MILLION-Dollar Maths: The 7 Numbers To Build A $1M Studio In 12 Months (Without Burning Out)

- I want to break down the exact numbers you need to get for 12 months to build a million dollar studio. Like this time next year, you could be in a million dollar business. Why did most studios never make it? - Always back to the operator and their ability to remain composed, even when the results aren't there yet. - Business is a magic, it's maths, it's unmodel. It's not about working harder, and it's not about fucking passion. Like you can't see passion on a spreadsheet. - Because it's so much easier to tap out to blame, to stop believing the long way is a shortcut. Otherwise, you're just fucking around doing what you think is probably and you ultimately end up in the same position. - Once you know how to market and sell, you'll never go to a million business. - You're no good to anyone if you go, "Oh, well, it's fucked, I'm fucked, and I may as well just give up." - No one saves away the million dollar studio. - Because the growth you need both. - You are the most important business in this label. It's your obligation to make sure you stay the fuck open. You can't just probe someone, a screening baby, which is your problem in your business that you haven't figured out. You can have two shit weeks, give me 50 weeks of this, and we're going to be celebrating youth in the million dollar market in 12 months, always. - All right, so if we're back, - What up? - Life update. Let's talk about your amount of updates. - Yeah, my most exciting, I mean, well, by the time people-- - We could be in Hawaii right now. - I think we're sipping on a my tie at this stage. - Wow. - Or we're looking-- - Or we're looking-- - Let's not-- - Extremely tanned and glowy, because we're back already. - That's massive, right? Let's not just gloss over that. The fact that we're in Hawaii when people listen to this or what we might have already come back-- - It's crazy. - It's crazy. - The Lohar 2025 has been my three-year vision that I kind of invented, imagined while staring at a fire on one of my solo studio retreats. And the fact that it's coming true, while I'm telling this into this guys, it has come true. I can't tell you how much it is so powerful. Like it is so powerful. And by the way, I almost died in the middle of it. There have been plenty of reasons why it couldn't-- like it shouldn't have happened. - Yeah. - Well, the time everyone listened to this I've probably been in blubbering mess. So I'm in Hawaii. We would have climbed Diamond Head at sunset, back to jerks, feed in the warm sand. 30 business owners have come over. Our core team, nothing better. Like the back page of the book said that, right? We're doing what we love with people that we love, four people that we love, nothing beats this. - Life doesn't get much better than this. - That's right, that's what it says. - It's mental. We had a completely different business back then. There was completely, probably different clients, completely different team. It's been, it's been a fucking journey. - It has been a journey. - What else has been happening for the people? - We've launched million dollar studio pro, MDS pro. - MDS pro. - Which is so exciting. So we've been talking about it for however long. And it was just this emerging need that we couldn't ignore any more from the owners that we work with who are already nailing it with the basics that we provide in million dollar studio, which is enough to get someone under management, 30% that profit. - Million bucks. - Whole thing. - Maybe those. - But for those who wanted to put the turbo jets on and go a lot faster and skip what we call the double dip paradox, which is when they start to build teams and their results might dip for a moment in time because they're becoming leaders for the first time and their people will learn that skill for the first time. Just to build a bridge to that to make sure that we weren't just building up the owners, but we were also working with their teams. And it was probably one of my highlights from, I know it feels like a month ago now, but it's been a highlight for this month because we did our first call. And it blew me away how much, even the people who were in that program you had to qualify for and be eligible. So many gaps within their team and their transfer of clarity from the owner to the managers, sales people, content people. It's just awesome to me because if you're already doing, well, this well, and that there's that many gaps. Imagine how the business is going to look and feel once we close them. The guys went over a whole bunch of advanced sales playbooks for hiring sales people. Like seriously, for off, big time. I kidnapped their managers and their poor team and took them into another room and said, all right, what do you KPI's? And how do you know if you've won the week, what's your role? - And when's the next 101? - And I love our people. And they're changing this now, but it was like cricket. So it was like, the fuck do you mean? Or it was like a manager with three KPI's, sales roll over his end retention. You just can't do that. - Yeah, but it's had an instant impact. So the like, this is our room for like manager school. I think it's an interesting first. - Yeah. - That exists within MDS Pro. Multies. Like for the multi studio owners, that like we're, I was a multi owner and you do it. Like you want a room to speak to that are multies. Like could multies want to speak to multies? - Yeah, well, you think about that double dip and building a team and KPI's and compensation and what the fuck multiplied. It just the complexity is multiplied. So yeah, definitely they're loving that. - The content room. So everyone, you know, a lot of them more advanced players have got content people. And so the question becomes, well, every single month, we've got a top 30 performers across our entire academy, which basically gives people a content playing for the next 30 days. But like pre-validated ideas, not just shit out of their ass, that it's kind of flop. - Also, I love seeing everyone bought in with the playbook that they're using in their business. - Oh yeah, you've got to bring your own. - Bring your own playbook to the call. And yeah, now everyone's kind of short-cutted, some of the heavy lifting there. - I spoke to Nathan, channel to Nathan, this morning from peak shape. And he mentioned that he was working on some stuff for his new side. And he reached out to someone else that he met in the pro room. And he, and then she provided him with like all the templates to think to ask the boy out, like, all this kind of fucking stuff, man. And it's like, that's what I'm talking about. That's what I'm talking about. The pro room, no one has to start from scratch ever again with the pro room. - Yeah, it's epic. - Yeah, I suppose aside from that as a continuation of what you were just mentioning, even just in MDS, I'm loving seeing the network effect of people, like everyone celebrating their fuck-ups of the week and getting around each other. - Okay. - There was also a, like, someone who failed at Mystery Shop, who then said, "Guys, on me, I fucked that up. "Can someone please help me roleplay?" And then they called each other and they were roleplaying. Like, it makes me so happy. - I just love. - Especially in an industry where, you know, it's lonely. Like, no one else gets it out there and you just run so late. - That's the biggest thing that I wanted to create 'cause I didn't have it. What else is happening in life? My Bronco's getting done. This is that, like, dreaming car that I got off the back of doing achievement road map, hitting milestone, looking at a fucking Bronco, bought the Bronco 20G's, brought it home, wasn't allowed to restore it yet, 'cause I put that on the other side of hitting a certain milestone, which we hear. And now it's in the shop getting painted. Like, I know first some people just like, just a paint job, but for me. - No, it means something. - It means something for all of us. We've been hearing about it for this long and we're like, so pumped for you. - Mr. Lucky. - Yeah, everyone asks about it. - New tat. - New tat. - I don't know, I'm just coming up with it now. Mr. Lucky. - Oh, I thought you was updating us that you got a new tat. - We might have also listened to this. I think we're all getting mashing tats in Hawaii. - So just see. - Do we get mashing tats in Hawaii? Just 'cause we're going to the future, you know. - I think we probably did. - Yeah, okay. So we're meeting, you know, we've been having these like free workshops every single month. Mainly for our podcast listeners. I want to bring you closer to us and just get us just ask me direct questions while I'm having a coffee. And I've absolutely been loving meeting listeners. So please, please, please guys. Like we are real, I am real. Next time we do one of these things, turn up. Next year, next year, in 2026, we're going to do road shows. We're going to John Martin for the road shows. We're going to get out there and that's going to get a van for us and we're going to paint it in that black. - Surely a bus not a van, like what do I say? - Then, no, we'll get bus. - Like an old school bus. - Yeah, that's more hostile. - Yeah, we'll do live podcasts out the back of it. We'll just go through the different cities, go to New Zealand, yeah, like Adelaide. We're going to get Adelaide. I want to go to Perth. Anyway, let's get the fuck on with it. - Let's do it. - So in this episode, I'm going to break down the million dollar maths, okay? The seven numbers, or the five to seven numbers that you need to know to hit a million dollar business in 12 months. Zero fucking fluff, okay? Everyone wants a million. Everyone that turns up to our front door, burn out fucking right on that line, where they can either do something about it, or if they keep going down this path, the inevitable is going to happen and then shut their doors or risk mental health. They all want a million dollar business, but here's the truth. These are the stats that we saw that we found this morning. Only something between five to nine percent of businesses make it to the mill. And that's not to say that the ones that do make it happy, they've got that freedom, they've got a dream team, right? We just, it might just be an accounting entry. - Well, yeah, that's what I was about to say, like if there is someone who turns up to our door and they're not, you know, in financial stress or kind of like on that edge, they might have a million dollar business, but they fucking hate it. It's not, it's not a real business. Because they don't have systems that don't have it under management. So same same. - And so in this app, I want to break down the exact numbers you need to hit for 12 months to build a million dollar studio. Like this time next year, you could be in a million dollar business, right? Run, right? Which is the 84k a month with our burning out. That's the promise, okay? Because the big idea that I want everyone to kind of grab onto is the fact that business is a magic. It's maths. It's a model. So it's not about working harder and it's not about fucking passion. And I'm all fucking out passionate most people, right? But passion doesn't fit in a spreadsheet. So I mean, the passion isn't one of the numbers, but you need to understand your numbers. You need to look at your numbers because that clarity creates that certainty, okay? And that certainty, that's what drives freedom. Well, I would say if you're passionate enough, then you should want to know these numbers so that you can do something about it. All right, I'm gonna start yelling shit out, okay? Let's go. So fucking pull over, start, bring, get your pencil out or your notes or something. All right, let me give you the numbers. Your calculator, that's what I need. Your calculator. Right. 21, 21 leads, seven sales. That's your sale a day. So 21 leads, the seven sales, and 80% roll over, which creates your five points. Right, that's your five memberships. That's gross. Minus, I'll give you a strict diet of two cancels per week. So that's five minus two equals your net three. Net three, baby. That's net three. I'll do that one more time for the cheap seats out the back. 21 leads, seven sales a week. 80% roll overs. So that trial to member conversions is 80% to create five new members of which you've only lost two members this week, which will give you a net three. Now, this is typically based off a 150 member studio 'cause that's nine times out of 10, people are in that 150 member trap. It was reasons why, but this is how to go from 150 members to a million dollars a year within two months. So that gives you a net three. You hold that net three for a year by 52 weeks. I'll even give you two shit weeks, right? It's a 50 weeks. You'll build a million dollars studio. And we call that net three internally, the green line. And it's such an underrated rate of growth because everyone's looking for this big number, but realistically and accounting for seasonal fluctuations. If you average your net threes, you've got a wildly different business. The whole program is designed with top gun ranks as an analogy, which is based on revenue levels. And if these guys just follow those magic numbers, they will get to a million dollar business, depending on where they start off. And yet incrementally, it's like, depending on where you're at, when you start, it's between like 350 and 500 K extra annualized. That your business is generating. If you think about what you could do with that kind of money, like pay yourself probably, it's crazy. - Well, I spoke to, I did for, for, you know, many showcases this morning on Riverside and every single person, they talked about, they'd take their family on a holiday, I go where, and I go, she's having a thought about it, I go, I can start thinking, right? Like, and these people were parents, so I say to them, when you found out you were pregnant, and you had a date, did you do something differently at home? Did you happen to like, did you paint a wall, pink or something, or any blue, did you, what'd you do? And they said, we prepared the house, it's like, yeah, you prepared like a baby room or something, right? Yeah, 'cause you had a date, right? Yeah, well, I'll give you a date. You've got a date, it's in 12 months from now. Start preparing. So where would you go on holidays? And I'm like, oh my god, okay, then we'll go to Bali. I go, great, next person. I'll go to Tonga, next person. I'll go to Sunshine Coast, like back to where they used to live. I was like, great. Well, I want you to put it up on that fucking wall over there. One person said, Portugal, right? Awesome. Yeah, to do a surfing trip, this was Courtney did a surfing trip in a van in Portugal, by her second studio's birthday. She will hit a million dollars to you. So I said, right up on the fucking wall, cheers, what should I write? I don't fuck. Try Portugal, Portugal surfing van life. I love it. The million dollar van, right? That's the model, that's the model guys. This is all per week. 21 leads a week, seven sales a week, which is the sailor day. 80% rollovers of those sales turned into members, which means five new members a week, minus, I'll give you a strict diet of two people leaving a week. That gives you your net thread. You do that for 12 months straight. You've got a million dollar business within 12 months. If you do that 12 months straight, you'll be on the million dollar run rate within 12 months. Why do people fuck that up? Before I get to that, the success is in the sequence. There is an order to this. You don't try and do all at once because you're aware. About to ask. If these guys are sitting there going, that's awesome, but multiple of those numbers, I'm just off run rate with, where do I start? I feel you're overwhelmed. I'll tell you. How do you respond? I'll tell you how to fucking make money first, right? The first devil you're going to have is a money devil. That's level one. You need to build a sailor day system. You've got to sort out those that we need. Unblock your lead flow to get those leads cranking. We've got to get those leads to 21, so that you can have a 30 to 40% conversion rate on those 21 leads to give a sailor day. That's the first thing we'll do. You have to learn how to market. You have to learn how to sell. And that is a life skill. Once you know how to market and sell, you'll never go hungry again in business. So that's the first thing. Then the next thing's going to happen is you're going to have to figure out how to crank your typical trial term member conversion rate from that 20 to 30% to 80s. That is what you'll then focus on for the next three, four, or five months to perfect that. And then eventually you're going to have to figure out or use the playbook how to make sure that you're only losing maximum two people a week. That is a strict diet, which is how our studios are only churning 23% a month. Then that will create the right environment for you to have the net three. Now, there's a sequence to not judge, 'cause if you do that in reverse and you just try to look after your rollovers, you're not getting enough people through the front door yet. Or if you try to focus on your sales, let's make sure we get that lead flow through. So that's the order that you do it. The success is in the sequence. We've done this 1,500 times. If you get it out of that sequence, if you do it out of that sequence, it's almost like putting your sock on after you put your shoes on. - I've just been reminded of two kind of rhymes that you always used to say the first one being, if you're not growing, you're dying. So therefore you can't just focus on your attention and save your way to a milling dollus shoe. - No one saves their way to a milling dollus shoe. - Because for growth, you need both. You need the acquisition and you need the retention. For someone, if they were, actually I'm gonna add to that as well. It's yes, the success is in the sequence. It's also in for these guys installing it and they've got to prove it themselves. Like when I think of any of our businesses who have hit a million dollar run rate or are going to, it's because they have solved a problem in their business for themselves installed the system, then offloaded it. It's the install to fix or unblock constraint and then the delegation part of it. That's the real sequence and it's in the order of constraint based on KPI. - Let's put a little bit of Tabasco on that. Let's put a little bit of hot honey on that. It sounds pretty simple, right? - Yes, it's simple, but it's not easy. - So why did most studios never make it? - I believe that the consistency of hitting those numbers, not just doing it once and then never again, and the willingness to continue to solve each problem comes always back to the operator and their ability to remain composed and stay committed to the sequence even when the results aren't there yet. Because it's so much easier to tap out to blame, to stop believing when like there's no other way, you can't, the long way is the shortcut. Otherwise you're just fucking around, you're not doing things properly and you ultimately end up in the same position. - The more I can, the biggest lesson I've had in business is that the success of your business is directly correlated to your ability to sit with a problem for long enough to figure it out. The owners that are consistently skipping across surface level execution, they can't handle their emotional resilience around business problems or they can't even tell the difference between a real problem and just a project. There's a difference between problems and projects. - Say more on that. - You could really just like, at any one time, you've got the biggest problem in your business and the biggest problem in your business is your only problem in your business right now. So whether it be like, if you're out on any of those numbers that I've already mentioned, you typically start from the top, okay? If you're not getting 21 leads a week of high quality avatar specific lead flow for a paid offer, that is your only problem in the business right now. And you've got to sit without long enough to figure it out, long enough to figure it out. Not throw your hands up, not blame the fucking economy, not blame HQ, not blame us, not blame the meta. All the ads, you've got to sit with that for long enough to become the person that deserves the million dollar business. Right? It's a test. All these numbers are a test to save your worthy of having the trip to Portugal to take your family of seven to Bali, to deserve all the things that you said you wanted off the others. Like everything we want is on the other side of solving these fucking problems. I've got more numbers by the way, but these are the main KPIs. And also knowing there's never not going to be a problem. Totally. Now a project in my world is like upgrades to something that's already working. They're like projects to upgrade something that's already working. So I think that's a big thing is like, they can't sit with the problem for long enough. And I just think it's the whole type of main thing of trying to take a tutorialist or whatever it is. Again, when we speak to the people that like get through it and they build million dollars studios and when we've asked every single fucking one of them, do you remember the first time you open up the school portal, like we're all out, where all our playbooks are? What was your first thought? They all said, holy shit. And they all went through it overwhelmed. I said, it was so wide in your stop. And they said, because the pain of staying where I was, losing money every single month. If I stayed here for another six more months, I'd be burnt out and my business would be shut. The pain of being there in six months' time is knowing the pain of watching a few videos after work. So they said, we're just fucking, we just got the thing done. It's that ability to kind of realize the difference between, the whole like, choose your heart. - Yeah. - It's that choose your heart part. The other thing too is, I think why people never make it is they fail to build a team. And we say this all the time, right? Like, the week owners, I'm gonna be a little bit raw here. It's like, it's time to build it right. And I was listening. The week owners, the ones at one are just like, all right, I did a VRP session with someone the other day. I'm not saying when, I'm not saying who. And I put these numbers on the board. And by the way, they've been stuck at a hundred and thirty after age, blaming their fucking HQ, blaming this, blaming that, blaming the fucking landlord, the economy, I was like, guys, and I wrote up on the white board, I wrote down the HQ's name, I wrote down the economy, I was like, I don't, if anyone says any of these fucking words, you're doing burpees. Like, I don't fucking care. 'Cause you've been at a hundred and thirty, and it's not their fault that you can't find lead. So when we wrote the numbers down, 'cause what you gotta do is you gotta write it, you need to write the numbers down, which is the what. And then next to it, you gotta write down the who, right? The how we've got the how. And then the when is when you catch up as the leader with each of the who's and coach them up on hitting the watts. So when I wrote down the 21 leads, I said, well, who's owning that? And this client says, this person, I was like, ah, and this person who got back to the front of the bar. So I said, on a conference level out of, oh, so I said, how confident are you to be able to do this? And she goes, a three. And I said, is that out of five or out of ten? She goes, whatever. And I said, wow, I said, have you, has anyone, so have you seen as manager? No, no idea. And I looked at you and I said, that was a piss take in front of everyone. So I told you, if you're going to bring your team, I'm going to be unfiltered, like it's going to be, it's going to be a tough day for you. That is a piss take. Like you can't do that. You can't just throw someone a screaming baby, which is your problem in your business that you haven't figured out yet. You've got to sit with it for long enough to figure it out, right? And then you can offload that to someone else so that you can coach them up if they're off track. Otherwise, you're basically making your outsourcing, you're outsourcing your responsibility as a business owner to like, to grow it, like to market your business, to a casual who literally just walked in the front door and he's going, you should, it gets me, like it actually makes me mad. I hate when people make up, like that person will turn up to work everything with every single day, thinking they don't want a shit job. And they're a bad person. That condition was created onto them. And I just fucking hate that. I hate that. So figure it out, then offload it. Figure it out, delegate, then elevate and work on the next task. So they fail to know how to do that. Too many times they just kind of like offload the problem to the new kid. Is that fair? Yep, absolutely. See it all the time. The third thing is, even though we've given these numbers and a fucking spreadsheet to track them on, they refuse to look at it. Yeah, the good old, I didn't do my numbers this week 'cause they weren't very good. Those numbers I said to you at the start, they're the numbers that you need to hit every single week, or we're going to figure out how we get back to hitting those numbers. I don't care about feelings. Like, I have feelings and business is going to be hard. It's going to be tough days and there'll be tough weeks, but we can't not face the numbers. We've got to judge our software that we've won the week or not. That's the biggest difference between people that can actually face the fucking facts and face their fears is like, did I win the week or not? If you didn't win the week, you're not a bad person. You are not your business. Sometimes I need to give permission to people to hear this. It's like, you are not your business. If we didn't hit our forecast, I'm not a prick. Well, I am, but it's not because of that. These are just problems that we've got to solve. It's that these guys make the success or failure mean something about them as a person. And actually, I've been listening as an aside to a book that's really interesting about how a lot of the time people who are perfectionists, they don't actually try properly because their whole life, they've associated the success and their success with them being talented rather than their effort. So if they've been, oh, you're so intelligent, you're so good at this. You're such a high performer. They will ultimately not try as hard because then if they put real effort in, it's kind of taking away from them being talented. Whereas people who have been praised on their effort will always find a way because they have a growth mindset that they can always get smarter and they can always improve. So they don't make it mean something about their talent and then them as a person if they don't succeed. It's just I can try harder and I can be successful. That's one of our family values with the kids. Like, hand doses never give up. We always put in a hundred and ten percent effort 'cause I don't know if you're gonna lose but if you lose, you're walking out. I really do believe that there's a lot of that with our guys is that they immediately go, well, I'm a failure and I'm a ship business owner and I-- - Spiral, spiral, spiral. - Instead of just going, you know, that was a really good lesson and there's a skill gap here that needs to be-- - I can see where, you know, I can see. And just think about everything in business is an experiment. - Or a puzzle. I like how you gave me that analogy. It's just like a puzzle we need to solve. - Or why did you need to hear that? - Because, well, ultimately, it's not about me. It's about what's in front of us here and so you can keep thinking about you or you can make it about the problem. - You relate to what you're doing? - Absolutely. Like, there's a reason why I'm reading that book and relating to it. I was always told, I'm so-- You're so intelligent, you're so talented. And it's interesting in the book's called Mindset. It's interesting to notice where I fall into fixed mindset, still, even, and where I'm growth-minded, but how our beliefs about what we do and who we are really shape than how we show up and respond to problems. I think everyone should read it if you can relate to what we're saying here. It doesn't mean that there's something wrong with you. It's just like, oh, that's actually refreshing 'cause now I can be in more control of how I feel about different problems and the work that I'm doing. Because you're no good to anyone if you go, oh, well, it's fucked, I'm fucked, and I may as well just give up. - So in terms of the numbers and as a sort of a metaphor for everything you just mentioned, you can't fix what you don't face. We talk, you know, our theme for this year, what's our thing? - Turning pro. And so it was a hard launch with all the numbers that turn up at our separation season summit, which was on a scale of one to fuck you, it was about a million. And we talked about the three different people that, oh, I should put, yeah, we talked about the three different people that wake up every single day at the amateur, the semi-pro and the pro. The only, they've all have the same fears, but the only difference between the pros and everyone else is that the pros have decided, and that's the first thing it's a decision, to stop running away from those fears. And that decision has to happen every single day. You don't just stay pro. You've got to choose to go pro mode every single day. Those three people is actually the same person, 'cause we have those three people in us, every single morning when we wake up, you know, do I stay in bed, do I hit the snooze, do I stay into the gym, but just post yesterday's photo, or do I actually get my ass up out of bed and head to the gym because 100% say do. And it's in those moments where we keep those promises to ourselves, especially when no one's looking, especially when no one's looking, is where we start to build that self-confidence. - Yeah, and on the flip side, when you start doing things you know you really should shouldn't be doing, it grades on your confidence because you aren't who you say you are. It reminds me of, I think I've said it before, quote by Carl Jung, it's like, "until you make the unconscious conscious, "it will rule your life and you'll call it fate." - Hmm, or coincidence or something. - Yeah, you've got to face it, whether it's the numbers, or where you're not being pro, where you're dabbling, where you're not going deep enough, where you're kind of skimming the surface on things, or maybe you just need to like look in a little bit longer and have some patience instead of questioning everything the second you don't get results. - This is the next thing. So there are other reasons why they don't, why they, even though I give them really clean numbers, they get stark or they don't get there, is because they operate emotionally, not strategically. And we always talk about the fact that with 1500 studios, for over 10 years, with weakly numbers, we see a lot of data, a lot of data. And the biggest thing that we see separates, well, the biggest thing when we ask the question of, well, what's set the ones that make it, to me, $1.00 a year as a part of everyone else, it's not the plane, it's the pilot. But just because you bought the plane, it doesn't automatically make you a pilot, and broke people that their emotions fly the plane. - You spoke about Courtney before and she's such a great example of someone who has had huge success. And it's because she's followed the sequence, right? Like she figured out her lead flow. She was a lucky one who had too many leads and then she had to get really good at selling. She figured that out herself. Then she was rolling people over. She had to start hiring. Now she's installed what we call the dual converter formation. She's getting a VA as well. It's, she's following the sequence. - Two South people. - Do you think she didn't feel like holy fuck when she was in the double dip, like she was? I was there with her every single day. - She had panic attacks. - Yeah, she was struggling. - She told me this morning. - You know, like she was questioning it, but she still followed the plan anyway. And now she's in this position where she hit, she hit 200 members, like two, two and a half months before she forecasted doing so less than a year into business. She's got a team around her now. She's honestly like, she's incredible of what she has been doing. And it's 'cause she's, she does track her numbers. She's done that every single week and she checks in and she did not feel like we're not saying, turn the emotions off now, you know, 'cause we're realistic. It's just not using that as your decision-making compass. - Correct, yeah. If you think I don't want anyone to think like, you go, follow me for a week. You'll see if I've got emotions or not. Like I've got emotions, man, I'll fucking, I cry before anyone, but also, and I'll ask, you know, would it, would it surprise you that I might get a little bit frustrated sometimes? Have I ever been frustrated? - Yes, all the time. - We talk, we talk internally, we talk about the signal, right? Like we talk about the strategy, the signal, the forecast. Like we're always solving problems in the business. We're not, you know, one week of bad leads, we're not all of a sudden throwing out the rule books and just rewriting our entire strategy, which is like sometimes we see that right for the ones that, oh, it's terrible. - And it says in a minute. The reason why it's terrible, even the ones who are seasoned, sometimes motherfuckers, you guys know who you are. - Yeah, yeah, yeah. - The reason why it is so bad to do that, it's like, it's almost negligent because you will feel the effects of that for weeks to come. You fuck around with your ads or you turn them off when you shouldn't and you just like leave it up to Jesus. It's like, now your pipeline's empty. And in another month's time, you're gonna have no net growth because your pipeline doesn't exist. So the on-floor of that will be felt for weeks to come in your business. You just can't be doing that. - There's actually two more numbers like the, 'cause I said there was seven numbers, so I'll get to them in a second. But I think the other thing too is, so that's probably the third thing they'll operate emotionally, not strategically, as a composed pilot. And then the fourth one is they burn out before they build out, which means they don't get the head. They don't listen and follow the instruction to, before they go too far down that rabbit hole of the new thing that they've just figured out, they don't see the bigger picture in Zoom out and then, and actually build a system, like install a system. So instead of them just doing it, they don't install that, they don't do the next part, which is like, now leave a system behind and playbook, like sit with it for long enough, take them space and actually like film the videos, build the playbook and then get someone else and then build the team out. So they build out the system and they don't build out their teams. So they basically have solved it, but they won't let go. And it might surprise our listeners that we know you are control freaks. You may struggle to delegate, maybe you just haven't been taught how to delegate or maybe you've had some negative experiences that have just reinforced this thing of slide. So you told ya, fucking no one else can do this better than me. It's like, no, no, slow down. There's a delegate properly, right? Like show me the system. Show me the time in your calendar where you train your people every single week. Show me, show me, you can show me the time you train for high rocks. Yeah, show me, show me, oh, this perfect. Okay, at this video, I'll be session that I did the other day. My favorite game is a 32-1 game, right? 32-1, right? So I said, all right, everyone, 'cause you decided to bring this team. All right, everyone, this is what we're gonna do, right? I'm gonna ask a question and I'll throw it to you and give me an answer. I'm gonna go, all right, ready? Am I ready? When's your team meeting? Three, two, one, and then, and then crickets. I was like, oh, so no team meeting. I was like, so you invited me up here. Ask me, ask, how you build a $1 million studio and do like a rebrand, and you don't even have fucking team meetings. So, so they, like, these are the things they don't have in place. Now, we have in the Academy, obviously like a management OS that we help these guys install in their business. We've, proper onboarding, you know, a hiring funnels, team meeting and genders, one-on-ones. KPI leadership, how to build a high challenge, high support, culture, performance-based pays. Performance-based pays, and the only three things that every single person needs to build, like to be in a high-performing team. What's expected of me? Am I going against those expectations? And what the fuck does the future look like for me? So, team handbooks, vision books, happy days. Like, that is how you build a million dollar. So, that's, that's what happens. And I think it is probably one more thing. It's like for those that play the stock market, right? And me, I'm not the Savius Investor from a shares point of view, I like property, but I still, you know, for the kids later on, I put a little bit of money that heads into the stock market every single month and like just on ETFs and bits and pieces. I spoke to some on the other days, one of my best mates, and he knows a lot more of that shit than I do, so we have like coffee all the time about this. And I was like, what's the biggest, what is the biggest mistake people make when it comes to the share market? And he said, he goes, they don't take a 30-year horizon on investing in shares. They just see their money sitting in the account in the NAV trade or the CompSec account, and it hasn't really grown that much above the principal so like we're about what they've been shipping in every single month. He goes, the real fortune is made in the last five years. Well, that's been the compound really kicks in. It's not the first 10 years, it's the last five years. That's when it goes from like and then it's that hockey stick growth. Like they talk about compound interest being like one of the natural wonders of the world. Like that, it's the same thing here. They stopped before the compound kicks in. - So fucking true. - They stopped before kicks in. So they may change it for three weeks and they fucking quit before they stack the results. You know what it's like? Like membership revenue needs to stack. Like if we think about the clock of the year, the reason why I may and September and sorry, the reason why I may and like kind of October November or the biggest months is not because something, it's not because of like Friday happening in November. Like it doesn't like, it's not because something happened in May. It's because of the three or four months prior to that. The membership revenue stacks. It compounds. But that didn't happen that day, haven't for the effort you put in last December. One of the things that we talked about is the Avatar 550. You don't ask one person. - Oh my God, seriously. Someone said the other day. - Right. - They go. I asked 20 members, the Avatar 550 questions and they're all this person should I change my ad? - Yeah, you didn't finish this, I'm it. - Is 20 members, 50 members? - Yeah, you're literally 40% in. It's like running a hundred meter race, running 40 meters a gallon, it doesn't work. It's like, you stopped. - Yeah, it's the biggest misconception I think I see, especially early on with studios is marketing and generating leads is usually not if you're solving it for the first time in your business properly, it is usually not a silver bullet. Sometimes it is and the lucky bastards can launch and get hundreds of leads. And I'm happy for them, but for most people, it takes time like you're making an educated guess with the research you've done, but it's just your opinion until you get data. And it might take one, two, three sets of data for you to finally start to get to the source of truth. You've got to be okay with that. Otherwise, you will just stay stuck. It's like, cool, you can give up, but you've still got the same fucking problem. You can, you know, or you can continue down this path that is working incrementally, but don't give up and pull out just before all of the money gets made. - And I, like, we aren't giving them a massive hug, right? - Of course. - I'm hugging the microphone, it's weird. This is me hugging you guys, okay? We're being hard on you because we see your potential. I'm fucking stirring down camera one, I think. Like, we see your potential. Like, I see too many, but like, almost burnt out business owners that we've turned around and think fuck, they did something about it. And it was all them, they did the work. They needed the how and they needed a size 13 up there as most of the time. But fuck, the freedom they get to enjoy now. The amount of days they get to surprise their kids that pick up and take them to Yoshi, just gonna fucking Thursday for no reason. Like, the presence that they can have with their family now and the fact that they've got new problems now, so the guys said this morning, like, I've got new problems now, but like, they're still problems, but fuck, these are much better problems than how do I pay the electricity bill? Not at their business at my home this month. - Yeah, well. - Right, so like, I love these problems as what they said. Like, and the problems are like, we're at capacity now. How do we move to a different site? And like, the new problem is like the landlord. And like, it's just, it's, I just, we've got to wrap this up 'cause we're going on in a bit of a fucking hot minute here. But I just, to build a million dollar business, to hit the million dollar run rate in 12 months, just comes down to those five numbers that I've mentioned. - What about the bonus, too? - Now, there are two more. - Ooh, yep. - Number six is, 'cause you could, you could do those five metrics on your own, but you'd be pretty fucking busy. And you're not gonna be having a lot of fun. I did that. I did that. You're not gonna have a lot of fun, okay? So you got to replace yourself from these five elements by building your five person dream team, which would be a segment. Like, we'll do a separate episode of this. And then so what happens is, you need another metric to know if you've done that properly or if you're doing that. It's almost like a leadership metric. How well you're doing as a manager and as a leader of that business, and that is LAR. There's your labor efficiency ratio. And we want that between two to three. And I know, oh no, that's how they're going with the Fussy talking, yeah. Great book by Stephen Crabtree called Simple Numbers. It's how we run our business. We know that if we're two to three or above, like we're for something now, is you're running a profitable business and you are getting productivity out of your labor, right? Which is ultimately the productivity is the prequel to profit, right? So, even if you're running a five million dollar business right now, or multi operation, hear me on this, if you're on tracking LAR, you are definitely missing out. Reach out to me and ask me, hey, Todd, those are LAR, right? That tracks whether you're doing that properly or not, whether you've built a team properly, whether you're leading effectively, whether you're having tough conversations, whether everyone's got KPIs or not. That tells me, I get like when I look at investing in other business and I look at businesses, we can basically, like across any industry, LAR is that number where we can tell whether that business is running properly or not. Now, by the way, and the catch is, it is a formula which I won't get through now, the use GPT, but that's after loans are paid off and everyone's getting paid properly. Then I want to track LAR, okay? That's financial health of the business based on productivity of the labor. There's a seventh number, number of hours in the business. Forced, not optional. If you want to get down to the 930 because you love them, it's an option and you can, happy fucking days. But if you're the fucking phone call that's still the cover if two trainers are sick, that's not a freedom. - You will hate your business if you have that obligation. - Yeah, so number of hours in your business, right? If you've actually worked out how much you are worth right now in your business and you've worked out what your real hourly wages, we'll do that in the second episode. When we do the dream team, we'll do the real hourly wage situation. It's a fucking eye opener. So if we want this guy to win, right? - Absolutely. It's all we think about. - These people, you people out there, we love you guys because your businesses, we heard it in the episode with JP, like your businesses are the most important businesses in any community out there because mental health, physical health, that's like wellbeing and the community. We all need a third space. So let's all stay open and not just survival mode. Let's fucking thrive because the more successful your business is, the more legacy and impact that you can have in your communities. And it's your duty if you're an owner of one of these health and fitness businesses or wellness businesses and studios and all this kind of stuff. And you realize that you are the most important business in this neighborhood. And it starts by hitting these numbers every single week for as long as you can and to sit with that discipline to like know your numbers, hit these numbers. And give me 50 weeks, you can have two sheet weeks, give me 50 weeks of this and we're going to be celebrating you hitting the million dollar run rate in 12 months or less. And then we'll celebrate in our next overseas event. Maybe not Hawaii, but maybe we'll be. - Joe, I wouldn't normally do a heart-so-tear. But if this episode fucking resonated with you and you're willing to put the work in, you think you can get through a little bit of an other one at the start while you're learning your shit. But fuck me, you believe in the fact that you, you are like the most important business in the neighborhood. And you really want to build a million dollar studio, run rate within 12 months or less. Definitely reach out to me on Instagram or personally have a quick chat with you. Message me at what is it? A.doza on Instagram and message MD/MDS has a million dollar studio. Dash podcast. So I know you've come from here and I'll give you a quick buzz and then I'll pass it on to the same. But we just want to help as many people as we can man because we want we, you guys are the life changes, okay? You guys are the life changes and we want to change the lives of the life changes. So together we can make the biggest impact we can in the world. - All right. - See you next episode, fam. - See ya. - Love yous, bye. - Thanks for tuning into today's episode. If something resonated with you then do one of two things. I'll deliver a view of send this episode to her mate who's in the industry who might need to hear this. But if you want more right now, because you had not been spinning and you're like, all right, those are what the hell do I do right now? Then in the show notes, you'll find a link to where you can book him for a free 15 minute checkup on your studio. We'll be get to have a look at how you're going right now and where some of the kind of quick win opportunities are to get you moving faster. I can't wait to be back in your ears next week. And if you're listening to this right now, I want you to know that I love you. I appreciate you. I'm grateful for you and I'm in your corner. You are on the right track and I believe in you. So keep going and I'll see you next week.