3 Things You Need To Outperform 99% Of Entrepreneurs
22 Jun 2024 (3 months ago)
Top traits founders should take from Dana White
- Dana White, the founder of the UFC, is an exceptional entrepreneur known for his strong will, decisive action, and challenging conventional norms.
- While companies like YouTube and Google emerged as a result of technological advancements, companies like Tesla and SpaceX owe their existence to the vision and determination of their founders.
- The UFC's success is attributed to Dana White's leadership and perseverance, as it faced numerous challenges and nearly went out of business before becoming a billion-dollar enterprise.
- Dana White's close relationship with Donald Trump stems from his efforts to secure venues for UFC events.
- White believes that fighters are passionate individuals who find fulfillment in their profession, and that depriving them of fighting would be detrimental to their well-being.
1 - Brute force
- Force of will is a key trait of successful founders, exemplified by Dana White's quick decision-making and action-taking during challenges like the COVID-19 pandemic.
- White's ability to adapt and innovate, such as creating Fight Island, demonstrates his resilience and tolerance for stress.
- The greatest founders and CEOs can cut through distractions and focus on what's important.
- Copywriting is a valuable skill that can transform your business career.
- Sean and I have created a comprehensive document summarizing our copywriting tips, techniques, and frameworks.
2 - Extreme bias for action
- Elon Musk demanded a six-week turnaround for a task estimated to take six months, demonstrating his determination and urgency.
- Musk challenged default assumptions and timelines, pushing his team to think critically and find faster solutions.
- Former colleague EMT rigorously questioned plans and assumptions, ensuring well-reasoned and efficient decisions.
- Team members became more prepared, focused, and detail-oriented in their presentations, knowing their logic would be scrutinized.
- Steve Jobs prioritized the truth above all else and expected the same from others, even if it meant being direct and honest.
Quick audit of Dana White's gambling claims
- Dana White claims to be up $17 million against Caesar's Palace playing baccarat and blackjack.
- He says he has only lost twice this year, but his math doesn't add up.
- He portrays himself as a skilled gambler, but baccarat and blackjack are games of chance where the odds are against the player.
- Professional blackjack players are considered the biggest losers in the world because they are skilled at a game that is stacked against them.
- Be willing to go to war. Dana White thrives on the challenge and competition of gambling, even when the odds are against him.
- Have a clear goal and be willing to walk away when you reach it. Dana White has a rule that he walks away when he wins a million dollars or loses six million.
- Don't be afraid to take risks. Dana White is willing to bet big and take risks, even when it means risking losing a lot of money.
3 - Speed
- Force of will bias to action and speed are essential for outperforming others.
- Dana White, the president of the UFC, exemplifies this by starting work early and expecting the same from his employees.
- The head of PR for the UFC works tirelessly, often accompanying White to press conferences that take place at 2 a.m. in New York time, followed by another press conference in France on Monday.
Checklist for a perfect niche event business
- Jesse Itzler and others started 29029, an outdoor race where participants run up and down a hill to reach the equivalent of Mount Everest's height.
- The event has seven events per year, with each event limited to 300 people.
- In 2023, all events sold out in four minutes, generating $13 million in ticket sales.
- The business offers accommodations, including Fairmont hotels and glamping, as part of the event package.
- Despite the impact of COVID-19 in 2020, the business has recovered and is thriving.
- The event's success is attributed to several factors:
- Storytelling: Creating an exciting and unique experience that people want to share with their friends.
- Challenge: Setting a challenging but achievable goal, with a 70-75% success rate.
- Skill acquisition: Participants learn a new skill or improve their fitness during the event.
- Beautiful locations: The events take place in scenic and visually appealing locations.
- Storytelling: Create an exciting and unique experience that people want to share with their friends.
- Challenge: Set a challenging but achievable goal.
- Skill acquisition: Participants learn a new skill or improve their fitness during the event.
- Beautiful locations: The events take place in scenic and visually appealing locations.
IDEA: The Beer Mile
- Combine fitness and drinking to create a fun and profitable business model.
- The Beer Mile: run a mile while chugging four beers at designated intervals.
- The Paddle Prison Break: a paddle boat race from Alcatraz to the coast of San Francisco.
- The Beer Marathon: a half marathon with 13 beers or a quarter marathon with six beers.
IDEA: Paddle Prison Break
- Paddle Prison Break: a race where participants start in handcuffs and must paddle from Alcatraz to the coast of San Francisco.
- Incorporate a swim race element for added challenge.
- Require participants to have a criminal record for authenticity.
IDEA: Skyline Scramble
- The speaker discusses the concept of experiential businesses and their fulfilling nature compared to solely operating online.
- The speaker suggests unconventional business ideas for unique experiences, such as a race through NYC without touching the ground and a citywide game of Red Rover in Boston.
- The speaker emphasizes the importance of creating memorable experiences in the fitness industry, similar to the concept of viral food.
- "Wander.com" is offering a special deal where listeners can enter a giveaway for a luxury vacation and receive a discount on their next booking.
- The speaker expresses fascination with the high-quality photos on "wander.com" and how they influence travel decisions, leading to unexpected vacation choices.
Growth vs EBITDA vs cash flow
- When running a business, there is usually a priority order among growth, EBITDA, and cash flow.
- The Hustle initially focused on revenue growth, then cash flow, and lastly profit.
- An example is given using a $1,200 annual subscription:
- Cash flow was $1,200 when received in June.
- Revenue was only $100 per month the customer stayed, due to accounting principles.
- Profit was $25 per customer after deducting $75 production cost.
Shaan's Guide to Increase EBITDA
- Shaan's business experienced rapid growth over four years, with revenue increasing by 50-100% annually.
- Despite the growth, no personal income was taken from the business, as everything was reinvested.
- In one year, the business broke even despite generating eight figures in revenue.
- The cash position remained steady, but inventory assets increased, tying up cash.
Step 1: Create an EBITDA budget
- Determine the right EBITDA target by talking to people in the same industry.
- Create an EBITDA budget by allocating revenue to different categories like overheads, cost of goods sold, and marketing.
- Identify areas where you can find extra profit margin.
Step 2: Communicate the plan relentlessly
- Communicate the new priority of focusing on EBITDA growth to the company leaders.
- Ask department leaders to find ways to increase their margin and create a plan to achieve it.
Step 3: Track and report
- Create a report that tracks the progress of the EBITDA improvement plan.
- Review the report regularly (weekly or monthly) to monitor progress and make adjustments as needed.
Step 4: Tie into incentives
- Align incentives to achieve specific goals.
- Example: Tying CMO's bonus to eida (earnings before interest, depreciation, and amortization) targets.
Step 5: Repeat every 30 days
- Regularly review and optimize expenses.
- Conduct "spring cleaning" to identify and cut unnecessary costs.
- Repeat the process every month or two to continuously find areas for improvement.
Next stage: Cash flow
- After improving eida, focus on optimizing cash flow.
- Identify where cash is tied up, such as in inventory.
- Implement strategies to ensure that profit results in free cash flow.
- Balancing growth, profit, and cash flow is crucial for a successful business.
The benefit of playing on Hard Mode
- Playing on hard mode has disadvantages and is not a voluntary choice.
- If you ever get to play an easier game, you will dominate.
- Example: Someone who played college tennis is naturally good at pickleball.
- Example: Andrew and Chris from Tiny ran agencies (hard mode) before e-commerce (easier mode) and were able to significantly increase margins.
Is e-commerce dead?
- Retailers taking advantage of the TikTok flywheel are winning in e-commerce.
- TikTok flywheel: creating content on TikTok (self or via affiliates/UGC creators) to drive traffic to online stores (TikTok shops, Amazon, DDC shops).
- This flywheel is effective for certain categories, not just those targeting young people.
Shaan's $30M dollar dream house
- The house is 11,000 square feet with an estimated market value of $23 million.
- It has stunning views of the Golden Gate Bridge and the ocean.
- There's an infinity pool that spills over into the Pacific Ocean.
- It has a wine cellar bigger than the speaker's childhood bedroom.
- There's a home theater and a half-court basketball court with floor-to-ceiling windows overlooking the Golden Gate Bridge.
- The house has a 25-foot ceiling with glass windows facing the ocean.
- It was previously owned by Sharon Stone and a dentist.
- The speaker needs $28 million to buy the house and plans to borrow the remaining $2 million.
- Maintenance, taxes, and insurance costs are estimated to be at least half a million dollars per year.
Shaan writes an essay
- Shaan enjoys writing essays as a creative outlet and to share his insights.
- The act of having to deliver something regularly, such as a podcast, creates a feedback loop that encourages continuous learning and the search for interesting topics.
- Writing essays allows Shaan to explore his curiosity and make connections between different ideas.
- Shaan's unpublished essay, titled "Painted Chickens," will be published on his website, sean.com.
Sexier core principles
- Chipotle is facing criticism for skimping on food portions, leading to a decline in taste and customer satisfaction.
- A former Chipotle executive revealed that the company changed its supply chain after facing E. coli scares, resulting in less fresh and flavorful ingredients.
- The company reduced the number of suppliers and shifted to mass production, compromising the taste of the food.
- A company's values should be genuine and meaningful, not just lip service.
- Memorable company values are often catchy and provocative, making them more likely to be remembered and used by employees.
- True values require sacrifice and are not free.
- Prioritizing speed without accepting the risk of making mistakes leads to ineffective values.
- Nike's slogan "Just Do It" exemplifies the idea that true values imply a cost and require overcoming discomfort.
- A company's culture is best reflected in how employees behave when the boss is not around.
Culture: What people do when the boss isn't around
- To differentiate your company, select a defining characteristic that sets it apart from competitors in your industry.
- Ensure that your company's mission and values are realistic and acknowledge the costs and trade-offs involved in achieving them.
- Maintain consistency between your company's values and mission across all customer touchpoints.
- The speaker discusses the concept of brand congruence and its rarity in effective implementation.
- The speaker admires a high-end brand that aligns with their values, even if it may not match their personal style.
- The speaker recognizes the significant impact of language on their life, such as changing "heavy dinners" to "light suppers" to improve their diet.