Full transcript
0:00everyone Simmons here and in today's
0:02video I'm gonna talk to you about scale
0:05miss and debt and I'm gonna tell you why
0:11most people love scale and they want to
0:14scale and they try to scale and they
0:16they do scale but then why scale
0:19leads to a big mess that looks like that
0:23and then how really miss when it lifts
0:28unmonitored unchecked and lift in the
0:32state of a mess instead of being cleaned
0:34up turns into debt which is essentially
0:38having a better today at the cost of
0:39tomorrow and then with time we face
0:44tomorrow and when we face tomorrow
0:46that's worse than today then we have to
0:50you know look the monster a nice deal
0:53with it pay it and deal with the
0:56consequences of our actions and so
1:00recently you'll probably notice that
1:03last week I didn't make a video there
1:06was just nothing and then the week
1:08before I made a short one because I was
1:10real busy at work and so the reason for
1:13that and the reason why sometimes I
1:15don't make videos as consistently as I'd
1:18like to it's because I got a company to
1:22run and I'm trying to scale it and we do
1:25scale it and it always leads to a big
1:27mess there to always have to clean up
1:30and I also have to pay back debt and I
1:35don't mean the debt like financial debt
1:37sometimes it could be financial debt but
1:40there's many different forms of debt and
1:42I'm going to explain all of these
1:44different forms of debt to you explain
1:46how all of this happens how this is
1:50actually the the reason why most
1:52companies cease to exist because once
1:55you're missed and your debt takes up a
1:58hundred percent of your time and energy
2:00then you cannot innovate you can't make
2:05new products you can't improve your
2:07products you can't do new things and you
2:10can't seek and push new frontiers
2:13because a hundred percent of your time
2:15is taken by upkeep or admin or
2:20operations or just trying to tame this
2:24damn mess all right
2:26so I've got eight things that I want to
2:29share with you eight points
2:30let's get right to it and I'm going to
2:33throw in a couple of stories to explain
2:34this how this is being present in my
2:37life as well so let's get started now
2:46the first one is the first point that I
2:49have is that these things run in cycles
2:55it goes scale Mis dit cycle so it pretty
3:09much looks like this you've got scale
3:11happening that leads to a mess and that
3:15leads to debt right and when it you it's
3:26natural for this to occur by the way so
3:28if you want an example of this in like
3:32some other area of life right
3:34a prime example would be like body
3:37building we are when they're trying to
3:38scale which is basically like bulk up
3:40and get bigger they are trying it to eat
3:44as much as possible they call it like
3:46bulking right and when they're doing
3:49that they're not really too concerned
3:50about putting on additional fat right so
3:54they eat a lot of food and they do get
3:56fatter their body fat percentage goes up
3:59and they're not too concerned about that
4:01because they're mostly trying to get
4:03bigger they're trying to scale right but
4:06then what they do is when they get
4:07bigger then they go into a intercutting
4:10phase which is when they focus on eating
4:13like less carbs and less things that
4:16make you better and focusing more lot on
4:19different types of exercises to really
4:21bring down the body fat right and when
4:24you operate in this cycle of like
4:27walking cutting it sometimes is more
4:29efficient than trying to bulk and cut at
4:31the same time right because if you're
4:33trying to cut in like not edom at not
4:35eat as much food and trying to bolt it
4:39the there opposite ends of the spectrum
4:42really right now this is a real simple
4:44way to put it but this happens in
4:46business too like when you're trying to
4:48scale you have to move quick you have to
4:51make fast decisions and you have to be
4:53sometimes kind of scrappy and you have
4:55to cut corners here and there right
4:57that's all part of scaling if we were
5:00trying to scale perfectly without
5:02accumulating any kind of mess or or cut
5:06any type of corner then we wouldn't
5:08scale we would just maintain so that's
5:11the nature of scaling and then the
5:14correct thing to do after like a period
5:16of scale is to deal with that mess
5:18you've got to come in there and clean it
5:21all up sort it all out and often put in
5:24a new infrastructure or new systems or
5:27whatever to handle that new level of
5:29scale that you've experienced and then
5:31you come back to scaling again but what
5:34I see time and time again is a lot of
5:36people just scale up the mess builds
5:39then the mess Fester's they don't deal
5:41with it and then it comes around by some
5:44in the ass and it takes down the whole
5:47machine it takes down the whole business
5:49just both gone right I see it all the
5:51time and what you've got to do is you've
5:54got to pay back the stuff you've got to
5:56clean up the mess and so that's the
5:59cycle just like a body builder has to
6:01cut after bulking like in business
6:03you've got to you've got to scale and
6:05then clean it up right and it goes in a
6:08cycle right pretty simple now let's talk
6:11the second point about different types
6:13of debt types of debt so is financial
6:22which is just think of debt which is
6:25basically having a better today at the
6:27cost of tomorrow that is dead right not
6:30just financial debt we you Oh lots of
6:33money to your credit card or whatever
6:34it's having better today acosta tomorrow
6:36every time you do that you're
6:38accumulating debt so for example
6:41sleep dead let's say tonight I don't go
6:43to sleep I might get more work done
6:45today but that thing's gonna bite me
6:48tomorrow and on the aggregate I'll
6:51probably do less right so if I was to
6:54think long term probably best not to do
6:55that right you get the point then
6:58there's financial debt I might buy like
7:00a big-screen TV today with money I don't
7:03have on some credit card and pay off a
7:05lot of interest and then I'm having a
7:08better today at the cost of tomorrow
7:10right there is also product did this is
7:13a big one so really people forget in
7:16business that people buy like a products
7:18or services and generally because of the
7:20quality of the products or the services
7:22and how much value it adds to them in
7:24their life and quite often in the
7:26beginning companies a product focus like
7:29their try to truly make a great product
7:31and then comes the scale and the
7:34complexities and in before long with all
7:37of the management of the financials the
7:39management of the team the systems the
7:41communication the operations the admin
7:43the customer support and all of this
7:46crap that's going on right and trying to
7:49grow it and focusing on all this
7:50marketing and all these things the
7:53attention tends to go away from the
7:55product and on to just operations and
7:57when that happens you can't make the
8:00product better and then competitors
8:03around you are making their product
8:04better or people might be inspired to
8:07actually create a product out of
8:09frustration because your product sucks
8:12right quite often the new generation of
8:15products comes from users of products
8:18who were once satisfied that no longer
8:20are because their company stopped
8:22focusing on their product right so most
8:25companies breed their own competition in
8:27their own demise by forgetting about
8:30their product to the point that the
8:32users that were happy to pay the money
8:34now just have to they left with no
8:35choice but to build their own and
8:37overtake you right so I see this one
8:39happen all the time and you know what
8:42even inspired Google was Yahoo they just
8:46thought that it was ridiculous that when
8:49you typed in the name of like a
8:50president on YouTube on it sorry on
8:53Yahoo
8:54that it like didn't even work and they
8:57thought it was just ridiculous that a
8:59search engine didn't work so they just
9:01out of frustration they were just forced
9:03to build Google right so this happens
9:07product did is big and it's real and
9:09processed it right so in the beginning
9:12when you start a company you might just
9:14get customer support through to your
9:16personal email no problem at a hundred a
9:19thousand customers massive problem now
9:22you can't even go near your gmail
9:24account without getting like heart
9:26palpitations right so it might be it
9:29might work at a small scale but later on
9:31it doesn't function that way anymore and
9:33you need a bit of process or a bit of
9:35system you might need to put in a
9:37customer support system there's also
9:40talent did right so you might have
9:43talent at the thing that you're good at
9:45but then you might focus on running your
9:47business and looking after operations
9:49and then with time your talent tapers
9:51off and other people's talent ramps up
9:53and you're stuck in a situation there is
9:57also team debt right when you start out
10:00it's just you you add a bunch of
10:02customers to the picture and a bunch of
10:04time you get a Miss and now all you can
10:07do is just focus on the admin and you
10:09can't do the things you need to do
10:11anymore right and so there's also
10:15perception did so if you don't like
10:19focus on making sure that your marketing
10:23message is consistent and like driving
10:28the core values of what you really care
10:30about with your brand or if you don't if
10:32you if your customer support isn't right
10:34or the people that are interfacing with
10:37your customers in your market aren't
10:38doing the right job then you're building
10:42up perception did where the perception
10:45of the aggregate market your niche does
10:49not match the reality due to like
10:52communication problems on the front
10:55lines of your business right so all
10:57sorts of debt and you've got to monitor
10:59all of these things it's okay to build
11:01up a small amount of debt that's normal
11:03but you've got to pay it back before it
11:06gets gnarly
11:08takes you down right so the biggest one
11:12I probably see here the biggest one you
11:14guys probably used to and know a lot of
11:16is time debt and financial debt right
11:21like if you keep saying I'll do later do
11:23it later do it later do it later to all
11:25all of the things then later is going to
11:27come and then you're going to be
11:29right and that's what a lot of people do
11:32with credit cards and things like that
11:33to product debt is the biggest one I see
11:36in business right now
11:39third one is basically just a simple
11:42rule that did occurs when you have
11:50better today at cost tomorrow so
12:02whenever you're making a decision you
12:03want to think all right what are the
12:07pros and cons of this decision like what
12:10are my options here and then what are
12:13the pros and cons for each option and
12:15you want to run to time frame scenarios
12:18you want to run a long term and a short
12:20term right because some decisions like
12:23I'm no eating a salad or going to be it
12:26early wait they don't seem that great
12:28right now but longer term they're great
12:30and then you know eating a burger and
12:33having 10 beers and staying up till 5
12:36a.m.
12:37might seem quite great right now but
12:39doesn't seem that great later on right
12:40you want to you want to weigh these
12:42different options you want to look at
12:44pro and con short term long term for all
12:47options and then look at the goal you're
12:50trying to achieve short term long term
12:52and then you want to like shuffle
12:55between these different options here
12:56until you find the one that is most
12:58optimal for what you want to achieve
13:00right and you always want to consider
13:05this this basically is what makes people
13:09successful right is they're just very
13:12good at thinking about the long term in
13:14debt and there's actually a study called
13:17the marshmallow experiment and you can
13:18google it and what they basically did is
13:21they got
13:22bunch of children in and they presented
13:24them with two options one was have one
13:26marshmallow right now you get it now you
13:28can eat it or the second option was have
13:31no marshmallow now but wait a period of
13:35time which wasn't defined an unknowing
13:38period of time and get two marshmallows
13:41right now most children chose option one
13:44they had the one marshmallow now instant
13:47gratification right of course this is
13:49why people use social media so they most
13:53children to debt very few children chose
13:57to wait the period of time watch the
13:59other children eat the marshmallows just
14:02sit there and then later have their two
14:05right now they tracked those children
14:07after that experiment for the duration
14:10of their life and they tracked them on a
14:12basket of different metrics to see how
14:14successful they were from relationships
14:17family health and social life and also
14:20like financial success and happiness
14:22right they looked at all of these
14:24different things and by and large the
14:26children that delayed gratification and
14:29chose to wait the period of time and
14:31have a better tomorrow at the cost of
14:33today aunt I did those children were the
14:37most successful and really this is all
14:40the successful person is at its core is
14:42somebody who can delay gratification
14:45think long term and keep a clear head
14:50and not build up debt right
14:55so for debt kills businesses and the
15:07reason why it does this is because you
15:09can't innovate so all the business needs
15:17to do really is stay at the forefront at
15:21the absolute frontier of whatever it is
15:24that they do right now really for a
15:27business to do good it has to really be
15:29the best in the world at something right
15:30so you really want to think what is
15:32something that I'm really passionate
15:33about what is something that week
15:35be the best in the world ad and then you
15:38really want to get there and you want to
15:40do that's your main priority until you
15:41get there until people are like what's
15:43the best option for X X being problem
15:47then you would hope that your market
15:49would respond with this person's product
15:52right that's really all you need to do
15:55in business to do really well that's a
15:58lot harder to it's easier said than done
16:01so it takes all that if it probably take
16:04you years but I mean that's the best way
16:06to grow a business and that's been like
16:09my main focus with my company is just to
16:11have the best products for these
16:14different problems right and I know that
16:17we're there when people say this is the
16:19best product I've ever purchased for
16:20this or when people in different
16:22communities saying what's the best
16:23product for this and people say this
16:25right now it takes all of work to get
16:28there and you can't get there overnight
16:30and you can certainly make money in all
16:33of those things along that way along
16:34that path it's not like you don't get
16:36any reward until you get there but the
16:38reward is immense there and that's
16:41really what you should be focusing on
16:42right now how you get there is by having
16:46the best product the best service
16:47providing the most value now the way you
16:50do that is through innovation which is
16:52rethinking these things you don't accept
16:54like the status quo
16:56you don't just build a knockoff of
16:57somebody else's thing because if you try
17:00to copy this person at their thing then
17:02they're going to be better editor than
17:04you because they literally invented it
17:06right now the only way you can beat
17:08their person at their thing is if they
17:10start screwing it up which is very
17:12common right so you can do that but the
17:16the other way is to like innovate right
17:21and that's the main way and that is to
17:24rethink all of the assumptions that this
17:27person who is currently leading has made
17:29right you want to rethink that and then
17:33quite often there's a new paradigm or a
17:35new philosophy or something that comes
17:38in which enables you to make a product
17:41that's superior now to innovate it takes
17:43an extreme amount of attention energy
17:47time
17:48focus right it's a resource vacuum it it
17:52really just sucks it right up and that's
17:57how you achieve it so the only way that
18:00you can really stop innovating is when
18:03you're doing something else or you're
18:04just plain stupid right and you just you
18:06you have the option to innovate but you
18:08don't well that's just plain stupid but
18:12if the moment the main reason that I see
18:14people stop innovating is because the
18:18the admin and the operation starts
18:20taking up their time and they can't
18:22innovate it's not like they even have
18:24the option they want to but they can't
18:26right and so that's what did does over
18:30time I noticed this with my own company
18:32so I went from about two million dollars
18:37a year to like eighteen million dollars
18:38a year back in 2000 and I think it was
18:442016 2017 during those two years right I
18:47almost died there was so much scale all
18:50all of a sudden like and when there
18:53happened I was still one person my
18:56company was just me I worked from home
18:58and I did all my customer support I did
19:01my admin my bookkeeping my accounting
19:04like financials I just did everything
19:06made the products that the marketing
19:08made the ads made just everything did it
19:11all and it was fine it like 2 million
19:13year but then all of a sudden that we
19:15boom right up and it was it was that
19:20there was a big mess right and honestly
19:24thinking probably almost died at one
19:25point because I was working like
19:27sometimes just two days straight and
19:29then I'd crash and go to sleep and I was
19:31just trying to catch up on this thing
19:33and trying to like trying to win but no
19:35matter how hard I tried to work the mess
19:38was getting bigger and I was at the end
19:40of my biological limits but that that
19:45happens to people and when that happens
19:47my main concern wasn't really like about
19:50me not being able to do the work and get
19:54it done my main concern was the fact
19:55that I was spending all of my time and
19:57energy and focus doing admin just trying
20:01to handle
20:02poor tickets fix broken systems or just
20:05keep the machine running right and I
20:09knew that it was only a matter of time
20:10before somebody else and have out
20:12innovated me took me out that was my
20:15main concern and so the primary
20:17motivation for me to fix that situation
20:21and get end like calm that chaos right
20:25down was so that I could get back to
20:27innovating right and as a CEO or an
20:29entrepreneur you want to constantly be
20:33trying to push back on the operational
20:36complexity of your business and push it
20:39back and keep it restricted and
20:41constrained to a small thing because as
20:43it gets bigger the thing that it's
20:46eating over here is innovation and once
20:50it takes a big enough chunk out of
20:52innovation it's only a matter of time
20:54before somebody gets you right and by
20:57gets you I mean makes a bit of product
20:59or a service so that is why it kills
21:03businesses and so when I went from that
21:06to millions like 18 million a year it
21:09honestly took me about two years to fix
21:12all of that damage like I had every
21:16system I had was broken I was getting
21:18like 500 support tickets a day and it
21:20was just me and so I had to just block
21:24out all the noise and just work like
21:26I've never worked before I remember
21:27sometimes I was doing like 120 hours a
21:30week of work you should I do not
21:32recommend there it almost went insane at
21:35multiple points and I think I'd probably
21:37almost died and so in hindsight it was
21:41actually really stupid I should have
21:42just hired some people to help me a lot
21:44earlier but when you like I've said in
21:49previous videos when you get
21:50sleep-deprived
21:51you get delusional so I didn't even
21:53think that me trying to do all of that
21:55work myself was dumb because it was
21:58impossible like I wasn't in a rational
22:00state of mind to even be able to see
22:03that right and the reason I wasn't in
22:05that rational state of mind was because
22:07I was sleep-deprived in highly stressed
22:09and in an emergency situation right and
22:12so I learned from that experience don't
22:15get
22:16put in that position because you might
22:18think you're rational and smart now but
22:21put you when you get put into a
22:23situation like that it's hard to see
22:24clearly and so I spend a lot of my time
22:28thinking about how can I make sure that
22:31never happens again
22:32and I keep this thing this operational
22:35complexity to a minimum and keep the
22:39majority of my time 80% 90% free for
22:43innovation right that is the main thing
22:45I think about how can I run my business
22:48so that it keeps growing it has positive
22:52cash flow its profitable and it has
22:56great products but it's operational
22:58complexity and it's time demands from me
23:01personally are very small so that 80% of
23:04my time can be spent thinking about
23:07tomorrow not dealing with today
23:09right so most of my time most of what I
23:12do would be put into two buckets really
23:16one would be and this probably is 20% of
23:18my time would be like cleaning up messes
23:24paying back all sorts of debt I do a lot
23:28of that 20% the other 80% is thinking
23:31about tomorrow thinking about the future
23:33and building things that we're going to
23:36be using in the future so like planting
23:38seeds for future harvest right because
23:42the money that I'm making today is
23:43really the byproduct of work done two or
23:50three years ago right and you want to
23:52think like that too so I don't want to
23:55make a mistake of just trying to like
23:57just trying to skate on the work I've
23:59done three years ago without you know
24:02building for the future because that
24:03will come to an end right and the main
24:06reason that it will come to an end is
24:08because if this complexity comes and
24:10eats my time away I can't plant seeds
24:12for tomorrow harvest disappears so what
24:17do you do number five solution and I've
24:24kind of already seed this throughout
24:27this
24:28but you must be conscious of all of this
24:32and you must pay it back routinely so
24:37the first thing is just some kind of
24:38awareness right because you've got to be
24:41aware of debt better today cost of
24:45tomorrow just run that simple analysis
24:47on any scenario whenever you're in it
24:49what does my is my today better what is
24:52my tomorrow like and if today if today's
24:54asymmetric - tomorrow tomorrow's bad
24:57today's good that is dead do enough of
25:00that get yourself into trouble but when
25:04there's sacrifice today gain an
25:06advantage tomorrow which is basically
25:08the inverse of did that one is good
25:11right so that's a simple way to think
25:14about it
25:15so you need awareness of this thing and
25:21you also need to pay back routinely so
25:32by pay back routinely I mean you've got
25:35to go in some kind of cycle right now my
25:39business does a lot of this and it
25:42typically looks like this so in 2000 and
25:47I typically have like a year of boom and
25:51then let me think of 17 was yeah so 16
25:59was boom right 2016 for me was like 2
26:04million - like 18 million a year like
26:07that boom but then in 17 I was basically
26:12dealing with the shitstorm that I
26:14created in 16 and so I'm pretty sure we
26:18did not we actually went back a little
26:21bit to about like 14 or 13 million in 17
26:27not because we couldn't grow I knew how
26:31to grow I knew how to do that trick
26:33right just to spend more money on ads
26:35just keep pushing your foot on the gas
26:37but I knew that if I it keeps doing that
26:40it would
26:41would be an explosion and it probably
26:44wouldn't be very good for anybody so I
26:47just had to bite the bullet and deal
26:49with the the mess I made and all of
26:52seventeen I spent my whole 2017 just
26:55cleaning up the mess and what we did is
26:58you know I hired a lot of people and we
27:02put systems in place we built our own
27:04billet billing system we built our own
27:06elearning system because we had broken
27:09these other products we had to get
27:12customer support people trained them put
27:14customer support systems in place we
27:16also had to get an office and a general
27:20manager and create different like
27:23communication channels through slack and
27:26through like meetings and whatnot
27:28we IED to do all of this stuff to
27:30basically clean up the mess I'd made and
27:34then that was sixteen seventeen was like
27:40down a bit but then in 18 hours really
27:43excited because by the end of 17 I had
27:46built a serious infrastructure like in
27:4916 I was doing 18 million a one-person
27:55like million dollar a year
27:57infrastructure right just imagine my
27:59putting a Lamborghini engine in a Toyota
28:04Corolla right that's basically what I
28:07had done here and their thing was just
28:10it was not it was about to explode all
28:13right so then in 17 I made sure that we
28:16got like a lamborghini chassis to match
28:19the Lamborghini motor and that required
28:23me to go back a bit paying back the debt
28:26sorting it out but then in 18 and abled
28:29me to go up like this again and so just
28:34put in here if we were like 2 million
28:37[Music]
28:39then here was 18 million and then at the
28:45end of 17 were like like maybe like 13
28:49million or something which is back
28:51then here we got to like 34 million or
28:57something and this was in 18 right and
29:06then I remember and this is the hard
29:09thing to deal with when you're doing
29:10when you do this like sometimes you've
29:12got to make you've got to take a step
29:14backwards to make two steps forward but
29:17when you take a step backwards it
29:18doesn't feel very good because like
29:21you're used to winning and making bitter
29:23bitter bitter like all the time and
29:24everyone around you is used to seeing
29:26you like grow but then when you've got
29:29to like go back a bit to clean up the
29:31mess it's not as exciting and no one
29:33really is like all that it's just not a
29:36very exciting story it's not a growth
29:38story it's a person cleaning up a mere
29:40story which is not really you never hear
29:43about those stories right so it it's
29:46hard to do that like emotionally and for
29:49your ego too but the then you get to do
29:54something awesome when you've done it
29:55and I remember in 18 when we exploded to
29:58this level I remember a lot of people
29:59like whoa where the hell did this guy
30:01come from what did he do what is his
30:03magic trick and I was like man those
30:06same people just didn't they didn't
30:09really care or listen when I was
30:13cleaning up a bunch of for a whole
30:14year straight and so now they're trying
30:17to look at what I did in eighteen to
30:19figure out how I did that I was like
30:21it's what I did in seventeen that sucked
30:24that's how I got there but now we're in
30:2819 and I have another one of these
30:31messes to clean up it's not as bad it's
30:35a different means so this means here was
30:38like systems mess the systems that I had
30:42in the business like billing system
30:44support system just just all the systems
30:47were like broken and we had to build our
30:51own ones right that was what got us
30:53through here and we had to hire humans
30:55all right had to hire a team to like
30:58manage the systems but then in 18 we got
31:03to like fully exploit those systems
31:05but then at the end like in 19 must of
31:10the problems that came up were human
31:12problems not system problems and I had
31:17to learn how to better run a team how to
31:20like hire better talent and really how
31:25to deal with the human side of business
31:28more than the system side right and so
31:31all like towards the end of 18 and all
31:35through 19 I've spent most of my time
31:37trying to hire really telling to people
31:39trying to improve our team reduce it in
31:42size like to some core players and
31:46that's where most of my focus has been
31:48and so what I'm doing now in nineteen
31:51it's not the most exciting of work and
31:55we will go back a bit here on on revenue
32:00not that much but what we are able to do
32:03is actually improve profitability even
32:05though we're going back a bit on revenue
32:08we're able to improve profit because
32:10there's less waste because we're cutting
32:12a lot of costs instead of adding a lot
32:15of costs right and I'm also trying to
32:18reduce the demands that the operational
32:21side of my business places on me
32:23personally because at the end of 18 I
32:26had no time left at all why I had to do
32:30so many things that I had no time to
32:34create anything new and that really
32:36annoyed me because I knew that it would
32:39be screwed in a give it a year or two
32:41three max gone right so when to do
32:44something about it and so really a lot
32:46of my time this year has been pushing
32:50back on that I used to have zero hours a
32:52week to spend on innovation and planting
32:54seeds for the future now I have 80% of
32:58my time to do that so reduced back that
33:02and yep that sort of been doing so then
33:07will be able to take full advantage in
33:0820 of this new infrastructure right so
33:13there's an example of how to actually
33:17solve this thing
33:18and I know a lot of entrepreneurs are
33:20like worried about doing this like one
33:22step back to take to step forward thing
33:24honestly all the biggest jumps I've ever
33:26made
33:27like the big two to 18 yep that was a
33:30year of work like building
33:32infrastructure from 18 to like 34 one
33:36year of lame stuff but the lame stuff
33:40gets you the infrastructure and the
33:42Foundation's you need to erect that sort
33:47of like scaffolding to really handle
33:53that much scale right now what else have
33:57we got here be ok with one step backward
34:15two steps forward this is a big one I
34:24meet so many people who just cannot they
34:27cannot even consider doing that right
34:30and that's the reason why a lot of
34:32people don't get good at things or don't
34:36try or don't start a business or
34:39whatever because let's say they call it
34:42like the golden handcuffs right let's
34:44say you're a respected individual with a
34:46respected job earning a like a really
34:49above average salary right well you're
34:54quite happy in that position it's quite
34:55nice you can have a good lifestyle all
34:57of that stuff but if you were to go and
34:59start your own thing you're not going to
35:02be very good at it you're going to be
35:03everyone's going to question you like
35:05dude do you know what you're doing maybe
35:06you should get a job again and you're
35:09going to kind of suck because you're
35:10brand new with it no one's great at
35:11something like right off the bat and
35:13you're not going to make as much money
35:15initially so there's that and so you
35:19have to take a step backwards and most
35:21people can't do that but they always
35:24want the two steps forward but sometimes
35:27these things the step back comes before
35:30the two steps
35:31forward and then number seven was going
35:39to be stories of times I've taken time
35:42and to rebuild it and how it paid back
35:44immensely already told you those so
35:47stories so there was like the key ones
35:53was 16 was scale 17 was debt paying back
36:02a teen was scale 19 was like some debt
36:09paying back this debt was systems the
36:14stick was humans team infrastructure all
36:24right now if you look at this pattern
36:28here boom boom you kind of see what's
36:34going on right so you want to think
36:37about this awareness and pay back
36:40routinely kind of cycle and you want to
36:43think about this in your business right
36:46you want to keep tally like I always
36:47keep a long list of all of these these
36:50debts
36:50I've even got one with our product that
36:52I call detail did right which is all of
36:54these tiny little details lightly say
36:57you click on something and it just loads
36:58funny right I think that pisses me off I
37:01can't handle it so I have to write it
37:03down in the detail debt list but I don't
37:07want to distract our whole team to fix
37:09this little detail right now because
37:11we're trying to push a big initiative
37:13which is more important but I know that
37:16if enough of those small little details
37:18build up the product will suck because
37:20when it comes to products that's all
37:22about the details and you've got to keep
37:24track of these things you don't need to
37:26solve them all now
37:27but you need to keep record of them and
37:29then you need to have these payback
37:31cycles we we flush it out and this
37:35happens with building software too in
37:37technology this Tec did right the main
37:40the main thing that takes down like
37:43software companies is tic
37:44right there adding feature adding
37:46feature adding feature adding feature
37:48adding feature and they're going really
37:50well but then they're not updating the
37:53core or the infrastructure at the base
37:56of all of this right and generally
37:58there's some smart engineers if they're
37:59in here at all they probably left after
38:01some time because they keep screaming at
38:03the top of their lungs like we need to
38:06fix the core but no one wants to listen
38:08typically marketing does they want to
38:10keep adding features right because
38:11features are sexy and they make people
38:13go like oh so typically these engineers
38:17just do the that these people
38:19screaming at them and tell them to do
38:20they keep adding the features and with
38:23every new feature comes exponentially
38:26more complexity because of the complex
38:29interactions between all of these things
38:31right so then there is like a Black Swan
38:35event which is typically a complete
38:37meltdown or explosion and then out of
38:41there that dust emerges like a
38:43competitor that's better because they've
38:46been basically in the darkness building
38:49something better right so that is what
38:54happens when you don't pay back the debt
38:55so you got to think about it
38:57now eight is can I fit there
39:12my advice to you think long-term
39:29minimize upkeep now I call upkeep
39:37basically work that is required for a
39:39thing to maintain right so if your whole
39:43life and your whole day is spent up
39:45keeping then it's only a matter of time
39:48before someone gets you you not only
39:51need to keep the thing up and maintained
39:54but you need to make it not require so
39:57much of your time to stay up kept that
40:01you also have time to improve it right
40:04it's not enough to maintain we must
40:05improve to which some people can't even
40:08maintain and the reason why they can't
40:10even maintain is because the thing is in
40:13disrepair because they've accumulated
40:14too much debt there is if you accumulate
40:17too much of it it is impossible to pay
40:20it back
40:20right so you you're just screwed and in
40:24that case you've got to start fresh
40:25right so that's my advice
40:28think long term minimize upkeep and keep
40:31the thing up and a good way to really
40:34minimize this is this little acronym
40:39thing that goes like this can you see
40:46them yeah I could need so yagnik what
40:51does this mean I always think about this
40:54you ain't gonna need it the solution to
41:01a lot of this is yoga knee and you ain't
41:04gonna need it
41:04like you think about this fancy chatbot
41:06thing that's fancy everything there's so
41:08many fancy things out there and if you
41:10add too many of these things and then
41:14your whole life will become upkeep and
41:17when your whole life becomes upkeep you
41:18can't innovate and when you can't
41:20innovate you'll be gone with a bit of
41:23time so root-cause yogini you ain't
41:27gonna need it
41:28so that's basically it for today's video
41:31on scale mists and debt and how to deal
41:34with it and how to not be an idiot so if
41:39you liked it click the like button and
41:42if you really liked it click the
41:44subscribe button and I release the video
41:47like this once every week most of the
41:49time on a Tuesday and if you like this
41:52one you probably like the other ones
41:53also let me know what you think in the
41:55comment section below let me know which
41:58one of these appeal to the most or which
42:01one of these really is going to help you
42:03the most when it comes to your business
42:05in your personal growth and if you've
42:08got suggestions for future videos let me
42:10know in the comment section I'm going to
42:11be reading them all myself personally
42:13because I like to see the feedback and a
42:17lot of people's ideas and problems that
42:21they tell me about in the comments
42:22become future videos so you guys and
42:25girls shape the future content of this
42:27channel so thanks for watching I will
42:30see you in the next one soon