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How to Use AI to Win in Business | 1 Hour of Alex Hormozi — Transcript

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0:00But Open Claw and Clawbot are just kind
0:02of blowing up everywhere right now. What
0:04do you think about it so far? And what
0:05do you think will be the biggest impact
0:07on business owners?
0:09>> I think it'll separate the business
0:10owners who decide to be more tech
0:13enabled than the ones who aren't. Um,
0:15you'll realize that anything that you
0:16can do on a computer, it can do.
0:18Obviously, there's some safety concerns
0:19in terms of giving, you know, an
0:21autonomous robot access to whatever you
0:23want. Um, and there's been tons of case
0:25studies of people like going wrong. But
0:26I think by and large
0:28you you often risk more by not adopting
0:31new technology than fearing the
0:33potential downside that a small
0:34percentage of people experienced.
0:37>> Do you have any experiences you've had
0:39with business owners where they needed
0:41to adapt to technology to advance and
0:43they just chose not to and they for
0:45business? So
0:47the only time you need to adopt
0:49technology is if every other person in
0:51your space has the technology and you
0:53don't and as a result can price
0:54differently than you and so they price
0:56you out of the market so that you can no
0:57longer do business. That's rarely the
0:58case. There's welders right now that
1:01only do fax machines. Like there's a
1:02piece of gym equipment that I got from a
1:04guy who literally responds to Instagram
1:05DMs and he he texted me a picture of his
1:08checking account to get a wire. So like
1:11you can absolutely make money with
1:12significantly less technology. It's just
1:14that you're less efficient than the
1:15people who do. And at the highest levels
1:17of the game, it's going to be where it's
1:18the most competitive. But you can still
1:20make money because the tale, the long
1:22tale of of people adopting technology is
1:24very slow. Like AOL just stopped this
1:27year.
1:29>> How much money can you make without
1:31adapting to technology?
1:32>> You can still make tons of money. It's
1:33just that you probably won't make as
1:34much as you would if you adapt to
1:36technology. I mean, what is technology?
1:38It just gives you more for what you put
1:39in. So if you do something and you do it
1:40really efficiently without technology,
1:42you would just do it more efficiently
1:43with technology. But you can still beat
1:44people who are not as good as you
1:46without technology.
1:48>> That makes sense.
1:50>> But if you're competing against somebody
1:51who's as good as you and they have
1:52technology and you don't, they will win.
1:55>> What are some of the things that annoy
1:58you the most about AI?
2:01>> Um I hate two things about AI. One is
2:06that I think it is making people dumber
2:07because they are choosing not to think
2:09and they are letting AI make their
2:10decisions, but then they have no context
2:13into why decisions were made to begin
2:14with because they weren't the ones who
2:15did the thinking. The second is that I
2:17hate that so much of the world has
2:19almost immediately become AI slop. Like
2:21every caption on Instagram, uh I mean
2:23thank you messages that I get from
2:25people, people leaving testimonials,
2:27like it's just AI slop. And the biggest
2:29thing you can detect with it is force
2:31negation and staccato sentences. meaning
2:34it's not this or this or this but that
2:37or it's not because this it's because
2:40it's because this is this is this is so
2:42they'll do this repetition of sentence
2:44structure and it gets really really
2:46annoying and so most times you can take
2:47a paragraph of that and just turn it
2:48into a sentence of like what the [ __ ]
2:50are you trying to say and then just say
2:51that.
2:53You've mentioned it a little bit in this
2:55shoot, but what kinds of businesses do
2:57you think are going to succeed because
3:00AI is so prevalent and people get tired
3:02of it?
3:03>> I think the businesses that will have
3:04disproportionate returns are ones that
3:06are very opshing
3:08agency, for example, that heavily
3:10introduces AI, there will never be a
3:12lack of businesses that want new
3:14customers. The difficulty with scaling
3:16that particular type of business is the
3:18operational drag and the headcount and
3:19the coordination of people. And so if
3:21you can have something that has amazing
3:22product market fit, which is get more
3:23customers for somebody, there's lots of
3:25demand there. Um, but do it in a way
3:27that allows you to scale the ops so that
3:29you have increasing margins and you have
3:31less complexity that becomes incredibly
3:32valuable business. So people heavy ops
3:34heavy businesses that are largely
3:36digital, those are businesses that will
3:38that will benefit the most.
3:40What are some things that you think
3:41haven't been popular? Like kind of this
3:44you talked about live streaming for
3:45example like as AI as fake becomes more
3:49prevalent real becomes more popular.
3:52>> Can you speak on that a little bit
3:55at least in choices of content choices
3:57to do brick and mortar choices to do
3:59community?
4:10I think AI scratches a human itch but
4:14doesn't fully satisfy. And so instead of
4:16having real relationships, we have porn.
4:18Instead of having real friendships, we
4:19have social media. And so it's these
4:22these diet coke versions of what we
4:24actually want. And so I think there's a
4:28going to be a barbell experience of
4:29everything is truly fake and on the
4:31other side people want super real. So
4:33there's tons of gen alphas and genzers
4:35who are like switching back to flip
4:37phones because they're like they want to
4:38disconnect to this. There's people who
4:39are like want like the demand for
4:40ranches and moving out in the middle of
4:41nowhere has gone up. And so I think
4:44there's a percentage of people that are
4:45rejecting it or rejecting for a portion
4:46of their lives and there are people
4:47leaning into it. And I think reality
4:49will probably be a blend of these two
4:50extremes. I think the middle is where
4:52businesses will suffer.
4:53>> Like you have to know which which which
4:55game you're playing.
4:57Alexar
5:02>> a mile wide an inch deep. Sorry. Go
5:04ahead.
5:06>> On the topic of AI, people is more fear.
5:13>> Can you ask the question again?
5:15>> So people not adapting to AI or their
5:18business. Is it more fear or
5:20complacency? I think it's I think it's
5:22complacency that they use the like the
5:25the reason is complacency the excuses
5:28fear.
5:30So people are being lazy but they use
5:32the legitimate reason of being afraid
5:34that it could do something to their
5:35business. What if it deletes all my
5:36emails? What if it deletes all my
5:37customer records? It's like sure but
5:38like are there would you want to take
5:40the next step of trying to figure out
5:42how to isolate it and give it clear
5:43guard or else to make sure or decrease
5:45the likelihood that it happens? Yeah,
5:46probably. But people don't do that
5:47because it's much easier to just be
5:48like, "Well, I heard it's not safe." And
5:50you're like, "Oking,
6:01what kind of person should not start
6:04business
6:07if any?
6:19I think business self- selects for
6:21people who should start and own them. So
6:24I think many people want to have a
6:26business and the ones who do not have
6:28them should not have them because if
6:29they should have them, they would have
6:31them. You learn the things that you have
6:33to do to build a business and if you do
6:35them, you build a business.
6:37>> What's one of the skills that you had to
6:40learn? Believing that you have to be
6:42born with it is just a way to excuse
6:44yourself from trying. Real quick, if
6:47you're a business owner and you are not
6:49growing as fast as you'd like, I'd like
6:50to give you a free gift. So, my team and
6:52I put together the $100 million scaling
6:54roadmap, which is basically 200 hours of
6:56us looking over all the portfolio
6:57companies we've had and what stages of
7:00growth they went through and more
7:01importantly where they got stuck and how
7:03they got past it. And so we broke it
7:05into these 10 stages and we made this
7:07little kind of quiz thing where if you
7:08put in your business information, it'll
7:09tell you where you're at and the most
7:11important part for you, what to do for
7:13each of the functions of the business
7:14across product, marketing, sales,
7:15customer success, recruiting, IT, human
7:17resources, and finance. And so no matter
7:20what you're struggling with, someone
7:21else has already struggled with it and
7:23solved it. And so I'd like to give you
7:24this thing absolutely free. You can go
7:26to acquisition.com/roadmap,
7:27plug in your business information, and
7:29if you want us to actually help you
7:31deconstrain the business and you're
7:33trying to scale, we'd love to help you
7:34out on the thank you page. You can just
7:35book a call with my team and we will
7:38look into the business, see if we can
7:40help. And if we can, we'll invite you
7:41out to Vegas and we'll do this in person
7:43live.
7:44>> What's one of the skills you had to
7:46learn or a way you had to change in
7:48order to support your company as a
7:49group?
7:50>> Well, I'll just start at the beginning.
7:52I had to be willing to have people who
7:54disagreed with my choice, including my
7:56colleagues, my friends, and my family.
7:58And so, most people cannot get past one,
8:00two, or three of those. And so, they
8:02just stay stuck.
8:04So, I mean, the first thing you have to
8:06do is be willing to be disagreed with.
8:10And I think you also need to be willing
8:12to look cringe because you will be
8:15cringe because you've never done it
8:16before. And so, it is a prerequisite of
8:18doing something new that you will suck.
8:20And so many people are afraid of sucking
8:21and as a result they continue to lose
8:23because they never try.
8:26>> A lot of ambitious people often ask
8:29>> is it it's um
8:38losers stay losers because they are
8:40afraid of losing
8:43so they never try.
8:45>> Fear of failure.
8:47>> Fear of starting. Yeah.
8:49What was it? Next one.
8:51>> A lot of ambitious people say that they
8:53have trouble making friends.
8:55>> If you are doing exceptional things, is
8:57it inevitably hard to become friends
8:59with people?
9:01>> [sighs]
9:01>> I think that your frame uh I think
9:05you're
9:11as you achieve rarer things, you will
9:14have less overlap with people who have
9:17not achieved those things. And if the
9:19vast majority of your time is spent
9:21achieving those rarer things, you'll
9:23have a smaller selection of people who
9:24share that experience. That doesn't mean
9:26that you can't talk about football or
9:28talk about family or talk about
9:29relationship because many people have
9:31all of those things. Um, but if you want
9:34to be friends with people who like the
9:36things that you like, then you naturally
9:37are going to have a smaller subgroup.
9:41>> How did you choose the people that you
9:42keep in your circle?
9:44>> I just always think, does this person
9:45help me become the person I want to
9:46become? Do they get me closer or
9:48further? If they get me closer, then I
9:50want them closer to me. If they get me
9:52further, I want them further from me.
9:55And I don't think that's I don't think
9:56that's binary. I think that that happens
9:58naturally over time.
10:03>> Talking about the people in your circle,
10:05what is your favorite thing about your
10:07life?
10:07>> I think Leila has more fight in her than
10:10most people I've ever met. And so like
10:13she will just keep going. And so she
10:16will like she will fail, she will get
10:19knocked down, she will have pain, she
10:21will suffer, and then she will just
10:23continue to try again. And so she just
10:24doesn't have a lot of give up in her.
10:27And I have a tremendous amount of
10:28respect for that.
10:33Patience,
10:36empathy,
10:44poise.
10:46I'd say those are probably the three big
10:47ones that if I had to
10:50pinpoint are like probably the three
10:52areas that she had that I have grown the
10:54most of as a result of being married to
10:56her. Like I am more patient now than I
10:58was. I'm more empathetic than I used to
11:00be. I'm more poised. Um, you know, I
11:03would say like high emotive situations
11:05than I used to be.
11:09>> What do you think?
11:14>> Teeth.
11:16When I met Laya, she just wanted to like
11:18save the world.
11:20Um, and so
11:22it's yin and yang. It's like you need
11:24both. It's like you need you need you
11:27need somebody who's gonna like you need
11:28good cop and you need bad cop. It's the
11:30Indian gang. And so I think like the the
11:33beauty is in the middle and I think it's
11:35it's a dichotomy to me to it's a d I
11:38think it's a dichotomy to be managed not
11:40a problem to be solved. I don't think
11:41anyone's perfectly in the middle and I
11:43also think perfectly in the middle is
11:44not really a thing because different
11:46sides of you need to come out at
11:47different times. And so I think that
11:50she's probably had more aggression as a
11:53result of being with me. Um I think
11:56she's become more direct as a result of
11:58being with me. Um
12:05I think that she's been able to draw
12:06boundaries better because she's been
12:09with me.
12:11So like selfless selfishness like if
12:15there is nothing left for me to give
12:17then I will be able to give less and so
12:19I have to draw these lines so that I can
12:21net give more over a longer period of
12:23time versus get overused and overgive in
12:26the short period.
12:29>> I actually think we both learned that
12:30from each other. We both were like
12:31overgivers in the beginning and just got
12:33like taken advantage of a lot and so we
12:35both kind of like I think we both kind
12:36of protect each other from it. Like he's
12:39trying to take advantage of you or
12:40whatever. He's he's overstaying his
12:41welcome and this guy's trying to kind of
12:43he's got an angle and we both kind of
12:45see it and Ila has a phenomenal judge of
12:47character. She's in our in our 10 years
12:50she has never been wrong about anyone
12:53which is wild.
12:55I've been wrong about plenty of people.
13:00>> Mhm.
13:02>> How do you feel?
13:09I think it's being okay with delay and
13:11non-response. So if I and also
13:13distancing like I had a conversation um
13:16two days ago with somebody that I see as
13:18a friend, but because of some um
13:21behaviors that they found permissible
13:23like within their presence, I was like,
13:24"Hey man, I just want to let you know
13:25like I'm still homies with you." I was
13:26like, "But I can't have this around me."
13:28So I was like, "So I'm just making you
13:29aware. We're cool, but like you can't
13:31sit at my table anymore." And so it's
13:33just like like but like it's I've done
13:36that so many times now that it's not it
13:39doesn't even feel personal. And I think
13:40that I've been able to deliver that news
13:42like I've just gotten better and better
13:43at saying it. And so it's like to be
13:45clear I'm not blaming you. You can make
13:46whatever choice you want. I'm good with
13:48it. It's just that like these are my
13:50lines and this is no longer acceptable
13:52to me. But if it's acceptable to you
13:55[ __ ] by all means. And so to like
13:58that same degree, it's like if you if
13:59like if someone
14:03like like I will judge someone by the
14:07company they keep, you know, like and
14:10there's to be fair there's a difference
14:11like if you are taking care of your
14:12sibling who's a heroin addict. That's
14:15very different than like I voluntarily
14:18choose to have to be all surrounded by
14:20drug addicts in my life. And I'm like I
14:22mean again your choice, do whatever you
14:24want. I just don't want that in my life.
14:25And so like I won't be friends with you
14:27because I know what you bring with you
14:28and I don't want that baggage.
14:31>> You believe you are the same people that
14:33you're
14:35>> I think that your environment shapes
14:37your behavior more than anything else
14:38does. And I want
14:42my behavior to be as frictionless as
14:44possible towards the outcomes that I
14:46want. I want to be I want it to be easy.
14:49I want it to be as easy as possible.
14:50Work as hard as I can on the things that
14:51I find meaningful.
14:53How do you structure your environment to
14:55do that? Just like small things that
14:57people think about.
15:00>> I think everyone gets this wrong.
15:02Structuring the environment to maximize
15:04your basically time on goal is about
15:07removing everything that's not on goal.
15:09So it's not like what are the 20 hacks
15:11that I have. It's really just what are
15:12the 20 things I removed so there was
15:13nothing left but the thing that I needed
15:15to do. And I think that works digitally.
15:17That works physically. It's like like
15:20you want again perfect focus means that
15:22you do literally nothing besides the
15:23task that you need to do. And so
15:25anything that is not that is by
15:26definition less focused. And so if I
15:27want to be more focused I have to remove
15:29things not add things.
15:32>> It's not this, it's that. It's not
15:34success. It's revenge.
15:35>> Not me. Not my
15:38>> Yeah.
15:41>> U pivoting a little bit just as an
15:43opener. Is there a founder or business
15:45you've looked at recently where you have
15:48found what they are doing or how they
15:49are moving inherently interesting?
15:53>> I mean
15:56I think Elon's doing a pretty good job
15:59launching a zillion satellites into
16:01space trying to generate power directly
16:02from the sun because it's five times
16:03more efficient and you don't need to
16:04have a battery. So like that makes a lot
16:06of sense and they're cheaper to send to
16:08space uh the panels themselves because
16:10you don't have to have all the weather
16:11because there's no weather in space.
16:12Like that's great first principles
16:14thinking and being able to vertically
16:16integrate that with AI that then
16:18generates two phones because he has
16:20Tesla that can make the robots and the
16:22phones like he can go full stack from
16:24literally like the sun to people's hands
16:25and he owns the entire value chain like
16:27and in order to think of that business
16:29model and having called that shot like
16:3230 years ago and he's been working if
16:34you look at his earliest interviews
16:35towards this one goal for that entire
16:37period of time like yeah that's
16:39impressive.
16:40>> Is there a story because there's a lot
16:42of stories that come out about Elon. Is
16:43there a story to remember that stuck
16:46with you in terms of what you learned
16:47from it?
16:49>> Well, I mean my favorite like actual
16:51thing that I have learned from Elon
16:55business-wise is his kind of algorithm
16:57which is question all requirements,
16:59delete the unnecessary requirements,
17:01optimize what's left, uh accelerate
17:06and then automate. And so I would say
17:08tactically applying that algorithm
17:10everywhere has been like very tactically
17:11useful for me. Um
17:14so I think the the biggest shift that
17:18has to happen for business owners in
17:19terms of hiring new talent in the age of
17:21AI is shifting from rolebased thinking
17:23to workflow-based thinking. And so we
17:26put out job requirements the way we
17:27normally would and usually there's like,
17:29oh, we need an X. But the thing is it's
17:31the titles matter significantly less and
17:32less as so much of a role is really just
17:35like a circle with six or seven
17:38workflows this person is interjected
17:40into, right? Rather than like roles and
17:42responsibilities and like timeliness and
17:44whatever the hell people would put in
17:45there. Fundamentally, it's like I need
17:47this person to plug into these six holes
17:49in the business and these six holes
17:51actually represent these workflows. And
17:52then to what degree does each of these
17:54individual disparate workflows can be
17:56automated? And so everyone, every
17:59business owner at this point should be
18:01able to draw their business in terms of
18:04workflows of inputs and outputs rather
18:06than this is an org chart. And so this
18:08is the shift between you know 2026 or
18:112025 thinking of people in seats and ter
18:15and entering into the 2030 frame of uh
18:18raw inputs and outputs that are
18:19valuable.
18:24What's your name?
18:28>> Uh, my entrepreneur Mount Rothbar.
18:30>> I would have
18:33was it four faces?
18:35>> Yeah. So, I would have Elon Basos.
18:38So, yeah. So, I'd have Elon, Jeff Bezos,
18:41Warren Buffett.
18:46Actually, I'd probably have Elon Musk,
18:49Jeff Bezos, Charlie Munger. I've learned
18:52more from Charlie. Um,
18:55who's number four?
19:02Rockefeller
19:04be my number four.
19:06>> Why?
19:08>> Savage.
19:10And um from his letters to his son, I
19:14learned one of the important lessons for
19:16me, which was the reason I'm such a fan
19:18of Rockefeller is because of one very
19:20important lesson that I learned from the
19:21letters that he sent his son, which was
19:23he tells a story of how he was the
19:25second largest oil producer and he went
19:28to go try and buy the largest producer
19:30and the guy like rebuffed him a bunch of
19:32times every time he tried to buy and
19:34then finally he was able to get a deal
19:35done and he, you know, he way overpaid
19:38for this facility.
19:40And the guy was laughing at him saying
19:42like, "Well, you know, you're an idiot.
19:43I can't believe you paid this much for
19:44my business." And then the next 30 days,
19:47he did something like 24 deals. And the
19:50reason he was able to do those 24 deals
19:51is because once he was number two and
19:53bought the number one, he had such a
19:55significant part of the market share
19:56that he was able to say he was number
19:58one in the market. And with that story,
20:00he was able to do 24 more deals that
20:02were significantly more lucrative. And
20:04so what I learned from that was the
20:06value of the story. So there was the
20:08price of the assets in the business and
20:10then everything that he paid in excess
20:12he paid to do one thing which was to be
20:14able to say that he was number one so
20:15that he had the leverage in the rest of
20:17the negotiations. And so it was really
20:19shifting from this like I have to get an
20:21amazing deal in every single thing I do
20:23which happens across business all the
20:24time to taking a step back at the global
20:27outlook of like battles and wars like
20:29I'm willing to lose battles to win wars.
20:36>> Speaking of entrepreneurs.
20:39I was watching the social network
20:40recently. You seen that movie?
20:41>> I have
20:42>> where Saver gets cut out of, you know,
20:46his shares get diluted.
20:47>> Um, Eric and I were actually talking
20:48about it because I was like, well, he
20:50wasn't there.
20:51>> If he had been there creating value for
20:53the company, what would be the chance
20:55that his shares would have been diluted?
20:57>> Do you think in most cases in life,
21:00>> you can avoid bad outcomes by creating
21:03value?
21:04Well, I think his stake is like 11
21:07billion now. So, he's done okay. Um, and
21:10the reason Savin was able to get paid
21:13was because he did the one thing the
21:14other two guys didn't do, which is that
21:15he took on risk. So, he was the one who
21:17paid for it, and it was his LLC, and he
21:19was the one who capitalized the business
21:20and risked money. And so, many people
21:23had had claims to Facebook, but when you
21:25write the check and you take the risk,
21:27it's something that no one can take away
21:29from you. And so I actually see a very
21:31different lesson from that which is he
21:32who takes the risks holds the leverage.
21:34And that is why he was able to get such
21:36a significant chunk of the company. Um
21:38and so in a world where all human tasks
21:41can get automated by robots and AI, the
21:44last bastion of value that a human can
21:46have is they can choose to take on risk.
21:54perspective on risk.
21:57>> I think that risk I mean there's books
21:59and books written on risk but
22:02I think risk is largely misunderstood by
22:05most people because they see the
22:06downside as exaggerated and the upside
22:08is minimized is that they extrapolate me
22:13failing into death and isolation that no
22:16one will ever want to see me or love me
22:17again. um and they truncate what they
22:21believe is possible because they can
22:22only see the two feet in front of them
22:24based on their existing vantage point.
22:26But like once you start climbing the
22:28mountain, you get a better perspective
22:29and you start seeing what is possible.
22:30And so I think one of the the big gifts
22:32of entrepreneurship is that one, it is
22:33the best process of personal
22:35development. And two, the more you
22:37accomplish, the more you realize you can
22:39accomplish. And so you can set your
22:40sights higher, not from like a ever
22:42moving goalpost perspective, but a how
22:45much more impact can I have that I
22:47didn't think was ever possible when I
22:48started this journey.
22:51And so if you're judging whether it's
22:53worth to climb Everest based on the
22:56first 20 feet and you think I could die,
22:59it's a very different bet versus seeing
23:01the top of the mountain. and maybe
23:03you're going to have harnesses and hooks
23:04and chirpas and the likelihood you die
23:06might be there but it's significantly
23:07lower than you think.
23:10>> What's one of the risks that one of the
23:12bigger risks you took that was a turning
23:14point for you early on in business?
23:16>> The biggest risk I ever took was
23:17starting the first gym by far. Not even
23:20close. um signing a lease for $300,000
23:24when I had I mean
23:27$50,000 saved up and I had never run a
23:31business before and I had never gotten a
23:32customer before and having to pay $5,000
23:34a month in rent with no clue of how I
23:37was going to pay it and it was due in 14
23:38days. Like that was by far the riskiest
23:41thing that I ever did. And the only
23:43reason that I took that risk was because
23:44I was so ignorant. Like I wouldn't
23:46advise anyone to take that risk. And I
23:48only took it because I like I like by
23:51the grace of God like figured out in
23:54that 14-day period how to make it work.
23:57And I made the exact amount of money
23:59literally $4,72. I still remember it. Um
24:02was what my rent cost. And I made that
24:04exact amount of money in the days that
24:07it took like to the dollar. I didn't
24:09even realize it until after the fact. To
24:11the dollar. And then I remember all my
24:13rent disappearing and then having to do
24:15it again for the next month and
24:16thinking, man, real estate's not a bad
24:18business. [laughter]
24:21Um, I was like, that guy just made
24:23literally every dollar that I made off
24:24of this last [laughter] month and he
24:26didn't do anything. Uh, except he took
24:28the risk of owning the building.
24:32>> Do you think there's value in ignorance?
24:40I think that there is value in ignorance
24:43in that it lowers your action threshold.
24:46And so in a lot of ways, many
24:48entrepreneurs start saying like, "We
24:49didn't know what the hell we were
24:50doing." And it's like, "Of course you
24:51didn't because it was the first time you
24:52did it." And the thing that you have in
24:54common with every great entrepreneur is
24:56that the first time you do anything is
24:58the same way they approached it too,
25:00which is that they hadn't done it
25:01either.
25:02>> So they don't you don't have an you
25:04don't have an inherent disadvantage.
25:07is one of your favorite memes. Why is
25:09that?
25:12>> Because it's kind of like Pareto's
25:13principle of like there's 8020 and I
25:16think the Midwick meme just appears
25:17everywhere. Like there's so many like
25:21you know I want to start a restaurant.
25:22Well, just make sure the food's good and
25:24it's not too expensive. And then in the
25:25middle it's like inventory and staffing
25:28and like all this stuff. In the end it's
25:29just like just make sure the food's good
25:30and that it's appropriately priced. And
25:31the same thing for you know fitness.
25:34It's like, "All right, just eat protein,
25:35lift more weights, you know, pick good
25:37parents, right?" And then in the middle,
25:39it's like set schemes and rep schemes
25:40and, you know, underating purization and
25:42like hypertrophy and cycles and blocks
25:43and blah blah blah. And at the end,
25:44you're like, just, you know, try hard
25:45eat protein and pick the good pick right
25:47parents.
25:47>> You think the next decade?
25:51>> Really good question.
26:03It's really tough. I think short-term,
26:05long term. I think short term, yes. Long
26:07term, maybe not.
26:11>> So,
26:14I see technology as something that
26:16increases the value of one human and
26:18decreases the value of all humans.
26:22>> So,
26:26if one person has a god robot, right?
26:30Then that god robot makes that one human
26:32significantly more valuable. But it
26:34makes the value of every other human
26:36less valuable. Whenever a robot can do
26:40something that a human can do, it means
26:41that when that human does it, it is less
26:42valuable than it was before, which then
26:45forces like, well, then it forces people
26:46to learn. I'm like, yeah, but if we take
26:47the equivalent, which is that it was
26:49once valuable and is no longer, the
26:51technology made the human labor less
26:53valuable. And so that only works until
26:55it can replace all labor. And then money
26:58will still have value but not labor. And
27:01that is where we get into a tricky
27:03situation.
27:05>> What do you think is going to happen to
27:07college and traditional schooling?
27:09>> Oh, I mean who [ __ ] I mean college is so
27:11it's like I mean I think that like
27:15college makes absolutely no sense. Um
27:18and I and I' I haven't been as
27:20aggressive about that in past. I've been
27:21like well it kind of depends. But that
27:22was like four years ago when I made that
27:24you know my first college video. I would
27:26say with the advent of AI, it has
27:28there's there's two things that have
27:29made college significantly less
27:31valuable. So thing number one is that
27:33the education that you get at college is
27:35for sure inferior now to free
27:37alternatives. Like that that was like
27:39maybe arguable and is now definitive.
27:41Like an AI tutor that can teach you
27:43whatever you want in real time is more
27:44valuable. On the other side, from a cost
27:47basis, it for sure doesn't [ __ ] make
27:49any sense because you can get a better
27:51thing for less. So like now there's that
27:52part. And so then the only thing that
27:54people make the argument for for college
27:56is that it forces networking for people
27:58to who are in lower who start with lower
28:00socioeconomic status to network with
28:02people with higher socioeconomic status.
28:04Um that is maybe the only thing but I
28:07mean like there's platforms like school
28:08and whatnot that can bring communities
28:09together. But the last piece is like
28:11okay well do you have higher earning
28:12power which is is literally just not
28:14true anymore. Like you don't have higher
28:15earning power as a result of being a
28:16college graduate. And so the value
28:19proposition is just is you don't get
28:21more educated. you don't get better job
28:23prospects. It costs money and take
28:25longer.
28:28>> And I think that that has just gotten
28:29more and more extreme in the past four
28:31years. And I think that that will
28:33accelerate. Like if you're if you're 18
28:36years old right now,
28:38there's very little point in saying, "I
28:39want to become a doctor."
28:43Like by the time that you graduate eight
28:46years from now and then you finish your
28:47residency 10 years from now, whatever it
28:50is, like there will be surgical robots
28:53and diagnostic robots right now that
28:54they will just they that will literally
28:56beat humans at everything. And we can
28:58say whatever we want. When it comes to
28:59health, I think people are going to be
29:00like, I would choose human, but I'm
29:02going to choose the thing that gets me
29:04to die less.
29:05And so yeah,
29:07>> if you were to make a new structure for
29:10the next generation of 18y olds that
29:12would replace college, what would it
29:13look like?
29:18[laughter]
29:25um
29:26>> meet people.
29:27>> Yeah. Yeah. Right. Um
29:33I actually think what Joel Lyman is
29:34doing with Alpha School is really the
29:37much better version of what education
29:39should look like, which is two hours a
29:40day of kind of quote formal study, which
29:42is AI tutor driven, which is learning
29:44based on the style of learning of the
29:46human, and then six hours a day of kind
29:49of real life skills and social skills,
29:50which are far more applicable. And even
29:52in those two hours a day, they advance
29:54at twice the speed at 98th percentile.
29:56And so it's just like the old system is
29:58broken. Joe Lyman thankfully is a
30:00multi-billionaire and like has the
30:02resources and horsepower to actually
30:04like affect change. Many people have
30:06tried to tackle education. Few people
30:07have succeeded mostly because education
30:09is such an entrenched governmentbacked
30:11blah blah blah. Um but yeah, for
30:1418-year-olds, I think I would more or
30:15less model that. And a lot of learning
30:19comes from eliciting trial attempts,
30:21which is how do I get people to try and
30:23do stuff, not to recite information,
30:25because once they get in the real world
30:27has very little to do with reciting
30:28information. And when information is
30:30available at your fingertips in real
30:31time and personalized, that skill is
30:33almost nothing.
30:40>> Build structure.
30:44I would put as much friction as possible
30:46between you and the things that distract
30:47you and as much lubrication between you
30:50and the things that you want to do. So
30:52for example um I have multiple layers of
30:57kind of like bricking you know or
30:59multiple layers of stopping myself from
31:01like scrolling for example. So like
31:03number one I have an app that like I
31:05have to scan and I can put the token in
31:08another room and like my phone cannot
31:09unlock until I physically go do that. So
31:11that's number one. Number two is I have
31:12physical things that slow down. Like
31:14even if that's not on, if I go on any
31:16social media, I have to wait 10 seconds
31:18between me hitting the app and it
31:19starting. So it delays the reward cycle.
31:22Um the third thing is that if I'm going
31:24to post, I'll typically post through a
31:26tool,
31:28even if I want to post in real time so
31:30that I don't go on the platform to try
31:32and make a post and then lose 15 minutes
31:34getting, you know, sucked in. And so
31:36those are just like three micro examples
31:38of ways that I can just distance myself
31:40from something that distracts me. And
31:42then obviously on the other hand, uh
31:43lubricating the path of getting things
31:45done is just removing all distractions
31:47besides the work that you want to do.
31:51>> What do you get inspiration from?
31:53Um, I mean,
31:58I honestly do get inspired by looking at
32:00the best entrepreneurs of our time and
32:02like what they're doing. You know, the
32:03the the Altman's, the the Musks, the um,
32:08you know, Gemini is not really sorry,
32:10uh, Google's not really like an
32:11entrepreneur, but you know, uh, Sundar
32:14and Satia, you know, just thrown down
32:17and like really making huge moves. Um, I
32:21aspire to get to a point where I can
32:23make bets that move industries. I'm not
32:25there, but um, that is something that I
32:28find very cool.
32:31>> You mentioned that you typically only do
32:34one thing.
32:38>> Can't tell you.
32:41>> You'll know. [laughter]
32:43>> You'll find out.
32:45>> Yeah.
32:46>> Even if you can't share details, what
32:51What gets you out of bed right now?
32:54>> Um, I wake up pretty much automatically.
32:56Uh, [laughter]
32:58um,
33:03honest answer is I like what we do. I
33:05like coming here. I work out with people
33:08I like first thing in the morning. It
33:09sets my day up. Um,
33:14we have a great team of leaders that are
33:16really competent that I admire, that I
33:18like seeing. So, we have a community
33:20here at ACQ and Leila and I built it
33:23that way on purpose because we've done
33:24the entirely remote thing and for sure
33:27you're going to succeed with it. It's
33:28just like at what point you decide like
33:30how do I want my life to look and we
33:32wanted to have people around us that we
33:34thought were cool and so we structured
33:36our life to do more of that. Um, and I
33:39think a big part of that question is
33:40like, well, what else would I do? Like,
33:42what is my best alternative? And there's
33:45not many things that I enjoy more than
33:47doing things I like with people I like.
33:48And I've just structured my work to be
33:50more or less that.
33:53>> What brought you to Texas?
33:57>> Um,
34:00a handful of things. Um, number one, you
34:03have some of the best food and beverage
34:04in the world, so that's cool. you have
34:06every entertainment show goes through
34:08here, so if you want to see anyone, it's
34:09there. Um, obviously there's low taxes.
34:11There's also amazing trust laws here for
34:13asset protection. Um, there's an airport
34:16that's direct flight to anywhere
34:18basically even international. Um, so in
34:21and out, that's super helpful. Also,
34:22because Vegas is a hub and almost every
34:24professional comes here for at some
34:25point or another per year, it has
34:28built-in networking for me because I get
34:29texts every week of like, hey, I'm in
34:30town. Are you here? And the benefit of
34:32that is that I don't have to entertain
34:34them. It's like, hey, we can grab a
34:35drink or we can get lunch or we can
34:37catch a workout rather than being like,
34:38okay, now I'm going to entertain you for
34:40two days, which I can't really do. Um,
34:43and then a a bonus item number seven is
34:45that Vegas is one of the best Amazon
34:47distribution hubs and so we get same
34:49day, you know, within hours, everything.
34:51And um I see all those as benefits of
34:54Vegas.
34:56Also, it's, you know, a 30 minute flight
34:59from mountains, ocean, beach, water,
35:03hiking, whatever you want. I mean,
35:04hiking you can do here, but like you can
35:06get whatever you want in the Southwest
35:08really easily.
35:11Those are my reasons for liking Vegas.
35:13>> So, you talk about working out with cool
35:16people. You have a lot of your employees
35:18in your gym.
35:19>> Can you tell us about that environment
35:22and what you like about it?
35:31I mean, I just think it's a great bot.
35:35Everyone's there. Everyone's trying to
35:36do better. Everyone's trying to push
35:37each other. I mean, a lot of the guys
35:39have gotten way bigger, gotten way
35:41stronger.
35:42And I think if we normalize
35:47working hard in the gym, I think it sets
35:51people up for better days.
35:56I mean, for me,
35:58working out at the gym is the highlight
36:01of my day. And so,
36:04I also know that it's not working out.
36:07So, like, I've worked out alone. I've
36:08had home gyms. And it took me a while to
36:11realize a couple things that make
36:12working like why do some workouts suck
36:14and some workouts are great. I can't be
36:16in a rush. If I'm in a rush, it's kind
36:18of like eating a four course meal or
36:20trying to like shove your face with
36:21McDonald's between meetings. It's like
36:23there it's you're eating both times, but
36:25it's very different when you're like in
36:26a rush to just like get a workout in
36:28versus like taking your time and really
36:30enjoying it. The second thing is like
36:32eating alone versus eating with people.
36:33Working out alone versus working out
36:34with people. I think working out with
36:36people, not in a rush, is one of the
36:38best things out there for me. Um I love
36:41the environment of lots of people
36:42pushing each other. Uh which then I
36:45think carries over to everything else
36:46that people do. Um, and I think in a gym
36:49in a gym environment, it allows people
36:51to be more relaxed and you get more time
36:55kind of you get more interpersonal time
36:58between sets than you do between
37:00meetings.
37:01And I think that strengthens bonds so
37:04that when work and hard things do happen
37:06at the job, there's rapport and trust
37:09that's already been built off out of the
37:12office that can transfer into the
37:14office. Do you positively reinforce your
37:16employees for working out?
37:19>> I think posit positive reinforcement
37:21occurs more than anything. So like if
37:24the boss is there, that in of itself
37:26will be reinforcement. If they feel like
37:28they're getting credit for showing up
37:29early and if I have deemed that showing
37:30up early is something that I find, you
37:33know, good, then they will associate
37:34with that. Um, so yeah, I think like but
37:39it's but the thing is is it doesn't mean
37:41that if people don't come and work out,
37:42I respect them less. It's more that I
37:44just get more time with those guys who
37:46choose to do it.
37:48Wouldn't even work if we had 150 people
37:50in the basement. So, like it's it's good
37:53that everyone doesn't work out at the
37:54same time. It would suck. AI probably
37:56occupies half of my time right now um in
37:59terms of like what I'm thinking about
38:01within the business.
38:07And so,
38:14Okay.
38:16Okay. So, from a beliefs perspective,
38:18right, like one of the big shifts that
38:19everybody here has to make is shifting
38:21away from thinking about rolesbased
38:23growth and expansion towards
38:25workflow-based automation. So,
38:29imagine that you're you're like, I want
38:31to hire
38:33I want to hire an editor. All right, I'm
38:34just making this up. I want to hire an
38:36editor. This is how we used to think
38:38about things. I need to hire an editor
38:40so they can do XYZ. The way that we all
38:43have to think about our businesses now
38:44is that this editor really was going to
38:47do
38:49these four or five things, right? And
38:51each of these things should exist
38:55in a workflow like the reason that like
38:57and this is the editor does this one and
38:59they're doing this one in this workflow
39:01and maybe they're doing these three in
39:03this workflow. And so basically you have
39:06to go more granular to the level of like
39:09because every single business if you
39:10really think about it can be connected
39:12at the most intricate level of like this
39:14action to this action to this action to
39:15this action all the way through now it
39:17might be 120 actions that go from
39:19inbound lead to dirt you know turf
39:22whatever right and it's getting granular
39:24and this is the thinking that most
39:26people won't do which is why they will
39:27lose and why I think a lot of people are
39:28going to get [ __ ] but if you have a
39:29little bit more horsepower and have a
39:30little bit more time to think about
39:32things that's where instead of saying I
39:34need to hire an editor. You say, "I need
39:36an agent who just does this, and I need
39:38an agent that just does this, and an
39:40agent that just does this." And so, it's
39:43switching from um again roles to
39:46workflows,
39:47and everything just has to be organized
39:49in workflows. And so, it's like a very
39:51fun project is thinking like, can you
39:53actually draw your entire business in
39:55one linear workflow? Because it does
39:57happen. And if you can't draw it, how
39:59the [ __ ] do you have a business, right?
40:01But it really starts with like
40:04Like the business for us for example
40:06starts with an idea. It sounds silly but
40:08like it starts with an idea. So how does
40:10an idea come to happen? Well what is the
40:13workflow around an idea for us? It would
40:15be like okay um I check our school
40:19community and I look at what's
40:21happening. Okay, that is a workflow
40:23which is uh search you know search this
40:27database which is school but it could be
40:29you know trends.com or you know one of
40:3110.com whatever um where you look at
40:34what things are outperforming in this
40:36particular market and then it says okay
40:38then it gives you this list of the
40:41outperformers and then there's going to
40:43be a match between this list and our
40:46competency so it's like I have a list of
40:47things that I like talking about these
40:49are list of things that people want to
40:50hear about This is the intersection
40:52between those things. Great. What does
40:55this look like in terms of uh uh
40:57scripting, right? So, it's like, okay,
40:59we're gonna have some sort of scripting
41:00around this. So, I want uh templated
41:03ideas. AI does this. So, it gives us um
41:05okay, this is a sevenst step whatever.
41:08And it has each of the steps underneath
41:09of it. And we like great, now that the
41:11scripting is done, we're going to go
41:13into packaging. All right. What is going
41:16to be the headlines? What are gonna be
41:17the thumbnails?
41:19this is an AI workflow and then we're
41:22going to get into production, right? And
41:24so all of this is broken down just so
41:26that we can get one thing to happen
41:27which is a click, right? But every
41:29single element of the business can be
41:31broken down into the into its
41:32constituent workflows. And so I think
41:34the mistake that a lot of people are
41:35making right now with AI is being like,
41:37well AI can't do what a human can do.
41:38Well, which is obviously [ __ ] but
41:40like
41:41you have to train it the way you train a
41:43human. So saying like, well, I'm going
41:45to bring this this human in and tell
41:47them nothing and expect them to do a
41:49good job is ridiculous. But we're
41:50somehow we like believe that a machine
41:52should be able to do that. But instead,
41:53it's thinking, okay, this editor or
41:56videographer, whatever it is, um,
41:59actually does 16 actual activities. And
42:03each of those activities we have to take
42:05one at a time, and we can have an agent
42:06that's trained on that thing. And so
42:09like right now, I know Maddox is working
42:11super hard with Julian on this, but like
42:13we have so I do like my hormony
42:14hotlines. And so I do a hotline and then
42:17that then goes into um basically an AI
42:21thing that does uh that breaks down the
42:23the transcripts. That's like step one.
42:25From the transcript, it then says,
42:26"Okay, notice when there's different
42:28speakers." All right, so it has to do
42:30that two times. One is notice when it's
42:32Alex versus the other person. So it's ab
42:35imagine I'm A. But then it eventually
42:37switches to AC ac. And then it goes to A
42:40A D because there's new person that I'm
42:43on the phone with. So it's gonna say
42:45segment first between when it goes from
42:47AB to AC. So great, now we have 10
42:50underneath clips. From there, uh it'll
42:52run a separate script that's like look
42:54because it's like what would an editor
42:55do? The first thing it do is clip out
42:57the individual portions. Okay, there's
42:5810 different conversations Alex had.
43:00Okay, now that we have those 10
43:01conversations, look through this and try
43:02to find the highest tension moment. And
43:04so it'll read the words and say this is
43:06the highest tension moment and be great.
43:08Start the clip with the highest tension
43:10moment and then get into the rest of the
43:12clip. What else do we want? Remove all
43:14ums and a's. Great. Now from there what
43:17are the um what data is required in
43:20order to have the insight that Alex
43:21delivers only these four points. Great.
43:23Collapse the rest. Now export final file
43:26of that.
43:28That's the workflow. And so it's really
43:30just building this on a consistent basis
43:31and continuing to update that prompt
43:33which is literally just like updating
43:34the training for a human being of like
43:36actually do this too just like you would
43:37with an editor but doing that across
43:39every function of the business.
43:42So that is like that is the future. And
43:44the nice thing is that with there's a
43:46lot of businesses that like agencies for
43:49example have been a notoriously shitty
43:51business to run. Um,
43:55but in the future I think they'll be
43:57incredibly lucrative businesses for the
43:59people who are really good with AI
44:00because the demand for more customers is
44:03infinite. And so there's like no one's
44:06like, "Hey, what's product market fit
44:07for an agency?" You don't have to ask.
44:09People want customers. It's not hard to
44:10like you don't need to ask for product
44:11market fit. The issue is that the ops
44:14around being good at getting customers
44:16is significantly harder. But if you can
44:18operationalize each of the flows, it
44:20becomes much better. And this is why
44:22like like I'm built for this movement
44:24because it's all about being black and
44:26white with observable behavior. And
44:28that's like what I geek out on. And so
44:31this is where vague language like
44:32machines do not understand like vague
44:34language. Also, neither do [ __ ]
44:35humans. Um we just nod our heads because
44:37we've been reinforced for doing so. But
44:39this is where being very specific about
44:40like, hey, I need you to be more
44:41charismatic means nothing. We have to
44:43say, I need you to raise your voice in
44:45this way. I need you to talk faster. I
44:46need you to raise your head when you're
44:47speaking. I need you to nod when the
44:48other person's talking. We have to break
44:50it down to what someone would do. And
44:52so, um, as though you were teaching a
44:54toddler, you have to work the same way
44:55with the machine, but the machine never
44:56forgets.
44:58Hopefully that answered the question.
44:59>> It does.
45:00>> Okay.
45:02But yeah, this is what I'm thinking a
45:03lot about.
45:03>> Yeah.
45:06>> So, it starts with the clear process map
45:08or workflow map of every action.
45:10>> Exactly. And I would I would start like
45:12start with the big ideas first. So, it's
45:15like, okay, I do I I I have an idea and
45:18then I make a script and then I uh I
45:21shoot it and then I, you know, then we
45:22we export the clip and then we edit it
45:25and then we post it. Okay, that's the
45:26that's the big picture. But now,
45:29underneath of each of those, there's
45:30probably six or seven things that
45:32actually happen in order to post it.
45:35It's like, so I actually go to this
45:36page, I look at the schedule of what
45:38was, you know, last posted. I add three
45:40hours to it. I like you just have to
45:42like one word turns into six six actions
45:46and it's just continuing down until
45:47there's you can't reduce it anymore and
45:49then that's what you automate.
45:51>> Do you have a special AI implementation
45:53team to build?
45:54>> Oh yeah, we have a full dev team. Yeah.
45:56>> Yeah.
45:59>> Yeah. So I think I think many of you
46:01especially those of you who are online
46:04an amazing high leverage hire is just an
46:06AI like an AI automation person. um they
46:09will not lack for work to do. Like they
46:11can just sit next to teams and just
46:13watch what they're doing and then just
46:14say like I can automate that, I can
46:16automate that. I can automate that.
46:20>> Is that something that we should do
46:21right now?
46:22>> Yeah.
46:24>> Yeah. If you have the cash flow for it.
46:32>> Depends on how good they are. I think
46:34though, as Lindsay Lohan said, at best
46:36the limit does not exist. So, like there
46:39there's a there's a there's a price tag
46:41for every level of skill you want. But
46:43even just somebody who I would just
46:44consider like a hacker, and I say hacker
46:46like loosely, like somebody who just
46:47duct tapes tools together, it's probably
46:49like 150 grand a year.
46:53>> And in terms of prioritizing for us,
46:55would you focus on the delivery side
46:57first? I think that you getting um
47:02the elements that we walked through
47:03specifically around the expectation
47:05setting number one. Um I think CAC
47:09expectations number two and then the
47:11controllables around brand like the
47:13brand controllables I think that should
47:15be largely automated um because it is
47:18automatable. It's literally pattern
47:19detection which is like machines do it
47:21better than humans do anyways. And so
47:23what what humans do shitty at is giving
47:25the pattern to recognize. And so that's
47:28like in terms of like what skill will
47:30you need to be get good at is when
47:32someone says look this is off brandand
47:33be like what the [ __ ] does that mean
47:35like tell me indescribables so that
47:37otherwise how am I if you can't tell me
47:39how am I going to know
47:40>> so it has to be in black and white
47:42language
47:46>> yeah [snorts] I think for like home
47:48services and brick and mortar a lot of
47:51um basically all administrative work
47:53should just not really be a thing like
47:56you know invoicing
47:57matching billables like back office for
48:00sure is like that's already there like
48:02that's like now um receivables that's
48:06like now like you don't need to there's
48:08nothing there lead nurture that's now
48:11like you don't like a lot of that
48:14stuff's already already kind of done the
48:16advantage that um you all have for in
48:18person is that like I don't know how
48:20horses will respond to robots so you
48:22probably have a little bit of you
48:24probably have a little bit of security
48:25you know like otherwise you're getting,
48:27you know, mule kicks into the the side
48:29of the stall. Um, uh, I think that from
48:34a landscaping perspective, there will be
48:36kind of like once Optimus comes out and
48:38you can teach it how to like mow lawns
48:39and [ __ ] like that'll be a thing for
48:41sure.
48:42>> Um,
48:45>> yeah.
48:45>> Yeah. I mean, it can do it. [laughter]
48:48Um, there'll also be I think like job
48:50specific ones, but most likely I think
48:52the biggest proliferation is going to be
48:53around generalized humanoid robots
48:54because the world is already built for
48:56us. And so as much as it's like, you
48:58know, I'm sure you've seen like the like
49:00the Zumba of lawn careers. I'm sure
49:02you've seen those things where it's like
49:03>> you drop them around, but like I haven't
49:05seen anyone really take off with that.
49:07At least I haven't seen it. And I think
49:09it's just because like there's too many
49:10unique scenarios. It costs too much.
49:12Like the cost doesn't make sense yet.
49:14Maybe in three or four generations it'll
49:16be there. But in the meantime, the
49:18skeleton key for the world is just the
49:20way the human body works. Door handles,
49:22everything's already built for that. So
49:24it's like, as silly as it sounds, it's
49:25like the world's already, we already
49:26built the world for ourselves. If
49:28there's a robot that can fit underneath
49:30the door, we could make a special
49:31purpose robot that does that. But it's
49:32like, but you'd have to do that in every
49:33door in every building. Or you just
49:36build a [ __ ] human robot, which is
49:37what everyone's doing.
49:40Yeah, I think I think you're fine for
49:41the short term. the the stuff that you
49:42should be focusing on from an automation
49:44perspective is gonna be back office.
49:46>> Yeah. And there's and the thing is it's
49:48great at that. It's [ __ ] awesome at
49:50it and you should totally use it for
49:51that.
49:55>> How about you AJ?
49:57>> Would that be something like using
50:05>> right now voice is almost there. This is
50:07supposed to be the year of voice.
50:09>> Um it's close. It's not
50:12There's a lot of tools out there. I
50:13won't make any recommendations because
50:15like they change all the time. Um I
50:17would say voice is very close. Text is
50:20there.
50:21>> I was thinking [snorts] about like hours
50:23having like a voice
50:27auto.
50:28>> Yeah. I went to a gym that was local
50:32here. It's a it's like a very exclusive
50:34like whatever. I think it's like 10
50:36grand a year or something like that and
50:37it has like 400 members and that's the
50:39deal. Um, pretty interesting model. But
50:42I went to the site and it was just a
50:44chat interface and it just said like,
50:45"What do you want to know?" And so I was
50:47like, "Hours." And it was like, "Here's
50:48the hours." I was like, "What else do
50:49you want to know?" And I was like,
50:50"Membership prices." And it was like,
50:51"Here's the membership prices. What else
50:53do you want to know?" I was like,
50:56I mean, it should have asked me for my
50:57information, but [laughter]
50:58it's not perfect. It was not well
50:59trained enough. Um, but like I was like,
51:03"This is pretty slick.
51:07Like why navigate when it just already
51:08has the answers?
51:12Not to get very odd for you guys, but in
51:13the next, I would say 12 to 24 months, a
51:15lot of like the UX is going to
51:17disappear. Like, we're not going to be
51:19clicking things like the mouse. Like,
51:22what brought computers into mainstream
51:24was a mouse.
51:26Like, that was the big innovation was
51:27having a mouse. You could point and
51:28click and then all of a sudden people
51:29were like, "Oh, I just want that thing."
51:30It's like click. And it worked. And so
51:33nothing's really kind of happened in the
51:35computation world besides speed and
51:36power and all that stuff, but it's all
51:37been um more of the same. The next phase
51:40shift is that UX disappears, which is
51:43that you just have an agent that you
51:45just talk to, right? And you say, "Hey,
51:47you know, what did we do in Cash Flow
51:48last month?" And you just text it or you
51:50say it and it just answers. And like the
51:52world of CRM is going to like this is
51:54this is the next 12 to 24.
51:56>> Yeah.
51:57>> Yeah. Don't you think that we are very
52:00into it but 99% of people are still
52:02>> Yeah. Oh yeah. I mean there are legal
52:04firms that use fax machines now. And so
52:06there's this idea that like oh my god
52:08the whole world it's like no just like
52:09always humans plus technology will beat
52:12humans with inferior technology. And so
52:14if you learn how to use the tech you'll
52:16do better. But there will be people who
52:18still have law firms and use fax
52:20machines that will make money. That's
52:21just there will be people who don't use
52:22fax machines that will make more money.
52:27So, I'm not like an AI alarmist. I think
52:29it's going to take a while. But, um, I
52:32do think there's Well, I won't even get
52:33into that, so I'll just stop. But, we
52:36just get too much of a future no one
52:37knows anything about
52:38>> Open Claw and Clawbot are just kind of
52:40blowing up everywhere right now. What do
52:42you think about it so far? And what do
52:43you think will be the biggest impact on
52:45business owners?
52:47>> I think it'll separate the business
52:48owners who decide to be more tech
52:51enabled than the ones who aren't. um
52:53you'll realize that anything that you
52:54can do on a computer it can do.
52:56Obviously there's some safety concerns
52:58in terms of giving you know an
52:59autonomous robot access to whatever you
53:01want. Um and there's been tons of case
53:03studies of people like going wrong but I
53:04think by and large
53:06you you often risk more by not adopting
53:09new technology than fearing the
53:11potential downside that a small
53:12percentage of people experienced.
53:15Do you have any experiences you've had
53:17with business owners where they needed
53:19to adapt to technology to advance and
53:21they just chose not to inte?
53:24>> So
53:26the only time you need to adopt
53:27technology is if every other person in
53:29your space has the technology and you
53:31don't and as a result can price
53:32differently than you and so they price
53:34you out of the market so that you can no
53:35longer do business. That's rarely the
53:36case. There's welders right now that
53:39only do fax machines. Like there's a
53:40piece of gym equipment that I got from a
53:42guy who literally responds to Instagram
53:43DMs and he he texted me a picture of his
53:46checking account to get a wire. So like
53:49you can absolutely make money with
53:50significantly less technology. It's just
53:52that you're less efficient than the
53:53people who do. And at the highest levels
53:55of the game, it's going to be where it's
53:56the most competitive. But you can still
53:58make money because the tale the long
54:00tale of of people adopting technology is
54:02very slow. Like AOL just stopped this
54:05year.
54:07How much money can you make without
54:09adapting to technology?
54:10>> You can still make tons of money. It's
54:12just that you probably won't make as
54:13much as you would if you adapt to
54:14technology. I mean, what is technology?
54:16It just gives you more for what you put
54:17in. So, if you do something and you do
54:18it really efficiently without
54:19technology, you would just do it more
54:21efficiently with technology. But you can
54:22still beat people who are not as good as
54:24you without technology.
54:26>> Does that make sense?
54:27>> We've been talking,
54:28>> but if you're competing at somebody
54:29who's as good as you and they have
54:30technology and you don't, they will win.
54:34What are some of the things that annoy
54:36you the most about AI?
54:39>> Um, I hate two things about AI. One is
54:44that I think it is making people dumber
54:45because they're choosing not to think
54:47and they are letting AI make their
54:49decisions, but then they have no context
54:51into why decisions were made to begin
54:52with because they weren't the ones who
54:53did the thinking. The second is that I
54:55hate that so much of the world has
54:57almost immediately become AI slop. like
54:59every caption on Instagram, uh I mean
55:01thank you messages that I get from
55:03people, people leaving testimonials,
55:05like it's just AI slop. And the biggest
55:07thing you can detect with it is force
55:09negation and staccato sentences, meaning
55:12it's not this or this or this, but that
55:15or it's not because this, it's because,
55:18it's because this is this is this is so
55:20they'll do this repetition of sentence
55:22structure and it gets really really
55:24annoying. And so most times you can take
55:25a paragraph of that and just turn it
55:26into a sentence of like what the [ __ ]
55:28are you trying to say and then just say
55:29that.
55:31>> You've mentioned it a little bit in the
55:33shoot, but what kinds of businesses do
55:35you think are going to succeed because
55:38AI is so prevalent and people get tired
55:40of it?
55:41>> I think the businesses that have
55:42disproportionate returns are ones that
55:44are very opssh. So a marketing agency
55:46for example that heavily introduces AI,
55:49there will never be a lack of businesses
55:51that want new customers. The difficulty
55:54with scaling that particular type of
55:55business is the operational drag and the
55:57headcount and the coordination of
55:58people. And so if you can have something
55:59that has amazing product market fit,
56:01which is get more customers for
56:02somebody, there's lots of demand there.
56:04Um, but do it in a way that allows you
56:06to scale the ops so that you have
56:07increasing margins and you have less
56:09complexity that becomes incredibly
56:10valuable business. So people heavy,
56:12opsshes that are largely digital, those
56:15are businesses that will that will
56:16benefit the most.
56:18>> What are some things that you think
56:20haven't been popular like kind of You
56:22talk about live streaming for example,
56:24like as AI, as fake becomes more
56:27prevalent, real becomes more popular.
56:30>> Can you speak on that a little bit?
56:33>> At least in choices of content, choices
56:35to do brick and mortar, choices to do
56:37community.
56:48I think AI scratches a human itch but
56:52doesn't fully satisfy. And so instead of
56:54having real relationships, we have porn.
56:56Instead of having real friendships, we
56:58have social media. And so it's these
57:00these diet coke versions of what we
57:02actually want. And so I think there's
57:06going to be barbell experience of
57:07everything is truly fake. And on the
57:09other side, people want super real. So
57:11there's tons of gen alphas and genzers
57:13who are like switching back to flip
57:15phones because they're like they want to
57:16disconnect to this. There's people who
57:17are like want like the demand for
57:18ranches and moving out in the middle of
57:19nowhere has gone up. And so I think
57:22there's a percentage of people that are
57:23rejecting it or rejecting for a portion
57:24of their lives and there are people
57:26leaning into it and I think reality will
57:27probably be a blend of these two
57:28extremes. I think the middle is where
57:30businesses will suffer.
57:31>> Like you have to know which which which
57:33game you're playing.
57:35>> Alex question what you were saying about
57:40>> a mile wide and inch deep. Sorry. Go
57:42ahead.
57:44>> On the topic of AI people
57:47Is it more fear?
57:51>> Can you ask the question again?
57:53>> So people not adapting to AI or
57:55implementing into their business. Is it
57:57more fear or more complacency?
57:59>> I think it's I think it's complacency
58:01that they use the like the the reason is
58:04complacency. The excuse is fear.
58:08So people are being lazy, but they use
58:10the legitimate reason of being afraid
58:12that it could do something to their
58:13business. What if it deletes all my
58:14emails? What if it deletes all my
58:15customer records? It's like sure, but
58:17like are there would you want to take
58:18the next step of trying to figure out
58:20how to isolate it and give it clear
58:21guard or else to make sure or decrease
58:23the likelihood that it happens? Yeah,
58:24probably. But people don't do that
58:25because it's much easier to just be
58:26like, well, I heard it's not safe and
58:28you're like,
58:32>> yeah,
58:33>> pivoting a little bit into like kind of
58:36business mindset or kind of people that
58:38can support a business. What kind of
58:40person should not start business?
58:45If any
58:57I think business self- selects for
58:59people who should start and own them. So
59:02I think many people want to have a
59:04business and the ones who do not have
59:06them should not have them because if
59:07they should have them they would have
59:09them. You learn the things that you have
59:11to do to build a business. And if you do
59:13them, you build a business.
59:15>> What's one of the skills that you had to
59:18learn?
59:19>> Believing that you have to be born with
59:21it is just a way to excuse yourself from
59:23trying. Real quick, if you're a business
59:25owner and you are not growing as fast as
59:27you'd like, I'd like to give you a free
59:29gift. So my team and I put together the
59:31$100 million scaling roadmap, which is
59:33basically 200 hours of us looking over
59:35all the portfolio companies we've had
59:36and what stages of growth they went
59:39through and more importantly where they
59:40got stuck and how they got past it. And
59:42so we broke it into these 10 stages and
59:44we made this little kind of quiz thing
59:46where if you put in your business
59:47information, it'll tell you where you're
59:48at and the most important part for you,
59:50what to do for each of the functions of
59:52the business across product, marketing,
59:53sales, customer success, recruiting, IT,
59:55human resources, and finance. And so no
59:57matter what you're struggling with,
59:59someone else has already struggled with
1:00:00it and solved it. And so I'd like to
1:00:02give you this thing absolutely free. You
1:00:04can go to acquisition.com/roadmap,
1:00:05plug in your business information. And
1:00:07if you want us to actually help you
1:00:09deconstrain the business and you're
1:00:11trying to scale, we'd love to help you
1:00:12out on the thank you page. You can just
1:00:13book a call with my team and we will
1:00:16look at the business, see if we can
1:00:18help, and if we can, we'll invite you
1:00:19out to Vegas and we'll do this in person
1:00:21live. What's one of the skills you had
1:00:23to learn or a way you had to change in
1:00:26order to support your company as a
1:00:27group?
1:00:28>> Well, I'll just start at the beginning.
1:00:30I had to be willing to have people who
1:00:32disagreed with my choice, including my
1:00:34colleagues, my friends, and my family.
1:00:36And so, most people cannot get past one,
1:00:38two, or three of those, and so they just
1:00:40stay stuck.
1:00:43So, I mean, the first thing you have to
1:00:44do is be willing to be disagreed with.
1:00:49And I think you also need to be willing
1:00:50to look cringe because you will be
1:00:53cringe because you've never done it
1:00:54before. And so it is a prerequisite of
1:00:56doing something new that you will suck.
1:00:58And so many people are afraid of sucking
1:00:59and as a result they continue to lose
1:01:01because they never try.
1:01:04A lot of ambitious people often ask
1:01:07>> is it it's um
1:01:16losers stay losers because they are
1:01:18afraid of losing
1:01:21so they never try.
1:01:23>> Fear of failing.
1:01:25>> Fear of starting. Yeah.
1:01:28>> What was it? Next one. A lot of
1:01:29ambitious people say that they have
1:01:31trouble making friends.
1:01:33>> If you are doing exceptional things, is
1:01:35it inevitably hard to become friends
1:01:37with people?
1:01:40>> I think that your frame uh I think
1:01:43you're
1:01:49as you achieve rarer things, you will
1:01:52have less overlap with people who have
1:01:55not achieved those things. And if the
1:01:57vast majority of your time is spent
1:01:59achieving those rarer things, you'll
1:02:01have a smaller selection of people who
1:02:02share that experience. That doesn't mean
1:02:04that you can't talk about football or
1:02:06talk about family or talk about
1:02:07relationship because many people have
1:02:09all of those things. Um, but if you want
1:02:12to be friends with people who like the
1:02:14things that you like, then you naturally
1:02:15are going to have a smaller subgroup.
1:02:19>> How did you choose the people that you
1:02:20keep in your circle?
1:02:22>> I just always think, does this person
1:02:23help me become the person I want to
1:02:24become? Do they get me closer or
1:02:26further? If they get me closer, then I
1:02:28want them closer to me. If they get me
1:02:30further, I want them further from me.
1:02:33>> And I don't think that's I don't think
1:02:34that's binary. I think that that happens
1:02:36naturally over time.
1:02:41>> Talking about the people in your circle,
1:02:43what is your favorite thing about your
1:02:45wife?
1:02:46>> I think Leila has more fight in her than
1:02:48most people I've ever met. And so, like,
1:02:51she will just keep going. And so she
1:02:54will like she will fail, she will get
1:02:57knocked down, she will have pain, she
1:02:59will suffer, and then she will just
1:03:01continue to try again. And so she just
1:03:02doesn't have a lot of give up in her.
1:03:05And I have a tremendous amount of
1:03:06respect for that.
1:03:12Patience,
1:03:14empathy,
1:03:22poise.
1:03:24I'd say those are probably the three big
1:03:25ones that if I had to
1:03:28pinpoint or like probably the three
1:03:30areas that she had that I have grown the
1:03:32most of as a result of being married to
1:03:34her. Like I am more patient now than I
1:03:36was. I am more empathetic than I used to
1:03:38be. I'm more poised. Um, you know, I
1:03:41would say like high emotive situations
1:03:43than I used to be.
1:03:48>> What do you think about
1:03:52teeth?
1:03:54When I met Ila, she just wanted to like
1:03:56save the world. [laughter]
1:03:58Um, and so
1:04:00it's yin and yang. It's like you need
1:04:02both. It's like you need you need you
1:04:05need somebody who's gonna like you need
1:04:06good cop and you need bad cop at the end
1:04:08gang. And so I think like the the beauty
1:04:11is in the middle and I think it's it's a
1:04:14dichotomy to me to say dick I think it's
1:04:16a dichotomy to be managed not a problem
1:04:18to be solved. I don't think anyone's
1:04:20perfectly in the middle and I also think
1:04:22perfectly in the middle is not really a
1:04:23thing because different sides of you
1:04:25need to come out at different times. And
1:04:27so I think that she's probably had more
1:04:29aggression as a result of being with me.
1:04:33Um I think she's become more direct as a
1:04:36result of being with me. Um
1:04:43I think that she's been able to draw
1:04:44boundaries better because she's been
1:04:47with me.
1:04:49So like selfless selfishness like if
1:04:53there's nothing left for me to give then
1:04:55I will be able to give less and so I
1:04:57have to draw these lines so that I can
1:04:59net give more over a longer period of
1:05:02time versus get overused and overgive in
1:05:04the short period.
1:05:07>> I actually think we both learned that
1:05:08from each other. We both were like
1:05:09overgivers in the beginning and just got
1:05:11like taken advantage of a lot. So we
1:05:13both kind of like I think we both kind
1:05:14of protect each other from that. Like
1:05:16he's trying to take advantage of you or
1:05:18whatever. He's he's overstaying his
1:05:19welcome. This guy's trying to trying to
1:05:21he's got an angle and we both kind of
1:05:23see it. And Ila has phenomenal judge of
1:05:26character. She's in our in our 10 years
1:05:28she has never been wrong about anyone
1:05:31which is wild.
1:05:33I've been wrong about plenty of people.
1:05:37Going back to setting
1:05:40>> how do you feel best to do that in your
1:05:42position?
1:05:47>> I think it's being okay with delay and
1:05:49non-response. So if I and also
1:05:51distancing like I had a conversation um
1:05:54two days ago with somebody that I see as
1:05:56a friend but because of some um
1:05:59behaviors that they found permissible
1:06:01like within their presence I was like
1:06:02hey man just want to let you know like
1:06:03I'm still homies with you. I was like
1:06:05but I can't have this around me. So I
1:06:06was like, "So I'm just making you aware.
1:06:08We're cool, but like you can't sit at my
1:06:09table anymore." And so it's just like
1:06:12like but like it's I've done that so
1:06:14many times now that it's not it doesn't
1:06:17even feel personal. And I think that
1:06:19I've been able to deliver that news like
1:06:20I've just gotten better and better at
1:06:22saying it. And so it's like to be clear,
1:06:23I'm not blaming you. You can make
1:06:24whatever choice you want. I'm good with
1:06:26it. It's just that like these are my
1:06:28lines and this is no longer acceptable
1:06:30to me. But if it's acceptable to you,
1:06:33[ __ ] by all means. And so to like
1:06:36that same degree, it's like if you if
1:06:37like if someone
1:06:41like like I will judge someone by the
1:06:45company they keep, you know, like and
1:06:48there's to be fair there's a difference.
1:06:49Like if you are taking care of your
1:06:50sibling who's a heroin addict, that's
1:06:53very different than like I voluntarily
1:06:56choose to have to be all surrounded by
1:06:58drug addicts in my life. And I'm like I
1:07:00mean again your choice, do whatever you
1:07:02want. I just don't want that in my life.
1:07:04And so like I won't be friends with you
1:07:05because I know what you bring with you
1:07:06and I don't want the baggage.
1:07:09>> You believe you are the sum of the
1:07:11people that you're around.
1:07:13>> I think that your environment shapes
1:07:15your behavior more than anything else
1:07:16does. And I want
1:07:20my behavior to be as frictionless as
1:07:22possible towards the outcomes that I
1:07:24want. I want to be I want it to be easy.
1:07:27I want it to be as easy as possible.
1:07:28Work as hard as I can on the things that
1:07:29I find meaningful.
1:07:32How do you structure your environment to
1:07:33do that? Just like small things that
1:07:36people think about.
1:07:38>> I think everyone gets this wrong.
1:07:40Structuring the environment to maximize
1:07:42your basically time on goal is about
1:07:45removing everything that's not on goal.
1:07:47So it's not like what are the 20 hacks
1:07:49that I have. It's really just what are
1:07:50the 20 things I removed. So there was
1:07:51nothing left but the thing that I needed
1:07:53to do. And I think that works digitally.
1:07:55That works physically. It's like like
1:07:58you want again perfect focus means that
1:08:00you do literally nothing besides the
1:08:01task that you need to do and so anything
1:08:03that is not that is by definition less
1:08:05focused and so if I want to be more
1:08:06focused I have to remove things not add
1:08:08things
1:08:10>> it's not this it's that it's not success
1:08:12it's revenge
1:08:13>> not me not
1:08:19>> u pivoting a little bit just as an
1:08:21opener is there a founder or business
1:08:24you've looked at recently where found
1:08:26what they are doing or how they are
1:08:28moving inherently interesting.
1:08:31>> I mean,
1:08:34I think Elon's doing a pretty good job
1:08:37launching a zillion satellites into
1:08:39space, trying to generate power directly
1:08:40from the sun because it's five times
1:08:41more efficient and you don't need to
1:08:42have a battery. So, like that makes a
1:08:44lot of sense and they're cheaper to send
1:08:45to space uh the panels themselves
1:08:48because you don't have to have all the
1:08:49weather because there's no weather in
1:08:50space. Like that's great first
1:08:52principles thinking and being able to
1:08:53vertically integrate that with AI that
1:08:56then generates two phones because he has
1:08:58Tesla that can make the robots and the
1:09:00phones like he can go full stack from
1:09:02literally like the sun to people's hands
1:09:03and he owns the entire value chain like
1:09:06and in order to think of that business
1:09:07model and having called that shot like
1:09:1030 years ago and he's been working if
1:09:12you look at his earliest interviews
1:09:13towards this one goal for that entire
1:09:15period of time like yeah that's
1:09:17impressive.
1:09:18>> Is there a story There's a lot of
1:09:20stories that come out about Elon. Is
1:09:21there a story to remember that stuck
1:09:24with you in terms of what you learned
1:09:25from it?
1:09:27>> Well, I mean my favorite like actual
1:09:29thing that I have learned from Elon
1:09:33business-wise is his kind of algorithm
1:09:35which is question all requirements,
1:09:37delete the unnecessary requirements,
1:09:39optimize what's left, uh accelerate
1:09:44and then automate. And so I would say
1:09:46tactically applying that algorithm
1:09:48everywhere has been like very tactically
1:09:49useful for me. Um
1:09:52so I think the the biggest shift that
1:09:56has to happen for business owners in
1:09:57terms of hiring new talent in the age of
1:09:59AI is shifting from role-based thinking
1:10:01to workflow-based thinking. And so we
1:10:04put out job requirements the way we
1:10:05normally would and usually there's like,
1:10:07oh, we need an X. But the thing is is
1:10:09the titles matter significantly less and
1:10:10less as so much of a role is really just
1:10:13like a circle with six or seven
1:10:16workflows this person is interjected
1:10:18into, right? Rather than like roles and
1:10:20responsibilities and like timeliness and
1:10:22whatever the hell people would put in
1:10:23there. Fundamentally, it's like I need
1:10:25this person to plug into these six holes
1:10:27in the business and these six holes
1:10:29actually represent these workflows. And
1:10:30then to what degree does each of these
1:10:32individual disparate workflows can be
1:10:34automated? And so everyone, every
1:10:37business owner at this point should be
1:10:39able to draw their business in terms of
1:10:42workflows of inputs and outputs rather
1:10:44than this is an org chart. And so this
1:10:46is the shift between you know 2026 or
1:10:492025 thinking of people in seats and
1:10:52turn and entering into the 2030 frame of
1:10:55uh raw inputs and outputs that are
1:10:57valuable.
1:11:03Mount
1:11:06>> uh my entrepreneur Mount Rushmore.
1:11:08>> I would have
1:11:11was it four faces?
1:11:13>> Yeah. So I would have Elon Basos.
1:11:16So yeah. So I'd have Elon, Jeff Bezos,
1:11:20Warren Buffett.
1:11:24Actually, I'd probably have Elon Musk,
1:11:27Jeff Bezos, Charlie Munger. I've learned
1:11:30more from Charlie. Um,
1:11:33who's number four?
1:11:40Rockefeller
1:11:42be my number four.
1:11:44>> Why?
1:11:46>> Savage.
1:11:48And um from his letters to his son, I
1:11:52learned one of the important lessons for
1:11:54me, which was the reason I'm such a fan
1:11:56of Rockefeller is because of one very
1:11:58important lesson that I learned from the
1:11:59letters that he sent his son, which was
1:12:01he tells a story of how he was the
1:12:03second largest oil producer and he went
1:12:06to go try and buy the largest producer.
1:12:08And the guy like rebuffed him a bunch of
1:12:10times every time he tried to buy. And
1:12:12then finally he was able to get a deal
1:12:14done. And he, you know, he he way
1:12:16overpaid for this facility. And the guy
1:12:19was laughing at him saying like, "Well,
1:12:20you know, you're an idiot. I can't
1:12:21believe you paid this much for my
1:12:23business." And then the next 30 days, he
1:12:25did something like 24 deals. And the
1:12:28reason he was able to do those 24 deals
1:12:29is because once he was number two and
1:12:31bought the number one, he had such a
1:12:33significant part of the market share
1:12:34that he was able to say he was number
1:12:36one in the market. And with that story,
1:12:38he was able to do 24 more deals that
1:12:40were significantly more lucrative. And
1:12:42so what I learned from that was the
1:12:44value of the story. So there was the
1:12:46price of the assets in the business and
1:12:48then everything that he paid in excess,
1:12:50he paid to do one thing, which is to be
1:12:52able to say that he was number one. So
1:12:53that he had the leverage in the rest of
1:12:55the negotiations. And so it was really
1:12:57shifting from this like I have to get an
1:12:59amazing deal on every single thing I do,
1:13:01which happens across business all the
1:13:02time, to taking a step back at the
1:13:05global outlook of like battles and wars.
1:13:07Like I'm willing to lose battles to win
1:13:08wars.
1:13:14>> Speaking of famous entrepreneurs
1:13:17was watching the social network
1:13:18recently. Have you seen that movie?
1:13:19>> I have.
1:13:20>> Wherever gets cut out of, you know, his
1:13:24shares get diluted. Eric and I were
1:13:26actually talking about it because I was
1:13:27like, well, he wasn't there.
1:13:29>> If he had been there creating value for
1:13:31the company, what would be the chance
1:13:33that his shares would have been
1:13:34>> diluted?
1:13:35>> Do you think in most cases in life,
1:13:38>> you can avoid bad outcomes by creating
1:13:41value?
1:13:42>> Well, I think his stake is like 11
1:13:45billion now. So, he's done okay. Um, and
1:13:48the reason Savin was able to get paid
1:13:51was because he did the one thing the
1:13:52other two guys didn't do, which is that
1:13:53he took on risk. So he was the one who
1:13:55paid for it and it was his LLC and he
1:13:57was the one who capitalized the business
1:13:58and risked money. And so many people had
1:14:01had claims to Facebook, but when you
1:14:03write the check and you take the risk,
1:14:05it's something that no one could take
1:14:07away from you. And so I actually see a
1:14:09very different lesson from that, which
1:14:10is he who takes the risks holds the
1:14:11leverage. And that is why he was able to
1:14:13get such a significant chunk of the
1:14:15company. Um, and so in a world where all
1:14:19human tasks can get automated by robots
1:14:21and AI, the last bastion of value that a
1:14:23human can have is they can choose to
1:14:25take on risk.
1:14:27perspective
1:14:32on
1:14:35>> I think that risk I mean there's books
1:14:37and books written on risk but
1:14:41I think risk is largely misunderstood by
1:14:43most people because they see the
1:14:44downside is exaggerated and the upside
1:14:46is minimized is that they extrapolate me
1:14:51failing into death and isolation that no
1:14:54one will ever want to see me or love me
1:14:55again. um and they truncate what they
1:14:59believe is possible because they can
1:15:00only see the two feet in front of them
1:15:02based on their existing vantage point.
1:15:04But like once you start climbing the
1:15:06mountain, you get a better perspective
1:15:07and you start seeing what is possible.
1:15:08And so I think one of the the big gifts
1:15:10of entrepreneurship is that one, it is
1:15:11the best process of personal
1:15:13development. And two, the more you
1:15:15accomplish, the more you realize you can
1:15:17accomplish. And so you can set your
1:15:18sights higher, not from like a ever
1:15:20moving goalpost perspective, but a how
1:15:23much more impact can I have that I
1:15:25didn't think was ever possible when I
1:15:26started this journey.
1:15:29And so if you're judging whether it's
1:15:31worth to climb Everest based on the
1:15:34first 20 feet and you think I could die,
1:15:37it's a very different bet versus seeing
1:15:39the top of the mountain. And maybe
1:15:41you're going to have harnesses and hooks
1:15:42and chirpas and the likelihood you die
1:15:44might be there, but it's significantly
1:15:45lower than you think.
1:15:48>> What's one of the risks that one of the
1:15:50bigger risks you took that was a turning
1:15:52point for you early on in business?
1:15:54>> The biggest risk I ever took was
1:15:55starting the first gym by far. Not even
1:15:58close. um signing a lease for $300,000
1:16:02when I had I mean
1:16:05$50,000 saved up and I had never run a
1:16:09business before and I had never gotten a
1:16:10customer before and having to pay $5,000
1:16:12a month in rent with no clue of how I
1:16:15was going to pay it and it was due in 14
1:16:17days. Like that was by far the riskiest
1:16:20thing that I ever did. And the only
1:16:21reason that I took that risk was because
1:16:22I was so ignorant. Like I wouldn't
1:16:24advise anyone to take that risk. And I
1:16:26only took it because I like I like by
1:16:29the grace of God like figured out in
1:16:32that 14-day period how to make it work.
1:16:35And I made the exact amount of money
1:16:37literally $4,72. I still remember it. Um
1:16:40was what my rent cost. And I made that
1:16:43exact amount of money in the days that
1:16:45it took like to the dollar. I didn't
1:16:47even realize it until after the fact. To
1:16:49the dollar. And then I remember all my
1:16:51rent disappearing and then having to do
1:16:53it again for the next month and
1:16:54thinking, man, real estate's not a bad
1:16:56business. [laughter]
1:16:59Um, I was like, that guy just made
1:17:01literally every dollar that I made off
1:17:02of this last month and he didn't do
1:17:05anything. Uh, except he took the risk of
1:17:07owning the building.
1:17:10>> Do you think there's value in ignorance?
1:17:18I think that there is value in ignorance
1:17:21in that it lowers your action threshold.
1:17:24And so in a lot of ways, many
1:17:26entrepreneurs start saying like, "We
1:17:27didn't know what the hell we were
1:17:28doing." And it's like, "Of course you
1:17:29didn't because it was the first time you
1:17:30did it." And the thing that you have in
1:17:32common with every great entrepreneur is
1:17:34that the first time you do anything is
1:17:36the same way they approached it too,
1:17:38which is that they hadn't done it
1:17:39either.
1:17:40>> So they don't you don't have an you
1:17:42don't have an inherent disadvantage.
1:17:44>> The midway is one of your favorite
1:17:50>> because it's kind of like PTO's
1:17:51principle of like there's 8020 and I
1:17:54think the Midw meme just appears
1:17:55everywhere like there's so many like you
1:17:59know I want to start a restaurant well
1:18:00just make sure the food's good and it's
1:18:02not too expensive and then in the middle
1:18:04it's like inventory and staffing and
1:18:06like all this stuff and the end is just
1:18:07like just make sure the food's good and
1:18:08that it's appropriately priced and the
1:18:10same thing for you know fitness it's
1:18:12like all right just eat protein lift
1:18:13more weights you pick good parents,
1:18:15right? And then in the middle it's like
1:18:17set schemes and rep schemes and you know
1:18:19underlining perization and lipertrophy
1:18:20and cycles and blocks and blah blah blah
1:18:22and at the end you're like just you know
1:18:23try hard eat protein and pick the pick
1:18:25right parents. You think the next
1:18:26decade?
1:18:29>> Really good question.
1:18:41It's really tough. I think short-term,
1:18:43long term. I think short term, yes. Long
1:18:45term, maybe not.
1:18:49So
1:18:52I see technology as something that
1:18:54increases the value of one human and
1:18:56decreases the value of all humans.
1:19:00So
1:19:04if one person has a god robot, right,
1:19:07then that god robot makes that one human
1:19:10significantly more valuable, but it
1:19:12makes the value of every other human
1:19:14less valuable. Whenever a robot can do
1:19:18something that a human can do, it means
1:19:19that when that human does it, it is less
1:19:20valuable than it was before. Which then
1:19:23forces like, well, then it forces people
1:19:24to learn. I'm like, yeah, but if we take
1:19:25the equivalent, which is that it was
1:19:27once valuable and is no longer, the
1:19:29technology made the human labor less
1:19:31valuable. And so that only works until
1:19:33it can replace all labor and then money
1:19:36will still have value, but not labor.
1:19:39And that is where we get into a tricky
1:19:41situation.
1:19:43>> What do you think is going to happen?
1:19:45college and traditional school in the
1:19:46United States.
1:19:47>> Oh, I mean, who [ __ ] I mean, college
1:19:49college is so it's like I mean, I think
1:19:52that like college makes absolutely no
1:19:54sense. Um, and I and I' I haven't been
1:19:57as aggressive about that. In past, I've
1:19:59been like, well, it kind of depends, but
1:20:00that was like four years ago when I made
1:20:02that, you know, my first college video.
1:20:04I would say with the advent of AI, it
1:20:06has there's there's two things that have
1:20:07made college significantly less
1:20:09valuable. So thing number one is that
1:20:11the education that you get at college is
1:20:13for sure inferior now to free
1:20:15alternatives. Like that that was like
1:20:16maybe arguable and is now definitive.
1:20:19Like an AI tutor that can teach you
1:20:21whatever you want in real time is more
1:20:22valuable. On the other side, from a cost
1:20:25basis, it for sure doesn't [ __ ] make
1:20:27any sense because you can get a better
1:20:29thing for less. So like now there's that
1:20:30part. And so then the only thing that
1:20:32people make the argument for for college
1:20:34is that it forces networking for people
1:20:36to who are in lower who start with lower
1:20:38socioeconomic status to network with
1:20:40people with higher socioeconomic status.
1:20:42Um that is maybe the only thing but I
1:20:45mean like there's platforms like school
1:20:46and whatnot that can bring communities
1:20:47together. But the last piece is like
1:20:49okay well do you have higher earning
1:20:50power which is is literally just not
1:20:52true anymore. Like you don't have higher
1:20:53earning power as a result of being a
1:20:55college graduate. And so the value
1:20:57proposition is just is you don't get
1:20:59more educated. you don't get better job
1:21:02prospects. It costs money and takes
1:21:03longer.
1:21:06>> And I think that that has just gotten
1:21:07more and more extreme in the past four
1:21:09years. And I think that that will
1:21:11accelerate. Like if you're if you're 18
1:21:14years old right now,
1:21:16there's very little point in saying I
1:21:17want to become a doctor.
1:21:21Like by the time that you graduate eight
1:21:24years from now and then you finish your
1:21:26residency 10 years from now, whatever it
1:21:28is, like there will be surgical robots
1:21:31and diagnostic robots right now that
1:21:32they will just they that will literally
1:21:34beat humans at everything and we can say
1:21:36whatever we want. When it comes to
1:21:37health, I think people are going to be
1:21:38like, I would choose human, but I'm
1:21:41going to choose the thing that gets me
1:21:42to die less. And so yeah,
1:21:45>> if you were to make a new structure for
1:21:48the next generation of 18 year olds that
1:21:50would replace college, what would it
1:21:51look like?
1:22:03um
1:22:05>> yeah right
1:22:07um
1:22:11I actually think what Joel Lyman is
1:22:12doing with Alpha School is really the
1:22:15much better version of what education
1:22:17should look like which is two hours a
1:22:18day of kind of quote formal study which
1:22:20is AIT tutor driven which is learning
1:22:22based on the style of learning of the
1:22:24human and then six hours a day of kind
1:22:27of real life skills and social skills
1:22:28which are far more applicable and even
1:22:30in those two hours a day they advance at
1:22:32twice the speed at 98th percentile. And
1:22:34so it's just like the old system is
1:22:36broken. Joe Lyman thankfully is a
1:22:38multi-billionaire and like has the
1:22:40resources and horsepower to actually
1:22:42like affect change. Many people have
1:22:43tried to tackle education. Few people
1:22:45have succeeded mostly because education
1:22:46is such an entrenched governmentbacked
1:22:49blah blah blah. Um but yeah, for
1:22:5218-year-olds, I think I would more or
1:22:53less model that. And a lot of learning
1:22:57comes from eliciting trial attempts,
1:22:59which is how do I get people to try and
1:23:01do stuff, not to recite information,
1:23:03because once they get in the real world
1:23:05has very little to do with reciting
1:23:06information. And when information is
1:23:08available at your fingertips in real
1:23:09time and personalized, that skill is
1:23:11almost nothing.
1:23:18>> Structure.
1:23:19>> Build structure.
1:23:22I would put as much friction as possible
1:23:24between you and the things that distract
1:23:25you and as much lubrication between you
1:23:28and the things that you want to do. So
1:23:30for example um I have multiple layers of
1:23:34kind of like bricking you know or
1:23:37multiple layers of stopping myself from
1:23:39like scrolling for example. So like
1:23:41number one I have an app that like I
1:23:43have to scan and I can put the token in
1:23:45another room and like my phone cannot
1:23:47unlock until I physically go do that. So
1:23:48that's number one. Number two is I have
1:23:50physical things that slow down. Like
1:23:52even if that's not on, if I go on any
1:23:54social media, I have to wait 10 seconds
1:23:56between me hitting the app and it
1:23:57starting. So it delays the reward cycle.
1:24:00Um the third thing is that if I'm going
1:24:02to post, I'll typically post through a
1:24:04tool,
1:24:06even if I want to post in real time, so
1:24:08that I don't go on the platform to try
1:24:10and make a post and then lose 15 minutes
1:24:12getting, you know, sucked in. And so
1:24:14those are just like three micro examples
1:24:16of ways that I can just distance myself
1:24:18from something that distracts me. And
1:24:20then obviously on the other hand, uh
1:24:21lubricating the path of getting things
1:24:23done is just removing all distractions
1:24:25besides the work that you want to do.
1:24:31>> Um I mean
1:24:36I honestly do get inspired by looking at
1:24:38the best entrepreneurs of our time and
1:24:40like what they're doing. you know, the
1:24:41the the Altman's, the the Musks, the um
1:24:46you know, Gemini is not really sorry, uh
1:24:48Google's not really like an
1:24:49entrepreneur, but you know, uh Sundar
1:24:52and uh Satia, you know, just thrown down
1:24:55and like really making huge moves. Um I
1:24:59aspire to get to a point where I can
1:25:01make bets that move industries. I'm not
1:25:03there, but um that is something that I
1:25:06find very cool.
1:25:09>> You mentioned that You typically only do
1:25:12one thing.
1:25:16>> Can't tell you.
1:25:19>> You'll know. [laughter]
1:25:21>> You'll find out.
1:25:23>> Yeah.
1:25:24>> Even if you can't share details, what
1:25:29what gets you out of bed right now?
1:25:32>> Um I wake up pretty much automatically.
1:25:34Uh [laughter]
1:25:36um
1:25:41honest answer is I like what we do. I
1:25:43like coming here. I work out with people
1:25:46I like first thing in the morning. It
1:25:48sets my day up. Um
1:25:52we have a great team of leaders that are
1:25:54really competent that I admire that I
1:25:56like seeing. So, we have a community
1:25:58here at ACQ and Leila and I built it
1:26:01that way on purpose because we've done
1:26:02the entirely remote thing and for sure
1:26:05you're going to succeed with it. It's
1:26:06just like at what point you decide like
1:26:08how do I want my life to look and we
1:26:10wanted to have people around us that we
1:26:12thought were cool and so we structured
1:26:14our life to do more of that. Um, and I
1:26:17think a big part of that question is
1:26:18like well what else would I do? Like
1:26:20what is my best alternative? And there's
1:26:23not many things that I enjoy more than
1:26:25doing things I like with people I like.
1:26:26And I've just structured my work to be
1:26:28more or less that.
1:26:31>> What brought you to Vegas?
1:26:35>> Um,
1:26:38a handful of things. Um, number one, you
1:26:41have some of the best food and beverage
1:26:43in the world. So, that's cool. You have
1:26:44every entertainment show goes through
1:26:46here. So, if you want to see anyone,
1:26:47it's there. Um, obviously there's low
1:26:49taxes. There's also amazing trust laws
1:26:51here for asset protection. Um there's an
1:26:54airport that's direct flight to anywhere
1:26:56basically even international. Um so in
1:26:59and out that's super helpful. Also
1:27:00because Vegas is a hub and almost every
1:27:02professional comes here for at some
1:27:03point or another per year. It has
1:27:06built-in networking for me because I get
1:27:07texts every week of like hey I'm in
1:27:08town. Are you here? And the benefit of
1:27:10that is that I don't have to entertain
1:27:12them. It's like, hey, we can grab a
1:27:13drink or we can get lunch or we can
1:27:15catch a workout rather than being like,
1:27:16okay, now I'm going to entertain you for
1:27:18two days, which I can't really do. Um,
1:27:21and then a a bonus item number seven is
1:27:23that Vegas is one of the best Amazon
1:27:25distribution hubs and so we get same
1:27:27day, you know, within hours, everything.
1:27:29And um I see all those as benefits of
1:27:32Vegas.
1:27:34Also, it's, you know, a 30 minute flight
1:27:38from mountains, ocean, beach, water,
1:27:41hiking, whatever you want. I mean,
1:27:42hiking you do here, but like you can get
1:27:44whatever you want in the Southwest
1:27:46really easily.
1:27:49Those are my reasons for liking Vegas.
1:27:51>> So, you talk about working out with cool
1:27:54people. You have a lot of your employees
1:27:56in your gym.
1:27:57>> Can you tell us about that environment
1:28:00and what you like about it?
1:28:09I mean, I just think it's a great bot.
1:28:13Everyone's there. Everyone's trying to
1:28:14do better. Everyone's trying to push
1:28:15each other. I mean, a lot of the guys
1:28:17have gotten way bigger, gotten way
1:28:19stronger.
1:28:21And I think if we normalize
1:28:25working hard in the gym, I think it sets
1:28:29people up for better days.
1:28:34I mean, for me,
1:28:36working out at the gym is the highlight
1:28:39of my day. And so,
1:28:42I also know that it's not working out.
1:28:45So, like, I've worked out alone. I've
1:28:46had home gyms. And it took me a while to
1:28:49realize a couple things that make
1:28:50working like why do some workouts suck
1:28:52and some workouts are great. I can't be
1:28:54in a rush. If I'm in a rush, it's kind
1:28:56of like eating a four course meal or
1:28:58trying to like shove your face with
1:28:59McDonald's between meetings. It's like
1:29:01there it's you're eating both times, but
1:29:03it's very different when you're like in
1:29:04a rush to just like get a workout in
1:29:06versus like taking your time and really
1:29:08enjoying it. The second thing is like
1:29:10eating alone versus eating with people.
1:29:11Working out alone versus working out
1:29:12with people. I think working out with
1:29:14people not in a rush is one of the best
1:29:16things out there for me. Um I love the
1:29:19environment of lots of people pushing
1:29:21each other. Uh which then I think
1:29:23carries over to everything else that
1:29:25people do. Um, and I think in a gym in a
1:29:27gym environment, it allows people to be
1:29:29more relaxed and you get more time kind
1:29:34of you get more interpersonal time
1:29:36between sets than you do between
1:29:38meetings. And I think that strengthens
1:29:41bonds so that when work and hard things
1:29:43do happen at the job, there's rapport
1:29:46and trust that's already been built off
1:29:49out of the office that can transfer into
1:29:52the office. Do you positively reinforce
1:29:54your employees for working out?
1:29:57>> I think posit positive reinforcement
1:29:59occurs more than anything. So like
1:30:02if the boss is there, that in of itself
1:30:04will be reinforcement. If they feel like
1:30:06they're getting credit for showing up
1:30:07early and if I have deemed that showing
1:30:08up early is something that I find, you
1:30:11know, good, then they will associate
1:30:12with that. Um, so yeah, I think like but
1:30:17it's but the thing is is it doesn't mean
1:30:19that if people don't come and work out,
1:30:20I respect them less. It's more that I
1:30:22just get more time with those guys who
1:30:24choose to do it.
1:30:26Wouldn't even work if we had 150 people
1:30:28in the basement. So, like, it's it's
1:30:30good that everyone doesn't work out at
1:30:32the same time. It would suck. If you
1:30:34like this video and you're a business
1:30:35owner who wants to break through your
1:30:36current revenue ceiling, I distilled
1:30:37every lesson from scaling 10 businesses
1:30:39past 10 million and three businesses
1:30:41past 100 million into a completely free
1:30:43scaling road map that I've used to go
1:30:44from 0 to 1, 0 to 10, and 0 to 100 plus.
1:30:47And so, you can click here and you can
1:30:48check it out. Again, absolutely free.
1:30:50And since you're a business owner,
1:30:51appreciate you and uh enjoy

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