Do I keep selling pizza or sell the software I built?

0:00All right, I got Jax McGee. What's up? >> Hey, Shane. My name's Angelo. I sell pizza, so sauce, cheese, and pepperoni to humans. >> This is what we need to get on. >> Uh we do 4.4.2 a year. We're on about 30% margins. I'm going to be vulnerable here. I would like to be at W revenue. Can I skip that? Can I go down? >> Sure.

0:23>> So, what's stopping me? So, I'm kind of the cool kid back home. I'm as a leader. I don't work my stores. I have full capacity and I have >> Uh three. >> Okay. >> Three stores. So, I have I have great teams. Everything's in place. I have opportunity to scale, unlimited checkbook, all the things. >> Yeah. >> During the process, when I bought my time back, I was like, what am I going to do to make the business money? >> Uh-huh. >> So, I built a tool and I just And that's how I run my business.

0:50>> Uh-huh. >> So, other humans want the tool now. So, I was invited to a $350 million company. Was like, "Hey, what are you doing?" So, then I showed them. So, now other humans want the thing. So, it's Do I continue to do pizza? We'll give them the tool. Not the woman in the red dress. It's kind of like humans like the thing that I built in It's kind of cool. >> Yeah. Um What does it do?

1:42>> Uh simply I actually essentially what you did with Jim's launch. >> Okay. It's like a CRM? >> Uh yeah. Um it's more of an operating system, yes. >> Yeah, like a pizza OS. >> Yeah, actually, yeah. Yeah, there you go. Yeah. Um Would you process payments through this? >> With Stripe, we could. Yes. >> Okay. Um Well, what So, we got to go back to W revenue.

2:10>> Mhm. >> What do you want to have happen? >> What do I want to happen? >> Uh-huh. >> So, with the revenue in in pizza I'd I'd just go buy 10 units when I get home and do the thing. So, over on this side, I'm just I just don't know what I don't know. >> Well, let's level up a a minute. So, what What do you want to have happen like business outcome-wise? >> Okay, for the new thing. >> For everything. Cuz there's multiple ways up the mountain.

2:36>> Mhm. >> So, you could option A, forget about the tool. >> Mhm. >> Uh and Well, not forget about it. Just use the tool for yourself. >> Mhm. >> And just run your own stores and buy stores for nothing cuz pizza stores are very easy to buy for basically nothing. And basically turn them around and then have a big chain of pizza stores. Your edge is that you have this operating system that no one else has. That becomes a very viable and sellable business. For sure. >> Sure. >> Option one. That can That can get you a very big outcome.

3:04>> Mhm. >> [snorts] >> Option two, you take your take your tool and uh Yeah, you take Pizza OS, right? Um and we build a different model around it. And so, there's a lot of other models you can have with a you know, SaaS tool like that that is uh CRM / payment, you know, centric. >> Mhm. >> Um There's kind of a turnaround business where you can let all pizza stores start for free and they will process their pizza through your thing. And then for people who are doing real revenue, you could say, "Hey, I can help you out."

3:40And then you get a percentage of the revenue. That's a very light model that could still have tremendous enterprise value. That's called like option two. Um Option three is that you do that. Um but the thing is is that you and then you just go full software, right? Uh, you it's a very different life than you have now. So, you'd have to be prepared to like you're no longer a pizza guy, you are a software founder.

4:06>> It's what I feel like and to answer your question, what what you did for all of us in this room, I feel joy knowing that I can do that for others. >> Sure. >> Right? So, that that does feel like the way I want to go. >> Okay. >> Pizza's kind of like >> Cool. >> Yeah. >> Uh, leadership, influence, standards, hard work, paying ignorance tax. And I accidentally created the thing cuz nobody had it, so I just created it.

4:30>> And here we are, so. >> I think, um, I'm going to give you two things. So, one, I I think either opportunity could make you as much money as you want. Either way. You could have 100 pizza stores and make a lot of money that way, use your tool, or you could use the tool and do some sort of, call it, franchise light or you could franchise heavy and use the tool. Either way, some version of B2B to that. What I the second thing, so my my advice is that you'll win either way because winners win. And so, it's really what path of down you want, you're going to get there either way.

5:00That's thing one. Thing two is that the view's going to be the same. The view's going to be the same. And so, right now pizza's cool cuz you figured it out. You'll figure this one out, too. At a high enough level, you'll have a head of marketing, you'll have a head of sales, you'll have a head of head of IT, you'll have legal you'll have employees sleeping with employees. Same It's the same everywhere. Yeah. You're going to have the same five to seven people who are reporting to you. And if you build it all the way up in either level, you're going to have the same caliber people reporting to you.

5:27And so, you're not you're not going to be in the pizza business. If you're in the pizza business, you're going to be in the people business. And if you're in the software business, you're not going to be in the software business, you're going to be in the people business. So, it's up to you which one you want to do. I think at the end they end up converging. So, I think right now it just looks different and different's always fun. But at the end of the day, you could take both up the mountain. And it's an entirely a you choice. I think you'll win either way and given how it seems like you've outsourced the pizzas, I would say if you are going to pursue the other path to sell the stores.

5:57Because you need all your focus on it cuz the people are going to try to compete against you are for sure going to be focused on and I think out of respect to the competition, you should not expect that you're going to beat them with one arm tied behind your back. Very helpful. Rock and roll. Appreciate you. >> 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 deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page, you can 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.