Nine businesses asked me to solve the biggest problems holding them back

0:00My name is Joseph Druther. Um I run Druther Homes in North Carolina. We sell we we basically build luxury speck homes. Uh that's what we do. So we're going to do not quite 30 million in revenue this year. Our goal is to be at 50 plus of healthy revenue uh in the next 3 years. And what's stopping me is um we eat a lot of land. We need a lot of land to keep the machine running. And so um we've never we've always had like referrals. We've always kind of come across stuff on market. And uh

0:28>> are you having issues finding the land or buying the land? >> Um finding the land has been I'd say finding the land and then followed 30 to 45 days depending on what our contract says. Uh buying the land. So it's extremely cash intensive. So for us to grow requires new investors, new lenders, you know, constantly bringing on lots of cash, especially at our price point because we're in like the one to $2 million price point. So land is might be two three $400,000 per lot.

0:57>> Okay. So what are your margins on your 30? >> Um so we will do so we generally shoot for about 25% gross margin gross profit and then we will end up around 15% net 12 to 15% net. >> So this year we'll probably do >> four and a half >> like four and change. >> Cool. So with the four and change how many houses? So you're so you're basically building call it 20 houses a year something like that. So, we're at we're projected to start about 26 this year. Yeah, we'll probably sell a little bit less than that.

1:32>> I can't imagine raising 400 grand. Is that hard? >> I've done it a lot. I've kind of exhausted my warm network. Started, you know. >> What kind of returns are you getting the person who's investing? >> Between 9 and 15%. Depends on how much they have. >> That's not that exciting, >> right? Well, I bring it up to say this, which is that it's probably a right or downer, but there's never a lack of capital, only a lack of good deals,

1:59>> right? >> Like good deals never starve for capital, >> right? If you said, "Hey, I've got this thing. It's assets secured and it gives 30% a year. Would anyone else here give him some money?" >> Right? It's a bad deal, >> right? because you're basically offering the same as called the market with this is me just being transparent single guy you know not single you know what I'm saying like small business owner uh taking risk that's significantly riskier um I would say that market for something like that is probably like in the in the like not at the nine probably closer to like 13 to 17 you know what I mean maybe 13 15

2:40>> um realistically you probably just need to find one person who can fund all of these things. Um, and basically have a facility that just rolls for you, >> right? >> Basically all you need to do. And so it's like, hey, if I can just this is my model. I will buy homes. I will flip homes. You're senior secured on this so that you can't really lose money. Um, that becomes more interesting. >> Yeah. >> So let's assume that you can find that because I don't think that's a hard pitch to to give. Then [clears throat] we just need to go find land. Okay. So from the land perspective, what's hard about finding the land? Um, so it's been inconsistent.

3:15>> What do you currently do to find land? >> Um, what we just started doing was direct direct mail. So, we used to do it very long time ago. Our our pipeline got super full um from some large >> Well, no, our our pipeline got really full from, you know, somebody dropped 36 lot subdivision or an 11 lot subdivision. So, all of a sudden, it's like, hey, we don't like stop. We don't need more deal flow >> right now. And then we're eating through all of that and now we need to turn on the faucet. But that was those were just lucky. I would say lucky. I mean they just referrals. People wanted the listings on the back. So

3:45>> was it from the direct mail or the referrals? >> No, that was just from referrals. >> Okay. So when you did the direct mail piece, nothing it didn't >> No, we we we got we've got uh deals for sure. So we just started that back up. Okay. >> So I hired um I hired a marketing or a sales guy to kind of start that back up and I told him I was like this is this works. We got >> any metrics on the last time you did direct mail? >> I don't remember because it was a few years ago but it was pretty good. >> So I know I know it works. >> Okay. So, you have a thing that worked really well last time that you didn't do for a while that we're going to do again that will probably if you do that work again.

4:17>> Chances are. >> Okay. So, what do you want to do from here? [laughter] >> I mean, that would be my best bet. >> Yeah. >> You're like, I have this thing that worked really well. I'd be like, let's start there. [laughter] >> So, so it's kind of twofold because we're we're trying to acquire more land, but a way for us to scale, you know, we've kind of looked at as two paths. One way for us to scale is to continue doing specs, which requires a lot of cash. The other way is to go directly to buyers, you know, basically build a brand, build a luxury brand that people want to come directly to us and build essentially a custom house without any of the custom house headaches. And so [snorts] if we can they can buy the, you know, we're using their land, their money, you know, their cash, we can build our product like for them and it doesn't require any of our cash.

5:00>> You mean you're going to sell them on the fact that it's custom, but it's spec basically. Yeah. [laughter] >> Yeah. Cuz like, you know, Exactly. >> It's a custom home without the headache. This one or this one? This one or this one? Right. >> Yeah. Essentially done for you design services. Like we've got in-house designers, architects, all that stuff. >> I mean, I'm all for that. So, um, >> but we don't have any of that going right now. >> Well, yeah. I mean, you'd have to find someone who's sitting on land that wants to buy a house that hasn't found a builder. >> Mhm. [snorts and clears throat]

5:23>> It's probably a small subset. >> I'm just saying like you you got to find land owners >> who don't have a house, who want to buy a house now, who don't have a builder. I don't like that personally, right? You might be able to find veins of that. But can I just zoom out for a for a second? What do you want to have happen? >> Um like >> well you said 50, but like you can like we can say scroll that and just send the direct mail piece and do 50. So like what's

5:50>> when you say what do I want? Like is this in life or >> with the business? I mean life. [laughter] >> Yeah. >> I want to make an impact. It's like all right but with the business what do we want to do? >> Yeah. So, no, I mean we're we we consider ourselves a for purpose uh company. Like we have a goal to give a ton of money away and to change the world, right? So, as long as we can grow healthy and stay really really good stewards of what we're doing, I don't it's not really about a number for me.

6:15Like I I truly believe that we could become a billion-dollar company, whether that's when I'm 50 or 60 or 70, like doesn't really matter to me. I just want to continue to improve and do better, build a great culture, have an, you know, amazing team surrounding us and uh be able to kind of impact their lives and, you know, continue doing our all the all the nonprofit work and stuff that we do. >> Something for another time. >> A lot of the like I would say well-intentioned, heartfelt entrepreneurs that I have met

6:43>> um use a lot of that kind of visionary, future-based language. I would just ask myself, how do I know I did it? and then define that in observable terms. It'll probably be more helpful. >> Yeah. >> For your team, too. >> Yeah. >> Because otherwise, this is like we're just going to do this can be kind of tough because it's just this big globby like amorphous thing. >> Yeah. >> But beyond that, um I'll ask the question that was kind of underneath of this just was like why bother changing your strategy

7:11>> to do more, right? >> But we could just send more mail, >> right? Yeah. >> So that's why I'm saying why would we change it? >> Yeah. Yeah, it would just require a significant amount more capital. So like >> capital if we can create a deals and >> Right. >> Yeah. >> I mean, how much is a how much is a couple points going to really affect the net margins of the business on the land? >> How long does it take you to build the house?

7:38>> About 6 months. >> Okay. >> So >> So $400,000, let's say, for the parcel of land. 6 months, let's say you give, I don't know, 12%, right? So it's a percent a month. So it's $4,000 times 6 24,000, right? Okay. On the million dollar, $1.5 million. Is that a huge deal? >> Um, no. It's not it's not a massive deal. So like,

8:04>> yeah, [laughter] >> you're you're in a classic situation of like you have a $30 million a year business that can very clearly get to $100 million a year >> if you don't change the business cuz it got it took it was like my opinion is this. You can do whatever you want, but if you go do the other thing, again, I have nothing against it. It's just that you don't know anything about it. [clears throat] >> It's like right now it's like, yeah, we're going to sell them a custom home and we're going a couple options. It's like they might be like, "Fuck that."

8:34Uh, if I wanted a spec house, I'd buy a speck house. I want it to be custom. And then all of a sudden, you come back here in a year and be like, "Dude, it is a [ __ ] nightmare. I'm talking to these customers all day." I was like, "I I had it made, right?" Because you haven't done 30 million in that, >> right? >> And 30 million in that is hard. You're doing 30 million in this. There's a lot of levels of entrepreneurship. You're already here. There's a lot. It's rare air.

8:56So like once you find the the bricks of the building like >> it's just we could just convince ourselves that we're like cutes for some reason. I mean you know you're also cute but I mean you know [laughter] >> but yeah make a better offer for the investors. You can get one guy who probably bankroll all of this stuff. It's not that tough. These are not huge deal. You know what I mean? Like even with 26 it's what 8 million bucks. >> It's not a lot

9:21>> in the in the scheme of real estate. It's not a lot of money. Um, and so yeah, make a better deal, send the direct mail, and I would say just don't get cute. >> Cool. I appreciate it, man. Thank you. >> Appreciate you. >> My name is Derek. I'm from Chicago. I own Lifetime Roofing and Restoration. We do um storm restoration. >> And so far, we've been hitting the 7 million mark. This year, we'll do probably about um over 10 to 15 cuz we had crazy storms. And

9:46>> um I'm having an issue with bringing in sales reps and a pay structure. Like I I I'm just lost. >> Okay. you know. >> Mhm. So, what what specifically when you're saying you're having trouble with it, are you getting are you not getting applicants? Are you getting applicants and they're unqualified or the people who are qualified are starting but they're not sticking? Like what specifically is the issue? >> So, I'm getting unqualified people, but then like um so we kind of changed something up where we started paying for training and I see people now are just coming in to get paid for training and so I keep landing them after one week I'm like you're out. You're not qualified for this. Um, so the one I'm not getting qualified people.

10:26>> I don't know. When you're saying paid for training? >> Yeah. So, what we do is four weeks paid training and then your commission. >> Okay. >> Um, but I figured that that's >> I mean, what are you paying for the training? >> It's 750 a week. >> All right. >> Um, but it it's not good though. It's not working out at all. >> Right. [laughter] Yeah. Um, and you're door todoor. >> Uh, door to door. Correct. Yes. And then we have a call center that brings in a massive amount of leads. So we give about two to three leads a day to every rep. [snorts]

10:59>> What's revenue split between doortodoor and I'm guessing inbound when you say call? Are they outbound calls or they inbound? >> Uh outbound calls. >> Got it. >> Yeah. So we get um probably like 70% as outbound calls. We get a lot of them like 15 to 20 a day now. >> And then what's it called? Door to door is probably about 30 40%. So what we do is we get these leads and then they got to door knock um all the houses around because um we just had a major storm in Chicago. So all those houses are affected. So we get them the lead and then they door knockock all those areas there.

11:31>> Yeah, understood. Um okay. So I don't think there's really any issue with paid training. I mean if you have to onboard people I'd say four seems like a bit long but um you can do it in two or one. Um, but again, it's that's not that's not the problem. >> Um, I'm guessing the problem is more around emphasizing it

11:53>> in the advertisement. And what are the requirements for getting in? >> So, how do you how do you like you you put these ads out, right? >> Mhm. >> From ad to you can train. What's the process there? Um, I get on a call and I just see if they want to work with >> you personally get on a call. >> Yeah.

12:15>> Jesus. Yeah. Yeah. That sucks. Okay. So, >> let's not do that. So, um, number one, they come in, they'll apply, they'll send the resume. Doesn't matter for sales anyway, so who cares? Um, what I would say is send them the script that you guys have in response and then give them a group interview. So, you can have all of them on there. on the group interview, you can do a one minute role play with every person live and then give them real-time feedback on how they did. If anyone prepares, it's already a great sign, right? And if they didn't prepare at all, it'll be immediately evident. And if they didn't prepare and they're [ __ ] amazing at sales, it'll also be relevant, too. And you're like, "Hey, what have you actually tried? Let me show you some stuff." Um, and so the thing is is that in that one call, you can interview 10 or 20 people. And then from the people who were good, you can then have your one-on-one job offer conversation with those people. Like right now you're like I'll guarantee you that there's no issue with there's no lack of sales talent in Chicago,

13:09>> right? It's just that your process you're you're talking onesie twoosies and you want to kill yourself and you're like at this point you just lower your guard. You're like just bring them in. I don't care. I don't want to have these conversations. Correct. >> Just do it one to many. >> Okay. Group interviews. >> Honestly, that's that's the bottleneck. That's all it is. >> Cool. Thank you. [laughter] >> I did this with a a therapy clinic that had the same issue. They were hiring therapists. It was on on that was their delivery side. It was insurance based, so it was capped.

13:35>> Business 6xed in three weeks. >> So just because it's simple doesn't mean it like we could I mean we don't if you can double your business with one move like why do five? >> Exactly. Yeah. No, this event gave me the most clarity that I've ever been to an event. Like I've never I've been to a lot of events but nothing gave me that much clarity about a business and how to operate and actually structure the business properly for it to grow by itself, >> you know. Thank you for that. >> Love it. No, I appreciate you, man. Thanks.

14:01>> My name is Ruth. Uh, we have a >> root >> from the Netherlands. >> All right. >> You can also call me Eric. Yes. [laughter] >> It's my second name. So, yeah. >> I had one of my buddies dads, his name was Meridot, and he's like, you can call me Mike. [laughter] >> Keep going. >> Yeah. Yeah. So, we have a DTC brand. It's a gymware with shapewear. We hold the patents on the ribbing technology to lift the booty. >> Uh, last year was first year we did 10 million. This year we do 80. Amazing.

14:29>> And we would like to be at like 500. >> Are you on like Tik Tok shop that's pulling you off or what are you doing? >> Not even Tik Tok shop. No. >> So what's what's been the growth strategy? >> Uh we have elite creators. So it's basically like affiliate. Yeah. Elite. We call it eliots. It's basically like affiliates but then uh we run their we run ads on their page. Got it. >> You recruited a handful of people who have big brands. >> Yeah. >> And then you just rant you put gas on.

14:52>> Yeah. And also smaller creators. So yeah, understood. Um okay. So you're going to do 80 this year? >> 80 this year and we want to be at 500. >> So what are you at year to date? >> Uh no 20. >> Okay, got it. So you're 20 year to date. You want to finish at 80 or more? Cool. >> What's the question? >> Uh supply chain and quality. >> Yeah. >> Yeah. Huge. Yeah. So because every time we restock it's going to like 5, six, 700k a day. >> Yeah.

15:18>> Uh cash flow. >> Also cash flow now because the quality issues like profit margin last month was like 8%, now it's like two. So that's the biggest issue you know. Yeah. Yeah. >> Yeah. So what is the question though? I agree that is a problem and a pain. >> Yeah. Like what should we do? Should we focus on like scale or like back end or >> so >> because marketing is not an issue of course but >> Yeah. >> Yeah. So in all likelihood you'll have to have some sort of you'll either have to throttle growth so that you can basically reestablish your cash position because you have to think of it from the from a downside risk perspective is that like do again risk is one of the eternal things that's always up to you right there is no correct answer on risk on how much you're willing to take. Um, but me, I would rather I would rather give up some growth to make sure that my business will be here tomorrow because the alternative of like I tried to grow too fast and I could have kept this thing if I just not gassed it, which like was self in I hurt myself,

16:18>> right? Because of an arbitrary number that I made up, >> right? You're like, I want to go from 80 to 500. It's like you could say you want to go from 80 to 150 and guarantee you get there. I'm not saying you do that, but like there's a range. Yeah. >> Right. And so, um, option one is that you can throttle growth and keep more equity. Option two is you can take on basically debt or having some sort of larger credit line with the growth that you have. Thing is is that debt doesn't really care about growth. It cares about downside. And so, the lines that you'll be able to get are not going to probably be nearly big enough. Most likely, if you wanted to like keep the aggressive path, it's just like how much can you raise at from a valuation perspective and then let outside investors cash flow the growth.

16:57>> Yeah. Okay. So those are the three doors. I don't know if one of those sounds better for you. I think given the nature of the business that you have. Um it can make sense. Like door three would make a lot of sense for you right now. Now the supply chain stuff that's always an issue. You're going to have to start going whatever. You'll deal with that. Um but I think it's a lot of these problems are capital related. >> Yeah. >> And so the nice thing about raising because you already have this great growth story right now. You probably get a very favorable valuation. Um, which means you probably wouldn't have to give up that much equity in order to get a shitload of liquidity

17:30>> and that would probably be the correct move. >> Okay. >> I mean, do whatever you want. Yeah, >> I would probably do that. >> Okay, perfect. Thank you. >> Let's go. >> Uh, my name is Ryan Yoshida. I run Armored Heat. Uh, we sell arm health programs to baseball players. >> Arm health. Got it. >> Arm health. Yep. >> Dude, I got to go to you. My bicep is killing me. I've been able to even do a curl on my left arm for a month. >> There you go. We got you, >> dude. I'm dead serious. I'll I'll figure out whatever you're doing. Yeah, keep going. Sorry. >> Uh, last year we did eight. I care about my biceps a lot. [laughter]

17:57>> Well, we'll take care of it. [gasps] We did uh 830,000 last year in revenue. Uh want to be at around 5 million in the in the coming years. Okay. >> Um what might be stopping us is we're selling the same product to two different uh customers. So, we're selling our same armored heat program to one to individual athletes on the oneoff side of things and then also to teams, college and high school teams.

18:21Essentially exact same program but packaged in 2025. um accounts at a time. >> Okay. >> Um and so in talking with a lot of your your team this week, have realized the lack of clarity that comes with that in messaging and and offers. Um but at the same time, it's like both are growing and I'm hesitant to pull the plug on it when there's really zero cost or time to fulfill. >> So let me I want to understand a little bit more about the actual like deliverable. Is the deliverable like login access and information or is it like your team doing something to teach them stuff like hands-on

18:56>> login access? >> Okay, so the actual deliverable is literally identical. All right, so um when I think about focus, it really comes down to what does this change about what I do to run this business? So, you basically just have two acquisition channels, I'm guessing. Or like how are you getting the two? Like, is your sales process and and and customer acquisition process different for the large guys versus the small guys? By the way, pause real quick. Who here has two clearly different customers they serve? Can you raise hands real quick? Okay. Yeah. So, you're not alone. [laughter]

19:29>> Yeah. Keep going. >> Um, no. I would say primarily mostly coming from from organic social and paid social. um pre just started running the paid social to the team side of things that are very much targeted there. Okay. >> Um but have broadly had it about arm health previously and instead of getting specific. >> Got it. What's LTV to CAC on individuals versus teams? >> So individuals LTV is 360 and then CAC's right around 120. >> Is it a subscription? >> Yes.

19:55>> What's the price point? >> It's 45 a month or 450 a year. So >> Got it. And you're saying 1,200 is the LTV customer? No, LTV is is uh 360 $360. >> So a little less than450. Can everyone pays for the year? Yeah, exactly. Okay. So that's the consumer side. And then um what was the >> what was the other one? >> So the team side lifetime value. It's still we're 3 years in so still early, but I confidently say 6 to 8,000 on the team side of things. And then just started running the ads. So I don't know that our CAC is super clear at this point.

20:28>> That's fine. Okay. So we've got team here. Okay. And then how many um uh how many customers are you selling? Do you have like what's the split here in terms of revenue, right? >> 40 60 team, 40% um individuals. >> Oh, really? >> Yeah, it's at flip-flop this last this previous year. >> Yeah, that's interesting. So, the more valuable version of the business is the team thing for sure. No question.

20:53>> Um because the thing is is like, you know, they keep getting older, you keep staying the same age. >> Uh because the teams will graduate players, but the teams will stay the same. Yeah. And so that's the value cuz the team can be really sticky. The end consumers won't be. Now that being said, it doesn't mean like the brand has to be like I think it's to answer your question, I would be fully focused on the team side as the as the main revenue driver from a branding perspective. I think you doing things with like people and pitchers and all or I don't know whatever players you have um is good for the brand overall because longterm you want baseball players coming into team saying, "Hey, we should get this thing."

21:27>> Yes. Um, but if you're already flipped, because typically smaller businesses start here and then all of a sudden they do a couple enterprise accounts, they're like, "Holy [ __ ] this one of these is worth 50 of these. This is awesome, but how do I do more of that?" If you've already made this transition, you're already on the right path. And so I just do more. I would do more better on that side as my main focus. >> Gotcha. Understood. So no need to pull the plug on either, but just direct all of resources.

21:53>> Put all of your focus there. Y >> get your CAC metrics. I mean, I still would want to know, but seeing the difference that I'm looking at here, I'm going to bet it's probably not that complex of a sale to hit that that number. And so, it's like maybe CAC is three times higher, but LTV is 20 times higher. >> That's a better game. >> And the the retention, it's been much more sticky on the team side. So, >> that's what builds a compounding business. Yeah. And I mean, it's a much better game to play.

22:20>> Yep. Perfect. Thank you. >> Yeah, you bet. All right. So, uh, my name is, uh, Austin Dunar and I am the guy from Bubfuck, Kentucky. So, >> every everyone needs one. I think I'm that guy. Uh, so no, I um own a handful of different things, but the one I'm here for is a design studio called Durham. Uh, so we're in Northern Kentucky, right outside Cincinnati. We do about 3 and a half a year in uh uh revenue

22:46>> and we're in that like 3 to 4 million glass ceiling. Like how do you break it to 10, 12, 15 to go farther than that? And a lot of it is my legal name is Austin Dunar, but I think my professional name is Mr. Bottleneck. >> Kind of similar to the guy over here. And I built the company 12 years ago. >> People want to talk to me. So it's kind of like running a a dentist office. They want to see the dentist that's names on the door.

23:14>> And so scaling that and building sales teams behind that has been kind of difficult. >> Walk me through walk me through the like click to close of the business real quick. >> Yeah, sure. So if a,000% of the business is word of mouth um it makes you know Q3 Q4 of 26 look a little questionable but we're busy now. So our clients are like enterprise fortune uh 500 companies like Old Spice, Tailor Made, Bud Light. So we have the names. We have the

23:41>> what are the pack what are the pack what are they buying? >> So they're buying uh brand identity motion video storytelling. We'll name products or name companies. Um >> but you can sell nationally, right? >> Yeah, we do sell nationally. >> Okay. So you don't have the Kentucky issue. >> No, I was just making I was I was bringing the Kentucky time. I was like, how is this guy locally constru no through the sales cycle? >> Yeah. Yeah. Yeah. So, let's take let's take the B [ __ ] Kentucky out.

24:06>> You you wanted to get got you wanted to get got. So, >> I'll be the got guy. Um, >> no. So, we So, so we're And we're not in B [ __ ] Kentucky. We're in Cincinnati, basically. So, [laughter] UH, >> you said it, dude. I'm just here. I'm just here out of New York. Really? [laughter] >> Yeah. Yeah. I'm kidding. Kid, uh, you're like, I don't need this paper now. Um, [laughter] so, no. So, we're working on national stuff. So, like which is that's that's earned. And so if a thousand% of the company's word of mouth, that's even harder. And so we've had clients that have stayed on uh for 10 11 years. And so like which is great, but in an industry that seems like it's getting cannibal uh the cannibalization of just like AI and everyone's just freaking the [ __ ] out. Like for me, like if the robots take

24:52>> Yeah. If the robots can take our jobs, they can't steal our relationships. So you really have to kind of like double click into like who you know. But sometimes there's like an owner sales fatigue cuz you can only mine a a a cave so much to get gold out. So, uh, does that work? Um, and I feel like >> you only c milk a cow so much, right? >> Yeah, dude. Yeah, yeah, we can we can raz it all day long. But

25:16>> [laughter] >> uh so so I feel like from a categorically from an industry perspective like there's just so much of our world that's just kind of the V's going this way right and I think there's like the strongest will survive to a degree but with owning other companies as well like my time's kind of been dispersed over the past I own uh going back to Kentucky I own a uh distillery. >> Is it in Kentucky?

25:43>> Yes sir. Of course it is. Oh there we go. >> Yeah. So, let's talk about that. No. Uh, and then, uh, uh, I own a solar battery company in Missouri. Um, own real estate, this, that, and the other. So, like I kind of have a rolodex of like portfolio, if you will. But like, >> are you the CEO? >> Uh, yeah. Yeah. So, I'm C I'm in the distillery. I'm co-owner. Um, but Durham, I'm the 100% CEO and the other ones as well. But for me, it's really just >> CEO of all of them. >> Yeah.

26:08>> It's tough. >> Yeah. But so do you. like you know >> it's just playing the playing the >> game like worth recognizing I'm not I have zero direct reports >> that that's not true's father is technically my direct report he manages >> he manages my books yeah um so I have direct report yeah we meet once a once a month um but but no so like that's that's there's a very real difference there >> sure >> um you you appear to be a bright guy what do What do you think I'm going to say?

26:44>> Uh, [sighs] we probably, so let's go to the mode six. We probably need to figure out a sales model that can operate SANS, the owner of the company that can serve as a function to deliver not only a higher close rate, but opportunities to find and to find and invest in. And then just pump that [ __ ] up. And then we'll continue to that cow. [snorts]

27:10>> Yeah, we're just going to milk that cow. We're going to drink that whiskey. And then uh >> uh yeah, but you know, like it's just been an interesting past like I think 12 months cuz everything's been every year it grows year after year. Uh uh long-term um retaining of employees, which is great as well. Our clients, you know, the logo bingo is huge. anyone would kill for them. But everyone's projects and budgets are getting so small just because they're either hiring internally.

27:39>> They, you know, we're in the business of nice to haves, not necessities. So, the first thing that gets killed if your stock's down 25% is marketing. So, it's just this weird, I'm [snorts] 39, what do I want to do? We've had some digital door knocks in terms of like, hey, are you selling? And it's like, oh, I've never thought about that. And so kind of weasling through that a little bit and trying to figure out some of that kind of stuff. And it's uh you know, this isn't going to be a legacy company. I'm not going to give it to my girls, but it is kind of a really

28:10>> the marketing. Yeah. The studio like, but it is a pretty kick-ass lifestyle company. So it's that kind of give and take, right? And it's like how long do you ride the horse? >> Um >> do you get more horses as long as it's running? [laughter] >> You know, do you get more horses? you know, prime the pump with the figure out a new sales model or do you just chalk it up to what it is and keep it and then just ride it out? >> Okay. There's a lot there.

28:36>> Yeah. Um, >> you wanted something. I came I was coming with something different. You're like, "No one's giving me anything." So, I was like, "No, >> this is good. This is good. This is >> I'll give you something heavy. >> I appreciate it." >> Um, [sighs] >> chunked all the way up. You've got your mojo, right? You've got your special sauce. Right now you're spreading it over a few different things. And so everything grows a little bit but not as much as you want. >> And so it's just that you've been reinforced for whatever reason in the past that in order to make more money you do something new rather than doing more of the thing. Just being real. But now you you know you you're in it and you have these other issues which is why it's harder to unwind than it is to you know I guess fast forward. Um

29:18>> so where to from here? Um I think the pro like the marketing business is the main one that you like the most. Right. Okay. >> So if I were to try and solve this problem, I would attack it from regaining all my attention first >> and then fully deploying it into the thing that has the highest return on my attention. >> Mh.

29:41>> So right now you have these other kind of ventures per se. The thing is is even though you can rationalize to yourself like well I'm not really doing that much. there's a team blah blah blah blah blah. It's the thing is it's like >> it's like it's shower time, you know what I mean? You get a call, you get a text, all of a sudden in the next hour and a half you're thinking about something from this other business. Even though you don't do anything, >> it stops your your your thinking cycles, right?

30:03>> And so I'm a big believer in in thinking surface area, which is like I want to paint a masterpiece and you don't do it in one sitting. It's like you need to do multiple coats of paint to really solve problems elegantly and well. And so right now you've been getting away with running multiple companies because you're competent, >> but I think that you're making significantly less money than you should be making because you just haven't had the discipline.

30:30>> Mhm. >> If we're being real. >> Yeah. Sure. >> And so I think the the question that you originally asked, which is like, do I ride this horse? Do I add more, you know, horses to the the stable or whatever? Um, I think it is a 100% of you question of like how big do you want to go >> because like I think there's everybody has a day they start a business and everyone has a day where they they go pro. >> They want to be all in on it

30:56>> and >> that means different things to different people. For some people they can halfass and still do 10 million a year. There's people that I know do half ass and do 100 million a year. >> Um, it's just about how competent you are. And so it seems like you're under your ability. >> Mhm. And I'm guessing you feel that discrepancy between like the numbers and what you feel like you're capable of. >> Yeah. >> And so I think it's just a hard call that you'll have to make. Is the marketing agency growable? Absolut [ __ ] course.

31:23>> The whole like the fortune like Yeah. But if you're a better if you got a better pitch and you got a better product like and if you had the thinking revolutions to actually make the thing better, you'd be able to do it. But you just have enough nagging things like Rome wasn't beat head on. It was beat by barbarians nibling at the edges. And the same idea. You can still be Rome. You can still lose. Sure. >> So, the hard call is I would recoup 100% of my attention and then I go all in on the marketing uh the marketing business and um I can't remember who said this from A16Z, but um the next trillion dollar company is a technology business masquerading as a service business. And so agencies, things like that were traditionally very terrible businesses to run.

32:03>> But if you can transition your to your point about AI, it's like well why would we be afraid of that? It's like let everybody else be afraid of it. I'm using it, >> right? >> They should be afraid of me, >> right? >> Yeah. It's just the tool like anything else, >> right? Well, I mean like Yeah. It's like am I going to take their lunch or they going to take mine, >> right? 100%. >> And I think that if you had more thinking revolutions, you'd put the fear in them. >> I think you have that potential if you decide to do it. >> Yeah. Sure, man. >> Awesome. Pleasure. >> Hi, I'm Carrie. And

32:30>> Hi, Carrie. >> I'm the dentist. >> The [laughter] All right. So, um I'm a concierge dentist that sells a little closer. >> I'm a concierge dentist in Santa Monica that um provides a a service basically. >> Um >> what kind of concier? Is it just like general checkups and you have people on it annual or is it >> just like I'll go to their patients houses?

32:55>> Oh, so you travel like mobile? >> Yeah, I'll take care of that. >> What's your price point? >> Pardon me? >> Price? price as far as >> what do you charge >> for in general >> what you do >> for what I do >> I don't know you do I don't know what you do >> anxious patients have a general anesthetic or whatever to get everything done while they're asleep I'll go to >> and you're doing at their house you're putting >> No I'll take them to my office or the plot thickens okay

33:22>> I have a medical anesthesiologist that that >> Got it was revenue >> um I did 1.1 Okay >> last year Um, I'm hoping to to grow to like three hopefully. >> We can do it. >> I have a new associate. >> Okay. >> And so I'm training her up. Um, >> what's holding you back? >> Uh, me. >> Okay. >> Um, >> what are you not able to do that you should be able to do?

33:48>> I should be able to be more of a visionary and revenue architect as opposed to being more provider operator and um, firepower router. Okay, I'll put a pin in that for a second. Um, okay. Uh, you want to have less time in the chair, right? >> Mhm.

34:12>> How much are you doing these mobile home visits versus in office? >> Um, I'm only doing those like one or two times a month. >> Okay. Well, why would we start with that in our discussion? [laughter] >> Okay. So, you have an office and two times a month you randomly visit somebody. >> Yeah. Okay. So, it's not core to the business. >> Is that fair to say? >> Yes. >> Okay. So, I can just erase that from my memory for now. >> Okay. Great. So, you have a dental office and people come in and get dental stuff. All right. What's the average ticket of the things that you sell when you're in office?

34:42>> Um, it it it ranges from >> from where to what? >> Like from 500 to 50 grand. >> Okay. And the 50 grand stuff is what? Veneers and implants. >> Fullmouth reconstruction. >> Okay. How many of those do you do? >> Maybe Well, right now I've been pulling like two to three a month. >> Okay. Well, that would be 100% of your revenue. >> Yeah, those are my >> Do you do anything else?

35:07>> Um, just the regular cleanings, fillings, crowns. >> How do you get those 50K things? >> Um, just smile. No, I I close. I'm good at closing. I tell them what they need. >> I get the sales side. How you getting them? like how are you finding them? >> Oh, just word of mouth. >> Okay, word of mouth. There you go. Um,

35:31>> no pun intended. >> Okay, so [sighs] how many hours are you in the chair every day? >> Probably eight. >> Okay. Of the jobs that you're doing right now, can you outsource like 80% of the ones that are not the high value ones to >> my associate? >> Your version of it? Yeah. >> Um, trying to >> Okay. What's stopping you? uh trying to convert and transfer trust.

35:57>> Okay. Okay, that's not that bad. Okay, so after that happens, what percentage of your time can you get back when the associate takes over? >> Um hopefully 50% at least. >> Okay, great. So I think that's a great step one. Step two is what are you going to do with all the time you get back? um reinvest it in to the business. Refining systems,

36:24>> I think that you'll want to have a reliable way of generating leads and turning them into customers would be my primary bet. Um I would say that for someone in your position, you're going to have two kind of primary acquablish affiliate relationships and referrals. can be kind of tough with like I'm trying to get super full mouth reconstructions. People are like, you know what, I have two friends that are ready to like it's a little bit harder on that. Um, and so most likely, uh, you have a content angle, you have a paid strategy angle.

37:02>> Are you making any content right now? >> No. >> If you make content, you'll make more money. [laughter] >> So, that would be a good place to start. >> Okay. >> Um, it pairs really nicely with running ads. And so if you like, all right, I'm going to zoom out for a second. You're going to have your step one bring the associate in. The second thing you're going to do is you need to integrate capturing content within your existing customer flow. So what that means is customers come in every day.

37:29>> They get [ __ ] and then they look better afterwards and they smile. >> We need to capture that process and you should be post how many patients a day do you see? >> 8 to 10. >> Great. It's like you could be posting eight to 10 times a day just with the existing people. Now, if all of them say yes, not all of them will say yes. So, it's like maybe three or four, but that's still three or four hundred times more than you're posting right now, right?

37:52>> And so, I would say look at the people who have the best veneer game. >> Have you seen those guys on Instagram that you follow? >> Look at the structure of how they're structuring their like reveals and the person walks in. That whole story arc needs to be the stories. >> Sorry, the reals that you post. So remove the associate number one. Sorry, Jesus.

38:16Remove yourself, add in the associate. Number two, capture the customer journey and then post them in terms of reels. >> Okay. >> Number three, you can connect to something called many chat. And then every person who follows you, you can DM them and then give them some sort of offer to come into your clinic. And so if you just do those things and you said you're good at sales, you can take care of the rest. Like that's the easy easy street. And so to get the post done, you probably need to hire one person to do the edits. It's be really formulaic. One person should be able to handle that volume. You've got the money to do it. That's it.

38:56>> Okay. Well, thank you. >> Hey, my name is Dominique and I'm definitely a little starruck right now. >> You and me both, bro. >> Uh I'm here with my four partners. Where you at? >> Over here. And we do omni channel digital marketing for dental offices. [gasps] [laughter] >> The plot thickens. Yeah. >> We actually just a couple months ago we merged our two companies. So we're at about 10 million in toplineing at 5 to 8% margins.

39:27>> Our goal is to be at 20 20 million 20%. >> Real quick on the 5 to8% are you guys all taking salaries? Yes. >> Okay. So, that's probably what would it be if you added all salaries back? Not saying you should do that, just so I understand. >> Probably 15ish. >> Okay. Still low, but okay. Keep going. >> Um, so I think what's holding us back is lead flow for our business >> and consistent results for our clients, which

39:52>> I would say are both constraints, but Tim Kim might kick my ass. [snorts] >> Um, I'm not going to comment on the irony of marketing companies not having leads. Um, [laughter] so from an omni channel approach, what do you what different channels are you guys advertising on for your customers? >> So all socials, all all main socials. >> What size? So it's dentist of what size? >> Two 2 millionish, but we also do

40:18>> and up or 2 million is the average >> up like 1 million to 5 million. >> Okay. >> We'll do like multi- locations, DSOs as well. >> Got it. >> But we do we do websites obviously, SEO, paid ads, social. >> What's costing you so much money? our team. >> Okay. >> We have about 85. >> Feels like a lot. >> Yeah. >> I think realistically, like if I were in y'all's shoes, I would probably take the next 6 months and walk through this process. So, so right now you have people who report to people, right? And this is how the structure of the organization works. But the reality is that this is actually a very inefficient structure for information to transfer and for decisions to get made. It's just the only way we've done it. Jack Dorsey had an awesome piece about this, but it actually comes back from the Roman Empire of how they organize legions.

41:20That's why organizational structures exist like that. We haven't evolved anything new and it's because humans have the same level of competence which we can manage three to eight people underneath of us and you just ladder all the way up. Which means at every level everything gets compressed which is why there's so many bad decisions get made from the top because they're so far away from it. And so what you need to do is instead of having what I would consider role-based thinking from an organizational structure perspective, you need to shift to workflowbased thinking.

41:48And so no longer is the work of the company bound by the people's titles. So when we hire a role, we put this title up and we have some sort of description of what we think they're supposed to do. But more realistically, this person is going to do, you know, step two of this six-step process. They're going to do step one of this other three-step process. And so, they just do these couple of things uh on a day-to-day basis. This is the ones that they're responsible for. And so, you have to get incredibly granular to figuring out what every role in the company is doing right now, doing.

42:23And you'll find out, it'll make you sick because I can almost guarantee you that of the 85 people that you have right now, there's probably like 10 that are really running the ship, right? And so lots of the people that are in the company are not that productive. And honestly, a lot of those roles can and I don't want to say be automated away and more so I'd rather have those people learn the tools and then find more valuable things to do.

42:46And so I said earlier, the next trillion dollar company is a technology company that is masquerading as a services business. You can keep all your pricing the same. You can sell to the same customers, but if your operational complexity inside dropped, like if you had a team of 10 that was running this, you'd probably love this business. >> Mhm. >> Right. And the thing is, the team of 10 can run this business with more tech. And so I would look really hard at the team and see who's leaning into AI versus who's not. The people who are leaning in, lean into them. that people are leaning away, I would lean away from. And you'll probably need to be bringing in, I don't know, three to five development like engineering hires that are actually going to help you like take every workflow in the business cuz right now there's a lot of [ __ ] that gets done, but you should be able to map the entire business if you were to erase all of these circles into one continuous workflow. I mean, fundamentally, a customer sees an ad of some kind. They click, they go through a funnel, they get to a sales call and each one and like then they get onboarded and from onboarding they get data collection.

43:45From data collection they have a you know they meet with an account manager. Creative gets gets made. Funnels get spun up. They get their logos up. Like literally it's just an endless checklist until eventually they get a customer that shows up at their at their facility, right? And so every single person that's touching that process, most of that can be automated now. And so we want to allow people to do much more valuable work. So we have to get them to stop doing the less valuable work that technology's already replaced. So I think for you guys, I would not be like, "Hey, let's scale this thing."

44:13Your margins are too thin. It's too volatile right now because I mean 5%'s a hiccup away from losing money, especially for a service business. That being said, it's my position that like you should always be able to keep a service business alive because like the costs are variable, right, for the most part. And so does that help? >> Build an AI agency basically >> if you want to win. Yeah.

44:38>> Thanks. [applause] >> Any other marketing agencies here? >> Was that helpful? All that applies to you, too. >> Okay. Thank you. >> David Fielding is my name. Castle Property Group is my company. I'm from Australia, Brisbane, Southeast Queensland. We're predominantly an industrial um warehouse speculative developer. So um my company itself isn't related to that. We we facilitate the projects. So starting 16 years ago, I would find one block of land, design the building, um appoint a architect to design it all up, get it approved, then appoint a builder to build it. We would coordinate the leasing and the sales.

45:23And if we sold it to an investor, we'd try to maintain the management. So the income stream is leasing, sales, property management, project management. So that changes a lot of the time at depending on the projects. >> Now the the problem is because I started it myself. I am still doing a lot of the work. >> Mhm. >> And I have the contacts. I have the knowledge. >> The value is the banks. You know we've got great projects. You talked about returns before you know um profit on cost. We're at 20%. A lot of projects return on for investors is 40 50%.

45:58>> That's amazing. >> Um if we can turn them over quickly. Okay. >> So, what's happened over the last 5 or seven years is because I'm so snowed under and I've tried to bring on staff and train them up and everything, the project timelines is pushing out. >> So, return on investments dropping. >> Mhm. >> And I'm not taking on new projects and we've got about 200 million worth of projects in the pipeline for the next four or five years. So, we've got the projects, we've got the land, we've got the approvals coming through. They're all at different stages, but it's the whole thing is quite clunky and slowing down.

46:30>> Mhm. >> So, you know, I'm kind of here in the last two days today and yesterday has been fantastic to understand the processes and everything, but being the key man or being so ingrained in the every single project, every single block of land, the funding, the banking, the feasibilities and everything. Uh, you know, I'm still do I'm still at the office 11:00 at night doing admin work. missing out on the projects. That's the future projects.

46:57>> What's currently taking the majority of your time? That's the lowest value. >> Staffing probably staffing work and being able to delegate to people to do undertake the roles that I do. >> So being able to delegate is what's not happening, right? Yep. >> So the things that are taking your time that are preventing you from delegating is when you said staffing the role. So it's like hiring and onboarding like interviewing and training people is the thing that is taking your time.

47:30>> Yes, it is. But I have been doing that in the past but as usual as a lot of people have been saying the last two days they stay for two or three years. You spend all the time bringing them on bring on boarding them and everything and then suddenly bang want to try something else. I think um so just so I'm clear are these for one-off roles or repeated roles? >> Repeated roles. >> Okay. So I differentiate that because if I have a one-off role then I'm far more willing to basically with one-off roles I buy more than build.

47:59>> So I want to find someone who's been there done that multiple times over. I'm willing to pay the premium to the recruiter. They already have the network and I'll bring top level talent in >> on repeated roles. I consider that to be our our core differentiator. It's the core economic arbitrage we have in a service based business, right? Is that we buy talent for less, we add our own special sauce which allows us to charge more for it. That arbitrage is what we're able to make, right?

48:23>> And so all repeated roles need to have fundamentally like your in-house university that probably doesn't exist right now. And so I think what needs to happen is that training effectiveness needs to go up and cost to train needs to go down. And so the way that we think about that is that it almost costs the same to train one as it does to train five. >> Mhm.

48:47>> And so if you were bringing on these roles right now, how do you train? Well, [snorts] listening the last two days, usually I try to bring on experienced people, but they also bring their own baggage in a way. So, I've changed that to try to get a bit of experience, but then on board them >> correctly. And I've only got a small team, >> so it's not too difficult. But if one leaves, the problem is I've got to fill in the role again.

49:14>> Yeah. >> So, but the roles that are that you the work that you're doing right now that you shouldn't be doing, is it somebody on your team that should be doing it or is it somebody who doesn't exist that should be doing it? >> Someone doesn't exist. >> Okay, got it. that role. Are there going to be more hires like that in the future that are going to be repeated? >> Not if there was a key person that could fill that one role. >> Okay, got it. So, from a training perspective, once you train one person on doing it, the training the second person, if for some reason that person doesn't work out, should be significantly less. But I think what you describe is obviously a problem that every business owner has to deal with. Um, but I think a lot of it comes down to knowing how to train well.

49:56And so I see the biggest efficiency that happens. So if we think about a training process, it's like you want to have observable behaviors, which is what we want someone to do, right? Most training stuff uses vague language. And so as a result, they get vague outcomes and no one knows what's happening. Once we have the observable language, we have to then transition to uh modeling, which means that we have to show them in front of them what what good looks like. This is what good looks like. Let me show you.

50:21After that, we have to elicit trial attempts. Now, this sounds obvious, but what happens most times is you keep explaining it over and over again. I already explained it to you 10 times. It's like, yeah, but you never let them [ __ ] try. So, they have to try, explain less, get them to try more. Once they try, then we um observe what they actually do. Now, the key part here is like, well, yeah, no [ __ ] Watch them. Um, but if you think about the day-to-day of what happens in a business, they're going to say, well, it's in progress. I'm working on it.

50:47They talk about their intentions. I'm really working hard. But the reality is that like just show me what you got and most of the time it's nothing right and so um once they do actually observe sorry once they do try and you can't observe what happens then we have to we go immediate correction on what they should have done better we give praise if they did it right and then we repeat until stick. So this is basically how to shape behavior of an individual. This seems absurdly obvious.

51:23When I audit training systems, almost no one has it. And so if we have a key role, each call it skill, which is a chain of actions that are taken together, repeatable outcome, that's how I define skill. Um is going to have chain of actions. And so each chain of actions has to follow the seven steps. And if we clearly define that, which is like, hey Jessica, there's six workflows, like I was saying earlier, that I need you to be involved in that you're not. If I try to give you all six, you're probably going to fail at all six. But I'm going to give you this first one, and if I clearly say, when people come in and they email me or whatever, they go into three buckets.

52:03Let me show you. I'll do it in front of you. Great. Tomorrow, I want you to try. All right. Let's do it right now. Not me explaining the system over again. As soon as she does it wrong, immediately, not after she's done and then trying to retroactively do it, we correct them in the moment and say, "Great, try it again." And for us, whenever we train anything, we correct in the moment. >> Yep. >> And we set that expectation up front.

52:27>> And once someone tries and does it correctly, whatever whatever thing we want them to do, we call it locking it in, which is that we have them repeat the action three times in a row before we move on to the next action. And so it's like, "Awesome job again. Awesome job again. Awesome job again. You got it. Move on. And so we have a very strong culture of training here and that is what allows us and on the leadership level to not have to sink back in. And all of these things are documented. Now, to be clear, I'm not saying that we're perfect. We're far from it. But especially on the roles that you know that are always going to exist in the business, they're that as the business scales, you'll have more of them. Those I see as the training universities that have to exist. And so if we see this as the constraint of the business, then I would just ask myself, what am I doing with my time that is not building out these training systems that is I'm seeing as more valuable because it may be this is kind of like the the nurse in the uh operating room. She walks past a sprained ankle to deal with the gunshot wound. It's like this is the theory of constraints. Like of course there's going to be more than one problem, but if this really is the limiter of the business, then this is what I would go pro on.

53:30>> Yeah. Okay. Makes sense. It does process it for me. I try to break it down into observable actions. All right. >> I'm Marvin Mitchell and I um I am um in a financial planning business for um high high net worth individuals looking to invest and minimize their taxes. Um and I used to close about 42% and my previous top adviser was at about 36%. Right?

53:55>> But since he left none of the remaining adviserss can get over 20%. This is despite me training four times a week uh for for the the last couple of years. Um, so if you were me, how would you tell whether this is a sales systems issue, a talent issue, or a leadership issue with me? And should my COO and and me should we step in and double down and directly lead sales um do sales or should we spend more time recruiting and repositioning new advisers as um as one of our first few moves moves.

54:23>> So I'll just hear it from the hip just from a pattern recognition of having done this a lot. If I see a team that's struggling for many years in a row and it's the same leader, it's the leader. >> I thought so. [laughter] I mean a good leader would know like so sales sales management is is really about culture right like that is the job of the manager is to maintain the culture and so then what's the culture right that sounds like a big fuzzy word but it's basically the rules of engagement it's what gets rewarded and what gets punished

54:52>> and so that leader has to set the rules for this team and enforce those rules both the positive and the negative and most times oh shoot I just had the stuff there. Most times, if we're looking at this list that I just went over, they're missing one of these steps. Now, this is how you train an individual. Once you transfer it to the rest of kind of the department, they have to start giving kudos to the people for reinforcing each other and saying, "Hey, Johnny, great way to support, you know, Sally."

55:26>> And so then we reinforce that behavior and then all of a sudden they start reinforcing each other. Once they start reinforcing each other, we start winning more. When we start winning more, we have to tie winning to the winning behavior, saying, "Hey, we didn't just win because you guys are great closers. We won because we have a great process." And so, you follow the process and that's what creates the wins, right? And then as soon as you start winning and you tie the winning to the uh to the behaviors, then more winners start showing up because winners want to join winning teams. And so that means they have to create an environment that that encourages winners and also cuts out losers because what happens next is that you have to raise the bar because what was great last year is just acceptable this year and what was acceptable last year gets you fired this year.

56:07>> Mhm. >> And so like this is the cycle of winning. And so right now you have did the dip in sales happen when you brought the new manager in? >> Um no. So, um actually we are we're on a up since my new um COO came. It's only been couple months though. >> Um >> but what is the sales percentage now? >> Um it's only still 20. I mean it was it was like 18. It was 20. So we just recently we just So we went from 18 to 20.

56:35>> It's not great. But we just repositioned. So what we just did was reposition >> our hunters which was our adviserss >> to be more former. So we created better advisor team. So what I mean by that instead of making since they were in closing we made them instead of hunters where they were actually closing the deals we put them on advisor teams >> right >> now. So that sort of left room for we can give them some leads but we can also go out and hire some new advisors um if we wanted to. And right now I hate to say it that I for the first time in about three years have had to step in now and do most of the meetings until we figure it out.

57:17So, who is managing the team? >> So, great question. Um, [laughter] >> so I'm doing a lot of >> I'm like, "Fire the manager." He's like, "Well, >> well, [laughter] so I'm I'm doing I'm doing a lot of the the coaching, but we do have a sales manager, but it's a fractional sales manager." >> Yeah. >> And um and it hasn't improved. I mean, it's it's been >> How long have you had the fractional sales man? >> I was going to say it's been about seven, eight months now, and it's about the same.

57:42>> But before that, Well, so yeah, he added nothing. But what what about before that? Who did you have? Cuz you were at 20% prior. Correct. >> Yeah, before that we we didn't have one. I mean, >> so he he adds zero value. >> Correct. >> You were at 20 without him and you're still at 20 with him. >> Correct. >> Might as well save the five grand a month or whatever it is. Um, sorry to your sales manager who watches this later. Um [laughter] um so fundamentally like [sighs] I how big's the the team?

58:14>> Um so we um we have a total of about um >> sales just sales guys. Yeah. >> Um it's about five. >> Yeah. Like that's a full-time role, man. That's a full-time role, >> right? >> Like weekly you've got daily training that's happening, right? where you're going to be having kudos for the team, giving each other. >> The manager models one of the four parts of the script, intro, disco, pitch, close,

58:40>> and after doing the modeling, role playing happens. That's every day. >> Every week, there's a one-on-one with every single one of the guys >> where the manager is going to go over what's going on in your personal life because if you're getting divorced, you're probably not caring about the script. >> If assuming you your personal life isn't screwed, we then go over short-term goals, which is like, hey, we need to improve your close rate. I need you to work on building rapport. Hey, you're loosening the frame. Hey, when you get in the pitch, commission breath starts coming out. I need you to change your tone. Lower, slow down when you're speaking. Add more space between words.

59:08Let's role play it. Right. Um, and then uh in terms of so that's we have weekly and daily in terms of the activities that the manager is doing. And then in the in between there, their time is spent listening to calls and giving the reviews so that they can give feedback to the guys. And if guys are below KPI, they're meeting once or twice a day with the manager individually. Fortunately, the whole team is on a PIP right now, >> right? [laughter] >> Or they should be on a PIP, right?

59:34>> Because it's fractional. And that's the thing. I don't think we we don't listen to many many of the recording. So, we need a full-time. >> It's a full-time job and you've got a part-time person. You're getting part-time results. >> Good point. Yeah. >> Right. It's like you're a sales company, dude. >> Right. >> Like you're a sales or this is the this is the bread and butter. This should be the thing that you are the best at to grow the business, >> right? And so like this is like kind of what I was saying earlier in terms of repeated roles. Getting somebody off the street to becoming a productive closer I'll add one more nugget to this which is that I'm going to bet I could be wrong that when you sell you have a very authoritative frame and that you know more than the prospect and you kind of like teach them a little bit. It's a consultative frame. I'm going to guess that's how it is.

1:00:19>> Yeah. I mean I teach everybody the script and I don't follow it. So it's one of those things. I mean I mean it's like I I know how I mean the problem is is like right I got the intuition to know exactly where the client will go before they go there but our team they don't. So >> you know >> but what you just described though is just pattern recognition which is if then statements which are absolutely trainable. >> All right that being said the point that I wanted to like zero in on because it's not just applicable to you but to every other founder who sells in this room and can't get their team to sell is because they can't sell like you. They shouldn't sell like you. My team can't sell like Alex because if I get on the phone, I have complete frame,

1:00:56>> right? I know way more. I can just prove that I can know more about someone's business than them and then say, "Do you want my help?" And they're like, "Yeah, >> they can't do that because they're 23 years old, right? But what they can do is I can develop a script that doesn't require them to be the doctor. >> I just need them to be able to assess the problem and then hand off to the person who's going to do the solution." And so I think what will be wiser for your business structure overall is that you have your hunters and then you have one nerd in the back who obsesses about investing.

1:01:28>> And so you let the you let the hunters go manage the relationships, go get the money and then have somebody else who manage the money, >> right? >> And then I would use that as a USP. If it were me, I'd be like, listen, you don't want every one of these Tom, Dick, and Harry's managing your money. Like none of us are special snowflakes, right? Believe me, you don't want the nerds and the quant guys managing your conversations. I promise you that. All right? And so what we do is like I'll manage the this, they take care of the money. >> That's a very good pitch. >> Yeah, >> that's how I would set it up if I were you.

1:01:56>> Awesome. Thank you. Appreciate it. >> 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 0 to 1, 0 to 10, and 0 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 uh enjoy.