Transcript
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Craig Sewing explains his media company, its B2B-first model, current revenue, and the acquisition process he is exploring. He asks how to choose the right buyer and partner for the business.
Hey, Alex.How are you?
Craig Sewing here, CEO, creator, founder of The American Dream TV.We produce national TV shows centered on real estate, lifestyle, and culture.So, think about it as you know, we seen seen shows like Million Dollar Listing, Flip or Flop, Chip and Joanna.We're the opposite of that.We're real content, real professionals.So, the way you'd look at it is we're a B2B model first before we're a B2C show with real estate professionals.So, we create content in the medium of TV shows and then we repurpose that in social.So, we're 16 million gross revenue, 4 million EBITDA.The question what is stopping us from where I'd like to double our EBITDA.Honestly, the I know the answer, there's nothing.There's things that we're doing that are going to improve that.
Right.
So, better a little bit better churn.We need to advance a little bit more of a robust product set.Integrate AI, we're starting to do that.My question for you is we are in the path of acquisition.I have an investment banker, we're about a week in.And uh when you
We're in the process.
You want to sell?Okay.
We're moving.And um I guess my question for you is how do you determine your your dance partner?Like uh one of your guys, Justin outside, said, you know, uh do you have key man risk?And I like, yeah, kind of, but I think it's key man reward.Like, I still got fight me.I want to slay more dragons.So, we have offers that we can look at for, right?It's a good twist.Uh but we have different paths we can go.We're a media company.There's a real estate potential buyer.There's the portals like your Zillows.And then of course PE, which is of interest.So, how do you going down this path for the first time really, uh kind of decide where you want to go?
Alex outlines his framework for evaluating a sale: people first, then product vision, then economics. He also explains why entrepreneurs often struggle after selling and why autonomy matters, especially with strategic versus financial buyers.
Um So, I I I work through people, product, deal.So, who are the people I'm dealing with?If I don't like them, nothing else matters.
Culture, yeah.
Right.If I like them, then I move on to product, which is like what what basically are we aligned on the vision?Like, what this will be as a product in the future.Do I Do I want to run towards that?Does that feel heavy?Does that feel light?Right?And then the third thing is, okay, if I like the people and I like where we're going, I like the destination, I like the company.Uh do I like the economics?And that's pretty much how I thought through it.
Yeah.The money for us is secondary.I bought my partners out, so I own 100% of the company.The company's worth quite a bit.So, for me, it's more about the strategic alignment, the cultural alignment.But uh we have we have paths, so it's it's an exciting moment for us, but you know, I'm I'm pretending as if nothing's going to happen.We have We have a We have a napkin story.Yeah.So, it's really hard to imagine, you know, when you do something that started on a napkin and got to this level.
Yeah.
So, that's where we are.
I get it.It's It's uh I think we have to have I can't remember the math, but it's it's like one in 10,000 businesses sell to an institutional buyer.So, the statistics are not on anyone's side.And so, a lot more people start processes than finish processes, and a lot of processes are uh underwhelming.I'll put it that way.Once you get into diligence, they start beating you up on terms and all these other things.Um and so, if you are Let me ask you a different question.Why do you want to sell?
Same thing your guy asked me.And and quite frankly, it's not easy one to answer.You know, I think for most entrepreneurs, it's kind of a a dream, you know, to say
to leave or do you want to stay on?
I want to stay on.You know, it's That's why I don't think it's a key man risk.What's that?
the whole company now, right?
Right.
Okay.So, you're making 4 million a year.
to have to stay on anyway.Right?There's I don't think there's anybody who's going to buy us and just say, oh, ship has sailed because I am involved with obviously strategy, sales, things like that.But I also don't want to leave.I'm 46.I still got a lot of fight in me, so I'm not really eager to leave.
Any reason that you're even doing it to begin with?
Well, again, I think that any entrepreneur's dream is to to sell their company.I bought my partners out and it gets a little lonely.And we're we're very much a David story, you know?We we came from nothing.So, the idea of joining a Goliath and having a bigger partnership, I mean, just one of a many examples I could give.Uh like Zillow, for example.
soul-crushing.
All right.
I'm just because you join a Goliath, but you also feel the weight of Goliath, which is all of the bureaucracy and the hierarchy and the political games.And you'll no longer I'm assuming you're selling majority, right?
I would assume.
Yeah.And so, your say is going to matter all of them.So, the you have fight left in you.You will probably run out your non-compete or whatever your earn-out period is, and then you will immediately have 20 ideas because you'll be so miserable during that time period.And I don't say this because I don't think that partnerships can work.Not at all.It's just that it is a very different game once you become acquired.Like, you're functionally an employee.And you have to be cool with that, and a lot of people aren't.And so, I just say, um a lot of entrepreneurs are more depressed after they sell than before.And so, I would just be like, this is I'll I'll cross to to emphasize the point like, you better be damn sure about you giving up your kid if you're not sure what the parent's going to do with
it.
Well, then I have a question for you.Would that take you more down the path of PE because you're now still building for something bigger?
It'll They'll give you more autonomy than a strategic would, most likely.Again, everything is deal specific.It depends like, there's a big massive it depends on this.Um but a financial buyer is going to be very much how They'll let you do whatever the hell you want as long as the numbers keep going up.And as soon as it doesn't hit whatever their model of projections are, they're going to take the company over, and it's going to be really miserable.
The discussion shifts to the reasons someone might sell, including taking cash off the table and reducing family risk. Alex emphasizes honesty about motives and says a sale is valid if the goal is financial security rather than vague softer reasons.
So, that's that's that's straight.Again, it's like if you want to take cash off the table, then that would be a completely acceptable answer to me.They're like, I just don't know.There's all this AI stuff.I just want to de-risk my family.I know that I can get this number, and I'll get whatever 40 million bucks whatever the number is.After taxes, I got 30 plus whatever I've saved up.I could stick that in a bond and live on a million and a half a year, not even think about it for the rest of my life.And then I can go play at whatever I want to do.
And that's certainly a part of it.I mean, it's life-changing money.
Yeah.And I think that's a completely acceptable response.And if you just said that, then I'd be like, have fun, man.Go do it.But if it's all the other things that make me say, well, if it's not that, then be sure because I think a lot of the things that you said, and I would this is and I know I gotto get to the other ones, but um I think if you can be and it's hard with, you know, 100 of your closest friends in front of you.Um but if you can look at yourself in the mirror and be incredibly honest with yourself about what you're really doing it for rather than what sounds good.Cuz just being like, dude, I just want the money.I want to take out like take take the risk off my family.I'd be like, yeah, dude.
Go do it.You worked for it.You earned it.You built something that was worth something.Get, you know, let them pay for it.If you want all these other kind of softer thing softer as in less harder to find, I get it.Then I would I would think much harder about it.
Thanks, brother.
100% man.Congratulations.
Hey Alex.Um my name is Miguel.I own a solar company, solar sales organization.So we don't install.We recently opened a roofing and an H vac division.We're doing 6 million in revenue right now and really my goal is to well, what's happening with the solar industry is the tax credit is going away.So I'm diversifying within the home services business and I want to go all in in H vac.But don't destroy what's making money right now.So my biggest constraint is me my time basically focus on the solar and not building H vac.
Miguel explains his solar, roofing, and new HVAC businesses and wants to shift toward HVAC without hurting current revenue. Alex advises that technician supply, not sales, will likely become the main constraint and that the business needs a stronger hiring and training funnel.
So the decision that you're wanting to make is
I want to exit the H vac company in
That doesn't really exist right now.
No, it it already exists.
What what percentage of that is H vac?
It just has started.So yeah.Yeah.
Right.So the brand new company that barely exists right now is the one you want to exit.
I want to build it and exit, yes.
Got it.Um Okay.And you make call it five of your 6 million a year comes through solar and the other one is through hotchpotch?Okay, got it.Um why do you have the roofing?
We were already doing roofing for a lot of solar customers and
Are you just selling it or you doing the delivery, too?
With roofing, we're doing everything.
Got it.And solar, you outsource and H vac, you
Do everything.
Got it.
So, roofing and H vac, we do everything.Solar, I outsource the installation.
Got it.Okay.Um, so you want to basically you're trying to jump from one vine to the next, right?Right.
Really because of the market risk of Yeah.
So, I'm going to bet that your constraint with H vac is soon going to be getting the H vac technicians to do the thing.And so, you'll likely be able to just basic basically as supply increases, transition guys one at a time over from one team to the next.Um, and then basically have a smooth like reallocation towards the thing that has a higher enterprise value.
What period of time like will will be your goal on
I think it's going to be about I mean, training a sales team on this is not that hard.
Yeah.
So, I think you're going to be supply constrained faster than you're going to be demand constrained.
On the technician side.
Yeah.So, you're actually going to be like you're what you don't have right now the problem that you're going to have.Um, where where are my home services, bros?Okay, yeah.So, H finding a bunch H vacs that's going to be easy, right?Bunch of great guys, they'll just fall right in your lap.Um, I don't know what you guys are doing.
And so, you're going to What you need to have is I'm sure right now how big's your solar sales team?
35 people.
35, okay.So, um, you probably have the beginning of a true kind of talent acquisition process.You will need to have that same level of sophistication and funnel on the supply side.Which is how am I going to recruit, hire, manage, train, uh, sorry, did the order wrong there, but uh, recruit them, uh, onboard them, uh, train them, and then manage them, you know, up or out.Uh, that same funnel on the H vac tech side.And that's going to be the next big concern in the business.I don't think if you if you know how to sell door-to-door, it's very easy to get business.Um that will be the constraint of the business very soon.So, I don't think there's really any issue for you to like retrain the the door the door-knocking guys.That's not going to be tough.That's like a week.
Okay.And will you do it like now just installation?Will this LTV to CAC still work the same?Is it better?
we're testing it, but I do think it's easier to sell HVAC than than solar.Yeah.
Okay.So, if it's easy to sell, the sales guys is not going to be the issue.It's going to be delivering all the all the machines and installing them.
Awesome.
Shelby describes taking over a promotional products business with old-school systems and cash flow pressure from rapid demand. Alex walks through prioritizing progress, then introduces a broader lesson on mapping business workflows so AI can automate specific tasks.
Thanks.
what you got to focus on.
Thanks.
Hey Alex, I'm Shelby Claymore.I just acquired a business literally 2 weeks ago.It's from my parents.
You bought it for them?
I bought it from them.
From them?Got it.I was like, that's weird.Okay, got
Yeah, you got it.
Like usually wealth goes the other way.
Yeah, for sure.They built it over the last 35 years.It's very old school.Everything's on paper.It's in a file in a filing cabinet.Nothing is like like process systems, whatever.Um they do about 1.1 or they well, we 1.1 revenue a year.Our EBITDA is probably around like 230 to 250.Um my biggest constraint right now is
What do you guys sell?I'm sorry.
Oh, I'm so sorry.I skipped over that.Um promotional products.So, we do embroidery, screen print, anything that you have merch-wise, we do it in-house.I really want to be a production facility.So, I want to scale from 1 million to in 5 years to 10 million.And I know that's like a huge goal well, to me, but um what would you do first?I guess is my question.
What is stopping
What's stopping you right now?
Um manpower.
Okay.So, getting people to do the work.
my personal brand has literally the moment I announced it, it is just like influx, which is like so much gratitude and everything and I'm trying to get the quotes out so fast so they don't go somewhere else, clearly,right?And I'm just like we don't really have like the cash flow, so it's like I know I'm in there every day all day from beginning to end.I have my team from my other business there, so it's just like, what do we do next?
said it was manpower, right?But, you said cash flow.
Yep.
Okay.So, it's only going to be one of these, so which one is it?
Well, I guess manpower.
Let me ask you a different question.If all those orders give you the money ahead of time, would you be able to get the people to deliver?
Yes.
Okay, so it's a cash flow issue.
Yes.
Okay.So, which then goes up to it an offer problem.So, when these people had you know, you have all these quotes and whatnot,
Yeah.
what are you asking from them?
Payment up front before we order.
Okay.Is that what you're currently doing?
Yeah, it depends on the actual person though.So, like if it's a school, it's a net 30.If it's a bigger business, they want a net 30.Um, but if it's anybody or any business that doesn't need a net 30, we say we don't order inventory unless you pay up front.We haven't had any kickback and a lot of the quotes that we sent have been working.
Yeah, okay.So, you are collecting cash right now.
Yes.
And so, you have enough cash to do the manpower thing now.
I think the biggest question for me, maybe it's just cuz like I'm early onset in this game, right?I'm walking into old school business that a lot of it wasn't accounted for, so literally the data that I do have, it's you don't really know.It's questionable, right?And I don't want to dig myself in a hole that I can't get out of.Um, I don't think it's necessarily I think it it really is I I know I probably just need to hire before like the whole quote, hire before you're ready, um, to just help fulfill all these orders cuz ifI can't, they're going somewhere else.
So, first off, congrats.
Thank you.
Um, I think everybody here probably over here can relate to the pain that you're going through right now, which is like, I don't want to sacrifice reputation, but I don't want to lose this once in a chance.And I think the honest answer is you got to do the best you can.Um, it it would be great to get all of these people to be recurring, you know, recurring customers.
Yeah.
Um, also scaling it when you already have broken systems is going to just make your pain worse.
Mhm.
And so, it's a bit of like, pick your problem.So, either we miss out on the opportunity and then we take the time to, you know, build build out the systems, automate a bunch of stuff, get things into computers, all that fancy business.Um, or we uh use the existing systems which will probably break under the pressure uh and you basically you're going to have to be willing to put a lot of elbow grease in which I get that impression thatyou're willing to.Yeah.Um, but just set the expectation for yourself that you're probably going to have a really hard next 18 months.
Okay.
And once you have those customers in, if you did a good job, they're going to keep ordering
Yeah.Yeah, for sure.Yeah.
And so you're still going to have to fix the plane while it's flying.Um, from a prioritization perspective, the um Bill Ackman said this when he was going through one of his harder times and I just I just like this a lot as a mental frame which is um just make progress.
Okay.
Just take it one bite at a time.That's all you can do.
Yeah.
Right?And just And I would I would um I don't know if we talked about Did we talk about workflows versus org charts today at all?All right, I'm going to I'll brief seg way it off and affect everybody.So, in this world of AI that we're in now, um which make no mistake we are we are in it.It is not about to happen.We are in it.If you're not in it, you're you should be concerned.Um,
uh there's the traditional way of thinking about how to scale a business which is dots and circles with lines, right?And that is purely because humans are only able to handle about five to eight people at max before their intellectual capacity maxes out.They just can't handle more people.Which when you really think about what a business requires, it's actually a pretty big impediment to business working that you have to have these kind of these these things with these 10 little digits and we have We onlyhandle five things at a time, right?Like that would be really bad for Imagine a computer ran that way.It could only do five things.Like it would it wouldn't really do very much.
Right.
Right?And so we have to transition our entire thinking about organizational uh design to all based on throughput with workflows.And so, I'll give you a visual.So, imagine and this is beautiful for your business cuz it's literally a manufacturing business.I mean, functionally, right?
Um, the way the old way of kind of doing this is you've got circles underneath of circles, you know, all this, right?But if we take one of these circles and say, okay, what does this circle do, right?That circle does these set of tasks.But we only organize it this way because of ourselves.But what really happens is that we have some sort of attention on the front end.We've got eyeballs.We add labor and raw materials.
And then we have money that comes out the other side.And in order to make that happen, there's like 167 of these that go from eyes to money, right?And so, one of the most powerful exercises that you can do, and I strongly recommend everyone here do this, is like take a big whiteboard or an Excel sheet, whatever way you think, and actually write step-by-step every singlething that happens in the business from attention to money.
Okay.
That actually becomes the workflow of the business.Now, under each of those words, there's going to be subtasks.Like even if it's like, okay, well, we, you know, we get a lead.There's a lot of stuff that goes into getting a lead.Like you made content, right?So it's like, what is the content process?It's like, well, there's an idea.
Mhm.
So how does that How do ideas occur, right?Which is uh maybe you look at trends, maybe it's you live your life, whatever that thing is.There's two or three things.And it's like, okay, when I have the idea, then there's some sort of headline, there's some sort of script, there's some sort of uh recording production, there's some sort of uh thumbnails if you're on YouTube.Like there's all And then how does the thumbnail process work?Well, we look at 10 other thumbnails.Uh we look at color schemes, we match to our brand, we put our face here, we like smiles versus what like there's this big list.And so each of these, as you dive deeper and deeper, becomes the the the tactical tasks that must be done.And when you get it to that level, that's when you go to AI and say, just tick off this one.
And then tick off this one.And then tick off this one.And then that is how you will be able to start automating pieces and pieces of the business.
Perfect.Thank you.
Congratulations again.
Thank you.
Yes, sir.
Appreciate the time.I'm glad the mic's down here.It makes the short king feel tall.
Mitch shares his wellness business for first responders and his struggle between staying a firefighter and expanding his impact. Alex frames it as a trade-off between present contentment and future meaning, encouraging him to choose the life he wants to look back on.
Dude, you look super tall.
Uh so my name is Mitch Gorley.Uh, I'm a third generation firefighter and fitness coach.I sell a wellness program that basically empowers first first responders to prioritize their physical mental health.Uh, we're currently doing about 1.7 million dollars revenue.I couldn't answer this question.I don't have a revenue goal.Uh, I didn't know what my goal was and that was a big part of what I was trying to find clarity here this weekend.One of the lovely ladies in the room actually helped me answer the question.Um, and it is uh, I don't have a number but I want to help 100,000 first responders make these changes.So I think it's actually like a tangible number of how many people I want to impact.Impact has always been a goal for me.Um, you already pointed to it.Like I think the biggest thing that is stopping me right now is being able to do more because I still work as a firefighter.
Um, you know, I make 1/50th of my salary as a firefighter but like I love my job.It provides a lot more to me than just a paycheck and it's a big part of my identity.It's who I've been since I've been 18 years old.So it is like how do you walk away from something that you love and is fulfilling when I know that like my impact as an individual and impact being the goal is so much greater in this capacity thanit is tangibly putting water on a fire.So that's the that's the dilemma that I'm kind of wrestling with and have been for a very long time.
Well, um, this is a really great question.Um, you I think the reason that you wrestled with it is one of the eternal questions that has no correct answer.So there's a number of them like when do I push versus pivot, like push through it versus keep going.When do I like, um, how much do I spend versus invest or save?Like what's the right answer?Well, we know the extremes are pretty tough.Like if you never spend a dollar of what you make, you saved your money your whole life and then you die, that's probably not the right way.And then on this side you have you spend every dollar you make and you never save anything for a rainy day, that's probably not the right way.And so it's a it's a dichotomy that has to be managed rather than a problem to be solved.
And so with you specifically, I think what you're you're wrestling with is the contentment of day-to-day with the meaning and impact of the future when you look back.
Mhm.
And I would say that they are a lot of ways not and sometimes they overlap, but most of many times they don't at all.Like you look at Steve Jobs, he wasn't particularly pleasant as a person, at least from all the accounts that history and movies and books and you know, whatever.Wasn't that friendly, doesn't seem like he was that happy of a guy, but man did he make a impact.
Mhm.
Right?And so I think it's what life do you want to live?If you're 85 years old and you look back, if you helped 10,000 people, would you be dissatisfied?
No.I think my one of my like frames and the things that I've held one of the quotes that I hold dear is like, if my existence on this planet makes one person breathe easier,
Yeah.
my life has existed for a reason.
Yeah.And I think it's just like again, like I feel like I have to be in the mud with these people and I have been in the mud and that's why I care so deeply is cuz like my wholeorigin story is like, "Dude, I get it.The job is hard.It wears you down."Like I I I I understand that and I feel like it's very hard for me to be the guy that's like, "I see I see you."when it's like, "Bro, you're sleeping in your own bed every night."Like you were me, but you're not me and I think that's the biggest battle.
That's totally in your head.It will not that will not impact your ability Like how many gyms do you think I owned when I started Gym Launch?Zero.I had six and then I sold them to go all in on Gym Launch.
Mhm.
Because for me, I thought I could help a lot more gym owners and I obviously have much more of a meaning and impact skew than I do a contentment skew.I've been pretty public about that.
Mhm.
Um but that's what satisfies me.So, if you have a different calculus on that on that equation, I the only thing I can actually give you that like what can I actually like when I think of when I do these, I think what isthe first thing I'm going to change about their behavior?If you change nothing, there's no point in having the conversation, right?So maybe it changes somebody else here.But for us, right?Uh Um I think if if you cangive yourself permission
to do what you're currently doing, then a lot of the angst that you have would not go away, but it would go down.And so then you don't have like one of the things when I make a big decision is that I write out the decision-making framework so that if I start doubting again, I can reread my reasoning and then eventuallyit becomes a shortcut and then you stop thinking about it.
Mhm.
And so right now I feel like you're staying up at night being like I could make more impact, but I love my my my buddies and my job and all that, but I could make more impact, but Ilove my buddies.And then you made up some of these other reasons of like, well, they won't see me as legit.That's not true.But if you just like it, I think a you know, for many people a big portion of life is just liking their life.And so like you've kind of already won.And so it's just a question of like, can you decrease your time there?Like any further than you already have so that you still have that identity and that connection and then you can spend the majority like the rest of your time.To be fair, I know that like the hours are still pretty pretty gratuitous in terms of your ability to start businesses.
Um but I don't I think this like you will not get the right answer.That is that is my point.And there will be days if you if you walk down the path of I I walk away from being a fireman that you will regret that decision.And if you stay in it, you have nights every night where you regret that decision.
It's all the it's the whole dualistic life of like wanting to live both existences and say you knew both existences but having to pick a path.And I feel like that's where I'm at and I I know
You have a trade-off to make.
Mhm.And I think I know again like I knew there was a firefighter that stood and I was sitting at work when I saw it and there was a firefighter standing here with the same dilemma because it is thegreatest job in the world.I'm just going to say that.But behind this, but um you know, you basically said to him like do what makes you happy.And I
If that's what you want.Yeah.
Yeah.And then I think it's also So that like I I you were saying to him that like he was saying things to justify what he actually wanted to do and I think I know again like my impact isgreater doing the thing but it's just like the stories that I tell myself.
Yeah.What trade do you want to make?So one of my favorite frames from Layla's which problem would you prefer?You're going to have a problem either way.So it's complete myth that you're not going to have a problem with what either decision you choose to take.Right?The problem that you have if you get out of the fire men thing is that you might sacrifice some of the relationships.Like you might not see them as much.There's that.So it's like can we attenuate that?Can we can we make sure that we attend all of those regular things so that you can still have them in your life so you get a lot of the benefit without necessarily having to just sit in theyou know the firehouse or whatever.Right?More of the cost there is that you're not going to see the person whose life you saved or whose day you saved or whatever.
You're not going to have that.Is that trade that's the problem you're going to have and you're going to trade that for helping 10,000 more fire men.Right?On the other side if you stick with what you're currently what you currently have then you have the problems you you currently have which is feeling like you're not living up to your potential that you could help morepeople.I don't think there's a like I don't see a correct one here.It's a choice.
Right.
And I can't answer it now.
For sure.
But that would be the like that's the problem that you're going to have to pick which one you want.
Awesome.And this weekend was amazing.This is very weird cuz I had a question like what would Alex Hermosi answer this question for and I got it today.So thanks so much man.Appreciate it.
Jenny explains how her charcuterie business evolved into a coaching program for women and mothers, but growth has plateaued. Alex tells her to spend more on ads, build a cold acquisition process, and scale the funnel before worrying about the next ceiling.
Hi Alex.
Hi.
Totally trying not to black out right now cuz this is very cool.My name is Jenny Blackman.And two years ago I was a stay-at-home mom.We were surviving on my husband's income.He was a successful realtor real estate broker.And real estate market crashed so did our income.Bills started stacking.Freak out.I became an entrepreneur 11 years ago.Stepped away at a corporate not my thing.So for me I was like holy I'm going to have to go back to a 9 to 5.I had a toddler at home baby on the way.That was not an option.So I decided to start a traveling mobile charcuterie bar to go to weddings corporate all these things but super flexible cool different.Start that.Go viral right away.Awesome.Then I started having
right I went viral right away.It was wild.Like my first thing I put out was Come on.It was really crazy.So started that but what I realized very quickly is my inbox was filling up with other women literally around the world saying oh my God how'd you do this I want to do this too.I shot the gap.I said well it was really hard for me to start this so I'm going to create a course threw it up on stand store today it sold over 6,000 copies what was the price?47 bucks.47 bucks.So then I started realizing people were buying the course but then there was no accountability there was nobody to answer questions.I decided to start a coaching program.So it's a 10-week program where now I help 9-5 women mothers 2500 is my pif price but it's 3500.
So people it I have
Cut.So I had over 260 people go through this program in the past year.My first year I did 600k in revenue which for me as a stay-at-home mom was like holy what am I doing?It was awesome.But now I'm feeling like I'm plateauing.I'm trying meta I'm doing 200 bucks a day on ads I maybe have like five to seven creatives going at a time and I have one sales person who does one call a day four to five days aweek.So
Okay.One call?
One call a day.
That's wild.Okay got it.
So do you want to do more?
I want to do 5 million a year.
Great.So why don't you do more?
Do more?
What no but be real.I'm I'm not trying to like we can work through it.Like what's stopping you from doing more right now?You're spending 200 bucks a day.What's what's else like they're taking one call a day what's close close rate?
This is one thing I found out here is I do not have the right data but I would say our close rate is probably 40%.
Okay so deal every other day roughly.
Yeah.
Somewhere there.
Some days three to four people close a day just roller coaster.
only
one call.How is that possible?
I do group calls.
Okay.
My My leads are high, so I do group calls.
Yeah, got it.Uh but it's one call for a group of people.
Yeah.
Okay.So, uh you could spend more than $200 a day.
Yes.
How do we feel about that?
I feel great about it.I just don't know what the magic number is.
Well, the magic number is you keep putting money in until
Okay.Keep Keep Keep it rolling.Okay, perfect.
Yeah.
Yes.
Yeah.Yeah.You run it hard until the wheels fall off.
Okay.Yeah.
Um How's that feel?
It feels good.I also think I don't have enough creative going, you know, I get I think my return on ad spend is like a little over four something percent, so and it's just me doing it.
I'm guessing 4x is what you mean.
Yeah, yeah, yeah.Sorry.4x.Um so, that feels good.
Yeah.
But I don't know.I just feel like there's between not having enough sales people, not putting enough in ad spend.I just How do I go from 600k to 5 million?
Uh well, you you'll probably get to spending like 5,000 a day instead of 200
Okay.
to get there.Um because you're going to get some inefficiencies as you scale up because you're going to get into Like right now you have your warmest people who are coming in.
Yeah.
It's going to get progressively colder.I'll bet right now you have a warm sales process as in like the motion itself is built for people who kind of already know who you are.
Yeah.
That will not scale.And so, what we need to do or what you need to do, um is build a cold acquisition process.And like the easiest way is like if you can dodge a wrench, you can dodge a ball.If you can sell to cold, you can sell to warm, but if you sell to warm, it doesn't mean you can sell to cold.And so, we want to build a cold process, and if warm people go through it, they just get extra hot.
Yeah.
If they're cold and they go through it, they'll get lukewarm enough to buy.Right?So, think of it like a microwave.So, right now you're just serving ready-to-eat food that's already heated.We got to have a microwave in the system to heat them up.
Yeah.Makes sense.
That's what you need.
Awesome.Ready to light it up.
probably have like realistically, if it were me, I would build that process first.
Okay.
And then I would add gas.
Cool.Thank you so much.
Congratulations.
Carlo describes his wholesale and retail steak businesses, the strategic acquisition interest, and his fear of being capped. Alex helps him weigh the value of the offer against the risk and asks what future version of himself he wants to become.
Thank you.
Hey Alex.
Hello.
How you doing?Great to meet you.My name's Carlo Cruzzetti.Um I sell steak, a lot of it.
Sweet.
Um I have one company.One's a whole Well, it's one's a DBA.I'm in the wholesale end.
Are you more of a broker or do you grow the cattle and do all that too?
No, no, no.Everything comes in boxed beef from out west.
Okay.
So, I'm a manufacturer on one side
Uh-huh.
and I'm a retail um establishment on the other side.
E-commerce or brick and mortar?
Brick and mortar.
Okay.
Um the wholesale end does about uh does 20 million.
Okay.
My EBITDA is about 2.7.
Okay.Great.
And the reason why I know it I've been doing this as of late is because I've been approached.
Okay.
That business is kind of capped, right?I don't like to be capped.
Okay.
Um in the Why is it capped?In the food service industry
Uh-huh.
there's distributors are buying everybody up, all the big guys.You know, you have Sysco, US Foods, PFG.They're taking over the world.
Uh-huh.
So, when I used to have eight or nine customers, aka distributors, right?Now I'm like three and a bunch of little ones.So, with that they're all buying their own meat companies as well.But what's great is that I'm doing 2.7 in EBITDA.
20 million in sales.Now, retail side, I have a little 2,000 square foot building
Yeah.
and it does 10 million.
Amazing.
About 500 I don't know the real number yet because I share a lot of expenses back and forth.But I don't want to be capped.
So, being approached I've been approached before
Okay.
but just recently I've been approached so my whole idea of coming here has changed in the past couple weeks.Do I move forward with that and do I double down you know, on the other end?Now, I have there's more passion on that end too cuz I'm a fourth generation uh business owner.
Yeah.
And um there's not many of those left.
Yeah.
And and so my competition, I've seen them gone.I'm the only one left in my area.
Yeah.
So, part of me is like, all right, I am a thumb on the forehead on the wholesale end.Not that much passion.There's more passion on the other side.
Okay.
But do I move forward with one thing and double down and really grow the other side?So, I'm at a crossroads and it's just a recent thing.
Yeah.
So, that's where I'm at.
I'm going to go out on a limb here.It sounds like you're pretty decided.
Um well, 2.7
I've got this exit here.I don't like it.I'm capped.I have passion here.I want to expand and I'm so scared of it."Well, yeah, it's like you had all pros on one side and all cons in the other.So, what's the real question or what's holding you back?
I'm greedy.
Okay.
Yeah, like, you know, that's
Well, they'll pay you for the business.
Yeah.Yeah, but
They're They're going to give you
Yeah, they're they're they're I'm going through it right now and, you know, going through that process.If anybody's gone through that, it's
Harrowing, yeah.
Yeah, it's nerve-wracking.
Yeah, you're like, "Oh, I didn't know that's what my prostate looked like."
Yeah, yeah, it's nerve-wracking, but it's also it's a big change.
Yeah.
Um they probably want to keep me on board if that was the case.I'm assuming for about a year.I I would do that.I would do it for free cuz of the passion.But do I make that leap?
Passion for the wholesaling?
In general, I do.But my word is everything in this business, right?
that's fine.
And if I tell someone this is the way it is, I'm going to make sure it's everything I said it was.
Understood.
Yeah.
So, what's stopping you from selling it?
Greed.
What What Tell me more with this greed thing.
Well, it's a lot of money.It's 2.7 out of 20.
pay you a multiple on that, right?
Yeah, and it's strategic.It's a strategic acquisition.
they giving you?
What's that?
What multiple are they talking about?
Well, average is five.
Okay.
But being strategic, it's a venture capital firm that is um currently has like two or three years of putting assets together.
Okay.
And what I do is push control cutting, right?So, all the big food service distributors, they need that element.Some of them have them.Some of them don't.
Got it.
So, and one more thing I didn't mention.One
though?
What's that?
What's the multiple?
I think it's seven.
Okay.So, you get seven.All right, so uh let's just call it two and a half times seven, that's what?Uh What was it?Sorry, missed my math.I apologize.Yeah, okay, 17.Great.
17.
So, 17 million dollars.
One of the benefits though is that you're paying regular income right now, probably.
Mhm.
So, you get it at capital gains.So, it's kind of like add, you know, 20%ish back to that.So, it's closer to like 9 years of whatever the math is.9 or 10 years of uh of of income.
Mhm.
So, if you're capped, that's what you're giving up.And then with that money and all the time back, do you think you could grow this one to get to 2.7 in profit?
I do.It's soulless.
Yeah, I mean it just sounds like you said you're really passionate about it.It's a exciting thing.
Mhm.
Um I mean there is again no no right answer because what this comes down to is a risk question, which is entirely personal.
risk too is on that end
Yeah.
six 60% of the business
Yeah.
is one account.
On the retail side?
On the food service
food Yeah, got it.
So, that's that's the risk, right?So, any one day they could come in and say, "Hey, yeah, thanks a lot, Kyle.We loved you, but see you later."And I live with that every day.
Yeah.
And a lot of families who work for me.Like I care about that and I don't want that to happen.
Yeah.
Yeah.
Uh but back to the sale.
Yeah, yeah, yeah.
Uh so so I'm still I'm still struggling to figure out You said the greed thing, but that doesn't make sense cuz you're going to get uh you're going to get a payday loan on 10 years worth of income.So, like well, there's your greed.
It's a lot of work.It's been a lot of work, a lot of
You mean selling the company?
Uh building the company.
Yeah, they That's why they pay you.
Yeah.
Yeah.
Yeah.I'm I just something I'm battling.I'm at a
No, I I got you.I got you.Um the I there is no right answer.Um there is probably a right question, which is 10 years from now looking back, which one do you regret more?Not going for it.And I think underneath of that, which is like what person do I want to become?And which of these paths get me closer to that being that person?
You make You make it easy.
I'll be telling you it's nice hearing it on the other end.And um I had a different question, but since it was you, I figured I'd ask you the million-dollar one.So.
Hopefully that helped.
It did.Thank you.
Okay, appreciate you being
Mason shares how he grew a dental practice and now feels guilty about time away from his kids. Alex reframes the issue as an 'and' question, showing how hiring another associate could buy back time while preserving income and family priorities.
Hi, Alex.
Really good.Hello.
I'm Mason Haley.I'm from North Dakota.Um I'm a dental practice owner.In 2023 I took the practice over.It was doing 1.2 million in revenue.Now it's doing 3 million.
Amazing.
Thank you.We've gone from 48 operatories.I've brought in associate.I've cut myself out from 4 days to 3 days a week.
Awesome.
I came here and I thought I was going to come here and say I'm going to start this coaching set thing on my Thursdays, Fridays.Work hard.Pretty much got shut down everywhere that's
That sounds all right.
Yeah.And and I agree.And it's kind of a matter of relief.
We're on a lot We're aligned.That's great.
Um what's stopping me from growing?I think that we could grow our eight-op practice to 4 million in revenue.
you calling it?What off practice?
Eight operatories or chairs or whatever.
Sorry.It sounded different.Yeah.Okay.Keep going.
Um man, I've just had shiny object syndrome.
Yeah.
It took a lot to go from 1.2 to 3.
Okay.
Really my question is I'm worried mostly what my kids think of me.My daughter's 3 years old.Um you know, sometimes I'll come home and she doesn't want to see me.
Yeah.
You know, cuz it's just it taxes.It's taxing.It wears on me and it's like how big do I want to grow?It's like that's whose opinions matter.My daughter, my son, he's 6 months and it's like I want to get this right now.
Yeah.
But on the flip side, the person I respect most is my dad
Yeah.
who was the same way.I mean, he worked came from nothing, built
Yeah.
you know.
You're saying your kid doesn't want to see you or you don't want to see your kid?
She I mean, I shouldn't say she doesn't want to see me, but it's like it's guilt.It's It feels like that.
guilt.She doesn't feel guilt.
Probably.
Right.Yeah.Yeah.Okay.So, you feel guilty, which means that you broke a rule that you made for yourself.Okay?Um okay.So,
why don't we ask an and question rather than an or question?What would it take for you to hit your income goal and spend your time that you want to with your kids?
Right.I think bringing on an additional associate
Okay.
would be
What's your profit margin on three?
We're bringing 1 million, a little bit over actually.
Okay.What's the associate cost?
300,000 a year.
Okay.If you give up a third of your income and how much your time does that buy back?
30 hours a week.
Okay, so three the three days that you're like working in the chair, right?
Right.
Okay.So, if you don't have to work in the chair anymore and you make 700,000 a year with the extra time of not being in the chair, do you think you can make the 300 up?That's question one.
Yes.
Okay.If you then are back to a million because we hired the person and then you got the extra 300k in would you be able to now that you don't have to be in the chair spend the amount oftime that you want to to not feel guilty with your kids?
Yes.
Okay.
The thing that the thing that scares me is when I started out a lot of the team left, essentially the whole team.
Yeah.
Having to rebuild it.We're in rural North Dakota.
Mhm.
I do implants, third molar extractions, things that a general dentist I mean they they're not going to replace it totally, but you already answered that by saying their income's going to go down.Um
Yeah.
Yeah, that's that's
going to go up and then the whole journey of entrepreneurship is with the time that I bought back, can I make more than it cost me to replace it?
Right.
That's the game.
Right.
So, can I give you a really tactical thing to do?
Absolutely.
So, one thing not to worry about and one thing to worry about a lot.So, the thing not to worry about is um I forgot, but I'll have the other one for you, which is which is the thing to worry about.Uh sorry, the thing not to worry about is your ability to get other dentists.Cuz there's a beautiful thing called you can just spend more money to get them.Which means you can have relocation bonuses, signing bonuses, you can have kickers, you can do profit shares, there's a million ways to structure it uh to get them to come here.As long as the business makes money, you'll be able to attract talent.Also, I think there's a great narrative around like what kind of family do you want to start?Do you want to be in North Dakota?Blah blah blah blah.So, I think that's thing one.
I wouldn't worry about that as the reason to not be willing to be with your kids.
Right.
The thing to worry about is that I would like you to draw a line in the sand.Let's just call it the guilt line.Where you say that if I spend this amount of time with my kids, I will not allow myself to feel guilty.Whatever that number is, you'll know what that number is, not me.And then you you make it a priority, meaning you do that first.And so I'll tell you a story, which is my dad back in the day, so he was a single dad.He wanted to drop me off from school and he wanted to pick me up.And so he did that my whole life.And he made the decision that he would make less money and be off at 2:00 every day.He was a doctor.
Right.
And so he told me my whole life.He's like, "All these people tell me, 'Alex, you could be making more money.'"But he's like, "But then I wouldn't see you.And why would I want to make more money so that when I'm 80, and I'll never see like that I wouldn't even you wouldn't even have known me."
Right.
So I think
Yeah, that's awesome advice.Appreciate it.
My girl, appreciate you.
James explains a royalty business tied to Autumn Blaze Maple trees and wants to grow demand while freeing time for family philanthropy. Alex suggests modernizing the marketing through social media, influencers, and B2B centers of influence, while also testing royalty price increases.
Hey Alex, thank for thanks for everything you do for us.My name is James.So we have our company Well, we do like right now.So it's used to be a nursery, but now mainly this company that I'm specifically talking about just holds the trademark to the tree Autumn Blaze Maple.So
Autumn Blaze Maple.
Autumn Blaze.
Blaze.
Autumn Blaze Maple.So it collects royalties from the growers that grow the baby trees.When they sell the little tree
You said nursery and I was thinking
Yeah, I know.
Right.
And you were talking yeah, got it.
So a tree tree nursery for so it's a landscape tree for has great fall color.
So it's been cruising along for a lot of years with no input or push.
Wait, we're talking hold on.Cannabis trees or we talking just little trees?
trees.So maple trees
off there, too.All right.
No, fall fall color.Fall color is the biggest thing.Yep.Yep.
All right, here we are.
So great fall color is the biggest deal.Grown in the majority of the country.It's been one of the most popular trees in the country for 30 years.
Okay.
So it's been cruising along in that 325,000 a year it collects with no input.No advertising, no work.Um, so I'm just taking it over now.
You're buying it?
Yeah, from my mom.
Okay.
Um, so we're just finalizing that and part of that is the income from this.I want to increase it to replace my income.I'm closing or consolidating some of my businesses.Uh, they've created a great foundation that I'm helping her manage and my wife and I are starting our own charitable foundation.So I want to free up my time to do that.I feel that's my purpose is to create I used to think I needed to outdo my dad.
Yeah.
I realize I think my purpose is to take what they built.They built by 60 million worth of land assets and farming and grow that for their charitable purposes.
Okay.
Um, so anyway, back to the Autumn Blaze maple is incre- so it used to do in its heyday 750 to 800 just in units.So we only get a dollar a unit.
Yes.
So it's a tricky
Right.
money into it, you're not getting, you know, to convince a homeowner on it, you're not getting that big sale.
Um
So I guess the question is where to focus efforts or dollars to increase that popularity again.It's demand.The growers will grow whatever they need to, the ones that pay us the dollar.
Yeah.
Incentivizing them doesn't do any good because it has to come from three people down the line basically.The tree they sell
How did it get popular originally?
will go through two more chains.
Originally.
What's that?
How did it gain popularity originally?How 30 years ago?
Landscape architect magazine, advertising Better Homes & Gardens.So it was to homeowners and the industry.
Okay.
I don't know metrics of which produced that really more.
mom and dad did.
Yep.
Okay.
And I worked for them my whole life basically until 2019 and then
Got it.Um Okay.Uh, interesting.So the the whole $1 per, you know, per tree thing.Um I would be you basically you need a an advertising channel that has greater leverage.Right?So we can't think in trees, we have to think in like neighborhoods or you know, cities or whatever just from a a perspective.Um and so it's like where are the centers of influence that move the needle?Pine needles.Uh I know it's not a pine, it's a maple, whatever.Uh but the pun was funny.Anyways, uhYou doing a home and garden thing, that that medium is gone, right?And so there's the the day of social media is here and that advertising is thankfully free.So there's obviously that angle, but we need to like if I was buying the business today, I would be thinking like who are the who are the biggest who are the biggest influencers in that space?
So I think it's I didn't I think definitely after the last 2 days of talking to people.Like 15 years ago when you said Autumn Blaze, a lot of people knew knew it cuz if they were shopping for trees or building a house, they knew about it.Yeah, yeah.Um so I think it's probably it was
You need like Martha Stewart to talk about Autumn Blazes, right?
Well, maybe.
Yeah, so I think you need an influencer campaign from people who who talk home and garden.Um and they start mentioning Autumn uh Blaze more.That would be my guess.Did it fall?No, okay.Um But the thing is is I would I want to give you permission to up because you're going to.And so you're what how much do you have to sell or finance or how what percentage of revenue are you seller financing back to your your mom every year?
Uh we're we need to finish evaluation, but not a lot.
Okay.So there's there's a couple ways to think about it, but for me, if you have the $325,000 of royalties every year, it's a declining asset because it's kind of degrading, right?And so I see this as I need to take as much of that as I can almost like to the hilt of whatever that payment is and I'm reinvesting the whole thing into marketing.Um again, I I think about how do I grow the business?Um and And I can feed the business, the business will feed us.And so, I'm trying to minimize all my extra expenses so I can take all that extra juice and put it back in, which it sounds like didn't really happen for a while, right?
Yeah, 15, 20 years.
Right.And so, we just need to go back to what made this work 30 years ago.And all that's changed is just the media.That's it.It just went from print to social and influencers.But that's the that's the whole shift.Um but what we're doing now is talking about a national advertising campaign, which is really tough.And so, I'd say there's two ways to think about it.Way one, because again, I'm conscious of your budget, right?Way one is that you go kind of recruit influencers, send them seeds, let them grow out, try to go kind of organic virally on that stuff.The second alternative is is there a way that I can kind of think about this from a B2B perspective of where people are buying seeds and trees and all that, and kind of go to those centers of influence.So, I'm sure there's grower conferences, etc.
And I'm sure if you have done nothing, doing something will work better.And so, those are kind of two very polar different strategies.If I wanted to be if I were a betting man, which I guess I am, I would try to do this from a like you need to do organic, pun intended, for your brand, because that'll cuz you'll needthat no matter what.And then, what I'm spending my time on is I want to go to the places where all the fish are.Who are like can I can I uh can I influence those growers and distributors to push more of my product, which right now has been zero pushing.And I can promise you that the competitors are pushing.Even though there's demand from this side, there's still influence here.And so, that would be my kind of like two-pronged approach.But what we're talking about is um is tough.
It's a na- like you're trying to bring national awareness to a type of tree.
Yeah.
Which is hard.No, I'm being like it is.
Yeah, no, 100%.
And so, it went kind of viral probably on some word of mouth and stuff 30 years ago, and you've been collecting checks since, which is great.Um trying to get that to happen again will be hard.And there is a a of a risk question um that I would be thinking, which is like of all the opportunities that you have is this the one that you would want to bet on?It's very hard.This is a super tough one.
Yeah, and I
Of the ones we had today, yours is the hardest.
Yeah, like my other businesses if I put that same amount of money into I'll make more money that year.
Yeah.
This potentially So, I think like the sales cap out and probably 5 to 600,000 units.So, I mean raising the royalty price is the simplest a quarter
Sure.
right now.And we could do that.
Get to a dollar 25 whatever
Yeah, it could maybe go to two.There's some There's one tree out there that charges 280.
Okay.
I don't know what they sell though.Everybody else Everybody our main competitors are a dollar.So, we're we're at the with them, you know, and those trees have been collecting the same amount of money for 70 years.Like, you know, this would probably continue to go at 300 forever.
Uh-huh.
with no input.
Well, it'll still decay cuz it has, right?
It follows the economy.Like even over the last 15 years it's has a spike up to 4 and a quarter.It's cruised at 4 or 370 380.
Yeah.
Uh and it just
So, option one, just collect the check.
Right.
And then just run the other business that is significantly easier to to to build.I just think that like in order So, I I'm changing my mind a little Not changing my mind, but like you could go that path.Those would be the two paths that I'd pursue if I wanted to do this.Seeing what that would look like, I'd be like is there anything else that I could do that would make me more and I'll bet you given the business acumen and that you have and the other business that existsprobably.And so, maybe you just do a deal with your mom and she gets a paycheck for a while and you basically take over handling the mail and whatever small legal things you got to do.
Yeah.
And then just focus on the other businesses that have more upside.
All right.Thank you very much.Yeah, that's what we did the last year already pretty much and
I mean free money
It's like I don't know if it's low hanging fruit that
Yeah.
Oh, I don't think this is low hanging fruit.Also, great pun intended, but
Well, how about the raising the quarter on the royalty?
Oh, all right.
a little, but I don't think it
great part.You can do it.If it doesn't work, change it back.
it back.
Yeah, you might be able to get to 150.
Yeah.
I mean if you haven't seen the How long has it been since you changed the price?
2001.
Yeah, I mean it's $2 a tree now anyways.
No one else is yet, though.
Yeah, but like How much do they
It hasn't maintained
How much do they make on a tree?
So, the guys that pay the royalty, they're only selling the tree for $1.80 to $2.80 cuz they're selling the babies.And then it goes to another wholesale grower that grows it for 3 more years.
Well, then they're they're not going to be able to make them make money if they buy it for a dollar.
pay the royalty, the customer does.So, like they should they list the price separate.So, in the catalogs, it's the price of the trees $2.80, royalty's a dollar.
Got it.Oh, I don't think the customers can care.
They should I don't think so, either.
But dude, I don't think they're How much are they buying it for?The tree?The final product?
In the way Well,
The person who pays it, how much do they pay in total?
$2.80.
Okay.
They have to And then they have to pay the dollar royalty.
Got it.So, it's still okay.So, it's meaningful there.Okay, yeah.
yeah, at that scale, yeah, it's it's a lot.
Yeah, cuz you're buying 20 of them or whatever it was.Yeah, yeah.
But well, no, I mean, they're buying thousands.Like that that, you know,
Understood.
10,000 at a crack they buy, so.
Um I again, when price testing, I would try it.I'd bump it a quarter, see what happens.If nothing happens, phenomenal.And if you don't like it, you bump it again.
And if the whole thing burns down, you're like, "Oops, that didn't work."Move back.Right?
Yeah, that's what I would do.
All right.Thank you very much.
Andrew asks whether now is the right time to sell his German car performance parts business. Alex argues the sale would not change much in his life and warns that without a clear next step, he may regret giving up the business he knows and loves.
Appreciate you.
Hey, Alex.Um my name's Andrew.Um
What?
So, I'm trying to look like you.
Oh, yeah.
Yes.
Yeah.Um
Sorry I interrupted you.Keep going.I'm sorry.
fine.Uh so, I sell performance upgrades to German car owners.And uh we're doing about 5 million in revenue last year.Uh I'd like it to be at 10 or 12, but um I think what's stopping me is is actually a question that's kind of come up a few times, which is like, how do you know when it's theright time to sell?I've got a good offer.
Okay.
And uh
What's profit?
Uh 2.1.
Amazing.Okay, 2.1.And what's the offer for?
Uh six.
Okay, so 3x is a little low.
Yeah.
Is there any recurring nature to the business?
to the the I'm actually negative, but uh
Fair.Is there any recurring revenue in the business at all?
No.I mean, um maybe like 10 15% repeat buyers, but usually one and done.
Understood.
Yeah.
Um what are gross margins on Is it like chips that you sell?
No, it's a hard parts, so exhaust systems and intercooler systems, intake systems, stuff like that.
Okay.Uh and so they want to buy it for six and you're making 2.1.Okay.And is that appealing to you?
Yeah, I mean, well, you come to a room like this, you know, it doesn't seem like much anymore, but
you know,
You're like I'm richer than all the people I know.
But I mean, you know, I I didn't come from a lot of money.I was like middle-class family.I mean, if I invested right, I could be pretty all right.
making 2 million a year now.
Yeah.Yeah.
But but I'm working a lot.Or well,
it's it's actually I'm a lot less of a key man risk than I was.
Right.
Um I do I do like it.Um but I don't want to miss an opportunity when the time to sell is high.Uh yeah.
So, you're just trying to decide whether you Like, let me ask you a different question.Um do you have another business you want to start?
Nothing serious, no.
Okay.Is that six that they're going to try and pay you all up front?
4.5.
Okay.And then the other 1.5 is you're rolling it as equity or is it over time?
Uh seller no
Finance.Yeah.Okay.Um Well, they're really just paying four They're paying you 2 years.
Mhm.
They approached you, right?
Um no, I gave it to some brokers just to to put it on the market, see what Yeah.
Got it.Have you negotiated this at all?Um
Like little bits here and there.I I told them I I want I wanted to walk away with six.
Okay.
Um, but, you know, they they said it's not worth that.
Okay.
So.
Well, to them.
To them.To them, yeah.
Um.It's a tough one, man.Uh, you don't have a plan for what you want to do next.Um, I would ask you how much you've saved up.If you're comfortable saying it.
A few million bucks.
Okay.A few million dollars.So, does four Well, you're going to get four and a half, then you're going to pay 20%.
up with like three.
Yeah.So, does three change a lot for you?
Um.Well, it's an it's definitely enough to not have to work.I think I figured I'd make like
dude.
Yeah, yeah.
I'm just like, let me just save you this part.You're going to work again.
Yeah.True.
Like you can get drunk for like a week, and then you're like I can't do this forever because then I will be an alcoholic.
Yeah.Too many too many spots on my liver.
Yeah, right.So, and then you're like, do you have kids?
No.
Okay.Are you married?
Nope.
What was it What are you going to do?
You're just going to wake up and be like
Like, you going to golf?You know, like what like I'm being so real with you though.Like what would you do?
Um.Well, to be honest, you know, like a lot of people in here, you know, had my head down in the warehouse and my house for the last decade, and it's like I just want to like go out andsee stuff.
Yeah.
You know.
So, so this is just a fun this is like a fun frame, which is like is there a way that I can get the business to continue to make money and go out and see stuff?For sure.Because you probably even then it's like you as somebody who's done this, you get tired of traveling at a certain point.And you kind of like miss having roots in your own and your own all that, right?And so, one of the things that I've like I know absolutely for certain is that we always want what we don't have.And so, like single people want to get married, married people dream about the time they were single, people who have kids wish they could not have the kids for the day, people who don't have kids want to havekids.Like like, you know, employees want to be entrepreneurs, entrepreneurs wish they could just get a stable paycheck.
Like, it's it's endless.Like, we always want what we can't have, right?And so, uh the moment you sell the business, you'll wish you had the business.
Yeah.
And so, I just think that like this will not scratch your itch.
Okay.
If that's the purpose.Now, like I think basically the justification of like I could get, you know, $3 million after everything and you already have a few million dollars is really going to change nothing about how you live.Again, this is an entirely personal decision.I'm just walking you through how I think through it.Um it's going to change nothing about what your day-to-day looks like except for all the stuff that you enjoy doing in your business, you won't get to do anymore.And there's for sure that you don't like doing, but like life comes with overhead.And so, the things that if all of that's gone, you get rid of the good and the bad.
Yeah.
And that's And people forget about getting rid of the good.And so, now you've got to somehow replace the good, which means you're going to start a business again, and then you're going to like, "Fuck, I wish I had my whole team."I only say this having done this before.
Yeah.
Like, you're like, "I really wish I had all my people, but I can't cuz I just sold the company and I have a non-compete
and I can't take them."So, um I would encourage you before selling to see like if I had a gun to my head, they're going to kidnap me cuz you have no kids, right?Not me, you.I don't care about me, but like
uh they're going to kidnap you.You're going to get napped unless you can just solve for the things that you want.Maybe that's traveling once a quarter.Maybe every 12 weeks you take a week off.
Yeah, I already do that.Yeah.
All right, every 6 week you take a week off.Like, what Like, I'm kind of like this it feels like a like a it feels like a nothing burger.You know what I mean?Like, you're going to make the amount of money that you're going to make from the sale in like 24 months.
Yeah.
And you're going to have to probably work on afterwards a little bit.
Yeah, uh 6 to 12.
Right.
So, it's like you're going to have to work for the next year.You're going to make that money in 2 years.So, you're doing the sale and getting rid of the company for 12 months.
Mhm.Well, they are going to pay me a little bit for my time.
Not nearly what you make from the business.
So, like all of this for 12 months and then you lose the thing.Are you good at other stuff?
No.
Okay.
That was
That was the most honest answer of the day.
Yeah.I I've pruned away all those other skills, yeah.
What was that?
I pruned away all the other skills.Yeah.Everything outside of that I'm no good at.
So, you can do whatever you want, obviously.I think that if we if we think about it from the frame, I don't know what you gain.And so, I don't think I'd sell it unless I was like, I want to do this.This is the big business.I'm going to take this with the money to do this next thing.All that would make sense to me, but you're like, this is all I know.They're going to pay me basically 18 months of work uh and then I won't have the thing I know and love.And what I'm trying to get, like what job will this money do for you is not a ton.And so, you're like, I feel like I've got my head down.And I think what you're hoping for is a guarantee from a world that will never give you one.
Mhm.Okay.Thank you.
Lois describes her coaching business for nurses and her concern that the offer depends too much on her personal brand. Alex pushes her to think bigger, build leverage through team and systems, and recognize that she is still early in the scaling journey.
Hello.
Hello.
How are you?
Excellent.How are you?
Awesome.So, my name is Lois.I am a
Lois?
Lois, like Joyce, but with the L.
Lois.
There you go.
Got it.
So, I'm a registered nurse, retired now, and I sell a online coaching program where we help nurses who are happy make more money with travel nursing, PRN nursing, strike nursing.And then it kind of like snowballed into another problem where nurses are like, you know, I don't want to travel nurse forever.You know, they want to get married or they want to have kids.And so, there is a huge gap in the marketplace where a lot of healthcare workers are burnt out.They want to pivot, but it's like all we know is like, you know, healthcare.So, the second leg of my business is helping them transition into entrepreneurship.I do life insurance.We have a health insurance leg.I have a digital product business, so I'm kind of like just the connector to help them pick a path.
revenue under 1 and 1/2 million dollars?
I'm doing 1.5.
nailed it.
But the profit
I'm I'm telling you I got
I've done these before.
Yeah.
All right.Um because you sounded distracted enough to not be able to get three.
I am distracted.They told me that.We're profiting about 1.2, so we have great margins.Yes.I I was organic the first 3 years.I just started running ads about like 9 months ago.
at that 1.5 thing.Sorry, keep going.
Yeah.
You knew it.
Yeah.
Uh just started running ads the last I I do a lot of digital challenges, so like 3-day challenges, 5-day challenges.Just did one last month.Spent about 25k on ads, made about 500k, so like 20x ROAS.
Chill.
So the goal is to finish this year with 10 million.I feel like all I need to do is just spend more money on ads.The problem and the question that I have for you is that I am the dancing
Yeah.Keep going.
I'm the dancing bear.I'm the personal brand.
Mhm.
So I know I can do more of the things.I guess my question is how do I increase the value of what I'm offering, the price point of what I'm offering, but like less of me.Because they're coming for me.They want to like spend time with me.It's, you know, nurses.
What's the offer?
So just helping them pivot into life insurance specifically.
the outcome.What do you deliver?
Like I'm coaching them.I'm teaching them how to get licensed, how to sell.
More detail.So in what format or medium are you doing that?
So we're doing like a like a high-ticket program, so
that.That's the offer.What are you doing that is not scalable?
So let's say we let's say we 10 So you're at 1 and 1/2, right?So let's say we 6 or 7x the business.How many customers did you sell at your thing?
150.
Okay, so 150 customers.
Uh I'm already guessing that you have one to many in terms of delivery.
I do.
So then what stops that from being a thousand customers from your delivery?
I guess the results like I feel like they like more of like touch points with me like Q&A.I feel like I'm doing like 4-hour zooms of like you know.
They want to like it's the same question they can ask
one to many zoom calls and answering questions.
Okay.
And I have other coaches but I feel like they don't execute until like I tell them.
if they were then they'd be you.Yeah.Okay, I'm just trying to find the problem.
I guess like how do I remove myself?
I don't think you're going to.
Ex- Or like how do I get them to like
there right now.It's too early.
It's too early.
Yeah, you're like this is not in the Um let me ask you this.Would making $10 million change your life?
No.
Okay.Um
It would be really cool though.
Okay.
Would it Would it change your financial situation?I'll say that.Can you do things with that that you can't currently do?
For sure, yeah.
Okay.How long were you in health care?
8 years.
Okay.Is this easier than that?
For me, I like it better.I like business more.
was not a fair question.Um would you work really hard like if you 8 years ago were like I could work really hard for a year to make $10 million, would you do it?
As a nurse, no.
8 years ago if we you did it for less than that.
Correct.
So you wouldn't do it for more than that.
Working as a nurse?
Then.
To make $10 million?
Yeah.What did you What did you make as a travel nurse?
Maybe like a hundred K.
Okay, so would you do it for $10 million?
Oh yeah, yeah.I'm sorry.I think I was
Okay, got
I misunderstood your question.
Right, yeah.Not a trick question.
I'm walking through the logical frames.Um so if you were talking yourself 8 years ago and said hey, I could work at an easier thing that you like more and make $10 million, why would you want to stop?
That's true.
You like what you do?
Yeah.
You're good at it.
Mhm.
You want to help more people?
For sure.
So, what's the issue?
I guess how do I like leverage my team?Like for example, this event is amazing and I love the I love the fact that even though you're the one with the personal brand like it kind of ran kind of without you for the most part and Iguess do I have to wait?Like how long do I have to wait to get there?I'm ready to get there.
Yeah, all I do is just collect checks.That's That's That's how my life is.Um Yeah.
It's too soon for me, huh?
Um I think you're super early.I just like we could go we could start walking down that like what you should do.I just don't think it's relevant at all.
Okay.
Like you spent 25 grand and made 500.I would like you to spend 500 and make 10 million.
Let's do that.You're right.
Let's do that for a couple years.And then be like, "Huh, now what do I do?"And what's cool about that is that you'll have like 20 or 30 million dollars to get really good people with.And so right now you're trying to think about how to solve a problem that requires money.Like these people are not cheap.
Right.
Right.And you need more money to get that caliber of person.
Mhm.
And right now you'd be risking a huge percentage of your income in order to probably shrink the business.
Mhm.
And that doesn't feel like the right move.
Yeah.
you're going to give up margin and maybe some growth by not being as close to everything.And it's got to be really big and really profitable.So, that when you take that hit, it's still grows and it's still profitable.
That's true.
Does that track?
Yeah.Thank you.
Andrew McNair explains his wealth management firm’s need for more advisors to serve federal employees. Alex compares buying versus building talent, recommends a strong recruiting and training system, and urges him to think from 7 to 70 rather than just 7 to 10.
Hey Alex, my name's Andrew McNair.I'm with Sleep Well at Night Capital, Swan Capital.We do wealth management for federal employees.And so we have about $7 million revenue, $3 million EBITDA.We're trying to get to $10 million of EBITDA.And so what's really holding me back is we need to scale and help the 7,000 federal employees we want to do.We need three wealth advisors, three wealth managers really fast.And so I'm thinking, do I train internally, which takes a while?
So you're here.
Right?
Okay.
A lot of manpower issues.And so, do we train internally?Do we go recruit, try to get them to come to the Redneck Riviera in Pensacola?Or do we try to do something
Riviera?
Oh, you bet.
Okay.
You got to come down.
give that vibe.
Yeah, but it is that vibe.
It's the best.Um so, or the last is do Pursuit of Happiness with Will Smith, have like maybe 10 recruits and whoever survives survives, but they have to get licensures.You know, with the SEC, they have to be very technical to be compliant.They need licensures.
So you have a what I call a many ways up the mountain problem, which is that all three of the paths are likely work if you do them well.Um so, this is a buyer-build scenario, which is like I can buy the talent or I can build the talent.Each one has its own issues.Buying the talent is typically faster.Building the talent builds more long-term value in the company.I tend to because I like training, which hopefully maybe you guys have seen.I like training and education.And so, one of our big the reasons that so many of my businesses are service-related is that I'm pretty good at helping people learn how to do well.Um and so, I tend to do that because you also get better margins because you can take someone who has lower skill, pay them at their current skill level, add skills to them, charge for what the new skills
are able to get, and that arbitrage is yours.And that's fundamentally what service businesses are about, which is like how how big of a discrepancy can somebody come in from labor that they come in at versus what you can charge for, and the delta there is eitherhow good you are at marketing and sales or how good you are at training.If you're good at both, you make a lot.And so, um for you, do you feel like you are So we have the call it, you know, we're holding tryouts, right?We have that one.We have the go recruit some killers and bring them in.Uh and then you have your third option of like You said three, but it's I feel like it's two.
think I think I lean towards the more let's get a group in there and see who survives and who really wants to help these these people.
And I think that my perspective on this is that I you can absolutely do the Northwestern Mutual, we just recruit everybody in and see who survives model.I prefer to have exceptional training
Mhm.
and I take the belief that like everybody who graduates the Hermosi school of sales will be a closer.It will just take some people longer than others.And then for the people that it takes longer, I make the decision of whether or not it is worth it to me to continue to train them.And so then you get better and better at training your, you know, key skills.And so I would say likely you probably want to get people who have those licensures cuz that's I I personally wouldn't want to deal with that.I would get the people who have licenses who are junior, probably suffering at the Northwestern Mutual like people who are just
get the golden handcuffs and
Right.Exactly.The early guys, first 3 years when they're just sucking, you know, wind uh trying to get their business going, just saying, "Hey, I already have an acquisition system.I'm going to feed you clients.We're going to do a rev split on it and you're going to be happy dealing with real Americans who you're helping out."
So that's the route up the mountain you would take.
That's how I would do it because that's my skills and resources.
Okay.
Do you feel like you're better at training or do you feel like you're better at not training?
Well, you you you laid out the three different entrepreneurs.I mean, I lean towards marketing.And so part of me is like, "Well, you could probably market that job better and maybe get someone remote and not, you know, get them from far away and then just try to get them bonus to come over."
Mhm.
Do the Redneck Riviera.
100% the Redneck Riviera.
Yeah, yeah.
Yeah.No, I think I think I think you'll be able to I mean, you just have to sell it, right?Just like anything else, but if you have that skill, I think you'll be able to do it.Um I would just say that where would I invest my time if I were you?It would be the back end acquisition funnel, which is you should know all the metrics for that because like you're going to you're thinking 7 to 10 and if I can encourage you to do one thing instead ofthinking 7 to 10, think 7 to 70.Just think from that, which is like, what am I going to need at 70 that I don't have now?Which is like, you're going to need an entire recruiting machine.And you're going to need an acquisition machine in terms of branding and up front.Your way of getting customers right now is reliable.
Very.
Okay.So, can we do more of this?
Lots.
Okay, great.So, like, the constraint clearly is this manpower side.And so, that is going to unlock a huge amount of enterprise value.That's what I'd be laser-focused on building out that recruiting, onboarding, training, performance management, compensation system so that you can give someone a very clear career path that they're never going to need to leave if they come through yourway.
Perfect.Thank you so much.
Appreciate you.
The video ends with a promotional call to action for Alex's free scaling roadmap. He invites viewers to use the resource to grow their own businesses.
If you like this video and you're a business owner who wants to break through your current revenue ceiling, I just did every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completelyfree scaling roadmap that I've used to go from zero to one, zero to 10, and zero to 100 plus.And so, you can click here and you can check it out.Again, absolutely free.And since you're a business owner, appreciates you and uh enjoy.