45% Margins and Still Can't Scale

0:00Okay, so quick context I mean health care radiology so ultrasound x-rays and all that currently a single location brick and mortar. We are running everyday 80 to 100% capacity. The location is very profitable. It was brick and mortar what? Services health care radiology ultrasound yeah. Okay, so 80 to 100% everyday 45% net profit including my salary.

0:26So the only way to scale right now is to >> open a new salary is in your salary is included in the profit or like after your salary? After my salary. Like my CEO salary. Okay, so the only way to scale is to buy more machines and advertise more but I have no more space so we have to open a new location. You mentioned that I get to that is having SOP for opening.

0:52Could you describe what works for you in the portfolio so I can figure it out how to apply it? It's literally what so this is like for everybody. I I'm I'm getting to this really simple point where just life is checklists. It's just checklists just checklists on checklists on checklists like that's all it is. Every time you do a video for content you you check everything. You're like the mic is good. The lighting is good. You know, Layla's like I don't have a stray hair. Like you know what I mean? Like I'm just being real like it's what are all the things and it's it's it's usually not two or three things. It's like 28 things and that's just for how to break the front door.

1:26Right? And so it's just over time developing these checklists that make your business easy to run because if they check all the boxes then it works. And so if a sales process has these 18 things and each one of those things increases conversion by two to five percent then we have a conversion process that's really really good. And if we miss one we just decrease conversion a little bit and a little bit less and a little bit more you know as you go down. And so when you're opening locations it's what are all the things I have to buy up front right? And then you have lead times that go into that. Like so for me it's like painting walls is faster than buying equipment. There's a longer lead time, so you map that out timeline-wise and you're like, "12 weeks out I need to order all this stuff. 6 weeks out I need to order all this stuff. 30 days out I need to order all this stuff." And you just work your way backwards until the open date. And concurrently you have your advertising, which is what's my advertising checklist? Okay, I have to create all this media content. These are the partnerships I need to make. And I need to make the announcement on this day.

2:22And then I need to spend this much money per day on this media that already know converts to this funnel that already know converts. It's just it's it's boring. It's just super boring. But like that's what makes you a lot of money. >> Okay, so basically you just do when I when we open do more of what already works and make a checklist. >> Yes. Just incredibly boring. >> I know. >> But boring's also what makes you money. >> All right. Thank you so >> Yeah, so there is no magic. It's just all the stuff that you like In the beginning you're going to look at your current facility and you're going to walk around with a clipboard and you're going to write down every single thing that's in there. You're like, "We have a printer. We have spare ink. How many do we have?" You just walk around and you take inventory of everything. You're like, "Okay. Now half of this I can get on Amazon and I can save that cart." And so now every time I open a new location, I click buy, I add everything to the cart, purchase, ship it to the new location. These things I have vendors that I have to go to. Then you order those. Like it's This is how it is. Like that's that's it. And so I would just say that I want to make sure that you're making enough money that Like what's the return on capital for opening a new location?

3:24>> All right. So in this location it will cost us roughly 500K to open it, but we can make uh 500K per month uh once it's >> What's profit on the location? Within the first 12 months. >> So 45% net profit at 500 that's almost 250K. >> So 6 million a year at 45% margins off 500K. Great business.

3:49Yeah. Do more. Do better. That's it. Just build 10 of them and sell it for, you know, 100 million bucks. >> All right. >> Hey y'all. If you're a business owner and you are not growing as fast as you like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling roadmap, 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 decondition the business and you're trying to scale, we'd love to help you out. On the thank you page, you can just 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.