Von 1 Million Jahresumsatz aus weiter skalieren

0:00Unternehmer/Gast So, we sell a soccer training program to soccer players who want to go pro. >> Cool. >> We do a million dollars in revenue. >> Sweet. >> We would like to be at $12 million in revenue. >> This is what's stopping us. >> We actually kind of don't know. We're getting [laughter] told we're getting told it's a leads issue. So, to just do more volume. >> Can you handle more customers right now? >> Yes. >> Okay. So, it's a demand. Yeah. Well, it's totally demand driven. We we also think we're playing the wrong game because

0:30>> we're the only ones doing it in the space. >> That doesn't necessarily mean that you're playing the wrong game. >> Anyone else who's done it sells a physical product. >> Mhm. You'll make way more. >> So, >> but you'll have other issues. What do you guys want? You said you want to make 12 million. >> Do you want to sell the company? Do you just want to make cash flow? Like, what do you guys want? >> Sell. >> Yeah. Yeah. Digital definitely won't sell.

0:54Alex Yeah. So if you want to like have an exit, then you'll have to build a brand and then build a product that your audience really likes and work very heavily on that product. So that doesn't mean you're going to white label something. That means you actually have to make something that is different and better. And as soon as you do that, and if you actually get any moniker success, prepare for China to make dupes and start um selling the same thing as you. And that's why brand matters. And so they have to want to buy your thing because of who you are and because of what it is. And so it's like you have to not skimp on quality. you have to look at all the details that other people would skip over and show the attention to detail that you guys have in terms of how you make something. The alternative path there is like if you can figure out a way to sell your education to teams or something like that that can be um more residual, some sort of subscription that's more reoccurring in nature that could create something that has more enterprise value if the goal is to sell it. Um, I will say if you if you approach this with like we just want to build it to sell it, it's [snorts] really it's it's actually like super rare unless you go into a really boring business for that to actually happen. Like guys who are experienced M&A guys who then go in and say, okay, I'm going to roll up these HVAC. That's different than someone who's like, I want to start a business and I want to sell it. It's you you need to take like two steps back into like the the shoes of your consumers and say like how do I provide value on a consistent basis so that I can make something that people want to keep giving me money for and then if you do that for a very long time then you have something that becomes valuable enough that somebody will pay for it.

2:23>> Got you. The whole selling thing is kind of what we discussed here. >> Yeah. Yeah. Good. Um, but in terms of the leads issue, everybody's been telling us to do more. And just thinking about that that whole problem, we're going to run into this constraint where since he's the face of the brand, I do everything on the back end. He obviously can't like pitch a tent and live at the football field and continuously fill new do new do new do new do new do new do new do new do new do new do new do new content, right? He's going to do

2:49>> you wanted to win. [laughter] >> Yeah, Tim told us the same thing, >> right? My Asian immigrants. That's right. [laughter] But we were just basically like through all the conversations that we've had, [snorts] we know that it's a leads thing for the thing that we're selling currently. And right now, we're selling like a 397 digital product to those younger footballers. How can we get to a million a month with that

3:16>> if leads is our issue and the whole content creation process? >> And your and your primary thing right now is just all organic, right? >> Yes. It's everything's organic. There's no paid. >> Yeah. Yeah. Um, well, first off, you could make it annual or a six-month thing. So, at least for, you know, 397 recurs every six months. That would be an option. Um, another thing that we could consider doing, like I think it'd be cool if you could make this into like an association of some sort. Um, where if you can get a lot of buyers, you can create aggregate discounts for things that people who buy soccer related stuff could benefit from.

3:53And typically discount related associations, if you can do like 10x value, meaning if someone pays $400 a year, it saves them, you know, $4,000 a year uh for being a part of it. People that becomes very very sticky. And it also creates a true network effect where the more people who get added. Whereas in a, you know, a a service- based business, the more people get added, typically the quality of the service will will will go down or degrade. Uh whereas when you have a network-based business, the bigger the network gets, the higher the buying power, negotiating power that you have in order to get more aggregate discounts for that community.

4:26Alex Um but fundamentally, you have a one-time purchase product. You would like to have something that has higher LTV. You either have to make them worth more or you have to sell more of them. So you probably have to do both of those things in order to grow the business. If I had your business, I would be trying to solve the equation of like what can I what can I sell these people that will they will not want to leave. Um or and this is totally okay this is out is that like you might just sell something that's like $4,000 to a smaller percentage of those people as an upsell to the $400 thing. Um and like triple or quadruple the business and then with the excess cash start running ads and you'll get to about a million dollars a month.

5:04Alex You won't have a sellable company but you'll make more money. >> Okay. So, if you're like, I would be cool making $10 million a year, the path would be to add a backend and then with the cash from the backend, start running ads. You have to keep pumping out more content. You'll have to learn how to run paid ads. That would be the like the lowest operational change thing that you'd have to do to get to a million month. You won't build something that will sell, but you will make more money.

5:28>> So, before we even tackle the whole thing is like fix the the offer basically. >> Yeah. So, option one is you just add a backend. That's very simple. Just add higher touch. uh you know, services to some degree to the people who you know, one out of 20 of those people who buy the 400 thing buys the $4,000 thing, whatever. Maybe it's one out of four. We'll find out. Um that's that's option one. Option two is you keep it digital and you add some sort of recurring element to it. It'll be significantly easier for you to just add a more expensive thing. Um but those are the two options.

5:58Alex >> Do you recommend touching the the front end offer first or do the back end thing? >> No, I think you just call the people who buy the $400 thing and ask them to buy a $4,000 thing. Thanks a >> Yeah. [applause] >> Yeah. So, for you guys, it'll be it'll be two triples. It's like the first trip will happen when you call all the people with the 400 and sell them a 4 $4,000 thing and that'll give you the first triple and then with the excess cash from the first triple, you then spend more money on ads and then you get the second triple. That's what it'll look like. You'll just pro like the real realistically if you're making I'm guessing almost all profit right now um you'll go from making a million dollars a year in profit on a million dollars a year in revenue to like threeish maybe $4 million a year in profit on 10. So it's going to be a different game but you will make three or four times more money. So that's what it'll look like.

6:49Alex It will not be sellable. And you'd come back at that point and be like hey what should I do? And I would say, well, I'd go back to the beginning and build a business that had a recurring revenue stream that made it super valuable, but it will be slower and harder. But that's also why businesses that are sellable are more valuable because they're slower and harder to build. So, that's a you guys question of what you want. You guys are young. Sometimes it's nice to just make money. Um, if you're like, I want to have a big exit, then just build it the other way. But those are the two paths that I would say from where you're currently sitting. If you want to build a physical product, it's media heavy, brand heavy, product heavy, and making other associations of other faces that aren't you guys um with the product and then eventually having a suite of products that people associate with other cool people in soccer.

7:33Alex Real quick, I'm going to show you the exact 10stage road map from zero to 100 million plus that less than 1% of companies finish. I've now done multiple times. And so I can say with a lot of confidence that these are the stages as headcount increases that you need to get through. And I broke each of these down by eight different functions of the business. What the constraint feels like what are the symptoms of it when you're going through it and then what steps we actually took to graduate. And we've done this across software, physical products, uh service businesses, brickandmortar, all of this. And it works. And it's my gift to you. It's absolutely free. And so the link's in the description, but you just go acquisition.comroadmap.

8:09Just enter your info and it'll spit it right back to you. Offering.