How to get unlimited funding to build your business in 30 days...

Summary

In this video, the speaker explains a powerful equation that helped him transform $1,036 into over $120 million in sales. The key concept is 'Client Financed Acquisition,' which involves getting customers to pay for all marketing and acquisition costs. By ensuring that the money made in the first 30 days is greater than twice the cost of acquiring and fulfilling a customer, the business can grow without external capital. This strategy enabled the speaker to rapidly scale multiple businesses, emphasizing the importance of thinking differently and leveraging customer funds for growth.

Takeaways

• 💡 The speaker's strategy revolves around a single equation that helped them turn $1,036 into over $120 million in sales.
• 🚀 The core concept discussed is Client Financed Acquisition (CFA), which means getting customers to pay for all marketing and acquisition costs.
• 💰 To succeed without outside capital, it's crucial to make more money from customers in the first 30 days than it costs to acquire and fulfill their orders.
• 📈 The speaker emphasizes that if 30-day cash flow is greater than twice the cost of acquisition plus fulfillment, the business can grow without capital constraints.
• 🔄 By using this approach, the speaker opened six brick-and-mortar locations at full capacity within three years, then scaled to 33 locations.
• 🛠 The equation and process outlined can be applied to any business to achieve rapid growth, as demonstrated by the speaker’s success in multiple ventures.
• 💳 The speaker highlights the use of credit cards to finance customer acquisition, emphasizing that interest-free financing for 30 days can be leveraged for growth.
• ⚖️ Profitability is crucial in a capitalist society, and the CFA strategy ensures that acquiring new customers is never a limiting factor for the business.
• 📊 The speaker grew their portfolio to $85 million in annual revenue without taking on outside capital, relying solely on customer-financed growth.
• 🔗 The video encourages viewers to think differently about acquisition and to use CFA to grow their businesses without relying on external funds.

Q & A

What is the central concept that has helped the speaker grow their portfolio companies?

The central concept is 'client financed acquisition', which involves getting customers to pay for all marketing and acquisition costs, allowing for business growth without outside capital or investors.

How does the speaker define 'client financed acquisition'?

Client financed acquisition is defined as making more money from a customer within the first 30 days than it costs to acquire and fulfill that customer, ideally leading to a negative acquisition cost.

What was the speaker's initial capital when they started their entrepreneurial journey?

The speaker started with $1036 and managed to turn it into over 120 million dollars in sales.

What was the speaker's approach to opening new locations for their brick and mortar chain?

The speaker opened each new location at full capacity, learning how to do so effectively from the first location, and applied this knowledge to open 33 other locations.

How did the speaker transition from a brick and mortar business to a licensing business?

The speaker used the same model of client financed acquisition to transition to a licensing business, growing revenue significantly within a short period.

What is the significance of the '30-day cash' term used by the speaker?

'30-day cash' refers to the net free cash flow that can be collected from a customer within the first 30 days of their engagement with the business.

Why is the 30-day period important in the context of client financed acquisition?

The 30-day period is significant because it represents the interest-free financing period typically offered by credit cards, allowing businesses to leverage this time frame to collect funds without immediate costs.

What is the minimum requirement for the '30-day cash' to be considered a successful client financed acquisition?

The '30-day cash' must be greater than two times the cost of acquiring the customer plus the cost of fulfilling that customer.

How does the speaker suggest overcoming the belief that it takes money to make money?

The speaker suggests changing the game by focusing on client financed acquisition, which allows for business growth using the customers' money rather than relying on personal or outside capital.

What are the potential constraints a business might face when using client financed acquisition?

While client financed acquisition can alleviate capital constraints, businesses may still face operational and hiring constraints that need to be managed effectively.

How does the speaker describe the process of using client financed acquisition to grow a business?

The speaker describes it as a process where the business collects more money from a customer in the first 30 days than it costs to acquire and fulfill them, allowing for continuous reinvestment in customer acquisition and business growth.