Helping a Coaching Business Doing $1M/Year Scale — Transcript

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1. 0:00So, we sell a soccer trading program to
2. 0:02soccer players who want to go pro.
3. 0:03>> Cool.
4. 0:04>> a million dollars in revenue.
5. 0:06>> Sweet.
6. 0:07>> We would like to be at 12 million
7. 0:08dollars in revenue.
8. 0:11This is what's stopping us.
9. 0:13We actually kind of don't know. We're
10. 0:15getting
11. 0:16>> [laughter]
12. 0:17>> We're getting told it's a leads issue,
13. 0:18so to just do more volume.
14. 0:20>> Can you handle more customers right now?
15. 0:22>> Yes.
16. 0:22>> Okay, then it's a demand. So, it's a
17. 0:24demand. Yeah, well, that's totally
18. 0:25demand driven.
19. 0:26>> We also think we're playing the wrong
20. 0:28game because
21. 0:28>> Also fair.
22. 0:30>> We're the only ones doing it in this
23. 0:31space.
24. 0:32>> That doesn't necessarily mean that
25. 0:33you're playing the wrong game.
26. 0:35>> Anyone else who's done it sells a
27. 0:36physical product.
28. 0:37>> Mhm. You'll make way more.
29. 0:39>> So,
30. 0:40>> but you'll have other issues.
31. 0:42What do you guys want You said you want
32. 0:43to make 12 million
33. 0:44in revenue.
34. 0:45>> sounds about right.
35. 0:46>> Do you want to sell the company? Do you
36. 0:47just want to make cash flow? Like, what
37. 0:48do you guys want?
38. 0:49>> Sell.
39. 0:50>> Yeah, well, that Yeah, digital
40. 0:51definitely won't sell.
41. 0:54Yeah, so if you want to like have an
42. 0:55exit, then you'll have to build a brand
43. 0:57and then build a product that your
44. 1:00audience really likes and work very
45. 1:01heavily on that product. So, that
46. 1:03doesn't mean you're going to white label
47. 1:04something. That means you actually have
48. 1:05to make something that is different and
49. 1:06better. And as soon as you do that, and
50. 1:08if you actually get any modicum of
51. 1:09success, prepare for China to make dupes
52. 1:11and start um selling the same thing as
53. 1:13you. And that's why brand matters.
54. 1:16And so, they have to want to buy your
55. 1:17thing because of who you are and because
56. 1:19of what it is.
57. 1:21And so, it's like you have to not skip
58. 1:23on quality. You have to look at all the
59. 1:24details that other people would skip
60. 1:25over and show the attention to detail
61. 1:28that you guys have in terms of how you
62. 1:29think something. The alternative path
63. 1:31there is like if you can figure out a
64. 1:32way
65. 1:33to
66. 1:35sell your education to teams or
67. 1:37something like that that can be
68. 1:39uh more residual, some sort of
69. 1:41subscription that's more reoccurring in
70. 1:43nature. That could create something that
71. 1:44has more enterprise value if the goal is
72. 1:46to sell it.
73. 1:47Um I will say
74. 1:49if you if you approach this with like we
75. 1:51just want to build it to sell it, it's
76. 1:53really [snorts] I it's it's actually
77. 1:55like super rare unless you go into a
78. 1:56really boring business for that to
79. 1:58actually happen. Like guys who
80. 1:59experience something like guys who then
81. 2:00go in and say "All right, I'm going to
82. 2:01roll up these H facts." That's different
83. 2:03than somebody who's like
84. 2:05"I want to start a business and I want
85. 2:06to sell it." It's you you need to take
86. 2:08like two steps back into like the the
87. 2:10shoes of your consumers and say like how
88. 2:12do I provide value on a consistent basis
89. 2:15so that I can make something that people
90. 2:16want to keep giving me money for. And
91. 2:18then if you do that for a very long
92. 2:19time, then you have something that
93. 2:20becomes valuable enough that somebody
94. 2:21will pay for it.
95. 2:23>> Got you. The whole selling thing is kind
96. 2:25of what we discussed here.
97. 2:26>> Yeah, yeah.
98. 2:27>> Uh
99. 2:28but in terms of leads issue, everybody's
100. 2:30been telling us to do more. And
101. 2:33just thinking about that that whole
102. 2:34problem, we're going to run into this
103. 2:36constraint where since he's the face of
104. 2:38the brand, I do everything in the back
105. 2:39end. He obviously can't like pitch a
106. 2:42tent and live at the football field and
107. 2:44continuously fill do do do content,
108. 2:46right? He's going to do
109. 2:47>> Why not?
110. 2:49I know you wanted to win.
111. 2:51>> Yeah, Tim told us the same thing.
112. 2:53>> [laughter]
113. 2:55>> Right, my Asian immigrants. That's
114. 2:56right.
115. 2:59>> But we were just basically like through
116. 3:02all the conversations that we've had,
117. 3:05we know that it's a leads thing for the
118. 3:06thing that we're selling currently. Like
119. 3:08right now, we're selling like a $397
120. 3:10initial product to those young
121. 3:11footballers.
122. 3:13How could we get to a million a month
123. 3:15with that if leads is our issue and the
124. 3:18whole content creation process?
125. 3:20>> And your And your primary thing right
126. 3:21now is this all organic, right?
127. 3:22>> Yes, yeah. Everything's organic. There's
128. 3:24no paid.
129. 3:25>> Yeah.
130. 3:26Um
131. 3:27well, first off, you could make it
132. 3:29annual or a six-month thing so at least
133. 3:32four, you know, $397 recurs every six
134. 3:33months.
135. 3:34That would be an option.
136. 3:36Um
137. 3:38another thing that we could consider
138. 3:39doing like
139. 3:40I think it'd be cool if you could make
140. 3:41this into like an association of some
141. 3:43sort.
142. 3:44Um where if you can get a lot of buyers,
143. 3:46you can create aggregate discounts for
144. 3:48things that people who buy
145. 3:50soccer-related stuff could benefit from.
146. 3:52And typically discount related
147. 3:54associations, if you can do like 10x
148. 3:56value, meaning if someone pays $400 a
149. 3:58year it saves them, you know, $4,000 a
150. 4:00year for being a part of it, people that
151. 4:03becomes very very sticky. And it also
152. 4:05creates a true network effect where the
153. 4:07more people who get added, whereas in a,
154. 4:08you know,
155. 4:09a a service based business, the more
156. 4:11people get added, typically the quality
157. 4:12of the service will will will go down or
158. 4:14degrade.
159. 4:16Whereas when you have a network based
160. 4:17business, the bigger the network gets,
161. 4:20the higher the buying power and
162. 4:21negotiating power that you have in order
163. 4:23to get more aggregate discounts for that
164. 4:25community.
165. 4:26Um
166. 4:27but fundamentally, you have a one time
167. 4:28purchase product. You would like to have
168. 4:30something that has higher LTV. You
169. 4:33either have to make them worth more or
170. 4:34you have to sell more of them. So, you
171. 4:37probably have to do both of those things
172. 4:38in order to grow the business. If I had
173. 4:40your business, I would be trying to
174. 4:42solve the equation of like, what can I
175. 4:44what can I sell these people that will
176. 4:45they will not want to leave?
177. 4:47Um
178. 4:48or, and this is totally okay, I want to
179. 4:49throw this out, is that like, you might
180. 4:51just sell something that's like $4,000
181. 4:53to a smaller percentage of those people
182. 4:55as an upsell to the $400 thing.
183. 4:58Um and like triple or quadruple the
184. 4:59business. And then with the excess cash
185. 5:01start running ads and you'll get to
186. 5:02about a million dollars a month. You
187. 5:03won't have a sellable company, but
188. 5:05you'll make more money.
189. 5:08>> Okay.
190. 5:09>> So, if you're like, I would be cool
191. 5:10making $10 million a year, the path
192. 5:12would be to add a back end and then with
193. 5:13the cash from the back end start running
194. 5:15ads. You have to keep upping up more
195. 5:17content. You'll have to learn how to run
196. 5:19paid ads. That would be the like the
197. 5:21lowest operational change thing that
198. 5:22you'd have to do to get to a million.
199. 5:25You won't build something that will
200. 5:26sell, but you will make more money.
201. 5:28>> So, before we even tackle the whole
202. 5:29niche thing, it's like fix
203. 5:31the the offer, basically.
204. 5:33>> Yeah. So, option one is you just add a
205. 5:35back end. That's very simple. Just add
206. 5:37higher touch uh you know, services to
207. 5:39some degree to the people who, you know,
208. 5:41one out of 20 of those people who buy
209. 5:42the $400 thing buys the $4,000 thing.
210. 5:44Whatever, maybe it's one out of four,
211. 5:46we'll find out. Um, that's that's option
212. 5:48one. Option two is you keep it digital
213. 5:51and you add some sort of recurring
214. 5:52element to it. It'll be significantly
215. 5:53easier for you to just add a more
216. 5:54expensive thing,
217. 5:56um, but those are the two options.
218. 5:58>> Do you recommend touching the the front
219. 5:59end offer first or do the back end
220. 6:02thing?
221. 6:02>> No, I think you just call the people who
222. 6:03buy the $400 thing and ask them to buy
223. 6:05$4,000 thing.
224. 6:07>> Makes sense. Okay, thank you.
225. 6:09>> Yeah.
226. 6:11>> [applause]
227. 6:14>> Yeah, so for you guys it'll be it'll be
228. 6:15two triples. It's like the first triple
229. 6:17happened when you call all the people
230. 6:18with the $400 and sell them a $4,000
231. 6:21thing and that'll give you the first
232. 6:22triple. And then with the excess cash
233. 6:24from the first triple, you then spend
234. 6:26more money on ads and then you get the
235. 6:27second triple.
236. 6:28That's what it'll look like. You'll just
237. 6:30pop like the real realistically if
238. 6:32you're making I'm guessing almost all
239. 6:33profit right now,
240. 6:35um, you'll go from making a million
241. 6:36dollars a year profit on a million
242. 6:38dollars a year revenue to like
243. 6:40three-ish, maybe four million dollars a
244. 6:42year in profit on 10. So it's going to
245. 6:44be a different game, but you will make
246. 6:46three or four times more money. So
247. 6:48that's what it'll look like. It will not
248. 6:49be sellable.
249. 6:50And you come back at that point and be
250. 6:52like, "Hey, what should I do?" And I
251. 6:53would say, "Well, I'd go back to the
252. 6:55beginning and build a business that had
253. 6:56a recurring revenue stream that made it
254. 6:58super valuable, but it will be slower
255. 7:00and harder." But that's also why
256. 7:01businesses that are sellable are more
257. 7:03valuable because they're slower and
258. 7:04harder to build. So that's a you guys
259. 7:06question of what you want. You guys are
260. 7:07young. Sometimes it's nice to just make
261. 7:09money.
262. 7:10Um, if you're like, "I want to have a
263. 7:11big exit." then just build it the other
264. 7:13way. But those are the two paths that I
265. 7:14would say from where you're currently
266. 7:15sitting.
267. 7:16If you want to build a physical product,
268. 7:18it's
269. 7:19media heavy, brand heavy, product heavy,
270. 7:21and making other associations of other
271. 7:23faces that aren't you guys,
272. 7:25um, with the product and then eventually
273. 7:27having a suite of products that people
274. 7:28associate with other cool people in
275. 7:29soccer.
276. 7:33>> If you like this video and you're
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288. 7:51enjoy.