How To Make Faster And Better Business Decisions
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Summary
When I look at the best companies, the founders and CEOs of the companies that I coach that are growing the fastest, making the most money, and keeping the customers around the longest, their superpower is making fast decisions. Today I want to share with you the mindset behind making faster decisions.
Transcript
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you will drag your feet you will see opportunity somebody will email you and say hey i want to be
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your partner and i want to promote i've got 100 customers ready for you to go and you're going to
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be slow to respond today i want to talk about how to avoid missed opportunities literally the amount
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of times that people drag their feet avoid hiring great people are too slow to make a decision to
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potentially buy a company get extra supplies like literally these opportunities that could be
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transformational in their business caused by lack of decision making not even that the opportunity
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wasn't there for them to take advantage of it is that they couldn't make the decision that fast
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enough to capitalize on that. So I want to share with you today the mindset behind making faster
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decisions. When I look at the best companies that I coach, when I look at the founders and the CEOs
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of the companies that I coach that are growing the fastest, making the most money, keeping the
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customers around the longest, their superpower is making fast decisions. I don't know if you knew
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this, but Jeff Bezos has a framework called type one and type two decisions. Okay. And I want to
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share that, share it with you. And then also talk to you about the mindset side behind why you might
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have this reluctance or this fear or concern around making certain types of decisions and how to kind
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of work through them. But Jeff Bezos's model of type one versus type two is I think best explained
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through an example okay or an analogy so the analogy is that there are decisions that are
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type one decisions which is a one-way door okay like a door that opens and you walk through and
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they're kind of like a turn gate on the subway system in new york city when you go through that
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that that turn gate it's a one way you can't work back you put the token in you swipe your card and
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you walk through the gate that's a one-way decision that's a type one decision type two decisions are
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where it's a revolving door where you can walk into the building and out the building. That's
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a type two decision. The challenge is a lot of CEOs, entrepreneurs, and even executive leaders,
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they're making type one decisions or type two decisions with type one discipline and discernment
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and analysis paralysis. They're literally making decisions that could easily be backed out of.
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for example if you hire the wrong person hiring the wrong person is a type two decision it yes
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it sucks yes you go through all this pain you hire somebody they don't work out and you let them go
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but it's not a type one type one decisions are things like buying a company i would say type
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one decisions is setting salary thresholds uh for a team member i don't know if you've ever tried to
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do a pay cut on somebody but you know i had somebody recently asked in one of my groups they
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said uh you know um i'm having an issue with an employee they're not working out really well
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um you know i'm thinking they're not performing the way they said and and it's really affecting
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culture so i'm thinking of of right sizing their salary going from here to here and i kind of
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laughed i said if you know if you think their performance isn't going well you check it out
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after you give them a pay cut like it just hardly ever works so setting salaries is a type one
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decision. Um, you know, strategic product initiatives where you're going to go down,
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you're going to add this new module, or you're going to decide to expand. Like those are not
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type two decisions where you can back out of understanding the difference and the level of
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scrutiny you bring to each one, uh, will help you move faster. Okay. So a few mindset beliefs I want
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to share with you in regards to making faster decisions. Number one is what does the word fear
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even means as most people are are scared to pull the trigger out of fear here's what i've discovered
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a long time ago it stands for it's an acronym and it stands for false evidence appearing real
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often people's fear around making a decision is based on a belief that just simply isn't true
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for example you uh may want to start a business and you're worried that if you start a business
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that you might lose everything you've built up to that point in your life and there's no facts
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to support that. Sure if you grab all of your personal savings and get a line of credit on your
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home and borrow money from your family and put it all in on day one into a business yeah you probably
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could lose it all but nobody's asking you to do that. Nobody's asking you to make that kind of
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risky decision. Most people start businesses just side hustle a little bit revenue a little bit they
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just do a little bit so like a lot of people make these assumptions false evidence appearing real
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like there's just no evidence to support the assumption right or um they're worried that if
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they like pick up the phone to ask for a favor from somebody that they don't know the person's
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going to scream in their face and think they're the worst human being in the world my question
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to them often is has that ever happened okay maybe it has maybe it happened once did it happen 10
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times in a row from 10 different people if the answer is no then you have this this belief of
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appearing real of this false evidence appearing real that just isn't isn't based on facts so
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that's that's number one the mindset of understanding what fear stands for I think is
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really important number two is understanding the downside and the upside of making a decision
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so the way I think about it is when I'm making decisions I'm always asking myself what's the
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potential downside around this? Like worst case scenario. And then what's the upside? And I'm
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always looking for, it's similar to type one, type two decisions. I'm always looking for a
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disproportionate upside to the downside. So for example, if I'm going to buy a company, which is
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a type one decision, it's not easy to get back out of. But if I buy the right company or a real
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estate project, maybe you're thinking of doing some real estate. Maybe it's sending your kid to
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a new school I don't know maybe it's deciding to travel remotely for the next 12 months because
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you can you know so what's the downside okay so downside is if I buy this company it may not work
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out the way I think it so I want to do all this stuff okay worst case I could probably sell it
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for this amount of money maybe you know you you're the the downside is you could sell it for what you
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paid for it the upside is this thing could make you two three times your money over the next three
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to five years that's the downside that's the upside the way i like to think about it is always
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ask yourself what's the downside upside and then can you live with the downside can you live with
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the so most people don't understand that so they'll make investments in bitcoin now the
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probability of bitcoin for example going to zero is very low but the probability of it losing half
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of its value in the next month is high so can you live with that downside if the answer is no don't
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do the deal don't make the decision if you fast forward probability and say this is downside this
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is the upside i could live with the upside because that's amazing but i can't live with the downside
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then don't do it that's number two number three is the idea of i have a lot of clients that you
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know for whatever reason at every level of growth in business there's typically money mindset
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beliefs that come out and you know especially around hiring people salaries um you know growth
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And what I say to them often is create the parameter
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and the structure and then give it to somebody else.
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you know, investing in marketing is tough for you.
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no longer a mental gymnastic exercise that you have to do you've given it to somebody else now
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you can create some structure and parameters and say hey I'm going to monitor the investment versus
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the return but if those things are true I'm just going to let you to continue to invest
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I see this happen often for business owners that have a marketing department and a sales department
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but they're the person that runs both departments right or marketing sales and delivery right if you
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are the entrepreneur and you are involved in all three of those here's what will happen you won't
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go and do marketing because the more marketing you do means the more calls you're going to have
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to get on that's sales and the more selling you have to do the more delivery you're going to be
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responsible on the fulfillment side so if you are the same person that has to do marketing to get
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your calendar busy to then get even busier doing fulfillment you will not make those decisions okay
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hey, I wanna be your partner and I wanna promote.
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Just that simple concept alone will allow you to grow.
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But if you're responsible for all three of those
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So there was this great exercise I got from a friend of mine.
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I think he got it from an individual named Jeff Spencer,
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was when I feel alive, I, and what are the things you do?
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So essentially the activities that make you feel alive,
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And make sure that these things are not you doing them.
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Because the decision fatigue, the decisions fear,
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the decision whatever anxiety is going to show up so those are the three big mindset sides number
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one if you can just look at every decision you got to make through the type one versus type two
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decision matrix that will help because you can always walk back from a type two decision
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it'll allow you to increase the velocity of your decision making which is going to increase the
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growth of your business and just understand that fear is false evidence appearing real that
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if you analyze the downside you can live with it then make the decision if the upside is
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there and then finally take the things that they make you feel threatening give them to other people
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to make decisions so that they can push those areas of your life and your business forward
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and that is how we can really accelerate your decision making process if you want to learn more
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about the mindset side of how i approach my day and my communication and the way i set the vision
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i want you to click the link below and check out my future living training it's essentially the way
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I live six months into the future so that I can bring that energy into my day today you know a
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lot of people follow me on social media recently I posted on my Instagram live we don't manage time
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we manage emotions this framework so you can click the link below to get access to that this is how
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I manage my emotions by future living if you can live in the future six months bring that back and
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There's a whole framework for how to do that right.
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That is where all of a sudden you're not managing time,
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that will get you the results that you're looking for.
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and I'm looking forward to hearing how it all works.