Zaunbau-Unternehmen mit 20 Millionen: Fünf neue Top-Verkäufer

0:00Unternehmer/Gast My family owns a residential fence company, so we sell fences to homeowners. Uh our current revenue is roughly about 20 million. Um I think a good goal for us would be 50. Um I think what is stopping us is leadership and A players within our sales and management, and also standardization of our processes and SOP creation. >> Okay. I believe you. >> Okay.

0:25>> [laughter] >> So, right now, do you need more customers? >> Not necessarily. >> Well, do you need more We have to figure out right off the bat. Do you need more customers or can you not can not handle the the the stuff you got? >> We can handle the stuff we have. >> You can. So, you need more customers. >> We need more lead people people to answer the leads and people to close the deals. >> Okay, so you have leads. You have a sales constraint. >> Yes. >> Got it. Okay. So, how many sales people do you need? It sounds like a similar similar How many sales people do you need in order to deal with the leads issue?

0:59Alex >> We currently have five. I would say we at least need to double that. >> Okay. So, what stops you from doubling it? >> Um I think it's part the nerves that the market might not last and need or require that many people. So, kind of putting all the >> be a demand issue again. >> Yeah, well, I mean, it's not like we don't have a current demand issue. We have a plenty of leads coming in. We've got a whole separate staff that are

1:24>> the fear from? What are your margins? >> See, this is where it's hard for me because I'm not the CE CEO. I'm the right-hand woman to kind of the founder, so I don't know specifically. >> You don't know the margins? As the right-hand? >> No, cuz I feel like it's also kind of a data problem that we have of not being able to collect the proper data and know that it's actually correct or accurate as well.

1:49Alex >> Well, I'll say it's one of two issues. You said we're afraid to hire these people. I would say why if it's like it's just between my ears and I have irrational fears for things I'd be like, all right, let's get over it. If it's because we have no cash flow, then it's like look, we have cash flow issues, we have to go down that kind of decision tree. Um assuming you don't I mean, have you ever heard of the CEO saying that they have cash flow issues? >> Not necessarily. >> Okay, well then I would be like, why don't we hire five more sales guys?

2:15>> We're in the process of doing that. >> Okay, there we go. Okay, great. Got it. No, you're good. Yeah. >> 26% is our kind of thing. >> You know, we're there. You know, we fine-tuned the back >> Mhm. >> Now it's upgrading the sales end. >> Okay. >> We have plenty of leads coming in. >> Yep. >> Stop the our process of how we used to do it is now changed.

2:41>> Okay. >> And like you said, it's doubling up. We're in a market where it's it slows down a little bit cuz it's winter fencing Minnesota. >> Mhm. >> But we're still going >> [snorts] >> through all winter. >> Cold. >> With the culture with her help, so everybody knows. Um and uh yeah, we're on that doorway to find the right you know. >> Is it all uh >> Not knowing the

3:07Alex >> Yeah. >> Not knowing the right path of how to bring in the right sales manager. >> Yeah. Basically, you need to build a recruiting machine for sales cuz you're getting to the point you have five sales guys now? >> Yeah. >> Yeah. Um and are you doing any Do you do any self-gen or is it all uh >> All paid ads. >> It's all paid, okay, yeah. So um the people who who do who do home services at a certain scale, which is right where you're at right now, you start needing to develop basically like a sales academy um that's internal. And so just like you have you have your lead gen you've got nurture you've got sales you've got, you know, uh onboarding of some sort and then you've got, you know, retention and ascension for a customer, right?

3:57You're going to have app gen, app nurture, interviewing, works the same way. Onboarding, and then retention and ascension of the sales people. It's just that we have to build a parallel structure within the business, always, so that we can, just like we spend money reliably in our demand gen side, we need to be able to spend money reliable on the supply gen side. And so those just have to be parallel functions that exist within the business. And so just like you probably know, I'll bet you know like what your CTRs are, what your opt-in rates are, what your, you know, what percentage of leads you close, what percentage show, all that kind of stuff, right? On this side.

4:35Alex >> that data. >> Yeah. Well, it's good. Well, just like you know those stats here, you just need to know those stats here. Are you guys doing L2 with us? >> We're going to. >> Oh, cool. Yeah, I was like, cuz we build these things out of like all the time. Yeah, but that's what you need to do. We just have to build out the basically the entire sales the the the pipeline, the funnel flow of And so I was I'll complete the thought in a second. Um So when I was talking to you yesterday, 2 seconds ago, about this, how much does a sales guy make you?

5:09Right now. Gross profit. >> probably each guy is 700, 800k, maybe. >> 200k just for simple math. And that's in gross profit? >> Yeah. >> Okay, and then how much >> What did you put down there? I'm sorry. >> I said So what did you say? How much How much gross profit do they make? >> different cuz we have five in-house, five office. Let's think of It's really like a 10 Yeah, they're measured on the side, your inside sales.

5:34That's kind of a pipeline. >> Yeah, okay. >> 20 million, so a year each guy is >> We divide by 10, 2 million bucks. Just be Keep We'll keep it simple. And then what do What do them? >> Uh, upwards uh maximum is about 200. >> Okay, 200 for the best guys. Okay, fine. And then gross profit on this? >> Uh, probably >> 50? >> Up to 2 million?

6:00>> Like what's your gross profit? Not net, gross profit. What's cost of goods? >> Uh, about half that. >> Okay, yeah. So, 1 million. So, for me I see this and I see a 5:1, which by the way like some of the best returns you get in the business are just your cost to acquire talent versus lifetime gross profit per employee. And so if I know that we can generate 1 million dollars in gross profit, if I said, "Hey, you could put 200 grand in the S&P or we can put 200 grand into this machine."

6:27>> Who's on the hook? >> Yeah. You get a you get a million in gross profit and then you have your enterprise value probably also 8X uh, for your business. It's like great, 8 million tax free for 200k. Sounds like a deal. >> And there was a little add-on, you know, of the honest at the beginning of your when you came out. So, I feel lost >> Oh, you're good. >> the same kind of tension that the daughter and I >> Yeah. >> You know, so trying to fix that here and there.

6:53>> Are you guys related? >> He's my dad. >> Oh, there we go. That makes it easier. Okay. Uh, >> [laughter] >> I know, you're good. Um, I mean, I I have I have no words of advice there. Um, but this is what we need to do to business. Yeah, I limit my scope. >> [laughter] >> No, I just meant with the the scale. >> Oh, yeah, yeah, yeah. >> That's what I meant. It's kind of a home run hit for >> Oh, good. Okay, cool. >> in a different way. >> No, I appreciate that. Oh, yeah, I mean the whole point wasn't like hope everybody here didn't have somebody die yesterday, you know what I mean? But um, but we all have that happens.

7:25Right? And so like um, like if I look at this thing for me and the reason this is kind of important cuz I I was I was going to go in one of two directions. I was going to either do that or just I was going to let the spirit move me. Um, but what is limiting most of y'all's businesses, which is the stuff that no one actually wants to talk about, is the fact that like you aren't good enough as entrepreneurs. So, you haven't achieved enough yet. You haven't sustained the success you have long enough, and people don't want to work for you cuz they don't believe in the vision you have.

7:56That's the real thing. Because business at the highest level can really be boiled down to find world-class people and get out of their way. You've heard Branson talk about it. You've heard Steve Jobs talk about it, and it's true. The problem is they don't want to work for you. Real. Because Steve Jobs is like, "We're going to add another hundred billion to Apple." And people are like, "Wow, that sounds amazing." And when you meet world-class talent like that, those guys are making $20 million bonuses per year.

8:22Right? Different levels to the game. And so, I bring this up to say that if you were a small business, which is the vast majority of people here, um then you have to win on character. They have to want to work for you. And I think learning how to master these elements of like not being a hothead, not being somebody who, you know, turns on a dime. Um if you have a bad day, no one knows about it. I think those are the things that allow you to get way basically punch above your weight class.

8:48Because you basically always have to punch above to get that talent, and then that talent pulls the business up. And so, I'll tell you the story and then I'll I'll switch to the next person, which is I um when we sold Gym Launch, some of you guys may have heard this, but when we sold Gym Launch, there's this long table, um like the board room in there. And we had uh my team on this side, and we had the private equity team on this side. And they'd raised $1.2 billion um in funds to do their stuff. And I was doing my back of the napkin. I was like, "This guy's going to make 400 million in the next 5 years." I was like, "That's chill, taking no risk."

9:17Um and I did the math on what he was going to make on Gym Launch, and I was like, "He's going to make more money on my company than I did." And what was interesting to me though is that I saw his entire team, and I saw my team, and every single person on his team was better than every single person on my team. And it was this very visual stark contrast between his team and my team. And I was like, "Got it." And so I just vowed that whatever the next business I was going to do, I needed to have a vision that was significantly bigger so I could attract a different level of talent so they could make something bigger happen.

9:48Alex So, that's a a slightly softer answer, but um you need to build the talent funnel, put that in place, and then not be mean. >> Thank you. >> Yeah. 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 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, we'd love to help you out. On the thank you page, you can just 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.