I Built 3 $100,000,000 Businesses in 9 minutes

I'm gonna solve three massive business

problems that gonna take you from 10 to

100 million dollars and at the end I'm

going to walk you through the framework

so that you can apply this to your

business your work or your personal

brand I recently spoke an event it had a

q a section and there were three

different business owners that presented

with different problems one was an

employment setting business and they

knew how to set appointments and build

outbound teams for agencies coaches

Consultants whatever the second business

was a marketing agency for HVAC business

owners the third was actually a very big

influencer 30 to 40 million subscribers

across all platforms with the objective

of making more money so each of them had

very differently phrased questions but

they were all suffering from the same

constraint and it wasn't what they

thought it was so the first business

that asked a question was an employment

setting business and he was saying that

his problem was that he needed to get

more customers which by the way most the

time that's not the problem it's usually

because the customers you have keep

leaving and that's the real problem and

when we look at businesses to invest in

at acquisition.com we operate off of a

singular concept which is the theory of

constraints a business will grow up to

its constraint and then it will grow no

longer most entrepreneurs continue to

work on the things that they enjoy

rather than the things that the business

needs usually because they haven't

actually identified the correct

constraint for example if you have a

three-step sales process and you get 50

to go through step one five percent to

go through step two and then fifty

percent to go through step three you

could improve each of them by ten

percent but which of them makes the

biggest difference in your business

going from 5 to 15 triples the business

whereas the other ones only

incrementally improve it by twenty

percent he had a very low quality of

customers the vast majority of customers

didn't make enough money they didn't

stay long enough they didn't have enough

skills Etc that was what he thought he

had to solve he said okay of all of the

companies that you've ever worked with

which of them made the most money off of

the appointments that you set right and

you had a very specific answer of what

type of Avatar he did best with and so

there's two directions for that business

one is you Niche down on your service

delivery and say these are the only

types of businesses I'm going to take

because they're going to be worth more

stay longer referrer Etc that is

probably the easy easiest next step for

that business if I were gonna own this

business and I transplanted my brain and

my experience with his body that he

could own half of a 50 to 100 million

dollar business that he grows over the

next five to ten years picking the most

valuable business that he sets

appointments for what would the

marketing spend be of a business that's

doing 50 million dollars a year

realistically probably somewhere in the

neighbor of five to ten million dollars

a year so he could either partner with

that business or spend a year or two

learning how that business works so that

then he owns both sides of it if you

partner you can usually go faster but

you give up some of the upside because

you slice the pie it's up to you because

most business owners the reason they

don't create valuable businesses is

because they have to keep doing the same

work over and over again and they don't

get credit for it basically sentenced to

this terrible atlas-like existence of

rolling the boulder up the hill and then

rolling it back down every every month

but if the team that he built was 50

outbound guys this month and then next

month he starts at 50 because it's all

within the same company and then does

another 50 and then another 50 D six

months later he's got 300 outbound guys

that are all still working for him all

generating Revenue that he is owning a

slice of all of it business number two

was the HVAC agency this is a business

that markets for HVAC companies 850 or

so clients in that Niche and their

running campaigns across 50 different

local markets if he's able to generate

leads and fill up 50 different HVAC

Services pipelines because of his

marketing prowess he probably has the

marketing skill of a 50 to 100 million

dollar HVAC business if you have a five

million dollar marketing agency then

it's reasonable that some of the clients

that you serve are making 50 million

dollars in Revenue off the services

you're generating and you're getting

none of that you're only capturing the

service fee the more steps you take

towards owning the result the more

you're basically just doing the business

for them but at a certain point you are

the business and so it makes sense for

you to own the economics of the business

either you've got to learn the HVAC

business or you partner with some

someone who already knows it or you

could buy one and with your marketing

prowess you juice the hell out of it

most people will try and buy it but then

also try and keep this agency thing

going but sometimes you got to take a

half step back so you can take 20 steps

forward the fastest way to build a 10

million dollar business is often not the

fastest way to build a hundred million

dollar business if you wanted to build a

building that was 10 stories tall you

would start with a very different

Foundation now imagine you built a 10

story building and then said okay I want

to build 100 story building using the

same Foundation you wouldn't be able to

but that's exactly what most

entrepreneurs do when they're trying to

scale and they wonder why they're stuck

is because they built it wrong to begin

with because they were in the wrong

opportunity vehicle one of the big

things that took me too long to learn

was it's the size of the slice of the

pie that matters not the shape of the

slice of the pie they obsess about the

shape of the slice rather than having a

slice that's like this of a much bigger

pie the average IPO founder when

accompanying IPOs owns 12 and a half

percent of the company they found it

because the more people you make money

the more money you also we make the

third business was the big influencer

business dude 30 40 million subscribers

across all the platforms and they were

focusing all of their attention on how

do we get more high quality videos out

and when I asked them what problem are

you trying to solve they said we want to

make more money you're seeing your

business as this box of media and trying

to make more better videos which if you

want to do brand and just continue to

build a brand before making us that

would be the right problem to solve but

they were at 97 out of 100. they're a

point zero zero zero zero zero one

percent Creator so do we really think

that they're constraint of their

business is that they aren't good enough

at marketing no probably not you guys

are trying to take your 97 out of 100

Media company to a 99 out of 100 Media

Company when the objective you said was

to make more money and you have no

product that you sell so all of your

monetization relies on sponsorships and

AD and AD Revenue which is typically the

least efficient way to monetize because

anyone who pays you for a sponsorship is

making a huge Arbitrage on your brand

and your value given the amount of

Impressions that these guys were getting

which when they don't make videos we're

getting 100 million views a month when

they don't post anything new that kind

of thing is a company that's 100 million

plus in Revenue so they have the

marketing department but what they don't

have is a sales department they don't

have a product department they don't

have customer success they have none of

these other departments they're 0 out of

100 on all these and so the constraint

isn't going 97 to 99 it's going from

zero to twenty on these ones what are

the choices I have here version one is

if I've got an average consistently

comes to me I may be able to negotiate

some sort of equity getting even 10 of a

company that's worth 100 million dollars

and then you put all of your effort

behind it and make it a two or three

hundred million dollar company that's a

significantly better outcome for many of

them than what they're currently getting

paid just video to paycheck right the

second option is to say okay is there a

category of products that continue to

pay me the most out of all the

advertisers just do what Amazon does see

what's already selling and then clone it

and make it your own and put your name

on it and make your version yours and

better if you do that then you own the

entirety of that thing but in order to

do that you probably if it were me I

would go snipe some of the topics act

that some of those companies and say hey

you're currently an executive here would

you like to own a slice of my thing I'm

happy to own 70 and get three of the

best guys over have them build their

boxes behind my thing that's the fastest

and easiest way the longer maybe bigger

money way is if you do it all yourself

but that's always the trade that you

have to make as an entrepreneurs how

many new skills do I have to to have in

order to pursue this new opportunity

versus the ones I currently have the

third opportunity for them is probably

the least operational risk for accepting

the fact that they just like doing media

and that's what they jam on and they

don't want to touch either these other

business components ending themselves as

a creative shop that knows how to make

viral videos that they can transform

into ads and that's where you go from

being a really good Creator to being a

Madison Avenue agency that makes ads

that Crush most influencers are getting

paid based on the Impressions that they

are getting the brand for free based on

their audience but where the real money

is made is where you take that Tick Tock

video that YouTube short that Instagram

video that number it is and then they

put a million dollars of AD spend behind

it when it's already shown as a winner

and then it goes from being shown to 5

million people in your audience to a

hundred million people that it converts

from cold ad spend has no limit on reach

as long as it's profitable so they can

always expand beyond your existing

audience which means that you get to

capture all of the upside based on how

skilled you are as an Advertiser so

those would be the three paths for that

particular type of business it's not

like okay well I'm not one of these

three businesses now what I should do

but it's actually the framework that we

approach the problem with which is one

what problem are we trying to solve in

each of these businesses they wanted to

make more money the next one is over

what time Horizon if you want to make

more money tomorrow the number of things

you can do is very limited if you want

to make more money in 10 years you take

a very different play if the amount of

time it might take to build 100 story

buildings Foundation might take the same

time it takes to build the entirety of a

10-floor building above the surface

somebody else building a 10-floor

building might happen way faster than

you because as yours is just continuing

to build this base before you start

building up the next question which

problem would we prefer solving or which

problem do we feel like we're more

equipped to solve or which problem is

easier because if you start framing it

in terms of the problem that you're

gonna have to solve to be successful it

actually makes it much more controllable

for you I would say well which of these

do we feel more equipped to do now at

acquisitions.com we are really good at

recruiting which is how we scale all the

companies we have recruit Talent we've

already been there done that and so we'd

probably say hey we feel really

confident that we could recruit somebody

in and put seed capital in to get it

going then we'd own the whole pie so for

us that would be a problem that we feel

very confident in solving and gives us

the most upside you have to answer that

for you given your skill set your

resources and your experience