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Everything that you spend your time on that is not interviewing to get this

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setter and get them trained up are things that are not going to double the

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business. Let's do A's and Q's. Hello. Hey, my name is Joe Reed. I'm Genesis Family

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Healthcare. I have been in primary care for the last 20 years at 16 to my own

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business. In the last two years, I've changed to a direct primary care model,

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which is basically a membership model, much like a gym membership model. So my

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revenue was $2 million last year, 15% profits. I do kind of live through my

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business too, so that kind of helps out. So the thing that I would really like to

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know is what is the marketing strategy or the marketing model that you would

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advise me to grow my business? You would have double because I overheard you

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earlier. What what sales velocity right now? How many customers are you selling

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per week per month? Around 2000 per year per year. Okay, so so 40 a week

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roughly. Okay, so 40 new patients a week are coming in. What's the way that

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you're getting customers right now? It's it's it's not the new patients that are

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coming in. I have 2000 what 300 patients with sales velocity. So what's new

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velocity is probably around seven eight a month. Seven eight a month. Okay,

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got it. So you have really good patient stick. Obviously for a thousand and

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you can that's great. Okay. So the seven eight a month that are coming in, is

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that just worth a bill? We did we did pretty good marketing turn in the

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fall. It's been a lot of money on some things. I think we put the cart before

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the horse a little bit as far as just going on online and and really marketing

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Google ads. What did you do? So it was PVC? Yes. I mean and and then Facebook and

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Instagram. Did you hire an agency? We did. Okay. How did that work? Got a lot of

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people at the top of the funnel. And we did not close. Okay, so we know what our

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issue was at that time. So always issue. I think follow up as much as anything.

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Yeah, because most people in our town kind of knows they know our brand. Yeah, so

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or they know who I am. Sure. So so yeah, I think it's close as much as

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anything. Yeah. So what stops you from doing that again and now working the

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leads this time? People. Okay, getting the right people. Okay, you know, a lot of

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I answer a lot of questions have been answered since being here on. No, you're

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good. I mean, that's I mean, that's the hope that exactly. Yeah. So it really is

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I think the people and the script and the and the execution of those things. So

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so in all likelihood, you running ads in a local market to get more

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patients feels pretty sound to me. The offer that you were running was what

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what offer were you running to get people in the dark? As far as just direct

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program. You ran your ads. Yeah, it's a monthly membership. No, no, but like

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the ad wouldn't be like want to buy a direct monthly membership. Right. No,

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right. So what was the offer that people saw that caused them to take action?

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The genesis difference was was a big part because we're we're more of a

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difference in we were more of a functional type medicine. Sure. And I hate to

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use functional holistic and all those things. It kind of sounds. Yeah. Yeah. So I'm

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more of a reload path. So I'm realistic. I'm a real low path myself. Yeah. Yeah.

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So and we did show the jam down during COVID, sir. And I told certain things

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about this. I was a variable during COVID. I got a lot of things that that has

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really been a flagship with me. Oh, right. Because that was where we as a

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practice, we got six providers at my practice. And we all kind of took a

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thing to the establishment. So what we need to do is basically have an offer

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that we can run on the front end. It would typically be some sort of, I'd say

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$19 to $99 offer. And I want to be clear, I'm not trying to undervalue your

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services. It's going to be a front end thing. Sure. So you get them to opt in.

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Thank you, Paige. They can buy it. Some of them will. Some of them won't

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it doesn't really matter. So the ones that do buy in self-schedule, those

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will be easy because you won't have to work them. They'll probably just show

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up because they paid for all the rest of the leads. You call them up. You

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collect the card over the phone. And then you obviously build them the

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$19 or $99 thing for whatever the call to functional movement screening

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or like some sort of pain assessment or so if that's basically you want to

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figure out what the most common pain that you're ideal avatar is suffering

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from and then make the offer related to that. And it would probably be some

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sort of screen slash assessment slash x-ray or whatever. They then

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reveals the problem. And then you do a prescriptive close in the

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solution. And so this is a very tried intro method. And it sounds like the

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biggest issue that physicians offices typically deal with is that

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secretaries don't not work leads. Right. Right. And so you really need a

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sales role. And so it feels uncomfortable sales medicine, but it's also

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reality. And so that's pretty much it, which is that's the offer. And then

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you would hook it up to a scheduler. And then you would call the leads.

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That's it. I mean, that's that's really it. And so it means you just need

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one person to call the leads and you can do this thing. Okay. So then

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everything that prevents you said, I'm going to say it super directly.

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Everything that you spend your time on that is not interviewing to get

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this setter and get them trained up are things that are not going to

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double the business. Thank you. Yeah. 100%. Thank you. That helped.

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Okay. Good.

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My name is Frank. I sell luxury watches to other watch dealers.

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V to V. V to be our revenue last year was 88 million. And our margin is

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3%. So I would like to it's a it's a it's true. I get it. It's the

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type of the business. So I would like to double our revenue. And

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obviously, you just need to sell double the inventories above the watches.

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And by now, we are capped because I'm actually I'm actually the

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person who get the leads because in order to make money, you need to buy

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cheap and sell either higher rig at okay. Okay. Okay. So I'm not able to

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give up my proprietary deal flow. Because somebody can just take it and

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give it himself because in this industry, pricing is prices most of

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the compared compared compared to the advantage is branding is not that

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much. So the watches are the ones that are carrying the price but

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your specific price. Right. Right. So I'm able to get

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good price. Yeah. Sell reasonably. But right now, my time is pretty

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capped. And we are trying to double it. I'm trying to figure out what's

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the best way to do it. So I think is there a way that we can chop it into

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pieces. Yeah. Meaning you have your proprietary lead flow. Right.

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Right. Right. You can not share where the leads are coming from and then

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share the leads with someone and have someone else work the leads.

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That's what I that's what being trying to do. Okay. My time will be

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capped of these proprietary leads because I want to double my proprietary

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leads. So the W lead flow. Right. Right. Right. And I'm guessing this has

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to do some sort of outbound method. Right. Yeah. Okay. So I would

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probably look at like VAs in like offshore that don't know anything about

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the space. So I think it's if you look at the keys to the kingdom, it's

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like what you don't want to have is somebody who understands how to get the

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deals gets the cash to buy it and then find sellers. Right. You have all

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three of those, which is why you have a money flow. Right. And so if we

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got, let's say somebody who is a VA who could work some of the outbound

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stuff and do more of that work for you, they don't know any of the buyers.

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And they probably don't have the cash to buy something like that. And

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so I think you could pretty easily get someone to duplicate the effort that

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you're doing on the upper little generation side doing that and just keep

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a control there. Yeah. Does that make sense? Yeah. Another business model,

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we've been doing, we've been trying for the last year as we partner with

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other people who get leads, but they don't have money. And we just partner

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on deals. Okay. These are doing pretty well. But the caveat is that they

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will over declare their cost or if they will under declare their price.

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Sure. So they will, they will undercut you. They will give you a

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fear. Yeah. Cut, but they won't. Yeah. Have you ever seen? Uh-huh. Is

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is this just the, the feature or it's a book? It's a feature. It's a

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feature. So I'll say something that Layla taught me this one in the early

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on in our relationship. Yeah. She said, never count the other guy's money.

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If the deal works for you, the deal works for you. Okay. The deal doesn't

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work for you. It doesn't work for you. If the other guy makes more money,

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he'll do more deals with you. Got it. So why not have two options, right?

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One is partnership, one is V8. There's, if I have to prioritize one,

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what would I do is, which one do you like better, which one scales faster,

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given your skill set? Punishment? Then do partners. I don't think there's

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any issue with that. Got it. I mean, if you think about from the value of a

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business perspective, I personally do like the partnership thing. Yeah.

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If you have a reliable way of getting, of getting them kind of in, I would

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say the only, you know, problem with that particular angle is that if

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they make enough money doing the deals with you, they eventually just stop

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doing it. Yeah. It's a short term relationship. Right. So keep them poor.

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Yeah. Yeah.

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Sell them a watch. So our tone to move to the US, get taxed. Anyway, it's boyping.

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I think long term, the V8 thing is nice because of the issue that we're just

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talking about because if you only get eight deals done with somebody before

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they make enough money to buy their own, you know, I'm trying to think of

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AP. There you go. That's actually my luxury watch collection. Then I don't

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still think the V8 things can be that hard for you to do. Can you elaborate more?

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Okay. Can you? So you document, demonstrate duplicate. So what do you do?

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What's your process? You find somebody like a VA is going to have a very hard

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time making the amount of money to do one deal. Right. You're going to pay them

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five to $10 an hour. Okay. It's not going to be a lot. Right. And so you can take

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a lot of hours to the divide $80,000 or $240,000 watch. Right. So they are

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basically just talking to other wholesalers and premium deals. Yeah. They're

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just going to do what you do. Okay. But then I'm still the person who is

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evaluating the deals. Right. At the end of the day, my time was realistically,

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you just have a rubric. Like you know, all the brands of other watches, I know

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that you probably in your head have an idea of what's hot right now and what

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price is really to buy at. So you just have a decision tree that's in your

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head that you run every time. You just need to document so that you can say,

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hey, if you find anything that's like this or they have any of these products,

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let me know. Okay. The tricky part is that the price

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fluctuate by day. And somebody has to be in the business to understand what's

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the reasonable price to buy. Yeah. So feature, feature. You're, I mean,

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you're in the commodities business price is the game. So you having real

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time metrics on pricing is what allows you to scale and go from being a one

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man shop to somebody who can get more to build a building of this fundamentally,

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you build a business around buying and selling surprises. The winner is the

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exchange. And so that's probably just going to every morning you update the

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pricing sheet and then they can go out and hunt. I see. That makes sense.

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Yeah. That makes us. Yeah. Thank you. Yeah. 100%. Thank you. Thank you. Yeah.

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There we go. There we go. Hey, Alex Heider here from Canada. I bought the

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boring Fire and Safety Company, but I've changed my mind to say boring, but I love it.

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I, I sell Fire and Safety and commercial cleaning to mainly like

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restaurant owners when you bought it 200 plus. Yeah. And probably manages you

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three in the rob whales. Yeah. Thank you. I told my wife about that. She's like,

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why do you need Alex? Just watch his videos. Yeah. Yes. Anyway, that's a different

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after white milk Friday. Yeah. She's German. So she's very methodical.

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I would like to get at least double the revenue, but because of your workshop,

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I want to go to 10 million one day. But I don't I think let's double it first.

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What's stopping me is that when we introduce the fire suppression for the

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restaurant avatar and we discuss this yesterday, a big key piece we were

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missing was for example, you have this tag here. It's a national fire protection

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code basically. Good to know. Then the one that's 96 needs to

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clean the hood cleaning in restaurants. So we try and introduce that.

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But we have zero sales process for over two decades. The husband and wife

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team that sold it to me didn't believe in that. The phone rings we pick up in

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two rings. That's literally the process. We went down to 20%. Sorry. It's a complex. Yeah.

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Let's get it. Yeah. Exactly. We went we went down 20%. The first time because we tried

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to launch that division last summer. I mean that boat right now. And I have gone down

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another 20% again because I tried to launch it again. Be flexible. So that's what's

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stopping me. All right. The second thing is zero sales as we talked about. Yeah.

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The third thing is I had did some fancy roles and finance that I was telling you about and some

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government, you know, I want some boards and so on and so forth. Haven't posted on LinkedIn.

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I've got 15,000 followers on LinkedIn. Yeah. People have been asking me, hey,

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amen. What are you up to? And I'm a little bit shy to tell them that I'm in fire safety.

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I've tested it out with a few folks here. I say to them, hey, I've been from finance to fire safety.

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The first question is like, why the hell did you do that? Well, you know, it's like a shocker.

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So crazy. So yeah, so just wanted to know what you do a few thumbs up. Yeah. Exactly. Yeah.

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Thanks. So so you have a pretty classic issue. And so this will affect more than one per

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more than just you. So I'll fill in some of what he was explaining. So he's got the restaurants

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as an avatar, right? Which and he also has property managers, right? And they've got like 100 units

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at a time, right? So think of this as these your whales. And you've got your mittes over here.

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And the issue is that he only has three of these and these came super, you know,

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sporadically. There's no process around it. The restaurants also come sporadically, but there's more

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of them, right? And the main hook that he has now is that he also didn't tell you that he bought a

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cleaning business. That's right. We've been in a roll-up place too. Right. So he bought a

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cleaning business and then he uses the cleaning as a way to get into the restaurant. Right? That's

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right. Okay. So do you remember what I told you last night? Yes. Okay. So what did I say?

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You said focus on the the property management persona to build on the fine safety stuff. And

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then after one year of me doing the sales, she said, I need to be in the business because

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yeah, I found fire myself and I talked to you. You said, no, you're going to be out of the business

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in three months. So I was like, well, that's right. That's right. Yeah. So I bought this business

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and I want to be out of the business. And so I quit to my other stuff. Exactly. I have to quit

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teaching and quit everything else. And then a property manager firms nailed the fine safety first.

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And then after a year, then slowly nice them into cleaning. So the key here is that so I'll

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put a nuance into what I said so that you can because I said, I just a lot to take in when we're

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attacking. So there's I did say that. But the other part that we're solving for is it's not that

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that's the solution. It's that I want to solve for the greatest discrepancy between LTV to

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CAC on customers that are going to have these to acquire. Right. Yeah. And so what I want to figure

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out is is it easier and more profitable to get restaurants because even if these guys are

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minutes, there's tons of businesses that can make a killing with minos. There's nothing wrong

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with minos. We just have to look at LTV to CAC. And so like maybe it costs you, you know,

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a hundred dollars to get a restaurant and a restaurant's worth, you know, two thousand dollars

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over the next five years. Twenty to one. Good business. Right. Now these guys might be worth,

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you know, that's supposed to be the dollar sign backwards. There we go. Let's say these guys are

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worth, you know, twenty thousand dollars a year. I know they're not for whatever. Let's just say

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there were twenty thousand dollars a year and it cost you four thousand dollars to acquire them.

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Now in your mind, you're like, man, this is so much more money. But the LTV to CAC ratio is actually

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much smaller. Right. And so what I want to just figure out is what the LTV to CAC is between these

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two things. And I do think that you owning it is an intelligent decision. If you have an inkling

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as to which one of these is more profitable in terms of what it costs versus how much you make,

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then I would start there. But I would focus only on one of them because you just have to get your

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hands dirty and learn the actual sales process. Now I'll bet because you have this cleaning thing,

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if that gets the door open for these restaurants as a pretty easy like foot in the door,

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the light literally, it does. Okay. Well, then it's great. Well, then this one's like,

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property mayors are going to be harder to get. Right. And so if you're like cash looking train,

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which I'm guessing you are, you're in the stress I can feel. Right. I would probably go

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leaning because you can get your foot in the door and get your reps much faster. Yeah.

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And I think you'll learn the sales motion. That might also apply to the property managers later.

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So it's not like you're excluding that. But for right now, and this is what I hope to have

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happen is that you figure out the sales motion for for restaurants with this offer. And you might

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just be like, we're making a lot of money. Let's just keep doing this. And then you can just transfer

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that because I'll also bet kind of like the selling, you know, flipping washes, selling property

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managers can be harder. Yeah. Then selling restaurants. And so if you do eventually want to get out of

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the business, it'll be easier to get out of the business if you make that the customer.

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Real quick, guys, I have a special special gift for you for being loyal listeners of the podcast.

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breaking scaling into 10 stages and across all eight functions of the business. So you've got

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which will probably be about 90 minutes. And so if that's at all interesting, you can go to

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acquisition.com forward slash roadmap, R-O-A-D map roadmap.

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Got it. One last question to follow up on that is we also sell like a third department that does

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safety compliance. That's like only two or three people that do that. So for example, that far

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sign that you have the exit sign. So that needs to be there otherwise the fire department is shut

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you down. Sure. I haven't even touched that department because the feedback I get from the team

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don't sell more stuff because you can't keep up with the current customers. So don't bring more

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any insights on that one. Is it profitable? That one is a subscription model. So yeah,

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I mean you're very profitable. Yeah, it is. It's like when you care a month and revenue, for

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example, okay, cool. And when you clients that pay well and you know, okay, okay, all in

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ghetto companies and things like that. Yeah, so all right, we have this that you said department,

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$2,000. So apartments one person. Yeah, well, it was one person. It was a previous order,

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but she'd be hired three more people. So it's yeah, it was the owner and now you have three people

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there. Correct. Because that was like the key key person risk. So all the information was in

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her head. Remember, there's no processes here, right? The phone just rings. Yeah. Well,

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so I, I, okay, we have to say these one thing. That's all right. So first things first,

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we're going to ignore this. Cool. We're going to ignore that. Yeah, say these, you're going to get

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the sales cycle for doing this off from the front end because that seems to be working for you.

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So I would just get you better at closing these deals and doing all kinds of things. That's a 20-year

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history as well. Great. So that's good. In terms of the cross sell, which is basically what that is,

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I would say table it for now. Not, I mean, I do think the reasoning of we're too busy,

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but we're also not making as much as we want is tough. But the steps of what we're going to do

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here is this is going to be number one. And then the second thing that you're going to tack on

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is the cross sell. Actually, it'll be 1.5 is fixed compliance department

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so that they can actually handle the customers. And then so it's restaurants is number one,

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fix the compliance department. And then you'll start cross selling the compliance services.

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But this will probably take six to nine months to get to here just to be clear. It'll probably take

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six months to learn this maybe three months to turn the department and figure out like you hired

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three people to replace one. I'll bet you two of them aren't doing anything. Especially if they're

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like we're too busy. It's one person who's doing this. There's three of you now you're saying you're

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too busy. Something doesn't out up here. And so you probably like right now your business need has

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four fires. We just have to take one fire. And this is the most important fire which is getting

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new business. So let's solve that one first. Okay. Thanks so much. You've got to see that. Yeah, 100.

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So my name is Michaela. We have a sales agency that sells photographic art and albums to

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consumers on behalf of photographers. Right. This past year we did just under two million. And I

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need to be at five the end of this year. You must be. I must or else or else. And what stopping me

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is definitely just advertising and marketing. We haven't done anything up until this point.

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Our business evolved from selling courses. So selling courses and then people didn't want to

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implement or do the sales appointments themselves. So I built an agency to do it for them.

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Yesterday you mentioned the plumber situation. Right. So my question is right now we

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so I have my course that basically teaches photographers how to run a print driven business

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and do what we do. But it was also like a really great final strategy for this business.

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So I'm not sure whether to use that as a downsell for if they don't qualify for our

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partnership program to put them in the course first or to pull it from behind the paywall

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and turn it into just free content to be top of final. You know what percentage of the revenue is

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coming from the education. Like less than 10,000 a year. It's not something that they could free

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for sure. No question. Yeah. And I would make it free in a couple ways. So one is I'd put it out

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as content, put it on YouTube channel, let it be stream free. You can still have people opt in

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for it if you're running ads and just give them all the links to YouTube ads. And so that would

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both get you leads from the platforms and also from you running ads to them. And it basically

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functions as like a great and like just put an easy call to action up front and then also fall

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with the leads like you have a sales team. So fall with the leads who opt in and just put a

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thank you page schedule. That's like, hey, by the way, if you want us to implement the stuff because

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you don't want to do it, we're happy to show you how we execute this stuff. And just put a sorting

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question on the opt in form. So you can see what revenue level there's that. And so if they're

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let's say minos or not big enough to do what you want to do, then don't have it. Thank you

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page over to the scheduler. And then only have the pixel on the thank you page that has qualified

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leads. And then that way you'll the algorithm will target more qualified leads on a continuous basis.

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Does that make sense? Yes. Thank you. Great. This was good.

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Hi, Alex. My name is Roger Mukaji and I run a cybersecurity company. We sell

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cybersecurity analytics, specifically, we catch hackers in large organizations.

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Primarily sell to the fortune 1000 global 2000. Specific focus on financial services,

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nation states, and retail. We do last year, we did a $34 million up top line.

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Awesome. And our gross margins are about, gee, about 88%.

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Net operating margins are lower. Primarily because we have significant costs in terms of sales

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and marketing and what have you. There's a lot of infrastructure on the back end there.

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Even though the delivery costs are low, the sales and marketing efficiency is not there.

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We'd like to get to about $500 million of revenue in about a year and a half from where we are

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naturally occurring. What's stopping us is that we're sort of addicted to those large deals.

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Right. Take a look at our average deal size. We're talking about about 536K for average deal size

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today. And what that really causes is it causes a significant amount of lumpiness in the business.

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More over there's a lot of platformization in terms of what we have in terms of technology.

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And what I mean by that is we tried to do a land and expand sales model. We sold smaller amounts

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if we will. We tried to transact those and we tried to sell. But ultimately we have an elephant

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hunters on our enterprise sales team who just go and sell the entire fleet of products and one shot

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nine months. It's nine months or bust. Really what's happened over here though is that this is

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a fundamental risk to the business. It's very, very lumpy and sometimes a quarter will be

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will will either make the quarter or lose the quarter based on a particular on one deal.

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And this is particularly frustrating right now because we are P and we've sold the company.

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We've sold the company twice. We sold it from VC to P and then from other P to another P.

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And now we're looking at the third exit here in the next year and a half, which is why we have

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the $500 million AR target. Any suggestions as to how to take an established model where we have

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various covenants and add a minnow or basically a land expand motion without disrupting the existing

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enterprise sales motion. Did you found the business? Yes. Congratulations. Thank you. How long has it

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been? 18 years. Feels like 18. Yeah. I'm like my quarter the day. Okay.

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Okay. So I think that so I mean margins have to be raised or thin if a $500,000 deal is going

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to make or break the quarter. So what part of my misunderstanding? It's not so it's not so much.

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So basically we reinvest a significant amount in growth. So for example, we have 204 sales people

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in in in the company today. And what we generally have been trying to do is rather than optimize on

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the operating margin. We've been reinvesting into the business. So we have sales capacity for

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the next year. Do you trade on EBITDA? We have now we've recently moved from covenants basically

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our leverage covenant move from move from ARR to EBITDA as it's actually it's moving next end of

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this year. So we're preparing for that right now. Yeah, because you'd have to dramatically increase

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EBITDA if you're that's right. So we've actually moved from negative EBITDA to $37.6 million of EBITDA

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this year. All right. So I'll tell you what I might start by what I wouldn't do. Which is I

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probably wouldn't allocate existing resources or people and trying to take people from one to the

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other because it's it's such a different sales motion kind of going after minutes. And so

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I think you'll probably need somebody who's kind of entrepreneurial. It might be a really because

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given the size that you have it might make sense to acquire somebody who already had that's

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if I'm in your shoes because you need to have such a significant amount of scale in order to make

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it you know make a dent in this. It's I'd be looking at somebody who has inferior product to yours

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but has a really good marketing and sales function for minutes and just say listen to your back

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ends trash. We'll plug it into ours but we just want like this. There was a deal that I was looking

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at for Jim much obviously smaller but where there was a marketing agency that was selling like 50 gyms

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a month and they would keep them for three months and they turn out and I was like man I could just

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buy this company and just say keep everything the same just sell our thing. We ended up doing

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it for a different reason but I think that would probably be like the fastest way of getting into

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the minnow market. Start building that from scratch given the fact that no one in the business sells

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to minnow's now given the timeline. I don't think I would I don't think I would try an organic

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growth strategy for minnow's to get from you know three hundred forty or a rhetoric recessive to

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five hundred in 18 months. I don't think I don't think I just I think it'd be really really tough.

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I think that that's that's our sense as well. We were looking at doing the you know organic

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rather right now in organic acquisition there. The catch is also one of maintaining the culture

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of that acquisition that's going to be such a distraction. I mean I think either way it's

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going to be a distraction. I wonder if I know you said that the lumpiness is an existential

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threat to the business. What is sales velocity? So as I mentioned the sales I'm not happy with

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that sales cycle either. It's about nine months. But how many deals a year do you do? So in general so

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right now we have about 40 customers with with ARRs of over a million. Our total customer count

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is approximately a thousand today. Got it. And so we'll we'll add a net new this this year

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of about a hundred and fifty customers. You have a thousand customers three hundred and forty million

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roughly. So annual revenues like three forty-ish per customer and then top four you're disproportionately

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higher. That's right. So we have a long tail so we raised prices and recently now we're looking

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for larger deals. The average yield size has increased as we've grown the company. Yeah. Yeah.

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So if we were looking at the more better new I know as as Rudebentred is I still think that way.

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Oh if I had to make a bet I would probably bet on the better button for the existing sales

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function with you have two hundred and four or forty two hundred four. I'd say four people. Yeah

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two hundred and four sales people. I would probably be thinking like okay I'm dissatisfied with

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this. I'm probably not going to introduce a new variable into the business when I know that if I

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if we just I guess thinking like twelve months in the future if we just nailed one thing we would

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have the highest likelihood impact on us getting to five hundred. We're probably taking the existing

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infrastructure existing deal model and just say like how can we tune this thing up would probably be

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and that's just going to be a lot of rolling sleeves up but I think realistically that that's

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probably and there's probably a lot of bloat right now and I'll bet you that from a cultural

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perspective I know you want to maintain the culture but a bunch of the culture that seems probably

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not as good as you want it to be it's probably a lot I mean especially in like tech sales it's like

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literally the butt end of jokes for lack of work ethic right. So probably putting in almost like

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a Welchian Jack Welch perspective of every quarter bottom 10% gets cut right I think we've

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probably dramatically signal to them that like we need to produce and usually laying off the top

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bottom it's 10% in a business of that size well it'll you will make more money and so actually

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I know we had to derive that you have a bigger business that's probably what my next move would be

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and then I would be looking at so if we're it's kind of funny because this really we're doing

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one more. So this was like a perfect case study here which is we need to get more customers

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where are we doing more are we doing better or are we doing new so new would have been we're

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going to go after minutes or we're going to do an acquisition that's new so we talked through that

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it was like I don't know especially on the timeline is he going to create a hundred and fifty

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million in sales probably not it'd be really tough unless you just did you acquired one that

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it was already doing that's right so then it's okay do we hire more sales guys are better well we

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have a lot of blood on the team right now I'll bet you we could do it better cool okay so who's

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in charge of that team right now and why are they not winning is that yeah yeah so yeah we have

393
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we have a CRO on that team like again he's the incentive on again is completely revenue based

394
00:30:33.260 --> 00:30:40.780
yeah so really my concern more than thing else is I and I keep on hearing this and this is a

395
00:30:40.780 --> 00:30:45.660
topic that we have fairly frequently it ain't broke so don't so don't try to fix it yeah at the same

396
00:30:45.660 --> 00:30:51.820
time I broke though I look at it I'm not happy with the way I mean when we start this company sure

397
00:30:51.820 --> 00:30:56.300
the goal was it was less it was less about revenue and more about ubiquity we said okay we have

398
00:30:56.300 --> 00:31:01.020
the solution I didn't get everywhere yeah and as we sort of learned got wedded to the teeth of the

399
00:31:01.020 --> 00:31:07.900
big deal it's been hard to to break that habit yeah heard so I'll say this and you may not need

400
00:31:07.900 --> 00:31:13.900
to hear this from me but I think that Spanner founders have a special privilege which is that you

401
00:31:13.900 --> 00:31:18.300
know how the company was founded you know how it was made you know how to break it you know how to

402
00:31:18.300 --> 00:31:23.500
bend the rules and so if you started this the first few sentences you said was this is an

403
00:31:23.500 --> 00:31:27.740
existential threat to the business and so if the private equity firm is not recognizing it is an

404
00:31:27.740 --> 00:31:31.740
existential threat it's because they don't have the same information that you do because they

405
00:31:31.740 --> 00:31:35.580
couldn't they haven't been around the business for 18 years but you do and so whatever pulse you

406
00:31:35.580 --> 00:31:40.540
have I would probably trust your gut and say no this is a threat so like when you say it ain't

407
00:31:40.540 --> 00:31:45.020
broke don't fix it I say it is broken and we do need to fix it because we will not hit the 500

408
00:31:45.020 --> 00:31:49.340
million dollar goal if we continue a status quo and if we if we don't hit that goal then all of a

409
00:31:49.340 --> 00:31:54.060
sudden you know one of the private agree guys that are he says all businesses increase in value over

410
00:31:54.060 --> 00:31:59.580
time unless they don't in which case they are worth nothing and so you are you from that perspective

411
00:31:59.580 --> 00:32:03.500
that's kind of where you're at right now and so I think it would make sense for either you to

412
00:32:03.500 --> 00:32:07.900
parachute in and you might need somebody who's a little bit more entrepreneurial a little bit more

413
00:32:07.900 --> 00:32:14.940
renegadey to go in and kind of rattle some cages and say we need to we need to do better and I think

414
00:32:14.940 --> 00:32:20.300
that's probably going to be what will be required and it'll and I focus obviously we think I talk a

415
00:32:20.300 --> 00:32:28.460
lot about behavior but what are the behaviors that we're going to change and how can we I mean

416
00:32:28.460 --> 00:32:32.460
we solve sales problems in every organization by more role-playing that like role-playing is

417
00:32:32.460 --> 00:32:37.580
their eyes blade that's how we do it and that's fundamentally how we fix sales functions because

418
00:32:37.580 --> 00:32:42.700
we can just give rapid feedback and so I think you need people who it's not like getting all the

419
00:32:42.700 --> 00:32:47.340
sales seem to attend a ra ra event and having some sales speakers speak for eight hours is not

420
00:32:47.340 --> 00:32:51.340
going to do anything right I think it's you need to have probably almost like a SWAT team of

421
00:32:51.340 --> 00:32:56.380
people going in and then retraining and quickly red red yellow greening the team as is and be like

422
00:32:56.380 --> 00:33:00.540
this guy sucks he's out this guy has potential about still needs to learn this guy's great let him

423
00:33:00.540 --> 00:33:06.300
do his thing and I mean that might take 12 months but at least at the end of that 12 months like

424
00:33:06.300 --> 00:33:10.860
your sales velocity will increase the the deal cycle will probably shorten the deal average deal

425
00:33:10.860 --> 00:33:14.780
value will go up and those are the things that I think would have the highest likelihood of getting to

426
00:33:14.780 --> 00:33:20.220
the 500 it's from my advantage I appreciate it thank you thank you no matter what thank you

427
00:33:24.300 --> 00:33:28.620
Alex hello cool workshop should more of these was that you should do more of these

428
00:33:28.620 --> 00:33:35.500
ah yeah my name is Antonio well we built the dualingo for learning how to draw SWAT we basically

429
00:33:36.300 --> 00:33:43.420
sell diet personalized learning okay you aspiring artists so we currently do 60k in MRR

430
00:33:43.500 --> 00:33:48.860
right the long-term goal is it would like to exit to a company like dualingo

431
00:33:48.860 --> 00:33:54.700
right like joy tunes right now the more short-term thing is getting to a quadruple

432
00:33:54.700 --> 00:34:03.020
oh get to a quadruple revenue or like valuation essentially in 18 months yeah what's the stopping

433
00:34:03.020 --> 00:34:08.540
us right now is traffic primarily we have two acquisitions channels which is organic word of

434
00:34:08.540 --> 00:34:16.860
math and then social media around 600,000 followers across three channels your team eloquently told me

435
00:34:16.860 --> 00:34:22.460
do more I just wanted to know at what point would you say okay now we need to do better instead of

436
00:34:22.460 --> 00:34:28.380
only more that you need to do it more and I'm for sure and then and then at what point is just for

437
00:34:28.380 --> 00:34:35.980
the 4x that would just be do me bro yeah I mean for sure that's it yeah you're so again this is

438
00:34:35.980 --> 00:34:41.020
not a slight but like 60,000 dollars a month like yours you're tiny yeah so we have to we

439
00:34:41.020 --> 00:34:44.860
do you have to do so much more so you said you get some from organic was the other source

440
00:34:46.060 --> 00:34:51.500
social social media so YouTube Instagram TikTok so all traffic is from organic

441
00:34:52.140 --> 00:34:56.620
well basically yeah okay do you run ads no yeah so I think it's unlikely that you're

442
00:34:56.620 --> 00:35:00.460
going to quadruple this year off organic unless you just get really good at it really fast which

443
00:35:00.540 --> 00:35:08.860
could and so I would say it would probably like if you really if you have to hit four or more it would

444
00:35:08.860 --> 00:35:13.900
be either an ad funnel or if you look at what do a lingo did they did a lot of influencer

445
00:35:13.900 --> 00:35:17.740
campaign yeah of all these guys who teach languages or speak different languages and say hey

446
00:35:18.540 --> 00:35:22.940
you know go sign up for do a lingo yeah and that might be a really good strategy given there so

447
00:35:22.940 --> 00:35:31.100
many artists on YouTube and Instagram and they typically are horrendous at monetizing yes right but

448
00:35:31.100 --> 00:35:36.540
it's a double-edged sword because they're usually incentivized to sell their own courses yeah there's

449
00:35:36.540 --> 00:35:41.740
also a bunch that just don't and so a big picture I just don't think you're going like I don't think

450
00:35:41.740 --> 00:35:46.940
you're gonna quadruple your following or like your organic views I mean maybe you could right but

451
00:35:47.580 --> 00:35:52.380
what's the funnel that you have right now in terms of how you get customers it's affiliate

452
00:35:52.380 --> 00:35:58.300
links on the on the social media channels that we can back the link and again what's the price

453
00:35:58.300 --> 00:36:05.180
sorry what's the price we have three prices we have nine 29 and 99 and the obviously the 29 is

454
00:36:05.180 --> 00:36:10.300
most popular 70 percent of people are on the annual subscription okay that's good yeah so good

455
00:36:10.300 --> 00:36:17.580
on annual and then what what's LTV for the customers around two hundred dollars got it and virtually

456
00:36:17.580 --> 00:36:22.380
no cash it's like twelve dollars well it's even in twelve dollars if you take your organic cost

457
00:36:22.380 --> 00:36:26.620
basically your concept yeah it's pretty amazing okay how many pieces of content are you putting out

458
00:36:27.420 --> 00:36:36.380
across all channels we'd say about 10 to 12 per per week okay cool so yeah let's go more for sure

459
00:36:36.460 --> 00:36:41.980
let's do more yeah I I I remember back to my original statement to put this in context we put out

460
00:36:41.980 --> 00:36:48.620
450 a week so like you definitely have a room yeah yeah yeah so yeah I mean you want to you want

461
00:36:48.620 --> 00:36:55.820
to build this thing so I mean you know 10 10 a week is like one and a half a day yeah so yeah

462
00:36:55.820 --> 00:37:00.060
so just do that until you hit the constraint of people operations basically yeah and then

463
00:37:00.620 --> 00:37:05.340
and then at some point you look at if you had to pinpoint anything that could be better in terms

464
00:37:05.340 --> 00:37:10.060
of two race engagement all of that why I'd have to look at all the content and I have a look at

465
00:37:10.060 --> 00:37:13.340
the funnel because I'm sure there's things we can find on the funnel's increasing conversion so

466
00:37:13.340 --> 00:37:17.260
if you're at like 1.5 it's I think we get this to three it's like there's a double great so now

467
00:37:17.260 --> 00:37:20.860
we'll have to double our impressions well if we double our number of posts we have a double

468
00:37:20.860 --> 00:37:25.500
there on the front end we have a double in conversions so there's our 4x but if we you know I like

469
00:37:25.500 --> 00:37:30.220
to say like how do we leave no doubt with this goal so it's okay well if we if we 10x the amount

470
00:37:30.220 --> 00:37:35.740
of volume of content we're putting out and we double our conversion and we increase our follow-up

471
00:37:35.740 --> 00:37:39.980
on the back end and we look at our pricing strategy and see if there's maybe some holes that we

472
00:37:39.980 --> 00:37:45.580
can find there right then it's well there's a 40 x and so if we just suck by one tenth of that

473
00:37:45.580 --> 00:37:50.140
we'll still hit the four right so that makes sense yeah that's a 10 that's how I tend to look at

474
00:37:50.140 --> 00:37:54.940
those types of holes I wouldn't I don't want to hit a quadruple I'll shoot for 40 and if we miss

475
00:37:54.940 --> 00:38:00.060
it we'll hit 20 right yeah it makes sense rather than solve for four okay the last yeah I

476
00:38:00.060 --> 00:38:05.500
shouldn't maybe like you have well maybe still have like the the key man issue of like you're the

477
00:38:05.500 --> 00:38:13.180
face of right this I have that but at what point would you say okay I'm the key man what's the first

478
00:38:13.180 --> 00:38:18.780
sort of talent I would bring on the team if we scale in terms of content and everything and we

479
00:38:18.780 --> 00:38:24.620
hit like a wall of okay I can produce anymore and I have some only in front of the camera 24

480
00:38:24.620 --> 00:38:29.260
side I don't even want to answer the question because it's so far from where you're at right now

481
00:38:29.260 --> 00:38:35.660
right doesn't matter right it just doesn't matter right because you'll have my answer will also be

482
00:38:35.660 --> 00:38:40.220
irrelevant because by the time you do have that problem you have different resources different

483
00:38:40.220 --> 00:38:44.780
teammates more cash and you'll have a different solution that will then make sense then what me

484
00:38:44.860 --> 00:38:50.060
trying to predict but that's going to look like 12 months from now is going to be but really

485
00:38:50.060 --> 00:38:55.020
the the the scaling that it will look like in the short term is how do we get more out of you

486
00:38:55.660 --> 00:39:00.060
and it's going to be basically you getting as much assist as you can so that you can reduce more

487
00:39:00.860 --> 00:39:04.300
and so you're like well what I'm going to be on camera 24 as they I'm not on camera 24 as they

488
00:39:04.300 --> 00:39:09.900
we got 450 so like we're you know we're doing I don't know what the math is there but more

489
00:39:10.860 --> 00:39:17.100
there right I guess we're doing 40 40 times more content than you are and I'm not on camera 24

490
00:39:19.100 --> 00:39:29.820
thanks cool awesome all right yeah easy wow