How I made $1.4 mil a year but still Broke, part 2, - Growth , Betrayal and What now? FilmNeverDie

Summary

In this video, the speaker shares their journey of growing a business to $1.4 million, despite financial struggles. They recount the establishment of a photography hub and the expansion into film development, funded by a Kickstarter campaign. The narrative takes a turn with the betrayal by staff, leading to a discussion on the importance of trust and gut feelings in leadership. The speaker emphasizes the value of reinvesting in the business, the abundance mindset, and the significance of creating innovative products like the CP800 film processor. They conclude with a focus on providing value and continuous improvement, rather than engaging in price wars.

Takeaways

• 📈 The business started in a shared space at 640 B Street, Eliza TC building, and later expanded to level one of the same building.
• 💼 The opportunity to expand came with the acquisition of film developing machines, funded through a Kickstarter campaign.
• 🏢 They were fortunate to have a landlord who only charged minimum rent, allowing for business growth without high overheads.
• 🔧 The business faced betrayal from staff, including a wedding photographer and a groomsman, which was a significant setback.
• 🌱 The importance of trust in leadership was emphasized, along with the advice to trust one's gut feeling when it comes to personnel decisions.
• 💡 The speaker learned to invest aggressively back into the business, citing Microsoft's early reluctance to invest in cloud computing as a cautionary tale.
• 🤝 The concept of an 'abundance mindset' was introduced, suggesting that there's enough success to go around and that helping others can benefit everyone.
• 📸 The business is focused on providing high-quality film cameras and services, including a new camera line named 'Nana Camera'.
• 💼 The company has developed its own film processing machines, the CP800, and made the design open source to encourage community involvement.
• 🚀 The speaker emphasized the importance of innovation and not just focusing on being the cheapest, but on adding value and improving the customer experience.

Q & A

What was the initial business opportunity that the speaker was invited to participate in?

The speaker was invited by Michael and Susan Silva to 640 B Street, Eliza TC building, to have their camera café and shop.

What additional business did the speaker decide to expand into and why?

The speaker decided to expand into film developing by offering some film developing machines, as they thought it would be a good complementary business to their current camera business.

How did the speaker raise funds for the film developing machines?

The speaker raised funds through a Kickstarter campaign to buy the machines for 640 B Street, level one, all Australia Post building.

What was the advantage of the rental agreement at 640 Buck Street for the speaker's business?

The advantage was that the speaker only paid minimum rent without outgoings, and the contract was month by month, which allowed flexibility in case they needed to move due to building permits for a skyscraper.

What was the first heartbreaking moment the speaker experienced in their business?

The first heartbreaking moment was when some staff, including the speaker's wedding photographer and groomsman, started to betray them behind their back and build a lab behind their back.

What advice does the speaker give regarding trusting people in business?

The speaker advises to trust people but also to trust one's gut feeling. If there's a feeling that someone might not work out, it's better to cut losses and move on.

Why did the speaker invest half a million dollars into the development of the CPA 800 compact processor?

The speaker invested in the CPA 800 compact processor to continue the creation of new film processor machines and to spur the community together, even making it open source.

What is the importance of the 'abundance mindset' as mentioned by the speaker?

The 'abundance mindset' is important because it recognizes that there is more opportunity than one can think of, and it's not a zero-sum game. It encourages business leaders to unlock new markets and blaze new paths.

What is the significance of the Nana camera in the speaker's business?

The Nana camera is significant because it represents a high-quality, pure film camera that is easy to use and takes amazing photos, which is crucial for the future of film photography.

What is the speaker's approach to competition and pricing in their business?

The speaker's approach is not to get into a price war but to focus on adding value to people and providing a better experience through better processors, apps, delivery systems, and customer service.

How does the speaker encourage continuous improvement within their business?

The speaker encourages continuous improvement by challenging the team to identify one thing they can improve each week, leading to 52 improvements in a year.

Outlines

00:00

📈 Growth and Betrayal in Business Expansion

The speaker begins by welcoming viewers back to the channel and diving into part two of their series on achieving significant financial success despite facing challenges. They recount their journey of establishing a camera cafe and shop at 640 B Street, Eliza TC building, and their collaboration with Michael and Susan Silva. The partnership aimed to create a photography hub, but the speaker soon pursued an opportunity to expand by investing in film developing machines through a Kickstarter campaign. They moved to a new location within the same building, benefiting from a flexible month-to-month lease. However, they faced a heartbreaking betrayal by staff members, including a wedding photographer and a groomsman, who secretly set up a competing lab. The speaker emphasizes the importance of trust in leadership but also the need to trust one's intuition when it comes to personnel decisions. They advise cutting losses early if there's a gut feeling that someone may not be a good fit. The speaker concludes by stressing the value of focusing on one's own business growth rather than engaging in destructive competition.

05:01

💼 Investing in the Future and the Importance of Mindset

The speaker shares lessons learned from their aggressive approach to reinvesting profits back into the business, citing Microsoft's early dividend payout as a cautionary tale. They emphasize the need to continuously innovate and invest in the future, such as their decision to invest in the development of a new film processor machine, the CP 800. Despite a failed Kickstarter campaign, they remain committed to improving this machine and have made it open source to encourage community collaboration. The speaker also discusses the importance of adopting an abundance mindset, suggesting that there is plenty of opportunity for everyone and that a rising tide lifts all boats. They express a willingness to support former staff who have started their own labs, reflecting a belief in the potential for mutual growth within the industry. The speaker also introduces the Nana camera, a new product designed for ease of use and high-quality photography, and discusses the development of supporting software and platforms to enhance the film processing and delivery experience.

10:04

🚀 Prioritizing Improvement and Long-term Success

In the final paragraph, the speaker reflects on their philosophy of continuous improvement, focusing on incremental weekly progress that accumulates to significant annual growth. They stress the importance of not getting caught up in price wars and instead aim to provide value and superior customer experiences. The speaker encourages their team to identify one area of improvement each week, leading to 52 enhancements over the course of a year. They advocate for a mindset that focuses on self-improvement and innovation rather than on competing with others. The speaker concludes by reiterating their commitment to being the best in their field and to enduring in the long term, emphasizing the importance of providing exceptional service and products to their customers.

Keywords

💡Photography Hub

A Photography Hub refers to a centralized location where photography-related services and products are offered. In the video, the speaker discusses the establishment of a Photography Hub at 640 B Street, which includes a camera cafe, a shop, and a photo gallery. It serves as a focal point for photographers and enthusiasts to gather, learn, and engage with the photography community.

💡Film Developing

Film Developing is the process of transforming exposed photographic film into a viewable image. In the context of the video, the speaker mentions the opportunity to expand their business by offering film developing services, which complements their existing camera business. This service is crucial for photographers who shoot on film and need to have their images processed.

💡Kickstarter

Kickstarter is a crowdfunding platform where creators can raise funds for their projects from the public. The speaker used Kickstarter to raise money for purchasing film developing machines, demonstrating how the platform can be utilized to finance business expansions and innovations, especially in niche markets like film photography.

💡Betrayal

Betrayal, in the video, refers to the disloyal actions of staff members who were trusted but ended up working against the business's interests. The speaker recounts a heartbreaking incident where staff, including a wedding photographer and a groomsman, betrayed their trust by secretly setting up a competing lab. This keyword is central to the narrative of trust and leadership within the business.

💡Leadership

Leadership is the act of guiding a group of individuals towards achieving a common goal. The video emphasizes the importance of trust in leadership, as well as the need to trust one's intuition when it comes to personnel decisions. The speaker advises on the importance of choosing the right team members and the consequences of not doing so.

💡Reinvestment

Reinvestment is the process of plowing profits back into a business to fund growth and development. The speaker mentions reinvesting all the money earned into the next project, highlighting the commitment to the business's future and the philosophy of continuous improvement and expansion.

💡Abundance Mindset

The Abundance Mindset is a concept where one believes there are ample opportunities and resources available. The speaker encourages this mindset in business, suggesting that there is enough 'pie' for everyone and that competition can lead to collective growth, as opposed to a zero-sum game where one's gain is another's loss.

💡CPA 800 Compact Processor

The CPA 800 Compact Processor is a film processing machine that the speaker's company invested in creating. It represents an innovation in the field of film development and is a key part of the company's strategy to modernize and improve film processing services. The speaker's investment in this machine exemplifies their commitment to advancing the film photography industry.

💡Community

Community, in the video, refers to the collective group of people who share common interests, in this case, film photography. The speaker emphasizes the importance of building a community around their business, fostering a safe and welcoming space for discussions and events, which helps in creating a supportive network for the industry.

💡Nana Camera

Nana Camera is a new product mentioned in the video, named after the speaker's daughter. It represents the company's venture into manufacturing their own cameras, focusing on quality and ease of use. The camera is part of the company's strategy to provide a complete ecosystem for film photography, from equipment to processing services.

💡Value Addition

Value Addition refers to the process of enhancing the worth of a product or service. The speaker discusses the importance of adding value to their customers' experiences rather than competing on price. This approach is aimed at providing superior products, services, and experiences that justify a higher cost and build customer loyalty.

Highlights

The channel's part two series discusses the journey of making $1.4 million and the challenges faced.

The opportunity to expand the business with film developing machines was explored.

A Kickstarter campaign was initiated to raise funds for purchasing the machines.

The business was able to secure a rent-friendly location at 640 B Street, thanks to a supportive landlord.

The company experienced betrayal by staff, including a wedding photographer and groomsman, which was emotionally challenging.

The importance of trusting one's gut feeling in leadership was emphasized.

The concept of 'running your own race' and focusing on self-improvement was discussed.

The necessity of investing in the future and not just in the present was highlighted with the Microsoft story as an example.

The company's investment in a new film processor machine, the CP 800, was detailed.

The idea of an 'abundance mindset' in business was introduced, suggesting that there's more opportunity than one can imagine.

The company's philosophy of not engaging in price wars but focusing on adding value was explained.

The development of a new camera, the Nana camera, was announced, aiming to provide a high-quality, user-friendly experience.

The company's commitment to reinvesting profits into future projects was stated.

The importance of continuous improvement and focusing on one's own business rather than competitors was stressed.

The speaker concluded with a call to action for others to join in the company's mission and to focus on collective growth.

Transcripts

hi everyone welcome back to the channel

today we are doing the part two series

of how I make $1.4 million but it still

broke so we're very quickly talking

about how we grow how we will betray and

where we are today so we were invited by

Michael and suzan Silva to 640 B Street

Eliza TC building initially at level two

to actually have our camera Cafe and our

shop which is pretty cool my and runs

magnet Gallery which has which is a very

nice photo gallery and they also run uh

photonet fin art printing so with a

combination of them and us it would be a

very nice photography

Hub um but then after a while we got the

opportunity to actually expand our

business we will offer some film

developing machine and we thought oh

this is going to be a very good

complimentary business into our current

camera business and film so we did a

Kickstarter raise some money so that we

can actually buy the machine to 640 bu

St level one all Australia Post building

we are very lucky to meet some amazing

land lot where we only pay minimum rent

without goings uh which is great the

contract is month by

month uh because whenever the building

permit comes in to build a skyscraper

then we will need to move so we are very

fortunate to have good opportunity to

grow the business in 640 Buck Street you

can see some of the event we did here

and just about this period is when um we

experienced our first very heartbreaking

moment our first heartbreaking moment

where some of our staff started to

betray us behind our back and S build a

lab behind our back um one of them is my

wedding photographer and another one is

my groomsman as you can imagine how

heartbreaking that was um to be honest

this was probably

almost almost 10 years ago or 7 eight

years ago and only recently we just

recovered from this incident and started

to forgive them fully um it's very

heartbreaking um they even started

sabotage my reputation and F reputation

but I remember wise men once say that

never go wrestle with a pig because you

both get muddy and a pig lies it so

that's a very good saying where I just

run my own race look at my lane and just

keep being honest with myself and see

how I can do better one thing that very

important in leadership is trust as much

as we need to put trust in people we

also need trust our gut feeling because

sometimes you have the tingling feeling

that that one or two person might not

work out if you have that feeling and if

you're contemplating that my advice is

just to cut your losses and move on

chances are it's probably be better for

you and that person that you're

struggling to let go because it's not a

good fit as simple as that the longer

you drag it out there just be more pain

and just miss opportunity so this is

where uh one of the lesson then is just

don't pick up anyone that walk into the

door but really do your due deligent and

really know their heart obviously the

bunch of people was not the right fit

and um and I know in the future they'll

cost a lot of hawor as well so it's

actually a good thing that they were

quickly Steven K mentioned that we need

to run our own race and also ass Simon C

always ask the question start with why

which is amazing because the the reason

why we want to be in business is we see

a gap in providing film cameras as well

as a place where you come and develop

your fi so that's super important and

being a place where it's welcoming a

safe space for anyone to ask any

question no ST big question and we just

want to give the best service from

choosing the camera to the film to

developing scanning and eventually do

community event like Photo walks and

exhibition together trust is a very

important commodity also it's one of the

community as a leader we need to put in

first because often and this happens to

me very often that we'll be training and

putting the best into everyone but not

everyone will stay with you till the end

and often only a few of them do but as a

leader if you don't put that anti of

trust in them you won't grow you will

probably be a Onan operation burning out

and wondering why you can't get it off

the ground because the business is just

more than one person or two it's

actually a team of collective people

with a Shar journey and share motor and

share e talks to how to make this work

so as a leader I can run very fast but

if I'm not running with my team then

that's a

problem so you definitely be

disappointed trust me you will always

want to be the best you want to treat

them as the best friend and everything

you even pay them first and pay yourself

last we need to be smart on how we

choose the right people and just get the

right people get the right people on the

bus get the wrong people off the bus and

get the right people in the right seat

in the bus which is very important so

another lesson I learned is I've been

very aggressive in investing back into

the business one of the story that

always stuck with me was the Microsoft

story where in 2003 when they first

started to pay dividends the share price

dropped not only that but they also did

not have the vision to invest in cloud

computing and as a result for the next

10 years they were playing catchup so

whenever you have money and not

investing in the future this is where

there's a problem and in film as we rely

so much on Old developer and scanners

it's only natural that we need to start

making our own machine again so we s

about half a million dollars actually in

our CPA 800 compact processor

800 purpose to continue the creation of

new film processor machine we even made

it open source because if we don't want

to do that anymore someone can pick it

up and also we want to Spur the

community together so that we can

improve this

together so we did Kickstarter on this

but we fail uh but I'm very pleased to

announce that we are still improving

this

machine another lesson or another Moto

that always been carrying with me is a

moto or the mindset of

abundance the abundance mindset is very

important for every Business Leaders The

Pie is not as small as you think and to

be

honest if the people that betray us come

to us to say hey we want to open a new

lab I'll say no problem I'm more than

happy to support them as how I supported

some of these businesses

below the pie is always bigger than you

can chew and guess what met a rising

tide raises all boats meaning that if

there's more More film that's around

more people know about them and the

industry as a whole would become better

so please but the mindset is important

because there's way more out there than

you can think of it's not a zero sum

game the build is how we can unlock new

markets and go into places where no one

been how we can unlock new markets and

go somewhere no one has been and TR blaz

A New Path which is what we're doing

with the CP Andro and also our Nana

camera which is important because that's

as a place where we sell so many

secondhand cameras we know the only way

to make this and give Fil A much more

future is having a very good quality

pure camera that's why we have Nana

camera same name as Nana my

daughter and the idea is that you have a

metal body

aspherical lens motorized camera that is

just easy to use and take amazing

photos so with the new camera cp800 uh

the compact

processor and also the back end system

and the app we build to catalog film and

also the app we build to deliver photos

not to mention the software as a surface

platform we built to support

labs on how we can catalog film and

automate film and scan s out it's going

to be crucial for the future and if

anyone want to use our service or

platform please hit us up because we're

all about doing this

together so I just want to finish off

with the fact that we made 1.4 million

but I reinvest all the money and all in

on the next project and more to come

we have a great bunch of people working

with us and hot on my hand I want to be

the best out there in providing what we

can provide another thing I learned very

quickly is don't get into priz game this

is not a place where I want to be the

cheapest and just go on prize for to see

who can race to the bottom I want to be

a business where we can add value to

people and give people the ability to

enjoy a better experience whereas to

have better processor a better app

delivering system or just a better

customer service I always tell my team

what's the one thing that we can improve

this week if we can improve one thing in

a week 52 weeks down the road we improve

52 things which is one year so look at

what we need to do and how we need to uh

improve instead of going going around

and see what our competitors doing is

through

that's what I challenge everyone to do

is just to see how we can improve

ourselves run our own race don't really

need to uh comments or critic what other

people doing if people want to do it

think cheaper they have their way but I

just want to be in here to be the best

and to be here to last the longest thank

you m come