Podcast Summary: "Helping Small Business Owners Navigate Their Biggest Problems | Ep 254"

Podcast Information:

• Title: Build with Leila Hormozi
• Host: Leila Hormozi
• Episode: Helping Small Business Owners Navigate Their Biggest Problems | Ep 254
• Release Date: March 20, 2025
• Description: In this episode, Leila Hormozi delves into the most pressing challenges faced by small business owners. Through real-life examples and expert advice, she provides actionable strategies to build resilient, scalable, and unshakeable businesses.

Introduction

In Episode 254 of "Build with Leila Hormozi," Leila addresses a range of issues that small business owners encounter as they strive to scale their operations. The episode features interactions with several entrepreneurs, including Leo Skeppy, Carson, Ben Foske, Madhu, and Laurie, each presenting unique challenges in their respective businesses.

Resilience and Mindset in Business

Discussion Points: Leila opens the conversation by exploring the concept of resilience and the mindset required to overcome significant business challenges. This segment is primarily driven by Leo Skeppy's query about handling personal battles in business.

Key Insights:

• Not Taking Challenges Too Seriously: Leila emphasizes the importance of maintaining perspective to prevent business problems from becoming overwhelming. She states, “I really don't take it too seriously... it’s not going to matter in a year.” (00:36)

• Defining Resilience: She defines resilience as the speed at which one can return to their baseline emotional state after a setback. “Resiliency is essentially like, how quickly can you return to baseline.” (03:31)

• Experiential Avoidance: Leila discusses overcoming the tendency to avoid difficult emotions, which hinders growth. “Most of the time I see people in their business... they’re ultimately trying to avoid something.” (04:36)

Notable Quotes:

• Leo Skeppy expresses vulnerability: “I want to know your mindset around the resilience aspect.” (01:25)
• Leila responds candidly about her coping mechanisms: “I have two routes. I go... Either I die... Or I just suffer emotionally.” (04:35)

Managing Equity and Accountability in Small Businesses

Discussion Points: Carson, running a talent management business, seeks advice on balancing grace and accountability within his team, specifically dealing with a partner who isn't meeting expectations.

Key Insights:

• Equity as a Strategic Tool: Leila advises that equity should be reserved for “barrels” — team members who can create value independently. “Anyone that has equity in a company should be a barrel.” (08:14)

• Proactive Management: She recommends addressing underperformance early by redefining roles and compensation structures to prevent future issues. “If you don't do it now, it's going to have to do it later and have to pay the tax on it.” (09:55)

• Setting Clear Expectations: For accountability, Leila suggests setting measurable expectations and using systems like leaderboards to track performance. “Set an expectation. You tie a measurement to that expectation or a metric... create feedback about their ability to hit or not hit that expectation.” (10:52)

Notable Quotes:

• Carson outlines his dilemma: “One team member who's a partner... he's the person you're struggling with primarily.” (07:42)
• Leila underscores the importance of high standards: “Should you have to hold someone accountable who has that kind of equity in the business? No.” (09:35)

Scaling and Delegating Sales Roles

Discussion Points: Ben Foske, an executive confidence coach, discusses his struggles with replacing himself in the sales process despite high conversion rates.

Key Insights:

• Authority in Sales: Leila explains that her high conversion rates stem from her authority and expertise, rather than mere sales skills. “Persuasion is stronger the more of an authority figure you are.” (13:15)

• Building Authority Within the Team: She advises integrating authority into the sales team by either featuring herself in the sales funnel or enhancing the credibility of team members. “How do you build authority with the other people that are selling for you?” (13:34)

• Edifying Team Members: Madhu adds that leveraging the credibility of experienced team members can significantly boost sales performance. “We've used his credibility and authority piece by edifying everybody before they did their presentation.” (15:45)

Notable Quotes:

• Ben Foske highlights his issue: “When I've tried to empower people to become the lead salesperson, it just has not worked.” (12:32)
• Leila suggests practical solutions: “Build your endorsement toolkit... create assets that they can walk into.” (20:40)

Marketing Strategies and Building Authority

Discussion Points: Laurie, involved in skincare sales, discusses the high customer acquisition costs (CAC) and the challenges of building a personal brand to reduce these costs.

Key Insights:

• Assessing the Need for Personal Branding: Leila questions whether becoming the face of the business aligns with personal preferences and business goals. “Do you want to be the face of your business?” (17:29)

• Evaluating Cost-Effective Marketing Channels: She advises Laurie to continue leveraging celebrity endorsements, like Mindy Kaling, which currently drive significant brand awareness without the extensive time commitment required for personal content creation. “If you're looking to sell your business and you have ways to acquire customers that don't involve your face, that's probably a better way to go.” (20:12)

• Systematizing Endorsements: Leila recommends creating a structured toolkit for celebrity endorsements to streamline the process and reduce dependency on internal resources. “Build a support team to support celebrities or influencers... build your endorsement toolkit.” (20:34)

Notable Quotes:

• Laurie explains her current marketing approach: “Our most expensive channel is actually Sephora. They take like 70% of every single item that we sell there.” (16:31)
• Leila emphasizes strategic alignment: “It sounds misaligned with the goal of starting the business in general.” (18:07)

Managing and Delegating Tasks for Growth

Discussion Points: Laurie, another entrepreneur, shares her struggle with transitioning from handling all aspects of her tutoring business to managing a team, particularly after hiring ineffective staff.

Key Insights:

• Documentation and Duplication: Leila advises documenting current processes to create a blueprint for new hires, ensuring consistency and efficiency. “Document, duplicate... something’s working right now, you’re doing it, you feel like it’s really shitty, but you'd be surprised at how good it is.” (22:36)

• Defining Clear Outcomes: She stresses the importance of defining expected results for each role, allowing for objective accountability even when she lacks expertise in certain functions. “Define the result... role responsibilities, results.” (24:11)

• Hiring Skilled Specialists: For areas outside her expertise, Leila recommends hiring highly proficient individuals who can operate independently without requiring extensive training or guidance. “Bring in more experienced people than you did in the other areas.” (24:11)

Notable Quotes:

• Laurie describes her challenge: “I am the magical six-armed woman right now in the business.” (21:40)
• Leila provides actionable steps: “Anyone they bring in, like, say you're doing the accounting right now... document how I'm doing it.” (23:11)

Key Takeaways

1. Maintain Perspective: Avoid taking business setbacks too personally. Maintain a broader view to reduce emotional overwhelm.
2. Define and Measure Resilience: Focus on how quickly you can return to your baseline after a setback, rather than eliminating negative reactions.
3. Strategic Equity Distribution: Reserve equity for key contributors who can independently drive business growth.
4. Authority in Sales: Leveraging authority and expertise within your team can significantly enhance sales performance.
5. Efficient Marketing Strategies: Prioritize marketing channels that align with your business goals and personal strengths to optimize customer acquisition costs.
6. Systematize Delegation: Document processes and define clear outcomes to facilitate effective delegation and scaling of business operations.

Conclusion

Episode 254 of "Build with Leila Hormozi" offers invaluable insights for small business owners facing challenges in resilience, team management, sales delegation, marketing strategies, and operational scaling. Leila's practical advice, backed by real-world examples, equips entrepreneurs with the tools to build robust and scalable businesses.

Transcript Highlights

• Resilience Mindset:

  "I really don't take it too seriously... it’s not going to matter in a year." – Layla (00:36)

• Equity Management:

  "Anyone that has equity in a company should be a barrel." – Layla (08:14)

• Authority in Sales:

  "Persuasion is stronger the more of an authority figure you are." – Layla (13:15)

• Marketing Strategy:

  "If you're looking to sell your business and you have ways to acquire customers that don't involve your face, that's probably a better way to go." – Layla (20:12)

• Delegation and Hiring:

  "Document, duplicate... something’s working right now, you’re doing it, you feel like it’s really shitty, but you'd be surprised at how good it is." – Layla (22:36)

This comprehensive summary captures the essence of Episode 254, providing actionable strategies and profound insights for small business owners aiming to navigate and overcome their most significant challenges.