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

Misogynist Sentences

1


Summary

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

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.
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.