Ep #59: Conversation with Leila Hormozi

 In Podcast

Kris interviews another amazing woman who shares how she’s leading through these crazy times. In this interview, Kris talks with Leila Hormozi, Co-CEO for three separate companies; A.L.A.N, Prestige Labs, and Gym Launch Secrets.

Biography – Leila Hormozi

Leila HormoziLeila Hormozi is an entrepreneur based out of Austin, Texas. She currently holds the position of Co-CEO for three separate companies; A.L.A.N, Prestige Labs, and Gym Launch Secrets.

Gym Launch Secrets was established 4 years ago and provides the tools needed to boutique gym owners in order to allow them to grow their businesses in a competitive and commoditized industry.

Prestige Labs is a food and supplement company aimed at delivering the highest quality products right to their customers doorsteps.

A.L.A.N is a newer undertaking with a broader audience in mind- The company’s aim is to help agency owners who serve in-person businesses achieve exponential growth via their lead generation efforts.

What you’ll find in this episode:

  1. What Leila’s first thoughts were once she realized the pandemic was going to last more than a couple of weeks.
  2. The common practices that she has as a business that operates with everybody in their own part of the world.
  3. Some of the things that she’s doing right now that are helping her business pivot.
  4. What her thoughts are around being prosperous and generating revenue right now.
  5. Leila’s company’s core values.
  6. Leila’s advice for leaders who are trying to hold it down and keep it going through all of this.
  7. The importance of looking at your WCS – worst case scenario.

Featured on the Show and Other Notes:

  • Leila’s website
  • Leila’s Instagram
  • Her husband’s Instagram
  • My new program called Leading Through Crazy Times just started. We’ll cover the four essential areas you need to focus on as a leader: your brain, your plan, your focus and your team. This will include an employee kit (a special module with 8 lessons/insights for your team and anyone else you care about to share with freely), two coaching calls per week and Saturday calls every other weekend.
  • Reply to any of my emails I send you or go to Instagram or Facebook and let me know how I can help. What are the top things that are on your mind?
  • I read reviews on the show! If you like this podcast, please leave a review. Go to your podcast app and find the reviews section. Thank you!
  • The Founder’s Lab is my private coaching program for female founders who are generating more than 7-figures in their revenue. It’s a complement to the Entrepreneurial Management program (with Brooke Castillo) and is a part of the work you get as a client of mine. This isn’t a “class.” I don’t give you copious tons of things to do. I give you the ones that matter and then we keep talking about them. We apply them. That’s why it’s called the Founder’s Lab.
  • Go here to book an appointment with me.

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Podcast Transcript

Kris:

Hey, I’m Kris Plachy, host of the Lead Your Team Podcast. Running a million dollar business is not easy, and whether you’re just getting started with building your team or you’ve been at this for a while, I’m going to bring you honest, specific, and clear practices you can use right now, today, to improve how well you lead your team. Let’s go ahead and get started.

Kris:

All right, everybody. Welcome. Welcome. I’m so happy to have you here and join me today with Leila Hormozi. Leila is… I know I say this about all of my clients, but I mean it. I just love everybody I get to work with. I’m so lucky. Leila is the Co-CEO of Gym Launch Management, which is really the compilation of four businesses that all support and serve brick and mortar businesses in some way, shape, or form. And I’m going to let her talk a little bit more about that, because that evolution is actually even happening right now as a result of some of the changes that we’re all going through. So welcome Leila. Hi.

Leila:

Hi. Happy to be here.

Kris:

I’m so glad you’re here. So Leila, we’ve worked together for, I think, almost a year now, ish?

Leila:

Yup. Just about a year now.

Kris:

Just about a year. Yeah. And have really, this has been such a fun time in your business. It’s my word. I don’t know if that’d be the one you would use. And it just keeps getting more fun. Right? And so this is part of a dialogue that I wanted to have with my clients and business leaders who are all in different kinds of businesses, to talk about how you’re managing through and leading through this very disruptive time, and also very opportunistic time. A really incredible time for a lot of businesses as well. So I guess my first question for you is when this all started to kind of wave through the US, we saw it coming, and we didn’t believe it, and then it hit. So Leila, tell me a little bit about, just tell everyone what your business does, who you focus on.

Leila:

Yeah. So we started, my husband and I, four and a half years ago, we started Gym Launch, and that was the first entity. And that is just a business that helps gym owners scale their businesses. So acquire customers, sell customers, fulfill, retain, upsell. It’s basically like a gym in a box, almost, the systems that we put in place. And we’ve been doing that for about four and a half years. And then off of that we just saw opportunities within that customer segment to expand the kind of services that we could offer. So we started a physical products business for example, which is essentially food and supplements that gyms can then resell to their customers as affiliates of ours. And then we’ve expanded that past gyms to physical therapists, chiropractors, med spas, anyone who wants to sell food or supplements.

Leila:

And then going hand in hand with that we developed a software. And that software was developed originally for our gym launch customers. It’s essentially a bot with AI backing that gets leads that digitally opt in to show up at their facilities. And we’ve expanded that to basically be industry agnostic. So in that sense we work with marketing agencies that are in brick and mortar. They market for any brick and mortar service, basically.

Kris:

Yeah.

Leila:

And we plug in with them. And then what that means is that the leads that they’re generating for say their restaurants or their chiropractors or their gyms, those leads are worked thoroughly so that their clients have more people showing up in their facilities than they would if they weren’t using the software.

Kris:

Awesome. So, so much trajectory of growth, really, for all of you guys, but you’re so nimble, too. You’re really, really adaptable to what’s happening in the market as well, which is fun.

Leila:

Yeah.

Kris:

Okay. So let’s talk about what happened, though, in your brain when this… Because a lot of your clients aren’t brick and mortar, they’re front line, especially gyms. Right?

Leila:

Yeah.

Kris:

So what happened in your mind when this first hit and everybody was closing or sheltering in place. What did you guys originally think about that?

Leila:

I think I had numerous thoughts, and I just shuffled around which one, I was like, “Oh, this won’t last long.” That was the first thought. And then I think within three or four days I was like, “Oh, just kidding. This is going to last for a while.”

Kris:

Yeah. Remember when everyone thought it was just going to be two weeks?

Leila:

Yeah. Yeah.

Kris:

Remember how cute we were?

Leila:

It was fun. And then I started getting nervous. You know, honestly, I wasn’t as nervous as I thought I would be, because, I think, we had in our minds predicted a recession to come sometime around now, and this is, obviously, much worse than a recession. However, a lot of the consequences are similar. There’s obviously unknown consequences because this is an unknown event, but aside from that, the second thought was what do we need to do to be proactive right now?

Leila:

So for the last year we’ve made a lot of moves to be proactive in case of an economic collapse coming. I’m glad, now, that we did, but then it was just, what do I do now? I would rather overreact and be more proactive and have people think I’m crazy then underreact, and just hide and retract, and so it just went into, okay, for each entity, how do we have to pivot it? Say this is going to be the new reality for the foreseeable future, what do we need to do to make the businesses last, and make sure that they’re not as vulnerable as they are today. Which, when I say today, that was about three and a half weeks ago.

Kris:

Right, and next Monday it’ll be something else. Right?

Leila:

Totally.

Kris:

Yeah. And so how did you help, because I know you and your husband are, you’re very fast thinkers, you’re very progressive and innovative. How do you keep the team going with you through this process?

Leila:

I think it’s overcommunicating-

Kris:

Mm-hmm (affirmative).

Leila:

And every time I did a leadership training with them, I think it was two weeks ago, and I basically talked about overcommunication, which is, if you say it, it should also be delivered in email, and then possibly put an Asana task with a project deadline.

Kris:

Mm-hmm (affirmative).

Leila:

Let it be shown everywhere. During times like this I attend a lot more meetings, so teams that I wouldn’t normally be on their normal cadences. I attend their weekly meetings, I’m on a lot more daily huddles, and I’m just reiterating and relaying information from other teams, and then reassuring them of where we’re at as a company. I show a lot more face, as does my husband, because I feel like they need to know that we’re stepping up. We’re not retreating back.

Kris:

That’s so good. And you know what? You made me think of something, because you guys already manage a virtual business. How many employees do you have?

Leila:

In house we have 53, and then out house we have about 45.

Kris:

Okay, so you’re used to this whole virtual, people working from home, right?

Leila:

Totally. I’ve never worked not at home.

Kris:

Why do people, why would anybody do that? Which I actually think is going to happen.

Leila:

I agree.

Kris:

I think we’re going to have this interesting boomerang of people being like, “Wait a minute. I can be just as productive sitting at home than driving for two hours on the freeway every day.”

Leila:

Probably more.

Kris:

Yeah. And I think employers need to be ready for that. That’s a side note. Like, game on. Everything, all of our expectations are changing, but I did just do, I released a video this morning to people who are subscribers of my list, and clients of mine, on how to manage a team when they’re working from home, and how to hold them accountable. But because you’ve already been doing that well, and you’ve already said one thing that I think was so helpful. You said, overcommunicate, actually more than one. Increase your presence, be very present, and you also talked about having stand ups or daily huddles. So just in general, what are some of your common practices that you have as a business that operates with everybody in their own part of the world that you think works?

Leila:

I think structured communications is really important. So it’s mandatory that every personnel leadership position does one-on-ones with their direct reports each week. They also have, either they can do every other day or every day, daily huddles with their teams, or even their little pods, depending upon how the department’s structured. And then in those they have agendas of what they review. Typically, KPIs of each role, and also a chance for each teammate to say where they’re stuck, as well as what went well the previous day.

Kris:

I see. Yeah.

Leila:

And then on top of that I would say you have to have visibility. So transparency. So two things I do are, one, I utilize Asana a ton. I love Asana. I basically ask people to always put their projects and deadlines in there always. And then the second one to that is the calendar. So I was only doing it with two departments until not that long ago. And then I made it mandatory, which, I don’t like making things mandatory, but I was like, man, I have to. People don’t know what they’re missing. So basically the eight hours that you’re working a day, I should be able to look on anyone’s calendar, know what you’re doing at what point in time. You’re not allowed to say project work. You’re not allowed to say admin tasks. It has to be specific.

Kris:

Yeah. And it is, because I think a lot of times, especially for leaders who are used to just walking around and they see people, it’s like somehow they’re lulled into, they’re working, which isn’t actually necessarily even true.

Leila:

No.

Kris:

You having that… I like to advise my clients to do that even if they’re not virtual workers. Everybody should have a planned week with their [inaudible 00:10:07] and what they’re doing every week. So that’s really good. I think we take for granted, those of us who’ve worked from home and have managed teams from home that that can be done, but you need to have clear expectations, clear systems, clear follow-up and accountability to those systems, too. Right.

Leila:

Yeah, that’s the first thing.

Kris:

Yeah. But it’s important. Yeah.

Leila:

Yeah, yeah. Simple things. Like if you have a meeting, send out the notes right after, have someone who’s taking notes and they send a recap. Just simple stuff like that.

Kris:

Right away. Yeah. Because a lot of people don’t learn or pay attention very well in the way that we’re now working. They like to be in the room with other people.

Leila:

A lot of people, unfortunately, they’ve got five kids at home. I see their kids come in when we’re on a meeting and I’m saying something very important and I’m like, “Oh, I hope they didn’t miss that.”

Kris:

Yeah. Which they did.

Leila:

Totally did. They would miss it without their kids.

Kris:

Yeah. You know they did. Okay. So let’s talk a little bit about, because you guys pretty much what I heard you say was first we were in a little bit of denial, like this isn’t going to be a big deal. And then we realized oh wait, this is actually kind of a big deal. And so you started pivoting. The other thing that I heard you say that this has been really a potent lesson I think for a lot of small business entrepreneurs and that is planning for this. Whatever this is, right? Like a moment in time where you can’t generate the same revenue that you have been used to. And so I want to talk about that a little bit also, but what are some of the things that you’re doing right now that are helping you all pivot? Or even what are some of the launches or the products that you’re changing or how are you changing up your business that you’re to pivot?

Leila:

I think it’s a mix of concepts and then tactics, right? So conceptually for the clients that we do have, I said, “What I want you all to understand is that we do more for the same,” meaning we do more for our clients now for the same amount that they’re paying us. And so that’s the first thing that I wanted to get into everyone’s heads. And so we’ve really worked on the new things that we’re going to continue to do and that we’re not going to let off the gas on just over-delivering and doing more than we have in the past. The second piece is looking at for each entity, how do we have to pivot to accommodate the customer? So in gym launch, that means, you know gyms are really lucky in my opinion, because it’s not a dentist.

Leila:

A dentist, it would be very difficult to do something virtually. A gym, online training is the number one thing that’s booming right now.

Kris:

Exactly.

Leila:

Fitness just went up 500%. And so we just have to-

Kris:

It’s popping.

Leila:

Right. And so we just took them. And we already had a virtual gym model. A lot of people choose to do it because to run a gym and have virtual clients was I think operationally heavy for a lot of those people. But it’s funny because out of necessity now they’re all making it work.

Kris:

Yep.

Leila:

And so we created that system. And then with that we also had our software, which gets people to show up to in person appointments. We’re like, “Well, that doesn’t really matter if you can’t go anywhere.” So we had our developers just work a week straight every day, all night, taking shifts and we changed it so it could do remote appointments for online consultations that led it to Zoom and to phone.

Kris:

Brilliant.

Leila:

And that plays a huge opportunity because now, even if things open back up, we can serve both kinds of businesses. We don’t just-

Kris:

Absolutely.

Leila:

Right. And so it was something in the roadmap eight months from now, but we just said, “Look, let’s do it now and how can we do it as fast as possible?” The third piece of that was for food and supplements, we changed a lot of our marketing messaging to help an immunity because people are… So our marketing messaging for anything right now, it goes from inspiration to preservation, right? So if you look at the buyer’s curve right now, the likelihood that someone buys something out of inspiration is like 20% versus, and they buy it out of preservation, you get 80%.

Kris:

Wow. Interesting.

Leila:

Yeah. And so even with Gym Launch, it’s not grow your gym and be free and do all that. It’s survive.

Kris:

Mm-hmm (affirmative).

Leila:

And then with supplements it’s protect yourself, stay healthy, etc. And then food, well right now people can’t go grocery shopping. So that’s not-

Kris:

Yeah and your done for you meals are really, really tasty, so, right. I mean, those come and show up, it’s good news for people.

Leila:

Yeah. Yeah. And so a lot of, it’s changing your marketing messaging to reflect what’s happening now and then changing your product however you have to. It’s worked very well. Our business… The inflow has increased since we made this adjustment, drastically, which is pretty crazy.

Kris:

So let’s talk about that because you know that I just had Jody Moore on the podcast and we talked about selling, right? And there does appear to be a lot of interesting comments and ideas and thoughts about people who are trying to generate revenue right now. And I have a real specific philosophy on that, which is if you can generate revenue, if you’re in the kind of industry that can be successful and thrive right now, I think you actually almost even have a responsibility to do that because you’re helping contribute back into the economy.

Leila:

Yeah.

Kris:

Right. You can order from your local pizza joint and you can do all the things that that can help make sure those places are still here in three months when we all want to run and flock to them. When we get out of our house. So what are your thoughts? You and Alex I know have very clear thoughts about selling and generating revenue and prospering and being successful. So what do you think about what I’m saying?

Leila:

I agree with you. I think that you have a responsibility. I think that people who say that don’t understand how the economy works. I think that’s really what it is. I think that they’re in the dark, they just really don’t understand it and they don’t understand the repercussions that that has on everyone.

Kris:

Right.

Leila:

Companies don’t make money. If companies don’t make money, don’t sell, then people don’t have jobs. And we’re seeing that happen across the country right now. And I think it comes from a scarcity mindset. And so I know we’ve had clients that have had a hard time recently selling and I say selling is just a transfer of belief. And so if you as the business owner are hoarding money, not spending money, how are you going to convince somebody else to give you freaking money? You’re not.

Kris:

That’s a good point. No.

Leila:

Yeah. So I’m like, if you-

Kris:

Same with toilet paper, by the way, if you’re hoarding, if you are one of those people who has 17 Costco things of toilet paper in your garage right now, I’m not having it. I’m mad at you right now.

Leila:

My neighbor down the street with two newborns is like, “I hate you,” because she can’t find any.

Kris:

It’s so awful. So yeah. That’s such an interesting, I haven’t heard anybody say that, but you’re absolutely right. If your busy hoarding, you’re not giving. So how do you expect to be able to enlist other people to do the same with you?

Leila:

It sounds so fascinating. I love it.

Kris:

Yeah. And it’s such a healthy way to be thinking. And you have a team of people that you I know feel responsible for and want to continue to support and help and help their families thrive. And so it’s tough. It’s a tough balance because I know there are some businesses that are legitimately just doors close. There’s nothing that can done right now. And yet even the ones, you know, my husband’s business is closed because he’s a physical therapist, but he’s doing video consults and he’s figuring it out and he’s actually really enjoying it. And I’ve another client who figured it out and she’s like, “I think I could actually have a better business model doing this than what I was doing before,” which is super interesting, right?

Leila:

It’s just perspective.

Kris:

Always about that, isn’t it?

Leila:

Yeah.

Kris:

It’s kind of liberating and sometimes a bad thing that all it is, is perspective.

Leila:

It really is. We talked to about six other people in our space and they were down almost 50% in revenue.

Kris:

Wow.

Leila:

And they’re feeling bad for themselves, they go, “Oh, it just sucks to be in this space, huh?” And we happen to know one other person in this space who’s about the same size as us and he’s up and we’re up. And we’re like, just because everyone else is going down, it doesn’t mean you need to too. But if you believe that that is your destiny, then it definitely will be.

Kris:

Absolutely. And I do think there’s a lot of resignation to that. Like, “Well, you know…”

Leila:

That’s what we were talking about. We talked about this a lot, which is people are already tired. They’re already burnt out. They’re already like, “Why did I open this business?” So now it’s like, well of course mom’s going to understand when you’re like, “Yeah, you know, what can you, COVID took me out.”

Kris:

Yeah.

Leila:

It’s like, did COVID take you out or did your mind take you out? Because you decided COVID was a great excuse.

Kris:

Right? Yeah. And I do think for the businesses that were already struggling and were sort of like, yeah, it’s time, like this is a good excuse. That’s fine. If this is a graceful exit for you, whatever, take it. Right? But for the folks who are all in, I think this is just going to be such an interesting exercise in perseverance and resilience. And one of the key things I talk about that I keep reiterating in sort of the steps that I’m watching my clients go through is this willingness to take risks in a way, not necessarily financial risk, but more like I am going to risk failing greatly while people are watching me.

Leila:

Yeah.

Kris:

Because there’s a lot of opportunity right now to be very seen as you fail, right? Because you have this captive audience unless they’re watching the news or Netflix. And so I do think that that resiliency of spirit, just testing and trying, that’s what you guys have been doing, right? For three weeks. It’s like, let’s get this, let’s work on this, let’s make this work, right? And sometimes that pans out. Sometimes you have to pivot again.

Leila:

Yep.

Kris:

And I do think that takes a lot of endurance to weather failure.

Leila:

It does. And I feel that everything that has happened prior to this has prepared us. We were having a conversation last night at dinner and Alex was like, “Man, I just feel really ready for this,” and I was like, “I do too.” And I think our whole team does.

Kris:

Yeah.

Leila:

Because I had a lot of mentors who had been through the last recession and they told me you need a team that’s adaptable, you need a team that can move fast. You need high performers. And I just believed them because they told me what happened to their businesses because they didn’t have a team like that.

Kris:

Yeah.

Leila:

And I went, “Holy crap. It’s true,” because I’m watching all these other companies who’ve got people who are afraid. They don’t like change. They can’t move fast and they’re failing.

Kris:

Yeah, absolutely. And I love that because it’s such a great echo of the core values you guys have for your business, which are what? What are your core values, Leila?

Leila:

Grow or die. Speed is king. Be your own boss. Do the boring work. Don’t sugarcoat it and have humility.

Kris:

There we go. Well done. All of those are currently well referenced daily, right? They’re your backbone. Which takes me out into my normal day to day work that I do with my clients about why your values are so incredibly important to know and build off of and then hire from. Right? Because you’ve built this team.

Leila:

Absolutely.

Kris:

Yeah. So good. Okay. So what would you say, because I know I have people who are listening to this who are small, just getting started, and like, “Really right now?” Or you know, really big thriving businesses but maybe even as leaders are a little overwhelmed. What I get a lot is just every day there’s a new thing, there’s a new law I need to learn. There’s a new decision I have to make. I have people who are like, everyday should I keep my employees? Is it better to let them go? What’s the advice or the wisdom you would want to share just for leaders in general who are trying to hold it down and keep it going, but also are human through this as well?

Leila:

I think it’s alleviating your own anxiety by dissecting what the worst-case scenario is. So the first thing that we did was if revenue were to drop to here, what happens? If it drops to hear what happens? And if it drops here, what happens? We basically modeled out four scenarios and then we made the decisions right there of what would we cut, what would we keep, in terms of resources and team. And then what’s the last resort, right. Do I think those things are going to happen? I mean, I hope not, but when it comes, if you have to decide then, you’re so emotional that I don’t think you can make a decision well.

Kris:

Exactly.

Leila:

Yeah. I think planning it and looking at it like that’s the worst case scenario, right? We came down to it where it was literally worst-case scenarios, like we sell our CFO’s time for her consulting to other companies.

Kris:

To other companies, brilliant.

Leila:

Yeah we were basically like, “We’ll rent out our executive team.”

Kris:

Yeah, she’s worth something. Let’s make a marketing funnel for her.

Leila:

Yeah. That was pretty much it. And it’s kind of fun because it’s like, is that even that bad? No.

Kris:

No.

Leila:

I don’t mind.

Kris:

My husband and I did that too. And he’s like, look, here’s the worst case. If you get no more clients, which right. There’s nobody ever wants to work with you again. And I can never open my PT practice again, I could go work for UPS, we could live in an apartment. You just have to hit that point where it’s… I mean it’s important, and it does make you giggle like, okay, yeah, actually, okay, I got that. But I’m so glad you actually said that. That was completely unprompted and a few podcasts ago, that was actually what I said step one was, you got to your WCS, your worst-case scenario.

Leila:

Worst case scenario, absolutely.

Kris:

As soon as you do it, you do the… That’s why I think everybody needs a coach also because sometimes when you do that worst case scenario, you’re like, “Whoa, man,” and your brain, that’s why nobody looks at it.

Leila:

Yeah, right. It’s emotional. Making those decisions.

Kris:

Of course.

Leila:

It’s like I don’t want to let Sally go. It’s like, well, if you keep paying Sally, then you won’t have the business.

Kris:

Right. Or you know, I had a business owner on a call in my leading through crazy times course that I’m doing, who said her worst-case scenario was that she died, right? I’m like, all right.

Leila:

Whoa.

Kris:

She said, “Well, I’ve got two kids and I’ve got a mortgage and where would they live? And they wouldn’t have cars and they wouldn’t be able to go to college.” And I said, “Okay, so here’s the best news, that plan should already exist,” if you’re a single mom and a business owner and your kids are totally dependent on you. What is that plan anyway?

Leila:

Right.

Kris:

Not just now. Right? But who wants to think about that on a regular basis? Nobody. But then you write the plan and you enlist. I’ve already talked to my girlfriends who are coaches. Like if I go down with this thing for a little bit, can you pitch in, coach for me? Let’s make a plan. Right?

Leila:

So many options.

Kris:

There’s always options.

Leila:

Yeah. Yeah.

Kris:

But the mind doesn’t want to evaluate, doesn’t want to look at what if I don’t make any money, it doesn’t want to look at if I run out of money, it doesn’t want to look at that. And so then we avoid it and then we don’t deal with reality. So I love the way that you said it because let’s be emotional now while we’re making the plan and process it versus emotional without a plan the day you really have to decide do I fire Sally? Because then you’re just a basket case in that process. I’m so glad you said that. That’s it. To me, I couldn’t agree more. Every single one of my clients who has done that is thriving right now. Doesn’t mean they’re necessarily doubling their revenue. Because some models right now, that’s just not what’s going to happen. But they are thriving. They are still taking action. They’re innovating, they’re creating, they’re engaging whoever their customer base is, they’re on it because they did that.

Leila:

And I really think of this time as I am excited to lead the company through this because I feel that I can do it and I’m capable and I feel like how much trust can I gain from them during this time and how much more are they going to respect us watching us lead them out of this and lead us even to a better spot through this then we were before.

Kris:

So good.

Leila:

I think about that. What story do I want my team to tell me, about our company five years from now, and how we handled it?

Kris:

That’s actually one of the questions I wrote in the first module of the Thing is what do you want the narrative to be about you as a leader after this is over? What do you want people to say about you? Because you have so much authority and control over that. And not because of the platitudes or whatever, but really this is an opportunity for you. You’re already a tremendous leader, Leila. So that’s undisputable as far as I’m concerned. But what an opportunity to really claim space.

Leila:

Yeah.

Kris:

You manage people through this, it’s what else you got it? Bring it.

Leila:

Yeah. And it’s funny for me. It’s also some of the decisions we’ve made in the last year, year and a half about the company I think weren’t understood until now. We eliminated an entire department and laid off 30 people and that was so hard for the company. And I think that a lot of people were like why would you do that if we have the money wouldn’t we want to keep paying them, etc. And then times like this happened and I’m like, how glad am I that I did that? Because if we had double the payroll right now, it would be a lot less comfortable.

Kris:

Exactly.

Leila:

I wouldn’t have as much padding to weather people through the storm.

Kris:

And you wouldn’t have been able to move as quickly if you have 30 more bodies that you had to get on board and shift and move, right?

Leila:

No, no, not at all. And I did it with that kind of thinking in mind, which was… And so it feels like this full circle thing that came around too, which was like I always wonder was that… You wonder and you second guess your decision making. And then this happened and I was like that was 100% the right call is to shore things up when it’s going well because when things aren’t going well you don’t have time to shore things up.

Kris:

That’s so good. So good. You don’t have time and then you’re hasty.

Leila:

Mm-hmm (affirmative).

Kris:

Yeah. I know there’s a lot of people even now, even just three weeks into it, who are already reevaluating their business and they’re like I don’t need all of the people back. Like I got fat.

Leila:

Yeah. So many of our clients too are in that position. And that’s why I think I’ve been trying to teach them best practices to evaluate people, what people do with their time because I just did that so much in the last year because I let people who are inexperienced over hire.

Kris:

Yeah.

Leila:

That’s why I became so good at doing that and I was like, man, I don’t think… There’s a book called Double Your Profits. It talked about typically the average business can eliminate 30% of its workforce, 30 to 40% and not notice any impact.

Kris:

Any impact. Yeah. Yeah. I was just talking to a client this morning who let one guy go and already, just in one week, the level of productivity change. Because also when you have that sort of extra layer of fat in there, it just becomes a clog in the drain. It just prevents things from happening too.

Leila:

Like an extra step to the process.

Kris:

Yeah. Yeah. Especially when they’re not effective. So, Oh my goodness. So good. I could talk to you forever, which of course I always love to do. So thank you so much for spending a little time here just sharing your wisdom. I’m excited to have other people here and learn from you. Where can people or should people know about you and your business? Where can they go if they want to learn more about what you do?

Leila:

They could go to gymlaunch.com, they could go to my Instagram, leilanhormozi, or @hormozi is my husband. They can plan-

Kris:

I’ll tell you what, Leila has a great Instagram. She has kind of the punch you in the face, kick you in the ass, things you need to hear every morning, which I love, frankly. Every now and then I’m sending her the little preach hands or the heart eyes or the wow face, like, Oh yeah, that’s a good one.

Leila:

Thanks for the reminder.

Kris:

Yeah, well you’re incredibly inspirational and it’s been an honor working with you guys and watching all of the work that you’ve done over the last year and it’s all super fun to keep watching, so keep it up everybody. You’re an incredible model for other people, so thank you for sharing.

Leila:

Thanks for having me.

Kris:

Of course. Thanks for being here.

Kris:

Hey there. Gorgeous. Are you ready to take everything I teach you in this podcast and put it to work in your business and really learn how to master leading your team? If so, I’d love to have you as a client in the Founder’s Lab to learn more about how we can work together. Head on over to krisplachy.com/join. There you’ll see everything you need to know about the Founder’s Lab and how to get started. See you there.

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