"Is B2B Actually More Scalable?"

0:00So, my name is Weston, and I sell career coaching services to corporate executives. So, basically we help these people find their next role >> Okay. >> in the corporate space. So, we did 7.2 million in revenue last year. >> Congrats. >> About 2 million in profit. >> Amazing. >> And we know how to grow B2C. We know that we can do that, but we're really wanting to get B2B going. >> Okay. >> So, these enterprise level deals are a little bit more They're a different ball game, right? >> Okay. >> So, we're struggling to get our first B2B deal because they have to be big enough to have the budget

0:28>> Why do you want to do B2B? >> I just think it's more scalable. Like we can take it to bigger numbers. Like LHH is like the big guy in the space. They did 650 million revenue this year. We're not going to be able to take B2C there. >> Why What There's a lot of Cs. Why not? I actually want to know like why you I just want a better understand. Why can't you just do more of what you're currently doing? >> We can. I mean like we hit like 980 in in October. And like that was a big like a million month. Like that was a milestone where it's like, "Okay, let's start doing different stuff." And so, I don't know what I heard.

0:58>> [laughter] >> Um and so, yeah, I mean there's just like a bigger market. I mean we can close some whales. Why not? >> Yeah. Um I I'll tell you what my initial reaction is, which you're already probably guessing, which is like I will exhaust more before I look at anything new. And so, someone would have to make a very strong argument for me why I can't do more of what I'm already doing. So, if I were to like buy your company tomorrow, I'd be like, "Yeah, don't worry about that. Just What do you do What are you currently doing to get to get customers?"

1:25>> Uh it's Facebook ads. >> Okay. So, what are you spending a day? >> Uh anywhere from 3,000 to 5,000 a day. >> Right. I'd be like, "Okay, so how do we get to 100,000 a day in spend?" >> A day? >> Yeah. >> Wow. >> Like what stops us from getting to 100,000 a day? >> Okay. >> And the answer to that question is the constraint. >> Okay. >> So, what stops you from getting So, let's say 10,000 a day. So, that's a triple. So, like what stops you from doing that? >> We were there in October, right around 10,000 a day. And then we had like sales efficiency issues and stuff like that.

1:54Obviously Q4 is not like the best time to have that type of service. And so, um really just like making sure that our back end or our front end like sales called to close rate, all that good stuff is like able to >> Yeah. >> profitable. And we have a lot of like services like one-on-ones that we pair coaches really well. We have a writing team in-house that we pay. So, like there's there's costs. >> So, what would But that those costs are fixed cuz you'd have that cost in the B2B. >> Right. >> Okay. So, what stops us?

2:20>> My business partner's over here. >> [laughter] >> So, what stops you from from uh from just tripling or >> Yeah, I think it's just like front end like making sure that the sales people handle all the leads and the fulfillment on the back end. >> Mhm. >> to do that. And then it's consistent. >> So, think about this. Just Have you ever done B2B? Like enterprise? Okay. So, the thing is is that um they are higher leverage, but you're also going to have like 10 15 touch points. And so, the number of deals per guy is going to go down a lot.

2:46And so, there's also going to be multiple stakeholders that you have to get involved on their side and multiple stakeholders that you're going to intrude on your side. So, just in general for B2B like enterprise level sales, um you increase conversion rate and stick of a customer by increasing the number of people that are involved in the transaction on both sides. So, basically you want to show You want to show as have as many of these ties as you can to do enterprise sales. And I'm explaining this for everyone else, not you. Um

3:17>> [laughter] >> um because the the lowest risk-adjusted return move in any business is to do more of what's already working. And answer the question why why can't we do more? And so, if you have a sales efficiency issue, then like solve the sales efficiency issue cuz it's holding you back from tripling. That's Like cuz it also the the the the things that you brought up are all fixed problems. As in they're they're problems on both paths. So, to to to forego the path you're currently on for a new path that's completely unproven with with the same problems that you know already exist is a much higher risk move than just saying, "Yeah, why don't we just get to 30 million?"

3:54>> I see. Okay. >> If I were to buy the company tomorrow, that's what I would do. >> Okay, so just focus on maxing out B2C. Don't worry about B2B until we're like fully confident in B2C and like >> Yes. We're doing everything. Yeah, if you Well, not even that you're doing everything, that you have exhausted the market of C's. >> Okay. >> [laughter] >> Right? Like it's So, if you want diversity, then I'd still I would rather you go diversity of channel rather than changing customers. The riskiest thing you can do is a new business, basically. You're going to have a new You're going to have a new offering, a new acquisition Like everything's new.

4:24And so, I would rather if you if you have the itch for new, just get a second channel. But, I don't think you're even close to that. You're at 3,000 a day. >> The product stays the same. It's just Yeah, I think channel would be the the way to look at it. Yeah. [clears throat] >> Yeah, but I think you can totally spend 50, 100,000 a day for sure, just on that. And so, what will likely be the next uh thing that gets in your way is that your ROAS is going to drop. Uh and so, typically that's going to be uh you're going to need to have option one, better lead magnet. Option two, better creative. Option three, superior CRO conversion rate optimization just on the the the pages.

5:01Option four, improved sales efficiency. Option five, all four. And then that allows you to scale. And like fundamentally, the difference between companies that can spend 100,000 a day and 5,000 a day profitably is how good they are. It's literally just making all of these pieces better. And that takes time because you're only change one of those at a time, and this is why business takes time to grow. >> Fair. Okay. >> 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've broken it into 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.