When a $100K Manager Can Buy Back a Founder — Transcript

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1. 0:00I have an online shop for bike parts in
2. 0:02Germany.
3. 0:03>> Okay.
4. 0:03>> I do about 1.8 million in revenue and I
5. 0:06would like to be at five in the next two
6. 0:08years.
7. 0:09>> All right.
8. 0:09>> So, I'm getting caught up in, you know,
9. 0:12uh customer support, forklifting boxes
10. 0:15and so on.
11. 0:16>> Can you explain to me again what you
12. 0:17sell?
13. 0:18>> Bike parts.
14. 0:19>> Bike parts for cycling. Yes.
15. 0:20>> I was just so excited to hear you talk.
16. 0:22Um
17. 0:23>> Okay.
18. 0:24>> Okay. So, you sell bike parts,
19. 0:26e-commerce.
20. 0:26>> Yes, e-commerce. Shopify store. Do you
21. 0:28have uh is it all is it all ads? Is it
22. 0:30influencer driven? Is it do you have a
23. 0:32YouTube channel? Like what's your thing?
24. 0:33>> It's 100% Google shopping ads.
25. 0:36>> Oh, interesting.
26. 0:36>> So, that's the only thing.
27. 0:38>> And
28. 0:39>> do you feel like you have a brand around
29. 0:40it or you sell anybody's stuff?
30. 0:41>> Um I only sell branded bike parts.
31. 0:44>> Okay. You sell other people's stuff. So,
32. 0:46you're just distributor.
33. 0:46>> Yes.
34. 0:47>> Okay. Got it.
35. 0:47>> And we compete on price.
36. 0:49>> Yeah. The worst. And my my question
37. 0:52basically is at what point is it the
38. 0:54right decision
39. 0:56>> for the founder to fully step out of
40. 0:58day-to-day operations and get a manager
41. 1:01in place to oversee like the shipping
42. 1:04employees and the warehouse completely.
43. 1:06>> What are margins right now?
44. 1:08>> It's 25%
45. 1:10after all overhead.
46. 1:11>> That's not bad. Yeah.
47. 1:12>> Okay. Um, at what point [sighs]
48. 1:18if we if we do this, what are you gonna
49. 1:20do with the time?
50. 1:22>> I'm going to spend it in marketing,
51. 1:25>> business development. Yeah. So, buying
52. 1:27more parts.
53. 1:28>> Yeah.
54. 1:28>> Other channels.
55. 1:29>> Mhm.
56. 1:30>> All of that stuff.
57. 1:31>> So, you're at three 25%. So, you got
58. 1:33700ish,000 in profit. Is that right?
59. 1:36>> No, it's like 450.
60. 1:38>> Like, I have 1.8 million.
61. 1:40>> Oh, 1 point. I heard three for some
62. 1:41reason. Okay. Sorry. 1 point. You're
63. 1:42right. Right. Uh 1.8 million. So you're
64. 1:44doing 450ish in profit.
65. 1:46>> Um
66. 1:48I'll say it differently.
67. 1:50This this manager where you're from, how
68. 1:52much does it cost?
69. 1:54>> It's about
70. 1:55>> because Germany's a little less for
71. 1:56labor.
72. 1:56>> Yeah. It's probably between 60 to 80 for
73. 1:59middle.
74. 2:00>> Yeah.
75. 2:00>> And 100 for pretty good talent.
76. 2:02>> I would go for 100 because it'll be more
77. 2:05than worth the extra. Like
78. 2:08one of the biggest arbitragees that
79. 2:09still exist in business is paying 20 or
80. 2:1130% more for A+ talent because they're
81. 2:13worth more than three or four times B
82. 2:14talent. It's still one of the things
83. 2:16everyone [ __ ] up because everyone's
84. 2:17afraid of spending the extra 30, but
85. 2:18it's like you can't afford not to. So I
86. 2:20would highly encourage you to spend more
87. 2:21to get the right person. Um so if you if
88. 2:25it cost you $100 $100,000 in bottom
89. 2:27line, right, you're going from $450 to
90. 2:28350 and that means you have to make
91. 2:31$400,000 back just to break even on this
92. 2:33guy, right? Can you do that with the
93. 2:36time?
94. 2:37>> Yeah, I can do this. Yes.
95. 2:38>> Okay, then. Yeah, I think now is the
96. 2:39time.
97. 2:40>> Okay.
98. 2:42>> Okay, thank you.
99. 2:43>> Yeah, love this. Yeah,
100. 2:45>> I can't give you every single recipe.
101. 2:47That would be ridiculous. It would be
102. 2:48like this long. But these are the top
103. 2:49five SOPs that we have used to scale
104. 2:51[music] that Leila actually put together
105. 2:53for us cuz she's really been the one who
106. 2:54operates the business. And so, yeah, I
107. 2:56don't know what's inside of it, but um
108. 2:58it's [music] good. So, you should check
109. 2:59it out cuz Ila made it and she makes
110. 3:01good stuff. It's free.