Mike Minute Mastermind 10/28/2022

Hey everyone, let's go ahead. Started a couple quick things. Oh sick. I forgot to put the link in the YouTube. Give me one second.

Couple quick things. For those of you who are in Zooper already got the email yesterday specifically about the subdomain. One second.

Because of all the changes they are making for us, they wanted to move us off onto a different subdomain just to keep make sure that we don't have issues down the road because we have made so many changes to their code. So we are now a subdomain@super augusta.zooperpro.com so if you do not get the email, make sure you check the email. Lonnie sent it out yesterday along with some of the changes they've made to the dispatch board. The main changes that they are making for us have not been made yet and that is the actual layout. But they started to give us the options in terms of adding budgeted hours in there. Adding budget hours per day, actual versus budgeted. Things like that is all built in now as well as like making options of what you want to see on the dispatch board is on there. So the main change hasn't come out. Supposed to be next week. We're getting the beta and starting to test it in terms of list view. But make sure if you are in super that you have check your email.

From Lonnie. She sent out yesterday to update.

Okay, let's see here.

We got some questions that came in. If I can pull these up.

Okay, you mentioned in a mastermind that you expect your GMs of brand new locations to hit 300k in the first year and 500k annual revenue by year two. And they would be skinny on thin eyes if they can't hit these numbers. I'm just curious what percentage of franchises these are able to sort of numbers, let alone a higher gm. Yeah, like the vast majority of growth models are between 250 to 300,000 their first year. Almost, almost everyone.

And so a growth model that you know, for example, if someone is starting a growth model with a GM and they're like, hey, here's all the firepower in the world you need in terms of like a budget. And that's kind of how I start. Mine is like, look, if you're going to grow, I'll fund it. And so with that fact that it's basically a blank check, as long as they're growing, there's no reason why someone shouldn't be able to do the numbers. You know, the 300,000, 500,000 would be the goals. If someone did, you know, 250 to 300, which is the average, it's actually on a lower end for growth model for the first year and then you know, 500,000 is very doable in the second year. Even if it was 450, that'd be fine. But if it's like second year someone's doing 250 or 300,000, like there's just, you know, it's likely that, that GM will need to be replaced if you're going to ever have a location that's profitable. Because a working GM needs to be doing 560,000 annual revenue in order for the numbers to work. So.

Yeah.

Because like you can only like I'd say in your first year you're going to lose money on a working GM model the second year if you do say, you know, 4 or 500,000, you can be making a little bit of profit, maybe 50,000 in profit. But if you're doing only 250 to 300,000 again in the second year for working GM model, you're probably not making any money. So going to your third year if you're not being making profit consistently, like there's no reason to have the business open like your for profit entities. So once you hit around that 450 plus marker, that's when the working GM model starts to actually make good money where you can still be 20% profitable after everything's been paid. And if you can take a hundred thousand dollars in distributions on a half a million dollar business, that's great.

Well, there's a long question. Okay, see here Logan.

How do you make major decisions in your business and personal life? Oh mercy. Okay, here we go. I want to keep grinding and growing my personal wealth and businesses. I'm confident that I can open another location next year if I can keep on the grind. But I don't know if it's the right decision. Truthfully, I'm scared to make that leap. But being scared is good, right? I feel like the universe is telling me to start another location. I have a great employee who would be an excellent working gm. He wants to do it. We've already started training for it. I have another employee who wants to move to Fremont where the next location would be and eventually own a GM location. I also have more cash in the bank now than ever. That's a good thing. That kind of changes my whole perspective on this.

I know, I know we, I know we would be bootstrapping for cash this winter and spring. I'm assuming you mean strapped for cash this winter and spring, but I've done that many times before. I'm the kind of person who will figure it out no matter what situation I'm in. And I feel like I should just take the leap, commit to plan and budget I've made and fail, then fail better. What are your thoughts?

Okay, this is like, there's a lot of different questions here, so let me actually work backwards because I, this is the first time I read the question. So let's talk first about creating more working GM models. There's several things that need to be checked in my mind. For someone to have a working GM model, number one, you need to have money that you could literally lose tomorrow and it'd be okay as if you were putting in the stock market. I'd tell the same person, you, you know, if you're putting money in the stock market, it should be like if you lost it, you're not putting your family in jeopardy. Right. Logan, you have the, the advantage like myself, where you don't have a family that is dependent on you. So you, you have a little bit more leeway to get closer to zero on that number. Right? So you might only need say 40 or 50 grand to feel comfortable starting a second location and just know you're gonna get close to zero. And that's fine. If you have family, I wouldn't recommend doing that.

And in terms of, you know, another location, number one is do you have a great work, a great working gm. That's the hardest part, to be honest with you. Money is whatever, but like finding that person, that's the hardest thing. So you sound like you check that box. The second thing is, do you have the cash? And if you lost that cash, would the original business be okay? You do not want to put the, the money making machine that is now put you in a really good spot in jeopardy because you're like, I'm going to start a second location or I'm going to start a different business or whatever it might be. You know, the shiny object syndrome is the death of many entrepreneurs. So that's. The second thing is like, do you have the cash? The third thing is.

Comes down to can you manage it? Because it's a totally different type of business when you're running to two locations. The way to stress test your business is always do two of them because immediately it forces you to rely on the systems instead of you being the master juggler of everything that's going on a daily basis. And if you really want to test it do three or four. Because now it's impossible for you to be at any, all of the locations in a single day.

And then you really want to stress test it, put it where you can't drive to a location. These are all the type of things that.

Prove the systems of the business. And.

Opening multiple locations creates a different job for you as the entrepreneur. Like, it's totally different. You're no longer in operations at all. Like, it's not just like, I'm doing estimates, I'm working on my business. It's now a matter of like, you're working on the people who work on the business. Right. It's a totally different mindset. So that could be very fun and exciting. And it is, it is. I'm not going to lie and be like, oh, it's such a horrible life. It's a great job to be able to strategically talk to your managers who are then working on the business and trying to grind and working on their numbers. Like, it is, it's, it's a cool position to be in. It's better than being out in the field. Like, I'll just be honest.

And then that leads me to the top part, which is, I think what you're trying to actually get to in asking me all this other stuff and that is how do I make major decisions in my business and personal life? Um, for me, like, the major decisions in business I actually make pretty quickly because you don't ever know the alternative of the decision you make. So.

Just live with the, the, the best bad decision you can make, and there's no reason in making it, drawing out that decision. Like, ultimately, if you, if you know, you make. This is something I was thinking about last week. Let's see if I can kind of like synthesize it in good words.

If you make decisions at a rate where more than 50% is a good decision, you should theoretically make as many decisions as possible for the greatest outcome. So if your, if your rate, if your ratio of good decision versus bad decision is greater than 50% in theory, you should make as many decisions as fast as possible because it's going to lead to the greatest delta and difference of opportunity and the greatest change in positive direction. Right? So let's just say out of a hundred decisions, 60 of your decisions are good, 40 of them are bad. Right? You can literally break all this up down into straight math. But like, let's just say 40 of them were bad, 60 of them were good. That means if you make a hundred decisions, you made a net positive 10 result, a net result of 10 positive decisions, which means I would rather you go make 300 decisions so you can get 30 net positive decisions versus only making 50 and making five net positive decisions. You are now six times ahead if you just make three times as many decisions. So this is when it comes down to just decision making process and speed of execution. And so that's. That sort of logic is what leads me to say, go start another location, because you're probably going to save yourself a year compared to just doing analysis and thinking about it and decision fatigue over the next year. Then you're going to pull the trigger anyways. Whereas now, if you pulled the trigger now, in a year you would have figured out all the mistakes, you would have gone through all that headache, and now in a year later, you'd be in a completely better position because you'd have all of that experience and you'd have those net positive decisions underneath your belt. Right? Personal life is tough because you have, you have to. I heard Alex Hormozi say this a while back, I don't know when. And that was basically looking at. The reversibility of a decision is important too, right? Like, if you're going to get married, like, that's a personal decision you probably want to take your time on because it's basically irreversible. You can reverse it, but it's gonna be painful. You know, if you're going to build a house, like, that is a less reversible decision than like renting. So the, the level of reversibility of a decision is also sort of how much time I'm going to allocate towards making it if I know I can hire. Like if you're really stressed out, should I fire somebody? Like, it's reversible. At the very worst, you try to hire them back. Vice versa, if you like. Man, I don't know if I should hire people. What's the worst? You let them go, right? So that's. A lot of people will get paralysis by analysis on things that are completely reversible and don't have a huge impact, right? It's like, okay, you have 10 employees. Should I fire one employee? It's a bad apple. Like, it's reversible and it's only 10% of your workforce. It's not going to like, change your whole life. So it should be something that you make the decision very quickly. And so I'm usually known for making decisions probably too quickly and erring on that side of things. But again, I tend to believe that more than 50% of my decisions are good. Therefore, the more decisions I make, the more progress will be have.

That was a quotable quote right there. Let's go.

Cool. I think that's all I got.

Yeah, that's all the questions that came in, so. All right, guys, have a great weekend. Happy Friday, and we'll see you on Monday.