WEBVTT

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And I think that was-

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Can I tell you a secret?

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Yeah.

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Very small business owners will never build a stable business because they are not

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stable.

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There's nothing to do with you.

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Okay, hello.

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How are you?

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Good.

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Sir.

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My name is Kyler.

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I sell landscape lighting and exterior lighting basically to homeowners, north of half

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a million dollars further from home.

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Hold on, too.

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I'm at 310 revenue, 310K, 142 EBITDA, and what's stopping me is I literally make all

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of that money from that lighting division, temporary lighting, so holiday lighting.

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So now I know I need to add on landscape lighting, permanent lighting to be sustainable

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all year round.

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Okay.

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I haven't started advertising for landscape lighting except for the warm outreach I've

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done to my temporary lighting customers.

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So now I need to start working on a proven acquisition channel for new customers.

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And that's what's stopping me.

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Okay.

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And it's usually like Christmas lighting type stuff?

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Yeah.

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Okay.

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When you spin it up every year, you just hire a bunch of temps and then you guys put them

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all up and then you fire everybody kind of thing.

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Unfortunately, yeah, but we also have a washing side.

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I talked to Ed about that.

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We might kill that.

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So I didn't really want to get into the weed that, but I keep a couple on that do washing

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with me.

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I see you're cleaning concrete house washing gutter cleaning.

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That's actually pretty decent business side.

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But okay, you're like I'm so in water, you know, like not a bad, not a bad gig.

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Okay.

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But you prefer the lighting business because it has higher margins and okay, yeah.

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So two potential ways to think about this.

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So one way is you look at the Halloween store, which you probably heard of and they, you

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know, they run for 90 days or two months, whatever it is, leading into Halloween and they

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every year just do more and more of it.

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And that's the model.

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Six of that and it just takes off the rest of the year.

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And so then the question becomes, how do I continue to gain access to a scalable workforce

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that is that I can basically turn on overnight and train up in a weekend to do all, you know,

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basically to deliver all these services.

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So that is not an unattractive business to be clear.

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I mean, a lot of people would love to own a business that they live to work 90 days a

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year.

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And they just, I don't think she'll, but like kind of right.

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And so the other nine months of the year for that business would be you building out the

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inroads and laying in all of the basically building out the rapid work infrastructure so

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that when people come in, it's just like, boom, this is the training or like, boom, we

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send our messages out.

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You guys have 14 days to respond.

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And you know that every year you get verbal commitments around the year from 100 people

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and you know that that translates into 20 people who are actually proficient in work.

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And so then you just work your, you're basically work backwards from the model.

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Does that make sense?

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Yeah.

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Which I don't think is necessarily a bad path.

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Like when I have something, you're like, okay, I'm making 3, 10 on 500 and I'm like,

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oh, let's do like 5 million and make 3 million.

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Like that sounds chill.

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Yeah.

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Right?

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Rather than like, how do I start another business to like give my people something to

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do in the meantime?

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So if I'm you, I would probably try and say like, and Layla has a great frame on this,

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which is when we're looking at two business decisions, there's always problems on either

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side.

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And so we ask the question, which problem would we rather solve or which problem do we

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feel like we're more equipped or more likely to solve?

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Given our current resources, skill sets, et cetera.

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And so if we're looking at this path, path wouldn't be like, do I believe it's within

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my skill set to build the network nine months a year and build the training out so that

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when people, when I send the mass blast out like we're about to go into high season, ready

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to rock and roll, I can get this percentage of people and I can get them trained up in

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a weekend and then we're off and running.

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Do I want to solve that problem?

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Or do I want to build out basically the ascension path from temporary lighting to permanent

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lighting and kind of build that whole other business?

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Okay.

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The way I asked the question seemed one sided, but like that's a real question.

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Yeah, no, it's a real question because I could spend nine months doing that, but I'm

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not going to lie.

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I think I may just get like a little bored, you know, through the rest of the nine months.

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Yeah.

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Get a dog, you know?

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Well, one of the things you can do and like, okay, so, okay.

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So I define patients as figuring out to do in the meantime, right?

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So we have to figure out something for you to do in the meantime.

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And so the question is, what can I do in the meantime that could make my core business

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money during that high season?

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Yeah.

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Well, I could probably pre-sell that season all year.

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So I did do pre-sales basically last month and we do our pre-sales just, you know, get

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cash flow and just real quick side tangent.

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Basically, I went to a permanent lighting training and the last month.

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They actually said you can lease that permanent lighting, essentially, you know, you're

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around lighting it for all y'all that don't really know.

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Yeah, you're around the lighting, but basically, you know, have that just recurring every

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single year.

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So they're leasing it basically and then if they want, they could buy it out.

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So I was thinking about upselling those customers.

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We have one year, three or five year contracts and then upselling the people that are on those

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contracts, which is you're around lighting and say, hey, do you want this thing all year?

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And it's not going to cost you the six to 10K if you don't want to pay that upfront.

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Of course, we'd like that.

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But then offer that same exact price every single year.

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I don't think it's a bad model.

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Which one did you rather do?

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I think both will work.

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Honestly, I'm leaning towards just figuring out the landscape lighting because I don't

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think it's that hard.

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Great margins to add on to the business and my long term play of making this scalable

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potentially to other markets.

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I would like a full year round business instead of just seasonal.

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So I'll say this, it's not that it's not a year round business in the first year.

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This isn't me trying to convince you.

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This is kind of everybody else to it's not that it's not a year round business.

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It's just that you do delivery for 90 days.

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Right.

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The fact that you're not working the other nine months is the problem.

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You're right.

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Because could we take 500K and make it 5 million if you worked the other 75% of year?

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Yeah.

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And kind of like creating this other business to keep yourself busy.

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Okay.

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Like, that's how I think about it.

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Like you're like, man, I work a little bit, I make 500, I make 300 grand in a quarter.

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I'm like, we'll work a lot a bit.

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Maybe make 1.2 million.

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In the next year, that's with zero changes in like current capacity.

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Yeah.

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And honestly, you answered my question.

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The same is in the room.

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Really sorry.

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I tried to ask her a question.

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She's like, I need literally 98 other data points.

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But you just do your best.

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No.

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Because that's literally the problem I run into is like, I had to pull all my advertising

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all that stuff last season because I hired on all these people.

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Have the people don't know what they're doing all the way.

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There's no time to train.

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So that makes a lot of sense.

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What will happen?

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What would happen next is like, if you went the other path, if you decide to do the temporary

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leasing thing, the demand that you'll be able to generate for temporary lighting will

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still exceed your capacity with your existing workforce on the recurring work.

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So you're going to have the problem either way.

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So which problem would you rather have?

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Okay.

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That's a you problem.

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Business wise, either model works, I would recommend not doing both.

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Yeah.

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Okay.

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Cool.

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Thank you.

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Yeah, you're up.

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Thank you.

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A little round of applause.

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Yeah.

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These are a little easy ones.

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These have been fun ones.

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All right.

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Goodness.

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Yeah.

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So my name is Christine Mattis and I sell legal services in the form of estate planning and

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helping clients with real estate matters, basically two families and there are families all

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nine at worth.

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Yeah.

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High net worth families.

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Okay.

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We did two million.

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So we've been growing 20% every year for the last five years.

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My goal is 10 million.

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What's stopping me is really it was an eye opener yesterday doing that scorecard.

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My EBITDA is terrible like zero.

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And but yet I know we want to get more like I need to do nothing for zero.

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Yeah.

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That's so much easier.

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And I know I want to get more leads, but also sales.

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So I'm trying to figure out what's the first thing you would attack when you have this

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kind of situation.

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Well, I don't understand why we weren't making money.

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Right.

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So I would probably be tackling that first.

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Okay.

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I think we're talking about all this restaurant yesterday.

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Like we need you need to fix the core model.

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Unless there's some what I'm pretty confident because I understand the business fairly well.

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Like there isn't some massive fixed costs like your cost is people.

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It's payroll.

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It's not like you have some machine that you have to pay or some massive rent that must

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get paid before you can make incremental revenue.

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And so I would probably be looking inwards first at basically home compensating people

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and how I'm pricing.

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So it's likely that so are you at capacity right now with your current team?

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They think we are.

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But I'm feeling there's more room to grow.

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Yeah.

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So you have a pricing issue.

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So you're either underpriced or overpaying or a combination of both.

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Okay.

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And so I would fix that first because then you'll fix cash flow and then that freed up

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cash flow will allow you to go or get more aggressive on the front end.

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But like for me to say, hey, let's go get more customers is probably not the solution

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right now.

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Like we have to free up cash so you can breathe.

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Yeah.

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Absolutely.

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Appreciate it.

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Thank you.

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Yeah.

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You bet.

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Oh, thank you.

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How's it going Alex?

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Money loss?

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Also Alex.

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I own a company.

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Very having the best ever because you have that name.

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That's how I wake up every day.

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I'm like, I'm called Alex.

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Like I'm having the best day.

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I sell trivia nights to bars and restaurants across the country so they'll bring us in on

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their slow night of the week and we will come every week and basically fill out their

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bar form.

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Cool.

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Currently at 1.1 million in revenue like bar launch.

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Sure.

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If you will.

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No, man.

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That's what I did.

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That's what I did for a living for two years.

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So currently 1.1 million would like to be at 10.

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What's stopping me right now is capacity, but I think really I just a couple of hires

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away from getting that.

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So my question is really more about our upsell.

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We do have an upsell that we present to bars right now, but it kind of sucks.

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Cool.

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And that our core offers to the trivia nights themselves are LTV to CAC is about 12 to

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1.

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So I like where we are there, but our upsell, I mean, people churn out after like three

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months.

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Even they do a couple trivia nights and then they dip or the bars, the bars themselves

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will use it for about three months, the upsell and then what is the upsell?

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The upsell is basically a different type of trivia night.

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It's called music mashup or that it's like a music style trivia.

253
00:10:18.120 --> 00:10:19.120
Okay.

254
00:10:19.120 --> 00:10:25.560
So my question is this right now, I'm trying to just improve the music mashup game to

255
00:10:25.560 --> 00:10:26.720
make it something better.

256
00:10:26.720 --> 00:10:27.720
Okay.

257
00:10:27.720 --> 00:10:28.720
Do I keep doing that or do I just bail?

258
00:10:28.720 --> 00:10:29.720
Okay.

259
00:10:29.720 --> 00:10:32.280
So this is, this is like super applicable to a lot of people here.

260
00:10:32.280 --> 00:10:33.280
Okay.

261
00:10:33.280 --> 00:10:37.200
So let's say this is a customer journey.

262
00:10:37.200 --> 00:10:38.200
This will be trivia.

263
00:10:38.200 --> 00:10:39.360
All right.

264
00:10:39.360 --> 00:10:43.040
So where do you sell?

265
00:10:43.040 --> 00:10:47.720
Ideally on this, on this life cycle, where do you sell?

266
00:10:47.720 --> 00:10:48.720
Where do I sell?

267
00:10:48.720 --> 00:10:50.440
It's the best time to sell.

268
00:10:50.440 --> 00:10:51.920
This is our value limit.

269
00:10:51.920 --> 00:10:54.760
At the bottom, at the pain point, right?

270
00:10:54.760 --> 00:10:55.760
Yes.

271
00:10:55.760 --> 00:10:56.760
Okay.

272
00:10:56.760 --> 00:11:00.560
So you're delivering tribune, right?

273
00:11:00.560 --> 00:11:01.560
Yes.

274
00:11:01.560 --> 00:11:07.720
We have now provided value and we're selling here, but they're already full.

275
00:11:07.720 --> 00:11:11.120
So I give the analogy of, if I go to, I go to y'all's restaurant, right, and I say

276
00:11:11.120 --> 00:11:13.880
I'm starving, right?

277
00:11:13.880 --> 00:11:14.880
And that's all right.

278
00:11:14.880 --> 00:11:15.880
I go to the restaurant.

279
00:11:15.880 --> 00:11:16.880
I say I'm starving.

280
00:11:16.880 --> 00:11:17.880
You say, would you like a steak?

281
00:11:17.880 --> 00:11:18.880
And I say, sure.

282
00:11:18.880 --> 00:11:19.880
Are you the steak?

283
00:11:19.880 --> 00:11:20.880
And you guys come back over and you're like, how was it?

284
00:11:20.880 --> 00:11:21.880
I'm like, oh my god, it was amazing.

285
00:11:21.880 --> 00:11:22.880
And you're like, awesome.

286
00:11:22.880 --> 00:11:23.880
Do you want another steak?

287
00:11:23.880 --> 00:11:24.880
Have you like, no, no, I'm good.

288
00:11:24.880 --> 00:11:25.880
Like, I'm good.

289
00:11:25.880 --> 00:11:26.880
No, you don't like the steak.

290
00:11:26.880 --> 00:11:28.880
I'm like, no, I like the steak.

291
00:11:28.880 --> 00:11:29.880
I'm, but I'm good.

292
00:11:29.880 --> 00:11:31.720
It's like, well, then why don't you have another steak?

293
00:11:31.720 --> 00:11:32.720
You're like, ah, right?

294
00:11:32.720 --> 00:11:34.120
It's really awkward, right?

295
00:11:34.120 --> 00:11:37.640
But that's actually kind of the situation a lot of business owners are in.

296
00:11:37.640 --> 00:11:42.640
And so, but after I have my steak, I might have the desire to have something sweet.

297
00:11:42.640 --> 00:11:47.560
And so now I'm full on my value vector for steak eating, but I'm empty on my value vector

298
00:11:47.560 --> 00:11:49.360
for dessert eating.

299
00:11:49.360 --> 00:11:52.960
And so then I'd be like, ah, you should try our apple cobbler, it's delicious, whatever.

300
00:11:52.960 --> 00:11:58.180
And so what we want to figure out is sometimes the point of greatest value also on another

301
00:11:58.180 --> 00:12:02.040
vector becomes the point of greatest deprivation.

302
00:12:02.040 --> 00:12:04.240
And that's why sometimes they overlap.

303
00:12:04.240 --> 00:12:05.240
Often they don't.

304
00:12:05.240 --> 00:12:08.000
And so I think it's one of the big mistakes that people make is when they time their

305
00:12:08.000 --> 00:12:09.160
upsells.

306
00:12:09.160 --> 00:12:13.360
And so for, I'll give you a B2B example and then I'll, I'll circle back at the bar.

307
00:12:13.360 --> 00:12:16.080
So if I help someone get more leads, right?

308
00:12:16.080 --> 00:12:17.960
I have now provided value.

309
00:12:17.960 --> 00:12:22.480
But now that I've provided this value, they're like, shit, now I have to work all the leads.

310
00:12:22.480 --> 00:12:26.360
And so then that creates the opportunity to sell the lead nurture services or the other

311
00:12:26.360 --> 00:12:30.480
things that they need to go with this problem that I just created by solving their first

312
00:12:30.480 --> 00:12:31.800
problem.

313
00:12:31.800 --> 00:12:33.960
And so upsell timing is one of the big mess ups.

314
00:12:33.960 --> 00:12:34.960
I think a lot of businesses.

315
00:12:35.200 --> 00:12:36.360
Back to the bars.

316
00:12:36.360 --> 00:12:38.880
So trivia nights is the core.

317
00:12:38.880 --> 00:12:43.320
So what's the, what stops you from just having basically just continue to do trivia nights

318
00:12:43.320 --> 00:12:44.320
with them?

319
00:12:44.320 --> 00:12:45.320
What do you mean?

320
00:12:45.320 --> 00:12:46.320
So you do a trivia night.

321
00:12:46.320 --> 00:12:47.640
You bring up a bunch of people on Thursday.

322
00:12:47.640 --> 00:12:49.400
Next Thursday I still want a bunch of people.

323
00:12:49.400 --> 00:12:50.400
Why don't I do trivia night?

324
00:12:50.400 --> 00:12:51.400
That is the business model.

325
00:12:51.400 --> 00:12:52.400
Everything is weekly.

326
00:12:52.400 --> 00:12:56.400
So if all will hire us and we will come in every week on that day at that time and bring

327
00:12:56.400 --> 00:12:57.400
back that crowd.

328
00:12:57.400 --> 00:12:58.400
So we develop regular sports.

329
00:12:58.400 --> 00:12:59.400
Okay.

330
00:12:59.400 --> 00:13:01.280
And that's, and that's sticky though, right?

331
00:13:01.280 --> 00:13:02.280
Yes.

332
00:13:02.280 --> 00:13:03.280
Okay.

333
00:13:04.080 --> 00:13:06.680
That was my question is whether I should just focus on doing more of that.

334
00:13:06.680 --> 00:13:07.680
Yeah.

335
00:13:07.680 --> 00:13:08.680
Okay.

336
00:13:08.680 --> 00:13:10.800
So you're like, I've got this really sticky thing that we're really good at and people

337
00:13:10.800 --> 00:13:11.800
like it.

338
00:13:11.800 --> 00:13:12.800
It's like, do that.

339
00:13:12.800 --> 00:13:13.800
Okay.

340
00:13:13.800 --> 00:13:14.800
So follow the question.

341
00:13:14.800 --> 00:13:16.040
That would be at what point.

342
00:13:16.040 --> 00:13:19.720
So let's say I just, the next however many years I just keep milk in the trivia nights

343
00:13:19.720 --> 00:13:20.720
over and over again.

344
00:13:20.720 --> 00:13:21.720
Okay.

345
00:13:21.720 --> 00:13:23.720
At what point do I even consider bringing on an upsell?

346
00:13:23.720 --> 00:13:25.520
Because right now we have no upsell.

347
00:13:25.520 --> 00:13:27.120
I don't think you necessarily need one.

348
00:13:27.120 --> 00:13:28.120
Are you running good margins?

349
00:13:28.120 --> 00:13:29.120
Yeah.

350
00:13:29.120 --> 00:13:30.120
You're fine.

351
00:13:30.120 --> 00:13:31.120
Yeah.

352
00:13:31.120 --> 00:13:32.120
25%.

353
00:13:32.120 --> 00:13:33.120
Yeah.

354
00:13:33.120 --> 00:13:34.120
Okay.

355
00:13:34.120 --> 00:13:35.120
I was like, 25.

356
00:13:35.120 --> 00:13:36.120
Okay.

357
00:13:36.120 --> 00:13:37.120
Yeah.

358
00:13:37.120 --> 00:13:38.120
Yeah.

359
00:13:38.120 --> 00:13:39.120
I think you're just in a, you're in a more situation.

360
00:13:39.120 --> 00:13:40.120
Okay.

361
00:13:40.120 --> 00:13:41.120
So how do you get bars right now?

362
00:13:41.120 --> 00:13:42.120
Primarily cold outbound.

363
00:13:42.120 --> 00:13:43.120
A lot of cold email.

364
00:13:43.120 --> 00:13:44.120
Cold call.

365
00:13:44.120 --> 00:13:46.720
Some inbound about 20% of new clients come via referral.

366
00:13:46.720 --> 00:13:47.720
Cool.

367
00:13:47.720 --> 00:13:49.640
So, and that's, I can understand that because they're not trying to refer to the bar down

368
00:13:49.640 --> 00:13:52.000
the street because it's like, yeah, I get it.

369
00:13:52.000 --> 00:13:53.800
So we had some of the issues with Jim much.

370
00:13:53.800 --> 00:13:55.400
They only refer somebody as like out of state.

371
00:13:55.400 --> 00:13:56.400
Yeah.

372
00:13:56.400 --> 00:13:57.400
That's pretty much right.

373
00:13:57.400 --> 00:13:58.400
I get it.

374
00:13:58.400 --> 00:14:01.640
How many outbound actions are you taking per day to generate your sales velocity?

375
00:14:01.640 --> 00:14:06.440
One sales guy full time and he'll make about 100 sales calls, cold calls per day.

376
00:14:06.440 --> 00:14:07.440
Yeah.

377
00:14:07.440 --> 00:14:11.080
So, I mean, that guy should probably rip like 300, but just as a baseline.

378
00:14:11.080 --> 00:14:15.720
But I think hiring like three more guys and having all those guys do 300 a day would probably

379
00:14:15.720 --> 00:14:17.560
get you a bunch of sales.

380
00:14:17.560 --> 00:14:22.240
As long as the biggest thing that I would want to solve if I'm you is, how do I make

381
00:14:22.240 --> 00:14:24.960
sure that bars that do trivia and I just keep doing trivia night with me?

382
00:14:24.960 --> 00:14:25.960
Yeah.

383
00:14:25.960 --> 00:14:30.320
If that's not a problem and they are just all continually doing that, then you have solved

384
00:14:30.320 --> 00:14:33.440
the hardest problem in business, which is that you have revenue retention.

385
00:14:33.440 --> 00:14:34.440
So we just don't need to be fancy.

386
00:14:34.440 --> 00:14:36.240
We just need to do a shitload more of it.

387
00:14:36.240 --> 00:14:37.240
Cool.

388
00:14:37.240 --> 00:14:38.240
Thank you.

389
00:14:38.240 --> 00:14:39.240
Rock and roll.

390
00:14:39.240 --> 00:14:40.240
Yes, ma'am.

391
00:14:40.240 --> 00:14:41.240
Hi.

392
00:14:41.240 --> 00:14:43.240
My name is Zara Motoykyol.

393
00:14:43.240 --> 00:14:44.240
Hi, Zara.

394
00:14:44.240 --> 00:14:45.240
Zara.

395
00:14:45.240 --> 00:14:46.240
Zara.

396
00:14:46.240 --> 00:14:47.240
Nice to meet you.

397
00:14:47.240 --> 00:14:48.240
Nice to meet you.

398
00:14:48.240 --> 00:14:50.520
I saw kitchens and bathrooms to residential homeowners.

399
00:14:50.520 --> 00:14:51.520
Right.

400
00:14:51.520 --> 00:14:52.520
I would.

401
00:14:52.520 --> 00:14:58.320
Our revenue is about 320, but like to be at 1 million.

402
00:14:58.320 --> 00:15:04.400
The problem we're having is we have a sister company that is commercial real estate development

403
00:15:04.400 --> 00:15:08.240
that is taking the money from the construction.

404
00:15:08.240 --> 00:15:14.480
It's my father's interest to keep that the real estate I want to focus on the commercial

405
00:15:14.480 --> 00:15:15.480
or the construction.

406
00:15:15.480 --> 00:15:16.480
Who founded this business?

407
00:15:16.480 --> 00:15:17.480
My father.

408
00:15:17.480 --> 00:15:18.480
Both.

409
00:15:18.480 --> 00:15:19.480
So you founded both of them.

410
00:15:19.480 --> 00:15:20.480
Yes.

411
00:15:20.480 --> 00:15:21.480
So it's family business.

412
00:15:21.480 --> 00:15:22.480
Family.

413
00:15:22.480 --> 00:15:23.480
You father here?

414
00:15:23.480 --> 00:15:24.480
No.

415
00:15:24.480 --> 00:15:25.480
Okay.

416
00:15:25.480 --> 00:15:26.480
Mm.

417
00:15:26.480 --> 00:15:27.480
All right.

418
00:15:28.120 --> 00:15:29.920
I want to focus on the construction.

419
00:15:29.920 --> 00:15:32.680
We are partners with Home Depot for three of their stores.

420
00:15:32.680 --> 00:15:37.480
I was told try to like do more with Home Depot get more stores.

421
00:15:37.480 --> 00:15:43.160
But we do have all those leaks in the real estate like properties aren't selling.

422
00:15:43.160 --> 00:15:45.480
Properties aren't being rented to the max.

423
00:15:45.480 --> 00:15:48.640
All these bills and they take the construction money.

424
00:15:48.640 --> 00:15:49.640
So I was.

425
00:15:49.640 --> 00:15:51.640
So you have one business that makes you money and another business that loses money.

426
00:15:51.640 --> 00:15:52.640
Yeah.

427
00:15:52.640 --> 00:15:53.640
Okay.

428
00:15:53.640 --> 00:15:54.640
And we're kind of stuck in the.

429
00:15:54.640 --> 00:15:57.160
You stuck?

430
00:15:57.160 --> 00:15:58.680
It's like a fight with my dad.

431
00:15:58.680 --> 00:15:59.680
Yeah.

432
00:15:59.680 --> 00:16:00.680
Yeah.

433
00:16:00.680 --> 00:16:01.680
So I tell him relax.

434
00:16:01.680 --> 00:16:02.680
Take a chill.

435
00:16:02.680 --> 00:16:03.680
Let's do the construction.

436
00:16:03.680 --> 00:16:08.800
But he's like real estate is what makes you rich and I like know that's like.

437
00:16:08.800 --> 00:16:12.640
You save and you invest with real estate, but that's not a business.

438
00:16:12.640 --> 00:16:17.040
And that's where we have different opinions.

439
00:16:17.040 --> 00:16:20.240
So that's where we're trying to plug in the holes and.

440
00:16:20.240 --> 00:16:24.800
I want to just give you this, which is that your father's logic is sound.

441
00:16:24.800 --> 00:16:27.600
The practicality of it tends to be different in reality.

442
00:16:27.600 --> 00:16:31.840
And so the vast majority, this is super, I would say it's more common than it's uncommon.

443
00:16:31.840 --> 00:16:35.240
Is that people who get into construction and make some money and they're like, Oh, I'll

444
00:16:35.240 --> 00:16:38.920
just start also doing construction and real estate and then I'll start flipping thing.

445
00:16:38.920 --> 00:16:42.080
And then all of a sudden they've got like four businesses that are kind of real estate

446
00:16:42.080 --> 00:16:43.080
adjacent.

447
00:16:43.080 --> 00:16:44.080
And they're like, well, it's actually an ecosystem.

448
00:16:44.080 --> 00:16:50.480
And you're like, God, anyways, real quick guys, I have a special, special gift for you

449
00:16:50.480 --> 00:16:53.280
for being loyal listeners of the podcast.

450
00:16:53.280 --> 00:16:58.800
Laila and I spent probably an entire quarter putting together our scaling roadmap.

451
00:16:58.800 --> 00:17:04.360
It's breaking scaling into 10 stages and across all eight functions of the business.

452
00:17:04.360 --> 00:17:07.480
You've got marketing, you've got sales, you've got product, you got customer success,

453
00:17:07.480 --> 00:17:10.760
you've got IT, you've got recruiting, you've got HR, you've got finance.

454
00:17:10.760 --> 00:17:14.200
And we show the problems that emerged at every level of scale and how to graduate to

455
00:17:14.200 --> 00:17:15.200
the next level.

456
00:17:15.200 --> 00:17:20.080
It's all free and you can get it personalized to you since about 30-ish pages for each

457
00:17:20.080 --> 00:17:21.080
of the stages.

458
00:17:21.080 --> 00:17:24.960
Once you answer the questions, it will tell you exactly where you're at and what you need

459
00:17:24.960 --> 00:17:25.960
to do to grow.

460
00:17:25.960 --> 00:17:30.160
It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the

461
00:17:30.160 --> 00:17:33.080
part that's relevant to you, which will probably be about 90 minutes.

462
00:17:33.080 --> 00:17:37.280
And so if that's at all interesting, you can go to acquisition.com forward slash roadmap,

463
00:17:37.280 --> 00:17:41.880
R-O-A-D map, roadmap.

464
00:17:41.880 --> 00:17:45.680
So I think let's say you're on stage here.

465
00:17:45.680 --> 00:17:46.680
What do you tell you?

466
00:17:46.680 --> 00:17:47.680
What do you tell you?

467
00:17:47.680 --> 00:17:48.680
What do you tell you?

468
00:17:48.720 --> 00:17:50.040
What do you tell me?

469
00:17:50.040 --> 00:17:52.640
I want to focus on construction.

470
00:17:52.640 --> 00:17:54.920
I like to focus on one thing.

471
00:17:54.920 --> 00:17:59.880
I don't like doing multiple and it just gets to the fight.

472
00:17:59.880 --> 00:18:01.360
Yeah?

473
00:18:01.360 --> 00:18:02.520
You know what to do.

474
00:18:02.520 --> 00:18:03.680
Yeah.

475
00:18:03.680 --> 00:18:06.160
So I think you have, so let's get real for a second.

476
00:18:06.160 --> 00:18:10.200
So you have a question of what you want to do in your life.

477
00:18:10.200 --> 00:18:14.680
So you can continue to work in your father's business.

478
00:18:14.680 --> 00:18:16.280
So you have basically three paths.

479
00:18:16.280 --> 00:18:17.280
One is stomach it.

480
00:18:17.280 --> 00:18:18.640
I think your dad's going to change his mind.

481
00:18:18.640 --> 00:18:20.120
How old is he?

482
00:18:20.120 --> 00:18:21.840
I'm waiting like five years for him to retire.

483
00:18:21.840 --> 00:18:24.120
He's 56.

484
00:18:24.120 --> 00:18:24.920
Yeah.

485
00:18:24.920 --> 00:18:27.360
Because he tells me he's like, I'm going to give you like five years.

486
00:18:27.360 --> 00:18:29.680
And then he tries pushing you to like 10 years a little bit.

487
00:18:29.680 --> 00:18:30.680
Yeah.

488
00:18:30.680 --> 00:18:32.120
I think it'll be five years away for the next 50 years.

489
00:18:32.120 --> 00:18:35.000
And I tell him, I'm like, I'm going to take over.

490
00:18:35.000 --> 00:18:36.720
It's me and my sister.

491
00:18:36.720 --> 00:18:40.040
And hopefully my husband comes back as he gets them out.

492
00:18:40.040 --> 00:18:41.560
There we go.

493
00:18:41.560 --> 00:18:43.240
Like, it's a whole family affair.

494
00:18:43.240 --> 00:18:43.960
Yeah, it's crazy.

495
00:18:43.960 --> 00:18:45.600
OK, Zian's so juicy.

496
00:18:45.600 --> 00:18:46.680
Yeah, it's crazy.

497
00:18:46.680 --> 00:18:48.920
So this is one where there's high drama, very simple solutions.

498
00:18:48.920 --> 00:18:50.160
Sure.

499
00:18:50.160 --> 00:18:52.720
Other ones, we have like no drama and very complex solutions.

500
00:18:52.720 --> 00:18:55.400
These are what I tell him like, I'm going to take over.

501
00:18:55.400 --> 00:18:58.080
You should focus on what I want.

502
00:18:58.080 --> 00:19:02.240
And it's kind of just like repeating that into him.

503
00:19:02.240 --> 00:19:05.000
Wait for your dad to retire in five years.

504
00:19:10.520 --> 00:19:13.480
Know that it's not going to be five years.

505
00:19:13.480 --> 00:19:17.640
Or I'm leaving.

506
00:19:17.640 --> 00:19:18.840
That's what you start with.

507
00:19:18.840 --> 00:19:20.080
Yeah.

508
00:19:20.080 --> 00:19:22.120
And under these terms, I'll say.

509
00:19:22.120 --> 00:19:23.840
I feel like I've done the third.

510
00:19:23.840 --> 00:19:27.160
And that's why I'm here.

511
00:19:27.160 --> 00:19:27.920
But do you believe that?

512
00:19:27.920 --> 00:19:29.160
But you just said he's moving them.

513
00:19:29.160 --> 00:19:30.720
He's pushing them back.

514
00:19:30.720 --> 00:19:33.240
We find, but I tell him I'm the boss.

515
00:19:33.240 --> 00:19:33.760
Yeah.

516
00:19:33.760 --> 00:19:35.600
It's very, and he listens.

517
00:19:35.600 --> 00:19:36.400
But it's a fight.

518
00:19:36.400 --> 00:19:37.600
Like, it's fight.

519
00:19:37.600 --> 00:19:39.640
But did you sign something?

520
00:19:39.640 --> 00:19:41.240
Sign what?

521
00:19:41.240 --> 00:19:42.720
That agreement?

522
00:19:42.720 --> 00:19:43.760
No.

523
00:19:43.760 --> 00:19:45.160
I put it in paper.

524
00:19:45.160 --> 00:19:47.320
And I know this sounds wild, because it's like it's family.

525
00:19:47.320 --> 00:19:50.120
The thing is, is that I don't think he's

526
00:19:50.120 --> 00:19:51.640
going to take you seriously.

527
00:19:51.640 --> 00:19:53.480
You're his baby girl, right?

528
00:19:53.480 --> 00:19:54.840
And this is big gruff construction.

529
00:19:54.840 --> 00:19:55.960
They're going to take advantage of you.

530
00:19:55.960 --> 00:19:56.480
You don't know.

531
00:19:56.480 --> 00:19:58.280
I've been doing this longer than you.

532
00:19:58.280 --> 00:19:58.800
Right.

533
00:19:58.800 --> 00:20:00.320
And you're like, and in the short time that I've done it,

534
00:20:00.320 --> 00:20:02.720
I've made more.

535
00:20:02.720 --> 00:20:05.320
So my income for unit times, actually,

536
00:20:05.320 --> 00:20:06.560
I have a narcissist.

537
00:20:06.560 --> 00:20:08.520
You don't even say that, I'll hate you.

538
00:20:08.560 --> 00:20:11.440
But honestly, you have life choices right now.

539
00:20:11.440 --> 00:20:13.760
The business decision is actually easy.

540
00:20:13.760 --> 00:20:15.720
You know the construction business is what you should be doing.

541
00:20:15.720 --> 00:20:17.080
Stick to the one that you have really good margins

542
00:20:17.080 --> 00:20:18.920
and you have all these growth opportunities

543
00:20:18.920 --> 00:20:20.200
that are sitting in front of you.

544
00:20:20.200 --> 00:20:22.760
And you have, you're throwing good money after bad.

545
00:20:22.760 --> 00:20:24.400
By that's like a pretty standard thing

546
00:20:24.400 --> 00:20:26.400
that happens in the entrepreneurial journey.

547
00:20:26.400 --> 00:20:28.120
But you just have that choice to make.

548
00:20:28.120 --> 00:20:30.240
Now, if you're like, well, I already did three,

549
00:20:30.240 --> 00:20:32.800
it's like, then you didn't do it right.

550
00:20:32.800 --> 00:20:35.480
And so fundamentally, he doesn't believe you.

551
00:20:35.480 --> 00:20:37.800
Now, there is a world where he will just never

552
00:20:37.800 --> 00:20:39.800
relinquish power.

553
00:20:39.800 --> 00:20:40.800
And then you've got to figure out

554
00:20:40.800 --> 00:20:43.160
what you want to do with your life.

555
00:20:43.160 --> 00:20:44.760
Yeah.

556
00:20:44.760 --> 00:20:46.360
I'm going to hope for three.

557
00:20:46.360 --> 00:20:47.840
And then we'll see how.

558
00:20:47.840 --> 00:20:50.240
But you have to, you've got to take it seriously though.

559
00:20:50.240 --> 00:20:51.600
So here's how I would do it.

560
00:20:51.600 --> 00:20:52.640
It's how I do it.

561
00:20:52.640 --> 00:20:54.720
I want to buy the business from you.

562
00:20:54.720 --> 00:20:56.960
Because you saying, wait until you retire.

563
00:20:56.960 --> 00:20:58.200
It's like, what am I going to do with my time?

564
00:20:58.200 --> 00:21:00.080
And you're like, I've got to do something.

565
00:21:00.080 --> 00:21:00.880
Right.

566
00:21:00.880 --> 00:21:03.560
So it's like, I'm going to buy the business from you.

567
00:21:03.560 --> 00:21:05.320
Effective today.

568
00:21:05.320 --> 00:21:08.120
And I will pay you over the next five years.

569
00:21:08.120 --> 00:21:11.640
Then you have a clear date or three years, whatever.

570
00:21:11.640 --> 00:21:13.080
And then you work essentially for free.

571
00:21:13.080 --> 00:21:14.840
And then you take the profit that you would, you know,

572
00:21:14.840 --> 00:21:17.920
you agree on a price and you start paying it.

573
00:21:17.920 --> 00:21:19.120
Like, you have to have an agreement.

574
00:21:19.120 --> 00:21:21.840
And you have to send money has to change hands.

575
00:21:21.840 --> 00:21:23.000
Either way, it's going to have to change hands.

576
00:21:23.000 --> 00:21:24.640
Otherwise, you're going to have a tax event regardless

577
00:21:24.640 --> 00:21:25.600
when he gives you a business.

578
00:21:25.600 --> 00:21:26.560
So you might as well do it now.

579
00:21:26.560 --> 00:21:28.880
You've got to be a state attorney, right?

580
00:21:28.880 --> 00:21:30.800
Like, there's a way to do this in a tax-efficient manner.

581
00:21:30.800 --> 00:21:32.360
But if he is going to transition the business to you,

582
00:21:32.360 --> 00:21:34.120
which I'm sure he does want to do,

583
00:21:34.120 --> 00:21:35.240
then we need to put a clock on it

584
00:21:35.240 --> 00:21:37.360
when you start making payments towards it.

585
00:21:37.360 --> 00:21:38.680
That's how three actually works.

586
00:21:38.680 --> 00:21:41.160
If it's just like, hey, I'm the boss now.

587
00:21:41.160 --> 00:21:42.640
It's like, you're just going to keep doing this loop

588
00:21:42.640 --> 00:21:44.720
for the next 20 years.

589
00:21:44.720 --> 00:21:45.240
OK.

590
00:21:45.240 --> 00:21:46.800
And you seem like a very kind person.

591
00:21:46.800 --> 00:21:49.520
And so I need you to put your, take your teeth out

592
00:21:49.520 --> 00:21:50.360
a little bit.

593
00:21:50.360 --> 00:21:51.680
That's when my sister is here.

594
00:21:51.680 --> 00:21:52.200
Yeah.

595
00:21:52.200 --> 00:21:52.720
She's here.

596
00:21:52.720 --> 00:21:53.240
She's here.

597
00:21:53.240 --> 00:21:54.800
And I'm like, she's here.

598
00:21:54.800 --> 00:21:55.560
No, she's not.

599
00:21:55.560 --> 00:21:58.880
So the day the deal I made with him,

600
00:21:58.880 --> 00:22:02.640
why I wanted to come here was to invest in the construction.

601
00:22:02.640 --> 00:22:04.240
And he said, OK, you go.

602
00:22:04.240 --> 00:22:05.080
You pay for it.

603
00:22:05.080 --> 00:22:06.880
If it works, I'll give you your money back.

604
00:22:06.880 --> 00:22:08.520
So that's what I'm hoping like.

605
00:22:08.520 --> 00:22:11.120
OK, I mean, let's say you can do this for them.

606
00:22:11.120 --> 00:22:14.600
Yeah, I don't want to do the real estate, yeah.

607
00:22:14.600 --> 00:22:15.440
But this is it.

608
00:22:15.440 --> 00:22:17.360
There's really no more to go over on this one.

609
00:22:17.360 --> 00:22:18.560
So do the paperwork.

610
00:22:18.560 --> 00:22:19.240
This is the deal.

611
00:22:19.240 --> 00:22:22.040
Agree on a price, and then agree on the terms,

612
00:22:22.040 --> 00:22:23.680
and then start the clock.

613
00:22:23.680 --> 00:22:25.640
And if he says no, then you'll actually be able to see it.

614
00:22:25.640 --> 00:22:28.800
This is like, I'll give you a totally different example.

615
00:22:28.800 --> 00:22:31.600
Girl dates guy, guy promises to marry a girl.

616
00:22:31.600 --> 00:22:33.080
Girl asks for engagement ring.

617
00:22:33.080 --> 00:22:37.040
He says, I'll give you a promise ring.

618
00:22:37.040 --> 00:22:39.760
Wait, when are we getting married?

619
00:22:39.760 --> 00:22:40.560
Don't worry.

620
00:22:40.560 --> 00:22:43.720
I got to close up some things at work first two years past.

621
00:22:43.720 --> 00:22:44.960
When are we getting married?

622
00:22:44.960 --> 00:22:46.800
He's never going to marry.

623
00:22:46.800 --> 00:22:50.520
And so you just have to, there's a decision

624
00:22:50.520 --> 00:22:51.520
that has to get made.

625
00:22:51.520 --> 00:22:55.000
And so if you want to use this quote you can, which is decision

626
00:22:55.000 --> 00:22:56.680
comes from the Latin root of decadera, which

627
00:22:56.680 --> 00:22:59.120
means to cut off, which means that we have to cut off

628
00:22:59.120 --> 00:23:00.360
one of these paths.

629
00:23:00.360 --> 00:23:02.400
Otherwise you have made a decision.

630
00:23:02.400 --> 00:23:04.680
I define commitment as the elimination of alternatives.

631
00:23:04.680 --> 00:23:06.000
Right now you have three alternatives.

632
00:23:06.000 --> 00:23:06.960
You have to eliminate two.

633
00:23:10.120 --> 00:23:11.120
Cool.

634
00:23:11.120 --> 00:23:11.960
Thank you.

635
00:23:11.960 --> 00:23:12.800
Thank you.

636
00:23:12.800 --> 00:23:13.800
Thank you.

637
00:23:17.640 --> 00:23:18.720
Hey, Alex, hello sir.

638
00:23:18.720 --> 00:23:20.080
My name's Adam Howard.

639
00:23:20.080 --> 00:23:22.640
We sell health insurance, life insurance, retirement

640
00:23:22.640 --> 00:23:25.560
planning to a middle income Americans.

641
00:23:25.560 --> 00:23:28.280
We currently have about four million in top line.

642
00:23:28.280 --> 00:23:29.960
Want to be about 10 million here.

643
00:23:29.960 --> 00:23:31.560
I think we can do it in two years.

644
00:23:31.560 --> 00:23:33.600
Our constraint is we've got two locations.

645
00:23:33.600 --> 00:23:34.200
Brick and mortar.

646
00:23:34.200 --> 00:23:38.760
We have a DMA about 90 miles from our Brick and mortar.

647
00:23:38.760 --> 00:23:40.880
We're at max capacity at this point.

648
00:23:40.880 --> 00:23:43.200
And so we need to, you know, we're

649
00:23:43.200 --> 00:23:46.080
looking to bring another location outside of this DMA, right?

650
00:23:46.080 --> 00:23:48.040
And so how do we efficiently, as we're thinking

651
00:23:48.040 --> 00:23:50.600
through the strategy, find good talent

652
00:23:50.600 --> 00:23:52.720
that we can eventually groom into leadership

653
00:23:52.760 --> 00:23:57.160
to lead that office and then do so cash flowing

654
00:23:57.160 --> 00:23:58.240
as quickly as we can.

655
00:23:58.240 --> 00:24:00.480
Because one of the challenges is taking somebody

656
00:24:00.480 --> 00:24:03.920
from unlicensed to licensed to learning the business,

657
00:24:03.920 --> 00:24:06.120
to we have a six month sale cycle as it is

658
00:24:06.120 --> 00:24:09.640
once we start marketing, how do we do that

659
00:24:09.640 --> 00:24:11.600
as efficiently as possible?

660
00:24:11.600 --> 00:24:14.560
What stops you from taking one person

661
00:24:14.560 --> 00:24:17.760
from your current locations and giving them the opportunity

662
00:24:17.760 --> 00:24:19.800
to own a small chunk of that one?

663
00:24:19.800 --> 00:24:22.000
Yeah, we've thought about doing that.

664
00:24:22.000 --> 00:24:23.160
And then the thought process is there

665
00:24:23.160 --> 00:24:25.520
where we kind of disrupt the flow of that existing office.

666
00:24:25.520 --> 00:24:26.840
How many guys are in each office?

667
00:24:26.840 --> 00:24:27.520
They're small.

668
00:24:27.520 --> 00:24:30.240
So our west, west office is two people.

669
00:24:30.240 --> 00:24:32.480
And then we've got five in our, in our home office.

670
00:24:32.480 --> 00:24:35.000
Okay, you think you can take one of the five?

671
00:24:35.000 --> 00:24:36.440
No, not, no, I don't.

672
00:24:36.440 --> 00:24:37.280
I don't think so.

673
00:24:37.280 --> 00:24:39.440
Okay, no.

674
00:24:39.440 --> 00:24:42.000
Well, which problem would you rather have?

675
00:24:42.000 --> 00:24:45.440
So either you can take your five location

676
00:24:45.440 --> 00:24:47.000
and bring it down to four.

677
00:24:47.000 --> 00:24:49.200
And then backfill within that location

678
00:24:49.200 --> 00:24:51.440
that's already cash flowing positive has the culture there

679
00:24:51.440 --> 00:24:53.120
and bring somebody else in.

680
00:24:53.120 --> 00:24:55.600
Or do you think it'll be harder to get somebody

681
00:24:55.600 --> 00:24:57.640
who's brand new, not surrounded by anyone

682
00:24:57.640 --> 00:24:58.560
to get up to speak?

683
00:24:59.680 --> 00:25:00.840
It's a great question.

684
00:25:00.840 --> 00:25:02.400
I don't know without testing it.

685
00:25:02.400 --> 00:25:04.120
And I know that, you know, both have risks.

686
00:25:04.120 --> 00:25:06.040
And, you know, we might, you know,

687
00:25:06.040 --> 00:25:07.040
you're really interested.

688
00:25:07.040 --> 00:25:07.880
Yeah, exactly.

689
00:25:07.880 --> 00:25:09.640
So I'm always thinking about how do we mitigate the risk?

690
00:25:09.640 --> 00:25:10.640
And how do we?

691
00:25:10.640 --> 00:25:14.360
So I'm leading you where I, where I,

692
00:25:14.360 --> 00:25:17.920
I think that it is lower risk to take one of the five

693
00:25:17.920 --> 00:25:19.760
and bring them over to the other location

694
00:25:19.760 --> 00:25:21.680
and have them seed that with all the values

695
00:25:21.680 --> 00:25:23.000
and the culture that you know,

696
00:25:23.000 --> 00:25:24.480
they already know how to run the business.

697
00:25:24.480 --> 00:25:26.360
And so now you only have one new variable,

698
00:25:26.360 --> 00:25:27.560
which is the location.

699
00:25:27.560 --> 00:25:28.840
Do you know the guy's good?

700
00:25:28.840 --> 00:25:30.320
You know he's gonna do your values

701
00:25:30.320 --> 00:25:31.560
and then you can spend that location up.

702
00:25:31.560 --> 00:25:34.480
And then the location that you have that is your mothership,

703
00:25:34.480 --> 00:25:36.280
it can take a little bit of a dip, right?

704
00:25:36.280 --> 00:25:37.840
If it needs to, because it can weather that,

705
00:25:37.840 --> 00:25:39.560
you've got cash flow, you've got existing contracts,

706
00:25:39.560 --> 00:25:42.120
you've got premiums that are coming in.

707
00:25:42.120 --> 00:25:46.080
If you do new guy, new location, everything's new

708
00:25:46.080 --> 00:25:48.240
and you're not sure is it the market that's bad,

709
00:25:48.240 --> 00:25:50.600
is it this guy who's bad, maybe he's good,

710
00:25:50.600 --> 00:25:51.720
but he's not a culture fit.

711
00:25:51.720 --> 00:25:53.320
And now I got to turn the whole location over

712
00:25:53.320 --> 00:25:54.880
because he ends up hiring two other people

713
00:25:54.880 --> 00:25:56.920
or eight of them that also aren't culture fits.

714
00:25:56.920 --> 00:25:59.640
So like to me, it's a pretty straight,

715
00:25:59.640 --> 00:26:03.200
like I think the risk on going from five to four,

716
00:26:03.200 --> 00:26:04.920
taking one of the best guys,

717
00:26:04.920 --> 00:26:07.360
given the opportunity for his career to advance,

718
00:26:07.360 --> 00:26:09.400
which also paints a picture for everyone else

719
00:26:09.400 --> 00:26:12.240
in the organization that, hey, you do a great job.

720
00:26:12.240 --> 00:26:14.760
You might have your own office frequently.

721
00:26:14.760 --> 00:26:16.040
I think that's a really good story.

722
00:26:16.040 --> 00:26:18.080
And you're in the talent business.

723
00:26:18.080 --> 00:26:19.920
It's hard to find good guys, right?

724
00:26:19.920 --> 00:26:20.760
For sure.

725
00:26:20.760 --> 00:26:21.600
I own an insurance company.

726
00:26:21.600 --> 00:26:22.520
So I get it.

727
00:26:23.440 --> 00:26:25.000
Question for you to follow up on that then.

728
00:26:25.000 --> 00:26:27.800
So to efficiently scale that quicker

729
00:26:27.800 --> 00:26:30.120
and continue to duplicate that then,

730
00:26:30.120 --> 00:26:32.200
it's thought about that as a model for it.

731
00:26:32.200 --> 00:26:33.960
So then, but it's kind of slower.

732
00:26:33.960 --> 00:26:35.480
We got to build this up, find a guy from here

733
00:26:35.480 --> 00:26:37.560
and then move him here, right, guy or guy from here.

734
00:26:37.560 --> 00:26:39.280
Or how do we eventually across state lines?

735
00:26:39.280 --> 00:26:41.800
Now find somebody that's two states over,

736
00:26:41.800 --> 00:26:43.640
you got somebody's like, I don't want to move two states over.

737
00:26:43.640 --> 00:26:46.400
Maybe they do because the upside's so good.

738
00:26:47.240 --> 00:26:48.240
So it's opportunity.

739
00:26:49.280 --> 00:26:50.440
Pretty good enough opportunity.

740
00:26:50.440 --> 00:26:51.280
Yeah.

741
00:26:51.280 --> 00:26:52.560
And this is career path thing.

742
00:26:52.560 --> 00:26:54.920
I think it's actually really good for the business.

743
00:26:54.920 --> 00:26:56.800
Because people do eventually they build a big enough book

744
00:26:56.800 --> 00:26:58.520
a bit, you know, I'm thinking about hanging my own shingle.

745
00:26:58.520 --> 00:27:00.920
It's like, cool, let me just take care of that for you.

746
00:27:00.920 --> 00:27:03.000
Hang your own shingle, but under our bigger flag

747
00:27:03.000 --> 00:27:04.160
and you get all of our systems, all right?

748
00:27:04.160 --> 00:27:05.880
If you're structural or our support,

749
00:27:05.880 --> 00:27:07.520
our lead generation, everything that's in that area

750
00:27:07.520 --> 00:27:08.560
will just immediately send to you.

751
00:27:08.560 --> 00:27:10.560
You'll hit the ground running.

752
00:27:10.560 --> 00:27:12.400
So from initial onboarding, having a good process

753
00:27:12.400 --> 00:27:15.280
that's thought out from A to Z, hey, if you get to this point,

754
00:27:15.280 --> 00:27:16.560
this is an opportunity.

755
00:27:16.560 --> 00:27:19.120
Yeah, and I think that paints a really compelling picture.

756
00:27:19.120 --> 00:27:19.960
Yeah.

757
00:27:19.960 --> 00:27:21.240
That's what I would do.

758
00:27:21.240 --> 00:27:24.080
I also would just, this is for everybody.

759
00:27:24.080 --> 00:27:27.400
A lot of the problems that you have are based on timeline,

760
00:27:27.400 --> 00:27:30.360
which is just like an arbitrary line in the sand

761
00:27:30.360 --> 00:27:32.600
that is like, I must get to this point by this, you know,

762
00:27:32.600 --> 00:27:35.520
by this day, which is basically irrelevant and just made up.

763
00:27:35.520 --> 00:27:37.680
And so I think at the end of the day,

764
00:27:37.680 --> 00:27:39.720
if you thought, well, what would it take to make this,

765
00:27:39.720 --> 00:27:42.640
you know, insurance company, one of the biggest in the US

766
00:27:42.640 --> 00:27:46.320
in 20 years, you'd probably grow very strategically off

767
00:27:46.320 --> 00:27:48.680
of this culture that has worked really, really well

768
00:27:48.680 --> 00:27:51.720
and trying to seed each location with the best seeds

769
00:27:51.720 --> 00:27:52.560
from the ones before.

770
00:27:52.560 --> 00:27:55.080
So you just keep those values kind of all the way through.

771
00:27:55.080 --> 00:27:57.880
So I think that's the much lower risk that.

772
00:27:57.880 --> 00:27:58.720
Appreciate it.

773
00:27:58.720 --> 00:27:59.560
Thank you.

774
00:27:59.560 --> 00:28:00.400
100%.

775
00:28:04.400 --> 00:28:05.360
Hi, Ian.

776
00:28:05.360 --> 00:28:06.200
Yes.

777
00:28:06.200 --> 00:28:07.040
My name is...

778
00:28:07.040 --> 00:28:09.280
Seller, Ukraine, number one seller in all Ukraine spends

779
00:28:09.280 --> 00:28:10.120
lots of money on ads.

780
00:28:10.120 --> 00:28:13.320
So you're going to Poland and you haven't been able to get

781
00:28:13.320 --> 00:28:14.240
the market to convert.

782
00:28:14.240 --> 00:28:16.320
We talked last night, she'd take the words,

783
00:28:16.320 --> 00:28:18.240
look at the cultural differences on chat TVT,

784
00:28:18.240 --> 00:28:20.520
translate your existing marketing copy

785
00:28:20.520 --> 00:28:22.640
back into the Polish cultural norms

786
00:28:22.640 --> 00:28:24.080
so that the right language is used

787
00:28:24.080 --> 00:28:25.240
so that it converts there.

788
00:28:25.240 --> 00:28:26.600
What's the question?

789
00:28:26.600 --> 00:28:27.600
Wow.

790
00:28:27.600 --> 00:28:31.000
You have AI here already.

791
00:28:31.000 --> 00:28:33.280
Naira Link, something like this.

792
00:28:33.280 --> 00:28:35.800
I prepare a little bit different question.

793
00:28:35.800 --> 00:28:36.480
Thank you.

794
00:28:36.480 --> 00:28:37.320
Thank you.

795
00:28:37.320 --> 00:28:39.640
I promise that you don't remember me.

796
00:28:39.640 --> 00:28:42.560
And we sell crypto education to a wide audience

797
00:28:42.560 --> 00:28:46.120
and the mostly who want to meet their basic needs.

798
00:28:46.120 --> 00:28:48.240
So there are no specific audience.

799
00:28:48.240 --> 00:28:50.160
We make over one million in revenue.

800
00:28:50.160 --> 00:28:53.920
We operate in Ukraine and are ocean in other countries.

801
00:28:53.920 --> 00:28:55.800
I want to reach 10 million.

802
00:28:55.800 --> 00:29:00.360
I more or less understand how by expanding to new markets

803
00:29:00.360 --> 00:29:03.520
and the Iran cold traffic from me at a Google influencers

804
00:29:03.520 --> 00:29:07.160
to have a ground and etc. through finals.

805
00:29:07.160 --> 00:29:11.040
And one auto webinar funnel had generated over $20 million

806
00:29:11.040 --> 00:29:12.440
and still working.

807
00:29:12.440 --> 00:29:14.560
And we tested VSL.

808
00:29:14.560 --> 00:29:19.200
We put same content like in our auto webinar

809
00:29:19.200 --> 00:29:22.120
but shorter and without comments, activities.

810
00:29:22.120 --> 00:29:23.560
We tested Adverturals.

811
00:29:23.560 --> 00:29:25.920
We tested with lead magnets, finals

812
00:29:25.920 --> 00:29:29.600
and nothing works as well as auto webinar funnel.

813
00:29:29.600 --> 00:29:32.240
That's where the magic happens.

814
00:29:32.240 --> 00:29:35.760
Where we are creating new auto webinar funnels

815
00:29:35.760 --> 00:29:41.120
and testing new topics, even new faces within these funnels.

816
00:29:41.120 --> 00:29:43.160
And I want to reach the audience

817
00:29:43.160 --> 00:29:45.560
that doesn't attend webinars.

818
00:29:45.560 --> 00:29:50.200
And my big question is how to find best practices

819
00:29:50.200 --> 00:29:52.120
and what else could give you,

820
00:29:52.120 --> 00:29:53.960
give you potentially work.

821
00:29:53.960 --> 00:29:56.880
And I'm reading your book about offers right now

822
00:29:56.880 --> 00:29:59.560
and it inspired me to build funnels

823
00:29:59.560 --> 00:30:01.640
for specific high-paying segments

824
00:30:01.640 --> 00:30:04.320
instead of just wide audience.

825
00:30:04.320 --> 00:30:07.320
And I'd like to ask you your opinion about this

826
00:30:07.320 --> 00:30:10.440
and is it the right way that I think right now?

827
00:30:10.440 --> 00:30:13.520
So, are you doing a million dollars a year or,

828
00:30:13.520 --> 00:30:16.920
because I remember the $20 million more,

829
00:30:16.920 --> 00:30:18.240
over a million dollars per month.

830
00:30:18.240 --> 00:30:20.800
Per month, okay, okay, that makes me feel better.

831
00:30:20.800 --> 00:30:21.640
Okay, because you're like,

832
00:30:21.640 --> 00:30:22.480
we're the biggest in Ukraine.

833
00:30:22.480 --> 00:30:23.960
Like a million bucks a year, a million things up.

834
00:30:23.960 --> 00:30:24.800
Yes.

835
00:30:24.800 --> 00:30:26.880
Maybe in crypto ad, you know, maybe at 12 in Ukraine.

836
00:30:26.880 --> 00:30:27.720
I don't know.

837
00:30:27.720 --> 00:30:29.280
I don't know what the proportional GDP is there

838
00:30:29.280 --> 00:30:31.080
and I know there's war and all sorts of stuff.

839
00:30:31.080 --> 00:30:32.440
So I'm sure it's tough over there.

840
00:30:32.440 --> 00:30:34.920
Okay, so if the goal is to get bigger,

841
00:30:34.920 --> 00:30:36.600
either, I mean, the simplest thing to do

842
00:30:36.600 --> 00:30:39.240
would just be to add an upsell to the existing Ukraine market.

843
00:30:39.240 --> 00:30:40.920
That would be the simplest thing to do.

844
00:30:40.920 --> 00:30:42.960
Highest likelihood impact.

845
00:30:42.960 --> 00:30:44.200
That would just make you more money.

846
00:30:44.200 --> 00:30:47.920
That's the, that is for sure the easiest money button.

847
00:30:49.000 --> 00:30:51.240
If you wanted to expand front ends,

848
00:30:51.240 --> 00:30:54.200
then I think the idea of like trying to hit the people

849
00:30:54.200 --> 00:30:59.200
who are not on Google and meta is not the framework

850
00:31:00.600 --> 00:31:01.560
that I would use.

851
00:31:01.560 --> 00:31:04.000
And the reason for that is one, everyone's on it.

852
00:31:04.000 --> 00:31:06.120
Secondarily, the people who aren't on it,

853
00:31:06.120 --> 00:31:07.280
probably are buying crypto.

854
00:31:08.440 --> 00:31:11.920
Like if you're not on Google, you're probably not buying crypto.

855
00:31:11.920 --> 00:31:13.400
You're not a web too.

856
00:31:13.400 --> 00:31:15.760
Web three is gonna be like, what is going on?

857
00:31:15.760 --> 00:31:17.840
And so I think that like the first thing I do

858
00:31:17.840 --> 00:31:19.800
is probably have the ascension path.

859
00:31:19.800 --> 00:31:21.400
I'd be like, thing one.

860
00:31:21.400 --> 00:31:23.640
And then in terms of expanding into new markets,

861
00:31:23.640 --> 00:31:24.840
it was kind of what we talked about last night,

862
00:31:24.840 --> 00:31:26.960
which is I think that the marketing that you're doing

863
00:31:26.960 --> 00:31:28.920
is just simply not resonating in these other markets

864
00:31:28.920 --> 00:31:30.600
because it's not your first language.

865
00:31:30.600 --> 00:31:32.160
And so marketing is so nuanced

866
00:31:32.160 --> 00:31:33.320
in terms of how copies are written,

867
00:31:33.320 --> 00:31:35.840
how like what analogies are persuasive,

868
00:31:35.840 --> 00:31:38.800
what visuals resonate within a given audience,

869
00:31:38.800 --> 00:31:43.040
that that's in my opinion what the highest likelihood gap is

870
00:31:43.040 --> 00:31:45.800
for why it's not converting into those new markets.

871
00:31:45.800 --> 00:31:48.160
Yes, I understood we do upsells.

872
00:31:48.160 --> 00:31:51.680
We have continuity, we have high ticket products inside

873
00:31:51.680 --> 00:31:54.160
and we I think do everything.

874
00:31:54.160 --> 00:31:59.160
The main point is what the best practices and funnels

875
00:31:59.760 --> 00:32:00.960
can work with us.

876
00:32:00.960 --> 00:32:03.480
Maybe I don't understand clearly about Google.

877
00:32:03.480 --> 00:32:05.160
Yeah, Google banned us every day

878
00:32:05.160 --> 00:32:07.600
and we can't work with our crypto.

879
00:32:07.600 --> 00:32:08.920
We had not equipped a project.

880
00:32:08.920 --> 00:32:11.560
We had not some, but it's not.

881
00:32:11.560 --> 00:32:14.160
Well, everything crypto related, there's a lot of.

882
00:32:14.160 --> 00:32:15.480
Yeah.

883
00:32:15.480 --> 00:32:19.000
So I mean fundamentally the business as it is today

884
00:32:19.000 --> 00:32:20.960
is just going to be a cash business.

885
00:32:20.960 --> 00:32:23.200
It's not going to be something that has enterprise value.

886
00:32:23.200 --> 00:32:25.560
And so you're running a basic arbitrage business,

887
00:32:25.560 --> 00:32:27.200
which is just by media for a buck,

888
00:32:27.200 --> 00:32:29.600
I make eight dollars on gated media

889
00:32:29.600 --> 00:32:31.440
and I just run that as much as I can.

890
00:32:31.440 --> 00:32:34.400
And so really the only way to grow that business

891
00:32:34.400 --> 00:32:36.480
is to just market more, spend more.

892
00:32:36.480 --> 00:32:37.320
That's it.

893
00:32:37.320 --> 00:32:38.400
And the only way that you can do that

894
00:32:38.400 --> 00:32:40.040
is that you continue to increase LTV.

895
00:32:40.880 --> 00:32:43.200
And so you're going to reach a natural cap

896
00:32:43.200 --> 00:32:46.400
based on the amount that you make per customer

897
00:32:46.400 --> 00:32:47.560
and the cost of eyeballs.

898
00:32:47.560 --> 00:32:51.280
And then over time that gap is going to shrink

899
00:32:51.280 --> 00:32:54.280
and your margins are going to compress,

900
00:32:54.280 --> 00:32:56.000
which is why right now you have

901
00:32:56.000 --> 00:32:57.960
when I read the company one company two yesterday

902
00:32:57.960 --> 00:32:59.440
I walked across here and I said,

903
00:32:59.440 --> 00:33:02.360
you're company one, you're a marketing machine

904
00:33:02.360 --> 00:33:04.640
and you're blowing tons of cash flow in the door.

905
00:33:04.640 --> 00:33:05.760
And that's a good thing.

906
00:33:05.760 --> 00:33:08.160
I call this a smashing grab opportunity.

907
00:33:08.160 --> 00:33:09.960
It's unlikely that it becomes something

908
00:33:09.960 --> 00:33:11.840
that has sustainable long-term enterprise value.

909
00:33:11.840 --> 00:33:13.240
When I say long-term, you're like 10 years.

910
00:33:13.240 --> 00:33:15.920
You can for sure run this for more years than now.

911
00:33:15.920 --> 00:33:18.440
But it's just going to be a more thing.

912
00:33:18.440 --> 00:33:19.760
Like how do we spend more money?

913
00:33:19.760 --> 00:33:21.400
And how do we make better ads?

914
00:33:21.400 --> 00:33:23.960
But if you have converting language,

915
00:33:23.960 --> 00:33:24.840
if you're like auto webinars,

916
00:33:24.840 --> 00:33:26.640
whatever's converting really well for you,

917
00:33:26.640 --> 00:33:29.160
then there's lots of little things.

918
00:33:29.160 --> 00:33:30.840
So, which is probably out of the scope

919
00:33:30.840 --> 00:33:32.560
of what I could answer in a verbal Q&A.

920
00:33:32.560 --> 00:33:35.000
It's like, have we split test the first 30 seconds

921
00:33:35.000 --> 00:33:38.280
of the VSL with three or five different hooks?

922
00:33:38.280 --> 00:33:39.240
You know, on the outside,

923
00:33:39.240 --> 00:33:41.560
like how many new pieces of creative are we putting on a day?

924
00:33:41.560 --> 00:33:42.600
I don't know how many are putting out,

925
00:33:42.600 --> 00:33:44.160
but like if you get up to,

926
00:33:44.160 --> 00:33:48.400
it's basically about 50 pieces of creative

927
00:33:48.400 --> 00:33:49.880
per $10,000 per day.

928
00:33:50.800 --> 00:33:51.960
You have five pieces per day.

929
00:33:51.960 --> 00:33:54.000
Hundreds per day, hundreds per month.

930
00:33:54.000 --> 00:33:56.000
Yeah, so that would be from a creative perspective.

931
00:33:56.000 --> 00:33:58.160
So, it would really just be looking at every step of it

932
00:33:58.160 --> 00:33:59.720
and just looking against the checklist,

933
00:33:59.720 --> 00:34:01.280
basically like all we're going to be doing

934
00:34:01.280 --> 00:34:03.200
with that business is just improving it.

935
00:34:03.200 --> 00:34:05.160
There's not going to be a big order of magnitude change

936
00:34:05.160 --> 00:34:06.000
that's going to happen.

937
00:34:06.000 --> 00:34:08.040
It's just going to be a hundred small things

938
00:34:08.040 --> 00:34:09.480
because it's already profitable.

939
00:34:09.480 --> 00:34:11.000
You already have a client acquisition system.

940
00:34:11.000 --> 00:34:14.040
So, just like how do we go from eight to one to 12 to one

941
00:34:14.040 --> 00:34:15.840
so that we can then double ad spend

942
00:34:15.840 --> 00:34:18.920
and be at eight to one again, but at twice the spend?

943
00:34:18.920 --> 00:34:19.920
And that's literally the process.

944
00:34:19.920 --> 00:34:21.640
You just do that over and over again.

945
00:34:22.200 --> 00:34:23.040
Thank you so much.

946
00:34:23.040 --> 00:34:23.880
There you go.

947
00:34:28.320 --> 00:34:29.120
Hi, Alex.

948
00:34:29.120 --> 00:34:29.960
Hello.

949
00:34:29.960 --> 00:34:31.080
My name is Nico, I'm from Quebec also.

950
00:34:31.080 --> 00:34:33.240
It was another guy from Quebec too, my friend.

951
00:34:33.240 --> 00:34:36.000
So, yeah, we help a home service businesses

952
00:34:36.000 --> 00:34:38.480
stuck between a hundred K and their first million a year

953
00:34:38.480 --> 00:34:40.600
to reach their first million a year

954
00:34:40.600 --> 00:34:43.920
with a three-step client acquisition formula called TNT.

955
00:34:43.920 --> 00:34:45.440
But before that, for five years,

956
00:34:45.440 --> 00:34:49.120
we were a WAS so website as a service.

957
00:34:49.120 --> 00:34:51.640
We sold 2.1 million over the last year

958
00:34:51.640 --> 00:34:53.640
and that profit is like 950K.

959
00:34:53.640 --> 00:34:57.360
We would like to reach 500 K a month collected

960
00:34:57.360 --> 00:35:00.080
for Quebec market and have less complexity.

961
00:35:00.080 --> 00:35:01.000
Okay, situation here.

962
00:35:01.000 --> 00:35:05.160
So, we have like 700 active client on the whole old system

963
00:35:05.160 --> 00:35:08.560
which was a WAS, $200 a month thing.

964
00:35:08.560 --> 00:35:10.920
It was super cool, but super frustrating.

965
00:35:10.920 --> 00:35:13.680
The team was started to feel like robots.

966
00:35:13.680 --> 00:35:15.200
So, we got emotional and we're like,

967
00:35:15.200 --> 00:35:16.800
okay, let's move to high ticket.

968
00:35:16.800 --> 00:35:19.080
So, that's what happened four months ago.

969
00:35:19.240 --> 00:35:20.560
We started high ticket.

970
00:35:20.560 --> 00:35:22.840
We're like, whoo, cash flows here now.

971
00:35:22.840 --> 00:35:25.120
But the thing is, I realized yesterday, actually,

972
00:35:25.120 --> 00:35:28.640
that my LTV to CAC is now very low

973
00:35:28.640 --> 00:35:31.120
because my clients are home service businesses.

974
00:35:31.120 --> 00:35:32.600
I'm in Quebec.

975
00:35:32.600 --> 00:35:35.200
We can only run ads for like four months for them

976
00:35:35.200 --> 00:35:40.000
because there's snow everywhere for like seven months a year.

977
00:35:40.000 --> 00:35:44.120
The other thing is once the ads work, they stop the ads

978
00:35:44.120 --> 00:35:46.640
because they are limited by capacity.

979
00:35:46.640 --> 00:35:47.960
So, what's stopping me to grow?

980
00:35:47.960 --> 00:35:49.400
What do you want to do with this business?

981
00:35:49.400 --> 00:35:52.800
What we want to do, actually, is well, you want to...

982
00:35:52.800 --> 00:35:55.600
Because the first business sounded like a great business.

983
00:35:55.600 --> 00:35:57.080
Right.

984
00:35:57.080 --> 00:35:58.640
I know.

985
00:35:58.640 --> 00:36:02.080
The thing is, we wanted to create a real transformation.

986
00:36:02.080 --> 00:36:04.040
And I think that was...

987
00:36:04.040 --> 00:36:05.000
Can I tell you a secret?

988
00:36:05.000 --> 00:36:06.160
Yeah.

989
00:36:06.160 --> 00:36:11.160
Very small business owners will never build a stable business

990
00:36:12.360 --> 00:36:14.680
because they are not stable.

991
00:36:14.680 --> 00:36:16.160
So, there's nothing to do with you.

992
00:36:16.160 --> 00:36:17.000
Okay.

993
00:36:17.000 --> 00:36:18.520
So, it's been a very long time to figure out

994
00:36:18.520 --> 00:36:20.440
and I kept trying to bang my head against the wall being like,

995
00:36:20.440 --> 00:36:22.760
how do I fix turn or how do I fix retention?

996
00:36:22.760 --> 00:36:26.560
Like, Shopify has best in class retention for VSMB

997
00:36:26.560 --> 00:36:29.280
so very small business owners, prosumers, if you will.

998
00:36:29.280 --> 00:36:31.720
And they keep 50% per year.

999
00:36:31.720 --> 00:36:34.760
That's best in class, $100 billion company.

1000
00:36:34.760 --> 00:36:39.640
And so, I have only seen one model work with small business owners

1001
00:36:39.640 --> 00:36:41.520
and it's ultra low priced

1002
00:36:41.520 --> 00:36:43.800
and you build the entire business around

1003
00:36:43.800 --> 00:36:46.040
having high gross margins below prices.

1004
00:36:46.280 --> 00:36:47.120
So, the West.

1005
00:36:47.120 --> 00:36:48.680
Yes. That was a good thing

1006
00:36:48.680 --> 00:36:50.400
because I feel like I'm trying to push a high price.

1007
00:36:50.400 --> 00:36:52.200
The only thing that happened is you just got impatient.

1008
00:36:52.200 --> 00:36:53.040
Yeah.

1009
00:36:53.040 --> 00:36:54.560
You had 700 customers, thinking $200 money,

1010
00:36:54.560 --> 00:36:56.920
making $140 a month, probably good margins.

1011
00:36:56.920 --> 00:36:57.840
Yeah.

1012
00:36:57.840 --> 00:36:59.640
Yeah, it was nice.

1013
00:36:59.640 --> 00:37:00.880
And you're only going to lose...

1014
00:37:00.880 --> 00:37:03.360
Right. And so, I think, honestly, like,

1015
00:37:03.360 --> 00:37:04.680
you know, the best thing that would have happened

1016
00:37:04.680 --> 00:37:06.480
would have been that you didn't take the last four months

1017
00:37:06.480 --> 00:37:07.360
and build this other thing

1018
00:37:07.360 --> 00:37:08.560
and you would have just kept doubling down

1019
00:37:08.560 --> 00:37:10.400
and taken all that extra energy and said,

1020
00:37:10.400 --> 00:37:12.000
what were you doing in sales per month with the...

1021
00:37:12.000 --> 00:37:13.240
Wow, I just like seeing the West.

1022
00:37:13.240 --> 00:37:17.760
The West were onboarding like 40 to 50 new clients a month.

1023
00:37:17.760 --> 00:37:19.040
What's churn?

1024
00:37:19.040 --> 00:37:23.240
We were keeping like 85% of people year after year.

1025
00:37:24.280 --> 00:37:25.320
Good business.

1026
00:37:25.320 --> 00:37:26.160
Right.

1027
00:37:26.160 --> 00:37:27.760
I think it's super high gross margins.

1028
00:37:27.760 --> 00:37:29.880
85% annual revenue retention.

1029
00:37:29.880 --> 00:37:30.920
When we started high ticket,

1030
00:37:30.920 --> 00:37:33.000
we're like, whoa, cash flow is insane now.

1031
00:37:33.000 --> 00:37:37.280
Like on month one, but then maybe not later.

1032
00:37:37.280 --> 00:37:38.880
Well, you're certainly not making transformations now.

1033
00:37:38.880 --> 00:37:40.120
They leave in four months.

1034
00:37:40.120 --> 00:37:40.960
Yeah.

1035
00:37:40.960 --> 00:37:41.800
So here's, okay.

1036
00:37:43.280 --> 00:37:44.680
Instead of thinking about transformations,

1037
00:37:44.680 --> 00:37:47.760
just think, so Elon has this really good framework on this.

1038
00:37:47.760 --> 00:37:49.880
He said either we can have a very small amount of people,

1039
00:37:49.880 --> 00:37:52.800
a ton, we're gonna help a lot of people a little bit

1040
00:37:52.800 --> 00:37:54.560
and he's taking the perspectives

1041
00:37:54.560 --> 00:37:56.280
to helping a lot of people a little bit.

1042
00:37:56.280 --> 00:37:59.160
And so, I think with this business,

1043
00:37:59.160 --> 00:38:02.160
like they have demonstrated with their dollars

1044
00:38:02.160 --> 00:38:03.760
that they value what you give them.

1045
00:38:03.760 --> 00:38:04.840
They don't cancel it.

1046
00:38:04.840 --> 00:38:06.080
They like it.

1047
00:38:06.080 --> 00:38:08.400
When you give them the other thing, you think,

1048
00:38:08.400 --> 00:38:11.600
you're selling out of your own wallet.

1049
00:38:11.600 --> 00:38:13.560
You're saying I wouldn't want this.

1050
00:38:13.560 --> 00:38:14.760
I would want this.

1051
00:38:14.760 --> 00:38:17.160
And then you're saying they're not like me, duh.

1052
00:38:17.160 --> 00:38:19.080
And we can still sell the high ticket

1053
00:38:19.080 --> 00:38:20.880
to the nuggets in the West.

1054
00:38:22.040 --> 00:38:23.440
Yeah, that would be the...

1055
00:38:23.440 --> 00:38:24.760
You know what'd be even cooler?

1056
00:38:24.760 --> 00:38:25.840
We're not doing that.

1057
00:38:25.840 --> 00:38:27.280
Okay, not even.

1058
00:38:27.280 --> 00:38:29.040
No, like, hear me out.

1059
00:38:29.040 --> 00:38:32.360
So, no, this is, this is like,

1060
00:38:32.360 --> 00:38:35.480
I will keep the entertainment for entertainment purposes,

1061
00:38:35.480 --> 00:38:38.280
but I want you to really think about this.

1062
00:38:38.280 --> 00:38:41.120
So, okay.

1063
00:38:43.640 --> 00:38:45.040
There is going to be,

1064
00:38:45.040 --> 00:38:46.360
I didn't explain one of these other frameworks,

1065
00:38:46.360 --> 00:38:47.920
but Crashquarth.

1066
00:38:47.920 --> 00:38:50.240
So, with every one of the implementations that you do,

1067
00:38:50.240 --> 00:38:53.760
you have limited resources, time, effort, money, right?

1068
00:38:53.760 --> 00:38:55.640
And so, strategy is prioritization.

1069
00:38:55.640 --> 00:38:57.440
It means how do we take these limited resources

1070
00:38:57.440 --> 00:38:59.680
and allocate them and get unlimited options?

1071
00:38:59.680 --> 00:39:01.640
And so, if you're not sure,

1072
00:39:01.640 --> 00:39:03.920
it's because you're not doing the job of the entrepreneur.

1073
00:39:03.920 --> 00:39:05.120
There is always only one thing

1074
00:39:05.120 --> 00:39:06.200
that is the most important the business.

1075
00:39:06.200 --> 00:39:08.760
And if you can't decide, that's on you.

1076
00:39:08.760 --> 00:39:10.680
And so, you have the stuff, you've got your team,

1077
00:39:10.680 --> 00:39:12.120
you've got your money, whatever.

1078
00:39:12.120 --> 00:39:14.200
And so, instead of being like, man,

1079
00:39:14.200 --> 00:39:15.680
we should start this ascension thing,

1080
00:39:15.680 --> 00:39:16.880
because you probably have really good else

1081
00:39:16.880 --> 00:39:19.400
to be to CAC on this other business, the West business.

1082
00:39:19.400 --> 00:39:20.480
Oh, yeah, yeah, this one, yeah.

1083
00:39:20.480 --> 00:39:21.880
Yeah, yeah, yeah, right.

1084
00:39:21.880 --> 00:39:23.080
And so, instead of saying,

1085
00:39:23.080 --> 00:39:25.960
hey, let's start this whole other business,

1086
00:39:25.960 --> 00:39:27.160
right, because it's totally even service,

1087
00:39:27.160 --> 00:39:28.920
totally even price point, whatever, right?

1088
00:39:28.920 --> 00:39:31.200
Just say like, what if we took all of that energy

1089
00:39:31.200 --> 00:39:32.520
of starting this other business

1090
00:39:32.520 --> 00:39:35.320
and just said, how do we get 200 customers a month?

1091
00:39:37.200 --> 00:39:38.200
True.

1092
00:39:38.200 --> 00:39:39.560
Yeah, that would quadruple the business.

1093
00:39:39.560 --> 00:39:40.400
Yeah.

1094
00:39:40.400 --> 00:39:42.960
And if you did that, you'd be at $500,000 a month in six months.

1095
00:39:42.960 --> 00:39:43.800
That's right.

1096
00:39:43.800 --> 00:39:46.120
And it would be really good, $500,000 a month.

1097
00:39:46.120 --> 00:39:47.520
Amazing.

1098
00:39:47.520 --> 00:39:48.360
That helps.

1099
00:39:48.360 --> 00:39:49.400
Cool.

1100
00:39:49.400 --> 00:39:50.240
Thank you.

1101
00:39:50.240 --> 00:39:51.080
There you go.

1102
00:39:51.080 --> 00:39:51.920
All right.

1103
00:39:55.520 --> 00:39:57.520
My name is Cole, so I sell solar.

1104
00:39:57.520 --> 00:39:59.960
I'm like a marketing company for solar providers

1105
00:39:59.960 --> 00:40:01.760
in California.

1106
00:40:01.760 --> 00:40:03.120
So we sell the homeowners.

1107
00:40:03.120 --> 00:40:05.760
I'm currently, we opened up last April.

1108
00:40:05.760 --> 00:40:08.760
And I did $800,000 to $1,000 last year.

1109
00:40:08.760 --> 00:40:12.200
So I want to be at $10 million.

1110
00:40:12.200 --> 00:40:13.560
The biggest, I know, I know.

1111
00:40:13.560 --> 00:40:16.320
The biggest concern that I have, huh?

1112
00:40:16.320 --> 00:40:17.120
Yesterday.

1113
00:40:17.120 --> 00:40:18.360
Yesterday, yeah, yeah.

1114
00:40:18.360 --> 00:40:20.960
I think that our, my biggest concern right now

1115
00:40:20.960 --> 00:40:22.680
is that I think we have a very much of an Apple's

1116
00:40:22.680 --> 00:40:24.720
Apple's comparison to other solar companies.

1117
00:40:24.720 --> 00:40:26.560
I don't think our offer is actually that special

1118
00:40:26.560 --> 00:40:28.800
in terms of like, you know, relatively speaking.

1119
00:40:28.800 --> 00:40:29.640
And quality.

1120
00:40:29.640 --> 00:40:30.400
Yeah, for sure.

1121
00:40:30.400 --> 00:40:32.800
And so I've been trying to find ways

1122
00:40:32.840 --> 00:40:35.800
to create an Apple's the oranges comparison.

1123
00:40:35.800 --> 00:40:37.640
Our sales rates like me and my business partner

1124
00:40:37.640 --> 00:40:38.680
were very good at sales.

1125
00:40:38.680 --> 00:40:41.240
We have like a, you know, we did door to door for the decades.

1126
00:40:41.240 --> 00:40:43.920
So, you know, we're like 80% close rates.

1127
00:40:43.920 --> 00:40:45.080
But it's a battle, right?

1128
00:40:45.080 --> 00:40:46.920
And we do lose people with the price shopping,

1129
00:40:46.920 --> 00:40:49.280
which is, you know, we're 100% virtual.

1130
00:40:49.280 --> 00:40:51.760
So I'm trying to figure out how to create an Apple's

1131
00:40:51.760 --> 00:40:54.080
orange comparison in the solar industry,

1132
00:40:54.080 --> 00:40:56.880
which is very much a commodity market.

1133
00:40:56.880 --> 00:40:59.080
But you don't have control over the product, right?

1134
00:40:59.080 --> 00:41:00.400
That's correct.

1135
00:41:00.400 --> 00:41:01.240
Yeah.

1136
00:41:01.280 --> 00:41:03.080
I'll be honest, it's very tough.

1137
00:41:03.080 --> 00:41:06.120
Like you can't, you actually can't really change your offer.

1138
00:41:06.120 --> 00:41:06.960
Right?

1139
00:41:06.960 --> 00:41:10.000
And so the only thing that you can do is change the terms,

1140
00:41:10.000 --> 00:41:11.800
but it's a zero sum game.

1141
00:41:11.800 --> 00:41:13.920
So every dollar you take out of your pocket, you put it in the,

1142
00:41:13.920 --> 00:41:15.760
you know, like every dollar you give the customer

1143
00:41:15.760 --> 00:41:16.720
you're taking out of your pocket,

1144
00:41:16.720 --> 00:41:18.200
because you can't control the variables.

1145
00:41:18.200 --> 00:41:19.040
Right.

1146
00:41:19.040 --> 00:41:19.880
Yeah.

1147
00:41:19.880 --> 00:41:22.080
So what were the margins that you made on the 800?

1148
00:41:22.080 --> 00:41:23.200
We made half of that.

1149
00:41:23.200 --> 00:41:24.040
Okay.

1150
00:41:24.040 --> 00:41:27.880
So I'll say this, I don't think the constraint

1151
00:41:27.880 --> 00:41:30.040
of the business is that it's commoditized.

1152
00:41:30.040 --> 00:41:30.880
Okay.

1153
00:41:30.880 --> 00:41:32.200
Although it may be frustrating,

1154
00:41:32.200 --> 00:41:33.920
you're running 50% margins on a business

1155
00:41:33.920 --> 00:41:36.240
that you have very little operational complexity around.

1156
00:41:36.240 --> 00:41:37.840
And so if you want to hit 10 million,

1157
00:41:37.840 --> 00:41:39.120
you absolutely could hit 10 million.

1158
00:41:39.120 --> 00:41:39.960
There's tons of solar companies

1159
00:41:39.960 --> 00:41:42.400
who go from zero to 10, zero to 20 in like 12 months,

1160
00:41:42.400 --> 00:41:44.040
24 months, not that uncommon.

1161
00:41:44.040 --> 00:41:44.880
Yeah.

1162
00:41:44.880 --> 00:41:46.320
But the business that you're really in

1163
00:41:46.320 --> 00:41:49.520
is the recruiting hiring training of sales people business.

1164
00:41:49.520 --> 00:41:51.680
And that's, that's the game, right?

1165
00:41:51.680 --> 00:41:53.520
The business is not super salable.

1166
00:41:53.520 --> 00:41:54.840
You know, I mean, it is salable,

1167
00:41:54.840 --> 00:41:56.360
like you can sell like one times,

1168
00:41:56.360 --> 00:41:58.040
and then you can basically meld your team

1169
00:41:58.040 --> 00:41:59.480
into some other guy's distribution base

1170
00:41:59.600 --> 00:42:01.080
and then it all gets aggregated.

1171
00:42:01.080 --> 00:42:03.000
And that's kind of how that industry is going.

1172
00:42:03.000 --> 00:42:04.240
But I don't, like basically,

1173
00:42:04.240 --> 00:42:08.440
you don't have enough control over the business

1174
00:42:08.440 --> 00:42:12.080
to really materially change the offer.

1175
00:42:12.080 --> 00:42:12.920
Yeah.

1176
00:42:12.920 --> 00:42:14.160
And so I don't normally say that,

1177
00:42:14.160 --> 00:42:15.920
but essentially, and like this is,

1178
00:42:15.920 --> 00:42:16.920
we don't take it as a slight,

1179
00:42:16.920 --> 00:42:18.880
it's just like, you're a hired gun.

1180
00:42:18.880 --> 00:42:19.720
You know what I mean?

1181
00:42:19.720 --> 00:42:20.640
And so you've got two hired guns,

1182
00:42:20.640 --> 00:42:21.960
and you guys are both really, you're mercenaries.

1183
00:42:21.960 --> 00:42:23.440
You're both really good at sales.

1184
00:42:23.440 --> 00:42:24.840
And you're making basically the same amount

1185
00:42:24.840 --> 00:42:27.920
that a top to your sales guy would at a sales org.

1186
00:42:27.920 --> 00:42:29.440
And so the only leverage that you're going to get

1187
00:42:29.440 --> 00:42:32.080
is training your ability to train on waterproof

1188
00:42:32.080 --> 00:42:34.120
other guys who can do the same thing as you

1189
00:42:34.120 --> 00:42:36.560
and you get it override on on their commissions.

1190
00:42:36.560 --> 00:42:39.320
And so if anything, I would say that,

1191
00:42:39.320 --> 00:42:40.400
so we're getting to the answer.

1192
00:42:40.400 --> 00:42:43.960
So basically where you can have a competitive advantage

1193
00:42:43.960 --> 00:42:45.720
is not on the customer side,

1194
00:42:45.720 --> 00:42:48.000
but on the salesman side.

1195
00:42:48.000 --> 00:42:50.240
And so I would reorient all my attention to being like,

1196
00:42:50.240 --> 00:42:52.960
how can I make the best offer to sales people?

1197
00:42:52.960 --> 00:42:55.120
How can I get more sales people on board it?

1198
00:42:55.120 --> 00:42:56.640
How can I have superior training?

1199
00:42:56.640 --> 00:42:58.880
How can I have better data and analytics

1200
00:42:58.880 --> 00:43:00.440
and better lead gen for them?

1201
00:43:00.440 --> 00:43:05.120
So that their job of selling is made easiest with me

1202
00:43:05.120 --> 00:43:08.560
for everything else minus the core offer.

1203
00:43:08.560 --> 00:43:11.920
Yeah, my vision long term is with solar,

1204
00:43:11.920 --> 00:43:15.080
especially in California, it's a savings oriented sale.

1205
00:43:15.080 --> 00:43:16.280
So it's like your bills this,

1206
00:43:16.280 --> 00:43:18.240
you're going to pay less money, et cetera.

1207
00:43:18.240 --> 00:43:19.440
As long as the credits are there.

1208
00:43:19.440 --> 00:43:20.280
What's up?

1209
00:43:20.280 --> 00:43:22.000
As long as the credits are there, which is also a problem.

1210
00:43:22.000 --> 00:43:23.920
But so soon.

1211
00:43:23.920 --> 00:43:25.640
Yeah, real.

1212
00:43:26.000 --> 00:43:27.480
I divested from a solar company.

1213
00:43:27.480 --> 00:43:28.960
What was that you divested from a solar company?

1214
00:43:28.960 --> 00:43:29.800
Oh, did you really understand?

1215
00:43:29.800 --> 00:43:30.720
Or this exact issue?

1216
00:43:30.720 --> 00:43:31.560
Yeah.

1217
00:43:31.560 --> 00:43:34.360
My ultimate vision, what I've kind of been obsessed with

1218
00:43:34.360 --> 00:43:37.200
is instead of selling on savings,

1219
00:43:37.200 --> 00:43:41.440
I would way rather find a way to add services on top of that,

1220
00:43:41.440 --> 00:43:43.680
whether it's like some sort of H back,

1221
00:43:43.680 --> 00:43:46.520
aero seal thing, or the tax services

1222
00:43:46.520 --> 00:43:47.840
with depreciation losses.

1223
00:43:47.840 --> 00:43:50.240
Dude, I'd rather than you just let's say,

1224
00:43:50.240 --> 00:43:53.280
so when we're going zooming all the way out strategy stuff,

1225
00:43:53.280 --> 00:43:55.040
what you have is an ability to sell.

1226
00:43:55.360 --> 00:43:56.680
And you know how to generate leads.

1227
00:43:56.680 --> 00:43:57.360
Yeah.

1228
00:43:57.360 --> 00:44:00.000
And if tomorrow you said, I'm not selling solar,

1229
00:44:00.000 --> 00:44:04.200
you'd have to fill out the next 180 days max of contracts

1230
00:44:04.200 --> 00:44:05.960
and make sure that the shickets installed

1231
00:44:05.960 --> 00:44:06.800
would have a writer.

1232
00:44:06.800 --> 00:44:09.240
Then for that, you could do whatever you wanted, right?

1233
00:44:09.240 --> 00:44:10.440
How many employees do you have?

1234
00:44:10.440 --> 00:44:11.280
We have four.

1235
00:44:11.280 --> 00:44:12.840
Yeah, so it's not, I mean, it's you,

1236
00:44:12.840 --> 00:44:14.360
your partner and to other people.

1237
00:44:14.360 --> 00:44:15.200
Yeah.

1238
00:44:15.200 --> 00:44:15.880
Or no three.

1239
00:44:15.880 --> 00:44:16.720
Three.

1240
00:44:16.720 --> 00:44:17.320
Yeah.

1241
00:44:17.320 --> 00:44:19.960
So I think that it just might be,

1242
00:44:19.960 --> 00:44:21.440
you might be better served.

1243
00:44:21.440 --> 00:44:22.920
And I don't normally give this kind of advice,

1244
00:44:22.920 --> 00:44:25.280
but like, you might just be better served taking that skill

1245
00:44:25.280 --> 00:44:27.120
set and putting in a different opportunity vehicle.

1246
00:44:27.120 --> 00:44:28.280
Interesting.

1247
00:44:28.280 --> 00:44:29.200
And just like you are like,

1248
00:44:29.200 --> 00:44:30.920
how do I do this solar thing with HVAC?

1249
00:44:30.920 --> 00:44:32.560
It's like, just do HVAC.

1250
00:44:32.560 --> 00:44:34.040
Just go to door selling HVAC.

1251
00:44:34.040 --> 00:44:36.320
And HVAC has phenomenal multiples

1252
00:44:36.320 --> 00:44:39.000
and has great revenue retention.

1253
00:44:39.000 --> 00:44:41.160
Once people do the HVAC person comes back every year,

1254
00:44:41.160 --> 00:44:43.160
services again, upsells more stuff.

1255
00:44:43.160 --> 00:44:44.000
Cool.

1256
00:44:44.000 --> 00:44:45.080
And this problem in that business,

1257
00:44:45.080 --> 00:44:48.680
getting HVAC people, the fixers, the technicians,

1258
00:44:48.680 --> 00:44:50.000
is the constraint of that business.

1259
00:44:50.000 --> 00:44:52.120
Usually getting customers is actually not the constraint.

1260
00:44:52.120 --> 00:44:53.280
So it might be kind of fun for you to be like,

1261
00:44:53.280 --> 00:44:54.760
oh, my phone's ringing, this is weird.

1262
00:44:54.760 --> 00:44:56.560
People are calling me because they're AC's broken out.

1263
00:44:56.560 --> 00:44:57.640
Like, hey, can you sell me solar?

1264
00:44:57.640 --> 00:44:58.520
Like, no one has that.

1265
00:44:58.520 --> 00:44:59.360
Yeah.

1266
00:44:59.360 --> 00:45:00.200
That's true.

1267
00:45:00.200 --> 00:45:01.040
And so I think like,

1268
00:45:01.040 --> 00:45:03.480
if the goal long term is to build something that has,

1269
00:45:03.480 --> 00:45:04.800
sure enterprise value,

1270
00:45:04.800 --> 00:45:06.280
given the fact that you have so little control

1271
00:45:06.280 --> 00:45:08.360
over the existing process,

1272
00:45:08.360 --> 00:45:10.040
you were basically just an acquisition machine.

1273
00:45:10.040 --> 00:45:10.880
I was back.

1274
00:45:10.880 --> 00:45:11.880
I came from that in the gym world.

1275
00:45:11.880 --> 00:45:13.400
Then recombined it into a business model

1276
00:45:13.400 --> 00:45:15.720
that actually has enterprise value.

1277
00:45:15.720 --> 00:45:16.720
Yeah.

1278
00:45:16.720 --> 00:45:17.560
Cool.

1279
00:45:17.560 --> 00:45:18.400
Probably not way effective.

1280
00:45:18.400 --> 00:45:19.240
No, no.

1281
00:45:19.240 --> 00:45:20.240
Thank you.

1282
00:45:20.240 --> 00:45:22.240
OK.

1283
00:45:22.240 --> 00:45:24.240
Sweet.

1284
00:45:24.240 --> 00:45:25.000
Was that helpful?

1285
00:45:25.000 --> 00:45:25.520
Was that cool?

1286
00:45:25.520 --> 00:45:26.000
Interesting.

1287
00:45:26.000 --> 00:45:26.520
All right.

1288
00:45:26.520 --> 00:45:27.520
Good.