BCS: 171 | Group Coaching or 1 to 1 + Elon Musk’s Business Model

Business Coaching Secrets with Karl Bryan

BCS 171: In this episode, Karl answers questions about:

– Should you do group coaching or 1 to 1?

– Elon Musk’s Business Model

And more…

Karl Bryan helps business coaches get clients. Period.

For more magic on how you can grow a coaching business by attracting small business owners, filling local live events, and closing more high end coaching clients… go to focused.com

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EPISODE TRANSCRIPTION –
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SFC 172
[00:00:00] Karl: Welcome to Business Coaching Secrets with Karl Bryan. If you wanna attract new high end coaching clients, fill live events and build a wildly profitable coaching practice where business owners pay, stay, and refer, you’ve come to the right place. In this podcast, Karl provides his keys to the kingdom for finding and signing. High paying clients and building the coaching business of your dreams. Here we go.
[00:00:40] Christian: Ladies and gentlemen, Boys and girls, coaches around the world. Welcome to another episode of Business Coaching Secrets to Boy The Road Dog, with none other than the man, the myth, the legend, Dr. Karl Bryan at your service, not a real doctor. Karlos, welcome to the show.
[00:00:56] Karl: Here we GOs. How goes at row dog? Doing good, bud.
[00:01:00] Christian: Going. Wonderful my friend. Listen just in the pre-show exclusively for focus.com. See what there. Real nice placement. Just had gentleman talk about how, how clients can get overwhelmed and you made the comment of Wow, typically that falls on the shoulders of the coach Now. Yeah, I know that you in focus.com, you guys have been doing a a ton of work because listen, if it’s one thing I know about the amount of materials and stuff that, that is available through your program@focus.com there, what do people always say? It’s like drinking through a fire hose. I get completely overwhelmed. So you, you also have been guilty of this yourself. I was wondering if you could address that in terms of. How do you deal with that? Like, how can you make, as you say, you know, it’s like eating that elephant, right? Yeah. I’m not sure that’s PC anymore, but it bite size chunks. . Like how do you, how do you. How do you deal with that?
[00:02:04] Karl: Manage? Well, okay, I’ll tell you right now, literally before we started doing this, had an internal meeting with our folks, like, you know, my staff. And what we’ve done is we’ve created individual tracks. First of all, Road, Doug, you get, you know, less is more and you gotta strip away some stuff. Right. Reminds me, you know, the old story of Budah.
Right. And there’s just like clump, like it’s just mud, mud, mud, mud all over Buddha. And then the guy goes, Oh my. And then you chip it all away and all of a sudden there’s this beautiful gold Buddha, right? Well, they said, Oh, how did you create this beautiful Buddha? Something to that effect. And it was like, Well, didn’t create Buddha, I just chipped away everything that wasn’t Budha.
So there is an element of absolutely chipping away you know, documents that might be a little bit old, rather than let them fall to the bottom of a resource center, you gotta kind of eliminate them. Right. But what we’ve done is we have put, we’ve created tracks. So we have an onboarding advisor. We have, well, three of them.
And then they have a specific track that they walk the clients through, and then there’s a role play specialist, and then there’s three levels. And then at level one you get one level of role play specialists. Then you get level two, and then you get level three. But again, at the end of the day, it’s a track.
Then we’ve got lead generation, which is what we were on going deep on today. But same thing, but the X factor, what I’m trying to bring across is by putting coaches in place and support in place, you really think about a business management is borderline everything. Intentionality actually, I would say would be everything, but you’ve got, you know, you need to manage it.
And the way that you’re gonna man manage it is to collect some stats, hold them accountable to their own stats and just have somebody there to, to guide, hold their hand. Cause what’s that saying? They don’t care how much you know until they know how much you care. So having somebody there to support ’em hold their hand and guide them has gone a tremendous, We’ve seen this over the last 90 days, six months.
It’s gone a huge way in helping that overwhelm. So managing the individual as best you can is is important and that’s what we’ve done. But we’ve, we’ve created tracks for the whole thing. So depending upon where you’re at, will depend on. What track. And then we also have a track for, we have a lot of folks who build teams of coaches, same thing.
We’ve got a one to one coach, we’ve got a manager of the entire thing. Stats being compiled and that’s what we’re doing. Shoot. So, so that’s the answer, but, Truthfully, it’s it’s, it’s that balance, bud. It’s the balance.
[00:04:41] Christian: Hey, listen, can you just back away and stop making out with a microphone just a little bit like it sounds like you’re eating it.
So there you go. . When you talk roleplay, I just, it’s funny cuz like describes it very differently, what you call role play. I just wanted to say, it’s funny, I was watching some Tony Robin stuff last night and two things that really stuck out for me. It’s amazing how you can go back and watch. Some of these videos that are so old, man, it’s unreal, but still so relevant where he talks about you need to ensure that people feel progress.
Like just the importance of that alone. So obviously you’ve got that factored into your tracks, right? Where it’s. Yep. They’re just, they have the sense of I am
[00:05:26] Karl: making progress. Small wins a big part of it. Yep. Small wins. Small wins. You, you eat the elephant one bite at a time. You gotta give them some small wins and then acknowledge ’em, by the way.
Right. A high five. But yeah, it’s, it’s like back in the day there was this study between Xerox Believe it. Yeah. Xerox. And they found that they had say like, you know, they got sales people ripping around. So they experimented with. What do you call it? Like the, the threshold, that’s the wrong word, but like the number of calls that they needed to make.
So they had one group that needed to make three calls a day or three contacts a day. They had another group say that had to have 30 contacts a day, and then another one that had to have a hundred contacts a day. Well, it was the group with the lowest. Number of required contacts per day who excelled the most.
So if you look at it, what happened is that they accomplished their goal easily, again, a small win. And they just, they ended. Doing significantly better if I were to break that down for a coach or to coach a client, which you gotta do, like everybody’s got a todo list, right? Like road, Doug, you got your to-do list for today.
I’ve got mine and they’ve got theirs. Nobody’s getting through their to-do list. You’ve got to go through the to-do list and find, just call it the three most impactful things. That you need to get done and get those done first. And then what’ll happen is not only will you get those three things done, but you’ll end up knocking over significantly more throughout the day because you’ll get a little bit of what’s called momentum momentum’s, a force multiplier for business.
You just, which you would small win. Small win would be momentum. So
[00:07:05] Christian: it’s interesting when you say small wins, I just see you standing on a podium mix, accepting an award. So I’m on fire today. Shoot. Just you’re on fire. Shoot. Like it’s clarity of my mind right now is next level. So just be aware. Anywho.
All right. Oh God. This is gonna be a home. I have, Oh, okay. Here’s the deal, bud. So we had a client this is about software, so I got a caution everybody. Carl’s been. Waist deep. So, you know, like angle deep for me. In software for, well, how many years have you been focused on just like, just this group coaching software alone shoots.
It’s crazy. But the question here is coaching is looking to build software. Any tips? Now this should be gold, gold, gold, because I am sure you have made your fair share of mistakes and have got your learning points. What tips would you give somebody that’s looking to build out some
[00:08:00] Karl: software? What would I say?
Look and then again, agreed like in. Look, look, ask yourself, is there any money in what’s easy to do? And what I mean by that, you know, you could start something simple and then you could start something hard. Software, I don’t think you need to have built software to know that that is a, you know, slippery, slippery slope.
But again, is there any money in what’s easy? And, and I don’t mean simple by the way, cuz complicated business model doesn’t scale, right? So what do they say? Simple scales. Complexity fails, right? So I wrote a popular email, slash blog recently, and it’s like if something is easy and makes money right away, then it’s gonna be duplicated easily.
Right. And then if something’s duplicated, easily uncommitted, idiots looking for a quick buck are gonna be coming. Right. And then uncommitted idiots looking for a quick buck are coming, then you’re gonna have lots of competition. Right. And then if you have lots of competition, that means you won’t be able to exit.
Cuz they’ll just. Like why? Cuz it’ll just copy you instead cuz it’s easy, right? So, and plus you’d get like a poor valuation, which means it’s not valuable. You’re not gonna be ex able to exit and you’re not gonna be able to scale, right? Again, it’s easy, but on the other hand, a complicated business that doesn’t make money right away is difficult to start, right?
If it’s difficult to start without easy money to get it going or what we’d call bootstrapping it uncommitted. You know, get rich quick types are gonna stay away. And then if those guys stay away, guess what? You’re probably gonna have less competition and it’s gonna take them longer to try catch up.
Right? And then if you got less competition, you’re gonna get a higher valuation. It’s gonna be exit and it will be exit able to hire multiple. Cause again, it’s complicated, right? Like they’re not gonna be able to just copy it. So, so that’s why software in my opinion, is a, a great business and frankly why we went into it.
But my advice, make sure they’ve got twice as much money available as what they assume. And it’s probably gonna take twice as three times as long, like you mentioned group coaching software. We’ve been building that out for, I’m gonna say two years, you know, like 18 months, kind of like flat out. It’s over a million dollar sunk just in, that’s a very small piece of the software, but a million dollar sunk into that plus, plus plus.
So just, and it, you know, conveniently took longer, more complicated, et cetera. Right. So, Another, like, so if they were gonna build out software depended upon, you know, talents and where they’re at in their market, but like, consider selling users into it as soon as possible so that you’re actually building it.
You know, with clients, so you’re not just building things that you think are gonna work well, you’re gonna be building things like the feedback that we have got on the group coaching software and the digital acceleration software, et cetera, just blow you away, right? So we’ve had like PAs, like profit acceleration software.
I’m gonna say that it’s eight years old. But even if you looked at it eight years ago and you looked at it today, I mean, you literally, it’s not, It’s absolutely positively non recognizable. And a lot of our clients have been around that long and they would say exactly that. Right. So, so that’s, you know, like building it with clients.
I think that that’s a, you know, talk about a force multiplier like that would, you know, that’s not always possible, of course. And you gotta be careful that you’re not giving your clients something that doesn’t work. Cuz then that’s gonna backfire for obvious reasons. But you know, and make sure you’re looking after your software guys.
Like again, we’ve got one of our software guys, like the lead developer, you know, he is over eight years, he’s vested. He’s, you know, small percentage, small percentage, small percentage over an eight year period. So that’s mission critical. Road, Doug, I’d say also like what? Like look at, okay, there’s a toothbrush test.
We’ve covered this in different podcasts, but like the toothbrush test is what Google calls it, where they don’t work on anything. You don’t use twice a day or more, right? So look at like Google Maps. If you’re driving around all day, how often would you pull up Google Maps? And the answer is certainly twice a day, if not significantly more.
Think of your Google Calendar if you use that. How many times a day do you. Right. Email, again, Gmail. They went into that. Not only do you use that more than twice a day, I mean you, a lot of people literally use it all day. You know, YouTube, same thing. Would you go back on different days and used YouTube a couple of times?
Again, it’s the second biggest search engine in the world. Google Docs, again, if you’re creating a lot of documents with your staff, back and forth, back and forth, back and forth that that’s, so does it pass the toothbrush test? Are they using it on an ongoing basis? So what we’ve built recently is called a coaching portal.
So that’s Imagine Road Dog. You know, you got your client and it’s like you ask him a question, he gives you an answer. You guys shared documents back and forth. You wanna be able to go, let’s say you have a client that you wanna look back to, a conversation that you had six months ago, nine months ago, 18 months.
Easily go in and search this guy’s account. So we built a coaching portal where basically everything that you would go through with the client, including correspondence and shared files and statistics and the questions that we would ask, and then of course the capturing of the answer to those questions.
So you could revisit it next week prior to the call for five minutes before getting started. So we build that, and again, that passes the toothbrush test by a. Otherwise again, you end up building a software tool, which is cool, but the toothbrush test has got an enormous amount of power. And then thinking about also your, your coaching with your client.
Like how can you make yourself what my mentor would refer to as a plug, right? So something that’s difficult to do without, but, you know, road dog like. It’s funny cuz you gotta open this up with like, you know, slippery slope, but it’s, you’re best positioned to coach the person that you used to be, right?
So like, translation, where were you five years ago, 10 years ago? And then dial in on that. And find that guy or that gal to coach, and you’re gonna excel wildly, like you gotta, you know, you’re a really good salesperson, a little bit disorganized with a little bit of, you know, entrepreneurial a d where you fall into the, you know, too many ideas too, too many ideas and not enough implementation.
And then you’ve combated that and you’re five years down the track and you understand the importance of management, accountability tracking statistics, et cetera. That would be a really good client for you to coach. So again, like somebody who was gonna be, you know, starting up a software project is just, I could, you know, that would just, you know, falling off a log, like, here are the things you gotta watch for, so forget me.
You where were you five years ago? And like, is that individual? Be a fantastic coaching client for you. So, So there you go. Shoots. That’s what I would say, bud.
[00:14:51] Christian: All right then. There you go. Sounds like there’s been a. Kind of really exciting changes happening inside of the software. I’ll have to at some point I need to get back in there and check all that stuff out.
That sounds really good, man. That’s one. Listen. We got a question. I, I didn’t catch this email, but it’s in regards, I guess you had a take on hypnosis and sales in one of your daily emails. I don’t know how I missed that, because hypnosis is like magic and you and I both are like magic nerds, which is by the way, seriously, like that is the way to our hearts is through magic.
That is a fact. And did I tell you who I saw when I was in Vegas shoots? Did I tell you? It was Shin Li, you know who that is?
[00:15:33] Karl: No. Is that Oh, oh. The from America’s Got Talent.
[00:15:37] Christian: That’s the dude that won that and he won the the pen and teller. Beat them twice actually. Really? Oh my God.
This guy’s insane. And he’s got just an unbelievable story. So good. So good. Anyways happening at, I believe, where was it that. The Mirage. Really good show. Anyhow, speaking of magic you see how easily we get distracted with magic shoots, like Guy his thumbs, and so he was basically told he would never be able Magic.
He overcame the,
[00:16:10] Karl: so there you go.
[00:16:10] Christian: Anyways, hypnosis and sales, you mentioned that in your daily email. Can you, can you just sort of explain, How you do that with clients. Like I guess ethically, of course to get a client, you’re not gonna literally hypnotize them to take out their credit card cause that would be very wrong folks.
[00:16:31] Karl: you’re getting sleepy. You’re getting sleepy.
[00:16:36] Christian: So tall.
[00:16:40] Karl: There you go. Shoot. Well done, well done. Boom. Okay, So yeah. Okay. So I wrote a an email. you, like back in the day, you know, and again, I, you know, oh, well, over a decade ago I used to close a hundred thousand, $500,000 coaching clients. And that’s not some wild exaggeration. Absolutely. Got it.
You know, for coaching arrangements, and what I would do is I’d create a little bit of a preframe, really what, probably an open. Would be a better way of describing it, but I basically had clients all but closed themselves. Right? So I don’t know that it was hypnosis, but absolutely has. You know, parallels in fact.
And again, I’ve had a couple of the most famous hypnotists as clients and one had the longest running adult hypnosis show of all time in Vegas. And Marshall Silver is also a long time client and a friend. But anyway, so look a hypnosis. Hypnosis, Am I saying that right? A hypnosis can get you to do most anything.
And what they do is they use like factual statements, right? So they tell you something that is true leading in pacing with that. And then they follow it up with what they, what they want the prospect to do or believe, right? So like an example would be row dog. You, you hear the sound of my voice speaking to you and you are sitting on a chair.
You can feel the palms of your hands resting on your thighs. You can feel the sos of your feet against the floor. When you look in this direction, you can see the light of a candle, and then, and as you do, you start to fall into a deep, deep state of relaxation. Right? So like basically the first few sentences are simple, undeniable, hard facts, truths.
And then the last state. You know, as you do, you start to fall into a deep state of relaxation is a, is a direct suggestion, right? So next thing you know, your prospect is hypnotized. And if you’ve ever seen this done, and I have been hypnotized at that adult show by the way, and oh my God, was it funny? My wife, she needed almost.
She, she the say she laughed pretty hard would be understatement of the year. But any who so look at, so if you were selling coaching how could you do this to a similar effect? Again, be careful with this cuz you don’t wanna look like a cheese ball, right? But like and then maybe the first time to do it would not be in front of, you know, a really, really high end client just in case you know, it doesn’t go so well.
But, you know, as you look at my profit acceleration, There’s like, there’s 12 key areas on the profit acceleration roadmap, right? So as you look at my profit acceleration roadmap and you see 12 key areas of your business, you can see none of those 12 areas has a larger than 5% increase. My profit Acceleration software found you 94% compounding increase, which totals 215,000 of profits for you.
This. As you acknowledge the incredible effects of my profit acceleration software, your only question is when can we get started? And I hear like as I say that you’re like, Oh my gosh, what? Like, first of all, could I ever memorize that? And let’s like, So all you, all I did is like you just make four true statements, right?
Like whatever the color you see that the color of the wall is blue , right? Just may, which that wouldn’t work quite as well as the example that I gave you, but you. You know, forum true statements and then you direct them towards where you wanted them to go, right? Like, and again, your only question is when can you get started?
Be very surprised if you said that to somebody, what the, the reaction could be. So maybe play with that a little bit. Again, I would, I would. Yeah. I would caution you from just going all in and say, Oh my gosh, this is the secret cuz this, you know, this takes, you could imagine a hypnotist doesn’t go in front of a room of a thousand people and all of a sudden hypnotizing people, right?
You do it in a very small group and then you get a little bit better. A little bit better. But I can tell you that it is about, If you’ve ever seen that show and you just think, Oh my gosh, I can never do that. Well, I could tell you that it is significantly easier than what you probably think. Right? And then there was another consistency.
So I, this was to do with my daily email. And like, you know, you’ve got your conscious mind and then your subconscious mind. And what I was saying is that like, you know, you probably like, some people like ’em and some people hate ’em and that’s fine, right? But like, you like my tips, you like the tactics, maybe you like the jokes, maybe you like the fact that I’m a little bit politically incorrect, but that’s your conscious mind.
But your subconscious mind is attracted to the consist. Because, you know, every day I’m there, you know, good day, bad day, rain, shine, holiday, no holiday, summer, winter, doesn’t matter. My email is coming thick and fast at approximately the exact same time every single day. Right, that consistency, and I’ve often talked about that, like on social, right?
You wanna do well on social media, you’ve got to be consistent. So if you’re there one day and then not there for another month, and then you’re there three days in a row and then you take two weeks off and then you’re the, in your clients on a subconscious level, by the way. They, this, this will not, this, this could work the opposite.
Another thing that we’ve talked about in the past, like the people who buy from you, opt social and you know, again, in some cases, you know, like your email list, it’s the lurkers, not the ones like when you go and put up a post and you get like, you know, 86 comments. A lot of the time it’s the people that leave the comments that will never buy from you.
And it’s the people that are watching and don’t like, don’t share, don’t comment, but they’re always watching, right? And the algorithm is recognizing this. And then again, putting your content in front of that individual, whether they like it, comment that on, share it or not. But they can tell how long that if you’re actually reading a post.
The consist, so the, the lu with their subconscious mind, not necess, I highly doubt their conscious mind is looking for this, but it’s their subconscious mind that goes, This might be the right person for me to follow. And so I think that there’s a little bit of magic in that. And it’s, and again, that is that hypnosis.
It’s, look, it’s your subconscious mind, right? Which there actually no, it’s their, well, yours, but it’s their subconscious mind looking at you. You know, it’s, it’s, you ever spoken to somebody and they just have this groundedness, like, think of your grandfather, right? And they’re just, From a place of love and a, Yeah, I couldn’t word it any better than just a groundedness about them.
Right? Well, your body, So when you sit with somebody, what do they say? 7% of your communication is verbal, but to maximise your business potential, it’s also imperative to adopt a reliable communication platform. Your Business Number offers an ideal solution with its Whatsapp business numbers, enabling seamless client interactions and elevating your company’s reputation.. Your grandfather has got a groundedness. You wanna try and achieve that groundedness with your prospects, with your clients, with your kids for sure.
But people that you wanna influence. And again, and it’s not their conscious mind that will see your groundedness, it’s their subconscious mind that they just feel a level of. Confidence and, you know, comfort in your presence and, and that could work really, really well. But that’s only gonna come with some experience.
But yeah, the consistency and the groundedness of that is very important. So even Ro Doug, you read somebody’s like, again on social and it’s just too obvious this person’s trying to sell a little too hard. Or you read an email and again, the person’s trying to sell a little bit too much. You know, And then the opposite happens, and that’s the person you’re more attracted to.
But the bottom line consistency road dog is what I wanna bring across. And that is super important in my experience of watching people is that they’re not very consistent and that’s a bad thing. So work on that is what I said in the email. What
[00:24:40] Christian: do you think? There you go. Love it. Love it, love it, love it.
Consistency. Okay. I guess if I’m looking at this, like, can you give us some hard examples? Like you’re, you’re talking leverage and stuff as well, right? Like when, when assessing a new business opportunity, right? Like, let’s, I just, I’m scrambling here. Like when you’re looking at a new business opportunity, what would you consider to be the most important factors to move forward?
Like is that, does that make sense or is that too, too, you want me to.
[00:25:08] Karl: No, I think, and you start look fundamentals, I mean, that’s a 1 0 1. Nobody knows that better than you, right? You wanna help a business owner and you want them to crush it, whether, you know, depend, you know, funda, whether they’re highly experienced in doing, you know, 10, you know, 1 million, 5 million, 10 million a year, or just getting up off the ground.
I mean, fundamentals, it’s obvious. The size of the opportunity is something, you know, like you could have gone into crypto. Three years ago and been the worst operator in the world and we, we’ve all seen some of those guys and absolutely crushed it or gone into cannabis right. You know, cannabis became legal in Canada not that long ago, right?
Well, if you were Johnny on the spot and ready to go again, you could be the worst operator in the world and probably do really, really well. So that Warren Buffet would describe that as, it’s not how fast you row, it’s the boat that you’re in, right? So like anti-aging is something that we’ve talked about again, is the population getting older?
If you, Well, it’s just a, it’s a, it’s a data thing, right? It’s un a hundred percent undeniable that we have an aging population, so therefore, going into anti-aging, if you did it properly, you’d have more and more clients every single year. Right. You know, social networks, again, if you went and you built something to, you know, like, is Elon Musk gonna buy Twitter?
Or is he gonna go and build a rival to Twitter? Or maybe he’s just gonna exit entirely . My opinion is, and I said this a while ago, but I think that that whole Twitter thing might be his undoing. Shall see, But I don’t think he’s overly pleased at the moment with the way it’s all going. But the bottom line is, would you know, will he go and build a competitor?
To Twitter, which is, you know, gotta be, if you’re gonna, what was he gonna spend, whatever number, insane number of billions of dollars to buy it, You know, Surely he could go start his own. And of course it’s gonna take a while to get some steam to be a much better idea to buy Twitter if it was on you know, for the right price, et cetera, et cetera.
But if you started the social network and you got any kind of traction, like just TikTok is now like the most popular website. On the internet over Google, which just blows my mind. But at the end of the day, it’s a social network, right? Metaverse you know, and like, like the Metaverse that might, if you believe that the Metaverse is gonna become absolutely massive, then we’re all gonna be living in this You know, virtual world in the not too distant future.
And Zuckerberg apparently thinks it’s a pretty good idea. I would say that you’re, this would be a bad idea. Cause I think we’re five seven, you know, we’re, we’re a number of years off that being a major, major play. But that being said, if you were at there at the right time, you’d be looking pretty good.
And, and Zuckerberg knows that he’s way, way, way early. He’s positioning himself so that when it does crack, he’s gonna be Johnny on the spot and he’s gonna look like a genius. And it might be the opposite, and the stock market would reflect that they, you know, not everybody’s on board with this whole metaverse play.
But anyway, so gamification again, I see a massive trend towards that. Like Robin Hood, if you follow that, which I. I ly oppose the way that they’ve gone about doing it. What they do is they’re making it really sexy and fun to make trades and stocks basically, right? Ding, ding, ding, ding, ding. Like a slot machine.
And there if you followed it, little bit of whatever out there, but gamification, if you could gamify. Some of what you’re doing help others gamify, like, you know what I mean? So these what business opportunities, how I’m assessing it. It’s like eSports again. Do you see eSports becoming bigger or smaller?
I mean, I don’t know, but I, I’d say that there’s a massive trend towards it. I know that, you know, Magic Johnson and Tony Robbins and so many heavy, heavy, heavy weights. Are in that world. If I’m a business coach and I’m looking for some clients to, to coach, you know, I’m, I’m not just looking at the business and the personality profile of the guy or the gal running.
I’m looking at the industry, the boat is what Warren Buffet would say, and I’m, I’m, I’m using that to assess part of the, you know, the niche or the client that I’m going towards. Maybe on a lower level. Think Colonna, right? Like we live in a city where there’s 250,000 people and it’s a beautiful place with Lake Mountains in the summer, the population.
You know, it multiplies by 10. In the summer, not so exciting, but there’s still plenty of people in the winter, by the way, cause there’s lots of great skiing. But at the end of the day, if, if you agree with what I would say and that’s, say the population’s at 250,000 roughly, and it’s going to a million where there’s an enormous amount, Like there’s some very obvious things that are gonna happen in and around real estate where you could do really, really well in Kona.
Right? So, Like the gold brush days back in the 18 hundreds, who made all the money in the 18 hundreds? Was it the, the, the guys panning for gold? Or was it the guy selling them the pans and selling them the shovels? And no doubt a few guys panning for gold crushed it and there was some anomalies and some big, big, big, big, big winners.
But I’ll tell you, the guy selling the shovels killed it made less than, you know, the guys who really killed it with the gold. But what they had is more of a guaranteed return. So if you were in a city that was gonna grow from 250,000 to a million, you could go and sell real. And you could do well. But if you’ve ever heard my take on that, I wouldn’t wish that on your worst nightmare like to go become a realtor.
I just, I would not do that. No recurring revenue. Yes, you could make some good money, but there’s no recurring revenue. People literally forget the name of their realtor, you know? Couple years after buying the house. So you’re always fishing. Always fishing. But what about like a fencing company? What about like a landscaping company?
What about a, you know, there’s lots of pools where we live. What about servicing swimming pools? Like if it’s gonna grow from 250,000 to a million, can you see how a lot of those businesses. Are gonna naturally do really, really well. So I don’t know if these are some of the things I’d be looking at recurring revenue, recurring sales, kind of what I just said a minute ago.
But like, I would start a cleaning company or a pool maintenance company right where I came and I opened pools, closed pools, and then, you know, sold you chlorine, et cetera for your hot tub and your pool long before I’d go into something without recurring revenue. Just, it’s a, it’s a fundamental principle.
I’d have to have gross profit margin. We talked about that to death. But again, like how much does it cost to take on a new client? You know, how much does it cost to sell? Just the bottom line is that like you gotta understand your margins and specifically gross profit margin. Cuz if you don’t have a healthy gross profit margin, you’re gonna get yourself in trouble.
Example of that, just to make it in layman’s terms, if you owned a restaurant, You’ve got, say you got 10 dishes and then one’s lobster, and then one’s macaroni and cheese. The price of macaroni and cheese is not gonna fluctuate, so you can set your price and then just live with it lobster in and out of season.
What does it do? It goes up dramatically and goes down a fair bit, right? Depends upon the time of year will. That’s why when you walk into a restaurant, it won’t have a price. It often says market price as opposed to a price for lobster or. Right. That’s why Gross’s profit margin, you could, Cause if you just set a price, you could end up losing money on that individual dish or breaking even, or making a really small margin.
And what is the point of having your most expensive when, when somebody comes in and buys lobster, I’ll give you the red hot tip. They’re, they’re not price shopping, right? Just whatever the price is, the price that they’re gonna pay. And if it’s an extra 10, 20 bucks or whatever. Or more. It, it’s just, that’s probably not what’s gonna be decided.
If they want lobster, they’re gonna buy lobster. Make sure you got a healthy profit, gross profit margin on that individual dish, right? That sits in front of the individual. So without going through all that, I’ve talked about that, the debt. But these, this is important. Road dog. Leverage for sure. Like there five types of leverage, people, money, software, marketing, and knowledge.
I would make sure that I’ve. Leverage hardcore. I’d also debate road, Doug, or you think about that, but like emotions could be leveraged. Like fear of often talking to like, you introduced me to professional hockey player. I’ll show you somebody who was like scared to lose more than love to win. You know, so you could leverage fear.
And I know that in my own personal entrepreneurial journey, I have absolutely done that. You know, it’s like you fight, like there’s spider flight. Right. But like again, you, you know, you gotta, you know, you gotta make sure you’re doing it at the right time and you’re not allowing that to make you the worst bit there is standing still.
Right. If your emotions, you know, make you pause, we, we’ve got some issues and you’re, you’re not leveraging them, you’re, you’re doing the exact opposite. You know, I get like, people will leverage Time Road, Doug, Right? Like where they’ll pay somebody else to do something. Right. So let’s just say that you’re doing sales in your company.
And then you hire a salesperson, right? Which may be a fantastic idea. It might be a horrific idea, by the way. But you hire a salesperson now in order to properly, so you’re leveraging people, right? Five type, you know, people, money marketing software knowledge, right? Like people, you’re leveraging a person.
If you’re hiring somebody, pay ’em, you know, 15, 20 bucks an hour or whatever, you know, whatever you pay them, right? Then the goal is to make money off that individual. But my question is, now what are you doing with your time when this guy’s selling? What are you doing, you know, in your 10 hour day? And you need to get him to sell and then you need to do a high, a higher value activity while he’s selling.
In order to actually get the benefit of the leverage. I, I hope that’s drop in for everybody. It’s very important, right? Like you gotta, you’re gonna leverage people. The question is, okay, a very important part of that is what you are now doing. Otherwise you should have just stayed in sales cuz that guy’s not gonna make as many sales as you.
Or I’d be, I’d be surprised, right. So, you know, make sure you’re looking for higher leverage opportunities as kind of the, the moral of that story. So, so that’s what I’d say shoots. What do you think?
[00:35:07] Christian: You know what I’d be doing with the extra time? I’d be gusting on your cdu. That’s what I’d be doing, bud.
Put that thing in the lake. It’s embarrassing. Listen, by the way, you mentioned the the gold rush stuff. Dude did, did did the series gold what was it? Gold trails and ghost towns ever make it to to Calgary. That was a local Cologna show. That was with Bill Bar, the late Barley Love era Gold era.
It’s, you’re learning lots about the Bud
Build rush. Dude, that whole Prospector era was just, it’s, it was just unbelievable, right? Like as everybody’s. Chasing it. It’s no different now, right? Like what’s the latest old, like when you just look at that right now it’s crypto. Everybody thinks they’re like, What can you sell to the crypto people, right?
Because they all think they’re gonna become gajillionaire by really not doing anything. It’s
[00:36:08] Karl: amazingly
[00:36:11] Christian: that has no backing or guarantees of absolutely anything, but I’m gonna become rich. All right, now that we’re all clear on where road dog stands on crypto and selling air, Can you give us some examples of leverage being used, like actual real life examples?
[00:36:26] Karl: Yeah. Okay. Good point. So people, money, software marketing know, no doubt. There’s other examples. These are the ones that I would look at, like people I just gave you one, you hire a sales guy. And then you pay ’em and presumably, you know, again, you pay him 20 bucks an hour or 50 bucks an hour, it doesn’t matter, right?
Like that’s not, I’m not debating the what you’re gonna pay your sales guy. What we are doing is we’re gonna hire a sales guy so that you don’t do sales and presumably you can make more money. But what I just said is so important. If you are not doing higher leveraged, higher value. Activities during that time, then you’re actually going backwards seeing that a lot.
So anyway, so that would be an example of people hiring people money you know, Road Dog. We, we find that apartment building and, you know, it’s worth whatever it’s worth. Let’s just call it a million bucks for simple math. We gotta find a way to come up with 200 grand. But now we get $800,000 of, you know what I mean, magic there.
So you buy a 200, so you put down 200 grand, but you get an asset worth a million dollars that you could, you know, fill with You know, tenants, and then you could go in to do a lipstick job and, you know, put in new windows, put in new doors. Whenever you buy a piece of real estate, try put in a door, or sorry, a, a room and a toilet, right?
You’ll immediately increase the value of that property. But the bottom line is that we borrowed somebody’s money. We could borrow the 200 grand, buy the million dollar asset, improve. Go back to the bank, have it reevaluated and then get our money back. The 200 grand, go back to our, the guy who we borrowed it from, pay him 10% or whatever he, you know, we had agreed on.
And now we’ve got this asset with effectively no money down in semi record time. In, in, you know, not too long. The bottom line is that if I borrow your money, pay you 10% and then I do much better than that. That would be an example of using other people’s money, which is what most people think of when they think of leverage, but don’t know if that’s such a great idea.
Software, I think like this podcast. Okay, so we’re gonna go and put this on you know, iTunes or we’re gonna put it on Spotify, or we’re gonna put it on YouTube. And then one you know, one audio recording could get as many downloads as we want because. It’s just, there’s no extra, you know what I mean?
To put it on Spotify and to put it here, there, and everywhere. Not gonna cost us any extra. Right. CRM software would be a better example of that. Where you’ve got a database of one, you’ve got a database of a hundred, you’ve got a database of a thousand, or you got a database of a hundred thousand, does it cost you any more to have a hundred thousand people versus a thousand people?
And of course, if you’re sending out emails regularly, the answer is yes. But if you know what you’re doing, it’s gonna be negligible and there’ll be a massive amount of leverage there. Where again, you, you could, You know, software put one person or a hundred thousand. Marketing, same thing. You know, you, you could do a direct mail piece and you could spend $10,000 and you could make zero.
You could make your 10,000 back, or you could make a hundred thousand with the exact same piece. But if you know how to craft a headline, you know how to craft and offer, you know how to educate. Et cetera. You could really leverage marketing. I’d imagine everybody listening to this understands that one.
But it’s a bit like, again, you go to YouTube and you could put. You know, your video up and they could watch it one time or they could watch it a million times. It could make one sale, no sale, a hundred sales or a million sales. It’s not really gonna cost you any extra cuz the cost of the marketing was already done.
So it’s so you, you know, high leverage opportunity marketing, if you know what you’re doing. Knowledge, again, I don’t know that you normally would hear this bundled in with leverage, but I gotta tell you that I, I believe that the ultimate. Leverage. You got this thing compounding where when I learned it’s if you’ve got a solid foundation one small little tweak, like why, like Warren, I’ve talked about this a lot in the, lasted a while, but Warren Buffett spends 80% of his time reading, so why?
He’s not, he doesn’t need to learn the fundamentals at a higher level. Let’s face it, the guy’s got it in spades. What he’s looking for is an insight. One little tweak, one little tweak, one little tweak, one little tweak. And that tweak can bring such a profound have such a profound impact on a business, on an opportunity, on an existing business, on an existing opportunity, on an existing marketing program, on an existing software.
Et cetera. You know, like, so your knowledge is where you can really get leverage. If you build your knowledge on a really sound foundation and then you get one new insight, it can really, really move the the needle. Like we get a, a buddy. You know, beeps, right? He’s got a trucking company and then I trying, so talking to him and it’s like if I owned a trucking company and I had 10 trucks running around, the real money is in the software behind the trucking company.
Right? Like Amazon’s gone into the transportation career. Business, right. To get, make sure they get their units out quicker. Well, I, I don. I haven’t spent five seconds looking at it, but it just 100% of software play over a courier play, if that makes sense. Like the software behind it will be so good and so amazing that You know, it’s, it’s gonna be killer, you know?
So, but then, then the problem though with the trucking industry is, what am I talk to him about this. Like it’s staff, same. If you owned a concrete company, your problem is not growing. You could grow at what we just described, Great Road, Doug Colonna. It’s got 250,000 people. There will be a million people.
There’s gonna be a lot of concrete port. You could absolutely kill it if you started a good concrete company, or I would say, Right. Depending. You got skills and you know that space. The problem that you’re gonna have, the insight. Second, third, fourth order consequence is as you grow, you’re gonna struggle with staff because the quality of the individual who’s gonna drive a concrete truck is not that high.
And he’s probably gonna be hungover, he’s gonna be drunk, he’s probably gonna make some mistakes. He might have a drug problem. He might have, you know, kids and all. I don’t know. I don’t know. You know what I mean? And maybe I’m wrong, right? But I’ll tell you, if I started a concrete company, I know that I’d be looking straight at staff.
As the, the threat to grow the same way cleaning company. You know, I’ve talked about my neighbor you know, they’ve got a multimillion dollar cleaning company, but they have got mom, dad, grandma, grandpa, son, daughter, and a couple other relatives that work in it. So it’s a, it’s a family business and then they’ve all adopted it and they’re not, Look, do they love the cleaning industry?
I dunno. But I’ll tell you that it’s built on one very, Impressive cleaning company and they, again, they just, you know, they do a darn good job. I call the guy the prince. He’s very cool guy. But anyway, so So there you go. But, but be, if you take the family members out, would they have done the same thing?
And I would dare say not would’ve been significantly more difficult. So they would’ve, they would’ve struggled to leverage people the way they have, but they’ve done well because they’ve got, you know, it’s a full blown family business. So, So Ro Doug? Yeah, those would be some Examples that, Is that what you’re looking for?
Is that what you mean? Yeah.
[00:43:32] Christian: It’s funny you say, struggling to manage people. I struggle just to manage you, to keep you on time with the podcast, which is truly amazing. So in, in 10 words or less close us out with giving our listeners one thing that they can implement and start doing from today’s podcast.
[00:43:48] Karl: And I’m counting 10, 10 words or less shoots. You know what? It’s, Yeah, I’ve already gone over. I think that the, the, the leverage thing, like where, okay, you’re gonna hire somebody to do what you’re doing and your client is gonna hire somebody to do what they were doing. What are they doing while that person is doing that thing?
I think that that is an insight. I think that Warren Buffet, when he would’ve discovered that wrong long ago, but when he did, he would’ve referred to that as something powerful, and we gotta make sure that that is a higher leveraged opportunity than the one that they are forgoing. Otherwise, they should just, damn well stay in sales.
So there you go. Shoots. That’s my answer. What do you. On point.
[00:44:34] Christian: Love it. Listen everybody, thanks for tuning into another episode of Business Coaching Secrets with the man on top of the hill, King Karl and if you’re not on the inside getting access to the pre-show or you aren’t getting Karl’s daily emails, or you just want more information on how to build your coaching company, Or of all this great software that Karl was building inside of focus.com.
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