WEBVTT

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Hey guys, welcome back to the game.

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I have been getting your feedback and y'all have been saying

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you like the more interactive content,

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you like the more real business content,

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which hallelujah, so do I.

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I prefer actually talking about business rather than not.

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And so I'm stoked about it

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and I'm gonna keep doing more of this

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because I love it.

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And so this is full of business owners.

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You ask me questions in person

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about their particular businesses.

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What's really nice about this

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is that there were so many common through lines

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that applied to every business in the room.

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Okay, I've got this other opportunity.

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Should I pursue that or should I keep the one a month?

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I've got multiple customers that I'm serving.

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Which one should I switch?

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One's easy to get, one's harder to get.

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The other one that's harder to get is more profitable.

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The market's getting hard right now.

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How do I continue to scale despite that?

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And a few more questions that affect

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just about every business owner enjoy.

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Okay, Q&A stuff.

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So, typically I have a longer preamble

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that I'll do going into this.

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But before I do,

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do you guys enjoy this morning?

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Yes.

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Okay, awesome.

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It was cool to meet other people from the portfolio.

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Okay, yeah.

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So those are the people who actually do the stuff

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that we do kind of every day.

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And hopefully I kind of fulfilled on the promise

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that I made yesterday that yesterday was all kind of like

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theoretical, this kind of the framework

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that we think about creating value.

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Today was all about kind of tactics, right?

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And actually making sure that you're asking the right questions

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to move your company forward the fastest.

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So, the big thing, hopefully that I would like

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for you to get out of this is making sure

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that you're prioritizing the right things.

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And so I have had the fortune or misfortune

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depending on how you see it,

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of sitting on a lot of quarterly meetings

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and annual planning.

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And so I have a very simple framework

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that I walk through

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for when we are figuring out what matters most.

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And if we think about strategy as prioritizing

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limited resources, time, money, you,

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to unlimited potential actions,

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then the better we do that,

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the higher the return we get on what we have

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and what we put in.

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So fundamentally that is leverage,

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getting more for you to put in.

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So every task that you have,

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because right now you probably have this big list of to-dos,

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right, you have this list of 100 different notes

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that you're thinking about for the cleaning business

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and you're like, okay, which one am I gonna start with first?

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And when you get on the plane tomorrow,

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you'll have your empty page and you'll have like,

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okay, what am I actually going to do, right?

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So this is how I think through it.

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And I would teach this to your teams

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because they will come to you with ideas all the time.

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And being able to say no and here's why,

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I think helps a lot.

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So number one is every single goal

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that you have in the business

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or any action that you're going to take

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has to increase the number of customers

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that you're going to get,

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increase the lifetime gross profit per customer

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or decrease the risk associated

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with making action one or action two.

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And so when someone comes with some sort of proposal

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of like, hey, I would like to use some

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of our limited resources to do something,

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you say great, which one of these things

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is it gonna do?

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Is this thing that you wanna do going to increase

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the number of customers you're going to get?

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Is it going to increase how much they're worth

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or is it going to decrease our risk as a business,

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aka increase in the likelihood

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that these two continue to occur?

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And if they can't clearly draw a line

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to how what they want to do changes these things,

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you should probably not do it.

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So I'll walk you through an example.

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So let's say Sharon comes up to us and says,

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hey, I think we should redesign the site.

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And you're like, okay, why?

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Well, I mean, I think it just looks a little outdated.

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Right, and you say, okay, understood.

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Well, how much do you think that's gonna cost money wise?

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And she might say something like, well,

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I think you know, we get a firm in,

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maybe like 25 grand or something like that.

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So like do a full rehaul.

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And you're like, all right, got it, how long?

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About eight weeks.

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Okay, what internal resource do you need?

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Probably need to take Tom and Bill

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and put them on it full time.

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Okay, great.

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And what do you expect is gonna increase throughput

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for the business?

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I don't know, I guess, you know,

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opt-in rate could go up by 10%,

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you probably wouldn't say that,

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but let's just say she did say that.

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I think we get a site wide opt-in increase by 10%.

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Okay, great.

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Is there anything else that we can do for $25,000

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and eight weeks and two of our people full time

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that can get us more than 10%.

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And if the answer is yes,

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then we shouldn't do that idea, that Sharon's idea,

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we should do the other one instead.

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And so fundamentally, the thing is is that

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there's lots of very logical reasons

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of things that can increase the business.

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The question isn't whether it's going to work.

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It's but to what degree will it work?

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How much is it going to work?

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And fundamentally the best entrepreneurs

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get the highest returns for the things they put in.

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That's the game.

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And so I think about this all the time

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because the highest leverage moves

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are oftentimes moves that are off the board.

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They're boards, they're moves that you don't see.

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And that's where sometimes you meet somebody

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who's in your industry and all of a sudden,

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they change your paradigm

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and they show you a different move

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that you get 10 times more for what you put in

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rather than continue to play

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the kind of incremental game that you're on.

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Now, that being said,

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you know what, I'm going to explain this,

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I think it's really worth it.

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So one of the biggest breakthroughs

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that I had as an entrepreneur

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was my understanding of change and cost of change.

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So I'm going to show it a little visual here.

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Let's say this is normal business function.

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Your business is moving, everything's fine.

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Okay, now let's say that you change something

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in your sales process

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because you think it's going to get better.

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Well, this is what's going to immediately happen,

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which is that you're going to go down by about 20%.

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This is just from pattern recognition

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from doing this for a decent amount of time.

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You change stuff, basically your team has to relearn

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a new process, customer success, marketing,

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onboarding content, whatever.

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You're going to go down by 20%

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because they just don't know what they're doing.

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Okay, so if they're down by 20%,

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and you thought you were going to get a 5% improvement

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from this thing, if it worked,

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is it really worth the bet?

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No.

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Now, this is where it gets really hairy

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because some people are like, well, you know what,

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it'll improve by 5% a month and by month six,

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I'll be plus 5%.

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But let's be real.

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Month two, you're going to think of something else.

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And you're going to be a year again.

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And so what this has translated for me is two things.

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One, and I'm going to be crude on purpose here.

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Shumps, some shit stays fucked.

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And so what I mean by that is that there are things

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that are in your business that are wrong

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and that you're like, this drives me nuts.

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And that's okay.

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And there's tons of things.

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There's literally have a list.

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It's Alex's big list of ideas.

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It's six pages long of things

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that I think we should do better at acquisition.com.

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And whenever I get up and I see people breathe for a moment,

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I'm like, I'm going to pull another one off the list.

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I'm going to play on this there days out.

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It's going to be great.

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But the thing is is that I appraise those things

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that can get better by, can it at least improve

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this process or the overall business by over 20%.

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And so that's my rule of thumb.

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If it's not going to, if I don't have strong confidence

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that this will have a more than 20% lift,

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I'm not willing to take a guaranteed 20% cut.

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Because what you'll find is that

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if you actually do none of these things,

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this is what happens in reality.

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People just get better at doing their jobs.

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People just get more efficient.

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Humans don't want to work as hard.

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They find better ways.

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And so not changing things in and of itself

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oftentimes does result in improvement.

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And so if I have a guaranteed cost of 20%,

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and basically a fixed improvement of five to 10%

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that I'm going to get from doing nothing,

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I know of a 30% spread for change.

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You've got to be really sure that it's worth the bet.

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So this took me way too long to really understand.

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And so I would encourage you,

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if you have this big list of things coming from here,

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pick the three that you think are absolutely,

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there's no question in your mind

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are going to increase the business

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and cost you the least amount of operational risk

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in order to implement.

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Okay.

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So, going back to this.

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And now I'll go choose it is.

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Let's say that we say,

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all right, we want to increase a number of customers.

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Great.

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So let's say to do that,

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we want to double our sales team.

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Okay.

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So when we do that,

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we have three options for any strategy.

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And if you follow my stuff,

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hopefully you should just look familiar.

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But either we're going to do more of what we're already doing.

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We're going to do what we're doing better

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or we're going to do something brand new.

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So, if you're sub one million,

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you almost always have to do more, period.

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You're just pretty much like,

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there's a math explanation behind it.

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But basically, if you're closing it 25%,

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your sales guys are and you're like,

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okay, I could spend my time trying to get the sales guy better

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and maybe I could go from 25% to 35%,

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okay, that would be material.

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Or I could just hire another salesperson,

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salesperson and double the business.

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Well, you should probably just hire the second salesperson

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and double the business.

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When you get bigger, when you have 20 sales people,

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if you wanted to have, let's say,

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you're closing the same percentage,

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25% close, right?

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If you wanted to go from 25 to say 35,

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in order for you to make that same increase,

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you'd have to get like eight more sales guys.

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So at that point, it's like, well,

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maybe it makes more sense for us to kind of retrain the team.

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And that would be a better rather than a more.

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And so, math wise, you can just math out,

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00:09:47.080 --> 00:09:48.680
which one of these actually makes more sense

267
00:09:48.680 --> 00:09:51.320
based on the risk and the cost associated with basically

268
00:09:51.320 --> 00:09:53.840
do whatever path you're choosing to take.

269
00:09:53.880 --> 00:09:55.040
That makes sense.

270
00:09:55.040 --> 00:09:58.080
Okay, so we wanted to get more customers.

271
00:09:58.080 --> 00:09:59.960
We said, okay, could we improve our close rate?

272
00:09:59.960 --> 00:10:01.040
Or should we get more sales guys?

273
00:10:01.040 --> 00:10:02.680
We say we're gonna get more sales guys.

274
00:10:02.680 --> 00:10:05.760
And then if I see quarter of a quarter,

275
00:10:05.760 --> 00:10:07.960
that I have the same objective,

276
00:10:07.960 --> 00:10:11.640
and it hasn't happened, I usually have a who issue.

277
00:10:11.640 --> 00:10:14.080
And so one of the things that I made a lot of mistakes

278
00:10:14.080 --> 00:10:18.440
with this early on, and I would say even midway on,

279
00:10:18.440 --> 00:10:21.080
maybe even three quarters of the way onto,

280
00:10:21.080 --> 00:10:22.880
was that I would come up with a plan,

281
00:10:22.880 --> 00:10:24.600
I would check this out, I think it's a good return,

282
00:10:24.600 --> 00:10:25.640
I think it's low risk.

283
00:10:25.640 --> 00:10:29.480
And then two quarters in a row, it hasn't happened yet.

284
00:10:29.480 --> 00:10:31.000
And so then my immediate assumption was,

285
00:10:31.000 --> 00:10:33.840
I must have done something wrong, this is a bad plan.

286
00:10:35.000 --> 00:10:38.120
More times than not, the plan is not that bad.

287
00:10:38.120 --> 00:10:39.800
You just have a bad person doing it,

288
00:10:39.800 --> 00:10:41.320
or somebody who's incompetent.

289
00:10:41.320 --> 00:10:45.400
And I used to have a lot more like, you know what?

290
00:10:45.400 --> 00:10:48.040
Last two quarters, I know Sharon's gonna turn her around.

291
00:10:48.040 --> 00:10:50.000
I think this is gonna be her quarter.

292
00:10:50.000 --> 00:10:52.440
And I just don't have enough time for that anymore.

293
00:10:53.600 --> 00:10:57.360
I want things to improve, we're on a mission to do

294
00:10:57.360 --> 00:11:00.400
what we wanna do, and I just really need competence.

295
00:11:01.520 --> 00:11:03.080
And so at the end of the day,

296
00:11:03.080 --> 00:11:05.000
I think we do share it at a disservice,

297
00:11:05.000 --> 00:11:07.160
because there's a company that has mediocre standards

298
00:11:07.160 --> 00:11:10.880
that she will be welcome to in open arms and feel at home

299
00:11:10.880 --> 00:11:13.640
and find her brethren be able to move up in that company,

300
00:11:13.640 --> 00:11:15.720
because everyone there sucks and she's mediocre.

301
00:11:15.720 --> 00:11:18.080
And so by, imagine the fulfillment

302
00:11:18.080 --> 00:11:20.720
that Sharon could get in that company compared to yours.

303
00:11:20.720 --> 00:11:23.720
And I feel like I owe it to her to release her to that.

304
00:11:23.720 --> 00:11:25.960
And so I wanna, you know,

305
00:11:27.720 --> 00:11:28.880
release it or free agency.

306
00:11:28.880 --> 00:11:33.360
Okay, so jokes aside, let's get into Q&A.

307
00:11:33.360 --> 00:11:36.320
I just like this as a backdrop for when you're making, okay,

308
00:11:36.320 --> 00:11:38.560
which thing am I going to be focused on

309
00:11:38.560 --> 00:11:39.600
so that it's gonna move my company

310
00:11:39.600 --> 00:11:41.880
for the most in the short of spare time?

311
00:11:41.880 --> 00:11:43.040
So guys, what you're listening to

312
00:11:43.040 --> 00:11:45.840
is one very mini-school sliver of the skill and workshop

313
00:11:45.840 --> 00:11:48.160
that we run here at acquisition.com in Vegas

314
00:11:48.160 --> 00:11:49.240
at our headquarters.

315
00:11:49.240 --> 00:11:50.680
If you wanna be in the room

316
00:11:50.680 --> 00:11:53.160
and you've got exactly what you need to do scale,

317
00:11:53.160 --> 00:11:54.400
then come check it out.

318
00:11:54.400 --> 00:11:55.840
Obviously you've got to be a legit business owner,

319
00:11:55.840 --> 00:11:56.480
you've got to have employees,

320
00:11:56.480 --> 00:11:58.080
you've got to have a revenue, all that kind of good stuff.

321
00:11:58.080 --> 00:11:59.360
I think the room that this was,

322
00:11:59.360 --> 00:12:00.960
I think the average is over three million

323
00:12:00.960 --> 00:12:01.920
in terms of business size,

324
00:12:01.920 --> 00:12:03.680
so pretty legit businesses.

325
00:12:03.680 --> 00:12:06.000
And if you want the easiest link in the world,

326
00:12:06.000 --> 00:12:08.920
acq.com for a slash go.

327
00:12:10.600 --> 00:12:12.360
Hello, my name is Zion.

328
00:12:14.600 --> 00:12:18.000
We do 1.1 to 1.2 million in revenue a year.

329
00:12:18.000 --> 00:12:19.720
Which one is it?

330
00:12:19.720 --> 00:12:20.560
1.1.

331
00:12:20.560 --> 00:12:21.400
Cool.

332
00:12:21.400 --> 00:12:26.720
I would like to be at 10 million in revenue.

333
00:12:26.720 --> 00:12:29.640
I make one to 100 million a year in there.

334
00:12:31.640 --> 00:12:32.480
You're good.

335
00:12:33.960 --> 00:12:36.560
This is what's stopping me, I believe.

336
00:12:36.560 --> 00:12:40.040
Focus skill deficiency and belief.

337
00:12:40.040 --> 00:12:41.520
Okay.

338
00:12:41.520 --> 00:12:43.560
I have two avatars,

339
00:12:43.560 --> 00:12:46.640
which is working professionals and local government.

340
00:12:49.000 --> 00:12:54.000
And I believe I need to choose between the two avatars.

341
00:12:54.000 --> 00:12:56.000
What do you sell again?

342
00:12:56.000 --> 00:12:59.000
So support and accommodation.

343
00:12:59.000 --> 00:13:03.440
So basically, children who come from challenge backgrounds

344
00:13:03.440 --> 00:13:06.440
who have been in care come to us.

345
00:13:06.440 --> 00:13:08.440
We basically help them build their

346
00:13:08.440 --> 00:13:09.680
semi-independent living skills.

347
00:13:09.680 --> 00:13:12.480
So we help them build their independent skills.

348
00:13:12.480 --> 00:13:14.680
So when they reach a certain age,

349
00:13:14.680 --> 00:13:16.360
they can then move on to their own accommodation

350
00:13:16.360 --> 00:13:17.560
and live independently.

351
00:13:17.560 --> 00:13:18.960
So these are kids in the system, right?

352
00:13:18.960 --> 00:13:21.400
So like cooking skills, balancing a budget.

353
00:13:21.400 --> 00:13:23.240
Yeah, personal development, work, life skills.

354
00:13:23.240 --> 00:13:25.400
Yeah, yeah, yeah.

355
00:13:25.400 --> 00:13:28.640
Now, the issue I have is.

356
00:13:28.640 --> 00:13:30.160
How do you make money?

357
00:13:30.160 --> 00:13:31.120
How do you make money?

358
00:13:31.120 --> 00:13:32.680
So we make money from our support services

359
00:13:32.680 --> 00:13:33.960
and our accommodation.

360
00:13:33.960 --> 00:13:38.040
So basically, we rent properties from landlords

361
00:13:38.040 --> 00:13:40.560
who have real estate.

362
00:13:40.560 --> 00:13:44.840
And then we sublet the rooms.

363
00:13:44.840 --> 00:13:49.000
And then we charge the government a support package

364
00:13:49.000 --> 00:13:51.760
for supporting the young people.

365
00:13:51.760 --> 00:13:53.040
And then obviously, there's a risk premium

366
00:13:53.040 --> 00:13:55.960
because these are challenge kids.

367
00:13:55.960 --> 00:13:58.080
And then, yeah, we just make the spread, basically.

368
00:13:58.080 --> 00:14:00.000
OK, so the government is your customer?

369
00:14:00.000 --> 00:14:02.080
Yeah, OK, got it.

370
00:14:02.080 --> 00:14:05.320
OK, so the issue is focus and avatar.

371
00:14:05.320 --> 00:14:07.000
Why is that a problem?

372
00:14:07.000 --> 00:14:12.640
OK, so basically, because we have two avatars.

373
00:14:12.640 --> 00:14:17.680
So obviously, the asset we have control of is obviously

374
00:14:17.680 --> 00:14:18.400
the property.

375
00:14:18.400 --> 00:14:21.720
So we can use that for different services.

376
00:14:21.720 --> 00:14:24.360
So we can have rent out to professionals

377
00:14:24.360 --> 00:14:27.200
who need rooms on a short-term basis, which we do.

378
00:14:27.200 --> 00:14:29.880
Or we can rent out rooms to kids in care

379
00:14:29.880 --> 00:14:32.360
who need support and accommodation.

380
00:14:32.360 --> 00:14:36.640
My issue is, which one do I pick?

381
00:14:36.640 --> 00:14:38.680
I don't know if that is.

382
00:14:38.680 --> 00:14:40.320
OK, say the two people that you're

383
00:14:40.320 --> 00:14:41.680
running it out to is the difference.

384
00:14:41.680 --> 00:14:45.000
OK, so working professionals is one.

385
00:14:45.000 --> 00:14:46.000
OK.

386
00:14:46.000 --> 00:14:47.640
The second is kids in care.

387
00:14:47.640 --> 00:14:48.160
The kids.

388
00:14:48.160 --> 00:14:48.680
Yeah.

389
00:14:48.680 --> 00:14:51.000
What's the revenue split now?

390
00:14:51.000 --> 00:14:53.880
Right now, just working professionals.

391
00:14:53.880 --> 00:14:55.760
So the whole kids thing doesn't exist right now?

392
00:14:55.760 --> 00:14:56.360
Not the moment.

393
00:14:56.360 --> 00:14:57.360
No.

394
00:14:57.360 --> 00:14:59.200
But wait, but wait, but I'll tell you why.

395
00:14:59.200 --> 00:14:59.680
I'll tell you why.

396
00:14:59.680 --> 00:15:00.440
I'll tell you why.

397
00:15:00.440 --> 00:15:01.360
So we were doing it.

398
00:15:01.360 --> 00:15:01.840
We were doing it.

399
00:15:01.840 --> 00:15:03.880
I was like, this guy's doing the Lord's work as well.

400
00:15:03.880 --> 00:15:08.400
I am, I am like, he's like, for now, I'm just a landlord.

401
00:15:08.400 --> 00:15:11.960
So we actually, so I actually scaled it from one to six, right?

402
00:15:11.960 --> 00:15:15.520
And my business partner had an inappropriate relationship

403
00:15:15.520 --> 00:15:17.120
with one of the kids in care.

404
00:15:17.120 --> 00:15:18.440
And it completely fucked me.

405
00:15:18.440 --> 00:15:20.840
I mean, we're doing really, technically he fucked her.

406
00:15:20.840 --> 00:15:22.160
Yeah.

407
00:15:22.160 --> 00:15:26.760
Well, we don't know if he fucked her, but it was inappropriate.

408
00:15:26.760 --> 00:15:27.760
It was in the process.

409
00:15:27.760 --> 00:15:30.520
With the highest Q&A I've had today, for sure.

410
00:15:30.520 --> 00:15:32.240
All right, keep going.

411
00:15:32.240 --> 00:15:34.640
And it's like, it really ruined the brand.

412
00:15:34.640 --> 00:15:36.160
I mean, we're doing really, really well.

413
00:15:36.160 --> 00:15:38.560
And it's like, obviously, due to safeguarding and risk,

414
00:15:38.560 --> 00:15:40.120
we kind of started losing all our contracts

415
00:15:40.120 --> 00:15:41.560
and they took what their kids out.

416
00:15:41.560 --> 00:15:43.120
I've got empty properties.

417
00:15:43.120 --> 00:15:45.200
So I just went to the professionals just to keep, obviously,

418
00:15:45.200 --> 00:15:45.960
paying my bills.

419
00:15:45.960 --> 00:15:46.480
Got it.

420
00:15:46.480 --> 00:15:50.400
OK, that helps a lot more context wise.

421
00:15:50.400 --> 00:15:53.320
Just thought you'd sneak that by me.

422
00:15:53.320 --> 00:15:56.080
OK, that's what your partner did.

423
00:15:56.080 --> 00:15:58.080
Anyways.

424
00:15:58.080 --> 00:16:00.600
OK, so how quickly are you able to fill it up

425
00:16:00.600 --> 00:16:02.160
with the professional thing?

426
00:16:02.160 --> 00:16:03.880
One day.

427
00:16:03.880 --> 00:16:06.920
No, so you can fill up all your properties using the professionals.

428
00:16:06.920 --> 00:16:08.600
Yeah, well, we've been seven days.

429
00:16:08.600 --> 00:16:10.120
OK, so is it just that your heart's not

430
00:16:10.120 --> 00:16:12.360
in it with the professionals and you're going to be vaccinated?

431
00:16:12.360 --> 00:16:13.040
OK, cool.

432
00:16:13.040 --> 00:16:16.480
Well, first off, kudos.

433
00:16:16.480 --> 00:16:17.280
How difficult is it?

434
00:16:17.280 --> 00:16:18.880
How quickly can you fill it up with kids?

435
00:16:18.880 --> 00:16:19.440
OK, so long.

436
00:16:19.440 --> 00:16:20.200
Free to six.

437
00:16:20.200 --> 00:16:21.400
Yeah, longer, free to six months.

438
00:16:21.400 --> 00:16:23.120
Yeah, I'm guessing you have a cash flow issue in the meantime.

439
00:16:23.120 --> 00:16:24.720
Yeah, yeah, so obviously, the professional

440
00:16:24.720 --> 00:16:26.200
is to generate a cash flow to it.

441
00:16:26.200 --> 00:16:29.040
Yeah, I think you've got to bridge the gap to where you want to go.

442
00:16:29.040 --> 00:16:32.600
So like, basically, sometimes you got

443
00:16:32.600 --> 00:16:35.280
to do what you don't want to do to get to what you do want to do.

444
00:16:35.280 --> 00:16:36.920
You know, like, as much as I could be like,

445
00:16:36.920 --> 00:16:38.440
you should only serve the one person like,

446
00:16:38.440 --> 00:16:40.760
I think that you have the properties you already have leases on.

447
00:16:40.760 --> 00:16:43.000
You have the commitments that you have to stick with.

448
00:16:43.000 --> 00:16:44.720
Fill up the properties with the working professionals

449
00:16:44.720 --> 00:16:46.320
so that you can create cash flow.

450
00:16:46.320 --> 00:16:48.840
I would consider just rebranding the old one

451
00:16:48.840 --> 00:16:52.880
given your partner and then just kind of relaunching

452
00:16:52.880 --> 00:16:54.800
if you can bandwidth wise in parallel.

453
00:16:54.800 --> 00:16:56.800
But just knowing that this is going to be basically an asset

454
00:16:56.800 --> 00:16:58.080
that you're going to sunset.

455
00:16:58.080 --> 00:17:00.560
Is there a huge amount of like operational resources

456
00:17:00.560 --> 00:17:04.040
after it gets filled up that you have to deploy to like, manage it or no?

457
00:17:04.040 --> 00:17:05.920
The kids in care professional professional.

458
00:17:05.920 --> 00:17:06.680
No, easy.

459
00:17:06.680 --> 00:17:08.880
OK, yeah, I will say this is side note.

460
00:17:08.880 --> 00:17:11.040
Notice how easy it is to like make money in this other thing

461
00:17:11.040 --> 00:17:11.880
versus the hard thing.

462
00:17:11.880 --> 00:17:13.040
In general, if you weren't like,

463
00:17:13.040 --> 00:17:14.080
I really want to help the kids.

464
00:17:14.080 --> 00:17:16.360
I'd be like, dude, just do the really easy one.

465
00:17:16.360 --> 00:17:17.600
No, you're like, it takes nothing.

466
00:17:17.600 --> 00:17:19.080
I could fill it up in a day, cash flows,

467
00:17:19.080 --> 00:17:22.040
whatever, like, like, do more of that.

468
00:17:22.040 --> 00:17:23.600
If the goal was money, yeah.

469
00:17:23.600 --> 00:17:26.720
If the goal, like, OK, it's the goal, the goal is money.

470
00:17:26.720 --> 00:17:31.000
I mean, I can, I can, I can, I can feel for professionals,

471
00:17:31.000 --> 00:17:32.880
we can fill houses within seven days

472
00:17:32.880 --> 00:17:36.520
and what I put out my build out, I get it back within seven days.

473
00:17:36.520 --> 00:17:38.160
And I just keep doing that.

474
00:17:38.160 --> 00:17:40.920
And the constraint is obviously finding the leases, right?

475
00:17:40.920 --> 00:17:45.200
So my plan was to build it out, do as many as we can,

476
00:17:45.200 --> 00:17:48.160
use the cash flow to then obviously open up the kids home

477
00:17:48.160 --> 00:17:49.160
and it may be converted.

478
00:17:49.160 --> 00:17:50.720
That's just because you want to do that.

479
00:17:50.720 --> 00:17:52.360
Yeah, because all right.

480
00:17:52.360 --> 00:17:53.960
So you can flick in priorities.

481
00:17:53.960 --> 00:17:54.840
OK, that's the issue.

482
00:17:54.920 --> 00:18:01.280
And so it's like, I think, so it's like, it's a sequence thing,

483
00:18:01.280 --> 00:18:01.480
right?

484
00:18:01.480 --> 00:18:03.320
Like, you have a thing that you're good at making money on

485
00:18:03.320 --> 00:18:04.960
and then you have a thing that you want to give back on.

486
00:18:04.960 --> 00:18:06.800
I would imagine the professionals want to make you more money

487
00:18:06.800 --> 00:18:07.880
than the kids one does.

488
00:18:07.880 --> 00:18:08.720
No, it doesn't.

489
00:18:08.720 --> 00:18:09.680
No, man, this thing doesn't get it.

490
00:18:09.680 --> 00:18:14.240
Kids is that free times, maybe four times.

491
00:18:14.240 --> 00:18:16.600
So I would make, so let's say, for example,

492
00:18:16.600 --> 00:18:19.040
what I make from five properties I can make from one kid home.

493
00:18:19.040 --> 00:18:22.400
OK, so I stand by my original thing.

494
00:18:22.440 --> 00:18:26.920
Bridge this for the cash flow and then switch to the kids.

495
00:18:26.920 --> 00:18:29.400
Professionals fill up your existing ones so that you don't,

496
00:18:29.400 --> 00:18:31.680
you're not going into debt and you're not going negative.

497
00:18:31.680 --> 00:18:33.960
And then basically the rest of your priorities going forward,

498
00:18:33.960 --> 00:18:34.880
you sunset that.

499
00:18:34.880 --> 00:18:37.280
It's like, that was our legacy model now we do kids.

500
00:18:37.280 --> 00:18:39.680
When you mean sunset, please, elaborate what do you mean?

501
00:18:39.680 --> 00:18:42.320
Don't keep growing that side of the business.

502
00:18:42.320 --> 00:18:43.120
The professionals.

503
00:18:43.120 --> 00:18:43.640
Right.

504
00:18:43.640 --> 00:18:45.320
Fill up the ones you have because you have all these vacancies

505
00:18:45.320 --> 00:18:46.520
because you had to get the kids out.

506
00:18:46.520 --> 00:18:48.520
Fill that up really quickly, get the cash flow back up.

507
00:18:48.520 --> 00:18:51.000
And then if you can make more money with the kids thing,

508
00:18:51.000 --> 00:18:53.640
and that's what you want to do it and you make more money,

509
00:18:53.640 --> 00:18:55.240
do that, but you got to get to there.

510
00:18:55.240 --> 00:18:55.720
Yeah.

511
00:18:55.720 --> 00:18:57.000
That's my two shots.

512
00:18:57.000 --> 00:18:58.480
Thank you.

513
00:18:58.480 --> 00:19:00.120
I can offer you one more.

514
00:19:00.120 --> 00:19:00.640
One more.

515
00:19:00.640 --> 00:19:07.200
OK, so in terms of, I don't know.

516
00:19:07.200 --> 00:19:12.240
So in terms of like your top five meta skills,

517
00:19:12.240 --> 00:19:13.560
what would you like left field?

518
00:19:13.560 --> 00:19:15.840
OK, got it.

519
00:19:15.840 --> 00:19:17.960
So what are your top five meta skills you would learn

520
00:19:17.960 --> 00:19:19.720
that give the highest projected output

521
00:19:19.720 --> 00:19:22.880
in terms of increasing business value?

522
00:19:22.880 --> 00:19:25.280
And only the ships is one of them.

523
00:19:25.280 --> 00:19:26.280
Yeah.

524
00:19:26.280 --> 00:19:30.880
Um, I mean, I really think prioritization

525
00:19:30.880 --> 00:19:33.720
is the most important skill.

526
00:19:33.720 --> 00:19:34.320
Thank you, sir.

527
00:19:34.320 --> 00:19:38.760
Everyone here is limited, so it's what you do with the limit.

528
00:19:38.760 --> 00:19:39.360
Thank you.

529
00:19:39.360 --> 00:19:39.760
You bet.

530
00:19:39.760 --> 00:19:41.240
Thank you, man.

531
00:19:41.240 --> 00:19:42.240
Kudos to the kids.

532
00:19:42.240 --> 00:19:46.400
The next set of kids, not the old ones.

533
00:19:46.520 --> 00:19:48.720
So as I was picking through avatars and you're

534
00:19:48.720 --> 00:19:51.160
saying he is the kids thing and then he's got the professionals

535
00:19:51.160 --> 00:19:51.960
thing.

536
00:19:51.960 --> 00:19:54.400
I'm thinking, like, how easy is it for him to get customers?

537
00:19:54.400 --> 00:19:56.880
What's the gross margin per customer?

538
00:19:56.880 --> 00:19:58.920
And are there lots of them, right?

539
00:19:58.920 --> 00:20:00.680
So it's like, if you have a lot of people

540
00:20:00.680 --> 00:20:02.400
that you can get really easy really quickly

541
00:20:02.400 --> 00:20:04.880
and make a lot of money, that's a good path, right?

542
00:20:04.880 --> 00:20:07.320
And so when he immediately said that he could do professionals

543
00:20:07.320 --> 00:20:11.080
really fast and easily as like, and that's obviously a lot of them,

544
00:20:11.080 --> 00:20:13.040
I was like, OK, this sounds like the right path.

545
00:20:13.040 --> 00:20:14.720
And so then I just asked that one last question.

546
00:20:14.720 --> 00:20:16.320
He was like, I'm assuming you make more money

547
00:20:16.320 --> 00:20:18.560
on the professional issues, like, oh, no, not at all.

548
00:20:18.560 --> 00:20:21.920
So that's what then basically redirected my attention

549
00:20:21.920 --> 00:20:24.280
to like, OK, well, maybe this other path is OK

550
00:20:24.280 --> 00:20:26.320
and is the better long-term play.

551
00:20:26.320 --> 00:20:27.280
But we have to get there.

552
00:20:27.280 --> 00:20:29.080
And if we don't get to the future, then it's never going

553
00:20:29.080 --> 00:20:29.600
to happen.

554
00:20:29.600 --> 00:20:32.840
And so then it just became a short-term cash flow bridge

555
00:20:32.840 --> 00:20:34.640
that he needed to create, which he could either get.

556
00:20:34.640 --> 00:20:36.920
You get somebody to lend them money or things like that,

557
00:20:36.920 --> 00:20:38.600
which I don't prefer to do.

558
00:20:38.600 --> 00:20:40.040
But given the fact that it was real estate

559
00:20:40.040 --> 00:20:41.640
and he could just fill up apartment buildings and just kind

560
00:20:41.640 --> 00:20:44.160
of like move on and then just restart with new leases

561
00:20:44.160 --> 00:20:47.000
for the government program that he was placing children into,

562
00:20:47.000 --> 00:20:49.000
that felt like the best kind of two-step play.

563
00:20:49.000 --> 00:20:51.520
It's common that entrepreneurs will try

564
00:20:51.520 --> 00:20:53.880
and use one business to fund another business.

565
00:20:53.880 --> 00:20:56.640
It's often not a good idea.

566
00:20:56.640 --> 00:20:58.400
And it's usually just a massive distraction.

567
00:20:58.400 --> 00:21:00.440
And then the problem is that they can never turn off

568
00:21:00.440 --> 00:21:01.680
the thing that's funding it.

569
00:21:01.680 --> 00:21:03.880
And I'll say for my experience, the vast majority

570
00:21:03.880 --> 00:21:05.560
of the time, the thing that's funding it

571
00:21:05.560 --> 00:21:06.360
is the real business.

572
00:21:06.360 --> 00:21:08.000
And the other thing is some hobby that they think

573
00:21:08.000 --> 00:21:10.960
in their mind some way, some day might work.

574
00:21:10.960 --> 00:21:12.240
But the thing that just pays their bills,

575
00:21:12.240 --> 00:21:14.560
if they just focus on that one thing, it'd be 10 times bigger.

576
00:21:14.560 --> 00:21:17.640
I mean, fundamentally, prioritization tells you

577
00:21:17.640 --> 00:21:19.560
what you're going to do with what you have.

578
00:21:19.560 --> 00:21:22.480
And so I can't think of something that's more important

579
00:21:22.480 --> 00:21:23.720
than that.

580
00:21:23.720 --> 00:21:25.520
It's going to be hard one to follow.

581
00:21:25.520 --> 00:21:26.520
Money to Charlie Johnson.

582
00:21:26.520 --> 00:21:28.880
No, I don't even know how to follow that to be fair.

583
00:21:28.880 --> 00:21:31.800
You set the bar, but it's won't be quite as humorous.

584
00:21:31.800 --> 00:21:32.680
My name is Charlie Johnson.

585
00:21:32.680 --> 00:21:36.120
I help online trainers and personal trainers scale online.

586
00:21:36.120 --> 00:21:38.480
We do around $3.3 million at the moment.

587
00:21:38.480 --> 00:21:40.880
Topline revenue, profits of $1.3 million

588
00:21:40.880 --> 00:21:43.400
at the base and Dubai, so we also don't pay tax.

589
00:21:43.400 --> 00:21:47.160
Our bottleneck at the moment is traffic and brand awareness.

590
00:21:47.160 --> 00:21:49.320
I don't know whether we focus more on scaling

591
00:21:49.320 --> 00:21:52.680
from paid ads perspective or focusing more on organic.

592
00:21:52.680 --> 00:21:54.520
We're really trying to hammer organic at the moment

593
00:21:54.520 --> 00:21:55.640
at building a media team around me

594
00:21:55.640 --> 00:21:58.120
with YouTube podcasts and all the other platforms.

595
00:21:58.120 --> 00:21:59.880
I don't know about 7,000 posts on Instagram.

596
00:21:59.880 --> 00:22:01.640
We're incredibly consistent on social media.

597
00:22:01.640 --> 00:22:05.120
So that's not an issue from a workflow point of view.

598
00:22:05.120 --> 00:22:09.080
And if it's an ad strategy, what's the best type of strategy

599
00:22:09.080 --> 00:22:10.760
you see to scale these types of businesses

600
00:22:10.760 --> 00:22:14.560
as a VSL or what we currently do is we run ads

601
00:22:14.560 --> 00:22:17.120
to a lead magnet funnel where we dial them

602
00:22:17.120 --> 00:22:18.640
and then cover them off back in.

603
00:22:18.640 --> 00:22:20.880
What's the issue with doing more of that?

604
00:22:20.880 --> 00:22:23.400
The row ads at the moment is only like two to one.

605
00:22:23.400 --> 00:22:25.720
So I need to try and optimize that.

606
00:22:25.720 --> 00:22:31.040
1,400 LTVs, like four and a half.

607
00:22:31.040 --> 00:22:32.040
You just have to make more.

608
00:22:32.040 --> 00:22:32.840
Yeah.

609
00:22:32.840 --> 00:22:34.440
I don't think there's anything wrong with your existing.

610
00:22:34.440 --> 00:22:35.960
So this is a good meta one.

611
00:22:35.960 --> 00:22:39.360
So we, you know, fortunately, unfortunately,

612
00:22:39.440 --> 00:22:40.840
we look at a lot of different businesses

613
00:22:40.840 --> 00:22:43.400
and like we know the numbers for a lot of different industries.

614
00:22:43.400 --> 00:22:44.960
And you'd be surprised at how similar

615
00:22:44.960 --> 00:22:46.640
CAC is between industries.

616
00:22:46.640 --> 00:22:48.880
And so as much as people will generally obsess about

617
00:22:48.880 --> 00:22:50.000
like I just need to get more leads,

618
00:22:50.000 --> 00:22:51.120
I just need to get cheaper leads.

619
00:22:51.120 --> 00:22:52.920
It's almost never really the solution.

620
00:22:52.920 --> 00:22:55.000
Once you have some working way to acquire customers,

621
00:22:55.000 --> 00:22:58.240
which you obviously do, it's usually about extending LTV.

622
00:22:58.240 --> 00:22:59.840
And that's where you see the huge disparity

623
00:22:59.840 --> 00:23:01.440
between businesses.

624
00:23:01.440 --> 00:23:03.480
Like I think I made a short about this,

625
00:23:03.480 --> 00:23:06.560
but like Starbucks LTV is $14,000 per customer.

626
00:23:07.560 --> 00:23:09.880
And so like the coffee guy down the street,

627
00:23:09.880 --> 00:23:11.080
it's like, I just need cheaper leads.

628
00:23:11.080 --> 00:23:12.880
It's like, dude, Starbucks is making $14,000,

629
00:23:12.880 --> 00:23:14.160
they spend over they want it.

630
00:23:14.160 --> 00:23:17.120
And so the companies that make just tons and tons of money,

631
00:23:17.120 --> 00:23:19.160
just find ways to get customers to never leave.

632
00:23:19.160 --> 00:23:20.680
And then they just basically keep printing money

633
00:23:20.680 --> 00:23:22.160
as soon as they acquire them.

634
00:23:22.160 --> 00:23:24.320
And so what the game really then becomes

635
00:23:24.320 --> 00:23:26.000
is a cash flow management game

636
00:23:26.000 --> 00:23:28.120
so that you can spend as aggressively as you want

637
00:23:28.120 --> 00:23:29.760
to get customers that will never leave.

638
00:23:29.760 --> 00:23:31.360
And so that's why like you hear in the software word,

639
00:23:31.360 --> 00:23:33.560
like how, you know, six month, three month payback periods,

640
00:23:33.560 --> 00:23:34.400
things like that.

641
00:23:34.400 --> 00:23:35.600
And it probably doesn't resonate as much

642
00:23:35.680 --> 00:23:38.520
as you're like, well, I make $4,500 and I spend $14,000.

643
00:23:38.520 --> 00:23:40.640
It's because people keep leaving on the back.

644
00:23:40.640 --> 00:23:43.360
And so from a solve perspective,

645
00:23:44.560 --> 00:23:46.920
there's a couple kind of couple ways to look at it.

646
00:23:48.120 --> 00:23:50.240
Are you charging $4,500 up front?

647
00:23:50.240 --> 00:23:53.160
No, we have three tiers of program essentially.

648
00:23:53.160 --> 00:23:55.920
So we have a higher ticket one that's $35K,

649
00:23:55.920 --> 00:23:58.160
our mid-ticket one's $16,

650
00:23:58.160 --> 00:24:00.600
and then our low-ticket one that's four.

651
00:24:00.600 --> 00:24:03.160
Yeah, and so front-ends four and then they get ascended.

652
00:24:03.160 --> 00:24:04.560
Yeah, but we have at the moment,

653
00:24:04.560 --> 00:24:06.200
we're not sending them through from the 4K one,

654
00:24:06.200 --> 00:24:08.240
which I think is what's screwing the LTV.

655
00:24:08.240 --> 00:24:11.120
Yeah, so I don't think, so this is a great example.

656
00:24:11.120 --> 00:24:12.680
It's like, as much as this was like,

657
00:24:12.680 --> 00:24:15.200
should I do more organic or should I do more paid,

658
00:24:15.200 --> 00:24:16.840
I don't think that's the issue.

659
00:24:16.840 --> 00:24:18.960
I think basically figuring out the ascension links

660
00:24:18.960 --> 00:24:20.960
between each of the phases.

661
00:24:20.960 --> 00:24:24.400
But the real, I mean, that would be like first thing to do.

662
00:24:24.400 --> 00:24:25.960
But the second thing that I would do,

663
00:24:25.960 --> 00:24:28.800
which is like the long-term fix for the business,

664
00:24:28.800 --> 00:24:32.160
is we have to get the price,

665
00:24:32.240 --> 00:24:35.120
basically we have to get churn below 3% per month,

666
00:24:35.120 --> 00:24:37.360
and you can do it, you 100% can.

667
00:24:37.360 --> 00:24:38.840
So if you're below 3% per month,

668
00:24:38.840 --> 00:24:40.840
this business will just continue to grow.

669
00:24:40.840 --> 00:24:42.840
And so I would basically put all of my effort

670
00:24:42.840 --> 00:24:47.440
into doing that because you will never out sell bad churn.

671
00:24:47.440 --> 00:24:49.640
You'll always feel this crippling anxiety

672
00:24:49.640 --> 00:24:51.400
of what happens if my adequate gets shut down.

673
00:24:51.400 --> 00:24:54.400
What if this happens?

674
00:24:54.400 --> 00:24:55.760
Because you never feel like you're really building

675
00:24:55.760 --> 00:24:57.440
a permanent asset because you're like six months away

676
00:24:57.440 --> 00:24:58.800
from no customers.

677
00:24:58.800 --> 00:25:01.720
And so it's worth taking the time to solve that problem

678
00:25:01.760 --> 00:25:03.000
in the beginning, especially to be fair,

679
00:25:03.000 --> 00:25:05.200
the smaller you are, the easier it is to solve.

680
00:25:05.200 --> 00:25:06.840
The bigger you are, the harder it is.

681
00:25:06.840 --> 00:25:09.160
So it's like solve it now, get it right,

682
00:25:09.160 --> 00:25:11.360
and then just it'll just keep stacking.

683
00:25:12.560 --> 00:25:14.000
From a churn perspective,

684
00:25:14.000 --> 00:25:16.400
it's usually going to be around pricing.

685
00:25:16.400 --> 00:25:20.920
And so what I found in that space is that the price points

686
00:25:20.920 --> 00:25:25.920
that have the lowest churn are between like 61200 a month.

687
00:25:27.920 --> 00:25:30.520
For fitness trainers, et cetera.

688
00:25:32.120 --> 00:25:36.520
And there's usually some component of, you know,

689
00:25:36.520 --> 00:25:39.880
two times a year, three times a year, they get to meet up.

690
00:25:39.880 --> 00:25:43.480
And beyond that, I don't think you need a huge amount

691
00:25:43.480 --> 00:25:45.680
more delivery besides whatever kind of one

692
00:25:45.680 --> 00:25:47.320
to many thing that you're doing.

693
00:25:47.320 --> 00:25:49.400
If they have at $600 a month,

694
00:25:49.400 --> 00:25:51.560
it's not that hard to justify,

695
00:25:51.560 --> 00:25:53.280
but that's what continues to stack.

696
00:25:54.400 --> 00:25:57.120
Would you almost look to reduce the price point

697
00:25:57.120 --> 00:25:58.520
at some point when it's there in the programs?

698
00:25:58.520 --> 00:26:00.160
Like the way we structure the moment, it's actually.

699
00:26:00.280 --> 00:26:01.000
Big head long tail.

700
00:26:01.000 --> 00:26:03.200
So like 3K down, 600 bucks a month after that.

701
00:26:03.200 --> 00:26:04.040
So we do something similar.

702
00:26:04.040 --> 00:26:06.120
Would you like an accelerator for like three, four months

703
00:26:06.120 --> 00:26:07.840
where they pay out front like a big chunk

704
00:26:07.840 --> 00:26:09.560
and then like a lower price for?

705
00:26:09.560 --> 00:26:12.280
I prefer pay and then pay immediately.

706
00:26:12.280 --> 00:26:13.040
Okay.

707
00:26:13.040 --> 00:26:16.800
So it's like rather than, you know, like 5K,

708
00:26:16.800 --> 00:26:18.720
I'd rather get as crazy as this sounds.

709
00:26:18.720 --> 00:26:20.600
I'd rather get 3,500 and then have them pay

710
00:26:20.600 --> 00:26:23.360
500 three times in a row, whatever the math works out.

711
00:26:23.360 --> 00:26:25.120
Yeah, that works out to 5K.

712
00:26:25.120 --> 00:26:26.840
I would rather that because I don't want to have

713
00:26:26.840 --> 00:26:28.080
a second sale for ascension

714
00:26:28.160 --> 00:26:29.360
because then I'll lose whatever, you know,

715
00:26:29.360 --> 00:26:30.200
conversion percentage.

716
00:26:30.200 --> 00:26:32.920
So I'd rather just get like 3,500 you're invested.

717
00:26:32.920 --> 00:26:35.200
Now we start at $500 a month.

718
00:26:35.200 --> 00:26:36.040
Does that make sense?

719
00:26:36.040 --> 00:26:36.880
Yeah.

720
00:26:36.880 --> 00:26:38.160
Let's solve what we do with our highest ticket program.

721
00:26:38.160 --> 00:26:39.000
Great.

722
00:26:39.000 --> 00:26:40.160
Does that one turn less than the other ones?

723
00:26:40.160 --> 00:26:41.320
Okay.

724
00:26:41.320 --> 00:26:42.160
Yes.

725
00:26:42.160 --> 00:26:43.800
95% retention.

726
00:26:43.800 --> 00:26:44.640
Like you and you.

727
00:26:45.760 --> 00:26:47.520
But then I think that's also the

728
00:26:47.520 --> 00:26:48.880
caliber of participating with has less

729
00:26:48.880 --> 00:26:50.440
substantial application.

730
00:26:50.440 --> 00:26:51.800
Mm-hmm.

731
00:26:51.800 --> 00:26:54.440
When you pay 3,500, the 600 doesn't seem that bad.

732
00:26:56.200 --> 00:26:57.800
That's what I would do.

733
00:26:57.800 --> 00:26:59.440
I think you're doing fine on the advertising side.

734
00:26:59.440 --> 00:27:00.920
4,800 hacks fine.

735
00:27:00.920 --> 00:27:02.240
If anything, it's good.

736
00:27:02.240 --> 00:27:03.800
So I don't think you should obsess on that.

737
00:27:03.800 --> 00:27:04.800
So let's you just try and pull

738
00:27:04.800 --> 00:27:07.160
eye-cone averages, think like 13% last few months

739
00:27:07.160 --> 00:27:08.160
or just way too late.

740
00:27:08.160 --> 00:27:11.520
You got to cut it by three quarters.

741
00:27:11.520 --> 00:27:13.000
That's where you attack.

742
00:27:13.000 --> 00:27:15.240
Part of it's going to be a pricing thing.

743
00:27:16.520 --> 00:27:17.760
Part of it's going to be expectation setting

744
00:27:17.760 --> 00:27:18.880
on the onboarding call.

745
00:27:20.040 --> 00:27:21.840
And sometimes a little bit of is the marketing

746
00:27:21.840 --> 00:27:24.160
and what they're how they're getting sold.

747
00:27:24.160 --> 00:27:26.040
It's in like overselling.

748
00:27:26.040 --> 00:27:27.880
Yeah, and also probably just customer avatar.

749
00:27:27.880 --> 00:27:29.040
Like making sure that you're not taking

750
00:27:29.040 --> 00:27:31.600
people who want to start, you know,

751
00:27:31.600 --> 00:27:32.760
finish training businesses, but people

752
00:27:32.760 --> 00:27:35.000
already have training businesses.

753
00:27:35.000 --> 00:27:37.600
So that's the challenge we've found is that a lot of say

754
00:27:37.600 --> 00:27:39.760
from the ad traffic comes through from the beginners,

755
00:27:39.760 --> 00:27:42.080
rather than we had a lot of people at the beginning

756
00:27:42.080 --> 00:27:43.080
who are advanced.

757
00:27:43.080 --> 00:27:44.080
You came from my organic world audience.

758
00:27:44.080 --> 00:27:45.080
Yeah, and they're the better stuff.

759
00:27:45.080 --> 00:27:46.080
So I created that.

760
00:27:46.080 --> 00:27:46.880
Yeah.

761
00:27:46.880 --> 00:27:48.640
So you disqualify customers.

762
00:27:48.640 --> 00:27:49.720
OK.

763
00:27:49.720 --> 00:27:52.720
So it just means that you don't take some people's money.

764
00:27:52.720 --> 00:27:53.400
Cool.

765
00:27:53.400 --> 00:27:56.440
And if you if and if you tweak the marketing

766
00:27:56.440 --> 00:27:58.400
so that the messaging is clear,

767
00:27:58.400 --> 00:28:00.400
you will track more of those people.

768
00:28:00.400 --> 00:28:03.040
Just being like, this is only for people who.

769
00:28:03.040 --> 00:28:06.600
And then you keep going into the ad, you'll get more of those.

770
00:28:06.600 --> 00:28:10.200
Just be more clear in the ad narrative.

771
00:28:10.200 --> 00:28:12.040
And you must have these things in order to do it.

772
00:28:12.040 --> 00:28:13.440
If not, watch my free shit.

773
00:28:13.440 --> 00:28:14.440
OK.

774
00:28:14.440 --> 00:28:15.200
Cool.

775
00:28:15.200 --> 00:28:15.680
Awesome.

776
00:28:15.680 --> 00:28:16.200
Thank you.

777
00:28:16.200 --> 00:28:17.440
Yeah, you bet.

778
00:28:17.440 --> 00:28:19.640
Rock and roll.

779
00:28:19.640 --> 00:28:22.680
You know, this is a business that is very sales

780
00:28:22.680 --> 00:28:23.680
and marketing driven.

781
00:28:23.680 --> 00:28:25.720
But if you want to get really big in that world,

782
00:28:25.720 --> 00:28:28.480
or really any world, you have to keep customers.

783
00:28:28.480 --> 00:28:31.960
And so that business you can either sell more customers

784
00:28:31.960 --> 00:28:33.040
year every year every year and knowing

785
00:28:33.040 --> 00:28:34.600
that they're going to fall out the back

786
00:28:34.600 --> 00:28:37.120
or just take the extra year or two

787
00:28:37.120 --> 00:28:39.720
and fix the churn in the core thing.

788
00:28:39.720 --> 00:28:43.440
Now, my caveat is that will you ever eliminate churn

789
00:28:43.440 --> 00:28:44.480
in that business?

790
00:28:44.480 --> 00:28:45.440
No.

791
00:28:45.440 --> 00:28:46.800
But you can dramatically reduce it.

792
00:28:46.800 --> 00:28:49.000
It's not going to be the same as the CRM business, right?

793
00:28:49.000 --> 00:28:52.640
It'll just be worse than that, but better than what he's got, right?

794
00:28:52.680 --> 00:28:56.160
And so that, by fixing it for a year,

795
00:28:56.160 --> 00:28:57.560
would then allow him year over year

796
00:28:57.560 --> 00:28:58.880
every year to have consistent growth

797
00:28:58.880 --> 00:29:01.600
rather than can always having to be worried about

798
00:29:01.600 --> 00:29:04.120
where his next ad campaign is going to be doing.

799
00:29:04.120 --> 00:29:06.120
It gives more stability in the business, increases cash flow,

800
00:29:06.120 --> 00:29:07.440
increases margins, and fundamentally,

801
00:29:07.440 --> 00:29:10.520
just makes it a more enjoyable business.

802
00:29:10.520 --> 00:29:11.600
Alex, thank you.

803
00:29:11.600 --> 00:29:14.000
This is an amazing couple of days.

804
00:29:14.000 --> 00:29:14.440
Awesome.

805
00:29:14.440 --> 00:29:15.280
Thank you.

806
00:29:15.280 --> 00:29:16.720
Thank you guys.

807
00:29:16.720 --> 00:29:18.360
My name is Joel McDonald.

808
00:29:18.360 --> 00:29:21.600
We sell a travel coaching program.

809
00:29:21.600 --> 00:29:24.600
We help travelers, I don't know, 40 sales a month.

810
00:29:24.600 --> 00:29:29.080
You did 150 sales in December and had a record month

811
00:29:29.080 --> 00:29:30.600
using the Black Friday play, doing a giveaway.

812
00:29:30.600 --> 00:29:31.600
Yes.

813
00:29:31.600 --> 00:29:33.600
And then you got the bigger group that's

814
00:29:33.600 --> 00:29:36.520
happier revenue doing 180,000 homes a month.

815
00:29:36.520 --> 00:29:38.640
6,000 members at 30, right?

816
00:29:38.640 --> 00:29:39.160
Exactly.

817
00:29:39.160 --> 00:29:40.840
And then you have your higher ticket.

818
00:29:40.840 --> 00:29:41.800
OK.

819
00:29:41.800 --> 00:29:43.840
Yeah, so at that, we feel very good about,

820
00:29:43.840 --> 00:29:46.160
especially now, we've got a lot more clarity.

821
00:29:46.160 --> 00:29:51.240
We're on trajectory to hit 10 and actually a lot of clarity

822
00:29:51.240 --> 00:29:52.920
to hit 15 million this year.

823
00:29:52.920 --> 00:29:53.920
Cool.

824
00:29:53.920 --> 00:29:57.480
The biggest thing, and it's not necessarily what's stopping us,

825
00:29:57.480 --> 00:30:00.040
but what has us really nervous is we've kind of got

826
00:30:00.040 --> 00:30:03.440
a little, we've got all our eggs in one basket.

827
00:30:03.440 --> 00:30:06.960
And that's our, you know, we're 95% dependent

828
00:30:06.960 --> 00:30:09.560
on meta advertising, which works great.

829
00:30:09.560 --> 00:30:11.480
We've got pretty under control, but that

830
00:30:11.480 --> 00:30:13.320
could disappear at any moment.

831
00:30:13.320 --> 00:30:14.920
My thought is diversification.

832
00:30:14.920 --> 00:30:16.600
I mean, we could do other paid channels.

833
00:30:16.600 --> 00:30:19.080
Those are a lot more expensive.

834
00:30:19.080 --> 00:30:21.960
I'd like to diversify a little more with affiliates.

835
00:30:21.960 --> 00:30:25.160
That represents about, we've got an aggressive program.

836
00:30:25.160 --> 00:30:33.160
It pays five to $7 per click, but it's like 1% of our revenue.

837
00:30:33.160 --> 00:30:36.680
What you've done reels and topics on, you know,

838
00:30:36.680 --> 00:30:38.960
creative ways to do affiliates.

839
00:30:38.960 --> 00:30:42.040
A, do you think that's a best way to diversify and be

840
00:30:42.040 --> 00:30:46.040
a so what are some out of the box strategies to kickstart that?

841
00:30:49.960 --> 00:30:53.880
Big picture, you'll never feel like the business is solid

842
00:30:53.880 --> 00:30:58.760
until you find out how to get people to not leave.

843
00:30:58.760 --> 00:31:01.520
Everything else is window dressing.

844
00:31:01.520 --> 00:31:05.480
In terms of acquisition, I would rather

845
00:31:05.480 --> 00:31:10.080
you go from paid meta ads to adding in paid YouTube ads,

846
00:31:10.080 --> 00:31:12.920
then trying to go a whole new method for affiliates

847
00:31:12.920 --> 00:31:16.600
or a whole new method for content, as like your primary,

848
00:31:16.600 --> 00:31:18.160
kind of like new investment.

849
00:31:18.160 --> 00:31:21.360
And so I would probably just go YouTube ads as my,

850
00:31:21.360 --> 00:31:22.280
I don't like next thing.

851
00:31:22.280 --> 00:31:24.280
And you're knocking on the door of a million a month.

852
00:31:24.280 --> 00:31:26.160
So you're, it's about that time.

853
00:31:26.160 --> 00:31:27.640
Does that make sense?

854
00:31:27.640 --> 00:31:28.920
Cool, that's what I would do.

855
00:31:28.920 --> 00:31:30.480
All right, thank you.

856
00:31:30.480 --> 00:31:31.320
Easy peasy.

857
00:31:33.600 --> 00:31:36.800
So this gentleman trying to go from, you know,

858
00:31:36.800 --> 00:31:39.600
six million to over a million dollars a month.

859
00:31:39.600 --> 00:31:41.440
So he's right here, right?

860
00:31:41.440 --> 00:31:45.000
And his current constraint is that lead flow is volatile

861
00:31:45.000 --> 00:31:47.160
because he only has one way to get customers.

862
00:31:47.160 --> 00:31:49.400
And so to graduate, he has to fund his second acquisition

863
00:31:49.400 --> 00:31:51.880
general with for what I would, I like doing.

864
00:31:51.880 --> 00:31:53.560
And he actually just ran the play.

865
00:31:53.560 --> 00:31:55.120
And so when I started this, I was like,

866
00:31:55.120 --> 00:31:57.000
you just ran this referral process play

867
00:31:57.000 --> 00:32:00.440
which he had just done to generate more cash flow.

868
00:32:00.440 --> 00:32:03.280
And then segment long-term lead nurture by lead scoring

869
00:32:03.280 --> 00:32:05.000
and then pick the most similar platform,

870
00:32:05.000 --> 00:32:08.240
which in this instance was go from paid ads on meta

871
00:32:08.240 --> 00:32:09.760
to go to paid ads on YouTube.

872
00:32:09.760 --> 00:32:11.720
And so that was the most similar thing that he could do

873
00:32:11.720 --> 00:32:13.840
to get more customers.

874
00:32:13.840 --> 00:32:15.480
And so fundamentally, that's all I do

875
00:32:15.480 --> 00:32:18.440
is basically walk him through what his current constraint was,

876
00:32:18.440 --> 00:32:20.200
how to graduate for it at this level.

877
00:32:20.200 --> 00:32:22.720
And if you want a personalized version of this

878
00:32:22.720 --> 00:32:24.440
to know exactly where you're at

879
00:32:24.440 --> 00:32:26.560
and to know what constraints you have

880
00:32:26.560 --> 00:32:29.280
and how to graduate, this scaling wrapped,

881
00:32:29.280 --> 00:32:31.280
aptly free, just go to acquisition.com

882
00:32:31.280 --> 00:32:32.400
forward slash road map.

883
00:32:32.400 --> 00:32:34.880
And on the thank you page, if you'd like to have my team

884
00:32:34.880 --> 00:32:37.720
tell you where you're at and kind of apply this to the business

885
00:32:37.720 --> 00:32:40.880
rather than having just kind of like the automated thing,

886
00:32:40.880 --> 00:32:42.040
then book a call.

887
00:32:42.040 --> 00:32:43.320
We'd love to love to meet you.

888
00:32:43.320 --> 00:32:44.600
Otherwise, enjoy.

889
00:32:46.440 --> 00:32:48.200
Hi, I'm Mauricio.

890
00:32:48.200 --> 00:32:51.160
I sell corporate training focus on soft skills

891
00:32:51.160 --> 00:32:52.320
to large company through

892
00:32:52.320 --> 00:32:53.360
or soft skills.

893
00:32:53.360 --> 00:32:54.200
What?

894
00:32:54.200 --> 00:32:55.680
You help who do soft skills,

895
00:32:55.680 --> 00:32:58.040
which I train companies in soft skills.

896
00:32:58.040 --> 00:32:58.880
Okay, got it.

897
00:32:58.880 --> 00:33:01.360
I'm coaching, et cetera.

898
00:33:01.360 --> 00:33:05.760
We do 1.3 million in revenue on a project based model.

899
00:33:05.760 --> 00:33:10.480
I would like to be at 100 million subscription based model.

900
00:33:10.480 --> 00:33:14.360
I'm well stopping me is a project based model

901
00:33:14.360 --> 00:33:16.120
is more lucrative.

902
00:33:16.120 --> 00:33:19.160
So I feel like stuck with these whales.

903
00:33:19.160 --> 00:33:20.000
Okay.

904
00:33:20.000 --> 00:33:22.040
That doesn't want the subscription model.

905
00:33:22.040 --> 00:33:24.960
So project based isn't bad.

906
00:33:24.960 --> 00:33:25.960
You just need to demonstrate.

907
00:33:25.960 --> 00:33:29.880
So this is the concept of recurring versus reoccurring, right?

908
00:33:29.880 --> 00:33:31.520
And so if you go project to project,

909
00:33:31.520 --> 00:33:33.520
there's nothing wrong with that as long as you can demonstrate

910
00:33:33.520 --> 00:33:36.360
that you have a high renewal rate between those things.

911
00:33:36.360 --> 00:33:38.200
And so I'm in general,

912
00:33:38.200 --> 00:33:40.080
I do like having kind of project based stuff

913
00:33:40.080 --> 00:33:42.000
because typically you can price two to three types higher

914
00:33:42.000 --> 00:33:43.440
than you can for a subscription.

915
00:33:43.440 --> 00:33:45.400
And so you have usually way better cash flow

916
00:33:45.400 --> 00:33:46.440
because people are willing to commit

917
00:33:46.440 --> 00:33:48.200
to a certain amount for this period of time

918
00:33:48.200 --> 00:33:50.440
versus this forever,

919
00:33:50.440 --> 00:33:52.560
which is what a subscription feels like even though

920
00:33:52.560 --> 00:33:55.280
realistically we know that it's not that case.

921
00:33:55.280 --> 00:34:00.280
So you want to get to a 100 million dollar subscription business.

922
00:34:00.440 --> 00:34:04.440
You have a 1.3 million dollar non-subscription business.

923
00:34:05.440 --> 00:34:08.440
I would say I don't think the limited to your business

924
00:34:08.440 --> 00:34:11.400
is that.

925
00:34:11.400 --> 00:34:13.800
So we'd have to dive a level deeper and say like,

926
00:34:13.800 --> 00:34:15.480
what's stopping you from getting to 10 million

927
00:34:15.480 --> 00:34:16.600
with your current model?

928
00:34:18.280 --> 00:34:23.280
Yes, we are now aiming to smaller companies

929
00:34:24.600 --> 00:34:26.000
on the subscription base.

930
00:34:26.000 --> 00:34:26.840
Yeah.

931
00:34:26.840 --> 00:34:30.880
And the whales where I stay in the same, basically.

932
00:34:30.880 --> 00:34:34.400
So that's our strategy to like this year,

933
00:34:34.400 --> 00:34:39.080
we're aiming for a 40% of subscription

934
00:34:39.080 --> 00:34:43.160
subscription based model from all the revenue.

935
00:34:43.160 --> 00:34:44.000
40.

936
00:34:44.000 --> 00:34:44.840
40%.

937
00:34:44.840 --> 00:34:46.600
Is subscription already or that's the goal?

938
00:34:46.600 --> 00:34:48.480
No, it's the aim of this.

939
00:34:48.480 --> 00:34:49.320
Okay, got it.

940
00:34:49.320 --> 00:34:50.720
And you said you have whales.

941
00:34:50.720 --> 00:34:51.560
Yes.

942
00:34:51.560 --> 00:34:52.760
And you have small companies.

943
00:34:52.760 --> 00:34:53.760
Smaller.

944
00:34:53.760 --> 00:34:57.840
What percentage of companies are neither bucket revenue wise?

945
00:34:57.840 --> 00:35:01.440
No, this is like 80, 20.

946
00:35:01.440 --> 00:35:05.560
So the whales have almost everyone.

947
00:35:05.560 --> 00:35:07.160
We can just do more whales.

948
00:35:07.160 --> 00:35:08.000
Okay.

949
00:35:08.000 --> 00:35:09.200
I'm serious.

950
00:35:09.200 --> 00:35:10.720
So how do you get whales?

951
00:35:11.720 --> 00:35:14.000
We have an outbound sales team.

952
00:35:14.000 --> 00:35:14.840
Okay.

953
00:35:14.840 --> 00:35:15.960
And we are pretty good at it.

954
00:35:15.960 --> 00:35:20.960
So we get into a whale and then sell it to more departments.

955
00:35:22.720 --> 00:35:23.560
Yeah, of course.

956
00:35:23.560 --> 00:35:28.880
So what stops, so what's the limiter on your outbound team?

957
00:35:29.760 --> 00:35:30.760
People.

958
00:35:30.760 --> 00:35:31.760
Okay.

959
00:35:31.760 --> 00:35:32.760
HR.

960
00:35:32.760 --> 00:35:33.760
HR is something.

961
00:35:33.760 --> 00:35:34.760
So recruiting.

962
00:35:34.760 --> 00:35:35.760
Yeah.

963
00:35:35.760 --> 00:35:36.760
Okay.

964
00:35:36.760 --> 00:35:37.760
Got it.

965
00:35:37.760 --> 00:35:40.960
So if you had twice the outbound team you have now with the equal skill with your business

966
00:35:40.960 --> 00:35:41.960
double.

967
00:35:41.960 --> 00:35:42.960
Yes.

968
00:35:42.960 --> 00:35:43.960
Great.

969
00:35:43.960 --> 00:35:44.960
So what stops you from doing that?

970
00:35:44.960 --> 00:35:45.960
You don't have a recruiter?

971
00:35:45.960 --> 00:35:46.960
Yes.

972
00:35:46.960 --> 00:35:47.960
But it doesn't work.

973
00:35:47.960 --> 00:35:48.960
Okay.

974
00:35:48.960 --> 00:35:49.960
So you have a bad recruiter.

975
00:35:49.960 --> 00:35:50.960
Yes.

976
00:35:50.960 --> 00:35:51.960
Okay.

977
00:35:51.960 --> 00:35:55.800
So hopefully this like line of reasoning was fun for everyone, but that's what we have

978
00:35:55.800 --> 00:35:56.800
to work on.

979
00:35:56.800 --> 00:35:59.840
Like you don't know, like the rest of the stuff that we talked about is basically irrelevant.

980
00:35:59.840 --> 00:36:04.040
You need to go get another recruiter who's good and can get you outbound guys.

981
00:36:04.040 --> 00:36:08.840
Basically and you will continue like my advice is to continue increasing the outbound team

982
00:36:08.840 --> 00:36:11.520
until you can't handle the sales anymore.

983
00:36:11.520 --> 00:36:12.520
Okay.

984
00:36:12.520 --> 00:36:13.520
That's it.

985
00:36:13.520 --> 00:36:14.520
That's it.

986
00:36:14.520 --> 00:36:18.420
And whales fundamentally like it's not uncommon for them to be work on projects for just

987
00:36:18.420 --> 00:36:20.320
extend the terms.

988
00:36:20.320 --> 00:36:23.480
So if you, if you sign, you know, they're currently doing six month engagements, try to go

989
00:36:23.480 --> 00:36:25.320
for 12 or 18 month engagements.

990
00:36:25.320 --> 00:36:26.320
Okay.

991
00:36:26.520 --> 00:36:27.520
Does that make sense?

992
00:36:27.520 --> 00:36:28.520
Yes.

993
00:36:28.520 --> 00:36:29.520
Yeah.

994
00:36:29.520 --> 00:36:30.520
And that's that that's just as valuable.

995
00:36:30.520 --> 00:36:34.200
Like if you have like a five year contract of the Fortune 500, it's recurring as far as

996
00:36:34.200 --> 00:36:35.400
like an investor would be concerned.

997
00:36:35.400 --> 00:36:37.600
It's the same thing.

998
00:36:37.600 --> 00:36:38.600
Makes sense?

999
00:36:38.600 --> 00:36:39.600
Yes.

1000
00:36:39.600 --> 00:36:40.600
All right.

1001
00:36:40.600 --> 00:36:41.600
Hopefully it's simpler.

1002
00:36:41.600 --> 00:36:45.440
Hey, guys, real quick, this podcast only grows from word of mouth.

1003
00:36:45.440 --> 00:36:46.440
Quite literally.

1004
00:36:46.440 --> 00:36:47.440
There's no other way to grow a podcast than word of mouth.

1005
00:36:47.440 --> 00:36:50.880
If there's some element of this that you think somebody else should hear or be relevant

1006
00:36:50.880 --> 00:36:52.560
to them, it would mean the world to me.

1007
00:36:52.560 --> 00:36:56.520
If you share this via text, via Instagram, via DM, via whatever way you like to share

1008
00:36:56.520 --> 00:36:57.880
stuff with the people you love.

1009
00:36:57.880 --> 00:36:58.880
Thank you.

1010
00:36:58.880 --> 00:36:59.880
Okay.

1011
00:36:59.880 --> 00:37:00.880
Sir.

1012
00:37:00.880 --> 00:37:01.880
Hi, Alex.

1013
00:37:01.880 --> 00:37:02.880
Hello.

1014
00:37:02.880 --> 00:37:05.080
My name is Don.

1015
00:37:05.080 --> 00:37:10.080
I sell Christmas light installation to home and business owners of it.

1016
00:37:10.080 --> 00:37:14.880
Last year, we did 450 came and this year, I'd like to be a two million.

1017
00:37:14.880 --> 00:37:15.880
Awesome.

1018
00:37:15.880 --> 00:37:21.000
What's stopping me is that I still have prices when I started the business two years ago

1019
00:37:21.000 --> 00:37:24.360
for some businesses or for some clients.

1020
00:37:24.360 --> 00:37:29.880
So I'd like to know how can I increase the perceived value so that I could increase

1021
00:37:29.880 --> 00:37:35.440
my prices while still doing the same thing?

1022
00:37:35.440 --> 00:37:39.600
Can you just say a higher number when you get to the asking for money part?

1023
00:37:39.600 --> 00:37:44.680
So for example, if I've been charging a house $1,000 for an install and takedown.

1024
00:37:44.680 --> 00:37:45.680
No, I understand.

1025
00:37:45.680 --> 00:37:51.600
I'm saying like, what stops you from just changing nothing and just saying a higher

1026
00:37:51.600 --> 00:37:52.600
price?

1027
00:37:52.600 --> 00:37:54.600
Like this year, it'll be 2000.

1028
00:37:54.600 --> 00:37:55.600
Yeah.

1029
00:37:55.600 --> 00:37:56.600
I guess nothing.

1030
00:37:56.600 --> 00:37:58.600
But the perceived value...

1031
00:37:58.600 --> 00:38:00.400
That feels like the easiest thing to do.

1032
00:38:00.400 --> 00:38:01.400
Yeah.

1033
00:38:01.400 --> 00:38:04.040
So I wanted to know like if there's a script or anything, how...

1034
00:38:04.040 --> 00:38:05.040
Okay.

1035
00:38:05.040 --> 00:38:06.040
So a couple things.

1036
00:38:06.040 --> 00:38:11.640
So one is that it feels like you need to be sold more than anything, which like great.

1037
00:38:11.640 --> 00:38:14.600
But are you good at it?

1038
00:38:14.600 --> 00:38:15.600
Are you good at sales?

1039
00:38:15.600 --> 00:38:16.600
No.

1040
00:38:16.600 --> 00:38:17.600
Oh, Christmas tree lights.

1041
00:38:17.600 --> 00:38:18.600
Oh, yeah, yeah.

1042
00:38:18.600 --> 00:38:19.600
Okay.

1043
00:38:19.600 --> 00:38:20.600
Good.

1044
00:38:20.600 --> 00:38:21.600
Good best.

1045
00:38:21.600 --> 00:38:22.600
So great.

1046
00:38:22.600 --> 00:38:23.440
So then you can charge whatever you want.

1047
00:38:23.440 --> 00:38:29.760
In terms of it has the business all come from referrals from Google leads and referrals.

1048
00:38:29.760 --> 00:38:30.760
Okay.

1049
00:38:30.760 --> 00:38:31.760
Got it.

1050
00:38:31.760 --> 00:38:34.920
So you want to get to 2 million, you raising your prices, what percentage do you want

1051
00:38:34.920 --> 00:38:35.920
to raise them?

1052
00:38:35.920 --> 00:38:36.920
Probably 50%.

1053
00:38:36.920 --> 00:38:37.920
Okay.

1054
00:38:37.920 --> 00:38:38.920
Got it.

1055
00:38:38.920 --> 00:38:41.680
So the thing is is like if you want to raise them 50%, I'll bet you got so much more

1056
00:38:41.680 --> 00:38:45.120
room than that because you seem not as convicted, so I'll bet you there's like a ton of

1057
00:38:45.120 --> 00:38:46.120
rope.

1058
00:38:46.120 --> 00:38:47.120
Okay.

1059
00:38:47.120 --> 00:38:48.120
So you're charging.

1060
00:38:48.120 --> 00:38:49.120
Okay, let's just...

1061
00:38:49.120 --> 00:38:52.720
Let's start with 50 and then bump it again another 50.

1062
00:38:52.720 --> 00:38:55.600
If basically you have no change in close rates.

1063
00:38:55.600 --> 00:39:01.400
And I would like you to keep bumping it by 50% until you see that you're making less money.

1064
00:39:01.400 --> 00:39:02.400
Got it.

1065
00:39:02.400 --> 00:39:03.400
That's not okay.

1066
00:39:03.400 --> 00:39:04.400
It's not simple.

1067
00:39:04.400 --> 00:39:05.400
Okay.

1068
00:39:05.400 --> 00:39:06.400
That sounds great.

1069
00:39:06.400 --> 00:39:07.400
I love this.

1070
00:39:07.400 --> 00:39:09.400
Is that as good for you as it was for me?

1071
00:39:09.400 --> 00:39:10.400
I'm kidding.

1072
00:39:10.400 --> 00:39:11.400
That's what your partner said.

1073
00:39:11.400 --> 00:39:12.400
Okay.

1074
00:39:12.400 --> 00:39:29.320
So I'll give you a little script for the people who are old that are going to come back

1075
00:39:29.320 --> 00:39:31.080
because I know some of them are going to recur.

1076
00:39:31.080 --> 00:39:35.660
Is that I would give them a heads up ahead of time and say, hey, just so you know, we're

1077
00:39:35.660 --> 00:39:40.340
raising prices on all these new crazy people who are trying to give us money.

1078
00:39:40.340 --> 00:39:49.780
But since you're a new old OG, if you want to reward you for being a previous customer,

1079
00:39:49.780 --> 00:39:55.820
I'll honor your old price as long as you buy now for Christmas, otherwise you'll get

1080
00:39:55.820 --> 00:39:56.820
the new price.

1081
00:39:56.820 --> 00:40:00.220
So it's like, I'm giving you the love now because I'm like, hey, I'm letting you in.

1082
00:40:00.220 --> 00:40:03.660
But then you can forward, you can pull cash flow forward.

1083
00:40:03.660 --> 00:40:04.660
Does that make sense?

1084
00:40:04.660 --> 00:40:05.660
Perfect.

1085
00:40:05.660 --> 00:40:08.060
And everybody else just raised a price and you'll feel okay about it because you'll have

1086
00:40:08.060 --> 00:40:09.060
a full bank account.

1087
00:40:09.060 --> 00:40:10.060
Right.

1088
00:40:10.060 --> 00:40:11.060
Okay.

1089
00:40:11.060 --> 00:40:12.060
Thank you.

1090
00:40:12.060 --> 00:40:18.860
So pricing is one of those weird dogmatic things that founders have these like deep

1091
00:40:18.860 --> 00:40:20.660
sedent beliefs about it.

1092
00:40:20.660 --> 00:40:22.260
And I think there's because there's a lot of fear, right?

1093
00:40:22.260 --> 00:40:23.460
No one wants rejection.

1094
00:40:23.460 --> 00:40:25.860
Everyone fears that their business is going to go away.

1095
00:40:25.860 --> 00:40:29.260
And it's usually because you think that like, oh, if I, you know, change a price to one

1096
00:40:29.260 --> 00:40:30.860
customer, everything's going to change.

1097
00:40:30.860 --> 00:40:33.700
It's like, well, if you aren't selling, then you can just change the price back next

1098
00:40:33.700 --> 00:40:34.700
week.

1099
00:40:34.700 --> 00:40:39.500
But the risk of not testing your pricing is so much greater than the risk of keeping

1100
00:40:39.500 --> 00:40:40.500
it the same.

1101
00:40:40.500 --> 00:40:43.220
Like, think about it at its absolute extreme.

1102
00:40:43.220 --> 00:40:47.860
If you kept your business prices the same forever, you would eventually go to business.

1103
00:40:47.860 --> 00:40:53.580
Think about how crazy it is because over time, prices inflate, right, costs go up.

1104
00:40:53.580 --> 00:40:55.820
And so you have to be able to adjust prices.

1105
00:40:55.820 --> 00:41:00.100
If you haven't adjusted your price in the last four years, you're making 30% 40% less

1106
00:41:00.100 --> 00:41:04.820
profit for sure are none in terms of a per unit basis.

1107
00:41:04.820 --> 00:41:07.780
So like, why wouldn't you do that?

1108
00:41:07.780 --> 00:41:11.660
And so with this particular guy, he wanted some like strategy to get his head around, you

1109
00:41:11.660 --> 00:41:13.060
know, I want to charge more.

1110
00:41:13.060 --> 00:41:14.860
So how do I increase the value?

1111
00:41:14.860 --> 00:41:19.020
But he's closing a ton of people and he's obviously doing a good job.

1112
00:41:19.020 --> 00:41:23.100
And so the easiest way to price higher is to just raise the price.

1113
00:41:23.100 --> 00:41:26.820
And I just gave him a little tactic, which is you want to reward existing customers.

1114
00:41:26.820 --> 00:41:28.500
But the thing is you can reward them whatever you want.

1115
00:41:28.500 --> 00:41:32.100
So you can reward them by giving them early ability to pay you.

1116
00:41:32.100 --> 00:41:36.100
You can give them a discount for three months if it's a recurring membership.

1117
00:41:36.100 --> 00:41:41.380
So it's like, hey, I'm changing the prices, you know, today, effective now, but I'm grandfathering

1118
00:41:41.380 --> 00:41:45.140
you in for three months, right, rather than forever, right?

1119
00:41:45.140 --> 00:41:48.860
So as long as you give them some consideration, it kind of like smooth things out.

1120
00:41:48.860 --> 00:41:52.820
And it's easier for a discount to go away than a price to go up.

1121
00:41:52.820 --> 00:41:56.620
And so increase the price, give them the discount, say you grandfather the discount for three

1122
00:41:56.620 --> 00:41:59.100
months or six months, and then the price goes up.

1123
00:41:59.100 --> 00:42:03.860
So what Don was struggling with is an issue that I cover in $100 million offers book.

1124
00:42:03.860 --> 00:42:08.540
So he was dealing with a virtuous versus vicious cycle of price.

1125
00:42:08.540 --> 00:42:12.300
And so there's always this fear of like, okay, well, if I decrease my price, maybe I'll

1126
00:42:12.300 --> 00:42:13.300
make more money.

1127
00:42:13.300 --> 00:42:16.180
But when you decrease your price, you decrease your clients' emotional investments, you

1128
00:42:16.180 --> 00:42:20.100
decrease their perceived value, you decrease the results to get you decrease, you increase

1129
00:42:20.100 --> 00:42:21.660
their demandiness towards you.

1130
00:42:21.660 --> 00:42:22.820
They're more of a pain.

1131
00:42:22.820 --> 00:42:25.260
You decrease your revenue per customer.

1132
00:42:25.260 --> 00:42:28.780
So you have less money to actually like do the thing that you deliver.

1133
00:42:28.780 --> 00:42:34.300
You have less profit, less value for yourself, less perception of impact, lower service levels

1134
00:42:34.300 --> 00:42:38.220
and your whole sales team, which sometimes when you start it's just you, your personal

1135
00:42:38.220 --> 00:42:39.780
conviction drops.

1136
00:42:39.780 --> 00:42:43.340
So wouldn't it be so much better to increase their emotional investment, increase results,

1137
00:42:43.340 --> 00:42:46.860
increase demandiness, increase the revenue for fulfillment so you can get better talent

1138
00:42:46.860 --> 00:42:51.340
and have more profit, increase your own perception of self, increase the service levels

1139
00:42:51.340 --> 00:42:54.620
you have, increase the impact and increase your own conviction.

1140
00:42:54.620 --> 00:42:56.620
Yeah, probably.

1141
00:42:56.620 --> 00:43:00.660
And so the thing is is that changing your prices is the single easiest thing that you can

1142
00:43:00.660 --> 00:43:04.700
do operationally that can make you more money and you should always exhaust that as fast

1143
00:43:04.700 --> 00:43:07.740
as you can before thinking about other things.

1144
00:43:07.740 --> 00:43:10.260
Because literally the only thing you need to do when you raise your prices is just when

1145
00:43:10.260 --> 00:43:12.340
you get to the end of the sale, say a different number.

1146
00:43:12.340 --> 00:43:14.380
Alex, my name's Alex.

1147
00:43:14.380 --> 00:43:15.380
What's up?

1148
00:43:15.380 --> 00:43:16.380
Yeah.

1149
00:43:16.380 --> 00:43:19.900
We sell residential window replacements to homeowners.

1150
00:43:19.900 --> 00:43:20.900
Okay.

1151
00:43:20.900 --> 00:43:24.340
We did 84 million in revenue last year.

1152
00:43:24.340 --> 00:43:27.380
Residential windows to homeowners.

1153
00:43:27.380 --> 00:43:28.380
To homeowners.

1154
00:43:28.380 --> 00:43:29.380
Okay.

1155
00:43:29.380 --> 00:43:30.380
Got it.

1156
00:43:30.380 --> 00:43:31.380
84.

1157
00:43:31.380 --> 00:43:32.380
Okay.

1158
00:43:32.380 --> 00:43:33.380
Yep.

1159
00:43:33.380 --> 00:43:34.380
Today we have had a Google Sheets empire.

1160
00:43:34.380 --> 00:43:35.380
A what empire?

1161
00:43:35.380 --> 00:43:36.380
A Google Sheets empire.

1162
00:43:36.380 --> 00:43:37.380
Oh, Google Sheets empire.

1163
00:43:37.380 --> 00:43:39.100
And we're starting to build out a HubSpot.

1164
00:43:39.100 --> 00:43:41.580
We spent the last few months building up the frameworks of our HubSpot.

1165
00:43:41.580 --> 00:43:43.100
Are you involved in it?

1166
00:43:43.100 --> 00:43:44.100
Very involved.

1167
00:43:44.100 --> 00:43:45.100
Okay.

1168
00:43:45.100 --> 00:43:46.100
Good.

1169
00:43:46.100 --> 00:43:49.020
That's what I wanted to ask you about because I know you just moved out your portfolio

1170
00:43:49.020 --> 00:43:50.300
companies to HubSpot.

1171
00:43:50.300 --> 00:43:51.300
Who said that?

1172
00:43:51.300 --> 00:43:52.300
You.

1173
00:43:52.300 --> 00:43:53.300
When?

1174
00:43:53.300 --> 00:43:54.300
On one of your podcasts.

1175
00:43:54.300 --> 00:43:55.300
Jesus.

1176
00:43:55.300 --> 00:43:56.300
It's like every.

1177
00:43:56.300 --> 00:43:57.300
It's like I say it on one podcast like four years ago.

1178
00:43:57.300 --> 00:43:58.300
It's like everyone.

1179
00:43:58.300 --> 00:43:59.900
There's like the best HubSpot endorsement ever.

1180
00:43:59.900 --> 00:44:00.900
Anyways.

1181
00:44:00.900 --> 00:44:01.900
Yeah.

1182
00:44:01.900 --> 00:44:02.900
Yeah.

1183
00:44:02.900 --> 00:44:03.900
Yeah.

1184
00:44:03.900 --> 00:44:04.900
The question I have.

1185
00:44:04.900 --> 00:44:05.900
So we're going to roll this out across 16 offices.

1186
00:44:05.900 --> 00:44:06.900
Yeah.

1187
00:44:06.900 --> 00:44:07.900
Hopefully a hard launch march.

1188
00:44:07.900 --> 00:44:08.900
First.

1189
00:44:08.900 --> 00:44:09.900
Cool.

1190
00:44:09.900 --> 00:44:10.900
I don't want to pay the ignorance tax if I don't have to.

1191
00:44:10.900 --> 00:44:11.900
So what advice would you have?

1192
00:44:11.900 --> 00:44:12.900
Stake.

1193
00:44:12.900 --> 00:44:16.420
Basically you just need like your CEO of IT for basically this whole quarter.

1194
00:44:16.420 --> 00:44:18.020
It's the easiest way to say it.

1195
00:44:18.020 --> 00:44:22.700
And so I would have really rapid feedback loops with each of the department heads.

1196
00:44:22.700 --> 00:44:25.620
If you have functional heads at the holding company.

1197
00:44:25.620 --> 00:44:28.460
And then you'd want to have basically separate lines of communication for all the location

1198
00:44:28.460 --> 00:44:29.460
heads.

1199
00:44:29.460 --> 00:44:31.700
So I think about do you use Slack or something like that?

1200
00:44:31.700 --> 00:44:32.700
Just boxer.

1201
00:44:32.700 --> 00:44:33.700
Yeah.

1202
00:44:33.700 --> 00:44:34.700
Really?

1203
00:44:34.700 --> 00:44:35.700
Yeah.

1204
00:44:35.700 --> 00:44:36.700
Jesus.

1205
00:44:36.700 --> 00:44:37.700
Okay.

1206
00:44:37.700 --> 00:44:38.700
Yeah.

1207
00:44:38.700 --> 00:44:39.900
So I'd want to have basically different threads by function.

1208
00:44:39.900 --> 00:44:41.180
So one is the actual function.

1209
00:44:41.180 --> 00:44:45.060
So people who are handling sales, people who are in marketing and I'd have the leaders there.

1210
00:44:45.060 --> 00:44:48.420
And then I still want like you basically want the different slices, basically lines of

1211
00:44:48.420 --> 00:44:52.780
communication to the different slices of the org so that you can get as much transparency,

1212
00:44:52.780 --> 00:44:58.260
top down into how it's working for them and making their life easier.

1213
00:44:58.260 --> 00:45:03.660
And then that way you can triage basically which because you have limited resources in terms

1214
00:45:03.660 --> 00:45:06.900
of which of these bugs are we going to fix, you know, which process flow sucks.

1215
00:45:06.900 --> 00:45:07.900
Right.

1216
00:45:07.900 --> 00:45:12.420
And then you can basically stack order which of these things as a high stripper for revenue.

1217
00:45:12.420 --> 00:45:16.180
And you can't really do it appropriately unless you basically can drink and all that

1218
00:45:16.180 --> 00:45:17.340
all that information.

1219
00:45:17.340 --> 00:45:18.500
And as are you CEO?

1220
00:45:18.500 --> 00:45:19.500
No.

1221
00:45:19.500 --> 00:45:20.500
I'm okay.

1222
00:45:20.500 --> 00:45:21.500
Yeah.

1223
00:45:21.500 --> 00:45:22.500
But you're in charge of it.

1224
00:45:22.500 --> 00:45:23.500
So you're CEO of this.

1225
00:45:23.500 --> 00:45:29.500
So that's basically it's just like you need to eat, breathe and sleep the stuff.

1226
00:45:29.500 --> 00:45:30.500
Okay.

1227
00:45:30.500 --> 00:45:31.500
That's helpful.

1228
00:45:31.500 --> 00:45:32.500
Thank you.

1229
00:45:32.500 --> 00:45:33.500
Yeah.

1230
00:45:33.500 --> 00:45:37.740
Just like it's okay that it is unscalable got it.

1231
00:45:37.740 --> 00:45:39.940
But you have to do that in order to make it scalable.

1232
00:45:39.940 --> 00:45:40.940
Yeah.

1233
00:45:40.940 --> 00:45:41.940
Thank you.

1234
00:45:41.940 --> 00:45:42.940
Hi.

1235
00:45:42.940 --> 00:45:51.820
My name is Julie Teap Teller and we sell travel coaching to people who want to travel more

1236
00:45:51.820 --> 00:45:52.820
frequently.

1237
00:45:52.820 --> 00:45:53.820
I'm really curious.

1238
00:45:53.820 --> 00:45:54.820
Leave free or almost free.

1239
00:45:54.820 --> 00:45:57.540
You already know all our business stuff.

1240
00:45:57.540 --> 00:46:02.300
So my question is kind of picking back and on what you were talking about earlier with

1241
00:46:02.300 --> 00:46:06.500
your six pages of ideas were in a room full of people that are always trying to optimize

1242
00:46:06.500 --> 00:46:09.420
as well as always has new ideas.

1243
00:46:09.420 --> 00:46:15.260
We had an idea for a B2B offer for adding a 50k concierge offer for businesses that

1244
00:46:15.260 --> 00:46:20.620
are already spending half a million or more on travel annually.

1245
00:46:20.620 --> 00:46:25.740
So when is it appropriate to add a new offer while you're already like still working and

1246
00:46:25.740 --> 00:46:26.740
optimizing your.

1247
00:46:26.740 --> 00:46:27.740
Yeah.

1248
00:46:27.740 --> 00:46:28.740
Just one of the ones.

1249
00:46:28.740 --> 00:46:29.740
Sorry.

1250
00:46:29.740 --> 00:46:30.740
I just wouldn't.

1251
00:46:30.740 --> 00:46:31.740
You would.

1252
00:46:31.740 --> 00:46:32.740
I wouldn't do it.

1253
00:46:32.740 --> 00:46:33.740
Okay.

1254
00:46:33.740 --> 00:46:36.260
You're going to go from six to 15 this year.

1255
00:46:36.260 --> 00:46:37.260
Do that.

1256
00:46:37.260 --> 00:46:38.260
Okay.

1257
00:46:38.260 --> 00:46:47.060
I'm not trying to be short to like these are the mistakes that we make.

1258
00:46:47.060 --> 00:46:50.060
There will literally always be money on the table.

1259
00:46:50.060 --> 00:46:53.660
Like you can't sell everything as much as you want to.

1260
00:46:53.660 --> 00:46:55.460
Like you just can't.

1261
00:46:55.460 --> 00:47:00.980
And the thing is is like if said differently, if this company can go from six to 15 and

1262
00:47:00.980 --> 00:47:05.220
then actually goes from 15 to 30 and then actually goes from 30 to 60.

1263
00:47:05.220 --> 00:47:09.060
If you hit the same numbers and have two different product lines versus one, which would

1264
00:47:09.060 --> 00:47:12.340
you rather have one, right?

1265
00:47:12.340 --> 00:47:14.940
And I'll also tell you that if you just do it with one, you'll increase the likelihood,

1266
00:47:14.940 --> 00:47:18.300
not decrease the likelihood that occurs.

1267
00:47:18.300 --> 00:47:19.300
And so like that's all that.

1268
00:47:19.300 --> 00:47:20.900
That's the focus and discipline stuff that you hear all day.

1269
00:47:20.900 --> 00:47:26.900
They Steve Jobs and all that like it's just it's he called it the the quantity of unbelievable

1270
00:47:26.900 --> 00:47:30.660
ideas that you know you could crush that you say no to.

1271
00:47:30.660 --> 00:47:32.620
That's what focuses.

1272
00:47:32.620 --> 00:47:37.740
So how do you discern when to pursue something off of that six page list?

1273
00:47:37.740 --> 00:47:41.460
When we have bandwidth.

1274
00:47:41.460 --> 00:47:45.700
Which if you're continually like if you're basically doubling every year.

1275
00:47:45.700 --> 00:47:48.140
Your bandwidth is getting eating up by doubling.

1276
00:47:48.140 --> 00:47:50.140
So just double.

1277
00:47:50.140 --> 00:47:52.980
Basically it's like why why would we do it?

1278
00:47:52.980 --> 00:47:53.980
Okay.

1279
00:47:53.980 --> 00:47:54.980
Thank you.

1280
00:47:54.980 --> 00:47:55.980
Yeah.

1281
00:47:56.980 --> 00:48:04.300
But if it's like I want to grow, why would I like why like then let's just grow with

1282
00:48:04.300 --> 00:48:07.380
the thing that already is working and is really profitable and we know everything about

1283
00:48:07.380 --> 00:48:11.140
it rather than this you know crazy girl in the red dress that like walking by and like

1284
00:48:11.140 --> 00:48:14.340
has a crazy boyfriend has grabbed you like what's going on you know.

1285
00:48:14.340 --> 00:48:15.340
So like why bother?

1286
00:48:15.340 --> 00:48:16.620
It's like we have this girl.

1287
00:48:16.620 --> 00:48:17.620
She loves us.

1288
00:48:17.620 --> 00:48:18.620
She knows me.

1289
00:48:18.620 --> 00:48:19.620
I know her.

1290
00:48:19.620 --> 00:48:20.620
Let's go.

1291
00:48:20.620 --> 00:48:25.420
So focus is the quality and quantity of things that I say no to.

1292
00:48:25.420 --> 00:48:29.060
And so if you think of a commitment, the ultimate commitment is the elimination alternatives.

1293
00:48:29.060 --> 00:48:32.380
You have nothing that you can do besides that one thing.

1294
00:48:32.380 --> 00:48:36.740
That is the ultimate like the perfectly focused person who plays video games would do nothing

1295
00:48:36.740 --> 00:48:38.020
but play video games.

1296
00:48:38.020 --> 00:48:42.060
Everything that is not that decreases his focus and so focus isn't like are you focused

1297
00:48:42.060 --> 00:48:44.260
or not but how focused are you right?

1298
00:48:44.260 --> 00:48:49.140
And so the idea is the more things we eliminate the more focused we are.

1299
00:48:49.140 --> 00:48:52.380
And so that is always my constant reminder, especially the Steve Jobs quote because he's

1300
00:48:52.380 --> 00:48:55.420
like it has to be something that you want to do in your core.

1301
00:48:55.420 --> 00:48:57.980
You know you could crush and you still have to say no.

1302
00:48:57.980 --> 00:48:58.980
Yes sir.

1303
00:48:58.980 --> 00:48:59.980
Hey Alex.

1304
00:48:59.980 --> 00:49:00.980
Okay.

1305
00:49:00.980 --> 00:49:02.300
The coaching federation internationally.

1306
00:49:02.300 --> 00:49:03.780
You have the certification.

1307
00:49:03.780 --> 00:49:05.300
18 people is the cap.

1308
00:49:05.300 --> 00:49:06.660
How do we get around it?

1309
00:49:06.660 --> 00:49:07.660
Let's go.

1310
00:49:07.660 --> 00:49:12.860
So first of all, thank you.

1311
00:49:12.860 --> 00:49:15.380
You and your team for things that you are doing.

1312
00:49:15.380 --> 00:49:16.380
No you bet.

1313
00:49:16.940 --> 00:49:19.020
Yeah, my name is Paulus.

1314
00:49:19.020 --> 00:49:22.580
This is what I'm doing that you said already.

1315
00:49:22.580 --> 00:49:28.700
And for the I guess three or four years seems like I just kind of lost something like

1316
00:49:28.700 --> 00:49:36.620
why or stuff like this because two and a half maybe already three years ago, we planned

1317
00:49:36.620 --> 00:49:44.820
to go from what I have right now because it's a one man company, just a few team members.

1318
00:49:44.820 --> 00:49:54.100
Now it's 416 revenue the last year and the goal was 2.3 mil.

1319
00:49:54.100 --> 00:49:59.140
Maybe this is the why I lost this on the way.

1320
00:49:59.140 --> 00:50:06.420
So I just wanted to know what's your why, why you are doing what you are doing.

1321
00:50:06.420 --> 00:50:08.780
I like working.

1322
00:50:08.780 --> 00:50:13.780
I'm dead like I spent a year thinking about that question when I had enough money to

1323
00:50:13.780 --> 00:50:18.740
do whatever I wanted and just like could just live on treasury bills for those in my life.

1324
00:50:18.740 --> 00:50:22.780
When I looked back on the days that I enjoyed most, they had three things in common.

1325
00:50:22.780 --> 00:50:24.260
I worked out.

1326
00:50:24.260 --> 00:50:30.180
I ate with people that I liked and I worked hard and had something to show for it and

1327
00:50:30.180 --> 00:50:31.940
had nothing left in the tank.

1328
00:50:31.940 --> 00:50:35.460
And so once I realized that those were the days that I enjoyed the most, that I made

1329
00:50:35.460 --> 00:50:39.380
it my goal to live as many of those days in a row as I could.

1330
00:50:39.380 --> 00:50:47.500
And the way that I live my life bothers a lot of people and that's okay.

1331
00:50:47.500 --> 00:50:55.220
And so I think, I mean, I got that advice when I was 22 years old from a person in my

1332
00:50:55.220 --> 00:51:02.420
past and I had a good weekend and I started work and she said you're in a good mood and

1333
00:51:02.420 --> 00:51:04.060
I was like yeah, it's just, you know, a good weekend.

1334
00:51:04.060 --> 00:51:07.740
She was like I'm pretty sure the secret happiness is living as many days in a row like that

1335
00:51:07.740 --> 00:51:08.740
as you can.

1336
00:51:08.740 --> 00:51:12.940
And I was like the closest to operationalizing kind of joy that I'd ever heard.

1337
00:51:12.940 --> 00:51:14.740
And so I have just stuck with that.

1338
00:51:14.740 --> 00:51:17.820
And I think that the things that bring you joy will change over time.

1339
00:51:17.820 --> 00:51:20.860
But I think that structure of just trying to find what that perfect day is and living

1340
00:51:20.860 --> 00:51:24.300
it as many days in a row as you can is kind of the way to do it.

1341
00:51:24.300 --> 00:51:25.300
That's how I do it.

1342
00:51:25.300 --> 00:51:26.300
You can do it.

1343
00:51:26.300 --> 00:51:27.300
Fine.

1344
00:51:27.300 --> 00:51:28.300
Yeah.

1345
00:51:28.300 --> 00:51:37.060
As a side note, for those of you who feel like you have lost your passion for your prospect

1346
00:51:38.060 --> 00:51:40.020
and I'll give you a simple example.

1347
00:51:40.020 --> 00:51:46.900
Like I used to sell weight loss to them in between the age of 25 and 55.

1348
00:51:46.900 --> 00:51:51.460
And at a certain point, I just really stopped caring.

1349
00:51:51.460 --> 00:51:55.340
They were like oh my god, my life changed forever and I was like I know you had a calorie

1350
00:51:55.340 --> 00:51:59.500
deficit and you moved like yes, that's how that works.

1351
00:51:59.500 --> 00:52:04.620
And I would have to kind of like fake myself into feeling excited about it.

1352
00:52:04.620 --> 00:52:09.820
And it really bothered me because I was like I quit my job to do something that I loved

1353
00:52:09.820 --> 00:52:11.220
and I don't really care about this.

1354
00:52:11.220 --> 00:52:15.980
I ended up loving business more than I loved weight loss and then I fell into that.

1355
00:52:15.980 --> 00:52:21.060
But I had a friend who was a personal trainer who quit being a personal trainer and started

1356
00:52:21.060 --> 00:52:22.740
a cookie business.

1357
00:52:22.740 --> 00:52:26.220
Brick and mortar, big cookie store like did it right.

1358
00:52:26.220 --> 00:52:29.820
And I remember being like are you passionate about cookies?

1359
00:52:29.820 --> 00:52:31.860
And he was like not really.

1360
00:52:32.660 --> 00:52:33.820
And I was like but he crushed it.

1361
00:52:33.820 --> 00:52:34.740
He did a really good job.

1362
00:52:34.740 --> 00:52:36.220
Everything was like really tight.

1363
00:52:36.220 --> 00:52:44.340
And what I realized was that he was passionate about doing things well rather than the cookie

1364
00:52:44.340 --> 00:52:45.660
business.

1365
00:52:45.660 --> 00:52:49.020
And once I realized that I was like oh, I don't have to be passionate about weight loss

1366
00:52:49.020 --> 00:52:51.420
but I can be passionate about being good.

1367
00:52:51.420 --> 00:52:54.020
And just saying like when I do things, I will do them well.

1368
00:52:54.020 --> 00:52:57.500
And I think that has been something that has helped me stay motivated in times when

1369
00:52:57.500 --> 00:52:59.900
I feel less.

1370
00:52:59.900 --> 00:53:03.380
I had kind of fallen out of love a little bit with his business, which is I just want

1371
00:53:03.380 --> 00:53:06.100
to say if you're an entrepreneur, I get it and you're not alone.

1372
00:53:06.100 --> 00:53:07.100
All right.

1373
00:53:07.100 --> 00:53:08.100
It's very common.

1374
00:53:08.100 --> 00:53:11.420
You know, you can beat up for two years, three years, five years, you're trying to

1375
00:53:11.420 --> 00:53:12.900
support your family.

1376
00:53:12.900 --> 00:53:16.060
And at some point you just feel like it's just the amount of crap that you have to do

1377
00:53:16.060 --> 00:53:17.060
with on a regular basis.

1378
00:53:17.060 --> 00:53:19.900
You almost just like it's no longer romantic anymore.

1379
00:53:19.900 --> 00:53:25.340
But the thing that really changed my perspective on this was leveling up the ideal that I wanted

1380
00:53:25.340 --> 00:53:27.780
to be loyal to.

1381
00:53:27.780 --> 00:53:28.780
Right.

1382
00:53:28.780 --> 00:53:31.980
So originally it was like I want to be loyal to my interest in weight loss or my passion

1383
00:53:31.980 --> 00:53:33.620
weight loss and fitness.

1384
00:53:33.620 --> 00:53:36.340
But over time I just found new interests.

1385
00:53:36.340 --> 00:53:41.100
And for me, from a forever perspective, I always want to be excellent.

1386
00:53:41.100 --> 00:53:46.300
And so that becomes a hypothetical ideal that I can always chase and never achieve.

1387
00:53:46.300 --> 00:53:52.100
So like I want to be great at what I do and do excellent work.

1388
00:53:52.100 --> 00:53:56.940
And so every day I can improve towards that ideal independent of whether I'm baking cookies

1389
00:53:56.940 --> 00:54:02.540
or selling weight loss or doing IT services or cybersecurity or coding for software or

1390
00:54:02.540 --> 00:54:04.260
sweeping floors.

1391
00:54:04.260 --> 00:54:07.020
Like it's a very trite statement of how you do one thing is how you do everything because

1392
00:54:07.020 --> 00:54:08.260
I don't necessarily agree with that.

1393
00:54:08.260 --> 00:54:12.260
But how you do the things you care about is how you do the things you care about.

1394
00:54:12.260 --> 00:54:13.660
Hey Alex.

1395
00:54:13.660 --> 00:54:14.660
Hello.

1396
00:54:14.660 --> 00:54:15.660
My name is Heather.

1397
00:54:15.660 --> 00:54:18.260
I own a consulting firm called Channel Meeven.

1398
00:54:18.260 --> 00:54:23.260
We help large IT companies sell better through and with their partners.

1399
00:54:23.260 --> 00:54:24.260
Okay.

1400
00:54:24.260 --> 00:54:27.180
I revenue was 3.6 million.

1401
00:54:27.180 --> 00:54:28.980
I sold it in 2021.

1402
00:54:28.980 --> 00:54:29.980
Right.

1403
00:54:29.980 --> 00:54:30.980
Thanks.

1404
00:54:30.980 --> 00:54:32.820
Ran marketing for the company that acquired us.

1405
00:54:32.820 --> 00:54:40.460
They called it an aquahire and convinced the board six months ago that I was done and

1406
00:54:40.460 --> 00:54:41.900
they should give me the name back.

1407
00:54:41.900 --> 00:54:44.420
So got the name, got the IP.

1408
00:54:44.420 --> 00:54:48.220
I get to start over, not make the mistakes I made before.

1409
00:54:48.220 --> 00:54:49.580
The market has shrunk.

1410
00:54:49.580 --> 00:54:54.780
So that channel role is being pushed out.

1411
00:54:54.780 --> 00:54:58.780
And when I started it, there were five consulting companies I competed with.

1412
00:54:58.780 --> 00:55:02.380
Now there are probably 200.

1413
00:55:02.380 --> 00:55:07.620
Do I focus more, like channel marketing is probably what I'm best known for.

1414
00:55:07.620 --> 00:55:13.580
Do I focus more on that in this industry or do I go just B to B and like help kitchen

1415
00:55:13.580 --> 00:55:16.180
and bath companies sell through dealers or automotive.

1416
00:55:16.180 --> 00:55:20.020
I can say channel, you explain, dial into the channel, channel sales that you're talking

1417
00:55:20.020 --> 00:55:21.020
about.

1418
00:55:21.020 --> 00:55:22.020
Yeah.

1419
00:55:22.020 --> 00:55:26.940
So a large IT company sells direct, but they also sell through hundreds of thousands of

1420
00:55:26.940 --> 00:55:31.500
mom and pop channel partners or Accenture or now Marketplace.

1421
00:55:31.500 --> 00:55:32.500
So like affiliates.

1422
00:55:32.500 --> 00:55:33.500
Yeah.

1423
00:55:33.500 --> 00:55:34.500
Got it.

1424
00:55:34.500 --> 00:55:35.500
Okay.

1425
00:55:35.500 --> 00:55:37.580
So you're an affiliate expert for big IT companies and you have a network of people that

1426
00:55:37.580 --> 00:55:40.460
can do basically sell their services for them with a markup.

1427
00:55:40.460 --> 00:55:41.460
Yeah.

1428
00:55:41.580 --> 00:55:47.700
Basically made an announcement on LinkedIn that I was back and did 360K in four months.

1429
00:55:47.700 --> 00:55:48.700
That's awesome.

1430
00:55:48.700 --> 00:55:49.700
Yeah.

1431
00:55:49.700 --> 00:55:50.700
Thanks.

1432
00:55:50.700 --> 00:55:55.780
So the question is, well, I mean, it sounds like you did okay with your announcement.

1433
00:55:55.780 --> 00:55:59.500
Why do you feel like you can't outcompete the other people?

1434
00:55:59.500 --> 00:56:04.980
I just feel like my champions, the 14,000 people that follow me on LinkedIn are starting

1435
00:56:04.980 --> 00:56:09.140
to phase out of it and it's just gotten super crowded.

1436
00:56:09.140 --> 00:56:10.380
And this is the channel part.

1437
00:56:10.380 --> 00:56:11.900
So the crowd apart doesn't bother me at all.

1438
00:56:11.900 --> 00:56:12.900
Yeah.

1439
00:56:12.900 --> 00:56:13.900
Because that just means that there's lots of demand.

1440
00:56:13.900 --> 00:56:15.700
My clients are the tech companies.

1441
00:56:15.700 --> 00:56:16.700
So HP Google.

1442
00:56:16.700 --> 00:56:17.700
Yeah.

1443
00:56:17.700 --> 00:56:20.700
So the 14,000 people, you have a lot of high up people in those companies who follow you.

1444
00:56:20.700 --> 00:56:21.700
Yeah.

1445
00:56:21.700 --> 00:56:30.020
I mean, you could do either path, but I mean, it's a good question.

1446
00:56:30.020 --> 00:56:34.340
It was, I think it's, I think it's more the statements that would initially jar me of

1447
00:56:34.340 --> 00:56:36.860
like, it's saturated.

1448
00:56:36.860 --> 00:56:42.740
I think it's going away, things like that because, you know, my, my, my big questions are always

1449
00:56:42.740 --> 00:56:44.540
logic evidence utility.

1450
00:56:44.540 --> 00:56:47.020
So what does that mean?

1451
00:56:47.020 --> 00:56:49.020
I like to find that for me.

1452
00:56:49.020 --> 00:56:50.180
How do you know that?

1453
00:56:50.180 --> 00:56:51.180
And so what?

1454
00:56:51.180 --> 00:56:52.780
Logic evidence utility.

1455
00:56:52.780 --> 00:56:56.500
So when I asked, you know, channel partners, like, please define that for me.

1456
00:56:56.500 --> 00:56:59.180
It's like, okay, that's affiliates.

1457
00:56:59.180 --> 00:57:03.220
How do you know that they are going down?

1458
00:57:03.220 --> 00:57:04.220
Like how do you know that?

1459
00:57:04.220 --> 00:57:08.540
They're all calling me asking if I know of jobs and I'm tracking how long they're on

1460
00:57:08.540 --> 00:57:14.140
the market and on average, it's about 11 months.

1461
00:57:14.140 --> 00:57:15.620
Who's on the market for?

1462
00:57:15.620 --> 00:57:16.740
They call it a channel chief.

1463
00:57:16.740 --> 00:57:18.780
So it's like chief partner officer.

1464
00:57:18.780 --> 00:57:19.780
Okay.

1465
00:57:19.780 --> 00:57:20.780
And this we were looking for jobs.

1466
00:57:20.780 --> 00:57:21.780
Yeah.

1467
00:57:21.780 --> 00:57:23.580
Because they're all, they're all getting let go.

1468
00:57:23.580 --> 00:57:27.900
So then the VP of channel sales reports to the CSO, the VP of channel marketing reports

1469
00:57:27.900 --> 00:57:31.740
to the CMO, like that level is just getting.

1470
00:57:31.740 --> 00:57:35.620
And when you say a lot of people reach out to you, like how many is that?

1471
00:57:35.620 --> 00:57:41.100
In the last year, because I was still in the channel when the company acquired us, I'd

1472
00:57:41.100 --> 00:57:43.700
say probably 40 people.

1473
00:57:43.700 --> 00:57:46.700
Okay.

1474
00:57:46.700 --> 00:57:54.500
The big conflicting data point I have is that you like made a post and made 360 ground.

1475
00:57:54.500 --> 00:57:55.500
Yeah.

1476
00:57:55.500 --> 00:57:56.500
So just.

1477
00:57:56.500 --> 00:57:57.500
Yeah.

1478
00:57:57.500 --> 00:58:00.060
No, I mean, it's real though.

1479
00:58:00.060 --> 00:58:04.740
I think, like I'll tell you what I like, if I'm in your shoes, I get excited by this

1480
00:58:04.740 --> 00:58:07.380
stuff, maybe because I'm broken on the inside, who knows.

1481
00:58:07.380 --> 00:58:12.620
But like, I am you, I work, I have little kids 50% of the time, I work non-stop when they're

1482
00:58:12.620 --> 00:58:13.620
not with me.

1483
00:58:13.620 --> 00:58:14.620
Yeah.

1484
00:58:14.620 --> 00:58:17.300
And like I see everyone bleeding and I'm like, let's, let's finish them off.

1485
00:58:17.300 --> 00:58:18.300
You know what I mean?

1486
00:58:18.300 --> 00:58:21.740
Like they didn't deserve to be in business to begin with and I will make sure that everyone

1487
00:58:21.740 --> 00:58:22.740
knows.

1488
00:58:22.740 --> 00:58:27.300
And so if you have this in and you're better and you're seen as a market leader, if things

1489
00:58:27.300 --> 00:58:32.140
are consolidating, for example, then it means that like as long as, if the industry isn't

1490
00:58:32.140 --> 00:58:35.420
going away, but it's consolidating, then it means a winner take all.

1491
00:58:35.420 --> 00:58:39.860
So it just means the stakes got higher, which if you're better, that's a good thing.

1492
00:58:39.860 --> 00:58:40.860
Awesome.

1493
00:58:40.860 --> 00:58:41.860
Thank you.

1494
00:58:41.860 --> 00:58:42.860
No, you bet.

1495
00:58:42.860 --> 00:58:47.980
What Heather presented with is super important because a lot of businesses deal with the

1496
00:58:47.980 --> 00:58:52.900
same issue, which is the perception that the market's getting harder and the perception

1497
00:58:52.900 --> 00:58:58.860
that saturation has gone up and those both may be true and so what, right?

1498
00:58:58.860 --> 00:59:02.900
And so the thing is is that like business pretty much always gets harder and in the opportunities

1499
00:59:02.900 --> 00:59:06.460
where you have in the sectors where there's opportunity, more fish are going to come,

1500
00:59:06.460 --> 00:59:07.460
right?

1501
00:59:07.460 --> 00:59:08.460
More shocks are going to answer.

1502
00:59:08.460 --> 00:59:10.780
But like that's not always a reason to not pursue it.

1503
00:59:10.780 --> 00:59:13.060
It just means that you have more competition, you have to be better.

1504
00:59:13.060 --> 00:59:18.460
And so in some ways, I can see lots of demand as a big market to go after and if you're

1505
00:59:18.460 --> 00:59:20.580
good, there's just more for you.

1506
00:59:20.580 --> 00:59:26.420
Now I want to be clear, there's a difference between consolidation and degradation.

1507
00:59:26.420 --> 00:59:28.820
So a degrading industry would be like newspapers, right?

1508
00:59:28.820 --> 00:59:31.220
They're getting smaller and smaller every year.

1509
00:59:31.220 --> 00:59:35.500
But a consolidating industry is when the same amount of demands there is just aggregating

1510
00:59:35.500 --> 00:59:38.100
into fewer, fewer customers.

1511
00:59:38.100 --> 00:59:45.060
And so given the fact that Heather is better at high level deals with these bigger companies,

1512
00:59:45.060 --> 00:59:50.940
it felt like a good, a good risk adjusted move for her to go after that kind of big pie

1513
00:59:50.940 --> 00:59:54.580
because she already had a company, she'd already sold it, she had good connections there.

1514
00:59:54.580 --> 00:59:57.500
She immediately made a post and made, you know, three, four hundred thousand dollars to

1515
00:59:57.500 --> 00:59:58.500
me.

1516
00:59:58.500 --> 01:00:00.460
It's like she's got a good reputation, obviously.

1517
01:00:00.460 --> 01:00:02.780
Like it seems as though she's doing a good job.

1518
01:00:02.780 --> 01:00:07.260
And so I have a hard time telling someone to start brand new in totally different industries,

1519
01:00:07.260 --> 01:00:11.100
totally different spaces where they don't know the devil that's going to come.

1520
01:00:11.100 --> 01:00:14.980
Whereas here it's the devil she knows because she gets to harness the compounding benefit

1521
01:00:14.980 --> 01:00:18.780
of being an industry for a long time, is that you know how it works.

1522
01:00:18.780 --> 01:00:20.500
And you know how the game has played.

1523
01:00:20.500 --> 01:00:23.180
And so if you look at some of the richest people in the world, as people who've just been

1524
01:00:23.180 --> 01:00:25.060
in the same industry for their whole careers.

1525
01:00:25.060 --> 01:00:28.060
And so it's really hard for me to give someone advice to be like, yeah, just change it.

1526
01:00:28.060 --> 01:00:34.020
Hey Alex, my name is Chris and I have a question about business I'm starting soon.

1527
01:00:34.020 --> 01:00:35.780
So I have no problems right now.

1528
01:00:35.780 --> 01:00:39.340
For my background, I'm a field star, I've been in power practice, I have an academy

1529
01:00:39.340 --> 01:00:43.180
where I teach medical professionals in my own concept called crack and move.

1530
01:00:43.180 --> 01:00:45.100
And I'm doing social media.

1531
01:00:45.100 --> 01:00:46.100
Okay.

1532
01:00:46.100 --> 01:00:51.300
And I invented a tool where you can crack yourself, you're back like a self crack, if you

1533
01:00:51.300 --> 01:00:52.300
were.

1534
01:00:52.300 --> 01:00:53.300
You have self crack, yeah.

1535
01:00:53.300 --> 01:00:57.500
More like a black row of huster roll, but really intense and good.

1536
01:00:57.500 --> 01:01:02.940
And you can use it as a customer for your own, for your better posture and pain relief.

1537
01:01:02.940 --> 01:01:09.500
But also the professional for especially some small women have with some techniques problems.

1538
01:01:09.500 --> 01:01:10.500
You can go.

1539
01:01:10.500 --> 01:01:11.500
You're a big guy.

1540
01:01:11.500 --> 01:01:14.500
So when I want to crack you, I have to need a small guy.

1541
01:01:14.500 --> 01:01:16.380
So sometimes it's really hard.

1542
01:01:16.380 --> 01:01:21.740
And I would like to know, would you focus on one group for selling B2C, for example, just

1543
01:01:21.740 --> 01:01:26.940
to customer for the problems of cracking themself and with a posture program and everything,

1544
01:01:26.940 --> 01:01:29.500
or just the medicals.

1545
01:01:29.500 --> 01:01:34.780
And I have the medicals also in my academy with affiliate or both.

1546
01:01:34.780 --> 01:01:36.500
And so you are a car factor.

1547
01:01:36.500 --> 01:01:37.500
Yeah.

1548
01:01:37.500 --> 01:01:40.340
And you no longer have your practice.

1549
01:01:40.340 --> 01:01:43.940
I can, if I want, I have a waiting list and you have a practice.

1550
01:01:43.940 --> 01:01:44.940
Yeah, I have.

1551
01:01:44.940 --> 01:01:47.820
And then you also have an academy where you train other car factors.

1552
01:01:47.820 --> 01:01:48.820
Yes.

1553
01:01:48.820 --> 01:01:49.820
In my concept.

1554
01:01:49.820 --> 01:01:50.820
Yes.

1555
01:01:50.820 --> 01:01:53.420
And you also want to start a physical products business.

1556
01:01:53.420 --> 01:01:54.420
Yeah.

1557
01:01:54.420 --> 01:01:55.420
Because of skating.

1558
01:01:55.420 --> 01:01:56.420
It's time.

1559
01:01:56.420 --> 01:01:59.580
You don't want to leave money on the table.

1560
01:01:59.580 --> 01:02:05.100
So okay.

1561
01:02:05.100 --> 01:02:07.060
What's revenue right now?

1562
01:02:07.060 --> 01:02:10.820
And with my academy, I started one year ago and we have 500K.

1563
01:02:10.820 --> 01:02:12.460
Do you just started it a year ago?

1564
01:02:12.460 --> 01:02:13.460
Yeah.

1565
01:02:13.460 --> 01:02:16.020
Why are you starting another business?

1566
01:02:16.020 --> 01:02:17.820
Because it's so some problems.

1567
01:02:17.820 --> 01:02:21.020
And I found out because I feel, why not some newspapers?

1568
01:02:21.020 --> 01:02:22.020
You know what I mean?

1569
01:02:22.020 --> 01:02:23.420
So orange juice, people are thirsty.

1570
01:02:23.420 --> 01:02:24.420
I could.

1571
01:02:24.420 --> 01:02:25.420
Right.

1572
01:02:25.420 --> 01:02:26.420
No, I'm being real.

1573
01:02:26.420 --> 01:02:31.340
Because of maybe a social media audience, I have customers who are a waiting list.

1574
01:02:31.340 --> 01:02:34.740
I have the problem that many people want to treat them and I can't give them.

1575
01:02:34.740 --> 01:02:37.460
So I built some exes, special businesses.

1576
01:02:37.460 --> 01:02:38.460
You were used to them.

1577
01:02:38.460 --> 01:02:39.460
You were used to them.

1578
01:02:39.460 --> 01:02:40.460
You were used to them.

1579
01:02:40.460 --> 01:02:41.460
Businesses.

1580
01:02:41.460 --> 01:02:42.460
Yeah.

1581
01:02:42.460 --> 01:02:43.460
And you would have a third business.

1582
01:02:43.460 --> 01:02:44.460
And it's a physical product business.

1583
01:02:44.460 --> 01:02:45.460
Totally different business.

1584
01:02:45.460 --> 01:02:46.460
Yeah.

1585
01:02:46.460 --> 01:02:48.460
I have some partners in it, so I just have to do the marketing and the development of

1586
01:02:48.460 --> 01:02:49.460
the tool itself.

1587
01:02:49.460 --> 01:02:53.100
And we already did it, so it's ready to launch.

1588
01:02:53.100 --> 01:03:00.620
But the problem is, yeah, maybe you know, sometimes it's boring just to do one thing

1589
01:03:00.620 --> 01:03:02.220
at once.

1590
01:03:02.220 --> 01:03:05.820
But in business advice, maybe it's better.

1591
01:03:05.820 --> 01:03:07.900
What's your goal?

1592
01:03:07.900 --> 01:03:10.820
Good question.

1593
01:03:10.820 --> 01:03:13.060
Of course, I want to make money.

1594
01:03:13.060 --> 01:03:19.100
But of course, I want to do very nice products who have a nice impact of the...

1595
01:03:19.100 --> 01:03:23.700
Yeah, but what do you want to have happened from that?

1596
01:03:23.700 --> 01:03:24.940
I think the focus.

1597
01:03:24.940 --> 01:03:26.620
So that's the problem.

1598
01:03:26.620 --> 01:03:27.620
You want focus?

1599
01:03:27.620 --> 01:03:29.980
And you want to do that by doing more things?

1600
01:03:30.060 --> 01:03:33.660
Yeah, and the problem is that's so combined to my brand.

1601
01:03:33.660 --> 01:03:37.420
So I have the problem that I can't...

1602
01:03:37.420 --> 01:03:40.220
I have so many customers, I can't offer them anything.

1603
01:03:40.220 --> 01:03:42.740
So I have limited time with my own treatments.

1604
01:03:42.740 --> 01:03:44.940
So I need time to develop some...

1605
01:03:44.940 --> 01:03:46.740
We have the academy.

1606
01:03:46.740 --> 01:03:47.740
Sorry?

1607
01:03:47.740 --> 01:03:48.740
We have the academy, though.

1608
01:03:48.740 --> 01:03:56.140
Yeah, but it's very hard to teach them my concept because it takes half a year,

1609
01:03:56.140 --> 01:03:59.220
so they can implement it in their own office.

1610
01:03:59.220 --> 01:04:03.980
So I try to reduce the hybrid model with online and everything, but it takes time because

1611
01:04:03.980 --> 01:04:08.180
of the brand protection quality, because I sent them my customers, and when my customers

1612
01:04:08.180 --> 01:04:12.740
go to them, I want that they're high treatment, higher treatment.

1613
01:04:12.740 --> 01:04:16.980
And the problems that the onboarding takes so long that the customers want to treatment,

1614
01:04:16.980 --> 01:04:18.580
and I have no time.

1615
01:04:18.580 --> 01:04:22.620
The people I'm teaching need time to learn it and get expert in it.

1616
01:04:22.620 --> 01:04:24.780
Do you think it takes time to build a big business?

1617
01:04:24.780 --> 01:04:25.780
Yeah.

1618
01:04:25.780 --> 01:04:26.780
Yeah, I believe you.

1619
01:04:27.060 --> 01:04:33.300
Yeah, but the problem is the social media makes all the follow us just...

1620
01:04:33.300 --> 01:04:37.100
Yeah, let me help for a second.

1621
01:04:37.100 --> 01:04:38.100
Sorry.

1622
01:04:38.100 --> 01:04:39.980
You're good, man.

1623
01:04:39.980 --> 01:04:42.780
You're also like, probably, you know, everyone's laughing, but like, you're probably

1624
01:04:42.780 --> 01:04:46.820
one out of four, one out of three of you here is in this exact same boat.

1625
01:04:46.820 --> 01:04:47.820
So...

1626
01:04:47.820 --> 01:04:49.820
Hope so.

1627
01:04:49.820 --> 01:04:52.140
Here's the thing.

1628
01:04:52.140 --> 01:04:56.060
The opportunity will only get bigger and not smaller.

1629
01:04:56.060 --> 01:05:02.100
So the rush that you have is a rush to do a smaller version of what you want.

1630
01:05:02.100 --> 01:05:05.180
Because if you get bigger on social media, you will have more customers who want to buy

1631
01:05:05.180 --> 01:05:06.180
your thing.

1632
01:05:06.180 --> 01:05:07.180
Yeah.

1633
01:05:07.180 --> 01:05:08.180
Right?

1634
01:05:08.180 --> 01:05:11.380
Yeah, the problems that the customers are now a little bit sad because they...

1635
01:05:11.380 --> 01:05:12.780
I have no offer for them.

1636
01:05:12.780 --> 01:05:13.780
Oh, no.

1637
01:05:13.780 --> 01:05:14.780
I have no offer.

1638
01:05:14.780 --> 01:05:16.780
I had nothing to sell anyone for years.

1639
01:05:16.780 --> 01:05:17.780
Okay.

1640
01:05:17.780 --> 01:05:25.460
So point being, I don't actually think I'm going to convince you.

1641
01:05:25.460 --> 01:05:27.460
I think you're going to do it.

1642
01:05:27.460 --> 01:05:28.460
No, I'm serious.

1643
01:05:28.460 --> 01:05:30.740
So I don't even know if there's a point.

1644
01:05:30.740 --> 01:05:32.380
You want to sell your thing.

1645
01:05:32.380 --> 01:05:33.460
You want to sell your widget.

1646
01:05:33.460 --> 01:05:34.460
Yeah.

1647
01:05:34.460 --> 01:05:36.460
So what am I going to do?

1648
01:05:36.460 --> 01:05:39.460
More likely to advise of focusing on just the professional.

1649
01:05:39.460 --> 01:05:43.300
You want me to tell you how to focus?

1650
01:05:43.300 --> 01:05:44.300
How would you do it?

1651
01:05:44.300 --> 01:05:46.500
You're doing several things at once, right?

1652
01:05:46.500 --> 01:05:47.500
What?

1653
01:05:47.500 --> 01:05:48.500
You also doing five acquisition.com.

1654
01:05:48.500 --> 01:05:49.500
Yeah.

1655
01:05:49.500 --> 01:05:50.500
Yeah.

1656
01:05:50.500 --> 01:05:51.500
Just have all the...

1657
01:05:51.500 --> 01:05:52.500
Just build a team.

1658
01:05:52.500 --> 01:05:53.500
Yeah.

1659
01:05:53.500 --> 01:05:55.780
You want to be CEO of multiple.

1660
01:05:55.780 --> 01:05:56.780
There's a difference between owners.

1661
01:05:56.780 --> 01:05:58.780
I also own stocks and the zillions of companies.

1662
01:05:58.780 --> 01:06:00.780
I have these different businesses at all.

1663
01:06:00.780 --> 01:06:01.780
What?

1664
01:06:01.780 --> 01:06:02.780
Okay.

1665
01:06:02.780 --> 01:06:04.780
Product and so your book is also different.

1666
01:06:04.780 --> 01:06:05.780
No.

1667
01:06:05.780 --> 01:06:06.780
So no, you have...

1668
01:06:06.780 --> 01:06:07.780
No, this is important.

1669
01:06:07.780 --> 01:06:08.780
This is good.

1670
01:06:08.780 --> 01:06:09.780
Yeah.

1671
01:06:09.780 --> 01:06:10.780
It's just for mine.

1672
01:06:10.780 --> 01:06:16.220
So for everybody, there's a difference between owning something and being CEO and operator.

1673
01:06:16.220 --> 01:06:18.660
You can only really operate one thing.

1674
01:06:18.660 --> 01:06:19.740
That's it.

1675
01:06:19.740 --> 01:06:22.220
If I buy a stock in Apple, I'm an owner.

1676
01:06:22.220 --> 01:06:25.820
I don't do anything, but I'm an owner.

1677
01:06:25.820 --> 01:06:26.820
Does that make...

1678
01:06:26.820 --> 01:06:27.820
You get the difference here?

1679
01:06:27.820 --> 01:06:28.820
Yeah.

1680
01:06:28.820 --> 01:06:29.820
You're like, well, I'm going to be...

1681
01:06:29.820 --> 01:06:30.820
So like the...

1682
01:06:30.820 --> 01:06:35.580
Where you would get me if you wanted to was school, I'm the face-up.

1683
01:06:35.580 --> 01:06:41.380
But when I did that deal, I said, I will change nothing about what I do.

1684
01:06:41.380 --> 01:06:44.460
So my regular day must remain the same in order for me to do this deal.

1685
01:06:44.460 --> 01:06:45.700
I'm going to continue to make content.

1686
01:06:45.700 --> 01:06:47.740
I'm going to continue to report stuff.

1687
01:06:47.740 --> 01:06:51.300
And then all I'm going to do is point in a different direction.

1688
01:06:51.300 --> 01:06:52.300
That's it.

1689
01:06:52.300 --> 01:06:54.260
So the pointing is a copy-paste on a link.

1690
01:06:54.260 --> 01:06:55.420
Everything else remains the same.

1691
01:06:55.420 --> 01:06:58.460
So I boil this down to, what is this change about what I do?

1692
01:06:58.460 --> 01:07:01.620
And so the reason that this is very difficult is that you're going to start another business

1693
01:07:01.620 --> 01:07:03.380
and it's going to change what you do.

1694
01:07:03.380 --> 01:07:04.380
Ah, okay.

1695
01:07:04.380 --> 01:07:09.260
So I'll solve things I'm not doing in my daily business when I'm starting a different

1696
01:07:09.260 --> 01:07:10.260
business.

1697
01:07:10.260 --> 01:07:14.020
For example, the product, I'm just doing my marketing, the development I'm doing also.

1698
01:07:14.020 --> 01:07:15.620
I did it.

1699
01:07:15.620 --> 01:07:16.620
And everything.

1700
01:07:16.620 --> 01:07:20.340
I also like targeting the group and strategies.

1701
01:07:20.340 --> 01:07:21.820
I don't have any clue.

1702
01:07:21.820 --> 01:07:23.780
Oh, I should not.

1703
01:07:23.780 --> 01:07:27.020
So I'm here just taking the question.

1704
01:07:27.020 --> 01:07:29.020
All right.

1705
01:07:29.020 --> 01:07:31.340
I don't know what your question is anymore.

1706
01:07:31.340 --> 01:07:36.940
I don't know what your focus on in this part when you have a selling group.

1707
01:07:36.940 --> 01:07:40.420
I would take your 500 medical people and be like, how do I go from 500,000 in my first

1708
01:07:40.420 --> 01:07:42.860
year to 5 million?

1709
01:07:42.860 --> 01:07:43.860
That's what I would do.

1710
01:07:43.860 --> 01:07:44.940
You already have something that works.

1711
01:07:44.940 --> 01:07:46.980
You already have a following of people who have this thing.

1712
01:07:46.980 --> 01:07:50.980
If you want, you can sell through them as an affiliate base and you have one business.

1713
01:07:50.980 --> 01:07:51.980
Okay.

1714
01:07:51.980 --> 01:07:52.980
That's good answer.

1715
01:07:52.980 --> 01:07:53.980
Great.

1716
01:07:53.980 --> 01:07:54.980
Thanks a lot.

1717
01:07:54.980 --> 01:07:55.980
Yeah.

1718
01:07:55.980 --> 01:08:01.060
I had no idea where this was going to go, but it seemed like this guy had a lot of stuff

1719
01:08:01.060 --> 01:08:02.060
going on.

1720
01:08:02.060 --> 01:08:07.660
This, this was a classic like entrepreneur ADD rush issue.

1721
01:08:07.660 --> 01:08:11.420
And so fundamentally, I think the reason that entrepreneurs end up opening up multiple

1722
01:08:11.420 --> 01:08:12.980
things is because we're all in a rush.

1723
01:08:12.980 --> 01:08:15.660
We all think that somehow an opportunity can disappear.

1724
01:08:15.660 --> 01:08:16.660
So there's two things.

1725
01:08:16.660 --> 01:08:20.300
Number one is that opportunities do disappear, but then other opportunities come.

1726
01:08:20.300 --> 01:08:21.940
So there will not be a shortage of opportunities.

1727
01:08:21.940 --> 01:08:25.460
If you know how, if you, the better you understand the game of business, the more opportunities

1728
01:08:25.460 --> 01:08:28.300
will come your way that you'll have to learn how to say no to, there will always be opportunities.

1729
01:08:28.300 --> 01:08:29.300
That is promise.

1730
01:08:29.300 --> 01:08:30.300
I don't promise often.

1731
01:08:30.300 --> 01:08:31.300
You can take that to the bank.

1732
01:08:31.300 --> 01:08:32.300
There will always be opportunities.

1733
01:08:32.300 --> 01:08:37.540
The next issue is the timing around this, which is some opportunities actually just get

1734
01:08:37.540 --> 01:08:38.860
better with time.

1735
01:08:38.860 --> 01:08:40.180
And so I'll give you a perfect example.

1736
01:08:40.180 --> 01:08:46.460
So if I say no to people introducing me to people today, and the reason they're introducing

1737
01:08:46.460 --> 01:08:48.820
me is because I have a big business.

1738
01:08:48.820 --> 01:08:52.020
If I continue to grow my business, the people who wanted to introduce me to these other

1739
01:08:52.020 --> 01:08:55.900
people today will want to still introduce me to this people tomorrow, but I'll also unlock

1740
01:08:55.900 --> 01:08:59.740
the people that now that my business is bigger will want to also introduce me to even more

1741
01:08:59.740 --> 01:09:00.740
people.

1742
01:09:00.740 --> 01:09:05.740
So the opportunity grows by me not taking up the opportunity.

1743
01:09:05.740 --> 01:09:08.980
And so the thing is, is that he's got this brand, he's grown it a little bit.

1744
01:09:08.980 --> 01:09:12.860
And so he wants to basically monetize it because he's like, some people want to buy something

1745
01:09:12.860 --> 01:09:13.860
from me.

1746
01:09:13.860 --> 01:09:15.580
Well, welcome to advertising, right?

1747
01:09:15.580 --> 01:09:18.460
But the point is, is that those people aren't going to go anywhere.

1748
01:09:18.460 --> 01:09:22.540
And maybe even if those specific people go somewhere, if the brand doubles, he'll have

1749
01:09:22.540 --> 01:09:23.820
more people that'll come up.

1750
01:09:23.820 --> 01:09:26.060
That's the new opportunities will present themselves.

1751
01:09:26.060 --> 01:09:28.780
But the thing is, is that you have limited resources in bandwidth.

1752
01:09:28.780 --> 01:09:32.060
And so we have to allocate that to the highest return opportunity.

1753
01:09:32.060 --> 01:09:37.700
And if he, in the first year of a new business does $500,000, probably very profitably, I would

1754
01:09:37.700 --> 01:09:41.580
have a hard time being like, yeah, now a year later, let's start another business.

1755
01:09:41.580 --> 01:09:45.580
And I only say that because I've only done it every other time in my career and made

1756
01:09:45.580 --> 01:09:47.100
a terrible mistake.

1757
01:09:47.100 --> 01:09:52.100
And I, it's just like, I'm so vehement about this particular mistake because I have, I

1758
01:09:52.100 --> 01:09:55.140
have done it so many times.

1759
01:09:55.140 --> 01:09:57.580
Can you hire a CEO for a business?

1760
01:09:57.580 --> 01:10:00.860
Yes, but unlikely for a couple of reasons.

1761
01:10:00.860 --> 01:10:03.660
So number one, he had a very small business.

1762
01:10:03.660 --> 01:10:06.740
So the likely, the thing about the thing about from number standpoint, right?

1763
01:10:06.740 --> 01:10:10.500
So let's say that he's got a business that does $500,000 a year and let's say he's

1764
01:10:10.500 --> 01:10:11.500
profiting $200,000.

1765
01:10:11.500 --> 01:10:12.500
Okay.

1766
01:10:12.500 --> 01:10:14.620
So it's $200,000 in profit.

1767
01:10:14.620 --> 01:10:17.660
What is he going to pay a CEO to go like run this business?

1768
01:10:17.660 --> 01:10:21.060
It's not even going to be a CEO, it's going to be like a manager kind of.

1769
01:10:21.060 --> 01:10:24.540
And so it's like, okay, maybe he can pay $100,000 a year for someone to do that.

1770
01:10:24.540 --> 01:10:27.740
But then there's $100,000 a year that's left over in profit.

1771
01:10:27.740 --> 01:10:32.060
But that assumes that that person's going to run it as well as he does as the founder.

1772
01:10:32.060 --> 01:10:33.420
And that's unlikely.

1773
01:10:33.420 --> 01:10:35.980
And so it's a lot, it's likely to have like a decrement in performance.

1774
01:10:35.980 --> 01:10:38.260
So like, would it be fair to say a 20% decrease in performance?

1775
01:10:38.260 --> 01:10:39.260
Yeah, that's fair.

1776
01:10:39.260 --> 01:10:40.260
And guess what?

1777
01:10:40.260 --> 01:10:41.260
Now it's breaking even.

1778
01:10:41.260 --> 01:10:46.660
So like it's so small that unless you have a manager model that like is really built

1779
01:10:46.660 --> 01:10:49.660
for that, like brick and mortar stores can sometimes work for things like that.

1780
01:10:49.660 --> 01:10:53.500
It's unlike they'd be able to find somebody who can take over like his influence or business.

1781
01:10:53.500 --> 01:10:55.460
But can bigger businesses hire CEOs?

1782
01:10:55.460 --> 01:10:56.460
Sure.

1783
01:10:56.460 --> 01:10:58.980
But if you also look at the biggest businesses in the world, almost all of them are still

1784
01:10:58.980 --> 01:10:59.980
founder led.

1785
01:10:59.980 --> 01:11:02.740
And I think that there's a little bit of pendulum right now that's kind of swinging

1786
01:11:02.740 --> 01:11:06.140
from like professional managers to the people who were like the heart and soul of the business.

1787
01:11:06.140 --> 01:11:10.460
Because the one advantage that you have as a founder is that you wrote the rules so you

1788
01:11:10.460 --> 01:11:14.460
know why they exist and you know how to break them and when to break them.

1789
01:11:14.460 --> 01:11:16.860
And so when somebody else takes over, they're like, well, these are the rules, but they

1790
01:11:16.860 --> 01:11:18.620
never derived them from zero.

1791
01:11:18.620 --> 01:11:22.780
And so if you know how the infrastructure was built, you know how to navigate it without

1792
01:11:22.780 --> 01:11:26.380
messing up the business overall while still accomplishing the objectives.

1793
01:11:26.380 --> 01:11:30.420
So fundamentally, you make the system more adaptive because of your knowledge of it.

1794
01:11:31.420 --> 01:11:32.420
Yes, sir.

1795
01:11:32.420 --> 01:11:34.420
My name is Joshua.

1796
01:11:34.420 --> 01:11:36.420
I'm actually a car practice as well.

1797
01:11:36.420 --> 01:11:42.420
I'm a great product that I would love to tell you about self cracking.

1798
01:11:42.420 --> 01:11:44.420
Yeah.

1799
01:11:44.420 --> 01:11:45.420
That's funny.

1800
01:11:45.420 --> 01:11:46.420
Yeah.

1801
01:11:46.420 --> 01:11:49.420
So me and my wife, we run a family car practice center in the UK.

1802
01:11:49.420 --> 01:11:50.420
Cool.

1803
01:11:50.420 --> 01:11:53.420
And our current revenues around 750.

1804
01:11:53.420 --> 01:11:54.420
What?

1805
01:11:54.420 --> 01:11:58.420
We'd like to get it 2.3, perfect the model and then scale.

1806
01:11:58.420 --> 01:11:59.420
Okay.

1807
01:11:59.420 --> 01:12:02.420
This is what is currently my predicament.

1808
01:12:02.420 --> 01:12:11.420
So we averaged 48 new clients per month last year, consistently, from two main channels.

1809
01:12:11.420 --> 01:12:13.420
Referral and Facebook meta.

1810
01:12:13.420 --> 01:12:14.420
Okay.

1811
01:12:14.420 --> 01:12:16.420
What was the split?

1812
01:12:16.420 --> 01:12:19.420
So it's 35% referrals, 65%.

1813
01:12:19.420 --> 01:12:20.420
Okay.

1814
01:12:20.420 --> 01:12:21.420
Yeah.

1815
01:12:21.420 --> 01:12:25.420
And excuse me.

1816
01:12:25.420 --> 01:12:27.420
You're 35, 65.

1817
01:12:27.420 --> 01:12:28.420
Referral versus meta.

1818
01:12:28.420 --> 01:12:29.420
You did 48 customers per month.

1819
01:12:29.420 --> 01:12:30.420
Yeah.

1820
01:12:30.420 --> 01:12:31.420
The issue that you have 750.

1821
01:12:31.420 --> 01:12:32.420
You want to get 2.3?

1822
01:12:32.420 --> 01:12:33.420
Yeah.

1823
01:12:33.420 --> 01:12:34.420
So.

1824
01:12:34.420 --> 01:12:35.420
My question.

1825
01:12:35.420 --> 01:12:42.420
And I think what's stopping me is determining where I should be focusing because we get great

1826
01:12:42.420 --> 01:12:44.420
results for clients like they get.

1827
01:12:44.420 --> 01:12:49.420
But you know, even if they have an amazing result, like a lot of those clients leave.

1828
01:12:49.420 --> 01:12:50.420
Which is fine.

1829
01:12:50.420 --> 01:12:52.420
And then they come back and they need us.

1830
01:12:52.420 --> 01:12:53.420
It's terrible.

1831
01:12:53.420 --> 01:12:54.420
Yeah.

1832
01:12:54.420 --> 01:12:59.420
And I'd love to have more clients to stay with us longer term from like a membership perspective.

1833
01:12:59.420 --> 01:13:05.420
And when I look to our term retention rates, our gross retention rate is 47%.

1834
01:13:05.420 --> 01:13:07.420
And then our net.

1835
01:13:07.420 --> 01:13:10.420
Our net retention rate is 74%.

1836
01:13:10.420 --> 01:13:14.420
So once we've done expansions upsells and everything else, it brings it up.

1837
01:13:14.420 --> 01:13:19.420
But we still lose a lot of, we leave a lot of money on the table on the, because we're losing.

1838
01:13:19.420 --> 01:13:20.420
We lose half your customers.

1839
01:13:20.420 --> 01:13:21.420
Correct.

1840
01:13:21.420 --> 01:13:22.420
But you keep a little bit more revenues.

1841
01:13:22.420 --> 01:13:23.420
You're talking about revenue retention versus.

1842
01:13:23.420 --> 01:13:24.420
Yeah.

1843
01:13:24.420 --> 01:13:25.420
So I'm like, which one do I focus on?

1844
01:13:25.420 --> 01:13:28.420
Do we expand the marketing and just keep pumping the machine?

1845
01:13:28.420 --> 01:13:29.420
Because I literally feel like you.

1846
01:13:29.420 --> 01:13:32.420
I've got to a stage in my business where I'm still in the clinic.

1847
01:13:32.420 --> 01:13:33.420
I'm still serving patients.

1848
01:13:33.420 --> 01:13:34.420
I love my clients.

1849
01:13:34.420 --> 01:13:35.420
Yeah.

1850
01:13:35.420 --> 01:13:42.420
But like, you know, even if they've had an amazing change in their life, like it's like you

1851
01:13:42.420 --> 01:13:45.420
with the weight loss, like I've got to the point now where I'm like, man, like this doesn't

1852
01:13:45.420 --> 01:13:46.420
excite me anymore.

1853
01:13:46.420 --> 01:13:52.420
Like, I know I can help serve more people if I can just become more of the owner rather

1854
01:13:52.420 --> 01:13:53.420
than the operator.

1855
01:13:53.420 --> 01:13:58.420
I stepped my shifts down from, you know, five days a week to like two now.

1856
01:13:58.420 --> 01:14:00.420
And if you made more money, you'd definitely be happier.

1857
01:14:00.420 --> 01:14:01.420
So not necessarily.

1858
01:14:01.420 --> 01:14:03.420
I'm out of the joke.

1859
01:14:03.420 --> 01:14:05.420
Okay.

1860
01:14:05.420 --> 01:14:06.420
So you have a location.

1861
01:14:06.420 --> 01:14:07.420
You're doing 750.

1862
01:14:07.420 --> 01:14:09.420
What does it cost open a location?

1863
01:14:09.420 --> 01:14:11.420
We own the building.

1864
01:14:11.420 --> 01:14:12.420
Well, outside of real estate.

1865
01:14:12.420 --> 01:14:13.420
What's a cost to outfit the location?

1866
01:14:13.420 --> 01:14:15.420
Oh, I'll fit it.

1867
01:14:15.420 --> 01:14:21.420
So we, so we're pretty lean like we out for our fit to our current one.

1868
01:14:21.420 --> 01:14:22.420
It was a hundred thousand.

1869
01:14:22.420 --> 01:14:23.420
Okay.

1870
01:14:23.420 --> 01:14:24.420
Got it.

1871
01:14:24.420 --> 01:14:25.420
What's profit?

1872
01:14:25.420 --> 01:14:27.420
We kind of keep it.

1873
01:14:27.420 --> 01:14:33.420
We've kept it low the last few years, but we, yeah, it's like, it's like 13%.

1874
01:14:33.420 --> 01:14:34.420
Okay.

1875
01:14:34.420 --> 01:14:35.420
Yeah.

1876
01:14:35.420 --> 01:14:36.420
Yeah.

1877
01:14:36.420 --> 01:14:37.420
So you need to fix that.

1878
01:14:37.420 --> 01:14:38.420
Yeah.

1879
01:14:38.420 --> 01:14:39.420
Okay.

1880
01:14:39.420 --> 01:14:43.420
That's a lot of like raw, you know, own as earnings and stuff.

1881
01:14:43.420 --> 01:14:44.420
Well, what's SD?

1882
01:14:44.420 --> 01:14:45.420
So seller discretion or any.

1883
01:14:45.420 --> 01:14:47.420
So what do you make plus the profit of the business?

1884
01:14:47.420 --> 01:14:49.420
So me and my wife, we draw a hundred K.

1885
01:14:49.420 --> 01:14:50.420
Uh-huh.

1886
01:14:50.420 --> 01:14:51.420
Each?

1887
01:14:51.420 --> 01:14:52.420
No.

1888
01:14:52.420 --> 01:14:53.420
Total.

1889
01:14:53.420 --> 01:14:54.420
Yeah.

1890
01:14:54.420 --> 01:14:55.420
And you have 13% on 75.

1891
01:14:55.420 --> 01:14:56.420
So another hundred so 200 K on 750.

1892
01:14:56.420 --> 01:14:57.420
Yeah.

1893
01:14:57.420 --> 01:14:58.420
Okay.

1894
01:14:58.420 --> 01:14:59.420
Got it.

1895
01:14:59.420 --> 01:15:02.420
So whatever that's 20, 30, 30% ish margins.

1896
01:15:02.420 --> 01:15:03.420
Okay.

1897
01:15:03.420 --> 01:15:05.420
So you want to get to 2.3?

1898
01:15:06.420 --> 01:15:09.420
Because this is what we worked up for our build it like our practice.

1899
01:15:09.420 --> 01:15:11.420
We could, if we were at capacity.

1900
01:15:11.420 --> 01:15:12.420
Okay.

1901
01:15:12.420 --> 01:15:14.420
So that location can do to 3 million.

1902
01:15:14.420 --> 01:15:15.420
Yeah.

1903
01:15:15.420 --> 01:15:16.420
Okay.

1904
01:15:16.420 --> 01:15:21.420
So the issues we have to solve retaining customers.

1905
01:15:21.420 --> 01:15:26.420
Now, if you keep 50% of customers, like if, if let's say you lose half your customers

1906
01:15:26.420 --> 01:15:28.420
you're one, but then after that they stay forever, that's fine.

1907
01:15:28.420 --> 01:15:30.420
We just have, we just like in next year you'll double.

1908
01:15:30.420 --> 01:15:34.420
If that isn't the case, then and you lose half of those customers the next year

1909
01:15:34.420 --> 01:15:37.420
and then half of those the next year kind of thing.

1910
01:15:37.420 --> 01:15:40.420
I would see what we could do to improve that.

1911
01:15:40.420 --> 01:15:47.420
That being said, you're in a business that traditionally is marketing heavy.

1912
01:15:47.420 --> 01:15:49.420
It's kind of like weight loss.

1913
01:15:49.420 --> 01:15:52.420
Because like people get fixed and then they're like, yeah, dooses.

1914
01:15:52.420 --> 01:15:58.420
So the strategy that I've seen that has worked really well in the chiro space.

1915
01:15:58.420 --> 01:16:01.420
Is basically going significantly higher ticket number one.

1916
01:16:01.420 --> 01:16:04.420
And number two, niching down in terms of the different problems you solve.

1917
01:16:04.420 --> 01:16:12.420
So this is like neuropathy, diabetes stuff, those types of like kind of segments.

1918
01:16:12.420 --> 01:16:18.420
And having more targeted advertising for those avatars and selling significantly higher price packages.

1919
01:16:18.420 --> 01:16:27.420
And that's typically how those businesses will get to like a few hundred thousand dollars a month just with one like very small store.

1920
01:16:28.420 --> 01:16:34.420
And so typically that that model is a you run ads for some sort of free workshop, free dinners, free whatever.

1921
01:16:34.420 --> 01:16:36.420
This is pretty much how we did a big bill of business.

1922
01:16:36.420 --> 01:16:37.420
Okay.

1923
01:16:37.420 --> 01:16:40.420
Like because we realize what's the ticket price that you're charging.

1924
01:16:40.420 --> 01:16:45.420
It's different based on the cost of 50 customers a month and you're doing 60K.

1925
01:16:45.420 --> 01:16:51.420
So the averages around like it depends because every plan is different from the plan.

1926
01:16:51.420 --> 01:16:54.420
So we don't just give like a here's your plan.

1927
01:16:54.420 --> 01:16:59.420
You know, but if I just did simple math, I'd say $60,000 a month, 15 new customers average customer is 1200 bucks.

1928
01:16:59.420 --> 01:17:00.420
Yeah.

1929
01:17:00.420 --> 01:17:03.420
Okay. So it's not the same model because I'm talking $10,000.

1930
01:17:03.420 --> 01:17:04.420
All right.

1931
01:17:04.420 --> 01:17:05.420
Does that make sense?

1932
01:17:05.420 --> 01:17:06.420
Yeah.

1933
01:17:06.420 --> 01:17:07.420
More.

1934
01:17:07.420 --> 01:17:08.420
Yeah.

1935
01:17:08.420 --> 01:17:13.420
So I think you have to get niche down in terms of like if you're doing all those things that think you probably need to add is zero to your price tag.

1936
01:17:13.420 --> 01:17:18.420
We're already the most premium in our light area.

1937
01:17:18.420 --> 01:17:20.420
Like well, then it won't change.

1938
01:17:20.420 --> 01:17:23.420
You'll still be the most premium.

1939
01:17:23.420 --> 01:17:25.420
And which one would you focus on them?

1940
01:17:25.420 --> 01:17:29.420
Would you just focus on like just filling the front end or would you try and fix it?

1941
01:17:29.420 --> 01:17:32.420
Because you talked about like fix the chair and like get it to less than three.

1942
01:17:32.420 --> 01:17:34.420
Like, what would you double down on both?

1943
01:17:34.420 --> 01:17:36.420
Well, if you keep half your customers, you're pretty close to three.

1944
01:17:36.420 --> 01:17:39.420
So again, you're pretty close to three if you keep half your customers.

1945
01:17:39.420 --> 01:17:40.420
Right.

1946
01:17:40.420 --> 01:17:44.420
When we track it, it varies between three and seven on the month depending on the month.

1947
01:17:44.420 --> 01:17:47.420
I mean, are the things that you could do to improve it sure?

1948
01:17:47.420 --> 01:17:49.420
I think you have more of a model issue.

1949
01:17:49.420 --> 01:17:50.420
Okay.

1950
01:17:50.420 --> 01:17:55.420
Like you obviously get into car customers and you're doing a decent enough job keeping them.

1951
01:17:55.420 --> 01:17:59.420
If we need to improve how much money this thing makes, it's either a pricing thing.

1952
01:17:59.420 --> 01:18:07.420
Basically, it's an offer and pricing thing is that you need to charge more so that you can make more money.

1953
01:18:07.420 --> 01:18:13.420
And then once you have the cash flow, then the expansion becomes pretty straightforward.

1954
01:18:13.420 --> 01:18:15.420
That goes for basically everyone.

1955
01:18:15.420 --> 01:18:19.420
Like a lot of times it's like, you know, we're doing 20% and you have what I would consider as like a normal business.

1956
01:18:19.420 --> 01:18:20.420
It makes money.

1957
01:18:20.420 --> 01:18:24.420
We work hard, but there's no like you never feel like you really can like get ahead.

1958
01:18:24.420 --> 01:18:25.420
Yeah.

1959
01:18:25.420 --> 01:18:31.420
It's usually because there's some significant hole in the business and your decent at both sides.

1960
01:18:31.420 --> 01:18:36.420
And I think that the issue is that you just need to be making way more money.

1961
01:18:36.420 --> 01:18:37.420
Okay.

1962
01:18:37.420 --> 01:18:40.420
Which is I think you need to add more.

1963
01:18:40.420 --> 01:18:44.420
Do you sell physical products and consumables?

1964
01:18:44.420 --> 01:18:45.420
Not really.

1965
01:18:45.420 --> 01:18:47.420
Do you sell like braces and orthotics?

1966
01:18:47.420 --> 01:18:53.420
In a care plan, it will be based on like, yeah, we do adjustments, massage, it might be like traction, whatever.

1967
01:18:53.420 --> 01:18:54.420
Yeah.

1968
01:18:54.420 --> 01:18:57.420
So the key is there's two models that have worked really well.

1969
01:18:57.420 --> 01:19:03.420
One is where you basically upsell them some sort of machine that they can take home and do other work.

1970
01:19:03.420 --> 01:19:05.420
And there's a big markup on that.

1971
01:19:05.420 --> 01:19:07.420
And the other is supplements.

1972
01:19:07.420 --> 01:19:13.420
Because you can sell years worth of supplements or six months worth of supplements upfront, make a really good bit there.

1973
01:19:13.420 --> 01:19:16.420
And it doesn't increase your operational drag at all.

1974
01:19:16.420 --> 01:19:20.420
Because you just make the sale, give them the product.

1975
01:19:20.420 --> 01:19:21.420
Okay.

1976
01:19:21.420 --> 01:19:22.420
Does that make sense?

1977
01:19:22.420 --> 01:19:23.420
Yeah.

1978
01:19:23.420 --> 01:19:31.420
But that's what I would add in to justify the higher price so that you could make more money per customer, which will then make you more money overall, which then fixes the model, which then allows you to go.

1979
01:19:31.420 --> 01:19:32.420
Gotcha.

1980
01:19:32.420 --> 01:19:33.420
Does that make sense?

1981
01:19:33.420 --> 01:19:34.420
Yeah.

1982
01:19:34.420 --> 01:19:35.420
Cool. Thank you.

1983
01:19:35.420 --> 01:19:36.420
Rock and roll.

1984
01:19:36.420 --> 01:19:37.420
All right.

1985
01:19:37.420 --> 01:19:38.420
Thank you.

1986
01:19:38.420 --> 01:19:41.420
That's kind of at the five getting to 10 employees.

1987
01:19:41.420 --> 01:19:43.420
So he's at stage four.

1988
01:19:43.420 --> 01:19:47.420
And so if you look at his product, he said yes to anyone who would pay.

1989
01:19:47.420 --> 01:19:51.420
And because he's getting feedback from so many different customers, he has creates so many different products and services.

1990
01:19:51.420 --> 01:19:53.420
They're basically too many different things.

1991
01:19:53.420 --> 01:19:57.420
And so what I wanted him to do was get really clear on a higher level avatar.

1992
01:19:57.420 --> 01:20:00.420
So specialized product and price to serve niche down customer.

1993
01:20:00.420 --> 01:20:06.420
So I talk about the neuropathy and diabetes and kind of like thyroid.

1994
01:20:06.420 --> 01:20:12.420
Because you're all like kind of sub segments that allow a car practice or charge much higher rates.

1995
01:20:12.420 --> 01:20:19.420
And so we had to reconfigure the offer and the avatar to charge more and then ultimately make significantly more profit for the business.

1996
01:20:19.420 --> 01:20:23.420
Now, he had a decent, you know, marketing sales machine.

1997
01:20:23.420 --> 01:20:25.420
And I would say he had a decent delivery machine.

1998
01:20:25.420 --> 01:20:27.420
And as a result, had decent margins.

1999
01:20:27.420 --> 01:20:30.420
And so all we need to do is just change the offer.

2000
01:20:30.420 --> 01:20:40.420
And we could probably double or triple the business from that one move alone, which then opens up cash flow to then hire the people he needs to then be able to expand.

2001
01:20:40.420 --> 01:20:47.420
Because at his current profitability, 13% margins after you have a manager essentially, you know, it's not a, it's not a compelling model.

2002
01:20:47.420 --> 01:20:49.420
And that's with him running it.

2003
01:20:49.420 --> 01:20:59.420
So, you know, if you spend $100,000 and you make something that makes $90,000 with you running it in profit, not including the manager pay, which he was taking personally, it's not a super compelling model.

2004
01:20:59.420 --> 01:21:06.420
And so we had like what you'd want is like you pay for 100 and then it makes like 400 or 500, you're like, this is a model.

2005
01:21:06.420 --> 01:21:08.420
And that kind of cash flow allows you to scale.

2006
01:21:08.420 --> 01:21:09.420
So that's what I wanted to get to.

2007
01:21:09.420 --> 01:21:17.420
And I think honestly, if you just does that one thing, you could easily add $250,000 to the business with maybe half that drop into the bottom line.

2008
01:21:17.420 --> 01:21:19.420
Now you have a much more interesting business.