Do you ever go to the gym and there's this one person who's there all the time at the
gym?
Same place you've been going to, you see this person working out so hard.
It's almost as if every time you go to the gym, they're there.
But you don't see any progress with their body.
How is that even possible?
See, the same goes with business.
In business you have two different people.
Let's just say we have Bobby, and we have Joey.
Okay?
Bobby and Joey both became an entrepreneur at the same exact time.
Same exact time.
They're both willing to work 80 hours a week.
They're all-the-timers.
They're willing to work 80 hours a week.
But two years later, three years later, five years later, Bobby's business does $5 million
a year, Joey's business only does a couple hundred thousand dollars per year.
Why is that?
Right?
How is that even possible?
And Joey is going crazy thinking, what is Bobby doing?
Did he get lucky?
Nope.
Bobby knew how to prioritize his time, and Bobby gets credit for putting a better strategy
in place while working very hard.
So I'm going to explain to you today the strategy quadrant and my outcome today, this video
is not for everybody.
So, this video's not for somebody who's a part-timer.
This video is for somebody who's minimum, minimum working 60 hours and up and is wanting
to take their business from doing a million dollars a year to two, four, 10, 20 million
dollar a year business.
You're not looking at doing something small.
You want to exponentially grow your business.
So now, you have four things.
Entrepreneurs sometimes say, "Pat, I feel like I'm doing so many different things.
A veteran, an expert entrepreneur will rarely say, "I'm being very overwhelmed."
You rarely hear somebody who knows what they're doing, they're overwhelmed.
Typically amateurs say, "I'm very overwhelmed."
I feel like I have to do this, and I'm doing that and doing this and doing this, man, this
is just too much.
I don't know if I can do this."
Right?
Okay.
Great.
You're really doing four things as a CEO and an entrepreneur.
It's four things you're really doing.
You're either working on your next innovative campaign, you're either developing leaders,
you're either making your operating system better, or you're doing biz dev and sales.
Very simple.
One thing to keep in mind, any time you spend time here on the bottom, this is linear, which
means you're business doesn't explode.
It's linear.
This is like somebody who has a liquor store or a restaurant and they make burgers or they
sell beer, and every year they gross $600,000 a year.
They gross a million a year.
They gross $300,000 a year.
And they're happy with that.
That's what they're grossing every single year.
And it's been the same for 10 years, because their main focus is here [biz dev], so it's
linear.
It hasn't exploded.
Right?
And over here [top], you've got the exponential side, when you focus on next innovative campaign
and leadership development.
Now, before I go into this, and dive into this with you, I want you to understand.
What you do also has to do with when you do it.
For instance, every business goes through a different phase.
Four phases they go through.
One is the survival, which say it's the beginning of the business, at any point it can go out
of business.
This is startup phase.
The other one is formulation; you're putting the pieces together, because you're preparing
for what?
An explosion.
And then when you have an explosion at the end, most companies, almost every one of them,
if not every one of them, you will hit a plateau.
Right?
You will hit a plateau.
But it's very important for you to be prepared for this explosion that's going to take place.
And how do you maximize that explosion?
So now, with that being said, let's talk about what these four things are that you'll be
doing as an entrepreneur.
First one, next innovative campaign.
This is very simple.
Let me explain to you what I mean by this.
Right now it's holiday season.
Okay?
Christmas is around the corner, New Year's is coming.
Everybody, by January 1st, is going to be judged on the type of campaign they ran during
this season.
Everybody.
They're going to get judged on what type of a campaign they run during this season.
There is dealerships that have to hit their numbers by the end of the year, so you'll
hear a lot of creative innovative campaigns saying, "you know, if you buy a brand new
Hyundai, the next 60 days, we're going to pay for your gas the next two years."
Oh, wow.
Honey, we can buy a car and they're going to pay for two years of our gas.
What they're really saying is instead of selling you the car for 28 grand, they'll sell it
to you for 24 grand.
And that $4,000 is two years of gas.
But it's an innovative campaign, to get you to come in.
You know, Wal-Mart may say, you know, during the holiday season we have a sale on these
three products.
Why those three products?
Because they're the most popular selling products.
That brings us in, then we buy a bunch of other things.
That's their innovative campaign.
Everybody gets judged on this.
Unfortunately, even as a real estate agent, or financial adviser, insurance, Fintech,
whatever business you're in, every business has a next innovative campaign.
And those who don't have constant next innovative campaigns, they don't have the inevitable
explosion.
That's exponential.
Not steady linear, exponential.
The other one is leadership development.
Leadership development is, you always identify who the next leaders you're going to build.
From the moment I figured out this business, for the longest time my business was linear,
the first two years, and then I said, Look, I want to experience an explosion.
I want to take my business from doing $100,000 a year to doing tens of millions of dollars
per year.
How do I do that?
Everything came back down to leadership development.
So you take your business, whatever you have, and you sit there and you say who do I have
at the home office that I can make into a major leader in the company?
And you make a list of your top five, top three, whoever the people are.
And you start assessing them.
And you say, this person needs this, they're strengths are this, their weaknesses are this.
This person responds to this, they don't respond to this.
They're very competitive.
They're not competitive.
They're very sensitive.
You know, he's always coming up with ideas.
Man, he's so solid.
He's got poise.
I like this guy.
Does he believe in the company?
So what can I do with him?
Then you sit down and you start identifying what things he needs to do in the next six,
12 months, two years.
And you present it to him.
Then you work on them.
You challenge him or her to grow.
You do the same thing with your executive sales people, up and coming people, it doesn't
matter what it is.
You, as a CEO, as an entrepreneur are going to get judged based on the types of leaders
you develop.
Yesterday Tom and I were in New York.
We were on a flight.
We're coming back, and Tom said, we were talking about Bill Belichick.
Bill Belichick, coach of New England Patriots.
And I say, "Hey, Tom, I got a question for you."
He said, "What's that?"
I said "How many coaches that have worked under Belichick have won a Super Bowl championship?
They were assistant coaches.
He said you know what, actually nobody.
I said, "really?"
He said, "nobody."
I said, "That's so interesting, because you know, Bill Walsh is known for what?
Bill Walsh was known for having produced the most people who went on and won championships
for themselves, because Bill Walsh is a phenomenal developer of leaders.
Now Bill Belichick is phenomenal at building players into leaders.
Not coaches, but players.
That was his strength.
So if you're a player playing for him, you're going to win.
But coaches was a different story, right?
You're going to get judged based on how well of a job you do with leadership development.
Because this is exponential.
A part of this could be as you looking at next people to recruit to bring to your company
that certain talent.
Then the linear side is operating systems and biz dev.
Let me explain operating systems.
Operating system, to most people who are watching this, if you're an A-type personality or you're
a marketer or sales CEO type of a personality, this is boring.
There's nothing exciting about operating system.
But let me take a shot at trying to excite you here, why operating system may be something
you ought to pay very close attention to.
There are two reasons why a company goes out of business.
One, they grow too slow.
Two, they grow too fast.
And you know why a company goes out of business when they grow too fast?
Because they had a founder and a CEO that had no desire to pay attention to their operating
system.
Because while they can handle 50, 100 sales a month, 200 sales a month, all of a sudden,
business takes off and the 200 sales a month goes to four, 800, 1600 sales a month.
And the home office can't handle it no more.
And everybody's backed up.
And then people get complaints.
Then no one wants to buy again.
Then there's rumors that you become the next eToys, where you can't deliver on your products
and deliver the toys on time.
And toys that were ordered to ship out before Christmas don't show up until January 16,
then you go out of business.
why?
Because you did not pay attention to the operating system.
This you want to get it to the point with your business that eventually it's simply
a knob.
All it is is a knob.
Your system is so well defined, that you just need to control the knob.
Boom, we just need to hire three more.
We can hire and afford 700 sales a month.
Oh!
It's an increase, we need to hire seven more.
It's okay, we can handle 1,400 a month.
Oh, we need.
. . it's a knob.
Oh, we don't need to, let's let go of three people.
Oh, we don't need to.
. . let's just hire some temp, oh, because it's a knob.
Boom, boom, boom, boom.
Very simple.
Operating system.
Next, biz dev and sales.
Biz dev and sales is new partners, how to make your sales better, how to make your sales
process better.
How to build some new relationships with vendors, with new partnerships.
Your networking, annual networking events where everybody's there from your industry
and you're going out there shaking hands with everybody.
We just went to one last week, which is the annual life insurance convention.
You talk to everybody.
Meeting after meeting after meeting after meeting.
Hey, what do you guys got going on?
Hey what are you working on?
What's going on?
Relationship, relationship, relationship, relationship.
That's what this [biz dev] is.
Linear, exponential.
If you spend most of your time in the linear part, you are not going to explode.
If you spend most of your time on the exponential part, you're getting ready for a major explosion.
Here's the problem.
Most people are always here [linear].
This is why.
Just because you chose to become an entrepreneur, doesn't make you a visionary.
Just because you chose to become an entrepreneur, doesn't make you a CEO.
Just because you chose to become an entrepreneur, doesn't mean you're always thinking future.
You could become an entrepreneur and you're a technician, like it talks about in the book
E-Myth.
You chose to become an entrepreneur and all you want to do is, hey, we need to make the
software better.
I had this one guy that I worked with, 24/7, he spends so much time on his software, until
he ran out of money and he had no sales people and he went out of business.
He spent $600,000.
A complete waste of time.
And I said, you need sales.
You need to develop your people.
Spend time with sales people.
But you don't understand.
If I get this product done, we're going to blow up.
It has nothing to do with the product.
The product is great, but if you don't have sales, nothing happens.
So you need to ask yourself this question as you're watching this.
Very simple.
Survival phase?
Formulation phase?
Explosion phase?
Plateau phase?
Okay, let's set aside plateau phase, because plateau phase is also a whole strategy you've
got to put together here.
Let's bring you back.
What do you think is more important during linear phase?
What's up here - next innovative campaign, leadership development?
Or operating system, biz dev and sales?
What do you think is more important during survival?
Without it you could go out of business.
During survival, this is decent [biz dev/sales] to focus here, sales.
But you need to know when to come out of it quickly.
And the time you come out of it quickly, is man, we need to go hire that one person.
It's going to cost us 120 per year.
I don't want to do it.
You've got to do it.
And you will get judged based on that decision you made - no one has all the info, so somebody's
going to watch this video and they're going to say, "Hey, Pat, should I hire this guy?
He's $180,000 a year income."
I don't have all the info.
Only you do.
Pat, Pat, this guy wants this much money and he wants - should I do it or should I not
do it?
I don't have all the info.
So no matter what I say in today's video, you can figure out which of these four you're
doing well at, and which of these four you're not doing well at.
No matter what I say in any one of my videos, no matter what anybody says in their books,
no matter what any video you watch, any book you read, any article you read, anything,
at the end of the day, when you become successful, when YOU become successful and you build a
very big business, that's constantly exponentially growing, you're going to get judged based
on decisions you made that nobody saw and nobody knew, while you have access to all
of the information.
So you can send me all these Snapchats about which questions to take and you can send me
the questions on Snapchat, betdavid19 is my username.
But it's irrelevant because you're going to need to make the decision yourself.
At that specific moment, what are you going to do?
Having all access to the information?
So linear, here, exponential , leadership development, leadership development, leadership
development.
Formulation, man, let's get the leadership development, leadership development, leadership
development.
Let's get next innovative campaign, next month we're doing this.
Next month we're doing this.
Next quarter we're doing this.
Next year we're doing this.
2016 is the year of this.
2015 is the year of this.
2018 is the year of this.
2017 is the year of this.
Next, next, next, next, next.
And then all of a sudden, boom.
It spikes.
And hopefully you got a campaign that's maybe got a three to a five-year lifespan.
Think different.
Apple.
Think different, Apple.
And we're running with that campaign.
Right?
So, you, while you're watching this, some people may say, well Pat, what am I going
to do with this?
Look, the strategy quadrant, the strategy quadrant right here, you need to yourself
ask which areas you're doing a very good job at, and which areas you're not.
And where do you need to pivot yourself.
Do you need to create an innovative campaign?
And what does it look like if you actually did do it?
And maybe you need to take the next 90 days, take today, or whenever you watch this video,
be prepared for your next innovative campaign for 90 days.
What are we doing this month?
What are we doing next month?
What are we doing the following month?
Actually ask yourself those questions, on what you're going to do starting now, the
next 90 days.
You would be amazed how exciting this is, if you really put a strategy together for
your business.
And it's definitely exciting when the business grows and the money starts coming in because
once that starts happening, let me tell you, it gets very, very exciting.
Anyways, with that being said, if you've got any questions or thoughts about this, comment
on the bottom.
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