The 4 SECRETS To Making Money In Your Sleep! | The Money Making Expert
Summary
TLDRThe transcript covers the journey of an entrepreneur taking their business from an idea to a large exit. It outlines the key stages - developing the concept, building an audience, constructing an offer, generating sales. It then discusses building a team, digitizing operations, raising revenue per employee, and transforming the culture to support rapid scaling from 12 to 30+ people. It emphasizes bringing in specialists rather than generalists at this stage. Finally, it makes the case that there is opportunity at every business size for different personality types - some thrive on blank-page startups, others on scaling existing companies.
Takeaways
- 😀 The first 4 key stages for an entrepreneur are: concept, audience, offer, sales. This should get you to 6 figures in revenue.
- 👥 After establishing concept, audience, offer and sales - focus on building a team of 8 core people to scale the business.
- 💡 The key person leading the company needs to build their personal brand and engage bigger audiences to grow the business.
- 📈 Once you hit 8-10 people, aim to increase revenue per employee by adding digital assets and systems.
- 🚀 The hard jump is going from 12 people to 30 people on a team. You have to transform the culture and team at this stage.
- ⚙️ At 30+ people have an executive team, non-executive director, advisor and teams - doing $10M revenue.
- 🤝 There is value to be made at every business stage - taking over a business from someone retiring can be very lucrative.
- 🙌 Great companies bring in 'overings' - people way better than you to take areas you're not an expert in to the next level.
- 😎 Putting winning over ego and bringing in people better than you makes great leaders/conductors.
- 👍 There are huge opportunities taking over existing businesses from retirees and bringing them back to their peak.
Q & A
What are the first four key stages of building a business according to Daniel?
-The first four key stages are chaos, concept, audience, and offer/sales. You need to develop a strong concept, validate it, build an engaged audience, construct a sellable offer, and focus on predictable sales.
What metrics should you measure every week once you establish sales?
-Once sales are established, you should measure your pipeline every week - how many leads, appointments, presentations given, and closed sales. This establishes a rhythm to drive growth.
Why is it important to have a key person of influence as you scale a business?
-A key person of influence embodies the brand, engages bigger audiences, publishes content, raises the company's profile, and leads growth initiatives. This allows the operations team to keep things running smoothly.
What is the goal when you reach about 8-10 employees?
-The goal at 8-10 employees is to raise revenue per employee. Add digital assets and systems to increase productivity and revenue per person. This allows you to later add more people successfully.
Why is scaling from 12 to 30 employees so challenging?
-12-30 employees is very difficult because you're too big to be small but too small to put proper systems in place. Many early employees have to transition out, and specialized professionals need to come in to transform the capabilities.
What advice does Daniel have for people not suited to the 0-2 million stage?
-There is still great wealth to be created in taking a business from 2 million to 20 million or more. Many baby boomer business owners also want to retire and would welcome someone to take over their 1-2 million business and scale it up.
What did Jack role model when he brought in a lighting expert for his podcast?
-Jack role modeled humility in admitting there was more he could learn despite his major success already. He also showed that winning (having the best podcast) is more important than ego (insisting he knows lighting best).
What's the difference between an underling and an overing when building a team?
-An underling is someone not as capable as you, while an overing is someone much more skilled than you at something. Great leaders bring on overings across areas where they personally lack capability.
What are the two biggest global opportunities Daniel sees right now?
-Two huge opportunities are: 1) Scaling businesses from 2-20 million+ as boomers retire, and 2) Taking over small 1-2 million businesses from retiring owners and bringing them back to peak revenue.
What metaphor does Daniel use for the role of a leader?
-Daniel sees a leader like the conductor of an orchestra - not necessarily the best player of any instrument, but able to bring together elite talent across instruments to create something beautiful.
Outlines
😊 From idea to tens of millions - the entrepreneur's journey
This paragraph outlines the key stages an entrepreneur goes through in building a business from an initial idea all the way to a successful exit or acquisition. It describes the chaos, concept, audience, offer, sales methodology to get to six figures in revenue. It then talks about team building, establishing a key person of influence and core team, followed by digitization of all assets to scale the business. The goal is to drive up revenue per employee to add more people and digital assets. The hard transition is going from 12 people to 30 people, requiring more professional specialized hires and letting some early employees go.
😀 Specialists vs. generalists - which career path should you choose?
This paragraph contrasts the skills required in early stage startups of around 10 people versus larger companies of 50-70 people. Early stage favors generalists or "Swiss army knives" who can perform many roles, while larger companies need specialists who do one thing very well. It advises thinking carefully about which environment suits your skills when plotting your career.
😊 Case for admitting what you're not good at and surrounding yourself with 'overings'
This paragraph makes the case for being self-aware about your weaknesses and limitations as a founder or leader, and having the confidence to bring in outside experts who are far better in those areas than you are - your "overings". It provides the example of Jack with his 5 million subscriber podcast deciding to bring in a lighting expert to redesign his set, exemplifying the idea that "winning is better than being right" when building a great company.
Mindmap
Keywords
💡startup journey
💡chaos to concept
💡audience
💡offer
💡sales
💡team building
💡digitization
💡professionalization
💡non-founder opportunities
💡exit strategy
Highlights
The first four stages where everyone gets caught is called chaos, concept audience offer sales
Concept - you've validated it, conducted some experiments, aligned to it, other people are excited about it
Audience is that you engage an audience - waiting lists, dinner parties, scorecards, quizzes, discussion groups
Offer is that you construct a packaged up offering so people can buy something
Sales is the ability to close deals, get sales across the line, predictably and reliably
Establish a rhythm of laps, leads, appointments, presentations, sales. Measure pipeline weekly
Build a team of 8 people - general manager, marketing, sales, finance, admin, media, operations
Key person builds audience through stages, pitches, content - general manager keeps operations running
Digitize everything of value to get ready to scale - CRM, IP, brand, culture, investor docs, online systems
Add assets to increase revenue per employee, then add people
12 to 30 people is difficult - transition rebels/misfits to professional team manufacturing value
At 30 people - 5 person executive team, non-exec director, advisor, teams of teams, $10M revenue
0 to $200k is testing, $200k to $2M has legs, $2M to $20M is professionalization and growth
Biggest opportunities - retiring baby boomers selling $1-2M businesses
Buy business from retiree, bring fresh energy to return to high watermark
Transcripts
so let's talk about that Journey then
yep that Journey from got an idea want
to start that ice cream business that
Chilean basil ice cream business
whatever except for tens of millions
exit for tens of millions it I I get off
the ground people love my chile and
basil ice cream what what is the journey
that an entrepreneur goes on from zero
up until they exit so there's there's a
key stages the first four stages where
everyone gets caught is called chaos
concept audience offer sales so you have
to develop your concept so it's a good
concept you've validated it you've
conducted some experiments you're
aligned to it other people are excited
about it audience is that you engage an
audience waiting lists dinner parties uh
scorecards quizzes discussion groups all
of those are great audience Builders y
um offer is that you construct a
packaged up offering so that people can
buy something and that they that
audience can now act on something and
buy and then sales which is the ability
to talk and discuss with your interested
parties to close deals to actually get
sales across the line and to do that
predictably and reliably so for sales we
establish something called a rhythm of
laps leads appointments presentations
and sales and we measure our pipeline
every week how many leads how many
appointments how many presentations how
many sales so those are the first four
things concept audience offer sales and
that should get you into the six figures
of Revenue just by doing that the next
thing is about team building you've got
to establish a key person of influence
who's got a personal brand Who's lead
the leader of the company who's going to
embody the brand and you got to build a
team of eight people around them um a
general manager marketing and sales
Finance admin um uh it media and
operations those kind of roles and
essentially you now build this core team
of eight and um the key person of
influence job is to engage bigger and
bigger audiences and so they get out
there and tell the story of the business
they get on stages they pitch um they
publish content they raise their profile
they do joint ventures and Partnerships
so they're leading from the front while
the general manager or Ops director is
making sure things don't fall apart
behind once you hit about eight people
you now have to digitize absolutely
everything of value in that business so
now you go through the whole process of
digitization of the value so you're
getting ready to scale which means for
example moving physical relationships to
a CRM some kind of data the database or
building a CRM uh formalizing your
intellectual property um building a
brand a company brand um formalizing
your organizational culture uh getting
into um really good investor
relationship and and documentation
governance so all of these are
developing systems developing assets of
the business um having online marketing
and sales systems having an online way
of generating a lot of leads reliably
having an online way of making customers
mostly happy most of the time so you're
basically trying to build as many assets
as possible what you're trying to do at
about 8 to 10 people is raise revenue
per person so let's say you got 10
people with 100,000 per person so you
got a million of Revenue 10 people time
100,000 million of Revenue if you can
add assets and get it to go to 1.1 1.2
1.3 million now you've got 130,000 per
person so what you're trying to do is
add as many digital assets as possible
to get the revenue per employee or the
revenue per person up once you see that
the revenue per person is going up now
you can add people because the more
digital assets there are times by the
number of people now you're going to be
successful now the really hard jump is
from 12 to 30 from 12 people to 30
you're too big to be small too small to
be big very difficult time in any
business's life um and what you have to
do is go through a transformation of a
small team of rebels and misfits to a
professional team that's that's
manifacturing value a lot of people have
to go unfortunately some of the earlier
people who were there because they could
breathe and had a pulse and all of that
sort of
stuff they uh unfortunately have to go
find a new startup and you now have to
go and bring on team members who come
through recruiters with a proper process
and who they go through in in an entire
process of how they join the team
they're on boarded correctly and now you
transform into a more valuable
Professional Organization once you hit
30 you've got a five person executive
team plus a non-executive director and
an advisor and then you've got some
teams of teams and now you're doing 10
million of Revenue 3 million of profit
and now you're exible have you got to
make a decision earli
it's so true it's so it's so funny did
you agree with that all of it I agreed
with all of it the interesting thing as
well is the part you said about of the
first 10 people you hire very few of
them are equipped or ready or able to
adjust to the environment you have at 30
40 50 60 100t and it's and part of the
re what I've noticed is that when
there's 10 people you're requiring a
different set of skills and you're
you're thinking more about multi
multi-disciplinary individuals that can
kind of wear a few hats but not do
anything exceptionally well Swiss Army
knives yeah they can do 25 things badly
yeah exactly and then when you get to
like 50 60 70 people it's really
Specialists Specialists bread knife
bread knife Cuts bread really well just
that so on this then when we're thinking
about our own careers we've got to ask
ourselves that question which is are we
a specialist that should be going into a
company where there's 50 60 70 people or
are we that kind of Swiss army knife
that should be playing in startups and
then going from zero to one versus like
one to two yeah I have I've had to
wrestle with that myself I personally
absolutely door the first 2 million of
Revenue that's that is where my fun that
for me is fun it's where I find it
exciting I become almost pathologically
distracted once we hit 2 million of
Revenue and I have to remind myself oh
wait a second we've got a fast growth
business here stop thinking about other
things I really enjoy getting businesses
past that first couple 100,000 a month
and then for whatever reason I'm like
dreaming of a blank page I just want
some like what if we did this what if we
did that but here's the cool thing there
are so many amazing people who are
phenomenal at the 2 to 20 million jump
so at the moment the person who's
leading Dent Global is Glenn Carlson
Glenn is I've known him since I was 14
years old and actually what he's
phenomenal at at the moment we've
discovered is that he's really really
good at driving that next jump the 2 to
20 million jump so there's the zero to
there's the 0 to 200 Grand like testing
there's the 200 Grand to 2 million which
is like yeah okay this thing's got some
legs there's the 2 million to 20 million
jump which is we're professionalizing
we're become a proper business um we're
becoming valuable we're getting all the
right people what's shocked me because
I've known Glenn for so many years is
that we've just recently discovered that
that's what he's suited to he's really
good at the 2 to 20 million jump he's so
good at recruiting talented people he's
so good at pushing them through a
process that weeds out like 15 amazing
people down to two amazing people down
to one how would you make the case to
someone that's just heard what you've
said about your companies and that you
like that 0 to2 million phase what case
would you make to me to admit what I'm
not good at for the sake of my business
because everyone can relate like I don't
mean to share this without asking him
but I'm sure like he's in control of the
edit so he can take it out if he doesn't
like it did you think I was going to do
it Jack turned around to our team the
other day and it was I've actually
spoken to so many people about this
moment since he said it Jack said you
know what um Jack's run this podcast
from zero so zero subscribers to where
it is now it's 5 million subscribers
Jack turned around at 5 million
subscribers and was like I'm not the
best in the world at doing lighting so
what I've done is I've gone out and I
found someone who's the best at lighting
and they're going to teach me they're
going to redesign my set 5 million
subscribers he's getting someone else to
redesign a set so that the lighting is
amazing it takes a certain kind of
person to put winning over ego oh I love
that yeah you know what I mean and I I
think about there's so many You Know
Jack probably didn't know the
profoundness of that moment to me but
someone who is applauded from every oh
you've built the best you know whatever
for him to go you know what there's so
much I don't know he he role modeled
humility and he role modeled um the idea
of winning is better than uh being right
right yeah um and overing not underlings
that a great company is great because
you bring in overing not underlings uh
so an underling is someone who's not as
good as you are and overing is someone
who's way better than you are so it's
that confidence to bring in the overing
um all of my businesses have been great
because overing run them uh every
everyone who is in my organization is
way better than me at the thing they're
doing and I feel like like the conductor
in the orchestra can't play all the
instruments and probably maybe is okay
at one instrument but actually their
ability to bring in the best in the
world uh at that instrument is what is
what makes them a great conductor the
ability to enroll people so the first
thing I'd say is that there's value to
be made at every level if you're
watching
this and you're you know you're not a
founder and you're sitting there going
all the people who make the money are
the people who start from scratch and
get something off the ground and look at
Daniel and look at Steven those guys are
the Zer to1 guys wouldn't it be great if
I was one of those but I'm not well
actually that's not true the truth is
that there's there's incredible wealth
to be created if you can take something
from 2 to 20 million there's amazing
wealth if you can take something from 20
to 200 million do you know this is worth
mentioning one of the biggest
opportunities in the world right now
biggest there there's two major
opportunities in the world but one of
the biggest opportunities in the world
at the moment is Baby Boomers who want
to retire and a typical scenario is you
get someone who's late 60s early 70s the
business had a high Watermark of a
couple of million and now it's dropped
down to maybe a million or six High six
figures because the person's
semi-retiring and because the business
has been on decline it's almost unable
the person wants to retire and they just
want to hand over the keys and they just
want that business to go to someone
who's fresh um and what they're willing
to do is to do a vendor sale exit Cody
Sanchez who had she talks about this
I've done deals like this um and
actually Jeremy with the 100 foot yacht
that's how that's how he does it so you
essentially you buy a business that the
person wants to retire and you take over
that business with fresh energy and you
bring it back to its high Watermark so
there are so many people who what they
would be Suited for is not starting with
a blank sheet of paper like me but they
would actually go and find you know Bill
and Sarah who want to retire and they
want to do a deal where they get paid
out over 5 years to hand over the keys
to the business if you love The D a CEO
brand and you watch this Channel please
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