You Don't Have a Hiring Problem. You Have a Delivery Problem.

0:00Hello, my name is uh Lucas. I sell fitness and nutrition and sleep optimization services. Brick and mortar, 90% in person, 10% online. Uh we do around 700,000 in revenue. My problem is is that I am founder's problem. I fulfill, I do sales, and I can't say no to money because I keep raising my prices and people keep saying yes. So, my >> Keep doing that.

0:26>> Which is great, but um I've had people in line that I want to take over in place and they're like, "Hey, I'm moving with my wife to California." And I'm like, "Dang it." So, I've got to start all over. So, my issue right now is a staff problem. How can I hire someone to come in and take that role? And really I have this fear of like if this doesn't work out, I'm going to lose this. And that's been in the back of my head. So, >> to lose what? >> Say again?

0:50>> You're going to lose what? >> Uh revenue uh cuz I'm at a really high price point. >> Uh-huh. >> So, it's like, "Hey, >> What do you charge? >> Uh coming in, you're going to pay me worse from 6 to 20,000 dollars for 12 weeks. >> Okay. >> So, my issue is right now my main constraint is is people getting acquiring good talent. Or right now I don't have a lot of time to train someone to come in that position cuz someone just left. So, that is my biggest problem right now is I'm doing everything.

1:25>> So, I'm going to bet that you have delivery that is too heavy. Like too involved for you. >> Correct. >> And then because of that and it I'm not saying that you should bring someone else in it. I think you maybe should reconsider how delivery is happening and is there a version of delivery that could be lighter that would still result in the end the same end goal for the customer? Thing one.

1:47If we take that to be true, then I would say we might have a demand issue. Which is like, do you have a reliable way of getting new customers? >> Yeah, so actually I've not been able to take on more clients. >> Right, because you're supply constrained. >> Correct. >> And so basically the the the solution process is like kind of like a jab jab right hook type solution of what I was saying earlier with like the somebody who's need to you know, I can't afford talent, but it's actually because I have a pricing issue which really because I have a sales motion problem, right? And so you actually I think have a delivery constraint meaning I think you should just redo how you're doing delivery, free up time so that we can increase demand and then jack your price even higher than you are with the excess cash, then have someone who's doing this now lighter delivery on the back end.

2:33And so right now you're you're in the classic unicorn scenario, right? And so we have to find the rhinoceros, we got to find the horse, we got to find the sparkles. And so right now in terms of the components of what you do on a daily basis, you have delivery with customers, you have sales appointments. How many employees do you have? >> Uh I'm the employee and then I have two contractors. I have a dietitian and a trainer. >> Got it. >> three of us total. >> Got it. But you're basically everything and you got two helpers functionally, right?

2:58>> Yep. >> Okay. So um in terms of time if we were to split this between sales and delivery, what's the split percentage? Cuz those are the two main things, right? >> 95% delivery. >> Right. So what is the delivery that you're promising people? >> So that's either the personal training, it's working with the dietitian, it's stuff when they're not with us in person, we support them. >> Uh-huh. So you have the personal training is in person. >> Correct.

3:24>> Yeah. >> an app that we use for people that we have a lot of clients that live in multi states. So when they're not with us, we're programming, we're doing that. So there's a small fraction of online and that's other issues like should I just go more online and then I can free up more time and make the same amount of money. So >> I'd rather you do all of the knowledge work and none of the labor work. >> Right. >> Like I think adding the one on one personal training component is a complete irrelevant part of the business. I'm assuming people are coming to you for expertise.

3:55>> Yeah, and then that's thing is I do do that. So, they're like, "I only want to work with Lucas." And I'm like, "But this person's great." >> Right. Well, there's a version of the business. So, like think of yourself, even though you're not an MD, think of yourself as a concierge doctor. >> Yeah, and that's exactly how I frame it. >> Yeah, and so I would But like concierge doctors don't do three sessions a week. >> Correct. >> Right. That's the problem. >> Yeah. >> And so they do you can have myself a number and you can call me whenever and I'll let you know if you have any issues and you'll be early on my list if you want something. And so I would rather you do something like I would say a dieted down version of this is every time you start a new cycle

4:28>> Mhm. >> I will show you what you need to do. >> Right. >> And then the rest of the time you do it on your own. >> Okay. >> Because that way you have more flexibility, you're going to be traveling all the time anyways, and long term, this is me just being truthful, every super fit person that I know knows how to train themselves. >> Yeah. >> And so I'm going to show you the tweaks of what you need to do. I'm not here to hold you accountable and count your reps. >> Okay. >> If you want that, go find a personal trainer. I'm happy to make introductions. >> Right. >> But the main game is you want me to be the architect, not the or you know, not the guy who's pouring the the concrete.

4:57>> Okay. >> And so that's the framing. And so I think you need to change the delivery mechanism. Now, the rock and hard place that your scenario that you're in right now is well what do I do with all the customers that I have? >> Right. >> Right? So, I would have those conversations with them. If they leave, guess what we just created? Capacity. If they stay, guess what we created? Capacity. And so either way you'll create capacity and then you can resell to new people because demand isn't too much of an issue into this new lighter workload, which will free up your time and increase the cash flow. So, you can actually get some help that you actually need and this becomes a much more scalable model.

5:30And then long term, for sure, I do think that you move online. But this is the bridge to getting there. >> Okay. >> It's help? >> Yeah. >> Rock and roll. Appreciate you. >> [applause] >> IF YOU LIKE THIS VIDEO AND YOU'RE 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 roadmap 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.