70% of Businesses Pivot Too Soon and Make Less Money

0:00So, we have Jackson Higgler. His business is Mr. T's Pizza. >> Okay. >> It's a fast-casual restaurant selling pizza and ice cream. >> Okay. >> One location generates 2.4 million in revenue, $850,000 in profit. >> Nice. >> Fricking sick. Second location opening soon. Here's his question. At 22 years old with a working model and strong cash flow, should I keep doubling down on opening restaurants or pivot cash flow to a higher multiple vehicle, acquisitions, a scalable business to reach a $30 million net worth by age 30?

0:31>> How old is he? He's 22? >> 22. >> Mhm. Mhm. >> [snorts] >> You know, man, I I think the monetary goals are, you know, it's a good thing, but I wouldn't like make it like letting the monetary goal be your decision for how you run the business, I don't think it's the right long-term perspective. >> That's what I was going to say, too. >> Yeah, I think it makes it less likely that you achieve your I actually makes ironically makes you less likely to achieve your ultimate goal.

0:57Um I think that I think you have to decide what kind of business you want to run. I will say that the you decrease the likelihood that you accomplish the objective with the the increased number of risk and variables you introduce to the system. And so, if you have a working model right now that's doing 2.4 million with 30% margins then you're going to want to like keep doing that as much as you possibly can. You want to add something? >> Yeah, I was just going to say it was interesting I was studying why most startups fail um and I was uh you know, did a deep research with all of my AI and it was talking about how it's like something like 70% of startups pivot too soon because they believe their model's unscalable. And because of that, when they pivot, they actually end up making less profit. And so, I think a lot of times what happens is that we do something and it's unscalable and then we think, well, gosh, that was so hard.

1:45I don't want to do that again. I should pivot and try and do something more scalable and easy and that has more levers to pull, but the reality is is that you get better with each time you do it. And we've actually seen this a lot with physical locations cuz a lot of people come in here and they're like, oh gosh, you know, I've heard like I should go online. I should do this. I should do that." And I tell my team, for example, like with acquisition.com, I'm like, "Great. Let them all do that and like we will keep doing what we're doing in our space. We will do what seems unscalable and we will make all of our We will make everything work from there." Because a lot of times what happens is that people pivot too soon because it seems too hard. And so, I would say to you, one, if you just keep doing what you're doing, you're going to have a $30 net worth by the age of 26. So, like that's going to happen regardless.

2:25You're going to have the net worth. How do you want to get there and how do you want to feel? I think a lot of the times the biggest risk to an entrepreneur is not that you fail, it's that you quit. And you will quit if you hate the model, you hate the vehicle, and you hate the people you're doing it with. >> It's also very normal to always want things to go faster. And then immediately assume that because it's not going faster, you're in the wrong vehicle. And it could be a money model issue. It could also just be a patience issue. And this isn't me trying to say like, "Oh, you're 22, like you're impatient." But like, I'm impatient and I'm 36.

2:54So, >> Yeah. I would also say, you know, a lot of young entrepreneurs when I talk with them, they're like, "Well, you know, my friends are out there and they're making X amount of money doing this or this." And it's always a fad. And you know what I tell people is like, "Do you want a business or do you want to make money? There is a difference. You could go, I'm sure, go make more money than this right now with the skills you have. Does that mean that that same thing that you go make money with is going to be around in 12 months? Probably not." Because you're just grabbing a fad essentially, like everybody else. And so, I think sometimes it feels really disheartening because when you're doing the really hard work that's going to result in achieving your long-term goals, it feels like, "Well, gosh, but if I did this, it would go faster right now." And so, people pivot because they see that it would be faster now, but it'd be slower later. So, we always like to say, "Harder now, easier later. Easier now, harder later."

3:41>> It's actually a lot of what we were talking about with Tom Bilyeu when he was here. It's like, you want to seek the hard because whatever that hard thing is is the thing that other people are unwilling to do. And so, like like why do you think Elon's companies are worth so much? Because no one else could be like, "Oh, we're just going to create a rocket launching system to put a thousand satellites in space. But if we do that, then we could just have internet all over the world." It's like, "Yeah, well, if you do that, then yeah, you can just own the internet of the world." And like there's probably more than one hard thing in order to do that.

4:09>> Just a few. >> Yeah. So, okay, that was that was 22. Just keep on the path. >> Yes. >> And uh you probably will get there faster than you think. I do think that if you want to if you want from an opening uh strategy perspective, if you want to take over old ice cream parlors, which I think would be my way of doing it, because it'll cost you way less from a capital expansion perspective to to open it up. Uh because they're already going to have the freezers and all the equipment. And so, when I when I expanded the gyms, I think uh two one or two of the gyms were exist No, two of the gyms that I opened were existing gyms prior. And so, I was able to just assume them already with the conditional use permits in place, already with a bunch of the equipment in place. And so, it cost me almost nothing. And then I was instantly be able I was able to uh basically recoup my my original investment. Again, not a promise, just like it's just something I helped. Okay. 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 zero to one, zero to 10, and zero 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, I appreciate you and uh enjoy.