a scorecard and clarity kills drama.
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So one of the philosophies I like to think about
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So if I tolerate people doing scorecards, the business grows.
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If I tolerate people giving me excuses, the excuses grows.
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So raise your standard and stop tolerating sh**
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that's not gonna allow you to grow your business.
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So now that you've got the people, the playbooks
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and the profit in place, it's time to level up again.
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The job of an architect is to look around the corner,
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18 months and anticipate how the ground is shifting. COVID's happening, deal with it.
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Government changes, deal with it. So some of the signs that you're stuck at this stage is that all
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your conversations were short-term. I want to talk about next year. I want to talk about sequencing
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because sequence equals success. And you need to build these moats around your business to separate
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and make it hard for your competitors to attack you. You know, I remember almost a decade ago,
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I had the privilege of being invited to spend a week with Richard Branson and I just wanted to
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study how does the billionaire that every other billionaire in the world wants to be like operate
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and I asked him the question when it comes to business what's the most important thing and he
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said it all comes down to brand I'll be honest with you I didn't get it I was like not operating
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at that level of consciousness when he said that and I kind of dismissed it three years ago I
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revisited his answer because it occurred to me that everything I wanted to accomplish would
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I wanna give you a framework to give you three key motes
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that's gonna help you crack that nine figures in revenue.
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that makes your customers choose you by default.
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The way to create a brand is through associations,
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people you partner with, your employees you hire,
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campaigns you run, the quality of your products,
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Like real brands get to a place where the market
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talks about the businesses and the brands every day.
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But without strategic focus, you don't have a brand,
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Oftentimes you hear people talk about relationships,
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and they'll say that your network is your net worth.
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I know a lot of people, they know a lot of people,
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are potential partners in the future, co-founders,
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But for you to just sit back and not invest in it
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like Amazon recommendations or Google search data
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It built all of that technology on top of information.
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Every business today is sitting on a body of knowledge
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would be a massive moat to compete against their competitors.
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Because remember, moats beat moves every single time.
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Now you realize that you can accomplish anything
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That's what allows you to grow to a hundred million plus.
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20 years ago, one of my mentors said this to me.
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Every day I have one needle moving decision to be made.
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And every night I'm home by dinner with my family.
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He wins by picking the right people in the right problems.
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His calendar is open, so he has the time to double-click
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the most powerful thing he can do every day is play.
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So these are the signs that you're playing at this level.
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people are reaching out to you to work for you.
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Your job is to just ask people to lift their chins up
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to then get you ready for the new level of growth,
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you reaching out to people, building relationships,
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going and recruiting those mentors for your team,
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You're not just operating a business within budgets.
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so that that compounds and grows within your zone of genius.
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with your leaders, with your customers, with your employees.
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And the third is you wanna hold that 100% of the time.
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it means you've built the machine that builds the machine.
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to help you break through so that you continue to evolve.
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what I call admins, your most important next step.
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You leave that comment below, that gets you in motion.
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Again, if you feel like you're overwhelmed right now,
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you probably need to get an executive assistant.
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So click the link below to download my internal playbook
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Just click the link in the description and get your copy.
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is because I believe starting a business is about freedom.
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And look, if you wanna learn the 30 brutal truths
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click the video and I'll see you on the other side.