Was dir keiner über die Skalierung auf 30 Mio. sagt

0:00I sell social media services to sports entertainment clients like Netflix, NBC Sports, um etc. We do about 12 million in revenue. Um like you always say, too, I think we sell time actually to these huge whale clients cuz that's what they need. Um I'd like to be at 25 30 million in revenue. What's stopping us is give you an example. So, for the last 12 months we've seen a big uptick in sports sponsors wanting to really up their game on social media. So, think Verizon, Visa, State Farm, etc. So, I told my team, "How do we get four State Farms next year?" And they [ __ ] freaked out. Like, that's not possible. We can't maintain quality, staffing. So, I do think our problem that's stopping us is a trained bench of talent that can service this opportunity we have right now on the on the table because it's like the only niche that uh we have expertise for this clientele.

0:52So. >> Okay. So, that sounds right. >> Well, I think you guys are From what I hear from your team, you guys are dealing with the same thing right now. Like, how do you just operationalize What have you found be successful to start to >> On the recruiting side? >> Recruiting and making sure you have talent to fulfill demand, high demand. >> So, I mean, it's a manpower constraint, right? Um and so, we get really aggressive on recruiting.

1:18So, uh I think I think what happened So, there's two things that I say like what what hold people back from recruiting issues. Um Miss Met Spa Doctor, so this applies to you. Um but this also uh um I I spoke to a dentist uh a month ago and he was doing around 20-ish million and he had 4 million, I think, in profit that he was making and he was saying the same issue of like, "I need to get really specialized dentists, blah blah blah blah."

1:46And so, I was like, "Okay, well, I'll walk you through this math. So, how much does one of your specialized talent make you per year in gross profit?" >> Um you're talking like maybe like a director of social, how many clients they can bring on? >> Yeah. >> Um I would say Mhm. 1.25 million. >> Okay, so they make you 1.25 million. >> Yeah. >> And that's gross profit? >> Yeah.

2:11>> Gross Okay, great. So 1.25 million in gross profit. Okay, and um what are you willing to spend to make an extra 1.25 million in gross profit per year? >> Uh a lot. Um yeah, that that role costs about 200 grand. >> That role will cost 200 grand. >> Yeah. >> Okay, cool. That's fine. >> And it takes a pot of people that person has to oversee for daily management, obviously, but >> So there's a pot underneath of them as well. Okay, well how much how much does that total pot cost?

2:40>> Uh I would probably say roughly 350. >> Okay, so like 550 in total, but that would be added in. So the 550's already taken out of this, correct? For gross profit? >> Yes. >> Okay. Um so then the question is just of the 1.25, what are you willing to pay to attract the $200,000 per year person? It's an open question.

3:04>> Uh well, we want I want to do 20% profit. If I'd be Yeah, 700 grand or something. >> [snorts] >> What are you willing to pay? So if I said for $700,000 I can find you this person, you'd pay me? >> No. >> Your service. >> I just think but to your point, it's like find out what a what a pot of people can take on in terms of client revenue and >> I'll finish this and I think it'll it'll it'll get So right now what this is is the lifetime gross profit Sorry, annual gross profit, sorry.

3:32Uh gross profit per employee. And then instead of uh CAC, like LTGB to CAC, which we guys everybody should know this by now. It's cost of acquiring talent. So just like you have LTV to CAC on the front end, you have lifetime gross profit per employee to cost of acquiring talent on the back end. >> Got it. >> And so, realistically, let's say that this person Let's say your average tenure for this role is 4 years,

3:57>> Mhm. >> right? So, that would be $5 million is what this person's going to bring in over lifetime. And if you really think about it, this 1.25, let's say you guys trade it 8 million, sorry, 8x or something like that. So, that adds $10 million in enterprise value to the business tax-free >> Mhm. >> by just adding this person. And so, it's what am I willing to spend to do that? So, for me, I'd be like, "Cool, I'm willing to spend 125k one time to add an extra $1.25 million per year all day."

4:27Like all day. >> We just haven't done the math to make it It's not That's what we do. No [ __ ] Yeah. >> Yeah. Um like I had to We had a portfolio company that we had to scale up the sales team. Uh it was a long story, but we had an outsourced sales team cuz it blew up really fast. And so, we we had to build a 50-person sales team uh in 90 days. >> Mhm. >> And so, um like how do we do it? Well, we hired 80 guys.

4:52We kept 50. And we had 15 headhunting firms all spun up at the same time uh bringing us candidates plus our internal our internal assets. And that's how you hire 80 sales guys in 12 weeks. And so, to the same degree, it's like, "Okay, well, how much do I have to pay to a blue-chip recruiting firm to go get these two people?" >> Yep. >> If you're paying them 200, typically it's like 60. >> Mhm.

5:16>> So, I'm like, "Am I going to pay 60 to make 1 1.25?" I would make that investment. >> Yep. >> Right. And so, as long as you're profitable, which I'm assuming you are, >> Mhm. >> that to loop back to close the loop on the dentist story I was telling earlier, um he was like, "Am I caught You know, I did this math with him, and he made $700,000 in gross profit per per dentist. And the recruiting would be And he needed three dentists to get to the the goal that he had for like 2 years or something. And I was like, "Okay.

5:44And that recruiting cost would be like $100,000 per. So, it's $300,000 in total. I was like, "Okay, so are you willing to make $3.7 million this year instead of four so you can get your three-year goal to happen like in the next 6 months?" >> Yeah. >> He's like, "Well." I was like, "Yeah, right?" And so, sometimes it's like we just haven't like actually taken in the cost of what it what it cost to do something like this. And specialized roles just kind of for everyone, the more specialized it is, the more I'm like, "Okay." For somebody else that built their entire business around finding it, I don't want to like If you think about every role as a new customer that you have to build an acquisition process for, I will build out like infrastructure and true processes around repeated roles.

6:20So, if I'm built You know, if you have a big sales team, if you have a big customer service team, big editing team, if you're media, like whatever your repeated roles are, um you're cleaner, you have Obviously, cleaners are going to be your your thing that you have to go after, then having a strong recruiting like process end to end makes sense. If you're looking for one role one time, I just pay the money. >> Yeah. >> Well, >> Appreciate it, man. >> Thank you. You bet. >> Thank you. >> 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 million 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 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.