Bedros Keuilian Podcast Show - 034. How to Build a Profitable Business in 2023

Episode Date: May 23, 2023

In today's episode of The Bedros Keuilian Show, I’m pulling back the curtain on the types of businesses you could start today that have the potential to not only build wealth but also make a significant positive impact on the world. These are businesses that I have started or look for when investing. Whether you're just starting down the path of entrepreneurship or you’ve been down the path before this episode is loaded with nuggets. JOIN MY FREE 6-WEEK CHALLENGE: https://bedroskeuilian.com/challenge

When you're building a business, you might make a lot of revenue. But if you're not making any profit, you're working for free. Revenue feeds the ego. Profits feed the family. Welcome to the Bedros Koolian show. Lorenzo in a Benzo I was banging with a gang of instrumental. Hey friends, I'm Bedros Kulian, and this is the Bedroskulian show. Welcome to the show, because today we're going to talk about something really important that you guys have been bringing up.

I guess here we are now more than six months into the Bedros Cooling Show. And what I hear from you guys is, hey, what are the types of businesses I could start if I want to have financial freedom? If I want to make a lot of money, if I want to have impact and be able to maybe create my own financial outcome in life, right? Which is cool because the whole idea of the Bedros Cooling Show is to create sovereignty, freedom, free thinkers, get you physically, mentally, emotionally jacked, right? right, but there's also the financial jacked portion of it. And so we're going to talk about that today, guys. And I want to talk to you about my favorite types of businesses. Many of you know that I'm an entrepreneur.

If I had a zone of genius, if there was an area that I excelled at in life that was almost factory installed for me, it would be the ability to make money. I am good at seem trends, finding opportunities, connecting dots that create money. in exchange for value, right? What I wasn't good at was leadership. And, you know, if you've read my book, Man Up, you know that my downfall as a leader, I almost lost my franchise Fit Body Boot Camp, right?

And so that was really the beginning of the 2.0 version of myself as I started to build the better version of myself, the leader, the healed entrepreneur, the stoic entrepreneur, the more productive, disciplined, structured entrepreneur, and that really helped take all my businesses, seven of them in total, to a whole new level of success. And it's not of any other reason other than those traits that

I just listed off that my businesses have broken collectively the $100 million a year mark, but my ability to create money across many different industries is what I'm going to use today in this episode to really get. you some guidance on what types of businesses you could start that might fit your lifestyle, or if you have an idea and you're like, man, how would Pedroos coach me? Here's your chance to get some coaching from me in terms of that. So let's jump in. So before we really jump in, though, I really want to talk to you about this $126,000

lesson that I learned. And that lesson is this. There was a time that I borrowed in total, $126,000. from a mentor, Jim Franco. I've talked about Jim Franco before. You'll see his name mentioned in my book, Man Up. He was my rich dad, right? The father that brought me here to the United States,

my real dad is my poor dad. And when I say that, I say that with all the love and respect. Like I love my dad to pieces. He risked his life and brought us here. But he really didn't understand how money worked. He didn't understand the financial system. He didn't understand anything other than, trading his time for dollars. And so over time, about four or five years being here in the United

States, he was able to open up a tiny little tailor shop in Anaheim, California. And that led to him trading his time for dollars, working 12, 13 hour days as a tailor in his own store. Yes, he was his own boss, but he certainly, I wouldn't call him an entrepreneur. I would say he owned a job. And there's nothing wrong with that. Like if you're like, listen, man, I just want to be my own boss, I'm going to tell you some ideas of where you could own a job, have at least have the freedom to travel the world. My dad didn't have that freedom because he had to come and open up his little tailor shop and he had to be there for when people brought clothes in for him to alter and fix, right?

But at least if you're going to own a job, there are jobs that have higher profit margins that create a better lifestyle and allow you to travel and experience the world if that is what you want. But then remember, as I became a personal trainer and I was struggling as a personal trainer, one of my first personal training clients was this older gentleman named Jim Franco. And Jim Franco owned a company called Autolog. And Autolog created the software for these auto parts stores, right? So you go to like a Pet Boys or AutoZone and you might say, hey, look, I've got a, you know, 2010 Honda Accord and I need an oil filter for it. And they punch it up in that

software and that computer and they go, here's the part number you need. Jim Franco's company created the software and updates the software as new and more recent model year cars come out. So anyways, when Jim Frankel became a personal training client of mine, he began to mentor me, to coach me in the ways of being an entrepreneur. And I saw that there's really sky's the limit. And so he empowered me to start my own gym, my own personal training studio. And that led to me creating the software ultimately called high tech trainer. High tech trainer at the time, before there was these good old, you know, I guess phones like iPhones and

and asteroids and all that, there was Palm pilots, if you remember. And Palm pilots were, I guess, a little organizer that you carried. It was digital. You can, you know, check your emails on. You could connect to the internet in a very archaic way. You could even schedule and keep track of your calendar, right? But when the iPhones came out, they completely changed. the landscape and Palm Pilots and PDAs is what they were called.

Personal digital organizers, I think, is what they were called. Anyway, oh, PDAs, personal digital assistance. They just went away. But high-tech trainer was meant to be a software that lived on a Palm Pilot that we would have in gyms all over the country, big box gyms, and you would pay an extra fee to a gym, and you would check out your Palm Pilot, and it had your high-tech trainer workout on it, right?

So instead of working with a personal trainer that costs a lot of money, if you couldn't afford a personal trainer, that gym would sell you, let's say for another $99 more per month, they would sell you that service where you could check out your Palm Pilot and walk around the gym and do your program right then and there. So before apps and all that, like I had created an online workout platform and I didn't even know it, right, called high tech trainer. The big lesson here for you is that two big lessons. I started to borrow, you know, 20,000 from Jim Franco, and then that led to another 20 grand and then another 25,000. Before you know, it added up. And over about a three-year period, I had borrowed $126,000. And I had yet to have a finished product.

And one day, Jim Franco came to me and he said, hey, kid, I need to see you in my office. Now, he had this big, giant office, very similar to what I have today. In fact, I realized sometimes I modeled my life after Jim Franco's. I look up to him so much. But he came to me because I had this little cubicle in the back corner of one of his, the older side of his office. And I would work out of that one cubicle, like a little rented mule. And while I was designing and creating, I wasn't selling.

And so high tech trainer kept accumulating debt. And one day he comes to me and he says, hey, when you reach a stopping point, come talk to me in my office. And I did. And right then and there is when he said, hey, you need to, we need to have a come to Jesus conversation. I said, what is that about? He goes, you need to figure out how you're going to pay me my $126,000 because I'm done loaning you money. Now you've got to start selling and producing money, right? And that's when I realize that I can create and create and create all day long. But unless I launch and start marketing and selling, I'm never going to get this product off the ground.

And unfortunately, little did I know that just around the corner, right, about three years out was going to be the launch of the iPhone back in 2007. The iPhone was going to launch and it was going to completely destroy this business model of workouts on a Palm Pilot, on a PDA. And so that was a very expensive lesson. And sadly, high-tech trainer never really launched fully because of the PDA is going away. we turned it into an online personal training software where you could kind of email yourself workouts and watch downloadable workouts or workout demonstration videos and then go do them in the gym. And while it made like 20 grand a month, by the time I paid myself a little bit of money, gave Jim Franco money every month to cover that $126,000 debt and then paid the programmers that I had,

it wasn't even worth running it. So once I paid off Jim Franco, I decided to just shut her down and actually told my business partners, the other business partners, I said, hey, buy me out for whatever you think is fair. I'm just burnt out from this and done. So the big lesson for you there is to not borrow money and start using other people's money to create, create, create, and never launch because they might just have a come to Jesus conversation with you like Jim Franco had with me. And I'd never even heard that term, the come to Jesus conversation. And when he had that conversation with me, reality hit that there is no more asking Jim Franco for money.

From this point forward, if I'm going to pay programmers, I need to sell the product and produce money to be able to live off of, to be able to pay my programmers, et cetera, right? So there's a big lesson for you. Like, find a way to sell your product early on. And if you can't, then find a way to incentivize your programmers to take some kind of equity and work for free in exchange for back end money so that you don't put yourself in massive debt like I did, which really caused a lot of stress. anxiety for many years and might come up gears, right? So with that said, let's jump into the types of business that I like and that you might actually want to start. So I'm going to break it down into three categories. Products like product industry, manufacturing industry and service industry. So let's get started with the product industry first. And the product industry is,

is pretty cool because, you know, for example, T-shirts, right? Like Fuel Hunt. Fuel Hunt makes T-shirts, makes apparel, makes hats, makes fightwear, and high quality stuff, but got to have all the different sizes, all the different colors, all the different skews, all the different designs. And so when you're in the product industry, you're in a business where you constantly have to create new designs and new products in order to get those customers to buy again. Nothing wrong with the product industry, just letting you know whether it's hats, shoes, apparel, bottles, it doesn't matter, gloves, right? The product industry means you have to produce or purchase stuff first.

So you're putting money out first, purchasing it, putting it on a shelf. And then you are selling it for a profit. And I'll give you another great example, Trulene Supplements. My supplement company, great supplement brand, right? However, when we manufacture supplements, we don't just buy one bottle at a time, we might buy several thousand bottles of one flavor of protein, right? So if we've got Dutch chocolate, we've got vanilla, we've got strawberry. Well, we might buy several thousands of each, and it goes to our fulfillment warehouse and it stays on a shelf and then we start selling it. But remember, we put that money out to the manufacturer who made it for us following our ingredient model, right?

We bought the containers, the labels. We packaged it all up. It got shipped to our warehouse. And now, after we put all that money out, we were able to sell the product online for a profit. And so understand that when you're in the product industry, you have to have a lot of capital, a lot of money because you are parking a lot of money on shelves and then selling that product for a profit, at which point you can start reusing that money to invest. in more product and of course to invest in your lifestyle as well. So that's thing one. Product industry, right? Then there's manufacturing. So let's say you might manufacture. I wrote swords or axes, right? You know, at the project we give away all the graduates get a,

get a project class number on it burnt into the handle. And on the other side, it says the project, like somebody manufactured that specific thing, right? So if you're making things, if you're manufacturing this table here. If you're manufacturing a microphone, you're in a process of an assembly line where you're building things out. You're manufacturing cars, right? Like Ford, GM, Dodge, they manufacture vehicles. The dealerships sell a product, right? So when Ford manufactures a vehicle, they're in the manufacturing industry. They take parts and pieces that they buy from everywhere, put it together, create a car or a truck, and then they sell those trucks and cars to a dealership, and the dealership sees that car truck as a product.

So you see how something can go from a manufacturing to a product very quickly, right? Manufacturing means you have to now get equipment. You have to have big giant warehouse floor space. Like your footprint has to be big enough to manufacture. Like right now, Trulene is not big enough. it's an eight-figure company, it's not big enough for us to do our own manufacturing for me to start like a manufacturing plant and create our own greens and wellness and and protein powders from scratch, right? So right now we go to a manufacturing plant and we go,

hey, here's our recipe. Here's how you're going to create it from scratch. And so let's say three days out of the week, they are making protein and greens and wellness shots for trulein, but then the next two days they might make it for a smaller supplement company, then the next four days they might make it for a bigger supplement company. The bottom line is they are manufacturers. They have machines and equipment. They buy stuff by the tons. And by the time it gets to us, it becomes a product for us to sell.

So understand that manufacturing is very labor intensive and requires even more financial capital than a product business. And finally, there is. the service industry. The service industry is pretty cool because, now keep in mind, all of these also come with different benefits, the product industry, for example, whether it's fuel hunt or truleen or a company that sells water bottles like hydroflask, right, let's say, remember, as these companies get big enough, there's private equity out there and there's competitors out there that might want to buy them out, right? And so if you're in the, you're of the mindset that, hey,

I might want to one day sell my business, then guess what? You could sell a product, like brand that way. You've got to get big enough and you can sell your product for a multiple of whatever, 5x, 7x, 10x. I'm also an investor in a software company. That software is actually being shopped around right now. And we're likely to get anywhere from 12 to 15X, the EBITDA, basically the quarterly profits.

You add them up and make them into any. The annual profits, the annual profits, imagine getting 15x that when you go to sell, right? So the cool thing about a product or about a manufacturing plant is you could sell to a bigger conglomerant who wants to buy you as you get bigger, right? Now services, you can do the same thing with services, but not all the time. And so let's talk about that. There are services, for example, that are one-off services, my coaching service. I have a business coaching and consulting service, right?

The 12-month domination year. Someone pays me $100,000. They get two half-day sessions with me, one on month number one, on month number six. We do our monthly phone coaching calls, et cetera. And I help them scale their business even bigger. That coaching business, no matter how profitable and big it gets, I'm trading time for dollars.

That's thing number one. Thing number two is it's me dependent. I have to be running it, and therefore I can't sell it. So coaching shows up in a lot of ways. Maybe you do marriage coaching, business coaching. Maybe you do fitness coaching, nutrition coaching, mindset coaching. You might do high performance coaching, right? Like psychological coaching, helping people get over their shit.

Whatever it is that you do, that's a service. It's a coaching business. Now, can you scale a coaching business? Absolutely. I also have a coaching business. It's a fitness coaching business that I run with my business partner and he's a project graduate. His name is Byron.

The program is called. Battle ready. It's a 90-day fitness and fat loss program for men who want to get lean jacked and battle ready. Like the battle for life, right? The battle for life. The battle for becoming your best self. Now, with that, Byron has the leadership position in it and he's got a couple of salespeople under him and he's got some coaches under him. And the more customers and clients we get into battle ready, the more coaches we can scale that can deliver the service. So not all coaching businesses are personality dependent. Like the one that I told you about were, you know, you're paying me $100 grand. Could you imagine paying $100 grand to work with me for a year?

And then I go, hey, you're going to work with my assistant. Are you going to work with this right-hand person? Or you're going to work with that person? You'd be like, wait a minute, man, I just paid all this money to Beidros to work with him. Why can't I work with him? And so those businesses aren't necessarily sellable. But businesses like, let's say battle ready are. So I don't know if you follow any of my,

coaching clients, but for example, Rachel Shear, she's a coaching client. She has, she does gut health, right? So if you got leaky gut issues, if you've got like distension, if you can't digest her food well, you're foggy headed, whatever, and it's a byproduct of your gut, well, guess what? She's a registered dietitian and she is a nutrition coach and she has five or six other coaches under her. She's the face of the brand. You come on board and you pay a next dollar amount to work with her coaches, and her coaches will get you the result. But she's the face of it. Like that is scalable, right?

We took her from $9,000 a month when she was a one person show, right, trading time for dollars to now multiple six figures a month in revenue for her because she's got five other coaches under her. She's got two salespeople under her. And then she's also got a director of operations, Mike, who oversees the operations, allowing Rachel, the way I coached her was, so that she can be the face of the business. And so I've got many clients like that. So make no mistake about it, that a service business can be scalable, but it requires you having a team under you, right?

Another type of service business is franchising, right? I also own Fit Body Boot Camp, right? We have hundreds of locations all over the world. They're about three to four thousand square foot locations. You go in there, you get an awesome 30-minute workout, functional workouts designed to burn fat, build muscle in 30 minutes. group coaching program. Awesome program. It's definitely a service, but it's a franchise. Every location is independently owned and operated. What I do as the franchisor is I sell the franchisee, the concept. We go, hey, here's a proven concept. And we're going to coach you and tell you

exactly where to find a location, how to sign the lease, how to negotiate that lease, how to build out your location, how to open, how to hire your coaches, how to hire staff, how to price it, etc, all of it. How to do the marketing and we also help you do the marketing. That's the beautiful thing about a franchise. Doesn't matter if it's a subway sandwich franchise or Jersey mics or a jiffy lube. Could be a yogurt franchise, a fitness franchise like FitBody Boot Camp. It's a, you're selling a system.

And therefore, that location is independently owned and operated, but that location is paying me, the franchisor, a monthly royalty fee because of the systems and the support. and the processes we're giving them, right? They don't have to do the guesswork. They don't have to problem solve. They don't have to figure things out because the franchise system has already figured that out. We've already figured that out

and we coach them through it, right? So very similar to Rachel Shear's business of coaching and having coaches like upstairs at our headquarters for FitBody Boot Camp. We've got from sales reps to a whole bunch of coaches to help our new owners find a location, build it out, open up, sign a lease, hire trainers. everything you need to do to get successful.

That is a sellable business. The business that Rachel has, for example, even though it's scaled, so think about that, it's Rachel and she's got coaches under her and she scaled it. Is that really sellable? Probably not because it's dependent on Rachel's personality. Like you're buying into that business model because you saw Rachel on a podcast, you heard her on a stage, you follow her on social media. you watch her YouTube show and you're like, you know what?

I want to work with this person. Like she seems to have the solution to my health issues. So I'm going to reach out. And so you reach out, you talk to one of her team members. They go, hey, we can help you. Rachel's created a process. We're going to give you one of her coaches. Now, if you want to work with Rachel, you can.

It costs you like $4,000 or $5,000 more for the same program. Right? So but if you're like, hey, I really want to work with Rachel and that's it. You can. But she's got coaches. And that makes it more affordable to work with those coaches. And she can scale that way. And as she goes to, let's say, seven figures a month, right?

Let's say she starts doing a million dollars a month. She might have 15, 20 coaches under her. But is that business sellable? Well, probably maybe yes, maybe no. But it's going to be harder to sell because it is dependent on Rachel's personality. If the face of that brand goes away, can it still be sustained? That's questionable. Probably not, right?

So understand as you're building a business, you also have to start looking at it, whether it's a product, manufacturing, or service. Is this going to be sellable? Am I going to want to sell it in the future? If I don't want to sell it, what's my plan? Do I have someone in line to secede me? Do I have a family member I could pass it down to? Do you have my kids that can pass it down to? Do my kids even want to run it?

Right. And if they don't, then what do I do? So my theory is always this. build businesses so that you can sell, ideally, but if you can't sell it, then they better at least be a very high-profiting business so that if and when you're done doing that, you can step away from it and not feel any loss from it because you made so many years of such great income and it really helped you leverage yourself. And I'll give you a great example. And I, you know, Rachel wouldn't mind me sharing this. And actually, I'll give you an example of another

coaching client. Her name is Ashley. Ashley owns a one, two, three, four, four, five locations, Ashley Lucas, she owns five locations of PhD weight loss, high-end weight loss services, right? And her whole thing was, I got this five locations, but now I want to also create an online, PhD online, where I could help people all over the world. They don't just have to be in one of the five cities that were located in. And so we helped her scale that. I mean, let's just say she's doing really well. Pretty much hitting about just over a million dollars a month is where she is in revenue and she's going to continue to scale. Like she's just getting started and we're, it's, it's, it's a blast working with her.

But her business model, very similar to Rachel's, except she's not the face of it, meaning she's the CEO. She's the visionary. She's the leader. But the advertising happens through radio and TV personalities, right? The way she's marketing is very different. The way I've got her marketing is through radio personalities that talk about. about the service because they use the service,

they lost the weight, they feel better. And so they go, hey, go to PhD weight loss, right? Or if you can't find one locally, go to PhD weight loss online, and you can work with them remotely for weight loss. Now, because there's no personality, Ashley's face isn't attached to it. In some ways it is.

She has a podcast and she has a YouTube channel, but she's not so attached to it where all of the leads and all of the traffic, all of the marketing leads, are attached to her. Because of that, that business is way more sellable than Rachel's. But, but does that mean that Rachel's doing something wrong? Absolutely not. Does that mean I'm doing something wrong with my domination year coaching program? That's not even scalable. It's just me, right? Trading time for dollars? No, because I get to work with 49 private coaching clients who I really

love, adore and can really focus on their business. And that gets me off. But I also have other business that are scalable and they're automated. So now let's talk about that as they get a little sip of the old wellness shot here. So now that we know you can break businesses down into businesses that you can sell and businesses that you might want to hold on to and businesses that are product based, manufacturing based and of course service based, let's talk about scaling factors, right? What are the things that you can do to scale a business? Well, number one, got to ask yourself, can I delegate this? So going back to Rachel Shear, can she delegate some of the services?

Yeah, she can delegate the marketing. She can delegate the sales. She can delegate the coaching services. So if you can delegate, then you can grow, right? And this is why, for example, we have several Fit Body Boot Camp owners that own multiple locations. They own multiple Fit Body Boot Camp locations because they can delegate. That franchisee bought a location from us.

and first operated as a owner operator. Then they bought another location from us in another territory. And now they got a second location, third location, fourth location. Like my friend Ben Jones has eight locations throughout Arizona. He has eight Fit Body Boot Camp locations. He is delegating and scaling by putting a facility manager in every Fit Body Boot Camp that he opens, right? That facility manager obviously manages that location and does the sales. There's also an assistant work in the front desk.

And then there are coaches who run the Fit Body Boot Camp classes. Of course, we call them sessions and not classes. But they're group sessions where one to two coaches will run a group of 20, 30, 40, 50 clients through an awesome 30 minute workout that's functional, that's fat burning. And it's like, it's scalable, right? So that is very important is can I delegate? That is delegation is a scale factor. What else is a scale factor? Can I automate a process, right?

If you can automate a process, that allows you to scale. If you can, for example, go from narrow to wide. In other words, narrow means, all right, let's say this is a coaching program just for men. Here's a great example. The project. I run the project. It is a coaching program for men who are high speed, who feel like there's a greater sense of purpose waiting for them on the other side of their limiting beliefs that they need to break through.

Like that is a very specific type of man I'm looking for. The dude who's suffering in silence, white knuckling through life, has greater purpose. And he knows it, but he knows it's on the other side of getting over his limiting beliefs. And limiting belief could be a byproduct of trauma. It could be a limiting belief of a story he told himself. It could be a limiting belief of just like, hey, like me, he came from a foreign country. And so he believes that as an immigrant, I'm supposed to be broke and not necessarily,

but he still feels that gnawing in him. That is a very narrow market. Now, can I scale that to a wider audience? Possibly. Like if I wanted to work with more types of people, I might be able to change the messaging and say, hey, this is for all men, right? All men. Doesn't matter if you're an entrepreneur.

It doesn't matter if you have a job. This is for all men. I could even go wider. I might say, hey, this is for men and women, right? But I also know that the quality of the service and the outcome, the results that it would deliver would diminish if I went wider on that market space. So I keep the project clientele very narrow. I go very narrow and deep.

But there are some industries that you ask yourself, hey, can I go wide as in, you know, both genders, now maybe even all 19 genders, right? Number one, number two, can I have different age groups that I could sell to? That's another wide. Do I have different ways of marketing? That's another way of going wide. So think about that as you're starting a business. Can I go wide in terms of my reach?

And if so, then you got yourself another opportunity there to scale. Also, can it be delivered in a group environment instead of one-on-one, right? Great example of scaling. You can have a gym that does one-on-one personal training, but the cost of your overhead cost is going to be through the roof. It's going to be super expensive, right? because you're paying all these individual personal trainers to run one-on-one personal training sessions, which means your payroll is going to be through the roof.

Whereas FitBody Boot Camp is scalable because it's one-on-many. We do it in a group environment. One trainer to 15 clients, two trainers to 30 clients, three trainers, or coaches, as we call them, to 45 clients. And you see how it becomes scalable, right? And so you have to ask yourself, can it be done in a group, right? And another scale factor then is, can it be sold through? affiliates, can it be sold by others?

In other words, if it can be sold through affiliates by others, through referral marketing, a great example of that is anything that's multi-level marketing. Now I have a resistance to multi-level marketing. That doesn't mean that that's what you should also feel. I just don't like multi-level marketing because it ain't my thing. I've had a few bad experiences with it and I'm not interested in going to my brother and my cousin and my sister and my uncle and saying, hey, you ought to do this. And if you buy this product and you're under me and then you keep selling it, then I get

to make more money and you get to make more money than you get more people under you and they get to make that ain't me that ain't me right but that is a true scalable business model affiliates multi-level marketing where you can use others to get more people into your business so that's a scale factor now let's talk about profit maximizers because I want you to understand something here when you're building a business you might make a lot of revenue but if you're not making any profit, you're working for free. Revenue feeds the ego. Profits feed the family. Never forget that. What I mean by that is, I know a guy that had a business that did a $140 million a year in sales, but his personal income was about $120,000 a year. The business was doing $140 million a year in

sales, but his personal income was under $150,000. And the reason for that, was, was his cost of goods were high, his operational costs were high, his marketing costs were high, his payroll was high, his liability insurance was high. There was so much expense eating away that revenue that there was no profits left at the end of the month. And therefore, he could have gone and gotten himself a sales job and made more money doing sales than he was running a $140 million company, right? So understand that profitability is the reason we become entrepreneurs so that we can control the amount of money we get to take home and live off of and do good things with and give our family experiences with, right? So here are some profit maximizers for you. Think about this.

You might ask yourself, can this product have levels to it, right? So another coaching client of mine, Tony Stephan, he had a certification program and he had a level one certification. And I was like, dude, let's create a level two certification where you teach them this other stuff and there's some in person, a day of in person working with you, right? Like a class. Like you run a class five times a year for level two. So they have to buy level one, use the product, get certified, go through it. And then to go to level two, they have to pay another $1,500. Right. So, just by adding a level two or even a level three. Now, obviously, you can't go to a million levels,

but the point is you can go to level two or three easily by adding more value and therefore charging that customer more, right? So can you add levels to the program, right? And usually the levels are, can you make them better at what they do? Can you make the process easier? Can you make them more profitable? Can you get them better results? Like all the level twos, does the level two have better status?

Maybe it's limited in quantities, right? And so when you think about that, something that you are going to buy that has a higher value proposition might have a limitation to it. A level two might, so like a car manufacturer might make, hey, we're going to make 10,000 of these trucks this year. But only 500 of them are going to have the supercharger on it and these specific wheels. Now, for an additional 15 grand, you can buy any one of those thousand or 500 trucks because it's a level two. It's a higher version and it's limited in quantities, right? So understand that.

Number two, can it be reoccurring another profit maximizer? Can you create subscription or reoccurring monthly fee? I mean, you've seen Amazon do this, right? You go to buy a product. It's like, hey, do you want to subscribe and save 10% every month? and every month we'll send you a new bottle, new box, new thing, right? So understand subscription works. Netflix, Amazon Prime, that's all subscription.

Like, think of all the things that you're subscribed to. What can you do or create that you can, or what can you add on to your existing product or service that you have? And you're like, I don't know, Badros, my product can't have subscription. Let me tell you, there's a lot of apparel companies that I know of that have the box of the month club, right? So Fuel Hunt is exploring that right now. Like, hey, maybe we want to.

to have a box of the month club. And if so, every month we send a unique design that is limited to the people of the box of the month club. And then also every month, they get a special discount code that gets them a discount off the new drops for that month or for that quarter, right? Like, you can have subscription like that. Trueling, my supplement company, we did this about a year ago. We started subscription by bundling our best products that people used together. So, you know, I told you guys that I used the wellness shot and the greens every day, twice a day, right? So we bundled that up. We started with that product.

And we bundled that up and we said, hey, look, if you're going to buy that product anyway, each and every month, a box of wellness shots and a container of the greens, you might as well buy the bundle, save 25% every month. And you'll be on our Truling Club subscription program where every month we will send you another box of each. It's a no-brainer. So it becomes convenient for them and they get a discount and it becomes predictable revenue for us and therefore it increases our profit margins because now when we go to order more product from the manufacturer, we can knowingly order more because we know that we have several thousands of people on our subscription program, right? So that creates certainty in our business every month that we have regular income

schedule to come in and that allows us to buy more in bulk which means we get a discount from the manufacturer so think about that and then of course can you sell it as a experience that's a profit maximizer if you can build your status your personal brand to a level where you can start selling an experience you can now charge more and therefore increase your profits i'll give you a great example. Great example. The BMW 7 series cost $160,000. The Rolls-Royce ghost cost about $500,000. You may or may not know this, but they are the same car. 75% of those two cars are the same. Rolls-Royce is owned by BMW now. And so the BMW 7 series that sells for $160,000, shares 70% of the same parts with the Rolls-Royce Ghost that sells for $500,000.

Imagine that. But what you're buying is the Rolls-Royce status. You're buying the Rolls-Royce brand. And therefore, you are paying a premium. And therefore, BMW headquarters makes a massive profit when you buy the Ghost versus the BMW. Right? When you buy the Rose-Royce versus the BMW 7 series. So you got to ask yourself, what can I do to build my personal brand?

We live in a time now where you can use YouTube, podcasting, social media platforms like this that I'm on right now, Instagram, Facebook, TikTok, to begin to build your personal brand to become a celebrity in an industry. And when you become the celebrity in an industry, you rise to the top and you could literally manufacture celebrity of yourself. Like make no mistake about it. It's not like we're walking celebrities. Like when I'm at a gym or a restaurant or I'm in an airport and someone spots me

notices me and hey, Bezos, what's up? What's going on? Oh my God. I can't like, not for a moment. Am I like, oh my God. I'm a fucking Brad Pitt or I'm a George Clooney. Like I realize I'm not a celebrity. I've manufactured celebrity using social media and platforms to be able to share

knowledge, share content at value. and as a byproduct of doing that, I've increased the worth of my time and being around me. And therefore, when I have a workshop, a seminar, a mastermind, I can charge a premium for it, right? Instead of charging a couple hundred bucks for a two-day workshop, I can charge five grand for a two-day workshop. And so understand that you can do that by displaying your knowledge, expertise, wisdom, you can then begin to elevate yourself on this pyramid of hierarchy from being a generalist to a specialist to an expert to a celebrity at the very top of that pyramid, right?

And when you become an industry celebrity, you can charge more for the same product or service and therefore increase your profit margins. So that's the beautiful thing about being an entrepreneur, man. There's so many ways you can slice and dice this pie. But what I want you to understand is there are businesses. For example, my dad was trading time for dollars in a tailor shop where he had to open the shop every day. And yes, he could have hired more tailors.

And it certainly could have been scalable. But he didn't understand scalability. He was a hardworking man. And he traded his time for dollars for 30 years and built something for himself and good for him. Like I've got so much respect for my dad's hard work ethics. I've got his hard work ethics, but I also have Jim Franco's ability to be able to scale, automate, increase profits, leverage, right?

And because of those things, when I take work ethic and the ability to scale and automate, delegate, and leverage, and I put those things together, it's like creating a nuclear bomb as an entrepreneur. And then you become a better leader and you can lead amazing human. who work with you in line with you to be able to scale this vision that you all believe in together. Like, how cool is that? It's like working with your best friends, man. And so I want you to understand that you can do this too.

Or you could also say, hey, man, I'm going to be a copywriter. And I'm going to work off my laptop. And you can make yourself 15, 20, 30 grand a month being a copywriter or being a phone salesperson, selling for other people. You don't even have to sell your own shit. You can sell for other people and make commission and do it from anywhere and travel the world. The beauty of entrepreneurship allows you to be able to do things on your terms, but you have to understand what types of businesses exist out there, what types of opportunities those businesses

give you, and how you should leverage those opportunities to increase scalability and to increase profitability so that you, my friend, can have an awesome life. I hope this has been very valuable to you. If you're looking to make more money, improve your business, start a new. business or to scale an existing business. And if it has, please do me a favor, like and subscribe, leave the comments on the podcast platforms. And be sure to follow us and watch us on Spotify. We are now on the Spotify video network as well. And for all of my friends on YouTube, thank you so much for continuing to grow this show. I love every single one of you across all

the platforms. And I just want to let you know one last thing and you know what's about to come. Average is the enemy And success is your responsibility And change can take place in an instant When you are ready to flip the switch I'll see you later What's the difference between me and you Back when Q was rolling with Lorenzo

And A Benzo I was banging with a gang of instrumental