Transcript
00:00:00hear ye hear ye are we live we live in this town all right what's going everybody happy
00:00:10happy Monday happy start of the week happy getting getting that money Monday if you will
00:00:15before we dive into hotlines and Q&A's which I'm this is this kicks off the beginning of
00:00:22a a rough 30-day experiment that we're doing to experiment on two two major things so number one
00:00:30is something that we're trying which is like is there a way that we can do something where we do
00:00:35live clipping which is rather than have an entire like you know ingestion process and finding the
00:00:42moments process and then editing and then post-production and QA and then posting which
00:00:46is kind of like how how things have gone is there a way that we can go from live to clipped content
00:00:53in minutes and so this is a one way of me providing them the raw material to do that and so that's
00:01:01number one and number two this started because Layla asked me a few weeks back she was like you
00:01:07know what are the things you enjoy most and I was like I really do enjoy doing these kind of hotlines
00:01:12these Q&A's because I feel like even if even if none of the content ever performs as content I know
00:01:19that the the actual content performed for that individual and so I think for whatever reason it
00:01:24tickles my you know do do good things help people out muscle so that being said I want to start with
00:01:34something that's been top of mind for me which is how much change do you change when you are at different
00:01:46points in business and I think one of the hardest things that I've had to deal with
00:01:48is I tend to want to kill a mosquito with a cannon right I want to overkill if something makes me
00:01:59uncomfortable in the business I hate it so much that I want to change everything and I would say
00:02:05it's probably one of my bigger weaknesses as an entrepreneur and I would say it's probably a cousin
00:02:09or you know step sibling to lack of focus that one being the biggest and I would say this is probably
00:02:14like the number two sin that I that I suffer the most from and so I've been thinking a lot about this
00:02:19because there's a there's a time where you need to be willing to disassemble what you have in order to
00:02:26build what you want and so there's also times where you should not really mess very much with what
00:02:32you're doing and very very moderately tweak if you feel quote uncomfortable with your current situation
00:02:37and I was like what what delineates those two things because I see people every week who are
00:02:42who are in one of those two buckets it's like they have been stuck in their particular business at you
00:02:48know a million bucks three million bucks ten million bucks whatever it is for a while and they're at a
00:02:53point where they can't really see how they're going to scale it and so when you're in that bucket and
00:02:58this gets particularly difficult once you you know have people depend on you you have a lifestyle you make
00:03:06a certain amount of money that you might actually have to take your business apart and rebuild it in a
00:03:11different way and I was I was talking about this with a friend of mine where I said it it is harder to
00:03:18build a billion dollar coaching business than it is to build a billion dollar insurance company or a
00:03:26billion dollar bank or software company and how would I know that there is no billion dollar coaching
00:03:32business and there are tons of people who want one and so when I use when I look at that it's like okay so
00:03:37there's something characteristic about this model that makes it very very very very difficult to scale
00:03:44and so when I bring that up I bring that up to say there's in any industry anybody who's listening or
00:03:50watching this if you think about your business and then think about the maximum extreme you should look
00:03:54at what the highest version of that business actually looks like and if there isn't one there's probably a
00:03:59reason for it so either you're going to be an innovator and you're going to be spacex and elon
00:04:03or there's something very very difficult about this business as it scales right and so if you're in
00:04:09that situation where you're like I want to be a billionaire multi-billionaire trillion or whatever
00:04:13your magic number is right um and then you look at your existing vehicle and you're like there's
00:04:18literally no one and this vehicle has existed for a long time that has achieved this thing that I want
00:04:23then you have to be willing to basically blow it up and that sounds like a very extreme thing but
00:04:28I I know I know so many entrepreneurs were like they got to they got to kind of like the highest level
00:04:34a local maximum right they got to the small peak on a much bigger mountain range of their potential
00:04:40and they had to be willing to say I'm going to lose my status to myself mostly because no one really
00:04:47cares right where I define myself worth by my revenue or my profit or my cash flow and of course you
00:04:51shouldn't do that but you still kind of do uh but and so and they have to be able to take this giant
00:04:58step back and then look at all the resources skills and money that they have and think okay what would
00:05:03be the best use of all of these raw assets and how could I deploy them away that would get me the highest
00:05:07return um and I'd say on that extreme you don't want to blow everything up but there is a point where
00:05:14if you have been stagnated number one so here's my like litmus test for this um because I was thinking
00:05:19about this because I think it's it's like this very interesting dichotomy between two very extreme
00:05:23uh sets of choices so number one is if you've been stagnant and there is no version of the business
00:05:31that you have that is significantly larger or has accomplished the goals that you have
00:05:35then that might be a condition where you might or should be willing to consider dramatically changing
00:05:41the business and we sold uh one of our companies to uh a different group and they basically were unwilling
00:05:53to take risks proportional to what the business required and so that I just had a conversation
00:05:59this morning about that particular thing so it's like I've had a number of small things that have
00:06:02happened in the last you know call it seven days that made this top of mind but then on the opposite end
00:06:07of that so yesterday morning um I met with a couple leaders in the company and we were talking about
00:06:15one kind of issue that we have you know within the business and I proposed what I would consider to
00:06:20be a more radical change um because I tend to I have a tendency to want to just burn everything to
00:06:27the ground and like start over um but that extreme is is not warranted when you are doing well
00:06:34right so this is this is my big point here if you're doing well and there are bigger versions
00:06:39of the business that you have and things are trending up into the right that is usually not
00:06:45the point to take out your cannon right that is not the point where you're taking out your chainsaw
00:06:50you should be having your your sandpaper and maybe a little chisel you know to just like make fine
00:06:55details in the business more than take a jackhammer to the thing and then build it all from the ground up
00:07:00and so that is so I don't know which situation you're in but in either of those situations
00:07:07you need to have a different lens because I see people stuck at both we're like they can't get
00:07:12past certain level because they keep reinventing the business over and over and over again and so their
00:07:16their team is their team and themselves and their customers are constantly in this in this reactivity
00:07:22in this whiplash of the changes that they consistently are making because they forget that most people don't
00:07:28understand all the plans in their head and all that other people understand is the few words they've
00:07:32communicated about it which most people have no context on and they didn't consume all the other
00:07:35stuff that got you this conclusion right uh and then uh on the other hand the people who uh need to take
00:07:43more change um and typically this comes in the form of being willing to sacrifice their lifestyle
00:07:48for the short term uh in order to accomplish their larger goals right like um alex becker who was at my uh
00:07:53at my um at my at my money models launch uh you know he had a he had a very large kind of information business
00:08:01and then he basically shut it all down and started high roast and then high roast became a much more
00:08:05valuable business and bigger uh sam right uh sam ovens from school had consulting.com uh and then he shut it
00:08:13down when it was making i don't know three million bucks a year and i think he was working like a day a week on it
00:08:19and think about how crazy that is like even the day a week was too much in terms of the lack of focus and
00:08:26distraction it was taking away from school and only when he shut it down did school really take off
00:08:33and so there there's something very important on both sides of these things which is like
00:08:37if no one has achieved what you want and you've been plateaued for a significant amount of time
00:08:42it might be worth taking a jackhammer to the thing and being willing to take two steps back
00:08:46from an ego perspective in order to build the thing that actually has the potential to become
00:08:49what you want on the other hand if you're winning it's the opposite set of skills that you have
00:08:54and so this is one of those very interesting things from auction or entrepreneurship perspective which is
00:08:59the right tool for the job like you need to have a jackhammer sometimes you need to have sandpaper
00:09:04sometimes you need to have your chisel out but what you want to make sure you're doing is you're not
00:09:07chopping a tree down with sandpaper and that you're not trying to uh uh jackhammer uh to do a final
00:09:14final details on the mona lisa all right and so uh i'll set that as my my monday morning intention
00:09:20for you guys in terms of the degrees of change uh if you're winning change very little if you're losing
00:09:26you might want to consider changing a lot and losing can can can mean different things to different
00:09:31people depending on your goals all right uh so with that i feel like uh i feel good i feel good i have
00:09:40one more i'll probably maybe i'll go deep in after after a few calls i'll do a little a little a little
00:09:44risky but uh what are we who we got who we got first hey alex what's up em let's rock yeah cool uh yeah
00:09:56my name is uh from netherlands uh we sell uh house plant soil uh to plant lovers um this year we did about
00:10:05six to seven million uh in revenue at about five percent uh profit okay i would like to get to uh
00:10:11dirty at uh twenty percent profit um and what's stopping me is kind of like a split focus between
00:10:18uh direct to consumer and b2b retail uh so from the scaling workshop and the acq ai i kind of have
00:10:25concluded we should shift a focus to b2b but my skill set is fully in like direct to consumer and it also
00:10:32grows uh pretty quick uh we never put any effort on b2b and we got like a hundred stores basically by
00:10:38accident and it just kind of came in yeah inbox uh but it feels like this kind of unknown thing to me
00:10:44and risky to like bet the whole uh farm up yeah um seven percent is b2b uh of our revenue and um
00:10:53yeah why this matters is that like uh it's my first business started it uh five years ago from a
00:10:57bedroom and basically lost money for the first four years uh about 700 in total uh i'm 26 so i really
00:11:04like want this to work right um it'll be like the first profitable year so i don't want to jinx it by
00:11:10yeah taking my uh focus out okay uh yeah what do you want to so you want to you want to get to 30
00:11:16with 20 margins is there any soil business that you've seen that has 20 margins in your space not that i'm
00:11:24aware of but we're quite like high price so it should work hmm it's interesting that you're when you're
00:11:31selling direct consumer that you don't have the margin is like what are your gross margins
00:11:37direct to consumer about 55 percent okay and then what's your repurchase rate do you have subscribers
Community Posts
No posts yet. Be the first to write about this video!
Write about this video