"Should I Keep My Business or Sell the Tool I Built by Accident?" — Transcript

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1. 0:00All right, I got Jax McGee. What's up?
2. 0:02>> Shae.
3. 0:03My name's Angelo. I sell pizza, so
4. 0:06sauce, cheese, and pepperoni to humans.
5. 0:08>> This is what we need to get on.
6. 0:11>> Uh we do four point 4.2 a year. We're on
7. 0:13about 30% margins.
8. 0:15I'm going to be vulnerable here. I would
9. 0:17like to be at W revenue.
10. 0:20Can I skip that? Can I go down?
11. 0:22>> Sure.
12. 0:23So, what's stopping me? So,
13. 0:26>> I'm kind of the cool kid back home. I'm
14. 0:28I'm as a leader. I don't work my stores.
15. 0:30I have full capacity and
16. 0:32>> stores?
17. 0:33>> Uh three.
18. 0:33>> Okay.
19. 0:33>> Three stores.
20. 0:35So, I have I have great teams.
21. 0:36Everything's in place. I have
22. 0:38opportunity to scale, unlimited
23. 0:39checkbook, all the things.
24. 0:40>> Yeah.
25. 0:41>> During the process, when I bought my
26. 0:43time back, I was like, "What am I going
27. 0:45to do to make the business money?"
28. 0:46>> Uh-huh.
29. 0:47>> So, I built a tool and I just and that's
30. 0:49how I run my business.
31. 0:50>> Uh-huh.
32. 0:51>> So, other humans want the tool now. So,
33. 0:53I was invited to a $350 million company.
34. 0:55It was like, "Hey, what are you doing?"
35. 0:57So, then I showed them. So, now other
36. 0:58humans want the thing. So, it's Do I
37. 1:00continue to do pizza? Or give them tool?
38. 1:03Not the woman in the red dress. It's
39. 1:05kind of like No. Humans like the thing
40. 1:07that I built in
41. 1:09It's kind of cool.
42. 1:10>> Yeah.
43. 1:11Um
44. 1:15What do you want to have happen with the
45. 1:16tool?
46. 1:17>> I want to I want to help people. The
47. 1:19pain that I've went through, I want to
48. 1:21help others with no expectation.
49. 1:25The thing that I did to get to where I'm
50. 1:26at is in an app.
51. 1:28>> Mhm.
52. 1:34Um
53. 1:40What does it do?
54. 1:42>> Uh simply uh I I actually essentially
55. 1:45what you did with Jim Launch.
56. 1:47>> Okay.
57. 1:48It's like a CRM?
58. 1:50>> Uh yeah. Um it's more of an operating
59. 1:52system, yes.
60. 1:53>> Yeah, like a pizza OS.
61. 1:55>> Yeah, actually. Yeah. Yeah, there you
62. 1:56go. Yeah.
63. 1:58Um
64. 1:59Would you process payments through this?
65. 2:01>> With Stripe, we could, yes.
66. 2:03>> Okay.
67. 2:04Um
68. 2:06Well, would So, we got to go back to W
69. 2:09revenue.
70. 2:10>> Mhm.
71. 2:10>> What do you want to have happen?
72. 2:12>> What do I want to happen? So, with the
73. 2:14revenue in in pizza
74. 2:16I'd I'd just go buy 10 units when I get
75. 2:18home and do the thing. So, over on this
76. 2:19side, I'm just
77. 2:21I just don't know what I don't know.
78. 2:23>> Well, let's level up a a minute. So,
79. 2:25what
80. 2:26What do you want to have happen like
81. 2:28business outcome-wise?
82. 2:30>> Okay, for the new thing.
83. 2:31>> For everything.
84. 2:35Cuz there's multiple ways up the
85. 2:36mountain.
86. 2:36>> Mhm.
87. 2:37>> So, you could option A, forget about the
88. 2:39tool.
89. 2:40>> Mhm.
90. 2:41>> Uh and well, not forget about it. Just
91. 2:43use the tool for yourself.
92. 2:44>> Mhm.
93. 2:44>> And just run your own stores and buy
94. 2:47stores for nothing cuz pizza stores are
95. 2:48very easy to buy for basically nothing
96. 2:50and basically turn them around and then
97. 2:52have a big chain of pizza stores. Your
98. 2:55edge is that you have this operating
99. 2:56system that no one else has.
100. 2:58That becomes a very valuable and
101. 2:59sellable business, for sure.
102. 3:00>> Sure.
103. 3:01>> Option one. That can That can get you a
104. 3:03very big outcome.
105. 3:06Option two, you
106. 3:09take your take your tool and
107. 3:12uh
108. 3:13>> [laughter]
109. 3:14>> You take Pizza OS, right? Um
110. 3:17and we build a different model around
111. 3:19it. And so, there's a lot of other
112. 3:20models you can have with a, you know,
113. 3:21SaaS tool like that that is
114. 3:23uh CRM-slash-payment,
115. 3:25you know, centric.
116. 3:26>> Mhm.
117. 3:27>> Um
118. 3:29There's kind of a turnaround business
119. 3:30where you can let all pizza stores start
120. 3:33for free and they will process their
121. 3:35pizza through your thing. And then, for
122. 3:37people who are doing real revenue, you
123. 3:39could say, "Hey, I can help you out."
124. 3:40And then, you get a percentage of the
125. 3:41revenue.
126. 3:42That's a very light model that could
127. 3:44still have tremendous enterprise value.
128. 3:46That's called like option two.
129. 3:48Um
130. 3:50Option three is that you do that. Um but
131. 3:53the thing is is that you and then you
132. 3:54just go full software, right?
133. 3:57Uh
134. 3:57You It's a very different life than you
135. 3:59have now.
136. 4:00So, you'd have to be prepared to like
137. 4:02you're no longer a pizza guy. You are a
138. 4:05software founder. It's what I feel like
139. 4:07and to answer your question, what
140. 4:09what you did for all of us in this room,
141. 4:12I feel joy knowing that I can do that
142. 4:14for others.
143. 4:15>> Sure.
144. 4:15>> Right? So, that
145. 4:16that does feel like the way I want to
146. 4:18go.
147. 4:18>> Okay.
148. 4:18>> Pizza's kind of like
149. 4:20>> Cool.
150. 4:20>> Yeah.
151. 4:21>> Uh leadership, influence, standards,
152. 4:23hard work, paying ignorance tax. And I
153. 4:25accidentally created a thing cuz nobody
154. 4:28had it, so I just created it. And here
155. 4:30we are, so
156. 4:31>> I think um
157. 4:34I'm going to give you two things. So,
158. 4:36one, I I think either opportunity could
159. 4:38make you as much money as you want.
160. 4:40Either way. You could have 100 pizza
161. 4:41stores and make a lot of money that way,
162. 4:43use your tool, or you could use the tool
163. 4:45and do some sort of call it franchise
164. 4:47light, or you could franchise heavy and
165. 4:48use the tool. Either way, some version
166. 4:50of B2B to that. What uh the second
167. 4:52thing, so
168. 4:53my
169. 4:55my advice is that you'll win either way
170. 4:56because winners win. And so, it's really
171. 4:58what path up that mountain you want.
172. 4:59You're going to get there either way.
173. 5:00Just think one. Thing two is that the
174. 5:02view's going to be the same.
175. 5:05The view's going to be the same.
176. 5:07And so, right now, pizza's cool cuz you
177. 5:08figured it out.
178. 5:09You'll figure this one out, too.
179. 5:11And at a high enough level, you'll have
180. 5:12a head of marketing, a head of sales, a
181. 5:13head of head of IT, you'll have legal
182. 5:15You'll have employees sleeping
183. 5:17with employees.
184. 5:19Same
185. 5:20It's the same everywhere. Yeah.
186. 5:21You're going to have the same five to
187. 5:22seven people reporting to you. And if
188. 5:23you build it all the way up in either
189. 5:25level, you're going to have the same
190. 5:26caliber people reporting to you. And so,
191. 5:28you're not you're not going to be in the
192. 5:29pizza business. If you're in the pizza
193. 5:30business, you're going to be in the
194. 5:30people business. And if you're in the
195. 5:31software business, you're not going to
196. 5:32be in the software business, you're
197. 5:33going to be in the people business.
198. 5:35So, it's up to you which one you want to
199. 5:37do. I think at the end they end up
200. 5:38converging.
201. 5:39So, I think right now it just looks
202. 5:41different and different's always fun.
203. 5:43But at the end of the day, you could
204. 5:44take both up the mountain. It's an
205. 5:45entirely a you choice. I think you'll
206. 5:47win either way and given how it seems
207. 5:49like you've outsourced the pizzas,
208. 5:51I would say if you are going to pursue
209. 5:52the other path to sell the stores.
210. 5:57Because you need all your focus on it
211. 5:58because the people who are going to try
212. 5:59to compete against you are for sure
213. 6:00going to be focused on it.
214. 6:02And I think out of respect to the
215. 6:03competition,
216. 6:04you should not expect that you're going
217. 6:05to beat them with one arm tied behind
218. 6:06your back.
219. 6:09Very helpful. Rock and roll. Appreciate
220. 6:11you.
221. 6:11>> If you are a business owner and you are
222. 6:13not growing as fast as you'd like, I'd
223. 6:15like to give you a free gift. So, my
224. 6:17team and I put together the $100 million
225. 6:19scaling road map, which is basically 200
226. 6:21hours of us looking over all the
227. 6:22portfolio companies we've had and what
228. 6:24stages of growth they went through and
229. 6:26more importantly where they got stuck
230. 6:28and how they got past it. And so we
231. 6:29broke it in these 10 stages and we made
232. 6:31this little kind of quiz thing where if
233. 6:33you put in your business information,
234. 6:34it'll tell you where you're at and the
235. 6:36most important part for you, what to do
236. 6:38for each of functions of the business
237. 6:39across product, marketing, sales,
238. 6:40customer success, recruiting, IT, human
239. 6:42resources, and finance. And so, no
240. 6:44matter what you're struggling with,
241. 6:46someone else has already struggled with
242. 6:47it and solved it. And so I'd like to
243. 6:49give you this thing absolutely free. You
244. 6:50can go to acquisition.com/roadmap,
245. 6:52plug in your business information, and
246. 6:54if you want us to actually help you
247. 6:56deconstruct the business and you're
248. 6:57trying to scale, we'd love to help you
249. 6:59out. On the thank you page, you can just
250. 7:00book a call with my team and we will
251. 7:03look at the business, see if we can
252. 7:05help, and if we can, we'll invite you
253. 7:06out to Vegas and we'll do this in person
254. 7:08live.