WEBVTT
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I took this business, scaled it up, had not one,
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not two, but three different companies on the INC Five
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hundred and five thousand list in one year. From the
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outside looking in, everybody's telling me how great I am.
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You know, I'm on top of the world. I've got
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the Midas touch. But I'm miserable and I'm burnt out.
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I'm missing family dinners and I'm missing soccer games, and
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I'm leaving for the office before anybody's awake, and I'm
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getting home after everybody's asleep. You know, I've got my wife,
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I've got four kids. Nobody knows who I am. They
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I don't ever get to see them. And it wasn't
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until I came home one night and there's my wife
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sitting up in bed and she's you know, of now
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fifteen plus years and she says, you know, look, I
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know who I married. You can keep doing what you're doing,
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but you can't pretend like you're doing it for us anymore.
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That for me, was the breaking point when I realized, Okay,
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I can have all the ego in the world, but
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this ain't working.
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Welcome to the Radical Responsibility Podcast. I'm doctor fleet Mal
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and I'm excited to guide you on a journey of
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authentic transformation. In each episode, I'll bring you insights from
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leading experts to explore trauma recovery, mindfulness practices, positive psychology,
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and innovative breakthroughs in health, wellness, and life optimization. This
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is a space for real conversations that inspire meaningful change,
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helping you find alignment with the person you are always
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meant to be. Let's get started. What if transformation isn't
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just about thinking differently but feeling differently. Science shows us
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that true change happens when we align not just our minds,
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but also the neural networks in our hearts and guts.
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This heart mind connection is the key to deeper healing, resilience,
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and expanded awareness. That's why I created the Heart Mind
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All access, membership and community, a space designed to help
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you rewire your nervous system, cultivate heart intelligence, and live
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with greater clarity and purpose. With over one thousand hours
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of transformational teachings specifically curated to meet your needs, You'll
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learn from worldn no meditation teachers, neuroscientists, and experts in neuroplasticity,
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all sharing powerful tools to help you shift your mindset
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and heartset, regulate your emotions and unlock your full potential.
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You'll also gain unlimited access to every summit and course
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we've ever produced, a Treasure Trouble Wisdom worth over ten
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thousand dollars in growing, plus live gatherings and an inspiring
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global community to support your journey. If you're ready to
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step into a more heart centered, connected and conscious life,
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I invite you to join us. Clip the link to
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learn more and start your journey today. What does it
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really mean to scale the business, not just grow it,
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but truly scale it, and what does it take to
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build something that thrives without us at the center. In
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this conversation with Ryan Dice, and innovator in digital marketing
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and systems thinking, we go beyond the buzzwords to explore
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what sustainable scaling really looks like. Ryan shares his journey
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from college side hustle to running an influential portfolio of businesses,
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and he breaks down the core shifts that every founder
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must make to grow from scrappy entrepreneur to strategic leader.
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We talk about why ego is often the biggest bottleneck
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to delegation, and how to build operating systems that create
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transferable value and the vital difference between making money and
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building a business that lasts. Miam is Doctor Flee Mall
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your co host for the session, and I'm thrilled to
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be here today with none other than Ryan Dice.
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Welcome Ryan, Thanks so much, Rammy Fleet.
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We're so thrilled to have You've been a huge influence
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on our own success at Hartmind Institute. And you know,
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I hate to ask anybody to encapsulate their story at
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a couple of minutes, but I'm going to ask you
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to do it anyway, So you know, just get a
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sense of how you got started, how did you end
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up becoming an entrepreneur and getting into digital marketing, and
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how did that happen, and what's the backstory behind that.
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Yeah, it's really simple. I met a girl. I was
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a freshman in college and I I had no ambitions
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of being an entrepreneur. I had no ambition ambitions of
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doing marketing. I had no idea what I wanted to do.
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I actually thought, I don't know I've ever told you this, Fleet.
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I thought I was going to go into vocacial ministry.
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That's what in my head. I thought I was going
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to go and be a pastor and so but I
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went to college. I met this girl. Within a couple
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of weeks of dating, I knew, like, this is the
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woman I'm probably going to marry. I didn't tell her that,
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by the way, because I knew that was kind of creepy,
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which as a marketing lesson, by the way, just in that,
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but I did. I mean, I was like, whoa, okay,
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And it was the first time in my life that
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I wanted something and I knew I didn't have what
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it took to get it, and specifically, like I knew
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that I wasn't the kind of person who had the
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means to be like an adult who could support another
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human being, And specifically I knew that I didn't have
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enough money to buy an engagement ring. I knew that
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diamonds were expensive, and I was broke. So I decided
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to start this little side hustle selling little ebooks and
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things like that online, truly, just so that I could
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make enough money to buy this woman an engage a ring.
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That was it, and this was my freshman year. I
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didn't tell her that, but I got to work. Well
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fast forward a couple of years, I had made enough
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money to buy the ring I got the ring, I
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got the girl, and that little business eventually ballooned into,
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you know, initially a digital publishing empire, mini empire, if
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you can call it that. And along the way, all
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I did was I talked about publicly what I was
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doing privately. And this was kind of before blogging was
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a thing, you know. I launched my first business in
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nineteen ninety nine, you know, so you got to think
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Google back then was a science Fair project. He didn't
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have a lot of this stuff that we have. There
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was no social media. But I had a little email
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list and I invited people to subscribe to it, and
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every week I would just tell him what I was doing.
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And I did it as much for accountability as anything else.
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And so I kind of got a reputation and I
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gained a following as I guess, being an expert, not
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because I actually knew what the heck I was doing,
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just because I was talking about what I was doing,
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and I was sharing the wins and the losses, the good,
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the bad, and the ugly, and so that was really
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where it all began. So I've always started businesses, I've
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always run businesses, and I've always talked about what the heck,
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it was that I was doing, and that's how Digital
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Marketer came into being, It's how Scalable came into being.
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But I've always had businesses and then I've always had
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businesses that talked about what I was doing in business,
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and so that's kind of how I've operated really for
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the past twenty five plus years.
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Our focus today is scaling, and obviously you could share
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so much about marketing. So your company, Scalable has really
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helped so many companies and so many founders and entrepreneurs
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figure out how to scale their business. You've got something
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that's working, You're probably wearing all the hats. Maybe you're
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a solorepreneur, maybe you have a small team, but basically
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you got a small team of helpers. You're the expert,
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you're doing most of it, you're directing everything, and then
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where do you go from there? So I know you
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have a whole system for scaling, and we're going to
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go through some of those elements. But what kind of
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needs to be in place before someone can even think
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about scaling a business, before it would make sense to
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start thinking about how do I scale my business effectively?
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Yeah, I think we first kind of need to find
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the difference between growth and scale. Right. So growth is
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increasing any particular unit of measurement.
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Right.
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So if you're saying I want to grow my sales, right,
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then that's growth. What we're talking about with scale is
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really talking about increasing the capacity, so the ability for
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growth to occur. And that's important because early on growth
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is all that matters, because your capacity is fundamentally you know, massive,
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like it's limitless compared to what you have, because what
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you have is nothing, right, And most people when they're
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starting their business, they're high performance individuals. If you're watching this,
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you know right now you're a high performance person. You
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can do a lot of stuff. You know, you're a
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bigger container than the average person that's out there. And
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so that's plenty to get launched. That's enough to get started,
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and that's enough to grow. The hard lesson that I
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had to learn is that growth does not equal scale,
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and that scale is not simply growth and then more
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growth and more growth. So, long winded way of answering
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your question, it's realizing the difference. What it takes to
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scale is realizing number one, it's a fundamentally different playbook.
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It requires very different tools, but most importantly, it requires
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a different operating system. So to go basically from zero
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to half a million, really up to about a million
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dollars in revenue, just about anybody can do that. And
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I don't say that to suggest that it's easy, because
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it's not. Lots of people do hard things all the time,
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but just about anybody who's motivated can do that without
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having to go and figure out all the tricks of
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the trade. But going from a million to let's say
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ten million revenue, now you're talking about needing to scale
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beyond yourself. You need to have an operating system that's
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more than what we just refer to as a UoS
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that you operating system, because you're still just one person
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who only has twenty four hours and who probably needs
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to sleep some of those times, and maybe has people
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around you who want to hang out with you some
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So the big thing that you must have if you
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wanted to go from startup to scale up is you
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have to upgrade that operating system. It can't just be
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the UoS. It can't be about you. And it's a
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hard staying in the world fleet because number one, nobody
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told us that we needed to do it. Number two
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nobody gives us a pleabook for how to do it.
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And number three, we kind of have to die a
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little bit to ourselves because we're so used to being
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that person who does everything, so in our success we
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wind up getting humbled. That's I think the hardest thing.
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Of all, absolutely, and with my own company, I've been
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going through that and with your support. Unfortunately, your company
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does provide a playbook for this. And so let's talk
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about the operating system. We're going to talk about three
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core components of scaling here today, and the idea is
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to really get the company to where you have options
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and you know you could exit if you wanted to,
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or can exit from being an operator to a true CEO,
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from a CEO to a board or an investor whatever,
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or you want to sell your company someday. But it's
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getting something that has real value, that's a marketable company.
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And so part of that, I know you talk about
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transferable value and the way you transfer that from just
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yourself being you know you're the owner operator and the
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value is all you. But if you leave, what company
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is there? So it probably doesn't have a lot of
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market value. You build that into the system and you
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start building that operating system. So I wonder if you
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could talk a bit about the concept of transferable value
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and about some of the core elements of building that
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system at it's more than we can cover all of
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it today, but some of the key principles.
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So what it takes to scale scale does require the
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three elements. And three elements are Number one, you have
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to have leverage sales, so not just sales, but leverage sales.
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I think everybody gets that, right, We need to have sales, okay, fine.
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Number two is you need to have to have bankable profit,
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so you have profit that is there to continue to
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fuel the sales. Right. Those are the two that most
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people think about. It's this third one that you brought
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up that nobody thinks about. Most people don't know about,
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and they certainly don't optimize, and that is what's known
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as transferable value. And transferable value comes in two forms.
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The first form of transferable value is transferring the value
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creation process from you as the founder, to other people
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in the organization. In other words, you're not the only
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person who can do all the things. That's the first
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type of transferable by the second type of transferable value
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is transferring the value of the company to somebody else
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in the event of the sale, at least being able
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to do it. But it's that first type of transferable
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value that must occur first. And this is where business
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owners get trapped. It's where we get trapped in our
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own businesses. When our businesses start owning us is when
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we're the only ones who can actually create value in
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the company. Now, this is going to come very often.
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It manifests itself as you're the only person who can
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do the marketing, nobody else does it as well as you,
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or you're the only person who can close the sales,
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or where I see the majority of time is you're
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the only person who can deliver the service you know,
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or who can deliver the product. Nobody else can do
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it as well you know as you can. And what
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we have to be able to do as business owners
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if we truly want to own our business instead of
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having our business own us, we need to have an
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operating system that allows for the value creation process to
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occur without us. So the question that we ask is
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does the money still show up if you don't show up.
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If the answer is no, then you don't own a
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business yourself. You don't know a business, Your business owns you,
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and so that's where the operating system comes into play.
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Let me interject just something there. So I think there's
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two blocks you kind of reference. One of them that
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I know I ran to and a lot of entrepreneurs
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run into, is nobody can do it as well as
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I can, and it's quicker to just do it than
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train somebody to do it right. And those things will
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just block you forever from appropriate delegating, getting smarter people
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on the team, building, the systems, and so forth. So
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I wonder, how do you see, how did you get
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through those blocks? How do you see people get through
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those blocks?
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Yeah, And the brutal thing is in the beginning, it's true, right,
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I mean, so in the beginning, no one can do
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it as well as you can, and it is faster
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just for you to do it. And so that that's
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what makes this so tough, is because everything that is
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the exact right answer early on is the exact wrong answer.
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It's like somebody who's very like, show me the things
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that make you great, and I'll show you the things
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that will ultimately destroy you. And this is true in business.
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So how did I get through it? I mean I
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got through it by frankly nearly imploating, you know, the
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very relationship that was the thing that kicked this off.
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You know, I brought myself and my family to the
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point of you know break. I mean that I took
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this business, scaled it up, had not one, not two,
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but three different companies on the ink five hundred and
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five thousand list in one year. From the outside looking in,
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everybody's telling me how great I am. You know, I'm
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on top of the world. I've got the minus touch.
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But I'm miserable and I'm burnt out. I'm missing family dinners,
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and I'm missing soccer games, and I'm leaving for the
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office before anybody's awake, and I'm getting home after everybody's asleep.
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You know, I've got my wife, I've got four kids.
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Nobody knows who I am. They don't I don't ever
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get to see them. And it wasn't until I came
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home one night and there's my wife sitting up in
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bed and she's, you know, of now fifteen plus years
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and she says, you know, look, I know who I married.
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You can keep doing what you're doing, but you can't
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pretend like you're doing it. For us anymore. That for
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me was the breaking point when I realized, Okay, I
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can have all the ego in the world, but this
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ain't working. And that was when I finally said a
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cap got a figure something else out. And that is
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to answer your question, like, that's honest answer to your question,
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fleet how did I do it? I had to get
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to an absolute breaking point where I, because I'm man,
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I tried for years to do it all myself, and
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I succeeded to a very big point because I'm a
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high capacity, high performance individual. And I'll tell you, the
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better you are at this stuff, the deeper grave you'll
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dig for yourself is the reality. Like, show me somebody
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who's a high performance, high capacity individual, and I'll show
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you somebody who's dug a very deep hole for themselves.
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I don't want people to get to that point. So
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the reason that the Scalable Company exists is to let
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people know you don't have to go there. It's two things.
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One is mindset and the second is tactical. So the
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first thing that I'll tell you is a mindset issue
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is understand that number one, nobody will probably do everything
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as well as you, but lots of people can do
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one thing better than you. That's the first really important
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mindset shift that needs to take place. You're not looking
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for people who can do every thing as well or
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better than you. They're not going to. It's your business,
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you birth this thing. But you gotta know that there
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are absolutely positively people out there who any one little
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thing better than you. They exist, They're out there. We
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just got to find them, especially if we can equipment
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with the right tools. The second mindset shift is there's
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freedom on the other side of that, right, there's freedom
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on the other side of that if we can begin
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handing these things off one at a time, not exiting
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completely from everything, but doing it one at a time.
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That's how the process occurs. So how do we do it,
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like tactically, practically, how do we do it? Let me
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tell you how you don't do it. Oftentimes it's easier
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to know what not to do. So first and foremost,
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it's not about you becoming more productive. So you don't
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need another time management system or another productivity system or
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another you know, timer, planner journal kind of thing. I'm
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not saying there's anything inherently wrong with that, but your
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goal should be to do less not more. Okay. Also,
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we don't just want to hire a bunch of people
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and throw human beings at it. When we do that,
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what we're actually doing is trading menial tasks we're pretty
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good at for a new job, a new role called management,
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which most of us are pretty terrible at. Okay, So
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we don't simply one of their human beings at the problems,
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because what winds up happening is they don't know how
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to do it any better than we do. We don't
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have time to train them how to do it. We
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believe going into it that they're probably not going to
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do it as well as us. We kind of want
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them to fail, if we're being honest, because that validates
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who we are and our identity. And so when they fail,
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we get to swoop in and be the savior. They
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quit or we fire them, and we then begin this
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cycle of like, well, I guess I'm the only one
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who can do it. Don't try to make one magical
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unicorn hire of the integrator who's going to run everything
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for you that doesn't actually work, and don't just try
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to grow your way through it, because that's not going
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to work either. What you got to do is You've
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got to get your business out of your brain. And
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it starts with just taking a step back, getting up
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to thirty thousand feet and asking yourself a really simple question, well,
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two really simple questions. Question number one, how to customers happen?
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It's one of the most basic and yet essential questions
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that every business owner needs to ask. How to customers
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or clients or pays happen? How do you get them?
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Many people all ask a business owner this question and
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they can describe it to me, But can you show
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me when we work with clients, when we acquire a business,
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when we're integrating a business, this is the first thing
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that we do. We literally get sticky notes and we
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go to a y board and we map it out
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in visual flow chart form. Okay, what do you do first? Well,
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we run Facebook ads? Great Facebook ads? What else? We're
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also running Instagram out. Great Instagram day. You all get
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sticky notes. Great, Then what happens and we visualize and
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map out the flow that occurs from the point of
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awareness until somebody buys something. This is not complicated rocket science,
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you know, complex business process mapping stuff. Anybody can do this. Now,
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once we've answered visually the question of how do customers happen?
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Then we answer the second critical question, which is what
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do we do once we've got them? How do we
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fulfill on the promises made during the sales process? And
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we do the same process. We visually map that and fleet.
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I know you know this because you've gone through this
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process with us. But once you visualize those two things,
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you've got a visual process map of what we call
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it growth engine, so the visual process flow of how
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you attract and convert new leads and customers, and a
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visual process map of your fulfillment engine how you fulfill
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post sale and the promise is made. What you've done
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is you've visualized the customer journey. You can now see
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literally how value is created in the business. Then you
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can look at step by step in stage by stage
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and say, okay, which of these sticky notes can I
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start handing off to other people? And the way that
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you do it, the way that you delegate, tactically speaking,
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is one sticky note at the time. And the mistake
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that people make is they try to hand everything off,
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They try to hand off unclear jobs. If you can
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first visualize the value creation process, why your company exists,
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how you add value. And then if you hand off
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the tasks and the roles one or two little sticky
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notes at a time, before long, everybody's doing everything and
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you're just kind of monitoring, you're optimizing. That is the
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first step in creating the operating system of a business.
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And I know you call these sticky notes eventually become
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playbooks somebody owns, and that's the term used in your
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company for SOPs or standard operating procedures. I like the
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term playbook. I think it really gets to the point.
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And I love what you said before about you know,
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one indicator of to the extent that we have transferred
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value from our head and our abilities into the company
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into a system is whether if we don't show up,
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do the sales keep showing up? And I love an
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analogy use about the dancing bear. Like you're the dancing
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bear in your business. If you stop dancing, what happens?
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If you're not dancing on that ball, what happens.
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That's the circus bear, right. The circus bear is big
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and powerful, a little bit scary. But at the end
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of the day, bear stops dancing, Bear doesn't get paid.
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And there's a lot of business owners out there who
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they're big, and they're powerful, and they're respected and even
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a little bit feared. But the second they stop dancing,
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they stop getting paid. And so we don't want that.
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We don't want to be that. We want to own
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our business. We don't want our business to own, and
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so we get the business out of our brain and
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we put it in sticky notes on a whiteboard. Right, ben,
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we do it here, I did this recently, right, if
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people can see this, We do this all the time.
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We think in terms of business process maps. Because yeah,
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then every one of those sticky notes, which of these
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sticky notes are really critical? Great, let's create playbooks of these.
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We're going to assign names to each of those sticky notes.
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In the beginning, every one of the states who does this?
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One me? Okay, I don't want it to be me
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on every one of these. So what's the person called
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who does some of these things? And this is how
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you begin hiring one sticky note at a time. How
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do I know these things are working? What are the
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metrics that I would need to track to know this
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is working? This how we begin to build scorecards. Right,
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and now, when we're meeting with our team, we're talking
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about the metrics on the scorecard. That's how we can
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begin optimizing the flow. And so this is how we
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build operating systems within businesses. But it starts with just
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the simplest question in the world. How do we add
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value to the marketplace? And that's with how do we
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get customers? How do they happen? How do we serve
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them once we have them?
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So understanding these growth value engines and then the scorecards
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that can really track the metrics to see how you're
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succeeding with those all contributes to the next thing. We'd
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like to talk about. Leverage sales or recurring revenue and
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Lupilier recurring revenue they think of subscription membership programs or
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as saass and that can be one kind of recurring revenue.
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But also whatever reasons you had, if you know that
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you just keep doing x, you're going to get x
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amount of sales, right because you've got repeatable processes that
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systematize you keep doing it. I mean, may be market
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changes you got to adjust to, but in general, you've
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got a business you keep run, the sales are going
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to show up, right. So I wonder if you could
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talk a little bit about how people shift from just
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going after elephants all the time. I go, I do
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this big problem brought but oh great, now what's next?
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And I do another thing to mix of mine. Now
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what's next to really building a system that's creating that
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revenue even if you step off the circus ball for
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a moment.
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One of the most terrifying days you know in the
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month for business owners the first of the month, because
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for most business owners, they start back over it again
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in zero. And so, yes, there are certain tactical offer
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based strategies, whether it's subscription revenue and membership and things
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like that, that we can implement that may or may
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not make sense for your business. But one of the
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first things that every business needs to do is simply
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again to visualize, well, how do we get sales in
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the first place. And so one of the reasons that
479
00:22:22.559 --> 00:22:25.559
businesses have to start over every month, and that they
480
00:22:25.559 --> 00:22:28.440
practice these random acts of marketing and they're always flailing
481
00:22:28.480 --> 00:22:30.599
around and trying something new and doing something new all
482
00:22:30.640 --> 00:22:32.319
the time is because at the end of the day,
483
00:22:32.359 --> 00:22:34.480
they have no idea how they get their customers in
484
00:22:34.480 --> 00:22:36.839
the first place. They seem to just magically show up
485
00:22:36.880 --> 00:22:40.160
from thin air. And when we pin them down and
486
00:22:40.200 --> 00:22:44.000
we ask them, Okay, how do customers happen? Ninety nine
487
00:22:44.000 --> 00:22:45.519
times out of one hundred, if it's a business of
488
00:22:45.559 --> 00:22:48.599
any skill at all, they can tell me. And when
489
00:22:48.640 --> 00:22:50.839
we lay it out, when it gets visualized in one
490
00:22:50.839 --> 00:22:53.880
of those growth enders, they go, oh, that's it. And
491
00:22:53.960 --> 00:22:56.680
there is surprised to see it, as anybody is. They
492
00:22:56.759 --> 00:22:59.680
just never took the time to do it. So if
493
00:22:59.680 --> 00:23:01.519
you want that leverage sales, the first thing that you
494
00:23:01.559 --> 00:23:04.279
need to do is just to document how sales happen.
495
00:23:04.680 --> 00:23:08.440
And in just about every business that we're in, it's one, two,
496
00:23:08.680 --> 00:23:12.640
maybe three different ways. In general, it's not dozens, right,
497
00:23:12.720 --> 00:23:15.079
it might be five or six and a really big company,
498
00:23:15.319 --> 00:23:19.960
but for most businesses, there's gonna be two, three, four, five,
499
00:23:20.079 --> 00:23:24.400
six ways that you generate new customers, clients, patients. That's
500
00:23:24.440 --> 00:23:27.440
just it. And if you can visualize that, and then
501
00:23:27.480 --> 00:23:29.920
you can do the next step, which is to measure it.
502
00:23:29.960 --> 00:23:33.319
So now we're gonna build scorecards that measure each and
503
00:23:33.359 --> 00:23:35.960
every step in stage in the process. Now we're gonna
504
00:23:36.000 --> 00:23:39.240
look at those scorecards. We're gonna have goals for each
505
00:23:39.279 --> 00:23:41.480
one of those metrics, or say are we on track
506
00:23:41.960 --> 00:23:45.480
or are we behind? And our scorecards are really simple red, yellow, green.
507
00:23:45.680 --> 00:23:49.559
If we're on track or ahead. It's green. If we're
508
00:23:49.599 --> 00:23:52.240
behind but we got a plan to catch up, it's yellow.
509
00:23:52.680 --> 00:23:54.480
If we're behind. If we don't have a plan to
510
00:23:54.519 --> 00:23:57.000
catch up, it's red. And so my job as a
511
00:23:57.079 --> 00:24:00.000
leader becomes very simple. Help my team execute the price
512
00:24:00.000 --> 00:24:02.440
projects to turn red metrics yellow and yellow metrics screen.
513
00:24:02.839 --> 00:24:05.480
As long as you're always turning red metrics yellow and
514
00:24:05.559 --> 00:24:08.640
yellow metrics screen and executing only those projects, this is
515
00:24:08.640 --> 00:24:12.640
how we avoid shiny object syndrome. This how we stay focused,
516
00:24:13.119 --> 00:24:16.240
and this is how leverage sales begins to occur right,
517
00:24:16.519 --> 00:24:18.160
And this is how we make sure that we're not
518
00:24:18.279 --> 00:24:21.279
starting over at zero every month, because we know that
519
00:24:21.359 --> 00:24:24.359
this works if we just execute this. We've got a
520
00:24:24.400 --> 00:24:26.240
process in place, let's just do this. We know it's
521
00:24:26.240 --> 00:24:27.839
going to work, we know it's going to be predictable,
522
00:24:28.000 --> 00:24:29.680
and we know it's only going to get better and
523
00:24:29.680 --> 00:24:32.559
our efforts are going to compound. We're not reinventing the
524
00:24:32.559 --> 00:24:35.920
wheel every single month. But it starts again with the documentation,
525
00:24:36.079 --> 00:24:39.759
the visualization, then with the tracking, then with the optimization
526
00:24:39.960 --> 00:24:42.200
based on what are the metrics that are red, what
527
00:24:42.200 --> 00:24:44.000
are the metrics that are yellow? And it is that
528
00:24:44.039 --> 00:24:47.920
a continued repetition of it gets the flywheel spinning. That's
529
00:24:47.960 --> 00:24:51.079
what makes this process go. And if you'll just implement that,
530
00:24:51.559 --> 00:24:55.400
tactics can come and go, but that process of optimization
531
00:24:55.559 --> 00:24:58.039
will always work. It'll always works no matter what business
532
00:24:58.039 --> 00:25:00.880
you're in. It'll always work no matter the tactics that
533
00:25:00.920 --> 00:25:02.119
you're seeking to execute.
534
00:25:02.440 --> 00:25:05.519
It makes management so much easier because it takes all
535
00:25:05.559 --> 00:25:08.039
the vagueness and ambiguity out. Employee wants to know how
536
00:25:08.039 --> 00:25:10.039
are they doing. We'll look at your scorecard. Right, the
537
00:25:10.079 --> 00:25:12.160
whole thing has moved red, the yellow of the green. Right,
538
00:25:12.200 --> 00:25:14.240
it's right there in black and white. And so you
539
00:25:14.279 --> 00:25:17.440
get a metric driven business. It's so much easier to manage, right,
540
00:25:17.480 --> 00:25:21.079
because otherwise there's all this perception and opinion and you know,
541
00:25:21.279 --> 00:25:23.559
so getting it into these metrics. I've done a lot
542
00:25:23.559 --> 00:25:26.319
of sales and management consulting in my past, and I
543
00:25:26.400 --> 00:25:29.200
worked with a lot of organizations that we're still doing
544
00:25:29.240 --> 00:25:31.920
belly to belly sales that they didn't even have a CRM,
545
00:25:32.039 --> 00:25:35.599
that you know, and convincing them to get everything into
546
00:25:35.640 --> 00:25:38.599
a CRM, have a visible sales funnel and get to
547
00:25:38.640 --> 00:25:41.839
where you know x lead generating behaviors will create x
548
00:25:41.920 --> 00:25:45.359
number of leads, X sales behaviors will create x number
549
00:25:45.440 --> 00:25:48.279
of prospects and then closures and being able to manage
550
00:25:48.319 --> 00:25:50.480
that whole thing and then you know, instead of managing
551
00:25:50.519 --> 00:25:53.200
a salesforce of twenty people as a sales manager, managing
552
00:25:53.200 --> 00:25:56.200
a funnel, right, and it's all visible and it's all metrics.
553
00:25:56.240 --> 00:25:57.079
It makes it so much.
554
00:25:57.039 --> 00:26:01.240
Easier, and it removes it eliminates the power politics of it. Yeah,
555
00:26:01.279 --> 00:26:03.839
like you said, somebody can't say, oh, you're being mean
556
00:26:03.920 --> 00:26:06.440
to me. They must not like me. It's like, well, no,
557
00:26:06.960 --> 00:26:09.519
your metrics are red, and I love you to death.
558
00:26:09.559 --> 00:26:11.000
But like, if you're going to sit in this seat,
559
00:26:11.000 --> 00:26:12.519
if you're going to occupy this role, if you're going
560
00:26:12.559 --> 00:26:15.480
to keep cashing this check, it requires that you be
561
00:26:15.519 --> 00:26:19.079
able to turn bees metrics yellow and then ultimately green.
562
00:26:19.319 --> 00:26:21.160
And if you can't do that, it doesn't mean that
563
00:26:21.160 --> 00:26:22.519
we don't like you, and it doesn't mean you're not
564
00:26:22.519 --> 00:26:25.319
a wonderful person. It just means you can't occupy this seat,
565
00:26:25.440 --> 00:26:29.119
you can't stay in this role. Similarly, what projects should
566
00:26:29.160 --> 00:26:31.759
we do? Why do you always pick tenis project instead
567
00:26:31.759 --> 00:26:35.680
of mine. Well, because the projects that she suggested turn
568
00:26:35.720 --> 00:26:37.759
our red metrics yellow and the yellow metrics ren The
569
00:26:37.799 --> 00:26:40.279
projects you suggested have nothing to do with any of
570
00:26:40.319 --> 00:26:43.440
them red and yellow metrics on the scorecard. Right. This,
571
00:26:43.519 --> 00:26:47.440
by the way, will also protect teams from the bosses.
572
00:26:48.000 --> 00:26:50.680
So I'm talking now to all the usan's out there,
573
00:26:51.039 --> 00:26:54.440
So the CEOs, the founders, the leaders, we oftentimes are
574
00:26:54.480 --> 00:26:57.720
the worst offenders at throwing shiny objects at our people,
575
00:26:58.119 --> 00:27:00.480
at going to an event, at coming to something frankly
576
00:27:00.559 --> 00:27:03.759
like this and seeing getting all these like amazingly great
577
00:27:03.799 --> 00:27:06.319
ideas and taking all of these notes. And I'm begging
578
00:27:06.400 --> 00:27:08.839
you before you go back and you tell your people
579
00:27:08.839 --> 00:27:11.880
to go and implement this stuff, I ask you what
580
00:27:12.759 --> 00:27:15.759
metrics are red and yellow that what you're implementing are
581
00:27:15.759 --> 00:27:17.680
going to turn green? And if you don't know the
582
00:27:17.720 --> 00:27:19.359
answer to that, we got to get these other things
583
00:27:19.440 --> 00:27:22.720
in place first before we jump into the tactics. Okay,
584
00:27:23.160 --> 00:27:25.240
that's we always want to make sure that we have
585
00:27:25.759 --> 00:27:28.960
this flywheel to plug the tactics into, not that we're
586
00:27:28.960 --> 00:27:32.079
just practicing random acts of marketing and chasing shiny objects.
587
00:27:32.079 --> 00:27:34.519
So it protects you from the politics. It protects you
588
00:27:34.559 --> 00:27:37.559
from the shiny objects, and it just gets you operating
589
00:27:37.599 --> 00:27:39.880
more strategically and objectively.
590
00:27:40.079 --> 00:27:42.880
I would just ask audience to just reflect for a moment.
591
00:27:43.000 --> 00:27:44.599
And you know, God, look at Mira.
592
00:27:44.720 --> 00:27:47.559
How many of us are practicing random acts of marketing
593
00:27:47.559 --> 00:27:50.400
and chasing shiny objects? Right? I think a lot of us.
594
00:27:50.319 --> 00:27:52.880
Do that until we don't. Right, So only all of us,
595
00:27:52.920 --> 00:27:56.519
by the way, all because again, all your high performance individuals,
596
00:27:56.559 --> 00:28:00.400
we see opportunity everywhere. It's what makes us great. We
597
00:28:00.480 --> 00:28:03.599
need sometimes to be protected from ourselves, and so these
598
00:28:03.640 --> 00:28:05.200
processes are going to do that as well.
599
00:28:05.440 --> 00:28:08.559
So let's talk about the third dimension of creating a
600
00:28:08.599 --> 00:28:13.079
really scalable, marketable, valuable company whether we want exit or not,
601
00:28:13.400 --> 00:28:17.200
but bankable profit. So a lot of entrepreneurs, especially early on,
602
00:28:17.240 --> 00:28:20.440
they forget about paying themselves, or we forget about paying ourselves.
603
00:28:20.440 --> 00:28:22.279
Maybe we're just running the business out of our pocket.
604
00:28:22.319 --> 00:28:23.480
And at the end of the day, I got some
605
00:28:23.519 --> 00:28:25.599
money in my pocket. I'm okay, I paid all my bills,
606
00:28:25.599 --> 00:28:27.720
I made payroll this month, and I still got some
607
00:28:27.759 --> 00:28:30.240
money in my pocket. You know, that's not going to
608
00:28:30.279 --> 00:28:33.279
create a sustainable or marketable company. So what do we
609
00:28:33.359 --> 00:28:38.319
mean by really designing bankable profit into our business and
610
00:28:38.400 --> 00:28:40.839
into the whole way we construct and operate our business.
611
00:28:41.160 --> 00:28:43.160
Now, I continue to believe that the ultimate sign of
612
00:28:43.160 --> 00:28:47.079
a healthy business is not revenue, it's not valuation, it's
613
00:28:47.119 --> 00:28:52.119
not NPS. It is that company's ability to distribute large,
614
00:28:52.400 --> 00:28:55.000
fat chunks of cash. And people are going to fight
615
00:28:55.160 --> 00:28:56.640
me on this, and they're going to say no, no,
616
00:28:56.680 --> 00:28:58.440
It comes down to are you achieving your mission and
617
00:28:58.480 --> 00:29:03.920
things like that. There, effectiveness as a leader is measured
618
00:29:04.400 --> 00:29:08.240
in free cash flow, period because it is the measurement
619
00:29:08.440 --> 00:29:12.319
of number one inflows, So are people actually paying for
620
00:29:12.359 --> 00:29:16.440
the work that you're doing, while also simultaneously measuring your
621
00:29:16.480 --> 00:29:19.640
ability to effectively allocate and be a good steward of
622
00:29:19.680 --> 00:29:22.680
the resources that you've been given. Right, So, you have
623
00:29:22.799 --> 00:29:25.759
to create enough value in the marketplace such that people
624
00:29:25.799 --> 00:29:29.880
want to give you of their hard earned resources, and
625
00:29:29.920 --> 00:29:31.799
then now that you have them, you need to steward
626
00:29:31.839 --> 00:29:36.240
them effectively. And the outcome of that is there's profit leftover. Now,
627
00:29:36.279 --> 00:29:38.359
what you choose to do with that profit is up
628
00:29:38.400 --> 00:29:41.920
to you. But I'm simply saying that if you don't
629
00:29:41.920 --> 00:29:44.119
have anything to distribute at the end of the day,
630
00:29:44.160 --> 00:29:46.559
it either means that nobody's giving you money or you're
631
00:29:46.599 --> 00:29:48.599
not a very particularly great steward of the money that
632
00:29:48.640 --> 00:29:52.759
you're receiving. So bankable profit is essential. Now, there's seasons
633
00:29:52.759 --> 00:29:54.160
in the business where we're going to have less and
634
00:29:54.240 --> 00:29:56.720
seasons where we're going to have more. I get that,
635
00:29:57.039 --> 00:30:01.160
But the goal should be bankable profit distri beatable cash.
636
00:30:01.480 --> 00:30:03.799
So how do we get there? You said it, I
637
00:30:03.799 --> 00:30:05.319
mean step number one is to make sure that you're
638
00:30:05.359 --> 00:30:08.640
paying yourself. Got a buddy of mine, Mike mccallowits, wrote
639
00:30:08.680 --> 00:30:10.880
a great book on this called Profits First, and that
640
00:30:11.000 --> 00:30:13.480
is essential. I remember when I started my first business.
641
00:30:13.720 --> 00:30:16.160
I mean I didn't know that I was supposed to
642
00:30:16.160 --> 00:30:18.359
pay myself a salary. I kind of thought that paying
643
00:30:18.359 --> 00:30:20.000
yourself a salary is what you did if you were
644
00:30:20.000 --> 00:30:22.039
a wage earner. And I'm not a wage earner. I'm
645
00:30:22.039 --> 00:30:24.200
a business owner. I don't pay myself a salary. I
646
00:30:24.240 --> 00:30:27.880
take distributions. And so practically, what did that mean. Well,
647
00:30:27.880 --> 00:30:29.359
it meant if we had a good month, I took
648
00:30:29.359 --> 00:30:30.799
out too much, and if we had a bad month,
649
00:30:30.839 --> 00:30:33.359
I was freaked out and starving to death. And thankfully
650
00:30:33.440 --> 00:30:36.240
I had a good mentor who said Ryan you're an idiot.
651
00:30:36.720 --> 00:30:39.279
Pay yourself a salary. You know you're doing the work
652
00:30:39.279 --> 00:30:42.119
of a CEO. Pay yourself a salary at a bare minimum,
653
00:30:42.200 --> 00:30:44.079
pay yourself enough to live on so you don't need
654
00:30:44.119 --> 00:30:46.400
to worry about bills. I remember the first salary I
655
00:30:46.440 --> 00:30:48.839
paid myself was ten thousand dollars a month. I remember
656
00:30:48.839 --> 00:30:51.799
thinking at the time I could never imagine needing any
657
00:30:51.839 --> 00:30:54.079
more than ten thousand dollars a month. Well guess what
658
00:30:54.440 --> 00:30:57.480
for kids and embraces and private school and Disney vacations
659
00:30:57.480 --> 00:31:00.680
and soccer camps. Suddenly ten thousand wasn't enough anymore. And
660
00:31:00.920 --> 00:31:02.839
you know, and now on good months, we still had
661
00:31:02.880 --> 00:31:06.559
distributions in addition to the salary, so it is fine.
662
00:31:06.799 --> 00:31:09.319
But I didn't have a process in place for managing
663
00:31:09.359 --> 00:31:11.559
cash flow for doing the distribution. So again I'm back
664
00:31:11.559 --> 00:31:14.440
in the feast and famine mode. So it said like
665
00:31:14.880 --> 00:31:17.279
you should give yourself pay raise. So one of the
666
00:31:17.319 --> 00:31:19.880
first things that you could and should do as a
667
00:31:19.920 --> 00:31:22.319
business owner to make sure that you have bankable profit
668
00:31:22.359 --> 00:31:24.960
is simply to pay yourself first. It's amazing. If you
669
00:31:25.000 --> 00:31:27.079
make that decision, the money has a way of showing up.
670
00:31:27.599 --> 00:31:32.799
Because an optimistic entrepreneur's ability to spend will always outpace
671
00:31:32.839 --> 00:31:36.000
their ability to earn. This again, we see opportunity everywhere.
672
00:31:36.000 --> 00:31:38.559
When we expect all opportunity to have an ROI, oftentimes
673
00:31:38.559 --> 00:31:42.160
we're right, oftentimes we're wrong. The way that you ensure
674
00:31:42.400 --> 00:31:45.119
that there's some leftover for you is you pay yourself first.
675
00:31:45.359 --> 00:31:47.200
So that's the very first thing that you need to do.
676
00:31:47.599 --> 00:31:50.640
Beyond that, the other way that you increase your profitability
677
00:31:50.680 --> 00:31:53.039
is you need either need to lower your expenses or
678
00:31:53.039 --> 00:31:55.440
you need to increase your average client value. That's how
679
00:31:55.480 --> 00:31:57.599
we do that. Most of the time people focus on
680
00:31:57.680 --> 00:32:00.599
lowering of expenses. It obviously has a lot. You can
681
00:32:00.640 --> 00:32:03.359
only ever lower expenses to zero, and you really can't
682
00:32:03.359 --> 00:32:06.440
do that because you need some people going. So we
683
00:32:06.519 --> 00:32:09.000
do some things. I can tell you a very tactical
684
00:32:09.039 --> 00:32:11.039
thing that we do at least once a quarter that
685
00:32:11.079 --> 00:32:14.799
I'll tell everybody to do. We sit out an email
686
00:32:14.920 --> 00:32:16.839
to all of our leaders, anybody in the company who
687
00:32:16.839 --> 00:32:19.559
has a credit card, and the subject line is this
688
00:32:19.839 --> 00:32:23.559
stops now. I'll tell you if you send that subject
689
00:32:23.599 --> 00:32:25.960
line to anybody in your company, they're going to open it,
690
00:32:26.200 --> 00:32:28.839
all right, that's going to freak them out and What
691
00:32:28.920 --> 00:32:31.240
it basically says is, Hey, as it stands right now,
692
00:32:31.279 --> 00:32:33.400
we're currently spending too much money on stuff that we
693
00:32:33.400 --> 00:32:36.200
don't use. And so I want everybody to evaluate their
694
00:32:36.279 --> 00:32:39.000
credit card statement, you know, pull it out, sort it
695
00:32:39.000 --> 00:32:41.359
from highest to lowest. I want you to make a
696
00:32:41.400 --> 00:32:43.519
list of all the things that you know that you
697
00:32:43.519 --> 00:32:45.359
can cut immediately, make a list of the things that
698
00:32:45.400 --> 00:32:46.759
are a question mark, and make a list of the
699
00:32:46.799 --> 00:32:49.000
things that you should keep. Let's have a meeting. I'll
700
00:32:49.000 --> 00:32:51.039
buy the pizza, and let's add up everything that we
701
00:32:51.079 --> 00:32:53.960
can cut. Every time we do this, we save about
702
00:32:54.000 --> 00:32:56.240
five figures a minimum of five figures ten thousand dollars
703
00:32:56.279 --> 00:32:57.599
a month, except when it's more.
704
00:32:57.880 --> 00:32:59.799
Yeah, well that's gotten all the more important because there
705
00:32:59.839 --> 00:33:03.160
are so many sasses and AI tools out there you
706
00:33:03.279 --> 00:33:05.039
don't and a lot of them don't cost that much
707
00:33:05.079 --> 00:33:07.599
by themselves, but they started adding up and you try
708
00:33:07.640 --> 00:33:09.319
it out, didn't work, but you're still paying for it
709
00:33:09.359 --> 00:33:11.200
by the month. And this stuff can really build up
710
00:33:11.200 --> 00:33:12.279
if you don't keep your eye on it.
711
00:33:12.480 --> 00:33:14.680
Yeah, and if you and as your team grows, a
712
00:33:14.680 --> 00:33:17.240
lot of people are making their own decisions, which is good, right.
713
00:33:17.279 --> 00:33:19.200
We want to empower people to make decisions, but very
714
00:33:19.240 --> 00:33:21.119
often they make a decision that made sense in the moment,
715
00:33:21.559 --> 00:33:24.759
and sometimes these people will then leave the company, but
716
00:33:24.880 --> 00:33:26.039
their decisions linger.
717
00:33:26.680 --> 00:33:26.880
Right.
718
00:33:26.920 --> 00:33:29.039
So now we've got like these orphan tools in software
719
00:33:29.039 --> 00:33:30.519
that it was like, I don't even know what that is,
720
00:33:30.960 --> 00:33:33.200
and so yeah, every ninety days you just need to
721
00:33:33.240 --> 00:33:35.359
do a quick audit, check it out, make sure that
722
00:33:35.400 --> 00:33:39.079
it's there. But the most valuable thing that you can
723
00:33:39.119 --> 00:33:41.519
do if you want to increase your bankable profit is
724
00:33:41.599 --> 00:33:45.160
I mean, you can raise your prices, but looking to
725
00:33:45.359 --> 00:33:47.599
add things like how do we add things to the
726
00:33:47.640 --> 00:33:50.200
sales so that we can, you know, improve our average
727
00:33:50.240 --> 00:33:52.559
client value. That's the thing that a lot of people
728
00:33:52.640 --> 00:33:54.880
don't think to do. That's one of the easiest things
729
00:33:54.880 --> 00:33:56.960
that you can do is just get the people you
730
00:33:57.039 --> 00:33:59.440
already got to be worth more money. All of that
731
00:33:59.480 --> 00:34:01.799
just dropts to the bottom line. The other thing that
732
00:34:01.839 --> 00:34:04.240
we look to do, big question we ask is how
733
00:34:04.279 --> 00:34:07.680
do we improve the customer experience? So we'll also do
734
00:34:07.720 --> 00:34:11.519
an audit. I mentioned before the importance of documenting your
735
00:34:11.559 --> 00:34:15.320
fulfillment engine, visualizing what you do with the customer after
736
00:34:15.320 --> 00:34:17.320
they're done. If you will then go back and audit
737
00:34:17.360 --> 00:34:20.000
that and go stage by stage and say, how do
738
00:34:20.039 --> 00:34:22.519
we make sure that this is a seven star experience,
739
00:34:22.519 --> 00:34:24.119
so not just a five star How do we make
740
00:34:24.119 --> 00:34:26.719
sure it's a seven star experience. If you'll go step
741
00:34:26.760 --> 00:34:30.519
by step, stage by stage, you'll always find opportunities to
742
00:34:30.599 --> 00:34:33.880
wow your clients. Why your customers. When you do this,
743
00:34:34.519 --> 00:34:36.800
you decrease the chance that they're going to refunder cancel,
744
00:34:37.239 --> 00:34:39.199
which again that's going to drop straight to the bottom
745
00:34:39.199 --> 00:34:42.559
line and increase bankable profit. And you increase the chance
746
00:34:42.599 --> 00:34:44.840
that they're going to leave a positive review, which is
747
00:34:44.880 --> 00:34:47.800
going to help create more customers and clients. And you
748
00:34:47.880 --> 00:34:50.199
increase the chance that they're going to send you referrals,
749
00:34:50.679 --> 00:34:53.480
which is ultimately the only way that any company is
750
00:34:53.480 --> 00:34:55.639
going to be able to grow at scale. If we
751
00:34:55.840 --> 00:34:58.199
can't get to the point where our customers are creating
752
00:34:58.239 --> 00:35:01.960
more customers for us, and then our businesses will cap out.
753
00:35:02.039 --> 00:35:05.159
We've got to get word of mouth going, because in
754
00:35:05.199 --> 00:35:09.119
any business, the cost of acquisition just gets too dang high,
755
00:35:09.159 --> 00:35:11.679
and we will never get word of mouth unless our
756
00:35:11.679 --> 00:35:16.400
customer experience is remarkable, worthy of remark worthy of talking about,
757
00:35:16.480 --> 00:35:21.119
unless we're producing amazing outcomes. So yes, cut your expenses. Yes,
758
00:35:21.159 --> 00:35:24.599
look at raising your prices, but ultimately, if you want
759
00:35:24.639 --> 00:35:28.920
to create bankable profit, create an amazing customer experience, and
760
00:35:28.960 --> 00:35:31.719
you do that by auditing that fulfillment engine and asking
761
00:35:31.880 --> 00:35:35.639
is this seven stars? And then lastly, but firstly, pay
762
00:35:35.679 --> 00:35:36.280
yourself first.
763
00:35:36.599 --> 00:35:38.280
Yeah. I also want to follow up there on what
764
00:35:38.320 --> 00:35:41.559
you said about increasing average customer value because I think
765
00:35:41.639 --> 00:35:43.360
a lot of us when we you know, we know
766
00:35:43.400 --> 00:35:45.800
we need more revenue, we're trying to control expense to
767
00:35:45.840 --> 00:35:47.719
gets then we know so we I just need more
768
00:35:47.719 --> 00:35:50.960
customers and that gets more and more expensive. And we've
769
00:35:50.960 --> 00:35:53.880
got all the existing customers that could be if we
770
00:35:54.000 --> 00:35:56.679
bring them value, they're going to be willing to transform
771
00:35:56.719 --> 00:35:58.519
more value to us. So I mean that seems to
772
00:35:58.559 --> 00:36:00.599
be the deeper view and the more we action ideal
773
00:36:00.679 --> 00:36:02.199
is I just need more customers, So I'm just going
774
00:36:02.280 --> 00:36:04.119
to go out and do more of X, and that's
775
00:36:04.159 --> 00:36:05.719
not that sustainable in the long run.
776
00:36:06.039 --> 00:36:08.119
Yeah, here's two questions I would have you asked before
777
00:36:08.119 --> 00:36:09.599
you go out there and try to get more customers.
778
00:36:09.920 --> 00:36:12.840
Do this math? Number one, how big would my business
779
00:36:12.880 --> 00:36:15.440
be and how much more profitable would it be if
780
00:36:15.480 --> 00:36:18.400
every customer we had was worth twice as much. Just
781
00:36:18.480 --> 00:36:20.280
run the numbers on that, right, So if you did
782
00:36:20.320 --> 00:36:23.519
a million dollars last year top line, and let's say
783
00:36:23.559 --> 00:36:26.559
you dropped two one hundred thousand of that to the
784
00:36:26.559 --> 00:36:28.559
bottom line, so you had a twenty percent profit margin.
785
00:36:29.079 --> 00:36:30.360
Well if now, all of a sudden, all of your
786
00:36:30.920 --> 00:36:34.000
customers worth twice as much. Now, you did two million dollars,
787
00:36:34.320 --> 00:36:37.199
but let's say you did it on basically the same expenses, right,
788
00:36:37.199 --> 00:36:39.960
They're just were magically worth more. You didn't drop two million,
789
00:36:40.000 --> 00:36:42.440
two hundred thousand, you drop one point two million, right,
790
00:36:42.519 --> 00:36:44.719
I mean, and typically the now maybe the cost of
791
00:36:44.719 --> 00:36:47.639
fulfill is more, but it's going to be marginal. Okay,
792
00:36:47.760 --> 00:36:49.960
So how much bigger would your business be and how
793
00:36:50.000 --> 00:36:52.039
much more cash would you have to distribute to yourself
794
00:36:52.079 --> 00:36:54.760
and other stakeholders if every customer you had was worth
795
00:36:54.760 --> 00:36:57.480
twice as much. Now, not every business can double their
796
00:36:57.519 --> 00:37:00.280
average client value average customer value, but some can and
797
00:37:00.320 --> 00:37:02.719
many can increase of fifty percent. So that's the first
798
00:37:02.760 --> 00:37:05.239
question I'd ask. Second question, I would ask how much
799
00:37:05.280 --> 00:37:08.440
larger would your business be if you had every single
800
00:37:08.519 --> 00:37:10.840
customer that you had ever sold, if every single one
801
00:37:10.840 --> 00:37:12.920
of them were still getting you money today, if nobody
802
00:37:13.000 --> 00:37:16.079
had ever left, nobody had ever refunded, and everyone we're
803
00:37:16.079 --> 00:37:18.679
still giving you money. How much bigger would your business be?
804
00:37:19.239 --> 00:37:21.159
If you will ask those questions and you will run
805
00:37:21.199 --> 00:37:23.480
that math, you will realize, Holy crap, I never need
806
00:37:23.480 --> 00:37:25.840
to get another new customer again. I just need to
807
00:37:25.880 --> 00:37:27.360
get the ones that I got given me more, and
808
00:37:27.400 --> 00:37:28.559
I need to get the ones that I got to
809
00:37:28.599 --> 00:37:31.079
never leave. Focus on those, and you're gonna have massive
810
00:37:31.079 --> 00:37:33.719
bankabill profit because the single biggest expense you will ever
811
00:37:33.840 --> 00:37:36.880
incur as a business owner is the cost of acquiring
812
00:37:36.920 --> 00:37:37.880
another new customer.
813
00:37:38.199 --> 00:37:41.159
This focus on profit altogether, because I think it's easy
814
00:37:41.159 --> 00:37:43.079
to get caught up in revenue. I've been guilty of
815
00:37:43.119 --> 00:37:45.000
this myself, and I love but I think it was
816
00:37:45.079 --> 00:37:47.639
Vern Harnish, in one of his book on the Rockabeller Principles,
817
00:37:47.639 --> 00:37:51.519
said that revenue is just vanity. Revenue numbers are pure vannys.
818
00:37:51.599 --> 00:37:53.519
Profit is at the end of the day, it's profit
819
00:37:53.559 --> 00:37:55.880
that drives the business and grows the business, and that,
820
00:37:56.000 --> 00:37:57.960
you know, gives you a reason to be in business,
821
00:37:58.000 --> 00:37:59.960
right And I love what you said. Are looking at
822
00:38:00.039 --> 00:38:04.159
internally to increase the bottom line rather than constantly thinking
823
00:38:04.199 --> 00:38:06.039
I'm just going to reach out and get more, find
824
00:38:06.079 --> 00:38:08.679
more and more customers, create more of this, you know,
825
00:38:08.880 --> 00:38:10.760
chase all the shiny balls in the world and for
826
00:38:10.800 --> 00:38:13.400
all the spaghetes. Well, instead of looking at my core business,
827
00:38:13.840 --> 00:38:16.360
how can I increase average customer value and how can
828
00:38:16.400 --> 00:38:19.880
I increase customer retention? That's so powerful. So I do
829
00:38:19.960 --> 00:38:22.280
want to ask you a question about the whole world
830
00:38:22.360 --> 00:38:25.000
of digital marketing. Obviously you're one of the leaders in
831
00:38:25.039 --> 00:38:28.039
that field with Digital Marketer, and you originally founded the
832
00:38:28.119 --> 00:38:32.480
Trafficking Convergence Conference, a very successful live conference in it today,
833
00:38:32.920 --> 00:38:35.440
so that world is going through a lot of transformation.
834
00:38:35.719 --> 00:38:38.400
AI is kind of changing everything as we watch and
835
00:38:38.920 --> 00:38:42.000
participate in it. And I know your colleague and part
836
00:38:42.000 --> 00:38:45.119
of Olden Frasier also one of our summit co sponsors
837
00:38:45.199 --> 00:38:48.199
and interview guests. It's just amazing how he's out there,
838
00:38:48.320 --> 00:38:51.000
you know, on the leading edge of developing integrating these
839
00:38:51.039 --> 00:38:53.719
tools to do really interesting things. But we do need
840
00:38:53.760 --> 00:38:56.079
to be pretty nimble and innovative today if we're going
841
00:38:56.119 --> 00:38:58.800
to stay abreast to what's going on in digital marketing.
842
00:38:58.800 --> 00:39:00.000
So I wonder if you could just talk about it,
843
00:39:00.159 --> 00:39:02.400
because it could look to a new entrepreneur's just so
844
00:39:02.599 --> 00:39:05.280
complex and changing themselves fast, and how do I possibly
845
00:39:05.400 --> 00:39:06.880
learn this stuff and get a handle lot of it?
846
00:39:07.159 --> 00:39:10.159
So what I'm doing is I'm asking myself, how can
847
00:39:10.199 --> 00:39:13.519
I use AI to make myself and my team more effective?
848
00:39:13.719 --> 00:39:16.719
At from an output perspective, so at doing the work
849
00:39:16.760 --> 00:39:19.400
that we do so that we can free up bandwidth
850
00:39:19.760 --> 00:39:23.360
to leverage the other kind of AI from a customer
851
00:39:23.360 --> 00:39:26.719
facing perspective, and the other kind of AI is actual intelligence.
852
00:39:27.320 --> 00:39:30.000
I'm seeing a lot of brands looking to leverage AI
853
00:39:30.519 --> 00:39:33.800
customer facing, like they want to leverage AI to make
854
00:39:33.840 --> 00:39:35.800
it more efficient so that they don't have to talk
855
00:39:35.840 --> 00:39:38.280
to their customers, they don't have to deal with their customers. Right,
856
00:39:38.880 --> 00:39:42.000
we're doing the exact opposite. I want to get as
857
00:39:42.119 --> 00:39:45.639
efficient as we can in all of the non customer
858
00:39:45.719 --> 00:39:48.960
facing things so that I can take those efficiency gains
859
00:39:49.000 --> 00:39:54.400
and pour them back into incredibly inefficient customer facing things.
860
00:39:54.639 --> 00:39:56.719
And I think the combination of that is what's going
861
00:39:56.760 --> 00:39:59.360
to work. Because I believe that we're in We're already
862
00:39:59.360 --> 00:40:01.480
starting to see it. You know, there's a lot of
863
00:40:01.480 --> 00:40:04.360
bots and stuff where everybody now can tell if you're
864
00:40:04.400 --> 00:40:07.079
talking to an AI thing, and you know, stuff like that,
865
00:40:07.159 --> 00:40:09.400
and you're starting to see the rejection of that. And
866
00:40:09.440 --> 00:40:12.119
there's times when it makes sense and it's fine where
867
00:40:12.440 --> 00:40:14.000
if I'm on a website, I'd rather just be able
868
00:40:14.039 --> 00:40:15.480
to poke around and find it myself than talk to
869
00:40:15.519 --> 00:40:17.000
another person. But if I want to talk to a person,
870
00:40:17.039 --> 00:40:18.719
that I want to talk to a person, I don't
871
00:40:18.719 --> 00:40:20.360
want to talk to a fake person that's a robot
872
00:40:20.360 --> 00:40:24.480
pretended to be a person. So let's use AI as
873
00:40:24.519 --> 00:40:27.079
the tool that it is. You're a lumberjack and you've
874
00:40:27.079 --> 00:40:29.119
had an AX and somebody just handed you a chainsaw.
875
00:40:29.400 --> 00:40:32.519
If you don't take the chainsaw because you're scared of
876
00:40:32.559 --> 00:40:34.719
the chainsaw, and you just are like, no, the AX
877
00:40:34.840 --> 00:40:38.199
is for me, you're a freaking idiot, all right, I'm sorry.
878
00:40:38.559 --> 00:40:40.559
And that's where a lot of business owners they're like,
879
00:40:40.559 --> 00:40:42.599
I'm scared of this new technology. I don't think it's
880
00:40:42.639 --> 00:40:45.320
a tool. Just like if you were a graphic designer
881
00:40:45.360 --> 00:40:48.639
in the past and Photoshop and Adobe Illustrator comes along,
882
00:40:48.679 --> 00:40:50.239
if you don't use these tools, you're going to get
883
00:40:50.320 --> 00:40:52.400
left behind. So for me as a marketer, for me,
884
00:40:52.440 --> 00:40:54.760
as a writer, for me, I use AI all day,
885
00:40:54.760 --> 00:40:58.159
every day, I'm having conversations with it. I'm using it
886
00:40:58.239 --> 00:41:03.400
as the ultimate research assistant, the ultimate I don't want
887
00:41:03.400 --> 00:41:05.599
to say person because it's not, but the ultimate kind
888
00:41:05.599 --> 00:41:07.800
of buddy that I can bounce ideas off of, Hey,
889
00:41:07.840 --> 00:41:09.320
how would you do this? What do you think about this?
890
00:41:09.800 --> 00:41:12.480
So using it from that perspective, whereas in the past
891
00:41:12.519 --> 00:41:14.880
you would have just had to google it or ask
892
00:41:14.920 --> 00:41:18.599
somebody in your team to do it amazing. I'm using
893
00:41:18.599 --> 00:41:21.280
it not to write, but to help me come up
894
00:41:21.280 --> 00:41:23.920
with prompts and ideas for what to write about. So
895
00:41:24.039 --> 00:41:26.800
I think it's great for the first ten percent, then
896
00:41:26.800 --> 00:41:28.159
I want to make sure I'm doing the middle, and
897
00:41:28.199 --> 00:41:29.960
then it's great at the end. So if like from
898
00:41:29.960 --> 00:41:32.159
a ten eighty ten perspective, help me with a ten percent,
899
00:41:32.199 --> 00:41:34.800
I'm going to do the a middle eighty thinking, and
900
00:41:34.840 --> 00:41:37.239
then the last ten percent. I also think it can
901
00:41:37.239 --> 00:41:40.199
be great on the inverse. I'm going to bring the
902
00:41:40.199 --> 00:41:42.880
first ten percent of the idea, you do the middle,
903
00:41:43.360 --> 00:41:45.119
and then I'm going to go clean it up. So
904
00:41:45.199 --> 00:41:47.280
I think as long as you're operating with it that
905
00:41:47.400 --> 00:41:50.519
way and it's never one hundred percent of anything, then
906
00:41:50.559 --> 00:41:51.960
you're doing a really really good job.
907
00:41:52.119 --> 00:41:54.920
So I talk just a little bit about you know,
908
00:41:54.960 --> 00:41:57.880
whether people are selling online products or you know some
909
00:41:57.960 --> 00:42:00.960
kind of widgets, physical project or whatever business is not
910
00:42:01.079 --> 00:42:05.360
online today, and so you know, in whatever format that takes,
911
00:42:05.360 --> 00:42:08.280
we have some kind of funnel that's happening. Right We're
912
00:42:08.280 --> 00:42:11.000
getting leads in some way, We're nurturing leads in some way,
913
00:42:11.280 --> 00:42:14.599
we're presenting them with an offer. Hopefully we're getting convergence,
914
00:42:14.639 --> 00:42:17.239
and then we're doing fulfillment, nurturing them and working on
915
00:42:17.280 --> 00:42:20.000
customer attention and all of that. So, if you have
916
00:42:20.079 --> 00:42:22.880
funnels and our audience out there, and I'm sure many
917
00:42:22.920 --> 00:42:26.280
of times the funnel stops working or you learn everything
918
00:42:26.320 --> 00:42:28.559
you couldn't build the funnel, it's not working. And so
919
00:42:28.840 --> 00:42:30.760
if your funnels are out what are some of the
920
00:42:30.840 --> 00:42:34.159
key things to look at? And from a digital marketing perspective,
921
00:42:34.159 --> 00:42:35.719
what are the key things to look at?
922
00:42:35.840 --> 00:42:38.840
I think that the visual of the funnel is to
923
00:42:38.920 --> 00:42:42.000
a certain degree broken right now. And so when most
924
00:42:42.000 --> 00:42:44.079
of the time when we're thinking about the funnel, what
925
00:42:44.119 --> 00:42:46.440
we're thinking about is we're going to bring people in
926
00:42:46.960 --> 00:42:50.519
and we're going to kind of nurture them through until
927
00:42:50.559 --> 00:42:52.239
they are ready to buy, and we're going to walk
928
00:42:52.280 --> 00:42:55.079
them through a journey and through a process until they're
929
00:42:55.119 --> 00:42:57.320
ready kind of in our you know, in our time.
930
00:42:57.719 --> 00:42:59.559
And that's got a couple problems. Number one, the customer
931
00:42:59.599 --> 00:43:02.719
journey is non linear. Prospects have auctions. They can learn
932
00:43:02.760 --> 00:43:05.039
about you in so many different ways. They can bounce
933
00:43:05.079 --> 00:43:06.760
all around. They could do their own Google searching that,
934
00:43:06.760 --> 00:43:08.599
they can check you out on YouTube, they can ask around,
935
00:43:08.679 --> 00:43:11.480
they can you know, ping people on social media. They're
936
00:43:11.519 --> 00:43:13.920
moving in and out of your funnel, hopping all around.
937
00:43:14.000 --> 00:43:16.280
It's way more like the old like shoot some ladders.
938
00:43:16.400 --> 00:43:18.320
They'll get right up to the top, see something and
939
00:43:18.360 --> 00:43:20.079
then go all the way back down, see something else,
940
00:43:20.119 --> 00:43:22.039
and pop right back up to the top. So from
941
00:43:22.039 --> 00:43:24.400
that perspective, the funnel is anything but linear. The other
942
00:43:24.480 --> 00:43:27.559
issue is that the traditional classic funnel of let's bring
943
00:43:27.599 --> 00:43:30.000
somebody in for something free, then let's offer them something
944
00:43:30.039 --> 00:43:32.639
kind of inexpensive, and then a little bit more expensive,
945
00:43:32.639 --> 00:43:33.920
and then a little bit more expensive. We're going to
946
00:43:33.960 --> 00:43:36.599
march them up low to high up the value ladder.
947
00:43:37.159 --> 00:43:41.199
That works, and it kind of mirrors normal human relationships
948
00:43:41.239 --> 00:43:44.039
like of dating. Right, So it's kin nice to meet,
949
00:43:44.079 --> 00:43:47.440
you want to go grab coffee go dinner. The problem
950
00:43:47.519 --> 00:43:50.400
is that traffic costs are so freaking expensive we simply
951
00:43:50.400 --> 00:43:53.760
can't wait until these leads are nurtured to be able
952
00:43:53.800 --> 00:43:56.400
to pop the question. I mean, when traffic costs are
953
00:43:56.400 --> 00:43:59.400
super cheap, you can afford to wait. Now we can't.
954
00:43:59.840 --> 00:44:01.719
And so what a lot of marketers have done is
955
00:44:01.719 --> 00:44:03.880
they flip the funnel and they've said, Okay, well, what
956
00:44:03.880 --> 00:44:05.400
I'm gonna do is I'm gonna bring everybody in. I'm
957
00:44:05.400 --> 00:44:08.000
gonna make my best offer, my most expensive thing, day one,
958
00:44:08.039 --> 00:44:10.360
and I'll march them back down. Now. The problem with
959
00:44:10.400 --> 00:44:12.760
that is you are gonna sell the people who are
960
00:44:12.800 --> 00:44:14.800
ready now. The people who are ready to buy now,
961
00:44:15.079 --> 00:44:17.719
you're gonna get them. Problem is that represents about three
962
00:44:17.760 --> 00:44:19.800
to six percent of your audience at any given time,
963
00:44:20.079 --> 00:44:22.159
and everybody else you're gonna piss off an alien eight
964
00:44:22.440 --> 00:44:24.880
and that three to six percent, more times than not,
965
00:44:25.119 --> 00:44:28.440
is not enough to completely offset all of your costs.
966
00:44:29.000 --> 00:44:31.960
And because you've alienated everybody else, you're not gonna be
967
00:44:32.000 --> 00:44:34.519
able to nurture them, and so you're gonna lose all
968
00:44:34.559 --> 00:44:37.199
of that. So we can't go low to high. We
969
00:44:37.199 --> 00:44:39.719
can't go high to low. So here's the key to
970
00:44:39.800 --> 00:44:42.519
marketing today, and it's why funnels we need to think
971
00:44:42.559 --> 00:44:45.159
about them a little bit differently. The key to marketing
972
00:44:45.159 --> 00:44:48.920
today is we need mechanisms to determine who are the
973
00:44:48.920 --> 00:44:50.960
three to six percent who are ready to buy now,
974
00:44:51.639 --> 00:44:53.719
so that we can make our best offer to them today,
975
00:44:54.159 --> 00:44:56.639
and we can nurture the ones who are qualified who
976
00:44:56.679 --> 00:44:59.199
will likely buy later, but who are not ready. That
977
00:44:59.400 --> 00:45:02.440
is the great game of marketing, and so in business
978
00:45:02.480 --> 00:45:04.440
we really kind of need to have two funnels. We
979
00:45:04.440 --> 00:45:05.920
need to have a ready now funnel that's going to
980
00:45:05.960 --> 00:45:07.679
get the people ready now. We need to have a
981
00:45:07.719 --> 00:45:10.599
later funnel that'll nurture the later people. And we need
982
00:45:10.639 --> 00:45:14.000
to have mechanisms in place to get the ready now
983
00:45:14.000 --> 00:45:15.679
people to raise their hand and say I'm ready now,
984
00:45:16.159 --> 00:45:18.800
and have the later people not do that and not
985
00:45:18.880 --> 00:45:21.159
get in funnel. So we don't think about it so
986
00:45:21.239 --> 00:45:22.920
much as a funnel anymore. We think about it as
987
00:45:22.920 --> 00:45:26.320
a popcorn popper. If you've ever pop popcorn, the kernels
988
00:45:26.360 --> 00:45:28.840
go in the pot and they're popping at different times.
989
00:45:29.199 --> 00:45:32.599
Heat is applied evenly right, and yet some of them
990
00:45:32.599 --> 00:45:35.320
pop almost immediately at true now people. And what a
991
00:45:35.360 --> 00:45:37.440
lot of marketers do is they get a couple of
992
00:45:37.440 --> 00:45:39.199
pops and they turn off the heat and they wonder
993
00:45:39.199 --> 00:45:41.639
why their funnel stopped working well? And you didn't nurture
994
00:45:42.039 --> 00:45:43.920
other marketers when have done pop fast enuff. They crank
995
00:45:44.000 --> 00:45:46.320
up the heat and they burn a bunch of them
996
00:45:46.679 --> 00:45:49.559
and they wonder why their funnel didn't work right. What
997
00:45:49.599 --> 00:45:51.079
we need to do is we need to figure out
998
00:45:51.119 --> 00:45:52.880
who are those people that are ready to pop now?
999
00:45:53.000 --> 00:45:54.719
And there's a tactically, there's a lot of ways to
1000
00:45:54.719 --> 00:45:57.280
do that. We can do hand raiser campaigns, we can
1001
00:45:57.320 --> 00:46:01.360
do better audience segmentation, but that's where marketing is today.
1002
00:46:01.880 --> 00:46:06.159
That's the game. Who is ready now, Let's make our
1003
00:46:06.199 --> 00:46:09.239
best offer to them. Who is not? Let's nurture them.
1004
00:46:09.559 --> 00:46:12.440
We can't treat everybody the same anymore. It just doesn't
1005
00:46:12.440 --> 00:46:13.159
work well.
1006
00:46:13.199 --> 00:46:16.239
That is absolutely gold. And that's exactly the place and
1007
00:46:16.360 --> 00:46:18.840
attention and the confusion that where I've been sitting, my
1008
00:46:18.920 --> 00:46:21.079
team's been sitting, and you have a framework, but I
1009
00:46:21.079 --> 00:46:23.840
think you call it a raise your hand campaign, which is great.
1010
00:46:23.880 --> 00:46:25.280
How do you get those folks that are right now
1011
00:46:25.360 --> 00:46:29.639
to identify themselves? Absolutely? Because I was always terrified of
1012
00:46:29.679 --> 00:46:32.880
pissing everybody off to try to get an offer in
1013
00:46:32.880 --> 00:46:34.800
front of those people, right, yeah.
1014
00:46:34.760 --> 00:46:36.280
Yeah, And I can give you a quick tip to
1015
00:46:36.320 --> 00:46:37.440
come up with that if you want me to.
1016
00:46:37.800 --> 00:46:39.079
Sure, absolutely have time.
1017
00:46:39.079 --> 00:46:40.599
All right, here's the question that you need to answer.
1018
00:46:41.079 --> 00:46:43.960
Under what circumstances will the right prospect always buy? This
1019
00:46:44.039 --> 00:46:45.840
is the question that you got to answer. There's two
1020
00:46:45.840 --> 00:46:47.840
elements to that number one right prospect. So you got
1021
00:46:47.840 --> 00:46:51.000
to know who your ideal client is. And when I
1022
00:46:51.039 --> 00:46:54.079
say ideal, I don't mean just somebody who you can
1023
00:46:54.199 --> 00:46:57.079
sell to. I'm talking about your TENX buyer. Who are
1024
00:46:57.079 --> 00:46:59.320
the people who are likely to spend ten times more
1025
00:46:59.360 --> 00:47:02.639
than the average, So not just your general avatar. Who
1026
00:47:02.639 --> 00:47:04.159
are the people that are going to go all the
1027
00:47:04.159 --> 00:47:06.119
way to the tip tip top of your value ladder.
1028
00:47:06.119 --> 00:47:08.639
You need to know who those people are. So a
1029
00:47:08.719 --> 00:47:12.880
digital marketer, it's marketing agencies and consultants. It's not just
1030
00:47:12.920 --> 00:47:15.519
your random one off marketers. It's not your startup people.
1031
00:47:15.800 --> 00:47:19.880
It's marketing agencies and consultants. At the scalable company, it's
1032
00:47:19.920 --> 00:47:23.360
companies that are in the two to eight million dollar range. Okay,
1033
00:47:23.400 --> 00:47:26.000
we just with like ten to I think forty employees,
1034
00:47:26.360 --> 00:47:29.880
Like we just know who that ideal client is, so
1035
00:47:29.960 --> 00:47:33.239
that's right client. So under what circumstances will the right
1036
00:47:33.280 --> 00:47:34.119
client always buy?
1037
00:47:34.719 --> 00:47:34.800
So?
1038
00:47:34.960 --> 00:47:40.199
Now what circumstances? That's the triggering event. Every business has
1039
00:47:40.239 --> 00:47:44.880
a triggering event that causes somebody to enter into that
1040
00:47:45.000 --> 00:47:48.840
I'm ready now moment. Everybody has it, right, Like, I'll
1041
00:47:48.840 --> 00:47:50.760
give you a very simple example that I really understand.
1042
00:47:51.039 --> 00:47:54.679
Let's say I sell very high end winter coats. Okay,
1043
00:47:54.800 --> 00:47:57.360
that's what I sell as a business, and I'm located
1044
00:47:57.400 --> 00:48:00.519
in Austin, Texas. Now, if you don't know much about Austin, Texas,
1045
00:48:00.880 --> 00:48:03.280
we have two seasons. We have scalding hot and we
1046
00:48:03.320 --> 00:48:05.599
have frickin freezing and almost nothing in the middle. It's
1047
00:48:05.639 --> 00:48:08.079
like the opposite of California, right where it's like always
1048
00:48:08.079 --> 00:48:11.000
seventy three, Like in Austin it's like one hundred and
1049
00:48:11.000 --> 00:48:13.360
fifty three, and it's like, you know, in the winter,
1050
00:48:13.440 --> 00:48:17.559
it's like two. Okay, So a triggering event could be, hey,
1051
00:48:17.599 --> 00:48:20.039
it's winter time, but what do you do when it ain't.
1052
00:48:20.480 --> 00:48:22.599
Now you have to ask ourselves, what are some other
1053
00:48:22.639 --> 00:48:25.480
reasons that somebody might buy? What could be somebody's taken
1054
00:48:25.519 --> 00:48:28.679
a trip to Australia in the summer, because it's winter there, right,
1055
00:48:28.960 --> 00:48:32.679
So asking that question under what circumstances and understanding the
1056
00:48:32.679 --> 00:48:35.840
triggering events. If you know the circumstances under which the
1057
00:48:35.880 --> 00:48:38.840
right person will always buy, now you can structure campaigns
1058
00:48:39.079 --> 00:48:42.039
and it could be an email campaign. Where again, if
1059
00:48:42.039 --> 00:48:44.679
I'm not company that I have those codes, Im'd send
1060
00:48:44.719 --> 00:48:47.559
an email campaign saying planning a trip to South America. Now,
1061
00:48:47.599 --> 00:48:50.320
the people who are will respond, the people who are
1062
00:48:50.360 --> 00:48:52.239
it will forget about and ignore it and not be
1063
00:48:52.239 --> 00:48:53.920
annoyed at all because it was just such a simple
1064
00:48:53.960 --> 00:48:55.840
short email. I could take that and apply that to
1065
00:48:55.880 --> 00:48:58.639
Facebook copy all in all, So, if you can answer
1066
00:48:58.679 --> 00:49:01.960
the question under what circumstance the right prospect always buy,
1067
00:49:02.639 --> 00:49:05.159
you put that messaging out there, the right prospects will
1068
00:49:05.199 --> 00:49:08.360
raise their hand, they will signal that they're ready. Now
1069
00:49:08.800 --> 00:49:13.599
you then filter them off, market to them separately everybody else.
1070
00:49:13.960 --> 00:49:16.519
You just leave them be, leave them alone until they
1071
00:49:16.519 --> 00:49:19.079
are ready. Now that's the secret to marketing today.
1072
00:49:19.480 --> 00:49:21.719
More goals and more diamonds. I hope people are picking
1073
00:49:21.800 --> 00:49:23.760
up on this our audience and where can they find
1074
00:49:23.760 --> 00:49:27.000
out more access more as a scald from you? Where
1075
00:49:27.000 --> 00:49:27.519
should they go?
1076
00:49:27.840 --> 00:49:30.280
Yeah, So, if you're really liking the marketing stuff. Digital
1077
00:49:30.320 --> 00:49:32.679
marketer dot com is where we talk about that. If
1078
00:49:32.719 --> 00:49:34.360
you're at the point where you know that growth is
1079
00:49:34.360 --> 00:49:36.639
not enough and you need help with scale, then scalable
1080
00:49:36.679 --> 00:49:39.920
dot co scalble dot co is the company. So we
1081
00:49:39.960 --> 00:49:41.840
kind of have you at both ends. You're ready to grow,
1082
00:49:41.840 --> 00:49:43.679
we get Digital Marketer, you're ready to scale, we got
1083
00:49:43.840 --> 00:49:47.280
We've got Scalable and my own YouTube if you want
1084
00:49:47.320 --> 00:49:50.719
to check me out Ryan Dice Official on YouTube. I
1085
00:49:50.840 --> 00:49:53.360
just post a lot of free videos there sharing the
1086
00:49:53.360 --> 00:49:55.519
stuff that's working in what I know, and so tons
1087
00:49:55.519 --> 00:49:56.559
of free content there as well.
1088
00:49:57.199 --> 00:49:59.480
Well, well, thank you so much. So Ryan, I know
1089
00:49:59.559 --> 00:50:01.719
you have a a really amazing free gift that a
1090
00:50:01.760 --> 00:50:03.920
lot of what you've been sharing today is available in
1091
00:50:03.920 --> 00:50:06.000
this gift that people audience can share. So could you
1092
00:50:06.039 --> 00:50:07.360
tell us about that? Sure?
1093
00:50:07.440 --> 00:50:10.119
So I wrote a book called Get Scalable that's available
1094
00:50:10.119 --> 00:50:12.360
on Amazon, and it costs what a book costs. That
1095
00:50:12.400 --> 00:50:14.599
one of the biggest benefits of the book is if
1096
00:50:14.599 --> 00:50:16.159
you buy the book, then I give you all the
1097
00:50:16.159 --> 00:50:18.519
tools and resources and stuff like that we use to
1098
00:50:18.760 --> 00:50:21.559
build out operating systems, plus a digital copy of the book.
1099
00:50:21.960 --> 00:50:23.239
But I don't want to tell everybody to go out
1100
00:50:23.280 --> 00:50:24.679
there and buy a book. If you don't know so,
1101
00:50:24.920 --> 00:50:28.400
if you'll just go to get scalable dot com forward
1102
00:50:28.440 --> 00:50:31.559
slash resources and we'll drop the link below. You don't
1103
00:50:31.559 --> 00:50:33.159
even have to buy the book. Just go there, into
1104
00:50:33.159 --> 00:50:35.199
your name and email address and you'll get access to
1105
00:50:35.239 --> 00:50:37.079
all the resources as well as a digital copy of
1106
00:50:37.079 --> 00:50:39.880
the book, no purchase or anything required.
1107
00:50:40.519 --> 00:50:42.840
Was wonderful. Thank you so much. Yeah, this has just
1108
00:50:42.880 --> 00:50:45.559
been golden and you've added so much value to our
1109
00:50:45.599 --> 00:50:48.239
company and everything you've been talking about is the journey
1110
00:50:48.239 --> 00:50:50.000
that we've been on for a number of years now
1111
00:50:50.000 --> 00:50:52.760
and your guidance has just been incredibly valuable. So I
1112
00:50:52.800 --> 00:50:55.880
really encourage people I know our ideas to take advantage
1113
00:50:55.920 --> 00:50:57.719
of that free gift and it really check out your
1114
00:50:57.760 --> 00:50:59.599
work at Scalable and digital Marketers.
1115
00:50:59.719 --> 00:51:00.800
Thank you appreciate that.
1116
00:51:01.199 --> 00:51:04.039
Thank you, Roan be Well. Thank you for joining me
1117
00:51:04.079 --> 00:51:08.239
on the Radical Responsibility podcast. Remember, real change happens when
1118
00:51:08.280 --> 00:51:11.199
we commit to our growth, face our challenges with compassion,
1119
00:51:11.280 --> 00:51:14.800
and stay open to transformation. If you found this episode helpful,
1120
00:51:15.039 --> 00:51:17.480
I encourage you to subscribe and help us spread the
1121
00:51:17.519 --> 00:51:21.480
message of healing and personal empowerment. Stay grounded, stay present
1122
00:51:21.679 --> 00:51:23.400
and stay true to you. Take care
1
00:00:00.080 --> 00:00:02.359
I took this business, scaled it up, had not one,
2
00:00:02.399 --> 00:00:04.440
not two, but three different companies on the INC Five
3
00:00:04.480 --> 00:00:06.839
hundred and five thousand list in one year. From the
4
00:00:06.879 --> 00:00:09.199
outside looking in, everybody's telling me how great I am.
5
00:00:09.359 --> 00:00:11.039
You know, I'm on top of the world. I've got
6
00:00:11.080 --> 00:00:13.839
the Midas touch. But I'm miserable and I'm burnt out.
7
00:00:14.000 --> 00:00:16.719
I'm missing family dinners and I'm missing soccer games, and
8
00:00:16.760 --> 00:00:19.480
I'm leaving for the office before anybody's awake, and I'm
9
00:00:19.480 --> 00:00:22.039
getting home after everybody's asleep. You know, I've got my wife,
10
00:00:22.039 --> 00:00:24.320
I've got four kids. Nobody knows who I am. They
11
00:00:24.480 --> 00:00:26.120
I don't ever get to see them. And it wasn't
12
00:00:26.199 --> 00:00:28.440
until I came home one night and there's my wife
13
00:00:28.519 --> 00:00:30.359
sitting up in bed and she's you know, of now
14
00:00:30.440 --> 00:00:33.039
fifteen plus years and she says, you know, look, I
15
00:00:33.119 --> 00:00:35.119
know who I married. You can keep doing what you're doing,
16
00:00:35.280 --> 00:00:37.560
but you can't pretend like you're doing it for us anymore.
17
00:00:37.719 --> 00:00:40.560
That for me, was the breaking point when I realized, Okay,
18
00:00:40.600 --> 00:00:42.039
I can have all the ego in the world, but
19
00:00:42.079 --> 00:00:43.000
this ain't working.
20
00:00:45.759 --> 00:00:49.719
Welcome to the Radical Responsibility Podcast. I'm doctor fleet Mal
21
00:00:49.840 --> 00:00:52.280
and I'm excited to guide you on a journey of
22
00:00:52.359 --> 00:00:56.039
authentic transformation. In each episode, I'll bring you insights from
23
00:00:56.119 --> 00:01:01.479
leading experts to explore trauma recovery, mindfulness practices, positive psychology,
24
00:01:01.520 --> 00:01:06.159
and innovative breakthroughs in health, wellness, and life optimization. This
25
00:01:06.239 --> 00:01:09.799
is a space for real conversations that inspire meaningful change,
26
00:01:09.879 --> 00:01:12.760
helping you find alignment with the person you are always
27
00:01:12.760 --> 00:01:22.000
meant to be. Let's get started. What if transformation isn't
28
00:01:22.120 --> 00:01:26.439
just about thinking differently but feeling differently. Science shows us
29
00:01:26.439 --> 00:01:29.640
that true change happens when we align not just our minds,
30
00:01:29.920 --> 00:01:33.239
but also the neural networks in our hearts and guts.
31
00:01:33.840 --> 00:01:37.680
This heart mind connection is the key to deeper healing, resilience,
32
00:01:37.719 --> 00:01:41.359
and expanded awareness. That's why I created the Heart Mind
33
00:01:41.519 --> 00:01:45.000
All access, membership and community, a space designed to help
34
00:01:45.040 --> 00:01:49.120
you rewire your nervous system, cultivate heart intelligence, and live
35
00:01:49.200 --> 00:01:53.239
with greater clarity and purpose. With over one thousand hours
36
00:01:53.239 --> 00:01:58.519
of transformational teachings specifically curated to meet your needs, You'll
37
00:01:58.599 --> 00:02:04.719
learn from worldn no meditation teachers, neuroscientists, and experts in neuroplasticity,
38
00:02:05.079 --> 00:02:08.800
all sharing powerful tools to help you shift your mindset
39
00:02:09.120 --> 00:02:13.759
and heartset, regulate your emotions and unlock your full potential.
40
00:02:14.560 --> 00:02:18.080
You'll also gain unlimited access to every summit and course
41
00:02:18.120 --> 00:02:21.639
we've ever produced, a Treasure Trouble Wisdom worth over ten
42
00:02:21.719 --> 00:02:25.479
thousand dollars in growing, plus live gatherings and an inspiring
43
00:02:25.520 --> 00:02:29.120
global community to support your journey. If you're ready to
44
00:02:29.159 --> 00:02:32.400
step into a more heart centered, connected and conscious life,
45
00:02:32.520 --> 00:02:34.960
I invite you to join us. Clip the link to
46
00:02:35.039 --> 00:02:39.599
learn more and start your journey today. What does it
47
00:02:39.719 --> 00:02:42.680
really mean to scale the business, not just grow it,
48
00:02:42.840 --> 00:02:45.520
but truly scale it, and what does it take to
49
00:02:45.560 --> 00:02:50.080
build something that thrives without us at the center. In
50
00:02:50.120 --> 00:02:53.719
this conversation with Ryan Dice, and innovator in digital marketing
51
00:02:53.759 --> 00:02:57.280
and systems thinking, we go beyond the buzzwords to explore
52
00:02:57.280 --> 00:03:01.240
what sustainable scaling really looks like. Ryan shares his journey
53
00:03:01.280 --> 00:03:05.360
from college side hustle to running an influential portfolio of businesses,
54
00:03:05.719 --> 00:03:08.680
and he breaks down the core shifts that every founder
55
00:03:08.759 --> 00:03:12.879
must make to grow from scrappy entrepreneur to strategic leader.
56
00:03:13.240 --> 00:03:16.120
We talk about why ego is often the biggest bottleneck
57
00:03:16.159 --> 00:03:19.520
to delegation, and how to build operating systems that create
58
00:03:19.599 --> 00:03:24.199
transferable value and the vital difference between making money and
59
00:03:24.240 --> 00:03:28.000
building a business that lasts. Miam is Doctor Flee Mall
60
00:03:28.039 --> 00:03:29.960
your co host for the session, and I'm thrilled to
61
00:03:29.960 --> 00:03:32.280
be here today with none other than Ryan Dice.
62
00:03:32.360 --> 00:03:34.400
Welcome Ryan, Thanks so much, Rammy Fleet.
63
00:03:34.599 --> 00:03:36.919
We're so thrilled to have You've been a huge influence
64
00:03:36.960 --> 00:03:39.520
on our own success at Hartmind Institute. And you know,
65
00:03:39.719 --> 00:03:43.199
I hate to ask anybody to encapsulate their story at
66
00:03:43.280 --> 00:03:45.159
a couple of minutes, but I'm going to ask you
67
00:03:45.199 --> 00:03:47.439
to do it anyway, So you know, just get a
68
00:03:47.520 --> 00:03:49.800
sense of how you got started, how did you end
69
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up becoming an entrepreneur and getting into digital marketing, and
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how did that happen, and what's the backstory behind that.
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Yeah, it's really simple. I met a girl. I was
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a freshman in college and I I had no ambitions
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of being an entrepreneur. I had no ambition ambitions of
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doing marketing. I had no idea what I wanted to do.
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I actually thought, I don't know I've ever told you this, Fleet.
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I thought I was going to go into vocacial ministry.
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That's what in my head. I thought I was going
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to go and be a pastor and so but I
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went to college. I met this girl. Within a couple
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of weeks of dating, I knew, like, this is the
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woman I'm probably going to marry. I didn't tell her that,
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by the way, because I knew that was kind of creepy,
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which as a marketing lesson, by the way, just in that,
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but I did. I mean, I was like, whoa, okay,
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And it was the first time in my life that
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I wanted something and I knew I didn't have what
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it took to get it, and specifically, like I knew
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that I wasn't the kind of person who had the
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means to be like an adult who could support another
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human being, And specifically I knew that I didn't have
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enough money to buy an engagement ring. I knew that
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diamonds were expensive, and I was broke. So I decided
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to start this little side hustle selling little ebooks and
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things like that online, truly, just so that I could
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make enough money to buy this woman an engage a ring.
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That was it, and this was my freshman year. I
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didn't tell her that, but I got to work. Well
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fast forward a couple of years, I had made enough
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money to buy the ring I got the ring, I
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got the girl, and that little business eventually ballooned into,
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you know, initially a digital publishing empire, mini empire, if
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you can call it that. And along the way, all
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I did was I talked about publicly what I was
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doing privately. And this was kind of before blogging was
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a thing, you know. I launched my first business in
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nineteen ninety nine, you know, so you got to think
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Google back then was a science Fair project. He didn't
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have a lot of this stuff that we have. There
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was no social media. But I had a little email
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list and I invited people to subscribe to it, and
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every week I would just tell him what I was doing.
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And I did it as much for accountability as anything else.
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And so I kind of got a reputation and I
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gained a following as I guess, being an expert, not
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because I actually knew what the heck I was doing,
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just because I was talking about what I was doing,
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and I was sharing the wins and the losses, the good,
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the bad, and the ugly, and so that was really
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where it all began. So I've always started businesses, I've
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always run businesses, and I've always talked about what the heck,
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it was that I was doing, and that's how Digital
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Marketer came into being, It's how Scalable came into being.
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But I've always had businesses and then I've always had
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businesses that talked about what I was doing in business,
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and so that's kind of how I've operated really for
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the past twenty five plus years.
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Our focus today is scaling, and obviously you could share
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so much about marketing. So your company, Scalable has really
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helped so many companies and so many founders and entrepreneurs
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figure out how to scale their business. You've got something
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that's working, You're probably wearing all the hats. Maybe you're
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a solorepreneur, maybe you have a small team, but basically
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you got a small team of helpers. You're the expert,
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you're doing most of it, you're directing everything, and then
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where do you go from there? So I know you
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have a whole system for scaling, and we're going to
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go through some of those elements. But what kind of
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needs to be in place before someone can even think
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about scaling a business, before it would make sense to
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start thinking about how do I scale my business effectively?
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Yeah, I think we first kind of need to find
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the difference between growth and scale. Right. So growth is
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increasing any particular unit of measurement.
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Right.
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So if you're saying I want to grow my sales, right,
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then that's growth. What we're talking about with scale is
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really talking about increasing the capacity, so the ability for
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growth to occur. And that's important because early on growth
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is all that matters, because your capacity is fundamentally you know, massive,
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like it's limitless compared to what you have, because what
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you have is nothing, right, And most people when they're
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starting their business, they're high performance individuals. If you're watching this,
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you know right now you're a high performance person. You
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can do a lot of stuff. You know, you're a
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bigger container than the average person that's out there. And
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so that's plenty to get launched. That's enough to get started,
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and that's enough to grow. The hard lesson that I
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had to learn is that growth does not equal scale,
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and that scale is not simply growth and then more
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growth and more growth. So, long winded way of answering
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your question, it's realizing the difference. What it takes to
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scale is realizing number one, it's a fundamentally different playbook.
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It requires very different tools, but most importantly, it requires
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a different operating system. So to go basically from zero
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to half a million, really up to about a million
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dollars in revenue, just about anybody can do that. And
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I don't say that to suggest that it's easy, because
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it's not. Lots of people do hard things all the time,
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but just about anybody who's motivated can do that without
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having to go and figure out all the tricks of
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the trade. But going from a million to let's say
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ten million revenue, now you're talking about needing to scale
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beyond yourself. You need to have an operating system that's
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more than what we just refer to as a UoS
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that you operating system, because you're still just one person
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who only has twenty four hours and who probably needs
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to sleep some of those times, and maybe has people
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around you who want to hang out with you some
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So the big thing that you must have if you
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wanted to go from startup to scale up is you
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have to upgrade that operating system. It can't just be
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the UoS. It can't be about you. And it's a
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hard staying in the world fleet because number one, nobody
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told us that we needed to do it. Number two
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nobody gives us a pleabook for how to do it.
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And number three, we kind of have to die a
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little bit to ourselves because we're so used to being
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that person who does everything, so in our success we
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wind up getting humbled. That's I think the hardest thing.
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Of all, absolutely, and with my own company, I've been
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going through that and with your support. Unfortunately, your company
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does provide a playbook for this. And so let's talk
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about the operating system. We're going to talk about three
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core components of scaling here today, and the idea is
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to really get the company to where you have options
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and you know you could exit if you wanted to,
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or can exit from being an operator to a true CEO,
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from a CEO to a board or an investor whatever,
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or you want to sell your company someday. But it's
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getting something that has real value, that's a marketable company.
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And so part of that, I know you talk about
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transferable value and the way you transfer that from just
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yourself being you know you're the owner operator and the
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value is all you. But if you leave, what company
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is there? So it probably doesn't have a lot of
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market value. You build that into the system and you
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start building that operating system. So I wonder if you
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could talk a bit about the concept of transferable value
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and about some of the core elements of building that
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system at it's more than we can cover all of
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it today, but some of the key principles.
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So what it takes to scale scale does require the
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three elements. And three elements are Number one, you have
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to have leverage sales, so not just sales, but leverage sales.
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I think everybody gets that, right, We need to have sales, okay, fine.
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Number two is you need to have to have bankable profit,
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so you have profit that is there to continue to
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fuel the sales. Right. Those are the two that most
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people think about. It's this third one that you brought
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up that nobody thinks about. Most people don't know about,
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and they certainly don't optimize, and that is what's known
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as transferable value. And transferable value comes in two forms.
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The first form of transferable value is transferring the value
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creation process from you as the founder, to other people
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in the organization. In other words, you're not the only
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person who can do all the things. That's the first
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type of transferable by the second type of transferable value
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is transferring the value of the company to somebody else
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in the event of the sale, at least being able
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to do it. But it's that first type of transferable
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value that must occur first. And this is where business
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owners get trapped. It's where we get trapped in our
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own businesses. When our businesses start owning us is when
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we're the only ones who can actually create value in
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the company. Now, this is going to come very often.
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It manifests itself as you're the only person who can
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do the marketing, nobody else does it as well as you,
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or you're the only person who can close the sales,
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or where I see the majority of time is you're
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the only person who can deliver the service you know,
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or who can deliver the product. Nobody else can do
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it as well you know as you can. And what
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we have to be able to do as business owners
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if we truly want to own our business instead of
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having our business own us, we need to have an
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operating system that allows for the value creation process to
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occur without us. So the question that we ask is
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does the money still show up if you don't show up.
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If the answer is no, then you don't own a
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business yourself. You don't know a business, Your business owns you,
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and so that's where the operating system comes into play.
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Let me interject just something there. So I think there's
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two blocks you kind of reference. One of them that
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I know I ran to and a lot of entrepreneurs
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run into, is nobody can do it as well as
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I can, and it's quicker to just do it than
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train somebody to do it right. And those things will
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just block you forever from appropriate delegating, getting smarter people
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on the team, building, the systems, and so forth. So
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I wonder, how do you see, how did you get
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through those blocks? How do you see people get through
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those blocks?
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Yeah, And the brutal thing is in the beginning, it's true, right,
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I mean, so in the beginning, no one can do
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it as well as you can, and it is faster
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just for you to do it. And so that that's
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what makes this so tough, is because everything that is
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the exact right answer early on is the exact wrong answer.
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It's like somebody who's very like, show me the things
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that make you great, and I'll show you the things
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that will ultimately destroy you. And this is true in business.
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So how did I get through it? I mean I
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got through it by frankly nearly imploating, you know, the
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very relationship that was the thing that kicked this off.
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You know, I brought myself and my family to the
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point of you know break. I mean that I took
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this business, scaled it up, had not one, not two,
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but three different companies on the ink five hundred and
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five thousand list in one year. From the outside looking in,
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everybody's telling me how great I am. You know, I'm
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on top of the world. I've got the minus touch.
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But I'm miserable and I'm burnt out. I'm missing family dinners,
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and I'm missing soccer games, and I'm leaving for the
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office before anybody's awake, and I'm getting home after everybody's asleep.
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You know, I've got my wife, I've got four kids.
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Nobody knows who I am. They don't I don't ever
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get to see them. And it wasn't until I came
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home one night and there's my wife sitting up in
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bed and she's, you know, of now fifteen plus years
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and she says, you know, look, I know who I married.
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You can keep doing what you're doing, but you can't
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pretend like you're doing it. For us anymore. That for
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me was the breaking point when I realized, Okay, I
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can have all the ego in the world, but this
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ain't working. And that was when I finally said a
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cap got a figure something else out. And that is
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to answer your question, like, that's honest answer to your question,
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fleet how did I do it? I had to get
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to an absolute breaking point where I, because I'm man,
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I tried for years to do it all myself, and
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I succeeded to a very big point because I'm a
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high capacity, high performance individual. And I'll tell you, the
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better you are at this stuff, the deeper grave you'll
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dig for yourself is the reality. Like, show me somebody
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who's a high performance, high capacity individual, and I'll show
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you somebody who's dug a very deep hole for themselves.
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I don't want people to get to that point. So
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the reason that the Scalable Company exists is to let
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people know you don't have to go there. It's two things.
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One is mindset and the second is tactical. So the
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first thing that I'll tell you is a mindset issue
312
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is understand that number one, nobody will probably do everything
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as well as you, but lots of people can do
314
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one thing better than you. That's the first really important
315
00:14:54.720 --> 00:14:57.960
mindset shift that needs to take place. You're not looking
316
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for people who can do every thing as well or
317
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better than you. They're not going to. It's your business,
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you birth this thing. But you gotta know that there
319
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are absolutely positively people out there who any one little
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thing better than you. They exist, They're out there. We
321
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just got to find them, especially if we can equipment
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with the right tools. The second mindset shift is there's
323
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freedom on the other side of that, right, there's freedom
324
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on the other side of that if we can begin
325
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handing these things off one at a time, not exiting
326
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completely from everything, but doing it one at a time.
327
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That's how the process occurs. So how do we do it,
328
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like tactically, practically, how do we do it? Let me
329
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tell you how you don't do it. Oftentimes it's easier
330
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to know what not to do. So first and foremost,
331
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it's not about you becoming more productive. So you don't
332
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need another time management system or another productivity system or
333
00:15:42.919 --> 00:15:45.879
another you know, timer, planner journal kind of thing. I'm
334
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not saying there's anything inherently wrong with that, but your
335
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goal should be to do less not more. Okay. Also,
336
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we don't just want to hire a bunch of people
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and throw human beings at it. When we do that,
338
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what we're actually doing is trading menial tasks we're pretty
339
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good at for a new job, a new role called management,
340
00:16:04.639 --> 00:16:07.080
which most of us are pretty terrible at. Okay, So
341
00:16:07.120 --> 00:16:09.080
we don't simply one of their human beings at the problems,
342
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because what winds up happening is they don't know how
343
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to do it any better than we do. We don't
344
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have time to train them how to do it. We
345
00:16:15.840 --> 00:16:17.759
believe going into it that they're probably not going to
346
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do it as well as us. We kind of want
347
00:16:19.240 --> 00:16:21.320
them to fail, if we're being honest, because that validates
348
00:16:21.320 --> 00:16:24.440
who we are and our identity. And so when they fail,
349
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we get to swoop in and be the savior. They
350
00:16:26.919 --> 00:16:29.720
quit or we fire them, and we then begin this
351
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cycle of like, well, I guess I'm the only one
352
00:16:31.440 --> 00:16:33.559
who can do it. Don't try to make one magical
353
00:16:33.639 --> 00:16:36.120
unicorn hire of the integrator who's going to run everything
354
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for you that doesn't actually work, and don't just try
355
00:16:38.600 --> 00:16:40.000
to grow your way through it, because that's not going
356
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to work either. What you got to do is You've
357
00:16:41.279 --> 00:16:43.120
got to get your business out of your brain. And
358
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it starts with just taking a step back, getting up
359
00:16:46.879 --> 00:16:49.519
to thirty thousand feet and asking yourself a really simple question, well,
360
00:16:49.519 --> 00:16:52.879
two really simple questions. Question number one, how to customers happen?
361
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It's one of the most basic and yet essential questions
362
00:16:55.919 --> 00:16:58.799
that every business owner needs to ask. How to customers
363
00:16:58.960 --> 00:17:02.480
or clients or pays happen? How do you get them?
364
00:17:02.960 --> 00:17:04.880
Many people all ask a business owner this question and
365
00:17:04.960 --> 00:17:07.559
they can describe it to me, But can you show
366
00:17:07.680 --> 00:17:11.480
me when we work with clients, when we acquire a business,
367
00:17:11.519 --> 00:17:13.680
when we're integrating a business, this is the first thing
368
00:17:13.720 --> 00:17:17.359
that we do. We literally get sticky notes and we
369
00:17:17.400 --> 00:17:19.680
go to a y board and we map it out
370
00:17:20.039 --> 00:17:23.319
in visual flow chart form. Okay, what do you do first? Well,
371
00:17:23.319 --> 00:17:26.160
we run Facebook ads? Great Facebook ads? What else? We're
372
00:17:26.160 --> 00:17:28.440
also running Instagram out. Great Instagram day. You all get
373
00:17:28.480 --> 00:17:32.200
sticky notes. Great, Then what happens and we visualize and
374
00:17:32.240 --> 00:17:35.440
map out the flow that occurs from the point of
375
00:17:35.440 --> 00:17:40.000
awareness until somebody buys something. This is not complicated rocket science,
376
00:17:40.480 --> 00:17:44.599
you know, complex business process mapping stuff. Anybody can do this. Now,
377
00:17:44.599 --> 00:17:48.079
once we've answered visually the question of how do customers happen?
378
00:17:48.559 --> 00:17:51.920
Then we answer the second critical question, which is what
379
00:17:51.960 --> 00:17:53.920
do we do once we've got them? How do we
380
00:17:53.960 --> 00:17:57.000
fulfill on the promises made during the sales process? And
381
00:17:57.039 --> 00:18:00.359
we do the same process. We visually map that and fleet.
382
00:18:00.400 --> 00:18:01.759
I know you know this because you've gone through this
383
00:18:01.839 --> 00:18:05.759
process with us. But once you visualize those two things,
384
00:18:05.839 --> 00:18:08.400
you've got a visual process map of what we call
385
00:18:08.440 --> 00:18:11.400
it growth engine, so the visual process flow of how
386
00:18:11.440 --> 00:18:15.519
you attract and convert new leads and customers, and a
387
00:18:15.640 --> 00:18:19.119
visual process map of your fulfillment engine how you fulfill
388
00:18:19.200 --> 00:18:21.519
post sale and the promise is made. What you've done
389
00:18:21.599 --> 00:18:24.799
is you've visualized the customer journey. You can now see
390
00:18:25.400 --> 00:18:29.039
literally how value is created in the business. Then you
391
00:18:29.079 --> 00:18:31.319
can look at step by step in stage by stage
392
00:18:31.359 --> 00:18:34.279
and say, okay, which of these sticky notes can I
393
00:18:34.319 --> 00:18:36.759
start handing off to other people? And the way that
394
00:18:36.839 --> 00:18:40.240
you do it, the way that you delegate, tactically speaking,
395
00:18:40.480 --> 00:18:42.519
is one sticky note at the time. And the mistake
396
00:18:42.519 --> 00:18:44.680
that people make is they try to hand everything off,
397
00:18:45.039 --> 00:18:48.160
They try to hand off unclear jobs. If you can
398
00:18:48.200 --> 00:18:51.359
first visualize the value creation process, why your company exists,
399
00:18:51.359 --> 00:18:53.839
how you add value. And then if you hand off
400
00:18:53.880 --> 00:18:56.279
the tasks and the roles one or two little sticky
401
00:18:56.319 --> 00:19:00.200
notes at a time, before long, everybody's doing everything and
402
00:19:00.240 --> 00:19:03.559
you're just kind of monitoring, you're optimizing. That is the
403
00:19:03.599 --> 00:19:06.599
first step in creating the operating system of a business.
404
00:19:06.920 --> 00:19:09.160
And I know you call these sticky notes eventually become
405
00:19:09.160 --> 00:19:12.400
playbooks somebody owns, and that's the term used in your
406
00:19:12.480 --> 00:19:15.559
company for SOPs or standard operating procedures. I like the
407
00:19:15.640 --> 00:19:17.640
term playbook. I think it really gets to the point.
408
00:19:17.920 --> 00:19:20.200
And I love what you said before about you know,
409
00:19:20.279 --> 00:19:22.640
one indicator of to the extent that we have transferred
410
00:19:22.720 --> 00:19:25.400
value from our head and our abilities into the company
411
00:19:25.440 --> 00:19:28.119
into a system is whether if we don't show up,
412
00:19:28.160 --> 00:19:30.200
do the sales keep showing up? And I love an
413
00:19:30.240 --> 00:19:33.680
analogy use about the dancing bear. Like you're the dancing
414
00:19:33.680 --> 00:19:36.000
bear in your business. If you stop dancing, what happens?
415
00:19:36.279 --> 00:19:38.400
If you're not dancing on that ball, what happens.
416
00:19:38.680 --> 00:19:40.720
That's the circus bear, right. The circus bear is big
417
00:19:40.759 --> 00:19:42.559
and powerful, a little bit scary. But at the end
418
00:19:42.559 --> 00:19:45.000
of the day, bear stops dancing, Bear doesn't get paid.
419
00:19:45.079 --> 00:19:48.160
And there's a lot of business owners out there who
420
00:19:48.200 --> 00:19:50.400
they're big, and they're powerful, and they're respected and even
421
00:19:50.440 --> 00:19:53.359
a little bit feared. But the second they stop dancing,
422
00:19:53.839 --> 00:19:56.519
they stop getting paid. And so we don't want that.
423
00:19:56.640 --> 00:19:58.559
We don't want to be that. We want to own
424
00:19:58.599 --> 00:20:00.359
our business. We don't want our business to own, and
425
00:20:00.400 --> 00:20:02.839
so we get the business out of our brain and
426
00:20:02.920 --> 00:20:06.799
we put it in sticky notes on a whiteboard. Right, ben,
427
00:20:06.960 --> 00:20:08.880
we do it here, I did this recently, right, if
428
00:20:08.880 --> 00:20:11.599
people can see this, We do this all the time.
429
00:20:11.720 --> 00:20:15.359
We think in terms of business process maps. Because yeah,
430
00:20:15.400 --> 00:20:17.400
then every one of those sticky notes, which of these
431
00:20:17.400 --> 00:20:20.720
sticky notes are really critical? Great, let's create playbooks of these.
432
00:20:21.000 --> 00:20:23.319
We're going to assign names to each of those sticky notes.
433
00:20:23.680 --> 00:20:26.119
In the beginning, every one of the states who does this?
434
00:20:26.160 --> 00:20:28.119
One me? Okay, I don't want it to be me
435
00:20:28.240 --> 00:20:30.880
on every one of these. So what's the person called
436
00:20:30.880 --> 00:20:32.680
who does some of these things? And this is how
437
00:20:32.720 --> 00:20:35.359
you begin hiring one sticky note at a time. How
438
00:20:35.400 --> 00:20:37.200
do I know these things are working? What are the
439
00:20:37.279 --> 00:20:39.119
metrics that I would need to track to know this
440
00:20:39.160 --> 00:20:42.240
is working? This how we begin to build scorecards. Right,
441
00:20:42.279 --> 00:20:44.920
and now, when we're meeting with our team, we're talking
442
00:20:44.960 --> 00:20:47.319
about the metrics on the scorecard. That's how we can
443
00:20:47.319 --> 00:20:51.319
begin optimizing the flow. And so this is how we
444
00:20:51.359 --> 00:20:55.119
build operating systems within businesses. But it starts with just
445
00:20:55.160 --> 00:20:57.640
the simplest question in the world. How do we add
446
00:20:57.720 --> 00:21:00.960
value to the marketplace? And that's with how do we
447
00:21:01.000 --> 00:21:03.240
get customers? How do they happen? How do we serve
448
00:21:03.240 --> 00:21:04.039
them once we have them?
449
00:21:04.240 --> 00:21:08.240
So understanding these growth value engines and then the scorecards
450
00:21:08.240 --> 00:21:10.279
that can really track the metrics to see how you're
451
00:21:10.279 --> 00:21:13.200
succeeding with those all contributes to the next thing. We'd
452
00:21:13.240 --> 00:21:16.759
like to talk about. Leverage sales or recurring revenue and
453
00:21:17.079 --> 00:21:20.480
Lupilier recurring revenue they think of subscription membership programs or
454
00:21:20.480 --> 00:21:22.680
as saass and that can be one kind of recurring revenue.
455
00:21:22.920 --> 00:21:25.240
But also whatever reasons you had, if you know that
456
00:21:25.319 --> 00:21:27.119
you just keep doing x, you're going to get x
457
00:21:27.160 --> 00:21:29.920
amount of sales, right because you've got repeatable processes that
458
00:21:30.039 --> 00:21:32.960
systematize you keep doing it. I mean, may be market
459
00:21:33.039 --> 00:21:35.359
changes you got to adjust to, but in general, you've
460
00:21:35.359 --> 00:21:37.519
got a business you keep run, the sales are going
461
00:21:37.559 --> 00:21:39.200
to show up, right. So I wonder if you could
462
00:21:39.200 --> 00:21:42.279
talk a little bit about how people shift from just
463
00:21:42.359 --> 00:21:44.480
going after elephants all the time. I go, I do
464
00:21:44.480 --> 00:21:46.920
this big problem brought but oh great, now what's next?
465
00:21:46.920 --> 00:21:48.359
And I do another thing to mix of mine. Now
466
00:21:48.400 --> 00:21:52.160
what's next to really building a system that's creating that
467
00:21:52.279 --> 00:21:54.960
revenue even if you step off the circus ball for
468
00:21:55.000 --> 00:21:55.440
a moment.
469
00:21:56.000 --> 00:21:58.240
One of the most terrifying days you know in the
470
00:21:58.279 --> 00:22:01.559
month for business owners the first of the month, because
471
00:22:01.559 --> 00:22:03.279
for most business owners, they start back over it again
472
00:22:03.319 --> 00:22:06.960
in zero. And so, yes, there are certain tactical offer
473
00:22:07.000 --> 00:22:09.920
based strategies, whether it's subscription revenue and membership and things
474
00:22:09.920 --> 00:22:12.119
like that, that we can implement that may or may
475
00:22:12.359 --> 00:22:15.519
not make sense for your business. But one of the
476
00:22:15.519 --> 00:22:17.880
first things that every business needs to do is simply
477
00:22:17.920 --> 00:22:20.039
again to visualize, well, how do we get sales in
478
00:22:20.079 --> 00:22:22.119
the first place. And so one of the reasons that
479
00:22:22.559 --> 00:22:25.559
businesses have to start over every month, and that they
480
00:22:25.559 --> 00:22:28.440
practice these random acts of marketing and they're always flailing
481
00:22:28.480 --> 00:22:30.599
around and trying something new and doing something new all
482
00:22:30.640 --> 00:22:32.319
the time is because at the end of the day,
483
00:22:32.359 --> 00:22:34.480
they have no idea how they get their customers in
484
00:22:34.480 --> 00:22:36.839
the first place. They seem to just magically show up
485
00:22:36.880 --> 00:22:40.160
from thin air. And when we pin them down and
486
00:22:40.200 --> 00:22:44.000
we ask them, Okay, how do customers happen? Ninety nine
487
00:22:44.000 --> 00:22:45.519
times out of one hundred, if it's a business of
488
00:22:45.559 --> 00:22:48.599
any skill at all, they can tell me. And when
489
00:22:48.640 --> 00:22:50.839
we lay it out, when it gets visualized in one
490
00:22:50.839 --> 00:22:53.880
of those growth enders, they go, oh, that's it. And
491
00:22:53.960 --> 00:22:56.680
there is surprised to see it, as anybody is. They
492
00:22:56.759 --> 00:22:59.680
just never took the time to do it. So if
493
00:22:59.680 --> 00:23:01.519
you want that leverage sales, the first thing that you
494
00:23:01.559 --> 00:23:04.279
need to do is just to document how sales happen.
495
00:23:04.680 --> 00:23:08.440
And in just about every business that we're in, it's one, two,
496
00:23:08.680 --> 00:23:12.640
maybe three different ways. In general, it's not dozens, right,
497
00:23:12.720 --> 00:23:15.079
it might be five or six and a really big company,
498
00:23:15.319 --> 00:23:19.960
but for most businesses, there's gonna be two, three, four, five,
499
00:23:20.079 --> 00:23:24.400
six ways that you generate new customers, clients, patients. That's
500
00:23:24.440 --> 00:23:27.440
just it. And if you can visualize that, and then
501
00:23:27.480 --> 00:23:29.920
you can do the next step, which is to measure it.
502
00:23:29.960 --> 00:23:33.319
So now we're gonna build scorecards that measure each and
503
00:23:33.359 --> 00:23:35.960
every step in stage in the process. Now we're gonna
504
00:23:36.000 --> 00:23:39.240
look at those scorecards. We're gonna have goals for each
505
00:23:39.279 --> 00:23:41.480
one of those metrics, or say are we on track
506
00:23:41.960 --> 00:23:45.480
or are we behind? And our scorecards are really simple red, yellow, green.
507
00:23:45.680 --> 00:23:49.559
If we're on track or ahead. It's green. If we're
508
00:23:49.599 --> 00:23:52.240
behind but we got a plan to catch up, it's yellow.
509
00:23:52.680 --> 00:23:54.480
If we're behind. If we don't have a plan to
510
00:23:54.519 --> 00:23:57.000
catch up, it's red. And so my job as a
511
00:23:57.079 --> 00:24:00.000
leader becomes very simple. Help my team execute the price
512
00:24:00.000 --> 00:24:02.440
projects to turn red metrics yellow and yellow metrics screen.
513
00:24:02.839 --> 00:24:05.480
As long as you're always turning red metrics yellow and
514
00:24:05.559 --> 00:24:08.640
yellow metrics screen and executing only those projects, this is
515
00:24:08.640 --> 00:24:12.640
how we avoid shiny object syndrome. This how we stay focused,
516
00:24:13.119 --> 00:24:16.240
and this is how leverage sales begins to occur right,
517
00:24:16.519 --> 00:24:18.160
And this is how we make sure that we're not
518
00:24:18.279 --> 00:24:21.279
starting over at zero every month, because we know that
519
00:24:21.359 --> 00:24:24.359
this works if we just execute this. We've got a
520
00:24:24.400 --> 00:24:26.240
process in place, let's just do this. We know it's
521
00:24:26.240 --> 00:24:27.839
going to work, we know it's going to be predictable,
522
00:24:28.000 --> 00:24:29.680
and we know it's only going to get better and
523
00:24:29.680 --> 00:24:32.559
our efforts are going to compound. We're not reinventing the
524
00:24:32.559 --> 00:24:35.920
wheel every single month. But it starts again with the documentation,
525
00:24:36.079 --> 00:24:39.759
the visualization, then with the tracking, then with the optimization
526
00:24:39.960 --> 00:24:42.200
based on what are the metrics that are red, what
527
00:24:42.200 --> 00:24:44.000
are the metrics that are yellow? And it is that
528
00:24:44.039 --> 00:24:47.920
a continued repetition of it gets the flywheel spinning. That's
529
00:24:47.960 --> 00:24:51.079
what makes this process go. And if you'll just implement that,
530
00:24:51.559 --> 00:24:55.400
tactics can come and go, but that process of optimization
531
00:24:55.559 --> 00:24:58.039
will always work. It'll always works no matter what business
532
00:24:58.039 --> 00:25:00.880
you're in. It'll always work no matter the tactics that
533
00:25:00.920 --> 00:25:02.119
you're seeking to execute.
534
00:25:02.440 --> 00:25:05.519
It makes management so much easier because it takes all
535
00:25:05.559 --> 00:25:08.039
the vagueness and ambiguity out. Employee wants to know how
536
00:25:08.039 --> 00:25:10.039
are they doing. We'll look at your scorecard. Right, the
537
00:25:10.079 --> 00:25:12.160
whole thing has moved red, the yellow of the green. Right,
538
00:25:12.200 --> 00:25:14.240
it's right there in black and white. And so you
539
00:25:14.279 --> 00:25:17.440
get a metric driven business. It's so much easier to manage, right,
540
00:25:17.480 --> 00:25:21.079
because otherwise there's all this perception and opinion and you know,
541
00:25:21.279 --> 00:25:23.559
so getting it into these metrics. I've done a lot
542
00:25:23.559 --> 00:25:26.319
of sales and management consulting in my past, and I
543
00:25:26.400 --> 00:25:29.200
worked with a lot of organizations that we're still doing
544
00:25:29.240 --> 00:25:31.920
belly to belly sales that they didn't even have a CRM,
545
00:25:32.039 --> 00:25:35.599
that you know, and convincing them to get everything into
546
00:25:35.640 --> 00:25:38.599
a CRM, have a visible sales funnel and get to
547
00:25:38.640 --> 00:25:41.839
where you know x lead generating behaviors will create x
548
00:25:41.920 --> 00:25:45.359
number of leads, X sales behaviors will create x number
549
00:25:45.440 --> 00:25:48.279
of prospects and then closures and being able to manage
550
00:25:48.319 --> 00:25:50.480
that whole thing and then you know, instead of managing
551
00:25:50.519 --> 00:25:53.200
a salesforce of twenty people as a sales manager, managing
552
00:25:53.200 --> 00:25:56.200
a funnel, right, and it's all visible and it's all metrics.
553
00:25:56.240 --> 00:25:57.079
It makes it so much.
554
00:25:57.039 --> 00:26:01.240
Easier, and it removes it eliminates the power politics of it. Yeah,
555
00:26:01.279 --> 00:26:03.839
like you said, somebody can't say, oh, you're being mean
556
00:26:03.920 --> 00:26:06.440
to me. They must not like me. It's like, well, no,
557
00:26:06.960 --> 00:26:09.519
your metrics are red, and I love you to death.
558
00:26:09.559 --> 00:26:11.000
But like, if you're going to sit in this seat,
559
00:26:11.000 --> 00:26:12.519
if you're going to occupy this role, if you're going
560
00:26:12.559 --> 00:26:15.480
to keep cashing this check, it requires that you be
561
00:26:15.519 --> 00:26:19.079
able to turn bees metrics yellow and then ultimately green.
562
00:26:19.319 --> 00:26:21.160
And if you can't do that, it doesn't mean that
563
00:26:21.160 --> 00:26:22.519
we don't like you, and it doesn't mean you're not
564
00:26:22.519 --> 00:26:25.319
a wonderful person. It just means you can't occupy this seat,
565
00:26:25.440 --> 00:26:29.119
you can't stay in this role. Similarly, what projects should
566
00:26:29.160 --> 00:26:31.759
we do? Why do you always pick tenis project instead
567
00:26:31.759 --> 00:26:35.680
of mine. Well, because the projects that she suggested turn
568
00:26:35.720 --> 00:26:37.759
our red metrics yellow and the yellow metrics ren The
569
00:26:37.799 --> 00:26:40.279
projects you suggested have nothing to do with any of
570
00:26:40.319 --> 00:26:43.440
them red and yellow metrics on the scorecard. Right. This,
571
00:26:43.519 --> 00:26:47.440
by the way, will also protect teams from the bosses.
572
00:26:48.000 --> 00:26:50.680
So I'm talking now to all the usan's out there,
573
00:26:51.039 --> 00:26:54.440
So the CEOs, the founders, the leaders, we oftentimes are
574
00:26:54.480 --> 00:26:57.720
the worst offenders at throwing shiny objects at our people,
575
00:26:58.119 --> 00:27:00.480
at going to an event, at coming to something frankly
576
00:27:00.559 --> 00:27:03.759
like this and seeing getting all these like amazingly great
577
00:27:03.799 --> 00:27:06.319
ideas and taking all of these notes. And I'm begging
578
00:27:06.400 --> 00:27:08.839
you before you go back and you tell your people
579
00:27:08.839 --> 00:27:11.880
to go and implement this stuff, I ask you what
580
00:27:12.759 --> 00:27:15.759
metrics are red and yellow that what you're implementing are
581
00:27:15.759 --> 00:27:17.680
going to turn green? And if you don't know the
582
00:27:17.720 --> 00:27:19.359
answer to that, we got to get these other things
583
00:27:19.440 --> 00:27:22.720
in place first before we jump into the tactics. Okay,
584
00:27:23.160 --> 00:27:25.240
that's we always want to make sure that we have
585
00:27:25.759 --> 00:27:28.960
this flywheel to plug the tactics into, not that we're
586
00:27:28.960 --> 00:27:32.079
just practicing random acts of marketing and chasing shiny objects.
587
00:27:32.079 --> 00:27:34.519
So it protects you from the politics. It protects you
588
00:27:34.559 --> 00:27:37.559
from the shiny objects, and it just gets you operating
589
00:27:37.599 --> 00:27:39.880
more strategically and objectively.
590
00:27:40.079 --> 00:27:42.880
I would just ask audience to just reflect for a moment.
591
00:27:43.000 --> 00:27:44.599
And you know, God, look at Mira.
592
00:27:44.720 --> 00:27:47.559
How many of us are practicing random acts of marketing
593
00:27:47.559 --> 00:27:50.400
and chasing shiny objects? Right? I think a lot of us.
594
00:27:50.319 --> 00:27:52.880
Do that until we don't. Right, So only all of us,
595
00:27:52.920 --> 00:27:56.519
by the way, all because again, all your high performance individuals,
596
00:27:56.559 --> 00:28:00.400
we see opportunity everywhere. It's what makes us great. We
597
00:28:00.480 --> 00:28:03.599
need sometimes to be protected from ourselves, and so these
598
00:28:03.640 --> 00:28:05.200
processes are going to do that as well.
599
00:28:05.440 --> 00:28:08.559
So let's talk about the third dimension of creating a
600
00:28:08.599 --> 00:28:13.079
really scalable, marketable, valuable company whether we want exit or not,
601
00:28:13.400 --> 00:28:17.200
but bankable profit. So a lot of entrepreneurs, especially early on,
602
00:28:17.240 --> 00:28:20.440
they forget about paying themselves, or we forget about paying ourselves.
603
00:28:20.440 --> 00:28:22.279
Maybe we're just running the business out of our pocket.
604
00:28:22.319 --> 00:28:23.480
And at the end of the day, I got some
605
00:28:23.519 --> 00:28:25.599
money in my pocket. I'm okay, I paid all my bills,
606
00:28:25.599 --> 00:28:27.720
I made payroll this month, and I still got some
607
00:28:27.759 --> 00:28:30.240
money in my pocket. You know, that's not going to
608
00:28:30.279 --> 00:28:33.279
create a sustainable or marketable company. So what do we
609
00:28:33.359 --> 00:28:38.319
mean by really designing bankable profit into our business and
610
00:28:38.400 --> 00:28:40.839
into the whole way we construct and operate our business.
611
00:28:41.160 --> 00:28:43.160
Now, I continue to believe that the ultimate sign of
612
00:28:43.160 --> 00:28:47.079
a healthy business is not revenue, it's not valuation, it's
613
00:28:47.119 --> 00:28:52.119
not NPS. It is that company's ability to distribute large,
614
00:28:52.400 --> 00:28:55.000
fat chunks of cash. And people are going to fight
615
00:28:55.160 --> 00:28:56.640
me on this, and they're going to say no, no,
616
00:28:56.680 --> 00:28:58.440
It comes down to are you achieving your mission and
617
00:28:58.480 --> 00:29:03.920
things like that. There, effectiveness as a leader is measured
618
00:29:04.400 --> 00:29:08.240
in free cash flow, period because it is the measurement
619
00:29:08.440 --> 00:29:12.319
of number one inflows, So are people actually paying for
620
00:29:12.359 --> 00:29:16.440
the work that you're doing, while also simultaneously measuring your
621
00:29:16.480 --> 00:29:19.640
ability to effectively allocate and be a good steward of
622
00:29:19.680 --> 00:29:22.680
the resources that you've been given. Right, So, you have
623
00:29:22.799 --> 00:29:25.759
to create enough value in the marketplace such that people
624
00:29:25.799 --> 00:29:29.880
want to give you of their hard earned resources, and
625
00:29:29.920 --> 00:29:31.799
then now that you have them, you need to steward
626
00:29:31.839 --> 00:29:36.240
them effectively. And the outcome of that is there's profit leftover. Now,
627
00:29:36.279 --> 00:29:38.359
what you choose to do with that profit is up
628
00:29:38.400 --> 00:29:41.920
to you. But I'm simply saying that if you don't
629
00:29:41.920 --> 00:29:44.119
have anything to distribute at the end of the day,
630
00:29:44.160 --> 00:29:46.559
it either means that nobody's giving you money or you're
631
00:29:46.599 --> 00:29:48.599
not a very particularly great steward of the money that
632
00:29:48.640 --> 00:29:52.759
you're receiving. So bankable profit is essential. Now, there's seasons
633
00:29:52.759 --> 00:29:54.160
in the business where we're going to have less and
634
00:29:54.240 --> 00:29:56.720
seasons where we're going to have more. I get that,
635
00:29:57.039 --> 00:30:01.160
But the goal should be bankable profit distri beatable cash.
636
00:30:01.480 --> 00:30:03.799
So how do we get there? You said it, I
637
00:30:03.799 --> 00:30:05.319
mean step number one is to make sure that you're
638
00:30:05.359 --> 00:30:08.640
paying yourself. Got a buddy of mine, Mike mccallowits, wrote
639
00:30:08.680 --> 00:30:10.880
a great book on this called Profits First, and that
640
00:30:11.000 --> 00:30:13.480
is essential. I remember when I started my first business.
641
00:30:13.720 --> 00:30:16.160
I mean I didn't know that I was supposed to
642
00:30:16.160 --> 00:30:18.359
pay myself a salary. I kind of thought that paying
643
00:30:18.359 --> 00:30:20.000
yourself a salary is what you did if you were
644
00:30:20.000 --> 00:30:22.039
a wage earner. And I'm not a wage earner. I'm
645
00:30:22.039 --> 00:30:24.200
a business owner. I don't pay myself a salary. I
646
00:30:24.240 --> 00:30:27.880
take distributions. And so practically, what did that mean. Well,
647
00:30:27.880 --> 00:30:29.359
it meant if we had a good month, I took
648
00:30:29.359 --> 00:30:30.799
out too much, and if we had a bad month,
649
00:30:30.839 --> 00:30:33.359
I was freaked out and starving to death. And thankfully
650
00:30:33.440 --> 00:30:36.240
I had a good mentor who said Ryan you're an idiot.
651
00:30:36.720 --> 00:30:39.279
Pay yourself a salary. You know you're doing the work
652
00:30:39.279 --> 00:30:42.119
of a CEO. Pay yourself a salary at a bare minimum,
653
00:30:42.200 --> 00:30:44.079
pay yourself enough to live on so you don't need
654
00:30:44.119 --> 00:30:46.400
to worry about bills. I remember the first salary I
655
00:30:46.440 --> 00:30:48.839
paid myself was ten thousand dollars a month. I remember
656
00:30:48.839 --> 00:30:51.799
thinking at the time I could never imagine needing any
657
00:30:51.839 --> 00:30:54.079
more than ten thousand dollars a month. Well guess what
658
00:30:54.440 --> 00:30:57.480
for kids and embraces and private school and Disney vacations
659
00:30:57.480 --> 00:31:00.680
and soccer camps. Suddenly ten thousand wasn't enough anymore. And
660
00:31:00.920 --> 00:31:02.839
you know, and now on good months, we still had
661
00:31:02.880 --> 00:31:06.559
distributions in addition to the salary, so it is fine.
662
00:31:06.799 --> 00:31:09.319
But I didn't have a process in place for managing
663
00:31:09.359 --> 00:31:11.559
cash flow for doing the distribution. So again I'm back
664
00:31:11.559 --> 00:31:14.440
in the feast and famine mode. So it said like
665
00:31:14.880 --> 00:31:17.279
you should give yourself pay raise. So one of the
666
00:31:17.319 --> 00:31:19.880
first things that you could and should do as a
667
00:31:19.920 --> 00:31:22.319
business owner to make sure that you have bankable profit
668
00:31:22.359 --> 00:31:24.960
is simply to pay yourself first. It's amazing. If you
669
00:31:25.000 --> 00:31:27.079
make that decision, the money has a way of showing up.
670
00:31:27.599 --> 00:31:32.799
Because an optimistic entrepreneur's ability to spend will always outpace
671
00:31:32.839 --> 00:31:36.000
their ability to earn. This again, we see opportunity everywhere.
672
00:31:36.000 --> 00:31:38.559
When we expect all opportunity to have an ROI, oftentimes
673
00:31:38.559 --> 00:31:42.160
we're right, oftentimes we're wrong. The way that you ensure
674
00:31:42.400 --> 00:31:45.119
that there's some leftover for you is you pay yourself first.
675
00:31:45.359 --> 00:31:47.200
So that's the very first thing that you need to do.
676
00:31:47.599 --> 00:31:50.640
Beyond that, the other way that you increase your profitability
677
00:31:50.680 --> 00:31:53.039
is you need either need to lower your expenses or
678
00:31:53.039 --> 00:31:55.440
you need to increase your average client value. That's how
679
00:31:55.480 --> 00:31:57.599
we do that. Most of the time people focus on
680
00:31:57.680 --> 00:32:00.599
lowering of expenses. It obviously has a lot. You can
681
00:32:00.640 --> 00:32:03.359
only ever lower expenses to zero, and you really can't
682
00:32:03.359 --> 00:32:06.440
do that because you need some people going. So we
683
00:32:06.519 --> 00:32:09.000
do some things. I can tell you a very tactical
684
00:32:09.039 --> 00:32:11.039
thing that we do at least once a quarter that
685
00:32:11.079 --> 00:32:14.799
I'll tell everybody to do. We sit out an email
686
00:32:14.920 --> 00:32:16.839
to all of our leaders, anybody in the company who
687
00:32:16.839 --> 00:32:19.559
has a credit card, and the subject line is this
688
00:32:19.839 --> 00:32:23.559
stops now. I'll tell you if you send that subject
689
00:32:23.599 --> 00:32:25.960
line to anybody in your company, they're going to open it,
690
00:32:26.200 --> 00:32:28.839
all right, that's going to freak them out and What
691
00:32:28.920 --> 00:32:31.240
it basically says is, Hey, as it stands right now,
692
00:32:31.279 --> 00:32:33.400
we're currently spending too much money on stuff that we
693
00:32:33.400 --> 00:32:36.200
don't use. And so I want everybody to evaluate their
694
00:32:36.279 --> 00:32:39.000
credit card statement, you know, pull it out, sort it
695
00:32:39.000 --> 00:32:41.359
from highest to lowest. I want you to make a
696
00:32:41.400 --> 00:32:43.519
list of all the things that you know that you
697
00:32:43.519 --> 00:32:45.359
can cut immediately, make a list of the things that
698
00:32:45.400 --> 00:32:46.759
are a question mark, and make a list of the
699
00:32:46.799 --> 00:32:49.000
things that you should keep. Let's have a meeting. I'll
700
00:32:49.000 --> 00:32:51.039
buy the pizza, and let's add up everything that we
701
00:32:51.079 --> 00:32:53.960
can cut. Every time we do this, we save about
702
00:32:54.000 --> 00:32:56.240
five figures a minimum of five figures ten thousand dollars
703
00:32:56.279 --> 00:32:57.599
a month, except when it's more.
704
00:32:57.880 --> 00:32:59.799
Yeah, well that's gotten all the more important because there
705
00:32:59.839 --> 00:33:03.160
are so many sasses and AI tools out there you
706
00:33:03.279 --> 00:33:05.039
don't and a lot of them don't cost that much
707
00:33:05.079 --> 00:33:07.599
by themselves, but they started adding up and you try
708
00:33:07.640 --> 00:33:09.319
it out, didn't work, but you're still paying for it
709
00:33:09.359 --> 00:33:11.200
by the month. And this stuff can really build up
710
00:33:11.200 --> 00:33:12.279
if you don't keep your eye on it.
711
00:33:12.480 --> 00:33:14.680
Yeah, and if you and as your team grows, a
712
00:33:14.680 --> 00:33:17.240
lot of people are making their own decisions, which is good, right.
713
00:33:17.279 --> 00:33:19.200
We want to empower people to make decisions, but very
714
00:33:19.240 --> 00:33:21.119
often they make a decision that made sense in the moment,
715
00:33:21.559 --> 00:33:24.759
and sometimes these people will then leave the company, but
716
00:33:24.880 --> 00:33:26.039
their decisions linger.
717
00:33:26.680 --> 00:33:26.880
Right.
718
00:33:26.920 --> 00:33:29.039
So now we've got like these orphan tools in software
719
00:33:29.039 --> 00:33:30.519
that it was like, I don't even know what that is,
720
00:33:30.960 --> 00:33:33.200
and so yeah, every ninety days you just need to
721
00:33:33.240 --> 00:33:35.359
do a quick audit, check it out, make sure that
722
00:33:35.400 --> 00:33:39.079
it's there. But the most valuable thing that you can
723
00:33:39.119 --> 00:33:41.519
do if you want to increase your bankable profit is
724
00:33:41.599 --> 00:33:45.160
I mean, you can raise your prices, but looking to
725
00:33:45.359 --> 00:33:47.599
add things like how do we add things to the
726
00:33:47.640 --> 00:33:50.200
sales so that we can, you know, improve our average
727
00:33:50.240 --> 00:33:52.559
client value. That's the thing that a lot of people
728
00:33:52.640 --> 00:33:54.880
don't think to do. That's one of the easiest things
729
00:33:54.880 --> 00:33:56.960
that you can do is just get the people you
730
00:33:57.039 --> 00:33:59.440
already got to be worth more money. All of that
731
00:33:59.480 --> 00:34:01.799
just dropts to the bottom line. The other thing that
732
00:34:01.839 --> 00:34:04.240
we look to do, big question we ask is how
733
00:34:04.279 --> 00:34:07.680
do we improve the customer experience? So we'll also do
734
00:34:07.720 --> 00:34:11.519
an audit. I mentioned before the importance of documenting your
735
00:34:11.559 --> 00:34:15.320
fulfillment engine, visualizing what you do with the customer after
736
00:34:15.320 --> 00:34:17.320
they're done. If you will then go back and audit
737
00:34:17.360 --> 00:34:20.000
that and go stage by stage and say, how do
738
00:34:20.039 --> 00:34:22.519
we make sure that this is a seven star experience,
739
00:34:22.519 --> 00:34:24.119
so not just a five star How do we make
740
00:34:24.119 --> 00:34:26.719
sure it's a seven star experience. If you'll go step
741
00:34:26.760 --> 00:34:30.519
by step, stage by stage, you'll always find opportunities to
742
00:34:30.599 --> 00:34:33.880
wow your clients. Why your customers. When you do this,
743
00:34:34.519 --> 00:34:36.800
you decrease the chance that they're going to refunder cancel,
744
00:34:37.239 --> 00:34:39.199
which again that's going to drop straight to the bottom
745
00:34:39.199 --> 00:34:42.559
line and increase bankable profit. And you increase the chance
746
00:34:42.599 --> 00:34:44.840
that they're going to leave a positive review, which is
747
00:34:44.880 --> 00:34:47.800
going to help create more customers and clients. And you
748
00:34:47.880 --> 00:34:50.199
increase the chance that they're going to send you referrals,
749
00:34:50.679 --> 00:34:53.480
which is ultimately the only way that any company is
750
00:34:53.480 --> 00:34:55.639
going to be able to grow at scale. If we
751
00:34:55.840 --> 00:34:58.199
can't get to the point where our customers are creating
752
00:34:58.239 --> 00:35:01.960
more customers for us, and then our businesses will cap out.
753
00:35:02.039 --> 00:35:05.159
We've got to get word of mouth going, because in
754
00:35:05.199 --> 00:35:09.119
any business, the cost of acquisition just gets too dang high,
755
00:35:09.159 --> 00:35:11.679
and we will never get word of mouth unless our
756
00:35:11.679 --> 00:35:16.400
customer experience is remarkable, worthy of remark worthy of talking about,
757
00:35:16.480 --> 00:35:21.119
unless we're producing amazing outcomes. So yes, cut your expenses. Yes,
758
00:35:21.159 --> 00:35:24.599
look at raising your prices, but ultimately, if you want
759
00:35:24.639 --> 00:35:28.920
to create bankable profit, create an amazing customer experience, and
760
00:35:28.960 --> 00:35:31.719
you do that by auditing that fulfillment engine and asking
761
00:35:31.880 --> 00:35:35.639
is this seven stars? And then lastly, but firstly, pay
762
00:35:35.679 --> 00:35:36.280
yourself first.
763
00:35:36.599 --> 00:35:38.280
Yeah. I also want to follow up there on what
764
00:35:38.320 --> 00:35:41.559
you said about increasing average customer value because I think
765
00:35:41.639 --> 00:35:43.360
a lot of us when we you know, we know
766
00:35:43.400 --> 00:35:45.800
we need more revenue, we're trying to control expense to
767
00:35:45.840 --> 00:35:47.719
gets then we know so we I just need more
768
00:35:47.719 --> 00:35:50.960
customers and that gets more and more expensive. And we've
769
00:35:50.960 --> 00:35:53.880
got all the existing customers that could be if we
770
00:35:54.000 --> 00:35:56.679
bring them value, they're going to be willing to transform
771
00:35:56.719 --> 00:35:58.519
more value to us. So I mean that seems to
772
00:35:58.559 --> 00:36:00.599
be the deeper view and the more we action ideal
773
00:36:00.679 --> 00:36:02.199
is I just need more customers, So I'm just going
774
00:36:02.280 --> 00:36:04.119
to go out and do more of X, and that's
775
00:36:04.159 --> 00:36:05.719
not that sustainable in the long run.
776
00:36:06.039 --> 00:36:08.119
Yeah, here's two questions I would have you asked before
777
00:36:08.119 --> 00:36:09.599
you go out there and try to get more customers.
778
00:36:09.920 --> 00:36:12.840
Do this math? Number one, how big would my business
779
00:36:12.880 --> 00:36:15.440
be and how much more profitable would it be if
780
00:36:15.480 --> 00:36:18.400
every customer we had was worth twice as much. Just
781
00:36:18.480 --> 00:36:20.280
run the numbers on that, right, So if you did
782
00:36:20.320 --> 00:36:23.519
a million dollars last year top line, and let's say
783
00:36:23.559 --> 00:36:26.559
you dropped two one hundred thousand of that to the
784
00:36:26.559 --> 00:36:28.559
bottom line, so you had a twenty percent profit margin.
785
00:36:29.079 --> 00:36:30.360
Well if now, all of a sudden, all of your
786
00:36:30.920 --> 00:36:34.000
customers worth twice as much. Now, you did two million dollars,
787
00:36:34.320 --> 00:36:37.199
but let's say you did it on basically the same expenses, right,
788
00:36:37.199 --> 00:36:39.960
They're just were magically worth more. You didn't drop two million,
789
00:36:40.000 --> 00:36:42.440
two hundred thousand, you drop one point two million, right,
790
00:36:42.519 --> 00:36:44.719
I mean, and typically the now maybe the cost of
791
00:36:44.719 --> 00:36:47.639
fulfill is more, but it's going to be marginal. Okay,
792
00:36:47.760 --> 00:36:49.960
So how much bigger would your business be and how
793
00:36:50.000 --> 00:36:52.039
much more cash would you have to distribute to yourself
794
00:36:52.079 --> 00:36:54.760
and other stakeholders if every customer you had was worth
795
00:36:54.760 --> 00:36:57.480
twice as much. Now, not every business can double their
796
00:36:57.519 --> 00:37:00.280
average client value average customer value, but some can and
797
00:37:00.320 --> 00:37:02.719
many can increase of fifty percent. So that's the first
798
00:37:02.760 --> 00:37:05.239
question I'd ask. Second question, I would ask how much
799
00:37:05.280 --> 00:37:08.440
larger would your business be if you had every single
800
00:37:08.519 --> 00:37:10.840
customer that you had ever sold, if every single one
801
00:37:10.840 --> 00:37:12.920
of them were still getting you money today, if nobody
802
00:37:13.000 --> 00:37:16.079
had ever left, nobody had ever refunded, and everyone we're
803
00:37:16.079 --> 00:37:18.679
still giving you money. How much bigger would your business be?
804
00:37:19.239 --> 00:37:21.159
If you will ask those questions and you will run
805
00:37:21.199 --> 00:37:23.480
that math, you will realize, Holy crap, I never need
806
00:37:23.480 --> 00:37:25.840
to get another new customer again. I just need to
807
00:37:25.880 --> 00:37:27.360
get the ones that I got given me more, and
808
00:37:27.400 --> 00:37:28.559
I need to get the ones that I got to
809
00:37:28.599 --> 00:37:31.079
never leave. Focus on those, and you're gonna have massive
810
00:37:31.079 --> 00:37:33.719
bankabill profit because the single biggest expense you will ever
811
00:37:33.840 --> 00:37:36.880
incur as a business owner is the cost of acquiring
812
00:37:36.920 --> 00:37:37.880
another new customer.
813
00:37:38.199 --> 00:37:41.159
This focus on profit altogether, because I think it's easy
814
00:37:41.159 --> 00:37:43.079
to get caught up in revenue. I've been guilty of
815
00:37:43.119 --> 00:37:45.000
this myself, and I love but I think it was
816
00:37:45.079 --> 00:37:47.639
Vern Harnish, in one of his book on the Rockabeller Principles,
817
00:37:47.639 --> 00:37:51.519
said that revenue is just vanity. Revenue numbers are pure vannys.
818
00:37:51.599 --> 00:37:53.519
Profit is at the end of the day, it's profit
819
00:37:53.559 --> 00:37:55.880
that drives the business and grows the business, and that,
820
00:37:56.000 --> 00:37:57.960
you know, gives you a reason to be in business,
821
00:37:58.000 --> 00:37:59.960
right And I love what you said. Are looking at
822
00:38:00.039 --> 00:38:04.159
internally to increase the bottom line rather than constantly thinking
823
00:38:04.199 --> 00:38:06.039
I'm just going to reach out and get more, find
824
00:38:06.079 --> 00:38:08.679
more and more customers, create more of this, you know,
825
00:38:08.880 --> 00:38:10.760
chase all the shiny balls in the world and for
826
00:38:10.800 --> 00:38:13.400
all the spaghetes. Well, instead of looking at my core business,
827
00:38:13.840 --> 00:38:16.360
how can I increase average customer value and how can
828
00:38:16.400 --> 00:38:19.880
I increase customer retention? That's so powerful. So I do
829
00:38:19.960 --> 00:38:22.280
want to ask you a question about the whole world
830
00:38:22.360 --> 00:38:25.000
of digital marketing. Obviously you're one of the leaders in
831
00:38:25.039 --> 00:38:28.039
that field with Digital Marketer, and you originally founded the
832
00:38:28.119 --> 00:38:32.480
Trafficking Convergence Conference, a very successful live conference in it today,
833
00:38:32.920 --> 00:38:35.440
so that world is going through a lot of transformation.
834
00:38:35.719 --> 00:38:38.400
AI is kind of changing everything as we watch and
835
00:38:38.920 --> 00:38:42.000
participate in it. And I know your colleague and part
836
00:38:42.000 --> 00:38:45.119
of Olden Frasier also one of our summit co sponsors
837
00:38:45.199 --> 00:38:48.199
and interview guests. It's just amazing how he's out there,
838
00:38:48.320 --> 00:38:51.000
you know, on the leading edge of developing integrating these
839
00:38:51.039 --> 00:38:53.719
tools to do really interesting things. But we do need
840
00:38:53.760 --> 00:38:56.079
to be pretty nimble and innovative today if we're going
841
00:38:56.119 --> 00:38:58.800
to stay abreast to what's going on in digital marketing.
842
00:38:58.800 --> 00:39:00.000
So I wonder if you could just talk about it,
843
00:39:00.159 --> 00:39:02.400
because it could look to a new entrepreneur's just so
844
00:39:02.599 --> 00:39:05.280
complex and changing themselves fast, and how do I possibly
845
00:39:05.400 --> 00:39:06.880
learn this stuff and get a handle lot of it?
846
00:39:07.159 --> 00:39:10.159
So what I'm doing is I'm asking myself, how can
847
00:39:10.199 --> 00:39:13.519
I use AI to make myself and my team more effective?
848
00:39:13.719 --> 00:39:16.719
At from an output perspective, so at doing the work
849
00:39:16.760 --> 00:39:19.400
that we do so that we can free up bandwidth
850
00:39:19.760 --> 00:39:23.360
to leverage the other kind of AI from a customer
851
00:39:23.360 --> 00:39:26.719
facing perspective, and the other kind of AI is actual intelligence.
852
00:39:27.320 --> 00:39:30.000
I'm seeing a lot of brands looking to leverage AI
853
00:39:30.519 --> 00:39:33.800
customer facing, like they want to leverage AI to make
854
00:39:33.840 --> 00:39:35.800
it more efficient so that they don't have to talk
855
00:39:35.840 --> 00:39:38.280
to their customers, they don't have to deal with their customers. Right,
856
00:39:38.880 --> 00:39:42.000
we're doing the exact opposite. I want to get as
857
00:39:42.119 --> 00:39:45.639
efficient as we can in all of the non customer
858
00:39:45.719 --> 00:39:48.960
facing things so that I can take those efficiency gains
859
00:39:49.000 --> 00:39:54.400
and pour them back into incredibly inefficient customer facing things.
860
00:39:54.639 --> 00:39:56.719
And I think the combination of that is what's going
861
00:39:56.760 --> 00:39:59.360
to work. Because I believe that we're in We're already
862
00:39:59.360 --> 00:40:01.480
starting to see it. You know, there's a lot of
863
00:40:01.480 --> 00:40:04.360
bots and stuff where everybody now can tell if you're
864
00:40:04.400 --> 00:40:07.079
talking to an AI thing, and you know, stuff like that,
865
00:40:07.159 --> 00:40:09.400
and you're starting to see the rejection of that. And
866
00:40:09.440 --> 00:40:12.119
there's times when it makes sense and it's fine where
867
00:40:12.440 --> 00:40:14.000
if I'm on a website, I'd rather just be able
868
00:40:14.039 --> 00:40:15.480
to poke around and find it myself than talk to
869
00:40:15.519 --> 00:40:17.000
another person. But if I want to talk to a person,
870
00:40:17.039 --> 00:40:18.719
that I want to talk to a person, I don't
871
00:40:18.719 --> 00:40:20.360
want to talk to a fake person that's a robot
872
00:40:20.360 --> 00:40:24.480
pretended to be a person. So let's use AI as
873
00:40:24.519 --> 00:40:27.079
the tool that it is. You're a lumberjack and you've
874
00:40:27.079 --> 00:40:29.119
had an AX and somebody just handed you a chainsaw.
875
00:40:29.400 --> 00:40:32.519
If you don't take the chainsaw because you're scared of
876
00:40:32.559 --> 00:40:34.719
the chainsaw, and you just are like, no, the AX
877
00:40:34.840 --> 00:40:38.199
is for me, you're a freaking idiot, all right, I'm sorry.
878
00:40:38.559 --> 00:40:40.559
And that's where a lot of business owners they're like,
879
00:40:40.559 --> 00:40:42.599
I'm scared of this new technology. I don't think it's
880
00:40:42.639 --> 00:40:45.320
a tool. Just like if you were a graphic designer
881
00:40:45.360 --> 00:40:48.639
in the past and Photoshop and Adobe Illustrator comes along,
882
00:40:48.679 --> 00:40:50.239
if you don't use these tools, you're going to get
883
00:40:50.320 --> 00:40:52.400
left behind. So for me as a marketer, for me,
884
00:40:52.440 --> 00:40:54.760
as a writer, for me, I use AI all day,
885
00:40:54.760 --> 00:40:58.159
every day, I'm having conversations with it. I'm using it
886
00:40:58.239 --> 00:41:03.400
as the ultimate research assistant, the ultimate I don't want
887
00:41:03.400 --> 00:41:05.599
to say person because it's not, but the ultimate kind
888
00:41:05.599 --> 00:41:07.800
of buddy that I can bounce ideas off of, Hey,
889
00:41:07.840 --> 00:41:09.320
how would you do this? What do you think about this?
890
00:41:09.800 --> 00:41:12.480
So using it from that perspective, whereas in the past
891
00:41:12.519 --> 00:41:14.880
you would have just had to google it or ask
892
00:41:14.920 --> 00:41:18.599
somebody in your team to do it amazing. I'm using
893
00:41:18.599 --> 00:41:21.280
it not to write, but to help me come up
894
00:41:21.280 --> 00:41:23.920
with prompts and ideas for what to write about. So
895
00:41:24.039 --> 00:41:26.800
I think it's great for the first ten percent, then
896
00:41:26.800 --> 00:41:28.159
I want to make sure I'm doing the middle, and
897
00:41:28.199 --> 00:41:29.960
then it's great at the end. So if like from
898
00:41:29.960 --> 00:41:32.159
a ten eighty ten perspective, help me with a ten percent,
899
00:41:32.199 --> 00:41:34.800
I'm going to do the a middle eighty thinking, and
900
00:41:34.840 --> 00:41:37.239
then the last ten percent. I also think it can
901
00:41:37.239 --> 00:41:40.199
be great on the inverse. I'm going to bring the
902
00:41:40.199 --> 00:41:42.880
first ten percent of the idea, you do the middle,
903
00:41:43.360 --> 00:41:45.119
and then I'm going to go clean it up. So
904
00:41:45.199 --> 00:41:47.280
I think as long as you're operating with it that
905
00:41:47.400 --> 00:41:50.519
way and it's never one hundred percent of anything, then
906
00:41:50.559 --> 00:41:51.960
you're doing a really really good job.
907
00:41:52.119 --> 00:41:54.920
So I talk just a little bit about you know,
908
00:41:54.960 --> 00:41:57.880
whether people are selling online products or you know some
909
00:41:57.960 --> 00:42:00.960
kind of widgets, physical project or whatever business is not
910
00:42:01.079 --> 00:42:05.360
online today, and so you know, in whatever format that takes,
911
00:42:05.360 --> 00:42:08.280
we have some kind of funnel that's happening. Right We're
912
00:42:08.280 --> 00:42:11.000
getting leads in some way, We're nurturing leads in some way,
913
00:42:11.280 --> 00:42:14.599
we're presenting them with an offer. Hopefully we're getting convergence,
914
00:42:14.639 --> 00:42:17.239
and then we're doing fulfillment, nurturing them and working on
915
00:42:17.280 --> 00:42:20.000
customer attention and all of that. So, if you have
916
00:42:20.079 --> 00:42:22.880
funnels and our audience out there, and I'm sure many
917
00:42:22.920 --> 00:42:26.280
of times the funnel stops working or you learn everything
918
00:42:26.320 --> 00:42:28.559
you couldn't build the funnel, it's not working. And so
919
00:42:28.840 --> 00:42:30.760
if your funnels are out what are some of the
920
00:42:30.840 --> 00:42:34.159
key things to look at? And from a digital marketing perspective,
921
00:42:34.159 --> 00:42:35.719
what are the key things to look at?
922
00:42:35.840 --> 00:42:38.840
I think that the visual of the funnel is to
923
00:42:38.920 --> 00:42:42.000
a certain degree broken right now. And so when most
924
00:42:42.000 --> 00:42:44.079
of the time when we're thinking about the funnel, what
925
00:42:44.119 --> 00:42:46.440
we're thinking about is we're going to bring people in
926
00:42:46.960 --> 00:42:50.519
and we're going to kind of nurture them through until
927
00:42:50.559 --> 00:42:52.239
they are ready to buy, and we're going to walk
928
00:42:52.280 --> 00:42:55.079
them through a journey and through a process until they're
929
00:42:55.119 --> 00:42:57.320
ready kind of in our you know, in our time.
930
00:42:57.719 --> 00:42:59.559
And that's got a couple problems. Number one, the customer
931
00:42:59.599 --> 00:43:02.719
journey is non linear. Prospects have auctions. They can learn
932
00:43:02.760 --> 00:43:05.039
about you in so many different ways. They can bounce
933
00:43:05.079 --> 00:43:06.760
all around. They could do their own Google searching that,
934
00:43:06.760 --> 00:43:08.599
they can check you out on YouTube, they can ask around,
935
00:43:08.679 --> 00:43:11.480
they can you know, ping people on social media. They're
936
00:43:11.519 --> 00:43:13.920
moving in and out of your funnel, hopping all around.
937
00:43:14.000 --> 00:43:16.280
It's way more like the old like shoot some ladders.
938
00:43:16.400 --> 00:43:18.320
They'll get right up to the top, see something and
939
00:43:18.360 --> 00:43:20.079
then go all the way back down, see something else,
940
00:43:20.119 --> 00:43:22.039
and pop right back up to the top. So from
941
00:43:22.039 --> 00:43:24.400
that perspective, the funnel is anything but linear. The other
942
00:43:24.480 --> 00:43:27.559
issue is that the traditional classic funnel of let's bring
943
00:43:27.599 --> 00:43:30.000
somebody in for something free, then let's offer them something
944
00:43:30.039 --> 00:43:32.639
kind of inexpensive, and then a little bit more expensive,
945
00:43:32.639 --> 00:43:33.920
and then a little bit more expensive. We're going to
946
00:43:33.960 --> 00:43:36.599
march them up low to high up the value ladder.
947
00:43:37.159 --> 00:43:41.199
That works, and it kind of mirrors normal human relationships
948
00:43:41.239 --> 00:43:44.039
like of dating. Right, So it's kin nice to meet,
949
00:43:44.079 --> 00:43:47.440
you want to go grab coffee go dinner. The problem
950
00:43:47.519 --> 00:43:50.400
is that traffic costs are so freaking expensive we simply
951
00:43:50.400 --> 00:43:53.760
can't wait until these leads are nurtured to be able
952
00:43:53.800 --> 00:43:56.400
to pop the question. I mean, when traffic costs are
953
00:43:56.400 --> 00:43:59.400
super cheap, you can afford to wait. Now we can't.
954
00:43:59.840 --> 00:44:01.719
And so what a lot of marketers have done is
955
00:44:01.719 --> 00:44:03.880
they flip the funnel and they've said, Okay, well, what
956
00:44:03.880 --> 00:44:05.400
I'm gonna do is I'm gonna bring everybody in. I'm
957
00:44:05.400 --> 00:44:08.000
gonna make my best offer, my most expensive thing, day one,
958
00:44:08.039 --> 00:44:10.360
and I'll march them back down. Now. The problem with
959
00:44:10.400 --> 00:44:12.760
that is you are gonna sell the people who are
960
00:44:12.800 --> 00:44:14.800
ready now. The people who are ready to buy now,
961
00:44:15.079 --> 00:44:17.719
you're gonna get them. Problem is that represents about three
962
00:44:17.760 --> 00:44:19.800
to six percent of your audience at any given time,
963
00:44:20.079 --> 00:44:22.159
and everybody else you're gonna piss off an alien eight
964
00:44:22.440 --> 00:44:24.880
and that three to six percent, more times than not,
965
00:44:25.119 --> 00:44:28.440
is not enough to completely offset all of your costs.
966
00:44:29.000 --> 00:44:31.960
And because you've alienated everybody else, you're not gonna be
967
00:44:32.000 --> 00:44:34.519
able to nurture them, and so you're gonna lose all
968
00:44:34.559 --> 00:44:37.199
of that. So we can't go low to high. We
969
00:44:37.199 --> 00:44:39.719
can't go high to low. So here's the key to
970
00:44:39.800 --> 00:44:42.519
marketing today, and it's why funnels we need to think
971
00:44:42.559 --> 00:44:45.159
about them a little bit differently. The key to marketing
972
00:44:45.159 --> 00:44:48.920
today is we need mechanisms to determine who are the
973
00:44:48.920 --> 00:44:50.960
three to six percent who are ready to buy now,
974
00:44:51.639 --> 00:44:53.719
so that we can make our best offer to them today,
975
00:44:54.159 --> 00:44:56.639
and we can nurture the ones who are qualified who
976
00:44:56.679 --> 00:44:59.199
will likely buy later, but who are not ready. That
977
00:44:59.400 --> 00:45:02.440
is the great game of marketing, and so in business
978
00:45:02.480 --> 00:45:04.440
we really kind of need to have two funnels. We
979
00:45:04.440 --> 00:45:05.920
need to have a ready now funnel that's going to
980
00:45:05.960 --> 00:45:07.679
get the people ready now. We need to have a
981
00:45:07.719 --> 00:45:10.599
later funnel that'll nurture the later people. And we need
982
00:45:10.639 --> 00:45:14.000
to have mechanisms in place to get the ready now
983
00:45:14.000 --> 00:45:15.679
people to raise their hand and say I'm ready now,
984
00:45:16.159 --> 00:45:18.800
and have the later people not do that and not
985
00:45:18.880 --> 00:45:21.159
get in funnel. So we don't think about it so
986
00:45:21.239 --> 00:45:22.920
much as a funnel anymore. We think about it as
987
00:45:22.920 --> 00:45:26.320
a popcorn popper. If you've ever pop popcorn, the kernels
988
00:45:26.360 --> 00:45:28.840
go in the pot and they're popping at different times.
989
00:45:29.199 --> 00:45:32.599
Heat is applied evenly right, and yet some of them
990
00:45:32.599 --> 00:45:35.320
pop almost immediately at true now people. And what a
991
00:45:35.360 --> 00:45:37.440
lot of marketers do is they get a couple of
992
00:45:37.440 --> 00:45:39.199
pops and they turn off the heat and they wonder
993
00:45:39.199 --> 00:45:41.639
why their funnel stopped working well? And you didn't nurture
994
00:45:42.039 --> 00:45:43.920
other marketers when have done pop fast enuff. They crank
995
00:45:44.000 --> 00:45:46.320
up the heat and they burn a bunch of them
996
00:45:46.679 --> 00:45:49.559
and they wonder why their funnel didn't work right. What
997
00:45:49.599 --> 00:45:51.079
we need to do is we need to figure out
998
00:45:51.119 --> 00:45:52.880
who are those people that are ready to pop now?
999
00:45:53.000 --> 00:45:54.719
And there's a tactically, there's a lot of ways to
1000
00:45:54.719 --> 00:45:57.280
do that. We can do hand raiser campaigns, we can
1001
00:45:57.320 --> 00:46:01.360
do better audience segmentation, but that's where marketing is today.
1002
00:46:01.880 --> 00:46:06.159
That's the game. Who is ready now, Let's make our
1003
00:46:06.199 --> 00:46:09.239
best offer to them. Who is not? Let's nurture them.
1004
00:46:09.559 --> 00:46:12.440
We can't treat everybody the same anymore. It just doesn't
1005
00:46:12.440 --> 00:46:13.159
work well.
1006
00:46:13.199 --> 00:46:16.239
That is absolutely gold. And that's exactly the place and
1007
00:46:16.360 --> 00:46:18.840
attention and the confusion that where I've been sitting, my
1008
00:46:18.920 --> 00:46:21.079
team's been sitting, and you have a framework, but I
1009
00:46:21.079 --> 00:46:23.840
think you call it a raise your hand campaign, which is great.
1010
00:46:23.880 --> 00:46:25.280
How do you get those folks that are right now
1011
00:46:25.360 --> 00:46:29.639
to identify themselves? Absolutely? Because I was always terrified of
1012
00:46:29.679 --> 00:46:32.880
pissing everybody off to try to get an offer in
1013
00:46:32.880 --> 00:46:34.800
front of those people, right, yeah.
1014
00:46:34.760 --> 00:46:36.280
Yeah, And I can give you a quick tip to
1015
00:46:36.320 --> 00:46:37.440
come up with that if you want me to.
1016
00:46:37.800 --> 00:46:39.079
Sure, absolutely have time.
1017
00:46:39.079 --> 00:46:40.599
All right, here's the question that you need to answer.
1018
00:46:41.079 --> 00:46:43.960
Under what circumstances will the right prospect always buy? This
1019
00:46:44.039 --> 00:46:45.840
is the question that you got to answer. There's two
1020
00:46:45.840 --> 00:46:47.840
elements to that number one right prospect. So you got
1021
00:46:47.840 --> 00:46:51.000
to know who your ideal client is. And when I
1022
00:46:51.039 --> 00:46:54.079
say ideal, I don't mean just somebody who you can
1023
00:46:54.199 --> 00:46:57.079
sell to. I'm talking about your TENX buyer. Who are
1024
00:46:57.079 --> 00:46:59.320
the people who are likely to spend ten times more
1025
00:46:59.360 --> 00:47:02.639
than the average, So not just your general avatar. Who
1026
00:47:02.639 --> 00:47:04.159
are the people that are going to go all the
1027
00:47:04.159 --> 00:47:06.119
way to the tip tip top of your value ladder.
1028
00:47:06.119 --> 00:47:08.639
You need to know who those people are. So a
1029
00:47:08.719 --> 00:47:12.880
digital marketer, it's marketing agencies and consultants. It's not just
1030
00:47:12.920 --> 00:47:15.519
your random one off marketers. It's not your startup people.
1031
00:47:15.800 --> 00:47:19.880
It's marketing agencies and consultants. At the scalable company, it's
1032
00:47:19.920 --> 00:47:23.360
companies that are in the two to eight million dollar range. Okay,
1033
00:47:23.400 --> 00:47:26.000
we just with like ten to I think forty employees,
1034
00:47:26.360 --> 00:47:29.880
Like we just know who that ideal client is, so
1035
00:47:29.960 --> 00:47:33.239
that's right client. So under what circumstances will the right
1036
00:47:33.280 --> 00:47:34.119
client always buy?
1037
00:47:34.719 --> 00:47:34.800
So?
1038
00:47:34.960 --> 00:47:40.199
Now what circumstances? That's the triggering event. Every business has
1039
00:47:40.239 --> 00:47:44.880
a triggering event that causes somebody to enter into that
1040
00:47:45.000 --> 00:47:48.840
I'm ready now moment. Everybody has it, right, Like, I'll
1041
00:47:48.840 --> 00:47:50.760
give you a very simple example that I really understand.
1042
00:47:51.039 --> 00:47:54.679
Let's say I sell very high end winter coats. Okay,
1043
00:47:54.800 --> 00:47:57.360
that's what I sell as a business, and I'm located
1044
00:47:57.400 --> 00:48:00.519
in Austin, Texas. Now, if you don't know much about Austin, Texas,
1045
00:48:00.880 --> 00:48:03.280
we have two seasons. We have scalding hot and we
1046
00:48:03.320 --> 00:48:05.599
have frickin freezing and almost nothing in the middle. It's
1047
00:48:05.639 --> 00:48:08.079
like the opposite of California, right where it's like always
1048
00:48:08.079 --> 00:48:11.000
seventy three, Like in Austin it's like one hundred and
1049
00:48:11.000 --> 00:48:13.360
fifty three, and it's like, you know, in the winter,
1050
00:48:13.440 --> 00:48:17.559
it's like two. Okay, So a triggering event could be, hey,
1051
00:48:17.599 --> 00:48:20.039
it's winter time, but what do you do when it ain't.
1052
00:48:20.480 --> 00:48:22.599
Now you have to ask ourselves, what are some other
1053
00:48:22.639 --> 00:48:25.480
reasons that somebody might buy? What could be somebody's taken
1054
00:48:25.519 --> 00:48:28.679
a trip to Australia in the summer, because it's winter there, right,
1055
00:48:28.960 --> 00:48:32.679
So asking that question under what circumstances and understanding the
1056
00:48:32.679 --> 00:48:35.840
triggering events. If you know the circumstances under which the
1057
00:48:35.880 --> 00:48:38.840
right person will always buy, now you can structure campaigns
1058
00:48:39.079 --> 00:48:42.039
and it could be an email campaign. Where again, if
1059
00:48:42.039 --> 00:48:44.679
I'm not company that I have those codes, Im'd send
1060
00:48:44.719 --> 00:48:47.559
an email campaign saying planning a trip to South America. Now,
1061
00:48:47.599 --> 00:48:50.320
the people who are will respond, the people who are
1062
00:48:50.360 --> 00:48:52.239
it will forget about and ignore it and not be
1063
00:48:52.239 --> 00:48:53.920
annoyed at all because it was just such a simple
1064
00:48:53.960 --> 00:48:55.840
short email. I could take that and apply that to
1065
00:48:55.880 --> 00:48:58.639
Facebook copy all in all, So, if you can answer
1066
00:48:58.679 --> 00:49:01.960
the question under what circumstance the right prospect always buy,
1067
00:49:02.639 --> 00:49:05.159
you put that messaging out there, the right prospects will
1068
00:49:05.199 --> 00:49:08.360
raise their hand, they will signal that they're ready. Now
1069
00:49:08.800 --> 00:49:13.599
you then filter them off, market to them separately everybody else.
1070
00:49:13.960 --> 00:49:16.519
You just leave them be, leave them alone until they
1071
00:49:16.519 --> 00:49:19.079
are ready. Now that's the secret to marketing today.
1072
00:49:19.480 --> 00:49:21.719
More goals and more diamonds. I hope people are picking
1073
00:49:21.800 --> 00:49:23.760
up on this our audience and where can they find
1074
00:49:23.760 --> 00:49:27.000
out more access more as a scald from you? Where
1075
00:49:27.000 --> 00:49:27.519
should they go?
1076
00:49:27.840 --> 00:49:30.280
Yeah, So, if you're really liking the marketing stuff. Digital
1077
00:49:30.320 --> 00:49:32.679
marketer dot com is where we talk about that. If
1078
00:49:32.719 --> 00:49:34.360
you're at the point where you know that growth is
1079
00:49:34.360 --> 00:49:36.639
not enough and you need help with scale, then scalable
1080
00:49:36.679 --> 00:49:39.920
dot co scalble dot co is the company. So we
1081
00:49:39.960 --> 00:49:41.840
kind of have you at both ends. You're ready to grow,
1082
00:49:41.840 --> 00:49:43.679
we get Digital Marketer, you're ready to scale, we got
1083
00:49:43.840 --> 00:49:47.280
We've got Scalable and my own YouTube if you want
1084
00:49:47.320 --> 00:49:50.719
to check me out Ryan Dice Official on YouTube. I
1085
00:49:50.840 --> 00:49:53.360
just post a lot of free videos there sharing the
1086
00:49:53.360 --> 00:49:55.519
stuff that's working in what I know, and so tons
1087
00:49:55.519 --> 00:49:56.559
of free content there as well.
1088
00:49:57.199 --> 00:49:59.480
Well, well, thank you so much. So Ryan, I know
1089
00:49:59.559 --> 00:50:01.719
you have a a really amazing free gift that a
1090
00:50:01.760 --> 00:50:03.920
lot of what you've been sharing today is available in
1091
00:50:03.920 --> 00:50:06.000
this gift that people audience can share. So could you
1092
00:50:06.039 --> 00:50:07.360
tell us about that? Sure?
1093
00:50:07.440 --> 00:50:10.119
So I wrote a book called Get Scalable that's available
1094
00:50:10.119 --> 00:50:12.360
on Amazon, and it costs what a book costs. That
1095
00:50:12.400 --> 00:50:14.599
one of the biggest benefits of the book is if
1096
00:50:14.599 --> 00:50:16.159
you buy the book, then I give you all the
1097
00:50:16.159 --> 00:50:18.519
tools and resources and stuff like that we use to
1098
00:50:18.760 --> 00:50:21.559
build out operating systems, plus a digital copy of the book.
1099
00:50:21.960 --> 00:50:23.239
But I don't want to tell everybody to go out
1100
00:50:23.280 --> 00:50:24.679
there and buy a book. If you don't know so,
1101
00:50:24.920 --> 00:50:28.400
if you'll just go to get scalable dot com forward
1102
00:50:28.440 --> 00:50:31.559
slash resources and we'll drop the link below. You don't
1103
00:50:31.559 --> 00:50:33.159
even have to buy the book. Just go there, into
1104
00:50:33.159 --> 00:50:35.199
your name and email address and you'll get access to
1105
00:50:35.239 --> 00:50:37.079
all the resources as well as a digital copy of
1106
00:50:37.079 --> 00:50:39.880
the book, no purchase or anything required.
1107
00:50:40.519 --> 00:50:42.840
Was wonderful. Thank you so much. Yeah, this has just
1108
00:50:42.880 --> 00:50:45.559
been golden and you've added so much value to our
1109
00:50:45.599 --> 00:50:48.239
company and everything you've been talking about is the journey
1110
00:50:48.239 --> 00:50:50.000
that we've been on for a number of years now
1111
00:50:50.000 --> 00:50:52.760
and your guidance has just been incredibly valuable. So I
1112
00:50:52.800 --> 00:50:55.880
really encourage people I know our ideas to take advantage
1113
00:50:55.920 --> 00:50:57.719
of that free gift and it really check out your
1114
00:50:57.760 --> 00:50:59.599
work at Scalable and digital Marketers.
1115
00:50:59.719 --> 00:51:00.800
Thank you appreciate that.
1116
00:51:01.199 --> 00:51:04.039
Thank you, Roan be Well. Thank you for joining me
1117
00:51:04.079 --> 00:51:08.239
on the Radical Responsibility podcast. Remember, real change happens when
1118
00:51:08.280 --> 00:51:11.199
we commit to our growth, face our challenges with compassion,
1119
00:51:11.280 --> 00:51:14.800
and stay open to transformation. If you found this episode helpful,
1120
00:51:15.039 --> 00:51:17.480
I encourage you to subscribe and help us spread the
1121
00:51:17.519 --> 00:51:21.480
message of healing and personal empowerment. Stay grounded, stay present
1122
00:51:21.679 --> 00:51:23.400
and stay true to you. Take care