You're about to watch a conversation between me and Alexi Omar, who's a legal attorney for musicians. The problem is that he's losing money, and lots of it. And he only has about six months of cash left before his dream is going to go under. My name is Alex Ramozzi on acquisition.com. It's a portfolio of companies that... last year did over $250 million in aggregate revenue. And we're going to take all of those findings and help him save his business.
Enjoy. Let's do a quick, quick overview. So walk me through the businesses that currently stands right now. What's revenue? Our revenue for the last 12 months has been $300,000. Profit? so we're losing money okay how much we lost a hundred thousand okay minus hundred thousand yes you're like i could have done nothing and i would have just had zero at the end of the year instead of working all year and then being worse off All right. What are the business units? Right now we have services. Okay.
We have education. Okay. And who do you sell to? I sell to artists and entrepreneurs in the Latin music industry. Musicians who are Latin American, who speak Spanish. Yeah. Okay. And you sell service, you sell education. What was the last one? Software. What's the revenue breakdown between... Did any of these make money? Yeah, the services. so this made money was profitable yeah that was okay what was the top line and bottom line here so we made a hundred and thirty one thousand
Okay. And we made about 10K in the last 12 months. In profit. Yeah, in profit. Because you just didn't lose money on this one, basically. Okay. And then education? 131 as well. Oh, how coincidental. All right, profit. Most of the money we lost between the two. Okay. So it's between the two because they're under one company. Got it. And so this is 40K. I'm just going to put this as for the software. And then...
The money that you lost here was how much in total? I guess $110,000. Okay. Put a little negative smiley face there. Maybe a little tears. There we go. Very sad. Okay. More tears. Yeah. More tears. All right. So how are you getting customers right now before we talk about how we're going to fix this? How are you getting customers? So we create content on YouTube. We have about 90,000 subscribers. Is that where most like everybody's coming from? Yeah. Okay. So we got...
We've got YouTube. All right. What else we got? Then they usually go to our Instagram page. From YouTube? Yeah. Okay. That's like the call to action in the videos? No. The call to action is to go to our website. But a lot of people go to Instagram to just ask questions like, hey, I have this problem. Can you help me? Interesting. OK, got it. So where do the sales come from?
The soaps comes through DMs. So usually they go to Instagram and they'll ask a question. So the place that you don't intend people to go is where you make your money. yeah instagram and you don't tell people to go there they just find instagram no yeah they just find us okay All right, we'll put a little star next to that. If all the money's coming in from Instagram, how many DMs do you got? So we don't have that number. We know that from the website we generate about 7,000 visitors. Okay.
And for example, in April, we made 150 leads this far. So 7,000 clicks. Got it. All right. And then that goes into 150. Okay. Got it. So you're converting 2%. Okay. Into Optin. Yeah, they're for free course. Okay, so they just opt in for free course. Yeah. Got it. Okay. And then from there?
And then from there, usually we'll try to sell them the course, our main course. How do you try and sell them? Do you reach out to them? With every video, we usually tell them, hey, and if you want to learn more about this, Make sure to enroll in our community. The next step for that, they'll go through the course and receive some nurturing emails. And then from the emails is how they buy? And what are they buying from the email?
So right now we're selling about nine. Nine out of the 150? Our basic offer is $500 one time. So they have access to all of our courses now and forever. Okay. And then we have an upsell of another 500. Is that on a funnel or something? Yeah, in the same cart. Okay. When they buy the 500, we'll upsell them to another 500 for... monthly q a per month no just lifetime as well forever yeah nice okay oh god
Okay, so there's so many, I mean, there's so many things. Before we, you know, tear this apart, the good news is I actually think that you'll be able to make significantly more money pretty quickly. So this is your education side? Yeah. all right what's the uh services side so on the same instagram page if they want a consultation instead of learning because they say i'm not interested in learning sure i just want okay i want you to do it yeah i want you to do it
We'll then send them to our calendar link to schedule a consultation. And that's $250 for an hour. So you go DM. to calendar okay and then you charge before you have the call yeah Okay. 250. Dude, the good news is... there's lots of room for improvement okay great so you have your calendar and then you charge 250 per hour and they pay on the calendar to to have access yes man all right and so that means that You sold somewhere in the neighborhood of
600 630 something like whatever the math is 131 times four that's 400 520 so uh 524 so 524 hours is what you're able to sell in services last year between the consultations because usually when they go through the consultation. Say for example, in the last three months we've averaged about 9 to 10 calls.
So then from there, we'll either tell them, do you need a deliverable service? So for example, registering your trademark or business formation. Those are three out of the 10, you can say. And then another three are ongoing legal services.
Let's talk about that. So the other business is the software. Because you were like, you know, I'm not losing money. So I should, I am losing money. Excuse me. So I'm going to, I'm going to spread my attention even more. Yeah. Okay. So we're like, there's a story behind that. It's a VC story. So if you want a horror story, I can give you that. We'll get into it, I'm sure. All right. So there's a software company. Okay. So let's walk through that. So the software is...
Instagram? Where's it coming from? Yeah, it's the same thing. Usually they'll say, I don't have $250. I just want a contract. Okay. And we'll tell them, well, you can access all of our contract templates inside our software so you can pay for that. Okay. And that's what happens. Right now we're getting five. So via Instagram, you just send those people not a calendar link.
and you don't send them to the site you send them to to our webs to our software website which is a different website and then they just check out on that page they start a free we had a freemium now we're using free trial okay and what's the membership price right now is a thousand per year and that's what so it goes straight to a thousand per year is what you were billing yes we also have a monthly version they were like i can't afford
Before we have $500 per year, so it was easier. The problem is that the value proposition at first was... well pay us and we give you the contracts but learning that people were churning because once they have their contract they'll download it and just go away we have a couple of decisions that we have to make is there any reason that you just don't sell services and make money So, well, the reality is we started selling services back in 2019. So in 2021, uh, people.
We got a lot of demand. I couldn't keep up. I started selling courses so they could, you know, learn about how to do them themselves. And then after that, and also contract templates. And then the education side just, you know, we started making them same amount of money and education. This is going to be an important one for you. Yeah. All right. So actually, you know what? I'm going to show you it on my logo. Two most important concepts.
So, if supply is low and demand is high, what happens to price? It goes up. Is that what happens? yeah we started doing that yes but then you created this other thing that was much cheaper rather than just saying i don't have enough supply pay me more you're right All right. We wanted to help more people instead of just... Yeah. But the thing is, is that on a long enough time horizon, you'll have no one if we don't make this business profitable. Right? Yes. So, okay. Tell me why...
We can't shut down the education and software so that we can just do service. And then we can fix the service business to make it make money. Yeah. So the educational side, we already have over 800 people. They all bought like lifetime everything. Lifetime everything. Lifetime everything. The thing with the education is that it's part of... we are giving back to the community and nobody else is doing this. So every time...
Thanks to the education efforts, we are traveling the world and teaching other people in Guatemala, in the Dominican Republic, in Spain, how the music business works. Because in those places, our content is the university's content. So it's an impact project, right? So that is why the education, you know, it would be...
Very difficult for us to shut down. And the education without the software is not losing money. It's the software that actually is losing money. Okay, so when we did this breakdown, you said the education loses money. So how much money does the education make if you don't have... In reality, the education would be a break even. Okay. That whole money that we're losing. So this is just zero. Yeah. But you said this is 110,000 of losses. So that means the software.
costs you 150 000 a year and makes you 40. yes okay you could say that so why can't we be done with the software So the software right now, there's not a specific reason we can't. shut it down we we've seen traction on the b2b side of companies in the music industry that are interested in using our software because their clients like big
companies now need a music contract software to manage their documents. So they play there for us. So what, the software? The software. But that is something that... How much did it cost you to develop this? Right now, it's burning 7K a month because we cut every employee before. How likely is it, do you think? i'm not sure and the other thing is the software actually right now the way we are seeing it grow is by bundling services with software
Well, it's obvious the service is the thing that everyone needs. And then we just have like this other stuff that we did to be cute. Where do you want to... What do you want to have happen? The thing that we need is to be profitable. That we can solve very easily. That's the good news. Yeah. But it will just be painful. Yeah. But it's good pain. Growing pains. Yeah. Call them growing pains. If you lose a negative, it's a positive. So, okay.
So in a world, hypothetically, where you just ended the software tomorrow and then you have the education and services, what is required for you to maintain?
work-wise per week right now it's only one live stream with the community per month or per month yeah that's the only thing that's it okay great can we just shut down the software we can do that that was easy okay great i love this for us okay so we're gonna x this out let's use a red let's keep this you know keep this keep this on brand here so this is a red
I'm going to say that this isn't really a business. I'm going to say this is a charity. You might even want to operate like a nonprofit because it doesn't make any profit anyways. And you're very, you know, kind of impact driven and whatnot. So then what's the cost on the $131,000? The cost would be the associate who is delivering the services. Right now we have a ref share model. Okay. But we also have, because the services, for example, this year, we are already at 150 K.
Okay, great. Because now, thanks to the education, the next generation of artists are looking towards us to represent them in deal closing, closing deals, right? So from there, we take a commission from the deal. Okay. So, for example, we've recently closed several deals that are above $500,000 for the artist. Amazing. And we take 5% from those. Okay. So... Do you guys act as an... No, they're lawyers, representatives. Those are legal fees that they label.
uh will also pay us that's the the music industry is a commission is heavily commission based so they get an advance yeah and the label will so the services strike again in making money. Wonderful. So what I want to do is reimagine the business in the simplest format possible.
that's organized to make you money both short and long term is that okay yes all right so i'm going to draw it across the top here and we're going to draw it in green because this is the money path all right it's the money path you keep your youtube where it is now what i want you to do is i want you to have four different places that you're going to embed calls
All right. So number one is at the 30% mark of every video, I want you to make a quick 30 seconds. Like, hey, by the way, you know, if you want us to help you out with your music business right now, just DM me on Instagram and I'd love to help you out. Okay. Number two is the description.
all right and you want to make sure that it's above the fold so you know below this video right now you'll probably see two links one is for people who are trying to start business which they go to school and if you already have a business and you're trying to scale and you're like you know a million bucks a year or more you know 500 000 or more 10 million
You can go to acquisition.com and schedule a call with our team and see if we can help you out. So we have a description. Now on top of that, pinned comment so you can own that real estate we also have your profile on youtube which gets traffic as well and so those are four places that we can actually just put in all of the ctas here
Or DM me on Instagram. Why are we doing that? Because it already works. So I'm not trying to break it. All right. So now everything's going Instagram. So instead of having the site, we don't even care about. who cares it doesn't matter so we're going to dm me on instagram and then from there what i want you to do is i want you to have them book a call without paying and then what we're going to do is we're going to sell them and what we're going to do is we're going to sell them
And we're going to sell it to the outcome. And you're going to say, hey, a lot of lawyers like to charge by the hour. The reason that we don't do that model is because it disincentivizes us. Basically, our incentives are adverse to you. When we do it by the hour, we're incentivized to take as long as possible. So it means it costs you more and it takes longer. That sucks. So what we're going to do is we're just going to charge you for the outcome, period. That's it. How's that?
Yeah. So we have to qualify them before they can go to the landing page because, you know, there's 10 million artists on Spotify. Sure. And only 1,000 are professional. Maybe 2,000 are professional. Do you see that the landing page? Yeah.
they'll have cars they'll have cell phones they'll pay mortgages and rent we're not we don't you sell to a lot of up-and-comers and newcomers they're going to use just like you have been spending your education money that you make money on this dream that you have
and losing money we're going to have them do the same thing they're going to take their job money and spend it on their dream and hopefully they make it but our goal isn't to try and figure out who's going to make it our job is to enable not like and if you want you can add their Spotify if you think that matters you know the qualification but fundamentally yeah okay that's what I figured so yeah because if you I've worked with different artists that there's Spotify
For example, I have a Spotify. I'm a guitar player. And I have 15,000 monthly listeners. But you wouldn't take that to determine whether I can pay you or not. Of course. But we are currently. Yeah, you're right. Yeah, you're right. So what we're going to do is income, but we're going to do through budget authority need timing. That's the big four, right?
do you have the money is there somebody else who needs to be on the phone your grandmother your dog your your agent whatever need so how important is this to you And then timing. If we were to get you set up, how quickly would you want us to make this, get this trademark or get this thing filed? You want to take the people who have the money and want to do it now and are able to make the decision. That's the qualification. Now, the big question.
is what are we going to charge? So you're asking me? I'm going to give you a hint. It's more than $2. Hopefully the price is right with what you're going to charge. So the average ticket on the service size between the ongoing one time and the consultation is about $1,500. That's the average. Okay. And a lot of that. is from people just getting hourly charge.
No, it's basically the ongoing right now is about, the lower ticket is about $1,000 per month. Okay. Because we're not charging them by the hour like a traditional lawyer. So, and this is 750 usually. So you can see that if you combine the other, they usually get two. So this is what I want you to do. I would love you to charge $5,000. I feel like that's going to be a stretch for you emotionally. So how about we start at $3,000?
can you do five we can do five can you emotionally do five yeah we're we're selling right now three months for four thousand so great so well then shoot then we might as well do six You know what? I'll meet you in the middle. 5,800. Okay. All right. This is we're going to sell. That's your retainer.
right so either we can sell so okay this is a question for you i do i would prefer to sell the outcome if it's just a clear outcome that they're they're going for um or you can sell a retainer right and just say like it's 5800 i'll draw if you can afford not to. You good with that? Yeah, we can move towards the outcome if it's the type of deal that we want to work with. Like, for example, when I say outcome, I mean.
the contracts or the that kind of thing like when it's the commission-based stuff i want the 5800 plus the percentage that's how we were doing it right now And we also need to organize the business so that we're optimizing for this outcome, not three different outcomes and confusing everybody. Right. Okay. Now, if on the sales call, someone is unqualified. So this depends on your deal flow, but I'm assuming that you've got. Yeah, because my time is spread around trying to understand this.
All right, this will work. When you have these people that are coming to call, what I want to add is before we have to sell the outcome, so this is kind of like on the call, right here beforehand, we're going to add a VSO, okay?
So you're familiar with the VSL video sales letter? Do you have one right now? For the course, yes. Okay. So instead, I just need you to make one. Seven minutes. You know, five to seven minutes doesn't need to be long. Just explaining how you do things in your... and the other people that you've worked with, some of the successful outcomes.
reviews, things like that. And then also I would set expectations, which is like on this call, we're going to have one of two outcomes. Either you want more personalized attention and we'll give you the outcome that you want. Or if you're like just starting out.
We do have an education thing that if you can't afford our actual services, you can do it on your own. I've done so. Yeah. Now, the thing is, is that, you know what? I don't even know if I like that. I'm deleting. I'm deleting that. Okay. So the VSL is going to sell the services. That's it.
When you get on the call, if the person lied about their income or lied about their qualifications, which does happen, then you can immediately triage them and say, so triage doesn't like you split and say, you know what? You can tell like this isn't going to be a services sale for $6,000 plus a percentage. Instead, it's going to be, you know, a one-time education product sale. And then you can sell that. Now, right now you have this 500 and 500. I'm going to wager.
that you don't need like if you're getting people to buy this in a on a checkout page typically you can triple the price with a phone call So you could probably sell for three grand. So if we're charging six here, I would say probably somewhere in the neighborhood of like two to three K is the right price point for the education.
But the only purpose of that is just so that you can maximize your time on the call so that you can still kind of have something. And if you need to do a payment plan or whatever, you know what I mean? At that point, you're just trying to liquidate your time. But fundamentally, if we were to do this... Let's walk through what it actually looks like now. You have your YouTube videos. Now, all of the calls to action. The way I see my YouTube is I have, you know, 2000 video, whatever.
And each of them are basically like little mini. that are always running and underneath of the video or the quality ad i have my actual call And I can, I have this surface area across the whole internet. that i can change and redirect all of that traffic from all of my videos to wherever i want then you can go back and on your biggest videos go get pinned comments that you know um that have the same call to action because some people just read the comments
change your profile, and then going forward in your videos, you'll put the CTA towards DMing on Instagram. We're going to completely ignore the site since that's where all of your sales are happening on DM. So let's just push everyone to DM. Now, how many followers per month? I'm getting about 800 new followers.
we're gonna okay so this is thing one thing two is that for every new follower you get i want you to dm them and say are you here for free content or entertainment whatever entertainment or And then every person who says they want help is a lead. So right now, if you think about that, you got 800 new leads a month that you can work. Realistically, you close 5% of those. I mean, it's 40 more sales a month at 6K. There's 240. That's just from not including your existing.
which we're now going to redirect everything to the most efficient monetization model. What stops you from doing this? Nothing. well well shit i think this will make you a lot and i think this will save your business and i think this will also make you very rich so we can help more people yeah because You can't help people if you're broke. The thing is, is that the education, I think long term, long, long term.
you might end up just giving it away for free because people are coming from that group as well, I'm assuming, and then they buy your services. And that's why I'm not trying to attack this because this is long-term lead nurture for you. So where is this hosted? Kajabi. Kajabi. Well, there's your first mistake. I knew it. No, but if you were to do it on school, there's a couple benefits. The biggest one is that we have more active users than any other group.
and community platforms. So like you'll probably just get people coming into your community. but you can also every single person who gets into the group you can offer a free onboarding call as a part as a benefit of being in the community and then you can use those as setting calls to either triage them to services or just Right, like instead of coming from YouTube, they would come from the school and then... Think about it like this. This is actually a really good video.
So your old way, let's do this in red because Michael loves colors. So old way was this. You had one source of eyeballs, right? And you were splitting it. between three different places. The new way is you now have three different sources of eyeballs and you're forcing all of them through the most efficient...
Because you've got your YouTube, you've got your Instagram, and then you've got your group. And all three of those are pushing to the one thing that we know makes you the most money that also... and we're pricing it in a way that actually makes you money. And the question would be, so we would create from the DM or the WhatsApp, we would create a calendar link. They'll go there. They'll get the initial consultation for free.
Let's be clear, it's not a consultation. It's a sales call. Yeah, it's a sales call. Then from there, once they schedule the call, they go to a VSL. to prepare them yes yeah before the call before the call yeah to prepare them uh and their expectations and everything then on the sales call we'll identify uh whether we can sell them our services or if not are the results, right? The outcome. That's our core offer.
And that outcome is based on your specific need and our ability to fulfill that. But we're not saying when people are coming to us because we're lawyers in this specific need. we don't have to talk about specific...
Outcomes. No, not like you getting signed with a record label. No, no. We're going to do the work to prepare you for that. You're still going to have to do that on your own. And then when that deal comes, we ask for 5%. And the reason we do that is because it makes it affordable for you at 5,800. If we didn't charge the percentage and if you're like, oh, I don't want to pay that percentage, then you can pay us $25,000.
So we'll do 25,000 without the percentage or we'll do 5,800 with the percentage. Got it. Got it. And then. Do you think that that also gives you a very nice price anchor? Yeah, it makes it makes sense because the percentage right now. The last two deals, the average has been like 40 something K. Okay. And the lead magnet.
would be the sales call? Yeah, I want to just do this as the easiest, like, what is the easiest thing that I can do to immediately fix this business and make it profitable? If we wanted to add something else, we could, but I just don't. Okay. We're going from spraying the traffic all over place into places that lose money to pointing three different places to the one place that makes money and doing more of what already works.
And we're just going to add a little bit of qualification at a little VSL, fix the pricing. And then we're also going to route all the new followers that come there too. So you're going to have a, you will likely have a lot of opportunity. so you'll likely be taking five you know eight ten twelve sales calls a day okay
It's great. And I have three people that can actually do that with me. So if everyone has their own calendar link, as you explain in your book, then okay. I have a book. I'm the best-selling author in Spanish in Disney.
Where do you see that fitting in? Maybe that's the lead magnet, like giving it out for free like you do? Because they usually become super fans. Yeah, of course, yeah. Or is that just another... so there's a couple so there's i'd say like right off the top of my head there's two places that we could like if you wanted to use it now i would say that you could give to people who are unqualified
if you don't think you could like if you look at somebody's profile and you don't think they're they look like qualified, you could say, hey, it doesn't look like you're ready for our level of services. But because I want to invest in the relationship long term, here's a copy of my book. I think that would be a very elegant way to not overly complexify what already will work. Long term, we could start using it as a way that we would drive traffic in the future.
and then you can have a call team call the people who bought the book and then see if they're you know they want more help and then you could basically bring it would just we all we would do is we add another circle but right now you have three more than sufficient traffic sources that you were just wildly under monetized And we just need to fix that. Okay. And the last question would be... on the software side because the product roadmap is almost
finish entirely with all of the features that the companies are looking for. Yeah. If I'm not investing any energies on that, I want to know. I'll believe that when I see it. Okay. So if I'm not. Suppose I'm not spending energy. In a world that doesn't exist, yes. Yeah, suppose that in fantasy land. Is there a way that we can create like a sunset period?
where we would say, okay, I'm going to give the team X amount of time to roll out all of the features that these companies that are saying, I want to use it, I'm going to pay for it. You know, $15,000, $25,000 per year for the software. Is there a way to create that? mientras nos enfocamos en esto? En el principio, dije, ¿qué quieres? Entonces, tuvimos que resolver esto hacer dinero, porque vas a salir de dinero. Y así tenemos que resolverlo.
The thing that makes me hesitate with the software is the amount of work and the amount of expertise it takes to make software really work. is really high. And so I would be more inclined to say like, if you have some of these big companies, you might just give them.
or have them just say like you're like hey instead of 25 000 a year if you just pay me 100 grand or pay me 200 grand i'll just give you the whole thing and that's basically you getting it at cost and saving two years and then you can focus on this got it that's of course if you want to make
Of course. No, no, no. I understand. I just want to have like the different scenarios. Yeah. I mean, the alternative scenario is that you burn the education, you burn the services to the ground, you go all in on the software and you need to be able to fund that loss for a while. If that doesn't seem like it's more fantasy than reality, then you learned a ton of lessons.
which is fine. Everybody just gets better from learning. And you build a really good business, which I think you have all the makings. You literally have everything in place. They were just organized. that's the good news it's like we don't have to build anything we just have to take what we already had redirect it through a better monetization vehicle and that's it And so this is the first step.
We add traffic here as the second step, and then we'll add the book as the third step later. But for now, you just need to step one and step two. We have enough leads to probably fill up your calendar plus one other person, maybe two.
and if you have three people selling full-time and you have a six thousand dollar thing you could be at eighteen thousand dollars a day thirty thousand dollars a day fifty thousand dollars a day and the next problem that's going to hit you is that you're not going to have the team to actually deliver on this stuff which will cross But that's what this is going to do. This is going to break the business.
but you'll be making money. And then we'll take that money that we're making and then we'll solve the thing that's broken, which is that we're going to hire more abogados. So we're getting, yeah. You're doing it right. So I'm giving you a little Puerto Rican Spanish there. So our constraint right now on your framework, on the scaling workshop, is demand. Because we're not only... starting and stopping, but also we're not directing them through the proper channel.
and you were mispriced so you so i have uh my little my little moniker for the six big mistakes that small business owners make so let's make those in red and i think you're making almost all which is great. The good thing is it's only up from here. Yeah. So you were selling to too many different avatars. So that's number one. Focus, which is that you had more than one business. So you were hitting that one. You're hitting this one.
You weren't, so over expansion, which I will not say that you were wrong because we put it under focus. I'll give you a neutral on that one. Put it there to be aware. Uh-huh. Then we have compensation. So it's, are you overpaying your people? Which right now, I don't get that impression. Under price.
which you were, or mispriced. So you had that one. And then this one is single product. So that's when somebody has a front end and a back end, which I'll say that you had kind of like a half issue. We had the $250. service fee but we didn't have that kind of percentage win rate yet and it wasn't part of a standard offer so i'll say that you had like a hat a little x a little mini x okay But the good news is that these are the mistakes that most small business owners make.
and it's normal and it's okay and that's what we're fixing it and the next phase to, to have a timeline or at least to be aware of our next phase would be do this until we get to a million per month. Is that your, I don't know if you get to a million a month from. You will certainly make a lot more than you are now. And the next thing that's going to break is you're going to run it.
So the next issue you're going to run into a supply constraint. I actually think you have probably more demand. Like you will not be able to sell through the demand that you already have without expanding.
but if we completely utilize your existing supply of you know work that you could do at the appropriate price yeah it's just becoming a law firm you know a bigger law firm yeah and a specialized law firm which is good so you have that niche down you have a very specific niche and there's nice thing is that there's a lot of people who want this service
And the price point that we're charging is an appropriate price for somebody who's, you know, wanting to make a bet on themselves in their career. You have to make an investment just like you do. They have to make an investment too. And that number is that, the $5,000, is that for any type of outcome? No. So, I mean, you'll know this better than I do, but I just want to make sure that, you know, uh, I want to, I want to make sure that I'm running at at least 80% gross margins.
minimum so your actual cost so your actual cost on this should be let's see it should be less than call it like 1200 bucks or i'll say 1100 so if you're less than 1100 in terms of total cost To deliver that. To deliver that, then you can, then you turn. And so I'm guessing your man hours are going to cost you less. I mean, I don't know what you pay your lawyers, but let's say it's a hundred dollars an hour. If it's less than 11 hours to do it, then you're going to go. And if they do it in five.
Okay. So if I've had the cost, for example, a lawyer cost me X amount per month. Now I know that I need to be making five times more. Five, 10. Okay. And that may sound crazy to anybody who's listening to this who doesn't have a business, but let me show you a visual. so good this is great people say that but let's imagine we have a hundred dollars of revenue all right
If you have a 20% gross, sorry, 20% cost, but 80% gross margin business, then it's like, cool. So we already have $20 gone. So we have $80. But we're still going to have marketing that we got to spend. We're going to still have admin costs, you know, people who are scheduling and all that stuff. We have sales that we're going to have to pay on top of that.
that's going to be the majority for this business because the labor is going to be here right in terms of your cost of goods and so maybe all of these things cost you know 60%, right? So then we still have a 20% margin in the business. But that sounds greedy when you're like, oh my God, there's 80. It's like, yeah, but we got to do all the other costs out of 80.
And then whatever's left is our profit. Now, hopefully you can run this thing at 30, right? And then you have a 50% margin here, which would be wonderful. And then we smile. got it so all in all we went from sad face to smiley face did it great i was aware that Services was the play when we focus on services this year and we're already making way more money. But that was. You already forex the business just by focusing on that one thing. And that's with still having.
You absolutely can be at multiple millions a year. No question. Given the fact that you have a 90,000 YouTube following, you have a 23,000 person Instagram. You have a community of people who love you and are raving fans.
You have all of the foundation. So the good news is that all the work that you spent doing over the last however many years was not wasted. You just didn't monetize it well. And the good news is you can't do it now. So no big deal. What's the role of, for example, now that we're getting invitations? to go and speak to other countries. What do you think about that from the focus side? Is that something for distribution?
Because if no other lawyers are doing that, no other lawyers are publishing their books, is that something that we can use to differentiate from other, particularly in service-based businesses? And the reason for that is that it's a it's for sure a long term investment to speak on stages and things like that. The thing is, is that you're currently not demand constrained.
So you speaking on stages will just generate more demand that you can't handle. Let's play it out the other way. If you speak on stages and you take your eye off the ball on the business. you lose if you focus on the business and you continue to grow the firm So that is why maybe the counter argument would be...
If you want us to go to the stage, you have to pay us an amount that is worth it. If you know that you generate three sales a day at $6,000 when you're there and it takes you two days, then your speaking fee is... It's at $36,000 plus travel. Exactly. You already have the number because you have it on a day-to-day basis. Yeah, and also to be fair, the opportunity cost isn't just what money you would have made, but also the focus and the distraction that it takes away.
So there's hard costs and soft costs. The hard cost is you really just won't make these six sales. The soft cost is what else would you have done in between and then not had to deal with any of this hassle? Perfect. Will you do this? Yes. All right. Real quick, guys, I have a special, special gift for you for being loyal listeners of the podcast. Layla and I spent probably an entire quarter putting together...
scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business. So you've got marketing, you've got sales, you've got product, you've got customer success, you've got IT, you've got recruiting, you've got HR, you've got finance.
We show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30-ish pages for each of the stages. Once you answer the questions, it will tell you exactly where you're at.
and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com forward slash roadmap, R-O-A-D map.