"My Business Slows Down Every Year, What Do I Do?" — Transcript

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1. 0:00Hi. Do you hear me?
2. 0:01>> I can hear you. What's cooking?
3. 0:03>> Hi. Uh, my name is Roman. So, um, I
4. 0:06bought a nail salon about eight months
5. 0:08ago.
6. 0:08>> Okay.
7. 0:09>> Uh, it's in one of the biggest shopping
8. 0:11malls in Austria, Europe. Um, this
9. 0:14year's projected revenue is around 600K.
10. 0:16>> Okay.
11. 0:17>> My goal is 3 million in the next two
12. 0:19years uh at full capacity for this
13. 0:21location and then after that, you know,
14. 0:23nail the model and then open more
15. 0:25locations.
16. 0:26>> Mh. Uh the average ticket is about 65.
17. 0:30Um I have five technicians including
18. 0:32myself. There's room for 10.
19. 0:35>> What I need fixed fast is demand in
20. 0:38winter or slower months where more
21. 0:40traffic is slower besides December.
22. 0:43>> I basically don't have a money model
23. 0:44right now. Um no front end offer, no
24. 0:47track channel. Over half of new clients
25. 0:50found out about us walking by. Mhm.
26. 0:52>> Instagram is smaller than I believed,
27. 0:55but I don't post at quality standards,
28. 0:57so not very surprised there.
29. 0:59>> Okay.
30. 1:00>> U retention is being fixed right now
31. 1:02with my receptionist only BFam asking
32. 1:04for reviews, capturing content and
33. 1:06everything.
34. 1:06>> Okay, that's good. So my question my
35. 1:08question is basically if this was your
36. 1:11studio what front end offer and
37. 1:13acquisition acquisition model would you
38. 1:16run to fill
39. 1:18um the slower months or basically the
40. 1:21whole year
41. 1:31>> I'd probably run a giveaway
42. 1:35>> uh on that I rebranded two months ago
43. 1:38and I made a giveaway actually
44. 1:40>> from the money models book.
45. 1:41>> Yeah. What did you give away?
46. 1:43>> Uh a full year of service.
47. 1:45>> Okay.
48. 1:46>> Of nails about €2,000 worth.
49. 1:49>> Yeah.
50. 1:50>> Um it it was pretty successful,
51. 1:52>> but um I haven't really I don't really
52. 1:56have a h sorry I haven't had the back
53. 1:59end yet to capture all of that demand or
54. 2:03attention. So people signed up I offered
55. 2:07them, you know, 50% off basically of the
56. 2:11main main price.
57. 2:12>> Yeah. As the second place offer. Is that
58. 2:14what you're saying?
59. 2:15>> Exactly. Exactly. But I didn't have the
60. 2:18receptionist at that time.
61. 2:20>> Yeah.
62. 2:20>> So when people came in, I didn't do bam
63. 2:23fam or, you know, upsell them to the
64. 2:24continuity and everything. So
65. 2:26>> that was a missed project opportunity.
66. 2:28Yeah.
67. 2:29>> Okay. Well, what are your what are your
68. 2:31uh call it ascension or retention rates
69. 2:34now compared to then?
70. 2:37>> Well, I didn't really have tracking
71. 2:40attribution, but at that point I just
72. 2:43hired the receptionist this month.
73. 2:45>> So, um what I have from, you know, just
74. 2:49the the um the calendar, the
75. 2:53>> uh software. So,
76. 2:55>> I'm going to cut you off.
77. 2:56Yeah, I'm just going to cut you off
78. 2:57because I'm pretty sure it was just
79. 2:58better than it was before, right?
80. 3:00>> Yeah.
81. 3:00>> Okay, got it. So, if you redid the math
82. 3:03on the first the first uh giveaway, if
83. 3:05you had the same LTV that you have now
84. 3:07that you fixed the back end, would it
85. 3:08have been even more profitable than it
86. 3:10was?
87. 3:11>> Of course.
88. 3:11>> Okay, then just run it again, dude.
89. 3:14>> Okay,
90. 3:14>> that's it. Just run it again.
91. 3:17>> Yeah. Um, so I have a question about
92. 3:20that because I was at a marketing
93. 3:22workshop and the attorney actually told
94. 3:23me
95. 3:24>> he likes to to run, you know, a front
96. 3:26end like $139
97. 3:29uh offer, you know, two two visits and
98. 3:31then roll it up into continuity.
99. 3:33>> Sure.
100. 3:34>> Would you think that's better to market
101. 3:37or just to give away? It's just what's
102. 3:39the best?
103. 3:39>> It doesn't matter, man. Like so so I
104. 3:41you're you're asking a question that the
105. 3:43market will answer for you the moment
106. 3:44you run the ads. So, I cannot tell you
107. 3:47which offer will out convert. I can tell
108. 3:49you that giveaways do really well and
109. 3:50they already did. Even though you didn't
110. 3:51even have a backend, it still worked,
111. 3:52which is like pretty good, you know,
112. 3:54data for you.
113. 3:55>> Um, yeah,
114. 3:56>> but fundamentally, you just need to make
115. 3:58the offer, run it to a landing page, and
116. 4:00then probably have automated follow-up
117. 4:01and scheduling. And then as soon as you
118. 4:02have a good attach rate from the people
119. 4:03who come into the nail salon getting on
120. 4:05the continuity or doing bam fam on the
121. 4:06back, like that's probably all you're
122. 4:09going to need. And you can run like if
123. 4:10you have two front-end promotions to
124. 4:12your point, like a bed gave you a
125. 4:13different front-end promotion, just
126. 4:15alternate them. Just do one one month
127. 4:17and do the other one the next month.
128. 4:18Like very simple. Like the more
129. 4:20front-end offers you have that convert,
130. 4:21the better because it just gives you
131. 4:22more more variety in the in the
132. 4:23marketing, especially in a local market.
133. 4:25Um, but the thing is is that no one
134. 4:27knows you exist. So we have this big
135. 4:29fear of like, oh, I don't want to
136. 4:30saturate the market. Like, dude, no one
137. 4:31even knows that you are here. So, um,
138. 4:34you can either alternate them or you can
139. 4:36just run it until the wheels come off.
140. 4:37Both of them work. It doesn't really
141. 4:38matter. It's just what's LTV to CAC? If
142. 4:41both of them are profitable, run them.
143. 4:44>> Okay. Um, so the next question is, uh,
144. 4:49you talked and even Ed talked about you
145. 4:51were looking into buying an alo on
146. 4:53chain.
147. 4:53>> Yeah.
148. 4:54>> So,
149. 4:55>> would you mind telling me a bit more
150. 4:57about that? Like what's worth the money
151. 4:58model, the comp structure and everything
152. 5:00like that? The biggest thing that
153. 5:02separates the businesses that you have
154. 5:04like from some other business is that
155. 5:06you have low skilled labor, right? Nail
156. 5:10techs. And so the big problem with your
157. 5:11business um and businesses like yours is
158. 5:14that people become very loyal to the
159. 5:16nail techs and less so to the business.
160. 5:18And so if the nail tech leaves because
161. 5:19their book gets full enough, they just
162. 5:20do the math and they say, "Hey, I could
163. 5:22just do this on my own and not have to
164. 5:24pay a split or whatever to the store."
165. 5:26Right.
166. 5:27>> Yeah. And so in order for your business
167. 5:29to be successful long term, and that's
168. 5:31what the the chain that I was looking at
169. 5:32had nailed, was that they had figured
170. 5:35out uh a very elegant career path for
171. 5:39nail techs to make like 70,000 plus per
172. 5:42year. Now, it took obviously time for
173. 5:44them to do that. It might take two or
174. 5:45three years and have to do certain
175. 5:46amount of nail jobs in order to level up
176. 5:48in in the level and type of nails that
177. 5:50they can do. But every x amount of, you
178. 5:52know, nail sessions they ran, they would
179. 5:55qualify to learn another more valuable
180. 5:57skill set so they could upsell that and
181. 5:59then make more money per hour. And then
182. 6:01as they develop more skills, uh they can
183. 6:03sell at higher ticket and basically
184. 6:04their hourly would continue to get up go
185. 6:06up. And so too with their split. And so
186. 6:08you have to be able to paint that career
187. 6:09path so that it's it's you don't need to
188. 6:12you don't want to make it hard for
189. 6:13people to leave. You want to make it
190. 6:14easy for them to stay,
191. 6:16>> right?
192. 6:17>> And that's going to be the big issue.
193. 6:18I'm just telling you right now like I
194. 6:19actually don't think like finding demand
195. 6:21for nail salons is not a problem. It's
196. 6:22like finding demand for cleaning. It's
197. 6:24it's it's very easy to find people who
198. 6:26want their houses cleaned. It's very
199. 6:27hard to find labor that is willing to
200. 6:29clean houses well not you know not steal
201. 6:31speak English blah blah blah blah at
202. 6:33least in the US right and so you are in
203. 6:35the same type of business which means
204. 6:36that your true model is going to be
205. 6:38around talent retention like the the you
206. 6:41know the frontends for your business is
207. 6:42not going to be difficult. you should
208. 6:43have pretty exceptional to CAC,
209. 6:45especially if you're following the stuff
210. 6:46that we're outlining, which it seems
211. 6:47like you are, and and you know, you've
212. 6:48improved it. Um, but long term, you need
213. 6:51a a talent model so that uh people can
214. 6:54continue to make more money and then
215. 6:55eventually, and this is the goal, you
216. 6:57can put people into new locations where
217. 6:59they become managers and they can get,
218. 7:00you know, five or 10% of the profit.
219. 7:01Now, to be clear, I'm not saying they're
220. 7:02going to be an owner. They could be
221. 7:04owner like. Does that make sense?
222. 7:06>> Yeah. Yeah. I basically I know already
223. 7:09all of this long term
224. 7:10>> but I didn't really know how to fix the
225. 7:13short term.
226. 7:14>> Yeah.
227. 7:14>> To you know even survive through the
228. 7:16slower months because
229. 7:18>> my basically my limiting beliefs till
230. 7:20now was my entire family owns nail
231. 7:23salons actually in Germany. Um, they say
232. 7:26always like, you know, winter and slow
233. 7:27months and everything. You got to just
234. 7:29survive and like and
235. 7:31>> and when Ed told me that this isn't a
236. 7:33seasonal business, it just broke
237. 7:36everything incredibly, you know, belief
238. 7:39and
239. 7:40>> but I still didn't know how to do it.
240. 7:41So,
241. 7:42>> you have to generate demand. That's all
242. 7:43it was. You ran a giveaway play. You
243. 7:44didn't have a backend. You need to run
244. 7:45it again. Like, there's enough people in
245. 7:48Germany or in your area to fill your one
246. 7:50nail salon up. And so what you want to
247. 7:51do is make everybody else who has a nail
248. 7:53salon feel like winter is a bad season,
249. 7:54but for you it's always hunting season,
250. 7:57>> right?
251. 7:57>> If you know how to generate demand,
252. 7:59things are not seasonal. Think about
253. 8:01that for a second. If you know how to
254. 8:02generate demand profitably, you're never
255. 8:04seasonal. You're always at a supply
256. 8:05capacity.
257. 8:07>> Yeah, that's true.
258. 8:10>> And Stephen Queen, it's Austria, not
259. 8:12Germany. No one gives a All right.
260. 8:14The point is is that the country like
261. 8:16nail salons work like nail salons.
262. 8:18>> Yeah. Yeah, my my time is 10 times
263. 8:21higher than I can handle even at full
264. 8:23capacity. So
265. 8:24>> So if you like this video and you're a
266. 8:25business owner who wants to break
267. 8:26through your current revenue ceiling, I
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269. 8:29businesses past 10 million and three
270. 8:31businesses past 100 million into a
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272. 8:35I've used to go from 0 to 1, 0 to 10,
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275. 8:40absolutely free. And since you're a
276. 8:42business owner, appreciate you. And uh
277. 8:43enjoy.