"Should I Drop the Customers Who Don't Fit My Vision?"

0:00Thank you. >> Uh what's up, Alex? Uh first off, thank you for having us out to Las Vegas. This has been phenomenal. >> Oh, sweet. Thanks. >> Um but my question is about number one, the wrong customer {slash} too many. We do vacation rental property management. And we have no local competition, so we've kind of just been gobbling up >> Cool. >> all of the properties we can get. >> Mhm. >> Um but at what point should I start considering dropping some of these lower-end properties that don't necessarily fit the lakefront lifestyle that I want to build around?

0:31>> [sighs] >> Whenever you So think about the again, this is actually the capital. This is like the resource allocation question, which is by dropping them, what do you gain back? So not brand or anything like that, cuz no one's going to know. >> Okay. >> So there's some resources that you're going to get back by dropping them. And then if you take the resources that you're going to drop and put them into something else, at what point does that return on the something else outweigh the cost of dropping, which will be the money that you're not making anymore?

0:57>> Okay. >> That's one of the So we had we have um we have multiple different chains, but this process we look at on an annual basis. Like do we have underperforming locations? And is it an operator issue? Is it a market issue? If we control for the operator, we think, "No, this is a good operator. This market's kind of tough for this particular business." Then we'll trim the location, move the operator to a new location that we think is like that we're opening up that we think is a good market. And so that's that's how we just do that math. And that way we also keep our unit economics really strong, stronger cash flow, better return on effort.

1:28>> Okay. That makes sense. And now should >> Is it >> And should I almost consider keeping those properties and just bringing on more who's to help offset that? I mean, cuz those things can keep, you know, they pay the bills, keep the lights on as well. So it's >> Yeah, you might just have a who thing. Like you just need to bring one person in. We were talking about this. You just need to bring one person in who's intelligent, has a brain, couple hands, and uh >> Uh well, the people around me don't even have teeth, so that's an >> Oh, well, there you go, you know. We'll start with Yeah, start with start with teeth, and then you can move on from there. But yeah, it's So might just have a who thing rather than a cuz I mean, real estate's of the businesses that exist, the cash flow in those businesses is not it's not as hard as a turnkey agency or something like that. So like, I think you can find somebody to replace it. Cuz plenty of people, I mean, I got tons of friends who are in real estate and they just they have smaller assets and they just have property managers that manage them and just how they do it.

2:15>> Okay. >> Yeah. >> Thank you. >> Sure. 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. Again, absolutely free and since you're a business owner, appreciate you and enjoy.