https://www.youtube.com/watch?v=R7Fin9HFhoM

1 00:00:00.000 --\> 00:01:00.000 what's going on everyone super excited
it's breakdown what we're talking about today which is the kind of four
big you know chapters in the growth of a business so zero to a million
dollars a year one to ten million dollars a year ten to thirty million
dollars a year and then thirty two hundred million dollars plus all
right and this was this is now taking me a long time to figure out
painstakingly so hopefully uh this will be a value to you it's kind of
interesting though because when i learned more about this it's hard to
even learn things without having the context and a framework to apply
them on right like unless you have a business it's hard to understand
all the bottlenecks because none of it's real for you so this will
probably be more for the people who have businesses but if you don't
have a business then you know please enjoy um that being said zero to a
million really really simple it's just one product on one channel very
simple all right that means you learn how to figure out how to sell one
thing on one channel all right a channel would be like cold email
facebook ads instagram ads youtube ads

2 00:01:00.000 --\> 00:02:00.000 referral partners you know what i mean
uh all off of organic you know earned media so all of these are
different channels that you can use to acquire customers and the reason
people get stuck in like 100 300 ish like range is usually because they
still haven't really nailed this it's still haphazard they get clients
from here and there but they don't have a reliable system for acquiring
customers all right literally that's it zero to a million it's a
reliable system of acquiring customers and doing it and most people also
get stuck here because they have personal problems like they're they're
they're super angry and they hate themselves and they're not good with
people that's that type of thing like they a lot of times they have the
right system they execute it and then they crash themselves because they
have they're you know sleeping with their customers or sleeping with
their you know employees just like it's just crazy interpersonal drama
is in this range but the business from the business standpoint it's very
simple it's just one product on one channel and then you just make the
math work so it's not a thousand dollar thing got to sell 100 a month
that's it that's all it is at this point though right million ish two
million ish a year now mind you these are rough you know sometimes it
might be one to three it's

3 00:02:00.000 --\> 00:03:00.000 just the range here but once you're in
that kind of one to three range getting to 10 is an entirely different
thing all right getting to 10 is multi-products right now an important
note here is that you're not starting multiple businesses right it's
going to be cross-sells and upsells all right so that's in another way
is creating a value ladder it's creating a it's creating a back end
right it's what's the what's the next level of service that we can
provide these people what's the next thing they're naturally going to
want to need or want and need after buying our initial product right and
so thinking through this like it's most people who are in this million
dollar range are like man what else should i sell them like you're
asking the right question exactly the right question that's what you
need to do to get from one to ten all right now from 10 to 30 in mind
you uh it's multiple products and uh and depending sometimes it's
multiple channels all right um you can you can kind of do it either way
either single product on more channels or you can do multiple products
on

4 00:03:00.000 --\> 00:04:00.000 single channel or you can do multiple
like that's a little bit wiggle e but i would say the easiest for most
people is just focusing on their back end which is the cross cells and
upsells what are the things that this person is actually going to need
next which is going to increase our ltv so basically what happens is
you're selling the same same number of units as before like i was saying
let's say you sold 100 people at that at that 1k ltv but then you you
you 4x your ltv and all of a sudden or 5x or ltv right this is how it
happens you 5x4 ltv and it becomes 5k over the lifespan and now you're
at 500 000 a month and then because you're at 500 000 a month you can
start going to another channel because you can afford to do it because
your ltv's higher so basically what ends up happening is you learn how
to cheaply acquire customers on one channel that you're very well suited
for right then you extend and expand the ltv of that customer by
introducing a backend and then once you have that back in it now opens
up other traffic platforms uh or channels that you wouldn't otherwise be
able to afford but now that you have a superior backend you can now go
broader right that's kind of how it works from a from a business day to
day standpoint all right so zero to a million one to ten million

5 00:04:00.000 --\> 00:05:00.000 all right next line here is 10 to 30
million this is another one where people you know massively screw up uh
which is professional design professionalizing the business all right uh
and this is honestly really painful and it's it's hard to do and i'm
thankful that i had mentors early on that were like this is what you
need to do now because i probably wouldn't have said this is the next
thing but what ends up happening when you're at like 10 million million
a month type you know ranges then like the thing that made you special
your special sauce here which may have been a lot of you as the founder
um is it starts to get diluted out right and then you have customer
complaint and customer support issues and then you know things it's just
like you're basically still a really big small business uh at that 10
million like you don't have the systems the infrastructure to build more
on top of because it's still like google sheets and and you know and
trello boards you know it's just like it's just craziness to try and
manage this and so this is where you have to hire some more corporate
people and this is you know what every entrepreneur fears more than
anything right is that we fear bringing in these corporate suits you
know who just gonna suck the life out of

6 00:05:00.000 --\> 00:06:00.000 you you're like i started this business
to not have to do that but you know what every massive business in the
world was started by a founder right who probably didn't like that and
the reason big businesses run like business big businesses is because
it's the only way to run big businesses like you have you have to have
corporate structure you have structure you have to have hierarchy you
have to have you have to have hr you have to have you have to have these
things in place so that employees feel more comfortable but also so that
you're you're protected from a liability standpoint right uh because
honestly once you get into this range you become a target right this is
where lawsuits start coming in this is where lawyers and contracts start
mattering and all of this stuff right um and so professionalizing the
business especially from hr legal and accounting standpoint comes here
and then the it systems all right so this is really like really
strengthening the ops of the business the operational infrastructure
because what this does is that it makes all of these things that we
learned how to upsell before it really makes them methodical right it
becomes people get the same product every time same product every time

7 00:06:00.000 --\> 00:07:00.000 and so then client happiness goes back
up and things are good now the problem is the people who come in at this
30 million a year you know are getting from 10 to 30 is that they're not
innovative at all if anything they stifle innovation because they want
things to go through a certain way and then they just they you know you
want to choke them to death um but you have to do it all right but the
thing is is that if you go these are all like pendulums right if you go
too far in that direction then you lose the creative energy and the
drive of the business uh because you kind of have these suits that are
trying to control everything all right and so this is the gap that i
have struggled to make is going from 30 million plus to two to a hundred
million dollars a year and so i'll share what the mentors that have
shared this with me um hopefully it'll be useful for you but yeah i mean
we've been we did 28 37 32 i think the last three years uh so we've just
really been stuck at this level and it's because of this last piece
right because the thing that made us right was frankly was was me and
the entrepreneurials like drive and i'm not saying i'm the sole
responsibility obviously our team's amazing and they're the reason this
works but it's saying like what's the you know

8 00:07:00.000 --\> 00:08:00.000 what's the soul right and so what ends
up having to happen is that at this level you actually have to have more
souls you have to have more people with the juju right more people who
can drive growth who can take initiative and seize opportunities right
and so this is kind of the entrepreneur versus the intrapreneur dilemma
and i'll break this down for you so an entrepreneur is somebody who
wants has entrepreneurial tendencies within within a corporate structure
right um an entrepreneur wants to own their own thing and i have made
horrible mistakes so many times um hiring entrepreneurs and treating
them like entrepreneurs when in reality i should have just never hired
them right um because they're going to tell you no i you know what i had
a business before i don't have any interest in doing that and so you
really have two kind of two outcomes that happen here either have the
entrepreneur who comes into your business lost their juju right and now
just sits in your business and continue complains about how they're not
getting paid as much as they could

9 00:08:00.000 --\> 00:09:00.000 make on their own but they can't make
it on their own which is why they're with your business right or the
person is right and can make more on their own and so they come into
your business basically regain their confidence start doing well and
then take as much of that business with you as they possibly can and so
either way the outcome's poor and so i had to learn that one the hard
way multiple times in our business which is don't hire entrepreneurs all
right what you want to do is find entrepreneurs all right these are
people who um really prefer they love the entrepreneurial drive of like
driving growth driving change taking initiatives building out new things
innovating right um but they don't have the same appetite for risk right
and so because of that they like having this kind of safe place to go
experiment and do all this stuff but they still know they're going to
get a paycheck every month now that paycheck's variable but even if they
you know suck they're still going to get paid or paid well right and so
this is what i have i've been trying to you know imbue into our business
right now and it is working um is is putting on intrapreneurs in places
where

10 00:09:00.000 --\> 00:10:00.000 they can drive change because if you
really think about it what ends up happening is that your business
becomes a conglomeration of smaller sub-businesses right if you listen
to jeff bezos talk about his directors she actually calls them ceos he's
like oh that's ceo of that business that's ceo of that business but
they're all within amazon right but they're kind of sub ceos and this is
the thing is like you need you can only provide so much willpower and
spirit to a business once it gets to this size because there's just so
many people that you just get deluded like your spirit your care your
drive your vision just get diluted throughout an organization and so you
need you need heads that can kind of reinvigorate the business and drive
new uh innovations and so what ends up happening is the way this the
structure looks like and the way it shifts to i'll show you real quick
\[Applause\] is it shifts to something like this all right so you've got
your

11 00:10:00.000 --\> 00:11:00.000 your core here right which is the the
operational infrastructure that we put in place from 10 to 30 million so
this is your um this is your your hr right legal uh i.t finance right
that's your that's your core all right that's the core ops of the
business that has to happen or everyone goes to jail right people need
to get paid you need to pay taxes contracts need to be signed you know
crms i'd see all that kind of stuff right and then what ends up
happening is that off of that spoke right you have profit centers right
and inside of a profit center you're going to have product and you're
going to have acquisition all right so acquisitions marketing sales and
then product right and so inside of these these are all identical right
product acquisition right product acquisition you get the idea right and
so each of these become profit centers right for the business and so
these things can all roll into you

12 00:11:00.000 --\> 00:12:00.000 while this all rolls into someone else
right from a from an operational standpoint but this is really how the
business would function right and so this is where you might have you
know product line you know number one right product line number two
product line number three right and each of these are going to satisfy
needs for the customer ideally when you're enumerating these product
lines is you want to use the existing resources that you have and
capital and infrastructure to create products that are similar but
different right so for example if i were if i were like because
obviously we have a coaching business uh for gyms so if i were you know
expanding pro like uh services then what's one of the things that we
we've added in so we we added in um uh we call it a boiler room so this
is something like a lot of a lot of our gyms were asking for more help
with sales and so we're like well how about we just train you guys like
we train our team like our team drills every morning we do boiler room
that's how that's how all of our guys start our day so why don't all of
you just if you want this additional service because not everyone wants
it you can pay a little extra for it and then you can bring all your
sales team and we can drill your sales team

13 00:12:00.000 --\> 00:13:00.000 and so they get pumped up and the nice
thing is something like that just shows such clear roi um to a business
that it's like oh my god i would never stop paying for this so it's
really sticky right and it's high margin so it works it literally works
for everyone right and so it's like we have our core like let's fix your
business service and with the existing resources we have which is these
are the skill sets and the individuals that we have that work for us we
know that we could create this product line and i'm calling a product
line but service line um with little investment right we don't have to
do a ton of stuff there right whereas when i started the supplement
company that was a huge undertaking that probably wasn't the wisest
decision i i was fortunate that we were able to maneuver it and now it's
a very very healthy business but it took i mean but it was very hard and
i probably shouldn't have done it in that order right i should have
thought like okay well they also want um someone to run their ads for
them so that's going to be our done free agency side so we're going to
add that in right and again each of these like this hopefully this makes
sense to you delineating these things it's like these are all types of
services that a customer who comes in would naturally also want in
addition

14 00:13:00.000 --\> 00:14:00.000 and these can be upsells that will
increase the ltv the customer while also making your own your own
service stickier and helping them basically you want to you want to
envelope the customer with all the things that they want that being said
you have to have the operational know how to do this and this is where
people get screwed up all right is that when they create these product
lines they start trying to manage both and then they start trying to
manage all three and then and then they start another business and then
it gets even crazier right and so this is where people massively screw
up and so until you have a true leader and i'm saying a true leader this
person has to be as smart as you are all right running a new product
division i would not recommend doing it which is why business growth is
slow because it's all about the people like that's the hard part every
entrepreneur's biggest problem is they can't find good people it's the
hardest problem in the world and it's also because we need to be better
people to attract better people and also manage better people because if
you think about it if i were an omnipotent being if i were god right i
could probably perfectly manage everyone to become an a player so that's
a belief that i try and use it's like if i were a perfect

15 00:14:00.000 --\> 00:15:00.000 leader and a perfect manager i could
get everyone to you know surge forward and and and be the best right but
i am an imperfect leader and i'm an imperfect manager and so i have to
find people that have a little bit of battery included uh to get the
result that we're looking for so hopefully this makes sense in terms of
how you structure the business and how it scales you know at this point
this would be like your zero to zero to a million would be here you go
zero to ten million maybe with product line one or product line two
added in right which then allows you to scale your acquisition so
acquisition goes up on each of these things because the total ltb is
higher and so this is ultimately how the business scales all right so
quick recruit for everyone if you're zero to a million you don't need to
worry about anything you gotta sell one product and one channel that's
it you gotta get good enough at it that you can do it repeatedly in your
sleep once you have that then you're like okay we got this unlocked now
we can sell multiple products these people so i need to find somebody
who's good put them in charge of this help them build out a product line
that is an entrepreneur not an entrepreneur

16 00:15:00.000 --\> 00:16:00.000 um and and then we'll cross-sell them
into this additional service or or product line that doesn't require a
ton of capital investment what else could we provide these people that
they have been asking for right from 10 to 30 million it's like all
right now we need i.t we need legal we need hr we need compliance we
need all of this other crap because you become a target straight up you
become a target in the business all right and so um you professionalize
the business but you can't lose the entrepreneurial spirit and to not
lose the entrepreneurial spirit is when you hire entrepreneurs and then
you put them in chartered product lines all put around the central spoke
of the infrastructure for operations so hopefully that makes sense
hopefully that valuable if you're in the zero to 1 million range then
just don't get distracted with shiny objects focus on one product on one
channel it's all you need to do keep being awesome i'll catch you guys
soon bye
