BCS: 145 | Biggest Mistakes Business Coaches Make
Business Coaching Secrets with Karl Bryan
BCS 145: In this episode, Karl answers questions about:
– Biggest Mistakes Business Coaches Make
Karl Bryan helps business coaches get clients. Period.
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SFC Episode 145
[00:00:00] Karl: Welcome to business coaching secrets with Karl Bryan. If you want to attract new high-end coaching clients, fill live events and build a wildly profitable coaching practice where business owners pay, stay and refer. You come to the right place in this podcast. Karl provides his keys to the kingdom for finding insights. High paying clients and building the coaching business of your dreams. Here we go.
[00:00:37] Christian: Ladies and gentlemen, boys, and girls coaches around the world. Welcome. You get another episode to play real dog with none other than the man the four and a half foot legend himself Bryan.
[00:00:53] Karl: How are you doing shoots? What’s go on?
[00:00:58] Christian: Always a lot going on a lot, going on my friend. But yeah, I, I, you know, where do you want me to unpack that there there’s a, what I was trying to unpack was all of your jokes from last week. And let me just say. You’re getting more edgy, like jokes anymore. I don’t think some of these are, I got to be honest with you.
[00:01:27] Karl: I can’t
[00:01:28] Christian: I can’t kill there. Some of these are too high risk for me to even read out loud on the podcast. I can’t have things tie back. Everybody’s off your Joe Rogan right now. They’re coming for us next. The tutor.
Listen, I will say this though, because this is legit. So you put in here, your hockey team, the Phantoms that you guys play, this is very eerily similar to the summer curling. Where you, you just, you tell your spouse that you’re off to play. You got a big game, you’re playing the Phantoms and but they don’t actually exist. Right. And just meets up a bar and drinks for three hours and then returns home, proudly informing our families that we scored the game winning goal. I love it. It’s good stuff right there.
[00:02:13] Karl: Hopefully my wife’s not listening shoots. She just gave away my secrets. There you go. The Phantoms curling and a hockey team might be coming to an abrupt halt.
[00:02:22] Christian: I’m pretty sure that your wife hears enough of you throughout the day, that she doesn’t need to be distant to you when you’re not physically around her. So I think you’re safe there anyways. Should we jump right in or what’s what do you want to do here? Big shooter. What’s.
[00:02:35] Karl: Buddy hit me, man. You got some questions hit me. Let’s do it.
[00:02:39] Christian: Oh yeah. And this a fairly open-ended question. And it’s a doozy though, but like this could folks, this could go anywhere. This could be the entire podcast.
[00:03:00] Karl: I am ready. Shoot the entire podcast. Is it over?
[00:03:06] Christian: It’s about to be over. Like, if you’re wondering where I am, I’m down, making myself all right. You currently see business coaches making, oh my God. Do you see how open-ended this is,
[00:03:22] Karl: that’s it.
[00:03:24] Christian: That was the end.
[00:03:30] Karl: Now look, let’s get serious here. We’ve got to dial in here. Shoots. I mean, we talk about this all the time, right? It’s like, you know, multiple streams of income, passive income following the silly influencers that, you know, on your Facebook feed, you know, like going after the new sexy book on sales and then ignoring Ray Dalio, Warren buffet, Charlie Munger, you know what I mean?
But I don’t look
at again, my brain. I think there’s something we haven’t said repeatedly, which we opened somebody up earlier. That’s one of the mentions, but he did think repetition was the mother of skill. So that’s okay. But you know, output look at output as your activity and then input as your return. Okay. So there’s a framework for you.
Output equals your activity input equals your return. And then common advice that you hear, you know, You won’t hear it from Charlie Munger though, but the more you give, the more you will receive. Right. So it’s true in a way, but not all of your activity will come back in the same proportion, right?
Like example, I remember being a DJ for a short time after high school. One three minutes song would get total crickets and no one even paying attention, let alone, you know, moving their, their legs, shoulders, hips, or whatever, but a different song that the entire room up dancing and singing. And and by the way, a different room, it would be a different song.
Right. I remember I had a job when I was 2021. I was entertainment’s manager at a backpacker’s resort or what a fun just FYI. Like the right, like, it was the same thing, the right song that everybody moving and moving at a kind of a faster pace, but different people didn’t get up and dance in the imagination.
But you know, like the raw, I’ll tell you this, the wrong song dead in the movie. That’s for sure. Right. So, you know, I’d also play drinking games kind of like. My job was to get everybody trunk, quite frankly. And then there was a specific game that I remember it was what we called it, a boat race, which is basically just a everybody, you know, pounding a beer and then putting it on top of their head.
And there had to be one gal, one girl per team, but the game always crushed it and I’d always brighten the move. It was kind of like my go-to and then the mood and, you know, everybody would kind of. Does that make any sense? Like that one game outpaced all of the other games, the same way that one song will outpace all like, you know, many other songs, but you got to kind of work it out in the room.
Right? Like my job description is entertainment’s manager. People would book for three days is like a frame like that was kind of the automatic. And then literally my job description. Get them to stay an entire week. And the way I would do that is to build relationship, have them, you know, have them have a lot of fun.
The way we had the most fun is to get them down to the bar at six o’clock. And then we play games to make it lighthearted, play some great music, but the one tweak mattered a lot. Right. So therefore in your business, let’s forget about drinking games. You know, music in high school dances, but like for, in your business, if you were to use a straight calculation, try for like activities, like it was put in brackets output, but it gets you a 20 X or greater long-term return would be a good use of your time.
Spend a thousand dollars on advertising. And it turns into $1,100. So 10% return on your ad spend. Right? Well, the same thousand dollars spent on advertising in a more clever way could bring in $20,000 of long-term revenue, but that’s a 20 X return, right? Same, you know, same ad, same ad space. Let’s say a 32nd or on Facebook, but a different headline, a different offer.
A tweaked copy could, could totally change things, right. Or maybe it take on a coaching call. And you charge them $2,000 a month. What’s that? $24,000 a year. Well, you go to a landscaper, you go to a roofer, you charge them the two grand and you go, right. Well, A great way to build your coaching company is off, you know, referrals from your existing clients.
Well, if you went to a B2B business owner with the exact same time, the exact same effort, instead of taking on a roofer, you took on an accountant and we’ll assume that that accountant had a client list of a few hundred of your ideal clients, right? Like an accountant looks after business owners. If they have an accountant, that means they’re probably.
You know, a little bit bigger than the average mom and pop. That means that translation they can afford to pay you. Well, if the accountant sends you 20 referrals, you just got to like 20 X return all day long, then you would have on the regular, what do they say? Roofer landscaper again, the butcher, the baker, the candlestick maker for that same $2,000 a month.
Coaching client that the output required. Right. So you’re helping a roofer. You’re helping an accountants. I would dare say, you’d get a significantly greater return on that accountant. So that’s like the really that’s like the song. Why MTA? Right. Gets everybody up moving. Do you ever do karaoke by the way, do Y and I don’t care how bad of a senior you are.
You will do well. The mistake people make in karaoke is that they do a song that they think is good. If you want to win karaoke, you do a song that the audience think is good. You know, it’s just like, It’s a 1 0 1, but everybody makes the mistakes. It’s a little bit the same, the accountant versus the roofer.
Right. And, and of course it doesn’t need to be financial. Financial is just the easy one where you can just make an apples to apples or compared apples to oranges. You know, if you have a glass of sugary coffee or a green smoothie in the morning, I would dare say you get a 20 X return on your long-term health.
You’re like road dog. You wake up in the morning and the guy jogs, you know, 10 kilometers, 10 miles in the morning. You know, you’re, you’re going to get a significantly higher output than you are. If you wake up and then watch TV in the same period of time that road dog goes and you know, pounds for a run.
Yeah. And by the way, you could watch Netflix for an hour or you could watch an hour long YouTube video and learn a valuable skill and take some notes. And by the way, a big one, and we’re all guilty of this. Starting with me. When I go to the bathroom, I get to bring my phone so I can flip through the stupid thing.
You know, rather than spend your time on social media, mindlessly scrolling and you know, getting into political debates are about backs and backs, passports, and you know that you have zero control over to be clear. That’s not to say you shouldn’t fight for your rights and what you believe is right.
Okay. I’m all for that. Yay. Everybody clap. But you gotta, if you’re looking to build a business, I will challenge you massively that that’s an effective use of your time. Right. You know, and by the way, again, old school, you know, pick up a book, you know, certainly pick up an audio, pick out a video and have a conversation, you know, again with somebody, you know, what do they say?
You’re the, you know, a combination of the five people that you spend the most time with. Take some time to reverse engineer that and have a look at who those five people are. And by the way, have a person who’s elevated somebody who’s significantly further along than what you are. And have a conversation with them, you know, think of and get 80 20, but do it on steroids.
Again, I’ve talked about this to death, but I don’t think I could say enough where you go 80, 20, but if you go significantly deeper, you’re going to get 95 5 and then 51, right. 1% that one account. 500 clients and just loves you and wants to refer the crap out of you. That’s a one 50 activity. You don’t need to do a speaking event.
Speaker they’re finished and they got to run to the bathroom, right? The five minutes after you get off stage, the power that you’ve got in and around that room is incredible. The only question I have for you is, do you have the ability. To be able to move in those five minutes to go have five conversations versus get trapped into one.
And believe me, they’ll try to trap you into one. If you let somebody. So there’s a way to do that, but certainly running to the bathroom after you’re done your two hour talk, that’s a one 50 moment all day long. Because we’re not reverse engineering. We’re not thinking along these lines. I think that we make these mistakes, but bottom line road, those business, our business, Coke, Pepsi, Charlie Munger, Warren Buffett, Ray Dalio, 1% of activities, products, and services from great 50% of your business returns.
And, but are you dialing down? Are you taking a magnifying glass over the 20, when you go 80 20, take a magnifying glass over the 20 K, which sounds easy. The challenge is it’s about a hundred times harder than what I’m going on, describing it here. Right? And then you’re looking for, as you reverse engineer all this and think about it strategically, strategically, look for like a 20 X return.
Look through a 200 X return. Look for a 2000 extra turn by the way. But as. Let’s hope for a 20 X return. I think the business coaches, the mistake that they’re making is they’re waking up, they’re following a routine. You know, they’re going to the networking, going to BNI versus going to the golf course.
When you’re a good golfer, we’re going to view oil and gas club. When you, you know, oil and gas inside out, or, you know, going to the yacht club, when you own a boat or, you know, a lot about boats or you have a passion for boats might be a more effective place for you. I don’t know that that would be a one 50.
Specific individuals. And of course, as I say this to you, I’m talking through you to your, your business coaching clients, you on the roof, there’s landscapers, et cetera. And of course I can just picture somebody now thinking Bitcoin.
Wildly. And again, it points. Okay, but just, you got zero control. Go hire somebody. Your goal, a Bitcoin is to double your money. If you hire somebody for 20, 30, 40, $50,000 a year to make phone calls for eight hours a day, I promise you, you will make see if you have. Any passion and throughput and wherewithal with your business at all, you will make a significantly better than, you know, two X return on the 50 grand that you pay your employee.
But that takes some guts that takes a checkbook that some will or will not follow through on. And some don’t want to, by the way, some are semi retired. And they just want to, you know, work, you know, 20 hours, 30 hours a week. And that’s it. They don’t care how much they earn a hundred grand is more than enough, 200 grand to start to be too much, because that means too many headaches and they just want to look after their retirement.
Okay. Well, that’s not great advice for you. Little red arrow, you are here. The, where do you want to go defining that destination? And then the coaching is in the middle, but the journey is in the middle of the magic is in the middle of. And of course I started with this, but listening to the influencers that are taking selfies with cars, they don’t own, and, you know, jets that they didn’t even rent themselves.
Just taking a photo on a jet, talking on their phone, always be cautious of that. It’s a pet peeve of mine on steroids. So there you go. Road dog. There you go. The podcast can continue shoots. What do you think any set? What do you think wrote up? What I, what I didn’t
[00:14:45] Christian: realize is that you also used to do, I also used to DJ.
It’s a true story. It’s funny because this podcast is very much like that. It’s sort of like if I need to take a leak, I just, you know, put on the stairway to heaven and we’re off to the races,
you know, you’ve got.
As a, as a follow-up now with obviously building a business, do you think this is a question that somebody wrote in, because I sure as heck have a very, very concrete view on this one, but do you think businesses should raise money to get started?
[00:15:26] Karl: Do I think Ray there’s boots. So bootstrapping you raise money.
You know, you got the, as soon as you raise money, you were answerable to somebody, right? So you now have a parent in your business that you’ve got to keep happy and you’re answerable. And one of the problems is that you’re answerable to something called profits, which could be a really good thing, by the way.
There’s a good chance that it’s a really bad thing because sometimes growing a business, you have got to make strategic decisions. And that will not involve profit, right. Then, you know, taking on a staff member as an example, short, the lead generator that I talked about a minute ago, you’re not going to make, there’s a really good chance.
You’re not going to make a lot out of them short term. And by the way, if you want to hack there, let me just go here. The person that you employ as a sales, as somebody who could bring you. To clients without your active involvement borderline, immediately, right? Like, so an example of that is the person who I would hire to become my sales person would be the person who worked at the chamber for the last 10 years and was their number one employee.
And what I would say to them is don’t put your job. I don’t need you full time. I just need you for 20 hours a week. And here’s how much I’ll match your salary at the chamber. But I want you to do is I want you to send people to me, but don’t do, I don’t want a conflict of interest. And at once you’re getting in trouble.
But obviously you have a, you know, you have a network and you have a lot of people that you built relationships with. While some of them could use a hundred grand in 45 minutes without spending a dollar on marketing or advertising. Why don’t you send it over email? Introduce me. I’ll take it from there.
And anybody you send my way. I will pay you a bonus and just make sure that you’re sending X amount of people. You know, four people, four warm leads a day and I’m happy and I’ll pay you. You know, you don’t need them for eight hours. You’re looking for results. You’re not looking for a number of hours, but that’s a little hack there.
When you’re thinking you employ a lead generator or a sales person, can they bring sales to you immediately without tracking involvement? As in do they have a Rolodex? Do they have a network? They can already get. So so raising, like I talked about this. I was a road dog, like we were talking about starting versus like acquiring or buying a business.
And I just, again, I had no idea when that was, I’m sure if you searched it, you could have a little bit of a look, but just a Coles notes, a quick little overview of it. Businesses fail in the first three years with insane predictability, like over 80% over 90 probably. Right. It depends on whose stats you’re using by the way.
So let’s just call it 90 for the sake of the argument. So. What makes sense. Is for you to go find a business that’s been in business for longer than three years and buy it from someone that’s tired, wants to retire as a sickness needs to move, needs to relocate where mum and dad are for kids. That kind of thing.
You know, bat is a really good idea and like the chances of success there are pretty damn good. And you know, it’s like those first three years, What you’re doing is your bunny hopping the way that I think I explained it is like your bunny hopping, that you know, that, that massive crater, that massive danger area versus start from scratch, which most people, if you line them up and by the way, this is business coaches are a million percent guilty of this.
You know, as far as what they’re advising people, they will advise them to start. Because on the surface, it seems less risky. And it is so far, the statistics will tell you a very, very different story. Right. But now the conversation which I went into, you know, a lot further in depth, but I won’t do here, but like, you know, now if you’re going to go acquire a business, there’s some things you got to be thinking about.
Some things you got to know, some questions you need to ask. So in other words, you don’t want to buy a failing business. That would be a, you know, a, a, a bad scenario. So you gotta do your due diligence get some proper advice, but yeah, I dunno buying a business you’d bunny hop it. So when you think about raising money, there’s a really good chance in order to do that.
This is where you’d need to do a race. And again, you can get money from friends and family, get it from mum and dad. Hopefully you’ve got some savings. You can get it from the bank. You can take a line of credit out on your you know, in a house that you’ve owned for a period of time, you can be ruthless and apply for some credit cards.
Don’t see. You can never raise money when you need it. You gotta raise money before you need it. So raise far more than you think you’re going to need would be a good idea. Not always possible, but this is what I use as a framework. But anyway, so just to make sure that we’re talking apples to apples, We thinking about that.
Right. And you know, there’s just, there’s so many people out there, like, just think of baby boomers, right? The number of dominates, getting older, they don’t have an exit strategy. They definitely don’t have a succession plan in place. So if you are willing to look up, you know, lift up some rocks, ask some questions, pick up the phone and your client was willing to do so your friend was willing to do so.
Your relative, your son, your daughter, your auntie, your uncle, your mum, and your dad were willing to do so the opportunities that. Actually be out there would be incredible. And then by the way, if you acquire a business where you’ve already got. And you’re already operating, and then you could acquire something that you could bundle in what you’re currently doing.
Both as a growth opportunity, but also as expense reduction. Right. I talked to one of Bieber’s dad this morning road, dog, right. We’re talking about like, he’s got a trucking company and the money that he spends on mechanics and the money that he spends on washing his trucks would blow your mind.
Right. So like starting up a business. You know, like, you know, with bays the wash trucks and cars, and then with a mechanic on staff for X amount per hour, just immediately be profitable just by virtue of his own trucks going in. Right. So just the way that you get there, this is Amazon one-on-one you just go to your profit and loss.
You know, go to your expenses that sit on your profit and loss, look at the big ones that go, can we start a business right there? And that is exactly how Amazon web services were started. Apparently not a bad idea, given the fact that it’s a billion dollar company. So back to the question. Raising money to get started.
So think of money as right. So you’re baking a cake. You need flour and baking powder. I’m not a mother, you know, I don’t know if I’ve ever baked a cake, but anyway, but there’s baking powder. It’s gotta to be some butter, probably some sugar milk icing, whatever you mix it in the bowl, in the right order, place it in the oven.
And it’s heat that makes it rise. Okay. Money is heap for a business. A business needs a great product service, and most importantly, great operators. If everything is in order, money is going to make it rise the same way that if you put the wrong ingredients in the wrong order, on your cake and put the flour on top, it don’t stir it.
And no amount of heat is going to make it rise. It’s going to burn. So the businesses in an order, no amount of money is going to make it rise. And then by the way, I’m going back to many podcasts. We’ve mentioned this, but if you come to me and say, Carl, is this a good idea? Is this idea profitable? Will this idea work?
I come back and go, you need to change your spidey senses to go from ideas. Problems. Okay. Identify a problem. And then can you solve it? And then will people pay you to solve it? And then those people that are willing to pay you to solve it, are they easy to find? Are they niche? Could we go to Facebook and basically program it in so that we can nail down and basically, you know, find them quick?
Right? So again, don’t look for ideas. Look for problems. Very different way of looking at business in my opinion. So if I was looking to give, you know, my daughter, you know, somebody close to me, good advice. That’s gotta be in the top of the list road, dog. Right. You know, like the tech industry is all like here’s I think with this question comes from Murdoch, right?
We both know this, the tech industry is just, it’s a dog’s breakfast where the standard is how much money you raised. Like it literally makes, you know, it makes headlines. It’s like, it’s all, they raised a billion dollars, right? Like, what are the revenues? Like? Twitter’s a great example. They’re like, If I don’t know, 14, 15 year company they’ve raised, well, I don’t know what number it is, but, you know, billions of dollars you know, put out 500 million tweets per day or whatever it is.
And they, you know, they haven’t like a profit. It’s not even something they could even contemplate. Right after, you know, well, and truly a decade in business, not sure how long, but like what business on this planet could survive for over a decade without making a profit, without making money. Right. It doesn’t make any sense.
And there’s a lot of tech plays like that. And Amazon has been, we’ve talked about this also in the past, it really changed you know, the rules of engagement, the rules of business in a lot of ways. You know, it’s, you know, it’s about how much you’re raised, but where does your new coaching clients spend money to rise?
Okay. So your coaching company is that cake, and they’ve got all the right ingredients. They need heat to rise because they don’t, you know, they want to get going, where would they spend it? How do they rise? It’s like advertising, you know, get ahold of road, dog and let him help you create an advertising campaign.
It’d be money really well spent, you know, on marketing, on new staff. Talked about that earlier, like hire lead generator, hire a salesperson. I mean, you suck at sales and you’re a really good coach hire somebody, or you’re a really good salesperson. You suck at coaching, hire a coach, right. Hire somebody to do the stuff that you’re not good at research and development, you know, like with us, then the amount of money that we have spent you know, what kind of R and D or.
I don’t know if it’s traditional R and D, but we, you know, we spend a fortune on, you know, developing this you know, our software, our property acceleration software, digital acceleration software the group coaching software, it’s built to be fully customizable in a few days here. So anyway, so there training again, your sales guy.
Oh, my sales guy sucks. Okay. Well, Right. Send them somewhere, take your people seriously. And they’ll take themselves seriously acquisition. You know, this is absolutely something you could think about. Think about this road dog. Like if, like, if you have an acquisition, if you have a, let’s just say you have a 10 X multiple in your company and you acquire a company that has like a 1.5 X.
And then it has a synergistic. It’s like, you’re a digital marketer. And then you buy a business coaching company or you’re a business coach, and then you buy a digital marketing company and the two, the two could overlap and bundle together. What happens? What do I say? If you have a 10 X, you just take that 1.5 X that you acquired the digital marketing company for, and you basically gave it a 10 X valuation immediately because you’re bundling it in with what you’ve currently got.
And by the way, business coaching and social media or digital marketing might be a bad example. Cause I don’t see a lot of, not a lot of acquisition going on in that world. But just think about the retail store, buying the other retail store, the e-commerce play buying the other. E-commerce play lots of that going on.
So again, this. No. If you multiply the multiple immediately by bundling it in with your, you know, your current client or in your case, you not sure if I’m doing a good job of explaining that the acquisition world is, you know, totally people just don’t quite get. And it’s a lot of power in it. Let’s put it that way.
The PE world is one that is a business coach. You might want to explore a little, not necessarily to become private equity or to get involved, but to. I understand that at a high level. Right? So look here, here’s an example. We just spent like a ton of resources, money, human capital, rolling up profit acceleration simulator that we’ve talked about a lot, right?
It can find any business owner, a hundred grand, 45 minutes without them spending an extra dollar on marketing or advertising and actual back to simulator. Does. Minutes. Right. So imagine legitimately finding your coaching fees prior to starting with your new 24,000, like two grand a month, $200,000 client, right.
That would be 8,333 bucks a month, right? Who wouldn’t exchange $24,000 as in your fees for a hundred thousand dollars that the simulator and the software would ultimately get for you. Right. And plus. We just hired a new full-time software engineer, right? Lots of heat. You know what I mean? Right. But to basically take it totally customizable.
Right. So I’m throwing gasoline on an already burning fire. So there becomes like a little bit of a compounding effect versus starting from scratch. Again, it’s just it’s heat for the cake. So we took the money. And we allocated to hire somebody new to build something that was already in motion was already working for clients who were already using it.
And then bringing in new clients are now getting a higher level value proposition and making it easier for our sales guys and our sales team to basically get deals done. Right. So that would be an example. Good, bad indifferent, like how I’m throwing heat on what we’ve currently got. Right. So for your clients, If they were going to raise money, my question is where are they going to do it?
And if you don’t have a clear, like if you don’t know what, you’re the equivalent of your profit acceleration simulator would be, I would cautious caution them big time, because as soon as they do the raise, I started with this. They now are answerable. So do they really want to be answerable? And the problem is that they’re answerable to product.
Right to and again, it’s, and it’s not that the investors are greedy and want to be big brother, quite frankly, they’re often uneducated themselves. Right. And they think that, oh, I gotta, you know, we, we, we’ve got to make, you know, we, we’ve got to look at our monthly, quarterly reporting and it needs to be going in the right direction.
Right. What happens when Facebook, they just recently came up with their earning reports. And then one of them, you know, it just. Right. And then it’s like, oh my God, Zuckerberg lost whatever. Billions of dollars in one day. Do you think he really cares? Do you think Zuckerberg is sitting there going, oh no.
You know, I’m only worth X when I was worth X yesterday, couldn’t give a rat’s backside. It’s a, ten-year play for him, right? Like it’s a hundred percent to ten-year play. But bottom line, is that a small company where I’m going here? Let’s forget Facebook and metaverse and billions and billions. That’s just not what we’re playing as business coaches, the local chiropractor takes on investors and buys another chiropractic clinic down the road.
Got to say this. Now the mistake that he will make is that he will often buy he’s a chiropractor, and then he will buy a chiropractic clinic. That is a fair distance away. Right. If I’m a chiropractor and I want to expand. There are some intangibles and some variables here, but I want to own three chiropractic clinics within a drive of one another.
So picture like a triangle, like a Bermuda triangle around the city, and then you want to have it so that they’re 30 minutes. So if one chiropractor calls in sick and can’t make it, one of your, your other guys is only 30 minutes or you’re only 30 minutes away from jumping in the car and going over and filling in, or the massage therapist calls in sick.
You’re just 30 minutes away. From scrutiny over the, you know, the office manager calls in sick, you can just, you know, zip over there in 30 minutes versus you’re in another state, another city you’re an hour and a half away. You don’t have to get fortunate being able to jump in and basically solving that.
That comes from the world of franchising, where if you’re going to buy a subway if you don’t own three of them, I don’t recommend it because three of them, you can make some money. One of them you’re just flipping burgers type of thing for you got yourself a job that’s pretty poorly paid. So by owning three, You know, you got one lead of inventory.
That one, lot of staff, you’ve got one load of, you know, somebody can handle the payroll. And again, somebody calls in sick, they can just zip over. Okay. So the mistake that chiropractors make is that they buy another one and it’s too far away. Where I was going and I kind of got off track. There is it, the chiropractor wants to expand.
That’s fine. But if he’s got to do a raise to do so, he might put himself in a position where he’s held his feet to the fire. Too closely to profit. When in actuality, a step backwards to make some forwards or multiple steps backwards to take multiple steps, forwards is something that needs to be done, but the shareholders don’t want to hear about it.
They put a hundred thousand dollars in and they just want to know that it’s protected and they didn’t want to hear about, you know, declining revenues, Yetta, Yetta, Yeti, Doug, what do you think shoots? That’s my answer that,
[00:32:23] Christian: well, hang on, let me, let me answer the question. Do you think businesses should raise money to get.
See, you didn’t have to go on for 15 minutes. There. It is. Want to say, I want to make a very, very good point here. I love this. I’m pouring gas on the already existing fire. So just to give me just to give you a good example. So in our agency, what we do, let’s say we have a client, they come to us, they’ve got two, three offers, right?
Very common. And they’re running traffic to all these campaigns. You know what nobody does. Nobody does a P and L nobody takes a look at, are. These offers actually profitable in which of those offers is the most profitable offer that they’re currently running, which then completely dictates where you’re driving your truck.
Right. Like, it blows my mind that an agency owner, and this is this where a business coach can have a perfect partnership with an agency, but like, how are they not looking at the numbers and believing their client that they actually know if their offers are truly profitable? Like it’s crazy in an ever-changing.
Online marketing right now, especially with Atkins where they are like, how, how are you not looking at the numbers? And, and maybe that’s an angle for business coaches right now as well. Like I realize you’re running online campaigns, but have you actually sat back and looked at the numbers of, are they truly profitable?
And are you breaking your offers apart? So I just wanted to throw that out there
[00:34:12] Karl: yeah. No P and L this is just comes back to what we just talked about. Right? Read there rather than reading the new, you know, sales and marketing book of the week, going to financial, you know, going to letters to shareholders as possibly a better place to get some knowledge again, allow Warren Buffett’s Charlie Munger which Jeff Bezos was up to for many years and apparently did pretty good.
And then also, rather than. You know, fluffy, whatever it might be, they might be studying like understanding financial statements. You go in road, dog just said it. You learn to read a P and L statement. And it’s just, it just, it’s a total game changer. And by the way, here’s a little ex facto it road dog just said, here’s the kicker.
When you go to your client and you ask to look at your P and L there’s a really good chance, Hey, they don’t have one in B. If they do which tremendously out of date, you know what I mean? Like it’s not, it’s, it’s, it’s going to be old, right. Too old to be able to look at it and say, hang on, we gotta make some decisions.
Like we gotta go. And then who do you need to go to, to get the P and L. The answer is their accountants. Well, Hey, let me come with you. Let me speak to him with you. Well, guess what? Now you’re on the phone. You’re in the office. Maybe not necessary, but would be a good idea. Cough, cough. What do you think that accountants thinking, Hey, a business coach that actually gets it right?
Like this guy actually understands what he’s doing when he’s going to his client and he’s insisting look in order to. In order to make some good decisions here, we get to be able to look at a scorecard and then what’s the scorecard, right? You got one. When you go, you’ve got a scoreboard. When you play football, when you play cricket, when you play hockey, you wouldn’t play hockey without looking at the scoreboard to get your butt kicked and you’re playing tennis.
And you don’t know when it’s breakpoint. You don’t know when you got advantage or they’ve got advantage, you’re going to get your butt kicked. If you guys have got any symbol. And so you have the main light, if you, if you’re not tremendously better or they’re not tremendously better than you, if they’re watching the scoreboard and you’re not, they’re going to kick your butt the same thing in football and every other sport.
Right. So that’s. You explain this to the account and he goes, geez, I get it, man. I know these guys know business owners just don’t understand. Right? Well, boom, there’s a really good chance that you just formed a relationship with that account. And by the way, maybe not. But if you do it 10 times, I get to tell you, you get yourself to referral partners.
And by the way, the more you do it the better, you know, again, the better you can get at cause you know, some of the accountants, hot buttons and that sort of stuff. And a great way to get on the phone or into the office of an accountant by going to your client and saying, look, let’s assess your P and L.
[00:36:52] Christian: I was just going to say too, as, as you and I both know, people, just, people will do something. They’ll have a little bit of success and they’ll stop doing it. Right. So it’s interesting when you take a look at it’s no different in online campaigns, like when you take a look at a breakout, certainly.
You know, like they’ve had success in the past, they’ve stopped doing it. They’re not moving on to something else. And they’re wondering why they’re losing money by looking back. And if you, if you have the proper data, it’s all data, it’s all numbers, right? Like, you’ll agree with that. If you can look back and go, man, you used to have this offer.
What happened then? Like, why, why do you ever stop running?
[00:37:28] Karl: Why they work so well, I no longer do it. Right,
[00:37:31] Christian: right. It’s like, oh wow. I was reaching out and asking three people a day, how I can help them in their business. And I was getting inundated with appointments. And now I’m just sitting here picking my butt, like, well, no kidding.
How about you go back to what was working. Right. So we see it all the time in the online world where I’ll audit an account and it’s like, why would you ever turn this off? Like your, your row ass was, was, you know, 2, 3, 4. Like, I don’t understand it, but well, because you know, you have to constant know it’s working, don’t break it, like, wow.
But anyways, this my, my rap, but I, I love it. Like, we’re fine. We’re not just where there’s current. Like, but if you, if they have the proper numbers, you can always go back and see what was working and maybe get them like anything like it was working so well, you said it, I just stopped. Y.
[00:38:20] Karl: Yep. Common, common, common shoots, common collar
[00:38:25] Christian: anyways.
So she’s at the top of the hour. So what pick one thing. What’s the, what’s your one thing besides having to become a better joke writer? Like what’s one thing that you can pull from today’s episode. People can implement their business right away. I, I hate to say, and I swear to God, if you say little red arrow, you are here
[00:38:46] Karl: in the house.
Pretend like you don’t love it to pretend. Look, I would say I don’t think I did a really good job of this, but like a little bit of what we talked about today is like, well, we’ll call acquisition. You know, like buying, like, so again, your client, depending upon what they’re doing, right. You know, you’ve got a construction company.
Okay. And they build houses. And then there’s a roofing company that’s been around for longer than three years. Let’s assume 10 years. The guy’s been doing a good job, built the dam. You know, when I say built the database, highly doubt, he built a database, but he’s built a list of clients. He’s got a bunch of phone numbers.
He’s got his notepad with all the, you know, the phone numbers and whatnot. Everybody thinks she’s following up and all the quotes that he did and all the jobs that he did, yada, yada, yada, yada Yeti, like going in and potentially. You know, buying that roofing company that is already operating it’s already got the roofers.
It’s already got the materials. It’s already got its location. It’s already got it. Two jobs lined up for the next, you know, three to six months and acquiring that again. If one company has. You know, a high valuation wouldn’t be connects in that world by the way, but let’s just go, it has a 10 X valuation, which it totally tid.
It just, it would have to be doing, you know, millions of dollars in a world like that. But let’s just say one, company’s got a 10 X valuation and then they buy a company with a two X valuation by bundling it into your offer. You just increased the value of the asset. Big big, big time. Okay. So look, Warren buffet.
What is Warren? Buffett’s? Super power. It’s he finds undervalued assets. Okay. So an example, another example that might explain it better. Okay. There’s a house for sale in your area, and you’ve got an intimate knowledge of your area, right? Like others just from other cities won’t have, and there’s an old lady on the street.
And she wants to move the house is just too big for her at this stage of her life. Okay. And then she wants to sell it and she’s willing to sell it for let’s say $500,000. And you’ve got intimate knowledge, you know, for a fact that that house is worth 650 grand, or maybe, you know, the layout where you want to do with real estate.
You always want to add a bathroom and a, and a room. If you add a bathroom in a room, you will increase. Let’s just say you put a 10%, 20% down payment. You’ll pretty much get your by doing a, you know, an appraisal. After the fact, after you add a bathroom in a room, you’ll basically increase the value of your house.
Be able to go back to the bank, pull your deposit back out, and now you just got a house for free and you could go do it again. Right? So what I’m saying, you buy a house. What do they say? 500 grand. That’s worth 650. The day. If you buy that house from her, you make $150,000. As soon as you sign that paper.
Okay. The ant, I don’t care if you’re rich, poor, smart, dumb, whatever. Right. You make $150,000 as soon as the ink hits the paper and it’s a done deal. Okay. Well, if you have a if there is a business, okay. And you buy it for again, simple number, a hundred thousand dollars. And it is worth 250,000. Okay. When bundling into your offering and you can do something with it.
And by the way, if you own, I also going to assume I said this earlier, if you have a construction company, I would assume that roofing is either something you need to bring in or something. You’re eliminating an expense because you’re now going to be buying, you know, shingles and that sort of stuff, and getting a labor significantly cheaper than you.
Otherwise we’re doing the frame, right. But the bottom line is if you buy that company and you bundle it up and it’s worth an extra $150,000 when you sign the paperwork. I dunno, you just made $150,000. You’ll have to have the skills in order to manage that team and not let them all go bye-bye and have to reapply everybody 10 minutes after signing the paperwork.
Now that would be a headache, but that’s part of your due diligence and whatnot. That’s a company that you don’t buy. You would’ve made an error and by the way, you might do that once, but then you would learn. How’d that happen multiple times, or you’re gonna have a very short career in the acquisition world.
Anyways. I, I think that there’s power in that I don’t think people are thinking about, they’re thinking about growing their business you know, through clever marketing and that sort of thing. They’re not thinking about growing it through acquisition and that’s something where. Having a look at
buying under valued assets is how Warren buffet and Charlie Munger made a lot of money to the tune of, again, more money than any of us could count. I think that’s maybe a place to sharpen the saw a little bit thinking about with your clients and the beauty. So here’s the thing. So you’re sitting there thinking I don’t want to go and acquire companies.
Here’s the magic. And this is where I believe as a business coach, I was a little bit different. I was like, if I took you on as a client, if I didn’t feel like I could learn something because I was never short of a lead, I was never short of a client. I mean, Yeah, it was a good business coach and I was out there and I put myself out there you know, without hesitation.
So I always had clients. The question was, could you teach me something? If I felt like I could learn something I take you on as a client, if I didn’t feel like I could learn something, it was no, thank you. What am I getting at? So if one of the things, if you’re in that kind of boat and all you need to do is be willing to put yourself out there and be aggressive in your region and your conversion.
You know, you might want to think about. You know, businesses. And one of the things that you ask them is, are you interested in acquiring other undervalued assets and then give them a little bit of a framework? Like I just don’t mind to you and listen to them, you know, listen to the tonality and the words that they use over the phone, not just their words, but the way they use the words.
And then if you’re lucky enough to be in the office with them, read their body language, not just what they say. And if you feel like you have somebody who would be interested in. And going and buying 10, you know, one competitor, three competitors, 10 competitors over a period of one to three years. That’s why you’re going to learn to acquire businesses.
Without doing anything, imagine what you’re going to learn to that process. How incredible that, and how incredible is that. And by the way, your coaching client is not thinking about this on their own. So if you didn’t bring it to them, they wouldn’t be thinking along these lines. And I got this really profitable business, and now they’re going to acquire their competition as a growth strategy, as opposed to turning Facebook ads on which.
Might not be by the way, but could, could with capitals be an unbelievable opportunity. And if you help them find under valued assets, as in the roofing company, that’s worth 3 million that the guy is sick, tired over, it just wants to move to Hawaii. He might take significantly less than that. Then you’ve done a really, really good thing.
Doug, that might be a little bit about. You know, a little bit of a shift in some business coaches thinking just, but again, starting start a company versus buy a company. Again, most people will think as a frame that starting is less risky than buying and they’d be dangerously wrong. They need to understand more than just that statement and that they need to be three years old.
Cause then they got over the bunny hop and you need to be able to read financial statements and whatnot, or you could be in for a horrific surprise. But you’d learn and there’s some really good people out there to guide. So anyways, that’s my.
[00:46:47] Christian: Is that a bunny hop?
[00:46:52] Karl: I used to do that in my next racing days.
You know what I’m going to say? Now? Hang on. Hang on. The movie rad was filmed in my high school. I was a little bit young. I wasn’t there yet, but rad was filmed in my high school
[00:47:18] Christian: movie
[00:47:19] Karl: shot. I don’t know, 86, maybe
[00:47:23] Christian: 85.
What was it? Grad 83. Like what,
on that note, it’s time to wrap this sucker up because I could go down a rabbit hole as well, but you know what? I leave those exclusively. For you, that’s why your pretty picture is on this. And by the way, folks, for those of you, please let us know. If you think a much better image would be a road dog, putting KB in some sort of a headline.
Now we’re talking. I think we need to, I think we need to listen to the people and I think we need to update the image. I think that would be a fantastic image myself. Anyways. Thanks for tuning into another episode of business coaching secrets with the man on top of the hill, that king himself king car on.
If you’re not on the inside and getting access to the free show or you aren’t getting access to Carlsbad. With his X-rated jokes. Be sure to go to focus, subscribe today. You see that it’s a teaser Carl. That’s what we call that in the business at T. Right. If you enjoyed this podcast, please share the fellow coach or someone you think might make a great coach or a great salesperson or somebody who’s just a fan of Tom Brady or Tony Robbins.
And of course, as always, we’d appreciate that. You know what I just realized I am your Rob Gronkowski to your Tom Brady.
[00:48:50] Karl: This is happening. Anyway. If you
[00:48:54] Christian: enjoyed the podcast, please leave a review. As we know, the streaming services, leave an insane amount of weight towards these reviews, and that is it for another week.
And that is it for me, getting distracted. Remember folks progress equals happiness. We’ll see you on the next.
[00:49:12] Karl: Carl Brian built profit acceleration software. 2.0 to train business coaches, how to find any small business owner more than $100,000 in 45 minutes without them spending an extra dollar on marketing or advertising.
This becomes a business coaches, super power. So as a business coach, you’ll never, again, have to worry about working with business owners that can’t afford your high-end coaching fees. Check us email@example.com.
Karl Bryan, creator of Profit Acceleration Software™
Karl is the Founder and Editor-in-Chief of The Six-Figure Coach Magazine and Chairman of Focused.com, home of the largest private community of Business Coaches (24 countries and counting) in the world. His goal is straightforward… to help serious coaches/consultants get more clients. Find out more at focused.com