How To Hit $5 Million In 18 Months

Hey, everybody. I'm Ryan Daniel Moran. I'm the founder of capitalism.com. i help entrepreneurs build compelling brands, get to 100 sales a day, and have a multimillion dollar exit. And today, I'm going to show you what we've been mapping out on the whiteboard all week to help entrepreneurs go from 1 million to 10 million and up. And so we kind of productize it like we put it into a system that we're going to be running through our fund. So if you don't know who I am, I run a fund that invests in e commerce businesses. I teach a model of building $1 million business by having four products that get to 25 sales a day. That's 100 sales a day. At a $30 price point, that's $3,000 a day, which is over $1 million a year. When somebody is at that point, they oftentimes need help of going from 1 million to $10 million. And I have a fund that sometimes invests in businesses and then advises them to help them grow. Well, this week my partners were here, we were around the table, and we were talking about how do we make it faster and simpler and cheaper and and easier for entrepreneurs to go from 1 million to 10 million? So as you watch this video, you're gonna see what our process looks like so you can implement it in your business. So over here, you see all our chicken scratch, right? This is everything that we've been. This is a mess. So I'm gonna try and make this easy for you to get so that you can use exactly what we're doing in our business. Cause if you're at a million dollars in your business or you're on your way there, you've got product, you're taking sales, hopefully you're building an audience and you have an email list. You're doing the things that get you to a million. But going to 10 is a completely different skillset. So here's what we've mapped out here. There's a couple of things that are stabilizing the millions so that you have the resources to grow. Then you've got the things that you need to focus on to grow. And then you've got scale to go to eight figures and have a big exit. So, so what we have here are these 1, 1, and 1. This is gonna be our first phase of what we're cookie cutting, cookie cuttering for each of these businesses. The first thing that all the businesses that we've invested in, the business that I advise, the businesses we're starting internally will need to have very clear financial reporting. Now, most entrepreneurs, they know what's in the bank, they know what's coming in, they know what their expenses were. But they don't have a third party that is looking through their finances and saying, why are you spending so much money here? Instead, they're the ones plugging in everything. They're their own bookkeeper. So the first thing that we're gonna have everybody do is have a third party go through all of their books and have regular financial statements so that they can see it, so that we can see it and we can make accurate decisions about how a business is growing to grow. Because a lot of times while we're talking with our brands, we're like, hey, you need to make this financial decision. You need to buy this much inventory. And they're like, I don't have the cash for this. And we can't go in and see all of the different breakdowns where we can cut costs or where we can move things or where we can borrow. And so step one is to have very clear financial reporting. And I bet if you're running about a million dollar business, you don't have really good financial reporting. You should have a third party that is doing this for you. And you know, we have ways that we can do that affordably. The second thing, the second step is we're going to roll out debt financing for every single one of the businesses that we've invested in. We've created partnerships with some banks to where they will even create what are called net terms. What this means is you want to buy a bunch of inventory, you want to make $100,000 purchase order, you don't have $100,000, so you're going to use this other group that is going to pay for that $100,000. You get the inventory, you start selling it, and as it starts selling, you pay off that loan. It'll be, you know, a modest interest rate. You get to pay that off. Salt of inventory. Go order your second inventory. So you're getting all this growth that is starting to compound and it's not coming out of your pocket, it's coming from a debt source. Perfect opportunity for e commerce entrepreneurs because now we've got clear financial reporting. Now we've got the ability to order a lot more inventory to get ahead of sales, to start growing. And then we'll do the third piece of this first phase, which is bringing in growth systems. What are growth systems? We sit down with the entrepreneur and we say, okay, where Are you stuck? And how can we free up resources and capacity to be able to do this? So supply chain, customer service, getting reviews, bringing in resources, either a person or an agency. Now we've got the ability to pay for it because we've got debt financing, we've got clear financial reporting. We're going to start freeing up the capacity of all of these entrepreneurs so that they can focus on what actually grows the business, which is creating new products, which is building audiences, which is doing product launches, which is making connections with good relationships that grow the business. This whole process will take about six months. So for six months we'll be building growth systems, we'll be managing the books, we'll be creating different relationships for debt financing. And you know what's going to happen in this first six months? Businesses are gonna double. They're gonna double because the entrepreneur will be freed up. The entrepreneur will have all this capital for them to work with, they'll be launching new products, we'll have clear financials to where we as advisors, we be able to say, hey, you should do this and you should do this. One of the things we're talking about, side note is we're thinking about saying to our brands, hey, we'll just pay for the people that need to come in for the first three months so that there's no risk on your end, will actually absorb the risk. And for three months you can test these people. Hopefully the business grows and then all that profit, that new profit will pay for the people that we go out and find for you. So it's a way for us to provide a lot of value to the people we've invested in and there's no risk. You know the reason why thinking about doing that? Because a lot of the brands we invested in just don't want to spend money to grow. They're afraid, there's, they're afraid. I've done this, I've been like, I don't know if this is going to work out. I don't want to spend this money. But if somebody else is like, I'll pay for it for three months and if it works, we'll keep it. That's kind of my way of making it a no brainer offer for the people that I work with. Okay, so that's the first six months. So if you're taking what you're taking away from this and putting in your own business, have clear financial reporting, get somebody to do third party financials for you, then look at sources of financing. Too many entrepreneurs are under capitalized they do not have the right finances to be able to grow. And number three, start looking at what are the things that I'm putting my attention on that are preventing me from doing the high leverage activities. What are high leveraging activities? Building audiences, coming up with products to sell, selling more of them, getting leads and selling things to those leads. That's what you need to be doing as the leader of your company. So where are you stuck not doing those things? Find somebody to take over that system. So the second phase, the next group of like the next six months after we've done those two things and the company has probably doubled at that point. Now we're going to be focusing on two areas of rapid growth. Now we've got more products, we've got more capital, we have more profit, we've got more systems. Now we're going to focus on the two things that create a lot of growth. I'm talking about specifically e commerce businesses because that's my bread and butter. But, but those two things are funnels. Being able to buy traffic that buy traffic for a dollar and it turns into $1.50. That's what we're gonna do. And number two, we have systems to be able to get in front of a lot of influencers that will talk about our brand and get us a lot of exposure. We just ran a process with our most successful partner inside of our fund, got it in front of an influencer and their sales tripled within a few days. Which is awesome, right? And we have the systems to be able to do that systematically, be able to do it consistently. So they're in front of a lot of influencers, they have the funnel, they're profitable. So they're on Amazon. They got influencers talking about them, they have a funnel that is converting and we have the people to be able to do that. And now since you've grown, you're able to pay for the agencies that can do this well and we have those relationships. So the second kind of six month part of the process is all about rapid growth. Throwing gasoline on a fire that is ready for that growth with influencers and with funnels. So we're buying our traffic, we're getting people talking about us, we have our Amazon presence. Rapid growth happens in those six months after we've done that. Now what we have is we launch additional products, we have systems, we've got capital, we got people talking about us, we have a funnel that's converting, we got customers coming in. Now this company is in a position to work. If it really wants to scale. We've probably, you know, we might have doubled the business again. Now if we really want to grow, we've gone from 1 million to 2 million to 4 million. We want to get to 10. Now we're going to go on to the third part of this which is hire amazing people and if we need it raise capital so we can pay for those people. Go and hire a players to be able to take this $5 million business and make it a $15 million business. How are we going to do that? We just created a partnership with a recruiting agency that is going to go out, find the perfect people for our brands and we have all kinds of relationships with influencers, influencers with investors to be able to raise capital. So we'll help the entrepreneur with their pitch deck. We'll take it to our investors, they'll be able to fund the business. Now we can pay for the people that we want to hire. And one of the things that we're talking about inside of the fund is if we raise capital it'll come out of our cut, not the entrepreneurs cut. So since we're already investors in these, in these companies to make it a can't lose for the, for the entrepreneur in a lot of cases we'll sell our shares to fund the company rather than the entrepreneur selling their shares because that is a no brainer offer for the people that we work with. And the more no brainer great businesses that we can partner with more long term value we've created as a fund. So it's like an 18 month plan. You may not go from 1 million to 10 million in 18 months but the process will look like this. First six months we get systems clear financial reporting and we get some debt debt financing so we can buy more inventory, sell more stuff. You'd be amazed at how many e commerce entrepreneurs run out of inventory over and over again because they're not using good debt. Number two, rapid growth with funnels, influencers. Number three, we get amazing a players and we pay for them by raising capital or from the additional profits that we've created. This is going to be our cookie cutter plan. You can see here on this part of the whiteboard we've got all the different brands that we're a part of and we're lining up right in order. We're like you first. We can need to get systems and debt financial reporting you next. And so the first time I feel like we now have the systems and the people to be able to build a ridiculously awesome fund. You know, we have about tripled our value. We raised $1.6 million in March of 2022. March of 2020 and two years later, we've about tripper tripled the value of that fund.

That's, that's good. But now I think we're in a position to be able to put it through these processes on all these different brands and make it an absolute can't say no offer for the entrepreneur, for everybody involved. Our investors will have a big win. The entrepreneurs will be really happy. And now I feel like since we have a can't say no offer, we'll be able to partner with the types of brands that will really, really benefit from this. And those are solopreneurs with about a million dollar business in E commerce with good margins. And if that's you, go over to capitalism.com fund, let us know and we can talk about how we can run these systems for you. If you watch this whole video and you're like, that's great, Ryan, sounds awesome, but I don't have a million dollar business. I don't even have business off the ground. There's free resources in the description of this video that'll show you exactly how we help or how we teach or entrepreneurs to go from nothing to their first $10,000 a month and then scale that to $100,000 a month. It's just four products, 25 sales a day at a $30 price point. And if you like this video, hit the subscribe button. I appreciate you watching. I'm Bryan Daniel Miner with capitalism.com, i'll see you on the next video. Thank you.