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Episode 1357 · Sep 17, 2026

How Saying No Unlocks Profitability with Yarin Gaon

Yarin Gaon
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Most founders don't stall out because they lack opportunity. They stall out because they said yes to too much of it. In this conversation on The Daily Mastermind, George Wright III sits down with Yarin Gaon — entrepreneur-turned-investor and founder of Fractional Partners — to unpack a growth bottleneck that quietly eats profit in companies doing $3 to $50 million in sales.

Yarin Gaon started his first company at 14, built and sold multiple businesses, served as an entrepreneur-in-residence at a venture capital firm working on failed portfolio companies, and mentored more than 400 founders through the University of Chicago. Across all of it, he kept seeing the same failure point repeat itself — and it had almost nothing to do with effort or execution.

Yarin Gaon on Why Growth by Addition Stops Working at $3–$5M

Every company starts with what Gaon calls growth by addition. You say yes to everything: a new type of customer, a new product, a new channel, a new revenue stream. That's the right mindset early on, because the whole point is to find out what actually works and land on product-market fit.

The problem is that founders don't turn it off. Somewhere around $3 to $5 million in sales, the same yes-to-everything reflex that got them traction starts to break the business. The company gets wide. It gets complex. Margins shrink, because instead of being exceptional at a small set of activities, the team is serving different customers with different needs through different channels with different products. That friction shows up in two places: profit goes down and complexity goes up.

Gaon's answer is to shift into growth by subtraction — treat what you've built as version one, pause before pouring in more resources, identify the 20% of activities that drive 80% of your *profit* (not revenue), and cut the rest. Later, somewhere between $25 and $50 million, when you finally have real execution bandwidth, you earn the right to move into growth by expansion.

Before you grow by adding more, which is super inefficient and expensive and complex — pause, shrink, decide what is worth scaling.

How to Know When It's Time to Subtract

Two signals tell you you've outgrown addition. The first is complexity. When things feel too complex to manage and your instinct is to bolt on more systems, SOPs, and structure, that's usually evidence you're building in too many directions at once. Gaon says the better first-order question isn't *how do I organize this?* — it's *am I even building the right thing?*

The second signal is profit. Not all revenue is created equal. Profit is the average of everything you do, so when you chase revenue indiscriminately, some of it adds to margin and some of it actively drains it. What's left in the bank account is the blend. If that number isn't high enough, the question becomes: what is eating my profit, and what could I simply stop doing?

As George pointed out, this is genuinely uncomfortable for founders, because addition *worked*. It's the abundance mindset that helped them spot opportunity in the first place. Saying no feels like shrinking. Gaon's point is that it's the opposite — it's the only way to concentrate a small company's limited time, labor, and capital into something that compounds.

The Growth Decision Canvas: Making Strategy Explicit

Because subtraction isn't intuitive, Gaon built a tool for it. The Growth Decision Canvas — available free at canvas.fractional.partners — is a one-page framework, similar in spirit to a business model canvas, built around 18 questions about your growth strategy. Who is our perfect customer? What do we do better than competitors? What's our ultimate goal and success metric? Which revenue streams do we focus on short-term and long-term? How do we acquire, convert, deliver, and retain?

The power is in the sequence. Each question narrows the options for the next one. Define the problem you solve in the marketplace, then your success metric, then your core competency — and by the time you reach "who is our perfect customer," the answer is obvious. You look at your customer list and immediately see which accounts you aren't uniquely positioned to serve and which ones will never get you to your goal. Decision by decision, you've built a 12- to 18-month growth plan in plain English that any employee can read and act on.

The Two Decision Mistakes Founders Repeat

The first is making decisions out of context. Choosing what to build over the next 18 months looks like an isolated roadmap call, but it's actually a derivative of five earlier decisions most companies never made — or never made explicit. The version lives in the founder's head, and the leadership team is left guessing.

The second is making revenue-based decisions instead of profit-based ones. Looking at opportunities through a revenue filter lets things in the door that aren't profitable or aren't in your lane. As Gaon puts it bluntly: you don't pay rent with revenue.

Why EOS Alone Won't Fix a Direction Problem

Gaon is a self-described huge fan of EOS and self-implemented it across his portfolio companies. But he's clear about its limits. EOS makes sure everybody is rowing in the same direction; it doesn't guarantee the direction is right. The accountability chart, Level 10 meetings, and scorecard are built for execution — and the Vision/Traction Organizer's eight questions aren't enough to produce a real growth plan. EOS also doesn't optimize for profit; it assumes whatever you chose to execute is already profitable.

So the Growth Decision Canvas sits in parallel, enhancing the vision side. Get explicit about what version two of the company looks like and whether it's profitable, then use EOS to execute it. If EOS isn't producing results, don't blame the system — check whether quarterly rocks have quietly become a list of tactics disconnected from the company you're actually trying to build.

Your job is not to execute anymore. Your job is to allocate resources — to decide what's worth pursuing.

Action Steps

  • Run the growth bottleneck heat map first — 18 strategic questions you and your team rate yourselves on, which reveals where decisions are unclear and where you're still growing by addition.
  • Download the free Growth Decision Canvas at canvas.fractional.partners and answer the questions in order, letting each one constrain the next.
  • Audit your revenue by profit contribution, not top line, and name the activities that are actively draining EBITDA.
  • Pick one thing to stop doing this quarter — a customer segment, product, or channel you're not uniquely positioned to win.
  • Re-answer the canvas every 12 to 18 months, because the questions stay the same while the answers change as your company matures.

Clarity is the permission slip. If you knew exactly where you were going, saying no would be easy — so the work is getting explicit first. Slow down long enough to decide what's worth scaling, and remember: it's never too late to start living the life you were meant to live.

About the guest

Yarin Gaon

Yarin Gaon is an entrepreneur-turned-investor with a proven track record of founding, scaling, and exiting companies. He launched his first company at age 14 and went on to build Israel’s largest e-commerce platform for military goods, which he later sold before relocating to the U.S. He also served as an Entrepreneur-in-Residence at a venture capital firm, where he specialized in turning around distressed startups. With an MBA from Tel Aviv University (and time spent at Kellogg School of Management), Yarin now helps growing companies mature into strong, cash-flowing assets. Yarin has mentored over 400 businesses through SCORE and the University of Chicago’s Polsky Center. Today, he helps founders identify which products, customers, services, and operational complexities are actually slowing growth and reducing profitability. His Growth Decisions Canvas was designed to help $5–25M companies make clearer strategic decisions around what deserves to scale, what should be eliminated, and where the true path of least resistance exists inside the business. Yarin is publicly opening the Growth Decision Canvas for free, so your listeners can take what they learn from the episode and implement it in their business right away. Yarin has been featured on podcasts such as The Home Service Expert Podcast with Tommy Mello, Founder’s Story, Becker Private Equity & Business Podcast, and many more.

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Yarin Gaon: The key is to say no. That is the key for growth. [00:00:05] This is just a methodology of helping you get explicit. Do it with me, do it without me, doesn't [00:00:10] really matter as long as you implement something like this. It's not easy, but it's, [00:00:15] simple and you'll see how your entire business kinda unlocks. Everything becomes [00:00:20] easier. Execution becomes easier. People are on the same page. Profits start to follow. You do stuff you [00:00:25] enjoy more. It is like almost like the root is to say no. [00:00:30] The permission to say no come from being explicit around where you're going ​ George Wright III: [00:00:35] [00:00:40] All right, welcome back to The Daily Mastermind. George Wright III with your daily dose of [00:00:45] inspiration, motivation, and education. I'm excited today because we're gonna be talking about business growth, [00:00:50] but also from a little bit different perspective than you might be thinking, and I know there's some pain points people have [00:00:55] been ex- expressing to me. So, um, I'm happy to have Yarin in the [00:01:00] studio here. Yarin Gaon, how are you? Yarin Gaon: I'm well. Thank you for having me, George George Wright III: Yeah, this [00:01:05] is good. I- you're a busy guy, and I, I wanna make sure that we, we get right to it because there's some really good [00:01:10] concepts that you have. And one of the reasons I wanted to bring you on the podcast is, you know, through your company Fractional Partners, [00:01:15] and, and guys, just so you give a little bit of a, a background on Yarin. You know, he's working [00:01:20] with companies from 5 to 25 million, but he, he kind of all over the place, but he has [00:01:25] really nailed it when it comes to solving some problems for bottlenecks that companies [00:01:30] have during their growth. And so you've got an amazing background, entrepreneur turned investor, [00:01:35] you know, started your first company at 14, built, scaled, and sold, turned around multiple [00:01:40] companies. And then as an entrepreneur now, you really have a message of trying to help [00:01:45] businesses to get past this growth challenge, and so I'm excited about it. So give me really quick, [00:01:50] um, for our listeners, give us the backstory on how you put this together and kinda why you're in [00:01:55] this lane right now that you're, that you're working with. Yarin Gaon: Yeah. thank you for the intro. [00:02:00] I used to be... I used to do a lot of things. So I built several companies, I [00:02:05] sold. Uh, after I sold my companies, I used to be an entrepreneur-in-residence in a venture capital firm, [00:02:10] which is a really fancy way to say that I was a in-house entrepreneur working on the [00:02:15] portfolio of all the different startups, specifically the ones that failed. And while I was doing this, I was also [00:02:20] mentoring in the University of Chicago. I mentored a little bit over 400 different founders, and I saw something really [00:02:25] interesting, a failure point that keeps happening. So maybe a little bit of context. [00:02:30] Different growth stages require a different mindset. So as [00:02:35] founders start, and they start with what I call growth by addition. So I [00:02:40] started a company, and my mo- my mode of operation is let's say yes. Let's say [00:02:45] yes to all the opportunities coming through the door. Different type of customer, different type of product, different [00:02:50] type of channels, different type of revenue stream. And the idea really is to just find [00:02:55] what works, find product market fit or traction. Basically, let's figure out what, what [00:03:00] works. challenge is that once you find product market fit, [00:03:05] and it happens in different stages for different companies, but I found usually it's anywhere between the $3 to $5 [00:03:10] million in sales. What happens is that growth by addition mindset [00:03:15] starts to break their business. So now they have a little bit of traction, a little bit of resources, [00:03:20] but they keep saying yes to everything. They keep growing by that addition [00:03:25] mindset. And what happens is the business become very wide, very [00:03:30] complex, and, the margin shrink because be- instead of being very good at [00:03:35] very small set of activities, you do a lot of things and you service different type of customers with [00:03:40] different needs, with different type of channels, with different type of products. And what happens is that [00:03:45] creates a lot of friction, and that friction manifests itself with two things. One, [00:03:50] usually profit goes down complexity goes up George Wright III: Right Yarin Gaon: [00:03:55] The first inclination for me as a founder to see this is let's put more systems in [00:04:00] place. Let's fix execution. I need more SOPs. Let's put EOS in place or [00:04:05] entrepreneurial operating system. There's too much chaos. I have to get some George Wright III: Organize it, [00:04:10] yeah Yarin Gaon: I need to organize it. But what I found is there's a better way to do that. And [00:04:15] instead of growing by addition, if you have a strong team that can [00:04:20] execute, if you got to do three to $5 million, they probably have it, and a product that people love, [00:04:25] same argument, right? People probably have it. Then the m- better way to grow [00:04:30] is to switch from growth by addition into a growth by subtraction. And a [00:04:35] growth by subtraction basically means, okay, something is working. Let's [00:04:40] identify the 20% that moves 80% of profit, not revenue, [00:04:45] and cut everything else. So almost treat what I've built so far as version one of my [00:04:50] business before I scale it and I pour more resources and effort into this, [00:04:55] let's pause for a moment, discover what is the true engine and cut everything [00:05:00] else. And then I can focus on very maybe one type of customer, [00:05:05] one channel, one type of product. Focus your [00:05:10] resources on a smaller set of activities and grow this until you get to a [00:05:15] stage where you're probably anywhere between 25 and 50 million, where you have enough [00:05:20] execution bandwidth to try multi... to try to ex- what we go- what I call [00:05:25] growth by expansion. So there's a stage that a lot of founders just, they just miss [00:05:30] because their first inclination is let's just grow by adding more. And I'm [00:05:35] saying no. Before you grow by adding more, which is super inefficient and expensive and complex, [00:05:40] pause, shrink, decide what is worth scaling [00:05:45] and then grow this to the point where you can then accommodate [00:05:50] different business line. George Wright III: Yeah, there's definitely that... Yarin Gaon: see this George Wright III: What's that? Yarin Gaon: you seen [00:05:55] this? George Wright III: Oh, yeah, for sure. You know, there's, there's definitely a stage where, and it's a difficult [00:06:00] one for founders because it's worked for them to that point, right? So they [00:06:05] wanted to be able to hit a lot of different targets, and they wanted to be able to find out what works, and [00:06:10] growing by addition is what gives them that abundance mindset, and it really helps them to [00:06:15] recognize opportunities. But at some point, they've just got this hidden cost of too many [00:06:20] products, too many customers, too many initiatives. And it, and it-- I, I do think it's difficult for a [00:06:25] lot of founders to recognize that, and it's a, you know, it's a outside the comfort zone [00:06:30] thing to decide to shift or narrow or say [00:06:35] no to things, right? So how do founders recognize that something needs to be eliminated? Or how do they, [00:06:40] they recognize this? I mean, uh, especially when they're seeing this overwhelm of too many priorities. What have [00:06:45] you found? Yarin Gaon: Yeah. So here is the pain point that I found time and time again. [00:06:50] One, complexity. When things become too complex for you to [00:06:55] manage and you need to feel like you need to add more systems and processes in [00:07:00] place, that is usually an indication that you're probably doing too much [00:07:05] and you're probably growing in too many different direction. And instead of f- [00:07:10] systemizing or putting structure around what exists, a better question, almost like a first [00:07:15] degree, question is, am I even building the right thing? Am I even [00:07:20] working on the right stuff? Am I doing too much? Is there an opportunity for me to shrink? [00:07:25] And if I shrink, what would that look like? So that's complexity is num- number one. [00:07:30] Second is, profit. So when you grow by addition, what [00:07:35] happens is you basically chase revenue. Now, not all revenue is created [00:07:40] equal. So what happens is profit is the average of all of your activities. So [00:07:45] that's what happens at the end. So if you bring different type of revenue in your company, some [00:07:50] revenue add a lot to profit and some revenue actually t- detach from profit or takes away from profit. [00:07:55] And what you end up is like this average which is, okay, this is what I have left in the bank account. When [00:08:00] it's not high enough, then the f- basic, the, better question to ask [00:08:05] is, what is eating my profit? from all of the activities that I'm currently [00:08:10] doing, what is not contributing or detach- or detaching part of my [00:08:15] profit, that I can potentially stop doing? And just by stop doing I would make more [00:08:20] profit, right? It's, counterintuitive. N- George Wright III: Yeah, it's one of those things that I think is important because [00:08:25] when you, um, when you actually get that complexity, and I like how you said the complexity and then also [00:08:30] profit, those are both indicators that help you. But you, you said something kind of interesting, and that is, are [00:08:35] you even focused on the right thing? Um, because a lot of times I think founders, at least what I've [00:08:40] seen, is they have all these opportunities and all these revenue centers and things to grow to that point, [00:08:45] and then what they do is they make the decision just on profit or also on things that [00:08:50] they already have in front of them, whereas their biggest growth might come from opportunities they haven't even [00:08:55] tapped yet. So how do you know which products, customers, initiatives are actually worth [00:09:00] keeping and which ones are worth, you know, cutting, right? To, to, to basically grow by [00:09:05] subtraction rather than by addition. Yarin Gaon: That's why... Oh, g- great question. [00:09:10] I built a tool. I built a framework, really a system of how to do th- 'cause it's not [00:09:15] intuitive. If it wa- if this was intuitive, everybody would have stopped and paused version two and [00:09:20] cut half their business, but they don't. And a lot of times they don't because they don't have, they don't feel [00:09:25] comfortable saying no to opportunities without a clear plan in mind. So here's what [00:09:30] I built. I built a tool that is publicly open. It's called Growth Decisions Canvas, and it's [00:09:35] basically a one-pager. You can think of it almost like a business model canvas. That tool is [00:09:40] basically comprised of 18 different questions around your growth strategy. [00:09:45] Who is our perfect customer? What do we do better than competitors? Where do we wanna be? What is our ultimate [00:09:50] goal and success metric? What revenue stream we wanna focus on short-term, long-term? And the [00:09:55] work then becomes in answering each questions. [00:10:00] Each question builds upon another. So I built the tool. The tool has become the source of truth that everybody in the [00:10:05] company, like that's the one version that they're gonna pursue and the [00:10:10] work becomes, I built modules or worksheets that you can do with your team or [00:10:15] with yourself that helps you answer each question in a specific order because [00:10:20] every question narrows down your options for the next one and that's how [00:10:25] you narrow the business. I'll give you an example. First question is what is the [00:10:30] problem that we wanna solve in the marketplace that c- gives us context? And then [00:10:35] the next question is what is our ultimate goal metric? So what would represent success? [00:10:40] by answering these two question, you already are limit, creating artificial [00:10:45] constraint, quote unquote, on your next question. So the next question is what do [00:10:50] you do better than anybody else, other competitors? Okay, that gives you your core competency. And when you get to the [00:10:55] question of who's my perfect customer, you already have all these answer that you've [00:11:00] created. Now you look at your customer list, it's very obvious which one of them you're not [00:11:05] uniquely positioned to help, to, help or to solve or to serve, which one of them are not gonna get you to [00:11:10] your ultimate goal. It creates constraint as you go through the canvas question by question, you are [00:11:15] narrowing down your business model and c- creating your 12 to 18 months growth plan. [00:11:20] That is the power of this George Wright III: Yeah, it's a very strategic process it sounds like, because I think a lot of [00:11:25] times they just take, a lot of founders will take an aggregate answer and they'll just say, "This one looks [00:11:30] like it is the most profitable or the most effective or the most, [00:11:35] um, streamlined." Whereas it really doesn't answer the questions your business strategy should be based [00:11:40] on, which is what is the problem you're trying to solve? What is your... And, and even your [00:11:45] unique competency, because at the end of the day, I think a lot of founders wanna solve a particular [00:11:50] problem, but their unique talent, their unique identifier in the marketplace [00:11:55] is slightly misaligned with that, and that's their disconnect. Wouldn't you [00:12:00] agree? Yarin Gaon: Yes. Yes, because what happens is they start run... they start a [00:12:05] business because they found a problem in the marketplace that they wanna solve. But with time and addition, [00:12:10] they move away, further away and away from their core mission of what they're trying to [00:12:15] solve, and doing all these things for all these different type of customers that they really w- weren't intending to do. [00:12:20] So it brings them back to their core. And w- armed with that answer or with that [00:12:25] decision, everything becomes easier. It's decision by decision, you [00:12:30] basically create your entire growth plan. And what the, the challenge was or what I was trying to [00:12:35] create, this s- strategy sound like a super complex, ambiguous term. W- business [00:12:40] strategy, what does that even mean? So I tried to take this and put this from [00:12:45] a MBA level into, okay, this is what it means. It means this is the customer you're going to [00:12:50] g- you're gonna pursue. This is the revenue stream that produces the most profit. You'll be surprised how many c- [00:12:55] founders don't know the answer to that question, 'cause it's not an easy question. This is what we're [00:13:00] delivering. This is short-term, long-term. This is what we're good at. This is where we wanna be. And then [00:13:05] at the bottom is, here's how we acquire customer, convert them, create an amazing experience, [00:13:10] and here's our retention strategy. In page in simple English so everybody in the [00:13:15] company can follow and it moves from, "Oh, this is a C-suite tool," into, "This is a tool [00:13:20] that I can teach any employee, and they can immediately understand what we're building here and make [00:13:25] decision based on it." George Wright III: Yeah, 'cause clarity, I think, is the key for most founders, and it's [00:13:30] hard for them to get to that point, which is why I think it's, it's great that you've got a process that leads them there. But wh- [00:13:35] but when you have clarity, not just in your intentions but your strategy, it [00:13:40] makes, like you said, all those decisions easier because you have a filter now, a perspective. I'm curious what [00:13:45] you've seen now working with hundreds and hundreds of companies. What are some of the decision-making [00:13:50] mistakes that you're seeing happen early on? You know, you, you, you identified a few, like [00:13:55] they, they maybe identify the wrong opportunity or misalignment. But what, what decision [00:14:00] mistakes are you finding a lot of these businesses are making in their efforts to try to simplify? What, [00:14:05] what would be some things you've seen? Yarin Gaon: Two, two, two mistakes. One, making a [00:14:10] decision out of context. So let's say that we are [00:14:15] making a decision of what we're gonna build in the next 18 months. It sounds like an isolated [00:14:20] decision about revenue stream roadmap, but but it's not. It's a derivative of [00:14:25] all, five other decision that most companies have never [00:14:30] made or if they made it, never made it explicit. So maybe it exists in the founder's [00:14:35] mindset, but when the leadership team comes to execute, they have no idea what version the m- the founder [00:14:40] has in their mind. So making decision out of context, that would be one. The second [00:14:45] is making decision that are revenue-based decision and not decision. [00:14:50] Revenue-based decision means, oh, this is gonna triple my revenue [00:14:55] or this is an opportunity that's gonna produce so much more cash. Okay, that's great. [00:15:00] if you look at stuff from a revenue prism or a revenue [00:15:05] filter, you are gonna let things in the door that e- either are not [00:15:10] profitable or you're not uniquely positioned as a company to solve and you're just gonna [00:15:15] chase opportunities that are not gonna produce long-term ROI. So [00:15:20] shifting from a revenue focus, I wanna grow top line into who cares about top line? [00:15:25] I only care about EBITDA. I we take home. It's a slight mind shift from [00:15:30] VC-backed company versus bootstrap company which I like to work with more. It's [00:15:35] you don't pay, you don't pay rent with revenue, George Wright III: Yeah. Yeah. You chase cash flow a [00:15:40] lot of times, and it's just not... It's interesting that I think there's an evolution that [00:15:45] happens with founders, and, and so I'm curious your take on this because I think two evolutions I've seen. One [00:15:50] is that leaders, their unique talent, their unique abilities [00:15:55] that started the company, um, are not necessarily the ones that you [00:16:00] leverage when you have a whole team to be able to grow, which kind of leads me to that second one, which [00:16:05] is that, um, does the decisions change depending [00:16:10] on the type of team they have in place, right? Because a lot of founders maybe get to that point, and they really don't [00:16:15] have a leadership level put in place. They just have managers and individuals that are all doing the [00:16:20] work, and they, like you said, they go wide, and they have all these opportunities. But what have you [00:16:25] seen as far as does it change depending on what type of leadership stack they have at that [00:16:30] level? 'Cause there's a lot of businesses that get to that level that are in completely different scenarios or [00:16:35] situations or even organizational structure than others, right? Yarin Gaon: Yeah. So [00:16:40] this, this can work in different [00:16:45] stages. What you're really referring to, what I hear is maturity stages, right? As, [00:16:50] as companies become more mature, the founder takes a little bit more of a leadership role, less an executional [00:16:55] role. Um, but okay George Wright III: Which if your business to that point is built around the talent [00:17:00] of the founder or some of those types of things, it's a very uncomfortable thing for the founder, but it's [00:17:05] also a very conscious decision the business has to make to, to gravitate and [00:17:10] mature towards leadership run organizations that can scale, correct? Yarin Gaon: [00:17:15] Correct. The, the, activity really becomes... So here, is the question is the same, the [00:17:20] answer is different. I'll explain what I mean by that. In the quest- in the canvas, there's a question that says, um, [00:17:25] basically something towards what is our competitive advantage or what do we do better than anybody [00:17:30] else? The question is the same. The answer will differ based on the maturity level of the [00:17:35] company. So a founder-based company that doesn't have a leadership team will probably answer [00:17:40] from their own skill set 'cause that's what they, their, competitive advantage is the [00:17:45] founder. George Wright III: Them. Yes. Yarin Gaon: Correct. But as the company matures, the competitive [00:17:50] advantage becomes maybe, they have a unique relationship as a company[00:17:55] or a supplier. Maybe they have a unique process they have created. Maybe they have [00:18:00] system, process, asset, unfair advantage that is more company-wide. [00:18:05] The question is the same. The answer change based on the maturity level of [00:18:10] where their company is at, this, at the point of answering that question, and that's why [00:18:15] those questions are only 12 to 18 months long, or they, only have a 12 to 18 months [00:18:20] life s- George Wright III: Oh, and then reevaluate, go back through. I got it. Yeah, yeah. That's just a really good idea, 'cause I, I [00:18:25] think that one of the things that's difficult is there isn't a strategy for companies [00:18:30] at that size. It's like you said, it's like a dis- a growth decision matrix to a [00:18:35] degree, right? A lot of companies that hit that level, they start to implement programs like EOS, you know, [00:18:40] Entrepreneur Operating System and things. So does this work in conjunction with that? Tell me a little bit about how it [00:18:45] works together. Yarin Gaon: Yeah, I'm a huge fan of EOS. I implemented EOS, I mis- I self-implemented [00:18:50] EOS in all of my portfolio companies. Here is the challenge that I found. People [00:18:55] go in EOS and they think EOS is gonna solve all their problem, but there are two challenges [00:19:00] with EOS. One, EOS makes sure everybody's rowing in the same [00:19:05] direction. It doesn't make sure that the direction you're rowing in is the correct one. So [00:19:10] EOS is executional operational system. It's entrepreneurial operating [00:19:15] system. It's designed to make sure that whatever you decided you wanna focus on [00:19:20] gets done. That's the accountability chart, that's the level 10 meeting, the scorecard. It's make sure [00:19:25] that the execution happens. What it lacks in is it doesn't make sure that the direction [00:19:30] you choose is a correct one, right? The Vision Traction Organizer is only eight questions. [00:19:35] That is not enough to create a growth plan. It's missing a component. And the second part [00:19:40] of it, that EOS is not focused on profit. Its focus is on execution. [00:19:45] So it assumes that whatever you decided that is worth executing is profitable, but that is not the [00:19:50] case most time. So the Growth Decision Canvas sits in parallel [00:19:55] with EOS. It basically replaces your Vision Traction Organizer. The vision part of the Vision Traction, [00:20:00] it enhances it. interesting So you start the i- the whole idea is [00:20:05] start with the growth decision mindset, articulate where you're g- where you wanna go and [00:20:10] what kind of company, what version two looks like. Then you use EOS to execute on that [00:20:15] plan. That's the relationship between the two. So they're not competing, [00:20:20] they're parallel, it just makes it... you just... If you are running on EOS [00:20:25] and it's not producing the result that you want, I would- Yeah ... encourage you to pause from, don't [00:20:30] blame the system. Are you actually explicit around what version you're [00:20:35] trying to build, and is it a profitable version? Most times it's not. What [00:20:40] happens is that founders and leadership team go into their, quarterly planning, [00:20:45] and they come up with a list of rocks that are basically tactics. George Wright III: Yes. Yeah Yarin Gaon: Stuff [00:20:50] that I need to do, but stuff that I need to do doesn't always correspond with this is the [00:20:55] version of the company that I wanna build. There's dif- different levels of zoom in, zoom out. George Wright III: [00:21:00] Yeah, I lo- I love the way you put that because I found this in my businesses as well. You [00:21:05] know, we own a, uh, a global, uh, authority branding company, and I think a lot of [00:21:10] times people will come in and they wanna just get visible. They just wanna get visibility, they wanna do [00:21:15] marketing, and what they don't realize is they're sometimes exacerbating a problem they already have, which is if you do a [00:21:20] bunch of marketing and you don't have authority in the marketplace, all you're doing is having people go online and find your [00:21:25] competitors. So if you don't do the strategy, we're a big fan of strategy first, [00:21:30] clarity on what your strategy is, then you add authority, then you add, you know, [00:21:35] automation and marketing. So it's the same thing here. I, I hear you saying that the system, the operating [00:21:40] system could be great, but if it's operating and getting operational excellence along [00:21:45] the wrong path or the wrong profit margin, and so stepping back to have [00:21:50] more strategy with this growth decisions canvas, and I, I... we say this because I think it's a great tool [00:21:55] set. You offer it for free anyway, but with that strategic direction and clarity, then the [00:22:00] operating system helps you to create excellent execution, correct? Yarin Gaon: Yeah, you just become s- laser [00:22:05] focused. So let's just, uh, what is the rationale behind it? As you grow into a founder [00:22:10] of a 5 to $50 million company, your job is not to execute anymore. Your job is to [00:22:15] allocate resources, right? Resource can be time, labor, [00:22:20] capital. Basically, I decide what wor- worth pursuing. So your ability to be better in [00:22:25] deciding what's worth pursuing is directly correlating to how much profit you're gonna create and how effective you [00:22:30] will be in, in that execution. So if you have more context, [00:22:35] you would pursue less activities, less marketing campaign, less [00:22:40] channels, less things, and you will become better in the ones that you actually decided to [00:22:45] pursue. a 5, $10 million company still doesn't have a lot of capital and a lot of r- people to [00:22:50] actually execute. So giving them narrower [00:22:55] focus, almost like laser, where we move from a wide beam into a laser, much more [00:23:00] impactful in actually moving the needle George Wright III: It's interesting you say this because I had the opportunity I [00:23:05] was, sitting down in my studio with the founders of scaling.com, and I don't know if you're familiar with [00:23:10] Blake Erickson and Dr. Benjamin Hardy who wrote 10X is E-Easier than 2X [00:23:15] and Who Not How and all these groups, all these really great books. But this message seems to be very [00:23:20] consistent lately that you're saying, and that is that growth and scalability come [00:23:25] from simplicity, not organizing complexity. Meaning the [00:23:30] goal is not to organize complex systems and make them more efficient, [00:23:35] it's to simplify them, right? So if we had companies that are at this point [00:23:40] and they're starting to experience the pain points, the profit, the complexity, too many priorities, too many [00:23:45] focuses, and you've got this moving forward. Where do you recommend someone starts? Where do they [00:23:50] start in order to kinda get directional on this? Yarin Gaon: Yeah. So the [00:23:55] canvas is available at canvas.fractional.partners for everybody to access. And the first part [00:24:00] of the canvas is not even the canvas. The first part in engaging in this kind of work is [00:24:05] answering what we call growth bottleneck heat map. So it's basically an assessment that you do with [00:24:10] yourself and with your team, and these are 18 strategic questions that you basically [00:24:15] rate yourself. And what it produces is a heat map that tells you [00:24:20] what decision is not clear and where are you growing by addition instead of ver- [00:24:25] subtraction. And then you identify, okay oh, it sounds like a lot of my [00:24:30] problems happen because I'm pursuing too many different personas or too many segments. Oh, [00:24:35] or maybe it happens because I have too many different revenue streams that I'm pursuing. It will help you [00:24:40] identify and recommend the first module that you need to do with your team, the first question to [00:24:45] answer, the first decision to make in that linear sequence, right? Decision by [00:24:50] decision George Wright III: Yeah, this is great because I do think it also changes with time. Like you said, there's [00:24:55] a life cycle that you have to then reevaluate because your business is now morphing and changing and maturing, [00:25:00] and so that's a very important thing to do as well. I really do like the [00:25:05] questioning decision matrix that you can kinda take people through, so that's one of the reasons why I wanted to bring you [00:25:10] on. By the way, if you guys are listening to this, whether you're driving or whatever else, I'll put those links in the show notes, [00:25:15] and so check out the show notes, and we'll make sure we can go through there. Uh, Yarin, what's the best way for people to kinda [00:25:20] connect with you? 'Cause I really feel like, uh, especially at this level, founders are in different [00:25:25] places at different times. There is no... You know, my goal with this episode was not to bring [00:25:30] you on and have the, you know, the, the path process for everybody as much as the awareness of what it [00:25:35] takes and what you need to do. So what's the best way for them to kinda connect with you? 'Cause I would love to have, uh, [00:25:40] individuals reach out and maybe get to know a little bit more. Yarin Gaon: 100%. So you can go on [00:25:45] fractional.partners and schedule a strategy call. It would be much more beneficial to do that after you [00:25:50] started with the canvas. So then we have a conversation around actual results or a [00:25:55] diagnostic. So I can say, "Okay, based on your results, it seems [00:26:00] like this is the area that is draining your resource. Let's talk about that." So it becomes [00:26:05] ever so more, ever so much more impactful. That's, how I, [00:26:10] that's how, I recommend doing it. And start even without me, right? I'm here to promote [00:26:15] a product, but that product is publicly available 'cause I want knowledge to be available and I want people [00:26:20] to actually use it. So give it a shot, and if you run into [00:26:25] challenges with answering these questions, this is where I come in. But it's also meant as a [00:26:30] DIY, so you can start without me George Wright III: Got it. I love it. I love it. Well, I appreciate you being here with [00:26:35] us today. I think this is something that a lot of founders are struggling with. And if you're listening to this and you're starting [00:26:40] to feel those pain points and you're starting to feel those growth pain points clarity, focus, and discipline [00:26:45] in your business, in your personal life, all of these things will be helpful. But a lot of times you need that process, that [00:26:50] little, that process that'll pull it out of you so that you can help to, to clarify. 'Cause if you had the [00:26:55] clarity and you knew what the direction was, you would be doing it. And so it's difficult sometimes to know what that is, and so this is a [00:27:00] great little process that I came across. So Yarin, Yarin Gaon: hard George Wright III: thank you so much, man, for being here. Is there any [00:27:05] final thoughts that you wanna leave our listeners with? Yarin Gaon: The key is to say [00:27:10] no. That is the key for growth. That is the, the-- for if you're in that stage, you're high. [00:27:15] The, the, the, the, the ultimate way to do that is to say no. [00:27:20] The way to say no is to be explicit around your decision. [00:27:25] This is just a methodology of helping you get explicit. Do it with me, do it without me, [00:27:30] doesn't really matter as long as you implement something like this and make s- [00:27:35] fewer smarter decisions. That sounds so simple, and it is simple. It's not easy, but it's, [00:27:40] simple and you'll see how your entire business kinda unlocks. Everything [00:27:45] becomes easier. Execution becomes easier. People are on the same page. Profits start to follow. [00:27:50] You do stuff you enjoy more. It is like almost like the root is to say [00:27:55] no. The permission to say no come from being explicit around where you're going George Wright III: Yeah, and clarity, [00:28:00] right? Yeah, I totally agree. I totally agree. Well, thank you for those, those thoughts. Guys, if you're listening to [00:28:05] this and you're starting to feel all the complexity, you've got all this stuff going on it's important not to feel [00:28:10] overwhelmed, but it's also important to recognize that no matter where you are in your business, it's never too late to get on the [00:28:15] path and the track that's scalable. But you've gotta slow down a second to do that. And [00:28:20] so hopefully this is an episode that'll help you to really put some thought into that, inspire you, motivate you to kinda [00:28:25] get some clarity around your business. And so I'll put some links in the show notes. Let us know what you're [00:28:30] working with. I wanna know what kinda things you're struggling with what you're dealing with, even some wins. Let's celebrate some [00:28:35] wins, and we'll look forward to talking a little bit more. Yarin I'd like to maybe even have you back with our private member academy, [00:28:40] so we'll have to-- we'll talk more about that. And guys, if you're listening to this, head over to Daily Mastermind [00:28:45] and opt into the prosperity report, 'cause I think that's something we'll be able to give you some additional context [00:28:50] for this for. So anyway, thank you again for joining us. Have an amazing day, and we'll talk with you [00:28:55] soon Yarin Gaon: Thank you for having me, George ​[00:29:00] [00:29:05]

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About the host
George Wright III, host of The Daily Mastermind

George Wright III

George Wright III is an entrepreneur, investor, and the host of The Daily Mastermind. Over more than two decades he has founded and scaled several multimillion-dollar companies and built a renowned seminar business that put some of the world's biggest names and brands on stage. With 25+ years across marketing, sales, and executive leadership, he's made a career of turning bold ideas into results — and momentum into lasting growth.

Today his mission is singular: empower driven entrepreneurs everywhere to master their mindset, unlock their potential, and live their ultimate destiny. Through The Daily Mastermind, George shares the Prosperity Principles and strategies that help people create massive change — in their business and in their life.

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