The $50M Company Hiding Inside a 3% Margin Business

0:00Um, so what stopped me is customer acquisition. >> Okay. >> A little background is we do all of the production in-house, so we control production. >> About 20% >> have a warehouse and all that? >> Yeah. >> Yeah, okay. >> In Kentucky. Um, let's see, about 80% of our capacity is taken up by a one big contract customer >> that we just get paid on the screen printing. 20% of the capacity is our own business. Our own business is about three times more profitable than

0:31>> Okay. >> So if we flipped, we already have the capacity done. >> If we flipped from that contract customer to our customers, we would be a $50 million company today and our employees wouldn't know that anything had changed. >> Okay. >> And so, we really suck at getting people to come to our website. And we are exactly like our competitor, like the contract customer we print for, their customers are our customers. >> Yeah.

0:56>> They're huge, we are not. So, my question is, um, >> What do you do? >> Help me. Yeah, where do we start? I mean, we have >> That was a great question. >> We have a We have a website, you know, and then we have outside sales people and they both bring in about the same amount of money. >> Okay. >> We want to scale the web because I can sell 24/7 across the country, whereas >> Okay. >> the issue with outside sales.

1:20>> Okay. There's So, two things there. So, first one on the 80%, what percentage of revenue is that? >> Uh, like 45%. >> Okay, so it's it's material. >> [laughter] >> But it we And it keeps our workflow steady for now. Yeah. >> Yeah, there's there's advantage to having a warehouse. Yeah. >> like to have it all. >> Good. Yeah. So, uh, what I'll tell you what I'm not going to say is don't kill your whale. I don't think that's a good idea. Like, we never stop a flow until we create another flow. Um, and ideally we just don't stop flows, preferably.

1:47>> to do, yeah. >> Great. Um, so, what So, right now you're at full capacity because of this setup. >> No. >> Okay, how much capacity do you have left? >> About I'd say 25% right now. >> So, that 25% we have to demonstrate that we can double the other 20% of the business that's three times as profitable. >> Mhm. >> So, we have that double that's sitting there, correct? Like you could double that side. Okay, got it. So, on the website, now, magic question, what stops us from doing more?

2:14It was there, but more. >> Right now, I I feel like I might have answered a lot of my questions through that initial thing. I mean, more is one, knowing we need to do more, two, the manpower to do more. >> Okay. >> Um >> Let's solve one at a time. >> Yeah. >> So, we needed more, so we're in agreement there. >> Mhm. >> Um on the website, what does more require? >> Uh more ads is what I'm saying. >> Okay, what stops you from making more ads?

2:40>> Uh manpower. >> Okay, got it. So, you need more creative is the issue. >> Yes. We we we film all that our own. I mean, there's a question if our they convert, but could they be better? I'm sure. Like, are we doing the right thing? >> Okay, so it's not a spending issue. >> No. >> It's not an LTV to CAC issue. >> No. >> Okay, great. So, we just need more creative. >> Right. Maybe. >> Okay, this feels really solvable. Um okay, so I mean, how what's spend per day, and how many pieces of creative are you making per day?

3:11>> Yeah, this is where I should go sit down. Um >> No, you're good. >> [laughter] >> Spend So, let's just say for a month it's 25,000, so a little less than 1,000 a day. I mean, we're running like 15 ads. >> Like a month? >> Yes, yeah. >> Got it. Yeah, so I mean, we just got to get to like 50 a week. And 50 week is not hard. Like, it's it's like it's not hard to do 50 ads a week. Like, you can do it in like an hour and a half. Um and then you just have a couple editors.

3:37And given the size of your business, what are your uh margins right now? >> Uh about 20%. >> Okay, so you're at three or four million, whatever profit, somewhere in there. Yeah, so if you hire three editors and they cost $200,000 in total, it's going to not your life's not going to change. >> Sure. But your business could double. >> Yes. >> That feels worth it. >> It does. >> You want to do that? >> I do. >> Let's do that. >> And if there's anyone here who is looking to equip their business >> [laughter]

4:06>> So just as a side note, when you're looking for editors, I would look for organic people, not people necessarily who are kind of ad specialist, because organic and paid have more or less merged. Um and so your best pieces of organic that get proven are going to be the ones that you're going to put more money behind anyways. Um the only real change that you'll probably add is maybe like a lower third banner that has a CTA on it onto an existing winning creative. Um or you can slice in a CTA at the end with like a freebie or some whatever your lead magnet is to make that make it all make sense.

4:34Which means that you can take your editors, ramp up your organic, which will get you more leads, and then it literally take all that organic and make it paid. If you like this video and you're business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling roadmap that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out. Again, absolutely free. And since you're business owner, I appreciate you and enjoy.