"No One to Hire. Do I Just Charge More?"

0:00Um, I sell health and wellness, so basically physical therapy, personal training, um >> Online or in person? >> Uh, brick-and-mortar, in clinic. Um, 35 to 45-year-old athletes are is the avatar. Um, we do about a little over 3 million in revenue. >> Awesome. How big is your footage? >> Um, I have two lo- two physical locations. Um, each of them between 3,000 4,000 square feet.

0:26Um I would I would like to >> [clears throat] >> level up to that 10 million in revenue mark. >> Okay. >> Um, the biggest thing that's stopping me is uh the physical therapy industry is um is a very uh we have a huge shortage in practitioners. Um, to give context, there's about 16,000 open positions for >> There's a supply constraint. >> Yes.

0:51>> Okay. >> So, um I need more producers to produce. >> Mhm. >> Um, so I decided to kind of pivot and say, "Well, if I can't find the people, I'm going to increase price." >> Well, I'm glad you did that as as the thing you decided to do. So, that's fine. >> [laughter] >> You're like, "I started another business on e-commerce." Yeah. Yeah, so I started teaching people to uh yeah, yeah. >> Uh, so that went well to the tune of we didn't lose revenue.

1:19>> Okay. >> Um, but I'm at that point where now do I go all in on continuing to increase price and move more into almost like a concierge membership model? >> Mhm. >> Or do I go all in and just try to crush and find the people and do what nobody else is possibly doing and >> Okay. Let me ask a couple quick questions. Do you have any issues on getting customers? >> No, we have >> More demand than

1:44>> that we could book people. >> Yeah. So, um Have you heard my story about uh buddy mine who's in the cleaning business? >> I know. >> I'll tell I'll tell you. So, um former gym owner uh crushed it with Gym Launch and then decided he started making enough money that he started investing in real estate, as all entrepreneurs do. And then, after he was, you know, crushing in real estate, he was like, you know, I should probably start a cleaning company, cuz he started doing Airbnbs out of his real estate. He's like, this is costing me a ton of money, I should vertically integrate. And so, he started the cleaning company, uh, to clean, you know, his Airbnbs. He's like, well, now that I have the cleaning company, I might as well start selling other customers don't want to leave money on the table, right? Uh, and and so, you can see how this spindles, right? But, the the the the moral of the story there is that I called I called him up, um, and he was telling me, he's like, dude, it's crazy. He's like, selling cleaning customers, he's like, CAC's like 25 bucks. It's insane. Every like, it's so easy to get customers. And I was like, oh, you should scale this to the moon. He's like, yeah, you know, it's kind of hard to get English speaking maids who don't take stuff from people and do a good job and show up on time and are willing to work for $15 an hour.

2:48And I was like, okay. So, the nice thing that you have is you have a supply constraint business. So, he was used to fitness, which is typically demand constraint. So, it's just it's it's hard to get people to want to show up to the gym, right? Uh, not hard to get people to say they want somebody else to clean their house. Um, and so, basically, the reframe that I gave him is what I'll give you, which is, you're not actually in the physical therapy business, you're in the recruiting physical therapists business.

3:14And so, the whole paradigm that I would have around this is, what is the career path look like for the physical therapist, so that I can make this really enticing? On top of that, I have to still think through the same you still have the same core four, right? You've got you've got warm outreach, you've got cold outreach, you've got paid ads, and then you've got, um, I should know these, I wrote the book. Okay, organic content, right? So, these are the these are the four things that you can do, right? And then you've got headhunters, right? Which is basically recruiters, um, and you have, uh, word of mouth from your existing oops, word of mouth from your existing staff. And so, these are the ways that you can get, um, physical therapists. And so we have to approach this the same way we approach getting customers. They are just now the customer. And so, um, maybe running indeed ads is probably not the way that's that you're going to get them.

4:03But I'll bet you that outreach will work exceptionally well, um, to get therapists. And I would probably bet that if you had a really good referral incentive, um, over time that would compound. Now, small, not as much. You'll probably need to do this to start. As you get bigger though, there's going to be enough of a base where a few percentage every month of referrals is material. And so, let me just put this in math for you so that you can so this will motivate you to do it. How much do you make in gross profit off of a physical therapist per year on average?

4:34>> About 350. >> Okay. So, if I told you that I could add $350,000 in gross profit per year to your business, how much would you be willing to pay for that in the first year? >> Quite a lot. >> Right. And so, giving someone $500 for a referral, not that motivating. If you said I'll give you 20 grand for a referral, I'll bet you'll get them to move.

5:00>> Yeah, I've never tried that before. >> I'll bet you that'll work better. >> You're right. >> Right. And so, if you look at that, you're still getting whatever 15 to whatever the math is, right? You know, 12 to 1, 13 to 1, um, year one. And then after that it's just gravy. >> Right. >> And so, the way that I would do this is you give this at month six. That way they're not only incentivized to bring them in, you now have somebody else helping with the onboarding cuz they want to get their their nut.

5:27>> Nice. >> So, they'll bring good people in cuz they don't want to pull someone who sucks cuz they're going to work with them. >> Right. >> Does that help? >> Very helpful. >> If you are 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 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 into 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.

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