Setz dir höhere Standards

0:00I'll tell you something that kind of shifted my perspective in terms of uh you're increasing a minimum standard. So in the financial world, some of you guys may know this if you're in the in the high fin in the finance world where they say finance. All right, if you know what I'm saying, it's a very small it's inside joke. Anyways, but if you're at the Goldman Sachs of the world, if you're in the private equity world, right, one of the sayings they'll have is they be like, "Here's a stick or I made two sticks." Right? Now, what is a stick? A stick is slang for a million dollars. And because those guys make so much money that they changed the increment back to one one stick, two sticks, four sticks, right? That's how much money they made. And I remember when I was broker that I used to measure the amount of money I had in Chipotle burritos because I just knew that that's how many meals I could have from that.

0:46As I made a little bit more money, it was months of rent, right? And you probably have some standard that will continually increase. [snorts] And so this is where like you can tell typically how wealthy someone is by the increments they count in in terms of time for how long they think out and money in terms of how they think about their bets. And so right now like if I were to start a new business and this is again minimum standard thing if I was going to get into a new industry right I'm immediately going to be thinking like how do we build a 50 to 100 person sales team? How do we get our how can we scale our spend up to a few hundred thousand a day? And I'm basically just going to be relentlessly going in that direction until we've at least hit there because that's where I'm very very comfortable.

1:31Now the thing is is that there's guys who are bigger than me that are like if we're not spending a billion month in advertising like what are we doing right or we're not spending you know we're not spending XYZ like there there's levels to this game. And so the goal is like how can you pull forward your standards of future you to today so you can solve for it and do so much more volume. [snorts] Now this is all about more. You're like but when do you do better? And so the nice thing is that there is a math answer for this too which is that when the incremental return on better is greater than more. So fundamentally what is strategy again? Strategy is prioritization of resources, right? And good strategy is getting the highest return on the limited resources you have. That's good strategy, right? And so I'll give you a very simple example of A versus B. So right now, if you're, you know, sub a million, you probably have like one salesperson. And so the effort it takes to hire another salesperson is large, right? But if you have one salesperson, you almost always just need to add more salespeople, right? Right? And so the result of going from one proficient salespeople to two is that you would double sales. Now, let's compare that. That one salesperson, let's assume that they're proficient, right? They're doing okay.

2:43Maybe they're not the best in the world, but they're okay, right? You do everything under the sun to that one salesperson. And you might take your current salesman from 25% close rates to 40, which would be a 60% improvement. And that'd be a monster improvement, right? That'd be a great improvement for one guy. But in that instance, it would still probably make sense for you to just get more salespeople because if you just doubled them and didn't go from 25 to 40%. You would still make more money and you'd also decrease the risk of the business because you wouldn't be, you know, uh, limited by one guy. Now, when does it make sense for you to do better?

3:18So, let's say you have a 20 person sales sales team and getting them from 25 to 30% as a team might end up being less work. then onboarding and training another four salespeople, right? And so if I go from 25% to 30%, that's a 20% improvement. And if I go from 20 salespeople to 24 salespeople, that's also a 20% improvement. And so both of those net you a 20% improvement.

3:47The question is, which of them is easier? Which of them requires fewer resources? And so that like that fundamental decision. So if you're asking yourself like, well, I want to make more money. Well, both of those would make you more money. So, which one do you do? That is the essence of good strategy. Both would work. The key is that we move faster by getting more for what we put in. And that is the foundation of leverage, which is making the decision or the right decision that will yield you the most for what you put in.