How to Make Money Like The Top 0.001%

How to Make Money Like The Top 0.001%

# https://www.youtube.com/watch/mZxDw92UXmA

00:00:00.160 Have you ever wondered how the top
00:00:02.000 0.001%
00:00:03.760 make you money? It’s not from a
00:00:05.839 salary. It’s not from investing. And
00:00:07.839 it’s definitely not from real estate.
00:00:09.360 It’s from being a business owner. I know
00:00:11.759 this because I went from broke at 24 to
00:00:14.080 selling my first company for millions at
00:00:16.000 28. Since then, I’ve built and sold
00:00:18.480 multiple software companies and now own
00:00:20.320 a portfolio on track to be worth a
00:00:22.080 billion dollars in the next 3 years.
00:00:23.840 Most people think getting rich is about
00:00:26.000 making a lot of money. When in reality,
00:00:27.920 it’s about owning a business that’s
00:00:29.760 worth a lot of money and knowing how to
00:00:32.479 increase the enterprise value, which
00:00:34.480 just means how much somebody’s willing
00:00:36.079 to pay to buy your business. And today,
00:00:37.920 I’ll show you exactly how to do it step
00:00:39.920 by step. Step number one, make your
00:00:42.719 revenue predictable. Kind of simple, but
00:00:45.440 buyers will pay top dollar when they can
00:00:48.480 count on your income. meaning that your
00:00:50.719 revenue becomes predictable, durable.
00:00:53.600 That’s the language. When they look at
00:00:55.120 the trailing 12 and trailing 24 months
00:00:57.600 of your business and it just keeps going
00:00:59.520 sideways or ideally up, a buyer is going
00:01:01.840 to pay more for that kind of business
00:01:03.280 because they can predict in the future
00:01:05.119 it’ll keep doing the same thing. Just
00:01:06.960 think about your phone bill. It’s why
00:01:08.720 telecom companies are worth so much
00:01:10.400 money because you pay the same every
00:01:12.799 month. And look, when I share this, some
00:01:14.320 people are like, “Well, I don’t have
00:01:15.280 reoccurring revenue.” But check it out.
00:01:16.960 My brother’s a home builder. He started
00:01:18.799 selling lawn care and snow removal as a
00:01:21.360 contract to the people that bought home
00:01:22.640 from him. My buddy Nick owns a sign
00:01:24.400 company. He started selling maintenance
00:01:26.159 contracts. I sell software. Guess what?
00:01:28.880 Subscription revenue is a beautiful
00:01:30.799 thing, but every business has the
00:01:32.960 opportunity to build reoccurring
00:01:34.640 predictable revenue. You just got to be
00:01:36.400 creative. Ask Chad GPT. It’s right
00:01:38.799 there. This is what the money people
00:01:41.040 call durable revenue. Durable revenue is
00:01:44.000 great, but what makes businesses thrive
00:01:46.079 is making profit on that revenue. So,
00:01:48.720 step number two, make more money on the
00:01:51.600 stuff you sell. The money people will
00:01:54.479 call this gross margin. It’s the money
00:01:56.640 you keep after you’ve paid for the cost
00:01:59.040 of the service or the product. My kids
00:02:01.360 sell lemonade and they will take your
00:02:03.360 credit card and swipe it on their Square
00:02:04.880 device and they will charge you two
00:02:06.399 bucks for that glass. They only paid 25
00:02:08.479 cents for all the stuff that goes into
00:02:09.919 it from the cup to the lemon to the
00:02:11.760 freaking ice cubes and stuff. So that
00:02:13.920 means that they make a $1.75 of gross
00:02:16.560 margin. See, the best companies focus on
00:02:19.120 increasing their gross margin.
00:02:20.800 Everything is around a conversation to
00:02:22.560 do that because the more you get on
00:02:24.239 gross margin, the more profit you have
00:02:25.760 left over. So here’s how you can
00:02:27.520 increase your gross margin. Number one,
00:02:29.440 decrease your costs. For example, if you
00:02:32.239 look at AI and automation, many service
00:02:34.879 businesses could automate a lot of their
00:02:36.959 back office costs, their people to
00:02:39.120 deliver the service to make it even
00:02:41.360 better from a gross margin point of
00:02:42.720 view. If you buy things that are part of
00:02:44.959 what you sell, you can go find a
00:02:46.720 different supplier, maybe negotiate
00:02:48.400 higher volume for a lower cost. All of
00:02:50.480 that hits the bottom line from a gross
00:02:52.239 margin point of view. Number two is you
00:02:53.840 increase your price. This is literally
00:02:55.680 the go-to move. If somebody bought your
00:02:57.519 business tomorrow, the first thing they
00:02:58.959 would change is your prices. But you can
00:03:00.959 pretty much increase your prices until
00:03:03.200 you notice your sales conversion drop a
00:03:05.440 little bit. And I get it, if you raise
00:03:06.879 your prices, less people will buy. But
00:03:09.760 people will buy if you market properly.
00:03:12.000 If you build the brand properly, if you
00:03:13.760 deliver a quality product or service,
00:03:15.840 trust me, the problem is not that people
00:03:17.599 won’t buy. It’s that you haven’t built
00:03:19.760 enough demand to overcome putting your
00:03:21.680 prices up. And this one is going to
00:03:23.599 sting and could be quite scary. big
00:03:26.159 piece of advice is that drop the
00:03:28.319 unprofitable clients. Again, if somebody
00:03:31.040 bought your business tomorrow, they
00:03:32.239 would probably fire the lower 10% of
00:03:34.400 your clients that aren’t profitable. The
00:03:36.000 ones you gave early deals to, the people
00:03:38.319 that complain all the times, the ones
00:03:39.920 that are outside your target market
00:03:41.280 today, but you kept them around, but
00:03:43.200 they’re not really making you money, but
00:03:44.799 you feel bad for firing them. They got
00:03:46.959 to go. The easiest way to fire them is
00:03:48.799 just put your prices up to a point where
00:03:50.159 they don’t like it, and then they just
00:03:51.440 self- select. To me, this is why it’s so
00:03:53.519 important to increase your gross margin
00:03:55.680 is first off, you make more money, so
00:03:57.439 you have more money to grow. And second,
00:03:59.920 people that buy your business are going
00:04:01.680 to be more excited because you have more
00:04:03.840 profit. You’re more attractive to other
00:04:05.360 buyers, which creates more demand to buy
00:04:07.439 your business, which means the price
00:04:08.799 goes up. Everybody looks at like revenue
00:04:10.959 as how cool business is, how much money
00:04:12.560 they make. But to me, revenue is just
00:04:14.400 vanity. Profit is sanity, keeps the
00:04:17.120 lights on. But ibida is value. Earnings
00:04:20.320 before interest, tax, depreciation, and
00:04:22.240 amortization is a fancy word that buyers
00:04:25.360 will look at because the bigger your
00:04:26.960 ibida, the more they’re willing to pay
00:04:28.639 you on multiples. But what a lot of
00:04:30.560 people don’t know about making your
00:04:31.919 business more valuable is that profits
00:04:34.320 die if you have customers leaving
00:04:36.080 through the back door. So what do you
00:04:37.840 do? Step number three, reduce your
00:04:40.240 client churn. Essentially, keep the
00:04:42.639 clients you got. If you have a bucket
00:04:45.040 and there’s massive holes in the bucket
00:04:46.880 and your customers are water being
00:04:48.880 poured at the top of the bucket, the
00:04:50.800 water flowing out is your customers
00:04:53.440 churning. That means the bucket will
00:04:55.600 never fill up. If the bucket’s not full,
00:04:57.680 there’s no value. Nobody’s going to buy
00:04:59.600 you cuz it’s an empty bucket. Why
00:05:01.919 businesses don’t understand this is
00:05:04.000 because they can’t see it. They don’t
00:05:06.080 track. I’ve got 100 clients this month,
00:05:07.840 100 clients next month. They don’t go,
00:05:09.039 “Oh, we lost one. We lost two. We lost
00:05:10.720 three.” Over time, that number could be
00:05:13.199 massive. Most businesses are losing 100%
00:05:17.120 of their customers every 10 months. They
00:05:19.520 just don’t know it. And the truth is,
00:05:21.520 high churn, 10 15% a month kills a
00:05:25.520 company’s worth. Nobody’s going to buy
00:05:27.680 business if you don’t have
00:05:29.360 predictability in the customers buying
00:05:31.199 and keep showing up. Imagine I had a
00:05:33.120 grocery store. For the first few years,
00:05:34.479 I had a lot of people buy and my
00:05:35.919 revenues are good, but nobody paid
00:05:37.919 attention that the population around the
00:05:39.919 grocery store wasn’t coming back because
00:05:42.240 they came in and they didn’t have a
00:05:43.680 certain product or they bought something
00:05:45.120 and it wasn’t great. And eventually I
00:05:46.880 burned through the whole population and
00:05:48.960 then I go to sell my business, but I’m
00:05:50.720 slowly dwindling down my revenue because
00:05:52.800 I don’t have anybody else to sell
00:05:53.840 groceries to because the word on the
00:05:55.120 street is I don’t got the in my grocery
00:05:56.800 store. I literally have that happening
00:05:58.639 at a grocery store in my local market.
00:06:00.560 And guess what? less product on the
00:06:02.479 shelf, staff turnover, zero surprise if
00:06:05.600 that thing goes up for sale in the next
00:06:06.880 six months. And when it does, it’s not
00:06:08.720 going to sell for a lot. It’ll be a fire
00:06:10.479 sale on the real estate. The more
00:06:12.240 customers you keep, the more profits
00:06:14.319 will stack because each customer’s gross
00:06:16.960 margin stacked up over time creates more
00:06:19.199 profit at the bottom. Think about going
00:06:20.960 to the beginning of time in your
00:06:22.560 business. And every customer you got
00:06:24.639 kept buying from you. You never lost
00:06:26.240 them. So all the people on the bottom of
00:06:28.080 this line are the ones you lost. All the
00:06:29.919 ones on the top are the ones you have.
00:06:31.840 Imagine if all the ones you lost ended
00:06:33.759 up on top of the ones you have. That’s
00:06:36.240 how much bigger your business would be.
00:06:38.240 So here’s how we actually reduce your
00:06:40.000 churn. First, we got to track monthly
00:06:42.639 reoccurring revenue. Essentially, we
00:06:44.560 need to look at the trend closely so we
00:06:47.120 know where the leaking is happening.
00:06:49.199 This will make sure you catch churn.
00:06:51.280 Most people just don’t even measure it.
00:06:52.880 So measuring that monthly reoccurring
00:06:54.560 from the existing customers will show
00:06:56.240 you that. Essentially, you check the
00:06:58.080 amount of customers that bought from you
00:06:59.680 this month and did those customers buy
00:07:01.520 from you again the next month and the
00:07:03.199 next month and the next month. If you
00:07:04.880 know this, then you can measure what’s
00:07:06.560 called your growth ceiling. Essentially,
00:07:08.479 a point into the future. When you give
00:07:10.479 me four numbers, I will tell you the
00:07:12.319 growth ceiling into the future when you
00:07:14.160 will stop growing based on your current
00:07:15.840 numbers, your current churn. If that
00:07:17.680 sounds like Chinese to you, I’ll make it
00:07:19.440 simple. Click the link in the
00:07:20.639 description below to download my growth
00:07:22.160 ceiling calculator. I’ll ask you those
00:07:24.080 four questions, those four numbers, and
00:07:25.520 it will predict exactly when you will
00:07:27.919 hit your gross ceiling and what to focus
00:07:29.680 on to fix it. So, now that you know
00:07:31.919 who’s turning, the way to fix it is very
00:07:34.319 simple. You have to get your customers
00:07:36.560 to value as fast as possible. I call
00:07:39.280 this time to first value, TTFV.
00:07:42.720 Ideally, within 7 days, but honestly, I
00:07:45.199 call them quick wins. I want to do it in
00:07:46.800 the first interaction. If you join my
00:07:49.199 gym, I want to get you a plan and some
00:07:51.680 wins as fast as possible. If you sell
00:07:54.160 social media stuff, give them a cheat
00:07:56.000 sheet that they can use tomorrow
00:07:57.440 shooting their reels. Even if you do
00:07:58.960 long form YouTube, it got them a result.
00:08:01.120 It got them value. And last but not
00:08:03.199 least, we need to implement a
00:08:04.960 cancellation capture flow. Every
00:08:07.759 customer that leaves is leaving with
00:08:09.919 information, feedback to make your
00:08:12.720 business better. If they leave without
00:08:15.120 you capturing that information, you’re
00:08:17.440 missing the opportunity to learn. Speed
00:08:20.240 of growth to make your business valuable
00:08:22.560 is speed of learn. If you get that
00:08:25.120 information from the customer when they
00:08:26.479 leave, then you can implement the fix to
00:08:28.400 get the current customers to stay
00:08:29.680 longer, which is going to make your
00:08:30.800 business more valuable. So remember,
00:08:33.120 first off, we got to track so we see the
00:08:34.880 trend. Second, we got to make sure that
00:08:36.399 we get them to value fast. And third is
00:08:38.640 we have to make sure if they leave, we
00:08:40.240 know why so we can make the product or
00:08:41.760 service better. Remember how we talked
00:08:43.440 about durable revenue? This
00:08:45.040 specifically, lowering your churn,
00:08:46.800 making the revenue more predictable,
00:08:48.480 getting customers results faster will
00:08:50.640 make your business easier to grow, which
00:08:52.399 makes it more valuable. A sticky
00:08:54.160 customer base makes the business safer
00:08:56.080 to buy. Okay, so now that the bucket
00:08:58.240 isn’t leaking, let’s make sure we make
00:09:00.000 more money from those existing
00:09:01.519 customers. Step number four, increase
00:09:04.080 the amount of money your customers pay
00:09:05.600 you over time. The money people in the
00:09:07.920 industry, they call this lifetime value
00:09:09.680 of a customer. Essentially, if somebody
00:09:12.000 buys from me once and they keep buying
00:09:14.320 from me over a period of time, I’m going
00:09:16.880 to look on average what a customer
00:09:19.360 spends with me, that becomes the
00:09:21.760 lifetime value of a customer. If over
00:09:25.120 time somebody pays me $100 and they stay
00:09:27.279 for 3 years, then I make on average
00:09:29.680 $3,600 by that customer, that’s the
00:09:32.480 lifetime value. The reason we want to
00:09:34.240 know this is because a buyer that wants
00:09:36.320 to value your business is going to look
00:09:38.000 how much you spend to acquire a new
00:09:40.640 customer. If that number is low, what
00:09:42.560 you spend to get the customer and what
00:09:44.399 you make is high, then that is a very
00:09:46.959 good business to buy. So, there’s two
00:09:48.800 parts of it. It’s how much they spend
00:09:50.560 and how long they stick around and keep
00:09:52.240 spending. I mean, if I sell stuff to
00:09:54.800 people that have babies, they might only
00:09:56.880 buy from me for 2 or 3 years. That’s
00:09:58.480 fine. They might also spend 15 or
00:10:00.399 $20,000 in that period. That’s a
00:10:02.480 lifetime value. Have you ever wondered
00:10:04.720 why Netflix is worth $521 billion? It’s
00:10:08.880 because they have subscriptions and over
00:10:11.360 time their customers actually spend more
00:10:14.240 money. It’s kind of crazy. You might
00:10:15.440 have started with Netflix and it was N
00:10:17.200 bucks and maybe you got somebody else’s
00:10:19.680 password so you paid zero. What happened
00:10:22.079 is Netflix over time figured out, hey, I
00:10:24.320 could charge more, right? there’s a
00:10:25.760 little bit of pricing power and if we
00:10:27.920 stop people sharing their accounts with
00:10:29.760 everybody, their cousins and their dogs,
00:10:31.680 then I can get those people to pay and
00:10:33.680 that’s why Netflix has grown their
00:10:35.279 subscription base and the lifetime value
00:10:37.600 of a single account. That’s why they’re
00:10:39.760 worth so much money. So, here’s how you
00:10:42.000 can increase lifetime value of a
00:10:43.519 customer. First, add other things that
00:10:46.240 they buy or give them a reason to
00:10:47.920 upgrade. We got to think about usage
00:10:49.920 based pricing. If you think about it, if
00:10:52.160 you use software, you might have an
00:10:53.920 account for you, but if you want to add
00:10:55.040 a team member, that’s a per seat
00:10:56.720 pricing. If it’s other devices like
00:10:59.519 Netflix, those are called screens. So,
00:11:01.120 they might let you have seven screens.
00:11:02.720 If you want to go to eight, you got to
00:11:03.920 pay a little extra. Essentially, you
00:11:06.160 might be giving too much away to your
00:11:08.399 existing customers, and you have to
00:11:10.079 create reasons for them to want to
00:11:11.760 upgrade. So just look at what
00:11:13.920 everybody’s using on average and just
00:11:16.079 create some parameters around their
00:11:17.760 usage so they have upgrade paths so you
00:11:19.839 can make more money from the customers
00:11:21.600 because they’re using your service more.
00:11:23.839 See if they’re getting more value they
00:11:25.519 should be paying more for it. Most
00:11:27.760 businesses are being too generous and
00:11:29.760 that way they’re not capturing more
00:11:31.519 share of wallet is what it’s called.
00:11:33.360 Then the second thing is we want to
00:11:34.800 monetize additional services. Think
00:11:36.640 about if you have a gym, maybe you ask
00:11:38.720 yourself, what does a customer do before
00:11:40.560 they come into the gym or what do they
00:11:42.160 do after they leave my gym? Well, before
00:11:44.320 they probably get dressed. Do I sell any
00:11:46.560 clothes? Is there any type of product
00:11:48.160 that I could sell in the gym that would
00:11:50.160 get them to buy from me so they don’t go
00:11:52.240 to somebody else? Maybe after they go to
00:11:54.320 the gym, they decide they want to go
00:11:55.760 have a smoothie. Maybe I should have a
00:11:57.760 smoothie bar. When I think about it, I
00:11:59.680 ask myself, what does my customer do 3
00:12:01.680 minutes before and 3 minutes after they
00:12:04.160 use my product or service? Those are
00:12:06.160 opportunities for me to monetize
00:12:07.920 additional services. Last, look at ways
00:12:10.240 to create expansion triggers in your
00:12:12.399 customer journey. Meaning that there’s
00:12:14.399 something they do that tells you there’s
00:12:16.720 an opportunity for you to sell them
00:12:18.160 more. If somebody’s coming to your gym
00:12:20.880 six to seven times a week, maybe they
00:12:23.839 want to work with a fitness coach. Maybe
00:12:26.000 they would like to have a nutritionist.
00:12:27.839 You think about like Dropbox, the file
00:12:29.680 storage software. When you get to 80% of
00:12:32.480 your storage usage, they’ll email you
00:12:34.560 saying, “Hey, you’re at 80%. Did you
00:12:36.240 want to upgrade for a discount to get
00:12:38.000 triple the storage?” Those are expansion
00:12:40.560 triggers. Paying attention to how your
00:12:42.800 customers are using your product or
00:12:44.240 service and introducing those prompts
00:12:46.639 will make you a lot of money, which
00:12:48.399 creates more value for your business. A
00:12:50.480 company that grows the amount of money
00:12:52.800 they make from their existing customer
00:12:54.560 base over a year over time without
00:12:57.600 adding any new customers becomes
00:12:59.600 incredibly valuable to a buyer. If I
00:13:01.839 have a 100 customers that buy from me
00:13:03.680 this month and they spend $10 with me,
00:13:06.160 well, that’s $1,000. If those same 100
00:13:09.040 customers the next month I lost like 10,
00:13:11.360 but the 90 that stayed spent more
00:13:13.360 because I found ways to serve them
00:13:14.959 better and charge more for additional
00:13:16.480 services and they make me $1,300 that
00:13:19.120 next month, then I’ve increased the
00:13:21.040 lifetime value of my customers by 30% in
00:13:24.240 that month. That is a very hard thing to
00:13:26.800 do. But if you can figure it out, will
00:13:28.720 make your business very valuable to a
00:13:30.720 buyer. The reason this makes your
00:13:32.720 company more valuable is because it
00:13:34.880 turns your business into an annuity.
00:13:37.760 Think about it. Over time, even if you
00:13:39.760 don’t add any more customers, if they
00:13:41.600 can become more valuable to the business
00:13:43.839 because you figure out how to create
00:13:45.360 these upsells and sell additional
00:13:47.360 services as a natural process for your
00:13:50.000 customers, the buyer will feel better
00:13:52.320 because they’re not going to be
00:13:53.279 pressured to have to add new people if
00:13:55.360 you’re not able to make more money with
00:13:56.560 the ones you have. They know they’ll be
00:13:58.560 making more money over time by just
00:14:00.880 having ownership of your business. It’s
00:14:03.199 like a life insurance policy. It’s like
00:14:05.440 having a 401k. It’s like owning stock in
00:14:08.399 the S&P 500. Over time, that has made
00:14:11.680 money. It grows on its own. Creating a
00:14:14.079 business that can do that very valuable.
00:14:16.399 With that in mind, the next step is
00:14:18.560 crucial if you want to grow your
00:14:19.920 company’s worth. Step number five, don’t
00:14:22.079 put all your eggs in one basket. This is
00:14:25.120 what the money people call concentration
00:14:27.360 risk. For example, if you rely on one
00:14:30.240 big customer for 60% of your revenue,
00:14:33.199 that’s concentration risk. If you rely
00:14:35.279 on one or two partners to generate all
00:14:37.519 the marketing and sales for your
00:14:39.199 business, incredibly dangerous. These
00:14:41.600 are things that buyers do not want to
00:14:43.839 see. I remember when I started going in
00:14:45.680 business, I had a partner that wanted to
00:14:47.440 give me more business and I told my dad
00:14:49.440 and he said, “Whoa, don’t do that.”
00:14:51.839 Said, “Why?” He goes, “They’re already
00:14:53.360 40% of your business. If you give them
00:14:56.000 more, then they may get up to 60 70% of
00:14:59.040 your business. What happens the day you
00:15:01.680 don’t do what they ask you to do and
00:15:03.839 they take their time paying your
00:15:05.600 invoices and all of a sudden you grew to
00:15:07.680 meet their demand and then you can’t
00:15:09.120 cover your expenses cuz they stop paying
00:15:10.880 your invoices. Guess what they’re going
00:15:12.320 to do? They’re going to buy your
00:15:13.760 business from the bank.” That’s the risk
00:15:15.519 you run when you have one customer
00:15:17.519 generate too much of your revenue or one
00:15:19.360 marketing channel be the primary one. A
00:15:21.519 lot of businesses only have one
00:15:22.639 marketing channel, Facebook. They don’t
00:15:24.639 realize if Facebook shuts down their ad
00:15:26.240 account, their business goes to zero.
00:15:28.000 They don’t realize that if this key
00:15:29.519 person that everybody loves, that
00:15:31.440 everybody works with, if that person
00:15:32.880 left your business, you wouldn’t have a
00:15:34.560 business. Concentration risk.
00:15:36.399 Concentration risk isn’t just about how
00:15:38.560 you get your money. It’s about where
00:15:40.480 your leads come from. It’s about how you
00:15:42.399 deliver that service. It’s about where
00:15:44.560 you even get the supplies to deliver the
00:15:47.120 product to your customers. If you only
00:15:48.720 have one supplier and they know that,
00:15:50.560 that’s going to be a risky proposition
00:15:52.000 for a buyer. So, here’s what you need to
00:15:53.759 do to derisk or lower that concentration
00:15:56.000 risk. First thing is you got to keep
00:15:57.920 your top clients under 15% of your
00:16:00.560 revenue. Ideally, your top three
00:16:02.639 customers shouldn’t be more than 30% of
00:16:04.639 your total revenue. The reason why is
00:16:06.160 that I’ve never seen a scenario where
00:16:07.759 one customer leaving. You know, maybe
00:16:10.000 you won’t make profit the next month or
00:16:11.680 the second month, but eventually you’ll
00:16:13.279 replace them and you’ll get back into
00:16:14.800 normal business. It doesn’t create a
00:16:16.480 scenario that makes you unprofitable and
00:16:18.800 not be able to cover your expenses. In
00:16:20.639 my world, I don’t want any one marketing
00:16:22.959 channel to be more than 40% of my lead
00:16:25.600 generation. I have a business and at one
00:16:28.000 point Instagram was 85% of our lead
00:16:31.360 generation. And I went to the CEO and I
00:16:33.759 said, “We’ve got 6 months to bring that
00:16:35.279 down below 40%.” And he did. He went, he
00:16:38.160 activated other channels. He tracked it.
00:16:40.480 He made it a reward for the team if they
00:16:42.399 could accomplish it. So that way if
00:16:44.240 something happened to my Instagram,
00:16:45.839 which it did because somebody reported
00:16:47.759 as fraud, because that’s what happens
00:16:49.120 when you build a large channel and it
00:16:50.639 gets locked out for the 3, four, 5 days
00:16:52.639 that we’re trying to fix it with
00:16:53.680 Instagram. We didn’t skip a beat in the
00:16:56.000 business because we weren’t relying only
00:16:58.240 on that channel. The reason why this is
00:17:00.160 important is because diversification
00:17:01.839 makes your business safer to run. It
00:17:03.759 takes that single point of failure away,
00:17:05.919 and that’s what buyers are looking for,
00:17:08.000 safety in your operations. Now that
00:17:10.400 we’re in a safer position, let’s clean
00:17:12.319 up the way you run your business. Step
00:17:14.559 number six, write down how everything
00:17:16.640 works. Some people call these standard
00:17:19.280 operating procedures, SOPs. Other people
00:17:21.520 call them checklists or systems. I like
00:17:24.240 the analogy of playbooks cuz it’s a
00:17:26.240 sports analogy. So, we call ours
00:17:27.760 playbooks. Essentially, I want a
00:17:30.160 playbook for every department in my
00:17:32.080 company that explains exactly how we
00:17:34.080 think about, how we measure, how we
00:17:35.919 operate, how we review the operations,
00:17:39.120 the plays of that department. If you
00:17:41.919 don’t have them written down, then a
00:17:43.600 buyer won’t trust that they’re going to
00:17:45.360 be able to take the business from you
00:17:47.200 and operate it because there’s nothing
00:17:49.039 documented. It’s actually why most
00:17:50.880 entrepreneurs are stuck to their
00:17:52.320 business and they can’t get free or they
00:17:54.320 haven’t built a business that’s worth
00:17:55.760 anything to anybody else is because they
00:17:57.440 didn’t take the time to just write it
00:17:59.120 down. You have to make it easy for
00:18:01.360 somebody to come in cold, go through
00:18:03.600 your playbooks, understand exactly how
00:18:05.679 you make your secret sauce. That way,
00:18:07.919 they can keep making your secret sauce,
00:18:10.160 which means the revenue will keep
00:18:11.760 showing up. McDonald’s can open a store
00:18:14.480 in Japan and have a 14-year-old kid make
00:18:17.520 a Big Mac that tastes exactly the same
00:18:20.320 as the one I bought in New York City.
00:18:22.240 How crazy is that? Why? They have a
00:18:24.960 playbook for how the Big Mac is made,
00:18:27.039 where the product is sourced, how the
00:18:28.880 bun is toasted, how the beef and the
00:18:31.200 whole thing comes together. Any person,
00:18:33.600 anywhere in the world, same result. And
00:18:35.520 that’s why they’re worth billions of
00:18:36.960 dollars. So, here’s a simple way for how
00:18:39.200 you can build your playbooks. First, I
00:18:41.760 call it the camcorder method. I want to
00:18:43.600 record myself doing the task. Meaning, I
00:18:46.400 get to do the work. Let’s say it’s
00:18:47.679 accounts receivable or, you know,
00:18:49.600 scheduling a sales call. But while I’m
00:18:51.679 doing it, I’m recording myself and
00:18:53.840 talking out loud what I’m doing, how I’m
00:18:55.919 doing it. The cool part is then I can
00:18:57.600 use a tool like train.com, which is a
00:19:00.080 free tool. You can upload that video and
00:19:02.559 it will create using AI the playbook
00:19:06.000 from the thing that I just set. It’s
00:19:08.559 wild to watch it happen because most
00:19:10.400 people are like, I got to go away for
00:19:11.679 the weekend and document everything I do
00:19:13.679 in my business. And I’m saying, nope,
00:19:15.200 you can actually just run your business,
00:19:16.799 record yourself, and a tool will create
00:19:19.120 the playbook for you. Then we have to
00:19:21.280 store that document into some kind of
00:19:23.520 company wiki. If you use trainual, guess
00:19:25.120 what? That’s what the platform does. But
00:19:26.880 you can use anything. Use Google Docs,
00:19:28.799 you can use notion, but you got to put
00:19:30.720 it in an organized fashion. Why does
00:19:32.799 this increase the worth of your
00:19:34.160 business? because a well doumented
00:19:36.000 business is easier to scale and grow and
00:19:38.559 sell. Once you do that, now you can move
00:19:41.440 to the most important step of the
00:19:43.200 process, which is number seven. Build a
00:19:45.679 leadership team. A leadership team is
00:19:48.559 one of my favorite things to build
00:19:50.640 because it’s a team that runs the
00:19:52.880 company without you making every
00:19:54.559 decision. I know this is scary. They’re
00:19:57.120 like, “What do you mean? What’s my job
00:19:58.720 as a CEO if I’m not making all
00:20:00.400 decisions?” Well, let me tell you. One
00:20:02.559 is vision, two is money, and third is
00:20:05.120 people. Your job is to pick these folks.
00:20:07.760 And the better you do at picking the
00:20:09.679 leadership team, the more valuable the
00:20:12.160 company gets because a buyer is going to
00:20:14.080 interview them and see, do you have
00:20:15.919 great people if they interview your
00:20:17.600 leadership team and they find a bunch of
00:20:19.120 ding-dongs. You’re not going to get
00:20:20.720 bought for a lot of money cuz they know
00:20:22.160 they’re going to have to replace them as
00:20:23.280 soon as they take over. But on the other
00:20:25.520 hand, if you do this right, what I’m
00:20:27.600 about to teach you, you will have a
00:20:29.679 business that you may not even want to
00:20:31.520 sell because it’s so easy to run. One of
00:20:33.760 the first things you have to do is
00:20:35.039 empower your team to run the show. Steve
00:20:37.200 Job used to say, you know, it’s easy to
00:20:39.280 hire somebody and tell them what to do.
00:20:40.960 It’s hard to hire somebody and have them
00:20:42.720 tell you what to do. I don’t view that
00:20:44.720 we pay people to do things. That’s easy
00:20:47.120 to find people to do things. What’s
00:20:48.799 harder is to find people to tell you
00:20:50.640 what should be done. When I hire
00:20:52.240 somebody to take over a department or a
00:20:54.159 company, I give them the keys. I give
00:20:56.880 them the ownership. I give them the
00:20:58.799 responsibility. I’m no longer involved.
00:21:00.960 If the emails come in, I’m sending them
00:21:02.720 to you. I’m going to empower you to make
00:21:04.720 the decisions. You want it to be like a
00:21:06.799 sports team where every person plays a
00:21:09.200 position. They know the position. They
00:21:10.880 know the plays they got to play. They
00:21:12.240 know the responsibilities. They know
00:21:13.679 what’s required of them. They
00:21:15.520 collaborate with the other people. And
00:21:17.600 everybody expects to win. This is where
00:21:20.080 you realize you can’t possibly play all
00:21:22.480 the spots yourself and you have to have
00:21:23.919 team members that come on to help you
00:21:26.000 win. So, here’s how you actually build a
00:21:28.480 leadership team. First, we got to start
00:21:30.080 by hiring somebody to help run
00:21:32.240 operations. At the end of the day,
00:21:33.840 you’re probably best doing marketing and
00:21:35.520 sales. Having somebody start to manage
00:21:37.440 the operations and really lead that, own
00:21:40.240 it. Finance, recruiting, technology, all
00:21:42.960 the internal stuff. That’s key. Once
00:21:45.520 you’ve got that, then you look at
00:21:47.120 marketing and sales as leadership
00:21:48.799 positions, but you want to stay on them
00:21:50.559 until you build a machine that they can
00:21:52.080 run. Then you have somebody generating
00:21:53.679 the leads and then closing those leads
00:21:55.679 because somebody else is running the
00:21:56.880 sales team. That starts to get you free
00:21:59.360 and build a leadership team that makes
00:22:01.120 the business predictable. Next, you want
00:22:03.039 to create a dashboard. A simple clear
00:22:06.240 way to track their results every day,
00:22:08.559 every week, every month. The mistake
00:22:10.400 people make is they track the results
00:22:12.720 for those leaders. That’s not
00:22:14.400 leadership. The right way is have them
00:22:16.640 self-report, update that dashboard on a
00:22:19.280 meeting, report to their peers how
00:22:21.200 they’re doing to the numbers, to the
00:22:22.960 targets. That is leadership. You sit
00:22:25.840 back and you coach and correct, but
00:22:27.600 you’re not running or driving things.
00:22:29.360 Remember about the ownership. Having
00:22:31.360 somebody else that runs a show makes
00:22:33.360 your business more valuable. Then you
00:22:35.200 need to provide a decision framework for
00:22:37.679 those leaders to operate within. So, for
00:22:39.440 example, in my business, I have a $50
00:22:41.679 rule. 50 to fix it for anybody to solve
00:22:44.400 a problem they run into as long as they
00:22:46.080 tell their leader that they made that
00:22:47.600 change. I also have 500 for managers,
00:22:50.799 5,000 for directors, and 50,000 for
00:22:53.600 seale leaders in my companies where they
00:22:56.080 can fix anything without approval as
00:22:58.720 long as they let me know that they did
00:23:00.080 that. I do that because it pushes the
00:23:02.559 decision to fix problems down to the
00:23:04.799 people that have the most information to
00:23:06.480 actually solve it and it doesn’t make me
00:23:08.159 the bottleneck of all decisions. And
00:23:09.840 then last but definitely not least on a
00:23:12.400 weekly basis you have to hold a
00:23:14.080 leadership meeting. That way you can
00:23:15.919 align everybody to the vision of the
00:23:18.080 business to the goals for the quarter
00:23:19.840 and help them work with them to solve
00:23:21.760 the problems but only once they’ve
00:23:23.520 brought to you the problem and their
00:23:25.760 solution and ideas. All of this is
00:23:27.840 wildly important because you produce
00:23:29.600 strong leaders that reduce the risk to a
00:23:31.919 buyer and even frees up your time to
00:23:34.000 focus on growth. The reason why this is
00:23:35.840 so valuable is buyers value companies
00:23:38.480 with proven leaders already in place. I
00:23:41.120 just gave you a master class in creating
00:23:44.159 real wealth. How the 0.001% of the
00:23:47.120 people actually make their money by
00:23:48.960 owning a business that’s valuable to
00:23:51.440 somebody else. It can feel like a lot. I
00:23:54.799 get it. But I’m going to encourage you
00:23:56.559 to consider this. Follow the steps. Look
00:23:59.280 at what areas in your business are
00:24:00.960 missing and just choose for the next 90
00:24:03.200 days to fix one of those. If you do that
00:24:05.840 every 90 days over time, maybe in a
00:24:08.559 year, you’ll build a business that’s
00:24:10.320 incredibly valuable not only to you,
00:24:12.400 generating massive profits, but most
00:24:14.799 importantly valuable to somebody else.
00:24:17.120 See, your active income, how much you
00:24:19.200 make every month is money. That’s cool.
00:24:22.559 What’s creating the most value though is
00:24:24.480 what’s called enterprise value. And it’s
00:24:26.320 the value of the asset called your
00:24:28.400 business to somebody who’s willing to
00:24:30.080 buy it. That’ll make you rich. And
00:24:32.000 remember, if you want to access to my
00:24:33.520 gross ceiling calculator, just click the
00:24:35.279 link below and I’ll send it over to you.
00:24:36.960 Now, if you want to learn how to build a
00:24:38.799 business that runs itself, click the
00:24:40.799 video and I’ll see you on the other