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Hey Arts, my name is Rick and I sell financial planning services to a young

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big tech on employees W2 employees. We do about half a million revenue. I love

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to be at 5 million within the next you know three years or so and what's

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currently stopping me is just a time resource management issue where I'm

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currently doing the you know fulfillment of meeting with our clients and I

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hired a new full-time associate planner to start to take over those

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relationships and so I think my current constraint is figuring out how to

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replicate teams as I continue to grow the business. We're doing relatively

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we're just doing organic marketing content mostly on LinkedIn and read a

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daily blog which I post the website and an email list, a small email list.

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How many sales a month do you do? About two. Two sales a month and it's the model

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like 1% assets in our management. No and that was another question that I wanted

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to get your thoughts on was what are the big swings that I took about four or

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five years ago is to change the traditional financial planning model so instead

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of charging the 1% AUMT we charge a 25 basis point AUMT and then a monthly

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subscription which is 275 so it nets out to be about 5,000 per client per year

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on an annual basis. Okay and obviously bigger clients big more you know. Okay

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on the AUM. Interesting. Okay got it. Okay so typically with your your

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type of business they're usually demand constrained not to block constraint

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like managing lots of lots of people and lots of money usually doesn't actually

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take too many resources relative to how much they make you and so I think that

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the biggest use probably just acquisition so getting two sales a month is

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probably the big the big bottleneck and so I would so what's the big incentive

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for someone to get on the phone with you? You mean what's in it for them like

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what do they contact us? Initially they get their financial house in order we

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do a lot around getting people's financial independence like at by age 50.

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Yeah so we're retired for with a million dollars. Yeah fire movement you know

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yeah I so you know as as much as you may hate what I'm about to say there's a

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reason that all the big dogs do the same exact playbook which is they run to

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either virtual or they run to in-person workshops because in one or two days

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or even a half day you can gain a lot more trust than a very long time on

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line and I would probably use that as my lead magnet because that sometimes

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like for a lot of you guys like one of the biggest levers you can have like when

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we unlock like an easy 5x it's usually something at the very front where it

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just like we just swap the lead magnet from like hey book a call to hey get

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this thing and then a call just happens to be part of it or a workshop happens

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to be the vehicle for delivering that outcome and we do that like that's an

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all of a sudden your lead flow goes from making two sales a month to eight or

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ten and I think that for me that would be the biggest issue now you

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managing customers it's like I think that you just need more cash flow which

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more customers will help you with and then you can get an account manager who

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can kind of like run those relationships but most relationship guys can

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handle many many many customers because people don't I mean also the

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higher up you go they tend to in my experience actually need less yeah we

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mean with people on a monthly basis so we're is that required it is it's

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sort of like our our sort of bread butter so we do a lot of accountability a

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lot of like coaching a lot of like is that for them to like save more money

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save on taxes tax projections manage I think you're I think you're under under

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charging and over not over delivering but doing too much yeah like meeting

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every month that's almost like personal finance coaching more than like

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wealth management yeah because I feel like those are two different offers so it's

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like there's a there's the Dave Ramsey of like hey stop spending money silly

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pants and then there's like what once I have money what do I do with it and I

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feel like you're kind of blending those but you're not but you're you're doing

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both services and pricing like one but like lower so I think basically you're

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not making enough money for customer to do the work you're doing okay like

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twelve meetings a year is a lot most of the wealth management firms that like

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come through here one maybe right and so like you're doing twelve times the

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work and billing less so unless you had a tech-enabled way of making that

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the model I would I would change the pricing okay because fundamentally like

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like you're either the volume player and you have tech built-in since day one

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and the entire model model is around cost efficiency or your premium there's

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really not a lot of room in between like best for at least like people it's

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a hard time for people to perceive that value so I just think you're doing way

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too much can I see this one of the reasons why I designed it that way was so

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that we could fish further upstream than most financial planning firms so we

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start to work with people in their early thirties right when they're making you

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know a few hundred grand a year and then you know a lot of those relationships

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to blossom into people you know doing big things at meta you know make a

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five million a year right do you think that's a smart player is that you know

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I don't think it's I don't think it's it's dumb I think it's I think you have

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a you have you have two elements you have a personal finance thing and you have

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an investing thing and you're getting the people who are younger with a

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personal finance thing and there's still not they don't have enough assets to

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make their AUM like really worth it right and so like I would probably have a

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more traditional private wealth management model and if you just find out that

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get it you can acquire customers really easily on personal finance much more

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easily than you can hear but then the ascension is much higher then like that's a

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great model like I think that's a really interesting play but I think trying to

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combine both of them in terms of both the delivery and the pricing I think that's

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where it's feels off to me okay all right so I just blew your shit up so

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I apologize we have all year so you go hi Don my name is Luke Devins I sell

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pressure washing gutter cleaning to homeowners I did 810,000 last year this

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coming year I want to do one five than the following three so we're kind of

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throughout this we switched to the subscription model that's what everyone's

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been suggesting so how do now I get into neighborhoods or allocate resources

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because a lot of people are saying just do one channel but then we do a lot of

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like door hangers yard signs and I feel like that all kind of like goes in a

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one with like ads like how would you kind of rush neighborhoods and home

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service so can you can you can you can you restate the question yeah like how

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would how would you spend your marketing money if you want to get as many on

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this yearly subscription currently how are your car and customers just old

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school yard signs door hangers reef referral stuff like that what stopped you

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from doing 10 times more of that probably just people okay so then people

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a lot of myself okay got it so then the so what's the return what's the do you

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know what your LGBT cat is on I guess you said 10 10 and that's with your time

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being free yeah okay so if you paid someone full time to do that do you know

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how much that would impact your rise someone would probably about 56 year

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like a sales guy okay so wait are you you're knocking on doors and getting the

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business yeah got it and then you and then the truck follows you and then like

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does the work wherever got it you'll have so I think in the beginning you'll

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have to keep stacking the subscriptions so that you can generate the cash flow

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because then you'll have the basically the for sure business and then once that

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starts stacking then you'll have the cash flow to hire the other sales guy who's

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going to be able to take over your whole thing is most ordered or guys need to

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make like decent money because it's terrible yeah and so like you'll

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probably need to be like they'll probably need to make like I mean a decent I

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mean how many sales a day can you make anywhere from like 8 to 10 okay okay

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yeah so I think I mean one of those guys could ease if you can pay them shoot

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50 hundred bucks a sale they can get thousand bucks a day I think you'd be

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able to get somebody to be able to do what you like sprinkle in some type of

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like Facebook or Instagram or Google or like I just want to add complexity because

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right now you have limited resources inside right they just like do more of

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that thing rather than be like oh on top of that now I have to start calling

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leads and have to like create a whole like on like the online world and then

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working those leads is a whole different monster versus like you're right here

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you say yes I call truck we clean shit I get money like yeah good business

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right yeah yeah yeah I would rather you keep it easy long term like once you

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get like if you were like hey I've got you know 15 trucks for the city or

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whatever and I've got 15 teams that are out doing it and then I'd be like yeah

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I think having a you know a canvas you know top of funnel kind of awareness

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stuff that generates leads an essentialized phone team that can then also

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proactively send trucks out to people that you already sold over the phone I think

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that makes sense but given the fact you already know the script you know the

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process I'd rather you just stack some of the recurring so you have the

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cash to bring the new guy in that being said if you get a little bit more

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generous on the commissions you can probably get someone to pay work commission

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only so then you wouldn't have to take the risk on okay so I revised my

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original answer do that thank you yes sir how you doing cardical field we

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sell tax in financial services to high income entrepreneurs we do about 9,000

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revenue like to be at 25 million by and at this year what's stopping us so I

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know what the constraint is people with the more advisors to surface our

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clients you need to fast the 140 process to do more of 58 virtual events got

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that I don't think it takes the whole company to fix that constraint I think

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HR CSM's operations is it okay to have the rest of the company focus on a

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different constraint or with that like keel team or how do you balance constraints

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across basic trace cost departments that's a really good question I've gone

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back and forth on this so maybe there isn't a right answer but I would say

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that in the season that I'm currently in I believe that there is one constraint

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and if we solve that constraint the business will grow and so I want everybody

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to know that this is what we're working on and what ends up happening is that you

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see the other fires that are burning and then that actually creates more

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urgency to fix the first one when you try and fix them in parallel it ends up

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taking longer to do both than to do one and then the other because the whole

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team knows it's like but there's this other fire burning you know like right

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then fix the fucking first one and so then it just orange the whole team right

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and then also that means that like if something has to happen the whole team is

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greasing the you know that the tracks to make sure that this objective gets

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pushed forward even because there's so many supporting and answering things to

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get some big thing done that if they're like well we have our priority it's

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like I think that's what gets in the way so we call the the silent sixth which

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is basically like every business has their priorities for the year whatever the

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silent sixth one is that we have we have to keep selling we have to keep doing

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this right so those things always have to continue but like what is the one

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thing that matters most like I think is Jack Sluteman he has a he's a good

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book on this but I'll give you the teardill the art of the book is that he was a

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big believer or is a big believer in not having three objectives or five

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objectives but just one he said basically if you can't get clear that one thing

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is more important than everything then that's your fault as an entrepreneur and so

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I see like if we're the chief allocators or resources then it means we have to

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be able to prioritize and if we can't do it how can we expect our teams to which

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means we have to be able to say this is more important than that and yes they are

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both important but this one is more important and I think that that kind of

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betting perspective has served me really well being very violent with like this

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is the most important and I've just noticed that things get done way faster

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because then it's like hey when we do this then we can do this next thing and then

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everybody wants to do the next thing too and then when we do the next thing all

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we move we know we park the seas to get that done yeah it also in service of

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what I was talking about earlier when you have that perspective it also

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minimizes all the other changes that you're making across the company too

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because you're like that's not a priority could we improve this thing

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probably do we need to right now no it's not a constraint

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yes ma'am hi I'm Ashley Stahl my agency is Wise Whisper and Wise Whisper

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Wise Whisper yeah we write and we book TED talks for people specifically entrepreneurs

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we talked yesterday we did 1.3 last year and we actually think and want to do

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10 next year just because of ads and the infrastructure we've built

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okay and it seems actually quite feasible just based on it but I was talking

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about Jacob about closing and getting good closures that's stopping me but

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beneath that I started thinking about the contract and everybody wants to feel

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like we're guaranteeing them their TED talk and we have a hundred percent success

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but because we existed during COVID and our average time to book went from 10

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months to 20 months to get somebody their talk I feel scared to offer a guarantee

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when I'm not Ted yeah and so I just want to show my track record are they

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Ted or Ted X's Ted X okay got it yeah so any any insight on guarantees yeah

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this is a math problem yeah so I'll tell you a story that applied to a home

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services business not that long ago so he was really scared to raise prices and

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but he wasn't making any money and he was closing 80% so I was like hey man

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please raise prices and so he decided to raise prices but to get him to

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raise prices I said so here's the deal how many times I said what are the

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biggest concerns of a customer he said well it's you know on time and on

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budget I was like all right how many times are you on time and on budget he said

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eight out of 10 I said what happens the other two times he said one time they'll

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change what the requirements are they'll say they actually want their

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kitchen to be twice as big or whatever I said okay he said the other time I will

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give materials in time and then I can't control that I said all right so what if

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we write the guarantee so it's you're gonna raise your price by 20% just what we

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did it said and if you don't deliver on time you're going to give the client

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the entirety of your profit right which right now is you make no money anyway so

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like we can say so it's like if I don't deliver on time and on budget I will

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give you all my profit which is 20% of this deal off so that's why so that's

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the guarantee and by switching to that he closed way more people and made way

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more money and so the fear around guarantee I think is justified but if you

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just look at the math and you're like oh I can close twice as many people and I

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have to give one out of 10 back you made way more money so I think just do the

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math on it yeah I think it's just fear like fear of being on the hook if there's

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like another pandemic and I have like 400 TED Talks yeah breathing yeah well

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you already went through a pandemic yeah you already know what you do yeah I'm

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with your gym numbers I have no excuse yeah okay thank you so much yeah my

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name's Nick Page so I want to fitness studio we just surpassed a million

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revenue right and thank you personally training or semis or

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okay so I'm being honest I would like to be a 50 million so honestly what I

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think stopped me is looking at my business just like 49 more gyms yeah exactly so

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and I honestly don't this is like something that I don't know if it's a belief

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right yeah looking at my business as an investor right my LTV to CAC is I'm

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gonna two to one I mean we can get it to three to one looking at the market and

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realizing that the fitness studio space is becoming a red market it's very tough

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I don't know if I personally think it's a smart investment in my time to try to

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continue to grow my gym or profitable I have a great team and I'm like maybe I'll

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just sell it in one to two years and then I'm like so like I just read the book

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how to how to how do I make a cup of billing by Brad Jacobs and he talks

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about getting you know I headed the trend which I think you've done a great

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job so when I like read that think like an investor and then I look at my

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business there's like this ain't it yeah I'm kind of at this point where I'm

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lying and people are like this is great morning scale like you know talking

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just then did so I guess he's like this sucks

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so I mean what do you think I should do like if you or me like you want to

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make 50 million dollars the likely that you get it there from a large group

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studios very low so if that's the goal then you probably want to have a

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different vehicle and so you can I would say that if I'm in your position you

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have one of two paths there's like in a really close adjacent path which

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would be like I do believe that the best for this model right now is the small

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small group I think it's the best model that's on the marker right now and so

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you could change your existing model to that and that one gets exceptional

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returns on capital and is a very operationally easy model to run and so that

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would be like the reason I'm I kind of like that for you is because it already

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borrows from a huge amount of your existing skills set knowledge base and that

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is a good vehicle so that's option one option two is you just you know try

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something brand new which I have very little like inside into like the what

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of the of unlimited opportunities could you pursue all of them or one of

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them but transforming what you have into I mean I fundamentally I think that's

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why you were here at least I would be if I were you is like how do I make this

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how do I turn the thing that I have into the thing that I want and I think that

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you can do it with a lot fewer steps than you expect you'll probably have you

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know six months where there's a little bit of turbulence of like people being

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upset because you change the rules of the game on them but unless the facility

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that you have right now like precludes you in some way from you know delivering

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that other model yeah I would say that that's probably a very look the lowest

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risk highest likelihood path yeah okay yeah because my head just goes everywhere

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I like yeah another let me let me give you something this is the first year

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my entire life I haven't had phomo I haven't had it it's really weird and I

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noticed I noticed that I didn't have it only at the end of the year and I was

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like oh wow that's weird and I think it's because I finally realized how

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fucking hard it is to do anything and when I see someone when I see someone who's

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like crushing it like a friend of mine made 50 million encrypted this year and

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it's not his main business it's a side hustle and I was just like okay noted

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and so and so then I thought to myself I was just like good for him like I was

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like I'm not gonna get into it like that's not my game you know what I mean but

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he's like dude the school deals fucking monster and I was like I know it's

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awesome but that's the game I know you know what I mean and so it's not even the

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comparisons the thief of joy thing I think it's just that learning to play a game

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really well takes a really long time and accepting that like one of the

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saddest things about life for me has been that like I'm only gonna have like

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maybe three or four more entrepreneurial seasons in me and that's really sad

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because it means I only have three or four more big swings and it's like shoot I

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have all of these things that I want to do in my life but I only get to pick

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three or four more maybe maybe right and so I think that just getting

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comfortable with the idea like there will always be people who make more and

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even if you are Paul Getty and become the richest man in the world everyone

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will forget anyways and so like just context right that there's nothing wrong

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with taking having six months where you you know re reconfigure what you're

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doing to then say this is what I'm gonna do for the next five or 10 and then

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you set for life and then you can do whatever you want thanks how you doing Alex

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name is Josh Hadley we sell on Amazon e-commerce yeah we talked last night

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primarily stationary products so calendars planners educational posters we

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did 12.5 million last year like to be at 50 million and even get to a hundred

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million that's kind of the trajectory I look at the you know what you your

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preamble earlier right so you know go to the increase your number of

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customers do more of what's been working for you and I have a podcast in the

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e-commerce space ideally want to be like you when I grow up and in the e-commerce

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space but with that being said I our number one priority for growth has always

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been find more products opportunities on Amazon launch those products right

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that's been our biggest growth lever let me excuse you have 1600 so we've got a

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lot it's all stationary my wife designs it all right all stationary all

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stationery I'm sure I bought something from you probably oh no okay yeah give

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them so we've looked at you know an Amazon's a cruel mistress in terms of

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decreasing profit margins right they're increasing fees and I see like the

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night over the next decade you look at Amazon you're going to be happy with

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single-digit profit margins it just becomes so competitive so with that being

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said we've got on to TikTok shop right we've had some success there took 10

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percent of ourselves this year already we've then taken the viral the videos

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that go viral on TikTok we run meta ads on them and we've finally cracked

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Shopify for the first time all right we've got a five row as on that right so we're

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doing that I also look at wholesale we briefly mentioned distribution in our

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conversation yesterday so as I look at like our number one priority for growth

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has always been do more of what's worked which has been launch products to

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serve yeah whatever crap people are looking for on Amazon yeah but I also have

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these things that are boiling up that I'm like man I think this can really

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have things TikTok actually is supporting all of our Amazon increasing

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organic ranking just for people will search mine by it right yeah so how do I

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communicate that to the team because it's like we still got to keep doing yeah so

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that's the silent six that's the silent six right so like we're going to

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continue to make the sausage we're going to continue to do the the proven

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winning strategy and that's kind of that's the core that's the base we're

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not gonna threaten the base to try and pursue the new thing but if you do see

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one of those riding on the walls type situations where you're like I

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my march is gonna compress et cetera et cetera then it makes sense to make

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your one big bet of the year let's say it's TikTok and I mean to be fair it's

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not that much more it worked to just take the same ads and then run them on

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Shopify and then that becomes the objective of the year which I would

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probably just put into owned you know owned customer list is probably how I just

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categorize that for the team I feel like that's it so what would what was the

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extra question yeah I mean that so you talked about that that being like hey

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this is the one thing we're doing right because we've got 25 team members

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yeah yeah they're all serving that one thing which is finding launching new

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products it can be you and it's got a small other team yeah might follow up

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question to this has been because I was talking earlier about go higher up

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director of marketing that can go run yeah hold TikTok side yeah all of the

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Shopify stuff that we want to do I've been doing a lot of it myself and almost

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my reluctance to go higher somebody is like well then what else do I do in the

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business you know what I mean so I'll I'll make you a promise and I don't make

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promises often I promise that if you replace what you were doing you will find

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something else to do well I know that well that then I will double down on that

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because you know I've got this other e-commerce thing like ideally a decade

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from now I'm I've got a win and I can go do this exact same thing you're doing

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but yeah e-commerce space right yeah to me I'm always like oh go go do more

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speaking on stages go start building my own personal brands kind of what I

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like I would that wouldn't be my priority I think get the win because it's like

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say differently take it take it to the natural logic logical extreme so you do

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lots of stage stuff and then the main business suffers and then you don't get

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the w then you're just a you know airbag right if you on the flip side you

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don't do any speaking and you get the win all those doors open tenfold and so

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like what matters more the win so get the win yeah easy enough I do think that

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with your audience that you have you'd be able to very easily headhunt a really

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savage director of marketing who's already done e-commerce for tiktok shop

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or or Shopify and I'd probably do it on your podcast I'd be like hey I'm

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looking for a savage like read Ernest Shackleton's ad like looking for men

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low chance of survival just like this is a dangerous place to work and I think

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you will track the right people awesome yeah and don't be afraid to pay them

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a lot okay thank you his man hey I'm breathe I'm from Tennessee my sister's

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over there hybrid sister we saw residential construction to middle-aged

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women who like to spend their husbands money love it yeah know your

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I'm sorry yeah we've done a hundred K in revenue in one year we would like to

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get to three million ideally in two years I think it's pretty realistic and

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easy and construction and I think what's stopping us is scaling and potentially

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niching down so after these workshops that's what we feel like is the right

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thing and we wanted to get your feedback on potentially niching down to

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bathrooms isn't too weak turn around yeah and it's a pretty standard gonna

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I tell you I like it you do you like it is a high more so time margin yeah 42

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percent yeah and it's fast two weeks it's easy to sell a little bit lower yeah

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yeah no I so with a lot of it's interesting because like in like app

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development or software shops it's actually really it's just digital

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construction versus like physical world construction they have same issues

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and so in almost all of those situations I end up saying like okay what

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aspect of app development or what types of apps or what type of development you

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do or what types of construction do you specialize in or that you have like

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that you absolutely nail and usually it's like it's something like this like

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you know we crush cabinets are like we're really good at countertops are

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really good at bathrooms are really good at whatever right and then

359
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zeroing on that you'd be amazed at how much more responsive your advertising

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your advertisements will be prospects to your advertisements because like then

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you can you could show before and after some bathrooms like it gets much more

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niche down and then people are coming in and calling or like that's what I

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want you're like cool let me just take your money and I'll give it to you so

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do you think like if we're saying no to the larger projects which is still

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holding a 42 percent margin we can do more of those but they take longer time

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you still think it's a better option to do the quicker thing well what do you

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make on a bathroom so for a custom shower it might be 10k my $4200 full

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bathroom in Tennessee is probably about 14 okay how many of those can you I

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mean how many can you fulfill right now at max five a month okay and that's

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today I think we're good for full double right now with our crew and then we'd

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have to build a film yeah yeah yeah sure I mean we really just started

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ramping up I don't I don't want you to turn off how you get customers because I

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like you need to make money and just for everybody like when you're when you're

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really small and you're starting out like it's normal to basically accept

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money from anyone you're like you have a pulse in a credit card like you're for

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me so it's normal but what I would like you to do that like you can take those

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jobs but in terms of what you're being deliberate about your advertising if

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you start running ads on my Facebook and show some of those images to

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generate leads and sell like I would focus on that and if you think that that

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because like we should be able to you should be able to pencil out in five

381
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minutes like can we make more money from this if you feel like your sister

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shields very very convicted about this okay yeah so if you can make a lot

383
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more money if you can sell a lot yeah a lot more money selling bathrooms and you

384
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can sell way more of them and the because then the transaction the the deal

385
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cycle shorter it's you know you walk there you quote you close like it's it's

386
00:28:33.480 --> 00:28:39.800
it's very straightforward I like those types of businesses yeah of course keep

387
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the money coming but focus there and then over time you're the coloring of

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your money will shift and you'll be like 80% will be bathrooms and then you just

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be like okay now we're gonna they'll be a time where you'll be able to say we

390
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don't need this anymore just to get the focus I just want you like shift it

391
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over time does that make sense okay yes or Alex that Kevin with asset protection

392
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planners I set up asset protection trust to people in lawsuits particularly

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and in lawsuits actively yeah there you go or before yeah and we do 11

394
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million revenue and I'd like to be at 25 okay and I think two things one they

395
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add the paper click cost through the roof eating up a lot of the profit and two

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finding people who really can sell and understand legal concepts yeah super

397
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problem yeah okay so those are two separate problems yeah which one's the

398
00:29:34.800 --> 00:29:40.840
bigger problem currently it's the ad cost are going to the roof just PPC yeah

399
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PPC well I mean if you're bidding for those terms the only way to win because

400
00:29:49.720 --> 00:29:52.920
it's an auction is gonna be you increasing LTV but I'm guessing I mean I'm

401
00:29:52.920 --> 00:29:56.240
guessing you're selling relatively expensive packages yeah yeah so I don't

402
00:29:56.240 --> 00:30:01.060
know how much room you have there so I would probably if if I wanted to

403
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solve you know the acquisition problem I would probably be looking at another

404
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paid ad you know way of running ads so PPC for everyone here typically pretty good

405
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returns very consistent it's really nice because once you set it you can kind

406
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of forget it kind of well definitely compared to social ads that are

407
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interruption-based you have to refresh all the time but I think that may be

408
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actually the next thing though is that I think you might have to look at

409
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interruption-based paid ads rather than inbound intent-based because I honestly

410
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the only thing that you could really do is just start going top of funnel more

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because if you what percentage is people who are in lawsuits versus people who

412
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are not in lawsuits okay yeah so that I would I would imagine that where your

413
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growth will come is from the people who are not in lawsuits because there's

414
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way more people there than in lawsuits PPC is going to be intent red hot

415
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pain they're going to come in the bike quickly whereas the people were

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preventative obviously take a little bit more education that's where it's

417
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actually very similar to the finance thing I was saying earlier we're pushing

418
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to either virtual or in-person events giving away lots of information right

419
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for selling more complex products tends to do really really well in your

420
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space and so I would probably go social ads to workshop virtual or in person

421
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yeah and then sell from there into your into your stuff that would probably be

422
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my strategy if I if you wanted to get to 25 because I don't think I mean can

423
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you probably can increase your your spend on PPC that much more anyways true

424
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like like like webinars things like that okay yeah so you can do

425
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virtually or you can do in person if you want yeah because if you do it in

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person or where you out of Florida Florida yeah I mean you could probably run a

427
00:31:40.520 --> 00:31:44.400
50 mile radius in Florida and do an in-person one and people still show so

428
00:31:44.400 --> 00:31:47.280
like that would be that would be like a because it's much easier to get people

429
00:31:47.280 --> 00:31:50.520
to it's it's a very easy funnel for in-person if you're local like it's

430
00:31:50.520 --> 00:31:56.640
literally just lead gen call schedule remind the hell out of them expect 20 25

431
00:31:56.640 --> 00:32:03.560
percent to show up of your leads 20 call it and then from there you'll close

432
00:32:03.560 --> 00:32:08.840
a third of the room that's I mean that's a very simple model so I'd probably

433
00:32:08.840 --> 00:32:11.680
start there and then as you kind of like get more familiar with it get the

434
00:32:11.680 --> 00:32:16.840
pitch down etc. then you can go online to the do the nation now yeah you

435
00:32:16.840 --> 00:32:18.680
know