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There will literally always be money on the table, like you can't sell everything as much

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as you want to.

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You just can't.

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And the thing is it's like, if this company can go from 6 to 15, and the next year goes

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from 15 to 30, and the next year goes from 30 to 60, if you hit the same numbers and

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have two different product lines versus one, which would you rather have?

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And I'll also tell you that if you just do with one, you'll increase the likelihood,

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not decrease the likelihood that that occurs.

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Alex, my name is Henry.

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I sell education.

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I teach people out of Fix and Flip, mainly the Hispanic market, so it's only in Spanish.

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We did 1.3 mil last year, second year in business, and we want to do 3 million this year.

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So with the more, better, new, right?

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Right now, we only do two events a year, big events, 600 people.

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And we upsell to a high ticket, which 12,000, right?

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And we convert 20% of the room more or less.

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So the 80% that went to that room never sees me again, I never sell them anything again.

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And while that 20%, they bought my high ticket, the mentorship is a year.

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And after that, I don't sell them anything ever again.

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So more, better, do I just do more of these events and like never ending looking for new

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customers for the rest of my life or you're going to focus.

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You're good.

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You're an education.

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And education graduates people.

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Yeah, it's how education works.

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So if you look at the education system overall, the way to create continuity and education,

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it's just always have something else to learn or to teach.

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I like first year, now you're an undergrad, now you're a graduate student, now you have a master's,

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then there's a PhD and you get a second PhD.

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Well, you just keep people just become endless students.

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And so do you want to sell the business eventually or do you just want to make money?

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Make money, I mean, we're not.

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No, it's fine.

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No, I prefer the truth.

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Yeah, I mean, the easiest thing to do is just doubly about events you're doing.

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Either just do you either go one or quarter or you can do two or twelve hundred.

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And would you travel or just stay in where I'm at in Miami?

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Is that where you run them now in Miami?

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Yeah, I'll do these guys, West guys.

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Yeah, maybe Texas or something.

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Yeah.

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Okay.

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I mean, you have a really simple solution, like just run the same playbook more times.

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If I want, if you were like, I want to build a more valuable business than I'd say, take

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the year to figure out revenue retention, which is how do I get these people who pay me

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$12,000 to pay me another $12,000 or pay me $30,000 next year.

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Or even down sell them to something that's $5,000 a year, but they stay.

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Right.

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And focus on retaining that top tier that payment I had to get.

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Yeah, but I think considering for the model that you have down selling the upsell, I actually

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like a lot.

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So if they paid you 12, maybe they'll stay for three or three to five just to have access

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to the network and some of your vendors and the stuff that you kind of like provide.

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And I think that's something that people would be far more likely to stick with.

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And so then you can basically think about your business as from a zooming all the way

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out perspective is that the $12,000 is actually like offset cack, which is like you could

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break even the $12,000 video that someone gets into a $3,000 membership that's pretty

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much all margin that doesn't leave.

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So it's like that allows you to spend way more than your competition because they need

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to make money on the 12.

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You can break even on the 12.

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And then you just have this stack of $3,000 bills that just keep stacking up.

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That's like low, low effort to maintain.

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Got it.

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Makes sense?

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Yeah.

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It's good.

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But yeah, the nice thing is that you're honest about just wanting to make more money.

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It makes this a lot easier.

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Yeah.

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Yeah.

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My name is Mike Nathan.

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I sell cellular therapy in home to the old affluent injured, probably an athletic, we're

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new, but we've got $1,000,000 revenue, half an EBITDA.

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We would like to get the $25,000,000 in home or in home.

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Okay.

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Got it.

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Okay.

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Is it like guy drives out or is it you sending machines?

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Our end drives out gives you an IV infusion in your home.

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I like to get to $25,000,000, we're built to be bought.

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We want to exit.

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So we think we're on the cutting edges.

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What's stopping us is my team is awesome.

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All right.

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Great.

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And from the NFL, it's a lot of great.

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We have great business to doctor B2B sales experience, zero B2C experience.

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In that playbook, we're learning is wildly different.

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We have no idea what we're doing.

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Yeah.

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So what stops you from just doing way more of the doctor stuff?

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It doesn't, it doesn't quite pay as well.

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Meaning we have people that knock on doors to orthopedic surgeons who are looking for patients

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with alternatives to surgery, PT, chiropractors.

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It's a lot of effort and there's some that are going to refer to you and some that just

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will not.

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Yeah.

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So that's our constraint in a one marvel in the Twin Cities.

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So one market play.

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We know there are more people looking for the solution.

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So we want to understand what the B2C is.

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If we go to then Dallas, Philly, LA, as we try to scale it, work in events that needs

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to be a parallel to maybe what we're doing right now.

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What do you do?

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So you're big in 50% margins, right?

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So what's the cost to acquire a physician?

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Cost acquiring a physician who refers to business, also acquiring a affiliate.

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It's off of time.

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It can be a physician so we don't track it that way, but it's $500.

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Okay.

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So it costs you 500.

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And then what does the average physician refer to you in a year in terms of the $6,000?

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Okay.

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Some of you are getting 12 to one there and you already know how that works.

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So like what stops you from doing 10 times more about?

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You're saying they don't pay well, but that's the part I'm not sure.

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I don't understand.

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Because you're getting 50% more.

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One through the woods and hit all the people that are going to refer us.

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The number is not amazing or at least I just know there's more there.

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I assume there's more.

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There's got to be more than the 200 people we've hit.

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Like you've only really talked to 200 in terms of like reach outs and yet 200 signed up

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as affiliates.

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I don't know the number off the top of my head, but it's in the hundreds less than 1,000

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of B2B PT, chiropractors, orthopedic surgeons.

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We've done that.

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10 to 20.

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And the super small people that have given us has been some give for five to six, some

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give zero.

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Yeah.

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Do you have an active affiliate manager who's like regularly reminding them?

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Yeah.

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So the way that I think about affiliates is it's basically a second tier of customer.

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And so you need to have somebody who's regularly kind of like stoking the affiliate fire to

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keep them activated and continue to get them to continue to refer business.

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So I'll give you an example.

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So there was a roofing company for it was a restoration company.

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They had one star, star salesman.

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And all he did was he'd go around to other tradesmen and get them to refer them business.

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And so they would get a thousand bucks to refer the restoration business business.

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But the sales guy got 500 for every time they referred.

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And so that guy all day long was knocking on doors, walking in the front door with donuts,

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asking them how they're doing, bringing coffee to the guys, and then reminding them that

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they existed.

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And that's all he did.

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And so I think you were getting you're doing the hardest part, which is getting them

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to refer.

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You just didn't have the consistent referrals because if you had 200 active affiliates

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who were consistently referring to business, and most of these physicians, especially like

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GP, things like that, they see thousands of patients.

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And many of them could probably benefit from the services you have.

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And so the activation is both getting them to refer consistently, but also percentage

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of customers that they see that they refer to you.

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So it's kind of both sides of it.

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And so I think that the missing link with what you were already doing was just that you

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didn't have basically the continuous affiliate marking strategy to get them to keep sending

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you business.

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So that's probably like right now today, I would fix that first because you already have

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the acquisition system.

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You already have the network.

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And so for me, like reactivating that affiliate, basically the first thing that I did.

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The second thing maybe because you might just reactivate the base and all of a sudden

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you're like, I got 200 guys referring to business, holy shit, we're at 10 million.

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The second thing I would consider probably, I would still probably focus most of my tumble

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in the B2B because you already have it.

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So for this business, I think that it lends itself for what's the price point?

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$6,000 of treatment per treatment.

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Okay.

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Wait, so the average doctor will send you $6,000 a patient per year when he said it costs

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you 500.

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They'll send you one patient.

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Interesting.

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So do you have a process for once the patient gets the thing calling the physician up?

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Sorry.

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So like, I'm Dr. Smith.

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I send you Sandy.

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Sandy goes and gets that well, you come to Sandy and Sandy gets the treatment.

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Is there a cycle where you call back?

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Dr. Smith and say, Hey, we just out with Sandy.

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Here's some of her stuff.

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It's not in a medical term like we're not putting notes back in because it is private.

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For sure.

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Yeah.

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But we do, we ask for more referrals.

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There's a circle back that way.

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There's not a patient loop back.

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Okay.

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That's not true.

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Sometimes that does happen.

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Excuse me.

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Yeah.

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That's not systematized.

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Yeah.

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Yeah.

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I would systematize a hell out of that because it's like, Hey, you just send me this

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person?

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Like, let me close that loop for you.

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She's awesome.

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She loves it.

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By the way, and then we have the, you know, the opening to the other, like what customers

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are, what patients, did you see this week, who do you think it would be a good fit?

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Right?

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And rather than saying, do you have any, it's which ones would be?

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Is the question, small training stuff, but it matters.

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So I feel like there's so much on the view to be side that I don't say that's probably

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where I'd be.

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So you are not going after a B to C approach, like advertising online, going, pushing it

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on a strategy on that.

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It's not that I wouldn't.

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It's that when I think about, so this is the difference in like theoretical and actual.

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Like, I would given, given the fact that you, like you're already running good margins

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on this thing, basically doing it and take this the way I mean it completely unoptimized.

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Right?

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Right now.

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Right?

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And again, I'm not, this is not a slight.

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Then I'm like, there's so much juice left in this thing.

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I don't want to now start something new.

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It's like, I barely got this one going.

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I want to like crush this.

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And when I, when I'm like, no, we've like, we follow up with every single person.

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I've got a full time affiliate manager, you step by, our affiliates, I'm calling

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the affiliates, but it drops by the docs once a week, just to remind us, say nice things,

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hey, by the way, like that is happening all the time.

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And we've already covered like literally every single physician in the Twin Cities.

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Then I'm like, okay, let's go B to C. But if we haven't completely squeezed the hell out

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of this thing and it's already working at the level it is right now with like zero,

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like you're only getting one patient per doc.

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It's like so.

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Yeah.

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So you getting B to B customer is the same as getting one B to C customer.

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I understand why you'd be frustrated because you'd be like, well, fuck it.

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I'll just fuck it.

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I'm a long customer on my own without having to deal with the doc.

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But the whole point is that like, I want them to be sending 20, 50 a month.

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And they can because they have the volume.

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And I think that first one has to be like a beautifully choreographed experience because

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that first patient's the test run for them, for you, right?

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They'll refer you one and we'll see what happens.

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Right.

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00:10:33.460 --> 00:10:35.940
And so one, it's like Sandy's got to be blown away, right?

244
00:10:35.940 --> 00:10:38.580
She's got to come back and be like, oh my God, that place was amazing.

245
00:10:38.580 --> 00:10:41.580
And then you also have to go back to the doc and be like, we blew Sandy away by the

246
00:10:42.580 --> 00:10:44.140
way. And so I think you have to tackle it from both sides.

247
00:10:46.060 --> 00:10:51.300
Real quick, guys, I have a special, special gift for you for being loyal listeners of

248
00:10:51.300 --> 00:10:52.500
the podcast.

249
00:10:52.500 --> 00:10:58.020
Layla and I spent probably an entire quarter putting together our scaling roadmap.

250
00:10:58.020 --> 00:11:03.700
It's breaking, scaling into 10 stages and across all eight functions of the business.

251
00:11:03.700 --> 00:11:06.900
So you've got marketing, you've got sales, you've got product, you got customer success,

252
00:11:06.900 --> 00:11:10.140
you've got IT, you've got recruiting, you got HR, you've got finance.

253
00:11:10.220 --> 00:11:13.980
We show the problems that emerged at every level of scale and how to graduate to the next

254
00:11:13.980 --> 00:11:14.980
level.

255
00:11:14.980 --> 00:11:19.540
It's all free and you can get it personalized to you since about 30-ish pages for each

256
00:11:19.540 --> 00:11:20.540
of the stages.

257
00:11:20.540 --> 00:11:23.980
Once you answer the questions, it will tell you exactly where you're at and what you

258
00:11:23.980 --> 00:11:25.500
need to do to grow.

259
00:11:25.500 --> 00:11:29.620
It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the

260
00:11:29.620 --> 00:11:32.540
part that's relevant to you, which will probably be about 90 minutes.

261
00:11:32.540 --> 00:11:36.660
And so if that's at all interesting, you can go to acquisition.com forward slash roadmap,

262
00:11:36.660 --> 00:11:38.540
R-O-A-D map, roadmap.

263
00:11:41.140 --> 00:11:42.140
Okay.

264
00:11:42.140 --> 00:11:43.460
That's what I would do.

265
00:11:43.460 --> 00:11:46.460
Getting into the ad side, you actually could do it and it can walk through some whole

266
00:11:46.460 --> 00:11:51.780
strategy there, but I, if we swap places, that's where I would be folks.

267
00:11:51.780 --> 00:11:57.300
If you were going to try to expand into other major metros in the next 18 months, would

268
00:11:57.300 --> 00:12:01.740
you have the B2C sort it out before you went to the next market or would you?

269
00:12:01.740 --> 00:12:02.740
Honestly, no.

270
00:12:02.740 --> 00:12:06.340
If I crush my B2B play, then I just roll my B2B playbook and the B2B playbook in the

271
00:12:06.340 --> 00:12:07.340
new market.

272
00:12:07.340 --> 00:12:10.700
Like, once I find something that works, I just want to just do more.

273
00:12:10.700 --> 00:12:11.700
Yeah.

274
00:12:11.700 --> 00:12:12.700
Pillage.

275
00:12:12.700 --> 00:12:13.700
Right on.

276
00:12:13.700 --> 00:12:14.700
Thank you.

277
00:12:14.700 --> 00:12:15.700
Yeah.

278
00:12:15.700 --> 00:12:16.700
No, you've got.

279
00:12:16.700 --> 00:12:17.700
Hi.

280
00:12:17.700 --> 00:12:19.300
My name is Julie Deepteller and we sell travel coaching to people who want to travel more

281
00:12:19.300 --> 00:12:22.460
frequently or more like Jews, leave free or almost free.

282
00:12:22.460 --> 00:12:25.020
You already know all our business stuff.

283
00:12:25.020 --> 00:12:29.860
So my question is kind of piggybacking on what you were talking about earlier with your

284
00:12:29.860 --> 00:12:33.940
six pages of ideas were in a room full of people that are always trying to optimize

285
00:12:33.940 --> 00:12:36.860
as well as always has new ideas.

286
00:12:36.860 --> 00:12:42.700
We had an idea for a B2B offer for adding a 50k concierge offer for businesses that

287
00:12:42.700 --> 00:12:47.060
are already spending half a million or more on travel annually.

288
00:12:47.060 --> 00:12:48.060
Uh-huh.

289
00:12:48.060 --> 00:12:53.140
So when is it appropriate to add a new offer while you're already like still working and

290
00:12:53.140 --> 00:12:54.140
optimizing your.

291
00:12:54.140 --> 00:12:55.140
Yeah.

292
00:12:55.140 --> 00:12:56.140
Just for the ones.

293
00:12:56.140 --> 00:12:57.140
Sorry.

294
00:12:57.140 --> 00:12:58.140
I just wouldn't.

295
00:12:58.140 --> 00:12:59.140
You wouldn't.

296
00:12:59.140 --> 00:13:00.140
I wouldn't do it.

297
00:13:00.140 --> 00:13:01.140
Okay.

298
00:13:01.140 --> 00:13:03.700
You're going to go from six to 15 this year.

299
00:13:03.700 --> 00:13:04.700
Do that.

300
00:13:04.700 --> 00:13:05.700
Okay.

301
00:13:05.700 --> 00:13:12.340
Like I'm not trying to be like short to like like these are these are the mistakes that

302
00:13:12.340 --> 00:13:14.500
we make.

303
00:13:14.500 --> 00:13:17.500
There will literally always be money on the table.

304
00:13:17.500 --> 00:13:22.380
Like you you can't sell everything as much as you want to feel like you just you just

305
00:13:22.380 --> 00:13:23.380
can't.

306
00:13:23.380 --> 00:13:28.420
And the thing is is like if it said differently, if this company can go from six to 15 and

307
00:13:28.420 --> 00:13:32.660
the next year goes from 15 to 30 and the next year goes from 30 to 60.

308
00:13:32.660 --> 00:13:36.540
If you hit the same numbers and have two different product lines versus one, which would

309
00:13:36.540 --> 00:13:39.780
you rather have one, right?

310
00:13:39.780 --> 00:13:42.380
And I'll also tell you that if you just do with one, you'll increase the likelihood,

311
00:13:42.380 --> 00:13:45.740
not decrease the likelihood that that occurs.

312
00:13:45.740 --> 00:13:48.340
And so like that's all that that's the focus and discipline stuff that you hear only.

313
00:13:48.340 --> 00:13:53.380
They Steve Jobs to know that like it's just it's uh, he called it the uh, the quantity

314
00:13:53.380 --> 00:13:58.100
of unbelievable ideas that you know you could crush that you've say no to.

315
00:13:58.100 --> 00:13:59.100
That's what focuses.

316
00:13:59.180 --> 00:14:02.980
So how do you discern when to pursue something off of that six page list?

317
00:14:02.980 --> 00:14:07.540
When we have bandwidth, which if you're continually like if you're basically doubling every

318
00:14:07.540 --> 00:14:11.460
year, your bandwidth is getting eating up by doubling.

319
00:14:11.460 --> 00:14:13.460
So just double.

320
00:14:13.460 --> 00:14:15.500
Basically it's like why why would we do it?

321
00:14:15.500 --> 00:14:16.500
Okay.

322
00:14:16.500 --> 00:14:17.500
Thank you.

323
00:14:17.500 --> 00:14:18.500
Yeah.

324
00:14:18.500 --> 00:14:23.300
But if it's like I want to grow, why would I like why it like then let's just grow with

325
00:14:23.300 --> 00:14:26.420
the thing that already is working and is really profitable and we know everything about

326
00:14:26.420 --> 00:14:30.140
it rather than this, you know, crazy girl in the red dress that like walking by like

327
00:14:30.140 --> 00:14:33.340
has a crazy boyfriend, has crabs like what's going on, you know.

328
00:14:33.340 --> 00:14:34.340
So like why bother?

329
00:14:34.340 --> 00:14:35.620
It's like we have this girl.

330
00:14:35.620 --> 00:14:36.620
She loves us.

331
00:14:36.620 --> 00:14:37.620
She knows me.

332
00:14:37.620 --> 00:14:38.620
I know her.

333
00:14:38.620 --> 00:14:39.620
Let's go.

334
00:14:39.620 --> 00:14:40.620
Hi Alex.

335
00:14:40.620 --> 00:14:42.020
My name's Luke.

336
00:14:42.020 --> 00:14:46.740
We run a firm similar to quite actually in Sydney where we buy majority stakes for all

337
00:14:46.740 --> 00:14:47.740
the businesses.

338
00:14:47.740 --> 00:14:49.460
We kindly operate three of them.

339
00:14:49.460 --> 00:14:54.020
We want to be operating or at least contributing to operations for about 30.

340
00:14:54.020 --> 00:14:55.780
We've had a lot of success exiting in the past.

341
00:14:55.780 --> 00:14:59.420
So we've kind of got a dialed in but we can't do more than a couple at a time.

342
00:14:59.420 --> 00:15:05.620
Our constraint is at the sort of venture studio level is the or is talent really.

343
00:15:05.620 --> 00:15:09.020
We don't really know what our org charge should be and who should be doing it.

344
00:15:09.020 --> 00:15:12.060
So I don't know if there's anyone better place to help with the new.

345
00:15:12.060 --> 00:15:14.420
So you have a holding company right now.

346
00:15:14.420 --> 00:15:15.420
Yeah.

347
00:15:15.420 --> 00:15:17.460
And what are the three businesses that you buy?

348
00:15:17.460 --> 00:15:18.980
One's a SaaS company in the moment.

349
00:15:18.980 --> 00:15:23.740
One's early education and the other one is a gourmet food e-commerce business.

350
00:15:23.740 --> 00:15:26.580
The one before that was a music industry style.

351
00:15:26.580 --> 00:15:27.820
We're really diverse.

352
00:15:27.820 --> 00:15:29.540
Well, we just had a lot of exits.

353
00:15:29.540 --> 00:15:30.780
So these three are quite small.

354
00:15:30.780 --> 00:15:34.260
The e-commerce ones doing three and a half million at the moment.

355
00:15:34.260 --> 00:15:35.780
Any other ones are smaller?

356
00:15:35.780 --> 00:15:36.780
Yeah.

357
00:15:36.780 --> 00:15:37.780
Yeah, they just started here.

358
00:15:37.780 --> 00:15:38.780
Yeah.

359
00:15:38.780 --> 00:15:39.780
So they've said to this one.

360
00:15:39.780 --> 00:15:40.780
This one's only a year old.

361
00:15:40.780 --> 00:15:48.340
So are you funding them and finding a founder or are you buying businesses that are

362
00:15:48.340 --> 00:15:50.420
existing and exiting the founders?

363
00:15:50.420 --> 00:15:54.460
In the current case of these current three, we've just bought them and now we're the only

364
00:15:54.460 --> 00:15:55.460
operators of them.

365
00:15:55.460 --> 00:15:56.460
I'll go in the past.

366
00:15:56.460 --> 00:15:57.860
It's been slightly different.

367
00:15:57.860 --> 00:16:00.260
So how do you case by case?

368
00:16:00.260 --> 00:16:01.260
What do you want to do with your life?

369
00:16:01.260 --> 00:16:04.900
No, because what I'm about to say is going to be a dramatic change from what you're doing.

370
00:16:04.900 --> 00:16:06.860
I want to have fuck it money.

371
00:16:06.860 --> 00:16:07.860
Okay.

372
00:16:07.860 --> 00:16:08.860
Yeah.

373
00:16:08.860 --> 00:16:12.540
So there's basically you have, how much do you know about private equity?

374
00:16:12.540 --> 00:16:14.460
A brand of couple of books.

375
00:16:14.460 --> 00:16:15.460
Okay.

376
00:16:15.460 --> 00:16:21.860
So the problem, I can tell you what the problem with the existing model is, is that you don't

377
00:16:21.860 --> 00:16:23.820
have enough operating leverage.

378
00:16:23.820 --> 00:16:27.020
And so it's actually, in my opinion, a foundational issue with the business model, like I don't

379
00:16:27.020 --> 00:16:28.180
think it's going to work.

380
00:16:28.180 --> 00:16:30.340
Now to be clear, I think you can make some money.

381
00:16:30.340 --> 00:16:32.940
I don't think it's going to accomplish the goal that you want.

382
00:16:32.940 --> 00:16:36.420
And so if you're trying to treat this like private equity, we hope to have exits later

383
00:16:36.420 --> 00:16:40.140
and then gain liquidity versus if you were like, I'm just a holding company and I just

384
00:16:40.140 --> 00:16:43.540
want to continue to buy cash flowing businesses, I'd have a slightly different answer.

385
00:16:43.540 --> 00:16:46.060
But the business is that you're buying or too small.

386
00:16:46.060 --> 00:16:48.740
And so if you're exiting founders, then the problem that you're having is like, oh my

387
00:16:48.740 --> 00:16:52.780
God, I have to build this entire business, which is why most private equity institutions

388
00:16:52.780 --> 00:16:56.900
start at five million in EBITDA as they're basically minimum that they're checksize that

389
00:16:56.900 --> 00:17:00.540
they're willing to write because of the problem that you are dealing with right now.

390
00:17:00.540 --> 00:17:04.420
And so I would encourage you to not try and reinvent the wheel.

391
00:17:04.420 --> 00:17:08.980
And I say this coming from like with errors in my back and lots of scars in the first

392
00:17:08.980 --> 00:17:11.540
24 months of acquisition, not commented 24 deals.

393
00:17:11.540 --> 00:17:16.220
I had much, many, many smaller deals because I thought, okay, I'll just do, I'll use the

394
00:17:16.220 --> 00:17:17.220
brand that I have.

395
00:17:17.220 --> 00:17:20.460
I'll attract entrepreneurs that are kind of emerging.

396
00:17:20.460 --> 00:17:24.900
And I'll have to take a minority stake and kind of help them grow whatever.

397
00:17:24.900 --> 00:17:30.060
The issue with that is that a lot of businesses that are small are small for a reason because

398
00:17:30.060 --> 00:17:32.380
they don't have good entrepreneurs who are leading them.

399
00:17:32.380 --> 00:17:36.700
And now you're like, okay, well, either you remove the mediocre entrepreneur and now you

400
00:17:36.700 --> 00:17:41.500
have just a bunch of basically nothing that you're now like, oh, now I just bought myself

401
00:17:41.500 --> 00:17:42.500
a job.

402
00:17:42.500 --> 00:17:43.500
Right?

403
00:17:43.500 --> 00:17:45.660
And maybe you'd add for no money down because they were willing to leave and you didn't

404
00:17:45.660 --> 00:17:48.060
have a lot of capital that you had to put the work fine.

405
00:17:48.060 --> 00:17:51.780
But I would, in my opinion, you have basically two paths that you can pursue here from where

406
00:17:51.780 --> 00:17:52.940
you're currently at.

407
00:17:52.940 --> 00:17:57.780
I don't think buying more companies is the answer unless you raise a lot of money so that

408
00:17:57.780 --> 00:18:02.300
you can buy actual companies and not like someone's big bucket of risk, right?

409
00:18:02.300 --> 00:18:06.380
Which is what we, if you took the companies that you bought through the, the scorecard,

410
00:18:06.380 --> 00:18:09.980
I'll bet you that they probably fail a lot of those checkpoints.

411
00:18:09.980 --> 00:18:11.140
Two of those three half, yeah.

412
00:18:11.140 --> 00:18:12.140
Yeah.

413
00:18:12.140 --> 00:18:16.060
And so, and for that reason, they wouldn't be deal, like they wouldn't be deal-ready businesses,

414
00:18:16.060 --> 00:18:17.060
right?

415
00:18:17.060 --> 00:18:19.580
They're just basically a person with a job that has a couple of people helping them out.

416
00:18:19.580 --> 00:18:22.220
And then that person steps away.

417
00:18:22.220 --> 00:18:23.220
And now what?

418
00:18:23.220 --> 00:18:24.220
Right?

419
00:18:24.220 --> 00:18:25.820
And now you're just responsible.

420
00:18:25.820 --> 00:18:26.820
So basically two paths.

421
00:18:26.820 --> 00:18:31.780
So the path of one is that you raise money or get enough money to buy legit businesses.

422
00:18:31.780 --> 00:18:36.980
And two is that you decide one of these businesses is the business that you want to do as your

423
00:18:36.980 --> 00:18:38.220
main thing.

424
00:18:38.220 --> 00:18:42.740
And you use your M&A skills to basically bolt on stuff to using that as a platform rather

425
00:18:42.740 --> 00:18:45.100
than having all these disparate businesses.

426
00:18:45.100 --> 00:18:46.100
So that makes sense.

427
00:18:46.100 --> 00:18:48.940
So it's like the commerce one is the best one is like, okay, can we acquire some sub-brands

428
00:18:48.940 --> 00:18:52.660
or some sub-product ones underneath that, fold them into the brand and then flip that?

429
00:18:52.660 --> 00:18:53.820
That makes sense.

430
00:18:53.820 --> 00:18:57.540
And that allows you to not have as much capital and you can organically grow it and then

431
00:18:57.540 --> 00:18:58.540
you can keep your focus.

432
00:18:58.540 --> 00:19:02.500
But there's a reason that most private platforms only take on, call it five to eight investments

433
00:19:02.500 --> 00:19:06.300
and that's after they raise half a billion dollars to make those deals.

434
00:19:06.300 --> 00:19:08.580
If they're in disparate industries.

435
00:19:08.580 --> 00:19:13.140
If they're a private platform that has a thesis based around basically a roll-up strategy

436
00:19:13.140 --> 00:19:16.780
where they're like rolling by and plumbing and that's our whole thesis, fine.

437
00:19:16.780 --> 00:19:20.100
And that's more akin to what you were doing in terms of alpha, a little bit more boring

438
00:19:20.100 --> 00:19:24.580
more ops heavy, but you don't have to have as much capital.

439
00:19:24.580 --> 00:19:26.540
And the more entrepreneurial you are, the more organic growth you can be able to drive

440
00:19:26.540 --> 00:19:28.100
in the original platform business.

441
00:19:28.260 --> 00:19:29.100
Is that possible?

442
00:19:29.100 --> 00:19:30.100
Thank you.

443
00:19:30.100 --> 00:19:31.100
Yeah.

444
00:19:31.100 --> 00:19:32.100
Okay.

445
00:19:32.100 --> 00:19:33.100
Thank you.

446
00:19:33.100 --> 00:19:34.100
Thank you.

447
00:19:34.100 --> 00:19:35.100
My name is Chris.

448
00:19:35.100 --> 00:19:36.100
So I glasses to people that can't see.

449
00:19:36.100 --> 00:19:37.100
And specifically.

450
00:19:37.100 --> 00:19:38.100
Nice.

451
00:19:38.100 --> 00:19:39.100
Targety.

452
00:19:39.100 --> 00:19:40.100
Yeah.

453
00:19:40.100 --> 00:19:41.100
Yeah.

454
00:19:41.100 --> 00:19:42.100
Right.

455
00:19:42.100 --> 00:19:46.580
So specifically trying to target a piece of that, which is not just your primary pair, which

456
00:19:46.580 --> 00:19:48.380
is like, I can't see I need to see.

457
00:19:48.380 --> 00:19:52.540
But more specific things like driving office, that kind of stuff, a little bit more of those

458
00:19:52.540 --> 00:19:54.340
tasks, specific things.

459
00:19:54.340 --> 00:19:55.700
So this is going to sound funny here.

460
00:19:55.700 --> 00:19:57.700
Basically, we do $0 in revenue.

461
00:19:57.700 --> 00:19:59.700
We'd love to be at $100 million.

462
00:19:59.700 --> 00:20:00.700
You do.

463
00:20:00.700 --> 00:20:01.700
Zero dollars.

464
00:20:01.700 --> 00:20:02.700
Yeah.

465
00:20:02.700 --> 00:20:03.700
So I'm going to.

466
00:20:03.700 --> 00:20:04.700
Okay.

467
00:20:04.700 --> 00:20:05.700
So basically, I have a business that I'm exiting 10 locations.

468
00:20:05.700 --> 00:20:06.700
Awesome.

469
00:20:06.700 --> 00:20:07.700
You don't care about that when you want to.

470
00:20:07.700 --> 00:20:08.700
Coming out of that.

471
00:20:08.700 --> 00:20:10.940
So what I'm here for is to understand, like, well, if I'm going to start this, let me start

472
00:20:10.940 --> 00:20:11.940
at the best.

473
00:20:11.940 --> 00:20:12.940
Well, what's the best vehicle?

474
00:20:12.940 --> 00:20:13.940
Those kinds of things.

475
00:20:13.940 --> 00:20:14.940
Yeah.

476
00:20:14.940 --> 00:20:15.940
That's why, like, yeah, we're.

477
00:20:15.940 --> 00:20:16.940
So you're going to bring a mortar.

478
00:20:16.940 --> 00:20:17.940
Oh, yeah.

479
00:20:17.940 --> 00:20:18.940
We have 10 brick and mortar.

480
00:20:18.940 --> 00:20:19.940
No, the glasses.

481
00:20:19.940 --> 00:20:21.940
So that's kind of the question is.

482
00:20:21.940 --> 00:20:23.700
Normally it's like, do I go brick and mortar?

483
00:20:23.700 --> 00:20:27.020
So I could either use doctors as affiliates, et cetera.

484
00:20:27.020 --> 00:20:32.420
But the problem there is that they, their, their sales teams that otherwise don't tend

485
00:20:32.420 --> 00:20:34.380
to sell these glasses well.

486
00:20:34.380 --> 00:20:35.620
So I'm on the eye doctor.

487
00:20:35.620 --> 00:20:40.100
And so part of this is coming from knowing these common, like, five things that people

488
00:20:40.100 --> 00:20:41.100
just find.

489
00:20:41.100 --> 00:20:42.100
My mother and grandfather are ophthalmologists.

490
00:20:42.100 --> 00:20:43.100
Oh, really?

491
00:20:43.100 --> 00:20:44.100
Oh, yeah.

492
00:20:44.100 --> 00:20:45.100
Well, you know this well that I got.

493
00:20:45.100 --> 00:20:46.100
So.

494
00:20:46.100 --> 00:20:49.580
And so those common things are not being addressed well because it's just not communicated

495
00:20:49.580 --> 00:20:50.580
well.

496
00:20:50.860 --> 00:20:55.460
So then I have to like figure out how to get them to sell the product that I'm making,

497
00:20:55.460 --> 00:20:57.140
which is like a whole challenge itself.

498
00:20:57.140 --> 00:21:02.860
Or do I just sort of go more to the path of like direct consumer and, and that kind

499
00:21:02.860 --> 00:21:03.860
of thing?

500
00:21:03.860 --> 00:21:07.180
And whether we brick and mortar or come ill of online, et cetera, I think it depends on

501
00:21:07.180 --> 00:21:08.180
your strengths.

502
00:21:08.180 --> 00:21:09.180
Yeah.

503
00:21:09.180 --> 00:21:12.180
So Laila has a really good frame for these types of decisions, which is what problem would

504
00:21:12.180 --> 00:21:13.180
you rather have?

505
00:21:13.180 --> 00:21:15.260
Because you're going to have a problem either of them, right?

506
00:21:15.260 --> 00:21:18.420
The problem that you described with the first one is basically the affiliate problem,

507
00:21:18.420 --> 00:21:19.660
which is how do I attract them?

508
00:21:19.660 --> 00:21:21.300
How do I keep them motivated?

509
00:21:21.300 --> 00:21:22.300
How do I train them?

510
00:21:22.300 --> 00:21:23.380
How do I keep quality high?

511
00:21:23.380 --> 00:21:25.660
How do I make sure that they're representing the brand the right way?

512
00:21:25.660 --> 00:21:27.140
That is the problem with affiliates.

513
00:21:27.140 --> 00:21:30.340
But the nice thing is that if you solve that problem, you get paid like $50 or $100

514
00:21:30.340 --> 00:21:31.340
million.

515
00:21:31.340 --> 00:21:34.900
And so like I feel like there's an appropriate price tag that's right for solving it.

516
00:21:34.900 --> 00:21:37.580
And that's what gets me through honestly harder times when you guys, because sometimes

517
00:21:37.580 --> 00:21:40.540
you're like, man, I just can't figure out how to get these conferences to work.

518
00:21:40.540 --> 00:21:41.540
It's like, yeah.

519
00:21:41.540 --> 00:21:42.900
And then as soon as you do, you make $10 million.

520
00:21:42.900 --> 00:21:43.900
So yeah, solve it.

521
00:21:43.900 --> 00:21:46.100
Like it's like, that's how it works.

522
00:21:46.100 --> 00:21:48.300
And it comes to the direct consumer side.

523
00:21:48.300 --> 00:21:53.220
If you feel like you're more skilled with, call it, you know, map basically the business,

524
00:21:53.220 --> 00:21:54.380
like what business you're really in.

525
00:21:54.380 --> 00:21:59.340
So if you get into the direct consumer business, your competing against like snow teeth widening.

526
00:21:59.340 --> 00:22:04.900
And like if you look at the business model there, it's all media, it's all, it's all, you

527
00:22:04.900 --> 00:22:07.500
know, advertising driven type business.

528
00:22:07.500 --> 00:22:10.540
This is with glasses, likely very transactional.

529
00:22:10.540 --> 00:22:12.940
So it's a super direct response heavy business.

530
00:22:12.940 --> 00:22:17.620
You'd probably be recruiting affiliates for brand associations and be able to whitelist

531
00:22:17.620 --> 00:22:20.860
for them to be wearing your, you know, your, your glasses and whatnot.

532
00:22:20.860 --> 00:22:22.260
And that's the business that you're in.

533
00:22:22.260 --> 00:22:25.460
So it's going to be the problems that you're solving or I have to be creating shitloads

534
00:22:25.460 --> 00:22:29.980
and shitloads of ads all the time, I have to be up to date on the best media buying stuff

535
00:22:29.980 --> 00:22:32.620
and have a really good at CROs or conversion optimization.

536
00:22:32.620 --> 00:22:36.900
And I should probably over time develop a strong influencer affiliate strategy so that

537
00:22:36.900 --> 00:22:41.180
I can actually build a brand rather than just a row as arbitrage business.

538
00:22:41.180 --> 00:22:42.460
That's that path.

539
00:22:42.460 --> 00:22:46.100
The other path is the brick and mortar affiliate path where you still are centralized.

540
00:22:46.100 --> 00:22:49.460
You're just using doctors as your distribution base.

541
00:22:49.460 --> 00:22:52.260
If I depict which one I would rather have, I would rather do that one.

542
00:22:52.260 --> 00:22:53.460
That's me personally.

543
00:22:53.460 --> 00:22:56.020
And you're also a physician, which I think gives you a little bit of leg up or at least

544
00:22:56.020 --> 00:22:57.940
foot in the door, figuratively and literally.

545
00:22:57.940 --> 00:23:01.380
I think that that one actually, if you want to sell a business in the future, would probably

546
00:23:01.380 --> 00:23:07.020
be more likely to be sellable just because the direct response nature of that other business

547
00:23:07.020 --> 00:23:12.700
is so volatile that any kind of like wrinkle of volatility in a year prior to a sale, sales

548
00:23:12.700 --> 00:23:14.300
done, sales off the table.

549
00:23:14.300 --> 00:23:19.140
And so whereas once you develop a strong affiliate base of basically referral network from physicians,

550
00:23:19.140 --> 00:23:22.900
though it is complex and challenging, literally you just solve that one problem and you have

551
00:23:22.900 --> 00:23:23.900
the business.

552
00:23:23.900 --> 00:23:24.900
Yeah.

553
00:23:24.900 --> 00:23:30.180
It's a small follow up to that would be then is so in the vein that that's the ultimate

554
00:23:30.180 --> 00:23:31.180
goal.

555
00:23:31.180 --> 00:23:35.700
I know that well in order to get there, solving that problem means that I probably need

556
00:23:35.700 --> 00:23:44.580
to do this XYZ here for that practice so that eventually I'll be able to do a lot.

557
00:23:44.580 --> 00:23:49.900
That's, I guess, okay to sort of take that approach, that longer tail approach of it.

558
00:23:49.900 --> 00:23:50.900
Nothing's fast.

559
00:23:50.900 --> 00:23:51.900
Yeah.

560
00:23:51.900 --> 00:23:52.900
Well, sure.

561
00:23:52.900 --> 00:23:53.900
No, I was just being like super rare.

562
00:23:53.900 --> 00:23:57.620
Just more from obviously experience of seeing it and going like, oh, that's a stupid path

563
00:23:57.620 --> 00:23:58.620
versus.

564
00:23:58.620 --> 00:24:00.060
No, I think either of those paths would work.

565
00:24:00.060 --> 00:24:04.180
I think given your experience from just the limited amount that I, you know, we've interacted

566
00:24:04.180 --> 00:24:05.180
right now.

567
00:24:05.180 --> 00:24:07.860
You'd said, I'm a hardcore drug response marketer.

568
00:24:07.860 --> 00:24:08.860
I make tons of media.

569
00:24:08.860 --> 00:24:09.860
I really understand that.

570
00:24:09.860 --> 00:24:12.620
Well, I'm really good at building sites and know people who can, you know, see how

571
00:24:12.620 --> 00:24:13.620
really well.

572
00:24:13.620 --> 00:24:16.140
Then I'd be like, okay, maybe that's the play, but if you didn't, but you didn't jump

573
00:24:16.140 --> 00:24:17.300
at any of that.

574
00:24:17.300 --> 00:24:19.300
And so this one feels like the right path.

575
00:24:19.300 --> 00:24:20.300
All right.

576
00:24:20.300 --> 00:24:21.300
Makes sense.

577
00:24:21.300 --> 00:24:22.300
Yeah.

578
00:24:22.300 --> 00:24:23.300
Alex, my name is Josiah.

579
00:24:23.300 --> 00:24:26.740
We sell chiropractic services to members of lifetime fitness or in a 16 way in this,

580
00:24:26.740 --> 00:24:27.740
you do.

581
00:24:27.740 --> 00:24:28.740
Sorry.

582
00:24:28.740 --> 00:24:30.740
Well, so our practice services to members of lifetime fitness.

583
00:24:30.740 --> 00:24:31.740
Okay, God.

584
00:24:31.740 --> 00:24:32.740
Are you in lifetime?

585
00:24:32.740 --> 00:24:33.740
Yes.

586
00:24:33.740 --> 00:24:34.740
Got it.

587
00:24:34.740 --> 00:24:40.180
I was like, that's a niche, like your ads are like, are you a lifetime fitness member?

588
00:24:40.180 --> 00:24:41.540
You're the only people we take.

589
00:24:41.540 --> 00:24:42.540
No, I understand.

590
00:24:42.540 --> 00:24:43.540
Okay.

591
00:24:43.540 --> 00:24:44.540
Got it.

592
00:24:44.540 --> 00:24:45.540
Got it.

593
00:24:45.540 --> 00:24:46.540
No.

594
00:24:46.540 --> 00:24:47.540
So we're going to do 16 million this year.

595
00:24:47.540 --> 00:24:48.540
Might get the 32 million.

596
00:24:48.540 --> 00:24:50.380
The thing that's stopping us right now is the cell for our chiropractors in the front end

597
00:24:50.380 --> 00:24:51.780
to the initial eight week plan.

598
00:24:51.780 --> 00:24:52.780
Okay.

599
00:24:52.780 --> 00:24:53.980
They don't convert really well.

600
00:24:53.980 --> 00:24:54.980
Okay.

601
00:24:54.980 --> 00:24:55.980
Some do.

602
00:24:55.980 --> 00:24:56.980
We use the closer framework.

603
00:24:56.980 --> 00:24:57.980
Sure.

604
00:24:57.980 --> 00:25:02.180
And some doctors have three times the lifetime value of other doctors.

605
00:25:02.180 --> 00:25:08.180
The pushback we get is they say, I'm a doctor, I'm not a salesperson, two salesee.

606
00:25:08.180 --> 00:25:10.340
So they have a hard time following the script.

607
00:25:10.340 --> 00:25:12.300
How can I break their mindsets?

608
00:25:12.300 --> 00:25:16.820
I think you'll probably, one is, I think Chick-fil-A's, the head of people there has a really

609
00:25:16.820 --> 00:25:21.260
great framework on this, which is basically like a lot of teams will lose in the playoffs

610
00:25:21.260 --> 00:25:25.860
and think they lost in the playoffs when they lost in the draft.

611
00:25:25.860 --> 00:25:28.060
And so you much have the wrong docs.

612
00:25:28.060 --> 00:25:32.100
And so if I think about like, you know, you have your customer avatar characteristics,

613
00:25:32.100 --> 00:25:37.740
you should be more selective about your chiropractor avatar characteristics.

614
00:25:37.740 --> 00:25:42.740
These are the beliefs you have to have out of the world in order to function well within

615
00:25:42.740 --> 00:25:43.980
this business model.

616
00:25:43.980 --> 00:25:47.820
For the same reason that I didn't work with yogis and spin studios, even though it's

617
00:25:47.820 --> 00:25:52.300
literally this exact same business model as large boot camps, it's the same business.

618
00:25:52.300 --> 00:25:58.860
But they were so like, woo, woo, that my like race prices and sell shit was like, whoa.

619
00:25:58.860 --> 00:26:01.940
And so I didn't work with them because they were just too big of a pain.

620
00:26:01.940 --> 00:26:06.780
And so to the same degree, I would say there are two ways to solve this.

621
00:26:06.780 --> 00:26:08.620
One is just pick the docs right up front.

622
00:26:08.620 --> 00:26:11.700
The reason that I would prefer that one is then you already have a business model that

623
00:26:11.700 --> 00:26:14.900
clearly works since I would be like a hesitant to try and like change something.

624
00:26:14.900 --> 00:26:19.340
The second, well, subpoint under the, that is probably just significantly more frequent

625
00:26:19.340 --> 00:26:20.340
training.

626
00:26:20.340 --> 00:26:21.580
And that's in the form of role playing.

627
00:26:21.580 --> 00:26:24.940
I have yet to find anything that is more effective than modeling and role playing when it comes

628
00:26:24.940 --> 00:26:25.940
to transferring skill.

629
00:26:25.940 --> 00:26:29.140
The nice things that sales can be transferred relatively quickly, especially because they're,

630
00:26:29.140 --> 00:26:30.140
they're smart.

631
00:26:30.140 --> 00:26:31.140
They can figure it out.

632
00:26:31.140 --> 00:26:32.540
Would they get lost in as all the medical stuff?

633
00:26:32.540 --> 00:26:35.460
And they try like techno jarroll, you know, people and then they have no idea.

634
00:26:35.460 --> 00:26:36.460
It's like, hey, you're in pain.

635
00:26:36.460 --> 00:26:40.660
I'll get you to be not pain by this thing, right?

636
00:26:40.660 --> 00:26:47.940
But I think reading testimonials of patients who were undersold or not sold and telling

637
00:26:47.940 --> 00:26:52.340
them that they are hurting them by not providing solutions to help them.

638
00:26:52.340 --> 00:26:56.940
And so I think to be clear, I would also position this is like, we're not selling here.

639
00:26:56.940 --> 00:26:59.780
We're making offers available to people who need them.

640
00:26:59.780 --> 00:27:00.780
That's all.

641
00:27:00.780 --> 00:27:04.380
So that's what I would try and do to like immediately try and fix the existing thing.

642
00:27:04.380 --> 00:27:08.220
If you feel like this is some structural thing, I'm not sold on the fact that it is, but

643
00:27:08.220 --> 00:27:11.660
I have seen models where they have patient care coordinator and they just leave the doc

644
00:27:11.660 --> 00:27:14.860
in the back and they've just found it easier to just find salespeople and just be like,

645
00:27:14.860 --> 00:27:19.300
cool, you're the manager's location, which really just like lifetime fitness, the manager

646
00:27:19.300 --> 00:27:20.300
is just sales manager.

647
00:27:20.300 --> 00:27:21.300
Right?

648
00:27:21.300 --> 00:27:22.300
Like we both have that.

649
00:27:22.300 --> 00:27:25.300
And so basically the patient care coordinator is just the sales person.

650
00:27:25.300 --> 00:27:26.300
Yeah.

651
00:27:26.300 --> 00:27:27.300
Cool.

652
00:27:27.300 --> 00:27:28.300
Thank you so much.

653
00:27:28.300 --> 00:27:29.300
No, you bet.

654
00:27:29.300 --> 00:27:30.300
Does that help though?

655
00:27:30.300 --> 00:27:31.300
Super helpful.

656
00:27:31.300 --> 00:27:32.300
Okay.

657
00:27:32.300 --> 00:27:35.180
I was already talking with Jacob really about sales in terms of simplifying this and then

658
00:27:35.180 --> 00:27:37.780
starting like a three times a week role play.

659
00:27:37.780 --> 00:27:39.220
So that's been hit a few times.

660
00:27:39.220 --> 00:27:43.500
And then just talking with Frank to it's like, I think we do our opportunities from the

661
00:27:43.500 --> 00:27:44.500
hiring standpoint.

662
00:27:44.500 --> 00:27:49.580
We just got to dial in the expectations we put even in the, you know, I post the interview

663
00:27:49.580 --> 00:27:50.580
process.

664
00:27:50.580 --> 00:27:51.780
Because there were definitely some car practice.

665
00:27:51.780 --> 00:27:52.780
We love selling.

666
00:27:52.780 --> 00:27:53.780
Yeah.

667
00:27:53.780 --> 00:27:56.260
And so one other thing that I think you can do tactically to make the kind of operationalize

668
00:27:56.260 --> 00:28:00.380
this besides the role playing and concept feedback is because of the benefit of being one

669
00:28:00.380 --> 00:28:03.900
in person into a physician, having a clipboard that has the script on it with Chuck

670
00:28:03.900 --> 00:28:06.900
Marks makes it really hard to mess up.

671
00:28:06.900 --> 00:28:10.940
It's like, so what brought you in today?

672
00:28:10.940 --> 00:28:15.700
Tell me where it hurts on a scale from one to 10.

673
00:28:15.700 --> 00:28:16.700
How bad is it hurt?

674
00:28:16.700 --> 00:28:18.020
A lot.

675
00:28:18.020 --> 00:28:21.660
Tell me all the things that you can't do as a result of this pain.

676
00:28:21.660 --> 00:28:24.580
Tell me the things that you wish you could do that if this pain resolved you would now

677
00:28:24.580 --> 00:28:25.580
be able to do.

678
00:28:25.580 --> 00:28:26.580
All right.

679
00:28:26.580 --> 00:28:29.380
So what have you tried so far?

680
00:28:29.380 --> 00:28:30.740
Oh, that's interesting.

681
00:28:30.740 --> 00:28:31.740
We're not like that.

682
00:28:31.740 --> 00:28:32.740
You didn't like that.

683
00:28:32.740 --> 00:28:33.740
Oh, you like that?

684
00:28:33.740 --> 00:28:34.740
We're a lot like that.

685
00:28:34.740 --> 00:28:35.740
Great.

686
00:28:35.740 --> 00:28:36.740
Wonderful.

687
00:28:36.740 --> 00:28:39.860
And so basically for everything that you've told me, if you really hated this stuff and

688
00:28:39.860 --> 00:28:42.100
you really like this stuff, I think you're going to love what I have to tell you.

689
00:28:42.100 --> 00:28:43.100
Can I talk to you about it?

690
00:28:43.100 --> 00:28:44.100
Great.

691
00:28:44.100 --> 00:28:45.100
I've permission for the close.

692
00:28:45.100 --> 00:28:46.100
And then I just stay like, great.

693
00:28:46.100 --> 00:28:47.100
There's three options.

694
00:28:47.100 --> 00:28:48.100
We go into the picture.

695
00:28:48.100 --> 00:28:49.100
Well, I like you.

696
00:28:49.100 --> 00:28:50.580
I mean, you dropped that video a little bit on the plane.

697
00:28:50.580 --> 00:28:51.580
Perfect.

698
00:28:51.580 --> 00:28:52.580
Exactly.

699
00:28:52.580 --> 00:28:56.340
And I love your idea about just breaking it to like a script on like an laptop or iPad,

700
00:28:56.340 --> 00:28:58.020
just like go through it together.

701
00:28:58.020 --> 00:28:59.260
That seems genius.

702
00:28:59.260 --> 00:29:00.820
So thank you all much.

703
00:29:00.820 --> 00:29:01.820
No, you bet.

704
00:29:01.820 --> 00:29:06.140
My name is Christian and I sell solar to homeowners and we do $20 million in revenue

705
00:29:06.140 --> 00:29:07.140
a year.

706
00:29:07.140 --> 00:29:09.860
I would like to be at $160 million in revenue.

707
00:29:09.860 --> 00:29:13.900
The biggest thing that's stopping me is we can recruit unlimited appointment setters.

708
00:29:13.900 --> 00:29:16.140
The reps that we bring on are independent contractors.

709
00:29:16.140 --> 00:29:17.140
Yeah.

710
00:29:17.140 --> 00:29:19.620
So there's not a high cost there.

711
00:29:19.620 --> 00:29:24.980
The biggest bottleneck is that although we could bring on unlimited appointment setters,

712
00:29:24.980 --> 00:29:33.140
we need the leaders to be able to help scale your right arm here because we need the leaders

713
00:29:33.140 --> 00:29:37.780
to help, you know, obviously lead those guys through the job, help hold them accountable.

714
00:29:37.780 --> 00:29:45.540
And do we have a lack of leaders issue where we don't recruit externally like from other

715
00:29:45.540 --> 00:29:48.540
companies to take leaders from it's not my preference.

716
00:29:48.540 --> 00:29:53.340
I like to develop them internally, but it also comes at the cost of it's very slow to

717
00:29:53.340 --> 00:29:54.340
develop leaders.

718
00:29:54.340 --> 00:29:58.260
What's the taking you get from zero to 20?

719
00:29:58.260 --> 00:29:59.580
It's been five years now.

720
00:29:59.580 --> 00:30:00.580
Okay.

721
00:30:00.580 --> 00:30:01.580
Yeah.

722
00:30:01.580 --> 00:30:07.940
And would you rather have slower growth or faster growth, yeah.

723
00:30:07.940 --> 00:30:12.420
So faster growth and dilution of culture are probably more fires for finding wrong people

724
00:30:12.420 --> 00:30:14.880
that are good leaders and then this higher underneath of them and having to lay those

725
00:30:14.880 --> 00:30:18.340
kind of branches off and then bring new people in or continue to grow on the path that

726
00:30:18.340 --> 00:30:21.380
you're currently on, which seems to be working pretty well.

727
00:30:21.380 --> 00:30:22.380
Yeah.

728
00:30:22.380 --> 00:30:25.540
I mean, just thinking out loud, I'd prefer to grow slower.

729
00:30:25.540 --> 00:30:29.020
But like I say, it would be really cool to have my cake and eat it too.

730
00:30:29.020 --> 00:30:30.020
Yeah.

731
00:30:30.020 --> 00:30:31.020
Yeah.

732
00:30:31.020 --> 00:30:32.020
Yeah.

733
00:30:32.020 --> 00:30:37.140
I guess is there an intermediary road where can I just get the best of the fast growth

734
00:30:37.140 --> 00:30:39.380
and the great culture?

735
00:30:39.380 --> 00:30:43.220
How can I guess the probably the question is how can we help grow and develop leaders

736
00:30:43.220 --> 00:30:44.460
quicker within our organization?

737
00:30:44.460 --> 00:30:47.340
So I'll bet you right now that you're probably pretty good at training sales.

738
00:30:47.340 --> 00:30:48.340
Yeah.

739
00:30:48.340 --> 00:30:49.340
Okay.

740
00:30:49.340 --> 00:30:51.460
You have to get good at training leadership.

741
00:30:51.460 --> 00:30:52.460
Okay.

742
00:30:52.460 --> 00:30:55.060
So right now you're a sales training fundamentally like you're in the business and I've

743
00:30:55.060 --> 00:30:59.140
had lots of very sales driven organizations like your business is a sales driven organization.

744
00:30:59.140 --> 00:31:02.100
You're in the recruiting, onboarding and training of sales people business and you just

745
00:31:02.100 --> 00:31:03.900
happen to sell roots, right?

746
00:31:03.900 --> 00:31:04.900
Yeah.

747
00:31:04.900 --> 00:31:06.900
And if you need a tomorrow to sell roots, you'd fucking sell roots.

748
00:31:06.900 --> 00:31:08.300
Like we've heard from companies.

749
00:31:08.300 --> 00:31:09.300
Right.

750
00:31:09.300 --> 00:31:10.300
Yeah.

751
00:31:10.300 --> 00:31:11.300
Of course.

752
00:31:11.300 --> 00:31:12.300
Couldn't leave money on the table.

753
00:31:12.300 --> 00:31:13.300
I'm kidding.

754
00:31:13.300 --> 00:31:16.140
But basically what it is is that you have really operationalized half you get someone to

755
00:31:16.140 --> 00:31:19.260
do a specific set of behaviors that increase the likelihood of someone gives you money.

756
00:31:19.260 --> 00:31:20.260
Period.

757
00:31:20.260 --> 00:31:21.260
Yeah.

758
00:31:21.260 --> 00:31:22.620
So now you need to have a different set of behaviors that you've just standardized around

759
00:31:22.620 --> 00:31:25.740
leadership that increase the like that people follow directives.

760
00:31:25.740 --> 00:31:26.740
Okay.

761
00:31:26.740 --> 00:31:31.660
One challenge I have is like I've tried to shift the culture to like put together a leadership

762
00:31:31.660 --> 00:31:35.860
development program, but I noticed that what'll happen is some of the sales people will

763
00:31:35.860 --> 00:31:39.660
start focusing on the leadership development stuff and then their sales volume goes down.

764
00:31:39.660 --> 00:31:40.660
Yeah.

765
00:31:40.660 --> 00:31:43.020
Cause they're like, I'm taking for the for the leaders.

766
00:31:43.020 --> 00:31:44.020
What was that?

767
00:31:44.020 --> 00:31:48.220
So I'll tell you this in my experience, the best leaders, especially in sales organizations

768
00:31:48.220 --> 00:31:49.820
are not the best closers.

769
00:31:49.820 --> 00:31:50.820
Yeah.

770
00:31:50.820 --> 00:31:55.420
And the best closers in every business that I own make more than the sales managers.

771
00:31:55.420 --> 00:31:56.420
Yeah.

772
00:31:56.420 --> 00:32:00.860
So if you have a killer, let them kill, let them hunt.

773
00:32:00.860 --> 00:32:05.500
It's the guys who were like three out of 10s worked really hard to get to a six or seven

774
00:32:05.500 --> 00:32:06.660
out of 10.

775
00:32:06.660 --> 00:32:10.660
Those guys I found have been exceptional sales managers and leaders.

776
00:32:10.660 --> 00:32:13.820
And so I would be trying to identify them because the thing is it's like some of the best

777
00:32:13.820 --> 00:32:18.420
basketball coaches were not the best players, but they were guys who loved basketball, loved

778
00:32:18.420 --> 00:32:20.460
their teammates, loved learning how to get better.

779
00:32:20.460 --> 00:32:23.660
So they could point out what someone else needs to do, even if they're not as good as

780
00:32:23.660 --> 00:32:25.460
it at it.

781
00:32:25.460 --> 00:32:28.420
And so you probably have a little bit of a pick up issue, which is that you might be picking

782
00:32:28.420 --> 00:32:29.420
the wrong horses.

783
00:32:29.420 --> 00:32:30.420
Cause now you're hurting yourself twice.

784
00:32:30.420 --> 00:32:33.260
You're losing a sales guy and don't have a leader, right?

785
00:32:33.260 --> 00:32:34.260
Yes.

786
00:32:34.260 --> 00:32:36.100
And so I would say leave the best sales guys alone.

787
00:32:36.100 --> 00:32:37.100
Yeah.

788
00:32:37.100 --> 00:32:38.900
And then look for the middle of the pack guys that everyone loves.

789
00:32:38.900 --> 00:32:42.260
Like you know, those guys like they're not the best closers, but like everyone loves

790
00:32:42.260 --> 00:32:43.260
them.

791
00:32:43.260 --> 00:32:45.660
They're like spiritual leaders of the team that they're on.

792
00:32:45.660 --> 00:32:48.500
Those guys are the ones that make banger sales managers.

793
00:32:48.500 --> 00:32:50.500
And this is a pattern recognition thing.

794
00:32:50.500 --> 00:32:52.700
I'm sure like you'll get it.

795
00:32:52.700 --> 00:32:53.700
Okay.

796
00:32:53.700 --> 00:32:58.700
And really because the thing is, is those guys eat up the leadership stuff and then

797
00:32:58.700 --> 00:33:01.660
basically the way that you train sales, I'm sure it's really militant.

798
00:33:01.660 --> 00:33:03.660
You train leadership the same way.

799
00:33:03.660 --> 00:33:06.420
So leadership development path is in like once a month, we do a fucking training.

800
00:33:06.420 --> 00:33:07.420
Yeah.

801
00:33:07.420 --> 00:33:08.420
No, I'm being real.

802
00:33:08.420 --> 00:33:09.420
Cause some of you guys have that.

803
00:33:09.420 --> 00:33:10.820
You're like, oh, we're pouring to our people once a month.

804
00:33:10.820 --> 00:33:12.220
We spend an hour with them.

805
00:33:12.220 --> 00:33:13.220
Yep.

806
00:33:13.220 --> 00:33:14.220
Great.

807
00:33:14.220 --> 00:33:18.100
And then when that takes, you know, 25 years for them to become a leader because they've

808
00:33:18.100 --> 00:33:21.940
forgotten between each one hour, where they just have a random Zoom call, then maybe you'll

809
00:33:21.940 --> 00:33:22.940
teach them how to lead.

810
00:33:22.940 --> 00:33:23.940
Right.

811
00:33:23.940 --> 00:33:27.900
And so you have to train it the way that you train sales, which is intense.

812
00:33:27.900 --> 00:33:32.540
Many hours, lots of shadowing, full days, like one day a week, you're with the other

813
00:33:32.540 --> 00:33:34.580
sales manager for a month or two.

814
00:33:34.580 --> 00:33:36.300
Cause the thing is, is they know what to do.

815
00:33:36.300 --> 00:33:37.580
They lose it in the howl.

816
00:33:37.580 --> 00:33:42.380
And a lot of that gets there, they obviously, you want to get as good as you can, operationalizing

817
00:33:42.380 --> 00:33:46.500
the, the smaller skills, but there's a hundred things that someone does.

818
00:33:46.500 --> 00:33:50.140
You might operationalize the 15 most important ones, but the other 85s will make a big difference.

819
00:33:50.140 --> 00:33:53.660
And so when I was like a sales leader, like running a team, I was a really good player

820
00:33:53.660 --> 00:33:54.660
coach.

821
00:33:54.660 --> 00:33:57.540
And I'd leave it from the front, just closing a shit ton of deals, but like, but you

822
00:33:57.540 --> 00:33:59.460
want a 20 million dollar business.

823
00:33:59.460 --> 00:34:00.460
Yeah.

824
00:34:00.460 --> 00:34:01.460
It's going on.

825
00:34:01.460 --> 00:34:03.420
Why can't everyone be me?

826
00:34:03.420 --> 00:34:06.740
So player coaches, if I had 20 of me, oh my God, I would have been so much, but you

827
00:34:06.740 --> 00:34:07.740
don't.

828
00:34:07.740 --> 00:34:09.340
So player coach is good or bad idea?

829
00:34:09.340 --> 00:34:10.940
I prefer.

830
00:34:10.940 --> 00:34:13.940
It depends on because you're a bigger organization, so there's a supply system in, in

831
00:34:13.940 --> 00:34:17.660
for context, the reason I like lean towards player coach sometimes is because there's shared

832
00:34:17.660 --> 00:34:21.260
risk, like mutual risk because we're going out and knocking on doors every day.

833
00:34:21.260 --> 00:34:22.260
Yeah.

834
00:34:22.260 --> 00:34:25.540
And if your sales leader isn't doing that to some extent, I mean, you could even do half

835
00:34:25.540 --> 00:34:30.700
days if you really want to, but like, if it really depends on the ratio of sales lead

836
00:34:30.700 --> 00:34:36.420
or leader to guys, I found after like six ish, it's, it's a full-time job if you really

837
00:34:36.420 --> 00:34:37.900
want them to manage the team.

838
00:34:37.900 --> 00:34:38.900
Cool.

839
00:34:38.900 --> 00:34:39.900
Okay.

840
00:34:39.900 --> 00:34:40.900
Thank you.

841
00:34:40.900 --> 00:34:42.980
Now, smaller sales teams, you've three guys, one guy's a player coach.

842
00:34:42.980 --> 00:34:45.820
You don't have the, you don't have the bandwidth to have somebody who's managing full-time.

843
00:34:45.820 --> 00:34:46.820
Beautiful.

844
00:34:46.980 --> 00:34:48.620
Hi, my name is Adam.

845
00:34:48.620 --> 00:34:52.940
I have a music lessons and recording studio in Atlanta, Georgia.

846
00:34:52.940 --> 00:34:57.820
And your, your content, you and Layla, what you, what you've done is profoundly changed

847
00:34:57.820 --> 00:35:04.300
my life because you've put me out of my comfort zone in how I think.

848
00:35:04.300 --> 00:35:10.140
And so I sell music lessons to neuro divergent kids between eight and 18.

849
00:35:10.140 --> 00:35:11.740
We have a half million dollars of revenue.

850
00:35:11.740 --> 00:35:12.740
Awesome.

851
00:35:12.740 --> 00:35:15.100
I think we could be at two million dollars of revenue.

852
00:35:15.100 --> 00:35:19.420
And what's stopping me is I've realized that the model is completely broken.

853
00:35:19.420 --> 00:35:23.060
I'm underpriced over compensating the staff.

854
00:35:23.060 --> 00:35:32.020
We're under utilizing capacity in terms of script footage, time and physical space and time.

855
00:35:32.020 --> 00:35:39.060
And so my question is, how would you apply first principles thinking to what I should

856
00:35:39.060 --> 00:35:46.620
do now, next and later to run the business that I've got as we make the transition to

857
00:35:46.620 --> 00:35:48.380
one that it becomes an asset?

858
00:35:48.380 --> 00:35:49.380
Yeah.

859
00:35:49.380 --> 00:35:53.860
So basically the core, so there's two, a chunked down version and chunked up version

860
00:35:53.860 --> 00:35:57.020
of the core economic engine that makes a business successful.

861
00:35:57.020 --> 00:36:00.900
So LTV2CAC is the most, the smallest version of that engine.

862
00:36:00.900 --> 00:36:04.820
You put some money in, you get more money out, that's the gross profit you run the entire

863
00:36:04.820 --> 00:36:08.940
business off of, at a higher level, it's returned on invested capital, right?

864
00:36:08.940 --> 00:36:11.420
So it's like, okay, that's what the core machine is.

865
00:36:11.420 --> 00:36:14.140
But then there's also equipment, there's leases, there's buildouts, there's all that stuff

866
00:36:14.140 --> 00:36:15.140
that goes into it.

867
00:36:15.140 --> 00:36:17.460
That's not typically included in LTV2CAC.

868
00:36:17.460 --> 00:36:19.820
And then how much does it cost us to build this machine again and again?

869
00:36:19.820 --> 00:36:23.260
So that's kind of how I think about it, like micro level, it's out of your cat, return

870
00:36:23.260 --> 00:36:25.660
to invested capital is what it is at the macro level.

871
00:36:25.660 --> 00:36:30.100
When you're like opening more and more locations and saying, it costs me 500,000 open to location.

872
00:36:30.100 --> 00:36:32.300
Location makes me 500,000 dollars for the first six months.

873
00:36:32.300 --> 00:36:33.300
Okay, cool.

874
00:36:33.300 --> 00:36:37.780
I've got a two on, you know, return on, on capital within a year, which is awesome, right?

875
00:36:37.780 --> 00:36:39.860
So let's back go for you.

876
00:36:39.860 --> 00:36:43.040
So the nice thing about the music business is that it's actually identical to the gym

877
00:36:43.040 --> 00:36:45.060
business, so I know a lot about it.

878
00:36:45.060 --> 00:36:52.100
And so the models that I've seen works unbelievably well have been semi private models.

879
00:36:52.100 --> 00:36:58.820
Number one, or the 30 minute, multiple times a week, much higher ticket, people, you

880
00:36:58.820 --> 00:37:02.460
know, people stay three, four, five years with music lessons with their person.

881
00:37:02.460 --> 00:37:07.900
I prefer semi private because I think you get more loyalty to the brand and it's less

882
00:37:07.900 --> 00:37:11.340
about the music teacher who can then leave and then take all of those, you know, students

883
00:37:11.340 --> 00:37:12.340
that go private.

884
00:37:12.340 --> 00:37:14.420
And so I like semi private in general.

885
00:37:14.420 --> 00:37:17.420
Also I'm sure you could sell around the idea that they get a little bit more socialized

886
00:37:17.420 --> 00:37:20.140
and it's probably good for them and all that jazz.

887
00:37:20.140 --> 00:37:26.460
And in terms of pricing, I want my gross margins to be at least 80% ideally 90.

888
00:37:26.460 --> 00:37:32.500
And so now you can do that when you're one on six, harder one on one.

889
00:37:32.500 --> 00:37:38.260
And so if, let's say you have six kids, right, in a class or four, I mean, you can, you

890
00:37:38.260 --> 00:37:43.500
can, you know, level into it, but let's say it's one on four, keep it math simple.

891
00:37:43.500 --> 00:37:49.740
And you charge $200, sorry, $50 per session times four kids is $200, you make $200 per

892
00:37:49.740 --> 00:37:50.740
session, right?

893
00:37:51.140 --> 00:37:56.860
Well, for you to pay for an hour of music teacher's time, what does that cost?

894
00:37:56.860 --> 00:38:02.860
Right now that would be $40 to $50, okay, so that's 80% right there.

895
00:38:02.860 --> 00:38:06.380
So 240, so 80% gross margins right there.

896
00:38:06.380 --> 00:38:10.460
Now if you charge 60 bucks a session, you get to 40, so then you'd be like 84, whatever

897
00:38:10.460 --> 00:38:11.460
in terms of gross margins.

898
00:38:11.460 --> 00:38:16.980
So you're above that, but that's my, that's my rule of thumb for brick and mortar service

899
00:38:16.980 --> 00:38:21.140
businesses is I want it to be over 80, ideally over 90, but I will not do a business

900
00:38:21.140 --> 00:38:24.500
if it has lower than 80% gross margins.

901
00:38:24.500 --> 00:38:29.500
Some people do, I just don't like to because you don't have enough cash to do anything.

902
00:38:29.500 --> 00:38:30.500
Right.

903
00:38:30.500 --> 00:38:33.020
And so then the question is, okay, how do we, how do we create the sales process in the

904
00:38:33.020 --> 00:38:39.340
positioning so that now you already are working with a special class of customers?

905
00:38:39.340 --> 00:38:43.020
And so I would imagine that you'd be able to probably even more easily than a traditional

906
00:38:43.020 --> 00:38:50.220
music academy selling premium price because if I'm a parent who had a neurodivergent

907
00:38:50.220 --> 00:38:54.060
kid, I would be willing to pay for a specialist.

908
00:38:54.060 --> 00:38:57.740
And so specialist prices are premium.

909
00:38:57.740 --> 00:39:00.380
So I think that would work.

910
00:39:00.380 --> 00:39:07.300
And in terms of the model, you can, I mean, it just headcount divided by teachers basically.

911
00:39:07.300 --> 00:39:11.420
But you have to get the core gross profit right in the business and then everything else

912
00:39:11.420 --> 00:39:12.660
kind of flows from there.

913
00:39:12.700 --> 00:39:16.620
I'm kind of in the same position that this guy over here was and I don't have an operator

914
00:39:16.620 --> 00:39:18.260
and so I'm kind of in that swamp too.

915
00:39:18.260 --> 00:39:20.260
And so we have to get more margin.

916
00:39:20.260 --> 00:39:22.860
Yes, you were cash flow.

917
00:39:22.860 --> 00:39:25.460
Cash flow allows everybody to breathe better.

918
00:39:25.460 --> 00:39:26.860
So okay, I guess that makes sense.

919
00:39:26.860 --> 00:39:33.820
Would raise prices and get that different sort of client funding.

920
00:39:33.820 --> 00:39:39.140
So one on four and say and just sell around the fact that it's a better experience for them

921
00:39:39.140 --> 00:39:40.940
because you don't want them to be married to a teacher.

922
00:39:40.940 --> 00:39:44.180
You want them to be married to like this is how I would sell it.

923
00:39:44.180 --> 00:39:50.820
I would say listen, Mrs. whatever, like if your child becomes really attached to a single

924
00:39:50.820 --> 00:39:54.580
teacher, then if that teacher leaves and all of a sudden this skill that they spend all

925
00:39:54.580 --> 00:39:57.420
this time on those so say with the teacher and then all of a sudden they stop playing

926
00:39:57.420 --> 00:39:58.820
violin after five years.

927
00:39:58.820 --> 00:39:59.820
You don't want that.

928
00:39:59.820 --> 00:40:00.820
I don't want that.

929
00:40:00.820 --> 00:40:05.220
What we want is to create a positive relationship with the skill so they just continue for life,

930
00:40:05.220 --> 00:40:06.220
right?

931
00:40:06.220 --> 00:40:07.220
Right.

932
00:40:07.220 --> 00:40:11.020
So let's facilitate that by having other people in the sessions and so that the teachers

933
00:40:11.020 --> 00:40:15.380
sometimes do change so that no one really goes to attached to anybody, but they really

934
00:40:15.380 --> 00:40:17.980
go attached to the craft.

935
00:40:17.980 --> 00:40:19.020
That's how I would sell it.

936
00:40:19.020 --> 00:40:21.060
Whether that's true or not, no idea.

937
00:40:21.060 --> 00:40:24.300
But that's, I don't know, yeah, but like that's how it's high, right?

938
00:40:24.300 --> 00:40:25.300
Does that make sense?

939
00:40:25.300 --> 00:40:26.300
It does.

940
00:40:26.300 --> 00:40:27.300
Yeah.

941
00:40:27.300 --> 00:40:28.300
So that would be my positioning.

942
00:40:28.300 --> 00:40:33.460
And I think if you just switch the ratio to one on four and so, okay, everybody.

943
00:40:33.460 --> 00:40:36.420
So if you are capacity constraints, so some of you guys are in that position.

944
00:40:36.420 --> 00:40:40.460
Like you, you're, you can't, you can barely handle the customers that you have right now.

945
00:40:40.460 --> 00:40:41.540
You have three solutions.

946
00:40:41.540 --> 00:40:46.380
The easiest solution is you just raise prices because if you have supply constrained, then

947
00:40:46.380 --> 00:40:49.900
that means that you have more demand than you have supply prices go up, right?

948
00:40:49.900 --> 00:40:51.420
And most people just don't do that and just suffer.

949
00:40:51.420 --> 00:40:53.460
So just raise the prices, make more money.

950
00:40:53.460 --> 00:40:54.460
That's the solution of one.

951
00:40:54.460 --> 00:40:58.020
The second solution is changed client delivery ratio to which covered.

952
00:40:58.020 --> 00:40:59.980
So instead of going one to one, you go one to four.

953
00:40:59.980 --> 00:41:01.300
So you get more out of what you already have.

954
00:41:01.300 --> 00:41:03.940
This gives you leverage and it gives you cash flow.

955
00:41:03.940 --> 00:41:05.180
Compress your growth margins.

956
00:41:05.180 --> 00:41:10.740
The third way is to bring other people in who can do what you do, which is then delegating,

957
00:41:10.740 --> 00:41:12.140
you know, the responsibility, right?

958
00:41:12.140 --> 00:41:14.780
To somebody else that that's the ultimate leverage that you don't have to do any of it.

959
00:41:14.780 --> 00:41:15.780
That makes sense.

960
00:41:15.780 --> 00:41:18.380
So there's a kind of like the three steps that I think about when I have somebody who's

961
00:41:18.380 --> 00:41:22.700
supply constrained and they don't have any time, they kick or the business and they

962
00:41:22.700 --> 00:41:25.140
get some more customers, but they need to some more customers to go to the business

963
00:41:25.140 --> 00:41:27.100
and the rock and hard place.

964
00:41:27.100 --> 00:41:30.060
And the nice thing is we start with price because it's the fastest and easiest one to do.

965
00:41:30.060 --> 00:41:31.060
You don't do anything.

966
00:41:31.060 --> 00:41:32.060
You have to change anything.

967
00:41:32.460 --> 00:41:35.500
You just say a different word and then you make one money.

968
00:41:35.500 --> 00:41:40.020
So our primary thing when we opened was it was a hundred percent private lessons.

969
00:41:40.020 --> 00:41:41.020
Yeah.

970
00:41:41.020 --> 00:41:45.180
And so that's where that's basically the only difference in the the hypothetical gym

971
00:41:45.180 --> 00:41:49.300
in gym launch, which I'd read the whole thing on the plane over here.

972
00:41:49.300 --> 00:41:51.900
You know, how I didn't know that book didn't exist until it was a good book.

973
00:41:51.900 --> 00:41:52.900
It's awesome.

974
00:41:52.900 --> 00:41:53.900
Yeah.

975
00:41:53.900 --> 00:41:57.420
But like, so what would that, what would the, you can still have one on one, you can

976
00:41:57.420 --> 00:41:58.420
still have one on one.

977
00:41:58.700 --> 00:42:01.180
I would predominantly sell somewhere private, right?

978
00:42:01.180 --> 00:42:03.980
If someone's like, well, I want the special snowflake treatment, then you're like, awesome.

979
00:42:03.980 --> 00:42:05.300
I'll give you this special snowflake price.

980
00:42:05.300 --> 00:42:06.300
Right.

981
00:42:06.300 --> 00:42:12.180
Well, how would you design the initial offer for that type of model?

982
00:42:12.180 --> 00:42:15.180
The six week beginner challenge.

983
00:42:15.180 --> 00:42:19.380
So I would have, so you know this, you would know the outcome better than I do, but it

984
00:42:19.380 --> 00:42:23.260
would be something, whatever, whatever the fast outcome that you can deliver to a kid

985
00:42:23.260 --> 00:42:26.500
who's neurodivertion who picks up a violin or whatever the instruments that you teach

986
00:42:26.500 --> 00:42:27.500
are.

987
00:42:27.500 --> 00:42:28.500
Right.

988
00:42:28.500 --> 00:42:31.940
It's like, they'll be able to play this like a song in this period of time.

989
00:42:31.940 --> 00:42:32.940
Right.

990
00:42:32.940 --> 00:42:35.940
No, it might not be good, but like they'll be able to, you know, you'll recognize it kind

991
00:42:35.940 --> 00:42:36.940
of.

992
00:42:36.940 --> 00:42:37.940
Right.

993
00:42:37.940 --> 00:42:41.300
But like, I would want some sort of discrete outcome, and that would be like an outcome.

994
00:42:41.300 --> 00:42:46.140
You could also do some sort of subjective thing, which is that like they rate X or they,

995
00:42:46.140 --> 00:42:48.700
like you could have a survey, the beginning, survey at the end, that would be kind of more

996
00:42:48.700 --> 00:42:49.700
of an interval thing.

997
00:42:49.700 --> 00:42:50.700
Got it.

998
00:42:50.700 --> 00:42:51.700
Yeah.

999
00:42:51.700 --> 00:42:55.820
Typically, you'll serve, you'll sell some sort of package upfront.

1000
00:42:56.220 --> 00:43:00.540
I'm going to guess that the price point for what you're looking at is between 602,000 is

1001
00:43:00.540 --> 00:43:03.980
what the upfront package would be, and then you'd upsell or at least let people go into

1002
00:43:03.980 --> 00:43:07.620
continuity on the back end, and it'd probably be somewhere in the event of like six weeks

1003
00:43:07.620 --> 00:43:08.620
to six months.

1004
00:43:08.620 --> 00:43:11.420
You would know that range better in terms of how long it's all for.

1005
00:43:11.420 --> 00:43:12.420
Wow.

1006
00:43:12.420 --> 00:43:13.420
Okay.

1007
00:43:13.420 --> 00:43:14.420
Yeah.

1008
00:43:14.420 --> 00:43:17.340
And the best thing that we're drowning in context, we're recording studios, kids are making

1009
00:43:17.340 --> 00:43:21.980
songs all the time, and they should be feeding the marketing, but it's just so much

1010
00:43:21.980 --> 00:43:23.260
that then there's that whole problem.

1011
00:43:23.260 --> 00:43:24.260
Yeah.

1012
00:43:24.260 --> 00:43:25.260
That's the same time.

1013
00:43:25.260 --> 00:43:29.220
Like, I think what's interesting is that like the more stressed you are, the lower, this

1014
00:43:29.220 --> 00:43:32.580
is not me, this is not a slight, just to be clear, I'm saying in general, the more stressed

1015
00:43:32.580 --> 00:43:35.100
anyone is, the lower your IQ is.

1016
00:43:35.100 --> 00:43:39.660
And so I'm saying this to say that, I got it, this isn't a unit.

1017
00:43:39.660 --> 00:43:44.900
I'm saying that the problems that you struggle with when you are stressed, when you have

1018
00:43:44.900 --> 00:43:48.820
a good night's sleep and a little bit of time, you solve in like five minutes.

1019
00:43:48.820 --> 00:43:53.380
And so if you want to increase your capacity, it's like, let's solve for capacity, and then

1020
00:43:53.380 --> 00:43:56.740
a lot of these things that are keeping you up at night, you're like, oh, we'll just

1021
00:43:56.740 --> 00:44:00.060
run a six week finger and a 12 week thing, we'll solve for this, I can see how the margins

1022
00:44:00.060 --> 00:44:01.060
work out.

1023
00:44:01.060 --> 00:44:03.700
And like, we already have more demand than we can handle, so it's okay if people say no

1024
00:44:03.700 --> 00:44:07.220
at our higher prices, because we'll make it up in profit anyways, and the people who do

1025
00:44:07.220 --> 00:44:08.220
you say yes.

1026
00:44:08.220 --> 00:44:09.220
That makes sense.

1027
00:44:09.220 --> 00:44:11.220
That wasn't a slight to be clear, I was saying for anybody.

1028
00:44:11.220 --> 00:44:12.220
It's fine.

1029
00:44:12.220 --> 00:44:13.220
Yeah, it knows.

1030
00:44:13.220 --> 00:44:14.220
It's, it's true.

1031
00:44:14.220 --> 00:44:15.220
So cool.

1032
00:44:15.220 --> 00:44:16.220
I appreciate that.

1033
00:44:16.220 --> 00:44:17.220
Yeah.

1034
00:44:17.220 --> 00:44:18.220
You bet.