Mike Minutes Mastermind 11/21/2022

Hey everyone, hope you're doing super well. Happy Monday. Let's rock and roll. Let me drop this in here real quick. Boom. Okay.

A couple things. I made a couple changes while I was away to the monthly coaching call document that we use for your coaches. It'll probably go into effect at end of this year, beginning of 2023 using some of the stuff that we have been talking about recently. Let me show you what this is going to look like. It's the back of the docket they currently.

Why does it keep doing this? Sorry screen that is being stubborn. A couple things on PDF in a second. I'll share this one. So on the back of your coaching card right now is blank. What we're going to do going forward is actually give you the backside to fill out. Okay? So this is going to be the document that you are going to have on the back of your coaching call document. It goes over what we've been talking about recently with capacity, capacity based growth and figuring out what amount of revenue you increase to optimize profit. So we talk about that, what you learned this month to be a little more reflective and talking about what you learned specifically and then also going over a checklist of the systems that you have implemented or have not implemented. So you know, become a five star general. If you get all these five things checked off of list here for systems. This is what we're going to start again end of this year, beginning of 2023 when you get that coaching call card. Oh snap. My bad. You can't hear anything here. Can anyone? I can hear it.

On my audio levels. So yeah, beginning of next year you'll start seeing these coaching cards. When they come back to you in the mail, you'll fill up the back side. It'll be up to you to do that. But we can absolutely help with you help you do that on a coaching call as well. Especially the first few. See the thing, the reason I'm wanting to do this is you start seeing and understanding capacity based growth and know exactly how big or small your business should become. Because if you're starting to get above capacity, you might actually say look, look, we need to either constrain capacity to maximize profits or B we go get more trucks and hire more people to increase capacity, et cetera. So we'll be working on getting those out like I said, end of this month and next year for your coaching call. So get that in the mail, fill out the backside, be a little more reflective in terms of what you learned as well as which systems are being implemented. And this is actually something that we talk about when we talk about like annual awards is those which systems have been implemented? Are they representation of the brand by having all those systems that we believe in implemented? So cool. Let's jump into questions.

Right? I think there's a few that popped in.

There we go. Cool, man. This gets more complicated all the time. Okay, there we go. All right, question number one is from Audie. Using our location YouTube channel to upload quick short videos. Is that what you meant by bringing brand awareness to Augusta? Yes, if you have. If you have the ability and capability to be able to do this, I would highly recommend. Definitely is helpful on a brand awareness perspective. If you have a hundred of us that are all posting one video every week, I guarantee one of those are going to get million plus views. And over the course of time it really helpful. We'll probably talk about this a little more at conference and talking about specifically the strategy behind this. But the amount of brand awareness that we can all achieve by just having as many of us doing shorts which can literally go. You can have 20 subscribers and get a short that does a million views. It's not like that. When you do long form videos you need a subscriber base. But shorts, TikTok, et cetera, it's feeding the audience based upon.

Their interest instead of psychographics. All right, Max, this is a long question. All right. Whenever an estimate is sent by command center, they attach a video that features Liz. Oh yeah, we've already talked about. I think instead of attaching the video, what if we hosted that video on YouTube and embedded the link in the picture shown in the email. That way customers can click on the picture to watch the video instead of downloading on attachment. And CC would not have to remember to add the video manually. Plus each location could create their own video that has less stock if they desired, which could slightly raise the close ratio. One possible objection is the video is hosted on YouTube. You won't be able to pretend the video is customized for each client. But I don't think many people are actually convinced that the current video is made specifically for them. So I don't see this as an actual issue. Thoughts? Yes, this is a great point. We are going to be refreshing these on a quarterly basis and this week we'll be getting the new round three set up for that. The problem with doing on YouTube is one, people can see the number of views which you can remove that. Two, they can see the date that it was uploaded. So they know beyond the Shadow it's not. And the next thing like if they know it's not a custom video or even that you're not even trying to make it look like a custom video, then it should be a very like scripted, very much of a commercial piece. And it's like, well why would I attach that to the video to the estimate? So we might play with a couple options of terms of the ability to be able to have a more commercialized. Like here's the steps of the process of an estimate. Like educational. But the whole goal of that video is to make it seem more personal. There are definitely ways you can improve that, including not naming it like the naming of that file name for example. But.

Yeah, so we can improve that. We will update it more often too. So that way if you're sending multiple estimates to people over the course of a year or two, like each spring for example, they get different videos. They do not remember from video to video unless it's like every month or two you're sending them an estimate or you send them multiple estimates in the same one. That's when they start to pick up on it. I would say the vast majority of people minus the naming convention that's incorrect right now would actually think it is native unless they get multiple estimates or they get estimates that are close to each other. So we can improve that and we're going to work on that a little bit to improve that. But yeah, posting on YouTube, the problem is number one, they leave the email and it goes away from the thing that I want them to do which is click on the estimate and then go to the, you know, accept. It takes them to a different app versus when they open a file, it stays inside their email. So they can just quickly go back up, click the link and click Accept. Secondarily they see the date and they see the views depending on how you set up the unlisted video. And so if you're going to not even try to make it look like a personalized video, you got to go very commercial. Which is fine. It's just there's not as much of a use case unless you literally are. It's more of an education. Like this is the next step of the process. I think it's such a simple process of like click on the link, click accept, you have questions, give us a call that making a 30 second video minute video is kind of a waste of their time. So we're going to, we're going to address this, we're going to test a few things out and at the very least be changes out on a quarterly basis so that when you're sending people like an annual fall cleanup, they get every year that is different from year to year. Although if you're, if there's a year between estimates, I can almost guarantee they're not remembering that. So. And honestly a lot of the, a lot of the reviews I see coming in do mention those and they do think they're personal.

But it's not like we're trying to necessarily dupe them into saying like this is a personal video and I made this specifically today.

So. Yeah, but we'll definitely test it because you can do a commercial one. It's more like an educational how to get how the estimate process works. I just don't know if there's a lot of value to that because the graphic of the body estimate kind of walks them through that process. So.

Watch your videos on capacity and asset based growth. With all of our profit being past break even and then past labor capacity, assets capacity is greater then. Read this correctly. I've been watching your videos on capacity and assets growth. With all of our profit being past break even and then past labor capacity of assets capacity is great than labor capacity. Yeah, I think I'm following. Would you say that the profits are also in debt services?

Like say you have $2,000 a month in debt service as the business matures. Would you say that some hidden profits are in the debt category as we mature in terms of. So that would be a considered fixed expense. So when you look at what we that the video I recorded last weekend for everyone, that, that, that service would be basically increasing your fixed expenses. So if you can bring your fixed expenses down, that is Overhead debt service, et cetera. Yes, your profits will be increased.

Was just wondering this part on if we, if we should let a location pay off debt before moving on to another location or if it doesn't matter much at the bottom line, it just lets them run out and expire. Yeah. So by having the debt you're basically going to be running it where your break even point is higher because your fixed expenses are higher because you have debt service that you have to pay. So the question is can you run as a profitable location to be above your debt service? You can still pay the debt, still be profitable consistently. Then in that case it seems if your growth, if your goals are grow, grow, grow more locations then it seems like it makes more sense to just keep getting more locations that are waiting to pay down each one pay them off. But if you're struggling, especially during the winter and the slow months to pay off your fixed expenses. And your break even is very high because you're leveraged. That gets scary. Right. So what I'd recommend doing is doing your first location if you're going into a little bit of debt, seeing like running the math on your break evens. And this is why we have in the back of this coaching call, the coaching call document changed. Knowing what that number is. And okay, how often am I going to go under that break even point throughout the winter and lose money? If I pay off my debt, I'll be just fine. But If I have $1,000 or $2,000 a month of debt, where does that put me? How long am I underwater and can I hold my breath long enough during those winter months? That's the thing to be thinking about. But yeah, you have a really good grasp after one location in terms of like how fast you ramp it up. The, the capacity of that general manager. Because remember, even on this document, I have personal capacity as a limiting factor. We talk about in the videos, if you have a GM that, that their personal capacity is the capacity for that location. And so.

If you can, if you get a GM that can scale up very quickly, in three months, you, you should be able to get to profitability. It could take a year, year and a half. If someone's a lot slower at growth, especially if you have leverage where you've raised that break even point up higher. Right. So.

All right. Another question came in here. Thanks for the clarification about the estimate video. I think an education would be valuable. Yeah. So if you wanted to, you could theoretically, you know, if you wanted to make an educational video and personalize it, you could just change your estimate document, take out the picture that says, hey, there's an video attached for you. You could do that by all means. And then command center would be like, oh, there's not. I don't have to attach in a video here. But.

For now I think we're still going to try to go after the personal aspect. But if you made a video, this is probably Vlad who asked this question. Feel free to take out the picture inside your document, put in the YouTube video. Just know that there's no idea that someone. I think it's personalized. And a lot of people call in the command center. I do believe that video is personalized. And they will say like so and so just sent it to me. Can I talk to them? And then it's like, well, no, I can help you. We are all in the same office, so. Oh, sorry, it's Max. My bad. So. All right, cool. And that's all we got for today and yes, perfect. I'll have a few more announcements next week in terms of conference. I'll probably need you all to sign up. How many people are coming just for the sake of food on that first day on Wednesday evening that the buffet that we're going to be doing. So I'll probably have that sent out here in the next week or two. So if you are bringing family, team members, etc. Just make sure we fill that out and then remember that your first two people can come obviously the franchise part and then if you they want to say the rest of the time the first two people are free. It's all included in the handle fee that we all charge as franchisees. So. All right, that's all I got for today. Hope you all have a great day and we'll see you tomorrow.