WEBVTT 1 00:00:00.000 --> 00:00:05.400 recording as well. So this this idea of the One Big Dial, I want to spend just 10 2 00:00:05.400 --> 00:00:10.240 or 15 minutes walking us through a practical exercise on how we can do that. 3 00:00:10.240 --> 00:00:16.400 As I was thinking this through I was looking at the idea of if it's the Lord's 4 00:00:16.400 --> 00:00:21.280 One Big Dial then what would that what would that look like? And so there are a 5 00:00:21.280 --> 00:00:25.480 couple of exercises we can do and the training I put together for the team 6 00:00:25.480 --> 00:00:30.240 side of this is talking about this One Big Dial but it doesn't go through the 7 00:00:30.240 --> 00:00:35.740 exercise of it. And the reason is is that look as small business owners you know 8 00:00:35.740 --> 00:00:40.480 we need to identify and then focus on one single metric that transforms the 9 00:00:40.480 --> 00:00:44.400 whole business. When you turn that thing everything moves. Here's the interesting 10 00:00:44.400 --> 00:00:48.640 thing about that dial I think you get it better by revelation than you do by just 11 00:00:48.640 --> 00:00:52.400 hard analysis. Although I think you might have to go through some practical 12 00:00:52.400 --> 00:00:57.080 downstairs steps until you find the one that makes you know like the Lord says 13 00:00:57.080 --> 00:01:03.500 now you've got it there there it is. And I think for many of us that you know we 14 00:01:03.500 --> 00:01:09.240 can think about this. Last year we did an exercise and I asked you this we did 15 00:01:09.240 --> 00:01:14.760 this simple exercise. Let's say it's five years from now and somebody's 16 00:01:14.760 --> 00:01:19.640 come in to buy your business. So just picture that for a second. It's 17 00:01:19.640 --> 00:01:26.200 five years in the future so it's 2030 and you're about to sell your business. 18 00:01:26.200 --> 00:01:32.600 You're sitting in the lawyers offices you're in the closing. And so the 19 00:01:32.600 --> 00:01:37.280 question here is how much are they paying and what exactly are they buying? 20 00:01:37.280 --> 00:01:43.760 And the reason for that exercise was to help you find the One Big Dial. And so as 21 00:01:43.760 --> 00:01:47.600 you're thinking through this you know you've got a couple of key elements of 22 00:01:47.600 --> 00:01:53.160 real value creation. So for instance you know you've got a team of leaders. That's 23 00:01:53.160 --> 00:01:57.480 huge to a buyer because it means they don't have to bring in leadership. 24 00:01:57.480 --> 00:02:02.800 Specifically private equity firms don't like to have to bring in leadership or 25 00:02:02.800 --> 00:02:06.920 bring in management. They love to buy a team that's already highly functional. 26 00:02:06.920 --> 00:02:11.880 And so there are only a couple of categories of buyers if you like. You 27 00:02:11.880 --> 00:02:15.680 know you could sell it to competitor. You could sell it to a private equity group. 28 00:02:15.800 --> 00:02:20.760 Maybe you have a family succession which is effectively selling it to 29 00:02:20.760 --> 00:02:25.720 your kids or you know giving it to your kids. Or you just give it away to you 30 00:02:25.720 --> 00:02:30.080 know like Bill Goff did. You know because he did that thing it's Thursday we're 31 00:02:30.080 --> 00:02:34.680 giving something away. Anyone who knows Bill Goff? And so he had this big 32 00:02:34.680 --> 00:02:37.840 law firm and one Thursday he got the whole staff in and he went to one of the 33 00:02:37.840 --> 00:02:42.000 younger attorneys hand him the keys says now the law firm is yours. So you could 34 00:02:42.000 --> 00:02:47.100 do that. And they said but why? And he says because it's Thursday and I 35 00:02:47.100 --> 00:02:52.160 give away things on Thursdays. That was his reason. So but here's the 36 00:02:52.160 --> 00:02:55.000 interesting thing. It doesn't matter who you're selling it to. Whether you're 37 00:02:55.000 --> 00:03:00.160 selling it to your management team, to your family members or even if you just 38 00:03:00.160 --> 00:03:03.200 literally just gonna shut it down when you're done with it. It doesn't matter. 39 00:03:03.200 --> 00:03:08.280 All the results of that is to help you find what's the big growth potential. 40 00:03:08.320 --> 00:03:14.840 What's that big dial that if I turn that the value goes up. And the last 41 00:03:14.840 --> 00:03:17.940 time we did this several people came back to me and said well you know I'm 42 00:03:17.940 --> 00:03:21.200 not really thinking of selling it so much of the exercise applies to me. I 43 00:03:21.200 --> 00:03:25.200 think I'm just gonna give it to my kids. And my answer is why would you want to 44 00:03:25.200 --> 00:03:29.760 give your kids a low-grade business? If you knew you had to sell it to someone 45 00:03:29.760 --> 00:03:34.080 and they came and said you okay change these few things and that would you know 46 00:03:34.200 --> 00:03:38.160 add a zero to the purchase price. Wouldn't you do it? So why wouldn't you 47 00:03:38.160 --> 00:03:41.040 do that for your kids? You do it for a complete stranger who runs a private 48 00:03:41.040 --> 00:03:44.520 equity firm but not for your kids or not for yourself and not for your yoke in 49 00:03:44.520 --> 00:03:50.720 the Lord. So all that's to say is that there are best practices. There are 50 00:03:50.720 --> 00:03:57.080 things you do in your business that give it value. I have been as a private equity 51 00:03:57.080 --> 00:04:02.280 firm. I've been on both the buyer side and the seller side of the transactions. 52 00:04:02.280 --> 00:04:08.000 And I can tell you there's nothing worse than watching an owner realize in 53 00:04:08.000 --> 00:04:12.200 that moment part of the reason why you as a private equity firm are buying it 54 00:04:12.200 --> 00:04:16.519 is because they miss something. Because there's some dial you can turn that's 55 00:04:16.519 --> 00:04:20.519 gonna pull that whole business up. Now sometimes it's roll-ups and all that 56 00:04:20.519 --> 00:04:24.000 sort of thing and there are other more strategic reasons. But I've seen the case 57 00:04:24.000 --> 00:04:27.600 where they go hang on a second so if a year or two ago I'd made that one small 58 00:04:27.600 --> 00:04:32.160 change this would have been worth twice as much or three times as much. And the 59 00:04:32.160 --> 00:04:37.440 answer is yes it would have been worth two or three times as much. So that's one 60 00:04:37.440 --> 00:04:42.800 exercise we can use to kind of get ourselves to get to think you know to 61 00:04:42.800 --> 00:04:46.600 work on the business and not so much stuck in it. Because when you're in the 62 00:04:46.600 --> 00:04:51.400 day-to-day in the business it's hard to zoom out and see exactly what it is 63 00:04:51.400 --> 00:04:56.240 you're doing. So today I'd love us to take a few minutes and practice do a few 64 00:04:56.240 --> 00:05:02.080 exercises to get us there. Now what's your business 65 00:05:00.000 --> 00:05:03.580 is worth today okay we're gonna sell in five years time I asked you what's the 66 00:05:03.580 --> 00:05:07.420 number it's good you have a sense of what you think that number might be and 67 00:05:07.420 --> 00:05:13.380 then what could make that number bigger is figuring out that one that one big 68 00:05:13.380 --> 00:05:19.100 dial now there are only really three ways to value a business three there's 69 00:05:19.100 --> 00:05:22.540 lots of variants I have a book this thick on my shelf I think it might be 70 00:05:22.540 --> 00:05:27.580 behind me on on business valuation but it comes down to three big categories 71 00:05:27.580 --> 00:05:31.780 the first is what we'd call book value this is the lowest form of valuation 72 00:05:31.780 --> 00:05:35.580 basically this is great if you have a lot of assets like you're in a big 73 00:05:35.580 --> 00:05:39.940 manufacturing facility there's a lot of physical assets but those assets are 74 00:05:39.940 --> 00:05:45.300 depreciating anyway but that is book value in other words what's the value of 75 00:05:45.300 --> 00:05:49.860 the company if you if you take the balance sheet and look at it and some 76 00:05:49.860 --> 00:05:54.900 most business especially service businesses have a very low book value so 77 00:05:54.900 --> 00:05:59.100 that's clearly not a way to value it the other is market comparison 78 00:05:59.100 --> 00:06:03.100 especially in more publicly traded or in an environment where there's a clear 79 00:06:03.100 --> 00:06:08.300 public sector that you can compare it to so the question then is what would a 80 00:06:08.300 --> 00:06:13.140 similar business sell for in your industry and so now we're looking for 81 00:06:13.140 --> 00:06:17.220 and so what every industry has its own kind of multiples like oh they'll sell 82 00:06:17.220 --> 00:06:22.580 two to four times annual profits you see you know as seen on TV on Shark Tank 83 00:06:22.580 --> 00:06:27.220 they just do five times revenue which is hilarious because that's extremely 84 00:06:27.220 --> 00:06:35.300 generous and it's meant for show and and for whatever but it's not reality so for 85 00:06:35.300 --> 00:06:39.300 so you know people say well the business is well you know you for 10% of my 86 00:06:39.300 --> 00:06:43.300 business for a million dollars so you just valued your business at 10 million 87 00:06:43.300 --> 00:06:47.980 dollars and you've got a hundred thousand in revenue you know so you see 88 00:06:47.980 --> 00:06:53.700 a lot of that on Shark Tank but but the way an emerging business a growth 89 00:06:53.700 --> 00:06:58.100 business is valued is on discounted cash flow so we just look at the future 90 00:06:58.100 --> 00:07:03.420 earning potential of the business and then we we attach a risk to that future 91 00:07:03.420 --> 00:07:08.020 and say well we're gonna discount at 7% a year or 10% a year obviously the 92 00:07:08.020 --> 00:07:11.380 further you go out the bigger the discounts and and by the way I've 93 00:07:11.380 --> 00:07:15.260 developed my own model for valuations and blah blah which worked better for me 94 00:07:15.260 --> 00:07:19.820 but the bottom line is it's a black box and every year it's dropping a lump of 95 00:07:19.820 --> 00:07:24.580 cash and over the next five years what would those lumps of cash be and then 96 00:07:24.580 --> 00:07:28.580 discount that down a bit and there's your number and the problem with that of 97 00:07:28.580 --> 00:07:32.020 course it's all based on spreadsheets you know you just take spreadsheets five 98 00:07:32.020 --> 00:07:36.900 years into the future but typically it's based on the five years previous to that 99 00:07:36.900 --> 00:07:42.940 so that so that there's some sort of you know legitimacy to the future claims and 100 00:07:42.980 --> 00:07:46.900 you know like having well-documented assumption I'm assuming based on the 101 00:07:46.900 --> 00:07:51.660 last five years we can do it again for the next five years the following all 102 00:07:51.660 --> 00:07:56.620 that is three boy so we can do one of those three ways the book value market 103 00:07:56.620 --> 00:08:03.040 comparisons or discounted cash flow or DCF as it's known in the industry and so 104 00:08:03.040 --> 00:08:07.540 you end up with these what a lot of people who look at business end up with 105 00:08:07.540 --> 00:08:11.400 what's just a bunch of rule of thumbs you know they're saying well a service 106 00:08:11.520 --> 00:08:15.480 business typically is one to three times annual profits how much did you make 107 00:08:15.480 --> 00:08:18.160 last year well we made a hundred thousand okay it's probably worth 108 00:08:18.160 --> 00:08:21.120 between a hundred and three hundred thousand depending on what its upside 109 00:08:21.120 --> 00:08:25.920 potential could be product businesses tend to be more two to five times 110 00:08:25.920 --> 00:08:32.080 profits but then they are these anything where there's a reoccurring business 111 00:08:32.080 --> 00:08:36.559 where that business you know where the customers are there for a number of 112 00:08:36.559 --> 00:08:44.440 years particularly now we can be anywhere from 5 to 15 times but if you 113 00:08:44.440 --> 00:08:49.720 have something unique something special then there's no limit to that multiple 114 00:08:49.720 --> 00:08:55.800 in other words so I had a friend who came up with a brand new restaurant 115 00:08:55.800 --> 00:09:04.360 category and I think it was called fast casual of fast fine dining or something 116 00:09:04.360 --> 00:09:10.120 like that I forgot an exact category and he sold his for 15 multiple so they 117 00:09:10.120 --> 00:09:18.800 came in wrote a check for 15 X on his profits in tech you get valuations that 118 00:09:18.800 --> 00:09:23.640 are just stupid you know because what there is what they're looking for there 119 00:09:23.640 --> 00:09:26.960 is that the rate of rise so you've got companies with billion-dollar 120 00:09:26.960 --> 00:09:31.680 valuations and they don't even have revenue or very you know minor revenue 121 00:09:31.680 --> 00:09:38.120 pre-revenue is the nice polite term and but you know so in other words the value 122 00:09:38.120 --> 00:09:43.880 of your business is in the eye of the buyer it's what the buyer wants to do 123 00:09:43.880 --> 00:09:47.600 with it could be that the buyer wants to buy it and roll it up with similar 124 00:09:47.600 --> 00:09:51.320 business and then sell it off to another bigger private equity firm and they will 125 00:09:51.320 --> 00:09:55.800 just sell to each other and that's why private equity is a strong case that is 126 00:09:55.800 --> 00:09:59.600 destroying businesses because what it's doing is it's just doing all these 127 00:10:00.000 --> 00:10:06.560 roll-ups and you know and it's become so highly specialized by industry and then 128 00:10:06.560 --> 00:10:11.520 by the level they operate at but whether whatever that view might be the question 129 00:10:11.520 --> 00:10:16.640 is what's your business worth and it's good to have a sense of that today and 130 00:10:16.640 --> 00:10:19.560 you can say well you know we're not making a lot of profit yeah but your 131 00:10:19.560 --> 00:10:26.320 business still has some sort of forward potential so what what is that value and 132 00:10:26.320 --> 00:10:32.240 so I have a very clear thing in my mind that I want to see I want to build 133 00:10:32.240 --> 00:10:36.360 brilliant for instance to a twenty million dollar business I don't mean 134 00:10:36.360 --> 00:10:40.120 that just that it'll be I mean it'll be worth twenty million dollars not that 135 00:10:40.120 --> 00:10:45.840 Nestle have twenty million dollars of revenue so well then I can say well as a 136 00:10:45.840 --> 00:10:50.880 rule of thumb if I'm looking at 5x and I have to be at four million dollars you 137 00:10:50.880 --> 00:10:54.920 know in net profits well if I'm doing four million dollars in net profits and 138 00:10:55.040 --> 00:10:59.960 that's ten percent of my overall revenue then I need forty million dollars so forty 139 00:10:59.960 --> 00:11:03.440 million dollars would give me ten million dollars of net profits and if I 140 00:11:03.440 --> 00:11:09.400 mult sorry I only need sorry I did that wrong way around didn't I so if I wanted 141 00:11:09.400 --> 00:11:13.880 a twenty million dollar business and I'm using 5x I need a four million dollar 142 00:11:13.880 --> 00:11:21.360 run rate or revenue yeah I did that correctly so doing this all live doing 143 00:11:21.360 --> 00:11:25.880 valuations in my head but as we're thinking about that the thing I want you 144 00:11:25.880 --> 00:11:30.480 to get is what is your business worth now and then where you think it's going 145 00:11:30.480 --> 00:11:35.400 to be in five years and then again what's the one dial that you can turn 146 00:11:35.400 --> 00:11:41.560 that makes that move so there so we've talked about the three key drivers right 147 00:11:41.560 --> 00:11:46.880 team of leaders predictive reoccurring revenue and especially if there's a lot 148 00:11:46.880 --> 00:11:52.240 of free cash flow generation that that makes it more valuable Warren Buffett 149 00:11:52.240 --> 00:11:57.640 says when cash is predictable it's valuable and you know so that's why 150 00:11:57.640 --> 00:12:02.320 people who do kind of one-off things that's a lot harder to get a high value 151 00:12:02.320 --> 00:12:06.240 for that but the minute you have got reoccurring all the all the revenues 152 00:12:06.240 --> 00:12:13.080 predictable in some form or another then you have a much higher value business so 153 00:12:13.120 --> 00:12:18.480 here's here's what here's what buyers want right they obviously don't just want 154 00:12:18.480 --> 00:12:24.920 strong financial performance they want to know how can this scale and you know 155 00:12:24.920 --> 00:12:28.680 what's the growth potential here if I because they buying the company they're 156 00:12:28.680 --> 00:12:34.840 usually gonna do something to push that scale up maybe because it fits into their 157 00:12:34.840 --> 00:12:38.960 group and their group can immediately help scale the business or they plan to 158 00:12:39.040 --> 00:12:43.040 put a lot of growth capital into it to take it to the next level they're 159 00:12:43.040 --> 00:12:48.720 planning to scale it in some way they seeing some growth potential and again 160 00:12:48.720 --> 00:12:53.880 the growth potential is tied to that one big dial if you can if you can explain 161 00:12:53.880 --> 00:12:58.360 it to yourself and your team what the one big dial is then you're in a 162 00:12:58.360 --> 00:13:01.880 position where everybody knows exactly what you do okay let's get this let's 163 00:13:01.880 --> 00:13:04.920 get this really practical let me give a couple of quick examples let's say you 164 00:13:04.920 --> 00:13:09.880 in the restaurant business then what would be the you know the one big dial 165 00:13:09.880 --> 00:13:13.240 for the restaurant business you've got fixed cost got range got labor you got 166 00:13:13.240 --> 00:13:20.000 food cost all that what would be the one big dial so I think as an example there 167 00:13:20.000 --> 00:13:26.840 it could be revenue per customer so let's say you knew that your revenue per 168 00:13:26.840 --> 00:13:30.360 customer you look at your total revenue and you divide by the number of 169 00:13:30.360 --> 00:13:34.520 customers over a set period of time let's say monthly and let's say that 170 00:13:34.520 --> 00:13:40.440 number is $40 so you figured out that you on average have $40 revenue per 171 00:13:40.440 --> 00:13:46.000 customer now the question is how can we increase the revenue per customer so 172 00:13:46.000 --> 00:13:49.960 yeah we can negotiate our end get slightly food you know cheaper food 173 00:13:49.960 --> 00:13:54.520 things but what if we then took the entire team focused that and publish 174 00:13:54.520 --> 00:13:57.520 that number it's like watching the ballgame and everybody can see the 175 00:13:57.520 --> 00:14:00.200 scorecard everyone can see the scoreboard right imagine going to a 176 00:14:00.200 --> 00:14:03.760 football game well the scoreboard isn't working are we winning I don't know we 177 00:14:03.760 --> 00:14:07.560 seem to be a lot on this side maybe we're winning you know that would be a 178 00:14:07.560 --> 00:14:12.200 terrible game to watch well do your team know the score so if you knew that 179 00:14:12.200 --> 00:14:16.520 number and you displayed that number so maybe you now start training your staff 180 00:14:16.520 --> 00:14:23.780 on doing you know wine recommendations and pairing or have higher-end you know 181 00:14:23.780 --> 00:14:28.980 dessert options or you know as they're checking out having you know sort of to 182 00:14:28.980 --> 00:14:33.720 go snacks or whatever the whatever the extra things are what you'd be pushing 183 00:14:33.840 --> 00:14:40.440 for is increase the revenue per customer so that means all our training all our 184 00:14:40.440 --> 00:14:46.760 focus or coming up with premium options really enhancing the experience of 185 00:14:46.760 --> 00:14:51.480 being there one group actually did this and what they found they went and took 186 00:14:51.480 --> 00:14:56.280 their top 20 receipts of their customers and they found there were all groups you 187 00:14:56.280 --> 00:15:02.160 know of between I think was between four and six or 188 00:15:00.000 --> 00:15:01.680 six and eight, something in that range, 189 00:15:01.680 --> 00:15:03.620 but they were often family gatherings. 190 00:15:03.620 --> 00:15:06.300 So they made a special program, you know, 191 00:15:06.300 --> 00:15:08.440 for family celebrations. 192 00:15:08.440 --> 00:15:12.120 And, you know, in a six month period, 193 00:15:12.120 --> 00:15:15.120 you could easily double that number, 194 00:15:15.120 --> 00:15:17.820 double the revenue per customer. 195 00:15:17.820 --> 00:15:20.160 Okay, so I'm gonna take a second there 196 00:15:20.160 --> 00:15:22.200 and cycle back to you 197 00:15:22.200 --> 00:15:24.720 and just see what you guys think so far. 198 00:15:26.000 --> 00:15:27.380 Robot waiters, yeah. 199 00:15:27.420 --> 00:15:30.060 I'm not sure robot waiters will do much 200 00:15:30.060 --> 00:15:31.340 for revenue per customer. 201 00:15:31.340 --> 00:15:32.780 I think they'll lower the cost, 202 00:15:32.780 --> 00:15:33.980 but I don't think anything, 203 00:15:33.980 --> 00:15:36.400 unless you make it such a cool experience. 204 00:15:36.400 --> 00:15:37.240 Ray. 205 00:15:38.900 --> 00:15:43.460 Two fun examples is Panera. 206 00:15:43.460 --> 00:15:45.860 You know, Panera has a sip club 207 00:15:45.860 --> 00:15:50.860 and it is, they now have 48 million members 208 00:15:51.660 --> 00:15:55.980 that pay $14.99 a month to get unlimited drinks. 209 00:15:55.980 --> 00:15:58.780 When they went from 10 to 14.99, 210 00:15:58.780 --> 00:16:02.540 they actually increased by a hundred million dollars 211 00:16:02.540 --> 00:16:04.940 because people, when they come in, 212 00:16:04.940 --> 00:16:06.620 they buy other stuff. 213 00:16:06.620 --> 00:16:08.100 And then another one that's really fun, 214 00:16:08.100 --> 00:16:09.500 it's right down the road from me, 215 00:16:09.500 --> 00:16:11.300 is Cooper's Hawk. 216 00:16:11.300 --> 00:16:13.740 And so Cooper's Hawk has a wine club. 217 00:16:13.740 --> 00:16:16.900 They have 600,000 members 218 00:16:16.900 --> 00:16:19.340 that get the wine club shipped, you know, every month. 219 00:16:19.340 --> 00:16:21.320 They have these little wine tastings and everything. 220 00:16:21.320 --> 00:16:23.180 They make so much more money 221 00:16:23.180 --> 00:16:24.900 from the wine club than their food, 222 00:16:24.900 --> 00:16:25.780 which is pretty cool. 223 00:16:26.460 --> 00:16:29.060 So what they've done there is they've found ways 224 00:16:29.060 --> 00:16:32.380 to increase the revenue per customer specifically. 225 00:16:32.380 --> 00:16:34.740 And, but there could be other industries, 226 00:16:34.740 --> 00:16:35.660 like for instance, 227 00:16:35.660 --> 00:16:38.780 what if you're in an e-commerce industry, right? 228 00:16:38.780 --> 00:16:39.940 Then in an e-commerce, 229 00:16:39.940 --> 00:16:42.940 it's about the lifetime value of a customer. 230 00:16:42.940 --> 00:16:45.620 So if your customer comes, spends, 231 00:16:45.620 --> 00:16:46.460 like at Brilliant, 232 00:16:46.460 --> 00:16:48.660 we know that our monthly subscribers 233 00:16:48.660 --> 00:16:51.480 generally stay for, until recently, 234 00:16:51.480 --> 00:16:54.180 but for about 13 months. 235 00:16:54.220 --> 00:16:56.300 If we increase it one month, 236 00:16:56.300 --> 00:16:59.700 that's a huge, huge increase for us, right? 237 00:16:59.700 --> 00:17:01.980 Then if while they're 13 months, 238 00:17:01.980 --> 00:17:04.900 there is an upsell to join the school. 239 00:17:04.900 --> 00:17:08.020 Now we've gone from somebody paying $20 a month 240 00:17:08.020 --> 00:17:10.460 to somebody who's involved in a bigger program, 241 00:17:10.460 --> 00:17:14.300 or maybe they're even enrolling in the $7,000, 242 00:17:14.300 --> 00:17:17.579 you know, school year in the School of Leadership, 243 00:17:17.579 --> 00:17:18.540 or whatever it is. 244 00:17:18.540 --> 00:17:19.900 But now the customer, 245 00:17:19.900 --> 00:17:23.359 so that was one of the big things we started focusing on. 246 00:17:23.359 --> 00:17:25.079 But if you're in a SaaS company, 247 00:17:25.079 --> 00:17:28.240 like let's say what Promforge will be, 248 00:17:28.240 --> 00:17:30.680 and to some degree is what Brilliant is, 249 00:17:30.680 --> 00:17:33.500 a SaaS company where software is a service, 250 00:17:33.500 --> 00:17:35.800 then it's the monthly churn, all right? 251 00:17:35.800 --> 00:17:38.400 So, because if the monthly churn is high, 252 00:17:38.400 --> 00:17:40.520 your acquisition costs for the customers 253 00:17:40.520 --> 00:17:42.600 tend to be fairly stable. 254 00:17:42.600 --> 00:17:44.960 I mean, they might increase because, 255 00:17:44.960 --> 00:17:46.520 you know, the ads got expensive 256 00:17:46.520 --> 00:17:48.400 because, you know, it's an election year or whatever, 257 00:17:48.400 --> 00:17:49.840 but for the most part, 258 00:17:49.840 --> 00:17:52.180 they tend to be somewhat predictable. 259 00:17:52.860 --> 00:17:55.500 And it's a lot easier to keep a customer 260 00:17:55.500 --> 00:17:58.580 than to go and get a new one. 261 00:17:58.580 --> 00:18:00.900 And you watch the telecom companies do this. 262 00:18:00.900 --> 00:18:02.760 They spend thousands of dollars 263 00:18:02.760 --> 00:18:04.740 getting you to come to their deal, 264 00:18:04.740 --> 00:18:08.060 you know, to get on their plan, Verizon or AT&T, 265 00:18:08.060 --> 00:18:09.620 and then the customer service sucks, 266 00:18:09.620 --> 00:18:12.180 and you say, why? 267 00:18:12.180 --> 00:18:14.960 So, you know, Ben, you wanna weigh in? 268 00:18:16.820 --> 00:18:21.180 Yeah, I think that monthly revenue, 269 00:18:21.180 --> 00:18:26.180 recurring revenue is the dream a little bit. 270 00:18:27.380 --> 00:18:30.300 I'm curious with this Brilliant group of people 271 00:18:30.300 --> 00:18:34.080 in a product-based or, you know, construction, roofing, 272 00:18:35.740 --> 00:18:38.220 I've thought often about, you know, 273 00:18:38.220 --> 00:18:41.700 I've thought about how to find some recurring revenue, 274 00:18:41.700 --> 00:18:43.020 what, you know, what service, 275 00:18:43.020 --> 00:18:47.740 what value could we offer that would create that? 276 00:18:47.740 --> 00:18:50.820 And I'm wondering, I guess, off the top of your heads, 277 00:18:51.460 --> 00:18:52.900 any ideas? 278 00:18:52.900 --> 00:18:54.380 Yeah, I can speak to that. 279 00:18:55.540 --> 00:18:57.540 On the commercial side, 280 00:18:57.540 --> 00:18:59.900 I've got some ideas on the residential as well, 281 00:18:59.900 --> 00:19:01.820 but on the commercial, we're definitely doing it 282 00:19:01.820 --> 00:19:04.460 with general maintenance programs. 283 00:19:04.460 --> 00:19:05.420 Yeah. 284 00:19:05.420 --> 00:19:06.660 So that's a big one. 285 00:19:06.660 --> 00:19:10.740 And we come back every year, we perform the maintenance, 286 00:19:10.740 --> 00:19:15.180 we guarantee that roof to be leak-free for the next year. 287 00:19:15.180 --> 00:19:17.620 And then, you know, each time we come out, 288 00:19:17.620 --> 00:19:19.460 we reassess, and then eventually, 289 00:19:19.580 --> 00:19:21.820 they get to the point where there's not enough to work with, 290 00:19:21.820 --> 00:19:23.920 and we need to do a restoration. 291 00:19:25.020 --> 00:19:26.820 You know, full roof replacement 292 00:19:26.820 --> 00:19:29.300 is kind of like the last resort. 293 00:19:29.300 --> 00:19:31.660 We're really trying to push that out as far as possible. 294 00:19:31.660 --> 00:19:34.540 And with modern technology and the coatings and things, 295 00:19:34.540 --> 00:19:36.740 we can do amazing things, 296 00:19:36.740 --> 00:19:41.260 and sometimes indefinitely push that roof replacement out 297 00:19:41.260 --> 00:19:44.620 of the equation with full system warranties, 298 00:19:44.620 --> 00:19:46.740 no dollar limit, full system warranties, 299 00:19:46.740 --> 00:19:48.380 which would be the same as if you were doing 300 00:19:48.380 --> 00:19:49.740 a brand new roof on it, you know? 301 00:19:49.740 --> 00:19:51.900 So there's a lot of really cool options. 302 00:19:51.900 --> 00:19:54.540 It's sustainable, you know, great for the earth, 303 00:19:54.540 --> 00:19:57.300 and, you know, less in the landfills, 304 00:19:57.300 --> 00:19:59.700 but, you know, so there's a lot of side benefits. 305 00:20:00.000 --> 00:20:29.800 On the residential, kind of a similar thing, I've noticed a lot of the home service companies around us, that we've had come out, they get you in a little program where you get some perks, you get a discount, their trip fee gets waived, you get VIP status, they come out, you're at the top of the list, if you need them, and then there's some discounts and different things. 306 00:20:29.800 --> 00:20:38.200 And you just pay monthly for that, either monthly or annually, for that kind of a subscription, if you will, the other sorts, you know. 307 00:21:00.800 --> 00:21:13.800 And put them into those four categories, remember the four squares where you talk about profitability versus effort, right? And then you look for where they are, and you'll find that you'll have a bunch of fours, which is they were high effort and low profitability. 308 00:21:13.800 --> 00:21:27.800 And then there was those were less effort, high profit, I think it will start helping you point to how you start to maximize and then once you're there, then you can start asking, is there some way we can increase the average project size? 309 00:21:28.800 --> 00:21:43.800 And here, you know, niche specialization or packaging helps, like, oh, we're partnered with so and so, we also do whatever air conditioning or whatever, you know, with Jeremy's roofing or whatever, you put a package deal together. 310 00:21:43.800 --> 00:21:57.800 And especially if you can add to that an annual maintenance program that covers multiple areas, because think of the convenience to the customer, I don't have to worry about this, this, this, this and this in my house. 311 00:21:57.800 --> 00:22:05.800 These guys not only built this new part or did this reno for my house, but they also now are taking care of whatever. 312 00:22:05.800 --> 00:22:08.800 So I don't have to, I'm sure you've thought of those sort of things. 313 00:22:09.800 --> 00:22:12.800 But what helps is starting with the data. 314 00:22:12.800 --> 00:22:18.800 You don't want to just do red hat, you know, intuition, you want white hat, you want factual data. 315 00:22:19.800 --> 00:22:20.800 It's really good. 316 00:22:20.800 --> 00:22:25.800 I mean, we are, are, are the buildings we specialize in are low maintenance. 317 00:22:25.800 --> 00:22:27.800 It's just one of the selling points. 318 00:22:28.800 --> 00:22:36.800 Although I think, you know, in the turnkey house thing, there may be some maintenance things we could look at there. 319 00:22:36.800 --> 00:22:37.800 Probably digital products. 320 00:22:37.800 --> 00:22:40.800 Emily, I mean, this is something I have looked at. 321 00:22:40.800 --> 00:22:52.800 I think the, the recurring, I think the nature of our projects, particularly as people are trying to do some of the subcontracting ourselves, that actually is the answer. 322 00:22:52.800 --> 00:22:53.800 It's just been difficult. 323 00:22:53.800 --> 00:23:03.800 I probably need to maybe thin slice it more and just start with something simple rather than trying to boil the ocean with the whole community. 324 00:23:03.800 --> 00:23:04.800 Yeah. 325 00:23:04.800 --> 00:23:05.800 Yeah. 326 00:23:05.800 --> 00:23:10.800 I think what we do is we just get a fuzzy feeling about how all the projects are going and we see them on a list or in a spreadsheet. 327 00:23:10.800 --> 00:23:12.800 And so it doesn't, it doesn't help. 328 00:23:12.800 --> 00:23:18.800 What I do from a kingdom viewpoint, upstairs viewpoint, is I sit down with the Lord and I ask him this question. 329 00:23:18.800 --> 00:23:21.800 Would you help me understand the business the way you understand it? 330 00:23:22.800 --> 00:23:24.800 And that's a big help. 331 00:23:24.800 --> 00:23:26.800 Second thing I ask him, where's the starting point? 332 00:23:26.800 --> 00:23:28.800 Very often it's the four square thing. 333 00:23:28.800 --> 00:23:31.800 That's how I came up with that, by the way, way back when. 334 00:23:31.800 --> 00:23:33.800 Cause he just asked me, well, what is it you want? 335 00:23:34.800 --> 00:23:43.800 And, and I said, well, Lord, I want to do projects that are profitable and that are, you know, highly repeatable. 336 00:23:43.800 --> 00:23:51.800 I, there is a, you know, it's not like there's unknown stress or complexities, but also I want to do stuff that's right. 337 00:23:51.800 --> 00:23:53.800 And that gives us shiny eyes as a team. 338 00:23:54.800 --> 00:23:59.800 So, you know, if somebody said, would you come and be the temporary CEO for three months? 339 00:23:59.800 --> 00:24:06.800 Or actually I think the number was four months recently at a hundred X. 340 00:24:06.800 --> 00:24:09.800 So which turned into 13 months. 341 00:24:09.800 --> 00:24:12.800 That's not my best space. 342 00:24:12.800 --> 00:24:13.800 Right. 343 00:24:13.800 --> 00:24:19.800 And, you know, Pedro was really generous and, you know, he was, he was great to work with. 344 00:24:19.800 --> 00:24:23.800 The, the reality though, is that's not my, that's not my shiny. 345 00:24:23.800 --> 00:24:25.800 I have to be the leader of what I do. 346 00:24:25.800 --> 00:24:28.800 I'm a terrible number two, which I told him on day one. 347 00:24:30.800 --> 00:24:38.800 But it, it is, I think it is, you know, that it, it comes down to those very simple things. 348 00:24:38.800 --> 00:24:39.800 You were sharing a story there, Ray. 349 00:24:40.800 --> 00:24:41.800 Yeah. 350 00:24:43.800 --> 00:24:46.800 Just, you know, Emily's suggesting digital products. 351 00:24:46.800 --> 00:24:49.800 You know, Joe Polish is a pretty famous story. 352 00:24:49.800 --> 00:24:56.800 I don't know how many people know Joe, but, you know, Joe, he built a carpet cleaning company through very unique marketing. 353 00:24:56.800 --> 00:24:58.800 And then he succeeded bitcoin. 354 00:25:00.000 --> 00:25:02.000 He started teaching all the carpet cleaning companies 355 00:25:02.000 --> 00:25:04.280 how to do it, built a humongous event. 356 00:25:04.280 --> 00:25:06.160 He had a thousand carpet cleaning companies 357 00:25:06.160 --> 00:25:07.280 come to his event. 358 00:25:07.280 --> 00:25:09.120 And then he launched the Genius Network, 359 00:25:09.120 --> 00:25:14.120 which is one of the more premier masterminds out there. 360 00:25:14.280 --> 00:25:17.640 Regularly has all the big names at him and everything. 361 00:25:17.640 --> 00:25:19.760 And I was a part of it for a year. 362 00:25:19.760 --> 00:25:22.640 But that's, you know, you just, if you, 363 00:25:22.640 --> 00:25:24.880 you know, if you like the idea of teaching and stuff, 364 00:25:24.880 --> 00:25:28.040 that could be an entire other business. 365 00:25:28.080 --> 00:25:29.280 There are a lot of guys who go. 366 00:25:29.280 --> 00:25:30.120 There are a lot of builders 367 00:25:30.120 --> 00:25:32.040 that would love to know what Ben knows. 368 00:25:32.040 --> 00:25:36.200 Yeah, so that's called going meta, meta meaning above. 369 00:25:36.200 --> 00:25:40.240 So what you do is you look at how it's working for you 370 00:25:40.240 --> 00:25:41.640 and then you go and teach others 371 00:25:41.640 --> 00:25:44.680 to do the same on scale, right? 372 00:25:44.680 --> 00:25:49.240 So that's a great way to shift a whole industry. 373 00:25:49.240 --> 00:25:52.280 Find like, you know, if you have a unique building 374 00:25:52.280 --> 00:25:54.120 or a new technology, there's so much. 375 00:25:54.120 --> 00:25:55.920 I'm very interested in building technology. 376 00:25:55.920 --> 00:25:58.200 I follow several key players, you know, 377 00:25:58.200 --> 00:26:00.000 all the new tech that's out there. 378 00:26:00.000 --> 00:26:01.640 And I've always been thinking, 379 00:26:01.640 --> 00:26:05.320 this seems to me the one industry that hasn't changed forever 380 00:26:05.320 --> 00:26:07.760 and somebody is gonna just turn the whole thing. 381 00:26:07.760 --> 00:26:10.200 Whether it's somebody like Boxabl or whoever, 382 00:26:10.200 --> 00:26:11.960 it's gonna turn this thing on its head. 383 00:26:11.960 --> 00:26:13.680 And I know there's pre-manufacturing 384 00:26:13.680 --> 00:26:16.600 and there's printing of houses going on in Texas and so forth. 385 00:26:16.600 --> 00:26:19.160 I've seen some of the stories and watched some of the things 386 00:26:19.160 --> 00:26:22.000 but none of it strikes me as the game changer thing. 387 00:26:22.000 --> 00:26:24.040 They're still trying to figure out the economics. 388 00:26:24.040 --> 00:26:27.040 They're trying to figure out how to scale this thing. 389 00:26:27.040 --> 00:26:29.640 So I thought I'd just throw in a couple of quick examples 390 00:26:29.640 --> 00:26:31.960 because that might help get the juices going. 391 00:26:31.960 --> 00:26:34.320 So let's take a restaurant business. 392 00:26:34.320 --> 00:26:36.520 It's got 200 customers a day. 393 00:26:36.520 --> 00:26:39.880 Average ticket value is $38. 394 00:26:39.880 --> 00:26:42.280 But there's rising costs, rents are going up, 395 00:26:42.280 --> 00:26:43.760 labor costs are getting more expensive, 396 00:26:43.760 --> 00:26:44.800 food costs are improving. 397 00:26:44.800 --> 00:26:47.760 And now we're at the point of just basically breakeven. 398 00:26:47.760 --> 00:26:49.120 Are we gonna make it? 399 00:26:49.120 --> 00:26:50.560 But when looking at the top 20, 400 00:26:50.560 --> 00:26:52.480 which is another way of saying the four square, 401 00:26:52.520 --> 00:26:54.320 if you're doing the four square analysis, 402 00:26:54.320 --> 00:26:57.480 you can put all your receipts into four squares, right? 403 00:26:57.480 --> 00:27:01.360 And then saying this is our number one, this is our top 20 404 00:27:01.360 --> 00:27:04.440 because 80% of the value of the business is in 20% of it. 405 00:27:04.440 --> 00:27:06.680 We know that 80% of the life of a business 406 00:27:06.680 --> 00:27:08.400 is in 20% of what you do. 407 00:27:08.400 --> 00:27:11.920 That's a big thing to know going into this analysis. 408 00:27:11.920 --> 00:27:13.480 Then we know that we go, oh, hang on, 409 00:27:13.480 --> 00:27:15.480 let's do this family celebration 410 00:27:15.480 --> 00:27:18.160 or family feast for 46 people. 411 00:27:18.160 --> 00:27:19.000 Let's do that. 412 00:27:19.000 --> 00:27:20.200 Let's get better wine, 413 00:27:20.200 --> 00:27:23.560 better help train the servers. 414 00:27:23.560 --> 00:27:26.600 But now everybody's seeing the scoreboard. 415 00:27:26.600 --> 00:27:27.440 So in this case, 416 00:27:27.440 --> 00:27:30.960 where it goes from $38 to $58 in eight months, 417 00:27:30.960 --> 00:27:34.040 suddenly we've increased revenue by 53%. 418 00:27:34.040 --> 00:27:35.200 So in that particular, 419 00:27:35.200 --> 00:27:40.080 we go from breakeven to an 18% profit margin just quickly. 420 00:27:40.080 --> 00:27:41.280 And what did we do there? 421 00:27:41.280 --> 00:27:42.760 We turned one dial, 422 00:27:42.760 --> 00:27:46.480 but more importantly, everybody knew the dial to turn. 423 00:27:47.240 --> 00:27:51.640 So, you know, when I was doing my PhD research, 424 00:27:51.640 --> 00:27:55.640 I came across a fascinating case study. 425 00:27:55.640 --> 00:28:00.640 And what the story was is that 50 CEOs from US and Europe 426 00:28:02.040 --> 00:28:04.160 were doing a worldwide tour 427 00:28:04.160 --> 00:28:07.280 to visit the best run companies in the world. 428 00:28:07.280 --> 00:28:10.680 And they end up in one of their stops is in Malaysia. 429 00:28:10.680 --> 00:28:14.280 And there is a company there owned by a Brit in Malay, 430 00:28:14.280 --> 00:28:16.960 and they'd figured out how to extract lead out of pewter. 431 00:28:16.960 --> 00:28:18.240 And they had all these pewter products. 432 00:28:18.240 --> 00:28:20.200 They had 3000 employees, 433 00:28:20.200 --> 00:28:21.520 one of the fastest growing, 434 00:28:21.520 --> 00:28:24.120 literally just dominating their market. 435 00:28:24.120 --> 00:28:25.720 So they go to the presentation. 436 00:28:25.720 --> 00:28:28.720 They're in this theater. 437 00:28:28.720 --> 00:28:29.720 They're about presentation. 438 00:28:29.720 --> 00:28:32.040 They're expecting the senior management team 439 00:28:32.040 --> 00:28:34.760 and the owners to walk out and do the presentation. 440 00:28:34.760 --> 00:28:37.640 And they are not the ones that can imagine the surprise 441 00:28:37.640 --> 00:28:41.160 when five people in blue overalls walk out. 442 00:28:41.160 --> 00:28:43.920 And these five people in their blue overall, 443 00:28:44.560 --> 00:28:47.120 obviously line workers and shift managers and so on, 444 00:28:47.120 --> 00:28:49.680 present the products, their technology, 445 00:28:49.680 --> 00:28:51.680 their unique positioning in the market, 446 00:28:51.680 --> 00:28:54.960 their marketing strategy, 447 00:28:54.960 --> 00:28:57.960 their capital cost structure. 448 00:28:57.960 --> 00:29:01.360 It just, they just blew out the whole thing. 449 00:29:01.360 --> 00:29:03.240 They knew the business. 450 00:29:03.240 --> 00:29:05.320 So at the end of the thing, you know, 451 00:29:05.320 --> 00:29:08.480 the presentation, one of the CEOs, typical CEOs, 452 00:29:08.480 --> 00:29:09.800 thinking about his own deal, right? 453 00:29:09.800 --> 00:29:13.320 Raises his hand, he says, okay, time for some real talk. 454 00:29:13.320 --> 00:29:16.520 How long did it take for them to train you five guys 455 00:29:16.520 --> 00:29:18.400 to make that presentation? 456 00:29:18.400 --> 00:29:19.720 And they all look kind of confused. 457 00:29:19.720 --> 00:29:22.040 And they go, no, no, no, you don't understand. 458 00:29:22.040 --> 00:29:23.280 We heard you were coming. 459 00:29:23.280 --> 00:29:26.400 So they put up on the notice board in the factory 460 00:29:26.400 --> 00:29:28.120 who would like to make the presentation. 461 00:29:28.120 --> 00:29:31.120 The problem was 3000 people put their name down. 462 00:29:31.120 --> 00:29:33.360 We were just the five lucky ones chosen. 463 00:29:34.640 --> 00:29:38.080 Now that to me, there was the lesson right there. 464 00:29:38.080 --> 00:29:39.280 Forget what they said. 465 00:29:39.280 --> 00:29:42.960 The fact that everybody in the business understood 466 00:29:43.600 --> 00:29:45.600 what the big dial is. 467 00:29:45.600 --> 00:29:46.680 And they knew exactly. 468 00:29:46.680 --> 00:29:49.360 And because of that, all the other components 469 00:29:49.360 --> 00:29:52.520 that make up the business is all dialed into that. 470 00:29:52.520 --> 00:29:56.800 Another quick story is of a consultant 471 00:29:56.800 --> 00:30:00.000 who arrived in a company in Chicago that manufactured. 472 00:30:00.000 --> 00:30:05.280 telecom equipment and so he was hired to come and help them up to us they're 473 00:30:05.280 --> 00:30:10.560 really pretty well-run business and so he did an unorthodox thing he decided to 474 00:30:10.560 --> 00:30:14.800 go to the loading bay instead of to the reception area and he met one of the 475 00:30:14.800 --> 00:30:18.960 one of the people there was packing all this equipment into the back of this 476 00:30:18.960 --> 00:30:25.520 this truck and so he said to the he said guy you know what do you do here he says 477 00:30:25.520 --> 00:30:30.800 well I I pack all the equipment and and then I send it out for the installers to 478 00:30:30.800 --> 00:30:34.440 install and he says well how do you know what you do matters I mean how do you 479 00:30:34.440 --> 00:30:38.440 contribute to the bottom line oh that's easy you guys says last month I increased 480 00:30:38.440 --> 00:30:43.920 I decreased our installation cost by 30% is it really he said yeah but our job is 481 00:30:43.920 --> 00:30:47.800 not just to pack it but we go out with the installers and we watch how they how 482 00:30:47.800 --> 00:30:50.960 they unpack what we packed and we realized we had them all back there to 483 00:30:50.960 --> 00:30:55.320 unpack everything to find all the parts but if we pack them in a certain way now 484 00:30:55.320 --> 00:30:59.440 we've reduced those costs by 30% see there's somebody who gets the point so 485 00:30:59.440 --> 00:31:04.000 the question is does everybody in your team know that does everybody in your 486 00:31:04.000 --> 00:31:08.400 team know how they're contributing to the bottom line and the fastest way I 487 00:31:08.400 --> 00:31:13.320 know to do that is figure out the big dial what is the big dial and if we 488 00:31:13.320 --> 00:31:19.240 manage that one thing by the way there's a whole second part to this which we 489 00:31:19.240 --> 00:31:24.800 only have time to get into today but it's also a key way of how you can do a 490 00:31:24.800 --> 00:31:29.920 whole lot less in your business using what Dan Mattel calls the 1080 10 rule 491 00:31:29.920 --> 00:31:36.640 does anybody know that 1080 10 rule so the 1080 10 rule is that 80% of the work 492 00:31:36.640 --> 00:31:41.000 is done by your team but the first 10% is you doing the design you know I've 493 00:31:41.000 --> 00:31:44.000 just recently done that for brilliant we've just put an 18 month plan together 494 00:31:44.000 --> 00:31:48.320 we worked through all that you do the design then you let your team go and work 495 00:31:48.320 --> 00:31:53.040 and then the last 10% is when you do the refinement the QA you go that's where 496 00:31:53.040 --> 00:31:56.400 your taste comes in I don't like that kind of thing I don't like that wording 497 00:31:56.400 --> 00:32:01.080 we don't say that we don't do this you know whatever you're adding your your 498 00:32:01.080 --> 00:32:04.720 unique touch to it at the end so you touch it in the beginning you set it up 499 00:32:04.720 --> 00:32:08.920 you can set the vision the team executes you come back and polish it up that's the 500 00:32:08.920 --> 00:32:13.800 way by the way you free up 80% of your time you can you can thank Dan 501 00:32:13.800 --> 00:32:21.800 Mattel for that for that for that little treasure trove so whatever it is you're 502 00:32:21.800 --> 00:32:29.600 managing you know if you look at if you look at your business it's a great like 503 00:32:29.600 --> 00:32:33.960 we do you know we did immersion at the inner circle as in time of worshipping 504 00:32:33.960 --> 00:32:38.720 waiting on the Lord in a in a life stuff but you can do exactly the same thing 505 00:32:38.720 --> 00:32:44.360 for the downstairs business stuff that's why we learn that in a life skill so we 506 00:32:44.360 --> 00:32:47.600 can do it with the Lord externally so Lord how do you see this business how do 507 00:32:47.600 --> 00:32:53.520 you see this product how does this fit in and while the Lord may or may not 508 00:32:53.520 --> 00:32:58.320 just speak to directly and say it he often will lead you through a process in 509 00:32:58.320 --> 00:33:02.800 which you discover it right and then you discover you know the reason we're 510 00:33:02.800 --> 00:33:07.800 running a second brilliance event in October is because the Lord reminded me 511 00:33:07.800 --> 00:33:12.360 that was the original plan that we came up with years ago but then due to 512 00:33:12.360 --> 00:33:17.480 various things we just got sidetracked never got to it and so I was thinking 513 00:33:17.480 --> 00:33:21.880 okay and so what I did is I took all our products and I put them in the four 514 00:33:21.880 --> 00:33:27.320 squares and where's the thing where are we seeing the most transformation and 515 00:33:27.320 --> 00:33:33.200 where are we receiving the most dollars now who would plot transformation 516 00:33:33.200 --> 00:33:38.760 against dollars just saying but that's the kind of innovative kingdom thinking 517 00:33:38.760 --> 00:33:43.280 we've got to get past all the nervous oh it's about money that's the evil side 518 00:33:43.360 --> 00:33:48.400 and then I know you guys don't think that so for to me it all of life is holy 519 00:33:48.400 --> 00:33:52.720 exception and Jesus died with that so I've got a great life so here's the 520 00:33:52.720 --> 00:33:56.500 thing where we are is what how do you see the business how to get that one big 521 00:33:56.500 --> 00:34:02.040 deal so let's talk about some steps I put together to help you think this 522 00:34:02.040 --> 00:34:06.960 through they're not they see steps they might be little exercises that will help 523 00:34:07.080 --> 00:34:14.159 you work on the business and get out from being in it firstly I like to ask 524 00:34:14.159 --> 00:34:21.360 the Lord when he wants to do this and because it's my habit every week to say 525 00:34:21.360 --> 00:34:25.480 so so father what are we working on this week you know sometimes I'll ask by the 526 00:34:25.480 --> 00:34:29.679 day but often hours by the week because weeks a nice chunk of time to get 527 00:34:29.679 --> 00:34:37.880 something done and and so the so about eight weeks ago I asked the Lord we're 528 00:34:37.880 --> 00:34:42.719 doing the Lord says we're rethinking the business and I just knew my I got 529 00:34:42.719 --> 00:34:47.040 excited I knew my heart this was gonna be great and I had no idea what I was 530 00:34:47.040 --> 00:34:51.480 gonna do next and how to do that but I knew he I said Lord you know the Holy 531 00:34:51.480 --> 00:34:55.120 Spirit is an absolute genius but I found that when I don't ask I don't get and 532 00:34:55.120 --> 00:34:58.280 Jesus said you don't have because you don't know so ask ask every little 533 00:34:58.280 --> 00:35:02.400 detail ask ask ask ask 534 00:35:00.000 --> 00:35:01.040 What does this number mean? 535 00:35:01.040 --> 00:35:02.360 How do you want me to look at this? 536 00:35:02.360 --> 00:35:04.200 Are there valuations I need to do? 537 00:35:04.200 --> 00:35:07.000 So step one is I think of it from the buyer's perspective. 538 00:35:07.000 --> 00:35:08.760 OK, I'm selling it one day. 539 00:35:08.760 --> 00:35:09.640 What's it worth? 540 00:35:09.640 --> 00:35:11.240 We've been through that exercise. 541 00:35:11.240 --> 00:35:12.840 How can I create equity? 542 00:35:12.840 --> 00:35:13.920 Why? 543 00:35:13.920 --> 00:35:16.520 Because you don't get wealthy from cash flow only. 544 00:35:16.520 --> 00:35:19.040 The fastest way to get wealthy is through equity. 545 00:35:19.040 --> 00:35:20.960 Equity building is your fastest way. 546 00:35:20.960 --> 00:35:22.960 So if I'm going to sell that and I'm 547 00:35:22.960 --> 00:35:25.600 going to somehow monetize that equity at some point 548 00:35:25.600 --> 00:35:29.280 in the future or portion of it, I 549 00:35:29.280 --> 00:35:32.920 have to focus on what's building equity in the business. 550 00:35:32.920 --> 00:35:36.520 Number two, look at the value chain, right? 551 00:35:36.520 --> 00:35:39.880 So here's what it cost me to get a customer. 552 00:35:39.880 --> 00:35:42.600 Here's what it cost me to deliver that customer. 553 00:35:42.600 --> 00:35:44.840 Here was the effort involved. 554 00:35:44.840 --> 00:35:48.200 And now I can put those into a four square 555 00:35:48.200 --> 00:35:50.640 and decide which customers so that I can get rid 556 00:35:50.640 --> 00:35:52.360 of all the fours straight away. 557 00:35:52.360 --> 00:35:56.200 You know, the high effort, low profitable. 558 00:35:56.200 --> 00:35:58.800 Get rid of that business as fast as you can. 559 00:35:58.800 --> 00:36:00.960 When I was doing consulting, I would literally 560 00:36:00.960 --> 00:36:03.800 do the exercise in the morning and then spend the afternoon 561 00:36:03.800 --> 00:36:09.120 on a speakerphone with the CEO cancelling all the fours 562 00:36:09.120 --> 00:36:10.800 that same day. 563 00:36:10.800 --> 00:36:13.680 And they would just, you could see the fear in their faces, 564 00:36:13.680 --> 00:36:15.360 you know, we need the cash. 565 00:36:15.360 --> 00:36:17.040 And I said, no, what you're doing 566 00:36:17.040 --> 00:36:19.760 is you're tying up your resources on stuff 567 00:36:19.760 --> 00:36:21.080 that doesn't produce. 568 00:36:21.080 --> 00:36:24.400 Let's free up all the resources of the organization 569 00:36:24.400 --> 00:36:28.360 to go to the very, very best roses, right? 570 00:36:29.320 --> 00:36:31.840 You know, and so then the third step 571 00:36:31.840 --> 00:36:35.520 is what one might call a constraint test. 572 00:36:35.520 --> 00:36:38.040 Here's the constraint test. 573 00:36:38.040 --> 00:36:44.680 If I can only improve one single aspect of my business by 50%, 574 00:36:44.680 --> 00:36:47.760 which improvement would I make? 575 00:36:47.760 --> 00:36:49.160 That will impact the bottom line. 576 00:36:49.160 --> 00:36:52.640 I can only move one thing by 50%. 577 00:36:52.640 --> 00:36:55.160 And then that's got to have a dramatic effect. 578 00:36:55.160 --> 00:36:57.240 This is such a practical thing to do 579 00:36:57.280 --> 00:36:59.800 because a lot of times we get impressions like, 580 00:36:59.800 --> 00:37:02.800 well, if I have more of those, they'll be good. 581 00:37:02.800 --> 00:37:05.040 But then just take that number. 582 00:37:05.040 --> 00:37:06.360 If you like, you can even double it, 583 00:37:06.360 --> 00:37:09.440 double the number and say, did it make a difference? 584 00:37:09.440 --> 00:37:12.320 And you'll be shocked at where the numbers actually are. 585 00:37:12.320 --> 00:37:14.480 This is what we also call black box modeling. 586 00:37:14.480 --> 00:37:16.080 Just get a rough spreadsheet. 587 00:37:16.080 --> 00:37:17.400 You're not trying to model the business 588 00:37:17.400 --> 00:37:18.600 and you're not being an accountant 589 00:37:18.600 --> 00:37:20.080 and you're not being an economist. 590 00:37:20.080 --> 00:37:22.760 You're just trying to learn where the numbers go. 591 00:37:22.760 --> 00:37:26.600 Oh, so if I double this number, 592 00:37:26.600 --> 00:37:28.080 then what happens? 593 00:37:28.080 --> 00:37:30.760 If I, and just play with the numbers. 594 00:37:30.760 --> 00:37:33.240 And again, asking the Lord to be part of that process 595 00:37:33.240 --> 00:37:37.920 with you, always the obvious big dial 596 00:37:37.920 --> 00:37:41.200 makes itself known quickly. 597 00:37:41.200 --> 00:37:44.760 Third exercise is the time investment audit. 598 00:37:44.760 --> 00:37:48.000 Here's what I've learned from doing this exercise 599 00:37:48.000 --> 00:37:49.320 for many years. 600 00:37:49.320 --> 00:37:52.920 Track where you spend your time versus what drives revenue. 601 00:37:52.920 --> 00:37:55.400 It's amazing how many times, you know, 602 00:37:55.400 --> 00:37:57.800 sometimes our biggest opportunities 603 00:37:57.800 --> 00:38:01.280 are things that we're just not giving attention to, 604 00:38:01.280 --> 00:38:02.120 you know? 605 00:38:02.120 --> 00:38:03.080 And you say, well, of course we give, 606 00:38:03.080 --> 00:38:05.680 no, no, really, we do this. 607 00:38:05.680 --> 00:38:07.040 We all do this. 608 00:38:07.040 --> 00:38:08.920 Anybody know what I'm talking about? 609 00:38:08.920 --> 00:38:11.360 Yeah, I do this all the time. 610 00:38:11.360 --> 00:38:13.720 Where's my biggest, especially me as the leader, 611 00:38:13.720 --> 00:38:15.320 what's, where's my biggest contribution 612 00:38:15.320 --> 00:38:16.560 that moves the needle? 613 00:38:16.560 --> 00:38:19.480 Then try to get every team member to do the same. 614 00:38:20.320 --> 00:38:23.760 Last exercise is start with a full 615 00:38:23.800 --> 00:38:25.480 customer economics review. 616 00:38:25.480 --> 00:38:29.200 Figure out the economics of your different customers. 617 00:38:29.200 --> 00:38:30.240 Again, in the four square, 618 00:38:30.240 --> 00:38:32.520 but this time you're looking for things like 619 00:38:32.520 --> 00:38:34.280 customer acquisition cost. 620 00:38:35.440 --> 00:38:37.800 Knowing what it costs to bring a customer in 621 00:38:37.800 --> 00:38:39.600 is really, really important. 622 00:38:39.600 --> 00:38:40.880 You've got to know what that is. 623 00:38:40.880 --> 00:38:43.120 You say, well, we don't do ads. 624 00:38:43.120 --> 00:38:44.480 You know, we've got a sales team. 625 00:38:44.480 --> 00:38:45.560 Well, that's a cost. 626 00:38:46.480 --> 00:38:48.760 How many, how much do you pay each month 627 00:38:48.760 --> 00:38:49.600 for your sales team? 628 00:38:49.600 --> 00:38:51.640 And on average, how much business do they, 629 00:38:51.640 --> 00:38:53.840 well, there's your customer acquisition cost, 630 00:38:53.840 --> 00:38:55.720 not docket science. 631 00:38:55.720 --> 00:38:57.200 Average transaction value. 632 00:38:57.200 --> 00:39:01.080 Maybe you sell real estate, you know, or something. 633 00:39:01.080 --> 00:39:03.920 Your frequency, how often can you turn the knob? 634 00:39:03.920 --> 00:39:06.920 How often can you crank the handle on this thing? 635 00:39:06.920 --> 00:39:09.120 If you can only crank it once or twice a year, 636 00:39:09.120 --> 00:39:09.960 well, that's a lot harder 637 00:39:09.960 --> 00:39:12.600 than if you can crank it once a week. 638 00:39:12.600 --> 00:39:15.360 So how fast can we crank? 639 00:39:15.360 --> 00:39:17.760 What's the frequency we can drive it at? 640 00:39:17.760 --> 00:39:20.080 And then how long are customers with us? 641 00:39:20.080 --> 00:39:22.120 And what's the overall lifetime value? 642 00:39:22.120 --> 00:39:24.200 Is the value all up at the front 643 00:39:24.200 --> 00:39:26.600 and then you've struggled to get them to do anything else? 644 00:39:26.600 --> 00:39:29.240 Or do you build them up into, you know, 645 00:39:30.840 --> 00:39:32.280 is it Flynn, Ray? 646 00:39:32.280 --> 00:39:33.760 Is his name Flynn? 647 00:39:33.760 --> 00:39:37.920 The guy talked about the perimeter fandom. 648 00:39:39.600 --> 00:39:40.720 Do you know him pretty much? 649 00:39:40.720 --> 00:39:41.560 Yeah, Pat Flynn. 650 00:39:41.560 --> 00:39:42.640 Pat Flynn, yeah. 651 00:39:42.640 --> 00:39:44.080 So Pat Flynn, thanks, Jenny. 652 00:39:44.080 --> 00:39:44.920 Pat Flynn. 653 00:39:46.080 --> 00:39:47.680 I found that very compelling 654 00:39:47.720 --> 00:39:50.120 that we spend way too much time 655 00:39:50.120 --> 00:39:52.520 trying to build just the bottom of the funnel 656 00:39:52.520 --> 00:39:55.720 when we should be spending a good amount of our time 657 00:39:55.720 --> 00:39:59.160 on our raving fans, the top of the pyramid. 658 00:39:59.160 --> 00:40:00.000 The big ticket. 659 00:40:00.000 --> 00:40:04.040 of the pyramid is where, and then let it trickle down. 660 00:40:04.040 --> 00:40:05.840 And I think it's one of the big, 661 00:40:07.280 --> 00:40:09.000 I don't think it's as simple as just focus 662 00:40:09.000 --> 00:40:10.600 on one or the other, but he's talking about 663 00:40:10.600 --> 00:40:13.540 what are you prioritizing, not stop this and do that. 664 00:40:14.720 --> 00:40:17.320 And I know starting with your big ticket item 665 00:40:17.320 --> 00:40:19.400 is you wanna get there as fast as you can 666 00:40:19.400 --> 00:40:21.760 because that's typically where your big contribution 667 00:40:21.760 --> 00:40:23.000 to the world lies. 668 00:40:23.000 --> 00:40:26.200 And if the quicker you can get there, the better. 669 00:40:26.200 --> 00:40:28.320 Ray, I know you have thoughts on this. 670 00:40:28.360 --> 00:40:30.020 So I'm gonna bring you in on it. 671 00:40:31.360 --> 00:40:32.960 We've talked a great deal about this 672 00:40:32.960 --> 00:40:35.280 and I know you train a lot of teams yourself. 673 00:40:36.960 --> 00:40:38.880 Yeah, for sure. 674 00:40:38.880 --> 00:40:42.320 I think a lot of times we have, 675 00:40:42.320 --> 00:40:43.680 I mean, if you're talking about super fans, 676 00:40:43.680 --> 00:40:45.960 a lot of times we have these super fans 677 00:40:45.960 --> 00:40:48.520 and we just aren't offering them enough. 678 00:40:49.920 --> 00:40:52.000 We're not making enough offers. 679 00:40:52.000 --> 00:40:57.000 And so one of my client from a million years ago, 680 00:40:57.400 --> 00:41:00.240 probably almost 20 years ago, 681 00:41:00.240 --> 00:41:04.080 she owned multiple olive oil shops. 682 00:41:04.080 --> 00:41:07.000 And so you would come in, she had all this gourmet olive oil 683 00:41:07.000 --> 00:41:08.960 it was amazing. 684 00:41:08.960 --> 00:41:11.840 And you get a little shop glass 685 00:41:11.840 --> 00:41:13.400 and you could try these different oils 686 00:41:13.400 --> 00:41:15.280 with a little bread and everything. 687 00:41:15.280 --> 00:41:17.880 And she had certain people that would just come in, 688 00:41:17.880 --> 00:41:19.360 just love the stuff. 689 00:41:19.360 --> 00:41:24.280 And I was always encouraging her to offer 690 00:41:24.280 --> 00:41:25.760 what's the next level. 691 00:41:25.760 --> 00:41:29.600 Offer a $30,000 trip to go over and crush some olives. 692 00:41:31.800 --> 00:41:34.200 There are people that want to experience 693 00:41:34.200 --> 00:41:37.440 at the highest level, give them that opportunity. 694 00:41:37.440 --> 00:41:41.760 And I think that a lot of times we don't think about that. 695 00:41:41.760 --> 00:41:45.880 We don't think about, what's his name? 696 00:41:45.880 --> 00:41:48.480 Perry Marshall wrote a great book, 697 00:41:48.480 --> 00:41:50.080 The 80-20 Principle, 698 00:41:50.080 --> 00:41:53.000 which everyone kind of understands that principle. 699 00:41:53.040 --> 00:41:55.480 But he says 80% of your income 700 00:41:55.480 --> 00:41:57.720 will come from 20% of your customers. 701 00:41:57.720 --> 00:41:59.280 And 80% of that income 702 00:41:59.280 --> 00:42:02.320 will come from 20% of those customers. 703 00:42:02.320 --> 00:42:07.320 So there are people that, like in Ben's world, 704 00:42:07.400 --> 00:42:09.440 there may be some collaboration 705 00:42:09.440 --> 00:42:12.240 with certain commercial guys that, 706 00:42:12.240 --> 00:42:15.680 if only that right there was tighter, 707 00:42:15.680 --> 00:42:17.520 that would be $100 million. 708 00:42:17.520 --> 00:42:22.400 And so it's, how do we navigate? 709 00:42:22.400 --> 00:42:27.400 And I've had several clients over the years 710 00:42:27.920 --> 00:42:31.600 that just love my stuff and love my coaching. 711 00:42:31.600 --> 00:42:35.000 And they've dropped over $200,000 to get coached by me. 712 00:42:35.000 --> 00:42:38.080 And then there's other hundreds of thousands of people 713 00:42:38.080 --> 00:42:42.120 on my email list that don't buy anything, 714 00:42:42.120 --> 00:42:45.000 but they see my free stuff and they share it 715 00:42:45.000 --> 00:42:46.560 and someone else sees it. 716 00:42:46.560 --> 00:42:50.200 And so just thinking about, 717 00:42:50.200 --> 00:42:52.280 I mean, you made so many great points there. 718 00:42:53.120 --> 00:42:55.280 You could pick any of those and focus. 719 00:42:55.280 --> 00:42:57.800 But I like the, how do I take someone 720 00:42:57.800 --> 00:43:00.320 who just really loves what it is that I do 721 00:43:00.320 --> 00:43:02.880 or the service that I have or the product, 722 00:43:02.880 --> 00:43:04.560 what kind of collaboration, 723 00:43:04.560 --> 00:43:06.400 what is the next level kind of thing? 724 00:43:06.400 --> 00:43:09.600 What's an out-of-the-box way to work with them? 725 00:43:09.600 --> 00:43:12.080 Yeah, and I think part of when, 726 00:43:12.080 --> 00:43:17.040 even when we put our recent Offer CEO Intensive together 727 00:43:17.040 --> 00:43:21.400 was because we saw the need for people to have the help. 728 00:43:21.440 --> 00:43:23.280 By the way, I'm just dropping in the chat 729 00:43:23.280 --> 00:43:25.120 a whole implementation strategy 730 00:43:25.120 --> 00:43:27.160 because I don't think we're gonna have time to go through it 731 00:43:27.160 --> 00:43:28.920 if you just wanna copy and paste that. 732 00:43:28.920 --> 00:43:31.000 But basically, here's what you need to do. 733 00:43:31.000 --> 00:43:35.200 Identify, week one, see if you can identify the big dial. 734 00:43:35.200 --> 00:43:36.640 Two, create a tracking system. 735 00:43:36.640 --> 00:43:40.560 Let people, let your team see the scoreboard of the game. 736 00:43:40.560 --> 00:43:43.080 And then establish baseline metrics. 737 00:43:43.080 --> 00:43:48.080 Like, okay, we're starting at $28 per revenue per customer. 738 00:43:48.920 --> 00:43:50.840 And then set a 90-day target. 739 00:43:50.840 --> 00:43:53.920 We want that $28 to be $40. 740 00:43:53.920 --> 00:43:56.080 Then get team alignment. 741 00:43:56.080 --> 00:43:57.480 Talk it through with the team 742 00:43:57.480 --> 00:43:59.760 and then help each person understand 743 00:43:59.760 --> 00:44:02.120 how they're gonna contribute to that one metric. 744 00:44:02.120 --> 00:44:03.200 Now, what you've suddenly, 745 00:44:03.200 --> 00:44:05.000 you're focusing all the resource 746 00:44:05.000 --> 00:44:07.120 on the thing that moves the needle. 747 00:44:07.120 --> 00:44:09.880 Then if you have to even adjust incentives, 748 00:44:09.880 --> 00:44:11.520 if you like, recognition, 749 00:44:13.280 --> 00:44:17.120 Sunso made, we do a Tuesday triumph thing 750 00:44:17.120 --> 00:44:19.520 where we call out to each other on who's contributing. 751 00:44:19.520 --> 00:44:22.120 But we could even take that up a notch in our team 752 00:44:22.120 --> 00:44:24.200 and do it specifically how it's contributing 753 00:44:24.200 --> 00:44:26.600 to this, to the main thing. 754 00:44:26.600 --> 00:44:28.280 And then the hard one, 755 00:44:28.280 --> 00:44:31.160 eliminate competing metrics and priorities. 756 00:44:32.560 --> 00:44:33.720 Shoot those in the head. 757 00:44:33.720 --> 00:44:35.880 We don't need to do those. 758 00:44:35.880 --> 00:44:38.240 Back to trimming the bush. 759 00:44:38.240 --> 00:44:40.400 What's dead and needs to go? 760 00:44:40.400 --> 00:44:43.720 You know, what's weak and not getting better? 761 00:44:43.720 --> 00:44:45.600 What's good but not great? 762 00:44:45.600 --> 00:44:47.520 And then we get to the 20%, 763 00:44:47.520 --> 00:44:49.680 where the 80% of the life is. 764 00:44:49.680 --> 00:44:52.200 Your implementation strategies, 765 00:44:52.200 --> 00:44:54.280 what we wanna do is we wanna focus on, 766 00:44:54.280 --> 00:44:58.120 I would suggest at least weekly progress updates 767 00:44:58.120 --> 00:44:59.400 and publish it somewhere, 768 00:44:59.400 --> 00:45:00.240 put it somewhere. 769 00:45:00.000 --> 00:45:05.440 everyone can see it or on an app or send a text, whatever it is, make sure everybody knows what 770 00:45:05.440 --> 00:45:10.720 that number is and let them see the progress. It'd be great if we can see the the movement 771 00:45:10.720 --> 00:45:15.280 up or down, by the way, even the negative thing can be healthy because, hey, what did we do wrong? 772 00:45:15.280 --> 00:45:19.600 What did we where did we misstep? So it doesn't have to be just, you know, onwards and upwards. 773 00:45:19.600 --> 00:45:26.480 But I mean, the quarterly review, you know, is this still our big thing? And when you dial this 774 00:45:27.040 --> 00:45:31.760 I think this is like the number one problem I see in businesses. And so I thought, well, 775 00:45:31.760 --> 00:45:36.800 let me just share a couple of mistakes I've seen made. So here's a couple of again, 776 00:45:36.800 --> 00:45:40.400 because I'm running out of time, I'm just going to drop it here in the chat for you. But 777 00:45:40.400 --> 00:45:44.720 here are a couple of the mistakes I've seen made. You know, try to focus on three to five 778 00:45:44.720 --> 00:45:51.280 critical metrics. Guys, there's one. If you've got three to five, you haven't finished working, 779 00:45:51.280 --> 00:45:56.080 you're still you're still figuring it out. So that's my rule for me. What's the one thing? 780 00:45:56.080 --> 00:46:01.360 Now, what you might find if you have different divisions in the business that that may look a 781 00:46:01.360 --> 00:46:06.320 little different, but you have to choose one. Everything else is secondary. And it's OK to 782 00:46:06.320 --> 00:46:12.480 have such secondary metrics as long as everybody knows they're secondary. And the mistake number, 783 00:46:12.480 --> 00:46:17.440 you know, look at short term focus, you know, optimizing for this month or just this quarter. 784 00:46:17.440 --> 00:46:22.320 But we're not building for the long haul. What's going to build equity? I'm going to sell it in 785 00:46:22.320 --> 00:46:26.880 five years. That's why I give the five year horizon to get your mind off the short term 786 00:46:26.880 --> 00:46:31.600 problem in the cash flow. And I have payroll on Thursday. We know the feeling. I'm just saying 787 00:46:31.600 --> 00:46:38.400 that we will we'll go through that all the time. But I would say ignoring the team alignment, 788 00:46:38.400 --> 00:46:44.240 it's really important that the whole team know. But probably from a kingdom viewpoint, by far, 789 00:46:44.240 --> 00:46:50.960 the biggest mistake of all is not knowing that you're doing this in yoke. You're not on your own. 790 00:46:51.680 --> 00:46:58.320 He said, I will be with you. I'll go with you. I'll help you. Moses said, Lord, if your presence 791 00:46:58.320 --> 00:47:03.840 doesn't go with us, I'm not going. Right. And that's what it is. Not that his presence isn't 792 00:47:03.840 --> 00:47:08.480 with us, but he was Moses in the Old Testament where his presence did come and go, depending 793 00:47:08.480 --> 00:47:14.160 on their behavior. You're one with Christ. You have a far greater kingdom advantage. 794 00:47:14.160 --> 00:47:18.640 So maybe for some of us business wise, time to move out of the shack and into the mansion 795 00:47:19.040 --> 00:47:26.160 and say, Lord, what do you what do you got for me? What is this that, you know, I want to just 796 00:47:26.160 --> 00:47:31.920 not only have fun doing it, but I want to take it to the scale level where it makes a difference, 797 00:47:31.920 --> 00:47:36.960 where we're moving the needle, not just for our business, but for our community, for our people, 798 00:47:36.960 --> 00:47:41.440 for our industry. You know, I want the kingdom to have this level of influence. 799 00:47:42.400 --> 00:47:49.520 Well, there are a couple of amazing things if you pull this off. Right. So clarity emerges. 800 00:47:49.520 --> 00:47:54.400 That's huge. Everybody now every decision is now balanced against that one thing. 801 00:47:55.040 --> 00:47:58.800 Growth accelerates because it's focused. No one's pulling in the same direction, 802 00:47:58.800 --> 00:48:02.400 especially when you feel like that's come straight out of your yoke. If you and Jesus 803 00:48:02.400 --> 00:48:06.560 are pulling in that direction and your team joins, you've got something good going on. 804 00:48:07.520 --> 00:48:11.920 Of course, team performance improves because they know what the priority is and they're all 805 00:48:11.920 --> 00:48:16.160 pulling in the same direction. Your business value is going to increase because you're focusing on 806 00:48:16.160 --> 00:48:22.160 the core building of equity, not just cash flow. And of course, your personal freedom grows, 807 00:48:22.160 --> 00:48:27.200 especially if you're going to use the ten eighty ten to do the ten eighty ten thing. 808 00:48:27.200 --> 00:48:30.880 You've got to start with what's the big thing, because how are you going to manage it remotely 809 00:48:31.520 --> 00:48:33.840 if you don't know if the one big number is moving or not? 810 00:48:34.480 --> 00:48:38.560 If you had access to that one big thing, you could spend your time and other things 811 00:48:38.560 --> 00:48:43.280 and just come back in and look at the dial. Is the dial moving? Is it good? And by the way, 812 00:48:43.280 --> 00:48:49.120 definitely decreases stress and conflict and confusion because everybody knows what we're 813 00:48:49.120 --> 00:49:07.840 trying to do. Cool. Well, since you like the summaries, I'll drop the transformation promise. 814 00:49:11.760 --> 00:49:14.000 Here's the deal, guys. The Lord, by nature, 815 00:49:14.960 --> 00:49:20.720 is into transformation and he wants to be part of yours in your business and how your business 816 00:49:20.720 --> 00:49:25.200 will transform the lives of the people who work in your company, whether they know him or not, 817 00:49:25.200 --> 00:49:29.040 and then your community and maybe even your industry, maybe even the country. 818 00:49:29.040 --> 00:49:33.680 Who knows how far this goes? So I hope that was helpful.