https://www.youtube.com/watch?v=aOUK4DG0-kM

1 00:00:00.000 --\> 00:01:00.000 in this video i'm going to tell you who
to hire first when you are scaling your business number one question i
get all the time is when should i hire who do i hire at what point do i
know it's right and the first secret to this is that you're never going
to know by the way my name is alex ramozzi on acquisition.com we're
going to portfolio companies of 85 million a year and i have nothing to
sell you all right so let's rock and roll so one of the biggest issues
is when you're starting as a business owner is that you don't know what
the hell you're doing right and that's okay but what i want to introduce
you is a simple concept that i use um when thinking through this as a
simple tool that you can use when you think about your stack of time all
right so let's say that this is all of the time that you have in your
day let's say you spend a certain amount of time doing uh you know admin
work and then you do some sales and you do some marketing and you do
some uh you know let's say billing and then you do some uh you know
customer facing stuff the way that you determine

2 00:01:00.000 --\> 00:02:00.000 which of these things you hire next is
you look at two factors number one is what is the greatest percentage of
your time like where's the greatest percentage of your time that you
were spending number two is what is the cost that's the lowest cost
activity that is the highest percentage of time and so what you want to
look at here is a scribe of value to each of these types of things now
you can look at market value or what i prefer to do is which of these
things is making me the most money all right so right now there will
probably be activities in your business that make you money but they
don't make you as much money as let's say sales does and so we're not
going to outsource something that's crucial to the business at this
early stage when we have something let's say admin and billing that we
can outsource earlier on that have a lower likelihood of impacting your
business in a negative way all right so we're really trying to play
defense here when we're looking at how we're going to hire and the
objective and this is the main thing here because understanding what
problem we are solving is one of the most important aspects of
entrepreneurship is picking

3 00:02:00.000 --\> 00:03:00.000 the problem that we're truly solving
most people start solving problems that don't even exist we're solving
problems that not aren't even problems in their business they're not
even constraints that exist and so the objective of the hire should be
to give you time it should be to give you time back and so the idea is
how can i get the most time back for the least amount of money and
that's consistently the process that you'll continue to do in your
entrepreneurial journey is how do i get more time back over and over and
over again and independent what everyone says the process of
entrepreneurship is just buying back time and increasing your level of
skill so that you can do higher and higher revenue activities to the
point where the only thing and i'll tell you whether the final place
that you'll have is that you'll just be making decisions right this is
the highest level and then beyond that it's having a vision that
everyone is aligned with that they're making their decisions through you
provide the lens through which people underneath of you make decisions
in

4 00:03:00.000 --\> 00:04:00.000 alignment so that they can move the
entire organization forward on your behalf now when you're starting out
most times most times what you will need to end up doing your first one
of your first two hires will be one of these two things a it will be
some sort of administrative help or some sort of first follower who will
help you who believes in you believes in your vision and like this is
why spouses a lot of times end up being that first hire right that
girlfriend or whatever who ends up believing in you and you know
quitting their job so that they can you know support you and you guys go
do this thing together right and that's because they're gonna be they're
gonna be more invested you get way more work out of that person than you
would out of a normal employee but you can also find those types of
people and that is very common as the first type of hire is kind of a a
jack of all trades admin help person all right the other type of hire
that i see so there's usually one of these two is the first hire is
somebody who can assist with the fulfillment so if you have productized

5 00:04:00.000 --\> 00:05:00.000 your service which is going to be one
of the first things you need to do is figure out how you can rep
reliably replicate the same outcome among customers which is why it's
important to narrow down the type of customer you're servicing and the
type of outcome you're delivering so that you can make it easier for
someone else to accomplish the same thing as you so that you can focus
on running the business and not actually doing the thing you are selling
it is productizing the service and so that means that in the beginning
you'll need to always work overtime because you're basically working one
and a half or double so you're working on doing the business things
while also building the infrastructure foundation so that other people
can work within this model most people who are starting out i'll write
this down for you so that you can have a visual for it number one is
usually either an admin slash helper for you or company somebody to help
with customer fulfillment those are typically one of the first two hires
you will have and this is obviously with a broad generalization based on
a founder owned bootstrap business that doesn't have funding which 99 of
businesses fall in

6 00:05:00.000 --\> 00:06:00.000 that category all right now if you're a
three founder you know vc backed startup then obviously you might have
different hiring schema right off the bat but if you're starting this
from your from ground zero and this is you and you are hustling these
are usually going to be the first two uh highers you have because these
are usually the things that take you the most amount of time that
provide the least amount of value all right so that you continue to work
your way up this uh this this this value ladder which i can probably do
at another time as you go up this this ladder they should be the things
that take you uh that bring the most amount of money and the least
amount of time so this is a little time hourglass which i failed
miserably at but the most amount of money least amount of time that is
what you're you're spending your time doing and you outsource these
things in this order and that is the thought process that i use when i'm
trying to figure out what things and what people i need to hire next
which is what's taking me the most amount of time that i can buy from
the

7 00:06:00.000 --\> 00:07:00.000 marketplace the least amount of money
emoji nation make these videos because a lot of people are broken on
would you be one of them i want you to scale the crap out of your
business and i'd love to know um that this video helped you so anyways
lots of love keeping awesome nothing to sell you and i'll see you guys
the next vid bye
