I am Charles Schwartz Show - Zero Cash, Endless Profits
Episode Date: October 2, 2024In this episode, Charles dives deep into the turbulent waters of business transformation with Grayson Cross, the financial firefighter who's made a career out of resuscitating companies on life suppor...t. Grayson peels back the curtain on his playbook for turning cash-hemorrhaging operations into profit-generating machines, offering a masterclass in entrepreneurial alchemy. From his early days as a teenage hustler booking car detailing gigs on Facebook to scaling multi-million dollar brands, Grayson's journey is a testament to the power of strategic thinking and relentless adaptation. He dissects his evolution from a digital marketing whiz to a business turnaround specialist, revealing the DNA of his "cash flow first" philosophy that's kept him ahead in the ever-shifting sands of commerce. Charles and Grayson engage in a no-holds-barred dialogue, exploring the four pillars of Grayson's growth strategy: negotiate, optimize, leverage, and scale. They unpack the counterintuitive approach of "transparent negotiation," the magic of extending payment terms, and why creating your own luck trumps waiting for opportunities in today's cutthroat market. Grayson's insights crackle with practical wisdom as he breaks down his unique operational strategies, from the game-changing "super fan" approach to the "portless" shipping revolution. He challenges conventional business thinking, advocating for a radical shift from short-term gains to long-term relationship building and cash flow optimization. KEY TAKEAWAYS: • Uncover the secret sauce of Grayson's supplier negotiation tactics and how they can transform your cash flow • Learn why "creating your own luck" is crucial for sustained success in the business world • Discover how the "super fan strategy" can fund your product launches without external investment • Understand the power of strategic credit card use in extending your cash conversion cycle • Explore strategies for optimizing operations that can turn a $250,000 monthly loss into profitability without layoffs Head over to podcast.iamcharlesschwartz.com to download your exclusive companion guide, designed to guide you step-by-step in implementing the strategies revealed in this episode. KEY POINTS: 7:16 Building a Team: Grayson emphasizes the challenges of assembling a skilled team for business growth. 9:33 Be Extroverted: The importance of networking and building genuine connections is highlighted as a key to success. 14:00 Negotiating with Suppliers: Strategies for effective supplier negotiations are outlined to improve business terms. 16:44 Building Supplier Relationships: The conversation shifts to the value of fostering long-term partnerships with suppliers. 19:11 Aligning Goals Together: Grayson explains the significance of finding mutual benefits in business relationships. 20:42 Building Transparent Relationships: Transparency is presented as a crucial element in developing trust with business partners. 22:30 Faster Inventory Turnover: The discussion turns to methods for optimizing inventory management and cash flow. 25:11 Direct Shipping Benefits: Advantages of direct-to-consumer shipping models are explored. 27:23 Relationship Costs: The hidden costs and benefits of maintaining strong business relationships are examined. 29:02 Amazon Return Policy: Amazon's customer-centric approach to returns is analyzed as a business strategy. 32:04 Taking Care of Customers: The conversation delves into the importance of prioritizing customer satisfaction. 34:02 Business Profitability Boost: Grayson shares insights on increasing business profitability through strategic changes. 36:30 Unsexy Businesses Thrive: The potential of often-overlooked, "unsexy" business sectors is discussed. 38:30 Banking Competition Rises: Emerging competition in the banking sector and its impact on businesses is explored. 40:29 Leveraging Credit Cards: Strategies for using credit cards as a tool for business growth are outlined. 42:10 Net 30 vs Net 60: The benefits of extending payment terms from Net 30 to Net 60 are explained. 44:04 Using Plastic Tool: Grayson introduces the 'Plastic' tool for managing business expenses and cash flow. 47:12 Small Sample Size: The importance of validating business decisions with adequate data is emphasized. 49:42 From Negative to Positive: A case study of turning a business from loss to profit is briefly presented. 52:58 Creating Opportunities for Luck: The discussion concludes with strategies for creating one's own luck in business.
Transcript
Discussion (0)
Welcome to the I Am Charles Schwartz Show. In this episode, we're plunging headfirst into the
turbulent waters of business turnaround with Grayson Cross, the financial firefighter who's
made a career out of rescuing sinking ships. With a track record of transforming cash hemorrhaging
companies into profit powerhouses, Grayson has become the go-to guy for businesses on the brink.
From his teenage days of hustling car detailing gigs on Facebook to scaling multi-million dollar
brands. Grayson's journey is a masterclass in entrepreneurial evolution. He's navigated the
treacherous seas of e-commerce, digital marketing, and financial strategy, emerging as a beacon of
hope for struggling businesses everywhere. In this no-holds-barred conversation, Grayson rips
apart conventional business wisdom and reassembles it into a blueprint
for 21st century success. He reveals how transparency and long-term thinking can turn
adversarial supplier relationships into powerful partnerships and why your most loyal customers
might just be your secret weapon for funding growth. You'll uncover Grayson's super fan strategy
that's helped launch products without a dime of outside investment.
He also lifts the veil on his cashflow optimization techniques that can extend your payment terms to 90 days or more, giving you the breathing room to sell before you spend. Grayson's approach is
direct, innovative, and grounded in real world results. He's not here to peddle get rich quick
schemes, but to arm you with the strategies and mindset that have fueled his repeated success
in turning business nightmares into entrepreneurial dreams. So if you're ready to transform your
business from a cash-draining headache into a finely-tuned profit machine, strap in and get
ready to rewrite the rules of business success. The show starts now. Welcome to the I Am Charles
Schwartz Show, where we don't just discuss success, we show you how to create it. On every episode, we uncover the strategies and tactics that turn everyday entrepreneurs into
unstoppable powerhouses in their businesses and their lives. Whether your goal is to transform
your life or hit that elusive seven, eight, or nine figure mark, we've got the blueprint to get
you there. The show starts now. All right, welcome back to the show. I am ecstatic for this one.
This one's huge. It's going to talk about profits and how to raise money and how to have money when
you don't have money, how to make money. I'm excited about this one. Let's get directly into
it, man. Thank you so much for being on the show. I appreciate it. Thank you, Charles. I'm really
excited to be here. Really, really excited. So walk me through this, a little bit of your story.
You know, a lot of people have no idea who you are and you know, we're talking, we're making
some big claims on this one. Tell me the story where you're from. What have you done?
Well, that's a big one. Uh, I'd start with saying, I don't, I don't think most of us don't
actually know who we are quite yet. Um, man, a lot, dude, a lot. Um, I'll give you like the,
the 92nd Tinder version. Cause that's probably easier. Okay. But you know, I grew up in the
middle of nowhere, uh, Coeur d'Alene, Idaho,
which is like the nowhere, nowhere.
And I got into digital marketing
when I was like 14 or 15 years old.
I mowed lawns until I could afford a bouncy castle.
You remember those bouncy castles?
I remember the bouncy castles.
They're fun.
And that was my first business.
I was renting out bouncy castles
when I was like 15 years old.
I got one off Craigslist for 200 bucks.
And I found how powerful it was to start doing advertising for that on facebook um back on the
day was myspace you know it's the go-to and i was just so surprised with like i was like wow
i just bought this yesterday and i have i'm booked through the entire summer by just joining all
these facebook groups and posting about it right and obviously I was 15, so I wasn't licensed or
bought a shirt or paying taxes or anything. And I blew every single dollar. I was buying pizza for
all of my friends. It was the coolest thing ever. But that got me on the bug or the tick for digital
marketing stuff. And from there, it moved to the early dropshipping, the print on demand for t-shirts
and really, really got me into it.
I was, I feel like, you know, I've talked a little bit about this off the show, but
looking back, I feel like I was just super lucky. It was a lot of like, I happened to be in the
right place and happened to talk to the right person just because it connected me. So from
there, I actually met one of my first mentors the name is steve he's an amazing amazing
man um and he showed me how to take one of the oldest businesses ever like gyms and then turn
it into a digital product so with him you know i'm now partial owner and one of the largest uh
the largest actual rent uh renting company of gym equipment in the entire world. If you go to a hotel, you go to Job Corps, that gym inside of
that hotel is actually being rented. And there's a pretty large chance that it's being rented for me.
But it was 100% commoditized as a service like Netflix, right? From there, I was super, again,
super, super lucky. I got connected uh one of the largest uh firearms firearm companies
in the world or firearm accessory companies and i ran all of their facebook ads back in the day
when you could run facebook ads for whatever before you know the restrictions came in um
and that was and that's really what got me in there uh into the in my door for the for the
digital marketing i helped grow that into the the largest firearms accessory in the world.
And then I got into the agency space.
And agency space was where I feel like I got, again, I was like, oh my gosh, you can just go work with any company you want.
If you want to go work on this business, you can.
If you can just make your proposition good enough and you can deliver the work.
So I was very lucky to work under Taylor Holliday at Common Thread Collective.
That's where I got my experience working with the Procter & Gamble brands, the Native deodorants. I did some small work on Liquid Death. That's where you see the igloos, the brands that I really, really feel like it was an honor just to work with, to be able to see how does a billion-dollar company actually function? How does the inside? And what I found is there's like a lot of politics, which I'm not a fan of, not as far as like left and right politics. I mean,
like company politics, which is just insane. And I, cause I thought it was, the goal was just to
make money, but it turns out not always the goal. And then from there I found out, I'm like, wow,
I really, really enjoyed making other people millions of dollars, but I wanted to do it myself.
So that's where I met my current business partner, Tommy Patterson.
And we've been building this engine over the last three, five years
called Weekend Digital and Weekend Investments.
And what we do with this is we go buy brands,
we acquire, strategically acquire a minority stake of brands,
grow them, and then sell them.
We work with the founder to sell that brand. Usually, we go to a company and say,
hey, you can't afford the services that we would do. We charge $50,000 to $70,000 a month.
However, what we can do is work strategically with you to lower that to basically nothing.
And then we're all in this together for the long-term exit. Because the
biggest problem, in my opinion, with agencies is that they're there to get paid immediately,
working about their overhead, versus I would call it a strategic growth partner, which says, hey,
we're going to forego this immediate payment that we're all going to work together for the
three to five-year goal of getting towards the big sell-off.
So that's what I'm working on right now. I've got about seven brands. We're trying to get to 20 by the end of next year. Had some exits going really well. And really the last three years have been
building the team, which is a lot harder than you would think because you basically have to give
them an uncapped commission because they're now they're
compensated on the success of their asset. And that was been like the hardest struggle so far
is building a team around it. But, uh, Hey, that's like the 92nd version. Yeah. That's the,
as you said, the Tinder view, um, there's a bunch of stuff there that I want to get into.
Most entrepreneurs won't talk about luck. And it's something that you and I have discussed
a bazillion times at this point off camera that how important and how lucky you have to be. You could be the most skilled, talented grinder on the planet, but a
lot of that's luck. In this situation, because you've been very lucky, I've been very lucky or
blessed because for me, those are interchangeable. What are the things that if you're an entrepreneur,
if you're trying to scale and you're in that environment, what are the things you can do to
increase your luck? What are the things you've done to help out in that environment, in your experience? Wow. There's this one saying, which I hear is like, the harder you work,
the luckier you get. And then there's another one that says, if nine out of 10 business fails,
that means you have to do 10 businesses, right? I think the biggest thing is to be extroverted.
I think that you'll hear that from everybody. Every single opportunity that I've
been so lucky to get in my life has started from just talking to somebody. Whether it be at a hotel
bar, whether it be at an event, whether it be a friend of a friend, whether it be liking someone's
post on Instagram and commenting on it, it genuinely starts from a point of genuine interest,
not like the fake sales pitch. I'm sure we're all really familiar
with the lead, the networking.
I hate networking, so it's such bullshit.
But actually seeing something that you're interested in
and connecting with that individual.
Just talk to as many people as you can
that you have a genuine interest in what they're doing.
Because fakeness is so...
I feel like the bigger of an entrepreneur you become
in the sense of not just income, but in assets,
you're able to detect fake people very, very, very quickly.
And my radar goes insane now.
But you can also really say,
wow, this person really is interested in this thing
that I'm actually doing.
And that's one of the most exciting things
is when you find someone
who you're really, really passionate about something, someone else comes along and says,
Oh my God, I love that. I'm so into that. How can I help? And it's just amazing. So that's what I'd
say is be a servant and talk to as many people as you can. I also think, you know, you know,
having a shared mission is something that I would make sure that we have, you know, we talked about
this, you know, how we connected and how the connection went from, hey, I want to be on the podcast to this other idea, this much higher mission environment was we have very similar missions.
The parts of our core are very, very similar.
And if you're like, oh, well, you're lucky you came across and you guys connected.
There's also a similar mission here.
So making sure you get that clarity on your mission is huge.
And for a lot of people right now, their mission is just trying to pay the bills.
We're heading towards an economic collapse.
We know that.
It doesn't matter who becomes.
We're in August right now.
So we'll see who, you know, ends up becoming the president of the United States right now.
We don't know.
It could be Big Bird.
We have no idea.
But in the dynamic that we have, we know that there's going to be a recession no matter
who takes office.
We know that we're having a pullback because that's the economy.
It breathes in.
It breathes out.
We have this ebb and flow. With where they're going right now, you've done
something a lot of people haven't been able to do, which is like, hey, you can generate, you can have
inventory, you can have this without allocating funds externally, where you can have all this
stuff that's ready to rock and roll. And for most business owners, that's terrifying. They're like,
no, I need to buy all this stuff. I need to have all this inventory. I need to do all this before
I can market it, before I can do this. So their entire fulfillment
process from acquisition to finally fulfilling the product is terrifying for them because they're
outlaying so much. One of the things that you wanted to talk about was there's a way to do
that effectively and tactically without needing to do that. So walk me through that.
Oh my gosh. Yeah. There's, there's a lot of ways of doing this. I think it
kind of comes back to this new model is I can't tell you Charles, like how many businesses I go
into that are already doing like five to $6 million a month in revenue and they're failing
like miserably. And I'm like, how is this even happening? Right. I used to believe there was
a saying that there's no such thing as a bad operator. It's just a bad business. Now I feel
the complete opposite. There's no such thing as a bad operator. It's just a bad business. Now I feel the complete opposite.
There's no such thing as a bad business.
There's a bad operator.
People make money off of selling garbage, you know, selling garbage.
And there's always a way of doing it.
So yeah, that's definitely what I wanted to go over today.
All right.
So I call this the unlimited inventory zero investment.
But what it really is, is it's just time, right?
When we look at most, there's two business owners here.
Here's the one that's already existing.
Then this applies to you.
This is the person that's doing between above $1 of revenue.
Let's just call it that.
And then there's everyone who's doing less than $1 of revenue, right?
This works for pretty much everyone there.
What I'm going to be talking about
is how this applies not just to inventory, this applies to cash flow in general. So what we're
looking at here, you're going to see three tiers and that tier is going to be inventory, ads,
and then everything else. Inventory is usually the number one expense for an e-commerce business,
right? You're buying product, you're selling product, and then immediately after that is
usually advertising. And then after that is everything else.
When I talked to inventory, I thought that there were a set of rules that just have to
be.
Not true.
I would say not true at all.
As I've gotten more and more experience over the last five, 10 years, is that every single
thing in life is negotiable.
Everything.
A credit card bill is negotiable.
Everything is negotiable. Medical bills A credit card bill is negotiable. Everything is negotiable.
Medical bills are negotiable.
It's insane.
And the more human element there is, the more connection there is between this is the moment
that there becomes way more room for negotiation.
But also, it's always about aligning incentives, especially when it comes to a manufacturer,
right?
I'm going to add two asterisks here.
So we're going to start with inventory.
And as we start talking about inventory specifically, I want to say that this will apply very easily
to uncustomized products.
So if you have a business that sells yoga mats, let's talk about this.
Because let's say what we're going to talk about is how you can get 240-day net terms
for your business that sells yoga mats for your supplier.
If you, if you screw them over and then you don't pay your bill and they've got all these
yoga mats with your logo on it, they can take the logo off and put somebody else on.
Right.
You're making a one of one custom product that nowhere exists nowhere besides with you.
You're going to have a lot less negotiation room unless you've been doing business with this person five plus years because all the parts they're getting
are usually custom manufactured unless there's specific stuff like that. But think about it that
the less customized your product is, the more room for negotiation you have. And the biggest piece of
this comes from negotiating directly with the supplier, which we're going to talk about in a
sec. The next is advertising platforms and then everything else which we're going to talk about in a sec. The next is advertising platforms
and then everything else,
which is going to talk about credit cards,
which you can legitimately get net 60
on anything tomorrow,
like which will change your business.
Net 60 is like,
if you're spending $20,000 a month
on credit cards right now,
now all of a sudden for the next 60 days,
you just injected 20 grand back into the business,
which is easy for most businesses.
So what you're going to be seeing right now is a scale of low risk to high risk. Very top,
we have suppliers. It's going to be the inventory. Very bottom, we've got revenue-based financing.
I want you to think as the lower the risk, usually that means there's going to be less fees.
It's going to be much easier to get and lower interest. Just imagine that in general. Once you get to the high risk stuff,
I'm going to draw a line here in a second that's going to be the don't do this unless you
absolutely have to, because they basically own your business. And that's going to probably start
around PO financing, maybe inventory financing above that. That's where it becomes very risky
because if a bank is giving you a loan on,
let's say, your inventory, they don't want to sell your stuff. You're going to get maybe 40 cents, 50 cents on the dollar if you're lucky for an inventory finance.
So as we go through this, it'll make more and more sense. So let's look at suppliers. When we
go to this next thing, you're going to see a grid of four different areas, starting with the
negotiating with suppliers. This is the most important part, negotiating with your suppliers.
I want to give this in the philosophy standpoint.
Your supplier, they want you to order more, right?
If you, you know, Charles, let's say you're my supplier, right?
You're selling me yoga mats, right?
You want me to buy as many as I physically can.
I just want to make as much money on that.
When I look at this and I say, well, how have the most successful negotiations went?
I would go with this. This is the first one open. Hey, Charles, this is my business.
Here's my P&L. This is what I'm doing. Again, you're my supplier.
I'm showing a huge amount of trust and openness by giving you an actual P&L
to my business. This is how I'm doing. I'm showing a huge amount of trust and openness by giving you an actual P&L to my business.
This is how I'm doing.
I'm doing good.
My problem is my cash conversion cycle, which is just the churn of inventory.
I have to wait 90 days after I pay you to sell my product for me to go buy more product.
What I want to figure out, Charles, is how do I make it so I can sell the product you're giving to me faster so I can buy more of your product so we all win, so I can scale my business
and I can order more. And when you frame it in this way, again, back to aligning incentives,
it's very difficult for you to lose in this way because you're winning and your supplier's winning.
I think one of the things that happens with people
when they try to negotiate
and they try and go back and forth in this environment
is they're always thinking about themselves.
They're always putting them in an environment
where they're like, hey, I've got this problem.
This is me.
I'm going to go browbeat
or I'm going to go really get intense
against whoever my opponent is.
One of the things I teach
when we talk about persuasion all the time
is if you're across the table from someone,
you're now creating a battle. That physical distance between them, you created a battle.
So hand them the piece of paper and say, hey, wait, did they give you the right one? Swing over to the side, sit next to them. And now you're looking at it side to side. So now you're not against each
other. Get rid of the pronouns and we're not going to get too much into pronouns, but try not to use
you in this environment or I. Yeah. Try to use the plurals, we, them, us. Us. Because that way
you're unifying together to try and get to a goal. So when we're talking about negotiation
and we're trying to talk about negotiation on everything, as you were saying, everything's
negotiable from your bills to your medical bills, to your inventory, to relationships with clients,
to building your team. You need to understand that when you're doing this, you have to build
rapport and build connection. And what you just said there was like, listen, I want to buy more of
your stuff, which means you put their need, their highest pain point on the highest level.
They want to have more stuff bought. You're like, I need to buy more of your stuff.
I can't buy more of your stuff because you have me on a net, whatever it is. Can we adjust this
a little bit so I can buy more? And by being authentic and showing your PNLs for profit loss
people, for those who
aren't paying attention, showing your profit loss statements in there, put it in there so we can sit
there and show people, hey, this is what's actually going on. Now they feel like, oh, wait, this isn't
just a customer. Now you're starting to build a relationship that's going to lead to a partnership
so you can do these environments. Because again, the credit card where you're not doing anything
for 60 days on your net 60, mazel, really easy idea. But getting to the point where you're not doing anything for 60 days on your net 60 mazel really easy idea but getting
to the point where you can build these relationships this is what we talked about in the beginning
you're gonna this is how you're building your luck by building these things because for me
relationships are a huge part of getting lucky i agree i i cannot everything you just said is like
spot i cannot agree with it more it is a us the goal. And the moment that your supplier is now part of your team versus this is something because
most people, when I open this, when we talk about supplies, like, oh, I just got to go
find one who give it to me cheaper.
I'm like, oh, no, you need, if you believe it or not, raw material costs, basically the
same for everyone.
So, and if you're working with someone, there's a chance that you can make this work for them.
I think that the best way is starting, as you said, with aligning the goal of what the
goal is, but also immediately offering it up and saying, listen, I understand it's a risk for you
to give me a net 30. Most of the time, if you're brand new to this business and you're ordering,
they say, I want a hundred percent of it before I even start manufacturing. Before I even start
making this, I want a hundred percent of it. And it comes in tiers, right?
It starts with this,
hey, let's figure out
how I'll pay 50% of it right now
and you can start making it
and I'll pay 50% of it
when it gets to the dock, right?
Which now, all of a sudden,
your total inventory is only 30 days.
It usually takes 30 days from the dock
to the ports.
Very, very easy.
And we're going to get to something
about the ports in a second
which is going to be amazing.
It's going to change your life for everyone, including just
most people who don't even know about this. And it comes in tiers. It goes from there. It's like,
okay, well, we've been working together. I want to help even more. Charge me an extra point or two.
Give me an extra 2%. And let's say I'll pay for 50% of it when it's at the dock and 50% of it
when it gets into the States and gets to my 3PL. And you can start moving this and moving this.
And it is not unrealistic within two,
maybe three at the maximum, two years of,
again, you have to actually live up to your word.
This is the most important piece here.
If you screw anyone over,
that relationship is lost and they will never trust you.
But give them a couple extra points
and you can get to net 90
from the moment it gets in the ports in the US
and say, once it hits the ports, I need 90 days to pay it because now I'm selling it and
I'm selling what I'm selling to buy more inventory from you. And it's a very, very beautiful
relationship. And the moment that you can even give them access to your Shopify store, analytics
access, and they see what's happening. I've had a relationship with a factory where I said, hey,
what if we just had a relationship
where you see my 3PL, you see my Shopify store, you see what is selling and you start creating
POs immediately based off of that. And it was an amazing relationship and helped a lot.
Well, you're building an actual relationship based off transparency. And most people don't
do that. They're browbeating going, Hey, you know, this company can sell me yoga mats at
$3. You're selling me at $3 and 15 cents. If you want to keep, hey, this company can sell me yoga mats at $3. You're
selling me at $3.15. If you want to keep my business, you have to sell it to me for $2.99.
You've killed that relationship now. They're not going to work with you. They're not going to have
that because you're not building a relationship. You're browbeating them. I do this when I talk
about investment strategies for properties that I own. I will always pay more than anyone else
to the management company. And I tell them that. It's kind of like the Game of Thrones idea where Tywin always says, if someone pays you
more, I'll double it.
I've always done that with my management companies and my properties.
I'm like, I don't care who it is.
I will always pay more on management fees compared to anyone else.
But there's two conditions.
One, I never get a phone call.
Just fix it.
Just fix it.
I don't want to deal with it.
And I have to have the happiest people.
So you have to reply to my tenants instantaneously.
If you do those two things, I have no problems paying you a certain percentage over.
And because of that, the people that I work with are like, oh yeah, you're our favorite
person.
I'm like, cool, just fix it.
And there's a dedicated, just go.
I don't want to deal with it.
Because that is building a relationship that's, hey, they have this pain point.
I'm being the Advil, the Tylenol or the whatever it is for that pain point for them.
I'm not adding more to them.
And I'm saying this is a non-branded ibuprofen, right?
Exactly.
Whatever the target.
Going in and building that rapport.
And people never go into it.
And there's a reason you can do what you do.
Because again, this is how you've learned.
This is what your mentors and what you've learned with experience.
You're building these relationships.
And if you don't understand that it's relationship building, that's like chat GPT isn't just type in there and chat. You have to
have that back and forth. Same thing in this environment. You have to have that back and
forth. You have to build a relationship. I totally agree with you, man. I love it.
Awesome. Next. Okay. So the next two things, so I'll wrap this one up pretty quick, but
the next big piece is faster inventory turns. I cannot tell you how many times I give a business
owner because I work directly with the business owner, right? We come in for a minority stake. I say, we're going to turn this
business around. We're going to get it to this and we're going to sell it. And I say, here's
your homework. Go negotiate with this supplier. And they come back and said, hey, I got net 30.
I'm like, that's great. And then they're like, I only had ordered three times the amount of
inventory. I'm like, not great, right? Not great. Not great.
The faster you turn your inventory,
the faster that items on the shelf turn into cash.
They get to be reinvested back in the company.
Very rarely do I actually see a business that doesn't work.
It's just all of the little things.
It's death by a thousand cuts of,
oh, it's 1% here.
Oh, and we're letting this in on the shelf and we're losing $10,000 a month to storage fees.
There's all kinds of things that really just eat you which actually brings me to the to the last thing here
which is called portless now um have you have you heard of portless charles because this is kind of
new okay this is new yeah that one's a new one to me this is insane all right we know timu right the
the the chinese garbage that is two cents on the dollar that gets sent to America, which is actually just trash.
Yes, I know.
No, I agree with you.
It's the worst, man.
Yeah, it's horrible.
I get it.
I got the product, you know, the first time last year and from a digital marketing standpoint,
like, how are they doing this?
How am I buying something from China and it's getting to my door in six days?
Yes.
Like this doesn't make any sense. So at first
I'm like, okay, they have to have just three PLs in America, right? That's the only way.
So I started looking at the packages that I'm getting and the return labels and the tracking
on them is from China. And I'm like, how are they doing this now at the time of this recording?
What is it? August 22, 2024. This is the, in my opinion, the biggest tax loophole in the entire world.
And I can't be super specific on it, but it's along the lines of the value is less than $800.
You can ship it directly to your customer internationally without having to pay any
import or VAC taxes, which is insane. Now, combine this with light goods. If you look at Timo,
you'll notice that pretty much everything is very lightweight that's on there. You can actually, Portless is some very, very intelligent people who saw this model doing over, let's say, $500,000 a month.
You can go to your supplier and you can work with this company called Portless and you can ship from China with six days, six days to your customer, which allows you to order
MOQ, which is minimum order quantity versus a container size.
Because usually when you're doing a shipping, when you're shipping your inventory, you're
filling up a container at a time.
So it's usually much larger than the MOQ.
So what's amazing about this is now all of a sudden, oh my gosh, I can just, I don't
even need to ship it to the US.
I don't even need a 3PL.
I can ship it directly from my manufacturer to the customer and cut out everything.
Now, again, caveats.
It's a little bit more expensive, 20% to 30% more for the shipping, which is fine. But it also, if you have a business that's working
really well, set this up because now all of a sudden, let's say you're running a sale,
you run out of inventory, you got 30 days until it gets across the ocean. Now, all of a sudden,
you go from 30 days to six days, which is a big difference, even if you're only paying 20% extra.
It's worth the 20% extra in that environment.
A hundred percent.
It's insane.
All day long.
Yeah.
So from the high level, that's the inventory side of it.
Everything right there will change your business immediately.
I do this in the order of what is the highest impact, right?
Right.
Inventory, number one thing, go negotiate, go make it happen.
Because just the uncomfortable conversations, this is,
you know, my dad used to say this. You can judge the success of an upcoming business owner based on how many uncomfortable conversations they're willing to have. And this is always going to be
an uncomfortable conversation until you make it one. And it doesn't have to be hard. It says,
hey, I want to work with you. I love working with you. You even gave the example, Charles,
there's this other yoga mat company that sells on me for $3. You're charging me 315. I would love to keep
paying you 315. Can we get net 30? Does that work for you? Right? Because I want to keep using you.
You do everything. My boxes arrive on time, but this is what my fine and make somebody else the
bad guy. My finance team is telling me this, but this is what I got to do. But I love our
relationship. How do we keep it working? And I think that right there, you hit on something that most people, especially business owners,
mess up with, which is, okay, they're going to charge me 315 or I'm paying 315.
They're going to charge me three bucks instead of 315. Save me that 15 cents.
What are the other things? What are the other soft costs? What are the soft benefits that
you're getting where they show up on time? They fulfill on time. They have a great relationship
with you. They're return policy. That 15 cents might not be worth it with soft benefits that you're getting where they show up on time? They fulfill on time, never great relationship with you, their return policy, that 15 cents might not be worth it
with the other stuff you're losing. There's so many people who only focus on cost per item that
they're running into that you're like, no, there's an entire dynamic here. There's an entire different
relationship. I run into this with people who are getting environments where they want to no longer
be with their spouse because they want to go look at all that's on the other side. And I'm like,
there's a cost for that. I get it. You want to go play with it higher than you think,
but there's a cost for this. You know, you're, you're losing the trust and the relationship
and the connection and all of these things that you've built up. There's a cost, same thing in
business. Yeah. You might be able to save that 15 cents, but at the end of the day, what is it
costing you? And being able to really get into that as something that most business owners who
aren't mature enough or aren't experienced enough are just going to go, oh,
it's cheaper. I'm going to go do that. There's a wall of other things that you're offsetting to
that. Yeah, it might be cheaper, but they can deliver better and they can get into those
environments. So as you're trying to scale this and yes, you can get profits for, and you can get
net terms and all this differently. Understand there's always a cost. Every action has a cost, be it good or be it bad.
Just understand there is a cost and you have to be willing to pay it.
This is what it is.
I love that.
You're so spot on.
Think about it.
One, you're paying a customer service agent seven bucks an hour.
Think about that one problem that takes them 30 minutes.
Let's say two problems.
You just lost $7, $7 of margin.
If you like, and that adds up fast it adds up very very fast and then that customer will never buy from
you again ever so now you've got an ltv problem absolutely no and then you know we talk about
with this amazon where you know bezos always talked about being obsessed with the the customers
where he says in his return policy as at least as a business owner with amazon there's not there's
never been a negotiation i'm like this doesn't work i don't like it whatever like whatever return it in over a decade of doing
this they don't care they're like whatever that makes it so that instead of me walking across the
street to target to buy it i'm just gonna buy it straight from amazon because i know the return
policy because that's what's important to me and it's automated i'm not talking to a sales rep
it just automated is done so having those type of systems and operations because that's my. I'm a systems guy having these things understand. You have to look at the
LTV. You have to look at the, you have to be able to zoom out and really understand these things.
I love that, man. That's a really good, that's a really good point.
So as we go into it now, we're going to, I think customers.
Yeah. Customers. Let's get into customers. I mean, this is, we still need customers.
We still need those. Do we still need those, but it is probably the most underutilized part of a business,
existing customers I've ever seen in my life.
I see all the time, I'm like,
we're launching this new product.
And I'm like, great.
And the inventory is $200,000 for order.
I'm like, great.
And then it's like, and we just paid it.
And I'm like, wait a second.
Why?
And then I'm like, let's go.
And I tell this to everybody.
I say, go to all of your customers in Shopify, whatever platform you're using, export them into a second. Why? And then I'm like, let's go. And I tell this to everybody. I say,
go to all of your customers in Shopify, whatever platform you're using,
export them into a table, sort them by who has spent the most. Take that top 10, that top 20 list and reach out to them directly and say, hey, we're about to release this new product.
Heads up. We're about to release this new product. We're going to make 10 of them,
20 of them that are super special edition.
Would you be interested in them?
And then what you can do there is you can sell products
before they're released, net 90, net 120.
I have net 30 in this presentation,
but realistically, as long as you're very transparent about it,
you can do it as long as you want.
And you can use a super fan customer cohort
to fund most, if not all of that PO.
It's insane.
You can think about it.
It's like usually our cost of goods is 25 to 30%.
That means that if you have a $100,000 order, a PO order coming up, you only need to get
$30,000 of MSRP to make that happen.
And if you've got that raving fan base, if you've got those super customers, they'll
cover it for you.
And that's it, man.
Even if it's only 20%, 30%, 50%.
It's still more than...
Agreed.
You've negotiated terms at this point
with your supplier,
which means let's say you're only at the...
We'll pay 50% of it at the port
and 50% of it when it gets to the US.
Now, all of a sudden,
you're paying nothing
until it's in the 3PL
and you're shipping them
and you're making money on them.
You know what I mean?
It's a huge difference. So that's the biggest thing. And that's very straightforward.
We can move on from customers. Very, very straightforward. Yeah. And again, all this
that we're going to talk about here is relationships. How are you leveraging the
relationships with your vendors, your suppliers, your customers? How are you building those
relationships, not just trying to send 15 cents on a yoga mat. A hundred percent.
And give them more.
You know, these are your super fans.
Give them more.
Say there is literally 10 of these.
It's a special color.
It comes with something limited edition.
This will handwritten letter, a picture of you, whatever Polaroid.
It's a big deal, man.
You know, it's a big deal.
And just take care of your customers.
I think that's what it comes down to is taking care of them.
Absolutely.
Next one, ad platforms. So I talked a little bit about this. It goes inventory,
advertising, everything else. Usually that's how a business P&L usually reads. And when I look at this, this is like the slam dunk easiest stuff in the world. And when you look at this, it's going
to break down into monthly invoicing. So Facebook, Google, TikTok, just do it. They have a program for all of them.
Go sign up for it
if you're using these advertising networks.
They won't approve you
if you're delinquent on a bunch of bills.
So just make sure you have good
like 60, 90 days of payment history
and you get net 30.
That just injects 30 days into it.
It's amazing.
And the best thing about this,
and I say this with, you know,
be careful about this.
Facebook says net 30,
but they also wait 15
days until they pause your ad account. So you could do it on the sixth, on the 15th day.
So it's actually net 45. They don't say that, but you know, it's very, from all of my experience,
that's it. And it's very, very easy. So just make sure you do that. And it's very straightforward.
And people just aren't understanding these little nuances when you go into this. And again, it's just learn the market, get the experience out there. And people do this like,
oh, I'm just going to screw over this deal, screw over that deal. That has lasting effects. I wish
I could tell people how big the earth is, but it's not. In this environment in business,
everybody knows everybody. It is what it is. Everybody, we're so interconnected on such a
high level. So you're going to cross, if you just don't burn any bridges guys that's it don't burn any bridges do what and do the right thing
and if you don't know what the right thing is it's the hard thing it's that simple let it out
it's the hard thing just do it just pay off after doing it absolutely just do it always do it don't
try and dick anybody over because it's a short-term game and it'll just eat you alive. I agree. And I like sleeping good at night. That's my favorite thing.
I'm a big fan of sleep. I'm a big fan of sleep.
I love it. But yeah, man, this is very, very straightforward. Just go do it. I mean,
think about it this way. And I always tell people this is like, if you're operating from a P&L
aspect and you can get net 30 on just your advertising loan and you spend a hundred grand
a month, all of a sudden, you just made your business
$100,000 more profitable.
Because if you do it right now,
you get to the end of the year
and you balance your books
and says, okay, great.
We still have a debt
that's going to be due in 30 days,
but that's past December 31st
into the new year,
which means we add an extra $100,000.
So if your ultimate goal
is to sell the business,
if you're selling it
like a five or six X multiple,
you just made your business worth $500,000.
So very, very straightforward.
I love that.
You know, as you're doing this, you started with the exit as the most important thing.
You know, it's something that you and I both, as you go into businesses, the first thing
I'm like, all right, we're going to exit you in 72 months.
Like you're, you're gone.
You're like, okay, great.
Now we're going to exit you in 36 months.
They're like, really?
I'm like, yeah, you're out.
I normally, whenever I show up and I'm like, you got 36 months, you go, bye-bye. We're done. We're leaving. okay, great. Now we're going to exit you in 36 months. They're like, really? I'm like, yeah, you're out. I normally, whenever I show up, I'm like, you got 36 months.
You go, bye-bye.
We're done.
We're leaving.
We're done.
We're not doing this anymore.
It's a different mindset as well.
When you walk into that environment saying, hey, you know what?
I've been doing this for a long time.
And it's happening right now with kind of the boomer generation where they busted their
hump for so long and their kids don't want the business.
So those are the ones you show up with.
And okay, what's your exit?
They're like, your exit?
I'm just trying to pay my bills.
We're fixing that right now.
We're getting you this extra net 30,
next 60, whatever it is.
We're fixing that now.
Now let's talk about how do you exit?
And having the exit in mind
is something that most entrepreneurs
don't do from the very beginning.
Have your exit, understand your multiplier,
understand what you're trying to get to
because there's not a business owner I know. That's not true, there's like one or two,
that I know that if I walked over and said, hey, here's $25 million on for your XYZ business,
you never have to work another day for the rest of your life because you can live on that.
What do you want to do?
Most of them are like, bye.
But they've never done it.
Bye, see you.
I'm going to go become a shore erosion technician and watch the beach just get eroded while
drinking margaritas.
So having that idea as you're trying to scale your business, one of the things we talk about, you know, systems are vitally important. Relationships are important. Building teams that
have, you know, decentralized command, unbelievably important, but knowing what your exit is as you're
starting this up, if you're purchasing a business, vitally important that there's just, there isn't
any way around it. I totally agree with
that. I don't want to get too off track, but I feel... You talked about the boomer generation.
This is the... I believe that when we talk about the housing market, which is always just inventory
demand, very straightforward, the business market is exactly the same right now. And it's going to
get really, really... There's going to be a fire sale in the next five to 10 years.
And that's why we're seeing so many, I call them the unsexy businesses. That's the
construction companies, the painting companies, the car washes, the lawyer's offices, the dental
offices, all of these unsexy businesses, which are just being rolled up. They're like, okay,
well now instead of one of these, I have seven of them. And now my EBITDA multiple is instead of a
five, it's a 7X. And it's just so interesting because a lot of it is the, this, the younger,
that's not them. It's their kids. They're like, I don't want to do this, but I'll buy five of them
and sell it to a company that that's all they do. You know? And it, and it's one of those things is
as you have become an experienced entrepreneur and as you have multiple exits, you'll go in and
you'll start hunting these deals. You know, we do it with laundromats. I did it with a cardiologist recently. So you do these things and you acquire multiple
of them and then you walk away. We've got some legislation changing regarding how houses can
be bought. There's going to be some push in that houses can't be bought the same way they were
before. That money's got to go somewhere. And I agree with you with a bazillion percent. It's
going to go into these rolling up of these small businesses, these very unsexy businesses, which are the businesses I adore
more than I could possibly tell you. Cause you get them so much cheaper. Give me the ugliest
thing that is mission critical that can't be exported. Cause you can, you can export all
this other things. You can put the staff over there, but go ahead and try and do your laundry
somewhere else. Try and do the lawn care. No problem. That's outsourced lawn care to India.
How are you going to do that? You're going to ship it along. How are you going to do the lawn care no problem that's outsourced lawn care to india how are you going to do that you're going to how are you going to do that in a hundred percent and it's crazy
people people always want it to be sexy and phenomenal i'm like if i told you that you're
going to sell cow poop cow poop and make a million dollars make a million dollars a year never have
to work i'm selling cow poop you know down here in florida we had wayne haizanga who literally
owned waste management.
And then he ended up buying the Florida Marlins at the time.
We're like, what the hell, dude?
So it was one of those things that was pivotal.
Go, wait, money doesn't have to be pretty.
It just has to be consistent.
As long as I can automate residual income, I'm a happy guy.
I don't care what it is as long as it's legal and it doesn't violate any morals.
I'm a good guy.
So as you're doing this, as you're trying to scale, as you're trying to empty, as you're trying to exit out of these things these please look at things a little bit different when you're
trying to scale but always keep your exits in mind yeah you're spot on oh wait I love that
mini rant I love dude Charles I love you so much this makes me so happy my people I love it um
let's move on to the banking platform so this one's going to be kind of a mini segment. I just added this for one reason. And that's because banking is getting super competitive. The concept of an online bank used to be very scary, especially pending the Silicon Valley Bank Incident last year. But realistically, it is becoming more and more advantageous, especially this is an
example. Ibane, online bank, instant deposit feature, no fees. It's crazy. Biggest problem
with most Shopify stores is you got to wait a couple of days to get the dollars, right? That's
it. And if you're smaller and you don't have amazing cashflow management, or you just need
the money out now to go buy inventory or whatever, this helps a lot. Get it out every single day,
the moment you get paid. The other piece, which I tell a lot of people do this, is keep it in there. It's got a 4% APY,
which is very freaking difficult to beat. It's crazy. It's amazing. But even Apple,
Apple has Apple Bank that's coming out and their APY is, I think it's in the 7%. It's insane.
It's crazy. But I won't spend too much time on this it's
just a footnote you know very very straightforward take a look at it absolutely you know so one of
the things we've talked about also is also credit cards we go into this environment of how you can
use credit cards and how you can leverage it because i call credit cards opm or other people's
money walk me through this how are you doing this and what are the ways that you do it with credit
cards yeah i want to start with just saying like in general, credit cards are like the best
and worst thing to ever happen to society, in my opinion, because they are the most powerful
tool for your business, but also can be the worst thing for your business.
Yeah, credit cards for me are like guns.
Yeah.
Sometimes it could save you or it could kill you.
It's a knife.
If I give a knife to a chef, I'm going to have the greatest meal in the world.
If I give a knife to an absolute psycho, they're going to stab me.
Absolutely.
There is a good and there is a bad.
But being able to leverage credit cards as an OPM or other people's money is a game changer
because there's built-in net features inside of that.
So walk me through how you guys are using credit cards.
Yeah.
I mean, I think I want to start with this because there's one thing that's not on this
slide, which I'll add called plastic.
And this is like the ultimate add-on to any credit card.
The first thing is I want you to imagine the business owner, because I've had this example.
This just happened to me super recently.
I went to a business owner and I said, hey, tell me about your credit card and why we're
spending so much on it.
And why is everything going through there?
And he's like, it's great.
I get 2.5% back on flights, on all of this.
It sounds great.
And what I often see, and you've probably seen this too, I think, that Dave Ramsey talked
about this back in the day all the time, was don't spend money on the credit card just
because you want the rewards.
It makes no sense.
And what I'm showcasing here on the screen is you're going to see four examples of what we call trading rewards or instant gratification for time, aka delayed gratification.
Usually, when we look at here, the Amex Plum card is my favorite example here.
What Amex offers with this, and there's several examples of this, we'll go through them.
What it offers is the business owner is to trade rewards for time.
So we're trading net 30, which is pretty much every credit card for net 60. And I want you
to think about this as net 60. Okay. Well, what does that actually mean? It means that you get
another 30 days until you actually have to pay it, which is a big difference. And most people
will say, well, oh my gosh, but I'm losing my one and a half percent. I'm losing my 1%. And I'm like, I don't think you understand. If you're giving yourself,
let's go back to the, all the way back to the beginning, a savvy business owner
who has the negotiations with their fulfillment, I mean, with their supplier.
Now you've created a pathway that if you're utilizing the credit card along with a supplier
that you're like, well, I actually now I have net
60 from my supplier and now I have net 60 on my credit card, which means now I am selling the
product and I have 30 days until I even have to pay anyone. Right. Which is a huge, huge game
changer. We're talking about this all the time about how do you put the pin back in the grenade?
And the example I always use is, can you sing happy birthday?
Please don't.
But you can.
Most people can sing happy birthday.
And then if I take a grenade, pull the pin out and put it in your hand and say, okay,
now sing me happy birthday, you're probably not going to be able to sing happy birthday
that well.
So it's the idea of how do I put the pin back in the grenade?
And for most business owners, going from a net 30 to a net 60 is the best pin they could
ever possibly get back.
So, and if you're like, oh, well, I'm losing this 1% reward or whatever it is, go make
more money to make up for the reward.
I'd much rather do it that way and put the pin back in their grenade and get more time
because it's the only thing I'll never make more of.
And you spend it like it's going out of style.
I cannot tell you how many times I've had the conversation.
Like, well, I get all these things.
I'm like, you're losing $200,000 a month. It doesn't matter. The 2% rewards do not matter. Absolutely.
Which actually gets me excited about this because the reason why I talk about plastic is usually
when I talk to people about this, they say, well, my supplier doesn't take credit cards.
They say they just don't. They only take ACH or wire. And I'm like, okay, great.
There's this amazing tool out here called Plastic.
What it allows you to do is pay any ACH invoice,
sometimes wire, with a credit card, which is amazing.
And they only charge you 2.5 to 3%,
depending on your credit history, whatever,
which means that you're basically trading those points
directly for those 60 days of money. Even things
you can't pay with credit card, which is just
astounding, right?
And there's a new guy to the stage.
If you look at this, there's one called Ampla.
Ampla is new, but they
let you keep the rewards, which I've never
seen anyone who does this. It lets you keep the rewards
and keep the time. You get 1.5%,
which means that if you're trading
the 1.5%, then you're using
plastic, which is two, two and a half percent. Now you're paying legitimately one point for net 60,
which is 100% game changer. Absolutely. It allows you to survive in a totally different world. It
allows you to do other things and survive the ups and the downs of what the market does.
And people always, again, it goes back to the conversation about the yoga mats. Oh,
I want to save 15 cents. Yeah. What does that 15 cents costing you? What are you going to lose?
Cause I would say, what do you, by saving that 15 cents, what did it actually cost you? Cause
everything has an action. One of the things you talked about is, you know, you've done all these
things and you've had all this. What is an example that you've actually walked through in a recent,
one of your clients, if you're okay with sharing it, where you went in and you said, Hey, this is where
you were. I've got it to 60 to 90 days where they're not having to pay their inventory. They
can sell all this stuff without them costing a dime. That gives kind of these small business
owners. Cause so many are behind the eight ball going, God, I have to save up the money to buy
the inventory. And then I sell the inventory and I got to save up the money. And I'm always behind
the eight ball. And I ended up eating hot dogs at Costco for a dollar 50,
because I can't afford anything else. How do you get to the person where like they can breathe?
How do we help the people for lack of a better term, put the pin back in the grenade so they
can start thinking again, because you're going to make different decisions. The person who's
running on a net 30 is making very different decisions and from a very different place.
And if you're at a net 60 or a net 90,
you have the ability to think and to process data.
So do you have a practical example of one that.
Yeah,
this just happened.
It's so funny.
It is,
it is like groundhog's day every single time.
So this,
this,
this amazing team met about six,
seven months ago,
maybe a little bit longer now,
but came into their business.
They say they sell outdoor and apparel items and they're, seven months ago, maybe a little bit longer now, but came into their business. They sell outdoor and apparel items. And they're really, really imaginative, amazing business
owners who create really cool products. Outdoor and apparel. So a lot of the outdoor stuff is
bigger and heavier. And when I went to them, they were losing roughly $250,000 per month,
which hurts. And when I started looking at it, we went through the same checklist. I'm like,
let's start at the very top. Let's look, let's look at the inventory financing piece of it,
or just the net terms with your supplier and say, well, let's go talk to them and see what's going
on. And the reality is, is their products are big. So they have to order a bunch of them and
then they sit on the shelves and they take up a ton of time and space and it hurts the business
overall. So as we're going through this, I talked to the supplier. I'm like, okay, well,
can you give us net terms?
They said, no, I can't
because your product is way too customized.
It takes a ton of effort.
And so I go back to these founders
and I'm like, well,
this is what we've got to do.
We've got to make this less customized
while still making it really good for you.
Let's use an example of a backpack
that we're sewing on a couple extra buttons
and we're doing a couple things here.
And I said, listen,
if we can get rid of these two features
that I know is really important to you, but is it important to your customer?
We took a survey of the customers. How would you react if we remove these two things?
Small sample size, they said we wouldn't even notice. Now going back to the manufacturer and
said, well, listen, what if we give you an extra 0.5%, 1.5%, and we get rid of this feature?
Can you give us net 30, net 60? And he said,
what I can do is I'll give you, you don't have to pay any of it until it gets to the dock.
And then once it's on the boat, you have to pay 50%. And then when it lands, you have to pay 50%.
And I'm like, that's amazing. Huge difference immediately in the business. And then we start
going through that a little lower. I'm like, okay, what comes next? Again, inventory, let's
go to advertising. Advertising. We got net 30 on a Facebook credit line. Then we wait the extra 14 days. Now it's
net 45. And then we pay it with the Amex Plum card, which is net 60. And I'm like, okay,
instead of having net 45, and they said going from paying every single day, $900,
to now we are paying every 45 days. Then we wrap that under the Amex Plum, which is another 60 days.
So we have 95 days until we're even paying 105 days until we're paying even our Facebook
bill, which means guess what?
We can launch a product.
We can order a product.
We can get it into the 3PL.
We can run the advertising for it and we can sell it now without paying a single dollar
out of the bank account yet, which is just amazing.
Most people don't think.
And the way that this business changed in such a short amount of time is, again, you think, okay, we're losing $250,000 a month.
That must mean inefficient ad spend.
That must mean bad cards.
That must mean things.
At the end of the day, it's not usually that. It's usually it takes too long to sell the product
and you're sitting on bad debt
or you're sitting on inventory
because you need to sell this
before you can buy the next thing
and the next thing and the next thing.
And we got into the very end
and we talked about this briefly.
We got to the very end.
Great, we're positive now.
Now what are we going to do?
We're going to go launch a new product.
We're about to do this.
Great, and how are we going to pay for it? We're going to go launch a new product. We're about to do this. Great. And how are we going to pay for it?
We're going to launch 1,000 of them.
And the first 100 of them get this special axe, basically.
They get an axe with this product.
They get something special with the product that only those first 100 people get.
But they have to order it right now.
And they're not going to get it for 120 days.
And they're paying the full MSRP for it right then and there.
Or the founder's edition MSRP, which that amount is going to pay the 50% for getting it on the
boat. And then once we get it across the ocean and get it on the back and land it, it won't pay
any of that, but that bought us a ton of time. And we're going from negative $250,000 a month
to positive $10,000 a month inside of six months with
no changes in ad spend, no changes in efficiency.
Everything is exactly the same.
We just mapped it out differently.
And it's just amazing to say, well, don't have to fire anybody.
Don't have to change overheads super heavily.
Just need to negotiate with everything you're already doing.
And this just happened.
And it's just like the best feeling in the entire world. It's like nailing the test, getting an A, you know,
98%. Well, I think it goes back to what you said in the very beginning. You know, yeah, sure. There
are some bad business out there, but most of the time it's just bad business owners. And if it's
bad business owners, because they're not educated because they don't have access to the tools or for
most of the time, it's just ego. And I mean, this is the way we've done it. We've always done it
this way. We have to keep doing it this way. Yada, yada, yada. That is a
hurdle that most people run into because they don't have either access to individuals like you,
or they don't have access to this knowledge. So if someone wanted to get access to you to say,
okay, how do we find you? This is amazing. Holy crap. I didn't even know about plum five minutes
ago. This is unreal. There's so many other different things. I mean, we could have kept
going. We've had, we only waited through like 13 or 14 of the 20 something unreal. There's so many other different things. I mean, we could have kept going. We've had, we only made it through like 13 or 14 of the 20 something slides. There's so much
more here that we could have done. And we might end up doing an entire follow-up. That's just this.
But if someone wants to track you down, if they want to get ahold of you, if they want to learn
more of these things, how do they find you? Yeah, man. Um, you know, I hate to say this
because I just love Instagram so much. Uh'm Instagram, Grayson Cross Official, and then GraysonCross.com.
Super, super simple.
But our business, Weekend, you can go WeekendDigital.com.
Super straightforward.
And I am the easiest person in the world to work with.
Just text me.
Legitimately shoot me a message.
I read all of them, every single one.
And if you have a business, you have a problem, I'm a servant.
I've done pretty well so far. I'm not, you know,
I've done pretty well so far. I'm not trying to make a huge dollar amount off of any of this.
I want to help people. So if you have any questions like, Hey, this is the situation I'm in,
what should I do? If it's not going to take like a huge amount of time for me, I'll say, Hey,
this is what I would do based on everything you just told me. This is what I would do.
And I'm got a lot of resources. I can 100% send whoever messages me in.
But the goal here is that I,
we talked about this a couple of times,
I got super lucky.
I think, you know, looking back,
and this is like very kind of emotional for me,
I got super, super lucky.
Dozens and dozens of times.
And I meet people. And I had somebody come into my office. His name is
Hassan. He's an amazing guy. He came in and he said, I will do whatever it takes to work here.
I have very little experience. He came into an office in Sacramento. He wants to be a media
buyer. He says, I will bring you coffees. I will mop your floors. I will do anything if you let
me sit and watch. He's a young guy, super hardworking. And he kicked serious ass and worked super hard.
And when I think about back to the luck factor,
I'm like, was he lucky?
Or did he put himself in the scenario to be lucky?
And I think I had to tell him no like five times.
This kid kept coming to me on Instagram
and showing me up to the office
until I said, okay, fine.
So I think that wrapping it up is just, I'm very, very, very Right. So I think that, and you know, wrapping it up is just,
I'm very, very, very lucky. And I want to create an environment that people who weren't as lucky
can generate luck and surround themselves with an advantage that they already have that they're
unaware of. So that's what I would say. Absolutely. It's giving people a chance.
Let's just give people a chance and show up and be lucky. I can't thank
you enough for coming on. There's so many more questions and so many things we're going to talk
about. Man, I really appreciate it. Thank you so much for being on the show. Thanks, Charles.
Thanks for joining us on today's episode. We hope you've been electrified by our conversation with
Grayson Cross, the business turnaround maestro who's made an art out of transforming financial
nightmares into profit-generating dreams.
I want to extend a massive thank you to Grayson for peeling back the curtain on his game-changing
strategies. Your candidness about the ups and downs of entrepreneurship and your innovative
approaches to cash flow management are truly eye-opening. To our listeners, your hunger for
knowledge and determination to elevate your businesses is what fuels our mission to bring you cutting-edge insights from the trenches of entrepreneurship.
If you're itching to put Grayson's strategies into action, don't miss out on our companion guide.
It breaks down everything we covered today, from negotiating with suppliers to leveraging your superfans, and provides you with step-by-step instructions to implement Grayson's cashflow optimization techniques. Head over to podcast.iamcharleschwartz.com to grab your copy now. Remember in business,
fortune favors the bold and the prepared. Until next time,
keep pushing boundaries and creating your own luck in the world of business.