In this episode of the Gym Secrets podcast, the host shares strategies for navigating tough conversations with employees during challenging times. He recounts a recent experience with gym owners discussing compensation concerns and emphasizes the importance of transparency and collaboration in decision-making. By presenting options and involving the team in the process, he advocates for fostering a sense of unity and ownership, which helps avoid resentment and builds understanding. The host also stresses the value of explaining the business realities and the personal sacrifices made by owners, using a relatable example of having to let a trainer go. He concludes by encouraging listeners to support the podcast through word-of-mouth, underscoring the collective effort needed to overcome adversity and strengthen the business's mission and culture.
"Welcome to the Gym Secrets podcast, where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons that we have learned along the way."
This quote sets the stage for the podcast's focus on business strategies for gym owners, emphasizing customer-related aspects and learning from past experiences.
"I wanted to make this quick video, how to have hard conversations in hard times because I had...I've just been on calls all day long."
The quote highlights the host's commitment to supporting gym owners through constant communication, especially when facing tough conversations and decisions.
"And I had a gym owner who came up and was like, hey, I had all my trainers get together and they were like, hey, we're not happy with what we're getting paid. We want a 60 40 split on the revenue from the gym, right."
This quote presents a specific scenario of employee discontent regarding compensation, which serves as a case study for the broader discussion on handling difficult conversations.
"But the reality is, it really doesn't work well when you do that, because then they just get really pissed off and they're like, screw this guy."
This quote captures the consequences of an autocratic leadership style, emphasizing the importance of adapting to a more inclusive approach to maintain team cohesion.
"Whenever I have to introduce a new change we remind them of the vision, right? Which is like, where are we trying to go, right?"
The quote conveys the strategy of aligning the team with the overarching goals of the business to facilitate acceptance of necessary changes.
"And so right now, we are bringing in less than what we're spending. And so if we want to accomplish that goal of transforming the community, et cetera, we have to change something."
This quote directly addresses the need for operational changes due to financial constraints, linking it back to the shared mission to motivate the team towards finding solutions.
"Option number one is that everyone here takes two weeks off a month, right? Option two is we just have to let go of half the staff so that when we come back, that there's something to come back to, right." "I'm taking a pay cut. I'm taking half of what I normally take or less than that, or I'm taking home zero right now."
The quotes outline the three options proposed to mitigate financial issues: reduced working hours for all, laying off half the staff, or everyone working for half pay. The speaker emphasizes their personal pay cut, highlighting their commitment to finding a solution that involves shared sacrifice.
"So I'm starting like, you all are going to get paid. I'm getting paid nothing. Okay? And so if you start like that, it's like we're in this together, right?"
The quote demonstrates the speaker's leadership strategy, which involves taking the first step in sacrifice to encourage a sense of unity and collective effort among the team members.
"Now, obviously only offer options that you would support, right. And I think why this kind of approach works is because you're not presenting your decision. You are presenting options and allowing them to participate in the decision."
This quote explains the speaker's philosophy on decision-making, advocating for a participatory approach where employees are given options to choose from, fostering a sense of involvement and responsibility.
"The only way this grows is through word of mouth. And so I don't run ads. I don't do sponsorships. I don't sell anything."
The quote highlights the speaker's reliance on organic growth through word of mouth, eschewing paid advertising and sponsorships in favor of personal recommendations from listeners.
"Sometimes you have to let a trainer go, right. Sometimes it just doesn't work out. It's okay. It's part of business, right?"
This quote acknowledges the tough decisions that business leaders must sometimes make, such as firing an employee, and frames it as a normal part of business operations. It also advises on maintaining professionalism during such situations.
"I cannot share all of the information around a decision because of legal reasons."
This quote highlights the legal limitations that business owners face regarding transparency with customers, which can affect how decisions are communicated.
"Do you think that it may be possible that I have more information that I'm working with than you are to make this decision?"
The owner is suggesting that they possess additional information that the customer isn't privy to, which justifies the decision made.
"I would bet that if I were able to open up the kimono and show you all of the information that I have here, you probably would have commented the same decision that I had and probably even sooner than I am."
The owner expresses confidence that if the customer had the same information, they would understand and agree with the decision made.
"All I'm asking you is to trust me that I really want this business to succeed just as much or probably more than anyone else."
The owner is seeking the customer's trust, emphasizing their personal investment in the success of the business.
"I will find a trainer that you will like just as much as you did her."
The owner assures the customer that they will find a replacement that meets their expectations, showing commitment to customer satisfaction.
"So the gym owner who brought this up had his trainer say they wanted a 60 40 split of the revenue."
This quote introduces a scenario where a gym owner is confronted by a trainer's request for a specific revenue split.
"Of $100 that comes in the door, I was like, do you know what the margin this business is? Do you know? I was like, it's 12%."
The owner is explaining the profit margin of the business to highlight the financial constraints and justify why a 60/40 revenue split may not be feasible.
So if we've lost 20% currently, just through this whole corona thing, we lost 20%.
The quote indicates a significant financial loss for the business due to the pandemic, which is a common challenge faced by many during such crises.
I sign my name on a $400,000 lease. Like, do you guys want that? They can take my house. You do a bad job, you go home. I do a bad job, I lose my home.
This quote underscores the personal financial risks the speaker takes on as a business owner, which are not shared by the employees.
Once you present them the same information, many times they will come to the same conclusion you did, and they'll be like, all right, I understand why you did that.
This quote illustrates the power of communication and providing information to achieve understanding among team members regarding difficult business decisions.
Not only that, there's going to be a lot of gyms who aren't as unified as we are. They don't have the culture we have. They don't have the mission we have. They don't have the values we have, and they're not going to be able to make it out.
The quote emphasizes the competitive edge provided by a unified team with a strong culture, mission, and values, particularly during challenging times.
I think the easiest thing is helping them make the decision with you. Not that you are actually necessarily listening to what they're going to say, but more so presenting the options as you saw them with the information that you had.
This quote advises on a strategy for involving others in the decision-making process, which can lead to better understanding and support for difficult decisions made by the business owner.