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We need to be reminded more than we need to be taught. That is a saying that we have in

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my world. Welcome to the game where we talk about how to get more customers, how to make more

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per customer, and how to keep them longer in the many failures and lessons we have learned

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along the way. I hope you enjoy and subscribe.

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I did business owner reach out yesterday who's doing about $550,000 a month and they were

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crying for us to become an acquisition not a portfolio company. And the conversation was

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really interesting and so I thought I would share it with you. So we hopped on the call and

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you know within the first minute or two you know after saying hey how's it going etc.

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He was like yeah you know I had a bunch of clinics and then COVID hit we took everything to

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telehealth and then our profit exploded and it's been awesome and I was like well that's great.

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And he's like so what I'm thinking about doing is helping sort of do a new business to help

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physicians improve their their medical practices. And I was just like huh he was like yeah because

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you know you did this thing with gym owners and you kind of licensed your model out I kind of want

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to do the same thing with with with physicians. And I sat there and I was like this is going to be

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a really interesting conversation. And so after him going you know giving his reasoning behind this

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I was like well I have no interest in that business at all. And I was like let me tell you why

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I was like first off you want to enter a new market sorry an established marketplace that is

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incredibly saturated. The the the value proposition that you have is not based on like a ton of

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personal experience right. You have a handful of examples. It's also not that unique. There's

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plenty of other people who do this same thing. And so you want to enter a space you've never been

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in before. You have a new acquisition system a value proposition that's not to find it's

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incredibly saturated and there's nothing new. And I was like I have no interest in this business.

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And he was like huh. And I was like but what I am more interested in is why don't you want to

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take the thing that's making you $550,000 a month that you grew in two years and just take that

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to five million a month. Why aren't you doing that. And so he was like well honestly I kind of got

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stuck and I didn't know how to how to grow it from from here. And so it was it was such a nice point

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because there was a pause and I could you can almost like hear him saying it to himself and hearing

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him say it out loud. I was like so let me ask you this. If we could go from $550,000 to you know

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to tripling your your amount of customers you have and going one and a half million a month. I was

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like would you still be interested in doing this whole medical thing you know this other thing

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that you were telling me about earlier would try to teach physicians and he was like oh no of course

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not I would just want to do this thing. And I was like okay so to be clear let me restate this

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because you got stuck in this existing business you thought the solution would be I will start

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another business huh not a good deductive reasoning pattern right and this is and this is obviously

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very smart individual right and I say this because all of us right I do this I do this all the time

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right and this is going to be repeated theme because it needs to be repeated right we need to be

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reminded more than we need to be taught that is a saying that we have in my world and I will I will

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pass it on to you guys mosey nation we need to be reminded more than we need to be taught do the

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boring work repeat successful actions and so if he's gotten to this point or if you've gotten to

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a point in your business and it has plateaued the question is has a plateaued because this is true

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like I have the only reason a business should plateau that is reasonable that is not your fault

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is that you have reached the total addressable market as in you have saturated the total the total

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market of that thing so for example if you were selling dog food and every dog within this you

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know maybe you saw a specific type of niche of poodle food right you've you've gotten you know

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70 percent of poodle owners to buy your food and you can't grow any more beyond that right well

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that would be reasonable but then you'd obviously just do a different type of dog right you you

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you'd hop verticals right so there's not even a reason but it would be the only potentially

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rational reason would be that your market has changed so a different example is a friend of mine

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owned a company that does a newspaper advertising all right so they actually help newspapers translate

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their advertisements into digital products which is pretty cool so they are able to sell like basically

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a whole new ad product to small businesses who want to buy ads right which is by the way how newspapers

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make money and so he could not grow his business because newspapers have shrunk by 25 percent

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year over year which is 25 percent compounding the wrong direction and he's been in that business

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for like 10 years so now the market size is like literally like 5 percent of what he used to be 10

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years ago and so as a result of that he was growing at an inverse rate to the shrinkage of the

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of the industry right and so he got to a point where he couldn't grow anymore then just basically

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servicing the ones that are so alive and then as they fell so did his business right and so

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that is the only logical reason that a business can apply to that is not in your control and unless

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you're selling your newspapers which are probably not the reason is much simpler which is you just

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don't know how and I'll tell you a different story that I had and then I'll wrap this up at the end

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so I was having a different conversation with a woman who was doing I think $4 million a year

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and she was selling info products that were weight loss so like weight loss in info products so

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like programs and ebooks and things like that which is cool right she's big following all the kind

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of stuff and we got I did a podcast with her and after we got off the podcast she was like yeah

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so these are my plans I'm gonna be doing like an apparel line and supplement line and cream line

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and whatever right and I just kind of sat there and I was like well I think it's a terrible idea

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she was like she just looked at me across and she's like what and I was like yeah I think it's a

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terrible idea she was like oh and I was like why don't you just take the thing that's making you

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$4 million and make it make you $10 million or you do that and the and the answer is the same

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as the first answer I just don't know how and I was like right well why don't we solve that problem

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and then not create a new business why don't we just put all of our effort in solving that problem

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and so I'm a big believer and this is the the the piece that I want to share with you most

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nation is that I'm a big believer in the theory of constraints which means that a system will

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grow until it is constrained right it has a constraint and then once you remove the constraint it'll

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continue to grow right until it reaches another constraint and so most people are always curious

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are many people ask me hey Alex how did you achieve quote so much in quote such a little time or

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at such a young age and I say all that in quotes because so much could be and young age whatever

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but I'm saying I'm just I'm paraphrasing right and I think that um one of the things that we

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have done well is prioritizing what problems to solve and that is understanding the prioritization

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of problems and realizing that there is really only typically one or two things that are

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constraining our growth and by definition there'd really only be one thing that's the constraint

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until we reach another thing that might be beginning to constrain us but isn't the true constraint yet

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real quick guys if you can think about how you found this podcast somebody probably tweeted it

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told you about it shared it on Instagram or something like that the only way this grows is

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through word of mouth and so I don't run ads I don't do sponsorships I don't sell anything my only

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asses that you continue to pay it for do whoever showed you or however you found out about this

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podcast that you do the exact same thing so if it was a review if it was a post if you do that

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who mean the world to me and you'll throw some good karma out there for another entrepreneur

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right I'll tell you a third story so I had a conversation with a young business owner who is

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doing about a hundred and fifty thousand dollars a month and within you know a little bit of time

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I was able to see that the issue that he had was that he hadn't scaled a sales team right that was

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the issues that he couldn't scale sales and we had there was a zillion things that he could do to

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improve his business he could increase his life number of property could change his pricing model

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I think there were some things on his messaging that were off but at the end of the day the thing

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that he hadn't done was that he hadn't scaled a sales team and so we ended up circling back

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two weeks later and he was like hey you know I want to know how I can like get the most out of this

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that this phone call with you and I was like well have you have you scaled the sales team in he was

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like no and I was like well then we don't really have anything to talk about because there's

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nothing else that matters right now besides this and it took like two or three reinforcements of

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that message until he was like you're really not going to tell anything else I was like no because

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it doesn't matter it doesn't matter that's not the constraint right now sure you could improve

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your pricing sure you could do these other things but the thing that is stopping this business from

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growing is that you do not have a scaled sales team and you don't have that skill so let's phrase

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the deficiency as a question which is how do I learn how to recruit manage and train a sales team

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right and to the first business owner the question that I said who was doing the 550 a month

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who's doing the clinics like the question is how do I scale acquisition and he had he had a

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product that was um it's not a lot to be marketed on on on Facebook and things like that so he

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had to do alternative methods now so the question is how do I acquire more customers than I already

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am from a different channel that I'm allowed to when you when we phrase the questions like that then

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they become problems that we can solve right rather than I don't know what to do therefore I will

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just start another business which so many times is the is the entrepreneurial solution and it's

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because it feels good and we think that somehow when we start another business it's going to

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somehow grow but the reality is and this is what I have found over and over again is that the

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businesses will grow to the level of incompetence of the entrepreneur so if you're a four million

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dollar entrepreneur the next business will be a four million dollar business no matter what it is

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because that is your level that is your skill set right that is that is that is dictated or

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predicated by your beliefs your traits and your skills and unless you change one of those things

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when you start the next business you will be capped at that and the other reality is that how many

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how many publicly traded companies do you know have two or how many CEOs of publicly traded companies

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do you know that are sees of two companies CEOs not founders Elon Musk is the only is the

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exception but he's the founder he's not the one he's right he's not the operator of those companies

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all right because we literally only want right and he's also a genius in the and literally like

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smart as human being a lot but most of us are not Elon Musk where if we're on YouTube right now

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we're probably both not Elon Musk all right maybe we can agree on that all right and so the point

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of this is that you can't be CEO of two things it's hard enough to be in one business business alone

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is hard enough right why make it more difficult and three times as complex by by adding more

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variables in and so I think what most business owners most entrepreneurs can do right now is

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simply ask the question and this is usually what I'll start any conversation that I have with

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an entrepreneur who's reaching out for something right or one of the portfolio companies CEOs

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is I'll just ask the question which is whatever the run rate is at the moment let's say it's a

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million dollars a month I'm like what's stopping us from being a five million a month what's

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stopping us and until we can clearly answer that question there's nothing else we need to do

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and when we ask better questions we get better answers right why am I not growing is different

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than why am I not doing it extra million dollars a month what is stopping us from doing that and if

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we can get crystal clear on that then we can find the constraint and then we can remove the constraint

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because then we can put all of our effort towards that singular problem and that in my opinion is how

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you scale companies quickly is it appears fast from the outside but from the inside it feels

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manageable and clear because we're all focused on the one problem that we're solving at this moment

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which might be in the beginning we need to increase our sales team and then once we've increased

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our sales team we might say hey you know we've increased the sales team but they're not all

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performing the same level so it's like okay we need to have better onboarding and training for

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the sales team okay we need to do that okay that's the next problem that we solve we need to have

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consistency in this process okay now we're doing that but now we're not going to have leads okay

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now we'll put all of our focus here right and so each time there's going to be a constraint and we

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just have to focus our attention towards the constraint and then instead of doing we will debout on

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that and we will naturally grow to the next level and so that has been one of the more valuable

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lessons that I've had and I I will tell you that there are a lot of entrepreneurs who are listening

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to this you right now it might be you so I might be talking to you right now is that you think

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that you need to start another business or another product line because you're stuck at a

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current level and somehow think that this new product line or new business is going to solve the

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problem and it is not all right so if you like this mousination my is Alex Mosy I own acquisition

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.com you can go there for retraining software no often required etc hit subscribe if you liked

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it and I'll see you guys next video bye