"We Do $400M in Sales. What Do I Focus On?"

0:00Um, I have a uh, it's it's it's it's a it's a good problem to have. Uh, my problem is that I'm into real estate. Uh, that's not the problem, but I'm into real estate. I sell and buy real estate. We have a team of 20 people. We do about 300 million in real estate sales. This year we are going to do on track to do about 400 million. Uh, that spits about, you know, in my brokerage, uh, about over a million dollars in, you know, on a 50 55% EBITDA. Um, so it's good business. But what happened was because we built all these systems, uh, you know, in place to do follow-ups and CRMs and everything, there were other real estate agents who didn't want to join us, but they wanted our systems.

0:40>> They didn't want to join, yeah. >> Didn't want to join us because, you know, they had their own thing. They wanted to build their own brands. Just a side note here that I generate all the leads for this business. I'm the sole lead generator for this business. >> So all the other business works off >> Works on my leads, right? So, uh, but here they don't they want to generate their own leads, but they don't have the systems. >> Sure. >> We started selling them systems for $30,000 a year, $2,500 a month. Just I just pulled that number off my ass, you know, like I didn't have a strategy for I didn't We didn't even have a website for this, right? And now we have 22 clients. We just, uh, onboarded our first dentist client because the system works the same. Because what I'm trying to do is what we are doing is we are, uh, you know, we are helping them make more money using social media. And that concept remains the same. I don't necessarily want to sell sell to dentists, maybe sometime in the future.

1:27>> But now the problem is Yeah, we did, right? But now the problem is that in 7 months we have been able to do $300,000 with only 5% of my time here, whereas 95% of my time is here. I can probably 5x 10x this, you know, in 5 years, but this I just feel there's more scale. The LTV to CAC I did yesterday, it was 9.8 for this business versus a five or a six for this business. So, I just I didn't buy into this. That's what I'm doing.

1:53But does it make sense for me to do this more? But, I don't want to do both. >> No. >> No. >> No. >> Okay. >> You have all this experience in real estate. You The reason you have a lower LTV CAC is cuz I mean, you're at 9.8 and it's brand new. That's when it's going to be the most insane. It's not that much better >> Okay. >> than your current one. And so, I mean, real estate 100% scales. >> Yeah.

2:18>> Like, to the moon. And the nice thing with real estate is that you actually can be vertically integrated. And so, there's so many acquisition things that you can you can run into. You can buy the you know, buy the title companies, buy the escrow companies, buy the um You can I'm sure you have a brokerage, I'm assuming, right? >> Yes. >> Right. Um so, there's so many things that you can get chunks of all the business that you're doing from the top down. Uh that if you want like you could increase your LTV on the main business that you know like the back of your hand just by being a little bit more strategic with how you grow.

2:49>> Mhm. >> This is new and exciting. >> Yeah. >> But, it will tank the thing that you just spent all this time building and getting all the revenue. >> Yeah. >> Like, I I say this out of love. Um It has been the single hardest thing in my entire entrepreneurial journey. Is saying no. It's really hard. And because you're better now, the woman in the red dress is more attractive. And this is what it looks like when the woman in the red dress is more attractive.

3:16And then you'll turn her down. And then you'll get bigger cuz you'll actually focus. And then you will 5x this business and it won't take you 5 years. It'll take you 2 years cuz you're focused again. >> Mhm. >> And then you're going to have another thing that's going to come come around and it's going to be five times bigger, five times hotter than this particular woman in the red dress. And it just never stops. It never stops. It never gets easy. And it's just I mean, fundamentally focus is saying no. >> Mhm.

3:42>> Like, you can measure how focused you are by the number and quality of things you say no to. >> Mhm. >> And I just I remind myself of that every day. Just like, what can I say no to today? Because if you think about like the most focused person in the entire world is the hypothetical extreme of this person who just says yes to one single thing. And says no to literally everything. Can you go to lunch? No. You want to get married? No. Do you want to have kids? No. I'm not saying that's ideal. I'm just saying that's the hypothetical extreme of focus. >> Mhm.

4:07>> And so if you want to be more focused then practice focusing. >> Thank you Alex. I love you. Thank you. >> All right. All right. >> If you are 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 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 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.