Gewinn verdreifachen, ohne mehr Umsatz zu machen

0:00And I sell plumbing and air conditioning to residential customers and I would like to we're currently doing around we'll pace it for 15 million this year and I'd like to be at 40 million. And what is stopping me is the chaos. We I recently hired two new leaders from outside the industry and we went from 4 million to 8 million 11 million pacing for 15 now. >> Awesome. >> And the the chaos I'm worried about the over expansion or just just the because we're making a lot of errors our our profits are staying level and I expected them to go up but we're not we're growing top line and we're just flat. We're just chewing up a lot of

0:36>> [snorts] >> a lot of mistakes. >> Yeah. So what is what is basically why the aggressive growth pace? >> It's actually I'm kind of bent more towards perfection and and going slower. The the guys that I hired are from outside the industry. They're they're just top line revenue driven and it's almost like they they we just keep driving it and it's working and I'm making more absolute dollars than than I could have imagined when I first hired him so it's a good thing but I'm I'm wondering if they'll be

1:07>> or I mean cuz you're netting too, right? You're at 13%? >> No. Yeah, we're we're netting about year to date 14% right now. We landed last year at 15.7 and and we're like 16 something whenever I at the 4 million mark. So we're staying flat net but the gross dollars coming to me. I'm I'm the single owner. Everything's paid off. We're not acquiring debt to to grow. So I'm stacking up money but I'm just wondering we're going to make a mistake that that that rams it backwards.

1:35>> What are those guys compensated on? >> Net. >> And they're driving top line? >> It's just how they're built, I guess. They They have They're driving top line and and I one the the guy that's the biggest driver he really uh I just he's just in love with big numbers. He's come from the corporate world where they did hundreds of millions of dollars and and that's what he's uh about. >> Yeah. So, your issue one is data, I'll bet.

2:01Um unless you have real-time gross operating margins on each of your product lines. Um because by doing that, you'll be able to drive EBITDA through the roof. And in your business, being tax efficient is actually um super achievable by actually just playing with who's your Do you have a good Do you have a good um CFO? >> I don't know. I don't think we do. I I would want more of that function. My background's kind of accounting as well.

2:28So, I'm kind of a little bit lent that way. >> Okay. Are you Do you want to exit it or what do you want to do? >> I just want to grow it. I want a good running business that's just a cash cow and kind of a lifestyle business. That's what I want. >> Okay. Um well, what if you said, "Our goal this year is to not increase top line at all and to triple bottom line?" >> Yeah, I like that. >> I feel like Yeah, that's chill.

2:54>> No, I like [laughter] that. I I that would I would be perfectly happy with 15 million and and run 30% net. >> Yeah. Yeah, cuz I mean if you're at 13, 14% or um whichever one it is. Um if if you're around there, I would for sure like you for sure I'd be targeting plus 30 minimum. Um I I don't pay much attention to industry averages mostly because like American averages is like fat, overweight, and divorced. So, like why would I care about industry averages?

3:21Um so, I I kind of I kind of take the same position with with most service businesses. Um I'm going to bet right now that you probably have some sales motion that can be improved and probably some pricing that can get optimized that would improve improve cash flow. Um and when you expand that quickly, um having good enough talent. So, it's basically the sequence goes like this. It's like, "Okay, we have to um look at the sales motion so that we can fix the pricing and packaging of each of the services so that we can generate sufficient cash flow, so that we can get the talent that we need, so we can shore up the infrastructure.

3:58And so that would probably be the sequence that I would do it in. And then I would set the year's goal like here's our four-part plan. This is what we're doing for next year, and this is how we're going to go from, you know, whatever two and change or three and change, whatever it is, to, you know, six uh in EBITDA. >> Fair enough. 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 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 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.