You Have to Turn Down Money to Grow.

0:00Da, da, da. All right, Christian. You're up. If you're watching on the live stream, you're up, man. >> Yo, what's good, man? It's Christian. >> What's cooking, Christian? Talk to me. >> So, my name is Christian Willard. I'm 23 years old. Two years ago, I was homeless, had $0, sleeping in my truck. >> Cool. >> I am I do residential concrete. I just started my franchise where we're going to be doing a million dollars this year in revenue.

0:26>> Amazing, man. Congratulations. >> Thank >> Amazing. Okay, so talk to me. So, you're doing a million dollars this year is what you're saying that you're pacing? >> Yeah, yes, sir. >> And so, the franchise, are you the franchisor or franchisee? >> I'm franchisor. We just paid the franchise company a ton of money and they're going through all the documents right now, the FDD. >> Got it. All right, cool. All right, so but your $1 million is that coming from the franchisor or your one location? >> Uh one location here in Marshall, North Carolina.

0:53>> Heard. Okay. What are margins on your uh on the concrete business? >> 25, 30%. >> Okay, got it. So, 250, I'll just say 250-ish K. Is that including owner pay or no? >> Uh yeah, that's that's uh just just turnkey. It's pretty pretty low. >> No, including is that 250 what you make plus the profit of the business or is that >> That's turnkey. Turnkey. >> So, okay, so with a manager. Heard.

1:17Okay, understood. Understood. Okay, got it. So, um how can I help you? >> Um to be honest, man, uh this is kind of taking a step into franchising. So, I mean, um you know, we don't we don't have a lot of overhead. We pretty clean on our revenue. It's just going to material and self-splits. >> Why don't I just give you some Yeah, well, I'll just I was like, let me just give you advice. Okay, so here's the thing. If you if you pull this out on a longer time horizon, the only thing that's going to make a franchise successful is its franchisees.

1:46Literally, nothing else matters. >> Yes, sir. >> And the way to do that, there's there's a couple things. So, number one is that you're going to succeed based on the quality of the franchisees. And so, as much as you're going to want to sell and you know, chase fast growth revenue or whatever, you want to keep the bar for your franchisees high as humanly possible because how good they are is going to be how good your franchise is. And your unit economics in terms of average revenue per per location is going to be one of the main things that makes these things tradeable and sellable in the long term. And the thing that's going to get better franchisees in the future to come and want to buy it. So, your first like 10 20 franchisees, you have to be like these guys can can kill anything. Like you have to find studs who are going to do this. It's absolutely a two-way thing as much as somebody can look look hopeless and you're going to want to have the franchise fee and all that stuff and take the cash up front.

2:35Resist the urge because those 10 are going to be the ones who give you the averages. They're going to learn a bunch of stuff with you. You're going to want to be You would really want to see them as partners, not customers. >> Insurance. >> All right? So, that's thing one is picking high quality franchisees. The second thing is do not get do not get um distracted by many different revenue streams with the franchise. Don't try and complicate it. If you have a model right now that works, just make the thing better. And by being better, usually it means how can I remove complexity? How can I automate things that don't require extra people? Like it's it's those things that can improve the model rather than like we're going to start adding this service and this service and this service in because then people just die from a thousand paper cuts of lack of um lack of focus.

3:21>> Yes, sir. Um I'm pretty certain yeah, we'll keep it pretty simple. I appreciate your your advice, man. >> No, you bet. And then from uh from a long-term perspective, how are you planning on getting the franchisees? >> Um it's actually going to be posted on my Instagram brand. Um and then I would actually I was going to actually go and vacation in other cities and like go to Angie's List and hire fake estimates and just kind of like pitch them there on the spot, you know what I'm saying? That's kind of my idea how I was going to get them.

3:47>> I mean, I don't think it's a terrible idea. Um Yeah, I think it's a good place to start. Again, it's like you want winners. >> Yeah. Yeah. >> So, that's what you're going to look for. The tough part is that if you're finding somebody who's like struggling and then wants to convert over to your thing, it's like they might just not be winners. So, something to be mindful of is like maybe you take 10 of these pitches, maybe five of them want to buy, maybe you just say yes to one.

4:13>> Okay. I mean, I'm I'm not opposed. Like it's not to me like you know, from being homeless to you know, >> You're a winner. >> now it was like it I'm not I'm not money hungry. I'm about you know, building a brand >> Yeah. >> Um I I turn money away all the time. You know, when it comes on to like people wanting to to join in and do these things. You know, like you said, being picky, man. And I'm I'm 100% with you on it, man. >> Well, I appreciate that. And I think that your your customers and franchisees will appreciate that, too.

4:39Um keep the bar super high. Don't overcomplicate the model. Don't be in a rush to scale. And at the end of the day, uh I said the only thing that might be beneficial for you is well, I don't want to get ahead. Just do those two things. That's the main thing. Just do those two things first. Get to call it 20 20 to 30 locations open. And then I think at that point, you'll have enough cash flow to sustain bringing on a more experienced exec who has done Ideally, you want somebody who's had one big success. He's He's He or she is hungry and wants to do it big um with another one. So, it's like they get one set of reps from somebody else. They were in charge of it, but they didn't get as much as you know, skin in the game. You know, give a few points of equity uh that they have to earn with a one-year cliff so that like you don't give it away too soon or anything like that so that they can drive the sales and then you can you can run the overall org.

5:33>> Yes, sir. Dude, I greatly appreciate this. This is going to One day, you'll see it, man. And uh it'll be awesome. >> Well, I look forward to it. Congratulations, man. It's a great story. >> Thank you, man. Shout out to Jesus, my hot wife, and my awesome son. >> Well, I love it, man. All right. See you. If you like this video and you're a 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 road map 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.

6:03Again, absolutely free. And since you're a business owner, I appreciate you and enjoy.