Mike Minutes Mastermind 12/23/2022

Alrighty. Good morning, everybody. Let's go and get started. I'm gonna drop these links in here.

This will be the last Mastermind before Christmas. Merry Christmas. We had a secret Santa this morning. I got these fantastic glasses. For the remainder of this Mastermind, I'm just gonna go ahead and wear them. All right, let me hop this into the Facebook group.

See here.

Not gonna lie. Looking at my computer through polar through these glasses, it's not easy. Okay, here we go. Drop that in there. Cool. There was one master or one video from the training from last week that I did not put into the academy. I'm putting in right after. This is a lot. One of the last sessions. So I'll get that updated this afternoon or today right after this and it'll be done. So. All right, let's jump into.

Share. No.

Present share.

All right, Kyle, when you are ramping a location, what do you typically spend per month in ad spend? Do you lean towards Facebook or Google more? We would lean more towards Google.

Intent based marketing. Facebook's cost per click has just gone up so much. However, I'll be talking about this at conference a little bit what I expect next spring. And ultimately, although there'll be less consumer demand, I really think that very few people actually spend their marketing budget next spring. I was talking about Jonathan Patosnik. Can we talk about this specifically too? We haven't seen this type of drawback from marketing since last recession. However, if you look at March of 2020, if you guys remember, for those, there's only about 10 of us back then. But for those of you back then, there was about three to four weeks where cost per click on Google dropped to nothing. And the reason was because no one was marketing. So if there's no advertisers, the cost per click just gets tanked. And so it's gonna be very interesting what's happening next spring. We're talking about a conference. But personally right now at least I lean much more to Google. Google performance max on Google Ads, Google local services. Those are the two things I'd be spending the money on in terms of my spend is when I'm ramping location. The first three months is when I'm trying to spend money on marketing and I'm willing to spend really based on how much they're growing, right? If like I'll do 10, $15,000 in marketing. However, if they're just crushing and they want to keep growing, I'll put more on. If they want to keep going that direction, would it be a bad idea? Not to diversify your investing over the long term. For example, only invest in businesses versus adding stocks, real estate, etc. I suggest as being a long term wealth building strategy and I'm all in. I just don't feel like diversifying. So it just depends who you talk to in terms of what diversification. Right. Like, so some, some people say diversification is your idiots, I. E. Mark Cuban. Then there's other people that will say you need to diversify into, you know, a portfolio of stocks and real estate and all the rest of it. However, if you look at for example, someone like a Warren Buffett that talks about diversification, he actually doesn't diversify very much. If you look at his top five holdings, it makes it literally like 80, 90 of his portfolio. So like Apple is half of Berkshire Hathaway. So.

The reason I say that is because if you are diversifying, it typically means you are going to, you're going to trend towards the mean or the average. And so if you're trying to beat average, you usually have to not diversify in terms of like market returns. So the more and more you diversify, the closer you're going to get to market returns and trending towards 7 to 10% a year. And so typically the further you get away from that number, higher you're typically going more and more towards the thing that you're really, really good at. And you have.

A key advantage over everyone else in. And so as I've stated from the beginning of Augusta, within five years, my goal is to make it where it's very clear that Augusta has that. Are you gonna make fun of me? I'm doing my mastermind with my gift from the Secret Santa. Thank you, Brian C. Okay, so.

Yeah, like, I'm a big believer in like if you're gonna beat the, beat the, the average, you're gonna beat the market. And average returns in the market, you have to be, you have to be above average in whatever field you're pursuing. There's a reason why someone like a Warren Buffett does not do high tech growth stocks. He has no idea. He's been very transparent. He has no idea how to value them. He doesn't know the technology, but he's really, really good at things like utilities, insurance and real estate. Right. So he sticks to those things the vast majority of the time. And that's why it was such a big deal when he bought into Apple. But when you actually strip it back and see that Apple is not a growth stock, it grows like 10% a year, it has a huge stock repurchasing program which he loves. Like very, very key things that he does every single one of his portfolio companies. So I'm a big believer if you are small, you should actually do the least amount of diversification because the chances is that you're listening to someone who's massive and they're talking about diversification. That's why the seventh step of wealth for aggression is diversification and getting into other stuff. It's the last one because it doesn't matter. Diversification is a fool's game until you something to diversify into. Like someone's like I have $100. I'm going to diversify it. It's like, well look like you're just going to get the market average and market average is not going to like do anything special for you. However, taking that $100 investing to a business doing something from nothing like really starting to scale something like that can turn a hundred dollars into something much more meaningful and beat the average return in the market.

So in my, my, my personal opinion, the smaller someone is and the further they are away from their wealth goal, the less diversified they should be because they'll typically have be able to have larger returns. Can we get an email template for failed credit card processes or insufficient funds processed for Zooper, please?

Yes.

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Funds email.

Okay. Yeah.

I'll. I'll get this done. And also make sure that the automation is up for when it.

Comes passing past due. Yeah. So like that's the problem right now is because.

Strike. I'd have to look at this part. I'll follow up on this question.

Heard you mention training video to never give 25% of profit or GM. If I or the owner built the company from ground up Bellingham example, what would be the max? Can you describe the increased schedule until it caps at five years of keeping that position? This is really an individualized basis. Right. So the reason I said this so.

The reason I'm numbering of 25% is of profit sharing to a GMO at the Bellingham shop, for example is the reason it built to that size is because the first five years I literally did not take a single penny from the company and there was no profits to be had. So to then hire someone year 6, 7, 8, 9, 10, whatever. And like you're gonna get 25% of all profits. Like I'm, I'm getting the profits I didn't get from growing it for the first five years and you know, doing like craziness. Right. So I'm not gonna give them 25% of that. I will give 25% to a GM that runs from the beginning. And they're really scraping by the first year or two. But then in year three, four, five, that becomes meaningful money if they actually stick with the job. Right. So if someone did a GM position into year five, what I'm expecting them to, on top of their salary, be able to take 40 plus thousand dollars in profit sharing at the 25% marker. That's meaningful money for them, but they deserve it because the first year or two is not like that. You're not making that kind of profit sharing. So it just incentivize someone to stick around a little bit longer. The max percentage of the location that I have built, I would probably put around 10%. It just depends on the size of the location though, right? So like the Bellingham shop.

The size at which it built, that's why it took five years of no profits, is because we scale it so big. Like if you don't do that, you can do it in a much faster time period. And that's what I'd recommend for the majority of people. But if I'm doing a larger location, the max I'm probably gonna do is 10%. So.

Can you describe the increase schedule until it caps at 5? Keep that position? Yeah. So like if you wanted to, if you wanted to, you could say, for example, you're giving someone, it's an established location, you're giving 5% right now and like 10, 15, 20 than 25%. That would be interesting because like over the course of that time, you basically are no longer now in the daily operations at all. And you're, you're okay with just the next few years of having more profits coming to you and then you're giving it more to them. That'd be cool, right? Like I'm. I'm definitely thinking about this like in terms of even like Dylan and April, the Bellium shop. Like I want them to be able to stay there longer term. I will probably end up giving more profit sharing to them if they stay on longer, simply due to the fact that I don't want to have to always be hiring every single year a new gm because they keep going, started their own location. Looking at you, Marcus. So I'm just joking, but I would probably do that. Right. So Bellingham, for example, I don't think I'll ever move to 25 because that's just a lot of money. But I would definitely be moving that up over time. I think if just to keep a general manager involved and wanting to be there. So I don't really want to move their base pay, but I'd rather move their profit sharing. And if I move that one up at the Bellingham shop for April and Dylan, that's definitely in the cards as we move in the future, because I just don't want to have to be hired in a new. It's just a hard position to fill versus a working gm, so.

All right, everyone, it's daytime. Let's go. All right. Hope you have a fantastic rest of your weekend. Very Merry Christmas, and we will see you on Monday.