Valuetainment - February 27, 2019


Episode 278： How To Grow Your Business Exponentially


Episode Stats


Length

13 minutes

Words per minute

188.39906

Word count

2,567

Sentence count

144


Summary

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

Why is your business not growing at a faster rate than the competition? Why is it so hard to grow your business? Why does it have to be so slow to grow? In this episode, Patrick talks about the 4 speeds in business and how you can increase the speed of your business.

Transcript

Transcript generated with Whisper (turbo).
00:00:00.000 30 seconds, one time for the underdog, ignition sequence start, let me see you put em up, reach
00:00:09.220 the sky, turn the stars up above, cause it's one time for the underdog, one time for the
00:00:16.220 underdog.
00:00:17.280 I'm Patrick Bede, your host of Valuetainment, and today I'm going to talk to you about what
00:00:19.900 you can do to grow your business exponentially.
00:00:22.820 That one question that entrepreneurs have in the back of their minds when you're by
00:00:27.440 yourself, and you ask that one question, why is so-and-so growing at a faster pace than
00:00:35.460 me?
00:00:35.980 You ever asked that question before?
00:00:38.020 Just so you know, that's a question every business always asks.
00:00:43.500 What can we do to be growing faster?
00:00:46.840 Because you speak to a lot of people, and people say, you know, the key to success with this
00:00:50.660 company is you have to figure out a way to go faster.
00:00:53.720 You need to increase your speed.
00:00:55.180 And so, we take notes, and we say, I've got to go faster.
00:00:59.000 So, we come back, and we walk fast.
00:01:00.580 So, everything we're doing faster, and we notice it's still not exploding.
00:01:04.240 It's still not compounding.
00:01:06.060 Well, today's message hopefully will help out a little bit, because I'm going to clarify
00:01:11.960 the fact that there's not only one speed.
00:01:14.380 You may be constantly going back to your business and only increasing the speed of the one thing
00:01:20.380 that all you know how to increase.
00:01:22.160 So, today we're going to talk about the four speeds, and one of the things I want to challenge
00:01:25.540 you to do is I want you to, as I'm going through it, make notes of each speed.
00:01:31.320 You're going to watch this video two or three times.
00:01:32.820 You'll see by the time we're done with this.
00:01:33.980 It's not a one-time type of video you watch one time.
00:01:37.740 And you're going to want to share this with your team, because the moment you can figure
00:01:41.620 out how to grow much faster, you'll be more competitive, more profitable.
00:01:45.120 You'll enjoy your business a lot more.
00:01:47.560 It'll keep you more energetic, and you will be more sane than maybe driving yourself insane,
00:01:55.920 because if there's one thing all entrepreneurs we all have in common, we definitely know
00:02:00.060 how to drive ourselves insane, right?
00:02:01.580 So, let's talk about it.
00:02:03.120 Four speeds.
00:02:03.700 I'm going to get into the first speed.
00:02:04.740 First speed.
00:02:05.300 What is the first type of speed in business?
00:02:08.660 It's called functioning speed.
00:02:10.620 So, what is functioning speed?
00:02:12.400 Functioning speed is what allows for your business to function every single month, every
00:02:19.400 single day.
00:02:20.460 So, functioning speed is the supporting cast you provide for your clients, for your
00:02:26.600 agents, for your employees, for your partners.
00:02:30.260 Everything is about a consistent functioning speed, and if there is any speed that has to
00:02:35.720 be the most predictable, consistent, is the functioning speed.
00:02:39.180 Let me give you an example of what functioning speed is.
00:02:41.120 So, imagine this is your business, okay?
00:02:44.360 This is functioning speed.
00:02:45.880 This needs to be happening every day.
00:02:48.340 Some businesses' functioning speed is shorter, where they're going like this, because they
00:02:52.100 only have two assistants.
00:02:53.160 They only have one assistant.
00:02:54.560 They only have three supporting casts, two supporting casts.
00:02:57.620 Some are bigger.
00:02:58.680 As you hire more employees, this thing gets bigger and bigger and bigger.
00:03:02.180 But, if you all of a sudden say, I'm going to fire people because I don't think I need
00:03:06.800 all these people that are working for me right now anyways, then your functioning speed automatically
00:03:11.280 drops, and it affects everything else.
00:03:14.660 Your customer service drops, your relationship drops with your clients, your agents, your associates,
00:03:19.080 your partners, everybody.
00:03:20.160 So, look at functioning speed.
00:03:22.580 If you and I, if I'm trying to be a bodybuilder, if I'm trying to get in shape, you ask any personal
00:03:28.260 trainer that's an expert personal trainer, works at Equinox, or one of these celebrity
00:03:32.380 personal trainers, they will tell you the most important part of your body to work is what?
00:03:36.320 Everybody will tell you.
00:03:37.740 80% will tell you, it's your core.
00:03:40.480 Your core, your abs, how strong it is, your lower back.
00:03:43.820 It'll allow you to do squats better, it'll allow you to do shoulders better.
00:03:46.820 Everything comes back down to your core.
00:03:49.520 Your functioning speed is the core of your business.
00:03:52.820 Okay, just keep that part of mind because we're going to come back to what this affects every
00:03:56.380 other side of your business.
00:03:57.280 This is why sometimes you notice a business has grown very fast and it drops, their functioning
00:04:02.120 speed drops.
00:04:03.240 Second type of speed is called process speed.
00:04:06.820 So what is process speed?
00:04:08.200 Very simple.
00:04:09.300 How quickly you take the product from A to Z.
00:04:12.980 For instance, McDonald's is not known for the most incredible hamburgers.
00:04:19.440 McDonald's is not known for the most incredible many things, although their fries is definitely
00:04:25.460 incredible.
00:04:26.200 They put something in that thing, they want to keep going back to their fries.
00:04:29.480 So why does McDonald's do so well?
00:04:30.980 Look how efficient it is, the process.
00:04:32.500 McDonald's, McDonald's, the reason why they've outgrown their competitors is because they've
00:04:38.660 done a lot of things right, but if there's one part they paid attention to, is their process
00:04:43.020 speed.
00:04:43.620 It takes 189 seconds for a person to go through drive-through to order to getting the product.
00:04:50.700 189 seconds.
00:04:52.020 Last year it used to be 188.
00:04:54.380 They've dropped by a second and it's a disastrous thing they talk about.
00:04:58.260 From 188 to 189, but it takes 189 seconds from the moment you order the food to pick it up.
00:05:04.600 Fast food.
00:05:05.500 So as a customer is thinking, where should I go?
00:05:07.320 I don't have a lot of time.
00:05:08.160 I've got to get home, pick up my kids from school.
00:05:10.380 Ah, I don't want to go to McDonald's, but it's fast.
00:05:12.980 Boom.
00:05:13.860 The decision wasn't made, I want the best food.
00:05:16.180 The decision was made, what's fast, boom, you go to McDonald's because Burger King is
00:05:20.560 198 seconds.
00:05:22.480 Chick-fil-A is 204 seconds.
00:05:24.860 This gives you an idea on process speed.
00:05:27.780 In real estate, mortgages, process speed would be from the moment I get the file from the
00:05:33.340 client that's interested, they've been approved for a loan, then they get approved, we go do
00:05:38.120 the underwriting, we go find a home, appraisal, inspection, you know, everything is good,
00:05:44.000 signature, check, fund it, keys, boom, that's the process.
00:05:48.060 How long does it take from finding the house, getting the loan, to getting the key, that's
00:05:52.260 the process.
00:05:52.840 And insurance would be gone, meeting the client, first appointment I gather in for, second
00:05:57.140 appointment I present the product, get the paperwork, come back, submit it to the insurance
00:06:01.220 company, they scrub it up, goes to the carrier, carrier goes through it, underwriting, what's
00:06:06.260 the deal with this?
00:06:07.020 Blood, urine, they do their testing, comes back, underwriting's good, approved, we need this
00:06:11.440 signature, that signature, deliver the policy, that's the process, right?
00:06:15.660 That's process speed that you have.
00:06:18.180 Now, the third type of speed, what is the third type of speed?
00:06:21.260 The third type of speed is a little bit difficult to explain, it's called timing speed.
00:06:25.880 So what is timing speed?
00:06:27.500 Well, remember how I gave you the example of bodybuilding, the most important part of your
00:06:31.780 body is your core.
00:06:33.360 You ever met people that go to the gym, and maybe you've done this before, I did this when
00:06:38.180 I was 14 years old, thinking this is going to work, and every day, what is a new person
00:06:42.880 that has never lifted weights, what do they do every time they go to the gym?
00:06:46.060 A new guy goes to the gym, what do they do?
00:06:48.580 They do curls every day, and they do bench press every day, right?
00:06:52.080 They're thinking if you do curls every day, your biceps are going to grow, and they wonder
00:06:55.560 why it doesn't.
00:06:57.160 That's the timing part, where you'll learn your bicep needs 48 hours to rest.
00:07:03.380 So it's a better idea for me not to do biceps again three days from now.
00:07:07.500 So I don't want to do squats every day, because my legs need to have a chance to grow and recuperate
00:07:14.080 the energy and come back.
00:07:15.940 In business, it would be, you say I have $10,000 of marketing money.
00:07:20.300 How do I stretch this $10,000 of marketing money to create a contest event initiative to
00:07:27.240 get excitement to my customers, to get them going?
00:07:30.160 For example, Amazon recently did something against Walmart, where they came out with
00:07:35.860 this Prime Day that they did, where everything was on sale, and not just regular sale.
00:07:41.100 You were buying a 40-inch screen TV for $79 or $99.
00:07:46.100 They're losing money on that, but why are they doing that?
00:07:49.180 It gets, they have to sit down and say, if we lose this money on this, but it brings the
00:07:54.140 traffic to the website, and they buy other things, because generally, the average person
00:07:59.500 that buys a product with us, they tend to buy four products at a time, not one product
00:08:03.320 at a time.
00:08:04.080 We may lose $50 on one product, but we're going to make $90 on two other products.
00:08:08.960 We still gain the $40.
00:08:10.540 It's worth us stretching this money.
00:08:13.040 You finding out how you take that money to get the highest level of return, injecting enthusiasm,
00:08:18.720 a new initiative, a new contest, a new exciting thing that gets your team going.
00:08:22.460 That's the timing money, and knowing what season to do it, and what's needed during that time
00:08:28.440 when your business is struggling in an area that you want to inject, that specific part,
00:08:33.260 that's the timing speed.
00:08:34.760 And timing speed, nobody can teach you anything.
00:08:36.580 Generally, timing speed gets better by making a lot of mistakes.
00:08:39.860 So don't expect to be very good at the timing speed.
00:08:42.240 That's going to take a long time for you to figure it out, but some figure it out sooner,
00:08:45.520 that'll be on you.
00:08:46.160 The last one, the last one, which is the reason why Coke is where they are today, right?
00:08:54.760 When you look at Coke, where they are today, the reason why these guys are where they are
00:08:59.020 today, the reason why a guy like this writes a book called Good to Great on how a regular
00:09:04.120 company goes from being simple, small, to all of a sudden, boom, and they have that tipping
00:09:09.060 point where a Walmart goes from being small to all of a sudden, they explode, and now they
00:09:15.040 have the most employees.
00:09:16.180 What is that part?
00:09:17.080 It's called expansion speed.
00:09:19.360 So what is expansion speed?
00:09:21.540 Expansion speed is how quickly a real estate broker, I'm Coldwell Banker, how quickly do
00:09:31.080 I go from hiring that new real estate agent that's being trained and educated to learn
00:09:36.580 the system, to develop a new office of a person running it by themselves, and it's an independent
00:09:43.000 office in a new area that we expanded to?
00:09:46.540 For you, it would be how quickly can I move a person out of my office to go out there and
00:09:51.580 open up their own agency if you're in the insurance and the financial industry?
00:09:55.780 How can I expand?
00:09:57.140 When Coca-Cola had to sit there and think about how can they expand their business even more,
00:10:02.780 they said, well, we're selling more Coke than Pepsi to consumers.
00:10:07.460 What can we do?
00:10:08.840 And they bring a new CEO, and the CEO said, out of everything that a human being drinks
00:10:13.620 every day, what do they drink?
00:10:15.620 Now, listen to how strategic this is.
00:10:17.660 What do they drink?
00:10:18.560 And they have to figure, percentage-wise, they drink this punch percentage of water, this
00:10:23.840 much orange juice, this much vitamin water, this much this, this much that.
00:10:27.880 So guess what companies Coca-Cola owns?
00:10:30.280 Dasani water is a Coca-Cola product.
00:10:32.700 They were not going to be where they were going to be if they were not going to have
00:10:35.800 a new outlet.
00:10:37.360 Dasani is a water owned by Coca-Cola.
00:10:40.980 Minutemate is owned by Coca-Cola.
00:10:43.900 If you go to vitamin water, it's not owned by Coca-Cola because they see we have to expand
00:10:49.340 the business.
00:10:51.380 Expansion on how you open up new outlets for you is very much closely connected to one
00:10:58.460 thing.
00:10:58.900 And you know what it is?
00:11:00.560 Your functioning speed.
00:11:01.500 Because when this drops, this is what happens to your expansion.
00:11:05.060 It drops.
00:11:06.520 It doesn't expand.
00:11:08.180 You have to.
00:11:09.220 This is why when they say a business owner is not really a business owner because the
00:11:14.120 customers own a business, the employees own a business, the reps own a business, the partners
00:11:18.760 own the business owner, is because this is what the business owner has to do every day.
00:11:23.760 A business owner needs to be running their business every day.
00:11:26.080 If you don't, you lose your momentum.
00:11:28.300 And this is why so many people you notice in business, they go like this.
00:11:31.500 Because they think, oh, this thing's going to take off by itself.
00:11:34.420 No, your functioning speed needs every day attention, not one-time attention.
00:11:40.220 So if you put, imagine all these effort you put into expanding your business, all these
00:11:45.920 hours you're putting into growing your business, and then it drops.
00:11:50.300 Then you have to go and pick this thing back up and start all over again to get the speed
00:11:56.160 going at the same velocity.
00:11:57.620 That takes a lot of energy.
00:11:59.060 That's why it's important to keep your functioning speed high on a daily basis.
00:12:03.400 That's why these guys are called McDonald's.
00:12:05.220 That's why these guys are called Coke.
00:12:07.140 That's why all these companies that you know about worldwide that are talked about in books
00:12:11.400 like this is because their functioning speed never drops.
00:12:15.280 My challenge to you, go back and write down your speed and ask yourself, which of these
00:12:20.340 things you're going to do one of the things right?
00:12:23.020 Everybody is going to do one of the things right.
00:12:25.020 Everybody.
00:12:25.860 A few of you will do two of them right with your speed.
00:12:28.160 But you'll notice and say, my area is the processing speed.
00:12:32.840 My area is the expansion speed.
00:12:35.160 My area is my functioning speed.
00:12:37.120 My area is the timing speed.
00:12:39.360 I need to figure this part about it.
00:12:40.820 I don't put any money into my business.
00:12:42.920 Once you do that and come out with a plan, you will notice.
00:12:47.180 And by the way, you got to inspect it on a monthly basis.
00:12:49.700 Once you look at that and you come out with a plan, then you'll notice your business.
00:12:53.860 It won't just grow 10%.
00:12:56.240 It won't just grow 20%.
00:12:58.820 You can grow your business 50%, 60%, 75%.
00:13:04.840 You'll have a couple years of 100% if you pay attention to all of those four speeds of
00:13:12.300 your business.
00:13:12.960 Thanks, everybody, for listening.
00:13:14.220 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
00:13:18.960 Give us a five-star.
00:13:20.340 Write a review if you haven't already.
00:13:21.860 And if you have any questions for me that you may have, you can always find me on Snapchat,
00:13:25.480 Instagram, Facebook, or YouTube.
00:13:27.900 Just search my name, Patrick MidDavid.
00:13:29.800 And I actually do respond back when you snap me or send me a message on Instagram.
00:13:34.780 With that being said, have a great day today.
00:13:36.520 Take care, everybody.
00:13:37.240 Bye-bye.
00:13:37.480 Bye-bye.