https://www.youtube.com/watch?v=qxQIcDrre1E

1 00:00:00.000 --\> 00:01:00.000 warren buffett once told the story of
his closest friend from columbia business school he said the guy was
incredibly smart incredibly hard working really strong ethics great
character and they kind of were in a similar spot as they graduated but
the outcome of their lives was dramatically different based on a single
decision the friend of his went to the steel business and he said worked
you know very hard and earned a modestly you know modestly good living
um while warren went and started his first private partnership and then
what would eventually become berkshire hathaway and he said this final
quote which has always struck me or struck me then and stuck with me
since which is what i learned was it's not as important how hard you row
but what boat you are in and so in the video that i'm about to show you
this was a presentation that i was given for a keynote and they asked me
to talk about what they called level seven entrepreneurship so once you
kind of they have like levels one through six that they were

2 00:01:00.000 --\> 00:02:00.000 talking about level seven is kind of
rising above the businesses and using your businesses as or seeing your
businesses almost as products that increase your you know personal net
worth etc i took that to mean how do we assess and appraise opportunity
itself this is one of my one of my favorite presentations i've ever
given um and i hope that you get value from it mosey nation for those
guys who don't know me by the way my name is oxford mosey i own
acquisition.com it's a portfolio of companies that does about 85 million
a year and i have nothing to sell you all right so i make these videos
just because i think a lot of people are broke and i know it should be
one of them and hopefully some of the lessons that i've learned along
the way uh can help you so uh buckle up and enjoy how's everybody going
awesome sweet uh so i am a level seven entrepreneur category five
hurricane uh level ten fire breather top secret security clearance
holder uh it was kind of weird to hear the context for the talk today
because i don't really feel like a level seven

3 00:02:00.000 --\> 00:03:00.000 entrepreneur um just feel like
somebody's taking a couple steps forward and one toe after the other so
let's rock and roll everybody good with that sweet it's acquisition.com
that's our fancy logo awesome you guys want to hear something totally
insane uh oh i can see it here much better uh i was able to take home
more in a year than the ceo of mcdonald's ikea ford motorola and yahoo
combined as a kid in his 20s which is equated to over 1.2 million per
month in dividends for nearly half a decade and i haven't talked about
it publicly that much mostly because didn't really care to we're at an
interesting point and ryan asked me to to bring this up where we've
exited two companies this

4 00:03:00.000 --\> 00:04:00.000 year sold our house sold our car and
i'm kind of in a season right now of consolidation and kind of
distilling down what i like to call artifacts so just frameworks that
crystallize the learnings so that i can set forth for my next chapter
with kind of a backpack full of lessons and so i have way more
frameworks than i will be able to share with you today um that book is
the first of 10 books that i'm writing on it that is really just
expounding on one framework but i'm going to share with you four today
that hopefully you get some good stuff out of all right and no one was
more surprised than me to hear those numbers so what's interesting is
that me expressing that fact creates envy in some people anger and
others skepticism in most and confusion in old people and hopefully
inspires a select few because you guys are who i'm making this for so
these are just a few level seven observations i added in quickly this

5 00:04:00.000 --\> 00:05:00.000 morning uh because ryan asked me to
talk about a couple of these some things that i've learned one everyone
wants you to do well just not better than them except that no one
actually wants you to be rich except for you i really mean that because
if you're not fighting for you no one else is money only solves money
problems and then you are left with problems that money can't solve you
don't arrive you just enter a new club as the smallest member the guy
who literally lives in the unit directly above me in my building took
home 1 billion this year in income not an exit income he owns outright
100 owner 3.8 billion a year in sales 26 net margins and last year he
took home 920 million the year before that he took him 850 million cool
guy so i'm just poor

6 00:05:00.000 --\> 00:06:00.000 and one of the last observations i'll
say is that this last year i would say we fully exited the the org chart
and we're making pretty much the same money that i just showed you and
uh it was wildly uh boring and like almost depressing and so i i kind of
have this thing that like let's make active income cool again because i
think passive income is slightly overrated because we all have this
desire we seek freedom but what i really think we want is options and we
want engaging activities because we like imagine because all of us buy
back all of our time and imagine you buy all of it back and you're
making all the money and you do nothing it's terrible um and so i'm just
sharing this with you because that was my goal for such a long time that
when i kind of got there it's

7 00:06:00.000 --\> 00:07:00.000 it's not it's not fun like all i want
to do now is start something else because i've got a lot of summers left
right so might as well do something cool all right so who wants to hear
about stuff that can shortcut your path to material success so you can
ponder the purpose of achieving it to begin with cool awesome all right
so my name is alex for mosey founder of ce and ceo of acquisition.com
and i have nothing to sell you any mosey nation here anyone a couple all
right awesome so uh except for this book which you can get for 99 cents
on amazon um pretty cool this actually just released three months ago
almost 2000 reviews on amazon so people seem to like it and uh total
side note for everybody who's a super duper marketer here uh i released
the book with one post zero funnels zero ads zero upsells um and so i
think that there's something to be said for intention behind how you
create your business um and people can feel why you're doing

8 00:07:00.000 --\> 00:08:00.000 things total tangent i was talking to a
buddy of mine who just sold his company for 200 million and he said you
know what's interesting is that when you talk to most people he said 99
people were plugged into the matrix and what he meant by that is that
they're operating from a place of lack and a place of desire to get
other people to give them money right that's kind of where they operate
from he said when you exit the matrix it's very rare but you'll see that
when you make things just for the sake of making them like art then they
have they take on a whole different form and this book was kind of the
first of the many things that i hope to create from that same space and
so anyways i hope you enjoy it if you do pick it up and hopefully i'll
prove to you some enough enough value for 99 cents so how i turned 1036
into 85 million a year in portfolio revenue in five years using four
frameworks and that is december 20th 2016. so your life can change
pretty quickly

9 00:08:00.000 --\> 00:09:00.000 all right so that was me when i started
i didn't have enough money for rent so i slept there skill those
locations from it always still hits me um mostly because i'm just
grateful you know for where we're at now anyways um sorry scaled these
locations from zero to six um and three years off cash flow which is
pretty cool um then i did 18 months of doing gym turn around so it's
kind of like gym rescue or like bar rescue but gyms but no gym owners
want to get rescued so i called it jim launch brilliant marketing right
there uh and this is actually the first ad i ever ran which is actually
me just doing a walk through of this hook this gym in the hood hood um
and i did 191 sign-ups in 19 days just me selling one-on-one at 500
bucks each i would show you but i don't think we have enough time but
that ad if you ever want to check it out it's on my youtube channel it's
got like 400 000 views um it's 90 seconds so

10 00:09:00.000 --\> 00:10:00.000 anyways from there we packaged the ip
for a better gym model because i had six gyms and then i did all these
turnarounds we scaled that to 2.4 million a month which is a b2b
business then we started a supplement company scaled that to 1.7 million
a month that's b to b to c and b to c uh for those who don't know that
means business to business and business consumer sorry and business to
business to consumer uh and then after that we founded a software
company which killed a 1.6 million a month which was b2b2c uh which we
actually just sold two months ago and uh yeah that was cool and then we
co-founded uh a national photography chain uh which now 14 months later
is doing 1.1 million a month so and now we have acquisition.com so we
take interest in seven eight and multi uh e-learning and local chains
and we grow them to exit so that's what we do which is cool for me but
what's in it for you all right so here's my goal for the presentation to
help you get you from where you are using some of the lessons that i
learned the hard way and a few stories to make them stick

11 00:10:00.000 --\> 00:11:00.000 uh to a level seven zillion
entrepreneur cool which is an entrepreneur who contemplates the meaning
of life because they have no need for money great so if you've achieved
if someone has achieved success i'm going to use quotes here faster
again quotes here than you then they simply have been better allocators
of a single resource and it's probably not the resource you think all
right so i want to base my presentation today on a single premise which
is time allocation is the only thing that matters if you master time you
will master material success not saying you'll master happiness i'm just
saying you'll master material success all right and so don't worry this
is not a time management presentation this is a presentation on how to
drag your time horizon by the balls into the present all right way
faster than everyone you desperately want to beat i mean that right like
you can drag your time horizon to the present if you learn how to think
differently all right so from the outside what appears to be speed is
not lots of activity that is a fallacy that most entrepreneurs believe

12 00:11:00.000 --\> 00:12:00.000 all right it is making the right
strategic decisions and making fewer mistakes so if you see where it
says micro fast macro slow for the most part when i look at
entrepreneurs and i see what they're doing that's what their life looks
like they go really fast and then they change directions they go really
fast and they change directions but i can tell you my neighbor who's
right above me has been doing the same thing for 40 years and it's micro
slow macro fast and the speed comes from not having to take detours if
you consistently move forward over a long enough period of time you go
really far and so here's a level seven observation for you ninety
percent of success can be boiled down to consistently doing the obvious
thing for an uncommonly long period of time without convincing yourself
you're smarter than you are so i like this quote from naval ravicon it's
loose i just remember from a book or something i only believe that one
percent of decisions matter the rest of them are irrelevant the
difficulty is understanding which are the one percent

13 00:12:00.000 --\> 00:13:00.000 of the 99 of the ones that matter and
so what i want to give you some of the frameworks that shape my one
percent decision so you can use them too all right so first off this is
the premise money is the denomination of time every transaction we make
is for some percentage of our lives our wealth is a measure of how
little of our lives we must trade for the things that we desire money is
an iou from society for future goods and services which is translated as
other people's time for value that we provide and so to somebody who has
lots of money they need to trade very little time by percentage of their
life to get the lamborghini for somebody who has no money they have to
trade a very large amount of time to get the same lamborghini it's a
it's just a store of time and so the key multiplier in time is leverage
and the size of the opportunities that we pursue aka the strategic
decisions are directly proportional the amount of leverage that we can
employ rich dads and i think this is the biggest difference in economic
equality

14 00:13:00.000 --\> 00:14:00.000 tell their kids to pursue high
leverage opportunities real estate funds acquisition business ownership
that's what they encourage their kids to do because they've already
jumped through the levels and they know what is there most people don't
succeed because of ignorance not because of lack of desire poor dads
tell their kids to pursue low leverage opportunities forcing those kids
to have to learn the hard way like many of us did what leverage actually
is many times never discovering what it is until it's too late example
get a good job build a small business and i'll clarify what that means
in a second etc and so this is a a good book you can probably get most
of the takings um just total side note i think one of the most valuable
things you can do is just read billionaire autobiographies because you
get to see how they think so he said uh and this this this this hit me
like a ton of bricks he said it's harder to build a small business than
a big business because level 10 town is only attracted to big
opportunities

15 00:14:00.000 --\> 00:15:00.000 it's harder because you got to do it
on your own you got to do everything if you chase the big things it also
makes it worth it because small goals and big goals are equally
difficult you have to spend time to achieve either of them so you might
as well make them big like really like that like does that make sense
it's like that hits you because it hits me so with that being
established these are the four frameworks that i use to apply leverage
and have given me the quote faster than normal quote material success
that many claim to desire number one and i apply these frameworks when
we're looking at investing in portfolio companies when we look at
ourselves and our own companies what we're going to do to scale them and
so these are the four things i look at number one scale the entrepreneur
number two scale the market number three skill the deliverable number
four skill the business now from a equation standpoint because this is
how all these things work

16 00:15:00.000 --\> 00:16:00.000 together a level 10 entrepreneur on a
level one opportunity will still do pretty well but not that great
opportunity is a function of two of these things the market times the
scalability of the deliverable if you've got a numb nuts on a level 10
opportunity they'll still make money some of you guys know them some of
you guys are them and then finally the business acumen is to understand
how the actual enterprise itself has to scale all right so let's start
with the first one you are not making as much as you want because you
are not as good as you think you are fact if someone in your marketplace
dare i say competitor is making more than you it is because they are
better than you at the game do not throw stones at them throw stones at
your ego instead admit deficiencies and learn their strengths it will be
the only way to beat them

17 00:16:00.000 --\> 00:17:00.000 so if we can admit the deficiency then
at least we can create space to learn so how do we get better look at
the entrepreneurs the first and most important thing that we do when
we're looking at trying to get into a business and so every business is
bottlenecked by the entrepreneur in one of three ways and so if you're
the entrepreneur this is you number one you'll either lack a skill
number two you will lack a character trait number three you will lack a
belief so imagine a ladder and you can think of this as you've got
traits you've got beliefs and you've got skills if any side of that
ladder is missing no matter how develop the other components you will be
limited to the lowest rung it's just like this is this is the theory of
constraints right just visualized so fun activity i will tell you the
problem and you tell me whether it was a skill deficiency a trait
deficiency or a belief deficiency a long time ago in a galaxy far away i
had 10 businesses

18 00:17:00.000 --\> 00:18:00.000 i also had no money i had six gyms i
had a turnaround business four gyms i had a chiropractor agency i had a
dental agency yeah i think that's it it's a six plus yeah right nine or
ten a lot plenty my lovely wife laila who is not my wife at the time
said uh you need to pick something uh or you're gonna you know or i'm
leaving and i was like oh man that is a high stake i should pick
something and so uh i ended up picking something what do you think the
issue was what was my deficiency as an entrepreneur was it a skill gonna
get hands for skill hands for trait hands for belief interesting okay
well this is my opinion the lesson is niche slapping fallacy which is
the fallacy that if i pursue all of them one of them will

19 00:18:00.000 --\> 00:19:00.000 work out which is a fallacy it is
false when in reality all of them could have worked out but none of them
will work out if you pursue them all and so many of you probably have
your hand in two things you're like i'm not really sure which one it is
\[ \_\_ \] pick pick because the people you're competing against who are
beating you just have one thing and imagine right now for a moment that
one of those businesses disappeared everything that you have on that
business just vanishes how easy would it be to make the other one win so
just do that so the lesson was the niche lapping fallacy what i lacked
was focus and for me i think focus is a character trait so that was the
trait deficiency but i wasn't done yet i still had more things that i
was not successful because of so this is me talking about my grand plans
too this is at my first location by the way this is how i was showing
how i wanted to build america's next gym

20 00:19:00.000 --\> 00:20:00.000 and so sorry it's really cute um and
so anyways i went to this mastermind uh it was russell brunson's inner
circle this is five or six years ago and i said here are my grand plans
i've got six locations i've got my next four picked out and i told them
about how our model worked and everything and he said i think it's a
terrible idea and like my heart sank because i was like i looked up to
this guy so much because i was like god i mean if i can just get one
thing from this guy and he said alex you have a level 10 skill set in a
level two opportunity you shouldn't be running gyms you should be
teaching gyms what you do and that's where it's like the big frameworks
that change your life and that's what i'm trying to do with this
presentation for somebody in the room is that it's the big strategic
decisions that make the big impacts in our lives it's not the
incremental gains it's the rich dad who says why are you even bothering
with this this is not big enough you're never going to achieve scale
running a liquor store it's just not going to happen

21 00:20:00.000 --\> 00:21:00.000 right but you need someone like that
from the outside to get that perspective and so this was what i got from
russell years ago and so can anyone identify the deficit that i was
suffering at this point in my career was it a skill or a belief belief
and so this was actually my trajectory of me as a multi-gym owner i had
lots of skills i had decent character traits i think um but i didn't
know that it was possible i didn't know that that was something that you
could do and so i switched from being a multi-gym owner to a licensor
and so finally this is what a skill deficiency looks like and i'll give
you one that i hear all the time in internet marketing i'm sure ryan has
heard this as well no good sales people exist no one can sell like i can
sell my sales team is so inconsistent some months they close a lot
sometimes they close a little i want to kill them and sometimes i don't
want to kill them sound familiar anyone

22 00:21:00.000 --\> 00:22:00.000 isn't a problem it is a skilled
efficiency you lack the skill of recruiting hiring interviewing training
and managing a high performance sales team that's all it is and so it's
not that this does not exist it's that i do not have the skills to
conquer this problem and so here's a pro tip or a thought is binaries
versus continuums so if you might check the box and say well i know how
to manage a sales team the question is not whether or not you know how
to manage the sales team but how well you can manage the sales team it's
not a binary it is a continuum and as a fun thought all of these things
exist on a continuum your skills exist on a continuum your traits exist
on continuum it's not whether you're honest or not it's how honest are
you so the best way to learn is to phrase your bottleneck or complaint
into a solvable question my sales team is inconsistent how do i learn to
create consistency in sales simple right and skill i'm not going to get
into how

23 00:22:00.000 --\> 00:23:00.000 learned skills but this is the the
quick quick bit comes from repetition and feedback aka volume the volume
of work that you do which is why i think we need to make active income
cool again all right so i uh just looked at my crm this is years ago and
i was able to pull the stats from my personal closing because you have
to say who closed something in a crm for gyms and over a three and a
half year period i had closed 4 000 sales in the crm these are
one-on-one sales and so i often get the question alex you seem so
certain or you're so good at these things how do i shortcut that and the
reality is that most people don't have that rocky cut scene of eating \[
\_\_ \] and they're not willing to go through it and maybe you are going
through it right now and so my promise to you is that your work works on
you more than you work on it you build your character through the work
that we do

24 00:23:00.000 --\> 00:24:00.000 we increase our capacity to do work
itself and so if you can think about the work that you're doing is
increasing that trait rather than the output of the work then i think it
will help a lot of people get through some of the harder times it did
for me and so some of the things some of the sayings that i have in my
community are do the boring work and outwork yourself doubt because
conviction doesn't come from positive affirmations in the mirror it
comes from having done something so many \[ \_\_ \] times that you're
bored of it because it's like well obviously this is how you sell
obviously this is how you scale a sales team because you've done it so
many times and i was on a podcast not that long ago for young male
entrepreneurs and the the guy was like hey you know i really hear what
you're coming from you know i know you did your all those years of
eating \[ \_\_ \] that no one talked about and so for all the audience
that just wants to like shortcut all that what's your advice and i was
like you'll never beat me because you're not willing to do it and so i
think that the biggest

25 00:24:00.000 --\> 00:25:00.000 deficiency that people have is their
expectations and so because we have these very lofty expectations
everyone's trying to become a millionaire in 90 days when if i were to
get you to sign a contract this is i promise you'll be a millionaire in
five years but you won't earn anything for five years until you become a
millionaire would you be willing to sign it most people say they would
but they don't live like they would and i promise you that if you live
like you would you'll hit it but everyone just starts over every 90 days
thinking that this is going to be the thing when you could have just had
that slow gradient that will get you there eventually so i'd rather get
rich for sure than get rich quick and so the best part about all this
stuff is that skills traits and beliefs all compound and that is what
yields crazy outside returns seemingly overnight and so this is actually
one of my favorite parts of presentation just side note um so let me
give you an example of someone who's good at math let's say you're
anybody here good at math born good at math cool so i wanted to make
this into into individual slides so pretend each of these lines are not
shown until i say

26 00:25:00.000 --\> 00:26:00.000 them cool great all right so let's say
you're good at math all right cool not very monetizable all right moving
along let's say you're like you know what i'm going to start bookkeeping
i want to learn how to you know keep books like okay cool now you have
something you can at least monetize and then you say you know i'm gonna
get an accounting degree i'm learning how to do accounting okay now this
is something that's really becoming a career you can feed your family
etc and then you say you know what i'm starting to get in a tax strategy
then all of a sudden you learn how you can you can help businesses avoid
tax drag as my lawyer says and then you learn into you you learn about
insurance because you're like oh this is cool too and it has really cool
ramifications also for tax but also for some some investment stuff okay
that's cool and then you learn how to negotiate deal structure ah now
we're can you start seeing how the person changes as we're talking about
adding these skills to the repertoire first you're talking about a
bookkeeper then an account then maybe a controller now we're talking to
cfo and then

27 00:26:00.000 --\> 00:27:00.000 you have an amazing mastery of capital
markets now you're a rainmaker and so the thing is is that for this
little example it's one plus one plus one plus one plus one sub one uh
equals a zillion right the point is that these skills stack on top of
each other and create asymmetrical returns to all of these skills that
came before it and as a fun example this was my actual skill stack so
first i learned how to get in shape and work out then i learned about
nutrition which was a whole nother thing then i learned how to sell so i
started making a little bit of money then i learned how to oops market
locally so i started getting leads and i already knew how to sell so
then it was like boom it was like a huge magnifier on the other three
skills i had before that then i learned how to operate so then i scaled
to six locations and then i learned how to scale sales team so i had six
people selling at all those locations and then i learned how to market
b2b nationally and because i already knew how to scale

28 00:27:00.000 --\> 00:28:00.000 sales teams i'd been doing it for
years i knew how to do high volume transactions i knew how to operate a
big business because i had 40 employees when i was 25. so i had all
these other things but as soon as i had that belief that i had a
different vehicle that i could pursue it in we went from zero to 28
million a year in 20 months pretty cool and so as a different example
here's jay-z's little skill stack he learned how to uh man see if i if i
could have like revealed it later it would have been funnier but it's
okay so he had rhythm right he had a natural skill or procrivility
proclivity towards rhythm all right then he learned how to write lyrics
and rhymes right then he learned how to sell got people his cds and get
on stage right then he learned how to promote himself then he learned
how to create a label and then he learned how to recruit other talent

29 00:28:00.000 --\> 00:29:00.000 and then you got beyonce right and so
the thing is is this making sense and so what might be valuable for you
because i think i've just been through an introspective period is to
think what is my skill stack and what are my deficiencies and which of
these deficiencies are keeping me from what i want and why am i not
working on them cool so does every human here see how you can become an
entrepreneur through higher leverage through auditing and improving your
skills traits and beliefs yes all right awesome check the box so
framework number two scale the market so i went to this mastermind all
the people in this little picture actually do 600 million dollars a year
in revenue which is pretty cool and i had this really interesting
experience because i was one of the smaller guys in the room in terms of
revenue uh at the time i think we were doing 35 or 40 million somewhere
in there um and i was like why are these guys making more money than me

30 00:29:00.000 --\> 00:30:00.000 because i was like i was like i don't
think these guys are smarter than me i was like why why are they making
more than me and so i was left with one thing right and the answer was
they picked better markets so when i looked at what all of these guys
were doing almost all of them were mass-market they were selling
something that was expensive and they could target the world and i was
like huh they have better markets than me and i was running up into this
this cap of my market right around 30 or 40 million and so here's a
quick little framework for you guys in terms of how to pick your market
because many times i said that the equation here right entrepreneur
level 10 times market level 10 times delivery vehicle which i'll get to
in a second level 10 times business acumen is what makes builds fortunes
all right so the quick answer was you have to select the avatar that you
can provide the most value to the number one question i get which which
avatar should i pursue the one you can help the most simple the medium
answer is pick an avatar so that you can productize your service and

31 00:30:00.000 --\> 00:31:00.000 provide that value with low
operational drag and that's why you pick one so you can do the same
thing over and over again and get better and better and better at it so
you don't have to spend as much resources to do the same level of value
which is create margins which is what you can take home and spend on
lamborghinis cool so this is my live speech answer if you had one thing
to get with your hot dog stand so i give everybody here a hot dog stand
and you have one competitive advantage what would you want would you
want the best location would you want the best ingredients would you
want the best tasting hot dogs best marketing what would you want ah
someone's read the book \[Music\] and this is actually a store of a
marketing professor who says this at the beginning of every marketing
thing of course they said what you want is a starving crowd because no
matter how shitty your location is if when the football game lets out
and everyone's drunk at two

32 00:31:00.000 --\> 00:32:00.000 o'clock in the afternoon and you're
the only hot dog stand there and you've got a starving crowd coming to
you you can sell out your hot dogs they can be dog \[ \_\_ \] you're
going to sell them right they probably won't even care right and so
these are the four attributes that i look for in a market that i want to
pursue one is pain right they must not want but desperately need what i
have to sell them number two they must be able to afford what i want to
sell them a friend of mine had a business where he could help people
improve resumes to get more jobs problem they didn't got no money right
can couldn't afford his services the third is tactical is you want them
to be easy to target right it's amazing if you want to find you know
vegan grandmas or whatever but if you can't tactically target them it's
one of those things that i would just cross out and be like sounds hard
there's going to be other hard things i'd rather not add one to my list
and then finally growing a good friend of mine um had a had an ad
platform that

33 00:32:00.000 --\> 00:33:00.000 he sold to newspapers and tries he
might it was growing and then his growth slowed and then it started to
shrink and he could not figure out what it was he was like i need new
hooks and he knew offers and he couldn't figure out he's a smart dude
and i was like hey lloyd i was like you think it might be because you're
selling the newspapers shrinking 25 per year compounding right it's just
the big obvious thing so if you're going to go into business you might
as well do something with the tailwind if you got the choice might as
well pick something that's growing right i know this stuff sounds simple
but some of you guys are in shrinking markets so i'm like why rich dad
poor dad right just make the smarter decision so i'm going to skip
through this stuff i hit it most of it and i'll just i'll say this one
little story that i like a lot warren buffett talked about one of his
the smartest classmate and his closest friend from columbia and he said
this guy was brilliant he was hard working really high character dude
he's like and i went to go build my

34 00:33:00.000 --\> 00:34:00.000 partnership the berkshire hathaway
well eventually would become and he went into the steel business he said
we did dramatically different even though we both had the same skills
and level of skill and he said and that's what taught me that it was far
more important what boat you are in rather than how hard you row and i
think a lot of you guys are in row boats and you need a bigger
opportunity vehicle and so the old vc saying is great entrepreneur poor
market market wins poor entrepreneur great market market wins that's why
when people are looking at investing they're like what markets do i want
exposure to why don't i just ride the tailwind so now once you've
selected a better market you're going to want to scale right right so um
i'll skip the story but sure \[ \_\_ \] it short story uh i had an
agency owner came up to me he's like alex i've scaled my agency

35 00:34:00.000 --\> 00:35:00.000 everything's saturated i can't get any
more clients should i enter another market guys doing 2 million bucks a
year spending 50 000 a month on ads and i was like you're right
chiropractors are completely tapped out the 10 billion a year that goes
to chiropractors and total revenue your rinka dink 2 million dollar
marketing agency has completely saturated whatever shall i do great
question friend these are the five ways you can scale your market so
let's just use salon owners as an example let's say that's your your
avatar of who you're going after whatever so there's your ideal market
weight number one you can go up market all right so that would be going
to multi location owners chains franchises etc number two you go down
market go to hair stylist people who will eventually become your avatar
in time number three you can go to an adjacent market so something
that's very similar in terms of the core desires of the customers that
you're serving right so might be lashes and nails you can go broader
which just means

36 00:35:00.000 --\> 00:36:00.000 going even wider right lashes nails
skid crews med spas you know salons massage etc right or you can go
deeper in your existing market which if i did tell you that is usually
my favorite which is buy competitors and go figure out new platforms add
outbound to your system increase your ad budget it's just doing more of
the thing that you're already doing which if you ever get anything
common themes for me is do the boring work if something's working do
more of it usually works better great so does everyone see how you can
enter a better market and then scale it framework number two boom check
it all right number three this framework that i'm about to share with
you is the opportunity lens through which i look at all opportunities
that i want to pursue all right it perfectly tracks my progression this
is actually pretty cool so i got this i borrowed part of this from naval
ravicon um who's really brilliant you can follow him on twitter um but

37 00:36:00.000 --\> 00:37:00.000 there's four four c's to leverage all
right i said the whole premise of this presentation is leverage so
entrepreneur check that box mark it check that box now scaling the
deliverable so i'm looking at a company i want to make the deliverable
more scalable increase the profit margin here's how you think about it
so the first level of leverage is labor so back in the day this is the
only kind of leverage that's how the pyramids were built that's how
ancient royalty had they just had bodies right the problem with bodies
nowadays is that you need permission to do things right and so you have
to ask people to do things or pay them to do things otherwise they won't
do them it's such a bummer right we'd make so much more money if we
didn't have to do that second our second level of leverage and this is a
higher level of leverage is capital this is what the next generation of
billionaires and fortunes were built off of buffett monger etc once
again they used other people's money so permission is required
unfortunately can't just take the money um but you can still make a lot
of money just leveraging capital right and at this

38 00:37:00.000 --\> 00:38:00.000 point in time it was leveraging
capital times labor the third of this is code the difference here is
that this is permissionless if you write software you don't need to ask
permission to duplicate it it just will continue to deplete over and
over again right at no cost so if you look at the mailchimp founders it
was code that is what created their billions and then finally you've got
content or media right that's how joe rogan can sell his podcast for 100
million dollars what's his product media it costs zero cost of
replication all right i'm gonna i'm gonna bring this home in a second i
promise you'll like where we're going all right and then you'll notice
that above the top line zero permission is required for either of those
things and that is where the new fortunes are being built and right now
if you look at that pyramid and you're like i'm not on that pyramid you
should get on that pyramid because that's where all the fortunes are and
if you look at the very top here these are guys that use all four bezos
zach dorsey they've got labor

39 00:38:00.000 --\> 00:39:00.000 working for them they've got capital
working for them they've got code working for them and they have content
and media working for them all of them with permissionless leverage
interesting cool we call that a leveraged forebanger it was funnier on
the plane when i added that slide so i was only able to see this trend
after i had made these jumps so my goal is by showing you this
trajectory you can do it proactively all right so each opportunity jump
that i'm about to show you 10x to my income at first i was an employee i
was a management consultant i was someone else's labor i was making four
figures a month then i became a trainer i was my own labor i'm my own
master right so i became self-employed i jumped to five figures a month
then i became a gym owner and then i got to finally use labor as
leverage i got to use other people's time right and then i went to six
figures a month then and this is a big pivot

40 00:39:00.000 --\> 00:40:00.000 i went from leveraging labor to
leveraging labor and media which is i started licensing right i started
licensing something that has no cost to replicate all right and that's
when we started making a million dollars a month i'm talking income not
revenue here by the way next level is eight figures a month and this is
where i think we're headed we'll do about 85 ish million this year we'll
see how the quarter ends um and this is because now i added capital into
this mix now i can buy things right so it gives me more leverage to
expand what i'm already doing and so this is what i think will get me to
eight figures a month i'll let you know when i get there um and then
finally nine figures a month is doing the whole stack right do i know
what i'm going to do there not yet but i got summers okay so mind you
this is a framework it's a tool all models have limits but it has served
me well and thinking how to expand is that helping you sweet so you guys
want a really cool bonus framework that i've been thinking about for a
long time i have six minutes left so you won't get it okay

41 00:40:00.000 --\> 00:41:00.000 i can go all right \[ \_\_ \] it well
pretend you never uh that all right okay so um cool you said yes to this
fantastic okay so this is low leverage this actually took me like you
know these little things take like five minutes each to the little lines
and \[ \_\_ \] anyways uh so here's framework number three scaling and
deliverable so this is the delivery cube so when i look at a business
that i'm looking to buy into or improve et cetera these are six
different types of questions that i ask which is number one can i do
this thing in a one-on-one setting a small group setting or a
one-to-many setting and can i change the price accordingly number two is
this a do it yourself a done with you or a done-for-you solution can i
move along that spectrum in either direction in a way that might
optimize my outcome for better profits number three what level of
support do i want to offer this is a little bit more service space but
hopefully it'll help

42 00:41:00.000 --\> 00:42:00.000 some of you um do i want to do tech
support do i want to do chat support do you want to do email support do
you want to do phone support we want to do zoom call support what type
of support do i want to provide do i want to probably different levels
at different income levels or different payment levels something to
consider consumption for if i'm licensing material do i want it to be
written do i want it to be live like this do i want it to be audio only
do i want it to be video how am i going to package the information
number five speed and convenience if someone has help for me is it 24 7
is it nine to five do they have a response time of under a minute do
they have a response time of two days right these are all variables that
you can use to increase or decrease the value or margin that you are
using to deliver and then finally this is probably my favorite of the
six boxes if you can have a favorite on a framework about delivery one
is i want you to imagine the value that you provide right now and the
price

43 00:42:00.000 --\> 00:43:00.000 you charge for it okay now i want you
to 10x that price now i want you to think about what you would deliver
if that were actually your price how much more would you do interesting
thought process blue sky do it on your own time but it's a good thought
experiment you should do with your team number two think again about
your your current product if you had to deliver more value than you
currently are but for one-tenth the price what else would you need to
build that would cost nothing to replicate to provide the value and
number three if i if i could have a favorite question of my last
framework of number box six this would be it if right now the gods of
marketing ryan dice gives the god voice and says you can no longer get
new customers from marketing

44 00:43:00.000 --\> 00:44:00.000 and the only thing you have are your
existing customers and the only way to get a new customer is for those
customers to bring them to you how different would your client
experience look food to think on the thing is that people think that
word of mouth is dead that book right now if you just do the math is
selling like 250 000 a month of books off of word of mouth and no
funnels people can spread stuff faster than ever before we're just not
taking advantage of it because we're too greedy and too short-term
thinking like if people aren't referring your stuff fix the stuff why
bother promoting it people don't want to talk about it i don't know time
check for myself apparently i'm on time um everything is for sale and
this is uh this is another quick framework i'll give you for scaling
delivery i have a ton of these these are just two that i wanted to bring
up so these are the only things you can ever sell because i've been
trying to think through what are the base chunks based units of \[ \_\_
\] you

45 00:44:00.000 --\> 00:45:00.000 sell all right you got products you
got services you got access you have media you have risk and you have
money only things you can sell and i challenge you to think about
something else and if you do figure one out that doesn't include these
as base chunks i'll add it all right because i've been thinking a lot
about this and what's even cooler about this is that each of these
components have physical and digital pieces so a physical product would
be a bag of you know dog bones right a digital product is what a lot of
you guys sell like a course right a physical service would be like a
massage a digital service might be marketing physical access would be
access to this event or to a real estate building that you rent every
day so that you can have shelter digital access might be if there was a
virtual recording of this live digital access you have physical media
like a billboard digital media you guys should hopefully know what that
is you're here you've got physical risk like your building is being
insured and you've got

46 00:45:00.000 --\> 00:46:00.000 digital risk like a cyber attack and
then you've got physical money and everybody knows about cryptocurrency
this is kind of cool the different things you can sell so here's the
challenge is can you think through how you can add one of these other
components to your existing offer stack without providing a lot of
operational drag but while also providing value all right and so i got a
couple i presented this to a couple a smaller group and they were like
what about experiences i was like experiences are products plus service
plus access a business is all of those things chunked together titles
like if i wanted to make you a knight right what do you get you get
access if i wanted to give you ip that is access to products so when
you're thinking through this like those are the base chunks that build
everything and so i think sometimes when we can just boil it down to
what are the base units it can be useful in thinking what else can i
sell or what can i transform my existing things into that are more
valuable and so here's an easy thought this is one of the more genius
things that we did is

47 00:46:00.000 --\> 00:47:00.000 that if you're an anybody here an ad
agency a couple people well i'll tell you what we did is that we uh we
had the agency side and they were like huh what if we just find the
winners and then license the winners every single month to everybody
else who wants to run their own ads all margin great idea made us an
extra million a month in profit you should try it good recommend um
number two add an experience to continuity right or add physical
products to digital experiences right these are all different ways you
can mix and match these things time check return fantastic does everyone
see i can add leverage to your deliverable from those two frameworks i
shared yes say yes awesome all right check the box number four scale the
business so we covered a lot today and we feel like this a little bit
all right fantastic so i'll wrap this up by

48 00:47:00.000 --\> 00:48:00.000 showing you what we can focus on in
each revenue level in that we what we focus on each revenue level for
our portfolio businesses when we come in to scale them all right so
these are my last five years of revenue um from 2017 until now all right
if you notice that's what being stuck looks like i didn't know what to
do and so um anybody want to know what happened there yes cool i read
this book um which i recommend it's a good book but there was one
chapter in it that completely made everything click for me and so i
applied that book because up to that point i intimately understood what
it took to get to you know 35 40-ish million but i didn't know how to
get past it now i do and that's what i'm gonna share with you all right
so who here is zero to a million can we leave egos at the door okay cool
one product one avatar one channel if you have multiple businesses and
you're under seven figures a year stop more businesses clearly aren't
making more money

49 00:48:00.000 --\> 00:49:00.000 one product one avatar one channel but
i thought i should have multiple acquisition channels you don't even \[
\_\_ \] make money yet so no one product one avatar one channel the
problem that you're trying to solve here is that you have no \[ \_\_ \]
clue what you're doing all right the objective is consistently sell
something to people actually want that's the objective that is why we
talked about picking the right market first one to 10 million the
objective is to increase the lifetime gross profit per customer i don't
like saying lifetime value because no one knows what it means and it's
revenue for the most part i like to think about what is my gross margin
on the things that i'm selling right the problem is that most times when
you're at that million-ish you're not making enough money take home and
so the problem is that you're not making enough profit per customer to
scale which is what is required to go from one to one million to ten
million and so the objective is to add higher leverage deliverables so
that you can make more money hence why we went over the deliverables
make sense awesome 10 to 50 million

50 00:49:00.000 --\> 00:50:00.000 what happens here is that your
consistency of delivery starts to drop and so what you need to do is you
actually have to start professionalizing the business this is where you
actually pay taxes and you know don't go to jail and pay payroll and all
that kind of stuff right um and the problem is that you've inconsistent
delivery you have poor tracking your crm issues are \[ \_\_ \] and your
finances are a mess all right the solution is you have to hire a high
level experience you've already done this before all right so that is
where framework number four is this is scaling the business this is
actual business acumen all right and then finally framework x uh and
framework one is alive this entire time because you have to become the
entrepreneur that is required at each level sometimes your best is not
good enough because what is required is more than your current best and
so i think rather than thinking like i'm trying my best it's like well
it's clearly not working so why don't we just try fixing the problem and
ignoring your feelings so framework x attract talent all right and this
was the piece that i was missing is that what happens is you have to
grow revenue streams innovation dies at this

51 00:50:00.000 --\> 00:51:00.000 level of business because one
entrepreneur can only do so much right and so you need other stallions
to come in who can drive revenue all right and so at this point the
business actually becomes a conglomeration of many businesses so think
about it of having 10 ceos that all run their own p ls that are actually
growing their own mini businesses within the larger context of yours if
you think about amazon amazon isn't one business it's a zillion
businesses globe together so as you scale it becomes more globbing
things together becomes more acquisition etc as a result of this all
right so here's the solution is you have to get new talent incentivized
to drive growth so i'm going to skip this story you guys want to hear a
cool mental model alex sharpens right here so there's six external this
is the function is how i define them let me get five and just yeah so
one is lead gen two lead nurture three sails four customer success five
ascension six resell all right these are the things that all of you
probably know how to do hopefully

52 00:51:00.000 --\> 00:52:00.000 right this is how you scale these are
the six internal business functions that mirror the external everybody
knows their cpcs their cpms what percentage click-through rate their
speed to response hopefully what percentage close rate you guys have but
i'll bet you if i ask you how many applications do you get a month what
percentage of those applications do you get to book a call what
percentage of interviews are you are you transitioning into a full-time
role what does your onboarding look like for a new employee what does
that training look like how do we ascend those people what is their
career path is it clearly defined for them with role a title and pay and
then finally what's our retention on this and i'll tell you the quick
story for why this is important so i had a team of right now we have a
big cold call team we have about 26 guys and the lowest wrong on that is
cold calling so they call people who don't know and so for those who are
like our sales team sucks like try calling people who don't even know
who you are and then get them

53 00:52:00.000 --\> 00:53:00.000 to buy a 40 000 thing so our sales
team is pretty good so we had this goal for two quarters my sales
director said we're gonna we're gonna add another 10 bdrs and i said
great goal two quarters later we haven't added 10 bdrs so third quarter
in a row i was like what's your goal he's like i'm gonna add 10 bdrs and
i was like i feel like we've done this before so why haven't you added
the 10 bdrs and uh because this is where we're like okay this many calls
equals this much sales blah blah blah right everyone's done this what do
you think the bottleneck was and i was like wait a second how many
people are you interviewing a week five from hr i was like well five's
not going to get us there because that was just replacing the churn of
the front line position and just like you have turning customers you
have turned in employees especially at the front line and so when we
discovered that the actual limiting factor was hr not running enough ads
to get enough interviews and changing the actual process we had 10 hired
in two weeks and

54 00:53:00.000 --\> 00:54:00.000 it took us three quarters to get there
and so two weeks later now we have double the applications that are
coming in for our business and i'll bet you that all of you have one of
these things you're one amazing hire away from all the growth you ever
wanted you just got to identify that that's actually probably most of
your bottleneck especially as you scale cool so does everyone have a
clear idea what they need to focus on to scale their business at their
current level yes check box number four awesome so did everyone get
something they can take away hopefully and drag their future by the
balls towards the present if you enjoyed this stuff you can get more
frameworks like this for free at acquisition.com that's a course there's
no opt-in you can just watch it it has downloads and all that kind of
stuff um it's free there you go and if you like this my book's 99 cents
i have a youtube thing that's free i have a gram thing that's free
obviously and if you're a company that's e-learning or brick-and-mortar
chain looking to scale we help companies that go from here to

55 00:54:00.000 --\> 00:55:00.000 here and beyond and at acquisition.com
we believe you should only have to get rich once thank you \[Applause\]
you
