How to Scale Your Coaching and Consulting Business to 7 Figures
Matt Ryder, Sammy, Marco, and Kim discuss how coaching and consulting businesses hit revenue plateaus and what it takes to break through them. They cover hiring, marketing, infrastructure, and raising capital as the key obstacles most founders face when scaling past six figures.
Hey, guys, what's up? Matt and James here. Welcome to the episode of Coffee is for Closers. Today, what we're going to be talking about is the reason why most coaching businesses or business in the coaching and consulting space hit plateaus of around fifty hundred and three hundred thousand dollars a month.
Why is that, Matthew?
I don't know. Let's explore today. Jimothy.
Good.
Cue the introduction.
On the introduction.
If you listen to this podcast, you will make your first million within three years. I'm going to repeat that. You will make a million dollars within three years of the first episode you listen to. We don't want pikers. We're not here to save the manatees. We're here to make podcasts. You really want this, you listen and review. Put that coffee down.
All right. So, like, we've been in the coaching game for a while now in the coaching and consulting space, fun space, whatever. And what we've sort of noticed is that there are these, like, nexus points. And this is interesting to know both from a business owner and from a salesperson perspective, because, like, you, you might realize that there might not be a future in the business that you're currently selling for.
Yeah, it's very good.
You are in that kind of situation at the moment. You need to figure out if you really want to stay there.
Yeah.
Because like, that business owner has figured out where they're happy. They may not be saying it, but they're not going to move.
Yeah.
And it's. It becomes like a larger frustration, particularly when you're incentivized by that growth and scale and your income is tied to. To the business growing.
Yeah, right.
It's.
Yeah.
This is a, this is a fun subject.
Yeah.
So, like, I would say one of the first ones is, you know, everyone wants to get to 30 grand a month. That seems to be a number that's thrown around a lot. 30 grand seems to be a milestone. The next one then is like 100 grand a month. Then it's 300. It's a jump. It's always. No one's like, I want to get 200. Everyone's like, if you're. If you're at 50, you want to get to 100. If you're 100, you want to get to 300.
I think you've missed the 10k a month.
Yeah, 10k. My.
Just because I've got like 300 people offering me ways to get to 10k a month in my inbox right now.
Is that with a business or by themselves?
I don't know.
Yeah. Yeah.
So I'm talking. It's not very clear. It's with forex. Yeah.
Yeah.
Just nexus point. I, I've always called them black holes so it's interesting. I, I don't know where the vernacular comes from. It's funny.
Yeah.
It's not that funny actually. It's quite boring. I'll shut up, but you're gonna have to listen regardless.
Yeah.
So who's joking?
As the army told me you joined us, but we didn't join you. Take that pineapple.
Yeah.
So 30K, 100K, 300K.
Yeah.
There's a few more after that but it's. We'll save those.
Then it's 500, then it's a million.
I'd say 650.
Okay. Yeah.
So you'll the die on but yeah, fair enough.
650. Yeah. Is it typically just.
I was pretty stoked when we got $2 million.
Three times. I was pretty stoked and funnily enough, like, I mean I've not experienced it, but a lot of those nexus points happen up well and truly past those points all the way up to, you know, $100 million. There's always black holes or nexus points in business. And it's really funny. It's like right before you go into like you hit that point, profit margin is at its highest. And the reason why people typically don't push through them is because you have to add in significantly more infrastructure to push past that revenue which tanks profit margins. So I, I think like a lot of business owners get stuck in like, well I'm making all this money now, why would I want to mess with that? See my profit margins go down with no guarantee of us getting to that next point where the problem's totally fair. And that's where like you evaluate like as a sales guy, does the guy that I'm working with have balls? Because if the answer is no, like they're never going to take those action points to get through the next step. And it's super evident with recruitment and who they're bringing on, what roles they're putting people in into. Because you can always like if you see someone in your business recruiting particularly higher level staff, you can always look on recruiting websites to see what the understanding of like a typical wage for that type of person is. And if they're big wages, typically they're prepared to go to that next level. If they're hiring VAs and stuff at those, you know, 300k marks to fulfill important roles, chances are they're protecting profits and aren't looking to actually scale.
Yeah, that's a very good point.
Of course it is.
Yeah.
Yeah. So like the, the, the, the big thing is infrastructure versus income.
Yep.
And so in order to grow you need to have more infrastructure than you, you need to have an overestimated amount of infrastructure for the amount of revenue you have coming in.
Yeah.
Because if you try and grow it like one for one, it's impossible.
Right.
Like, like. Cause you like hire. So like, so if, when you, if the business owner that you're talking about or if you have a business owner doing this, if you're always talking about scale and you're always talking about the marketing funnels.
Right.
It's like. Well no, it's like. Cause you need to be, you need to like assume this is where the ballsy part comes in, that your sales and marketing funnels will work and then you have to infrastructure your operations and delivery departments to be able to withhand to withstand the influx of new people when your sales and marketing works.
Yeah.
The hard part is balancing that enough to where you don't over infrastructure so much that if something doesn't. Yeah. There's no reason on marketing. But also if it doesn't work, you got a business or.
But so then there's no budget left to throw money at people to fix the problems.
Yeah.
Which is where capital raising comes in place.
Yeah.
So like if you really want to scale, scaling through profit is difficult.
Right.
We haven't raised any money yet because we're as like as our accountant told me, we're somewhat cash overburdened at the moment. With cash.
Right.
You could recommend some things for us to buy. That'd be.
Yeah, yeah, definitely. The board was over accumulating and I was like, I disagree. Which is interesting because it was the opposite problem for a while.
I think we're like almost a definition of anti frugal.
Yeah. I just like, I was like, oh, I've got, you know, X amount of money in the back. And they were like what? I was like, yeah, like one point they were like, I have too much money.
Hey, some out or spend something.
Yeah.
Between the businesses it's like more than $2 million. So they were like, you can probably afford to get rid of some this month.
Yeah, yeah.
But yeah, so actually the goal is to then, you know, speaking of cap raising, the goal is to then what, what we're going to do probably is pull out a million dollars and then put that into a fund and, and then we'll have and we'll cap, raise the same amount. So then like when you one for one, you get like 4% rates. So if we go, hey, listen, we're opening up a fund like Sniper Capital. Lever sure is. We go a million dollars in Sniper Capital and then we raise a million dollars and we have a $2 million fund to fund all the other businesses.
Yeah. And because that we've got that capital death, like banks, private equity, venture capital, they're all happy to provide more money knowing that there's a safety barrier there, that you're good with money.
Like if you're willing to put up a million dollars, someone will give you a million dollars.
Exactly.
Like, it's just kind of the way it is.
It's safe for them.
Yeah.
They're like, oh, if you're willing to put your own money in, then we'll put our money in.
Right.
So. Yeah, so that's kind of the plan Kimbo spoke with the other day. We'll have to have Kimbo on the podcast. Yeah, I wanna, you know, he ran Yamaha as well.
He can get us a bike.
Had no bike. Look, I think he ran the music division.
A guitar, how cool would it get?
Yeah, I saw, I was at his house the other day. This is a rant. So we took on a new board member, his name's Kim. And he ran Smirnoffs, Caldamax, a bunch of huge companies. And he's working on the board with us to help us scale our company.
Right.
This is a guy, he's scaled, exited ipo, all this kind of stuff. Very, very large businesses. So it brings us a very, very unique perspective. Like that's for example, that says multi six figure hire for time wise, relative. Relative to the work. But the amount of insight that we get and the ability to restructure and be able to scale the business is extraordinarily insightful to us.
Yeah.
Yeah. And I mean, which is again, is.
One of the reasons why none of these business owners scale their business, even though they say they want to, is because they refuse to say that they're not the best at what they do. Yeah, we needed help. I mean, we were good at doing a couple of things and we, we needed someone to go, hey, man, like if, if your goal is to do this, there's a lot of things that you haven't put in place.
I disagree partly, but also very heavily agree. So we would have got there and.
Me and you would have been dragged to jail one day.
Yeah.
Just from no fault of our own.
Not from. Not from like doing the wrong thing. Just going, oh, I didn't know I had to pay that.
Yeah.
Really?
Okay.
But no, I, I, I disagree in the sense that I think based on just like pure knowledge and problem solving ability, we probably would have got to where we wanted to. I think rough though with, yeah, rough. We would have made way too many mistakes. I, I kind of see like mentors, you know, a board member is really just like a mentor. That's only happens when you get bigger.
Right.
But they act as accelerant and they act as someone to prevent you from up because they've made those mistakes. So I think we would have got that just the time to do it.
Yeah.
And in the most straightforward path possible. Is, is the difference.
Yeah.
Debatable. It's a debatable fact. No, I agree. I think we would have done it, but I think we would have done it really messily and probably being ripped, been ripped off along the way because like we're paying, you know, just for some context for people, like we're trying to scale our business to multi millions a month between the businesses that we run. We're doing a few million dollars a month.
Yeah.
Right.
So.
Well, there's not taking into account the recent acquisitions that we're about to bring on as soon as that gets signed over where immediate more revenue comes in.
Yeah, I don't know what the NDA says we can and can't do with that. Anyway, don't mention names. Name names. But yeah, so it's a fair bit of cash. So what we're trying to figure out is how do we structure this properly? And so it's like from a scale perspective. We're trying to scale to, I think we kind of roughly worked out we really want to get to like 135 million a year.
Yeah.
We can't do with this one business.
It's impossible.
It'd be impossible.
Going back to, I don't know if we spoke about in this protocol or the last one that scalability only happens with multiple avenues of income. You can't do it on a single income stream. Well, I mean, maybe you could if you like coke and you, you're selling coke and take that much or you.
Have a giant software for the things that we are good at. It's not, it's not feasible.
So we have to recognize every problem.
That our sales sniper caps out at. Like man, if, yeah, I think, I think 36, 36 million a year is like the max we could pull out from this thing.
Yeah, absolutely.
From the one. And we have multiple entities at the moment still running. And we have a coaching. We have seventh level sales sniper Cyber Media, which is just about to launch operations, which we have the coaching company we just bought that's already cash flowing operations and then consulting, which will be tbc.
And there's plenty more ideas where that comes from.
Then there's the other big acquisition that we're doing at the moment, which would.
Be a good one.
Like to scale, multiple revenue sources are needed, which means multiple products. To do that, it needs to be transferable.
Right?
As in you have to utilize your client base, understand the needs of what of things that are going wrong in their business and offer the solution through different entities.
Like in the previous podcast when we talked about some ovens, you know, as.
You can tell, we're still in the same clothes. We just did too. Going back to like that, that profit, like we.
Sorry.
It's okay. I'll kind of explain it visually. I've done a, I've done a video on this.
Okay.
But essentially, if you have a look like it sort of goes in and out like that, right?
So funnels, but they're flipped up one way and stacked on top of each other.
Exactly. And then you've got like infrastructure on your vertical axis and you've got.
Right.
So if not a graph, but going up, you've got infrastructure. And then if you think of like as hourglasses with sand. Yeah, yeah, yeah, right. Like the higher the sand is the revenue and then the hourglass is the profit, right? So you've got, you're filling up with revenue. So you're filling the hourglass up with revenue, the sand up all the time, but it's getting constricted and then opening up. That's your profit, right? So like as you increase your infrastructure, right. Your profit is constricting, but then you reach a level where your infrastructure is up here. So let's say it's $10 million a year. You have the infrastructure for $10 million, but you only have $5 million year revenue. That is your greatest constriction point, right. Where you have maximum infrastructure, but you haven't yet realized the revenue that will be able to utilize the infrastructure. So now you've got this like huge amount of nut, right? That you have your monthly nuts, huge. But you haven't got the income. So then what you do is you then go, okay, we've now got the capability to handle all these clients. Let's ramp it. And then your revenue builds and then your profit margins open Back up and they open back up to the widest possible margin.
Right.
Which is like, but depending on your model and all that kind of stuff. Like let's say you have a gross profit of, of 75% and you have a net profit of like at its worst five and at its best, 30.
Yeah.
Right.
For those of you who don't know between net and gross is your gross is more based on your model. So it's like what is your pricing model and how does that compare to like the cost of goods sold?
Right.
So you're like, you can up your net through a series of bad decisions or overspending, but you'll really your business if you don't think about your gross. Because your gross is like what does it cost me to make a sale? Like, like what is that? And you, you need to be in like just the basic delivery mechanisms that you need to be in the 70s.
Yeah.
You need to be for, for like if you like you don't have to be but for the industry that we're in, it's where you want to be.
Yeah, right.
Like you can artificially set your, your profit margins by reverse engineering your budgeting to suit a specific number that you're aiming to. But like with, with Sales Sniper, we have that much infrastructure that the infrastructure that we have allows us to do to take on these other businesses without adding on staff and additional costs. Because we've over infrastructured to the point of probably 40 million.
You know, it's fun maybe it's funny like we've over, we're over infrastructured in some regards and under other.
Yes.
So like right now we're under infrastructured in middle management.
Under.
Under.
Yes.
But from a sales rep perspective and from like a head shed perspective, we have a ton of people. So we have a ton of really expensive executives who are awesome at what they do.
Right.
And that's the key to get right first if you're willing to suffer.
Yeah.
And we have a ton of really good sales reps.
Right.
What we don't have, which, which are being trained at the moment is the middle management layer to take the burden away from the higher level managers so they can focus more on what they need to do which is being done at the moment.
Right.
But anyway so but we could take on 10 new done for you accounts. It wouldn't do make a difference.
Right.
Like we have the people, we have everything. We can do it. But yeah, so as you hit those points. So there's these really scary parts where you're like Our profit is super constricted now. We have to go all in. So it really requires you to just go all in. But you always also have to realize like. And I think it's a lot of it is gut feel unfortunately. I'm sure it shouldn't be but it's like with the people that we have, what we're actually doing, how much can we actually handle?
Yeah.
And then, and then it's like, and then it's like when do you start re infrastructuring to go to the next one? Because again those nexus points are like you hit the point where what you don't want to do is go past it. Where you're like. Which we did when we first started fitness sales sniper. We all this revenue, no infrastructure.
Yeah but.
And then your business is a shell.
And then we're just like what happened? Because we didn't catch on because we didn't know.
Yeah, you say that.
I'm sure people have been through this process before, have run 100 million dollar companies have that all documented. Understand it don't need to use Garfield, but they probably did until they got to that point.
Yeah.
I've never read a book that talks about it.
There's not enough.
It's like the, it's like to warrant writing one the infrastructure conundrum. You know, I mean maybe we'll write a book. Yeah, it's like how much do you back yourself? And so like kind of going back to those nexus points, it's like those points that you guys are seeing if you're a sales rep is you're where the business is doing this.
Yeah.
It's because.
Right.
It will go up.
Right.
So let's say it's 300. You get it to 350, 375. And now the delivery mechanisms fall away. And then you get refunds and you get people pulling out because the program sucks. And then it goes down to 250 that self equalizes because that's really where the business should be. Should, should be. If it's really comfortable. Like your business doesn't want to be more than like 80% capacity.
Right.
Like at gyms we used to always say a gym needs to run like 80% capacity. If it's 100% capacity. It is disgusting. There's too many people. It's too crazy. 80%'s perfect.
And people start leaving because.
Yeah.
And then you go down. All of a sudden you're running at this 70, 80% capacity. And then that brings it back up to here. Which Is like the red line, which is that 300k or whatever it may be.
Right.
And so it's like, and that's same 2550, 100. So what you guys are seeing, it's like if you're a business owner and you're, you're, you're kind of experiencing that, then potentially you're just not operationally infrastructured.
Yeah, Right.
Comment operations. If you guys want help with that and we can do more videos about it or reach out to you about some of the stuff that we do about it. We took on a guy called Spencer Burnett who built out a lot of that stuff for us. Like did a physical build out and it changed our business.
You watching Spencer, an absolute genius.
So yeah, Spencer is a legit savant.
Yeah.
So anyway, let's go back to that 30k mark.
Right.
I just want to do one thing real quick is if you're a sales rep, right. And you're experiencing this like where the business is just doing that, that business is never going to go past there.
Right.
Unless you see either consultants come in or you see some big key hires for like expensive people that are not VAs.
Yeah.
Right.
Then you know, if it's been there for six months, 12 months, it's never going to change. There might be months at 400 months, like, you know what I mean? So you got to go, okay, this is the max I'm getting here. I, I either get real comfortable here and figure out how I can make a bit more money or whatever. Or you go, okay, this is the max, this opportunity. I want to look for something else.
Yeah.
I think like a good way to tie that up is perspective. So that business, you're at 30k, right. Typically in that position you're a sole director, owner, operator, like a one man agency or something. One man agency you've got.
Or you see some big key hires.
Yeah.
For like expensive people that are not VAs.
Yeah.
Right.
Then you know, if it's been that for six months, 12 months, it's never going to change. There might be months at 400 months like, you know what I mean? So you got to go, okay, this is the max I'm getting here. I either get real comfortable here and figure out how I can make a.
Bit more handful, maybe five to six clients. You're in charge of taking all the sales calls, you're in charge of delivery, you're in charge of building things, working your ass off, doing those 18 hour days in that hustle mode. Because whilst we probably.
Laptop lifestyle, baby.
While we on that. There is a phase in business where you have to do it because you have. The only way to get through to that, that next stage whilst being able to afford things is by you taking on all that response.
We did it, man.
Yeah.
We did literally everything.
We did.
Money or whatever. Or you go, okay, this is the max, this opportunity. I want to look for something else.
Yeah.
And now we make Marco to everything.
Yeah.
So thank you guys.
But.
And that's what happens when you go through those hard yards. You get rewarded at the end. Right. So you're at that stage where.
Well, as long as you're willing to.
I think like a good way to tie that up is perspective. So that business, you're at 30K.
Right.
Typically in that position, you're sole director, owner, operator.
Like a one man agency.
One man agency.
You've got go back to zero.
Right.
So I can afford that.
Yeah.
And then we, when me and you brought.
Yes.
When me and you brought Marco on, we sort of couldn't afford that either.
And we paid him more than we paid ourselves. Just to be like, this is the guy. We, we have to have him. We're gonna have to give something up here.
Exactly.
Most business owners wouldn't do that.
Yeah.
It's the resetting. It's the, it's the willing to reset.
Yeah.
And they're willing to go, okay, I'm making this much now to bring this guy on. I'm now going to sink down to this much. I'll just do it myself. And that's where there's a lot of stall points.
Yeah.
Or you try and go really cheap where it's like, there has to be an element of like, as a business owner, there has to be somewhat of a leap of faith moment. Or a lot of leap of faith moment.
Handful, maybe five to six clients. You're in charge of taking all the sales calls, you're in charge of delivery, you're in charge of building things. Working your ass off, doing those 18 hour days in that hustle mode. Because whilst we probably.
Laptop lifestyle, baby.
More than one.
Yeah.
Where you go.
I will back myself while we on that. There is a phase in business where you have to do it because you.
Have the owner to make this work.
Yeah.
We're about to take more of them as well.
Yeah.
You know, but I mean the bills.
That we're getting from accounting firms and stuff is starting.
Quote of 70,000 for lawyers, company restructure. It's like, okay, okay, great, cool story. You must be good. But the way to get through to that next stage whilst being able to afford things is by you taking on all that response.
We did it, man.
Yeah.
We did literally everything.
We did.
And now we make Marco to everything.
Yeah.
So thank you guys.
Yeah.
So like you're in that position, you can't really, you have to run the marketing as well. You can't afford an agency to do it whilst being able to, you know, you can't afford a sales thing. So you got to break through that cycle. At some stage you're going to have to take the leap of faith to one either handoff delivery.
But.
And that's what happens when you go through those hard yards. You get rewarded. Handoff marketing or handoff sales, you claw your time back. Then all of a sudden you've got the freedom because you've handed that off provided they perform, which is scary because you don't know if they will to take that next step and start building infrastructure for that next level which is creeping up to that hundred thousand dollar a month mark.
Yeah, exactly.
So you're onto a whole new set of problems.
Yeah, yeah.
Then it becomes about, you know, at the end.
Right. So you're at that stage where.
Well, as long as you're willing to go back to zero.
Right.
So like afford that.
Yeah.
And then we, when me and you brought.
Yes.
When me and you brought Marco on, we sort of couldn't afford that either.
And we paid him more than we paid ourselves. Just to be like this is the.
Guy we hiring becomes a real issue.
Yeah.
And like by that you've solved those problems. You got through that nexus point, you get to that 100, 150k a month mark and all of a sudden now you, you've got some sales guys, you've got probably a couple of EAs at that stage or somebody doing administration work for you.
Fractional cos are really, I think really good. You know what I mean?
So like we have to have them. We're gonna have to give something up here.
Exactly.
Business owners wouldn't do that.
Yeah.
It's the reset. You can't do anything without consistent sales and marketing.
Cannot.
Like you need. Consistency doesn't have to be stellar, but consistent sales and marketing. And you need multi channel marketing.
Yes.
Like you have to have multi. You can, it's the, it's the willing to reset and the willing to go, okay, I'm making this much now to bring this guy on. I'm now going to sink down to this much and not. You cannot effectively grow a business with single channel marketing. You I'll just do it myself. And that's where there's a lot of stall points.
Yeah.
Or you try and go really cheap and have a successful like I know a few businesses that do like half a million dollars a month and they only have one marketing channel. But would I consider that a good business? Would you know I would not.
Would you consider it there in three years?
No, definitely not. Exactly heap where it's like there has to be an element of like as a business owner there has to be somewhat of a leap of faith moment or a lot of leap of face moments where yeah where you go I will back myself like now is that person doing it for that. And again this is where like choice. I like to understand the business owner's choices and this has helped me as a sales rep when I could understand the business owner that I was selling for or if we're doing done for you sales or for consulting, whatever it may be. Understanding their thought process is really important because like some people think that to make this work.
Yeah. We're about to take more of them as well.
Yeah.
You know, but they want to scale.
To the moon but they really don't and that's fine. There's nothing wrong with that. Like if you can run a 200k a month business and take out 100k mate, go for it. Actually one of the acquisitions that we're recently doing, that's basically the goal is let's just get it to where it pumps out the most amount of money possible with the least amount of input and let's just run that autopilot.
Right.
So like let's have everyone make a bunch of money. You know like what I mean the bills that we're getting from accountant firms.
And stuff is starting quote of 70,000 for lawyers on company restructure. It's like okay, okay, great, cool story. You must be good. But yeah, so like you're in that position, you can't really. You have to run the marketing as well.
What's the threshold?
Right?
Like what's the number where it's maximum profitability for minimum input.
Yeah.
Like because below that it's not worth it. Above that it's too, it's not too hard but it's like we. Then again we have to over infrastructure.
So you can't afford an agency to do it whilst being able to, you know, you can't afford a sales thing.
So it's like before we get back to that same level of profit, we now have to increase by X amount which is like okay, now we need more sales.
More.
Yeah, more this. More this. Like what's the number?
And speaking of that, the, the number is really important because we want to get it to that point where it's just before it goes into one of.
Those Nexus 80% capacity.
Right.
You got to break through that cycle. At some stage you're going to have to take the leap of faith to one either handoff delivery, handoff marketing or handoff sales. You claw your time back, then all of a sudden you've got the freedom because you've handed that off provided they perform, which is scary because you don't 80% capacity because that is when profit margin is the highest and we have every intention to sell that company for a good multiple and you get the highest multiple based on ET or profit margin.
Yeah.
And, and it's actually I asked this question the other day. Consistency is the most, it's not the number.
I don't know if they will to take that next step and start building infrastructure for that next level.
Right.
It's not like level of profitability, profit margins, it's just the consistency. So it's like how do we get that business to be autopiloted to where it's making say 250, $300,000 a month regularly. Consistently.
Which is creeping up to that hundred thousand dollar a month mark.
Yeah, exactly.
So you're onto a whole new set of problems.
Yeah, yeah.
Then it becomes about, you know, hiring becomes a real issue.
Yeah.
And like by that you've solved those.
With a great profit margin or an acceptable profit margin, but it's the same every month and it doesn't move. And that way you can sell that thing and go, hey, this is how much this thing's worth. Look how consistent it is. We don't do a thing. Do you want it?
Yep.
And it's give me three times revenue.
I'm out of here.
It's exactly right. Like 6% profit margin, 250k a month. There's problems. You got through that nexus point, you get to that 100, 150k a month, consistent for 4 months. Bang up for sale.
Yeah.
Highest evaluation possible.
Yeah.
Okay. Then at 100k months you probably have a single channel of marketing. You've got sales guys that are doing okay, you're marking. All of a sudden now you, you've got some sales guys, you've got managing, you've cycled through problem multiple media managers.
And yeah.
So probably a couple of EAs at that stage or somebody doing administration work for you.
Fractional CEOs are really, I think, really good. You know what I mean? So like, you bought an extreme. You're at 100k a month, right. So you have single channel consistent marketing usually. So what you need to do is focus on multi channel marketing.
Right.
And then gearing up for how much delivery you want to have. So what I would be focusing is I was like, okay, what? You can't do anything without consistent sales and marketing. Cannot, like, you need cons. How do I get my 80% capacity to be a lot more than what it is? Well, consistency doesn't have to be stellar, but consistent sales and marketing and can I reasonably expect from a second or third channel, how do I start to create branding awareness? Like, you know, it's funny, I was talking to Tay today and he, you know, he was the vegan trainer and all that kind of stuff. Great social media presence. He literally, you need multi channel marketing.
Yes.
Like, you have to have multi. You cannot, you cannot effectively grow a business with single channel marketing. You have the exact same marketing strategy that we did, which is just awareness ads.
Brand.
Yeah.
And he got to 800 grand a month in his coaching business.
Right.
With just awareness ads. So the strategy can have a successful. Like I know a few businesses that do like half a million dollars a month. It's the same strategy we did at Sales Sniper. I think we've talked about it where we have a series of value videos and they only have one marketing channel. But would I consider that a good business? And then you watch one value video, then you get targeted with another one. If you watch that one, you got another one. That one got another one. That one good enough. And it goes like six or seven videos. No, I would not.
Would you consider it there in three years?
No, definitely not.
Exactly.
Like now is that person doing it for that? And again, this is where like choice. I like to understand the business owner's choices. And this has helped me as a sales rep when I could understand the business owner that I was selling for. Or if we're doing done for you, sales or for consulting, whatever goes deep. And then the only people who get sent an offer are the people who have watched all those videos. Now we don't have an offer to sell.
Yeah.
Right.
So we.
If you want someone to do your sales for you.
Right.
So yeah, or like consult or whatever. So we do have stuff, but like, it's not really offers that we put out.
Scalable stuff. Right.
Or maybe understanding their thought process is really important because like some people think they want to Scale to the moon. But they really don't. And that's fine. There's nothing wrong with that. Like if in any sense. Yeah. It's not like there's no point doing marketing.
Yeah, right.
Like we get enough inquiries and that's why we did the podcast, that's why we did have the YouTube channel. That's why we have the closing code. Facebook group is to like and why my Facebook, it's to establish our Instagram. To establish, hey, we know what we're talking about and then from there we get enough inquiries. If you can run a 200k a month business and take out 100k mate, go for it. Actually one of the acquisitions that we're recently doing, that's basically the goal is let's just get to where like we've never been short of clients.
Right.
And we have a great referral network to where it pumps out the most amount of money possible with the least amount of input. And let's just run that auto perk through our current clients and the marketing companies that we work with because we do a good job and the marketing companies feed us a lot of clients. Like we have four or five marketing companies that just throw clients at us.
Yeah.
So at that like 100, 150k mark you need to start looking at hiring an operator.
Yeah.
Right.
So like let's have everyone make a bunch of money. You know, like what's the threshold?
Right.
Like what's the number where it's maximum.
Product over majority of that responsibility. Then you probably need a sales manager that can manage that team to get the best out of them.
Or an external one which we do do as well.
Yeah.
Or and with the media you need to start getting that dialed in so the sales team can, can cope and have that operator focus on the delivery systems.
And you want to have it ability for minimum input.
Yeah.
Like because below that it's not worth it. Above that it's too, it's not too hard. But it's like we. Then again we have to over infrastructure have a great project management system in place.
Yeah.
That really helped us. Like we tripled last year and a lot of that. The reason why that was able is because of some of those. It's like before we get back to that same level of profit, we now have to increase by X amount which is like real back end nitty gritty which I don't even look at. Yeah, I assume they're good but I've never logged in. Okay. Now we need more sales. More, more this. More this like what's the number?
And speaking of. They're pretty good and they're excellent actually so.
But they have to be because I'm.
Never going to that the, the number is really important because. Because we want to get it to that point where it's login.
Yeah.
And that's.
Everyone knows this is what it is.
Right?
It is what it is. I wish I could sit here and say yes, I will do that but it would just be a bald faced lie.
Yeah.
And I'm good at some things and I'm not good at other things.
Just before it goes into one of those nexus points.
80% capacity.
Right.
That's for sure. Aren't we all right. Then you get up to like that, that 3, 350, 80% capacity because that is when profit margin is the highest and we have every month mark. And that's when you probably need. You need that those sales almost like a CMO role where you've got someone looking after marketing someone looking after sales and getting the best out of it so there's no leaky buckets. The delivery has to be absolutely on point with the back end operations engine to sell that company for a good multiple and you get the highest multiple based on EBITDA or profit margin.
Yeah.
And.
And it's actually I actually.
And then you need to start hiring a financial controller, probably not a CFO at that stage as someone that can manage the books because chances are you up on tax at that level and you need someone to take over that responsibility and make sure that now you're hiring.
This question the other day. Consistency is the most, it's not the number.
Right.
It's not like level of profitability, profit margins. It's just at a high level you.
Need those processes, you need those insurances in place because the liabilities start to stack up where it. You probably should have had it earlier but you didn't realize until now consistency.
So it's like how do we get that business to be autopiloted to where it's making most likely? Exactly.
Sort of from. Not necessarily speaking from experience but experienced enough to see on average say 250.
$300,000 a month regularly consistently bridge.
A lot of our clients make those mistakes when they do consulting and talk through problems with us. Yeah, I mean we've made definitely some of them.
Yeah, for sure.
But yeah, I think that gives enough of an insight as to Nexus points. There you go guys.
Nexus. All right guys. If you like this kind of content, make sure you like with a Great profit margin or an acceptable profit margin, but it's the same. Subscribe, hit notification bell. All that kind of good stuff, head on over to our website, salesnapper.com every month, and it doesn't move. And that way you can sell that thing and go, hey, this is how much this thing's worth. Look how consistent it is. We don't do a thing. Do you want it?
Yep.
And it's.
Give me three tonight. If you want to work with us, work for us. There's a. I'm sure we'll have some. You know, if you want us to do your sales for you or you want us to consult about that, you can go to crush sales.net, this little calculator there. You can kind of figure out how we're doing and what we're doing. And, yeah, revenue. I'm out of here.
It's exactly right. Like 6% profit margin, 250k a month.
Yeah.
Crush sales dot net.
Buy some merch. Thank you. Managers and things consistent for four months. Bang up for sale.
Yeah.
Highest evaluation possible.
Because I bought a Corvette.
I want to buy a Corvette.
The new ones are dope.
Yeah.
Satin black.
Oh, nice. Yeah.
And Sammy's new car gets here. The new vogue. The new, New Vogue. The big. The big daddy.
Anyway, we just. Yeah, okay, then at 100k months, you probably have a single channel of marketing. You've got sales guys that are doing okay. You went off topic.
Anyway.
Yeah.
So managing. You've cycled through problem. Multiple media managers.
And yeah. So you bought an extreme 100k a month.
Right.
So you have single channel consistent marketing usually. So what you need to do is focus on multichannel marketing.
Right.
And then gearing up for how much delivery you want to have.
Yeah.
So what I would be focusing as I was like, okay, what is our. How do I get my 80% capacity to be a lot more than what it is? What can I reasonably expect from a second or third channel? How do I start to create branding awareness? Like, you know, it's funny, I was talking to Tay today and he, you know, he was the vegan trainer and all that kind of stuff. Great social media presence. He literally had the exact same marketing strategy that we did, which is just awareness ads.
Brand.
Yeah.
And he got to 800 grand a month in his coaching business.
Right.
With just awareness ads. So the strategy. It's the same strategy we did at Sales Sniper. I think we've talked about it, where we have a series of value videos, and then you watch one value video, then you get targeted with another one. If you watch that one, you got another one. That one. Got another one. That one. Good. And it goes like six or seven videos deep. And then the only people who get sent an offer are the people who have watched all those videos. Now we don't have an offer to sell.
Right.
So we.
If you want someone to do your sales for you.
Right.
So yeah. Or like consult or whatever. So we do have stuff but like it's not really offers that we put out.
Scalable stuff. Right.
Yeah.
In any sense.
Yeah. It's not like it. There's no point doing marketing.
Yeah.
Right.
Like we get enough inquiries and that's why we did the podcast, that's why we did the YouTube channel. That's why we have the closing code. Facebook group is to like. And why my Facebook, it's to establish our Instagram. To establish, hey, we know what we're talking about. And then from there we get enough inquiries to where like we've never been short of clients.
Right.
And we have a great referral network through our current clients and the marketing companies that we work with because we do a good job and the marketing companies feed us a lot of clients. Like we have four or five marketing marketing companies that just throw clients at us.
Yeah.
So at that like 100, 150k mark, you need to start looking at hiring an operator.
Yeah.
It can take over majority of that responsibility. Then you probably need a sales manager that can manage that team to get the best out of them.
Or an external one, which we do do as well.
Yeah.
Or and with the media you need to start getting that dialed in so the sales team can, can cope and have that operator focus on the leadership delivery systems.
And you want to have a great project management system in place.
Yeah.
That really helped us. Like we tripled last year and a lot of that. The reason why that was able is because of some of those systems and processes. Real back end nitty gritty, which I don't even look at.
Yeah.
I assume they're good, but I've never logged in.
They're pretty good and they're excellent actually.
But.
But they have to be because I'm never going to log in.
Yeah.
And that's.
Everyone knows this is what it is, right? It is what it is. I wish I could sit here and say, yes, I will do that, but it would just be a bald faced lie.
Yeah.
And I'm good at some things and I'm not good at other things.
That's for sure. Aren't we all right? Then you get up to like that, that 3,350k a month mark and that's when you probably need, you need that, those sales. Almost like a CMO role where you've got someone looking after marketing, someone looking after sales and getting the best out of it so there's no leaky buckets. The delivery has to be absolutely on point with the back end operations. And then you need to start hiring a financial controller, probably not a CFO at that stage. Someone that can manage the books because chances are you up on tax at that level and you need someone to take over that responsibility and make sure that now you're hiring at a high level, you need those processes, you need those insurances in place because the liabilities start to stack up where you probably should have had it earlier, but you didn't realize until now. Most likely.
Exactly.
Sort of from. Not necessarily speaking from experience, but experienced enough to see on average a lot of our clients make those mistakes when they do consulting and talk through problems with us. Yeah, we've made definitely some of them.
Yeah, for sure.
But yeah, I think that gives enough of an insight as to Nexus points. There you go guys.
Nexus. All right guys, if that's kind of content, make sure you like, subscribe, hit notification bell, all that kind of good stuff. Head on over to Our website, sales sniper.net if you want to work with us, work for us. There's a. I'm sure we'll have some, you know, if you want us to do your sales for you or you want us to consult about that, you can go to crushsales.net this little calculator there. You can kind of figure out how we're doing and what we're doing and.
Yeah.
Crushsales.net buy some merch. Thank you, managers and things because I bought a Corvette. I want to buy Corvette.
The new ones are dope.
Yeah.
Satin black.
Oh, nice. Yeah.
And Sammy's new car gets here. The new Vogue. The new new Vogue. The big daddy.
Anyway, we just went off topic.
Anyway.
Yeah.
