You're Trapped In Your Own Business Because It's Too Local

0:00Uh, my name is Naveed. Uh, I sell dreams and I built an ecosystem to make it happen essentially. So, >> mean? >> Let's [laughter] get into it. I started off flipping homes. >> Okay. Thank you. >> And then, uh, >> [laughter] >> Okay. >> I started off flipping homes and it got to a point where >> hope and opportunity. >> And it works. >> [cough] >> I flipped houses, got to a certain point where I got about 30, 40 consecutively every year. >> What's revenue? >> Revenue is about 4 mil. >> Okay.

0:26>> Just that line itself. But then it got to a point there's too much competition and I had a hard time being profitable per flip. >> Yeah. >> So, then developed a model where we convert competition to collaboration, started a contracting company instead of buying the product, becoming the product. And then started a coaching channel where I feed this ecosystem. >> [snorts] >> Vertically integrated HVAC company, roofing company, uh, dumpster company, contracting, the whole nine yards. So, teaching people how to do it and I'm giving them the process and how to do it. All that is different revenue drips for me.

0:56Uh, what's stopping me? I got too busy too fast. And, uh, owner-operated for a long time up until about 3 months ago. Hired a CEO, now transitioning a lot of the operation stuff onto her. Really, I don't know what the [ __ ] I'm doing cuz like I'm trying to transition myself out. I don't know how to run a CEO. >> Why are you trying to transition out of the role or out of the company? >> A little bit of both. So, out of the role because to be honest, I don't really care about the revenue, uh, growth factor. I care more about the impact. So, a promise I made myself is that I want to impact at least five like, uh, 1 million lives before I die. So, how do I do that? I'm not going to be doing that flipping homes at a small scale. But I built a company that's so based in locality that I'm just trapped within it. Because it's so local, my team is there, my resources, my companies.

1:43The coaching program only makes sense because it's local. But because of my market size, there's only so many people I can get consecutively every time unless I keep dropping prices, the opposite of increasing prices. >> Uh-huh. >> So, what does that mean? I have to go to a national stage. It's how How I take this coaching at a massive scale. And that's where I'm stuck at cuz I'm too busy in the operations. And that's where Amy came in as a COO to kind of help me get out of it.

2:07And focus on the next phase of, you know, the origin story. >> So you're not trying to get out of the business. You're just trying to expand the business from local to national. >> Exactly. >> Okay. I want to make sure I understand this well. So I'm guessing you run some sort of local workshops. You sell people on you helping them find homes that they can flip. And then you have local contractors, etc., that you own.

2:34>> I literally give them my entire team that I use to flip my own homes. >> Uh-huh. >> I give it to them at discounted pricing. So essentially creating a community. As each class goes on, the community gets bigger, we exchange deals within it. So everyone benefits. They get access to my pricing from Lowe's that they don't get anywhere else because of my volume pricing. >> Uh-huh. >> Same thing goes for my subcontractors and the crews that I do own and manage on payroll. So they get the benefits of all of that. Um but at the same price.

3:01And they get the education of exactly how I do it. Kind of like what you're doing, but at a much smaller scale. >> Very different than what I'm doing. Um Okay, so you have contractors. So do you own these contractors or not? >> I do. >> Okay, so you own the electrician and you own the HVAC and all the other [ __ ] Okay. >> It was cheaper to integrate them as opposed to paying a GC or general contracting fee. So I kind of just

3:28>> Okay. Um what's So revenue is four? >> Roughly about 4 million right now. >> Including everything? >> No, not the HVAC company, roofing company is fairly new. I don't have those numbers yet. But they're roughly about 200K each. >> And you feel like you've ran out of your local market? >> Not yet. >> Okay. >> Right now I'm doing every 3 months. So I'm not >> are you >> in? >> What's that? >> What market?

3:54>> Uh Fayetteville, North Carolina. >> Where in North Carolina? >> Fayetteville, Fort Bragg. >> Fayetteville? >> Fayetteville, yeah. >> Oh, Fayetteville. Or you would say it correctly. I've Okay, got it. Okay. I've read it, not heard it. Yeah, keep going. Yeah, yeah, okay. >> It's about an hour from Raleigh. >> Okay. >> That's like the next big city. >> Heard of that one. Yeah. Um okay. Gosh, so much. >> Yeah. Hence my problem. >> So, you have like seven businesses? >> I lost count. >> Yeah.

4:21>> Yeah. They're all kind of They're all They all feed off of each other in some way. >> Yeah, it's a platform. >> [laughter] >> Um God, man. Uh >> And honestly, the only reason I did it is because like you you say you increase pricing. I can't increase pricing on a home that's based on that's regulated by appraisals, right? There's a There's a cap there. Uh that's what makes my little market a little different than sales. >> So, are you selling the houses?

4:48>> I was. >> And you >> I still am. I still am. But I'm focusing more >> license to make sure you don't pay the percentage? >> What's that? >> I'm kidding. Wouldn't leave money on the table. Yeah, yeah, okay. Um damn, dude. What did you guys say? Oh, man. Okay. Um Dude, this is a lot, man. Uh You like It's stressful. Um I'm stressed. I feel stressed for you.

5:25So, Jesus. Uh I'm like I don't even like Where do you go from here? I mean, I you probably are demand constrained within your existing local market cuz $4 million for the type of business and the average ticket that I'm guessing you charge for this, what are you charging right now? >> We start off the first class as a getting paid for like 10k. >> Okay. >> Nearly not enough. Like the value that getting is just stupid. >> Yeah. >> And I was essentially training my own competition. Hence why I did the whole vertical integration thing to maximize on that to compensate for

5:54>> To use all these words and it's like, "Dude, you're doing 4 million bucks a year." Like, >> [laughter] >> like it's like there's so there's so much. You know what I mean? Cuz like you need to sell 400 people at 10k and you make 4 million dollars and do none of this [ __ ] Or you could sell 100 people at 40k, which is two people a week. >> It's at 15k right now and it's getting filled every time with any like paid marketing. So like the word of mouth is pretty strong. The proof is strong enough. >> no paid marketing? >> Not for the coaching program, no. I do like little seminars every 3 months.

6:21>> And how do you fill those? >> Uh just they know. It's just I I don't know how else to say it. Like you become like the industry guy in the small little town. It's like big fish small pond kind of scenario. >> Yeah. Um Jeez, what's the what's the population of Fayetteville? [snorts] >> Uh Roughly around 300,000. It's transient because of Fort Bragg, one of the largest army installations. So it's kind of going, but >> Yeah.

6:47>> It's about 3 to 400,000. But Raleigh is about an hour and a half. I'm trying to pull from that market, much larger demographic. >> Yeah. I mean you you haven't capped the 3 to 400,000 people in your market, to be very clear. >> No, I haven't. >> Right. And so you're selling how many units a month? >> In homes? Or whatever. >> Yeah, I don't even know. Of >> Yeah. >> Of of the thing of the thing. >> For the coaching program, I got I got about 10 students right now every 3 months.

7:15>> Okay. >> So dude, like >> I I I appreciate the national scale vision. I think you could probably get to given the ticket size and how you can monetize the customer in all these hundreds of ways. Like the the reason you would do that setup is so that you could dominate a local market. You're not dominating a local market right now. You're barely getting started. And so you could probably realistically get between Fayetteville Um, Raleigh, you could probably get to 100 million a year.

7:45>> Just in my neck of the woods alone. >> Yeah. And I think if you just take your eyes off of like, I want to conquer the entire world, it's like, maybe. But like, in order to conquer the world, you have to conquer a country first, right? And before you conquer a country, you got to conquer a city. And right now, you haven't conquered a city. And so, what happens is, when armies overextend, they collapse. And so, you need to fortify your base better. Cuz 10 do 10 a 10 a month is nothing. >> So, what do you recommend? Do I try to automate or

8:10>> No, I think you should >> Or do I just put myself more into it and double down? >> you should just ignore the national thing. >> Yeah. >> And let me just ask the simple question. Can you could you sell 20 people a week right now? Not like, let me say it differently. Can you handle 20 people a week? >> We will be soon. And then the CEO is kind of taking over.

8:33>> have an 8x increase in sales within your current infrastructure. So, that would take you from four to 32. >> This solves the revenue problem, not the impact problem. >> [snorts] >> Do you make content? >> I don't have time. Hence why I'm Yeah, if you couldn't tell, yeah. But that's where I'm slacking the most. It's Yeah, it's the content.

8:59>> Um it would be far easier for you to just make content about the stuff you're doing, impact millions of people that way, >> Yeah. >> than try and get every single person in America to be a home flipper. >> And that's not achievable anyway. >> I agree. >> It's more about the financial education, like selling the the dream of like you can be something more than just what you think you are and where you came from. >> And you can make content about that, and you can distribute it for free with leverage. It's a beautiful thing. And so, like you can be legit because you have a legitimate business, and then you can talk about it. And help all these other people. And then you just keep growing this thing.

9:37>> Okay. So double down locally? >> Yeah. >> Yeah. >> You already have all the like you went through whatever the hell you did to go through and build all that stuff. It's like you just built it and you're like, "You know what? I'm going to leave it now and I'm going to do another thing." It's like, no. Like I'm glad you brought the COO in, but it's probably so that she can do some of the stuff you're doing now so you can do the stuff you know you should be doing but you're not. And so it's like you wanted the impact because you don't have time. You have the COO. Go make some content. It's not going to take that long anyways. And that way you can scratch your impact itch. And then for everything else it's like you need to learn how to run paid ads and sell [ __ ] Cuz like you for sure can sell 20, 50, 100 people a week in a local market no problem for the offer that you have.

10:12>> Should I increase pricing to make it better or should I keep it where it's at given that it does feed my other channels? Like a face value is 15k but the lifetime value of that student for as long as they stay in my market cuz they're going to be flipping multiple homes in one year. >> Sure. What's LTV? >> Uh the what? >> What's LTV right now? >> Uh It's fairly new. So I'll have a better idea in about a year when I have a full cohort going through it. But right now one student 15k. I let's say they do one flip. I make about another 5 to 10k on the contracting. I make about a K in the dumpsters. Uh what else? The HVAC maybe make 3k.

10:50Um What else? >> Dude, I'm exhausted listening to this business. >> Um Yeah. But >> Yeah. >> multiply that across maybe 10 flips they're doing a year if they're a good student. >> Yeah. >> The first year the stragglers maybe they'll do like one or two. >> have a better time just like charging 100 grand and saying you'll do that stuff for free or at cost. >> Yeah. >> Um But yeah, I mean can you raise prices? It's just like can you sell and can you like yes, you could. Typically an offer like this is 100 grand.

11:21>> Yeah. >> So usually they have a done with you style offer that's between 15 and 25 and then there's a uh total turnkey offer which is $100,000. >> No one in my market can afford that. That's the problem. >> That is just not true. >> If I'll I'll do your program >> your market that has heard of you through word of mouth of you emanating your presence into the the the workshops that you run once a quarter or whatever have can afford it. If you run ads, yes. It's just that like how many people show up to your thing?

11:49>> The venue holds 55 is packed out every time. >> Yeah, 50 so you 55 people a month that come in the doors. >> Every 3 months, yeah. >> Every 3 months. >> Right, dude. >> So, it's like the way this looks in reality is you'll bring a 100 people in the room and you'll do three of those in a day and you'll pitch and you'll close 10, 15, you'll close three or five at the you know like the 100k and you'll close a handful at the you know call it 15 to 25k and that's that's the business.

12:19So you like you're you're you like you see 200 people a year and you're like my market can't afford it. It's like well those 200 can. It's like look at 2,000. I'm sure there are some. Let me give you a stat. 9% of people in America have a million dollars in terms of their net worth. So if you include the ass like value of their home like 9%. It's significantly higher than you think it is. They just look older. Real. >> Okay. What do you think about a tiered structure?

12:46>> Uh what? >> Like instead of just having one program like have different pathways. >> Yeah, you could have a done with you and you could do it the turnkey thing which is much higher. >> Yeah. Okay. All right, thank you. >> Dude, that was insane. >> It's costing me money. >> Thank you. >> Thank you. >> THANK YOU. >> [applause] >> IF YOU'RE 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 dollar 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 up, we'd love to help you out. All the thank you pages book a call with my team and we will look into 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.