Dan Martell - How To Make Faster And Better Business Decisions

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 0.99

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

Dan Martell - November 29, 2021

How To Make Faster And Better Business Decisions

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