Don’t Open a New Location Until You Do This

0:00You don't have to have a thousand of these. If you get 10 good ones in good markets, what will be like the step that's between where you're at now? So, let's assume that you take these steps that we went through and you scale up to a number that you're like, "This is really good for this facility. I don't want to like build out more or anything like that." >> [sighs] >> Once we get to that point, the next step is actually me doing what we call scale zero, which is how do we get you to do zero in the business and then have the business still continue to operate at the same or better than it was with you operating it. Once that happens, then we have the duplicable model because what happens most of the time is business owner starts to make money with and they're working in the business and then think, "Okay, this is working.

0:43Therefore, I will take this cash that I'm making over my next location." Then they take all their time and go to the next location. The profit here, let's say the let's say the revenue drops by 20% and the margins 25%. All of a sudden, they went from, you know, making a lot of money to making almost nothing, but now they doubled their overhead because they've got this one. And this one's not growing as fast as the other one did because they put years and years of sweat effort over here and this is brand new. It's new staff. You don't have the same word of mouth. And all of a sudden, now you're working twice as much and making less money. That's what happens most times and that's what sucks. So, from a belief perspective, that's like the big mistake to avoid is like expansion should happen when you're making more money than you know what to do with and you have more time on your hands than you know what to do with.

1:23That's when you expand, not when you're like, "I'm not making enough from this facility." This totally applies to you. "I'm not making enough from this facility, so I'm going to open another one." That is like that is how so many people think about it and I only say I know that because I did it. Um and it's the wrong way to do it. Real quick, if you are a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly, where they got stuck and how they got past it. And so we broke it in these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so no matter what you're struggling with, someone else has already struggled with it and solved it. And so I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you de-constrain the business and you're trying to scale, we'd love to help you out. On the thank you page, you can just book a call with my team and we will look at the business, see if we can help, and if we can, we'll invite you out to Vegas and we'll do this in person live.