How do you and your role make the company money?
It sounds like a very simple question.
Like people should be able to know how the business works, especially as it relates to their job.
If you ask this to your team today, many of them will not know the answer to that question.
And that will frighten you.
Salutations, everyone.
Some of you guys have been asking for a schedule for us to do these lives.
And I am a pain with those types of things because I hate that.
Fixed schedules just a personal, personal thing for me.
But right now i'll give you the loosest commitment of all time, which is that around midday on thursdays is when we were going live.
That is when i do my recording, whether it starts at noon or noon 30 or 1 or 11 30, no idea.
But if you're like ah, around the midday of tuesday is when you know alex will go live, now is the time to do it.
With that being said, There's one belief that keeps most entrepreneurs trapped and unable to grow
They stay stuck.
And so I've been building businesses for a decade and a half now.
Today, my portfolio at acquisition.com last year did over $250 million in revenue.
And when I started, I made the same mistakes that everyone makes.
So I used to think no one can grow my business like me.
If you want it done right, you got to do it yourself.
No one can do it like I can do it.
Never let anyone else handle the money or never outsource sales, never outsource marketing, never outsource anything right.
It's not all these different people who tell me these things.
And it's interesting because they were a little bit ahead of me in business.
I think, oh, they must be right.
But they were just limited business owners like anyone else.
And it wasn't until I broke that belief or that system of thinking that I was able to build real companies, ones that make money even if I'm not involved in the money making.
And so in this video, I'll show you five steps that will let you hit your money goals by building a business that runs without you, or rather that can create value without you being required.
And so conceptually, this is the big idea.
A business that requires you isn't a business.
And I'm going to say that, the technical sense, anything that generates a profit with an LLC, is a business.
But in terms of the intention of the vast majority of people who begin a business, it's for freedom.
And then what ends up happening is that you create more liabilities, more dependencies, you lose your optionality, you lose your freedom and you now somehow are having.
You have a job you cannot quit.
Tough, right?
And what's interesting about this is that I want to talk about transitioning this thing from an Ironman suit, where it just enhances your ability to do but still requires you to run, not like the newer Ironman suits, which didn't require a person let's not get into it but was actually the businesses are valueless without you, all right.
And if you can get the Ironman suit to become upgraded so it can run and go fight the bad guys or make the profit without you, then it becomes something that is inherently valuable to anyone.
And once something goes from valuable to you to valuable to anyone, it means it's something that other people would want to buy.
When it's something that other people want to buy, it's something that is valuable and inherently has worth.
And so let me give you some simple math here.
Let's say you have two businesses, all right?
One that does, I'm going to use some math.
You can remove zeros if it hurts your eyeballs to think of more zeros, all right?
Let's say you've got a $10 million a year business over here, top line.
$10 million business over here doing top line.
So 10 and 10.
Okay, which business do you want?
You need more information, right?
Of course.
Now let's say that both businesses are $10 million top line, $2 million bottom line.
$8 million of cost in both.
Now which business do you want?
You still need more information.
Of course.
Now let's say that of this 10 top line, 2 million bottom line businesses, this one, the owner, is running 80 hours a week, like every day of the week they're working, and is required to work different than choosing to work as a side note.
But I won't get into that for now.
The second business, the owner never is there and just owns it like you would own a stock on the stock market.
Now, think about which of these business owners is richer.
Now, at the onset, you'd think, oh well, they're both the same top line, both the same bottom line, but the difference is actually very dramatic, and so let me explain.
So this guy first guy, very frustrated entrepreneur, Fred He makes 2 million a year and then he pays his 50 taxes and he makes a million bucks left over.
Then he lives his living expenses, whatever.
Maybe he's got a family.
Okay, he takes home $500,000 that he can put away.
So he's getting richer at $500,000 a year, roughly, in terms of his net worth.
That's a slow way to accumulate cash.
Now, don't get me wrong.
$500,000 is a lot of money, but I'm just saying, big picture.
Now, this guy, let's call it, so we had frustrated Fred, and let's call it wealthy William.
Sounds very, you know.
Fancy.
So this guy has an entire team that actually runs the business day-to-day without him.
And so he just owns it like he owns the paper stock of a company.
And his business right now trades at six times profit, meaning somebody would be willing to come in and write him a check for six times 2 million, which is 12 million.
And so of these two guys, this guy adds $500,000 to his net worth every year.
This guy has a business that is worth $12 million.
This guy's way richer.
But check this out.
Now let's say that both of these guys work, figure out a way to make the business make an extra 500000 a year in profit.
So they go from $2 million to $2.5 million.
$2 million to $2.5 million in profit.
That's what happens here.
Now, here's where it gets extra sexy.
This guy after he makes his extra 500000.
Let's say that he pays the 50 taxes and that 250000 after taxes goes straight to him.
So he goes from taking home $500,000 to $250,000.
He doesn't change his living styles.
All right?
So all the extra money, he just... he saves.
So he starts making $750,000 in savings per year.
Okay, after taxes, neat.
This guy, the $250,000, sorry, the $500,000 that comes in after taxes, he gets a six X multiple on.
And so he actually gets another $3 million added to his net worth.
So his 12 million becomes 15 million.
And this is the game of wealth.
This is how you get wealthy.
It's very, very inefficient to become wealthy off of regular income because it's tax to oblivion and there's zero multiplication that occurs on it, right.
You don't get 10 years of work.
You get one year divided by two after taxes.
So the difference is like a 20x difference between a valuable company that can sell for 10x versus one that can't.
Now, hopefully I've sold you a little bit on the idea of why this is worth doing.
Now let's walk through the steps of actually doing it.
So the first step of actually taking it from frustrated Fred to wealthy William is you do a self-inventory.
So what that means is that you actually list out everything you do, literally all of it.
All right.
And then you turn each of those checklist items into something that someone else can do.
And you want to get as granular as humanly possible.
And this is how you get out of the day to day without breaking the machine.
And so I would say the step even before this if you don't even know what you do, what we have people do is run a time study.
So time study, real simple.
You don't need any like fancy technology for this.
You just take an Excel sheet.
And you write times on one side every 15 minutes.
And you simply put in a timer.
You turn your timer.
And every 15 minutes, you just note what you did.
It's very simple.
Now, some of you might think, wow, I could never.
That sounds like so much work.
It's like you literally have a timer and then you write one word down every 15 minutes.
What's crazy about it is it'll be the most productive week of your life.
Every time I do a time study, I think I should do this every single week.
And I don't.
But you certainly will be really productive because you're going to prove to yourself that you're super productive.
I'm just telling you.
That's what will happen.
So anyways.
You can also, by the way, do this with your team.
If you're like, I have a key man risk over here, this person is super valuable to the business.
I have to have less dependency on this person.
You walk through this process.
So you do a time study, then you get the list of stuff.
Great, now we have this list and we can break it down into component parts.
This is the kind of list of everything, right?
And what we want to do is we want to start building little processes or it's installing people.
So it's either a project, a process or a person that's going to install in each of these little slots next to it.
So you have all the list of things, and then you have all the people or process or project.
Okay.
So pro project is a one-time thing which sometimes creates a process, Or we have a person who does this thing on a continuous basis.
And you probably have people on your team who are underutilized.
Some of these slots, you can just be like, I think Angela can do this.
I think Tommy can do this.
And you can start slotting them.
Then you'll have your red, yellow, green.
And so my green is I can give this to somebody.
So I'm going to look at my team, teach them how to do it.
They get this.
My yellow is there's a one-time project or process that I have to install here.
But I can do it and I know how to do it.
The red is where it's something that I either don't know how to do, or there's a person that I know I need to have, but I don't have.
And so I solve these in green to reds because the greens you can get out quickly.
The yellows is the next level that you can do with a little bit more time.
And then the reds is like, once I've done my greens and yellows, I can move on.
Now the way to think through this is having so in addition to this list.
It's like okay, these are the things I'm doing.
There's also the decisions you're deciding on.
And so as this time of documentation comes up, we want to start saying, if this, then that.
These are rules of behavior.
They're decision trees for common scenarios.
And I'll give you an example.
So when I Prestige Labs was the first physical products business that I started, supplement company.
And I remember the manager of the support team saying, it's really hard to get new people on.
And of course, I was less patient than I am now and less polite.
And I was like, how hard could this be?
I was like, change my...
Change my address, change my card, change my flavor, change my billing cadence.
I was like, cancel refund.
What else do we have here, right?
And when I said it like that, Layla pinged me and was like, don't be rude to people.
They're trying to win, and you are making it look really bad, and don't do that.
So I will tell you the story because that's what happened.
But fundamentally, it's just if this, then that.
Somebody will come in and say, I would like to change my card.
This is how you change your card.
Someone will say, I would like to change my flavor.
This is how you change the flavor.
I would like to change my billing cadence from once a month to every two months.
This is how you change the billing cadence.
It's just if this, then that.
The more complex the roles, the more one-off the scenario.
The more duplicatable the job, the more people you have in a specific department or function, typically the more standardized the questions become.
All right.
And so once we have that, then we can say, all right, there are all these questions that come in.
Some of these questions require approval.
Okay, somebody has a bad night's stay at our hotel.
How much money do I normally gift them in credit, or do I give them a gift card to our restaurant or something like that?
We decide that under 500 or under 1000, under 10000 it depends on the size of your company.
Under 100000 sometimes.
This person can act independently without your supervision.
Now, of course, you still have financials and at the end of the month, something looks out of whack.
You can go check it out.
So I'll give you an example of that.
We like to over deliver and have people have an amazing experience if they come out to our headquarters.
And so I let people do surprise dinners.
And so my team, like if they see two or three people that they think would like jive well together, we tell them hey, we made a reservation at this nice place, go there.
And so it's like a nice surprise and delight thing.
And so then I got like the pill. at the end of the month.
And we were spending $250,000 a month in five-star dinners.
And I was like, guys, listen, I love our clients.
But the question is, is this actually generating true value?
And so it turned out that that was not something.
And when we removed that thing, it didn't change anything about our happiness, scores or reviews or anything like that.
So I was like, okay.
So I say this because there's going to be a feedback loop and you're going to mess up.
But understanding, like what is the amount of money that I'm able to let someone make a decision on their behalf?
And you can also put a cap on it.
So it's like, you can make decisions under $500 in total up to 5,000, right?
So that gives them 10 shots to mess up or, you know, fix something in the business.
Now, underneath of that, this is where having kind of clear scorecards and KPIs around these things help.
Because if we're going to unlock some sort of decision tree.
We want to also make sure that it's unlocking some sort of value.
And so I'll give you a really powerful frame that you can talk to anybody in the business with.
You can say, how do you, in your role, make the company money?
It sounds like a very simple question.
People should be able to know how the business works, especially as it relates to their job.
If you ask this to your team today, many of them will not know the answer to that question.
And that will frighten you.
But fundamentally, like some of them are easy.
Sales, people come in and I get them to give us money.
And if they give us money, we make more money.
That makes sense.
Great job.
Okay.
But then you have some ancillary roles.
Like what does finance say?
What does tech say?
What does media say?
What does market?
So when we make so, if I ask my guy who's behind the camera.
So of course, marketing is something that generates money.
But you don't do marketing.
What do you do?
I hold the camera.
Okay.
So then what ways do you make us money?
Not the marketing function.
This is where it gets more interesting.
So if I had this camera person and he or she, right?
Slow down.
He or she holds the camera.
I say, all right, what does bad camera work do?
Bad camera work would be a waste of time, right, of the entire team.
Number two, the media would perform not as well because it would be off-center or it would just the lighting would be off, whatever the hell right.
On top of that, we would, I mean, we'd waste the footage.
I'm trying to think, what other things would it cost us in the business?
We'd probably have equipment that would be ill-fitted.
We wouldn't save the stuff that we'd have.
All of these are huge cost centers.
And so you can reverse each of these kind of potential mistakes into.
These are the things that we have to make.
What percentage of the time Was everything saved correctly?
Was it named correctly in the system?
Saved to the correct drive?
Timestamped appropriately?
The lighting and or camera was set up correctly and it was on time so we could start.
At the time we said we're going to.
If that's 100% of the time, it's like, dude, you're making us money and here's how.
And I think that when people have the understanding of how what they do relates to how the company makes money,
It gives more meaning to what impact.
People are like, I wish I had more impact.
It's usually because they do it.
If you have a job in a company, you have an impact.
You probably just don't know what the impact is.
And explaining that to somebody, I think is a very big unlock, because they see the value that their role provides in the overall work.
Now, before you have this, because again, we're trying to replace ourselves here.
We have our little scorecard.
We have our KPIs.
Let's say you were the camera guy.
The next thing is we have to have some sort of test to graduate the person, which is can someone 80, as you get 100 of the result.
And the key learning that I had this is a belief that I had to have broken was that number one.
There are people who can do it.
No one's going to ever be able to do it as well as you.
Not true.
No one's going to be able to do it as well as you, with one-tenth of the work, with one-tenth of the practice or reps, but every human is replaceable in my opinion.
And we know that because humans have replaced all humans since the beginning of time.
We can know that on a shorter time horizon, if they only learned all the things that you learned the right way, without learning all the bad mistakes, they might be able to get to 50 as good as you right off the bat.
If I can do it right with part of my time, someone else can do it better with all of their time.
So you might be able to do a 5 out of 10, which you consider to be 100, because it's one-tenth of your time.
But if someone spent all of their time doing they, for sure should be better than you over time with enough practice.
So the first one, big picture, is we get a big inventory.
We create the decision trees.
So we have a big list of stuff.
We slide in the people we have, what's left over.
We then have our scorecard that we can make for people.
We have our decision trees that they can decide up to with certain amounts of money.
And then we have a test at the end, which tells them whether they pass or not, are they good enough?
Okay, you can outwork anyone in your business.
You will not be able to outwork everyone.
And this is something that it took me too long to learn.
I mean, you can imagine me.
I pride myself on my work ethic.
But I cannot work everyone.
And so the longer it took me to realize that, the longer it limited my ability to grow.
I can do a mountain of work, but I can't do Mount Everest.
That requires more hands and more shovels.
So you want to start trading doing for managing and leading.
So here's the simple math behind this.
There's actual math here.
Which is, let's say, you swap 200 hours a month, so roughly 50 hours a week of work, for doing 20 hours of managing.
So now you go from 50 to 5.
So you have a 10x improvement in leverage.
And you replace yourself, again, by hiring a manager the next time.
And then you trade the 4 hours for 1 hour.
This is basically how leverage occurs through labor.
Is that you... have to turn your effort into an organization that produces without you, right?
And so employees or AI in the future, right?
Make a fully functioning enterprise that can continue to scale.
And that's kind of my litmus test is the baseline is does it burn down without me?
For many of you, if you just get to here, you'd love your business 10 times more.
Like I can actually leave for a month and come back and it didn't burn down, thank God, right?
But where it gets really nasty and really exciting is where you can leave for a month and when you come back it's in a better position than it was when you left.
That is a business that people want to buy because what it functions as is essentially a faster growing annuity for an investor which gives them a big multiple, which is why they pay lots of money for it.
So let's walk through what this actually looks like.
So the first, there's kind of three steps to it.
So you'll shadow train.
So this is where they watch you do it.
The next is you supervise them doing it.
So they do it in front of you.
So you do it in front of them.
They do it in front of you.
And then after that you kind of just support their independence and you're available, but not involved.
So it's like, I'm fully available.
You can hit me up whenever you need anything.
And then what happens is in the beginning they require a little bit more ad hoc calls consults, help.
And then over time, if you have a competent employee, those decisions get automated back down to them right.
And so that's when the full handoff occurs is that they own it completely.
And again, initially I'm cool with 80, sometimes 60 as good, as long as I have a clear path to them getting better.
And I'll give you a little pro tip.
I...
I used to measure employees by how well they started.
I measure employees today on how fast they improve.
Because if you look at two employees, let's say somebody starts here and someone starts here.
If this person's flat and this person's like this, I know that in three months, six months, this guy's going to pass this guy.
But then what happens in another six months?
And so sometimes it's worth taking someone who's a little bit less experienced or has fewer inherent skills, because they didn't have as much time, because they're able to learn faster.
And so intelligence, I measure as rate of learning.
And so I will rather have a more intelligent employee who learns faster than a more experienced employee who learns slower.
Just something that I've learned.
And it depends on the role, obviously.
But I would say that I've had a big shift in terms of how I think about talent.
Now the goal here is that we want to move from doing the work this is the big picture I point to move from doing the work to managing people right.
We focus on recruiting A players, not doing A player work.
We focus on the business, aka strategy prioritization, not on the tactics of what we need to do next or what we need to do today.
And so your job becomes attracting talent and aligning incentives.
And so the ultimate test for you is can you take Three months off.
And have the business grow anyways.
Like this is the easiest.
Especially for those of you who are brick and mortar.
This is super important.
If you're brick and mortar.
A lot of you guys want to get my second location.
Want to get your third location.
This is the simplest litmus test.
If you can leave it alone.
Like your phone doesn't.
Like your phone doesn't ring.
And I'll tell you how to do that in a second.
I call it the phone test.
I'll tell you later.
But three months later.
It's bigger.
Great.
It's the same thing.
We have to figure out a way to get it to be able to grow.
Unless you're in a super cap market where there's no way it can grow, fine.
But the vast majority of businesses can improve, can grow year over year over year if you have a good business.
And if it's flat, the thing is that you still have some sort of magic over here.
As soon as the eye of Sauron moves, sometimes if it's flat, it's going to go down.
Now, all of a sudden, you've got double the liability, double the debt, double the overhead, half the talent, because it's spread.
And now you have more risk and less profit.
No bueno.
So this is why it's so important.
You're like, man, that's never going to happen.
It's like right.
That's why a lot of people shouldn't have second locations for much longer than they think.
That's why overexpansion is one of the number one reasons people got out of business.
Zooming out, I want to, so you're like, okay, how do I find these types of A players, right?
Is we want to look for people who describe their role in metrics in as much detail as humanly possible, right.
So I can measure someone's skill in any endeavor based on the quality and the quantitative metrics they track.
So if I said, and I'll tell you the first time, like a great example of this.
So the first time I hired a really good HR professional and I've had plenty of them in my history, but the first time I hired a good one.
She asked me questions on the interview.
She was like, so what's your cost of acquiring talent?
And I was like, I don't know.
That's a good question.
I should know that.
She was like, what's your time to fill?
And I was like, wow, I didn't really think about it.
She's like okay, what's your two-way fit?
In terms of what percentage of 90 days later do both the employee and the manager say that it's a 10 out of 10 fit.
And I was like, don't know.
And so she starts giving me all these different metrics for the talent side of the business that I had no idea about.
I was kind of in the internet marketer world of oh, if I have a low refund rate, therefore my product is good.
It's kind of like I had that on the talent side where I was like oh, which?
By the way, that is not how you know you have a good product, just FYI.
I was on the talent equivalent of that of like.
Well, you know.
I mean, we haven't had any lawsuits lately.
It's like, duh, you think?
That's probably not a good way to know if you have a good culture or a good team or a good talent management process.
And so again, the quality and quantity of metrics.
Now, this particular HR professional was a leader in turnarounds.
And so she knew all these different metrics.
And then obviously I learned all those things from her and then discarded her, I'm kidding.
But I learned those skills so I could apply them.
And fundamentally I try to find people who can teach me things, because that's like the best thing in the world.
It's like you pay someone and say, hey, you know way more than me.
Go do that in here.
When you're starting out though, it's hard to afford those people, because those people don't want to work for you or you can't afford them, or both.
Now, I'll give you a couple rules of thumb that also took me too long to figure out.
Is that, number one, I would interview more people than you think you should.
And I know how costly this is as a business owner.
So you want to stack as many as you can.
Also, I highly encourage group interviews.
Pretty high up.
Once you get into director and executive, it's tough.
But like anything that's like frontline to maybe even manager, you can have group interviews because it'll save you time and you'll very quickly be able to read people's vibes.
And so the idea here is that, I'll tell you a story.
For school, Sam interviewed 600 developers.
600. developers to find our co-founder, Daniel, the CTO.
600.
So think about one, two, three, four, five.
Okay, so that's just me naming numbers.
That felt like it took a long time.
Now imagine each of those represented a 30 to 60 minute conversation.
And then imagine that's over a year of those conversations.
It is brutal.
But When you do that, what happens is you start to get a lot of nuance of who's good and who's not.
When you talk to 10 people who say that they are a manager, a sales manager, you're gonna get a way better idea than when you talk to one of who's actually legit.
When you talk to your 50th person, you already know who's got game.
And so what happens is it starts to tune your picker.
Because fundamentally, the reason I think we've been able to grow businesses faster and faster with each next company that we start is because pattern recognition becomes one of your biggest assets.
So like some people call this wisdom or whatever you want to call it.
But fundamentally, it's just that I've had a good sales manager.
They look like this.
You look like that person.
Therefore, you have a higher likelihood of working out in this role.
But to figure out which sales manager was good, I had to hire five different sales managers and waste six months or a year on each one of these before I finally found somebody who was good.
So that's the thing is that if you look at every role in the business, and again, this goes from the ground up, So a frontline support rep, a frontline sales rep, a frontline media editor, whatever.
And then all of a sudden, it's like, okay, this starts to work.
And then your business starts to grow.
And then you're like, I've never hired my first level of management.
So you got to figure out what a good sales manager, a good media manager, a good, all these roles.
And then after that, you're like, okay, well, that starts to grow.
Now I've got my director level.
And so, each of these levels, you keep putting these people in until eventually you know what it looks like when it's right across an entire org.
And so what happens is, when you start really building businesses, you're not actually building the business.
It feels much more like assembling the people who then built the business, which leads us naturally into what do you do to remove key man risk?
And I'll give you one more little tip.
When you're doing all those interviews, if you aren't learning from the person, especially if it's in a leadership role or above waste of time.
If you're not learning from them, then it means that you're going to have to teach them, which means that not only does this person like, it means that you're going to have a increase like your life's going to get worse before it gets better, which sometimes it's required.
But at a leadership role and above, that person should be teaching you, And so there's no point in you trying to go in and train them.
They should be like, this is what we need to do for our financial function.
You're like, great, love that for us.
Go do that.
Okay, brings to the next point, which is you want to remove yourself from marketing.
Now, marketing is a larger term, but fundamentally it's acquisition, right?
If the business relies on you to get customers, which is very common in founder-led companies like, you're the breadwinner, you're the promoter, you're the one who brings the business in.
This is one of the biggest risk factors in business, because this is why you can't leave.
And when you do leave, the revenue goes down.
And it's very scary because everything relies on you.
And what's tough is that it feels good in the short term to have everyone rely on you.
It feeds your ego.
It makes you feel important because you're like, I'm irreplaceable.
I'm a special snowflake.
I am a unique human being with unique skills.
And therefore, I am important.
But the idea is that you actually, in order to make an important business, you need to become less important.
If you want to help more people, you can't help more people.
And so for me, obviously like I've had plenty of businesses that were face-driven but if your face gets the customers, you are the key man.
And so this is kind of the simple way of kind of getting out of this.
Well, easier said than done, but fundamentally, this is what we do.
There are seven different ways that you can install systems into the business to capture media and marketing on your behalf without it having quote.
Direct-to-camera founder-led ads okay.
So I'll give you a couple of them.
So one of them is that you probably have some sort of place where customers gather, right?
Maybe it's an online community like a school or whatever.
In those communities.
You should have a standard process weekly where you screenshot people saying nice things about you.
Then all of a sudden, all those screenshots become ads that get pushed to you every single week.
The next thing is having incentives for customers to leave testimonials.
So you can have things that are unlockables.
You can have a certain amount of credit.
You can have tiers of service you can give them trials to, which, by the way, is a double whammy.
So you give someone a trial of a higher level of service if they provide a testimonial.
It allows you to ascend customers who love your stuff and get more marketing.
Bingo, bingo.
The next one is something I call lifecycle ads, which basically you probably already have functions in the business that already occur, which is you probably record your sales calls.
Hopefully you record your onboarding calls for you know a new customer.
You record delivery checkpoints.
And maybe if they have a good experience, you would record some sort of testimonial from them.
Great.
Now the thing is, is that means that all of this stuff already exists within your business.
And so when you have a testimonial and someone says I did, these guys are great, you just say cool.
We're going to look back through our CRM, look back through our scheduling and pull the recordings from their sales call to their onboarding, to each of their touch points.
And then what happens?
You can compress that into a timeline that also becomes another advertisement.
Pretty sweet.
Because, instead of saying I was here and now I'm here, show them here of them actually being scared, being not sure, hesitating before signing up and then, all of a sudden, getting this amazing outcome.
The next thing you probably already do is you have some sort of key moments of client deliverable, whether that's like you do a ribbon cutting or you do a reveal of their new kitchen or they get on the scale if they're losing weight or there's obviously with businesses there's revenue or there's monthly financials wherever there's always moments where something can happen that is has emotive right emotive as in emotional and so what we want to do is just put a process in place where we can incentivize the person document that moment to then create more clout or for us and so hopefully you're getting an idea here like Another process you can put in place is that your customer support, if you have a customer support line, is that you can pay a customer support person five bucks for every person that they get like a mini testimonial in chat format from, right?
You resolve something.
Oh my God, these guys are amazing.
I love this product.
It's fantastic.
I highly recommend it to anybody.
Great.
Screenshot that, right?
And I'll give you five bucks for every one of them you do.
I'll give you another one.
You guys get like, I have done this before.
I'll give you another one.
All of you guys have Google reviews, Yelp reviews, Trust Advisor reviews, amazon reviews it depends on where your product sits but, like you probably have some place where people have reviewed you right and think here's what's crazy.
You probably have hundreds not like one or two, probably hundreds of like local businesses have a few hundred reviews.
It's not like uncommon to have this.
What's crazy is that those reviews rarely get made into marketing.
Why?
Now here's an even crazier one.
You can take the hilarious one stars and take a page out of um Liquid Deaths marketing book and just say like hey, if you were one of these people, you won't like our stuff.
And if it clearly casts out the wrong type of person, it will pull in the right type.
And it's also hilarious marketing.
And so I think I just gave you six or seven different processes that you can install in a business that all get ads and marketing to come to you.
If you wanted to go even further, you could build an affiliate program out.
You could use TikTok shop and sell widget and then whitelist those ads in the modern era and use those as your marketing right.
All of these are things that you can do to remove your face from your market.
All right.
Now, competition.
I'll skip that one.
Okay.
So the next thing that we think through is stress testing this.
And so if we're zooming all the way out, we put our big list together.
We red, yellow, greened it.
We then created a decision tree.
We created a box around how much money they're able to have, make decisions on.
We have our scorecard.
We test them to make sure that they actually pass the KPI.
That's step one.
The step after that that we did is okay.
Well, now we need to increase the amount of people in the business for all those reds.
So we have to interview more people.
We have to look for people who have higher skills.
We have to be willing to get taught by these people, which is, by the way, the cheapest learning you can do is get people who are way out of your league to teach you about the role, and you learn a ton in the process of also finding great talent.
Ask those people what they do turns into revenue for the business.
And then finally, actually take your 90 days off and something will break.
But you continue this process until eventually nothing breaks.
And then once nothing breaks, you actually have a business that can run without you.
All right.
So, with that being said, how would I go about whether you're in a credibility-based business?
How would you go about building authority fast enough to win bigger clients?
Okay.
That sounds like a random question.
Okay.
Fiction authors.
Where are we going?
What are we talking about here?
We're talking about key man.
The reason that your business one isn't as big as you want, two isn't as valuable as you want and number three doesn't run without you is because you're not as good as you think you are.
Now, I know that sometimes hurts people's ear balls, but let me explain.
At the simplest level business really is.
Take the absolute best people in the world and get them to work for you.
So some of you guys have probably heard of John Ivey, right?
John Ivey was like one of the best designers.
He worked hand in hand with Jobs, but John Ivey was an employee, all right?
And I bring this up to say if you had to design a new product, John Ivey would be the guy that you probably want to build and design it with you, right.
The problem is that John Ivey only wants to work for somebody as good as Steve Jobs.
The real leverage of why elon has been able to build the size companies he is is because he's elon, and so the best and smartest people in the world are willing to work for elon.
And so if you had the best and smartest people in the world truly working for you, then the business really would grow without you, because there's no real big businesses can have one person who's really involved everything it's just impossible right, and so you have to decentralize decision making to very smart people who are very capable.
The problem is that those people don't want to work for you, and so the real real is that, as much as I give you all these tactics about like, these are the things you have to do.
Here's your membership for marketing.
Here's how you switch from doing to managing, put a time study in place.
You know, here's you can stress, test the business.
Like I give you these steps right, but the real real is that like, you have to become someone who's capable, who's whose desire people would want to follow right, and that's going to be a combination of two things your experience and track record and your ability to sell the future.
Now typically, somebody who has an amazing ability to sell the future can outsell the fact that they don't have a crazy track record.
But track record is also relative.
So if you've built and scaled a billion dollar company and you say my next thing I want to do at 10 or 100 billion, a lot of people will believe that you can do it again, right.
But you can also generalize to traits and then get specific again on business.
So let me explain what that means.
So if you, let's say, you were valedictorian of your class and were president of three different things, that would just prove that you are generically ambitious, right?
And that you probably work hard and have some level of intelligence.
And so with that, that can still give you a semi-credible track record to.
I also want to start this new big thing.
And if you were good enough at selling the future of how big a thing you want to do, you could get some of that A-level talent.
But for us, mere mortals, which I consider most stuff to be quite immortal a-mortal, not e-mortal, to be clear.
Most of the time, you just got to have the proof before the pudding.
Right.
Or the proof is in the pudding.
Rather, we have to just show that we can do it.
And as soon as you do that, like the level of talent that I've been able to attract at acquisitioncom, compared to gym launch or prestige labs, is order of magnitudes.
And so I almost had to build gym launch to prove that I could, that I could build something of that size to then build something a hundred times as big.
So that is my real world actual.
And if you're like, wait, does that mean that it will take me time to develop a reputation?
Yeah. kind of how it works.
But when you do have a reputation, you start to gain significant leverage in many parts of the business, one of the biggest being talent.
