Dan Martell - October 07, 2025


How to Make Money Like The Top 0.001%


Episode Stats

Length

24 minutes

Words per Minute

205.84822

Word Count

5,085

Sentence Count

225

Misogynist Sentences

1

Hate Speech Sentences

2


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.000 Have you ever wondered how the top 0.001% make f**k you money? It's not from a salary,
00:00:06.340 it's not from investing, and it's definitely not from real estate. It's from being a business
00:00:10.580 owner. I know this because I went from broke at 24 to selling my first company for millions at
00:00:15.860 28. Since then, I've built and sold multiple software companies and now own a portfolio on
00:00:21.080 track to be worth a billion dollars in the next three years. Most people think getting rich is
00:00:25.600 about making a lot of money, when in reality, it's about owning a business that's worth a lot
00:00:30.440 of money, and knowing how to increase the enterprise value, which just means how much
00:00:35.460 somebody's willing to pay to buy your business. And today, I'll show you exactly how to do it
00:00:39.440 step by step. Step number one, make your revenue predictable. Kind of simple, but buyers will pay
00:00:46.580 top dollar when they can count on your income, meaning that your revenue becomes predictable,
00:00:52.960 Durable.
00:00:53.560 That's the language.
00:00:54.440 When they look at the trailing 12
00:00:56.060 and trailing 24 months of your business
00:00:58.100 and it just keeps going sideways or ideally up,
00:01:01.120 a buyer's gonna pay more for that kind of business
00:01:03.140 because they can predict in the future
00:01:04.940 it'll keep doing the same thing.
00:01:06.660 Just think about your phone bill.
00:01:07.980 It's why telecom companies are worth so much money
00:01:10.580 because you pay the same every month.
00:01:13.120 And look, when I share this,
00:01:14.140 some people are like,
00:01:14.660 well, I don't have reoccurring revenue.
00:01:16.180 But check it out.
00:01:16.860 My brother's a home builder.
00:01:18.120 He started selling lawn care and snow removal
00:01:20.640 as a contract to the people that bought home from him.
00:01:23.240 My buddy Nick owns a sign company.
00:01:24.680 He started selling maintenance contracts.
00:01:27.000 I sell software.
00:01:28.240 Guess what?
00:01:28.960 Subscription revenue is a beautiful thing,
00:01:31.120 but every business has the opportunity
00:01:33.140 to build a reoccurring predictable revenue.
00:01:35.640 You just gotta be creative.
00:01:36.940 Ask Chad GPT.
00:01:38.220 It's right there.
00:01:38.940 This is what the money people call durable revenue.
00:01:43.100 Durable revenue is great,
00:01:44.340 but what makes businesses thrive
00:01:46.040 is making profit on that revenue.
00:01:48.040 So step number two, make more money on the stuff you sell.
00:01:52.760 The money people will call this gross margin.
00:01:55.820 It's the money you keep after you've paid for the cost of the service or the product.
00:02:00.800 My kids sell lemonade and they will take your credit card and swipe it on their square device
00:02:05.020 and they will charge you two bucks for that glass.
00:02:07.300 They only paid 25 cents for all the stuff that goes into it from the cup to the lemon
00:02:11.140 to the fricking ice cubes and stuff.
00:02:13.360 So that means that they make $1.75 of gross margin.
00:02:16.860 see the best companies focus on increasing their gross margin everything is around a conversation
00:02:22.220 to do that because the more you get on gross margin the more profit you have left over so
00:02:26.460 here's how you can increase your gross margin number one decrease your costs for example if
00:02:31.820 you look at ai and automation many service businesses could automate a lot of their back
00:02:37.180 office costs their people to deliver the service to make it even better from a gross margin point
00:02:42.460 of view if you buy things that are part of what you sell you can go find a different supplier
00:02:47.420 maybe negotiate higher volume for a lower cost all that hits the bottom line from a gross margin
00:02:52.300 point of view number two is you increase your price this is literally the go-to move if somebody
00:02:56.940 bought your business tomorrow the first thing they would change is your prices but you can
00:03:00.780 pretty much increase your prices until you notice your sales conversion drop a little bit and i get
00:03:06.060 it if you raise your prices less people will buy but people will buy if you market properly if you
00:03:12.060 build the brand properly if you deliver a quality product or service trust me the problem is not
00:03:16.940 that people won't buy it's that you haven't built enough demand to overcome putting your prices up
00:03:22.140 and this one is gonna sting and could be quite scary big piece of advice is that drop the
00:03:28.220 unprofitable clients again if somebody bought your business tomorrow they would probably fire the
00:03:33.100 lower 10 of your clients that aren't profitable the ones you gave early deals to the people that
00:03:38.380 that complain all the time,
00:03:39.520 the ones that are outside your target market today,
00:03:41.880 but you kept them around,
00:03:42.940 but they're not really making you money,
00:03:44.540 but you feel bad for firing them,
00:03:46.440 they gotta go.
00:03:47.400 The easiest way to fire them
00:03:48.580 is just put your prices up to a point
00:03:49.920 where they don't like it
00:03:50.760 and then they just self-select.
00:03:52.140 To me, this is why it's so important
00:03:53.860 to increase your gross margin.
00:03:55.720 First off, you make more money,
00:03:57.340 so you have more money to grow.
00:03:58.960 And second, people that buy your business
00:04:01.220 are gonna be more excited
00:04:02.460 because you have more profit.
00:04:04.220 You're more attractive to other buyers,
00:04:05.560 which creates more demand to buy your business,
00:04:07.780 which means the price goes up everybody looks at like revenue as how cool businesses how much
00:04:12.180 money they make but to me revenue is just vanity profit is sanity keeps the lights on but ebitda
00:04:18.900 is value earnings before interest tax depreciation and amortization is a fancy word that buyers will
00:04:25.380 look at because the bigger your ebitda the more they're willing to pay you on multiples but what
00:04:29.940 a lot of people don't know about making your business more valuable is that profits die if
00:04:34.820 if you have customers leaving through the back door.
00:04:37.380 So what do you do?
00:04:38.180 Step number three, reduce your client churn.
00:04:41.060 Essentially keep the clients you got.
00:04:43.940 If you have a bucket and there's massive holes in the bucket
00:04:47.000 and your customers are water being poured
00:04:49.200 at the top of the bucket,
00:04:50.620 the water flowing out is your customers churning.
00:04:54.220 That means the bucket will never fill up.
00:04:56.400 If the bucket's not full, there's no value.
00:04:58.680 Nobody's gonna buy you because it's an empty bucket.
00:05:01.460 Why businesses don't understand this
00:05:03.800 is because they can't see it, they don't track.
00:05:06.500 I've got 100 clients this month, 100 clients next month.
00:05:08.680 They don't go, oh, we lost one, we lost two, we lost three.
00:05:11.160 Over time, that number could be massive.
00:05:14.180 Most businesses are losing 100% of their customers
00:05:18.000 every 10 months, they just don't know it.
00:05:20.260 And the truth is, high churn, 10, 15% a month,
00:05:24.760 kills a company's worth.
00:05:26.560 Nobody's gonna buy a business
00:05:28.500 if you don't have predictability
00:05:30.180 in the customer's buying and keep showing up.
00:05:32.600 Imagine I had a grocery store for the first few years.
00:05:34.540 I had a lot of people buy and my revenues are good,
00:05:36.560 but nobody paid attention that the population
00:05:39.320 around the grocery store wasn't coming back
00:05:41.720 because they came in and they didn't have a certain product
00:05:44.120 or they bought something and it wasn't great.
00:05:45.940 And eventually I burned through the whole population
00:05:48.200 and then I go to sell my business,
00:05:50.100 but I'm slowly dwindling down my revenue
00:05:52.420 because I don't have anybody else to sell groceries to
00:05:54.240 because the word on the street
00:05:55.140 is I don't got the shit in my grocery store.
00:05:57.040 I literally have that happening
00:05:58.660 at a grocery store in my local market.
00:06:00.600 And guess what?
00:06:01.540 Less product on the shelf, staff turnover,
00:06:04.640 zero surprise if that thing goes up for sale
00:06:06.420 in the next six months.
00:06:07.320 And when it does, it's not gonna sell for a lot.
00:06:09.560 It'll be a fire sale on the real estate.
00:06:11.460 The more customers you keep, the more profits will stack
00:06:14.840 because each customer's gross margin stacked up over time
00:06:18.540 creates more profit at the bottom.
00:06:20.100 Think about going to the beginning of time in your business
00:06:22.760 and every customer you got kept buying from you,
00:06:25.580 you never lost them.
00:06:26.600 So all the people on the bottom of this line
00:06:28.480 are the ones you lost, all the ones on the top
00:06:30.600 are the ones you have.
00:06:31.660 Imagine if all the ones you lost
00:06:33.240 ended up on top of the ones you have.
00:06:35.740 That's how much bigger your business would be.
00:06:38.240 So here's how we actually reduce your churn.
00:06:40.520 First, we gotta track monthly reoccurring revenue.
00:06:43.960 Essentially, we need to look at the trend closely
00:06:46.360 so we know where the leaking is happening.
00:06:49.140 This will make sure you catch churn.
00:06:51.220 Most people just don't even measure it.
00:06:52.840 So measuring that monthly reoccurring
00:06:54.460 from the existing customers will show you that.
00:06:56.760 Essentially, you check the amount of customers
00:06:58.800 it bought from you this month
00:07:00.120 And did those customers buy from you again the next month
00:07:02.560 and the next month and the next month?
00:07:04.260 If you know this,
00:07:05.540 then you can measure what's called your growth ceiling.
00:07:07.760 Essentially a point into the future.
00:07:09.980 When you give me four numbers,
00:07:11.240 I will tell you the growth ceiling into the future
00:07:13.660 when you will stop growing based on your current numbers,
00:07:16.240 your current churn.
00:07:17.220 If that sounds like Chinese to you, I'll make it simple.
00:07:19.720 Click the link in the description below
00:07:21.040 to download my growth ceiling calculator.
00:07:23.160 I'll ask you those four questions, those four numbers,
00:07:25.360 and it will predict exactly when you will hit
00:07:27.960 your growth ceiling and what to focus on
00:07:29.840 to fix it. So now that you know who's churning, the way to fix it is very simple. You have to get
00:07:35.500 your customers to value as fast as possible. I call this time to first value, TTFV, ideally within
00:07:43.420 seven days. But honestly, I call them quick wins. I want to do it in the first interaction. If you
00:07:48.320 join my gym, I want to get you a plan and some wins as fast as possible. If you sell social media
00:07:54.720 stuff, give them a cheat sheet that they can use tomorrow shooting their reels. Even if you do
00:07:58.840 long form YouTube, it got them a result. It got them value. And last but not least, we need to
00:08:04.140 implement a cancellation capture flow. Every customer that leaves is leaving with information,
00:08:10.720 feedback to make your business better. If they leave without you capturing that information,
00:08:17.020 you're missing the opportunity to learn. Speed of growth to make your business valuable is speed of
00:08:23.280 learn. If you get that information from the customer when they leave, then you can implement
00:08:27.420 the fix to get the current customers to stay longer which is going to make your business more valuable
00:08:31.740 so remember first off we got to track so we see the trend second we got to make sure that we get
00:08:36.460 them to value fast and third is we have to make sure if they leave we know why so we can make the
00:08:41.100 product or service better remember how we talked about durable revenue this specifically lowering
00:08:45.980 your churn making the revenue more predictable getting customers results faster will make your
00:08:50.780 business easier to grow which makes it more valuable a sticky customer base makes the business
00:08:55.580 safer to buy. Okay, so now that the bucket isn't leaking, let's make sure we make more money from
00:09:00.840 those existing customers. Step number four, increase the amount of money your customers
00:09:05.260 pay you over time. The money people in the industry, they call this lifetime value of a
00:09:09.880 customer. Essentially, if somebody buys from me once and they keep buying from me over a period
00:09:15.720 of time, I'm going to look on average what a customer spends with me. That becomes the lifetime
00:09:22.000 lifetime value of a customer. If over time, somebody pays me $100 in the state for three
00:09:27.580 years, then I make on average $3,600 by that customer. That's a lifetime value. The reason
00:09:33.740 we want to know this is because a buyer that wants to value your business is going to look
00:09:37.800 how much you spend to acquire a new customer. If that number is low, what you spend to get the
00:09:43.400 customer and what you make is high, then that is a very good business to buy. So there's two parts
00:09:49.020 it it's how much they spend and how long they stick around keep spending i mean if i sell stuff
00:09:54.060 to people that have babies they might only buy from me for two or three years that's fine they
00:09:58.860 might also spend 15 or 20 000 in that period that's a lifetime value have you ever wondered
00:10:04.540 why netflix is worth 521 billion dollars it's because they have subscriptions and over time
00:10:11.740 their customers actually spend more money it's kind of crazy you might have started with netflix
00:10:16.460 and it was nine bucks and maybe you got somebody else's password so you paid zero what happened is
00:10:22.220 netflix over time figured out hey i could charge more right there's a little bit of pricing power
00:10:27.100 and if we stop people sharing their accounts with everybody their cousins and their dogs
00:10:31.580 then i can get those people to pay and that's why netflix has grown their subscription base
00:10:35.980 and the lifetime value of a single account that's why they're worth so much money so here's how you
00:10:41.820 can increase lifetime value of a customer first add other things that they buy or give them a
00:10:47.180 reason to upgrade we got to think about usage based pricing if you think about it if you use
00:10:52.300 software you might have an account for you but if you want to add a team member that's a per seat
00:10:56.540 pricing if it's other devices like netflix those are called screens so they might let you have
00:11:01.820 seven screens if you want to go to eight you got to pay a little extra essentially you might be
00:11:06.380 giving too much away to your existing customers and you have to create reasons for them to want
00:11:11.420 to upgrade so just look at what everybody's using on average and just create some parameters around
00:11:17.340 their usage so they have upgrade paths so you can make more money from the customers because
00:11:21.660 they're using your service more see if they're getting more value they should be paying more
00:11:26.380 for it most businesses are being too generous and that way they're not capturing more share
00:11:31.580 of wallet is what it's called then the second thing is we want to monetize additional services
00:11:36.300 think about if you have a gym maybe you ask yourself what does a customer do before they
00:11:40.620 they come into the gym or what do they do after they leave my gym? Well, before they probably get
00:11:44.860 dressed. Do I sell any clothes? Is there any type of product that I could sell in the gym that would
00:11:50.000 get them to buy from me so they don't go to somebody else? Maybe after they go to the gym,
00:11:54.740 they decide they want to go have a smoothie. Maybe I should have a smoothie bar. When I think about
00:11:59.240 it, I ask myself, what does my customer do three minutes before and three minutes after they use
00:12:04.260 my product or service? Those are opportunities for me to monetize additional services. Last,
00:12:09.380 look at ways to create expansion triggers
00:12:11.660 in your customer journey,
00:12:13.080 meaning that there's something they do
00:12:15.260 that tells you there's an opportunity
00:12:17.240 for you to sell them more.
00:12:18.560 If somebody's coming to your gym six to seven times a week,
00:12:22.680 maybe they wanna work with a fitness coach.
00:12:25.480 Maybe they would like to have a nutritionist.
00:12:27.880 You think about like Dropbox, the file storage software.
00:12:30.700 When you get to 80% of your storage usage,
00:12:33.540 they'll email you saying, hey, you're at 80%.
00:12:35.720 Did you wanna upgrade for a discount
00:12:37.360 to get triple the storage?
00:12:39.220 Those are expansion triggers.
00:12:41.320 Paying attention to how your customers
00:12:42.960 are using your product or service
00:12:44.380 and introducing those prompts
00:12:46.280 will make you a lot of money,
00:12:47.980 which creates more value for your business.
00:12:49.780 A company that grows the amount of money
00:12:52.680 they make from their existing customer base
00:12:54.780 over a year, over time,
00:12:57.100 without adding any new customers
00:12:58.960 becomes incredibly valuable to a buyer.
00:13:01.360 If I have 100 customers that buy from me this month
00:13:04.180 and they spend $10 with me, well, that's $1,000.
00:13:07.200 If those same hundred customers the next month,
00:13:10.160 I lost like 10, but the 90 that stayed spent more
00:13:13.280 because I found ways to serve them better
00:13:15.120 and charge more for additional services
00:13:16.780 and they make me $1,300 that next month,
00:13:19.660 then I've increased the lifetime value of my customers
00:13:22.400 by 30% in that month.
00:13:25.160 That is a very hard thing to do,
00:13:27.220 but if you can figure it out,
00:13:28.480 will make your business very valuable to a buyer.
00:13:31.200 The reason this makes your company more valuable
00:13:33.720 is because it turns your business into an annuity.
00:13:37.700 Think about it, over time,
00:13:39.240 even if you don't add any more customers,
00:13:41.140 if they can become more valuable to the business
00:13:43.660 because you figure out how to create these upsells
00:13:46.220 and sell additional services
00:13:47.560 as a natural process for your customers,
00:13:50.780 the buyer will feel better
00:13:52.260 because they're not gonna be pressured
00:13:53.480 to have to add new people
00:13:54.760 if you're not able to make more money
00:13:56.420 with the ones you have.
00:13:57.540 They know they'll be making more money over time
00:14:00.240 by just having ownership of your business.
00:14:02.580 It's like a life insurance policy.
00:14:05.000 It's like having a 401k.
00:14:07.180 It's like owning stock in the S&P 500.
00:14:09.520 Over time, that has made money.
00:14:12.020 It grows on its own.
00:14:13.500 Creating a business that can do that, very valuable.
00:14:16.380 With that in mind, the next step is crucial
00:14:18.960 if you wanna grow your company's worth.
00:14:20.720 Step number five, don't put all your eggs in one basket.
00:14:24.740 This is what the money people call concentration risk.
00:14:27.840 For example, if you rely on one big customer
00:14:30.880 for 60% of your revenue, that's concentration risk.
00:14:34.280 If you rely on one or two partners
00:14:36.580 to generate all the marketing and sales
00:14:38.460 for your business, incredibly dangerous.
00:14:41.200 These are things that buyers do not wanna see.
00:14:44.320 I remember when I started going in business,
00:14:45.860 I had a partner that wanted to give me more business
00:14:48.220 and I told my dad and he said, whoa, don't do that.
00:14:51.780 I said, why?
00:14:52.340 He goes, they're already 40% of your business.
00:14:54.780 If you give them more,
00:14:56.720 then they may get up to 60, 70% of your business.
00:14:59.420 what happens the day you don't do what they ask you to do and they take their time paying your
00:15:05.480 invoices and all of a sudden you grew to meet their demand and then you can't cover your expenses
00:15:09.980 because they stop paying your invoices guess what they're going to do they're going to buy
00:15:13.340 your business from the bank that's the risk you run when you have one customer generate too much
00:15:18.220 of your revenue or one marketing channel be the primary one a lot of businesses only have one
00:15:22.520 marketing channel Facebook they don't realize if Facebook shuts down their ad account their
00:15:26.640 business goes to zero. They don't realize that if this key person that everybody loves, that
00:15:31.300 everybody works with, if that person left your business, you wouldn't have a business. Concentration
00:15:35.700 risk. Concentration risk isn't just about how you get your money. It's about where your leads come
00:15:41.080 from. It's about how you deliver that service. It's about where you even get the supplies to
00:15:46.260 deliver the product to your customers. If you only have one supplier and they know that, that's going
00:15:50.860 to be a risky proposition for a buyer. So here's what you need to do to de-risk or lower that
00:15:55.340 concentration risk. First thing is you got to keep your top clients under 15% of your revenue. Ideally,
00:16:01.480 your top three customers shouldn't be more than 30% of your total revenue. The reason why is that
00:16:06.260 I've never seen a scenario where one customer leaving, you know, maybe you won't make profit
00:16:10.800 the next month or the second month, but eventually you'll replace them and you'll get back into normal
00:16:14.940 business. It doesn't create a scenario that makes you unprofitable and not be able to cover your
00:16:19.640 expenses. In my world, I don't want any one marketing channel to be more than 40% of my lead
00:16:25.500 generation. I have a business and at one point, Instagram was 85% of our lead generation. And I
00:16:32.480 went to the CEO and I said, we've got six months to bring that down below 40%. And he did. He went,
00:16:37.960 he activated other channels, he tracked it, he made it a reward for the team if they could accomplish
00:16:42.780 it. So that way, if something happened to my Instagram, which it did because somebody reported
00:16:47.680 as fraud because that's what happens when you build a large channel and it gets locked out for
00:16:51.360 the three four five days that we're trying to fix it with instagram we didn't skip a beat in the
00:16:55.760 business because we weren't reliant only on that channel the reason why this is important is
00:17:00.480 because diversification makes your business safer to run it takes that single point of failure away
00:17:05.760 and that's what buyers are looking for safety in your operations now that we're in a safer position
00:17:11.600 let's clean up the way you run your business step number six write down how everything works
00:17:17.520 some people call these standard operating procedures sops other people call them
00:17:21.840 checklists or systems i like the analogy of playbooks because it's a sports analogy so
00:17:27.040 we call ours playbooks essentially i want a playbook for every department in my company
00:17:32.240 that explains exactly how we think about how we measure how we operate how we review the
00:17:38.080 operations the plays of that department if you don't have them written down then a buyer won't
00:17:44.240 trust that they're going to be able to take the business from you and operate it because there's
00:17:48.500 nothing documented. It's actually why most entrepreneurs are stuck to their business and
00:17:52.660 they can't get free or they haven't built a business that's worth anything to anybody else
00:17:56.740 is because they didn't take the time to just write it down. You have to make it easy for somebody to
00:18:01.700 come in cold, go through your playbooks, understand exactly how you make your secret sauce. That way
00:18:07.820 they can keep making your secret sauce, which means the revenue will keep showing up. McDonald's
00:18:12.980 can open a store in Japan and have a 14-year-old kid make a Big Mac that tastes exactly the same
00:18:20.280 as the one I bought in New York City. How crazy is that? Why? They have a playbook for how the
00:18:26.000 Big Mac is made, where the product is sourced, how the bun is toasted, how the beef and the
00:18:31.060 whole thing comes together. Any person, anywhere in the world, same result. And that's why they're
00:18:36.020 worth billions of dollars. So here's a simple way for how you can build your playbooks. First,
00:18:41.300 I call it the camcorder method.
00:18:43.100 I wanna record myself doing the task,
00:18:45.820 meaning I get to do the work.
00:18:47.220 Let's say it's accounts receivable
00:18:48.380 or scheduling a sales call.
00:18:50.940 But while I'm doing it, I'm recording myself
00:18:53.060 and talking out loud what I'm doing, how I'm doing it.
00:18:56.340 The cool part is then I can use a tool like trainual.com,
00:18:59.520 which is a free tool.
00:19:00.600 You can upload that video and it will create using AI
00:19:04.540 the playbook from the thing that I just set.
00:19:08.020 It's wild to watch it happen
00:19:09.720 because most people are like,
00:19:10.860 I gotta go away for the weekend
00:19:11.920 and document everything I do in my business.
00:19:14.200 And I'm saying, nope,
00:19:15.100 you can actually just run your business,
00:19:16.800 record yourself,
00:19:17.560 and a tool will create the playbook for you.
00:19:20.180 Then we have to store that document
00:19:22.340 into some kind of company wiki.
00:19:24.160 If you use Trainual, guess what?
00:19:25.240 That's what the platform does,
00:19:26.560 but you can use anything.
00:19:27.700 Use Google Docs, you can use Notion,
00:19:29.760 but you gotta put it in an organized fashion.
00:19:32.380 Why does this increase the worth of your business?
00:19:34.420 Because a well-documented business
00:19:36.220 is easier to scale and grow and sell.
00:19:39.200 Once you do that,
00:19:40.520 now you can move to the most important step of the process,
00:19:43.800 which is number seven, build a leadership team.
00:19:46.840 A leadership team is one of my favorite things to build
00:19:50.280 because it's a team that runs the company
00:19:53.080 without you making every decision.
00:19:55.080 I know, this is scary.
00:19:56.940 They're like, what do you mean?
00:19:57.880 What's my job as a CEO if I'm not making all decisions?
00:20:00.700 Well, let me tell you.
00:20:02.340 One is vision, two is money, and third is people.
00:20:05.760 Your job is to pick these folks.
00:20:07.340 and the better you do at picking the leadership team,
00:20:10.480 the more valuable the company gets
00:20:12.660 because a buyer's gonna interview them
00:20:14.680 and see, do you have great people?
00:20:16.620 If they interview your leadership team
00:20:18.160 and they find a bunch of ding-dongs,
00:20:19.820 you're not gonna get bought for a lot of money
00:20:21.640 because they know they're gonna have to replace them
00:20:23.040 as soon as they take over.
00:20:24.360 But on the other hand, if you do this right,
00:20:27.240 what I'm about to teach you,
00:20:28.680 you will have a business that you may not even wanna sell
00:20:31.720 because it's so easy to run.
00:20:33.380 One of the first things you have to do
00:20:34.720 is empower your team to run the show.
00:20:36.700 Steve Jobs used to say, you know, it's easy to hire somebody and tell them what to do.
00:20:40.880 It's hard to hire somebody and have them tell you what to do.
00:20:43.900 I don't view that we pay people to do things.
00:20:46.440 That's easy to find people to do things.
00:20:48.380 What's harder is to find people to tell you what should be done.
00:20:51.600 When I hire somebody to take over a department or a company, I give them the keys.
00:20:56.380 I give them the ownership.
00:20:58.060 I give them the responsibility.
00:20:59.440 I'm no longer involved.
00:21:00.740 If the emails come in, I'm sending them to you.
00:21:03.300 I'm going to empower you to make the decisions.
00:21:05.180 You want it to be like a sports team where every person plays a position.
00:21:09.700 They know the position.
00:21:10.700 They know the plays they got to play.
00:21:12.060 They know the responsibilities.
00:21:13.400 They know what's required of them.
00:21:15.180 They collaborate with the other people and everybody expects to win.
00:21:19.440 This is where you realize you can't possibly play all the spots yourself and you have to
00:21:23.680 have team members that come on to help you win.
00:21:26.640 So here's how you actually build a leadership team.
00:21:29.140 First, we got to start by hiring somebody to help run operations.
00:21:32.680 At the end of the day, you're probably best doing marketing and sales.
00:21:35.860 Having somebody start to manage the operations and really lead that, own it, finance, recruiting, technology, all the internal stuff, that's key.
00:21:45.300 Once you've got that, then you look at marketing and sales as leadership positions, but you want to stay on them until you build a machine that they can run.
00:21:52.620 Then you have somebody generating the leads and then closing those leads because somebody else is running the sales team.
00:21:57.500 That starts to get you free and build a leadership team that makes the business predictable.
00:22:02.320 Next, you wanna create a dashboard.
00:22:04.140 A simple, clear way to track their results
00:22:07.680 every day, every week, every month.
00:22:09.720 The mistake people make is they track the results
00:22:12.540 for those leaders, that's not leadership.
00:22:15.000 The right way is have them self-report,
00:22:17.500 update that dashboard on a meeting,
00:22:19.580 report to their peers how they're doing,
00:22:21.740 to the numbers, to the targets.
00:22:23.660 That is leadership.
00:22:25.220 You sit back and you coach and correct,
00:22:27.360 but you're not running or driving things.
00:22:29.220 Remember about the ownership?
00:22:30.420 having somebody else that runs a show
00:22:32.840 makes your business more valuable.
00:22:34.820 Then you need to provide a decision framework
00:22:37.200 for those leaders to operate within.
00:22:39.160 So for example, in my business,
00:22:40.340 I have a $50 rule, 50 to fix it,
00:22:42.940 for anybody to solve a problem they run into
00:22:45.360 as long as they tell their leader
00:22:46.660 that they made that change.
00:22:48.380 I also have 500 for managers, 5,000 for directors
00:22:51.800 and 50,000 for C-level leaders in my companies
00:22:55.400 where they can fix anything without approval
00:22:57.980 as long as they let me know that they did that.
00:23:00.420 I do that because it pushes the decision to fix problems
00:23:03.660 down to the people that have the most information
00:23:06.120 to actually solve it,
00:23:07.300 and it doesn't make me the bottleneck of all decisions.
00:23:09.660 And then last, but definitely not least,
00:23:11.900 on a weekly basis, you have to hold a leadership meeting.
00:23:15.060 That way you can align everybody
00:23:16.940 to the vision of the business, to the goals for the quarter,
00:23:19.620 and help them work with them to solve the problems,
00:23:22.280 but only once they've brought to you
00:23:24.140 the problem and their solution and ideas.
00:23:26.920 All of this is wildly important
00:23:28.540 because you produce strong leaders,
00:23:30.420 that reduce the risk to a buyer and even frees up your time to focus on growth the reason why
00:23:35.380 this is so valuable is buyers value companies with proven leaders already in place i just gave you
00:23:41.940 a master class in creating real wealth how the 0.001 of the people actually make their money
00:23:48.580 by owning a business that's valuable to somebody else it can feel like a lot i get it but i'm going
00:23:55.860 going to encourage you to consider this follow the steps look at what areas in your business
00:24:00.520 are missing and just choose for the next 90 days to fix one of those if you do that every 90 days
00:24:06.900 over time maybe in a year you'll build a business that's incredibly valuable not only to you
00:24:12.160 generating massive profits but most importantly valuable to somebody else see your active income
00:24:18.480 how much you make every month is money that's cool what's creating the most value though is
00:24:24.460 what's called enterprise value. And it's the value of the asset called your business to somebody
00:24:29.260 who's willing to buy it. That'll make you rich. And remember, if you want to access to my gross
00:24:33.760 ceiling calculator, just click the link below and I'll send it over to you. Now, if you want to
00:24:37.800 learn how to build a business that runs itself, click the video and I'll see you on the other side.