https://www.youtube.com/watch?v=JOY6ZzBMb\_4

1 00:00:00.000 --\> 00:01:00.000 i think the easiest way to structure
operations is first list out the things the desired outcomes that need
to happen i don't get a lot of questions about operations they just
become obvious that they are a problem within a lot of the people that
that we help serve and so it's interesting because now that we work on
the allen side with resellers it's very clear who's good at operations
and who is not and that is typically based on the size of the business
the people who are better at operating are the ones who make more money
um and this is kind of one of the the unspoken secrets of the
entrepreneurial world especially within the internet space that we live
in now it appears to be all about marketing and sales and legion and
acquisition and although those are very important things and you have to
start there it becomes very clear that typically the entrepreneur has
that promotion

2 00:01:00.000 --\> 00:02:00.000 type of character traits and doesn't
dedicate the time to study the operational components of the business
which typically are the reasons that someone is or is not successful and
so i wanted to give you at least my simple mental framework for how i
think about operations in general and scaling operations and so for the
vast majority of people listening here um you're probably under eight
figures um some are under seven uh but most people are listening this
are probably business owners in the multiple uh 100 000 a year to you
know several several million a year and so for that so this is who i'm
talking to within that context i think the easiest way to structure
operations is first list out the things the desired outcomes that need
to happen all right and i think of business very much as a pipeline
which is from click to close to resell right and

3 00:02:00.000 --\> 00:03:00.000 resell within different businesses can
be retaining them so that they pay again or it could be a variation of
ascension but when i say click it means how do i get someone to click
and that's just within the internet environment click to opt-in to
schedule to show to buy to then ultimately want to buy again and so uh
if you have like with our gyms a four-step sales process or three-step
sales process that's happening there are clear activities that need to
happen right and so in the beginning you will have your front-end sales
and so you need to list that as one of the activities right because the
objective would be to sell them the activity is to take the call next
you'd have the nutrition orientation which would be the next time you'd
meet with them so then you need to allocate how many of those you're
going to need based on your current inflow it's the nice thing is is
that there's a ratio of for every 10 customers we need to do four of
these two of these two of these in one of these right and so what you
can do is once you realize what the

4 00:03:00.000 --\> 00:04:00.000 outcomes are you can list out all of
the activities that are required so for a typical client we might know
that it takes about two minutes per client per day and if we know that a
coach has three hours uh like we want to say winner kappa coach at 100
then we know that that coach is going to be able to do that within x
amount of time right and so then we book that time on that person's day
and so what happens is what you should do when you're creating your
company is when you're creating each of the roles that are going to
support you you need to look at a calendar and look at what the times of
day that this person is going to be working and what they're going to be
doing with each hour of their day and so you simply take the activities
in the allocated time that they need to work and place those on their
calendar and that's honestly all there is to it all right so i'm going
to give you an example to hopefully flesh this out a little bit but
within uh within an online fitness business which many of you guys are
operating right now

5 00:04:00.000 --\> 00:05:00.000 um there's really four if if demand gen
is being taken care of right so if legion is being taken care of and
lead nurture is being taken care of and i'm saying that because uh it'll
make the example simpler but also because that's what we do in our
company for gyms is uh if those two things are taken care of then
there's really not a lot that needs to happen right so first you need to
have first sales calls right to get new customers talking to prospects
then you need an onboarding all right that onboardings be typically a
nutrition orientation and also walking through the app and the tech and
the things that need to happen um and and that's it right uh the third
thing that will need to occur will be some sort of ascension
conversation which is gonna sell them into continuity all right so
that's number three now every customer is going to have one of these
things right and so if you're selling here it is you're selling 10
people a week then you need to if you're going to if you're going to
maintain that flow then if you know that your front end sale is 30
minutes your nutrition appointment is 30 minutes and then your ascension
is 30 minutes

6 00:05:00.000 --\> 00:06:00.000 then for every client that you're
bringing in you have an hour and a half per week that's going to be
allocated right now you can divide that up between different people but
the keys to scaling is that eventually it becomes too much for one
person to do all of those activities and then you start blocking entire
pieces of that type of activity to the next person right and so i'm
going to continue with the example after that the only other activity
that's going to be there would be uh either recruiting coaches right and
obviously the fulfillment and so uh let's say that the average customer
is going to take five minutes today i said two earlier but let's just
say it's five minutes today right and somebody has uh uh whatever it is
five minutes is a lot let's say say two for math's sake so 200 minutes
if you had 100 clients per day is what's going to be allocated so that's
what it is three three hours and you know 20 minutes so you look at
someone's schedule now that's obviously in a perfect scenario um but i'd
look at one of my coaches schedules and say okay we're going to do

7 00:06:00.000 --\> 00:07:00.000 90 minutes in the morning and we're
going to do 90 minutes in the afternoon and we're going to block those
times out so just like that we had eight hours a day now i have five
hours left what else do i want this person to do well i probably want
them to take the onboarding conversations with the new customers who are
coming in right this is a coach and i know that if we generate 10 new
customers a week on average then that's going to take five hours per
week which means i can block one to two hours a day for that and be
totally fine right so i might block now this is where availability
becomes interesting because if you just do it at noon every day the new
customers might not be able to make that time right and so i might have
uh you know slots on monday wednesdays and fridays uh at one time and
then tuesdays and thursdays at another time and that way it gives them
some uh different times to select from right but again we have our daily
activities uh now that you know for that coach is going to be the
fulfillment that's ongoing uh we might also have them do the nutrition
orientation which would be an hour or two hours per day right

8 00:07:00.000 --\> 00:08:00.000 so if we have an hour let's say an hour
per day so now we've got four of their eight hours that have been taken
now we've got four more hours that can be used by this person so now we
have options do we want this person to create content do we want this
person to do outreach do we want this person to uh gosh i mean whatever
i mean do we want to expand this person's capacity right so there's or
we would know that this person's currently at 50 utilization now if you
flip that and then think well maybe this person can take some of the
exit meetings right so this is uh maybe this person can take some of the
content now this is strategic questions not operational questions but
i'm saying this is how you structure it operationally it's like okay if
we're selling 10 people a week then we need to have uh 10 halfway
conversations where we're going to send them into continuity and then
we'll also maybe have transformation meeting which is the end where we
take the pictures and all that kind of stuff so we know each of those
meetings takes another 30 minutes each per customer if we know that we
get 10 new customers per week then we know that's going to be

9 00:08:00.000 --\> 00:09:00.000 another hour so 10 hours per week total
so that's another two hours per day assuming that they're working five
hours a week and so now we're at six hours per day of work all right now
that's if someone's being perfectly efficient i would still expect
people to be perfectly efficient because i think you don't you get what
you tolerate um and so that would be six hours a day for a coach now at
that point this coach is handling uh basically everything posts the
initial sale right they're managing the ongoing fulfillment they're
managing the onboarding activities for these new customers and they're
managing the back-end uh meetings with them uh to convert them into
continuity right and so all of these things put together uh would create
a role within the business and so my my my ask or my recommendation for
you is if you haven't done this activity it provides you immense clarity
in understanding what are the different activities that need to occur in
the business to make more money and then once you have the list of the
activities then you know how long each of the activities could take and
then the only

10 00:09:00.000 --\> 00:10:00.000 variable that will dictate um how many
of them you have is what your inflow is right and so if you know what
your inflow is and you know what your base of customers is and the num
and your attrition you can very accurately back into what a an ideal day
looks like for each of the roles within your business also the bigger
you get the more you will find inefficiencies where you're starting
these partial roles they're getting full-time pay for half-time work
right and so this allows you to be more efficient because you can say
hey i know you're only at 40 utilization why are you telling me that
you're too busy right now why are you telling me that i need to hire
another coach what else are you doing that is not within these
parameters now if someone then says well i'm doing this this and this
then it's like oh now either they'll be founded at things like things
that are useful and you know value producing or they won't be many times
they're not but that's not because the person who's who your employee is
doing this out of you know nefarious intentions they're not trying to be
malicious they're not trying to hurt your business it's simply because a
lot of people just don't even know it's

11 00:10:00.000 --\> 00:11:00.000 valuable right and so they they're
they're trying to work they're trying to provide value but a lot of
times they just don't get how like they just a lot of times they jump
into the bigger picture or why you're not having someone do something
right but if the thing that they're doing is is a core activity like i
gotta check in on these people i to add them to this uh it takes this
long to get the documents back or you know sometimes we have these past
password issues then you can see is this something that we can fix
operationally within an additional process or is it something that we
can um you know either throw out and then get this person to refocus and
then increase how much work they're doing by by adding more clients to
their roster etc and so um all this to say this is how i've thought
about operations is just in terms of activities and units of time and
then expected inflow and so based on those three variables of this is
how many people are coming in these are the activities that need to
happen and this is how long they should take then it allows you to
account for all the things that need to happen in the business and will
ultimately allow to have a more efficiently run shop now i guarantee you
that because of

12 00:11:00.000 --\> 00:12:00.000 the headline that i had operations for
dummies this will be one of the least listened to podcasts out there but
it is the reason that the people who make the most money make the most
money and i just cannot tell you like the amount of people who have
access who have tried to copy our stuff at gym lunch and and and are 1
10th 120th the size of what we are and uh guys just like it's it's the
boring work it's the it's the it's the rolling your sleeves up it's the
repetitive work it's the meetings and training your team on improving
how good they are doing the things that is ultimately the thing that's
going to propel a company and those things are based on culture and
tolerance of the leader and so um i just want to leave you with that so
if you feel like you're constantly overwhelmed and you don't feel like
you have transparency into what your people are doing you're like what
are they doing all day this is the activity that you can do that will
give you immense clarity and transparency to what their actions are so
you can also restructure the business to make the most money and also
find inefficiencies or additional tasks that you're not accounting for
that they are doing which are either revenue generating

13 00:12:00.000 --\> 00:13:00.000 or requirements or they're totally
worthless activities that they're simply doing because they just don't
know any better and so um highly recommend doing it and if you don't
know where to start the easiest thing to do is have your employees take
a time study all right so a time study is very simple you have an excel
sheet you have every 15 minutes of the day and then you just have them
write down what they did for each of those 15 minutes now they're going
to think that's going to take a lot of time you are never more efficient
than when you do a time study i probably every time i do one i tell
myself i'm going to do it again like forever and then i don't but but
you will literally be more efficient in your work than you ever will
because you know that you're being held accountable to it all right so
um it's like whenever layla and i need to go and take a close look at
apartment the first thing we do like these numbers aren't adding up this
feels weird this feels heavier this feels light whatever it is we go we
ask them to times today for a week and then we look at their activities
you can also very quickly see where there's right where people are like
ah responding to emails i'm like why do you have three hours of emails
is there something i don't know about how long does it take to reply to
email

14 00:13:00.000 --\> 00:14:00.000 how many emails are you getting every
day and so that's how you can start peeling the layers back and seeing
if someone's being dishonest which happens right and they're doing it
because they want to keep their job and i get that but that being said
it's not useful for the business and so um that is how if you want to
get a baseline of like okay well now i know what all the activities are
you can deem whether they're valuable or not and you can deem whether
you want them to keep doing it or whether they're expanding their time
uh sorry expending their activities to meet the amount of time that
they're supposed to be working all right so um that is my my quick uh
that's that's kind of my mental framework for how i look at operations
um and how to uh structure them for different roles within the company
is first look at the the outcomes that you want the activities you need
to generate uh that that outcome how long those activities take per
customer per unit and then you can extrapolate out based on the volume
based on the inflow what each role needs to do and then at what points
you will have breaking points where somebody will become overwhelmed and
you need to create a new role all right so um anyways i hope that was
valuable for you hope that made sense otherwise have a happy thursday uh
happy corona happy quarantine and i hope you are

15 00:14:00.000 --\> 00:15:00.000 adapting because you have no choice
but to do so otherwise all right lots of love catch you guys you
