Momentum Podcast: 728
The Biggest Myth in Entrepreneurship
by Alex Charfen
The biggest myth in entrepreneurship is that entrepreneurs need to be good managers in order to lead their teams.
Alex Charfen, a business growth coach who helps entrepreneurs grow and scale their businesses, gives practical, tangible, and actionable tips that you can implement into your business right now.
Almost every entrepreneur in the world is challenged by managing people because we get stuck in transactional management. You might be challenged managing people, but you are a natural-born leader.
In this podcast, I will show you how to lead your team without ever having to manage them again.
Your business has the potential to change the world, and the only way to see that potential become a reality is to implement a strategic plan. If you're ready to learn more, go to Predictable Planning Systems to get started.
Our entrepreneurial journey doesn't end here! Be sure to check out our Facebook Community filled with entrepreneurs just like you who are getting into momentum and building world-changing empires Charfen Community
If you are an entrepreneur who is listening in and you can relate, then be sure and head over to Momentum Planner and gain access to one of the most requested business tools to grow and scale your business in any market condition, even in this one.
Full Audio Transcript
This is the Momentum podcast. Getting your team out in front of you when there's not a clear plan, strategic plan, your team will always be behind you. A strategic plan is where you put for any period of time all of the projects you are going to accomplish, the people you're going to hire, train or move around in the business, the policies you are going to put in place and the processes you are going to create or document it. So in your strategic plan, it's going to have the project people, processes and policies that you are creating at any given time. And if there's not a clear strategic plan, your team will always be behind you.
I'm Alex Charfen, and this is the momentum podcast made for empire builders, game changers, trailblazers, shot takers, record breakers, world makers and creators of all kinds, those among us who can't turn it off and don't know why anyone would want to. We challenge complacency, destroy apathy, and we are obsessed with creating momentum so we can roll over bureaucracy and make our greatest contribution. Sure, we pay attention to their rules, but only so that we can bend them, break them, then rewrite them around our own will. We don't accept our destiny. We define it. We don't understand defeat because you only lose if you stop. And we don't know how.
While the rest of the world strives for average and clings desperately to the status quo, we are the minority, the few who are willing to hallucinate. There could be a better future. And instead of just daydreaming of what could be, we endure the vulnerability and exposure it takes to make it real. We are the evolutionary hunters, clearly the most important people in the world, because entrepreneurs are the only source of consistent, positive human evolution and we always will be. This is actually a topic I've been talking to entrepreneurs about a lot lately, in fact, it's come up on webinars I've done it's come up in a bunch of the trainings that I've done. In fact, just this morning, I was talking to some clients of ours that used to be in one of our memberships that are coming back. And they were talking about exactly this. It is the challenge of trying to manage a team as an entrepreneur. Now, you can tell that I'm smiling because when you ask me when you ask entrepreneurs, you know, are you a good manager, 100 percent of us say no, including me. I am not a good manager. Let me let me explain something to you. Like let me just make something incredibly clear. Holy crap. I just made this worse. Let me explain something incredibly clear. I have led multi-million dollar teams for most of my career.
My wife, Cadey and I, since we got together about 18 years ago, have done over 100 million dollars in business. So we've had some pretty significant organizations. We actually put a company number twenty one on the 500 list and then repeated a couple more times on the list. And I have not managed any of those businesses because I'm a terrible manager. And here's what here's here's why I made this video. I want you to understand that as an entrepreneur, there's a different way to grow that grow a company besides having to put yourself in the role of a manager. In fact, entrepreneurial businesses do better if you don't put yourself in the role of the manager and you lead the business instead. Let me explain what I'm talking about. So when we look at managing, here's what managing typically means. This is transactional management.
Transactional management is how 99 percent of the world manages its how the vast majority of entrepreneurs manage. It's why so many managers, so why so many entrepreneurs start to build a team and then have the quiting fantasy. Let me tell you what that means really quick before I explain transactional management. Here's the quiting fantasy. See if you can relate to this. You open a business, you start out, you're doing everything, you're running it, you start to get some traction. It starts growing. Maybe you haven't been through this yourself, but maybe somebody you know has. And the business starts growing. It starts picking up steam. You start hiring people, you bring on your first few people.
You have a small team around you. Then you get up one morning and you realize it's actually harder now that you have a team, that you have all these people around you than when you were just doing it yourself. And you look at the business you're running and you look at the stress you're going through and you think to yourself, this is the quitting fantasy. I think I could just go back to doing it all myself. Now, the reason I called the quitting fantasy is because let's get real. Quitting is really a fantasy for people like you and I. You might stop doing it now, but you're just going to get right back into momentum and go try and do something big again. And so the faster that we can get past that place where the pressure and noise goes up with every member of that, we add to our team, the faster we get into a place where we will grow our business, make the income and the impact we've always wanted to. So let's understand why none of us feel like good managers and we're really managing is not the way to grow a company. Leaving is transactional management is the most painful way to lead people. Here's what transmat and transactional management is, and it's the default. This is how most people do it. You tell somebody what to do, then you checked it out Gatun, then you tell them what to do again. Then you checked it. It got done. Then you tell them what to do again. They check that it got done. They told what to do. Then you check it out. You don't want to do it. And it's horrible. None of us want to be in that cycle, but so many of us end up there because if we don't have a better way, that is the default mode of how you bring people on. So I want you to know something. If you have done this, it's not your fault. If you brought people on this way and it hasn't worked out, let yourself off the hook because we didn't know a better way. I'm telling you this because I have the same feeling for myself in my 20s, in the very early two, I'm forty eight today. When I was twenty one, I had a business where we did some consulting. We did some work with really large clients and I managed transactionally. It killed me. It was brutal. Throughout my 20s, I went from being in radically good shape in my early twenties to being over 300 pounds in my early 30s to from being incredibly healthy in my early 20s to being called out and on prescription drugs.
By the time I was in my thirties, it was brutal. Why? Because I was stuck in this transactional manager management loop. Tell them what to do. Check the data and tell them what to do. Check it got done. Tell them what to do. Oh, go home and run and cry for your mom. I didn't actually do that, but believe me, there was days I wanted to. And I actually think back then, there was days that I did call my mom at the end of the day and say, I don't know how I'm going to do all of this.
Now, when I discovered transformational leadership, it literally shifted everything in my life.
This was through reading Peter Drucker. This was through having some incredible coaches and consultants around me that helped me when I was younger. What I realized was, as entrepreneurs, we're never going to be good managers. We should just stop that. There's too much detail work involved. We're not good at following up on things like that. We don't really enjoy it. It makes us start to resent what we do. And even worse, it makes us start to resent our team and then our company. I don't want you resenting what you do. I don't want you resenting the people around you who are there to help you fulfill your goals. And I don't want you resenting the company that is. The vehicle through which you're going to show the world how incredible you are and leave your dent in the universe. And so here's how you shift this from transactional management to transformational leadership ship. It sounds like a massive distance, doesn't it? It's like, oh, man. Going from transactional management to transformational leadership, that's going to take like 10 years and a couple degrees, right? No, it's actually way easier than you'd think
. See, here's how transformational leadership works. Instead of telling somebody what to do, you give them a clear outcome. In our language, a clear outcome means they have a strategic plan. They know the destination. They know what is going on. Your entire team understands it. Then you coach success along the way. You give your team a clear outcome. Here's where we're going and then you coach their success along the way. So when they say, hey, I'm confused or I don't understand this or I don't know how to get there, then you help them. You help them troubleshoot it, you help them figure it out, you help them brainstorm and then come up with options and come up with solutions. And then if you give someone clear outcomes and you coach success, you end up with leveraged results. And here's what I mean by leveraged results. As a leader, when you create outcomes and you give them to your team, you are no longer the biggest bottleneck on your team. When you are doing transactional management, tell them what to do. Check that, tell what to do, check that got done. Every person on your team has to go through you to figure out what to do next. And so when you shift from transactional management to transformational leadership, you give up the title of biggest bottleneck. Here's why.
When you give your team clear outcomes, they can get out in front of you. They can go chase down the target without you. They can actually help you get there before you would have on your own and you will stop being the biggest bottleneck. So so when you shift from transactional to transformational, step one, you stop being the biggest bottleneck. Step two, because your team have clear outcomes in your coaching success, your team can get out in front of you. This is like where magic happens when you go from being the biggest bottleneck in your company because everybody's being transactionally managed to. Now you can get your team out in front of you. Like this is our dream as an entrepreneur, you call your shots and your team gets out in front of you. They go make it happen. You know, where that small percentage of the population that gets up every morning goes into the future, creates a new reality, comes back to the present and demands it becomes real. No matter what it takes, we're going to make it happen
. And so as entrepreneurs, when we have the opportunity to get our team out in front of us, to have the people working with us actually leading the way, that is when we start to make a massive change in the world at an accelerated speed that is exponentially greater and exponentially faster. And we make an exponentially bigger difference in the world and a bigger change with the people that we're serving. And now here's why this is incredible. Like this is the next step of evolution. As an entrepreneur, if you can go from transactional to transformational and you can stop being the biggest bottleneck and get your team out in front of you, we have this concept we call running your business from the passenger seat. Now, this is this sounds advanced. And to a lot of people, it sounds like a fantasy, like it's impossible.
But we have people every single day that are doing this. I'll share one with you really quick. When we first met Daniel Rosen in 2000, I believe eighteen. He's been working with us for a few years now. He had a software company. I was doing a bit over a million dollars a year. He he had a one person or two people who was working with him. And then honestly, Daniel was literally filling every position in his company and working transactionally throughout the whole thing and didn't have his team out in front of them because he was trying to do all of it. And he had had a few people working with them, but they didn't really know where to go. And he was literally pretending to be different people as he showed up for customer service and he showed up for sales and he showed up for different things because he was trying to do it all himself and didn't really know how to transfer responsibility and didn't know how to get out of being the biggest bottleneck, get his team out in front of him and then move into the passenger seat
. We started working together, Daniel and his his partner, Keenan, or his I think Keenan's actually the CTO of the company. So it Daniel's company credit repair cloud Keenon, his CTO. They sat down. They created a clear strategic plan. Step one, give your team clear outcomes. Daniel went back with that clear strategic plan, gave it to his team. They went out and hired an operator. And then here's what happened. He literally stopped being the biggest bottleneck in the company. He got his team out in front of him and then he moved into the passenger seat
. And here's what I mean by that. When you have clear outcomes in your business and you have a clear structure through which you're communicating with your team and everyone understands what's going on, you no longer have to drive the company from the driver's seat. You know, you can actually drive it from a passenger seat where you're not running all the meetings, where you're not doing all the tactics, where you're not setting everything up.
Now, if that sounds like a fantasy, I want you to know we help entrepreneurs get there in as little as ninety days to six months. But step one is you have to get out of transactional management, so you give up to do check that it got done and then and then tell them what to do again. And you transition to clear outcomes for your teams
. And these are clear strategic plans for the business, for the. Meant for each project, you coach success along the way and you get leverage results and there's a leveraged result. I didn't talk about as you continue this process as transformational leadership. Here's what's the biggest leverage result there is. Your team will get better at what they're doing because they're being coached by you. But here's what's even more dramatic, more incredible, more impactful for you as an entrepreneur.
As you stay in this world of transformational leadership, you will start to see how much more you can get done with a team. You will start to see how much more you can accomplish by giving your team clear outcomes and coaching their success, your confidence level and how much you can commit to as a team and how much you can achieve will go up and you will start making a massive difference in your business and in the world. Just like Daniel Rosen after Daniel moved into the passenger seat and put a clear plan in place and started using transformational leadership. The results in his business have been incredible. Since twenty eighteen, he's built a team of over 40 people. His business is today over twenty million dollars a year, and he's still running it from the passenger seat. So I don't think that you can't do this. You can in fact put in a clear plan in place. Having clear outcomes and coaching success is one of the fastest ways to go from wherever you are right now in business to exponentially greater results.
And I'm excited for you to have this information if you're interested in and understanding a little more about how to put together strategic plans and give your team clear outcomes about how you can put a system together through which you coach everyone's success and everyone on your team understands where things are going and how you can get into the passenger seat. Let us know. We'd love to talk to you and take the next step with you of explaining what we do as a company, understanding where you are and seeing if we can help you. Hey, thanks for stopping by today. And learning about transactional, transformational, transactional management or transformational leadership is one of the biggest moves we can make as an entrepreneur. It will make you feel better about your life and will make you more excited about your business. And it will give you more energy, excitement and creativity that you can apply to solving the problems for the people you serve. Thanks again for being here today.
Speaker 2 [00:13:55] Hey there, this is Eddie Kurk with Alex Charfen team, thank you so much for listening to this episode of the Momentum podcast. Listen, if you're ready to take the next step, if you're ready to understand the systems and processes and frameworks that we teach entrepreneurs to grow and scale their business with confidence, we're ready to help you.
If you go to billionaire Koch Dotcom right now, you can get on a call with a member of our coaching team and find out which one of our coaching programs best fit the needs of your business. Right now, we know that when you are clear on where you're going and you're excited about the outcome, you will put the accelerator pedal to the floor and you won't let up. Let us help you get into momentum, grow and scale your business and make the impact that you've always known. You should go to billionaire Koch Dotcom right now to get started. We'll see you there.