And I think that was... Can I tell you a secret?
Yeah. Very small business owners will never build a stable business because they are not stable.
It has nothing to do with you. Okay. Hello.
How are you doing? My name is Kyler. I sell landscape lighting and exterior lighting basically to homeowners north of half a million dollars for the home.
Well, that's really good. I'm at 310. Revenue, 310K, 142 EBITDA.
And what's stopping me is I literally make all of that money from that lighting division temporary lighting, so holiday lighting.
So now I know I need to add on landscape lighting, permanent lighting to be sustainable all year round.
Okay. I haven't started. advertising for landscape lighting, except for the warm outreach that I've done to my temporary lighting customers.
So now I need to start working on a proven acquisition channel for new customers.
And that's what stopped me. Okay. And it's usually like Christmas lighting type stuff.
Yeah. Okay. When you, when you spin that up every year, do you just hire a bunch of temps and then you guys put them all up and then you fire everybody kind of thing?
Unfortunately, yeah, but we also have a washing side.
I talked to Ed about that. We might kill that.
So I didn't really want to get into the weeds with that, but I keep a couple on that do washing with me.
Washing? Exterior cleaning, concrete house washing, gutter cleaning.
That's actually a pretty decent business side note, but okay.
You're like, I'm selling water, you know, like not a bad, not a bad gig.
Okay. But you prefer the lighting business because it has higher margins and okay.
Yeah. So two potential ways to think about this.
So one way is you look at the Halloween store, which you've probably heard of, and they run for 90 days or two months, whatever it is, leading into Halloween.
And they every year just do more and more of it.
And that's the model. And he just sticks to that and he just takes off the rest of the year.
And so then the question becomes, how do I continue to gain access to a scalable workforce that is that I can basically turn on overnight and train up in a weekend to do all and basically to deliver all these services.
So that is not an unattractive business, to be clear.
I mean, a lot of people would love to own a business that they only have to work 90 days a year and they just I wouldn't say chill, but like kind of, right?
And so the other nine months of the year for that business would be you building out the the inroads and laying in all of the, basically building out the rapid work infrastructure so that when people come in, it's just like, boom, this is the training or like,
Boom, we sent our messages out. You guys have 14 days to respond.
And you know that every year you get verbal commitments around the year from 100 people.
And you know that that translates into 20 people who are actually proficient in work.
And so then you just work your basically work backwards from the model.
Does that make sense? Yeah. So that's the Halloween store path, which I don't think is necessarily a bad path.
Like when I have something you're like, okay, I'm making 310 on 500.
I'm like, cool, let's do like 5 million and make 3 million.
Like that sounds chill. Yeah. Right. Rather than like, how do I start another business? to like give my people something to do in the meantime.
So if I'm you, I would probably try and say like, and Layla has a great frame on this, which is, When we're looking at two business decisions, there's always problems on either side.
And so we ask the question, which problem would we rather solve?
Or which problem do we feel like we're more equipped or more likely to solve? given our current resources, skill sets, et cetera.
And so if we're looking at this path, path wouldn't be like, do I believe it's within my skill set to build the network nine months a year? and build the training out so that when I send the mass blast out, like we're about to go into high season, ready to rock and roll,
I can get this percentage of people and I can get them trained up in a weekend and then we're off and running.
Do I want to solve that problem or do I want to build out basically the ascension path from temporary lighting to permanent lighting and kind of build that whole other business?
The way I asked the question seemed one-sided, but like, That's, that's a, that's a, it's a real question.
Yeah, no, it's, it's a real question because I could spend nine months doing that, but I'm not gonna lie.
I think I may just get like a little bored, you know, through the rest of the nine months.
Yeah. Get a dog, you know? Well, one of the things you can do and like, okay, so, okay.
So I define patience as figuring out what to do in the meantime.
So we have to figure out something for you to do in the meantime.
And so the question is, what can I do in the meantime that could make my core business money during that high season?
Well, I could probably pre-sell that season all year.
So I did do pre-sales basically last month.
We do our pre-sale just to get cash flow.
And just real quick, side tangent. Basically, I went to a permanent lighting training end of last month.
They actually said you can lease... that permanent lighting, essentially, year-round lighting, for all y'all that don't really know.
Yeah, year-round lighting. but basically have that just recurring every single year.
So they're leasing it basically. And then if they want, they could buy it out.
So I was thinking about upselling those customers.
We have one year three or five year contracts and then upselling the people that are on those contracts for just year round lighting and say hey do you want this thing all year and it's not going to cost you the six to ten k If you don't want to pay that upfront, of course we'd like that, but then offer that same exact price every single year.
I don't think it's a bad model. Which one would you rather do?
I think both will work. Honestly, I'm leaning towards just figuring out the landscape lighting because I don't think it's that hard.
Great margins to add on to the business.
In my long-term play of making this scalable potentially to other markets, I would like a full year-round business instead of just seasonal.
So I'll say this. It's not that it's not a year round business in the first year.
This is me trying to convince you. This is kind of for everybody else too.
It's not that it's not a year round business.
It's just that you do delivery for 90 days.
The fact that you're not working the other nine months is the problem.
You're right. Because could we take 500K and make it 5 million if you worked the other 75% of the year?
Yeah. rather than creating this other business to keep yourself busy.
Okay. Like that's how I think about it.
Like you're like, man, if I work, I work a little bit, I make, I make 500, I make 300 grand at a quarter.
I'm like, we work a lot of it. Maybe you make 1.2 million. in the next year, that's with zero changes in like current capacity.
Yeah. And honestly, you answered my question.
If Sammy's in the room, really sorry. I tried to ask her a question.
She's like, I need literally 98 other data points, but you just figure it out.
Cause that's literally the problem I run into is like, I had to pull all my advertising, all that stuff last season because...
I hired on all these people. Half the people don't know what they're doing all the way.
There's no time to train. So that makes a lot of sense.
What will happen, what would happen next is like if you went the other path of, if you decide to do the temporary leasing thing, the demand that you'll be able to generate for temporary lighting will still exceed your capacity with your existing workforce on the recurring work.
So you're going to have the problem either way.
So which problem would you rather have? That's a you problem.
Business-wise, either model works. I would recommend not doing both.
Yeah. Okay. Cool. Thank you. Yeah, you're welcome.
Thank you. A little round of applause. These have been easy ones.
These have been fun ones. All right. So my name is Christine Mattis and I sell legal services in the form of estate planning and helping clients with real estate matters.
Basically two families and their families, high net worth families.
We did 2 million. So we've been growing 20% every year for the last five years.
My goal is 10 million. What's stopping me is really, it was an eye-opener yesterday doing that scorecard.
My EBITDA is terrible, like zero. And, but yet I know we want to get more legal.
You just do nothing for Xero. It's so much easier.
And I know I would get more leads, but also sales.
So I'm trying to figure out, well, what's the first thing you would attack when you have this kind of situation?
Well, I don't understand why we weren't making money.
Right. So I would probably be tackling that first.
Okay. I think we're talking about y'all's restaurant yesterday.
Like, You need to fix the core model. I'm pretty confident because I understand the business fairly well.
There isn't some massive fixed cost. Your cost is people. payroll.
It's not like you have some machine that you have to pay or some massive rent that must get paid before you can make incremental revenue.
And so I would probably be looking inwards first. at basically how I'm compensating people and how I'm pricing.
So it's likely that, so are you at capacity right now with your current team?
They think we are, but I'm feeling there's more room to grow.
Yeah. So you have a pricing issue. So you're either underpriced or overpaying or a combination of both.
Okay. And so I would fix that first because then you'll fix cash flow.
And then that freed up cash flow will allow you to get more aggressive on the front end.
But for me to say, hey, let's go get more customers is probably not the solution right now.
We have to free up cash so you can breathe.
Yeah, absolutely. Appreciate it. Thank you.
Yeah, you bet. How's everyone, Alex? My name is also Alex.
I own a company that- Are you having the best day ever because you have that name?
I mean, that's how I wake up every day. I'm like, I'm called Alex.
Like I'm having the best day. I sell trivia nights to bars and restaurants across the country.
So they'll bring us in on their slow night of the week and we will come every week. basically fill up their bar for them cool currently at 1.1 million in revenue like bar lodge Sure, if you will.
No, man, that's what I did. That's what I did for a living for two years.
So currently 1.1 million, would like to be at 10.
What's stopping me right now is Capacity, but I think really I'm just a couple hires away from getting that.
So my question is really more about our upsell.
We do have an upsell that we present to bars right now, but it kind of sucks.
Cool. And that our core offers to the trivia nights themselves, our LTV to CAC is about 12 to one.
So I like where we are there. But our upsell, I mean, people churn out after like three months.
You mean they do a couple of trivia nights and then they dip or the bars?
The bars themselves, we use it for about three months, the upsell.
What is the upsell? The upsell is... basically a different type of trivia night it's called music mash more of that it's like a music style trivia okay so my question is Right now, I'm trying to just improve the music mashup game to make it something better.
Do I keep doing that or do I just bail? Okay, so this is super applicable to a lot of people here.
Okay. So let's say this is a customer journey.
This will be trivia. All right. So where do you sell?
Ideally, on this life cycle, where do you sell?
Where do I sell? What's the best time to sell?
This is our value line. At the bottom, at the pain point, right?
Yes. Okay. So you're delivering tribunals, right?
Yes. We have now provided value. And we're selling here, but they're already full.
So I give the analogy of if I go to, I go to y'all's restaurant, right?
And I say, hi, I want a steak. I'm starving. right?
And sorry, I go to the restaurant. I say, I'm starving.
You say, would you like a steak? And I say, sure.
I eat the steak. And you guys come back over and you're like, how was it?
I'm like, oh my God, it was amazing. And you're like, awesome.
Do another steak. I'd be like, No, no, I'm good.
Like, I'm good. And they're like, oh, you don't like the steak?
I'm like, no, I like the steak, but I'm good.
It's like, well, then why don't you have another steak?
You're like, ah, right, it gets really awkward, right?
But that's actually kind of the situation a lot of business owners are in.
But after I have my steak, I might have the desire to have something sweet.
And so now I'm full on my value vector for steak eating, but I'm empty on my value vector for dessert eating.
And so then I'd be like, ah, you should try our apple cobbler.
It's delicious, whatever. What we want to figure out is sometimes the point of greatest value also on another vector becomes the point of greatest deprivation.
And that's why sometimes they overlap. Often they don't.
And so I think it's one of the big mistakes that people make is when they time their upsells.
And so for, I'll give you a B2B example and then I'll circle back to the bar.
So if I help someone get more leads, right?
I have now provided value. But now that I provided this value, they're like, shit, now I have to work all the leads.
And so then that creates the opportunity to sell the lead nurture services or the other things that they need to go with this problem that I just created by solving their first problem.
And so, Upsell timing is one of the big mess-ups, I think, in a lot of businesses.
Okay, back to the bars. So Trivia Nights is the core.
So what stops you from just having... Basically just continue to do trivia nights with them.
What do you mean? So you do a trivia night.
You bring a bunch of people on Thursday.
Next Thursday, I still want a bunch of people.
Why don't I do trivia? No, that is the business model.
Everything is weekly. So a ball will hire us and we will come in every week on that day at that time and bring back that crowd.
So we develop regular sports. Okay. And that's, And that's sticky, though, right?
Yes. Okay, then what's the problem with just doing more of that?
That was my question, is whether I should just focus on doing more of that.
Yeah. Okay. Yeah. So you're like, I've got this really sticky thing that we're really good at and people like it.
It's like, do that. Okay, so... follow-up question to that would be at what point so let's say I just the next however many years I just keep milking the trivia nights over and over again at what point do I even consider bringing on an upsell because right now we have No upset.
I don't think you necessarily need one. Are you running good margins?
Yeah, they're fine. Or 25-ish percent. Yeah.
12? 25. Oh, 25. Okay. I was like, 25 is fine.
Okay. Yeah. I think you're just in a more situation.
All right. So how do you get bars right now?
Primarily cold outbound, a lot of cold email, cold call, some inbound, about 20% of new clients come via referral.
Cool. So and that's I can understand that because they're not trying to refer the bar down the street because it's like, yeah, I get it.
So we had some of the issues with gym watch.
They only refer somebody who's like out of state.
Yeah, I got it. How many outbound actions are you taking per day to generate your sales velocity?
One sales guy full-time, and he'll make about 100 sales cold calls per day.
Yeah. So, I mean, that guy should probably rip like 300, but just as a baseline.
But I think hiring like three more guys and having all those guys do 300 a day would probably get you a bunch of sales.
Because the biggest thing that I would want to solve if I'm you is how do I make sure that bars that do trivia night just keep doing trivia night with me?
Yeah. If that's not a problem and they are just all continually doing that, then you have solved the hardest problem in business, which is that you have revenue retention.
So we just don't need to be fancy. We just need to do a shitload more of it.
Cool. Thank you. Rock and roll. Yes, ma'am.
Hi, my name is Zora Mutuakil. Zora. Zora.
Nice to meet you. Nice to meet you. I sell kitchens and bathrooms to residential homeowners.
I would, our revenue is about 320 would like to be at 1 million.
The problem we're having is we have a sister company that is commercial real estate development that is taking the money from the construction.
It's my father's interest to keep that. The real estate, I want to focus on the commercial or the construction.
Who founded this business? My father, both.
So you founded both of them. It says family business.
Family. Your father here? No. Okay. All right.
So... I want to focus on the construction.
We are partners with Home Depot for three of their stores.
I was told try to like do more with Home Depot, get more stores. but we do have all those leaks in the real estate, like properties aren't selling, properties aren't being rented to the max, all these bills and they take the construction money So you have one business that makes you money and another business that loses money.
Yeah. Okay. And we're kind of stuck in the... Are you stuck? it's like a fight with my dad.
Oh yeah. Yeah. So I tell him, relax, take a chill pill.
Let's do the construction. But he's like, real estate is what makes you rich.
And I'm like, no, like, that's like you save and you invest with real estate, but that's not the business.
And that's where we have different opinions.
Right. So that's where we're trying to plug in the holes.
I want to just give you this, which is that your father's logic is sound.
The practicality of it tends to be different in reality.
And so the vast majority, this is super, I would say it's more common than it's uncommon. is that people who get into construction, they make some money and they're like, oh, I'll just start also doing construction and real estate.
And then I'll start flipping things. And then all of a sudden they've got like four businesses that are kind of real estate adjacent.
And they're like, well, it's actually an ecosystem.
And you're like, Oh God, anyways. Real quick guys, I have a special, special gift for you for being loyal listeners of the podcast.
Layla and I spent probably an entire quarter putting together our scaling roadmap.
It's breaking scaling into 10 stages, and across all eight functions of the business.
You've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, you've got HR, you've got finance.
We show the problems that emerge at every level of scale and how to graduate to the next level.
It's all free and you can get it personalized to you.
So it's about 30 ish pages for each of the stages.
Once you answer the questions, it will tell you exactly where you're at and what you need to do to grow.
14 hours of stuff but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes.
And so if that's at all interesting, you can go to acquisition.com forward slash roadmap, R-O-A-D map, roadmap.
I think, let's say you're on stage here.
What do you tell you? What was that? What do you tell you if you were on stage?
What do I tell me? I want to focus on construction.
I like to focus on one thing. I don't like doing multiple.
And it just gets to the fight. Yeah. You know what to do.
Yeah. So I think you have... So let's get real for a second.
So you have a question of what you want to do in your life.
So... You can continue to work in your father's business.
So you have basically three paths. One is stomach it.
I don't think your dad's going to change his mind.
How old is he? I'm waiting like five years for him to retire.
He's 53. Yeah. Cause he tells me, he's like, I'm going to give you like five years.
And then he tries pushing it. It's like 10 years.
I think it'll be five years away for the next.
And I tell him, I'm like, I'm going to take over.
It's me and my sister. And hopefully my husband comes back because he kicked him out.
There you go. It's a whole family affair.
Yeah, it's crazy. Okay. It's getting so juicy.
Yeah, it's crazy. So this is one where there's high drama, very simple solutions. other ones you have like no drama and very complex solutions these are what i tell him like i'm gonna take over you should focus on what i want And it's kind of just like repeating that into him.
Wait for your dad to retire in five years. know that it's not going to be five years or I'm leaving.
That's what you start with. Yeah. And under these terms, I'll stay.
I feel like I've done the third and that's why I'm here.
But do you believe that, but you just said he's moving them.
He's pushing them back. We fight, but I tell him I'm the boss.
Yeah. It's very, and he listens, but it's a fight.
Like, it's a fight. Did you sign something?
Sign what? agreement No, I put it in paper and I know this sounds wild cuz it's like it's family.
The thing is is that I Don't think he's gonna take you seriously You're his baby girl, right?
And this is big, rough construction. They're going to take advantage of you.
You don't know. I've been doing this longer than you.
Right. And you're like, and in the short time that I've done it, I've made more.
So my units of, you know, my income per unit times actually way higher than yours is.
You don't need to say that, I'll hate you.
So, but honestly, you have life choices right now.
The business decision is actually really easy. you know, the construction business is what you should be doing.
Stick to the one that you have really good margins in.
You have all these growth opportunities that are sitting in front of you and you have you're throwing good money after bad.
That's like pretty standard thing that happens in the entrepreneurial journey but you just have that choice to make now if you're like well i already did three it's like then you didn't do it right and so Fundamentally, he doesn't believe you.
Now there is a world where he will just never relinquish power.
And then you've got to figure out what you want to do with your life.
Yeah. I'm going to hope for three and then we'll see.
But you have to take it seriously, though.
So here's how I would do it. That's how I do it.
I want to buy the business from you. Because you saying, wait until you retire, it's like, what am I going to do with my time?
You're like, I got to do something. So it's like, I'm going to buy the business from you.
Effective today. And I will pay you over the next five years.
Then you have a clear date or three years, whatever.
And then you work essentially for free. And then you take the profit that you would, you know, you agree on a price and you start paying it.
Like you have to have an agreement and you have to send money has to change hands.
Either way, he's going to have to change hands, otherwise you're going to have a tax event regardless when he gives you a business.
So you might as well do it now. You talked to the estate attorney, right?
Like there's a way to do this in a tax efficient manner.
But if he is going to transition the business to you, which I'm sure he does want to do, then we need to put a clock on it when you start making payments towards it.
That's how three actually works. If it's just like, Hey, I'm the boss now.
It's like, you're just going to keep doing this loop for the next 20 years.
Okay. And you seem like a very kind person.
And so I need you to take your teeth out a little bit.
That's what my sister is. Yeah. Is she here?
Is she here? No, she's not. So the deal I made with him when I wanted to come here was to invest in the construction And he said, okay, you go.
You pay for it. If it works, I'll give you your money back.
So that's when I was like, okay, maybe I say you can do it.
Yeah, I don't want to do the real estate.
But this is it. There's really no more to go over on this one.
So do the paperwork. This is the deal. Agree on a price and then agree on the terms and then start the car.
And if he says no, then you'll actually be able to say, this is like, I'll give you a totally different example.
Girl dates guy. Guy promises to marry girl.
Girl asks for engagement ring. He says, I'll give you a promise ring. wait, when are we getting married?
Don't worry, I gotta close up some things at work first.
Two years pass, when are we getting married?
He's never gonna marry you. And so you just have to like, you have to, there's a decision that has to get made.
And so, and if you want to use this quote, you can, which is decision comes from the Latin root of decadere, which means to cut off. which means that we have to cut off one of these paths.
Otherwise, you haven't made a decision. I define commitment as the elimination of alternatives.
Right now, you have three alternatives. You have to eliminate two.
Cool. Thank you. Hey, Alex. Hello, sir.
My name is Adam Howard. We sell health insurance, life insurance, retirement planning to middle-income Americans.
We are currently about 4 million in top line.
Want to be about 10 million here. I think we can do it in two years.
Our constraint is we've got two locations, brick and mortar.
We have a DMA about 90 miles from our brick and mortar.
We're at max capacity at this point. And so we need to, you know, we're looking to bring another location on outside of this DMA, right?
And so how do we efficiently, as we're thinking through the strategy, find good talent that we can eventually groom into leadership to lead that office. and then do so cash flowing as quickly as we can.
Because one of the challenges is taking somebody from unlicensed to licensed to learning the business.
Two, we have a six-month sales cycle as it is once we start marketing.
How do we do that as efficiently as possible?
What stops you from taking one person from your current locations and giving them the opportunity to own a small chunk of that one?
Yeah, we've, we've thought about doing that.
And then the thought process is there where we kind of disrupt the flow of that existing office.
How many guys are in each office? They're small.
So our West office is two people and then we've got five in our home office.
Okay. You think you can take one of the five?
No, I don't. I don't think so. Okay. Well, which problem would you rather have?
So either you can take your five location and bring it down to four and then backfill within that location that's already cash flowing positive, has the culture there and bring somebody else in.
Or do you think it'll be harder to get somebody who's brand new, not surrounded by anyone to get up to speed? it's a great question.
I don't know without testing it. And I know that, you know, both have risks and, you know, you know, we might, you're only intentionally.
Yeah, exactly. So I'm always thinking about how do we mitigate the risk and how do we, yeah, So I'm leading to where I think that it is lower risk to take one of the five and bring them over to the other location and have them see that with all the values in the culture that you know, they already know how to run the business.
And so now you only have one new variable, which is the location.
You know the guy's good. You know he's going to do your values.
And then you can spin that location up. And then the location that you have that is your mothership, it can take a little bit of a dip.
Right. If it needs to, because it can weather that you've got cash flow, you've got existing contracts, you've got premiums that are coming in.
If you do new guy, new location, everything's new and you're not sure, is it the market that's bad?
Is it this guy who's bad? Maybe he's good, but he's not a culture fit.
But now I got to turn the whole location over because he ends up hiring two other people underneath him that also aren't culture fits.
To me, it's a pretty straightforward... I think the risk on going from five to four, taking one of the best guys, giving the opportunity for his career to advance, which also paints a picture for everyone else in the organization that, hey, you do a great job.
You might be able to have your own office that you can lead.
I think that's a really good story. And you're in the talent business.
It's hard to find good guys. Right. For sure.
I own an insurance company, so I get it.
Question for you to follow up on that then.
So to efficiently scale that quicker and continue to duplicate that then, You know, we thought about that as a model for it.
So then but it's kind of slower. We got to build this up, find a guy from here and then move him here.
Right. Guy or gal from here. Or how do we eventually across state lines now find somebody that's two states over, you know, and you got somebody that's like, I don't want to move two states over.
Maybe they do because the upside is so good.
Opportunity. Creating a good enough opportunity.
Yeah. And this is career pathing. I think it's actually really good for the business.
Because people do eventually, they build a big enough book.
You know, I'm thinking about hanging my own shingle.
It's like, cool, let me just take care of that for you.
Hang your own shingle, but under our bigger flag.
And you get all of our systems, all of our infrastructure, all of our support, our lead generation, everything that's in that area, we'll just immediately send to you.
You'll hit the ground running. So from initial onboarding, having a good process is thought out from A to Z. Hey, if you get to this point, this is an opportunity.
Yeah. And I think that paints a really compelling picture.
Yeah. That's what I would do. I also would just, this is for everybody.
A lot of the problems that you have are based on timeline, which is just like an arbitrary, line in the sand that it's like, I must get to this point by this day, which is basically irrelevant, just made up.
And so I think at the end of the day, if you thought, well, what would it take to make this insurance company, one of the biggest in the US in 20 years. you probably grow very strategically off of this culture that has worked really, really well and trying to seed each location with the best best seeds from the ones before.
So you just keep those values kind of all the way throughout.
So I think that's the much lower risk path.
Appreciate it. Thank you. hi again yes my name is seller ukraine number one seller in all ukraine spends lots of money on ads you've gone to poland and you haven't been able to get the market to convert.
We talked last night. You take the words, look at the cultural differences on ChatGPT, translate your existing marketing copy back into the Polish cultural norms so that the right language is used so that it converts there.
What's the question? Wow. You have AI here already?
Neuralink? Something like this. i prepare a little bit different question thank you thank you i promise that you don't remember me and we sell crypto education to a wide audience and mostly who want to meet their basic needs.
So there are no specific audience. We make over 1 million in revenue.
We operate in Ukraine and are launching in other countries.
I want to reach 10 million. I more or less understand how by expanding to new markets.
And we run cold traffic from Meta, Google, Influencers, Telegram and et cetera, through funnels.
And one old webinar funnel had generated over $20 million and still working.
And we tested VSL. We put same content like in our auto webinar, but shorter and without comments, activities.
We tested advertorials, we tested lead magnets, funnels, and nothing works as well as AutoWebinar funnel.
That's where the magic happens, where we are creating new of the webinar funnels. and testing new topics, even new faces within these funnels.
And I want to reach the audience that doesn't attend webinars.
And my big question is how to find best practices and what else could hypothetically work.
And I'm reading your book about offers right now.
And it's inspired me to build funnels for specific high paying segments instead of just white audience and I'd like to ask you your opinion about this and is it the right way that I think right now?
Are you doing a million dollars a year? I remember the 20.
Million dollars, over a million dollars per month.
Per month, okay. That makes me feel better.
Okay, because you're like, we're the biggest in Ukraine.
I'm like, a million bucks a year? I don't think so.
Yes. Maybe in crypto at, you know, maybe at 12 in Ukraine.
I don't know. I don't know what the proportional GDP is there and I know there's war and all sorts of stuff, so I'm sure it's tough over there.
Okay, so if the goal is to get bigger...
I mean, the simplest thing to do would just be to add an upsell to the existing Ukraine market.
That would be the simplest thing to do. Highest likelihood. impact that would just make you more money that's the that is for sure the easiest money button If you wanted to expand front ends, then I think the idea of like trying to hit the people who are not on Google and Meta, is not the framework that I would use.
And the reason for that is one, everyone's on it.
Secondarily, the people who aren't on it probably aren't buying crypto.
Like if you're not on Google, You're probably not buying crypto.
You're not on web two. Web three is going to be like, what is going on?
And so I think that like the first thing I do is probably add the ascension path.
I'd be like thing one. And then in terms of expanding into new markets, it was kind of what we talked about last night, which is I think that The marketing that you're doing is just simply not resonating in these other markets because it's not your first language.
And so marketing is so nuanced in terms of how copies are written, what analogies are persuasive. what visuals resonate within a given audience, that that's, in my opinion, what the highest likelihood gap is for why it's not converting those new markets.
Yes, I understood. We do upsells, we have continuity, we have high ticket products inside and we, I think, do everything.
The main point is what best practices in funnels can work with us.
Maybe I don't understand clearly about Google.
Google banned us every day and we can't work with our crypto.
We are not a crypto project. We are not some... Well, everything crypto related, there's a lot of Yeah.
So, I mean, fundamentally, the business as it is today is just going to be a cash business.
It's not going to be something that has enterprise value.
And so you're running a basic arbitrage business, which is just I buy media for a buck, I make $8 on gated media, and I just run that as much as I can.
And so really the only way to grow that business is to just market more, spend more.
That's it. And the only way that you can do that is that you continue to increase LTV.
And so you're going to reach a natural cap based on the amount that you make per customer and the cost of eyeballs.
And then over time, that gap is going to shrink And your margins are going to compress, which is why right now you have, when I remember I did company one, company two yesterday, I walked across here and I said, you're company one.
You're a marketing machine. and you're blowing tons of cashflow in the door, and that's a good thing.
I call this a smash and grab opportunity.
It's unlikely that it becomes something that has sustainable long-term enterprise value.
When I say long-term, I mean like 10 years.
You can for sure run this for more years than now.
But it's just going to be a more thing. Like, how do we spend more money and how do we make better ads?
But if you have converting language if you like auto webinars or whatever is converting really well for you then there's lots of little things so which is probably out of the scope of what i could answer in a verbal q a It's like, have we split test the first 30 seconds of the VSL with three or five, you know, three to five different hooks, you know, on the ad side, like how many new pieces of creative are we putting on a day?
I don't know how many putting out, but like if you get up to, it's basically about 50, 50 pieces of creative per $10,000 per day.
The five increases per month per day. Hundreds per month.
Yeah. So that would be from a creative perspective.
So it would really just be looking at every step of it and just looking against the checklist.
It's saying like, all we're going to be doing with that business is just improving it.
There's not going to be a big order of magnitude change that's going to happen.
It's just going to be a hundred small things because it's already profitable.
You already have a client acquisition system.
So it's just like, how do we go from eight to one to 12 to one so that we can then double ad spend and be at eight to one again, but at twice the spend.
And that's literally the process. You just do that over and over again.
Got it. Thank you so much. Yeah, you bet. hi alex hello my name is nico i'm from quebec also there was another guy from quebec too my friend so yeah we help home service businesses stuck between 100k and their first million a year to reached their first million a year with a three-step client acquisition formula called TNT.
But before that, for five years, we were a WASP, so website as a service.
We sold 2.1 million over the last year. Net profit is like 950K.
We would like to reach 500K a month collected for Quebec market and have less complexity.
Okay, situation here. So we have like 700 active client on the whole old system, which was a was $200 a month thing.
It was super cool, but super frustrating.
The team started to feel like robots. So we got emotional and we're like, okay, let's move to high ticket.
So that's what happened four months ago.
We started high ticket. We're like, whoo, cash flows here now.
But the thing is, I realized yesterday actually that my LTV to CAC is now very low.
Because my clients are home service businesses.
I'm in Quebec. We can only run ads for like four months for them because there's snow everywhere for like six, seven months a year.
The other thing is once the ads work, they stop the ads because they are limited by capacity.
So what's stopping me to grow? What do you want to do with this business?
What we want to do actually is well, you want to, cause the first business sounded like a great business, right?
I know. Sure. The thing is we wanted to create a real transformation and I think that was... Can I tell you a secret?
Yeah. Very small business owners will never build a stable business because they are not stable.
So it has nothing to do with you. Okay. And this took me a very long time to figure out.
And I kept trying to bang my head against the wall being like, how do I fix turn?
How do I fix retention? Like Shopify. has best-in-class retention for VSMBs, so very small business owners, prosumers, if you will, and they keep 50% per year.
That's best-in-class, $100 billion company.
And so I have only seen one model work with small business owners and it's ultra low priced and you build the entire business around having high gross margins, but low prices.
Right. So the West. Yes. That was a good thing because I feel like I'm trying to push a high.
The only thing that happened is you just got impatient.
Yeah. You had 700 customers paying you $200 a month.
You're making one for you a month. Yeah.
Probably good margins. Yeah. Yeah. It's nice.
And you're running late. Right. And so I think honestly, like, you know, the best thing that would have happened would have been that you didn't take the last four months and build this other thing.
And you just kept doubling down and taking all that extra energy and said, What were you doing in sales per month with the WAAS?
I just like saying WAAS. The WAAS, we're onboarding like 40 to 50 new clients a month.
What's churn? We were keeping like, 85% of people year after year.
Good business. Right. The thing is super high gross margins.
Yeah. 85% annual revenue retention. When we started High Ticket, we're like, whoa, cashflow is insane now.
Like on month one, but then maybe not later.
Well, you're certainly not making transformations now.
They leave in four months. Yeah. Okay, so instead of thinking about transformations, just think So Elon has this really good frame around this.
He said, either we can have a very small amount of people, a ton, or we can help a lot of people a little bit.
And he's taking the perspective to helping a lot of people a little bit.
And so I think with this business, like they have demonstrated with their dollars that they value what you give them.
They don't cancel it. They like it. When you give them the other thing, you think you're selling out of your own wallet.
You're saying, I wouldn't want this. I would want this.
And then you're saying, they're not like me.
Duh. And we can still sell the high ticket to the Nuggets in the West.
Yeah, that would be the thing. You know what would be even cooler?
Not doing this. Okay, not even. No, like, hear me out.
So... So, no, this is like, I will keep the entertainment for entertainment purposes, but I want you to really think about this.
So, okay. There is going to be, I didn't explain what these other frameworks, but crash courts.
So with every one of the implementations that you do, you have limited resources, time, effort, money, right?
And so strategy is prioritization. It means how do we take these limited resources and allocate them against unlimited options?
And so if you're not sure it's because you're not doing the job of the entrepreneur, there is always only one thing that is the most important business.
And if you can't decide that's on you. And so, You have the stuff, you've got your team, you've got your money or whatever.
And so instead of being like, man, we should start this Ascension thing because you probably have really good else to be to cack on this other business, the last business.
Oh, yeah, yeah, this one, yeah. Yeah, right.
And so instead of saying, hey, let's start this whole other business, right?
Because the totally different service, totally different price point, whatever, right?
Just say like, what if we took all of that energy of starting this other business And just said, how do we get to 200 customers a month?
True. Yeah. That would quadruple the business.
Yeah. And if you did that, you'd be at 500,000 a month in six months.
That's right. And it would be really good.
$500,000. Amazing. That helps. Cool. Thank you.
No, you bet. My name is Cole. So I sell solar.
I'm like a marketing company for solar providers in California.
So we sell to homeowners. I'm currently, we opened up last April.
And I did $850,000 last year. So I want to be at $10 million.
The biggest, I know, I know. The biggest concern that I have.
Yesterday. Yesterday, yeah. Yeah. I think that my biggest concern right now is that I think we have a very much of an apples to apples comparison to other solar companies.
I don't think our offer is actually that special in terms of like, relatively speaking.
Commodity. Yeah, for sure. And so, I've been trying to find ways to create an apples to oranges comparison.
Our sales are, it's like me and my business partner, we're very good at sales.
So we have like a We did door-to-door for decades, so we're like 80% close rates.
But it's a battle, right? And we do lose people to price shopping, which is we're 100% virtual.
So I'm trying to figure out how to create an apples to orange comparison in the solar industry, which is very much a commodity market.
But you don't have control over the product, right?
That's correct. Yeah. I'll be honest. It's very tough.
Like you can't, you actually can't really change your offer.
Right. And so the only thing that you can do is change the terms, but it's a zero sum game.
So every dollar you take out of your pocket, you put it into, you know, like every dollar you give the customer, you're taking out of your pocket because you can't control the variables, right?
Yeah. So what were the margins that you made on the 800s?
We made half of that. Okay. Yeah. So I'll say this.
I don't think the constraint of the business is that it's commoditized.
Okay. So although it may be frustrating, you're running 50% margins on a business that you have very little operational complexity around.
And so if you want to hit 10 million, you absolutely could hit 10 million.
There's tons of solar companies that go from zero to 10, zero to 20 in like 12 months, 24 months.
Not that uncommon. But the business that you're really in is the recruiting, hiring, training of salespeople business.
And that's That's the game, right? The business is not super sellable.
I mean, it is sellable. Like you can sell like one times and then you can basically meld your team into some other guy's distribution base and it all gets aggregated.
And that's kind of how that industry is going.
But basically, you don't have enough control over the business to really... materially change the offer.
Yeah. And so I don't normally say that, but essentially, and like, this is probably not taking it as a slight.
It's just like, no, You're a hired gun.
You know what I mean? And so you've got two hired guns and you guys are both really, you're mercenaries.
You're both really good at sales and you're making basically the same amount that a top tier sales guy would at. at a sales org.
And so the only leverage that you're gonna get is training.
Your ability to train onboard recruit other guys who can do the same thing as you and you get an override on their commissions.
And so, if anything, I would say that So we're getting to the answer.
So basically where you can have a competitive advantage is not on the customer side. but on the salesman side.
And so I would reorient all my attention to being like, how can I make the best offer to salespeople?
How can I get more salespeople onboarded?
How can I have superior training? How can I have better data and analytics and better lead gen for them so that their job of selling is made easiest with me for everything else minus the core offer. yeah my my vision long term is with solar especially in california it's it's a savings oriented sale so it's like your bill is this you're going to pay less money etc As long as the credits are there.
What's that? As long as the credits are there.
Which is also a problem. Soon. Yeah, for real.
I divested from a solar company. What was that?
I divested from a solar company. Oh, did you really?
Interesting. Or this exact issue. Yeah. My ultimate vision, what I'm kind of been obsessed with is Instead of selling on savings, I would way rather find a way to add services on top of that, whether it's some sort of HVAC aero seal thing or you know the tax services with depreciation losses dude i'd rather you just like you so let's say so when we're going zooming all the way out strategy stuff yeah What you have is an ability to sell.
And you know how to generate leads. And if tomorrow you said, I'm not selling solar, You'd have to fill out the, you know, the next 180 days max of contracts and make sure that the shit gets installed, whatever, right?
Then for that, you can do whatever you want.
Right. How many employees do you have? We have four.
Yeah. So it's not, I mean, it's you, your partner and two other people.
Yeah. Yeah. Or three. Three. Okay. Yeah.
So, I think that it just might be, you might be better served and I don't normally give this kind of advice, but like you might just be better served taking that skillset and putting in a different opportunity at home.
Interesting. And just like you were like, how do I do this solar thing with HVAC?
It's like, just do HVAC. Just go to door to door, sell HVAC.
And HVAC has phenomenal multiples and has great revenue retention.
Yeah. Once people do the Ace Facts, person comes back every year, services again, upsells more stuff.
Cool. And there's problems in that business.
Getting HVAC, you know, people, the fixers, the technicians, is the constraint of that business.
Usually getting customers is actually not the constraint.
So it might be kind of fun for you to be like, oh, my phone's ringing.
This is weird. People are calling me because their AC is broken.
Like, Hey, can you sell me solar? Like no one does that.
Yeah, sure. Right. And so I think like, If the goal long-term is to build something that has pure enterprise value, given the fact that you have so little control over the existing process, you were basically just an acquisition machine to our respect.
I came from that in the gym world. Then recombine it into a business model that actually has enterprise value.
Cool. Probably not what you expected. Not at all.
Thank you. Sure. Sweet. Was that helpful?
Was that cool? Interesting. All right. Good.
