https://www.youtube.com/watch?v=7NqsFh5ej0w

1 00:00:00.000 --\> 00:01:00.000 in this video i'm going to walk you
through the first five hires that you need to bring on in your company
as you are growing and as a fundamental framework to think through this
you want to think about especially for the first five that they are
really just helping you do more and so think of them as extensions of
yourself over time we're going to transition from that philosophy to
really building a team in departments but each of the five will more or
less correspond to being an extension of you and doing the repeated
tasks that are time consuming but do not necessarily add as much value
as some of the more strategic pieces of each of the roles all right and
so if you don't know why i am my name is akshmosie on acquisition.com
it's portfolio companies about 85 million a year and i have nothing to
sell you welcome to mozi nation i make these videos because a lot of
people broke and i do not want you to be one of them so let's rock and
roll so the first of these things in terms of the order and sequence
that you're going to be hiring them in is going to be in the reverse
order of the value that's being delivered and or where you can get in
the marketplace in terms of dollars per hour and so the more valuable
the skill the more it will cost and so you want to replace the skills
that cost the least amount of money for you right should make sense and
so typically one of the first two hires and this can happen in any

2 00:01:00.000 --\> 00:02:00.000 order is going to be one person who's
going to be more of an administrative help to you because as you start a
business especially in the beginning there's lots of administrative work
that needs to be done it must be done but it's not necessarily the high
value work that's going to move the business forward but it must be done
and so number one will typically be someone in that type of role the
second hire will typically be somebody in the customer success or comes
to a support role all right and you're still likely going to be heavily
involved in the success or delivery of the product or service that you
have but this person is going to help take away some of the repeated
tasks that you are doing that are not necessarily value additive but
must be done all right so this is like handling returns talking to
customers about repeated tasks uh you know switching out billing stuff
and again you'll see that there's some crossover between this
administrative role and the uh help with delivery because in the
beginning that's where a lot of your time is going to start occurring
note that you're still probably marketing you're still probably selling
because that's what you need to do at this point in the game the third
piece will likely be the first sales person all right and that's because
and again this will depend based on how good you are at sales right so
like if sales

3 00:02:00.000 --\> 00:03:00.000 is not necessarily your strong suit
then you might take this earlier if it is a strong suit of yours you're
gonna take it a little bit later because your dollars per hour in that
roll continues to grow and so i don't want you to take these as hard and
fast rules these are just general rules of thumb that the corresponding
framework that you need to be thinking this through is how much value am
i making per dollar and then how much would it cost me to replace that
dollar per hour so it's like if i do not generate a lot of dollars power
and it doesn't cost a lot of money then that will be the first thing now
if i'm generating a lot of money and i can replace it for a medium
amount of money then it's like well i'm the it's the net difference
right and that's what we're looking at in terms of how we're replacing
each of these roles and so right off the bat you're gonna have some sort
of administrative help then you're gonna have some sort of customer
support help then you're gonna probably hire some sort of sales role
from there now kind of depends a little bit on the role you'll probably
have someone who starts assisting you with the promotion or marketing of
your business so this is oftentimes somebody who's doing setting or
doing prospecting for you or if you uh generate customers based off
content this is probably somebody who's being a videographer of some
sort or helping you create the content in some way some of

4 00:03:00.000 --\> 00:04:00.000 the more laborious parts that are not
as value additive that would be kind of that fourth looking higher and
again that can flip with the sales role so like if for example you're a
killer salesman then you might have somebody who's prospecting and doing
some of the intro calls for you so that the majority of your time is
spent just closing which is the higher value task so hopefully this
common theme is working out and making sense to you because it's like
the number one question i get or one of among the top questions i get is
like what order should i hire people in when i'm starting my business
the next one is and again all of these roles can be some of these things
can be fractional right in the beginning so you'll probably have some
sort of fractional bookkeeper which is really filling the gap for the
finance hole so they're just doing basic level of accounting for you to
get so you just know how much money you're making at that time they can
help you take control of your expenses etc over time that rule will
probably come in-house but much a little bit later so like before you're
at 100 000 a month you probably don't have a ton uh that's going on so
just having a fraction bookkeeper is sufficient same thing with you know
somebody's helping you with your taxes somebody who's helping you with
legal stuff like you'll have a lawyer but it's not going to be in-house
and so as you're moving up this value ladder in terms of the the value
per hour and the cost per hour that you can

5 00:04:00.000 --\> 00:05:00.000 get this the process of
entrepreneurship if you think from a big picture perspective it's always
just buying back your time so that you can level up the amount of time
you're spending on high leverage activities now here's a key point i see
this happen all the time i'll see entrepreneurs replace all of their
time and then they don't do anything with that added time to add more
value and so in that case your profit margins will go down because you
are not continuing to add and do the things that generate the income now
as you progress each of these roles become more solidified and these
people ideally in a perfect world actually can ascend up and then have
teams underneath of them the person who was helping you originally now
has a team of people helping them the administrative person originally
you might have to send them into a director of operations who's really
pushing each of the tasks and projects forward they end up being a mini
project manager for you if done properly right the sales person might
become a sales director or sales manager who's actually leading and
training a series of sales people now i will tell you that a lot of
times people have the difficulty of going from an individual contributor
at a high level to a manager it's one of the hardest transitions in
business and it's commonly messed up by

6 00:05:00.000 --\> 00:06:00.000 most people all right and so one of the
things that comes with experience in entrepreneurship is you recognize
the people who have the talent to do the thing that is required later so
you can hire those people earlier on now you can't take you know a cool
a billion dollar company and put them in as your operator one because
they probably you can probably afford it and two they're probably not
that interested in the opportunity yet unless you have funding or some
sort of vehicle that you can acquire that talent earlier and so as a
final concept that i want to introduce to you is that whenever you are
starting a business you are incurring debt and this is something that
i'm now very very convinced of and so you were incurring lots of types
of debt you are incurring life debt you are incurring management debt
you are incurring financial debt you're encouraging technological debt
right so that a technological debt which by the way is probably if you
had another next full-time hire it's usually a tech person who's helping
you manage the crm build out sites and kind of make all the things that
you want to have happen or know should be happening the background
actually happened in the real world they're helping manage passwords
onboard new new people in terms of getting them logins all that kind of
jazz and so in terms of the debt that you're incurring if you don't have
a good crm that's in place you will incur

7 00:06:00.000 --\> 00:07:00.000 that debt and then you'll have to pay
it back with interest later when the company's bigger if you don't have
a good bookkeeper in place you'll have your finances will be a mess and
as you scale you'll have to fix and pay back that debt later if you have
not the best people or the values are not there then you're encouraging
management debt which means you'll have cultural debt which means you'll
have to pay that back later and so the idea in terms of moving quickly
in the game of entrepreneurship is recognizing which debt i want to
incur in what order and so i used to poo poo the idea of investors and
venture capital and things like that who gave people money to start
because i was like that's not real entrepreneurship and i think as i've
you know weathered or aged in the game i don't see it that way anymore i
just see it as just fundamentally an advantage is that they're choosing
financial debt to incur fewer other debts incur fewer operational debt
incur less talent debt management debt crm debt like you might have to
have a bigger crm that's better for you so that you can scale with
having to switch platforms which is common but it would cost more money
up front so if you're bootstrapped you might not be willing or able to
do that but if you have funding or you have money that you're willing to
invest in the business upfront then sometimes you can do that and so one
of the things

8 00:07:00.000 --\> 00:08:00.000 that is difficult with people who grow
bigger companies faster is that they skip through the earlier stages
because they know how to do it and so it's the reason that each of the
companies that we've had subsequently have grown bigger faster stronger
than the companies that preceded them because we are willing to incur
less of the other types of debt rather than financial debt because we
have the finances and so we can skip steps in the growth process that
would normally off-rail a quarter's worth of growth by implementing a
new crm or offload a quarter or set me back another quarter because i
have to fix my financials or set me back another year because i have a
whole bunch of management team in place where inexperienced and i need
to get more been there done that's on the team and fewer i'll learn as i
go and so as we're thinking through this and you're hiring your team the
two major frameworks that i'd like you to take away with this is number
one you're hiring in reverse order of value that you are providing and
cost to the marketplace that you can use to replace it and so typically
you will one gets customer support two some sort of administrative role
three some sort of sales or setter role four some sort of marketing
assist five some sort of fractional bookkeeper and or a sixth

9 00:08:00.000 --\> 00:09:00.000 which would be your it person or tech
person that is usually the beginning of the core team and then a
christmas tree is down so each of them right now have five people
hanging off of them let me see as this that doesn't freeze there we go
you'll have five people hanging off of each of these not necessarily 5it
people but hopefully you can understand it especially on the marketing
the sales and on the delivery those are the teams that tend to grow as
the companies grow and the you know it and and finance departments and
hr departments which end up getting built over time there's a ratio that
is a higher ratio as in you need fewer of them per amount of customers
or employees that you have in the company and so as you scale that is
framework number one and then framework number two is be mindful of the
type of debt that you are incurring and make sure it is the type of debt
that you would prefer to incur if you have the choice and so if you are
new to the channel welcome to mozi nation i have nothing to sell you and
enjoy the next video bye
