- You'll drag your feet, you'll see opportunity.
Somebody will email you and say,
hey, I wanna be your partner and I wanna promote,
I've got 100 customers ready for you to go,
and you're gonna be slow to respond.
(upbeat music)
Today I wanna talk to you
about how to avoid missed opportunities.
Literally the amount of times that people drag their feet,
avoid hiring great people,
are too slow to make a decision
to potentially buy a company, get extra supplies,
like literally these opportunities
that could be transformational in their business
caused by lack of decision-making,
not even that the opportunity wasn't there for them
to take advantage of it,
is that they couldn't make the decision of that fast enough
to capitalise on that.
So I wanna share with you today how to,
the mindset behind making faster decisions.
When I look at the best companies that I coach,
when I look at the founders and the CEOs
of the companies that I coach,
that are growing the fastest, making the most money,
keeping the customers around the longest,
their super power is making fast decisions.
You know, I don't know if you knew this,
but Jeff Bezos has a framework
called Type 1 and Type 2 decisions, okay.
And I wanna share it with you,
and then also talk to you about the mindset side
behind why you might have this reluctance
or this fear or concern around making
certain types of decisions
and how to kind of work through them.
But Jeff Bezos' model of Type 1 versus Type 2
is I think best explained through an example, okay,
or an analogy.
So the analogy is that there are decisions
that are Type 1 decisions, which is a one-way door, okay.
Like a door that opens and you walk through,
you know, kinda like a turn gate on the Subway System
in New York City.
When you go through that turn gate,
it's a one-way, you can't work back.
You put the token in, you swipe your card
and you walk through the gate.
That's a one-way decision,
that's a Type 1 decision.
Type 2 decisions are where it's a revolving door,
where you can walk into the building and out the building.
That's a Type 2 decision.
The challenges a lot of CEOs, entrepreneurs,
and even executive leaders,
they're making Type 1 decisions or Type 2 decisions
with Type 1 discipline and discernment
and analysis paralysis.
They're literally making decisions
that could easily be backed out of,
for example, if you hire the wrong person.
Hiring the wrong person is the Type 2 decision.
It, yes, it sucks,
yes, you go through all this pain,
you hire somebody, they don't work out and you let them go,
but it's not a Type 1.
Type 1 decisions or things like buying a company.
I would say Type 1 decisions is setting salary thresholds
for a team member.
I don't know if you've ever tried
to do a pay cut on somebody, but, you know,
I had somebody, recently asked me one of my groups,
they said, you know, I'm having an issue with an employee,
they're not working out really well.
You know, I'm thinking,
they're not performing the way they said,
and it's really affecting culture.
So I'm thinking of right-sizing their salary,
going from here to here.
And I kind of laughed.
I said, you know, if you think their performance
isn't going well,
check it out after you give them a pay cut,
like it just hardly ever works.
So setting salaries is a Type 1 decision.
You know, strategic product initiatives,
where you're gonna go down,
you're gonna add this new module,
or you're gonna decide to expand.
Like, those are not Type 2 decisions
where you can back out of.
Understanding the difference
and the level of scrutiny you bring to each one
will help you move faster, okay.
So a few mindset beliefs I wanna share with you
in regards to making faster decisions,
number one is what is the word fear even mean?
'Cause most people are scared to pull the trigger
out of fear.
Here's what I've discovered a long time ago.
It stands for, it's an acronym,
and it stands for false evidence appearing real.
Often people's fear around making a decision
is based on a belief that just simply isn't true.
For example, you may want to start a business
and you're worried that if you start a business
that you might lose everything you've built
up to that point in your life.
And there's no facts to support that.
Sure, if you grab all of your personal savings
and get a line of credit on your home
and borrow money from your family
and put it all in on day one into a business,
yah, you probably could lose it all.
But nobody's asking you to do that.
Nobody's asking you to make that kind of risky decision.
Most people start businesses, just side hustle,
a little bit revenue, a little bit,
they just do a little bit.
So like a lot of people make these assumptions,
false evidence appearing real,
like there's just no evidence
to support the assumption, right.
Or they're worried that if they like pick up the phone
and ask for a favour from somebody that they don't know,
the person's gonna scream in their face
and think that they're worst human being in the world.
My question to them often is has that ever happened?
Okay, maybe it has.
Maybe it happened once.
Did it happen 10 times in a row from 10 different people?
If the answer's no, then you have this belief
of appearing real of this false evidence appearing real,
that just isn't based on facts.
So that's number one.
The mindset of understanding what fear stands for,
I think is really important.
Number two is understanding the downside and the upside
of making a decision.
So the way I think about it is when I'm making decisions,
I'm always asking myself,
what's the potential downside around this,
like worst case scenario.
And then what's the upside.
And I'm always looking for,
similar to Type 1, Type 2 decisions,
I'm always looking for a disproportionate upside
to the downside.
So for example, if I'm gonna buy a company,
which is a Type 1 decision,
it's not easy to get back out of,
but if I buy the right company or real estate project,
maybe you're thinking of doing some real estate,
maybe it's sending your kid to a new school.
I don't know, maybe it's deciding to travel remotely
for the next 12 months 'cause you can't, you know.
So what's the downside.
Okay, so downside is if I buy this company,
it may not work out the way I think it's,
so I wanna do all this stuff.
Okay, worst case, I could probably sell it
for this amount of money.
Maybe, you know, the downside is you could sell it
for what you paid for it.
The upside is, this thing could make you
two, three times your money
over the next three to five years.
That's the downside, that's the upside.
The way I like to think about it is always ask yourself,
what's the downside upside,
and then can you live with the downside?
Can you live with the, so most people don't understand that.
So they'll make investments in Bitcoin.
Now, the probability of Bitcoin,
for example, going to zero is very low,
but the probability of it losing half of its value
in the next month is high.
So can you live with that downside?
If the answer is no, don't do the deal.
Don't make the decision.
If you fast-forward probability
and say, this is the downside, this is the upside,
I could live with the outside, 'cause that's amazing,
but I can't live with the downside.
Then don't do it.
That's number two.
Number three is the idea of, I have a lot of clients that,
you know, for whatever reason,
at every level of growth in business,
there's typically money mindset, beliefs that come out.
And, you know, especially around hiring people, salaries,
you know, growth.
And what I say to them often is create the parameter
and the structure and then give it to somebody else.
If you know that you have a really hard time,
you drag your feet making decisions,
you drag your feet hiring people,
you know, investing in marketing is tough for you,
take it off your plate,
make it somebody else's responsibility,
because the moment you make it
somebody else's responsibility to drive growth
and run marketing, for example,
then they will push and they will create,
and they will drive.
And it's now no longer a mental gymnastic exercise
that you have to do.
You've given it to somebody else,
now you can create some structure and parameters
and say, hey, I'm gonna monitor the investment
versus the return,
but if those things are true,
I'm just gonna let you to continue to invest.
I see this happen often for business owners
that have a marketing department and a sales department,
but they're the person that runs both departments, right.
Or marketing, sales and delivery, right?
If you are the entrepreneur
and you are involved in all three of those,
here's what will happen.
You won't go and do marketing
'cause the more marketing you do means the more calls
you're gonna have to get on, that's sales.
And the more selling you have to do,
the more delivery you're gonna be responsible
on the fulfilment side.
So if you are the same person that has to do marketing
to get your calendar busy,
to then get even busier doing fulfilment,
you will not make those decisions, okay.
You'll drag your feet, you'll see opportunity.
Somebody will email you and say,
hey, I wanna be your partner and I wanna promote,
I've got 100 customers ready for you to go,
and you're gonna be slow to respond.
You're not gonna take action.
You're not gonna make that decision
because you are part of that.
So what I always recommend my clients to do
is separate the people involved.
I want marketing to push as hard as they can.
I want sales to push as hard as they can,
and I want the fulfilment delivery person
to push as hard as they can.
And I don't want them throttling each other
to slow down the potential growth.
Just that simple concept alone
will allow you to grow.
But if you're responsible for all three of those
and you're in the middle
and any one of those things growing
will create more stress for you,
you won't take the right action, okay.
So there's this great exercise I got from a friend of mine.
I think I got it from an individual named Jeff Spencer,
the champion mindset.
I may be getting that wrong,
but it was a simple question was when I feel alive, I,
and what are the things you do?
And then when I feel threatened, I,
so these, you know, I feel threatened when I,
and then these are the things.
So essentially the activities that make you feel alive,
make a list of those,
the activities that make you feel threatened,
make a list of those,
and make sure that these things are not you doing them
because the decision fatigue, the decisions fear,
the decision, whatever, anxiety, is gonna show up.
So those are the three big mindset sides.
Is number one, if you can just look at every decision
you gotta make through the Type 1
versus Type 2 decision matrix,
that will help because you can always walk back
from a Type 2 decision,
it'll allow you to increase the velocity of decision-making,
which is gonna increase the growth of your business.
And just understand that fear
is false evidence appearing real
that if you analyse the downside and you can live with it,
then make the decision if the upside is there.
And then finally take the things
that make you feel threatened,
and give them to other people to make decisions
so that they can push those areas of your life
and your business forward.
And that is how we can really accelerate
your decision making process.
If you want to learn more about the mindset side
of how I approach my day and my communication
and the way I set the vision,
I want you to click the link below
and check out my future living training.
It's essentially the way I live six months into the future
so that I can bring that energy into my day today.
You know, a lot of people follow me on social media.
And recently I posted on my Instagram Live,
"We don't manage time, we manage emotions."
This framework, so you can click the link below
to get access to that,
this is how I manage my emotions by future living.
If you can live in the future six months,
bring that back, and there's a whole framework
for how to do that right.
That is where all of a sudden, you're not managing time,
you're managing emotions,
and with the right emotions,
you can take better actions
that will get you the results that you're looking for.
So that is what I got for you today.
I hope this video finds you incredibly well,
and I'm looking forward to hearing how it all works out.
Leave a comment,
let me know what's been the most useful thing
you've heard below in the comments.
And we'll talk soon.
Peace, everybody.
(upbeat music)