Dan Martell - November 29, 2021


How To Make Faster And Better Business Decisions


Episode Stats

Length

12 minutes

Words per Minute

189.07664

Word Count

2,346

Sentence Count

56


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

Transcript

Transcript generated with Whisper (turbo).
00:00:00.080 you will drag your feet you will see opportunity somebody will email you and say hey i want to be
00:00:04.640 your partner and i want to promote i've got 100 customers ready for you to go and you're going to
00:00:08.880 be slow to respond today i want to talk about how to avoid missed opportunities literally the amount
00:00:26.960 of times that people drag their feet avoid hiring great people are too slow to make a decision to
00:00:33.760 potentially buy a company get extra supplies like literally these opportunities that could be
00:00:40.240 transformational in their business caused by lack of decision making not even that the opportunity
00:00:46.880 wasn't there for them to take advantage of it is that they couldn't make the decision that fast
00:00:50.880 enough to capitalize on that. So I want to share with you today the mindset behind making faster
00:01:00.260 decisions. When I look at the best companies that I coach, when I look at the founders and the CEOs
00:01:07.700 of the companies that I coach that are growing the fastest, making the most money, keeping the
00:01:13.320 customers around the longest, their superpower is making fast decisions. I don't know if you knew
00:01:19.400 this, but Jeff Bezos has a framework called type one and type two decisions. Okay. And I want to
00:01:25.760 share that, share it with you. And then also talk to you about the mindset side behind why you might
00:01:31.060 have this reluctance or this fear or concern around making certain types of decisions and how to kind
00:01:37.720 of work through them. But Jeff Bezos's model of type one versus type two is I think best explained
00:01:43.060 through an example okay or an analogy so the analogy is that there are decisions that are
00:01:49.780 type one decisions which is a one-way door okay like a door that opens and you walk through and
00:01:54.680 they're kind of like a turn gate on the subway system in new york city when you go through that
00:01:59.300 that that turn gate it's a one way you can't work back you put the token in you swipe your card and
00:02:05.920 you walk through the gate that's a one-way decision that's a type one decision type two decisions are
00:02:11.260 where it's a revolving door where you can walk into the building and out the building. That's
00:02:17.880 a type two decision. The challenge is a lot of CEOs, entrepreneurs, and even executive leaders,
00:02:25.600 they're making type one decisions or type two decisions with type one discipline and discernment
00:02:33.500 and analysis paralysis. They're literally making decisions that could easily be backed out of.
00:02:39.940 for example if you hire the wrong person hiring the wrong person is a type two decision it yes
00:02:46.220 it sucks yes you go through all this pain you hire somebody they don't work out and you let them go
00:02:50.380 but it's not a type one type one decisions are things like buying a company i would say type
00:02:57.020 one decisions is setting salary thresholds uh for a team member i don't know if you've ever tried to
00:03:02.760 do a pay cut on somebody but you know i had somebody recently asked in one of my groups they
00:03:07.600 said uh you know um i'm having an issue with an employee they're not working out really well
00:03:12.740 um you know i'm thinking they're not performing the way they said and and it's really affecting
00:03:17.960 culture so i'm thinking of of right sizing their salary going from here to here and i kind of
00:03:22.880 laughed i said if you know if you think their performance isn't going well you check it out
00:03:27.340 after you give them a pay cut like it just hardly ever works so setting salaries is a type one
00:03:32.440 decision. Um, you know, strategic product initiatives where you're going to go down,
00:03:37.900 you're going to add this new module, or you're going to decide to expand. Like those are not
00:03:42.120 type two decisions where you can back out of understanding the difference and the level of
00:03:47.220 scrutiny you bring to each one, uh, will help you move faster. Okay. So a few mindset beliefs I want
00:03:52.980 to share with you in regards to making faster decisions. Number one is what does the word fear
00:03:58.560 even means as most people are are scared to pull the trigger out of fear here's what i've discovered
00:04:04.180 a long time ago it stands for it's an acronym and it stands for false evidence appearing real
00:04:08.520 often people's fear around making a decision is based on a belief that just simply isn't true
00:04:19.520 for example you uh may want to start a business and you're worried that if you start a business
00:04:27.100 that you might lose everything you've built up to that point in your life and there's no facts
00:04:33.120 to support that. Sure if you grab all of your personal savings and get a line of credit on your
00:04:39.180 home and borrow money from your family and put it all in on day one into a business yeah you probably
00:04:45.100 could lose it all but nobody's asking you to do that. Nobody's asking you to make that kind of
00:04:51.560 risky decision. Most people start businesses just side hustle a little bit revenue a little bit they
00:04:56.700 just do a little bit so like a lot of people make these assumptions false evidence appearing real
00:05:00.880 like there's just no evidence to support the assumption right or um they're worried that if
00:05:06.940 they like pick up the phone to ask for a favor from somebody that they don't know the person's
00:05:10.560 going to scream in their face and think they're the worst human being in the world my question
00:05:14.060 to them often is has that ever happened okay maybe it has maybe it happened once did it happen 10
00:05:21.840 times in a row from 10 different people if the answer is no then you have this this belief of
00:05:29.060 appearing real of this false evidence appearing real that just isn't isn't based on facts so
00:05:34.780 that's that's number one the mindset of understanding what fear stands for I think is
00:05:37.760 really important number two is understanding the downside and the upside of making a decision
00:05:42.600 so the way I think about it is when I'm making decisions I'm always asking myself what's the
00:05:49.260 potential downside around this? Like worst case scenario. And then what's the upside? And I'm
00:05:55.460 always looking for, it's similar to type one, type two decisions. I'm always looking for a
00:05:59.420 disproportionate upside to the downside. So for example, if I'm going to buy a company, which is
00:06:05.060 a type one decision, it's not easy to get back out of. But if I buy the right company or a real
00:06:10.980 estate project, maybe you're thinking of doing some real estate. Maybe it's sending your kid to
00:06:16.020 a new school I don't know maybe it's deciding to travel remotely for the next 12 months because
00:06:20.900 you can you know so what's the downside okay so downside is if I buy this company it may not work
00:06:27.240 out the way I think it so I want to do all this stuff okay worst case I could probably sell it
00:06:32.000 for this amount of money maybe you know you you're the the downside is you could sell it for what you
00:06:37.560 paid for it the upside is this thing could make you two three times your money over the next three
00:06:42.040 to five years that's the downside that's the upside the way i like to think about it is always
00:06:47.640 ask yourself what's the downside upside and then can you live with the downside can you live with
00:06:54.240 the so most people don't understand that so they'll make investments in bitcoin now the
00:07:00.440 probability of bitcoin for example going to zero is very low but the probability of it losing half
00:07:05.220 of its value in the next month is high so can you live with that downside if the answer is no don't
00:07:11.480 do the deal don't make the decision if you fast forward probability and say this is downside this
00:07:18.360 is the upside i could live with the upside because that's amazing but i can't live with the downside
00:07:21.960 then don't do it that's number two number three is the idea of i have a lot of clients that you
00:07:29.640 know for whatever reason at every level of growth in business there's typically money mindset
00:07:34.280 beliefs that come out and you know especially around hiring people salaries um you know growth
00:07:41.400 And what I say to them often is create the parameter
00:07:44.820 and the structure and then give it to somebody else.
00:07:46.820 If you know that you have a really hard time,
00:07:48.660 you drag your feet making decisions,
00:07:50.220 you drag your feet hiring people,
00:07:51.980 you know, investing in marketing is tough for you.
00:07:54.720 Take it off your plate.
00:07:56.100 Make it somebody else's responsibility
00:07:57.740 because the moment you make it
00:07:59.900 somebody else's responsibility to drive growth
00:08:02.420 and run marketing, for example,
00:08:05.020 then they will push and they will create
00:08:07.780 and they will drive and it's now
00:08:10.320 no longer a mental gymnastic exercise that you have to do you've given it to somebody else now
00:08:15.060 you can create some structure and parameters and say hey I'm going to monitor the investment versus
00:08:19.080 the return but if those things are true I'm just going to let you to continue to invest
00:08:22.500 I see this happen often for business owners that have a marketing department and a sales department
00:08:30.280 but they're the person that runs both departments right or marketing sales and delivery right if you
00:08:37.260 are the entrepreneur and you are involved in all three of those here's what will happen you won't
00:08:43.000 go and do marketing because the more marketing you do means the more calls you're going to have
00:08:47.060 to get on that's sales and the more selling you have to do the more delivery you're going to be
00:08:52.560 responsible on the fulfillment side so if you are the same person that has to do marketing to get
00:09:00.860 your calendar busy to then get even busier doing fulfillment you will not make those decisions okay
00:09:06.840 You will drag your feet.
00:09:08.400 You will see opportunity.
00:09:09.840 Somebody will email you and say,
00:09:10.980 hey, I wanna be your partner and I wanna promote.
00:09:12.860 I've got 100 customers ready for you to go.
00:09:15.080 And you're gonna be slow to respond.
00:09:17.100 You're not gonna take action.
00:09:18.380 You're not gonna make that decision
00:09:19.780 because you are part of that.
00:09:22.580 So what I always recommend my clients to do
00:09:24.380 is separate the people involved.
00:09:26.580 I want marketing to push as hard as they can.
00:09:28.800 I want sales to push as hard as they can.
00:09:30.320 And I want the fulfillment delivery person
00:09:32.520 to push as hard as they can.
00:09:33.840 And I don't want them throttling each other
00:09:36.120 to slow down the potential growth.
00:09:38.460 Just that simple concept alone will allow you to grow.
00:09:42.240 But if you're responsible for all three of those
00:09:44.060 and you're in the middle
00:09:44.640 and any one of those things growing
00:09:46.280 will create more stress for you,
00:09:47.900 you won't take the right action, okay?
00:09:50.580 So there was this great exercise I got from a friend of mine.
00:09:54.780 I think he got it from an individual named Jeff Spencer,
00:09:58.220 the champion mindset.
00:09:59.420 I may be getting that wrong,
00:10:00.420 but it was a simple question.
00:10:02.120 was when I feel alive, I, and what are the things you do?
00:10:07.000 And then when I feel threatened, I.
00:10:09.720 So these, you know, I feel threatened when I,
00:10:12.180 and then these are the things.
00:10:13.480 So essentially the activities that make you feel alive,
00:10:16.660 make a list of those.
00:10:17.920 The activities that make you feel threatened,
00:10:20.340 make a list of those.
00:10:21.200 And make sure that these things are not you doing them.
00:10:25.020 Because the decision fatigue, the decisions fear,
00:10:28.140 the decision whatever anxiety is going to show up so those are the three big mindset sides number
00:10:35.020 one if you can just look at every decision you got to make through the type one versus type two
00:10:38.640 decision matrix that will help because you can always walk back from a type two decision
00:10:43.080 it'll allow you to increase the velocity of your decision making which is going to increase the
00:10:47.260 growth of your business and just understand that fear is false evidence appearing real that
00:10:52.880 if you analyze the downside you can live with it then make the decision if the upside is
00:10:58.080 there and then finally take the things that they make you feel threatening give them to other people
00:11:03.380 to make decisions so that they can push those areas of your life and your business forward
00:11:07.440 and that is how we can really accelerate your decision making process if you want to learn more
00:11:14.080 about the mindset side of how i approach my day and my communication and the way i set the vision
00:11:20.100 i want you to click the link below and check out my future living training it's essentially the way
00:11:26.180 I live six months into the future so that I can bring that energy into my day today you know a
00:11:32.680 lot of people follow me on social media recently I posted on my Instagram live we don't manage time
00:11:40.100 we manage emotions this framework so you can click the link below to get access to that this is how
00:11:47.060 I manage my emotions by future living if you can live in the future six months bring that back and
00:11:52.460 There's a whole framework for how to do that right.
00:11:55.000 That is where all of a sudden you're not managing time,
00:11:57.880 you're managing emotions.
00:11:59.040 And with the right emotions,
00:12:00.360 you can take better actions
00:12:01.440 that will get you the results that you're looking for.
00:12:03.180 So that is what I got for you today.
00:12:05.320 I hope this video finds you incredibly well
00:12:08.500 and I'm looking forward to hearing how it all works.
00:12:10.540 So leave a comment, let me know
00:12:11.720 what's been the most useful thing you've heard
00:12:14.120 below in the comments and we'll talk soon.
00:12:17.220 Peace, later everybody.
00:12:22.460 You