everybody in this room is making between $1 million per year and $12 million per year, and we just talked for the last 60 minutes on how to scale their business. Enjoy. All right, so you got neuropathy. Um, you're doing 5 million a year. What's the model? Uh, done for you scheduling. Okay. Le, okay. Is it local neuropathy stuff? Yeah. So diabetic dinners and all that jazz dinners and yeah, familiar with the model. Okay. Um, so then what's the what's the what's the big play? Uh, our, we're, we're niched pretty well. Like I think we're probably the biggest in our niche. Um, it's a smaller group meaning like there's maybe 2,000 doctors that do neuropathy specifically. Um, so and we have 160 of them. So it's not, we're still, there's still huge potential for us to, I think we get 300 or 500 or th000 maybe. I don't know what's the Ang go for you. Um, I'm, I'm just cash. Okay. Yeah. Yeah, no I

I asked because it's like, is it to build it to sell it? Is it to have? Yeah, I mean, I think selling would be cool. It has to, it have to go to different verticals. I mean, I'm like, I'm way too risky on the checklist. Oh, not necessarily. I mean, 'cause the thing is, is like the ultimate version of the model that you have is like, you've got 160 out of like 2,000 neuropathy clinics, right? So, you've got like pretty decent, you know, you got whatever that is, 8% of that, like pseudo of like niche of a niche of a in Market. But those guys make how much? These guys make a year like, um, between a million and 5 million, right? And so, this is where this gets like way more interesting, in my opinion. So, it's like, you've got 320 million a year. I'm just using an average, right, per year that you're driving in revenue. And it's like, man, I'm making five. I'm like this.

sucks, right? Oh, that you're like, how can I get more of that um? And so, the thing is, is like, I think the ultimate version for like the quote info and agency space that I know those are different things, but fundamentally they serve niche, niche avatars that are B2B. The ultimate version of those businesses is roll-ups of the customers you serve. Because if you think about what like a roll-up does, I don't how familiar you are with it, but like you get everyone on the same marketing, you get everyone on the same price points, you get everyone on the same packages, you get basically, you consolidate what everyone's operations are. And that's what the majority of super niche agencies and kind of in info consulting, whatever you want to call it, do with businesses. So, they do all the heavy work of integration for what a roll-up would do, and then they just say like, okay, I'll stop there. I just won't like actually push it over the edge and monetize the whole thing, um. And so like

most of the Physicians that I know hate being Physicians. They do it purely to make money and want to be out of it as soon as possible. And so like selling them on the idea that like okay, your practice does you whatever 2 and a half million a year of Topline and whatever 1 million in profit, uh, that's awesome. And then you have your, you know, taxes that you're taking home 600k year after that. Like that's great. But what if and on your own this thing could maybe sell for, I don't know, 3 million bucks, maybe like maybe if you're really, really, you know, we're being really generous. But if you were part of a group of Physicians that were a neuropathy, you know, thing Nationwide, uh, we could probably sell for like your thing could probably sell for 10 million. And so all I'm asking for is a, you know, 20 to 30% slice of that but times 160. And so obviously of the 160, you wouldn't do with all of them. I mean if

you did that would be a monster deal. But like if you could get like 10 or 20 of them to roll together, because they all probably do have enough like enough profit together to be meaningful. So it's like if you get the roll up to be like 1 to $20 million in terms of profit, that would be a meaningful exit. That would be probably like a 100 to $200 million exit, and you have 20 to 30% of that. But then after that point, you're now the guy who did that, and so then your whole reputation changes, your dynamic changes around pricing, you're a long-term stick, all of that kind of stuff changes because it's like, Oh, I'm the guy that can get you to here. And that's also the like get rich know if you don't have to do this again, which is a much more compelling offer. Can I ask you a side question? You guys, uh, when you switch to licensing, so I remember I know OG flying around and then more less OG they were flying.

around for you and then more recent. Them doing it for for themselves, right? And I gave them the ads that we test, yeah, right? So the transition for you from doing it for them to doing it to then doing it themselves. And you being a coach, does that I would never use that word, but yeah, yeah, does that work? Do you think that that looking back, would you would you have done it that exact same way? Would you have switched to the licensing model and like, and is that what you're calling licensing joke? I mean, because like, we had ads that we would test every month, and then we would just let everybody else use them. And tons of people tried to use them that weren't ours, because they would copy the gyms that we had ads, and they'd like, I'd have ads gyms using my face to run ads for their gym. It happened all the time. So, um, would I do the model we had again? Yes. The reason that we didn't do done for you was two things. One is or like

the reason do it yourself for your avatar doesn't work is that they make too much money. Yeah, a gym owner. The value of learning the skill exceeds their current skill. It makes more sense for somebody who makes $35,000 a year to learn how to market and sell than somebody who makes a million dollars a year to learn how to market and sell. They've already leveled out of that in terms of like because they can pay somebody less than they make to do this for them, whereas the gym owner can't. It makes sense for them to learn that skill. And then from the reason I didn't do a rollup is because group-based service, there's zero, there's zero market for it. No one wants to buy them. If I had been in a market where people were buying for like for sure, I would be. I would, that would have been the model I would do. Beautiful. Yeah, out of respect for. I'm going to rock and roll. Does that make sense? Sweet. Yeah, so we do permanent holiday lighting that's R off.

Smartphone um on homes and businesses um my question, I guess, would be, or I guess, our constraints. We have no Revenue retention um, and so we've dabbled with, you know, maybe doing like a maintenance plan, you know, where we upsell people things like that, um, or you know, having paid subscriptions in our app, but so who's your customer most of the time, uh, it's kind of a, it's a healthy split between like elderly and then like people want to keep up with the Jes, okay, and so the light, so tell me more about like tell me more a little bit more about the product is have a better understanding of it, yeah, so basically um, we install an aluminum track system into their existing soft, and it's got LEDs, and so you can do any holiday game day accent lighting, it's all right that is that like the Philips hu type type deal I don't want to like oversimplify what you're saying, I just want to make sure I understand it it's kind of like that it's much bigger.

cooler, what's the average ticket? Uh, about 5,000. Okay, how do you get customers? Um, through Facebook and I guess met ads, but ads you didn't paid ads in your local, yeah. Okay, got it. How many locations? Just one. Okay, one location. What are margins? Um, we're about 60%, depends on the season. Um, so you make, you make a million bucks, you keep 600. No, well, we check about 51. Okay, great, you're doing half awesome. What's CAC? Um, 300. 300 bucks for 5,000 LTV, that's great. Okay, so um, so a couple things. So if you want to get revenue retention, um, you want to measure how long you've been in business. So I've been with the company for a year. Okay, about two years. First year was just, you know, vetting products out and stuff. Got it, but do you own it? Yeah. Okay, got it. Okay, you said been with the company, so I was like, I don't know what that means. I've been with the acquisition. Comom as

well um um okay so uh so again we're thinking about this from a revenue retention perspective um one is is there so you install this thing for the lighting um what else do those people want like is there anything else you can add on top of it because like you have to Keeping Up With the Jones I'm sure that during certain Seasons they want to do other razzled Dazzle things and so like you can you can assemble and then disassemble things multiple times a year uh for seasons for Super Bowls for things like that I don't know if that's too different from the type of lighting that you currently do but like it's not too different now I get people asking all the time if we'll do their trees or if we'll do you know other stuff that's not permanent yeah so I would see the impermanent lighting as like you run two to three seasonal campaigns a year so I'll bet you Easter would be one if you're in Utah I'm sure that'll be big

Christmas will obviously be big in Utah. Um, and then, you know, pick your third date. Maybe Halloween's not as big in Utah. Um, I don't know. I'm just, I'm just messing around. Um, but even if you had, you know, one or two cracks at the Apple. Um, cracks at the Apple, whatever. Bites of the Apple, uh, every year on top of that, that keeps you top of mind. And then, like, when you go there, you're like, Hey, we also do it. Like, we'll do standard double check. Is everything working okay with the lights? It gives you UPS opportunities, but you still, like, generate other revenue. And then when they want to replace it, it's like, Hey, did I tell you about the new lights? 'Cause these ones are old now. The new ones are, oh my God, let me tell you. Let me show this thing on my phone. I did for your neighbor Susan down the road. Hers looks sick. Didn't know if you're interested in that. Um, so it's like those become UPS opportunities. And instead of saying like

it's um recurring. It becomes reoccurring, so it's slightly different. So like Coca-Cola has no recurring, basically no recurring members, uh member like memberships, but we buy Coca-Cola products all the time. So we have reoccurring. It's reliable Revenue. It's just not on a membership or a subscription. And so basically all you'd have to demonstrate to make the company a lot more valuable is simply having the data to track that we sell a customer for lights and we sell one out of two another thing every year, whether that's an upgrade, a maintenance fix, or it's lights that we do for seasons. Like if we can just show that half the people continue to buy something from us every year, that still makes it a very valuable business. Does that make sense? That would be it. So my name is Cameron. Uh, we do residential real estate flipping in the state of Missouri. Uh, we did 15 million revenue last year for 3.7 um gross before overhead. So 2.5 after you take into account our team 15

meaning like the how much the houses were when you sold them, and then the three we sold $15 million. Yeah, it was like house sale price, the profit on each project was 3.7, which is it helps us tell how well we're doing on the projects, and then you take out our team, and you end up with 2.5, like evida, I guess. Sure, um, I was trying to think of the constraint all all week, you know, uh, zero Revenue retention got highlighted in the in the thing, but for us, I think it's going to be that I would we've kind of captured the market we can capture, which for what we do is a driving radius. Like we've, I would say, dominated within 4 hours of where we're at, which is like you drive 4 hours to a house to evaluate it and 4 hours back, your day is gone, um, so we're kind of at a push or pivot moment of like do we we do no advertising, it's 95% foreclosures, and then like a few word of

mouth. So do we pivot? Would you say to the rest of Missouri like almost franchise out? Like get four little like find other big cities and and try to get the rest of Missouri. There's probably like four quadrants or would you go go into marketing? Cuz I know. I mean doing 95% foreclosures. It's like we don't control our income of properties whatsoever. And we kind of have like that that one funnel and like if we're clo like if the economy gets good then you have no deal flow kind of exactly and constant through Co foreclosing was literally illegal in Missouri and we made 2.7 that year. So somehow we made it happen. Like you said it's just a lot freaking harder but there's ways um so I don't know if it's a push or a pivot. I would say that's our main con. There's things we can improve on but that's like the one that keeps us up at night right now let me just say what's the goal we have a mission statement and

it's to uh make sure that all houses within our reach are at their highest and best value because we don't see a house falling off the market as a good thing. That just makes other real estate more expensive. Um I I know the goal is not necessarily to ever sell so it would probably be to expand. I guess okay so so you know path one is you just go to another city and I wouldn't necessarily call it franchising. You just expand. It's just like opening another lighting thing. Like that's you just. That's just the normal way of things. Like if you just get better and better at it, you open another location. Um I see that as another another set of skills for you which I think will be valuable. Um and you could and this time like if it's basically there's no point. I mean you could go in Missouri but you could also do any other market that you'd want because if you're if you're going past 4 hours of driving now you're in like flying range. In which case pick the

right City. You know, like pick whatever City you want to go to. Um, you'll also go into a city that's going to probably have competitors. You know what I mean, which I see is a good thing. Um, because it means like the more competitors there are, the more of a market there is. Um, as long as you're, you know, number one, then more for you. Um, and so that's, that's high. I, that's at least my perceptive perception. Like whenever people like, Oh, there's a ton of competition in my market, I'm like, that's awesome. It means there's tons of buyers. Um, and so just a side note there. But um, 'cause the alternative of this is like literally changing the entirety of your business exactly, which I, I would, I would like you're doing well with it. How long you been doing this? Uh, I've been doing it for eight years. Yeah, dude, you've already paid down like all the ignorant Deb. So like you're at this point, you're like, you're like here on your curve like.

you're like right here, and so it's like well, don't jump back down to like here again, right? Don't go there. Um, like there's an ultimate version of this. And so, what's the, who's the biggest uh wholesaler in the nation? The biggest Wholesale in the nation, uh, is it We Buy Ugly Houses, probably. I mean, there's a lot of me, okay. So, what do they do that you don't do? Um, a lot of advertising, a ton of advertising, pay for click, uh, mailers is huge. Billboards, we do none of that. So, I'll bet that there's still way more deals, even probably even within your current market. I think so. And so, I would probably, if I were you, so either, either you have to replicate what you're currently doing in a new market, but you have some of the risks that you've already brought up, which is like you're all inbound based on foreclosures. You have some of these other things. You're not like the income is not necessarily

reliable. Um, I would definitely learn the advertising stuff for your own business 'cause like whenever there's an ultimate version of the business that I'm currently in, it's like they already did it. And so now all I have to do is do it better than them. And whoever bu that business is already gone probably. And so it's just a bunch of Suits who don't know how this business works. And so it's just right for us to just murder them. I'm just being. I'm just being super honest. Like this is how I see it. Um, and so I think I would just like go 100% try and pants them. Um, and do PBC like. And like also do some of the stuff they're probably not doing well. They probably aren't doing social well. They probably aren't running like not as well as they could, obviously their Billboards. I know the Billboards that they run. Um, and but I'll bet you they've got great sales training. And I'll bet you've got they've

got great floors of people and kind of infrastructure in place and so I would look at that. I would look at their overarching model as well because I'll bet you they get a piece on the back end as well like because they probably vertically integrated as much as they possibly could um within the business that they actually make more on every deal than you do. So they can spend more on every deal like so they have they have ways to beat other people in all these different markets cuz they're national right exactly and so step one would be start advertising more because then they'll just immediately make more within your current market like that would just that might double your business if you just did that um and then number two is I would analyze the living hell out of them like that's what I would do and then think about like okay this is this is the future version of my business one can I replicate it two is there anything I can do to make it better 100% I.

definitely wouldn't change my business for sure. I think that I think your advice is dead on. It's just what I'm afraid to do cuz I don't know how to do it. It's like I'll just go do in different cities but I guess I got to learn new things. Darn right. Yeah, maybe we can help up Alex. So I'm Joel. I have a CPA firm based out of Baker School, California, but during Co we went virtual. So now we serve all 50 states. I have a lot of constraints, but I think you know my questions would be, you know, how do you prioritize what's revenue? Revenue is last year was 2.5. This year is probably going to be about three. Awesome. Margins last year 900,000. This year net was was the part going to be about 1.1. Awesome. I don't know. That's good, but I mean you're running 30% margins on a on a I mean, yeah, sou expensive labor. So I mean I guess my question is yeah.

but it's a super reliable business. It's a viable business like accounting firms get rolled up left and right. There's tons of buyer activity there. Like it's very people don't turn out of their accounts. I mean it's like it's it's very sticky. There's High LTV. The issue with accounting is most of the times um there's no one in there who knows how to market and sell. That's usually the issue with accounting accounting businesses. It's like all word of mouth and no one knows how to like market. Yeah and then the other issue is getting good accountants because there's so much demand right for decent accountants and so but like the accounting firms that I know of like all have like anybody who comes here with accounting firm almost always makes money. They're all doing well um so there's big demand yeah for sure. So what's the issue um I guess one would be operations um just making sure our clients are satisfied like we have a short period of time to do all of our

work mostly during tax season right so we get clients have certain expectations getting their tax returns down and we at capacity but then you know obviously they don't want to pay a premium sometimes so I think we need to improve our sales process to make sure that we can charge a premium to give them that value that they're expecting so do you mostly have one time a year customers or no it's usually we charge quarterly okay uh for quity tax planning uhhuh is it more businesses or more individuals businesses oh great okay well that's I mean even better yeah so yeah our I mean our minimum fee right now is 1950 a quarter okay uh what's your annual stick annual stick what do you mean by that uh what's your Revenue turn annually it's not as good as I like it to be i' probably say we keep have you 70% okay you probably want yeah you want to get over 80 I mean for for accounting firms like you probably can do a little better yeah so I think it has to do with just

also making sure the clients see the value because after we give them like certain tax strategies, they're kind of like, Oh, I kind of learned this. Now I can find a cheaper accountant sometimes. So even though there is that stickiness, you know, they, especially some business owners, will be like, Oh, I kind of sell the value what you guys did last. I'm not sure I buy that. I think what someone says on the exit versus why they actually can aren't necessarily the same thing. Um, 'cause like, I already got the value is like literally what everyone says when they want to leave anything. And it's just 'cause like, they just want to leave. Um, because I mean, I what you want is, I mean fundamentally from an accountant, you want somebody who will get you to pay as few tax as humanly possible and keep you out of jail. And that's pretty much, that's pretty much the task. Yeah. And um, make it as little work for you as humanly possible for that to occur, right? And so

I mean just me having been a consumer of many different accounting firms and accountants and employees who were, you know, who did that stuff for us. Um, I don't, I don't buy the like, we taught them the two or three tricks, yeah, um, also I bet you a bunch of your business owners aren't even like close to it. Some of them are bigger and like aren't, they're just like, yeah, just pay the bill. I don't, I don't really care, just make sure it's right. So I would bet that you probably have bad onboarding, okay, so basically the expect, basically the Delta between what they're sold and then what their experience is in the first handful of days and weeks going into it, and then the communication Cadence between touch bases, they probably see limited value there. And so I think, um, I would give you the same kind of like if I were to buy 100% of your business tomorrow, I would audit the sales process to handoff, like I would bet you there's a massive amount

of opportunity there in terms of like how can we take more notes on every customer because the I get pissed off if I feel like I'm talking to somebody they don't know much about my business and I'm paying them $8,000 year my taxes right immediately I'd be like oh yeah [ __ ] you like I know you can't be looking at like I can just do back of napkin brain math of like if you barely know who I am you definitely don't know how to save me money on my taxes right and we do have an onboarding process but there might be a disconnect between the sales well we already know there's a disconnect cuz you said there was so this is me this is me trying to help so I would go really deep on the onboarding process which is like how can I really tighten this up both in terms of the personalization of the communication and how can I speed up the number of times you communicate with them because you want frequent communication as long as like it's

pushed so it's not me asking for [ __ ] you know CU then I [ __ ] hate you right. Like if you ask me for St, but if it's like, Hey, uh, just letting you know we ran this today, this thing is moving forward, everything's good, nothing for you, just keep you in the loop, and then two days later, Hey, we also ran this thing, um, XYZ is done and it's moving forward to the next step, I'd be like, Oh [ __ ], they're doing stuff. And so like, I tell this to everybody, but no one does it. And so this is me telling you, and hopefully you will do it. But like, if you do a hundred things, you want to let them know every time you're doing one of those things on their behalf. And they're like, Dude, these guys are working for me all the time. Like, this guy works his ass off. And then someone else is like, Well, they're doing it for 8,000, I'll do it for six. And they're like, Oh no.

these guys work their asses off for me. Like, I'm sure I'm safe. Like, no one actually knows. It's kind of like when the guy comes to your house, like, especially the nicer the neighborhood you live in, you know, this. Like, he's like, Think I could do the lighting for 10 grand? I'm like, Dude, you think I got this house because I let people rip me off? I was like, Give me the r price. And then it's like, All right, I can do it for four. And you're like, Great, you know, or whatever. And so the thing is, is like, no one really knows. They just gut call on the fact that like my communication with this company's been crappy, the expectations are poor. And so if this is my external experience, I'll bet you they're not crossing their tees and dotting their eyes on my taxes. That would be my guess, right? And so I think if you get all of the other stuff tight, they will just get, yes, that your internal stuff's as tight, which I

hope it is um and I'll bet you that'll keep the stick. Honestly, and of course, accountants don't know how to deal with customers so I bet you probably need to train them again on that communication Cadence. So it's basically way more personalized, way more frequent, uh communication, and then probably very tight training on how to have touchpoint calls with the customers, right that makes or clients whatever for sure that'd be like the number one thing I would do. I wouldn't even do anything else. I mean do you think it's scalable too cuz I mean my biggest yes accounting firms are scalable ey KPMG like yes they're scalable price yeah PWC think those are publicly trading accounting firms yes they're scalable what do you think about like one of the thing you mentioned I think yes yesterday was like you know the size of the brain the biggest brain is as big as you know so I I'm starting to now hire people that are smarter than me in other areas like uh but when it comes to accounting I'm

still like the smartest person in the room. Yeah, there's smarter accountants. I don't say this as a slight. I just say, like, look at the guys that keep, like, they're some smart dudes. Yeah, I mean, I kind of want to hire, like, 'cause I'm more of a CEO than I am a tax nerd. Yeah, so I'd rather hire, like, yeah, go get a tax nerd. Yeah, yeah, you go recruit somebody from one of those companies who's like, I need somebody who worked at Enron who wasn't a bad guy, you know what I mean, and figure out, like, who can do, like, the real, the crazy stuff, who knows the tax, like, who reads tax law for fun, yeah, like, that's who you need 'cause there are dudes who do who are, like, oh, curled up on, like, I know a buddy of mine who literally goes to the pool with the tax law, his kids are in the pool, and he's reading it, and I'm like, what is wrong with you? He's like, I just love this stuff, and I was

like I'm glad someone does, you know, like, and he's like, look at this hole, he's like, Oh, I'm going to crush this one, and he's like, he's like, This is legal, it's like, he just like loves it, it's like, for him, is like treasure hunting, so like you need somebody who's like that, and if that's not you, then you should have somebody who is that way, yeah, for sure. So yes, I agree, and I think you should do that. I would say step one though, fix all the outside stuff, step two, go get that guy 'cause that stuff will make you more money today with what you already have than do the other thing, right? So newer SAS company, we help inbound sales teams improve their or eliminate no shows, improve their sales off and self efficiency. Um, I really think the most helpful thing for me would be just you running through, um, really the major learning lessons you had from Allen in terms of red plaque. My background is high tiet education and for that whole stay so I think I'm kind

of coming into it. You know, do you have his technical co-founder? I do. Okay, how good is he? I spent 18 months fighting. So, okay, he's pretty good. Well, that could mean that it just took you really long to find somebody who's bad. So like, um, two years from now you're like, I should have known. Yeah, um, so it really comes down to like, has this person built a solare company before? Yeah. Okay, cool. So fundamentally, like, the entire game's different than the high tiet game, right? Like, it's all about revenue retention. It's all about word of mouth. It's a product business. There's actually a podcast I just made. I don't even know when it's coming out about this, but like, what business are you really in? And so like, when I got into Allen, I thought I was in the marketing and sales business because that was the business that I came from, but you're actually in the product business. So it has to be, it has to be basically like taking to its natural extreme if people don't stick.

with it, it doesn't matter. So basically, marketing and doing everything else, like, it's irrelevant, right? And so, like, unless that's right, nothing else matters, basically. And so, marketing, sales in the front end, literally only serves the purpose of making the product better until there's a point where it has what I would consider passive growth, where it grows on its own. And then, you gas the living hell out of it, and then that's what makes gazillion-dollar companies. Like, if you want low churn, you either have to go up market and find the people who don't churn out, or you have to help create the people who don't churn. So, like, the Shopify and the Spotify, a lot of IFI here, um, there's going to be, there's cohort churn, which you're probably familiar with if you're co-founders in this. So, like, you're going to have periods of time where it's like, okay, the first six months we churn out [ __ ] 80% of our customers, but the 20% after that point, our retention curve is

flat and so you just have to figure out once you get to that data cohort. You're like, Okay, what do these people look like? And then you readjust the messaging, readjust the marketing so you can get more and more of those people. So you get a bigger and bigger slice of them. And funnily, that loop is what will you more or less focus on. And then I think about it from when I'm trying to reverse engineer the customer avatar. It's like you have psychographics. Like, what do they believe? You have demographics. What do they look like? Where are they from? You have geographics. Or where are they? And then you have kind of activities, which is like, what did they do? So if I'm trying to reverse engineer what the people who spend the most money with me look like, I look through those lenses. Who are they? Where are they from? What do they believe? What do they do? And then I try and say in my ads, Hey, I'm looking for people who believe these things. I look in the places that they're

at um, and then once they're in, I try and get them to do the same things that the people who were successful, who look like them, who talk like them, who believe like them did in order to be successful. So like, in the beginning, you just do a ton of marketing to get traction in the door, and that's literally just so you can like see if people like it, see where they're turning out, see get basically you just want feedback, and then once you find what people are liking, what they're successful with, obviously iterate from a product perspective on the roadmap to do more of the stuff that core in terms of value. But then the marketing side, it loops back, and then that's what informs who you're picking on the front end, who you're marketing to, right? So you being much more specific form and totally call the people to STI, yes, yes. And the hard part is that your sales team won't want to do it, and you will not want to say no to money, yeah, but I I understand.

company persp for the Mak cool, but that's I mean fundamentally. Like if you good Vista um, I I became friendly acquaintances with their, their head of pricing and packaging, and he was just like if you don't do you know vist is so they're out of aost in 100 billion dollar private Equity. They're they'd be like the fifth biggest company like whatever they're massive um, and they only they're private Equity. They and they buy software companies, and they triple them in in in three years, which is their goal, and they flip them and so um, the founder I can't remember his name now I feel bad um is uh anyways rich. I'll just put that way um, point being I was talking to the head of packaging, and he said you want to know our whole secret, and I was like what man. He's like we just know our our quired companies's customers better than they do. I was like what do you mean. He's like so we go into the data room, and we look at all the

customers they have, and we look at what channels they came from. We look at who they are, how they act, all that stuff. He's like, then we turn off all the marketing that's not those customers, and we crank the living hell out of the stuff that is that, and we do nothing else on the company. Tres, obviously it's more than that, but fun like big picture strategy, that's what they do. We get more the people who spend the most money, but people just aren't disciplined, and that's why people just stay poor because then they, they try and serve too many people, too many different avatars, they can't say not of money today, so they don't get the big money tomorrow. Cool, appreciate that. Thank you. Hi, I'm AR Alex, DTC fashion brand Commerce Indonesia from Indonesia doing $10 million a year, add it that $3 million, been doing this nine years, awesome. Thanks for making it out. Thank you. How do I know when to expand new product line? What are you selling now? What do

you sell now t-shirt, shirt, pants, jeans, jacket, but mostly man were is it white is it white label or a brand say it again is it your brand or is it my BR your brand I manufactur I I'm not manufacturer I suck con to the other Factory in India and then I only own the office and the warehouse is it custom do you design it or you just slap your leg you design it knock off no that's fine I mean like hey I'm I'm I'm not I don't dud competition's competition um as long as you're not hacking their databases or anything like that's I mean that's the nature of the retail business I understand it um okay so the question that you have is how do how do you scale it or basically how do you add more to expand new product line let's say Woman's let's say sports o because I'm doing casual only let's say formal um I don't think at 10 million you need to like like you could do so

much more even within that demographic. Like if you're just mostly men's wear, like there's tons of massive men's wear companies. Can I add to that? Yeah, add yeah. I'm thinking about that also because I haven't achieved 200 or $300 million yet. Isn't it? Isn't it will make my brand to men were letter in life. So I'm not building enough foundation to capture the woman's letter in $300 $500 million mon 500 million a month. That would be a lot. Um, it's a tough call, man. I'll be honest with you because like on one level, I mean if you're like I want to build the next Nike then yeah, you're going to have to sell to everybody. But even Nike doesn't sell suits, right? Just like there's so like there's so many people who buy so much clothing. Um, and I mean I think so, right now I think you're a little bit of a brand identity spot. Like you obviously know how to convert.

guessing, are you running ads? Yeah, right. So, you know, like, you know, you know that game, and you run really good margins. I'm sure on the on the products based on, and, and you can, you know, how to run, run ads at scale. And so what I think right now is you have to figure out who, who you want to become as a brand. So, if you like Men's Wear, then like you can be, I think you can build a massive Men's Work company. Just being real, I mean, just being really transparent with you, like you can U build a massive vsware company. Also, like Lou Lemon doesn't do, I guess they have like pants that are nice, but like they're all sportswar. So, like, I mean, Lemon's a terrible example now because they're just gone to crap, but like um, like if you look at these, I like, like I just as a framework for everybody, like I look at what's the biggest version of the business that's currently here, like what did they do to get there, what does

their business model look like, and then how many steps between where I'm at and where they are do I need to take, and like what lessons or what skills am I deficient in. And then it's like, okay, well then those skill deficiencies become the opportunity. Like fundamentally that's it, and what their brand looks like and how they monetize. Like, are they vertically integrated, or like if I was getting into the energy drink business, I'd be like, okay, well, Red Bull has outsourced literally everything besides marketing. So, I guess that might be the most important thing for a consumer packaged good that's, you know, RTDs ready to drink, and distribution. So, it's like they have massive brand plays, massive distribution, you know, they have their recipe under lock and key, and everything else is so like basically I would look at the brand like is there a brand that you want to emulate. Uh, basically I'm what problem are with am I solving is just a billion dollar exit building consulting firm, and then that is a lid.

magnet to PE build media, and then control the Indonesia. Okay, so my goal just I'll a billion liquid cast. Okay, well let's take. So right now we sell clothes. So let's a couple I get it. I appreciate that. So I want to I want to increase the like that you get there. So I think like you can make this thing very valuable without doing all of the other stuff that you were talking about. So I think like you absolutely can do this. And then think, okay, why can't I get this to $100 million a year selling men's Weare like why can't I. And I think that way then it's like, okay, is there a is there a brand person who can endorse this like if you look at the big retail Brands, they have big endorsers who stand next to the product that increases conversion increases the premium you can charge. And so instead of knocking off Zara, you just become a brand. And I think honestly I think that's the gap for you like you're.

obviously very good at the Arbitrage of media to to clicks and whatnot, but like, I think you need to go from that to building a brand. And then, that's what will make it sellable. So, this is what I like. That's the tldr of our conversation. Is that's what makes your thing valuable. Is you need to build a brand.

7 Millionaires Asked Me How to Get Rich(er)

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7 Millionaires Asked Me How to Get Rich(er)

7 Millionaires Asked Me How to Get Rich(er)

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