Maybe the most powerful word in business… [Increase ACV Part 2]

In part one of this series we talked about some thought processes behind graduating from an individualist, to a machine builder.

 

I love this quick story analogy to help paint a picture:

Imagine three guys (or gals) who each need water for their family, friends and community.

The first physically carries the buckets, back and forth, year after year. He makes it happen.

The second builds a piping system, wrench in hand, blueprints out, sweat on the brow, making sure every detail is done right. It takes a couple years, but then he can sit back and relax as the water flows to him.

The third cultivates a team of people to build a piping system with him. The pipe is done in a couple of months. He’s “hands-on” but not physically, he’s like the orchestra conductor… he doesn’t play an instrument himself… but he produces the symphony. 

I want to be the third guy.

Of course, that might not be possible at first, and that’s ok … but we’re going in that direction. Oh, and you can still play the instrument if you want, that was just an analogy…

But the idea is called Leverage. It might be the most powerful word in business.

Leverage

You might be thinking… Don’t you mean Delegation?

No.

Leverage differs from delegation in that you actively maintain the standards of each step.

Delegation is a complete handoff, a relinquishing of responsibility.

Leverage is what small business owners, and specifically GYM owners, must focus on.

The standards of the business will always be based on YOUR STANDARDS, no matter what anyone tries to tell you.

So you’ve got to learn to leverage (while maintaining your standards) and cease doing everything yourself.

Start spending your spare moments thinking about how you can stop doing things that are not the best use of your time.

Task: Write down a list of EVERYTHING you do.

Literally all the roles you have, all the tasks. (this might take a while if you’re normal.)

Asterisk the most important money generating tasks, or the ones that only YOU can do —  your unique ability, the things you do best. 

Set a goal to eliminate the rest. You can accomplish that in two primary ways:

  1. Building Machines (Automate/Systemize aka Important, Permanent Fixes)
  2. Leverage/Outsource.

You can go from cleaning the gym for 3 hours a week to paying someone 60 bucks, and then double-checking everything in 10 minutes. 

Spend the remaining 2 hours and 50 minutes on 1) your highest value, money generating activities, or 2) building machines, or 3) figuring out other ways to leverage and outsource.

Don’t be a rugged individualist, it’s a recipe for burnout.

By thinking with a leveraged mindset, you make the leap to having a business that is successful AND easy to manage.

Without this piece, you’ll spin your wheels forever.

Why am I telling you all this?

Because these are Foundational Steps. If you’re focusing on a bunch of other things, you’re missing out and wasting precious time.

Before I give you all the templates and resources and tools, you must understand this framework of thinking.

Otherwise there will be no value built, what I give you will get clumped with other free stuff you found online.

So, with Leverage covered, we can get into the next phase …

Where to start…

And this comes down to understanding the TWO most important things your clients must do in order for you to be successful…

And that will be the topic of the next blog post in the series

Talk to you soon!

Nathan Holiday

Nathan Holiday

CEO of Level Method, Nathan was born in Australia, grew up in CA, and joined the Army at 18. He deployed to Baghdad, Iraq as a Sniper team leader in 2006 and after being honorably discharged in 2008 went on to become a coach, athlete, and entrepreneur. He holds a BA in Business, earned at night while running his gym in the day. Nathan has extensive knowledge and experience in a wide variety of subjects and considers himself a committed, lifelong student.
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