Scale To Sell Q&A: Preparing Your Business For An 8-Figure Exit

Hey, capitalists. This week we are sharing part of a Q and A call from the 1% with Ryan and Gabe Klingman. Gabe and Stan Wei have just recently released a brand new course titled scale to the ultimate guide to preparing your business for an eight figure exit. So if you're still not in the 1% and hopping on these community calls, if you'd like to go through our courses like Gabe's new scale to sell course, if you'd like to have some of your own questions answered live on our next Capitalism community coffee call, all you gotta do is visit capitalism.com1 to apply. That's capitalism.com/the number one. All right, let's get started. Hey Gabe, before we go to Q and A, let's talk a little bit about the magic that's happening on our.

Side of the fence.

So if, if y' all are not aware, Gabe and I work together on some brands. He works for the capitalism.com fund. He is a head advisor. He builds our systems and processes. And we've been diving into the company that I bought, my old company, I sold it for 15 million. I bought it for less than a million. So Gabe, what have you been seeing from your side of things?

It has been a. So it's been, how do I say it has been a blast and pretty clear why you got it for so cheap. Both of those things have been what I've been noticing. The systems have been falling apart. The brand I was, I watched the call that you did with justice two weeks ago and you hit it on the head. This brand in someone else's hands wouldn't be worth shit. In the hands of people who know what they're doing, can leverage the skills that like you and I have developed over these years. It's worth significantly more than we could.

Significantly more. Now tell me what, what did you see when you started diving under the hood that made you say this is actually a worthless brand unless it's in the right hands?

No. Systems and processes, people who are running the company literally manually going through and fulfilling orders and like customer. They had like multiple people set up for interim customer service. And yet other customer service wasn't getting done. Just the. Yeah, it was a headache and it hurt to experience and to be like, this is why or this is where it's at. Okay, this makes a lot of this.

This business, when I sold it, had $3 million in profit per year. In profit, like after salaries, after. I mean, $3 million in profit. And they ran it down to a million dollar business Million dollar top line. And some of it was out of their hands. There were some market changes and they probably shouldn't have bought a brand in this space because they didn't know this space, they're just a private equity group. But it was very clear when the team took over that this, this brand was just completely neglected. I mean it was, it wasn't even effort. It was, it. I think, Gabe, I think you, Tomer and myself and Anz have gotten more done in the last two weeks since we took it over than was done in the five years that it was held by a private equity group. And so I'm telling you all this, I'm telling you all this because some of you hear about nightmare stories about businesses going under or you're worried that there's all kinds of competition out there. And I'm here to tell you if, if you're actually putting in effort, you might stand out in the marketplace because there is, there are still people like this brand trying to compete in competitive spaces. And, and by the way, that brand is still doing a million dollars top line, still doing a million dollars top line despite being completely neglected. We're going to revamp it and it's going to be, it's going to be magic. But I'm telling you all this because like, if you understand the stuff that we're talking about, I see you, Jules. If you understand what we've been teaching inside the 1% and the capitalism incubator and for free on my podcast and YouTube videos, you are taking a flamethrower to a knife fight. The reason why I was able to win on Amazon from 2013 to 2017 was not because I was the best Amazon marketer in the world. I still to this day don't know how to print a shipping label. I've run pay per click campaigns, but I don't run pay per click campaigns. I'm not a great Amazon copywriter. I don't know all the bells and whistles of Amazon. It was that I was a better than average marketer. I was better than average. I wasn't great. I knew search engine optimization and I applied it to Amazon. I knew the launch model and I applied it to physical products. I knew email marketing. So I built it into our business. All of these things allowed my partner and I to build a 3 million dollar EBITDA company. That's profit between 8 and 10 million dollar top line, 3 million dollar bottom line just being better than average in the space. And now you guys have learned what I did not know back then, which is how to do proper launches, the millions of dollars of swipe files that you have just in your members area, the thing that the, the processes and the strategies that take you to a hundred sales a day. I, I am beating this point because guys, if like if you have not at least gotten to 10 to $25,000 a month, it, it is, it is on you and today and moving forward, we need, this community needs to be faster about decision making and going because there are people in this group making millions of dollars and they started with nothing. You saw the email that I sent out last week about Jason Franciosa. Jason Franciosa came in with his last $3,000. He now has a $10 million business and one of the fastest growing companies in the country.

So fun, so fun.

Absolutely amazing with that. What do you think keeps people from making those decisions faster?

It is a, it is the fear of failure that then projects itself as trying to make the right or perfect decision.

So what that means is I don't want to fail. So I perceive that there is a right way to do it.

In the comments, y', all, if what he's saying it resonates, go ahead and like throw a yes or a hashtag in here. Keep going, Ryan. But I just want to see if that resonates with y'.

All.

If you a hashtag in the comments here it is.

I'm afraid to fail. Therefore there must be a decision that will prevent me from failing or, or guaranteeing that I succeed rather than a process that I am perfecting and optimizing along the way. So someone told me something. This was back in 2014, this was really good advice. It always stuck with me. And I think this is going to resonate with you too. When I was doing our first event, is it 2014 or 15, I, I had about $500,000 in retained earnings from my company. So $500,000 of savings over the years of doing business, taking on clients, all this stuff. And I put it all on the line. I put it all on the line to have our first event. The event was going to cost $500,000. I had $500,000. I, I put all of it on the line. And someone said, the best advice to me, they said, hey, as you're planning this, just remember the Seth Godin teaching of the first one is always the worst one. And I said, what does that mean? They said, well, anytime you do something new, the first one is going to be the worst. I just recently got into standup and the first time you perform is the worst one. It better be. Right? Because you're supposed to improve over time. And so the idea of the first one being the worst one is you got to get the first one out of the way. You got to get the worst one out of the way. You got to get your mistakes out of the way. If you're trying to avoid the mistakes, if you're trying to avoid the failure, if you're trying to avoid the setbacks, then you'll always be hedging from not getting them, and so you just won't move. But if you just do the launch, if you send the email, if you do the partnership with the influencer, or if you launch the product, it should be the worst one you ever do, and you approve on it from there. And so when people are afraid to fail and then looking for the perfect thing, they're not getting the worst one out of the way, and so they just kind of stay perpetually stuck.

So two things I want to jump on here. One, I love that I've actually sent students in the incubator back to have said that exact thing, like, oh, my God, I'm afraid. Or they've hinted towards it, and I've been like, okay, this is your issue. Go back. And I've said, go back and watch Ryan's first videos. Literally go on YouTube, sort by oldest. Watch his first videos. It's atrocious. And I'm like, it's. It's supposed to be. It's supposed to be. But I want to jump on something because someone. A couple people have been throwing this in. In the group, and I want to hear your take. I have lots of thoughts. Yeah, what about something like this? I don't know who Facebook user is, but they say, and Runway, if you may. If you make a mistake and. And you're. You're done. So the idea that there is. You only have one shot. This is it. You have that one shot. In some instances, I believe that's accurate. But I believe. I think people put a lot more pressure and a lot more risk onto certain situations that it doesn't need to be there. Would you agree?

I completely would agree. I would. I would go even further and say that if you're in a financial challenge and you think that business is going to get you out of the financial challenge, you are not ready to start a business.

Come on.

Hold on.

I can't sit for that. Come on.

Is that. Is that a come on? Like, wait, what?

Like, that's so good. That's so. Because I've never heard anyone say that. But that is exactly what needed to be said.

This, this is, this is risky to say as somebody who runs capitalism.com and sells mentorships on making your first million. But if you are starting a business with the idea that it's going to solve a financial problem, you are not ready to start a business like you're. First of all, you're doing this for a year before the payoff. A year before, before there's real payoff. Second of all, if you're doing this for short term money to solve a problem.

Yeah.

Then you're going to always be extracting from the business.

Come on.

Rather than building the business, you have to build the engine for the profit. Profit comes to sustain good work. That is what profit is there to do. It sustains good work. You have to do the good work first. And good work takes time and effort and it cannot be strained as the solution to your problems in order to be good work. So you've got to find a way to get into a stable, dare I say, abundant place where you are creating and giving. Like, let's take Gabe as an example. If you don't know Gabe, if you haven't heard me brag about Gabe, Gabe was working at Starbucks making $17,000 a year just a few years ago. He's then been a part of selling companies. He's been the head of operations for businesses. People go to him for advice on business and life. I just hired him as basically the head of operations for our fund. He's, he's got some chops. And the reason why he's been successful is because he's always thinking about what he can create for the other person despite whatever challenge he is going through.

That's exactly what I was going to say it because a lot of people, and I want to jump and cut this off before people go down this road mentally. We're talking about strategy before tactic and that is so important. The idea that if you are doing something in order to try and get a tactic right, trying to solve this problem tactically in front of you. The tactics won't solve the problem if you're approaching it with the wrong strategy. You have to have that. And that strategy as we're talking about here, and this is why I harp on strategy over tactics so much. But that strategy as we're talking about here is being from a place of service. Being from a place of service. And if you're right, doing, if you're doing something from a place where it's tactically, okay, I need this money here now. I need to make three grand or else I am going to not afford rent this month. If you're going at it from that way, you're not approaching it from the right strategy. So the tactics, very, very. Unless you luck out, which happens, but is rare, very likely won't work. Am I correct in saying that?

I would say so. And somebody did ask a good question about what? About Jason and his last $3,000. I'm going to address that in a second. Alex, I would like for you to share, if you can, the conversation that we've had this week about going all in and giving to other people and relaxing, the desire for relaxing, the need for. Like, how is this going to work out? How am I going to make my money? Alex just got back from vacation and was processing a lot of this.

Can you.

Can you share this with people?

Sure.

Come on in.

What's up, people? Everybody, I'm the new Ryan Moran.

Alex, so good to see you, basically.

I can't hear you, Gabe. He's got headphones in. It's great to see you, too.

Basically, we were talking yesterday about what it means to really surrender to kind of your calling is probably not the right word for it, but just what you really feel like you want to do inside instead of.

The societal expectations or the things that we put on ourselves about the money or the success or the end result of it or rather than just following the journey. And so, yeah, I mean, that's kind of sums it up.

But. But what has happened for you in processing, that is you're just like. Like, I don't. I don't care about the end result. I'm.

Yeah.

Give my heart to what's right in front of me.

So for me, I really like making art. I like taking photos. I like making videos. And I had gotten in my head that I needed to be a business guy, so I need to go do business stuff. I need to go build a business. And I realized over the vacation, I just want to make art. I just want to make cool things, and that's what's on the inside of me. And I gave up the idea that I needed to make something out of that and just said, okay, if I go all in on this thing, if I go all in on creating something for people and feel really, really good about it internally, I can just trust that the rest is going to unfold exactly how it needs to and not.

You know, try to go manufacture some outcome that's not really true. To who I am.

So amen.

Amen.

Thank you. Do you know who Jimmy Darts is, Gabe? Jimmy Darts is this kindness influencer. He'll do videos that are like, somebody will submit give $500 to the first person who buys you dog food or something. Like, have you, have you seen this?

No, but he seems right up my alley. But no.

Okay, yeah, you should, you should look him up. He just walks around doing random acts of kindness for people, giving them thousand dollars. Give him $500. Well, I, I, someone turned me onto his work and then come to find, I, I, I spoke with him on the phone yesterday because we're exploring maybe getting him involved in the fund or something. He has about 10 million followers. And he said he's a spiritual guy. He said, I felt this like, impulse. He's like, I felt like God spoke to me and said, if it's 96 degrees in Austin right now, move there. I was like, okay, that's weird. He's like, I pulled up my phone, I looked at what the temperature was in Austin. It was 96 degrees. And so I packed up all my stuff and I moved there. And then he says, and while I got there, I felt like God said, you should work out at Lifetime Fitness. And he was like, God, I can't afford Lifetime Fitness. I don't even have work. Like I make. It's, it's 80amonth. But he got the membership at, at Lifetime and then no one could, no one would hire him. He didn't have any like marketable skills, but he got a job at the JW Marriott. And so JW Marriott downtown, he's just like waiting tables. Then he sees he's at Lifetime Fitness and he goes, hey, I think that's that guy. I follow his videos. I think that's Ryan Moran. So he comes up and he introduces himself and we start talking and he's talking about how he like wants to start a business and all this stuff. And I was like, well, you should come to our event. It's at the JW Marriott downtown in two weeks. And he couldn't afford a ticket, but he worked there, so he just hung out with all the people who are building businesses, like absorbing as much as he could. He didn't go the E commerce physical product route, but he had his mindset wildly expanded. He now has a 10 million person audience, is doing collabs with Mr. Beast. He has a, he has a TV show come out with Taylor Lautner. He, he makes $25,000 a sponsorship into several of them per month. And he started all this a year and a half ago. And what I processed while I was talking to him is this guy genuinely is just like, I am going to bring kindness to the world. I am just going to give and create and be a representative of love and kindness, and I'm going to bring that to the world. And I'm. Let the business side take care of itself. And what that does is it. He is always being fueled by something that is more powerful than money. It's just more powerful. I've even started to relax this idea of calling myself an entrepreneur in my mind, because whenever I think about entrepreneurship, you think that it needs to be a specific way of business, rather than just creating and being good for your customers and the people that you want to serve. But if you prioritize that, the money unfolds really fast. And it unfolds really fast because we have a scarcity of people who are willing to spread love and kindness and joy and being good to your customers, because 90% of entrepreneurs are just thinking about what they can squeeze out of the marketplace. And when you flip it, things unfold so freaking fast. So freaking fast. It. It happens faster than you could do with your extraction. Mindset. Gabe, I feel like you want to say something here. I know I'm speaking your language.

You really are. You know me, man. This is so right up my alley. I actually wanted to jump into with one of these comments here. Oh, randomized. Okay, cool. Is. Can I. Oh, the entire thing does come up sick. Okay. Mindset so often kicks in, like, you can't make money just because the things you enjoy doing. The idea that, oh, in order to make money, it has to be difficult. Has to be a challenge. I want to do this, and then I want to just hit on the Jason thing with the $3,000 left. Yeah. So this one first, because I threw up the comment here, out of order, and that's on me. I hit me with this. This is something I actually struggled with for years. This has been a really difficult struggle. What's your take?

Put the comment back up. Yeah, so let's read it. Exactly. My scarcity mindset so often kicks in, like, you can't make money just with things you enjoy doing. Sort of. My biggest challenge is getting rid of that conditioning. So, Sylvia, this is the answer to your question. Please pay attention. Oh, we're out of time. I want you to grab this and tattoo this on your arm. Remember this forever.

You can't make money just doing things you enjoy doing. Then just do them because you Enjoy doing them. Come on, just do them because you enjoy doing them. Don't do them for the money then. Don't try to out think that thought.

Don't even give it power by calling it a scarcity mindset. Just say, I'm going to do the things because I love them. If it becomes a business, great, right? And I'm learning some stuff about business, and I really enjoy learning the part about the business. And I really like the thought that I could come up with ways that I could monetize this. But right now I'm just doing it because I love it. Right now I'm just doing it because I care about this group of people and I'm really excited to bring this product to them because I know that they need it. And I'm still working out my pricing strategy and all this stuff. And I know Ryan says I'm supposed to do this launch and like building an audience and stuff, but right. Like right now, I just want to serve this group of people in the best way that I can, and I believe this product will do that and allow me to serve more people. When you do that, all of that resistance in your mind that you have around, how am I going to monetize this and how is this going to be a business? It won't exist. It won't hold you back anymore because it's not the primary reason why you're doing it. As you move forward and you start building that momentum of I'm serving these people, the natural reaction is that people are going to start telling their friends, is that your ads are going to convert. Because it's coming from a really genuine place. Influencers will resonate with you. And all of a sudden you'll have so many sales, you might have to go raise capital in order to start to sustain it. And then you come to me and you're like, I think I need to do that vision capital thing you do in the incubator. What the heck do I do now? And I look at this and I say, sylvie, you really got something special here. Let me help you professionalize this. And you're like, all right, let's go. So don't do it for the money. Just do it because you love it. And I'm. And by the way, I'm not. I'm not preaching the adage, do what you love and the money will follow. I'm saying, do what you love and we can monetize it later. Follow the energy and the natural impulse and the natural momentum towards what it is that you do want. Don't put the brakes on it with the money stuff that, like, I got you. All right? Like, go do the I love it stuff. I'll help you monetize it. That's what these calls can be for for you. You've got all the business people in this group. So go do the thing you love and build the momentum. And we worry about the business side later. Just do it because you love.

That's the whole. Again, people try to like the strategy versus tactics. People try to fix, especially when it comes to scarcity mindset, because, you know, like that. That anything mindset, emotion, like, up my alley. And people tend to try to fix that with the tactics. Okay, well, if I want to get rid of the scarcity mindset, then I guess I should just raise my prices regardless of what I think or what I feel. And it's like, okay, you probably should. But regardless, your tactics aren't going to change. The tactics that you do aren't going to change the mindset that you have. It's instead when you operate it, when you're operating from a specific strategy. When you change that strategy, then everything else can change.

But, Gabe, what if I have bills and stuff and people to pay for?

Have you have bills and stuff and people to pay for? Well, you should probably raise your prices. I'm going to say that first. And also we have lots of training on how to do that. But you should absolutely do operate from a place of service. The more you serve, the more people will come back. It's the whole idea, speaking to Facebook user here, it's the whole idea that Ryan talks about, right? Of how do you build a business that is operating off of the same customer? If you want to get. What is that? 25 sales a day from. I was gonna say 30 products. That's not right. 25 sales a day. That'd be a real big business. Then the way his that process works is because you're using the same customer for all of the sales. And the way you use that is by finding out, how can I serve this customer at a deeper level. When you operate from that strategy, all of the tactics will make sense. All the tactics will show themselves.

And this is a good segue into the question about Jason and his last $3,000, because Jason had bills and people to pay for and a lifestyle to support. Jason was working full time when he started his business, and then he got laid off. And you know what he did? He took on side clients, doing many chat flows and building audiences and a couple Consulting calls and he did some coaching calls for us. Like, you know, for a fee, he just scraped together wherever he could because he had to keep the business as the thing that he was putting energy into, not taking resources out of. If your business is a baby for the first year, you're changing its diaper and it gives you nothing in return. It's screaming in the middle of the night, you love it, you get nothing in return. Then a year goes by and they start to love you back. That's, that's the business world. So if you've. Once again, I will say it just like I said it before. If you are in a financial crunch and you think that business is going to be the solution to your financial challenges, you are not in the position to start a business. At least not one that you can sell. You can take on clients, you can sell a product that you believe in. But I am yet to see someone who is like I gotta make this business work in order to solve this problem and it be a lasting business. In fact, when I got into this game, the model was that you created a digital product, you did a launch with all your buddies, you make a bunch of money and then you promote everybody else's stuff. Most of those people who did that model are broke. They made millions of dollars and they're broke. They made millions of dollars because they were constantly in this energy of I have a financial problem to solve rather than I am creating something that matters and is going to last. If you are starting your business to solve a financial problem and you think that that is going to solve the problem in the short term, you need to focus on shoring up your financial situation so that you are not thinking about how I make the business pay for my life. That that is how you will win long term.

That so I was not expecting to get into any of this before today's call.

I never do.

Yeah, I. That's why I love, that's why I love talking with you here. That is something I'm incredibly passionate about because like, like you said just I'm going to get real personal here on my story. For those of you who haven't seen the other interviews we've done here, I went from working at Star so I was a touring musician. Actually I'm start there about a decade. I made a couple hundred bucks a year. Like I am talking dead broke but I love. No, I'm talking like it's, it was. I paid more for my drum set than my car. Overall over the 10 years I probably lost Money, like. But that being said, I got to travel the world. I got to go to Europe, I got to go to Canada. I got to go all over the country and do what I love every single day. I would not take that back. The experiences I've had, I've lived so many lives at this point, and the friendships that I've made, the people I've had, business partners that have made because of the bands. Right, That I was in and the skills, the marketing skills, the presence skills, the focus, the peak performance. All of these things that you learn that you have to learn while you're touring for like a month at a time, living out of a van. How can you cut your expenses, right? But it was all that to say, like, I did not make money as a musician. I loved it and I did it. I did not make a lot of money doing it. So I also was working at Starbucks, going, when I wasn't on tour, I'd go to Starbucks, wasn't recording. I'm at Starbucks making 18,000 a year. My biggest the. I went from that, literally. I was supporting my girlfriend at the time. She was getting her master's degree. Her biggest fear to. Because I see a couple comments about this, her biggest fear was security. And yet somehow she was with me and I was like a touring musician making 18k a year, like, living off of the government because I couldn't afford rent, trying to support us both. It was a nightmare. My financial situation was in ruin. I went to someone I knew who had started a business, and I said, look, do you have anything that you can give me? Anything? Like, I will do five hours a week, answering customer service, whatever I can, just to get some sort of financial stability here. And then they were like, yeah, actually, we totally can. We would love to bring you on. So they did. And within a year, because of all of the skills I had learned doing something I loved as a musician, I'd learned focus. I had learned time, chunky. I'd learned peak performance, right? I had learned prioritization. I learned how to show up even when you don't want to. I applied all of that into this job doing five hours a week of basically customer service. Applied all of that in within a year. I'm at a chief level in the company and I have equity. Two years later, we exit. I have a big chunk of change. Fast forward another like six months. I'm now here working with you, head of operations in the fund, right? Look what happens. Things happen when you're a one not operating from a place of, okay, I just need money. Right. I was when I jumped into that business and when I said, hey, do you have anything? But once you have that, you can then expand. Right. I stepped into that role in that business as a basic customer service person, worked my way up and stopped worrying about the money. All of a sudden, you're making 40k a year. That's double what I've ever made in my life. And I'm happy as can be. And was able to operate, literally was able to operate from a place of abundance at 40k a year. It was all a mindset. Does that make sense? You guys follow so far?

It makes, it makes, makes total sense. I, I, I relish the opportunity to talk about this the entire time. I, I would if I'm just going to put this out there. I love this conversation and I love these calls. Would you enjoy if we did an extra call sometimes that was just all about abundance mindset. If, if Gabe and I just came on and talked about this and did Q A specifically about abundance mindset, would you want it if we, if we get, you know, 20 or 25 yeses or so? Gabe, let's, let's schedule it, I think.

Yeah. I'm seeing a couple in the private chat here as well. Oh, yeah. Okay. More people are showing up. Boom.

All right, we'll, we'll talk about this off air. Yeah. And we'll see if we think this would be valuable for the community. I say we go to some Q A, Gabe. How's that?

Yeah, I think we should. But we didn't do the simultaneous sip.

And I. Oh, sorry. Okay, everyone. Yeah.

This is my favorite.

Ladies and gentlemen, boys and girls all around the world, I know why you're here. You're here for this magical thing that we call the simultaneous sip. It's a thing that makes everything better. It makes the stock market go up. It bridges the political divide. It makes your COVID infection get better. It's something that we ripped off from the legendary Scott Adams. So all you need is a cup of mugger glass, chalice of tine, a tankard thermos, a flask, a vessel of any kind. Fill it with your favorite liquid. I've got coffee. And join me now for the unparalleled pleasure, the dopamine hit of the day, the simultaneous sip. Go.

Ah.

I can feel my testosterone rising.

That was fantastic.

That was worth, that was worth the price of admission. Right there. Right there. That was worth it. Okay, I want to hit some new people today. Remember, just a word of reminder, I Can't hear you. If your video is not on. If your video is not on, we skip you. If you pull your video on, I know you are ready to be taken on live. If you don't have your video on, I assume that you're just taking up space in the green room. So turn your video on if you want to come on live. Let's start with Taria Avery in three, two, one. Good morning, Taria. How are you?

Good morning.

Nice to see you.

Thank you. Good to see you as well.

What can we do for you? By the way, are you new to the 1%?

I am new to the 1%.

Welcome. We're very happy to have you. And am I your name correct? Taria?

It's Tara.

Tara. Neither here nor the I is silent.

The eye is silent.

The eye is silent.

Yes, the is silent.

Tara, tell us about your business and how we can help.

Okay, so I have been running an offline service business for some time now and looking to now expand into a products line. I've had some really great discussions over the last two weeks holding myself accountable to manufacturers, exploring the products that we're looking to launch. I've also launched a new private Facebook group for our top VIP clients just to get data collection and to begin the interview process. The question that I have is around narrowing down what we will go to market with. I am really leaning into my audience and allowing them to give me sort of what their needs are versus me pushing what I think I want to launch with first. But I'm having a hard time narrowing it down. Just wanting to know if there's any specific techniques that you would offer in terms of nailing down that first product.

Tell us a little bit about the offline business for a minute. Tell us where you have momentum.

Good question. It's a mobile dog and cat grooming business.

Mobile dog and cat.

We operate in a pretty large area. We're known as the veteran in our market and we have the biggest footprint. But that equates to a lot of man hours. It's a very manual service, delivering the service from hybrid eco friendly Mercedes Sprinters. Right. So we're always on the road, we're always running around.

What about the Mercedes Sprinter? What was that?

We deliver the services out of mobile grooming vans. The Mercedes Sprinters.

Okay, okay, okay, Got it.

Yes, yes. So after years of being beat up, so to speak, with this manual operation, and I hesitate to say that out loud because we just spoke about abundance. Right. And I'm extremely grateful that we've had the opportunity to do it. I remember, you know, crying and praying and, you know, meditating on having this business launch grow and stick. And we've been around for. It'll be 15 years. So it's a blessing to still be in the game after all that has transpired in the market. Right.

Absolutely. Good for you.

Yeah.

You asked about products, you asked about, about narrowing on that product line. What are you considering right now? Tell Gabe and I like what you're what. Tell us about the dart board that we're aiming for.

Yes, yes. And I have. Yes. What's on the board. So it would be cliche to just begin and stay within the grooming space. Right. Although, you know, some have said you've. You've been good at it. Do it. Right. So couple of things that we're looking at would be health and wellness overall for your pet and it would include some in between maintenance products for. In between grooming. That's a natural extension. But I'm also looking at supplements that would help as like a digestive aid. We're also looking at.

For the pet.

For the pet. The pet, yes. The worst issue that one can have is, you know, when is he going to go. Right. The most inopportune time, when and where. So helping with that pain point. And then also something for mobility. Looking at offering a new spin on what's in the market now for pets that have mobility issues. And it could be sort of an apparatus, for lack of a better word, without giving it away, that would help to reduce inflammation and joint tenderness and, you know, all those things. So those are the top three. One other item is a topical treatment, but again, it's sort of in the same vein as the in between, the maintenance in between product. So those are our top three to four items that we're considering.

Gabe, what advice would you give on this?

So I actually had an onboarding call with Tara here probably maybe two weeks ago. So she's a killer. She's a rock star. I'm welcome. I'm so glad you're here. I'm so glad. I would say you have all of the foundation to move forward. You're overthinking it. That's what I would say. As you have. She's overthinking what specific product to do instead of thinking you have like, you started off this call and said like you're setting aside the separate Facebook group for these high people who pay you a lot. And you, if I remember right, you have a large Facebook group already something like 10,000am I saying that right?

Oh, no, maybe 10%.

Okay, 10%. Okay. I. I had the. I had the numbers wrong.

Okay, that's okay.

Yeah. So you still have like a decent sized Facebook. We do, we do, yeah. Start.

Does that mean. Does that mean a thousand? 10% of 10,000?

Yes.

Okay. About thousands people.

Okay, so go right ahead, start asking them. I would do two. So two things. One, create a survey in there. Start and create. You have these relationships. Reach out to them one on one, ask them questions, see what else they want, what else they're buying, what else they're currently spending their money on to help this product or to help their. And then the second is the. We just released, and this is just incredibly timely, a course in the 1% called scale to sell. That is literally the first three videos have been already or the first two have been released. Both of those. I go deep onto knowing your audience and knowing your competition and knowing your audience's journey. Go through that. Specifically the. Know your audience. Let me pull up the title here. Know your audience. Specifically that video that will go incredibly deep on how to understand what is the audience journey. And instead of you trying to understand what is the product that I could sell to this person, think, what is the journey? This. When you understand that journey, you can understand the pain points. And the products will become much more natural. Between asking them and going through that, I think your problem is solved.

All right.

I think. I think the thing that you're missing to piggyback on what Gabe said, the thing you're missing is you've been in the cats and dog space for a long time and you don't currently have from there. What's the transformational journey someone is on? That's right. What I did hear you say is that there was one kind of web that tied everything together and all the products you were considering what I heard was aging pets.

Right.

You talked about mobility. You talked about digestive issues. And that is a different journey to go from, you know, the youthful animal to now I'm taking care of an elderly dog or an elderly cat. And the needs do change when that happens. And so they start thinking about, I want to give. I want to give my pet the best last few years of its life. I want to. I want to spoil it. I want to take care of it. I want to.

Push off any joint or mobility issues for as long as possible. So if you're looking at that as what the challenges, I'm just saying a dog owner, what the dog owner will face as the dog ages I think you start to create a very clear plan of the order of products that you would release. And then I would just say whichever the first one they would buy during that transition period. That's a. That's a good one to start. Doesn't mean it's the best or the one you have to go with, but it would be a good option for you to choose. And then it's just what's the next thing that they would buy and the next thing they would need. And that will help you round out the order of those four products that you would launch. Does that make sense? Tara?

That's perfect. Perfect.

Thank you.

So. So what, once again, for you, it's just narrowing in. Okay, cats and dogs, let's narrow this into what the actual transformation or the period of life we're going to serve this customer on, and then the order in which they would buy those. That's one way to sort out how to prioritize which products to launch.

Okay, thank you very much.

You're welcome. Good to see you, Tara.

Welcome.

Thank you. Thank you so much.

All right, we'll see ya.

See ya.

See ya.

Gabe, who are you just itching to talk to next?

So I would say Jules. I watched you and Jules interact and you license probably a month ago, go through and like break down her business. I've sent that to so many students who come on essay. Fast forward to this part. Watch this 10 minutes. I have been so excited to talk to Jules. I would love to throw her up here if that's possible.

Jules, do you have some time?

I think. I think we save Jules for last.

Okay.

We've got to keep people. We got to keep people hanging in the balance.

That's the old marketer coming in. That's fair.

Because everyone is waiting to hear what has happened in Jules business. So sorry for completely bulldozing your request, Gabe. I want to keep people waiting.

Fair enough.

All right, since I bulldozed you, pick the next one. As long as it's not Jules.

I would say hoping. I'd say let's throw you up here.

All right, hoping in three, two, one. Good morning. Hoping. How are you?

Oh, it's good night here, but good morning. I'm very well, thanks.

Well, good night. Where are you? Are you in Australia?

Yeah.

Okay, well, welcome. Glad you made it. What can we do for you? Tell us about your business and how we can help.

Yeah, so I'm looking to simplify family travel. So for parents that really enjoy traveling and want to be able to continue traveling once they have children.

And I've been developing my first product which is taking a lot of, a lot of time because it requires stringent baby standards.

So in the meantime I've developed, I've just brought on another new product, something a lot easier that I thought I could launch first.

Sure, sure.

Yeah.

What is, what is the first product?

It's a carry on luggage that turns, it turns into a stroller.

Oh, great. Okay. I like that a lot. So that's the easier one, correct?

No, that's the hard one.

Oh, well, what's, what's the one that you're, that is the one that you're launching because it's going to be faster and easier to get to market.

So it would be like a travel, travel like diaper bag and essential clutch.

Okay, got it. Yeah. Cool. And where are you stuck? Where do we need, where do you need some help?

I'm not sure whether to.

Focus on the first product or the easier, like. Yeah, I'm not sure which one to be focusing on at the moment.

Okay, so the, the product that is harder to launch is going to take some time. What's your timeline on when you could have a prototype ready that you could show to an audience? How long will that take?

I've got a prototype already.

You've got a prototype. Okay, so what is going to make what, why the delay then? What is, what is the difficulty that's getting you tripped up up?

Because there, there's tooling, there's certification, there's test runs.

Okay, and, and do you have an estimate of how long that will take before you could take a sale?

Before I could take a, I could pre sale.

Yes, you could, but what about delivering?

Delivering? I would say easily at least six months.

Okay, it's gonna take at least six months. Have all those certifications, have it to the, the person's house. Okay. Yeah. Now what about the first product? Why are you considering going in this direction? What's your excitement level on it? Talk us through the decision about considering the, the possible first product.

Hang on the, the neck. The second product.

You mean the product that you think is going to be faster and easier to focus on?

Yeah. Yeah. Well, I've got samples of it already. Like, and it's.

It'S easy to make takes. I've actually put in an order already. Okay, well, I just need to work.

Out how to sell it's new information. Okay, so, so it sounds like you don't need our help making a decision. You need our help ensuring that you make sure the first product does well, while you wait for the product you really want is ready. Is that correct?

Yeah. Yeah.

Okay. Okay. I'm glad we went deep here.

The question you presented us with is just a little different than the question that we need to answer. So first things. First things first. I can just tell by your energy and the way you're talking about it, you're way more excited about the travel on luggage that turns into a stroller than you are about the product. The first product. You're just trying to get some momentum. This is all fine. But I want you to keep one foot in the camp of this product that you want to launch. Because as you build audiences, as you document your journey, as you share photos of the prototype and you're updating people on the status of this order, that's going to be where your excitement starts to build momentum and your audience gets built. So my advice, first and foremost, is to continually document the launch of this second product. Show the prototype, show it news, talk about how difficult the certifications are, talk about the setbacks, talk about the timelines. And when you're. When you see it coming close, you can start to take pre orders and you'll start to get a lot of momentum on that. So, like, my first piece of advice is not to take your attention away from the thing that you're excited about. It's actually to build the audience and the momentum around that product. And as a result of following that excitement, people will find the first product and become customers prior to that second product ever existing. Are you with me so far? Does that make sense?

Yeah. Yeah, makes sense.

Keep processing out loud. I need. I need. I need to see, hoping, smile and get it and feel excited about this before I know I've done a good job.

Yeah, yeah. I sort of thought that that was the case, but I just wasn't sure, like, would people get. Still maintain that excitement after six months, seven months?

The question is, if you will.

Gabe. Gabe, you're on mute.

Yeah, yeah. Just because I thought it was reverberating a little bit on my end. Come on. That's exactly accurate. I was just getting excited here to piggyback back a little bit off of Ryan and to get real tactical here. If you are on this call, you have access to the 1% content members area. What you should 100 do. Because Ryan tells all of the great strategies and people, from what I've seen, tend to get lost in the. Okay, that's great. How do I practically do this step by step? Like, what's my step today? That I can do. And so this is why we have the content. And if you go into the members area, I'm actually going to put this link into this private chat for the people who are in the green room. But you'll see the profitable product launches. Version 2 course, it's the other course that I did here. But if you go all the way down to bonus deliverables, you'll see a whole bunch of swipe files. Specifically, you'll see Damien's email swipe files. Grab those. If you want practical, like a practical step in, like an actual. Visually be able to see what that looks like when there's delays in manufacturing, when all of these things that were supposed to happen don't. How do you maintain your excitement? How do you keep the audience engaged and excited and still have a profitable launch after a long period of time? And it's exactly what happened to Damien. So we have literally his swipe files, all of the emails that he sent and literally just documenting the process. This is what happened. So if you want super practical, this is how to do the strategy that Ryan's talking about. Hop in there and I'm going to send the link here in the chat.

Yeah. So, yeah. So my advice is if you keep that mindset of I'm going to document this whole thing, but that's the product I'm excited about. The next thing for you is just go through the outline that we have inside. The 1% of your job is you've already picked the perfect product. You're done there. Step two, you start building the audience. Step three, you do the profitable product launch with this first product. That's going to be faster and easier. Then we start to build, keep the momentum with email processes continuing to build the audience. And then by the time you've gone through that, it'll be time for that product to be ready, at least for you to take pre sales. So your process is the same. The only thing I tweak for you is that you maintain the excitement about the second product because that's really the business that you're going to be building.

Yeah, yeah. So you would be keeping people updating.

Yes.

Talk. You'll be.

Talking about both products at the same time.

Yes, that's that. Yes. But at minimum, you're sending one email a week about what's going on in the company. Friday afternoon, you send a company roundup. Here's what's happening. Here's the content we posted this week. At minimum, you're documenting one email a week about the status of all of these products and where you are in the manufacturing process, that's your minimum. You should do more than that. But that's your minimum. And then that will keep people engaged in the process until it's time for pre sales. Yeah.

Okay, cool. And.

One last question. Am I narrowing myself too much by targeting just traveling parents?

Your market is not traveling parents. It's parents. And.

Your job is to make the annoying parts of parenting easier. One of those things is that it's really freaking annoying to travel with kids.

And so you have a couple of products that help with that. You could probably launch three to five products just on that annoying problem. But there are other annoying problems too. Keep those in mind as you look at other products that you want to launch. And that will prevent you from going too narrow if you keep that wide lens.

I do.

I don't think that you're going too narrow.

Okay.

Make you sense. Yep.

Cool. Okay.

Hoping. Good to see you. Have a great night in Australia.

Thank you.

All right, see ya. All right, let's go over to. We've done all women and we've got a woman coming. So let's. Let's go with a dude. I Dodd is in here every week and we only get to him half the time. So we're going to prioritize. Dodd here. Dodd, what's up, my man? How are you?

Welcome.

Hi, Ryan. Hi, Gabe. How are you?

Good, how are you?

Good to see you. Good, good.

So I don't really have a question. I appreciate being here. I like you guys to see my face every week because I'm. I'm listening and learning.

Well, I'm seeing it on Frozen too.

Am I frozen?

My Internet cut out?

I'm good.

Ryan. Yeah, that's you, Ryan, then.

Oh yeah.

You guys are not frozen on my screen.

Sorry, dad. Please continue. How's anyway as business progressing.

So I am probably 80 finished building my 5 day challenge.

Good for you all.

The back end has tested out all the pages I've tested out. Now I'm building the offer and offer stacks. So mine is a five day challenge. Lose five pounds in five days for $5.

Challenge. The first up, the first order bump or the order bump is two digital books. My pump dog muscle log, which is my book. And then my business partner, Dr. Paul, his mastering a healthy lifestyle. So those two books for $9.99. The first upsell is a backstage pass for $55. The five day challenge. Each day is 55 minutes and then the second upsell is 55 days of group coaching. For $555. Contin with the 555 theme.

Okay. Now, in your vision, does an E Commerce physical products line exist alongside this audience that you're building? Is that in the long term vision here?

Yes and yes. So I currently have a nutritional supplement that's selling now.

Good.

Our flagship product is $36. Average cart value is $86.

Good.

We've run no ads yet. The, the five day challenge. I will run ads to that, that will link to that funnel.

Got it. The reason I ask this is because you've got, you've got the good bones of a wonderful audience builder here. If you can think about the challenge and this upsell flow as existing solely for the purpose of getting customers and building a community, you will crush an E Commerce launch. You'll just crush a brand. So if you're able to spend $5 and get probably higher than that, but if you can spend, if your funnel averages out at 50 bucks a sale and you can spend $50 to get that customer, that's you'll get free. Yeah, you're getting, you're going to get tens of thousands of buyers who have gone through your material and are ready for whatever supplement line you want to launch or food line that you want to launch, which will allow you to just crush anybody who tries to compete with you. A lot of people are trying to make the digital product side of things be the profit engine. But if you're willing to spend all of that profit on getting more customers, you'll have such a great responsive audience to just smash a full food line or supplement line or a weight loss line and you will win.

Yes, I agree. And my pump dog line is.

Fitness apparel.

Okay.

So we'll, we'll drop.

Probably giveaways for the pump dog side of things and the nutritional supplement during the five day challenge.

Good.

But I love that mindset. Use all the profits just to build the email is getting customers in and giving them good service and good products at the end.

That's right. That's right. If you do that, that mindset will help you win. Good work, Dodd.

Can I just add one comment here?

For the last 20 years, I've always worked on some kind of project.

And.

With the intent of bringing these projects to market. So way back, I developed a women's jeans line that was ahead of his time because it's a pretty cool, provocative name. One of my frat brothers gave me a call. His financial advisor is looking to do something in E Commerce. He's got a million followers and A million followers.

Where?

On Instagram.

Okay, what's this person's name?

Lovely. Lesh.

I got a screenshot of it. Yeah, lovely.

Lush. I found it. Keep going.

And, and, and each, each time she posts, he gets 25, 35, 000 comments. So a very engaging audience. I bring it up to say I'm trying to be disciplined and not get sucked into, oh, here's a shiny object with a built in audience. I can make some quick money, but just stay the course for what I'm doing.

Well.

What would be the opportunity that you pursued here?

Well, it's a piece of.

She could be the face of this women's jeans line that I developed. There's a whole full brand book and I put it on the shelf 15 years ago. But it's, it's a viable product. And along the lines of Fashion Nova, this girl looks the part. The line is designed just like the type of, of clothing and audience that Fashion Nova has. And fashion, if you know the brands, they do about a half a billion a year in.

In sales. So the girls.

But, but. So these are two different businesses. These are two different. Connected. Correct.

They're not connected.

So what's the problem? Why, why can't you do both?

I would, because I, I think a distracted mind gives you distracted results. Okay, maybe I could go ahead.

If you don't think that you can do both, then the way that you solve this problem of focus really quickly is just go find yourself a different influencer for the brand that you want to scale. Because you're seeing, you're seeing exposure and you're like, there's an opportunity here. Let's go. But if you can replace that same exposure in the brand that you want to scale, well, now you're not torn anymore. Just go do your thing.

Great mindset. Yeah, Yeah, I got it.

Cool.

Easy enough. Yeah.

Good. Good to see you, Dodd.

Thanks, guys.

All right. See you, man. Gabriel.

Good to see you, my man. Perfect.

Great to see you too. See everyone.

See ya. If you've read my book, listen to the podcast, or watch any of my YouTube videos and you're asking yourself, where the heck do I start? Where do I begin my journey to my million dollar business? We got you today. My team and I just completed a new kickstart class called five days seven figures. This is the best on ramp class for any of you who are ready to begin your seven figure journey. In this, in this five day class, you're going to choose your ideal market, what products to launch, come up with a plan. To get each one of them to 25 sales a day. And you'll know at the end of the class exactly what your business is going to be, how you're going to get it to a million, and exactly what your next steps are to get it off the ground. It's a five day class. It costs 100 bucks, and when you're done, a member of my team will get on the phone with you and review your homework directly with you. When you're ready to start, go take the challenge@capitalism.com five that's the number five five days, seven figures capitalism.com five.