Summary

Improving Effective Hourly Rate (EHR) in Growth Phase 0:00

During the growth phase, entrepreneurs should prioritize client acquisition, retention, and profit over their effective hourly rate (EHR).

The perfect day income is the first solve, followed by time, but entrepreneurs often focus too much on EHR, leading to business instability.

Examples are given of gym owners living their perfect day while their business goes bankrupt due to insufficient income.

The value ladder concept is introduced, emphasizing the importance of buying back time at low-value roles and reinvesting it at high-value roles.

Upgrading the Team for Higher Value Roles 1:14

The benefits of upgrading the team, including moving to higher value roles and the importance of the value ladder.

The upgrade team section addresses common client questions about hiring good staff, creating careers, and freeing up time.

The concept of making the gym run without the owner is introduced, typically addressed in the Tinker program but included in the growth toolkit for gym growth.

The first section focuses on hiring new staff, with a four-step process: looking internally first, leveraging local talent, leveraging local knowledge, and advertising on paid services like Indeed.

Finding and Training Good Staff 2:26

The importance of having a hiring pipeline, especially in high-turnover cities, and the need for a continuous flow of talent.

The toolkit includes job descriptions, contracts, and job postings, but the most important module is training new staff.

The coach basic training course and the coach basic training teachers course are highlighted as essential for training new coaches.

The course is described as a major project that, once set up, can create an amazing coach pipeline, reducing the need for job postings on Indeed.

Creating Careers for Staff and Systemizing the Gym 6:28

The next section focuses on creating careers for staff, emphasizing intrapreneurship and the four nights model.

The importance of assigning dollar values to different roles and ascending the gym owner and coaches is discussed.

Career roadmaps and evaluations are introduced as part of goal reviews for staff.

Systemizing the gym is critical for consistent delivery, and staff meetings are important for communication and alignment.

Freeing Up Time and Leading Effectively 9:07

The final section addresses how to free up time, starting with the concept of leading oneself before leading a team.

The importance of journaling, recording thoughts, and organizing oneself is emphasized.

The value ladder is revisited, focusing on buying back time at low-value roles and investing it in higher-value roles like sales and marketing.

The golden hour challenge is introduced as a way to build the habit of doing work and achieving results, even if imperfectly.