The Game with Alex Hormozi - My Business Isn’t Growing. What Do I Fix? | Ep 891

Episode Date: July 31, 2025

In this Q&A, Alex (@AlexHormozi) answers real questions from entrepreneurs at every stage from how to hire your first team member to whether it’s time to quit and start over. He tackles pricing ...strategy, customer churn, partner dynamics, and what to do when growth stalls. Just tactical answers from someone who’s actually built and scaled real businesses.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast, you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.Wanna scale your business? Click here.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | AcquisitionMentioned in this episode:Get access to the free $100M Scaling Roadmap at www.acquisition.com/roadmap

Transcript
Discussion (0)
Starting point is 00:00:01 The other piece that I will tell you that is worth writing down is that we need to be reminded more than we need to be taught. That goes double for your audience. Maybe some of you guys watch some of my content. You've probably heard me say, work more before. And yet, when you see the seventh video of that in a slightly different context, it's like, well, I kind of wanted the reminder. Please, happy welcome, author of the $100 million offers leads and soon-to-be money models. Alex are buzzing. How are you doing today?
Starting point is 00:00:33 Good. Good morning so far. Yes. Very tactical. Awesome. I appreciate that. So I normally do a little bit of a preamble, just kind of top of mind stuff. I feel like it's more common that we will keep our goal the same,
Starting point is 00:00:46 then be unwilling to change ourselves to accomplish it. And so we just stay on the same path when we know we should probably be doing something different than we currently are. It's just something I'm thinking about. Like I heard the last bit of, you know, you've got a bunch of stuff that's in your way. It's like, well, if you had to accomplish the goal, you probably do something a little bit different than you are. And I think rather than saying, you know what, the path I'm currently on will
Starting point is 00:01:07 ever accomplished my goal. We kind of mentally masturbate to the idea that we have this goal, but our actions don't align to it, just because it's very easy to say and much harder to do to change you. So you don't change your goal. You also don't change you. And so you just stay there, basically doing nothing. It's just something that I've observed on a continuous basis. And in having a lot of these discussions, I've had kind of the unique benefit of seeing the common mistakes that are made as business owners, kind of at all levels. And they're thematic, meaning they're very strategic in nature, less tactical, because a lot of times, like, for sure, tactics, we can help you have all that stuff. But the big things that move the business are going to be the
Starting point is 00:01:44 decisions that sometimes are just left unmade. And typically that is what slows the decision down more than anything else. And so right now, you probably have some decisions you need to make. And the amount of time you choose to deliberate can take weeks, months, years, and sometimes you just never make the decision so you stay the same. And so I see a lot of businesses stuck in those places because there's typically rock and hard place scenarios where you either choose short-term pain today or long-term pain that's just slightly less painful than the short-term pain, which is why I think people get stuck in these ruts. And so just by show of hands, who here is in around the same revenue they were last year? Okay, keep your heads up. Would you guys like to change that? Yeah? Okay. So these are kind of the
Starting point is 00:02:28 seven rock and hard play scenarios that I see with founders in general. The first is focus. I talk about a lot. I have, you know, a laundromat, a real estate business, any commerce company, like, whatever, right? Like, and they all somehow work together, but like, let's be real. No, they don't. I mean, just in that they have customers and customers have money and money, you know, combines all the businesses, sort of. But for the most part, it's like, you need to fix one thing and go all in on it. The difficulty is that when you have, quote, two businesses are more than one business that's kind of live at one time, the short term pain is that you're going to see a dip in revenue because you're going to lose the revenue from the one that you choose to give up.
Starting point is 00:03:04 So you either have that or you have the long-term persistent, not achieving of goals. The next one is over-expansion. So this is the classic, like, I had one location, it was doing well. And so then I opened up a second location and I took the best person from my first location, put it over there. My first location dropped to here. My second location didn't get up to my first one. And that pretty much destroyed two-thirds of my margin.
Starting point is 00:03:26 But now I have two times one-third of the margin. I'm making about a little bit less. than I was before with two times the liability. And so I think the solution is I should open up a third location, right? Which whenever, like to be clear, every business needs to expand. So how are you, quote, over expanded? It's easy to say that, but the reality is that you're just under talented, meaning that the team that you have is just not sufficient. If you had two rock stars or somebody who's better than you at the first location, then it'd be fine for you to open up the second one. But it might be a model issue or a cash flow issue that prevents you from getting the talent that
Starting point is 00:03:56 you need, which ultimately is what's keeping you stuck. So in this situation, again, what do you do? do you kill the second location? It's like, well, that kind of hurts. On the flip side, it's like, or do you just give up all of your profit for a year or two in order to get somebody else in? Also a risk. So what do you do? You just stay the same because it's easier. The next is a compensation, which can be over or under. So I'll give an example. Physical therapy clinic came here, doing really well. All the beds were full. You know, all the therapists were staffed up. Just wasn't making any money. And so, you know, after a couple questions, it was like, oh, well, you know, I do a rev share with my therapist. I was like, oh, okay, well, how.
Starting point is 00:04:30 how much? She was like, well, 50%. I was like, okay. Well, are they like kind of like a hair salon? Like they just rent a chair or a room and then they handle everything else. She's like, no, I spend the money to get customers. I close them. I out for the facilities. I'm the one who cleans everything. They just show up and do work. And I was like, well, yeah, you're running the entire business on half your market. And there's just nothing left, right? You know, that's an example of a compensation issue. Another one very common is underpriced. I bet over half of you guys are underpriced. And I think the reason there is, again, it's the same rock and hard play scenario. Well, under compensation, underpriced, equal side of the same coin. What's for employees,
Starting point is 00:05:05 one's for customers. But if I tell my staff that I have to change their competition, I'm going to lose my team. But if I don't, then I'm never going to make money. Underpriced, same, same. If I raise my prices, then I'm going to lose my customers. But if I don't, I'm not going to make money. Let's see. What is my S here? Ah, thank you. Single product, which is like you have a business where you have one thing, that's it. And you do that thing relatively profitable. profitably, but over time, your margins continue to shrink. And so then you're like, well, I guess I should just start another business when maybe you just need to sell those people something else, having a back end. The next one is Avatar. This is again, classic rock and heartplace. Well,
Starting point is 00:05:41 I have to accept everybody who has a pulse on a credit card. Really, the pulse is optional. But I have to accept these people. And if I don't, I won't be able to make payroll next month. But I do need to get more narrow and more focused on my services and who I'm servicing and the messaging around it and the pricing that goes with it in my actual delivery. But if I do that, I'll lose money in the short term. Right. And so then we stay again in this rock and hard place scenario. And this last one was the last one I added to this list, which is data. There's not really a rock and hard place scenario here. More so that I guess the rock and hard places, you need data, but the resources and time it takes you get data, you're unable to do because you don't have data. And so you're like, well, how do I expend the resources to collect the data and forego my short term goals of putting out fires and growing? It's like, well, you can't grow because you don't have the information to make the bets you need to make. So these are just kind of seven recurring themes I've seen. I saw a bunch of you guys nodding your heads.
Starting point is 00:06:31 As we go through the Q&As, I will do one of these so that, you know, we can kind of beat in on it together. With that being said, that's rock and roll. I'm guessing your yoga clinic instructor. The doctor. Yes. I should have gone with doctor. That would have been better.
Starting point is 00:06:46 So my name's Colton. We sell tattoos to tattoo clients. Doing about $4 million in revenue. I'd love to be at $35 million of revenue. And what's stopping us is focus. So we've got multiple parts of the business. Stop me if you've heard this before. We do the tattoos.
Starting point is 00:07:02 We also have continued education for other tattoo artists. And what I was alluding to earlier, I've started to get into coaching studio owners and things like that. And so Ed was talking about maybe doing something like gym launch for tattoo industry. Yeah. So, yeah. So normally I wouldn't recommend doing something like Jim Launch because Jim Launch was a unique situation. It's actually similar to tattoos in that. Probably tattoos actually been more in that direction because it's so dependent on the skill of the operator or the artists that are in each shop.
Starting point is 00:07:33 Unless you are absolutely like mechanized it. So it doesn't matter if anyone's good. Like there's 100 tattoos that everyone gets. I don't know. Is that true? No. Okay. Yeah.
Starting point is 00:07:40 I don't know about that part. So what's the goal? The goal is to have a company that I can exit. Okay. So you want to exit. So these are conflicting. Very, very tough to exit a business that's like that. It was unique for us and very difficult to do that, mostly because it's very difficult.
Starting point is 00:07:54 mostly because it's very face driven. And so people don't typically, like, unless it just over time becomes, you know, Jim Lunch became its own brand. That it was like I stepped out the back door for almost two years leading into the sale where I wasn't involved in delivery or even the last 18 months for the, for the ad side. So you can do it. It's just significantly harder than you might expect and profitability will take a hit. But let's outline the decision paths. So you have number one, go into the kind of information, et cetera, space. Very difficult to sell. You will make more money in the short term. The second option is that you just continue to grow corporate and build a large brand. And then that will for sure be easier to sell when you come to sell, but it will take longer to get
Starting point is 00:08:32 there. I don't really think there's an option three. So which of these sounds more tasty to you? It all sounds good to me. The only, when I'm thinking about scaling the studio side of things, I would need a lot of studios, which is just a lot of personnel. It's like 20 people per studio, you know, so I mean. Pend Express has 2,600 locations. Yeah, that's true. Yeah. I mean, I really, really be happy with any of them, I think. Well, then which one are you going to do? So should I not do gym lodge for tattoos? No, I'm thinking you can.
Starting point is 00:09:02 It's like, that's what the thing is, is that either way you're going to have to shoot a kid in the head. Yeah. I know. Aggressive? Maybe multiple. Well, it feels that way. I imagine.
Starting point is 00:09:10 You know what I mean? It's like this spawn that you created and you're like, you made it in your own image, you know? Yeah. And it hurts. It hurts a lot. Has anyone here ever shut a business down before? Painful as shit.
Starting point is 00:09:21 Like, so much harder than starting one. Because I'm assuming to pursue one of the other options, I'd have to shut the studio down. Yeah. Yeah. Now, there's the narrative that you're saying, well, isn't it good that I have these studios that I can prove that I'm legit? Nope. Nope. It doesn't matter.
Starting point is 00:09:41 I owned exactly zero gyms when I had Jimwatch. I had six prior, but zero when I did it so that I could focus on Jim Watch. Yeah. Makes sense. So which direction are you going in? I think the educational or the tattoo studio owner facing thing. So here's the thing. You will make more money over, like let's paint it out over 10 years, right?
Starting point is 00:10:01 Like over 10 years, you'll make more money every year. You just won't make as much the last year. And so there's a lot of romanticism around selling a company and as somebody who has done it. I can appreciate it. But the thing is, is like, I don't see one way it's right or wrong. If you offered somebody, hey, would you like to make a, like when you're 85 years old and you look back, would you be happier that you made a, um, just making up numbers, $3 million a year in personal income for 10 years, or basically made
Starting point is 00:10:29 $100,000 a year for 10 years and then made 50 on the last year in your 30s or 40s, whatever, pick your number. I don't know. When you look back, I mean, it's 10 years of living. So I'm not as polar on the decision. It's totally personal. But if you do want an exit, then the corporate path is the way. If you want to make more money, then the, you, gym launch version is probably a better path, which I don't normally say, but just because of how difficult it is to attract star artists and that being kind of the core of the delivery, I could imagine wrapping their model in something that you have. And then ultimately, what you'll have to weave in is the things that make it sticky. And that's why Jim launch was able to win. Because basically everything
Starting point is 00:11:12 in education, what makes it so difficult to sell and also honestly to run is that once someone has gotten your secret or your bag of tricks, then what? You have to have consumables. And so That's one of the things that we can help you with, but like putting the consumables in there so that it does stick and that's what's going to drive LTV long term, putting the sales motion to place, all that kind of stuff is different. But ultimately the thing that's going to make it work. Cool. Awesome. Thank you. Rock and roll. Thank you. A doctor of the year. My name's Tony Cooper and I sell plumbing and air conditioning to residential customers. And I would like to, we're currently doing around, we'll pay them for 15 million this year. And I'd like to be at 40 million. And what is stopping me is the chaos. We, we, we, we're currently. I recently hired two new leaders from outside the industry, and we went from $4 million to $8 million to $11 million. We're pacing for $15 now.
Starting point is 00:11:59 Awesome. The chaos. I'm worried about the over-expansion or just because we're making a lot of errors. Our profits are staying level, and I expected them to go up. But we're not. We're growing top line and we're just flat. We're just chewing up a lot of mistakes. Yeah.
Starting point is 00:12:15 Why the aggressive growth pace? It's actually, I'm kind of bent more towards perfection and going slower. The guys that I hired are from outside the industry. They're just top line revenue driven and it's almost like they, we just keep driving it. And it's working and I'm making more absolute dollars than I could have imagined when I first hired him. So it's a good thing, but I'm wondering if they'll be. In that or, I mean, because you're netting two, right? You're 10%? No. Yeah, we're netting about, you're at 14% right now. We landed last year 50.15.0. And we're like 16 something whenever I at the four million mark. So we're staying flat net, but the gross dollar is
Starting point is 00:12:55 coming to me. I'm the single owner. Everything's paid off. We're not acquiring debt to grow. So I'm stacking up money, but I'm just wondering if we're going to make a mistake that rams it backwards. What are those guys compensated on? Net. And they're driving top line? It's just how they're built, I guess. They're driving top line. And I, the guy that's the biggest driver, he really, I just, just in love with big numbers. He's come from the corporate world where they, did hundreds of millions of dollars and that's what he's about yeah so your issue one is data i'll bet unless you have real-time gross operating margins on each of your product lines because by doing that you'll be able to drive ebidiveter through the roof and in your business being tax
Starting point is 00:13:39 efficient is actually super achievable do you have a good um cfo i don't know i don't think we do i would more more of that function my background's kind of accounting as well so i'm kind of a little bit lent that way. Okay. Are you, do you want to exit it or what do you want to do? I just want to grow it. I want a good running business that's just a cash cow and kind of a lifestyle business. That's what I want. Okay. Well, what if you said our goal this year is to not increase top line at all and to triple bottom line? Yeah, I like that. I feel like, yeah, that's chill. Yeah. No, I like that. That would be perfectly happy with 15 million and run 30% in that. Yeah. Yeah, because I mean, if you're at 13, 14%, or whichever one it is. If you're around there, I would for sure, like, you for sure, I'd be targeting
Starting point is 00:14:26 plus 30 minimum. I don't pay much attention to industry averages, mostly because, like, American averages is like fat, overweight and divorce. So like, why would I care about industry averages? I kind of take the same position with, with most service businesses. I'm going to bet right now that you probably have some sales motion that can be improved and probably some pricing that can get optimized. That would improve cash flow. Basically, the sequence goes like this. It's like, Okay, we have to look at the sales motion so that we can fix the pricing and packaging of each of the services, so that we can generate sufficient cash flow, so that we can get the talent that we need so that we can shore up the infrastructure. And so that would probably be the sequence that I would do it in.
Starting point is 00:15:06 And then I would set the years goal. Like, here's our four-part plan. This is what we're doing for next year. And this is how we're going to go from, you know, whatever, two and change or three-in-change, whatever it is, to, you know, six in EBITA. Fair enough. Congratulations on the business, though. Rocking and rolling. Cool.
Starting point is 00:15:20 My name's Ricky. I sell coaching to real estate agents. I do two and a half million in revenue. I say I, well, it's really I because I'm an entrepreneur. I have no employees. Everything is 100% organic. I'd like to double it. What's stopping me? That's a good question.
Starting point is 00:15:36 Your boy, Ed, he seems to think, he's real passionate, too. He seems to think I could be just super famous. And he's like, you need a brand manager. Yeah. And so, you know, he's like, you need somebody that has already. kind of achieve that with someone else. Yeah. So I guess my question is, how do I find that person?
Starting point is 00:15:55 Because 99% of the stuff out there is scams. Yeah. It was totally that kind of thing. And I would even define them as scams. I just people with that are not that competent. I think it comes down to deception, whether they intended to see or just aren't that good. But back to your point. I agree.
Starting point is 00:16:07 So fundamentally, if you want to just make more money and you are a brand that promotes itself, then you need to advertise more. Are you constrained on your delivery? Delivery as far as the fulfillment? Yeah. No, it's group coaching. It's easy. So you could double the amount of customers you have right now and it wish we had.
Starting point is 00:16:23 It would be quadruple, yeah. Okay, well, then yeah. I mean, this is a pure advertising play. You probably, I mean. I'm interviewing sales guys and I'm looking at paid ads like hiring people. Yeah, that's like I'm getting into that. Yeah, the paid side is going to give you, call it like a one time three to five X off of a baseline, not a promise or guarantee.
Starting point is 00:16:41 Just saying like that's, that's what I would say is kind of typical if you've gotten to this point off of just organic. Obviously, we can help you with that stuff. but like the long term kind of like well that you need to keep digging is you want to so think about like this so you have just imagine this is your audience right now you're monetizing these people right the people who are just like super hot they love you forever and you continue to promote and you know this gets filled up with new eyeballs and then they come up because they see your stuff and then they give you money yay right when you start doing if you do more organic and do it across more platforms do it more consistently, do with higher volume, do with higher quality.
Starting point is 00:17:18 That we're going to do is you're going to grow this, this base. This percentage will stay about the same, but now it's going to go to here. Right. So then that dollar sign goes out. That's a great long-term play. And you just want to keep growing the pyramid. What ads will do is that ads will keep this the same and then it'll move this line down. And so you want to do both.
Starting point is 00:17:36 So like in the short term, if I was like, how do I, like, double your business? It's like, that wouldn't be that difficult. I would just be like, cool, just pull the ad lever. It's done. But if we're looking at a 10-year horizon, then I would say, well, we need you do both of these in parallel. We need to continue to plant the seeds and then the ads kind of reach off the top and skim. That makes sense?
Starting point is 00:17:55 Yeah, for sure. So how do you find an ad manager? I mean, I mean, I mean a brand manager. So that, that's good. Yeah. The best thing. I mean, I just, we just poach. We just, I mean, just outreach.
Starting point is 00:18:06 Hey, you've crushed it with so and so. Can I pay you more to do it here? Right. And sends to where I guess, how do you realize who those people are to poach? Like who look at the brands that you admire and then reach out to the. them and offer them more money to do it for you. But you see the brand, but you don't really know who's behind the brand. LinkedIn, like, Franken Hut, like, yeah, solvable.
Starting point is 00:18:28 Gotcha. For sure, solvable. Yeah, I mean, and most of the people who are really good at media stuff do have some presence anyways on their own, so they don't make themselves invisible. Like, you could probably chat GPT search who are the people who are involved with that. Here's my question. Like, like, is that something that could be outsourced? You mean recruiting?
Starting point is 00:18:46 No, no, no, no. and not the recruiting part, like the brand manager part. No, I wouldn't recommend it. Yeah. Bring somebody in house. So what are the core things to the business? So for every business, you have attraction, you've got conversion, you've got delivery, right? Those are the things that are core to every business.
Starting point is 00:18:59 IT, recruiting, finance, I see all of these functions as ancillary that aren't core to value creation for the customer. There are things that must occur for the business to continue to be a business, but not things that are core for you value to be created. And so for you, your brand is arguably the most important asset that you have. have and for sure would not be something that I would outsource. So bring somebody in house, working directly for me. Yeah, I would poach somebody. Obviously, we've done. We've hired a lot of media people. You know, I'll be with that. But beyond that, I would probably,
Starting point is 00:19:26 if I'm doing order of ops, you'll probably be, because the thing is, is right now, are you selling, you're selling, who's doing the sales? Well, so I do it in a challenge. Okay, it's the only time I offer it, you know, you do one to money, one, buy a day thing, something like that. Yeah, okay. And so I'm going to switch to book a call, I'm a single sell guy, club, and do it on a recurring kind of evergreen basis or still do it in this long? I'll do it both. I'll do both. Yeah.
Starting point is 00:19:50 But, okay, but you're selling straight to checkout. Got it. Yeah, that motion, um, as soon as you turn on ads is going to break in all likelihood because it's totally different selling to cold than is to warm. And so the one is break, you will not convert the same percentage I really do. Yeah, no doubt. No doubt. Buy a lot.
Starting point is 00:20:08 And so the whole, the economics of the entire funnel will change. And so that'll take some adjustment in motion. So just more like preparing you for that because that's what comes next. Yeah. So high level recruiting for brand manager, that's going to start building the base. And then ads plus sales motion are going to have to come in tandem because they both have to be good. The ads have to be good and the sales motion has to be good. If the ads are great and the sales motion sucks, it won't work. It's salesmanship great and the ads suck. It won't work. Cool. That makes sense for next step. Yeah. Yeah. Go to LinkedIn and poach somebody. Got it. I highly recommend
Starting point is 00:20:38 outbound for high level roles, by the way. Like your stars, one, already have a job and two, we're not looking on Craigslist. That answers one of my questions. Real quick, guys, I have a special, special gift for you for being loyal listeners of the podcast. Layla and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business. So you've got marketing, you've got sales, you've got product, you've got customer success,
Starting point is 00:21:09 you've got IT, you've got recruiting, you've got HR, you've got finance. And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages for each of the stages. Once you enter the questions, it will tell you exactly where you're at and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com forward slash roadmap, R-O-A-D map, roadmap. Bingo. My name's Austin. I am a chiropractor. We do right around 2.4. I've been stuck there for five years. I'd like to get to 3.6.
Starting point is 00:21:53 We've been at the swamp. Stock are growing over five years. We've been at 2.4. 5 years. Yep. And so I don't know what's stopping us. I'd like to get out of the swamp. Heard. And then profit margins, you're at 30% right? Yes, sir. Yeah. Okay. I remember seeing 600,000 as a profit number. I don't if that's still accurate. Okay. Okay. So you have 600,000 in profit and you want to partner? You're 100%. 100%. Okay. Well, what do you want to, you just want to, like, what do you want to have happen? Do you want to, like, what do you want to do? Do you want to go to many locations? No, I want to, I want to grow a main big location. Okay. Okay. You know, create a space for family to eventually. I mean, growing there. If they're, if they don't want to do that, then that would probably change my goal to be in an exit. Okay. Which is your square footage?
Starting point is 00:22:35 Right now we have 7, 700. Okay. So decently large. Yeah, we occupy about. Yeah, we occupy about 4,700 of it. Okay, got it. And so are you at capacity within the space right now? No. We used to have a supply issue till about two weeks ago. Oh, right. And then we hired another doctor. So now it's become a demand issue. Mm-hmm. That's where we're at now. So how do you get faster more staff? We, our highest is referral. Then we get about the next highest would be paid ads through Facebook. What percentage are ads? We do probably about 20% from ads. About half is from referrals another 20% is from Google. Okay. So you separate meta ads from Google ads when you talk about ads? Yep. Okay. We don't actually currently do Google ads, but that's where they said they came from.
Starting point is 00:23:22 Herd. Got it. Which I would probably see this word of mouth. Like I Googled you or Google somebody here. It's probably SEO, something like that. Okay. Okay. So two and a half million, like what stops you from just spending more money on meta ads? Trust that we're doing it right. Are you mailing more money than you put in? Yeah. Well, so you might have one of daily eyes, which is that we need attribution tracking so that you can know if you're putting a dollar in and getting $5 or $10 or $20 back out. We have no clue. But as soon as you have the attribution tracking, because fundamentally, what you lack right now is an input output equation for the business to grow. And so every business needs to know, what are the core actions that I do that increase how much money I make. And if you can't define that for the business, then for sure your shit, your employees don't know what it is. If you don't know what it is, right? And so for you, if you are not supply constrained and your demand constraint, that means lead generation is the issue. If lead generation is the issue, what's the activity? The activity is going to either be, I'm going to be making content. I'm going to be getting affiliates that are going to be promoting my shit for me. I'm going to be running paid debts.
Starting point is 00:24:17 Right. There's going to be kind of like the bigger buckets that you're going to be going to be going to and then you get people who do those things on your behalf. And so right now, do you make content? Yes, sir. Okay. What percentage comes from that? We just started it about two months ago. How much do you do? I'm not going to tell you to do more. I'm just curious. We do four videos that gets created into short and long per week. four videos for the month. And that's proof. Yeah.
Starting point is 00:24:41 Don't, yeah. Chop it up. Okay, got it. Okay. So you've got four longs and you chop this into little shorts and things like that.
Starting point is 00:24:46 Okay. Got it. All right. So short term, long term. Short term, we got to get the data tracking in place. Second step is going to be the ads funnel in place and kind of like
Starting point is 00:24:54 what the sales motion is behind that. For local, the good news is that it's easy to do. Because there's already so much trust locally that you don't need to have nearly the complexity of kind of like the funnels and indoctrination and education prior to someone making a purchasing decision, you can pretty much just like one call closed, two conversation close anybody, even at very high ticket numbers, which is one of the benefits of local. The downside of local is that you've got a market that's this big.
Starting point is 00:25:18 That's the downside, right? So if you don't want to expand markets, then you need to dominate the market you're in. And so it's going to be a multi-prong approach. And it's kind of like I was saying earlier, like we're going to start with ads because that'll just get you more in because I'm guessing right now, if you have a good reputation and good brand, then the ads will actually help you more than they would help somebody who doesn't have that footprint, but then we're going to start probably layering in the content as the second kind of the well that needs to continue to get dug. Again, this is going to be long term,
Starting point is 00:25:43 and so you're going to want to be a thought leader. And then what happens is that if you can, if you can succeed at building the brand long term, and it sounds like you're a more long term guy, so I'll speak in these terms. What happens is your radius actually continues to expand. And so if you take into the natural extreme, you can go to the Amen Clinic in New York or what I think it's in New York, because they have a national reputation, but people fly there. And so that's how, that's what it looks like as you continue to expand the brand, because people will just be more willing to travel to you and pay premium prices, which I'm sure if we looked under hood, the prices probably get tweaked too.
Starting point is 00:26:13 But like those are some things. And if you're in the swamp, cash flow is actually the biggest thing that you need. And so again, the pricing and packaging is probably like, again, if I was the order of operations, pricing and packaging were probably number one. So we could free up cash flow. The freed up cash flow, we'd then funnel into the ad so that we could get date, well, date attribution. Then we'd put the ads in place, putting flow through there.
Starting point is 00:26:32 And then the baseline that happens after that is we're just going to increase the cadence on the content that demonstrates thought leadership. That's the path. That makes sense. Thank you. We're having trouble also hiring good, high quality doctors in Wyoming. It's actually ladders up with the first problem, cash flow. We need to fix the pricing so that we can generate more cash flow, so that we can pay doctors,
Starting point is 00:26:53 so that we can actually get the business to not rely on you as much. Oh, appreciate you. Thank you. Yeah. Happy to help. Alex. I'm Rob Jenkins. Hello, sir.
Starting point is 00:27:02 Hey, uh, I'm a 25 year recovering attorney. I have a very specialized practice. I'm so sorry, my condolences. We serve as an officer of the court for judges throughout Texas. Uh-huh. About 1,400 judges, 250 counties. Our revenue currently is standing at $15 million. Okay.
Starting point is 00:27:18 74% profit margin. Okay. Based on a proprietary piece of software we developed. I'd like the revenue to get to $20 million. It's a nice round number. Me too. And it's progressing that. For both of us.
Starting point is 00:27:30 Yeah. It's progressing that way. So what's stopping me is, we have conquered the market in Texas. We are number one by a large magnitude. Number two, three, and four combined still don't do what we do. And so we're about half of the entire industry
Starting point is 00:27:46 in the state of Texas. So where we are now is this crossroads of, we have solid relationships with five of the seven whales that could possibly exist in Texas. And the whales being the law firms that ask the judge to appoint a receiver. We have relationship, like I said, lock down relationships,
Starting point is 00:28:04 with five out of the seven. There's two that we will choose not to serve. Yeah. Dicks. So we just don't align. Yeah. Our values come out again. So we're kind of at this crossroads of do we go to another state?
Starting point is 00:28:19 Mm-hmm. Or, as kind of came from yesterday's discussions, perhaps I go out and do some whale hunting and bring some new whales into Texas. And so, meaning find other national, big high-volume law firms that choose not to do business in Texas because Texas is a tough state to practice it. And so it's really that fork in the road of what makes more sense. We're a single business building operation outside of Dallas. We cover the entire state with our ability.
Starting point is 00:28:50 So we have massive efficiencies. Yeah. We are tight. I have a rock star team. Three of them there are up front on the front row versus going into uncharted waters. Yeah. And saying, all right, well, we did it in Texas. We can do it in Oklahoma. What prevents you from doing Oklahoma?
Starting point is 00:29:08 It's never been done. There would have to be a tweak to the law. The legislation might need to pass. So there's a two-year journey to pass a law to make it more available. Okay. But the good news is the, you know, one of the particular wells we have in Texas is saying, hey, come to Oklahoma. We're already here. We need this remedy here.
Starting point is 00:29:27 Yeah. But my natural inclination based on efficiencies and processes and systems that are in places, will figure out how to do what you're doing here bigger. And so I'm kind of in that fork. Yeah. Which mountain is worth climbing? What's a great? I was, you even use the analogy I was going to use.
Starting point is 00:29:44 So the good news is that both ways will get you up the mountain. And I think one of the things that I used to get, I'd lose too much sleep over was obsessing over which path when both of them laid you up. So then I would end up deliberating for way longer than I should have because I wanted to find the perfect path rather than just knowing both of them will take me up. And so that's allowed me to take, make big to see. decisions faster just as an overarching frame. The second thing with regards to the actual decision, so when I think about something like this, I think, okay, how do I maximize the risk adjuster return on this move, right? And so if I call a whale up, so you have five whales that you like, are any other whales that you like that are not those five that you have relationships with?
Starting point is 00:30:21 Not in Texas. But the idea is there are, you know, there's firms out there that do eight states. They just don't do Texas. And so not a lot of cost into pursuing, hey, let me encourage you. let me tell you what Texas can hold for you and try to get them to come to us. Is there, and you would know this, are there laws to prevent you from kind of doing a joint venture or something like that with a whale firm? So that the EU is an exclusive. It is critically important that I am independent. Okay. Yeah.
Starting point is 00:30:50 Yeah. Yeah. Because otherwise, I would have been like you could put a very big, you know, check on the table for them to get there. Which I guess you could still do, but you would have to have no agreement. Like, they could just take the money, obviously, and then not send it to you. They probably still would. But as a risk consideration, the thing I don't like about that one, my big hang up, which might be yours, is I just don't want the growth of my business relying on somebody else opening their business and doing a good job, whereas I'd rather go where the fish already are. So if Oklahoma has a two-year delay, I mean, that is a pain in the ass, but are there other states that don't have a two-year delay?
Starting point is 00:31:24 That's just the most logical first step. Because of the one way. He was right there. I mean, it's literally hour north. Yeah. And we already have a relationship with the Texas whale that is in Oklahoma saying, please, I'm here also. How much business does that represent, though? That's the big question.
Starting point is 00:31:39 It's unknown. Because you're doing Texas and you're at 15, right? Oklahoma is way smaller by, you know, headcount than Texas. And this is one of five. So it's like if we had one fifth current revenue, you know, you're at three. And that's of Texas slice of pie. Now, whatever the Oklahoma slice of pie goes from three to less than three. Exactly. And like, to me, I'm like, I don't know if I care.
Starting point is 00:32:07 You nailed it. That's really a big piece of it is, you know, the growth piece of great. We can take on another state. And of course, Texas could lead to Colorado and Colorado, but you're talking about, all right, you just added 10 more percent revenue. Yeah, incremental for sure. But now you have something else dragging on your brain at 9-3 in the morning, you know. Yeah, I'm with you. So then what stock? you from going to New York, hypothetically. Like, if you, if you operate remotely, fundamentally within the business, like, why does, if it's another state is another state is another state, do you need to be local in order to do it? Someone has to do with the laws that are in place. Yeah.
Starting point is 00:32:45 You know, this remedy that is a Texas law-based remedy makes sense in Texas because Texas protects wages. You can't do wage garnishment. It protects your homestead. We can't force you to sell your house. It has a lot, you know, it's considered of the second toughest state in the nation. to recover unpaid debt in or judgments in. So we come in as a tool that works. And so there would be just a handful.
Starting point is 00:33:10 I would estimate three to four states where this would make sense. Okay. It's a matter of is the view worth the climb? Is adding 10, 15% more top line revenue worth taking my brain, my overthinking brain to Oklahoma? I would say this will actually be fun. I'm going to do this because it'll apply to probably half the room
Starting point is 00:33:29 because this is a really cool, fundamental decision. So bear with me, this will be a little bit longer, but you'll hopefully like it. If you don't, don't tell me. So let's say that this line represents normal revenue of the business. In my experience, I've noticed that I get a 20% decrement or decrease in performance whenever I change anything about the business before any kind of gains can then get accrued from whatever that change was supposed to bring.
Starting point is 00:33:54 And so I see this as my guaranteed cost of change no matter what that I have to pay. And so what's ended up happening after observing this over and over again is that, number one, if I'm going to take an guaranteed 20% cost, then I'm not going to take a potential for a 20% gain on a guaranteed 20% cost. And so for me to take a 20% dip, it's like, I need to see 50, maybe a double in the business for me to be like, okay, this is worth it. And so what ends up happening is that I think this can, I'm speaking to everybody now, but you get out of this constant desire to tweak everything in your business and drive your employees insane because you're always have a new idea every week and they're like, well, we just did this other one.
Starting point is 00:34:32 Because what ends up happening is you're like, well, this thing's going to net. Well, you're like, okay, well, what if this does net me 20? I should still do it, right? Okay, sure. Let's play that out. But the thing is, is that this week you're going to think of something else. You're going to have another 20%. And so people actually have like persistently far below at potential businesses that are operating
Starting point is 00:34:50 way below what they should be because we just constantly are changing shit. And so to ladder back to what we were talking about, my question would be, what's, what state can generate the same amount of revenue as Texas? None. None. Okay. You have to grow the pie of Texas. So you have two growth paths, right? You go from 40 or 50% where you're at now to 70, 80%. So it's like, what monopolistic levers can we employ so that we can starve everyone else out, which then just increases the value of the business a ton, which is awesome. And so there's share of pie and growing pie of Texas. And if none of the other states really make this feasible, then I think that probably answers that at least in the short term. So I don't love the I have to get other people
Starting point is 00:35:36 here as my growth path. And so it's like, number one, the thing that requires the least amount is increased percentage of pie. Number two would be increase pie percentage or sorry, yeah, 5% and then number three, if I've done both of these things well enough, then that might already be, I mean, for sure getting your 20. But then it's like, okay, I'm going to look at New York. I'm going to look at some of these other states that might have opportunity that's still not as good as Texas, but I have truly tapped this. And that's probably the order of operations I would do it on. So then solving for the constraint of, okay, why do these other 50%? Why are they allowed to breathe? And then how do I take the oxygen out of the room? Would probably be my approach if I were
Starting point is 00:36:18 swapping places. Love it. Thank you. Yeah. Thank you. Thank you. Congrats on the business. Very cool. Yes, sir. My name is Chris. I sell welding accessories to welders. We do 1.7 million revenue. I'd like to be a 10 million revenue. What's stopping me is I feel like demand has plateaued. And we have about 300,000 followers on TikTok. And I was wondering if you... That's amazing. So you're doing this from TikTok?
Starting point is 00:36:45 TikTok is our main channel that kind of got things going. And then we have shop-by store. Yeah, but I'm just still amazed. Thank you. Yeah, TikTok is just the worst monetization of audience. So, kudos. I was wondering if you think it'd be worth trying to double that audience from 300,000, or jump into another channel, like Amazon is what I was really considering. You were seeing Amazon as a channel? Like, as a means to sell more things. Well, so, okay, hold on. So are you saying I have such limited resources that my decision is, I can either list my stuff on Amazon or I can make more content. Is that what you're saying?
Starting point is 00:37:25 You say go from 300 to 600 on TikTok. Yes, make more content with TikTok. The thing, I made videos for about a year just every day. I was trying to make good original content. And over the past few months, I've been experiencing a lot of burnout. Sure. And I think that's what's kind of made me interested in looking in other avenues of selling my shirts. So this is, this is like awesome.
Starting point is 00:37:47 I'm really glad you asked this question. You have to reverse engineer you. So what are the things that you actually like doing? Making content. But you're burned out though. Yes. Yeah. So is there a type of content you enjoy and other types you hate?
Starting point is 00:37:58 More educational content. I like, I like educational content because I feel like when I post it, people can come back to it anytime. And it's kind of creating. So what stops you from making that? Ideas. Like coming up with good original ideas, I feel like it's hard. And like,
Starting point is 00:38:17 I know they say just like post the video like no matter what but sometimes and I look at it. I'm like, man, I could be better maybe. Yeah. So I don't think you should just do this other random thing for no reason. So if you want that initial answer, I can give you that one right away. I think that the long term play for you is figuring out how to make the content that you enjoy so that you can keep making it. And so it's either you like the stuff you make or you capture yourself doing things you already like. Those are kind of your options.
Starting point is 00:38:47 And then the rest of it is just pain tolerance. That's fair. Being real. And to be fair, going from season to season of content creation, like, you'll probably notice many people, myself included, like the nature of my content shifts over time. And it's for the same reason, which is that, like, I have to give myself permission to do whatever I want, because there are no rules. And no one's, there's no content police that's going to come arrest me if I don't make a video
Starting point is 00:39:09 today. And they're not going to arrest me if it's not algorithm optimized. I'm just going to make what I want to make. And that changes because I change. And I focus on different stuff. The other piece that I will tell. you that is worth writing down is that we need to be reminded more than we need to be taught, and that it goes double for your audience.
Starting point is 00:39:23 Maybe some of you guys watch some of my content. You've probably heard me say, work more before. And yet when you see the seventh video of that in a slightly different context, it's like, well, I kind of wanted the reminder. And so it's not like you're disserving the audience by reminding them of something they want to be reminded of in a context that is slightly novel. And so I think one of the big burdens that creators or people make content put on themselves that they believe that the content has to be that they believe that the content has to be
Starting point is 00:39:47 to be as novel for them as it is for the audience. And it is just not true. Dave Ramsey has been answering, I'm broke questions for 35 years. Stop spending the money you make. That's it. That's it. That's what you got to do. Right. And then everything else goes up. That's how it works. World's shortest content piece. But the thing is, is that it's the nuance of this unique situation. Well, there was a girl who won a, I mean, I've seen multiple lottery winner call ins to Dave Ramsey. Have you seen this, like little clips of him? I've seen multiple lots. So you'd think, oh, well, we can't make another lottery clip.
Starting point is 00:40:21 We've already covered what to do with lotteries. It's like, well, that was a $22 million lottery. This is a $2 million lottery winner. What's different now? Well, this guy has a wife who hates him and this guy doesn't. Now what? Well, the answer is stop spending so much money. You get where I'm going with this, right?
Starting point is 00:40:37 Yes. So if you weld stuff and you like making cool projects, the nice thing about your business is super visual. So it's so made for making content. and around, which is a huge advantage. Whereas if you, like, teach stuff, you have a big box of intangibles. It's, like, for me to demonstrate client finest acquisition, not nearly as fun or cool as you welding some shit.
Starting point is 00:40:56 Never. That's fair. Right. I also follow a handful of gym equipment accounts. Like, that's probably one of my hardcore side hobbies. I will look at reels of the same piece of equipment 30, 40 times until another one comes up. It'll be 31 or 41 times, right? And so I think you underestimate how much your audience might just like it.
Starting point is 00:41:15 your shit and then you just be okay with posting today's version of that thing. So just keep Dave Ramsey top of mind. And part of the reason that he's been able to make the constant for 35 years is that he enjoys doing it. And so it's just find a format that you like and then figure out all the algorithm bullshit around it to make it, you know, all nice and clickable and all that kind of jazz. But I'd say start with you and kind of reverse backwards and then long term, that's what's going to build it.
Starting point is 00:41:42 But was that really the core problem? I just, I wanted to answer that because I know that probably affects a third of the room. Yeah, now the other big problems that I've kind of realized being here, data, like I don't know my numbers like I should. That's a big thing that I've realized, focus. You run ads? And that's what like you're saying, like we need to be reminded more. That's, I think, coming here and just having that laid out has helped a lot. Do you run ads?
Starting point is 00:42:05 Yes, we do Google and meta ads. Okay. What percentage comes from that versus organic from TikTok? It's probably 50-50, I'd say. Okay. Interesting. Got it. And so what stops you from just running more ads? I've talked to my marketing guys about it and they say... We've saturated the mark.
Starting point is 00:42:23 Not like that. They say we just want to like trickle up slower. So we're planning on spending more leading into the holiday season. Okay. Cool. I agree. Spend more. I appreciate it. I know he's not the only person who's dealing with that content issue as a side note. Yeah, shoot. My name is Derek. I sell a real estate advisory service as to C-suite execs and
Starting point is 00:42:45 business owners. I do about 1.2 right now, and I like to be at 10. You're running like 60% margins, right? Like 700 a year. We're like profit. As an example, the guy who reped you to buy this building, that's like what I do. So my, my hypothesis in Seattle, suburban market in Seattle doing 1.2 hypothesis, I'm moving to Phoenix next year. So I'll be, I'll open the office in Phoenix, much larger Tam. I want to hear your framework about how do you think about customer acquisition strategy for Steve Sweet execs in a brand new market where you don't know anyone. Yeah. So how many people do you have working under you in Seattle? I have one guy. So you can you just earn the meeting meetings for me. Okay. Are you concerned that your revenue
Starting point is 00:43:28 in Seattle is going to drop? I'm starting over. So you're cool just you're like, this is going to zero. It's more like lifestyle too. Okay. I heard. Okay. Yeah. So. Well, then what'd you do to get the first one point? Brute force calling and emailing one to one. Yeah, well, that will do. So like, yeah, for sure. But zero to one, but how do you think about from zero to ten in a brand new market? Would you change that strategy up? Yeah, if you're going for high-level people, then it's going to be more outreach-driven
Starting point is 00:43:56 because most high-level people are going to get everything from referrals or for meeting people in specific, you know, arena. Yeah, I'm just being real. I'm not responding to a meta-ad for buying this building, right? For sure. And so. And you don't pay that, you don't pay out of pocket. I mean, the landlord or the seller pays my fees. So like, the customer itself doesn't pay for my services. Or you do, you do renters. Is that what it is? Tenets. So like. Yeah, okay. So renters. Yeah. Yeah. That is actually kind of interesting. I remember. Yeah, now it's coming back to me. Yeah, unique model only focusing on tenants. Tens and buyers. Yeah. Oh, but and buyers. Yeah. Oh, but and buyers. Yeah. Okay. And buyers. Yeah. What percentage is tenants versus buyers. Oh. In this market with interest rates, it's like, 80 or 90% tenants to have buyers. Interesting. Huh. And I do industrial and office building. So
Starting point is 00:44:46 yeah. Like, yeah. I'll say this. If like that specialization is kind of unique, at least I haven't and I feel like I get solicited constantly. And so you're not getting beat on by broker by commercial real estate broker's problem. I mean, hmm, not really. Zooming all the way out. You go into a new market, right? It's like you got to either be face to face networking, et cetera, like conferences, meetups, like pounding the pavement. V1. V2 is outreach just digitally, right? Which if you have some organic following that can help, or you have to go true cold outreach on LinkedIn, things like that, that can work for sure, again, volume. The ad strategy, I think because of the unique angle that you have, I actually
Starting point is 00:45:27 am more okay with it, given it's like, if you just lean in on the tenant side, I actually think you might have a better shot because it just feels unique rather than like, I have to buy these buildings, you know? So that, because if you're like, I, I am a specialist at negotiating leases for commercial buildings under these conditions, then it's like you're niching down and that messaging could pull someone who otherwise would like, I have multiple brokers that I use. That's, yeah, red, but I currently don't have a, I own all my shit. But like, if I didn't, then I would, you know, I would probably be responsive to a message like that. So I think I would
Starting point is 00:46:02 probably just from a speed perspective, because I'm guessing you have cash from, right, I mean, your margins are good. So. I would probably start with ads first, and I would do the rest as though ads don't exist. But the ad strategy would be probably one of the primary things that I would want to crack in the new market, because otherwise it's going to take you however long it took you to do it the other time. How would you use 80-20? I mean, from cold outreach to ads, what's that disparity look like? Yeah, I don't normally recommend doing more than one thing.
Starting point is 00:46:30 Yeah, my only exception is for local. Yeah. Because local, there's just, it has a smaller, you just have to just hammer a market. thing is that ads don't take a tremendous amount of time. Yeah. I basically would want you to spend, call it $100 to $200 a day in local ads. And your primary priority is to work the show of those leads and get the sales motion in place. Yes. And in the meantime, you do the normal playbook. Okay. So it's like, this is my guaranteed path. This is my fast path that I'm spending this money. Right, right. To learn to get it to crack it. That would be my approach. Now, the good news,
Starting point is 00:47:07 is that there's plenty of realtors who are super serious running ads in local markets. Platforms LinkedIn, obviously. No, I mean, I think, like, again, I like the super niche messaging, so I would actually be more willing to, I mean, LinkedIn for sure, but I wouldn't be as opposed to a meta strategy
Starting point is 00:47:22 given that unique angle. Just being generic realtor number six, no. No chance, yeah. Right. Okay. Real quick, and then decommoditizing my service, I guess. I already had that kind of specialty, so that probably helps. I would be shown before and afters.
Starting point is 00:47:36 You know, this is what the, tenant was originally offered. This is what we're able to negotiate. This was the difference. Right. Just I would be, I thought about a guarantee, you know, landlord offers this. Mm-hmm. If our, if where we end up is 20% less than that or not, I'll rebate my fee kind of deal. The landlord paid fee back to you. Yeah. But it's like, yeah, tough to guarantee that when sometimes it's 8% savings, 10% savings. I mean, I would probably go with dollar amounts if you can. Okay. And then only take projects over X. Right. That way you could probably, it'll, it'll, because you want to anchor it. to the biggest number you can.
Starting point is 00:48:08 And that would probably be how I'd approach it because percentages get eaten up real fast and going from like, if it's less than five, it's like that's not impressive. But if it's like, I'll save you 50, but it's like over a six year term, it's like, okay, I did save the money. It's just backloaded and they're fine.
Starting point is 00:48:21 So I'd rather anchor to the big number. Okay, appreciate it. Thank you. 100%. Congrats, by the way. Alzy. Hi, Alex. My name is Dylan Alarson.
Starting point is 00:48:30 I sell beef protein chips to athletes and outdoor enthusiasts. We do about a million in revenue. We want to be at 12. I want to be doing about a million a month. Up until this point, up until this point, we've been severely what I've identified is supply constrained. We've been in the supply chain purgatory for a while, I say a while period of like
Starting point is 00:48:56 six to nine months trying to find a manufacturer that's going to make our stuff. Because we decommoditized away from jerky, didn't want a price raise to the bottom. changing their lineup a little bit dissuaded so many of them. So we finally found one and we're working through that right now. Okay. So what else is distracting you? The approach, now that we've unlocked the volume, this new manufacturer can do about 20,000 units a month, which will get us to about 280,000 a month in revenue. At that point, he has a proprietary machine that can spit out a tray of our product every 12 seconds. But that machine is too large for his facility. So we would need to kind of come together and find a solution and a location to employ that or the alternative
Starting point is 00:49:41 option, which I think is the ultimate end state anyways, would be to stand up our own facility, understanding the timeline, the red tape. How much is the machine cost? I didn't think about buying it from them. Yeah. And you could buy it used. Okay. So basically, how big are your dreams for this business?
Starting point is 00:50:00 Blar. Well, you want to get to 12, but do you want to do beyond that? Do you want this to be a big brand? Yeah, absolutely. Yeah. Well, if you want it to be a big brand, then owning the manufacturing for something that is novel or different is probably a good idea. The issue is obviously cash flow is that you're super constrained right now, I'm guessing. A couple things.
Starting point is 00:50:16 If I were to like one, there's probably a renegotiating of terms if I absolutely could to just increase my payment. So like can I be net 30? Can I be net net 60, et cetera? It'd be the first thing I would look at. We had a company I was looking at investing in. Just taking term, like we just really hardcore negotiated one from net zero to net 90. And then the company went from. $2 million a year to $5 million a month and 18 months.
Starting point is 00:50:38 Not a promise or guarantee, just saying. The second thing, okay, so one is cash flow from a term basis. The next one is what's your influencer game? Well, right now we're heavy in the CrossFit space, very heavy, and we were able to secure his name is Austin Hatfield. He has a high, high likelihood of podium at the CrossFit games and, you know, a shot at winning. And so we contracted his head.
Starting point is 00:51:01 And so he's our primary influencer right now. So we're kind of pumping everything into him. And we got a couple more athletes like that. And then we do everything else through podcasts and on the unscripted live reads. Got it. You don't run any ads then. It's all organic. No.
Starting point is 00:51:16 Yeah. We just kept hitting the inventory ceiling trying to solve for that. Okay. So right now you have a double sitting in front of you that you think you can hit with the guy's existing capacity. Yeah. How many months of that do you need in order to save up enough to buy the machine with terms and lending? Oh, I mean, not that. Not that many?
Starting point is 00:51:35 Not that many. Okay. So, I mean, I think that you're spelling out kind of the plan. So meet existing volume requirements. I also, it might be worth leaning into selling out because then you can just kind of pent up some demand in the meantime. It's that number one. You can also do pre-orders.
Starting point is 00:51:51 Do you do that? We did before, but we just, we ended up letting go of another manufacturer just a couple weeks ago because they, there's the whole nightmare. QA dropped. Everything wasn't on time. So we were technically sold. out, you know, for this last month and we got the team together rented. We just kind of flew by the seat of our pants and solved the problem. So we did the sold out play. And I'm sorry, I forget
Starting point is 00:52:13 if that addressed your question there. You're good. I was just trying to pull cash forward. Okay. So we have, we have our terms. I think you can use pre-orders as a mechanism. You have your existing volume that you think you can hit these new volume caps that are twice as big. Cool. So that, so the three of those things bring you cash flow forward. Then it's where are you based out of? San Diego and the manufacturers in L.A. Interesting. Okay. Well, yeah, ideally you'd be Central so then you could get either shipping everywhere. Or three PLs in Georgia, so it doesn't.
Starting point is 00:52:38 Okay. Okay. So, yeah, then you can, I mean, I still just hate California stuff. But yeah, you can, then you could basically open up the facility there. I'd still hate that, but you, but you do live there. Right. Originally from Montana. So that's probably a more appetizing location.
Starting point is 00:52:55 But if we. Much more appetizing. It sounds like if we, you know, scale into this, this guy's volume, we're able to acquire the machine from him. Then we're just from whoever makes the. machine. Right. It was a proprietary. He assembled a bunch of things together. At least he says so. Yeah. And then grab the own, the new facility that we would own and then inject that machine to a Yeah. It'd be interesting. Like the machine is a big question mark for me. Like I would call up a couple of
Starting point is 00:53:19 really good machine guys and say that this is my partner of marketing and roll in and check the machine out and be like, all right, how proprietary is this? Because we might find out it's like, you know, a $75,000 machine that has, you know, $25,000 add on that they're pretending is $400,000. A good friend of mine was in the machine business, murdered it. They were, you know, they're doing 70 million a year selling machines. The average cost they'd sell machines for was like 400 grand, cost them 17. Yeah. So like, printed, destroyed.
Starting point is 00:53:47 So I say this because like, again, I mean, a smart machine builder prices off a value, which is if I, you know, I replace your entire workforce, that cost you $2 million. For $400,000, it's a steal. And if it just happens to cost me, $20,000 to build. more for everybody right so i would i would really lean on that because there's there's probably a big delta there because the core of your business if it really is this proprietary thing that machine right now is the core defensibility that you have so knowing everything about how that thing works is everything because if you're again like we have to take this to natural extreme let's say we hit
Starting point is 00:54:24 that okay then we have this machine and then we build it out it's like we're going to need more machines. And that's the only thing differentiates us from everybody else, that it's like that actually is a huge point of leverage for the business. And so getting as much intel as you possibly can on that so that you can ultimately grow. Got it. Thank you. Yeah, you've been. Rocking on. I should have prefaced this earlier, but I tried to answer the questions in a way that it, you know, obviously affects more than one person in the room, whether it's, you know, should I do this business or this business? Should I, you know, go to a different state? Should I buy the machine, you know, for for meats do I need to expand the brand? How do I go about doing that? If I'm at 15 million and
Starting point is 00:55:03 my margin isn't what it is and we've been going like crazy, should this be a year to prune the tree and get it really lean so that we can then set up for our next year of expansion? Like, these are all everyday business problems that affect more than just the people in the back of the room. And part of the selection that we do is we try and have different questions that are representative of more people's problems than just one rather than like seven people in a other. Like, I think I need to grow my brands. With that being said, so we gave a talk on basically maximally converting an audience to our sales team. So this is something, uh, Benson and I put together. One of the big reasons that I stayed at between 30 and 40 million dollars a year for like three or
Starting point is 00:55:37 four years of my career was because I didn't understand how to convert the widest percentage of an audience. And so Benson's going to go through a talk that kind of explains our thinking around this. So you can max be convert as many people as you want within your given target market? Business owners, quick question. Can I get sure your address? Because I want to send you a zillion dollars of free value in my next book 100 million dollar money models okay who here read one of my other bucks yes all right was it worth reading yes okay so august 16th this book comes out it is the crowning achievement i've been working for years on it and on top of that every single person who shows up live will get a product i've been working on for not one but two years that is better than an nfts
Starting point is 00:56:16 less than a bitcoin and every single person shows up will get one all right and it will be for sale afterwards so this is not this is legit all right so click register the event's absolutely free i've five, five mystery headliners. And out of 10, what would you rate the last two books? Can I get some fingers? Hell yeah. All right. So you're not going to miss it. Click, I'll see you there. All right. Thank you guys so much. I appreciate it. Back to Benson.

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.