The 4 SECRETS To Making Money In Your Sleep! | The Money Making Expert

Summary

The 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

00:00

😊 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.

05:00

😀 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.

10:02

😊 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.

Keywords

💡startup journey

The video discusses the typical journey an entrepreneur goes through in building a startup business from the initial idea all the way to a lucrative exit or acquisition. It outlines the key stages like developing the concept, building an audience, constructing an offer, making sales, hiring a team, digitizing and systematizing the business, and eventually exiting or selling.

💡chaos to concept

The first stage in the startup journey is moving from chaos to having a solid concept. This involves developing and validating the business idea through experiments and getting alignment and excitement around the concept.

💡audience

The next startup stage is building an engaged audience for the product/service through techniques like email lists, dinner parties, quizzes etc. This transitions the concept from idea to reality.

💡offer

Constructing an offer involves packaging up the product/service so that the audience can actually purchase something concrete. This monetizes the audience and creates revenue.

💡sales

Establishing sales involves building processes to systematically convert leads into paying customers. Things like lead pipelines and consistent sales presentations are set up to drive predictable revenue.

💡team building

As revenue grows, the entrepreneur must build a team, starting with a 'key person of influence' (the face of the company) and then hiring for roles like marketing, ops, finance etc. Team building enables scaling.

💡digitization

Around 8-10 people, the startup must digitize all its processes, assets and IP, including things like CRM, branding, culture etc. This acceleration through digitization increases revenue per employee.

💡professionalization

The challenging transition from 12 people to 30 people involves letting go of early misfit employees and bringing on professional specialists through structured recruiting. This transformation establishes a valuable organization.

💡non-founder opportunities

The video highlights that there are lucrative non-founder career opportunities in taking a business from 2 million to 20 million revenue. So founders aren't the only route to wealth creation.

💡exit strategy

Finally, the video touches on exit strategies like selling to a new owner who can revive and grow an aging 2 million dollar business to fund the original entrepreneur's retirement. Exiting is the culmination of the startup journey.

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

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