Momentum Podcast: 754

Policies Create Freedom

by Alex Charfen

Episode Description

Boundaries create emotional safety.

Entrepreneurs have experienced a significant level of trauma around boundaries because they were unfair or did not make sense. It is understandable, then, that there is resistance around putting policies in place because entrepreneurs do not want boundaries.

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.

Here's the reality, policies actually create freedom because they create the clarity needed to understand how your team can be successful.

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 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

If you are an entrepreneur who is listening in and you can relate, then be sure and head over to 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. What's up, everybody, I am sitting here on day one of our summit, I have my whole studio lit up here and I just finished the morning with our growing scale members. And so the way our organization works is we coach entrepreneurs to grow and scale their businesses. And we have a couple of coaching memberships, one for when people come into our membership. And then once you head over a three million dollar run rate and you have the right size team and you understand our materials, we you can graduate into our grow and scale group. And so we just got through together with our this group and we have businesses in their size of let's see here. We have five to six million dollars.

We have another one that's about three and a half million. We have a 23 million, 50 million, ten million. It has been a really incredible morning. And I wanted to share just this really intense business lesson that we just went through. So one of our members is having some issues with people within the business getting so excited about the business that they're in actually starting a side hustle, doing the same thing. I'm doing something similar to what they're doing. And what we discovered is that in that business, the reason this is happening is that there's no policy against it. There's no hey, this isn't something you should do. This is you know, there's no there's no written directive that says you can't compete with the business. And so as a result, multiple people within the company are competing with the company. And the reflection from one of the owners of the business was like, you know, I want people to have freedom. I want them to be in flow. I want them to, you know, feel like they can do what they want. Well, here's the challenge. In a business with freedom and flow in the absence of rules and policies is that if we don't have rules, if we don't have policies, if we don't show people what the boundaries in our business are, that actually doesn't create freedom, that creates ambiguity, that creates frustration, that can create what we call sanctioned incompetence.

And here's what sanctioned incompetence is. Essentially, incompetence is when someone in a business, when someone in a position in your business, someone who works for you, is doing something that they shouldn't do and they are not corrected. So if you don't have a policy through which you can correct somebody, you actually sanction what they're doing. And so what we just talked about was that as soon as one of their team members went out and started a side hustle, it probably became a goal for the rest of their team members to go out and start the exact same side hustle. And that's what's happened to them over and over, is that they're they're having this challenge now where engagement is down in their team because their team's running businesses on the side.

Speaker 2 [00:02:39] 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.

Speaker 1 [00:03:49] And so one of the things that is so important for us to understand as entrepreneurs is that the people who work with us want boundaries, the people who work with us need boundaries. We need to tell them what the rules are so that they can feel like they're successful. Boundaries actually create emotional safety. And there's this this phrase that I share with entrepreneurs all the time that well, first, let me start with a philosophy I have. I believe that every entrepreneur I've ever worked with, in fact, have confirmed every entrepreneur I've ever gotten close to, had been friends with, myself included, has experienced a significant level of trauma throughout our childhood and then sometimes in our lives. And that trauma creates this resistance to boundaries, because oftentimes when we were younger, the situations we were put in, the boundaries that were imposed on us were unfair, unclear, ambiguous. They didn't make sense. You know, a lot of us had trouble in school. Those of us who excelled in school might have trouble somewhere else. And so that creates this resistance to putting rules in place for other people. The trauma we've experienced creates a resistance to putting boundaries in place for other people. And there comes a time in a business that once you've grown into a certain size, your ability to lead people and get them in momentum and get them excited about what you're doing and create an emotionally safe space for them where they can really excel and work in their genius is your ability to grow your business. So to summarize that your ability to lead people equals your ability to grow the business once you hit a certain size.

And when it comes to leading people, they are desperate for the boundaries with within which they can succeed. And even of those of us who are completely into freedom and flow and, you know, being like in the moment, well, it's very difficult to do that if you don't have boundaries. Like if you want to be in the moment, that means you have a boundary that says you paid your rent and you paid your car payment and you made all your payments in the world if you want to be in the moment. And I have a lot of stress and things going on, that means that you've done other things to create that space for yourself. And so by putting boundaries in place, we are not imposing on our team. We're actually giving them the clarity they need to know exactly how to succeed. For us, this summit has been incredible so far. If you're interested in understanding what we do to help entrepreneurs grow and scale and just have incredible transformational businesses that go out and change the world, you can go to a billionaire code dotcom, download a copy of the billionaire code matrix. It's the same matrix every one of our members is using to grow their business. It's actually what we use when we're coaching, when we're talking to our members, when we want to understand where they're coming from. And you can go to billionaire code dot com and check it out. And who knows, maybe you'll be at the next summit.

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