Lead Gen vs. Closing: Which One’s Broken? | Ep 913
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But there's probably a hundred things that I want to improve about it. But every time I want to go improve one of those things, four others drop and it's not worth the cost of change. And so most of us just don't factor in the guaranteed 20% decrease for the potential. But then after it's all said and done, it's five. Was that worth it? No.

My name is Ricky. We have a bar cocktail mix that we sell to B2B, country clubs, resorts. Part of Ben Potts, who's on the Cash Guys. Yeah. We do 3.5 last year in revenue. And our biggest thing that's stopping us was my father. He was the main salesman that had a position. He's doing this full time as well as trying to focus on whether we should try to grow the business

just because a lot of people don't know about it unless they know us or referrals or just try to just get more. Can you explain a little bit more about the product? Yeah. So a pina colada, strawberry daiquiri, margarita, stuff like that. It's mainly, it's a frozen product. Something frozen last two years. Once you thaw it, it lasts a week.

But it's mainly for people who are high volume. So you can spout out a lot of drinks. Like through shifts and things like that. Yeah, mainly like a frozen drink machine or like a blender. Got it. Okay, and so the question is whether you should focus on awareness? Oh, like growing the brand because it's like not very public. It's only mainly people that know us. We talk about it or just people who guess are like, this is amazing. Are you currently all word of mouth? Yeah, basically. Okay, so you have no, well, you have your father who's

who does sales. Yep. And how does he do sales? Previous relationships from being in the industry for over 20 years. So outbound? Yeah. Okay. So what stops you from mechanizing his existing outbound motion and then getting like 10 guys to do it? We haven't done it. It's just, you know. So like, I mean, if I had to pick between more of that thing, right, and this brand new thing that you've never done, I definitely would mechanize the existing thing. Yeah. So yeah, it's going to be a conversation that you're going to have with your father. Obviously we can help, but like,

breaking down like okay let's take this thing and break into 50 pieces because it's not like hey how do you do outbound like that doesn't work yeah it's like okay what's initial contact look like what's first message what's second message what's gonna what's the script what's the opener what's the offer to get them kind of enticed once we have that conversation what's the thing that we can increase the pain between where they're at and where they want to go so we can insert ourselves yeah one of the biggest things at least is with getting them to actually try the product because it's like or it's like oh it's just it's another mix so once they taste it it's different but you

you know getting to that person of decision is you know hard to say there are so many ways to do that yeah but yeah i mean you you need an outbound motion there's probably a combination of conference slash trade show that would work really well too especially because you are at pete like literally tasting yeah and it would probably crush in that setting probably be very easy to sell yeah i just don't i don't think you should go brand now especially since you built the whole business off b2b yeah i would just do more of that for now to start

Okay. Thank you. Of course. My name is Sam Tierling. I sell a service. I own a transportation company. Cool. We deliver chemicals to the fracking companies, last mile transportation. Revenue-wise, we did 10 million last year. The year before that was seven. The year before that was five. Nice. And it just kept growing. Awesome. And this year, decided to slow it down a little bit, not like get myself out of the day-to-day. Okay. And it's worked. While doing that, I realized that

can make more money taking and selling to customers that my customers don't sell to, the same product that we're transporting. So that was pretty good. All right. So I'm more of a specific type of person. I transport polymers, virtual inducers. SNF is one of the biggest. They make it. There's 40% of customers they won't deal with that want to deal with me, that want to buy from us. All right.

My struggle is I figured out how to continue to replicate the trucking industry, like the trucks and grow that. So do I keep focusing on that, which is a very cash-intensive business? I can actually put a lot of money up front. Or do I use my trucks to sell the product to the end user?

But I also struggle with that because how do I balance the two? So if I'm regularly floating a million and a half, two million in receivables for BKT, and I want to start buying the product, well, I have to pay in 30 days. I'm not going to get paid. So basically, if you're buying the stuff that you're going to sell to the end users, you're going to add cash constraint to the business. Okay. Right? Yeah. So then they would further constrain. It would basically pile on these constraints.

So said differently, why do it versus just doubling the existing business? Because like the way that I'll explain where my thinking is. So I had a good friend of mine from high school, actually, that's a strong statement and acquaintance of mine from high school who had a, had a general contracting business and in his general contracting business, he realized he was, he was pretty good at roofs. And so he started doing roofs and I called him up. I was like, Hey, how's the business going? He's like, ah, we're growing. It's great. And so he was explaining. So he's like, so we, you do roofs primarily. I was like, okay. And he's like,

We also do some contracting work. And I was like, okay, that's another thing. He's like, we also kind of buy and flip houses. I was like, okay. He's like, but that's, he's like, I didn't want to leave money on the table, which is like my favorite entrepreneur statement ever. And I was like, so what stops you from being a billion dollar a year roofing company? And the answer is the general contracting and the real estate flipping. I was like, well, what stops you from being a billion dollar a year real estate flipper? Answers the roofing and the general contracting. And so basically if you already have a winning model to

To me, I'm like, there's no reason to not just become even better at this thing that you're currently doing and compound the competitive advantage that you have. There's always going to be better. There's always going to be opportunities. I guess I looked at it as more of a control thing because there's

For the most part, our customers we've started with have been with us for six or seven years. On the trucking side? Yes, on the trucking side. But they also do dictate the rates. I can continue to raise my prices and eliminate customers, which we have done, but they're only willing to pay so much. And it's like, well, if I'm selling the chemical, I'm still going to get what I want for transporting it. And then you're getting paid to sell it too. The only reason I hesitate is it adds complexity to the business. Again,

Given the limited context that I have in five minutes of hearing about the business, it's a huge decision. But from my personal experience, when I had gym launch in Prestige Labs, I basically said, oh, I've got this distribution base of gyms. And so why don't I just sell supplements through my distribution base, which on the service level seemed like a smart idea. But what it ended up doing is that it completely slowed down the growth of my main business, which was the licensing business.

And so it felt like, oh, there's this big pot of gold right here. But if I took all the attention that I put into starting this supplement company and manufacturing it and distributing it and testing it and the flavors and the marketing and all that stuff and the support team that I had to do for the product, I could have taken all of that energy and just gone double down into the thing that I should have done. It was one of the bigger mistakes that I've made.

And so if you already have a business that's gone from five to seven to 10, I'm like, well, maybe next year you're at 13. Year after that, you're at 17. That sounds like a pretty good business. I guess it was more of what I wanted to do. If you want to do it, that's a life question more than a business question. How do I make sense to not screw my first business up? Well, yeah, that's always the, I mean, like there's always opportunities. And the thing is, is the bigger distribution base is, which it will continue to grow, the more enticing the other opportunity will be.

right? The woman in the red dress, she just always is more and more attractive. The more distribution you build, the more skills you have and the more opportunities you see. Believe me, the amount of opportunities that I have to turn down now is sickening, but it's just like taken to the natural extreme, can I build a $100 million per year trucking business? If the answer is yes, then what risks that? Everything that isn't that. That's fair. I mean, it seems like a simplistic way of viewing the world, but it's also really hard. But I also think it's probably the right call.

I guess I was more or less thinking of it in transportation most of the time for hazmats companies. Once you get to where you do 15 to 20 million revenue, you get bought out. Okay. Like Quantix, Hennep, Dana. Do you not want to get bought out? No, I started this because a lot of- You could always just keep owning it because they can't.

force you to give, they can't force the money down your throat. No, I'm just being real. Like, I mean, a lot of people take the exit then because at that point they probably have, you know, between, I know what are margins. Okay. Yeah. So 20, you got 4 million in EBITDA, maybe five. Right. And so at that point they maybe give you eight or 10 on it. And so most people are like, okay, well for 40 million bucks, I'll walk away.

And that's why a lot of people, usually that's, I mean, I think part of the reason that institutional investors come in at that five-ish million is that at that point is where most business owners are like, okay, this is enough for me to be done forever. And that's probably why there's a ton of them in any activity. This is me just speaking speculatively. So I don't think there's anything inherently like, okay, if a lot of people get bought out at 20, fine, but there's also companies that get to 100. And it's usually just a more stubborn founder who does it for different reasons, which I actually think is a good thing. Okay. No, that gives me peace of mind. Thank you. Yeah, you bet.

My name is Chase. I own an exhaust hood cleaning business in San Diego. So we sell like- Exhaust hood cleaning? Yeah. So we do like grease removal from ducts, fans, hoods in restaurants in San Diego. Cool. Where we're at right now, just hit month six. Is that like 18 wheelers, like semis that you do that on? What is that? We just have like a van with a hot water pressure washer and chemical rolling the restaurants.

Got it. I want a water and truck. Okay. Oh, so restaurants. Restaurants. Okay. Got it. So like in all the restaurants, there's a hood system above where they cook. Yeah. It's like a fire hazard. So everyone has to legally do it. Yeah. It's a great business. It was described to me differently in a different setting. So yeah, it's a good business. That's why I kind of put it in there. Or else people are like, what the hell are you talking about? Yeah. So we just hit month six. We're doing like

6k a month right now okay but we have people on it's a subscription based business so our book right now for like yearly recurring revenue is like right around 100k cool i think what's stopping us right now is just like not a clear offer all right because i deal with restaurant owners who only care about their bottom line sure a money thing those businesses yeah true they're like well if you can give me a better price i'll give you a shot and

And right now I'm just like the hungry kid that's like, "Yeah, I'll beat your price easy." So I think what's stopping us is figuring out pricing and offer with a service that more or less is the same no matter who you go with. But we have added value adders with like customer portal, streamlining, backend support, things like that. So you say that to the business owner? Say that to the business owner. How so? There's good fast Jeep, pick two.

And so the problem is you can have somebody else who can do this. To your point, you started with the premise that this is a commoditized service. I would just erase that from your memory because at the end of the day, you have to believe before anybody else that it's not a commoditized service. And so I would say, what are all the reasons that somebody who sucks at this sucks? And let's fix all of those things. And so what's really interesting about good, what does good even mean?

So good is basically the absence of hard. And so I think about this when I'm creating a product or service, and this has actually been really helpful for me in terms of how you operationalize value in terms of quality, is you think, what are all the things that suck about the existing services? What makes it hard? And so a lot of people use the term friction. And so something that is easy, you can't make something easy. You can only make it not hard. Like if I said, make it easy, it's like,

when something's easy all the hard vanishes and all that's left is the outcome right and so if we want to make our products or services easier which then means more valuable we have to remove all of the elements that make it sucky real quick guys i have a special special gift for you for being loyal listeners of the podcast leila and i spent probably an entire quarter putting together our scaling roadmap it's breaking scaling into 10 stages

and across all eight functions of the business. So you've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, you've got HR, you've got finance. And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages.

for each of the stages. Once you answer the questions, it will tell you exactly where you're at and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com/roadmap, R-O-A-D, map, roadmap.

And so if we're thinking about the competition they're competing against, maybe a lot of them are not that personable. Maybe terrible service. Maybe they don't do a complete job. Maybe they're not willing to come back if something happens. What risks does the restaurant incur if it's a shoddy job? Is there a cadence that they have to... Maybe we can treat it in a way that allows us to come half as frequently so we're more per cleaning, but they don't have to pay it as often. So we have higher gross margins.

And that actually works fine for us and it's less for them.

You hear where I'm going with this? Yeah. And then from an economies of scale perspective, it's like, how can we increase... Now you're super early on this, but over time it'll be, how can we increase route density so that we don't waste as much time and so we get more efficient with the routes and we can ultimately make more than our competitors or at least increase our gross margins even if we keep our price fixed. Right. No, that makes sense. One more question. So everybody has to get it done at least twice a year. So we're signing people a year agreement anywhere from twice a year. Some people do quarterly, some people do like

three times a year. So based on what you just said, would you recommend potentially going more towards just pushing semi-annually, but keeping price higher so that they feel like they're paying less over the year? Yeah. I would look at my gross margin. I mean,

Real, real, I'd rather sell someone more. Start at four, downsell to two if you can, and then probably play with payment terms, which is like, can I stack more of that cash up front versus getting paid quarterly? And flow up front. Yeah. Okay. Gotcha. Cool. The big picture, I mean, if I'm you, I'm putting all my effort into trying to figure out how to decommoditize my service because it is probably the most important thing. Otherwise, you're right. You will just consistently be dealing with... If you are...

the same to the customers, the first chapter of offers. If you're the same thing to the customer, these two things are about the same, I'll buy the cheaper one. It's the worst comparison. It's not the fight you want to fight. So it's like I put all my effort whenever I start any business or any product line into why is this different? That's my full thought. I don't even think about pricing. I don't think about anything until I answer that question. And I have to at least be able to articulate it to them really simply, which is like, here's the five things that happen that suck. Here's how we don't have any of those five. And for that in exchange, instead of paying this,

you paid this, but this is why it's worth it. Right. And then in that, our only form of outbid right now is just like door-to-door, knocking restaurants and then cold email. So then building that offer out with the decommoditized, that's even a freaking word. And then put that into the offers, the emails, the text, the cold outreach basically, and just sell the shit out. Sell the shit out. Heck yeah. Thanks, dude.

Kyle, I sell outdoor lighting to homeowners. We do 880,000 revenue. About 40% is in the holiday season, doing Christmas lights. The problem is we don't have enough leads in the not holiday light time of year. So the first half until basically now- I've fixed this business so many times. So I'll just walk you through it. Yeah, for sure. Okay, cool. So basically you have one kind of existential decision that you need to make, which is, are we going to be full-time lighting? Which there's nothing wrong with that. You look at the Hollywood store.

Like they're open two months a year and they just murder it and that's all they do. Right. The alternative is that you basically have a home team that goes from lawn care and other home services to lighting. The lawn care guys have the equal opposite issue. They're like, okay, well, there's grass that's growing nine months of the year and then it's holiday season. And what do my guys do for three months or four months, depending on whatever geographic area you're in. Right. And so I tell you which one I prefer. I prefer the keeping the holiday season business year round.

And I'll explain why, but either option works. I just want to be really clear about that. I like thinking about it, how many months of the year are you doing the lights? Three? - Yep, 45 days. - Perfect. So the way I think about it is how can I take, how can I equip my existing team with as many skills as possible so that the other 10 months of the year, all they're doing is getting business. And so like the perfect business in the world is you sell all year.

And then you have to deliver for this much. It's an amazing business. You just collect cash all day long, collect cash, collect commitments, collect cash, collect commitments all year round. And then you boom, you basically earn the living over the next 45 or 60 days. And then you go back into the sales cycle. And so that's one way of doing it. I like that because it's such a simple, like you just have to think about one thing for 10 months, which is marketing and sales. Yeah. And that gets pretty nasty. And the cash flow is really good.

The alternative obviously is you're like, okay, well, these guys don't have these skills, which then begs the next question is what type of talent would I need to facilitate model A versus model B? If you have model B, which is maybe a lower skilled people who work for you right now, then it's like, okay, can I buy some lawnmowers? Can I buy some landscaping stuff so that I can give them something to do for the other nine months of the year?

Yeah, so we were doing lawn care and picked up Christmas lights to fill that gap. Well, where I live in October, you have to do both. So I got rid of the lawn care. Okay. Well, just Christmas. And you made better margins and all that. Yeah, yeah, yeah. So that was awesome. So what we're doing now is project-based permanent lighting jobs with the exact same team. So we can literally just shut it down as soon as Christmas time starts. Cool. So I guess what you're saying would be just sell Christmas all year.

Which is like really hard to sell this time of year. Really like super easy to get leads in Christmas. Yeah. So my thought was sell permanent lights. And then also 50% of them still get Christmas lights. But... Why not do that? That is what I'm doing. Well, great. Well, so the problem is the leads problem. Okay. So I'm running out of Christmas light customers to sell landscape lights to because that was a natural first, like easy to get them. Well...

I'm running meta ads. So lead gen for permanent lights? Yeah, exactly, is the problem. So what I'm trying to figure out is the problem like lead magnet issues or landing page issues is where I'm at. Right, so now we're in the middle of it. Yeah, yeah. No, I'll bet you that the crate is probably not that good because I think it's a pretty easy thing to sell. Yeah. The permanent lighting, like you show a house before and after, you show the dark before and after, like, oh look, lights. I just think it's very visual. Yeah, yeah, yeah. I actually think that the ads is probably the issue. What's the lead magnet you're offering right now?

we come to your house to do a free demo so you can see how it looks. Yeah. I'd probably try and enhance that offer. The nice thing is in local markets, it's very offer driven. I'd have to think more than three minutes, you know, two seconds about it because it'll be the front end of the whole business. But it would probably be some element of some amount of lights that come for free. So like, I think something that would murder would be like, can I light someone's like

not their deck, but maybe their side, from the sidewalk to the house, or can I just light the driveway? Some small element. So we talked about in the leads book, a lead magnet can either be a trial of something, it can be one part of a multi-step process, or it can be a third thing.

But for yours, I think the one step at a multi-step process, I wrote it down so I remember it. Because I'll prefer to start with a banger offer and then add friction. Because the thing is, you can say, I'm going to give this away, but you don't have to give it away to everybody. You can say, I only give it away to houses that are over X. And you can have people put their address in and then run an API to Zillow, look at home value, and then rank order the leads based on value of home, and then basically prioritize those leads ahead of time.

And so you can go to those, you know, those houses first and probably sell much bigger, bigger packages overall. But I think if I'm struggling to get leads, I just need them to say they want lighting. I don't really care how they say they want lighting. Yeah. I just need them to say they want it. And then the sales process takes care of the rest. Cool.

Do you like that? I'm just trying to process. Yeah, yeah, yeah. Like how that would go. I mean, you're 100% right. That's the problem is people, once they say they want lighting, selling it is easy. Yeah. So I just got to get them to say it and put their phone number on those things. So give them a better offer than I'll give you a free sales pitch.

No, I'm just being real. Yes. So, fundamentally, that's it. So, I think you say like, we'll do the install for free. You just cover the cost of the lights for this tiny amount. See how I'm developing. I like it. All right. Now, you put the markup on the lights and put zero on the labor. It doesn't matter either way. You just basically mix and match how you're showing the money. And that way, you'll still break even on that first thing. And you'll just know that one out of two or whatever it is, you buy the first thing by the 10 times bigger package. And then that's just math. Cool. I see. I like that.

I like that. Awesome. Thanks. So my name is Kira Brinton. Embrace myself. We're going to clean out my closet for a minute, okay? Okay. So last year, my company made a million. I've already made a million this year. So I think I'm on track for four, but I hope to hit 10. So here's the deal. Okay. Is that I get really bored. Right. And so I'm also a really amazing visionary. And so I've built a lot of different things. And what I'm needing right now is I need...

clarity okay and i need you to i would love for you to help me focus okay so i'm going to share with you i'm going to share with you what i've done i'm going to share with you what i have and then i would love for you to show me is how do i get clarity okay what do you sell yeah so i have a publishing house okay but really what i've sold is that i take people on these five-day adventures like luxury adventures and i can help people channel their books in five days right

And that's what's filled my pocket. But it's also just not scalable. And so it's not skilled. Well, because one week a month I'm on these adventures and I love it, but it's like there's like a ceiling. And so then I like rented this island in the middle of the British Virgin Islands. I took 15 people there. We all write their books for five days. And so that was like scalable.

which that landed me a TV show. So now I have like this TV show, but then I have like, like their publishing house. And then like, I have this business school for women. Yeah. And then like, I'm also like a single mom of five kids. Also, I like write books on the corner. Also, I did a live event in January and close 1.25 million in five minutes to a crowd of 30. So it's like, I have all these things. I just like, yeah, you got to pick, you got to pick one of your five kids. Yeah.

The 10-year-old all day. There you go. So you just got to think about which one's the 10-year-old of your business. It's just like the roofing thing that I said. The thing is, is the more talented you are, the more opportunities you know you could crush.

which just means more things you have to say. And it's just like, it's the reality of it. I mean, the thing is, is there's a price to that, which is if you continue to do what you're currently doing, you pay a price on either side. If you continue, you pay the price of how big the impact you want to have and how big of a business you ultimately build. That's the price. What you get for that trade is you get to have the novelty and the excitement of new things happening all the time.

On the other side, you build something really big that has teams and systems and it just grows really large, probably maybe not bigger than your vision, but large, much larger than what you have right now. And what you give up for that is all of the novelty that's associated with doing new things. Yeah.

So which one? Well, it sounds like you know which one you should do and want to do something different. I feel like when I've been looking at, okay, well, what has brought people to me? It's always the books. And I keep trying to get out of it because there's so many people and there's so many things and all these systems in publishing. And I'm like, but if I just ran the business school, I don't have to have all these editors and formatters and book covers, right? Right.

But then I look at like, well, what do people always come to me for? It's always books. So you run the business school, right? Yeah. So imagine I come to you and I'm saying, hey, I've got this business that everybody wants to buy from me. It has good margins. I sell it like crazy. But I have four other businesses that I want to start. They don't grow as quickly as this other one. What should I do? Weird. Sounds so easy when you say it. Yeah, obviously. Right, right, right. Yeah. Yeah.

Yeah, okay. No, I mean like that's the, I mean the thing that what you're encountering is a problem I think everybody in this room has dealt with, right? It sucks. But like you have to realize that like you can't pursue every opportunity. Not only can you not pursue every opportunity, you basically have to say no to every opportunity to be able to make one opportunity worth pursuing. If my TV show is on Amazon Prime and I'm helping people write books,

And then I'm like, but I'm pushing my business goal. Like that doesn't even make sense. Yeah, I wouldn't push the business goal. Just have the media asset of Prime that pushes you writing books and then help people write more books and then have a second season of Amazon Prime helping you, you know, people writing books and then some more people writing books. Yeah.

All right. That's my financial advisor on the front shaking her head. We got this, Julia? Yeah. Julia's like, I've seen the financials on the book. Do more of that. I want to hit on this one because I think I'm not really talking to you. I'm talking to everybody else. I had these massive multi-year plateaus where I just stayed stuck because I wanted to pursue every single thing. And so you have to trade novelty for loyalty.

And so it's like you become loyal to the business. I also think that it occurs with relationships. Like you make the trade. Yeah. A new person every week, every month, every whatever for somebody that you know that you've built something meaningful that's deeper. It's kind of like I think business in a lot of ways is like a fine wine where like you understand it at a different level as the years go by and you go through different seasons. And I think that you miss out on that opportunity if you're going after one night stands and flings from a business perspective. No, but like I'm keeping you. I feel this. Know that. This is helpful. Thank you.

yeah you have to life will not give you what you want if you want everything damn like we have to make trades but we get nothing and it's tough and i think there's a big at a big realization i want to say a few years back where once i realized how much work it takes to make something truly great and something big i had this moment of like deep sadness where i realized that i could only do a few things throughout the rest of my life i was like oh i only have like

two, maybe three entrepreneurial seasons left in me. Yeah. Which is kind of like crazy to think about. It's like, I only get two or three more big swings. That's it. And the real, real is that if the swing just keeps going, which is what I plan on doing acquisition.com, it's like, this is it. I'm going to do this until I get too old to do it. And that's it. Yeah. That's all it is. Now, what I want to do is give you something tactical, right? Because this is, we were all the way up here. So I'm going to make a video on this because I think it's really helpful.

Which is that you have to take your creative energy, and I have a lot of that too, and you have to channel it into something that is accretive to the business. Something that adds value rather than something that attracts value. And so what are the components of the business that need novelty on a regular basis? I think... I can give you a hint.

What? Marketing. Marketing. I was just going to say sales and marketing. Yeah. So if you want to build and you want to create, I have the same pitch. Yeah. I put all of my ADD into content. I've become a significantly better entrepreneur by making content because it distracts me from fucking up my business. Yeah.

This is legit. I just wrote a book about this. I just wrote a book about when leaders get bored, they just fuck it all up and burn it in the city. Yeah. And I just keep doing it over and over. So instead, just paint the city. Okay. Just paint it. Don't destroy it. Just paint a different color. Got it. And so that goes for everyone. My ADD, I put it into ads. The reason I write books is mostly for me. Layla's like, can you just write another book?

Because she's like, you're just getting into all of these things that you should just not get into. Right? And so the thing is, is that when I am in writing mode, the business does exceptionally well because I do so low. Yeah.

right? Feel this. Yeah. I don't normally talk about this, but I think this feels incredibly relevant. Yeah. This is going to feel real for you. Yeah. And everyone else. So let's imagine the business, like everyone's revenue here represents this line, your revenue, not aggregate. That's your business. That's normal business. What I realized, this is me, so this is anecdotal, is that whenever I decide to make a change in the business,

I see about a 20% decrement or decrease in performance from whatever that changes. So I change the sales process, I change the leadership process, they change the onboarding process, I change something that I have to train people up on something new. Now, even if that change is something that I think is superior, I'm still going to have an immediate decrease in performance. Now, if I assume this to be true, which in my experience, it's been about 20%. So if you're like, what's the data research behind it? It's Alex doing this. All right. Now,

If I think that this improvement is going to make, let's say, a 5% improvement in the business, I think it'll improve our closing rate by 5% or something like that, then I'm going to take a guaranteed 20% loss for a potential 5% increase. Bad trade.

Now, how many months is it going to take me in order to make up for the 20%? It's going to take four or five months, right? And it's going to... Now, here's the really fun thing is that on an alternate timeline, you have this thing. But when you leave people alone, they tend to just get better at their jobs. So you'll get the 5% improvement. And so what's happened is that I've actually created this rule, which is that if I don't see an adjusted, a risk-adjusted 20% improvement... So let me explain what I mean by that.

which is I need to see a 40% improvement that I think has a 50-50 shot at happening for me to make any change at all. Yeah. And so I have a list right now. It's Alex's big list of ideas. Yeah. Which I encourage you to have. Okay. And I have it. It's on my phone. Where every time I think of something else that we could do to improve this business, instead of messaging the team and saying, hey guys, emergency meeting, we're going to do this. This is such a great idea. I just write it down. Yeah.

and I just keep living my life. Okay. And every once in a while, I'll have one where I'm like, this is actually a 40%, 50% potential move. Then I'll go to the team and say, here's my reasoning behind this. And then they'll say, cool, you have four other 50% return moves that you've told us about in the last 30 days. Is this better than those ones? And then I'll look at it and be like,

That's not better than this one. And so then I'll keep it on my list. And in the event that the entire team is bandwidth and they're all breathing a little too easy, then I can go destroy their worlds. But what's ended up happening is that my businesses have improved so dramatically by me just saying, let's just let people do their jobs. And so I'm going to be crude yet again, just to emphasize this point, which is that I have grown to accept that some shit stays fucked. Yeah.

And so there are tons of things about the experience that you guys went through today. Hopefully it's been really positive between yesterday and today. I hope it has been. The team was great, but there's probably a hundred things that I want to improve about it. But every time I want to go improve one of those things, four others drop and it's not worth the cost of change.

And so most of us just don't factor in the guaranteed 20% decrease for the potential, which we're usually overly optimistic on. I think this will be 40%. But then after it's all said and done, it's five. Was that worth it? No. Yeah. And so hopefully this is not... I'm not just talking to you. I see a lot of heads nodding. This has been one of the most useful razors that I've used as an entrepreneur and has made all of my business significantly better. And so tactical takeaway for you is...

Number one, channel your ADD into the stuff that benefits the business by being creative. Number two, make a list of all your crazy ideas when they come up and don't tell anyone about them. And if it seasons for two or four weeks and you still think about it, it's like maybe when you go to the store, you're like, maybe I'll buy this dress. And then you decide not to. And it's like, if you still think about the dress a month later, then go back and buy it. But in the moment, if you buy it, then it's usually a terrible decision.

And so it's the same thing with this. Put the list down, sleep on it. If you're still thinking about that idea a month later, it probably has some legs. Yeah. Right? And then number three, if I am going to pull something off of my big list of crazy ideas, it better be worth it because I'm going to absolutely detonate a bomb in my business and it better be worth what's going to happen when the dust settles. Wow. This was hard for me to hear and like everything I needed. Thank you. Cool.

Thank you guys.