Dan Martell - January 09, 2017


How To Measure Your Daily Value Creation Score


Episode Stats


Length

7 minutes

Words per minute

205.3021

Word count

1,554

Sentence count

76

Harmful content

Misogyny

1

sentences flagged


Summary

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

In business, it's hard to understand if you're making progress and see it. Or maybe you spend the whole month getting busy and at the end of the month you look and realize, "what the heck did I do with my time?"

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
00:00:00.080 In business, it's hard to understand if you're making progress and feel it and see it.
00:00:06.480 That's what I want to share today is like how do you actually measure the value you
00:00:09.960 create on a daily basis?
00:00:20.760 How to measure your daily value creation as an entrepreneur.
00:00:24.040 Here's the deal.
00:00:25.040 You get up in the morning.
00:00:26.320 You work.
00:00:27.320 end of the day, you stop, look back and go, what the heck did I do with my time? Or maybe
00:00:32.640 you spend the whole month getting busy and at the end of the month you look and you're
00:00:36.280 like, I didn't hit my numbers, right? Or you're challenged because you don't know what things
00:00:41.420 are actually gonna move the needle for you and your business. The difference between
00:00:43.880 doing work in the business versus on the business. This video is gonna challenge all of your
00:00:48.500 assumptions because I believe that most entrepreneurs are not working in the right way. They don't
00:00:53.380 understand what's the difference between doing the work and actually being an entrepreneur.
00:00:57.220 to be CEO, this is gonna happen in this video.
00:01:00.160 So if you're ready for this, here goes.
00:01:02.420 You know, I learned this framework from a good buddy
00:01:04.120 of mine named Todd Herman, the creator of the 90 day year.
00:01:08.160 Some of you guys may have seen his video and interview
00:01:10.300 that I did with him, if not I'll link it up below.
00:01:12.700 But here's the deal, I was a student of Todd's program.
00:01:15.440 It is one of the most thorough and incredible
00:01:18.940 and detailed programs if you wanna learn how to,
00:01:21.420 and really the name says it all, get a year's work
00:01:25.320 of effort done in 90 day period.
00:01:29.400 And it was in that program that he shared a framework
00:01:31.320 called the Entrepreneurial Scorecard
00:01:32.900 that really shaped my thinking for this framework.
00:01:36.840 Because at the end of the day, what I love about CrossFit,
00:01:39.200 all right, there I owe you guys 20 bucks,
00:01:40.940 I said the word CrossFit, is that you compete every day.
00:01:43.540 So to me, the Entrepreneurial Scorecard that Todd teaches
00:01:46.280 allows you to compete every day against yourself
00:01:48.580 and try to measure that so that you can improve things
00:01:51.280 as you go forward.
00:01:52.520 The first thing you need to understand is the four buckets.
00:01:54.980 There's four distinct buckets of type of work
00:01:58.160 that you're working on, okay?
00:01:59.660 So the first one is actually admin work.
00:02:01.820 It's supportive work.
00:02:03.020 It's things that need to get done
00:02:04.660 that actually doesn't add value for the client
00:02:06.920 like travel schedule, processing emails, writing copy.
00:02:10.900 Like they're just, it's just work.
00:02:12.560 It's things that are administrative in nature.
00:02:16.040 So that's the first bucket.
00:02:17.100 The second bucket is doing the work for the client, right?
00:02:20.880 Like really saying if I'm a programmer, I program.
00:02:23.280 If you design, you design.
00:02:24.580 if you create programs, or whatever it is,
00:02:28.080 that is the work aspect of the business.
00:02:30.380 The third bucket is management.
00:02:32.220 It's all the meetings, it's the project management,
00:02:34.700 it's reviewing things, it's following up with people,
00:02:36.620 it's getting them unblocked,
00:02:37.720 it's getting them the resources, okay?
00:02:40.200 That is the third bucket.
00:02:42.140 The fourth, which is one that most entrepreneurs
00:02:44.200 never even touch, maybe once a year they sit down
00:02:46.500 for a couple hours and they plan, is the strategic bucket.
00:02:49.500 It's the area and the time you spend planning the business,
00:02:53.540 trying to understand what are the different resources that you have and how can you put them
00:02:57.060 in the right order to get and achieve the outcome that you want. It's the strategic thinking. Those
00:03:02.140 are the four buckets. Admin, work, management, strategy. So first you need to understand those
00:03:07.240 four buckets to figure out what you put in each one of them. The second area I want to share with
00:03:11.120 you guys is the four value aspects of these buckets. Because here's the deal. If you do this
00:03:16.280 right, you'll be able to say, okay, my goal this year is to build a million dollar company, okay?
00:03:21.180 If that's your goal and you say, okay, every day I need to
00:03:23.780 create value, so if you divide, if you look at 365 days in a
00:03:28.360 year, you're really only gonna work about 200 days when you
00:03:30.920 take out weekends and vacation and other things.
00:03:33.520 Some of you guys are hardcore and you're gonna work a lot
00:03:35.420 more than that, but let's just say 200.
00:03:37.460 If you divided each one of those, that million dollars by
00:03:41.500 200, you're gonna end up with a $5,000 per day value
00:03:45.600 creation, so here's the way you kind of quantify each area
00:03:49.800 of those buckets because really you can look at your time
00:03:52.660 and say if I spend an hour doing email and that's a
00:03:55.120 supportive admin work then that's really 10 bucks, right?
00:03:59.100 So the first level is 10, the second level or the second
00:04:02.480 bucket is $100 task that's doing the work for the client.
00:04:05.740 The third bucket is management, I'll give you $500 an hour
00:04:09.680 for that type of work, daily value creation.
00:04:11.900 And then the fourth bucket is gonna be 5,000,
00:04:14.400 that's the strategic work, alright?
00:04:16.700 So what you do is in your day you write down all the
00:04:19.040 different tasks that you work on, all the different projects.
00:04:21.040 Where did you spend your time?
00:04:22.640 If you're a fan of my other training, you've probably gotten
00:04:25.940 to the point where you're starting to schedule things
00:04:27.540 in your calendar.
00:04:28.140 For me, it's really easy because I just look at my calendar
00:04:30.340 because I obey and I block time.
00:04:32.440 I know what I worked on so I can easily quantify it.
00:04:35.040 And then you measure the value created in that day.
00:04:37.340 If all you did was client work for eight hours,
00:04:39.440 that's an $800 an hour, that's an $800 a day.
00:04:42.740 If all you did was management meetings for eight hours,
00:04:45.840 then that is a $4,000 a day.
00:04:47.840 But as I just mentioned, if you're focused on building
00:04:50.340 a million dollar company and you divide it by 200 days,
00:04:53.220 you need to be generating $5,000 an hour
00:04:56.280 or $5,000 value days.
00:04:59.220 Now here's the cool part.
00:05:00.620 If all you did was block time, a strategic type of thing.
00:05:04.380 And strategic means like managing, or not managing,
00:05:07.300 but processing and understanding
00:05:09.300 what do I wanna get done this quarter?
00:05:10.800 What do I need to get done this week?
00:05:12.340 What do I need to design from a marketing point of view?
00:05:15.360 What's my recruiting process?
00:05:17.300 is strategic thinking, it's not doing the work,
00:05:19.860 it's the work of thinking, strategy.
00:05:22.240 Here's the resources, what order they need to go in.
00:05:24.400 That is a $5,000 an hour.
00:05:26.000 So if you can schedule those kinds of projects or time
00:05:29.880 in your calendar once a day for one hour,
00:05:32.580 then regardless of whatever happens the rest of the day,
00:05:35.360 you're gonna nail your goal
00:05:36.660 and you're gonna build that million dollar business.
00:05:38.560 Now, the third area that you need to understand,
00:05:40.960 once you've got the buckets and then the value per bucket,
00:05:44.260 is really the difference between on and in.
00:05:46.500 So if you look at a grid and you design this kind of like
00:05:49.200 what are things that I do that's admin, work,
00:05:52.040 management, or strategy, then you have the opportunity
00:05:56.100 to clearly see the difference between working
00:05:58.120 in the business and on the business.
00:05:59.320 In the business is the first two that I just shared
00:06:02.320 or maybe I'll go on this side.
00:06:04.580 It's the in the business, it's the work or the admin stuff.
00:06:09.460 That's working in the business.
00:06:10.520 The on the business is management and strategy, alright?
00:06:14.520 So that is how you can think about it.
00:06:16.120 When Michael Gerber from the E-Myth wrote that incredible
00:06:19.060 book, The E-Myth Revisited, he talked about like working on
00:06:22.000 and in the business, I'm giving you a clear framework to
00:06:25.060 understand what type of activities in your day qualify
00:06:28.560 for each one of those.
00:06:29.360 So, real quick, understanding the four buckets.
00:06:32.300 Admin, work, management, strategy.
00:06:35.840 The value of each one, $10 an hour, $100 an hour, $500 an hour,
00:06:40.080 $5,000 an hour, and then understand if you split those
00:06:42.980 two types, those two buckets into their own section. 0.98
00:06:45.920 This is in the business, this is on the business.
00:06:49.080 That will give you a framework to think about creating value
00:06:52.720 in a measurable way every day.
00:06:55.760 Powerful stuff, if you choose to do it,
00:06:57.720 you can keep it in a spreadsheet.
00:06:59.200 You can log it, you can make it happen.
00:07:01.200 Following this will allow you to be more certain
00:07:03.440 about how you're gonna align what you do today
00:07:06.040 to the quarter, to the month, to building your business.
00:07:08.680 I hope this video finds you doing extremely well
00:07:11.540 And as per usual I want to challenge you to live a bigger
00:07:13.380 life and a bigger business and I'll see you next Monday.
00:07:16.720 If you like this video be sure to subscribe to my channel
00:07:19.180 where I share other videos on how to start and grow your
00:07:21.280 business.
00:07:21.780 Also encourage you to subscribe to my newsletter where I send
00:07:24.980 out exclusive invites to events and other private training
00:07:28.660 videos and if you're ready to get going click on those videos.
00:07:31.320 I got a couple queued up for you.
00:07:32.800 I will see you next week.