Living The Red Life - 8 Levels To Building from $0 to $100 Million

Starting point is 00:00:00 And hopefully for a lot of you, you could see where you're at and what's the next couple of levels to come. And that's really important because now you have clarity on what you should be doing. And also, as I went through, I tried to give you the struggles that pretty much everyone faces during those levels. So, you know, A, what's to come. And also when you do have those struggles, you go, okay, well, Rudy said that's expected. That's part of the game of business, right? That's normal. My name is Rudy Moore, host of Living the Red Life podcast. And I'm here to change the way you see your life in your earpiece every single week. If you're ready to start living the red life, ditch the blue pill, take the red pill, join me in Wonderland and change your life. Guys, welcome back to another episode of Living the Red Life. Today,

Starting point is 00:00:39 we're going to talk about different stages and cycles of business, okay? And what it really takes to be successful as you move from that startup zero phase all the way to cycles of business, okay? And what it really takes to be successful as you move from that startup zero phase all the way to hundreds of millions, right? And I broke this down into about eight key levels. I've actually spoke on stage about this. If you're watching on YouTube, I will put up a little slide to show you these eight levels, but let me break them down for you. So the first one is the start, right? Starting the business. The next phase is launching the business. After that, I believe the next phase, phase three, is advertising the business and the products and services. Once you get through those first three phases, the fourth stage is figuring

Starting point is 00:01:17 out consistency, right? You've got a few sales coming in, you're starting to promote your business, but it's not making like 500 or a grand a day or two grand a day, right? You're just like having good days, bad days, good weeks, bad weeks, right? Once you get the consistency, it's like, okay, now I've making two grand a day or a grand a day. How do I scale the business to five grand a day or 10 grand a day? Okay. After that, it's the million dollar level, right? How am I going to make 2 million, 4 million, 5 million, get into that 10 million mark, right? Which is stage seven, the eight figure journey, getting to eight figures, 10 million and beyond. And final level eight, the hundred million, right? Which is a big jump. And you know, you have lots of sub levels from 10 to a hundred million too. So I'm going to focus a little more on the first seven, right? Which is probably what applies to most of you, that zero to 10 million mark. And for a lot of you,

Starting point is 00:02:09 probably the first four or five levels, that zero to 1 million mark. Okay. So when we look at level one, okay, I boil that down to like figuring out the business, the product, crafting an offer, finding a good audience and building your website. Very simple. If we boil it down to what you should be working on, you've got to figure out a good product. Okay, what am I selling? Who am I selling to? The avatar, right? What do they want? What are their pains, their desires? Where do they hang out? Who are they? How do I describe them and understand them? How do I then craft an offer that's attractive to those people based on their pains, desires, and everything about them? And then how do I build a website, a landing page, or some sort of a sales process to promote that? Okay, very simple. Four things

Starting point is 00:02:57 you need. That's really all it is, okay? You don't need a bunch of other stuff. If you figure out your product, craft a good offer to them, understand the audience and what they want, and then build a good sales process for that, you're going to be somewhat successful when you launch, okay? Now, where people struggle in this phase is they don't know how to form a winning offer. An offer that really grabs attention is eye-catching, compelling, very strong, and will be successful to cold traffic. Cold traffic's people that don't know, like, and trust you. They don't follow you. Okay. So how do I actually build this out to cold traffic? Okay. The other way or reason that they struggle is they don't understand all the components that make these irresistible winning offers and products. They might not have a good guarantee. They might not have any urgency. They might not understand how it links to a solution or solves a problem. Okay. They might not have any urgency. They might not understand how it links to a solution or solves a problem, okay? They might not understand their audience. They might not know how to build

Starting point is 00:03:49 the right sales process, have good copy, have good sales, a good sales rep, right? Depending on how you sell it, okay? So they're the kind of key variables in that first level, the startup phase, where most people can go wrong. The good news is I just told you the four things you need and the five or six ways that you could mess up. So if you reverse engineer those 10 points, you probably have a high chance of success out the gate, okay? Or at least way higher than most people or at least higher than when I started 12 years ago. Okay, number two, level two, the launch, okay? How do we now take this and launch it really successfully and get some momentum, okay, well, in the launch phase, you've built everything I just mentioned

Starting point is 00:04:30 above, got that ready, okay, whether it's good or bad is going to dictate success, okay, you have some sort of a product offer, you have some sort of a sales process or landing page, you have the basic tech pieces in place, you've maybe sold it to your Instagram, your social media, your friends, your family. But you haven't really like launched ads and scaled it or kind of got aggressive with advertising. So in this phase, you need to make sure your ducks are in a row, right? You've got a good landing page, maybe some upsells, maybe some follow-up emails. You need to make sure the product's good. And you need to make sure you know how to advertise and promote this to more people

Starting point is 00:05:08 than that little circle of, inner circle of friends, family, associates, followers that you have, because that'll get you a few sales, but it won't let you scale, right? Often here, I see a lot of people, they don't have all their tech set up right. Their pages look crappy on mobile. They don't have a backend. they have no upsells, and they don't really know how to take it from a few sales and scale it. A lot of people get stuck here in this like launch phase where they launch, get a bit of traction, and then it flops. And that's why most people get to less than 100k in their business, okay? Now level three, the ad game, that's where you can start to expand beyond that 100K. So you're starting to get sales, you're starting to launch ads, you've picked Facebook or

Starting point is 00:05:50 TikTok or YouTube to start, whatever platform, right? I like those three. I think Facebook's the best all around to start. Some of the ads are working, some aren't. You're still learning ads, you're learning what's working, what's not. You may be still getting a few organic sales, a bit more traction. You're starting to understand, hey, maybe I need more products now. I'm selling this first product and I've got customers. What else can I sell them to? Right. And then really from here, it's like, how do I track all this? How do I measure it all? How do I keep my ads going, build more products on the back end and really get that consistency? That's what you're looking for as you're getting the ads going is testing them, figuring it out, building all the other pieces around as you go.

Starting point is 00:06:34 Right. And then really like looking, how do I get consistency? Okay. So struggles in this phase is ads don't work. Some ads work, some don't. Maybe they all don't work. Maybe you set them up wrong. Maybe you can't track them. You don't know how to scale the ones that do work. You don't work. Some ads work, some don't. Maybe they all don't work. Maybe you set them up wrong. Maybe you can't track them. You don't know how to scale the ones that do work. You don't know how to read the metrics. You might need to hire someone, maybe a couple of hires. Now you're introducing a whole new element and variable, which is like hiring people, which isn't as scary once you actually go through it. You probably realize, hey, I'm not really making any money advertising and selling that product. So now I need to sell them more products after. OK. And as you can start to hear, there's like, wow, this is like getting serious now, Rudy. Right. You've got like a couple of employees.

Starting point is 00:07:14 You've got ads. You've got ad spend. You've got your landing pages. You've got your first product. You've now got email. You've now got customer service and fulfillment issues. You now have to build more products because you're not making money selling the first product. And you're really just like trying to figure it all out. You're trying to manage all those pieces. You're trying to bring in a couple of hires to help manage all those pieces. But then half of those good hires don't actually end up being good. Now they quit or you fire them and it creates even more work and you lost money on them. And it's like, OK, now you have like kind of a real business. These are all business problems we face, right? And that's really where we go into level four. It's like finding stability and consistency. Okay. So level

Starting point is 00:07:54 four, finding stability and consistency is a goal for every business. Okay. When you get to this phase and really, you know, this is where we really help our clients get to. A lot of the clients I work with one-on-one is when they're our clients get to. A lot of the clients I work with one-on-one is when they're starting to get to this phase, okay, my team have helped them get to this phase and now they're coming to me in our higher level programs, our 50 and 100k program, and we're now like, hey, how do we take this and go to that next level? You've got the foundations in place, right? So in this phase, you might be hitting a grand a day some days um less some days more you're probably on your way between 50 and 100k or 20 30 40k a month on your way to 100k or you can at

Starting point is 00:08:37 least see a path to get there at this point right it's like if i scale my ads i add more products i figure out this fulfillment issue blah blah blah right you've got a bit of a path. You still need work on your ads to get that consistency. You're still toying with ads, trying to get them to be profitable or scalable. You might need to hire an agency or a marketing expert or someone, you know, join one of our masterminds to really get that coaching. that you've got some traction you're probably like starting to um realize there's more to marketing than like one landing page so maybe you're adding in an appointment setter or you're doing some email marketing or you're adding in a lead magnet or you're trying video ads now so you're starting to get a little more creative or at least your agency is or your marketer if you're not the marketer you're a bit

Starting point is 00:09:24 getting more creative with your content your ads if you're not the marketer you're a bit getting more creative with your content your ads and you're probably launching a second product um or you know sometimes you can go all in on one product get it to 100k a month or more most of the time now you've got more than one product because like on the back end right you might have some more products or at least bundles or something so So you're starting to understand like, hey, I can sell this product, sell more here. And you're kind of pulling it all together. And you're really just trying to work on that consistency. You know, you're probably trying to get your revenue to a grand a day. That's a great first goal, right? Hey, can I consistently get to a grand a day? That's 30 grand a month. Okay, great. Now,

Starting point is 00:10:03 how do I double that to 60 grand, right? Which would be two grand a day. You're starting to get those backend sales. So those sales after day one, you might be starting to hire a sales rep or do sales calls yourself or more backend emails and texts. And you're probably starting to track stuff a little better. Hopefully, you know your numbers and you probably have a couple of basic staff, right? A bookkeeper, part-time, a couple of hundred dollars a month, some software or something. Hopefully you have some basic legal contracts, terms and conditions. You know, you probably have a VA or someone doing customer service. So you start to build out some of the basics of the team. And then the last three levels is where it gets fun for me at least where I really specialize is like scaling right so level five is scaling and what that looks like is the business is serious

Starting point is 00:10:51 now right we're at that million or we're very close we're like uh all in on like not only getting to that million but like okay now I have a real company I can go to two million three million five million right you have those bigger goals. Your ads are working. Obviously, with ads, you have some good days, bad days, but your ads are working. You're adding in organic content. You may be getting affiliates or on podcasts or joint ventures or trying YouTube and Facebook now and Google. So you're starting to get more creative with what we call marketing channels, okay? You've got a good product, you've got a good offer if you get into a million dollars, right? You're probably getting more back-end sales, so sales after day one now. You've probably got a few staff, right? Five, ten staff, maybe more, maybe less. You're starting to build a bit of a customer base too. You're starting to get customers that kind of

Starting point is 00:11:39 start to form that tribe, right? Which is the long-term approach. And you're probably more excited because you've got through that early gray area phase where a lot of businesses fail and a lot of entrepreneurs simply never get past. So that's exciting. Okay. And then, as you go into this phase, you're like struggling to maintain growth, you're struggling to juggle all the hats, your ad costs are going up, your ads are inconsistent, you're struggling with team, you might be burning out because you're trying to do everything. You're keeping your clients happy. You have a lot of growing pains, but also a lot of opportunities.

Starting point is 00:12:11 So you have like shiny object syndrome. Oh, I could try these ads and try this and launch this product and do this and hire this person. So you're struggling with all those expansion things. But yes, this is an exciting phase. And if you're in this phase, try and work through all those things, right? Like try and work out how am I going to maintain my growth, deal with ad cost spike and manage my team. This is where systems, frameworks, KPIs become really, really important. Okay. Now the last couple of phases past the million, right? The million to the, you know,

Starting point is 00:12:42 million towards two or three million, okay, a year in revenue. It is similar, right? It's similar. You're maybe starting to join masterminds, travel to events, build a bigger team, starting to have a high-headed department, right? You're starting to build SOPs. You're trying agencies out. So you get in that more advanced phase where you're actually becoming more of a CEO, but

Starting point is 00:13:03 you're still in the weeds doing a lot, but you're still now trying to become more of a CEO and a leader and manage all these chess pieces on the chessboard, right? And where I see a lot of entrepreneurs get stuck around that one, two, three, four million dollar mark because they don't know how to scale. They don't know how to manage team systems, frameworks. They don't know how to expand while keeping the old stuff running. And then they get into all the things about handling tax and legal and entity structure and having big inflated costs and bad months. And now cash flow becomes an issue. So these are the problems you're going to deal with as you're going past that first million into the next few million. OK. And the final

Starting point is 00:13:41 couple of phases is like the eight figure phase. right? So you're at eight figures now or very close. You're spending, and this is kind of what, you know, these last two phases, what I work on in my own businesses is most of your day is about the brand, the people, the team. You're more of a visionary. You're doing what I call idea management where you're really juggling and shuffling ideas and people around. You're focused on execution and systems. You're focused on protecting your own time. You're probably innovating, creating partnerships and products and putting out fires, right? Like that's a lot of my days, those things I just mentioned right there. And general struggles, right? As you get past the 10 million mark is like protecting your time i'm pretty good at that like

Starting point is 00:14:25 every few months i clear out a lot of stuff and say no to a lot of stuff and i have a big team um but yeah you're struggling with time you're struggling to maintain consistency as you step out because when you step out and appoint other people to it they're generally watered down versions right so if you're really good at ads and you bring in a media buyer probably not quite quite as good at running the ads. So now the ads don't perform as well, okay? So you're struggling with maintaining standards as you step out more and more. You're struggling with teams. You're going to have a bigger team. You're going to have people quitting all the time and people you have to get rid of and people not following systems. So the team starts to become more of a thing when you get to that 10 million plus, because you probably have 20, 30, 40, 50, 60 staff, right? You'll have some agencies,

Starting point is 00:15:10 some vendors, legal, and you'll have a lot of opportunity costs where people are running projects and they're failing. So, you know, I've got a long list of things we tried and did. It cost 20 grand there, 50 grand there, 10 grand there, 5 grand there, 12 grand there, things that just didn't work out. And, you know, you kind of go in hindsight, well, if I was involved watching it would have worked out or I wouldn't have done it. But that's part of growing a business, right? Like I just saw Apple, I think announced that they're closing down the car division, right? So Apple were building a car kind of like Tesla, and they just closed it down, and they've spent billions of dollars developing this car aspect of the business, and they've closed down that whole division as of now. So like, even when you become the biggest companies

Starting point is 00:15:55 in the world, you're going to have these opportunity costs and loss leaders, right? And at this point, you know, hopefully you're making good profit, but you're probably like me, reinvesting a lot of it into all the things you want to do and all the ways you want to expand. OK, and the final level is kind of, you know, the level I'm on at this point in my journey and learning. Right. So I don't pretend to be an expert. You know, I've ran companies doing up to 10 million dollars a month, but I've never you know, I've not been doing $400 million in annual revenue for five years. So I'm still learning as I go through this phase, obviously getting to that 100 million beyond very few people have done. But when you you know, you're in that that mid phase, right?

Starting point is 00:16:37 It's a lot of you know, I ran a company with 300 staff, right? So I was managing divisions, working with a C suite basically all day, looking at big I was managing divisions, working with a C-suite basically all day, looking at big opportunities, big partnerships, maybe working on mergers and acquisitions, buying companies, working with the finance team, looking at major partnerships. I was out networking and traveling a lot, working with big vendors, working on culture, working on vision, working with the legal. So that's like the glitz and the glam, I guess, when you are working towards that 100 million. Obviously, everyone's going to vary and stick to their superpower, but that's kind of how it looks. So I hope you enjoyed kind of going through all of those levels,

Starting point is 00:17:22 right? And hopefully for a lot of you, you could see where you're at and what's the next couple of levels to come. And that's really important because now you have clarity on what you should be doing. And also, as I went through, I tried to give you the struggles that pretty much everyone faces during those levels. So, you know, A, what's to come. And also when you do have those struggles, you go, okay, well, Rudy said that's expected. That's part of the game of business, right? That's normal. So don't worry if you're going through all this and you have these struggles and everything. It's like, it's part of the game. It's going to happen. And really just look at where you're at. Okay. Make sure you've covered everything in levels before you, because if not, you're going to be carrying those through late and then it's going to back you up

Starting point is 00:18:03 and then know what's to come, right? And how you can handle it, tackle it and what's to come. So there you have it. That's the levels to the game of business. And I hope all of you get to that fun, you know, six, seven and eight level, right? Where you're making millions of dollars, you're impacting thousands of people, you have an amazing brand and business. And if you follow all those steps, I think you can get there, right? It might take you years to get there. That's business. It if you follow all those steps, I think you can get there, right? It might take you years to get there. That's business. It does take time, okay? There's no overnight success. But if you follow the steps, hire a good mentor, follow a system, I guarantee you will make progression in this game. It's a fun game. It's the game of entrepreneurship and business. And

Starting point is 00:18:40 until next time, keep living the red life. See you soon.

Living The Red Life - 8 Levels To Building from $0 to $100 Million

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