Why a $20M Service Company Needs a Sales Academy — Transcript

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1. 0:00My family owns a residential fence
2. 0:01company, so we sell fences to
3. 0:03homeowners. Uh our current revenue is
4. 0:06roughly about 20 million.
5. 0:07Um I think a good goal for us would be
6. 0:1050. Um I think what is stopping us is
7. 0:14leadership and A players within our
8. 0:15sales and management, and also
9. 0:17standardization of our processes and SOP
10. 0:19creation.
11. 0:20>> Okay.
12. 0:23I believe you.
13. 0:24>> Okay.
14. 0:25>> [laughter]
15. 0:27>> So, right now, do you need more
16. 0:28customers?
17. 0:29>> Not necessarily.
18. 0:31>> Well, do you need more You have to
19. 0:32figure out right off the bat. Do you
20. 0:33need more customers, or can you not can
21. 0:35not handle the the the stuff you got?
22. 0:37>> We can handle the stuff we have.
23. 0:38>> You can. So, you need more customers.
24. 0:41>> We need more lead people people to
25. 0:43answer the leads and people to close the
26. 0:45deals.
27. 0:46>> Okay, so you have leads. You have a
28. 0:47sales constraint.
29. 0:48>> Yes.
30. 0:48>> Got it. Okay. So, how many sales people
31. 0:51do you need? It sounds like a si-
32. 0:52similar a similar How many sales people
33. 0:54do you need in order to
34. 0:55deal with the
35. 0:57leads issue?
36. 0:59>> We currently have five. I would say we
37. 1:01at least need to double that.
38. 1:04>> Okay. So, what stops you from doubling
39. 1:05it?
40. 1:06>> Um
41. 1:08I think it's part
42. 1:10the nerves that the market might not
43. 1:13last and need or require that many
44. 1:15people. So, kind of putting all the
45. 1:17>> then be a demand issue again?
46. 1:19>> Yeah, well, I mean, it's not like we
47. 1:20don't have a current demand issue. We
48. 1:21have a plenty of leads coming in. We've
49. 1:23got a whole separate staff that are
50. 1:24>> the fear from? What are your margins?
51. 1:28>> See, this is where it's hard to because
52. 1:30I'm not the CE- CEO. I'm the right-hand
53. 1:33woman to kind of the founder, so I don't
54. 1:36know specifically.
55. 1:37>> You don't know the margins?
56. 1:38As the right-hand?
57. 1:40>> No, cuz I feel like it's also kind of a
58. 1:41data problem that we have of not being
59. 1:43able to collect the proper data and know
60. 1:45that it's actually correct or accurate
61. 1:47as well.
62. 1:49>> Well, I'll say it's one of two So, you
63. 1:51said we're afraid to hire these people.
64. 1:53I would say, "Why?" If it's like it's
65. 1:54just between my ears and I have
66. 1:56irrational fears for things I'd be like,
67. 1:57all right, let's get over it. If it's
68. 1:59because we have no cash flow, then it's
69. 2:00like okay, we have cash flow issues and
70. 2:01we have to go down that kind of decision
71. 2:02tree. Um
72. 2:04assuming you don't I mean, have you ever
73. 2:06heard of the CEO saying that they have
74. 2:07cash flow issues?
75. 2:08>> Not necessarily.
76. 2:09>> Okay, well then
77. 2:10I would be like, why don't we hire five
78. 2:12more sales guys?
79. 2:15>> We're in the process of doing that.
80. 2:16>> Okay, there we go. Okay, great. Got it.
81. 2:19No, you're good. Yeah.
82. 2:21>> 26% is our kind of goal.
83. 2:23>> You know, we're there.
84. 2:25You know,
85. 2:26we fine-tuned the back end.
86. 2:28>> Mhm.
87. 2:29>> Now it's upgrading the sales end.
88. 2:31>> Okay.
89. 2:31>> And
90. 2:33we have plenty of leads coming in.
91. 2:36>> Yep.
92. 2:36>> And stop.
93. 2:37The our process of how we used to do it
94. 2:40is now changing.
95. 2:41>> Okay.
96. 2:41>> And
97. 2:42like you said, it's doubling up. We're
98. 2:44in a market where it's
99. 2:46it slows down a little bit cuz it's
100. 2:47winter. I'm in St. Minnesota.
101. 2:49>> Cool.
102. 2:50>> But we still go
103. 2:51>> [snorts]
104. 2:51>> full winter.
105. 2:53>> Cold.
106. 2:54>> And all the culture with her help, so
107. 2:56everybody knows.
108. 2:57Um
109. 2:58and uh yeah, we're on that doorway to
110. 3:02find the right
111. 3:04you know,
112. 3:06>> Is it all
113. 3:06>> not knowing the
114. 3:07>> Yeah.
115. 3:08>> It's not knowing the right path of how
116. 3:10to bring in the right sales manager.
117. 3:11>> Yeah.
118. 3:12>> All that stuff is kind of what
119. 3:13>> Basically, you need to build a
120. 3:13recruiting machine for sales cuz you're
121. 3:15getting to the point you have five sales
122. 3:16guys now?
123. 3:17>> Yeah.
124. 3:17>> Yeah.
125. 3:18Um and are you do any Do you do any
126. 3:20self-gen or is it all
127. 3:21uh
128. 3:21>> All paid.
129. 3:22>> It's all paid. Okay, yeah. So
130. 3:25um
131. 3:26the people who who do who do home
132. 3:27services at a certain scale, which is
133. 3:29right where you're at right now, you
134. 3:30start needing to develop basically like
135. 3:32a sales academy um that's internal. And
136. 3:34so
137. 3:37just like
138. 3:41you have
139. 3:43you have your lead gen
140. 3:46you got nurture
141. 3:48you've got sales
142. 3:50you've got, you know, uh onboarding of
143. 3:52some sort and then you've got, you know,
144. 3:54retention and ascension for a customer,
145. 3:56right?
146. 3:57You're going to have app gen,
147. 4:01app nurture,
148. 4:03interviewing,
149. 4:04works the same way.
150. 4:06Onboarding
151. 4:08and then retention and ascension of the
152. 4:09sales people.
153. 4:10It's just that we have to build a
154. 4:11parallel structure within the business,
155. 4:13always,
156. 4:14so that we can, just like we spend money
157. 4:16reliably in our demand gen side, we need
158. 4:19to be able to spend money reliable on
159. 4:21the supply gen side.
160. 4:23And so those just have to be parallel
161. 4:24functions that exist within the
162. 4:25business. And so just like you probably
163. 4:27know I'll bet you know like what your
164. 4:29CTRs are, what your opt-in rates are,
165. 4:30what your, you know, what percentage of
166. 4:32leads you close, what percentage show,
167. 4:33all that kind of stuff, right? On this
168. 4:34side.
169. 4:35>> that data
170. 4:35>> Yeah.
171. 4:38Well, it's good.
172. 4:40Well, just like you know those stats
173. 4:41here, you just need to know those stats
174. 4:42here.
175. 4:44Are you guys doing L2 with us?
176. 4:46>> We're going to.
177. 4:47>> Oh, good. Yeah, I was like cuz we build
178. 4:48these things out of, like, all the time.
179. 4:50Yeah, but that's what you need to do. We
180. 4:51just have to build out the basically the
181. 4:52entire sales the the the pipeline, the
182. 4:55funnel flow of of
183. 4:58And so I was I'll I'll complete the
184. 5:00thought in a second. Um
185. 5:02So when I was talking to you yesterday,
186. 5:032 seconds ago, about this,
187. 5:06how much does a sales guy make you?
188. 5:09Right now.
189. 5:10Gross profit.
190. 5:11>> probably each guy is
191. 5:15700, 800k maybe.
192. 5:17>> It's 100k just for simple math. And
193. 5:19that's in gross profit?
194. 5:21>> Yeah.
195. 5:22>> Okay. And then how much
196. 5:23>> What did you put down there? I'm sorry.
197. 5:24>> I said So what did you say? How much How
198. 5:26much gross profit do they make?
199. 5:27>> different cuz we have five in-house,
200. 5:29five out-of-house. So think of a
201. 5:31It's really like a 10 You have your
202. 5:32managers outside, you have your inside
203. 5:33sales. That's kind of our
204. 5:35>> Yeah. Okay.
205. 5:37>> 20 million so a year each guy is good
206. 5:41>> We divide by 10, 2 million bucks. Just
207. 5:43be Keep We'll keep it simple. And then
208. 5:44what do you pay them?
209. 5:46>> Uh
210. 5:47upwards of max is about 200.
211. 5:49>> Okay, 200 for the best guys. Okay, fine.
212. 5:51And then gross profit on this?
213. 5:54>> Uh probably
214. 5:57>> 50?
215. 5:59>> Out of 2 million?
216. 6:00>> Like what's your gross profit? Not net,
217. 6:02gross profit. What's cost of goods?
218. 6:04>> Uh about half a million.
219. 6:05>> Okay, yeah.
220. 6:06So, 1 million. So, for me I see this and
221. 6:08I see a 5:1. Which by the way, like some
222. 6:11of the best returns you get in the
223. 6:11business are just your cost to acquire
224. 6:13talent versus lifetime gross profit per
225. 6:14employee.
226. 6:15And so, if I know that we can generate 1
227. 6:18million dollars in gross profit, I said,
228. 6:19"Hey, you could put 200 grand in the S&P
229. 6:22or we can put 200 grand into this
230. 6:24machine."
231. 6:28Yeah. You get a Yeah, million gross
232. 6:30profit and then you have your enterprise
233. 6:31value probably also 8x uh for your
234. 6:33business. It's like, "Great, 8 million
235. 6:34tax-free for 200k. Sounds like a deal."
236. 6:38>> And there was a little animal, you know,
237. 6:40the honest at the beginning of your when
238. 6:42you came out.
239. 6:43So, I feel lost but
240. 6:44>> Oh, you're good.
241. 6:45>> the same kind of tension that
242. 6:47the daughter and I
243. 6:48>> Yeah.
244. 6:49>> You know, so
245. 6:51trying to fix that here and there.
246. 6:53>> Are you guys related?
247. 6:54>> He's my dad.
248. 6:55>> Oh, there we go. That makes it easier.
249. 6:56Okay.
250. 6:58Uh
251. 6:58>> [laughter]
252. 6:59>> I know, you're good.
253. 7:00Um I mean, I have I have I have no words
254. 7:03of advice there. Um but this is what we
255. 7:05need to do the business.
256. 7:09Yeah, I limit my scope.
257. 7:10>> [laughter]
258. 7:11>> No, I just meant with the the scale.
259. 7:13>> Oh, yeah, yeah, yeah.
260. 7:14>> That's why I've been It's kind of a home
261. 7:16run hit for
262. 7:17>> Oh, good. Okay, cool.
263. 7:18>> in a different way.
264. 7:19>> No, I appreciate that. Well, yeah, I
265. 7:20mean, the whole point wasn't like help
266. 7:21everybody here that has somebody die
267. 7:22yesterday. You know what I mean? But um
268. 7:24but we all have that happens.
269. 7:25Right? And so, like um like if I look at
270. 7:28this thing for me, and the reason this
271. 7:29is kind of important cuz I I was I was
272. 7:31going to go in one of two directions. I
273. 7:32was going to either do that or just I
274. 7:33was going to let the spirit move me.
275. 7:35Um
276. 7:36but
277. 7:42what is limiting most of y'all's
278. 7:43businesses, which is the stuff that no
279. 7:44one actually wants to talk about, is the
280. 7:46fact that like you aren't good enough as
281. 7:47entrepreneurs.
282. 7:49So, you haven't achieved enough yet. You
283. 7:51haven't sustained the success you have
284. 7:52long enough, and people don't want to
285. 7:53work for you cuz they don't believe in
286. 7:54the vision you have.
287. 7:56That's the real thing. Because business
288. 7:58at the highest level can really be
289. 8:00boiled down to find world-class people
290. 8:02and get out of their way. You've heard
291. 8:04Branson talk about it. You've heard
292. 8:05Steve Jobs talk about it, and it's true.
293. 8:08The problem is they don't want to work
294. 8:09for you.
295. 8:10Real.
296. 8:12Because Steve Jobs is like, "We're going
297. 8:13to add another hundred billion to
298. 8:14Apple." And people are like, "Wow, that
299. 8:16sounds amazing." And when you meet
300. 8:17world-class talent like that, those guys
301. 8:19are making twenty million-dollar bonuses
302. 8:21per year. Right? Different levels to the
303. 8:23game. And so, I bring this up to say
304. 8:26that if you were a small business, which
305. 8:27is the vast majority of people here, um
306. 8:30then you have to win on character.
307. 8:32They have to want to work for you.
308. 8:35And I think learning how to master these
309. 8:36elements of like not being a hothead,
310. 8:38not being somebody who, you know, turns
311. 8:40on a dime, um if you have a bad day, no
312. 8:43one knows about it. I think those are
313. 8:45the things that allow you to get way
314. 8:46basically punch above your weight class,
315. 8:48because you basically always have to
316. 8:49punch above to get that talent, and then
317. 8:51that talent pulls the business up.
318. 8:53And so, I'll tell you the story and then
319. 8:55I'll I'll switch to the next person,
320. 8:56which is
321. 8:57I um when we sold Gym Launch, some of
322. 8:59you guys may have heard this, but when
323. 9:00we sold Gym Launch, there was this long
324. 9:01table, um like the boardroom in there,
325. 9:03and we had uh my team on this side, and
326. 9:05we had the private equity team on this
327. 9:06side. And they'd raised one point two
328. 9:08billion dollars um
329. 9:10in funds to do their stuff. And I was
330. 9:11doing my back of napkin. I was like,
331. 9:12"This guy's going to make four hundred
332. 9:13million in the next five years." I was
333. 9:15like, "That's chill, taking no risk."
334. 9:17um
335. 9:18And I did the math on what he was going
336. 9:20to make on Gym Launch, and I was like,
337. 9:21"He's going to make more money on my
338. 9:23company than I did."
339. 9:26And what was interesting to me though is
340. 9:27that I saw his entire team, and I saw my
341. 9:29team, and every single person on his
342. 9:31team was better than every single person
343. 9:33on my team, and it was this very visual
344. 9:34stark contrast between his team and my
345. 9:36team. And I was like,
346. 9:39"Got it."
347. 9:40And so I just vowed that whatever the
348. 9:41next business I was going to do, I
349. 9:42needed to have a vision that was
350. 9:43significantly bigger so I could attract
351. 9:45a different level of talent so they
352. 9:46could make something bigger happen.
353. 9:48So, that's a a slightly softer answer,
354. 9:51but um need to build the talent funnel,
355. 9:53put that in place, and then not be mean.
356. 9:56>> Thank you.
357. 9:57>> Yeah.
358. 9:59If you were the best salesperson in your
359. 10:01company, then your company will be
360. 10:03always capped by you. This is what the
361. 10:06two-day workshop is for. Now, I want to
362. 10:07be clear before I get into what it is.
363. 10:09This is for million-dollar plus
364. 10:11businesses that are trying to scale
365. 10:12their sales team where you are still
366. 10:14probably vast majority of the magic,
367. 10:16either you're literally taking calls or
368. 10:18you are a big percentage of the revenue,
369. 10:19or you have to be constantly on the
370. 10:21sales team in order to get this to work.
371. 10:23If you're in any of those settings, then
372. 10:25this is absolutely for you. And so if
373. 10:26you are tired of your sales relying on
374. 10:28you and want a sales system that scales
375. 10:30beyond you, then apply. That's the deal.
376. 10:32[music] And so if it is a fit, we look
377. 10:34forward to seeing you out here, and it's
378. 10:35a great time. We talk about sales stuff.
379. 10:37Like, how could you have a better time?
380. 10:37But don't take my word for it. Here's
381. 10:38what other people are saying about
382. 10:39workshops. They're
383. 10:41primo, and uh yeah. Can't wait to see
384. 10:43you out there.