How To Scale Your Business

Summary

The speaker emphasizes the importance of purposeful scaling in business, cautioning against the misconception that bigger always equates to better. They advocate for a strategic approach, focusing on profit margins and scalable offers like digital products or software. The script highlights the necessity of a consistent lead flow and a robust team of commission-based closers to effectively convert high-value sales. The key takeaway is that scaling should be driven by a clear vision and a well-executed strategy, rather than mere ambition for growth.

Takeaways

• 🤔 Entrepreneurs should first ask themselves why they want to scale their business and if it's truly necessary.
• 💡 Scaling should be driven by the goal of increasing profit, improving infrastructure, or better serving customers, not just for the sake of scaling.
• 📊 A business must have enough margin to scale; simply increasing revenue without increasing profit is not effective.
• 🛍️ Diversifying product offerings and focusing on high-ticket items can significantly improve the ability to scale by increasing the lifetime value of a customer.
• 💰 To scale effectively, businesses should be able to outspend competitors in acquiring customers by having a higher lifetime value for each customer.
• 📞 High-ticket sales often require skilled closers to convert leads into sales, which cannot typically be done solely through online means.
• 👥 Having a robust team of closers in place before scaling marketing efforts is crucial to handling increased lead flow without delays.
• ⚙️ Scalable fulfillment, such as digital products or software, allows for easier scaling compared to labor-intensive or custom-made products.
• 🏅 Good salespeople are typically not found through traditional hiring methods and should be commission-based to stay motivated.
• 🤝 Building a team of multiple closers ensures business stability and prevents dependency on a single top performer.

Q & A

Why should an entrepreneur consider their reasons for wanting to scale their business?

An entrepreneur should consider their reasons for scaling because bigger isn't always better; better is better. Scaling should align with the entrepreneur's goals and not just be for the sake of making more money.

What is the potential downside of scaling a business just for the sake of increasing revenue?

Scaling a business just for revenue can lead to lower net profits, as increased costs may not be offset by the additional revenue, resulting in a poor return on investment.

What is the difference between a lifestyle entrepreneur and someone who wants to scale their business?

A lifestyle entrepreneur aims for a certain income level that allows them to maintain a desired lifestyle, such as the ability to travel, while someone who wants to scale their business may have larger financial or growth-oriented goals.

Why is it important to have a clear purpose for scaling a business?

A clear purpose for scaling, such as investing in better infrastructure or technology, helps to ensure that the scaling process is strategic and contributes to the overall success and sustainability of the business.

What is the significance of profit margin in the context of scaling a business?

Profit margin is crucial for scaling because it determines how much a business can invest in acquiring new customers without losing money, which is essential for growth.

How does having a product line impact the ability to scale a business?

Having a product line allows a business to sell multiple products to the same customer, increasing the lifetime value of a customer and providing more budget for acquiring new customers, which facilitates scaling.

What is the role of closers in scaling a high-ticket business?

Closers are essential in high-ticket sales as they can effectively close deals over the phone, which is often necessary for high-value transactions. Having a team of closers ensures that leads are converted into sales efficiently.

Why is it a mistake to scale marketing efforts before securing enough closers?

Scaling marketing efforts before having enough closers can lead to a bottleneck where leads are not being followed up on, causing a loss of potential sales and a waste of marketing budget.

How does the lifetime value of a customer influence the amount a business can spend on acquiring a new customer?

The lifetime value of a customer determines how much a business can afford to spend on acquiring a new customer. A higher lifetime value allows for a larger acquisition budget, providing a competitive edge in marketing.

What are some challenges entrepreneurs face when trying to find good sales closers?

Challenges include finding salespeople who are motivated and effective without providing a base salary that might reduce their hunger for sales, and ensuring they align with the company's sales philosophy and do not damage customer relationships.

How can an entrepreneur ensure that their sales closers are a good fit for their business?

Entrepreneurs can ensure a good fit by role-playing sales scenarios, assessing the closer's approach, philosophy, and ability to handle objections, and by ensuring their sales techniques align with the company's values and customer experience goals.

Outlines

00:00

📈 Why Scale a Business?

Before discussing business scaling, entrepreneurs should ask why they want to scale. Scaling for more profit isn't always necessary. Some businesses make millions but have minimal net profit. The goal should be better operations, not just bigger. Scaling should align with an entrepreneur's goals, whether it's for lifestyle or infrastructure improvement. Entrepreneurs need to ensure there's enough profit margin to support scaling.

05:02

💰 Importance of Margin in Scaling

Scaling requires sufficient profit margins. Businesses with low net profit, despite high revenue, struggle to scale effectively. Entrepreneurs should focus on products with high-profit margins, which allow more investment in customer acquisition and infrastructure. Offering a product line or high-ticket items can increase customer lifetime value, enabling businesses to spend more on acquiring each customer.

10:05

📞 The Role of Closers in Scaling

Effective scaling necessitates having enough sales closers to handle increased lead flow. High-ticket sales often require one-on-one phone interactions. Entrepreneurs should have closers ready before ramping up marketing efforts to avoid delays. Finding good salespeople can be challenging; they should be commission-based and highly motivated. Ensuring closers align with the company's values and sales philosophy is crucial to maintain customer relationships.

15:06

🔄 Scalable Offers and Consistent Lead Flow

To scale successfully, businesses need a scalable offer, consistent lead flow, and effective closers. A scalable offer can be delivered to many customers without significant extra effort. Consistent lead generation can come from various sources like social media or PPC ads. Adding more closers increases revenue, allowing reinvestment into lead generation and further scaling. The interplay of these elements builds a substantial business.

Keywords

💡Scaling a Business

Scaling a business refers to the process of expanding a company's operations to increase revenue and market reach. In the video, the speaker emphasizes the importance of understanding the reasons behind scaling, such as improving infrastructure, reaching more customers, and investing in better technology, rather than merely aiming for more money.

💡Profit Margin

Profit margin is the amount by which revenue from sales exceeds costs in a business. The speaker explains that having a sufficient profit margin is crucial for scaling a business, as it provides the necessary capital to invest in growth opportunities, such as hiring more employees or purchasing new equipment.

💡High-Ticket Sales

High-ticket sales refer to selling expensive products or services, often requiring a more personalized sales approach. The speaker highlights the benefits of high-ticket sales, including higher customer lifetime value and the ability to spend more on customer acquisition compared to businesses with lower-priced products.

💡Customer Acquisition Cost

Customer acquisition cost is the expense associated with acquiring a new customer. In the video, the speaker discusses how businesses with higher profit margins can afford to spend more on acquiring customers, giving them a competitive edge in marketing and reaching more potential customers.

💡Lifetime Value of a Customer

Lifetime value of a customer (LTV) is the total revenue a business can expect from a single customer over their entire relationship. The speaker uses this concept to illustrate how businesses with higher LTV can invest more in customer acquisition and retention, leading to sustainable growth and scalability.

💡Sales Closers

Sales closers are individuals responsible for finalizing sales, especially in high-ticket transactions. The video emphasizes the importance of having skilled closers who can effectively handle customer objections and close deals, which is crucial for scaling a business quickly and efficiently.

💡Fulfillment

Fulfillment in business refers to the process of delivering a product or service to the customer. The speaker notes that efficient fulfillment processes are essential for scaling, as delays or inefficiencies can hinder growth and damage customer satisfaction.

💡Consistent Lead Flow

Consistent lead flow is the steady generation of potential customers for a business. The speaker stresses that having a reliable source of leads is vital for scaling, as it ensures a continuous pipeline of prospects for sales teams to convert into customers.

💡Commission-Based Sales

Commission-based sales is a compensation structure where salespeople earn a percentage of the sales they close. The video advocates for this model, arguing that it incentivizes sales closers to perform better and aligns their goals with the company's revenue objectives.

💡Lead Generation Channels

Lead generation channels are the various platforms and methods used to attract potential customers. The speaker mentions several channels, such as Facebook, Instagram, and Google ads, and explains how businesses need to utilize multiple channels to effectively scale and reach a broader audience.

Highlights

The importance of understanding the 'why' behind scaling a business.

The misconception that scaling always equates to more profit.

The concept of a lifestyle business and its contrast with scaling for profit.

The significance of having a clear purpose for scaling beyond just making more money.

The necessity of margin for successful scaling.

The limitations of a single-product business model in scaling.

The advantages of having a high-ticket product line for scaling.

The impact of customer lifetime value on marketing and scaling strategies.

The importance of outspending competitors in marketing to achieve scale.

The challenge of finding and retaining skilled closers for high-ticket sales.

The strategy of having multiple closers to mitigate the risk of losing key salespeople.

The difference between scalable and non-scalable products in terms of fulfillment.

The importance of aligning closers' sales philosophy with the company's values.

The role of the 'king of high-ticket sales' and the significance of having access to closers.

The three essential components for scaling a business: a scalable offer, consistent lead flow, and effective closers.

Transcripts

- I think before we talk about scaling a business,

the first question that any entrepreneur

should ask themselves,

is why do they want to scale?

'Cause sometimes they think,

"If I wanna make more money, I need to scale,"

Or may or may not be the case.

'Cause I do know companies,

they make tens of millions of dollars.

A friend of mine, who has a company,

that makes over $50 million a year,

yet their net is less than like 100K a year.

So, bigger is not always better, better is better.

So, the point of scale, of course, is to make more profit,

but not every business is meant to scale.

And it depends on the entrepreneur's goal, to see his goal.

Sometimes, as an entrepreneur, maybe your goal

is just to have a lifestyle business.

Have a laptop lifestyle.

Hey you know what, I just want to make

a couple hundred K a year,

I wanna be able to travel,

I want to be a lifestyle entrepreneur,

then, don't scale if that's all you want,

So, if it is what you want,

then you need to consider,

I'm scaling for what purpose?

Why am I doing it?

If you just do it for the sake of, I wanna make more money,

I don't think that's a good enough reason to scale.

If you want to scale because, you know what,

I need to have more capital

so I can have better infrastructure.

I can reach more people, I could serve more people.

Or, I need to scale,

in order to invest in better technology.

So, to turn whatever I do, take it to the next step,

I think those are all good reasons to scale.

But, just scaling for the sake of scaling,

I think that's a wrong focus, that's a mistake.

So in order to scale,

I think the first thing they need to look for,

is there needs to be margin in order to scale.

So the example I gave, if the business is making 50 million,

that's a lot of money,

and making a hundred K net, a year,

so, if you double that to 100 million, great!

Now they're making 200 K a year.

That is not so good.

And, in order to get to the next level,

how many more employees they need to hire?

Maybe, they need a new office,

they need more equipment, or whatever it is.

So, the margin has to be there in order to scale.

Now, if, let's say, you are selling a $20 product,

'cause most businesses they only have,

they're what I call one-product pony,

they've only got one product.

Let's say, pretend you have a product

you're selling it for $30, okay?

And your cost is, let's say, five bucks.

You're making $25 profit per unit.

Well, to scale, let's say, pretend, an online business,

or some kind of product you sell through eCommerce,

the most that you could invest to acquire a customer is $25,

because that's your profit margin.

So, if you think about each sale that you make,

you can spend no more than $25 to acquire a customer,

because $5 is your cost.

Then, you could only go to so many channels

or utilize so many ways to acquire that particular customer.

Versus, on the other hand, and especially

if you've only got one product,

meaning they buy it once

and they don't have to buy again.

That means you have to constantly market

and get new people all the time.

Now, let's take a look at a different scenario.

Let's say you've got not one product,

but you've got a product line,

or you've got what I call different back end products,

that you sell to the same customer.

And let's say, instead of selling low-ticket,

you're selling high-ticket.

And that's why I like high-ticket, right?

You're selling a $2,000 product

and then you sell them another $5,000 product,

and then sell them another $10,000 product or program.

So, in that case, let's say, on average, your annual value

of a customer is, instead of being $25 one time,

but it's $10,000.

So, you have a percentage

of the customers that will buy the $2,000 program,

they buy the $5,000 program, they buy $10,000 product,

hypothetically, let's say, that's the case.

Now, it's a very different game.

Instead of you can only spend $25 to acquire a customer,

now I can spend $500, $1,000, $2,000, $5,000,

depends on the lifetime value of the customer.

Maybe, if my lifetime value of a customer,

meaning they'll stay with me,

two, three, five, six, ten years, hypothetically,

that first year, I could spend up to, let's say,

even five, six, eight, $10,000.

That gives me an edge over someone who can only spend $25.

See, when it comes to marketing,

'cause most entrepreneurs, business owners,

when it comes to marketing they want to go on the cheap.

They want it, how can I spend the least amount of money

to acquire the customer.

That kind of thinking, that kind of mentality,

you will never be able to scale.

In order to scale, the question to ask is not,

how can I spend the least.

The question to ask,

is how can I outspend everybody else?

How can I outspend my competitors?

If my competitors can only spend $200 to acquire a customer,

and I can spend $2,000, I could go to so many more channels,

I could do so many more things,

I can test so many different traffic sources

in order to scale.

That gives me way more options

and that's how we can scale fast.

I can use this channel, I can use this channel,

I can use this platform, I can do offline.

When my competitor can not afford to go offline,

do any kind offline marketing, I could,

'cause the lifetime value of my customer, is high.

Assuming that you've got your offers,

you've got your product line and assuming,

let's say, you're selling high-ticket.

And, you've got your marketing down

and you've got your traffic sources.

Maybe you're running ads on Facebook,

maybe you're running ads on Instagram,

maybe you are running ad on Google.

Whatever how many different ways

you're bringing in the leads,

what happens is, let's say you're bringing a lot of leads,

you're next bottle neck would be closers.

Where do you find enough closers to be on the phone?

Because when it comes to high-ticket,

anything that costs, let's say,

more than two, three, four, five thousand dollars,

it's very difficult to sell that

just on a webpage or through a video.

You need someone to get on the phone one-on-one,

and close the particular prospect.

In order to do that, you need people.

So, where do you find those closers?

So, in my case, within what we do at our organization,

is we have now probably close to 100 closers,

closing our own program and product.

That's how we are able to scale quick.

Because we have the power.

The people, the closers, to be able to close people

on the phone and ticket much, much, faster,

and much, much, further.

And, most entrepreneurs, it's when they do the marketing

and they're scaling the marketing,

then they're like, oh, my God, shit, I need some closers!

And they try to bring on one person,

and it doesn't quite work.

And then, try to bring another person,

they're not a salespeople, it doesn't quite work.

They might try to run an ad, and it doesn't quite work.

And then, they finally find someone that works,

but then, that person, you filled his

or her appointment books so fast,

and now, they gotta now spend other months

to find another person to scale.

Versus, already have access to so many closers.

So, you need closers before you even scale,

so that when you are in the position

to ramp up your marketing, you are good to go.

Versus, you try to ramp up your marketing,

you got to slow it down,

because you don't have enough people

to handle the leads.

And every single time you do that delay,

that time, that's what's preventing you

from scaling to the next level.

So, let's say, you have a Facebook ad that's working,

that's great.

A webinar that's working, that's producing leads.

But, because you don't have enough people

to follow up on those leads,

you have to lower the budget,

or you have to pause the ad.

That's the worst, right,

when you've got something that's working.

And then now, you gotta go find a person.

It's like you have so many leads coming in,

you can't handle their business.

So, you got to look at two aspects, one is the lead flow,

the second is your fulfillment.

So in order to scale, if the fulfillment aspect,

where if you are selling something

that takes a long time to make,

then it's gonna be, let's say, a sofa or something, right?

It's gonna be difficult to scale,

because, let's say, if it's handmade,

whatever, it's just difficult.

Versus, if you're selling a software.

Doesn't matter if I sell one,

doesn't matter if I sell 500,

doesn't matter if I sell 50,000,

I can scale just like that.

Yes, I need more customer support,

I need more infrastructure, correct,

but the product itself, it's basically infinite.

That aspect of fulfillment it's easier to scale.

So if you look at it that way, lead flow, closers,

and then your fulfillment.

Assuming you've got the fulfillment done and that's okay,

and you can serve a lot of people doing the same thing,

then it's just in terms of traffic source,

and then in terms of closers.

So, you wanna find closers when you don't need closers.

You don't need to find closers

when you need closers like yesterday, that's not good.

And the biggest problem is this,

you are not going to find the salespeople that you want,

the traditional way, because I've tried it.

If you want to find salespeople,

maybe you go to any of these sites,

any of these, Craigslist or whatever,

you're running an ad, hey I'm looking for salespeople.

The problem is, any good salespeople

that are looking for a job, they're not good salespeople.

If they're good salespeople,

they won't be looking for a job.

'Cause any good salespeople,

they're already making good money

and they're making good commissions,

they're not looking for jobs, that's number one.

Number two, if you hire a salesperson,

very often, and I tried this before myself,

that I pay them some kind of a base,

and then I'll pay them some kind of bonus,

they can't close.

Because any good salespeople, is like a hunter,

you eat what you kill.

Yet, if you give them a base, you give them all of that,

they are not hungry.

And most salespeople they want the safe.

Although they're are supposed to be salespeople,

they are supposed to be hunters,

but they want the security and they can't close.

They become a typical,

like a salaried person within a company

and then they are not motivated to bring in sales.

So, I believe a good closer needs to be commission based.

The more they close, the more sales they make,

the more money they make, that's how it should be.

The sky's the limit.

They can make as much money as they want.

If they are able to sell higher price point,

high-ticket, awesome.

So, you're not gonna find those salespeople

in the traditional way, you just won't.

And another thing is, if, let's say,

you do find that superstar,

which has also happened to me.

You do find that superstar,

and that salesperson is producing a lot of sales.

That salesperson becomes your rainmaker.

Let's say your, whatever,

you are doing a million a year

and that salesperson brings in 400K

worth of revenue for the company.

Well, what happens is, the salesperson would then,

either become greedy and say I want more,

or they would jump ship.

And then, they would go work for someone,

your competitor maybe,

that would pay them a higher commission rate,

and that happens too.

So, you always want to have more than one closer,

even though you might just need one to scale.

But, you kind of want to have multiple,

so that if one leaves, you're okay, you're fine.

We have 100 closers working with us.

It doesn't really matter if one doesn't work,

we have 99 to replace that particular person.

There are so many sales trainers out there,

and there are so many experts teaching sales,

and most of them are very, very good.

I just happen to specialize in one area of sales,

Which is high-ticket closing, high-ticket sales.

If you want to learn cold calling,

I'm not the guy to learn from.

There are plenty of people who are better

at cold calling than I do.

I teach a little bit of cold calling to my students

but that's not what I specialize in.

I specialty in selling premium products and services

to players with money.

So, that's what I do.

And when it comes to my methodology,

so it works very well in my area, that's what I do.

And when you find closers, how do you know they are good?

Truth is you won't know until you give them an opportunity.

However, if you know that they have gone through

some type of training,

or you can role play with them and see,

hey you know what, role play with me.

I have this kind of product, sell to me.

Sell me my program.

I wanna see how you talk to my prospect.

Give them different objections

and see how they handle those objections,

how they ask questions.

Do they sound like a typical salesperson?

'Cause one of the things you have to consider

is it's not just that they're closing sales

and makings sales for you, that's one thing.

However, another thing you must pay very close attention,

is for those sales that they don't make.

Are they pissing off the customers?

Are they ruining your reputation?

You don't want your best customer,

especially if they're selling high-ticket,

get off the phone with one of your closers

and they feel like, "Oh my God,

"I can't believe I just talked

"to this slimy salesperson.

"Try to twist my arm, force me to buy this and that."

Suddenly, now the salesperson is ruining your reputation

and relationship with your customers without you knowing it.

So, whoever the closer that's closing for you,

you need to have that talk with them.

Okay, what is your philosophy, are you about?

You know what, I want you to get as much money as you could.

Close as many people as you could, I don't care,

that kind of "Wolf of Wall Street" kind of angle, right?

Just get the money!

Or, are you the kind of CEO entrepreneur

and say hey,

I want you to offer my service,

my solution to the customer,

If only it's a good fit.

If it's not a good fit, it's okay.

You don't need to force them.

I don't want them to get off the phone feeling

that they need a shower.

I don't want them to get off the phone

and never wanna hear from us again.

Now you just, you burned that relationship.

So, what is your personal philosophy?

That is very key.

So, in terms of what I do

when people call me

the king of high-ticket sales.

Not necessarily because I'm the greatest closer

that ever walk on this planet earth, no.

More it's a king without the kingdom.

And what's a kingdom without people?

So I'm called the king of high-ticket sales,

not because just my skill,

it's because I have access to high-ticket closers.

More access than anyone else in the world.

And more influence to high-ticket closers,

than anyone else in the world.

That's what makes the kingdom

that's what makes the king.

That's the difference.

If you have got a funnel,

you've got a quality product and service,

and that's high-ticket and if you're looking for closers,

I have access to closers.

So, you can book a time with one of my leaders

who manages all my closers,

to see if it's a good fit.

And, to see if I have closers that

would understand your offer,

maybe have a little bit of experience

in terms of closing in your industry,

I'm more than happy to make that recommendation.

There's no charge, 'cause that's how I work,

that's how my closers work.

They don't get paid until they close a sale.

So, I'm more than happy to make that introduction.

And that's what we do because

I believe when you're working with a client,

when you're working with a company, a CEO, an influencer,

the relationship should be,

the more successful that you are, the more successful

that the closers are.

That's what I wanna do, I wanna provide opportunities.

Earning opportunities, good potential programs

for my closers to close.

That's what we do.

That's what drives me.

So, if you've got something like that,

I'm more than happy to set up the time

to talk to one of my leaders

and see how we can help.

Another skill, you think of a triangle.

You need three things, three things only.

You need a scalable offer, which is an offer you can deliver

to massive amounts of people without more infrastructure.

A scalable offer, maybe it's a software,

maybe it's a digital product.

It's something that, it doesn't matter

if you sell to one person or 10,000 people,

your work is essentially the same, in the scalable offer.

And then, you need a consistent lead flow.

I don't care how you get it,

it could be through social media,

it could be Facebook,

Youtube, Instagram, however you want to do it.

Pay-per-click or even infomercial, it doesn't matter.

But, consistent lead flow,

and then you need closers that can close.

You have those three things, you can scale.

You need all those three things,

but you need to have the offer dialed in,

you need to have your traffic source,

your lead flow dialed in.

Then, every single time you add a new closer,

it adds another 100, 200, 300, 400, thousand dollars

to your revenue.

You just keep adding that.

And you take a lot of profit,

re-invest back to that lead source,

so you scale and so you get more leads.

And then, you hire more closers, you get more leads,

you hire more closers.

Before you know it,

you've got a pretty decent size business.