https://www.youtube.com/watch?v=s59jbVBprn0

1 00:00:00.000 --\> 00:01:00.000 i had a business owner reach out
yesterday who's doing about 550 000 a month and they were requiring for
us to become an acquisition.com portfolio company and the conversation
was really interesting and so i thought i would share it with you so we
hopped on the call you know within the first minute or two you know
after saying hey you know how's it going et cetera um he was like yeah
uh you know i had a bunch of clinics and then covet hit we took
everything to telehealth and then our profit exploded and it's been
awesome and i was like well that's great and he's like so what i'm
thinking about doing is um helping starting a new business uh to help
physicians uh improve their their medical practices and i was just like
huh he was like yeah because you know you did this thing with gym owners
and you kind of licensed your model out i kind of want to do the same
thing with with with physicians and i sat there and i was like this is
going to be a really interesting conversation and so after him going you
know giving his reasoning behind this i was like well i have no interest
in that business at all um

2 00:01:00.000 --\> 00:02:00.000 and um i was like let me tell you why i
was like first off you want to enter established marketplace that is
incredibly saturated um the the value proposition that you have is not
based on like a ton of personal experience right you have a handful of
examples it's also not that unique there's plenty of other people who do
this same thing and so you want to enter a space you've never been in
before have a new acquisition system a value proposition that's not
defined it's incredibly saturated and there's nothing new and i was like
i have no interest in this business and he was like huh and i was like
but what i am more interested in is why don't you want to take the thing
that's making you 550 000 a month that you grew in two years and just
take that to five million a month like why aren't you doing that and so
he was like well honestly i kind of got stuck and i didn't know how to
how to grow it from from here and so it was it was such a nice point
because there was a pause and i could you could almost like hear him
saying it to himself and hearing him say it out loud i was like so let
me ask you this if we could go from 550 000 a month to

3 00:02:00.000 --\> 00:03:00.000 you know to tripling your your amount
of customers you have and going one and a half million a month i was
like would you still be interested in doing this whole medical thing you
know this other thing that you were talking about earlier with trying to
teach medic physicians and he was like oh no of course not i would just
want to do this thing and i was like okay so to be clear let me restate
this because you got stuck in this existing business you thought the
solution would be i will start another business huh not a good deductive
reasoning pattern right and this is and this is obviously a very smart
individual right and i say this because all of us right i do this i do
this all the time right and this is going to be repeated theme because
it needs to be repeated right we need to be reminded more than we need
to be taught that is a saying that we have in my world and i will i will
pass it on to you guys mosey nation we need to be reminded more than we
need to be taught do the boring work repeat successful actions and so if
he's gotten to this point or if you've gotten to a point in your
business and it has plateaued the question is has it plateaued because

4 00:03:00.000 --\> 00:04:00.000 this is true like i have the only
reason a business should plateau that is reasonable that is not your
fault is that you have reached the total addressable market as in you
have saturated the total the total market of that thing so for example
if you were selling dog food and every dog within this you know maybe
you saw a specific type of niche of poodle food right you've gotten you
know 70 of poodle owners to buy your food and you can't grow any more
beyond that right well that would be reasonable but then you'd obviously
just do a different type of dog right you you'd hop verticals right so
there's not even a reason but it would be the only potentially rational
reason would be that your market has changed so a different example is a
friend of mine owned a company that does uh newspaper advertising right
so they actually help newspapers translate their advertisements into uh
digital products which is pretty cool so they are able to sell like
basically a whole new ad product to small businesses um who want to buy
ads right which is by the way how newspapers make money he could not
grow

5 00:04:00.000 --\> 00:05:00.000 his business because newspapers have
shrunk by 25 year-over-year which is 25 compounding the wrong direction
and he's been in that business for like 10 years so now the market size
is like literally like five percent of what he used to be 10 years ago
and so as a result of that he was growing at an inverse rate to the
shrinkage of the industry right and so he got to a point where he
couldn't grow any more than just basically servicing the ones that are
still alive and then as they fell so did his business right and so that
is the only logical reason that a business can't plateau that is not in
your control and unless you're selling your newspapers which you're
probably not the reason is much simpler which is you just don't know how
and i'll tell you a different story that i had and then i'll i'll i'll
wrap this up at the end so i was having a different conversation with a
woman who was doing i think four million dollars a year and she was
selling uh info products that were weight loss like weight loss info
products so like programs and ebooks and things like that which is cool
right she's a big following all that kind of stuff and we got i went i
did a podcast with her

6 00:05:00.000 --\> 00:06:00.000 and uh after we got off the podcast she
was like yeah so these are my plans i'm gonna be doing like an apparel
line and a supplement line and uh cream line and or whatever right and i
just kind of sat there and i was like well i think that's a terrible
idea she was like she just looked at me crosstalk she's like what i was
like yeah i think it's a terrible idea and she was like oh and i was
like why don't you just take the thing that's making you 4 million and
make it make you 10 million dollars when you do that and the and the
answer is the same as the first answer i just don't know how and i was
like right well why don't we solve that problem and then not create a
new business why don't we just put all of our effort in solving that
problem and so i'm a big believer and this is the the piece that i want
to share with you mostly nation is that i'm a big believer in the theory
of constraints which means that a system will grow until it is
constrained right it has a constraint and then once you remove the
constraint it'll continue to grow right until it reaches another
constraint and so most people are always curious or many people ask me
hey alex how did you achieve quote so much in quote such little time or
at such a young age and i

7 00:06:00.000 --\> 00:07:00.000 say all that in quotes because so much
could be and young age whatever but i'm saying i'm just i'm paraphrasing
all right and i think that um one of the things that we have done well
is prioritizing what problems to solve and that is understanding the
prioritization of problems and realizing that there is really only
typically one or two things that are constraining our growth and by
definition there'd really only be one thing that's the constraint until
we reach another thing that might be beginning to constrain us but isn't
the true constraint yet i'll tell you a third story so i had a
conversation with a young business owner who was doing about 150 000 a
month within you know a little bit of time i was able to see that the
issue that he had was that he hadn't scaled a sales team right that was
the issues that he couldn't scale sales and we had there was a zillion
things that he could do to improve his business he couldn't increase his
lifetime gross profit he could change his price his pricing model i
think there were some things on his messaging that were off at the end
of the day the thing that he hadn't done was that he

8 00:07:00.000 --\> 00:08:00.000 hadn't scaled a sales team and so we
ended up circling back two weeks later and he was like hey you know um i
want to know how i can like get the most out of this this phone call
with you i was like well have you have you scaled the sales team yet he
was like no i was like well then we don't really have anything to talk
about because there's nothing else that matters right now besides this
and it took like two or three reinforcements of that message until he
was like you're really not going to tell anything else i was like no
because it doesn't matter it doesn't matter that's not the constraint
right now sure you could improve your pricing sure you could do these
other things but the thing that is stopping this business from growing
is that you do not have a skilled sales team and you don't have that
skill so let's phrase the deficiency as a question which is how do i
learn how to recruit manage and and and train a sales team and to the
first business owner the question that i said who was doing the 550 a
month was during the clinics it's like the question is how do i scale
acquisition and he had uh he had a product that was um it's not allowed
to be marketed on um on on facebook and things like that so

9 00:08:00.000 --\> 00:09:00.000 he had to do alternative methods and i
was like so the question is how do i acquire more customers than i
already am from a different channel that i'm allowed to when we phrase
the questions like that then they become problems that we can solve
right rather than i don't know what to do therefore i will just start
another business which so many times is the is the entrepreneurial
solution and it's because it feels good and we think that somehow when
we start another business it's going to somehow grow but the reality is
and this is what i have found over and over again is that the businesses
will grow to the level of incompetence of the entrepreneur so if you're
a 4 million entrepreneur the next business will be a 4 million business
doesn't matter what it is because that is your level that is your skill
set right that is those that is that is dictated or predicated by your
beliefs your traits and your skills and unless you change one of those
things when you start the next business you will be capped at that and
the other reality is that how many ceos of publicly traded companies do
you know that rc's are two companies ceos not founders elon musk is the
only is the only exception but he's the founder he's

10 00:09:00.000 --\> 00:10:00.000 not the one who's running he's not the
operator of those companies all right there's literally only one right
and he's also a genius and literally like the smartest human being alive
but most of us are not elon musk we're if we're on youtube right now
we're probably both not elon musk all right maybe we can agree on that
all right and so the point of this is that you can't be ceo of two
things it's hard enough to be in one business business alone is hard
enough right why make it more difficult and three times as complex by by
adding more variables in and so i think what most business owners most
entrepreneurs can do right now is simply ask the question and this is
usually what i'll start any conversation that i have with an
entrepreneur who's reaching out for something right or one of the
portfolio company ceos is i'll just ask the question which is whatever
the run rate is at the moment let's say it's a million dollars a month
i'm like what's stopping us from being at 5 million a month what's
stopping us and until we can clearly answer that question there's
nothing else we need to do and when we ask better questions we get
better answers why am i not growing is different than why am i not doing
an

11 00:10:00.000 --\> 00:11:00.000 extra million dollars a month what is
stopping us from doing that and if we can get crystal clear on that then
we can find the constraint and then we can remove the constraint because
we can put all of our effort towards that singular problem and that in
my opinion is how you scale companies quickly is it appears fast from
the outside but from the inside it feels manageable and clear because
we're all focused on the one problem that we're solving at this moment
which might be in the beginning we need to increase our sales team and
then once we've increased our sales team we might say hey you know we've
increased the sales team but they're not all performing the same level
so it's like okay we need to have better onboarding and training for the
sales team okay we need to do that okay that's the next problem that we
solve we have consistency in this process okay now we're doing that but
now we're not getting enough leads okay now we'll put all of our focus
here right and so each time there's going to be a constraint and we just
have to focus our attention towards the constraint and then in so doing
we will de-bottleneck and we will naturally grow to the next level and
so that has been one of the more valuable lessons that i've had and i i
will tell you that there are a lot of entrepreneurs who are listening to
this

12 00:11:00.000 --\> 00:12:00.000 you right now it might be you so i
might be talking to you right now is that you think that you need to
start another business or another product line because you're stuck at a
current level and somehow think that this new product line or new
business is going to solve the problem and it is not so if you like this
mother nation my name is alex from rosie i own acquisition.com you can
go there for free trainings all free no opt-in required etc hit
subscribe if you liked it and i'll see you guys next video bye
