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Hey, this is Daniel Audunsson here. And welcome to video four in week number three, called mechanics of scale. So in this module, I'm going to sort of pull everything we've been going through this week and in the previous weeks together for you and really help you understand the mechanics at play when it comes to scaling your business. So at this point we've covered a lot of ground and in the next couple of weeks we're going to really go through the things that sort of add fuel to the fire and really help you grow the business. So we've been working on a lot of internals and the things that are essential as the base, as the foundation for you to be able to then add fuel to the fire and actually grow the business successfully and sustainably. So the business doesn't implode back on you, after you grow to a certain point.
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With this going to happen if you don't have the right things, the right mechanics, the right systems in place. So this is an incredibly important module. And at the end of this module, you're also going to come out of it with a specific plan to scale your business. So I'm really excited to, to go through what I'm about to share with you and show you these things. So let's just dive right in. So here's what we're going to cover in this module. We're going to talk about scale. So I'm going to help you really understand scale and how it works. And to be honest, most sellers that I speak with that I have spoken with about this topic don't understand really, you know, what it's about or what it takes or what actually makes a business scale and what, you know, what does it mean to be scalable, for example.
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So I really got to break it down and show you the things that I've learned personally from scaling. Uh, you know, my business and several businesses a big in the last seven years. And you know, my understanding of scale has just totally transformed. I know what I used to think about it when I go sort sorted compared to my understanding of a no. And it's, you know, a night and day different. So I'm going to help you sort of have, you know, the same, um, I guess vision or perspective off scale here in this module. And I'm going to really break down the things that I've learnt about scale. So you know, you have a better understanding of what it actually means to scale a business and what it takes and huddle works. Then I'm going to show you some secrets of scale. So there's some secrets to scaling a business that most people aren't aware of.
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And I'm going to show you those things and what they are and help to make them work in your favor so you can scale your business faster and more successfully. Then we'll talk about it, Connie, sorry, economics of scale and really like the data, the cash, the, the numbers element of scaling a business and hold that actually impacts your ability to scale and really determines, uh, how quickly you can grow. And then finally, I'm gonna show you how to plan for scale. So again, you're going to come out of this module with a specific plan to scale your business. So that's really exciting and it's going to really help you know, help you basically move forward after this week and start specifically, uh, scaling your business according to a plan with a roadmap. And then with, you know, a lot of the, uh, you know, armed with a strategy that's in the systems that I'm about to share with you, uh, for the rest or during the remainder thing, weeks off this program.
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So hope this all makes sense. That's what this module is about. And let's proceed. So first part of this module is understanding scale. So again, I'm really gonna know, break down the main things that I learned when it comes to scaling a business and really, you know, the, uh, you know, the theory, but also, you know, I'm really going to help you understand how everything we've been talking about comps back now together and how it all ties in with each other and how it all works together to basically make your business scalable or not. So this would help add a lot of clarity to a, or for you when it comes to scaling and how to actually scale a business. And a lot of the things I'm about to share with you now, and we're gonna talk about now here in this module, these are the very things that actually make a lot of entrepreneurs, a lot of sellers feel stuck and they actually hit that ceiling, hit that limit, and it don't really know how to move the business forward.
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It's like something happens and it just won't budge. So new, we're going to show you how to break that ceiling and what actually happened and how you can, you know, flip that equation around so that you basically become like an unstoppable train, right? And you're, you're going through the, uh, the tracks and you know, you're, you're, you're gaining more method and you're getting momentum and basically your business becomes rather unstoppable. It is powerful stuff. So first thing is this quote by John D Rockefeller. Uh, you know, I think he's considered like the second richest person in history. If you look at the relative wealth that he had at the time when he was alive. Um, so yeah, well, he said this, don't be afraid to give up the good to go for the grit. And that's really what this is about. Now, you know, you might have a good business that you're happy with, but if you're truly relentless, like if you're a truly hungry for success, which you should be, and you shouldn't be afraid, afraid, or ashamed to be.
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If you want to be very successful and you want to grow a big business, you need to accept and embrace that side of yourself, right? So if that's the case, if you are truly relentless and you want bigger things, then you can't be afraid to give up the goods. So you might have a good business right now and that's great, but you can't settle if you sat on that and your habit of that, what's going to happen is that yeah, you're going to have their business, but then really what's going to happen is that that's going to decline because you always need to be more than $40. Need to be seeking growth for things to really grow. Uh, and I don't, things are growing or they're really, you know, moon backwards. There's no real stagnation. Uh, you're not going to have a business that stays at the same place forever if you don't do anything or you're not moving it forward and evolving.
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Right? So really it's about, you know, giving love, maybe a good situation and taking some risks because you want not as a good situation or a good business. You want to great situation and a great business. So that's what this is about. Now, the great thing about our business model is that it's got a lot of leverage and therefore it's inherently scalable. So selling private label products on Amazon, especially, you know, Fba, one of the reasons so many people have been successful with this model is that it is actually an incredibly good model, like as as business model. Of course there's pros and cons to everything, but you know, this is one of the most powerful models out there for, for building a business, at least online because off it's designed. So by nature there's a lot of elements there, make it scalable. There's a lot of leverage, for example, with Fba, Amazon, you know, ships, the product takes care of the refund, all that for you.
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Uh, so you can scale really as big as possible or you know, as you want, without that becoming like a stream or something that weighs you down, then you need to take care of, you don't have to build, you know, the facilities, the processes and all of that to, to do that. Right? Uh, that's something you can just scale, um, at will because Amazon does it for you and there was a bigger than Europe probably going to grow your brand ever. Right? So their capacities and an issue. And there's more things, you know, like another leverage point that's huge is actually sell them on Amazon. So actually having access to the volume and having, you know, that sort of organic traction and momentum built up for you, where to get into a better and better position if you do it right and you're more and more traffic and more and more sales.
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And you know, there's a lot of leverage within the model. Uh, and you know, the bigger the orders you place, the lower your costs can be. And there's a lot of great things that are working in our favor. And if you really just look at the model itself, there's no reason you can't run a massive business that this model, and there's a lot of people that do because it's possible know it's not some, um, you know, pipe dream or there's nothing really broken there. Versus if you look at certain other business model, let's say a service based business that can be way, way harder to scale because it's inherently sort of flawed. So like the more you do, like the bigger your scale, the more customers you have, the worst. Everything sort of becomes by nature. If you're serving people one on one, for example, give me harder, really scaled that, uh, with like a service type business.
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So this model is very scalable and that is great for us. But at the same time, you still have some essential systems that'd be must run and he must run them well. So we've already covered this this weekend and there's some systems we actually need to run them. You need to run them well and we need to scale those systems up, right? So it's not completely like you don't have to do anything. Of course you do, right? But it's pretty simple still. But more sellers, they actually don't do these things in these essential systems, human, uh, well enough to really scale big. So the thing here, you know, it's really, if you're not a good systems thinker, we already covered this. You're going to put up blocks and you're going to put up barriers to scaling Your Business Yourself. Like you're going to create those blockages.
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And those barriers because you're not a systems thinker, so you're not designing the business from a systems perspective and you're not designing it so that it actually can grow and it can grow and scale without, you know, really like reducing the value that you're providing and then things becoming worse, right? It's all about that. Now is, is how good of a systems thinker argue. That's what it's really all about when it comes to scaling a business and why more sellers can scale it is really, you know, this, we've covered this, right? It's, it's, you know, you are in the middle there and everything goes back to you. And of course you as a person, as one individual, you know, you are limited, right? You're an incredible, uh, being. You are so powerful, right? But at the same time, you are human and you are limited like your time and energy can only do so much.
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So if you dishonor your business like this, it can never scale past a certain point. And we already talked about this, you know, this is the number one reason most sellers can scale. And this is not a good systems design. This is like a very linear, a siloed approach and it's going to break, you know, it's going to overwhelm you and you're most likely going to burn out and your business is going to shrink again or you're going to, you know, sell the business or giver, right? So what happens with this multiple here is that your business actually get worse. The scale because everything you're doing becomes more and more overwhelming and the quality of everything goes down, right? So that's bad system design. Now that decentralized model, is this really what you must put in place, right? So you must put in place a system where you know he can scale.
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You're not going to be a limitation. You can add in more dots. You can add in more dots in the middle between things and you can break things down like this and, and really like, you know, set up smart systems. You can set up automation, you can set up other people that can take care of certain things and manager and things. And it's a decentralized model. Things are connected, information flows where it needs to flow. You're not creating waste because of, you know, say wasteful communication and misunderstandings and all these different things, right? It's a coherent, um, holistic system that fits and it works as a whole. And the decentralized model is scalable and it's not only about hiring more people, right? So I've been through this, I've hired a lot of people. I go literally hired hundreds of people on my journey and you know, I've had 50, 60 people working for me at one time.
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So I know for a fact that, you know, it's just not about, it's not just about hiring more people, right? Cause you can hire a lot of people and it doesn't necessarily certainly mean that things get better, you know? So I've learned that firsthand that you can also add more people, add more people, but you know, you could do something else and that could give you better results. They're going to make you more scalable than just adding people. Right? So I'm going to really break that down. And of course, yes, you need to hire an ad people, but that's not, you know, that's not the be and end all of this. Like I think most people think you just have to delegate, delegate, delegate and hire, hire, hire. But you know, there's way more to it than that. Scaling is really, you know, not about just hiring people, it's about how you design your systems.
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It's about how good your systems are. And it's about how you measure your systems, right? So scaling is mostly about this, you know, this is how you can make a business way more scalable. And you could go farther with say 20 people then 50 people, right? If you, if you had a business that is poorly designed, you could have 50 people and still have a smaller business than a really well designed business that has like 20 people working for you or less even. Right? So it's really mostly about this systems design, how good your systems are, and then how you applied data and measure your systems and to scale. You really must be a systems thinker. There's no other way about it. That's why I've been really hammering that point home because I really see that as a number one reason. People face serious limitations in business and other businesses.
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It's because they don't see the systems. They don't see beyond the obvious and the linear, right? So you need to become a great systems thinker. And for every action there's an equal and there's an opposite reaction. So that's a principle, you know, that applies to everything, right? If you do something bad, so to speak, there's usually an equal and opposite reaction somewhere. Um, it could even just be within you. But you know, my point is like if you do something, let's say you showed at someone, they probably are going to shout back at you or they're going to be at least feel bad, right? So it's going to like, there's an reaction. Same thing if you go and you watch TV and eat pizza and an ice cream, the opposite reaction of that is probably going to be that you don't feel so good, uh, or at least you lose energy and things like that.
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So it's tied in with like the first and second and third consequences of things like we've talked about. But, um, when it comes to scaling, what'd you have to understand this. When you increase sales and you more customers, you're also going to increase your costs and you're also going to increase the, um, operations that you need to, to make it happen, to run it, to sustain it, right? So it's not as about you, I'm just going to blow up my sales and then expect there's nothing else that's going to happen. I'm just going to make more money in some of our product. Now the thing is that's going to cost, you know, the opposite reaction of that is, is stream, you know, there's more demand. There's um, yeah, there's more pressure on the business, right? It's, you know, there's more that needs to get done, right?
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So there's more costs, there's more, more of a need for operations, that kind of thing. And this is only, most people don't really understand, I think. And what really happens is when you have more customers, you also tend to have more problems because business in a large part is just about solving problems and providing solutions. That's really what it's sort of about them. That's how you create value. And inherently with business, the bigger the volumes, the more customers you have, the more problems you have or likely to have, like more things can break on you. So the bigger you go, the title of this ship really needs to be, you know, it's just like, you know, uh, you're applying pressure and how, you know, homeless pressure, can you apply it without the system breaking? Right. That's really the question. But the cool thing is that we can actually flip this relationship into our favor so we can have more customers and yes, we're going to have more problems, but we can make it so that it becomes disproportionate.
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So proportionately from our customers, we have less problems. So it's like we might have, you know, a 100 customers and 10 problems, but then if he, you know, grow 10 eggs to like a thousand customers, you're not going to grow the problems. Tennex we're not going to have a hundred problems. You might just grow the micro, the business 10 x, like we go from a hundred customers to a thousand customers. But the problem is might only go from 10 to let's say 20 right? That's this proportionate. So that's what you want because that's essential. So you can scale. So you must flip this relationship and you missed the sign your business and work on your business so that you can grow and proportionately you don't have, you know, as many problems. That's what you want. Then the business is actually getting better. Let's scale. It might be bigger in later.
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More problems. They'd proportionately, you have less problems and businesses actually better, right? So there's a lot of things you can do and we'll talk about, but you want to learn from what's happening and to learn from data. I wanna do things we've been talking about. Improve your process, improve your supply chain. Always be measuring things and applying a, you know, a better system design and improving hiring better people and making the, the ship tighter and tighter and tighter. Cause now you can scale bigger and bigger and bigger. And actually the business, while it has higher number of problems because you're doing more things, you have more products, more employees, proportionately it has less the businesses actually better.
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So again, this is how it works. You know, this is what I just said with the, uh, you know, those numbers. I'll give you a clearer example. So like let's say you edit or you add the 10,000 new customers to your business and you add 10 new products and you add 10 new employees. Now you might have like a thousand new problems, right? As an example, does showing you numbers here, if this is not in formal attire, should we use, this is just a, uh, an ex hypothetical example to illustrate what I mean. And then what you can also do. So you could attend those new customers, have 10 new products to new employees and a thousand new problems. That's what you could do, right? But you could also at 10,000 new product, sorry, at 10,000 new customers and seven new products and only for new employees and only have a hundred new problems.
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And what is the difference? Like why could you do that? You know, on the right there you could, you know, we'd still at 10,000 new customers but only a hundred new problems versus pentose new customers and the thoughts and problems. And this is the difference, right? So the on the left here, that's one seller on the right here, that's another seller, right? They got the same exact end result basically with how many new customers they acquired. Or You could say like their revenues. So this could also be like the added $100,000 in revenue, right? Same exact end result. But one of them has way more problems and complexity than the other one. Why is that? Well, the difference is really in the systems and it's in the design. So with better assistance, you could make it to 10,000 new customers with less product, right? If you have a better strategy, you have chosen your product better, you're able to expense sales on them more with better systems like advertising and you could have whale as employees because your systems are smart and they create leverage and you have things like, let's say an online Faq.
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You have smart inserts, parent rent, you know tickets, you know you have a great advertising system so that you, one person can run a lot of things and do a lot of damage, so to speak. You know all these things, right? You hire a players who you've hired people that produce Tenex. The output of someone else mits is 100% by the way, the case, I'll show you how to hire like the a players that literally produced 10 x more than on average employee. So this stuff makes all the difference. This is how you can scale a business successfully and faster than your competition. It's all about having less problems and less strain and making that relationship disproportionate, right? So you grow. But overall the businesses getting better cause proportionately you have less issues, problems, strain, that kind of thing and whatever you do, and I've seen this, I've done this, you must not scale problems.
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So for example, if you have a product that's having some issues, right, there's some complaints and you see some, you know bad scientists with it, right? There's no misuse there, you're not getting the best reviews, that kind of thing. The last thing you want to do right now is to actually go and grow your sales tax on that product. Because what's going to happen is that that's going to magnify the problems with the product Tenex, probably even more, you know, you're more likely to then have serious issues and cause a lot of problems and damage for you and it could implode on you. So you might grow in 10 x but then it just all comes crumbling down eventually. So you cannot scale a problem up. Like that is the worst thing to do. So before you, within 10 x to sales on that product, you would have to fix those problems, tighten the systems like in your production.
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In that case, if the product has quality issues, you know, maybe you have to re define the product a bit, the strategy, but also yeah, it really implement the strong things in your supply chain to prevent those qualities is figure them out. Maybe you need to switch the supplier, you know, you need to fix the problems before you scale that thing up. Or if not, you're just scaling problems and that's obviously not what you want to do. And this is the thing that you must avoid at all costs. Like this is the worst thing of all that you can do. And that is really to have, or I guess a scale of business where the relationship that's, you know, going on in the businesses that the more customers you have, the worse everything gets. Like the lower the value. So what I mean, this led to doing, you know, 25,000 a month, right?
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And in sales and you're sort of like running a centralized model. You're in the middle, your managing things and it's sort of all depending on you and you know, do some things and it's kind of scrappy but it's all right. Right now everything is fine, people are happy, pretty good. But now you grow to 100,000 a month. And then what happens in this case is that you're overwhelmed, you're responding late two tickets. You might not be managing your production as well, so you have more quality issues. Maybe you skip on a final inspection cause you just don't have the time and capacity to do it. Um, you're late, your inventory planning is off, everything starts to break and you literally offer less value. Like your business is offering less value to your customers and the more you grow, the worst this get like the worst, the lower the value, right?
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The worst everything becomes. And that cannot scale. If that's going on in your business, you can't scale. You know, you can push it and push it and be completely distressed and overwhelmed. But at some point it will break and fall. And that just doesn't scale. So you must fix that. You must make it so that with more customers you're actually able to, to make everything better and actually improve the prize. Get more on top of things you'd have better. Call we control, learn, understand even more how the products work, collect the feedback. I have a system so you can actually create version two and version three that is even better. So this is the key, right? This is how it works. This is really how you can make a business scale big and succeed and you know, sustain the growth, the scale. So really, you know, what'd you must do is you must work on your systems is you've talked about, but he was also potentially pace your growth.
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You know, you must also make sure you can man, it's an handle what's going on. Of course, getting help, hiring people that can help you a lot. But you also need to have the self awareness and discipline not to go too fast. Like don't push the throttle. If you really maxed out, cause then you're gonna come into that corner. And if you're racing a car, let's say, and you're going to come flying off the track, right then you're not aware, you're not, you know, you're not pacing yourself so that you can sustain it. Right? The guy that's gonna win the race as the one that can, you know, sustain pace through the track, the one that can keep the car on the road. And actually we moved through the track without issues, but still as fast as possible. So he's still under control. He's not, you know, there's another guy that just goes, you know, basically past the limit and loses control.
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They could, that is not how you win. That's not how you scale either. So keep that in mind. This is what it's all about. And if there's relationship, again, it's gone on, it's gonna ruin your business. You know, if you know, if scaling means everything gets worse and you provide less value to your customers, it's going to ruin your business, then you're better off not the scale that a lot, you know, and then you're better off to just keep it like it is. Right. And that's always not what you're here to do them. So he wanted to make sure this is not gone on. And remember this, you know, I explained this in the first video here this week, the Amazon flavor. So this is really, you know, a fantastic system and this system scales, you know, because as a gross everything gets better. And this is what you're aiming to do with your business.
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Now it doesn't have to get as extreme as this, right? This system is extreme. You know, this is the genius design and you don't need that. You can still grow a mess of business without something, you know, this powerful, you know, you don't need this, this kind of design, but still it should be in this direction. It should be decided so that it actually gets better, right? So for example, the more you grow, the lower your cost structure overall. So you might be able to offer lower prices and still make the same amount of money. Uh, you evolve your products, you learn more about the questions, people ask in the problems people have, the customer experience gets better because the product to support everything is better. It's better designed now. You know, you get better reviews, snow, get more traffic, now you get more buyers and now you know, you can grow the business and improve their selection.
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So the brand or role is growing, you're getting better. Um, yeah. More customers. Like it's the same thing, right? You can create basically the same thing for yourself or a very similar type of system or situation, like a flywheel type of situation. And that's really what you want, right? Improve efficiency. Uh, get faster, like improve everything. And you can do this right? And this is how to scale. You must assign your business or the bigger it gets, the better it gets. Right? And it doesn't happen overnight. It takes work. It doesn't happen by itself. Like Amazon did not grow up by itself, right? Either it is a good system design, but they had to fight for things and you can read their story and see, you know, what type of hell they went through in the beginning. Especially, you know it, it isn't it isn't this going to happen by itself.
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That's not what I mean by by with this at all. But it means that you should always drive to design everything better and you know, really flip the relationship into a fever. So the bigger you grow, the more ammunition than more leverage and everything you've put into the business, the more you're able to refine everything and the better everything actually gets. You know, your systems, your servers, your product, everything. And again, you do this with Smart System Design and leveraged. So for example, things in your business model and our business model that you can do as you grow is you can leverage your growth. You can leverage your volumes to lower your costs per unit, right? Your or more, you negotiate, you get better shipping rates, you optimize, you can optimize your systems and everything. So they also costs less per product. So you can mix the scale, work in your favor, uh, you use data use scale to and the volume to improve products.
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Again. So we were using the data to improve everything, improve your systems, you know, improve your advertising, your products, everything. Uh, you're able to hire better people because you grow and your business becomes a more attractive place for someone to work. And everything really is getting better and better. That's how to scale. So you must strive to skew this relationship into a favor. Again, it doesn't happen on its own, but that's really your goal. Um, when it comes to scaling is always, always looking to make this relationship as skewed into your favor as you possibly can. Make It. So really like the problems you encounter a proportionately to the number of customers you acquire or sales, you know, the, the smaller, uh, that percentages of problems, right? So it goes down and down. So the more products you sell, proportionately, the percentage, if you look at it like that as a simple math equation, the presenters, the proportion of problems in the business that come up because of selling, let's say 10,000 products is less and less Laura, Laura, because you're preventing problems, you're fixing problems, you're improving things for making them tighter and tighter and you have better and better systems.
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And this is such a crucial, crucial, like, I mean this is really what scale is about. You know, this is how you make a business scalable. And because it's so important, this is the pinup for this module and it's called design for scale to, this is something you don't want to forget. You want to make sure you always remember this, this is your goal. And I put her in brackets, uh, some texts to help you remember what this is about as well. And it says this scalability of your business depends on how it's designed. Always strive to design smart, effective systems and never stop improving, create leverage wherever you can. The more you can do with the less and the more leverage. Uh, sorry. And the more you leverage growth to improve your business, the bigger and faster you can scale. And that really summarizes, you know what this is about, right?
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So scalability depends on design and you always had this striving to design smart and effective systems and never stop improving your systems and you want to create leverage wherever you can in your business. And we'll talk more about it in this module as well, how to do that. But you already know, you know how you can build leverage the systems and things, right? So it requires, you know, so basically like a smaller input generates a bigger and bigger output, right? And the more you can do with less, again, the smaller the inputs required to two x output and the more you leverage your growth, like your volumes to decrease costs and you know, data to improve your products and ads and everything, the more we can leverage the growth factor to improve your business, the bigger, faster you can scale it. So that's what it's all a, and again, this is a pinup that's available below this video in the resources section. It's a pdf you can save and open up and print and pin up on your wall. Highly recommend you do that if you want to scale your business. So you remember this relationship and you remember these things right here, you know, you remember that this is what it's about when it comes to scaling and building and designing a scalable business.
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So that's really how scaling works. And you know, so those things that I've just mentioned here, these are really the, the uh, this is the essence of scaling. Like what really, of course you generate sales and things like that, right? You have to grow from their perspective as well. But this is really like the, you know, the system's perspective and really like how to design something that can actually scale. Because if the is off, if it fundamentally isn't scalable, it isn't gone to scale, no matter how much you kick and scream and fight it, it's not going to happen, right? That's why this stuff must be done right. Then you must understand these things and you must get them right and then all of a sudden the floodgates of scale open up and you'll be amazed at what happens and how quickly you can actually scale a business up because everything is working in your favor and it's designed.
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So that is sort of the default thing that happens with it. And really it's like pushing a stationary train off the ground. So he must also understand their scaling your business. You know, it's not easy in the beginning. It does require a lot of effort and time and energy and focus and it's like pushing the station to retrain. He need to expend some energy. You need to put your muscles, your strength into it and really push for it to start moving. But then what happens is that it can go exponential and what ruined determines how exponential this business goals and how fast this in a train starts to actually move. And in a, when does it become basically unstoppable would really determine that part of the equation is that design is the system design. Think about Amazon, you know, how they became so frigging huge, I mean exponential growth on a massive scale that would not happen if the system were, you know, weren't, wasn't designed to scale.
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Like if the system fundamentally couldn't scale, like this would never ever happen because it is so scalable and it's so clever. Uh, and, and, and really it's just everything works so that it grows because the better, the more it grows, the bigger it guests that better everything gets. That's when this happens, you know, it's like a snowball and it takes some time and only to push it off the ground, but then it just goes and you're just like, whoa, them, what's going on? Like that is, that is the best feeling in the world when he get to that point. That is exciting and that's what you can achieve. Um, and yeah, but again, you have to design it, right? So that's what happens because if you design it poorly, if it's a linear model, you know, even the straight linear line here on this graph isn't actually what happens.
(00:37:52):
It's more like as linear. And then it goes like straight and then it goes down, right? So it's not like, oh, linear or exponential is actually like exponential or limit is hit, right? So all this makes crystal clear sense by now. So exponential growth can only happen through good system design. And know what I'm saying about a lot, but I really want you to understand this. It's so fundamental. You must drill this into her, my mind tattoo this on your brain because, uh, if you have bad systems design, if the business isn't designed for scale, it will not scale persists from the point. And if you scale it, you are going to, you know, start to crave and chill because it's gotta be painful and it's going to be stressful. It's going to be overwhelming. So actually knows what growth can only happen through good system design.
(00:38:46):
And by leveraging the volume and the growth and the data you acquire in your favor to make everything better and improve. And that's when you really become dangerous. You know, that's when you, your size becomes an asset and it enables you to really like crush the competition. And especially like anyone that's smaller than you really doesn't stand a chance. The final thing I want to mention here when it comes to understanding scale is that basically your decision in business is fundamentally at the strategic level to compete or to create. So this goes back to the strategic framework, right? It's cool because back to the Prato strategy you can decide to compete head on with others or you can decide to create, maybe you compete head on with others a bit. That's fine. Like a little bit, you know, or to a certain extent, but really like you can also decide to create, generate value, improve things and that's the side of the equation.
(00:39:52):
Like that's the side of the coin that can scale really like the competing head on harder to scale. You can still scale and grow, but when you create, that's when you can have the exponential effect, really common to play and things just take off and you can grow and scale much faster and much bigger. And another quote by John D Rockefeller is if you want to succeed, you should strike out on new paths rather than travel. The worn paths of accepted success. And that's exactly what this is about. You know, compete or create copy others, be a me too. Or be different, be smart and be unique and add and generate and create new value. That's how you really succeed.
(00:40:51):
No, let's talk about some secrets of scale. So now I'm going to explain certain things that you know really are some, I call them secrets because I think most sellers aren't aware of these things, but these things really, you know, are things that can separate you. You know, like they can tell you way farther than the competition. Basically. It enables you to scale well, you know, faster and better than them. So let's dive in on those things. So first thing, even if you manage to sell like crazy, you must be able to manufacture enough products without quality issues. You must man orders and shipments not roller of inventory. You should, Caswell serves your customers even you know better and better, et cetera. So we've already mentioned this, but you must understand that even if you meant as a seller crazy, you must still be able to do these things.
(00:41:49):
If not, you're going to implode, you're going to fall back down. It's not going to work. And capacity and capability. That's what scalability is all about. Does your business have the capacity to grow? It doesn't have the actual capacity to grow. And will your business systems, the infrastructure and the team be able to accommodate growth. You need those things to grow. You cannot grow where you can only grow a certain amount without those things, you're just going to hit the ceiling. You've go into it, assuming you're going to burn yourself out. And in this business model because it's inherently scalable, you can get surprisingly far as like the center of your centralized model and like the person that really does everything, or at least you know, has a centralized model and you delegate certain tasks to people, right? You can get surprisingly far cause the, the model, the business model that we in this or, um, fundamentally like it's a good design, you know, it is scalable, but that's, you know, there's still a limit there.
(00:42:58):
Yeah.
(00:42:59):
And if growth causes you to stumble because of confusion, orders falling through the cracks, insufficient employees, miscommunication happening, not enough manufacturing capacity, you know you're not going to be able to sustain a scale growth, right. That is just a fact. And you must give up the good for the great. So the scrappy processes that are fine when you were small, they are not going to let you move fast enough. So I mentioned this, you might be doing like 25,000 a month. Everything is fine, but it's not going to be enough to get to 100,000 a month. So don't let that fool you. Like, Oh, I'm at at 25,000 I'm fine, I'm just going to grow to a hundred k and everything's going to be the same. It's not, you need to actually change before you get to 100 k so that you don't have an issue and you don't hit a ceiling and you can actually get there.
(00:43:46):
So basically it's like, it's almost like in reverse a bit. You know, you, you come in and you tinker with things and you deciding things and you switch things around, improve things, and then you come and unleash, you know, like the, uh, the flame on the fire and fuel. Nothing's grow fast and it's fine. And it's because you've lifted that ceiling by designing things in a different way, in improving things. You just raised the ceiling on what you can actually achieve. And then when you're doing, and then you pull the trigger on it, you push it, you add the pressure, you have the room to grow and everything is fine and your scalable.
(00:44:27):
So, you know, what will happen is, is you still rely on the scrappy processes. You'll either be putting out fires, are desperately trying to keep your head above water and all of that is really stressful, right? And it's not gonna work. So even if things are good, you must understand that you must be willing to actually give them up and you might think, oh, I need to change anything. Everything was fine. But yeah, actually if you want to grow, you need to change them now before you unleash the fire and actually try to grow. Because if you try to grow this design, it's not gonna work. It's going to hit a ceiling, it's going to make the business worse. And you're probably going to come back down to this point. And what it really takes to scale a business, uh, you know, scaling a business means setting the states to enable and support growth in your company, right?
(00:45:15):
That is what I mean. It means having the ability to grow with alt being hampered on the way it requires some planning potential is on funding and the right systems workflows, the right team technology and partners even to help you do this, right? So you must set the stage on this planet. You must set the foundation, right? You're basically, it's like you're, you know, building, it's like you're going to expand your house, right? To get a certain foundation and you've got a house on top of their cool. It's good, but you want a bigger house. So the first step before we actually go on build the structure is you must lay another foundation, you know, add to your foundation. It's the same thing here. And then you come and you built another part of the business on top and all you have a bigger business or a bigger house.
(00:46:05):
So it's the same thing. This is one of the secrets to scale. The more sellers don't understand. It's not about just on just going to comment, you know, do more giveaways and do more chat bots and, and does grow the business like that. It's actually you must first set the stage for a must make it possible and you must increase your capacity and your capabilities so that now you can actually grow and sustain the growth and be at a new level. And that's where you're at after you make that jump and make that growth happen.
(00:46:40):
And now I'm gonna mention some essential areas. Uh, you need to basically take care of and be aware of when it comes to scale. And these are the essential areas of scale. And really these are the exact areas recovering in this program. Because this program is really designed to take you to the next level and help you scale your business. And that's why these areas happen to be the exact things we cover in this program. Good systems as the first one. That's really this week what it's about. And we would discuss it in detail this week. And scaling is all about systems and the design. And you must ask yourself this question and you must be able to say yes before really moved forward and scaling. Do you have solid systems? If you don't, that's what you got to get done first. And then scale. Not, no, I don't have good systems, but I'm still going to go ahead and scale.
(00:47:38):
That is not a good idea and it's just not gonna work. It's gonna. You know, again, you're going to limit, probably going to fold back down our Indian strategy. So there's some things you need to have in place. You must be able to say yes to some of these questions. Like are you competing or creating? You should be able to say, at least I'm doing both. Or, um, you know, mostly creating, not only competing, right? If you're only competing, you've got to start creating a bit as well to really unlock the potential in your business. Do you have a good product strategy? So do succeed with ease or do you have a bad strategy or no strategy and you're just competing head on, right? Do you have great opportunities identified that you can tap into to increase sales and scale your business? You know, it's, you want to have something ready to go because at some point you're going to need to add products to scale further.
(00:48:31):
So you don't want to be in a situation that, oh, I'm going to go and scale, but then you're like, what am I going to do? I have maxed out with my product. I don't have anything new, new ideas. Of course you're not going to then grow if you don't have anything new to add to the mix. So that's what r and D and strategy are critical to scaling supply chain. Do you have excellent products that add value to the marketplace? You should be able to say yes to that and you should be proud of your products and know that they're good. Is your quality consistent and assured? If not, you have a problem and it's gonna cause an issue and the bigger you grow, the higher the volume with the product, the bigger the problem. When that thing breaks, you know when you have a quality issue.
(00:49:17):
So you must make it tighter before you make it, you know, go bigger. Can you manufacturer, can you manufacturers handle increasing production volumes? You know, do they have the capacity to support your growth or real? Will we have a situation where the lead time is going up or you know, they can't actually handle, uh, they can support your growth issues, apply to an effective and optimized for low costs. Is your inventory planning tied to your profit margin? Strong initial cast Seigel as short as possible. So we've already covered these things and you should be able to say yes to them all ideally because that is going to make it more scalable advertising. So if you can answer yes to the above, good. You are now in a position to scale. So if you've been following the training, the program so far, and you implemented things, you know, might still be in the process of implementing something is, but really, you know, now you should be basically at the point where you can say yes to all of the above.
(00:50:15):
And that means that you're now in a position to move forward and scale. But if you can't answer yes to the above, then you must work to the point where you can, you must fix that. You must get to the point, do the work and get to a point where you can say yes to all of that. Or you're going to basically scale problems instead of success. Or at least you're going to hit a limit. You know, you haven't unlocked the capacity to really grow and scale. So again, when you can say yes to the above, now you can add fuel to the fire and you can really ramp things up with the best possible advertising systems, right? So you want a really common and a play advertising to scale when you're ready. Um, and when you've optimized these things, for example, it doesn't make sale to really try to scale ad campaigns money. You know that you could pay less for your products in and now you're really not in the best position to scale campaigns. And before you spend money on advertising and things like that, you want to make sure that you've done everything in your power to make things, um, in your turn things in your favor so you have the best possible shot at least of making ads work really well and being able to scale big campaigns and rank organically and get a lot of sales, right?
(00:51:38):
So operations as you grow sales on our existing products and increase or improve your product selection strain will be added to your operations and systems. Understand that of course that's going to happen, right? And you want to automate and design smart high leverage systems as much as possible. We've talked about that, but then at the end of the day, you're also going to need to hire more people, right? You're also going to need some hand, some humans, and you must be able to find, hire and manage excellent people quickly and efficiently. And I'm going to show you how to do that in this program later on. And then he must be able to give them great systems to work on as well. Right. And this makes, you know, this basically enables your business to scale effectively when you can do this. But if you can't give, you can't hire people when you need them. You can't find good people, you have issues, you know, people leave and you train them and then just leave. Or you're bad systems. People don't really know what to do or they're starting to do things worse than you are doing it. It's not going to work, you know, that is going to make the business worse. The scale and is not scalable.
(00:52:48):
Okay.
(00:52:48):
No, some leverage points. So here are some points of leverage when it comes to scaling the business.
(00:52:56):
Yeah.
(00:52:57):
So you always want to look for leverage points. This will help you scale faster if you can find leverage. That's like the ultimate thing for scale like that is leveraged is like the um, you know, like scale scaling a business assists best friend. So like, you know, if you're wanting to scale a business, your best friend is leverage. That's my point. So you want to always look for leverage points. It basically means I can pull this lever and things go high, you know, or go fast, right? So it might be like you're pulling a leverage, but nothing happens because you have no leverage. You know, as you were pulling the lever and does rocking it back and forth, you know, and nothing is happening. That's like no leverage. But if you can pull that thing and there's a massive effect with just like a small pool, boom, you've got a lot of leverage.
(00:53:53):
That's what you want. That's how you can scale fast. So here's a couple of important points, technology and automation. So technology makes it easier and less expensive to scale a business. You can gain huge economies of scale and more throughput in the business with less labor if you invest wisely in technology and automation. Same goes really with better systems design. Now we can do more with less, right? It's smaller input, higher output. Um, so for example, if you have some technology or automation in place or really a smart system, no, um, you can basically pay less, spend less time, things like that. He get the same output or more output. And with this being said though, technology must make our systems better, not worse. So there's a flip side to technology and automation because I think, you know, people often understand this concept, but the problem is that a lot of entrepreneurs, a lot of sellers, they will put in technology and automation that actually makes everything worse.
(00:54:59):
No, that actually isn't good enough. You can't do that. You, we can't automate or add technology into something and then it's not good enough. You know, like, um, for example, the inventory planning, if you, you know, I'm not saying you can't have automation or technology that can do inventory planning well enough for you. I'm not saying that at all. Uh, I'm just saying that if you put in some inventory management software that isn't really planning or inventory dynamically and and well that is worse than actually having a manual process for it and actually just paying a human to do it really well because the consequences way outweigh like the consequences of having a bad system or automation that does a bad job, that the consequence of that is going to far outweigh the cost of having a manual process, for example. So it does understand that.
(00:56:01):
So that's a challenge with technology and automation, really outsourcing and partners. So scaling requires making tough choices. Sometimes you know, sometimes you must let go of control. There's things that you want to do or you want to have internally or you want your company and your people to be able to do, but you just got to let go of it. Like you got to realize I can't do everything or they can't do everything or we're not the best at this. And sometimes you kind of let go of that control and decide, hey, actually there's a person there, there's a company there, someone that can help me and I'm going to accept that help and that's going to add leverage to my business, right? So third parties may have the staff, they may have already put in Massman into systems that enable them to be much more efficient in handling a function.
(00:56:50):
Then your company can be right now or in the near term future perhaps. So I'll try to replicate that function internally may take too much time or money. So if you're wanting to scale to a certain point by a certain time, you don't try and replicate that function internally. It just may take two months time or money to do for it to make sense. You might be able to get to your goal faster if you just outsource that thing or you delegated that thing. If you find a partner, you set of a partnership to take care of that thing. Right? So a part of being a good systems thinker and a good CEO and a business is being able to spot these things, you know, being able to spot powerful relationships, powerful partnerships, people that can help you, you know, it's not just me, me, me, you know, that kind of thing.
(00:57:41):
It's about really being able to make these good informed systems thinking decisions. So instead you might want to find a reliable partner to outsource something to, for example, and thus positioning your business to actually scale better tests or an even cheaper, right? And the sort of bottom line here, but this one is you want to hire or you want to outsource. So you want to hire someone or you want to outsource something where it hurts. So if you're struggling somewhere, you're feeling the strain. So you're at playing the pressure, let's say to your business and you're really starting to feel the pain somewhere. Like it's really starting to become a strain and hard to deal with. A stressful, you know, something is about to break here. That's when you really want to hire on that or outsource it. And you know, just a good example here that's pretty sort of, uh, I'll dre Jus, you know, it's so extreme is contract manufacturing, right?
(00:58:44):
So as a partnership, your supplier, it's, you know, it goes into this bracket like outsourcing and partnerships. So having a manufacturer make your product and China partnership, um, that's going to enable you to grow and scale your business faster than if you were to say, I'm going to build my own factory for this thing. You know, that is an extreme example, but it is a great example of what, I mean, that's a leverage point. Also using Amazon Fba, you know, these are the things that actually make the business scalable management. So as your company grows, you need managers, you want be able to oversee everything. That's a fact. Keyword is decentralized, right? So you must go decentralized and you need managers and management to help you run the business. Communication and transparency. So we will discuss operations in more detail in the program. Um, but remember, if your systems don't work together, if they create silos, misentered multiply communication and management problems as your company grows, right?
(00:59:51):
That is not scalable. So if you are centralized, you're creating silos, uh, um, you know, the company isn't transparent. One person can't see another thing and everyone is, you know, basically running around blind. Everyone needs to go through you. You're locking them out of all information and being super paranoid and you know, scarcity mindset like that, you know, that is does not go into scale well. And we have an entire section dedicated to operations because it's so important in the program money. So last but not least is cash. And I'm going to discuss this more in detail here in the next section in this video because money is a leverage point as well and a massive one at that. So that's where we're going to discuss no economics of scale. So we've already talked about cash in detail in the program and how important it really is.
(01:00:48):
You know, it's like the blood in your wanes, right? It's the thing that flows to the system and with audit really, you or your business is going to die. You must have adequate supply of casts running through your wanes. And now when it comes to scaling and growing a business cast is absolutely fundamental. You know, that is really the main thing. Perhaps that's going to limit the speed at which you can grow, right? So I'm going to use a bit of a weird analogy here, maybe, but um, you know, just think about a baby, right? And the amount of blood in, in a baby's body, you, it's not that much. It's still, you know, quite a lot, but it's not there much. But then once they'd body grows, it needs more blood to support it, right? So the amount of blood in an adult's body is, is a lot more than than baby. And same thing with a business, right? So as a business grows up and becomes bigger, the amount of cass that's flowing through that system or the blood is going to have to be more, it's going to, um, by definition, by default, it needs to be more than needs to be more cash, you know, for our business to be bigger in scale than there is right now. Right? So there are certain relationships and economics at play when it comes to the cash element of Scaling Your Business. Then I'm going to discuss here.
(01:02:26):
So scaling your business requires money. It's probably not a surprise for you to hear that. Um, but you know, sometimes the most obvious simple facts are things that we all look. But yeah, the fact is that scaling of business requires money and to have a large business, uh, you must grow the volume in your cast cycle, right? So to have a larger business, you must grow the volume that is flowing through your cast cycle or your wanes. And this essentially means having more money or working capital, you know, that's really what it means. And with ultra more money, you cannot have a bigger business. So sometimes, you know, uh, here or I've seen and I have personally as well, basically built a plan or something or it's set a goal, you know, to make x by x ride to grow to an x point by x date.
(01:03:23):
And then if you really understood this simple fact, you could potentially see that that is impossible with your current cast cycle, right? So if your cash cycle is x long, you have an x amount of cash in the business, nothing more. It's is what it is. And that's all you have. And then you have x margins, you can run the math on it. Even if in the best case scenario, if you were able to turn your cas around as quickly as possible, it was just a 100% efficient. You've timed your reorders perfectly with, you know, the margin that you have. You can do the math on how quickly you can actually get to that point, right? In the perfect scenario, it's never actually happened. So that's, that's that, like, that is the limitation with the cast. So if that tells you in the best possible scenario, I would go from say 25,000 to a hundred thousand, um, in let's say a year or something.
(01:04:26):
Right. Um, but your goal was to get to like a million in a year or 500,000? No, the, the truth here is that, yeah. Okay, cool. So you want to get to 500,000 in one year from now, uh, per month. And you have, you're a 25,000. Now you have, you know, this most CAS available and you're not going to add to anything else. That's just the cash you have. You don't have anything else. This is your margin. Uh, this is the length of recast cycle. Yes, you want to improve the margin. You want to shorten the cap table, but still you can do the math like $500,000 per year. And you know, I'm talking about Hipaa, Hipaa theoretical example, but you would be able to say like, that is impossible. Like literally logically impossible. So the only way if you want to reach that goal is to get more cash somewhere.
(01:05:23):
You need to inject cash, you need to grow your cast cycle faster than it's happening in organically or naturally. Right? So this is, you know, there's constraints here, there's dependencies with cash and no, there's two ways to increase this working capital, right? And thus grow the business as a result with that, you know, it goes hand in hand and the first way is bootstrapping so as to grow with your own capital, right? That is what almost everyone is doing. Um, it, you know, with this business model and this takes time and it's a simple function of your profit margin, the higher the better and the length of your castle, the shorter the better. Right? Nothing wrong with this at all. That's a great way to grow a business basically. If you can do that and grow. Brilliant, that's awesome. That's how I grew my business, you know, from like literally like a few hundred dollars to like 70 something thousand per month in just a few months.
(01:06:25):
Right? I got to that point, it does a couple of months simply because I had fantastic margins and a short cast cycle and I was able to really, you know, optimize that and just make the most off the cash and you can grow incredibly quickly. You know, for example, Shane who is in this program in two years time, he's grown a very successful business through bootstrapping and you know, this is how most people do it. Know, most people actually just bootstrap and they don't inject capital and they are able to grow their businesses like that. And that's fantastic. You know, that's obviously um, you know, the default sort of way to grow. But the second way to grow is by injecting working capital to increase the volume in her cast cycle. So that is the second option. Now, bootstrapping, so we already discussed the classical in detail on how to improve it and that's really, you know, how to grow faster in general, but also like through bootstrapping especially.
(01:07:28):
Uh, but there are some other things you can do to grow faster through bootstrapping and being able to generate growth obviously in the first place is key. Right? So we're going to talk about that a lot in the program you already have, you know, strategy and advertising and things. Um, but I also want to discuss some more things here in just a bit related to that. And then injecting cats. So we also discussed ways to do this in the module on cashflow. But keep in mind that this is a severely underutilized method for sellers in my opinion. I know that I used to have the belief that, you know, getting cash from my business growing the working capital would be near impossible. You know, for me it would be like, um, you know, we'd have to go like in front of like a board of investors like in shark tank or something and pits my business and ID and hopefully we get some, you know, celebrity investor to invest in me.
(01:08:23):
And you know, that's what I used to think. But really there's plenty of people that would love to give you their cash, you know, for a profit in return, like for basically by charging an interest, right? If you can show that you have a consistent business, a good model, and there's potential, you know, banks, creditors, all kinds of companies and people that would love to give you cash because they have Casin. That's one of the best ways to monetize casters, to lend it to someone they can then pay them back with interest. And for you as a business owner, I mean this is a massive opportunity and not to be underestimated or you know, not to be avoided at all because if you've got again, this ability and things in place to go ahead and do this, it can grow your business so much faster.
(01:09:13):
This is on most obviously big companies and businesses have grown oftentimes through like a heavy emphasis on lending and lending a lot. Uh, and a lot of sellers as well have used this to their advantage. It's that I know of, you know, people have been able to get, um, you know, literally yesterday I spoke with someone joined the program who has gotten like $200,000 in credit, um, in the United States and he's not from the United States. He's not living there. Does a great example for a successful, uh, off what is possible really. But most people think, you know, they can't even get like $10,000 in the bank, um, that there with, you know, it. So yeah. I want to open your eyes to this and help you understand how relevant this is when it comes to growing this type of a business. So again, once you have a stable business and you a predictable system to grow, which you know, we give you in this program, this is really about that like predictable, stable, professional, reliable growth.
(01:10:18):
Um, at that point there really is no good reason not to seek lines of credit. If your businesses a year or two years old or more and you have history in a stable, you should be able to get there with our issues. Um, you know, even in places you don't even live, right? So loans are Aldred investments to expand your cas. I go and grow your business faster. Um, and again, laminates or credit, these are all things that you can get. Uh, and of course you want to get a good deal. Don't want to be too much for that money, but it is worth paying something, uh, to actually grow the business faster. And this is a fantastic opportunity and a usually we will pay off in a big way. You already mentioned this in the cas cycle module, but I'm mentioning it again here because it is a fantastic opportunity and you know, if you can 10 x the pace of growth in your business, that's gonna pay off, it's gonna pay off to pay for that.
(01:11:16):
Uh, because your business is gonna grow way faster. It's gonna be more valuable than everything, right? Let's faster, nope. I want to mention scalability from the cast perspective here as well. And really what I mean with this is what you want to see happen. And then this is just like when you scale sales who want problems proportionately to, you know, within the business to go down. So you want the business to get better. Well you also want, as your business grow, that proportionately Europe costs go down. That makes the business more scalable from a cash perspective. So for example, you order bigger volumes or bigger quantities. It's time of your products and this enables you to negotiate and have lower costs per unit, right? So then you're growing and that's leading to lower costs proportionately, right? Of course your costs go up and your revenues at the same time, but proportionately so really liked your profitability.
(01:12:24):
Your profit margin ideally will actually improve as you grow the business. That is how the business can really improve and get better with growth. No, this is not as easier or you know, uh, doesn't happen overnight and sometimes it doesn't really happen, but you want to strive for this in either case in any way. And it is very doable, you know, with this business model, um, there's no reason really if you're on a tight operation, uh, that this cannot happen. And I'm not saying it is always gonna happen for every one or every business, but um, there's certain things you can make more efficient and you can pay less with more volume and you want to seek, uh, this relationship as much as possible so you can grow while proportionately reducing the costs in your business that's going to make your business stronger, healthier, better, and again, more profitable with growth.
(01:13:23):
So that makes the business really scalable from the CAS perspective, the inverse relationship where you know, proportionately or Costco up with growth on your profitability and it gets lower and lower. Um, that is, you know, you can still scale that way, but it sort of culture, you know, counter acting your scale and the point of the scale, right? Cause now you might go from 200,000 to five, you know, and not fun, but 200,000 to like 300,000 a month and perhaps not make that much more profit. Right? And that is not ideal. Like that is always not what you want. You would like it to be like that. You're making disproportionately more profit when you go from let's say 200 to 300,000 a month. So remember, this can only happen with smart systems design with leverage and consistent improvements. So if you want this relationship, just like with the, you know, more sales, less problems, relationship, um, you want to have more growth, lower costs, proportionally, you want that relationship to, to be the case where you, this can only happen with smart systems design by using Louie leverage to your advantage and by making consistent improvements to everything, all your numbers, your efficiency, all of it.
(01:14:44):
And that's why for most sellers, this doesn't actually happen. You know, they grow and proportionately their costs actually get higher. You want the opposite to be true. And this is the cashflow. Again, remember this diagram, this is how the blood is moving through the Wayne's of the business. And you really want to keep this front and center at all times as you're scaling a business. You want to always be looking to shorten the cash cycle, uh, improve the profitability, you know, improve the outflow and the inflow and reduce the gap. So we've already covered this. Just a reminder, you know, you want to do this, um, obsess over it, right? It, it's gone round and round and round, round and round and never stops. And that's all you make money and he always on a really like tied in this cycle and improve it as much as you can.
(01:15:40):
Now on that, related to that, here's a very important concept as well and it's sacrificing and cycling or sacrifice and cycling. So you need to also understand this. So you want to improve the cashflow, right? You want to always be looking to reduce your costs and increase your Martin's and shorten the Casac, all of that. But you also need to know that you must be willing to sacrifice for growth. That's really in the nature of scaling. So when incredibly important concept to understand when it comes to scaling a business is the need to sacrifice profits temporarily for growth. Doesn't mean in the longterm, like you know your profitability is lower, it means temporarily your profitability is lower as you go through some growth and then you'd profitability after the gross would be higher and proportionately like your profit Martin in the business should be higher.
(01:16:39):
And you know it's not always necessary to do this. You can grow without doing this for sure, but if you really want to wrap up sales and revenues, then you're going to be doing things that cost money and who make you less profitable during the growth phase of the business sort of for a couple of months, even a couple of years. You might do this and you really need to do this if you want to grow as quickly as possible. If you just want to scale as fast as possible, that's you know, this is what it's going to take. And cycling is a powerful concept for scaling a business. You know, this simply means to switch between prioritizing and focusing on increasing your top line revenues and then switching back to cutting costs and increasing profitability, efficiency, things like this. And you already sort of talked about this a bit in the last video, what this means and we call this bulking and cutting, right?
(01:17:36):
So that's what this is called. It's cycling the bulking and the cutting phase and bulking. You know, that's uh, that's the phase where your priority is really to add mess. So there's like a bodybuilder is looking to just add mess, even if a part of it is fat, you know, part of it is going to be muscled too, but some of it's going to be a fat, right? It's the same thing here. It's when you're looking to add revenues to the business, right? You're looking to grow the business ad products, our revenues add things and invest really into growth and focus on growth for growth's sake. And during this face, you don't want it to be too concerned with your expenses, you know, myth and a reason you don't want to become wasteful and just lose sight of those things. Not at all. You'll still want to obviously negotiate on every order and different things to just keep your costs as low as you can.
(01:18:29):
Um, cause those things are stupid not to do and, but you know, rather you want to prioritize expansion here cause you can't do everything at one time and it's much more powerful to focus and concentrate on a few things at a time. They're all all the lines, just like we talked about, you know, with the KPIs and the Polaris Star. So for example, you'd prioritize launching new products and ad campaigns and things like that and you'd prioritize like fast action and actually with experimentation and testing things. So you would do things that don't work. You'd make more mistakes, you'll do those kinds of things, right? But the key here is speed of implementation as that's the only way to collect accurate data. And actually we learn and improve things. So the concept here is like, fail fast, fail forward, take action. Even if you fail and you stumble, at least you learn and you can improve from here.
(01:19:22):
So that is really the concept with bulking. So you're really going for it and you're not, you know, slowing yourself down by being too concerned about mistakes and waste, you know, adding some fat. Uh, adding some unnecessary expenses. You try things, you test things, right? Cause that's the only way to really understand, you know, for example, what product sticks and really works, let's do three of them. You know, it's that kind of thing. Then cutting. So in the bulking phase, you know, we place, sorry, there's would say in the cutting face. So in the cutting phase, the place priority on the exact opposite of what we do in the bulking phase. So if all you do is does bulk, bulk, bulk, you know, God to hit a point where you're bloated, you know, you're like you're fat and ugly. Uh, so the businesses are most and is both inefficient and not as profitable as it could be.
(01:20:19):
You know, if you just bought both blog all the time, you're going to be so wasteful and things you're not going to, I mean, you're going to lose a lot of your competitive advantage like that are going to make mistakes. You're going to really not be running the best possible business. So during this phase you want to look, uh, so I mean during the cutting face you want to look inwards and really cut out any and all waste in the form of time, energy, resources and money. You'll prioritize things. So says negotiations and refinement in every area. So during this face, you know, it might be a month, so the cutting phase can be a bit shorter usually then the bulking phase. Um, but this is really where you refine everything. You, you know, cut things out. You might say, oh, this product isn't working, let's cut it out.
(01:21:05):
Or you know, this system is wasteful or this new process or tool or whatever isn't working, let's cut, cut, cut. All the things that aren't really worth keeping. Just like, you know, Kinda did when you reviewed her systems this week and you may have decided that some of them are wasteful. So it's critical to cycle this with faces of expansion. So keep your list so you keep your business lean mean and as profitable as it can be. And this will make you much more competitive and successful as a business. Right? So the key is both, if it does bulk, bulk, bulk, you're going to get bloated, inefficient, wasteful, and then you're missing out. You know, you're going to lose competitive advantage, different things, but if you'd just cut, cut, cut, then you're not going to grow as fast. You know, you're going to be too obsessed over like the details and the refinement, and you're not going to take chances.
(01:22:03):
You're not going to take risks. You're not going to move boldly and fast enough. Right? So we need both. And you know, this is one of the most powerful, amazing, incredible concerts in the universe and life that I've discovered. It's so powerful when you understand this. So understand there's two poles to everything. You know, just like, you know, every action has an equal and opposite reaction. You know, there's two poles, like they're south and there's north. I was on North Pole and South Pole on the planet. Um, you know, there's left and right, there's positive, there's negative, there's always two ports. There's two sides to it, right? And in harmony, the magic happens, right? If you just have to, um, negative charges that are repel each other, it's not really a good fit. If you have one positive and one negative, it clicks together. It's powerful, it's useful, that kind of thing.
(01:22:59):
Right? So that's the way it works with this as well. You need both bulking and cutting, right? And keep this in mind with everything you do, right? Do you need to take risks? You need to expand, let's say ad campaigns and maybe burn some money in the process and then cut and refine it. But you can't be two months on the cutting side and not there to actually try to expand them because then you're not going to grow, right? So you need both. And this is powerful. So what'd you want to do is you want to really ask yourself, are you more prone to bulking or cutting the business? Because the thing is, this applies to human beings as well. Some people are very visionary. They are very, um, oftentimes creative, positive, you know, bold, outgoing, that kind of thing. And they want to just grow, grow, grow.
(01:24:04):
And, you know, it's a classic entrepreneur type, you know, sort of a hyper active and, and maybe not so fond of details and they just have ideas and they want to launch new products and, and you know, it's always about the opportunity and the, you know, really they're sort of living in the world of possibilities more than, you know, practicality I guess. But then we had the other side of the spectrum. So some other people are more, uh, about the details and the practicality and the refinement and, you know, not being wasteful operations and being efficient, all that kind of stuff. Right. And you want ideally to be both to a certain extent, but at the same time you want to be aware of who you really are, you know, what is your nature? Is it more cutting or bulking? You can evolve. So you can be both.
(01:24:57):
Um, and know something that I believe that I've been able to do with myself, for example, uh, to a good extent at least. But some people are way more of a cutter, you know, they're more prone to cutting and they want everything to be lean and efficient and other people are more into bulking and they just want to expand, grow, think big, that kind of thing. And you know, this is powerful. You must realize your tendencies here cause that's going to, as the business owner that's going to totally, you know, impact everything. Like if you're more of a bulker then you're going to, you know, you're going to not be as efficient and profitable as you can be. You're going to maybe overexpand and things like that, right? But if you're more of a cutter, you're going to be, um, you know, maybe you're going to be very slow growing, you're going to be sort of a bit timid in terms of taking risks, launch new products are going to be more obsessed with or occupied with like the details of things in the practicality.
(01:26:02):
Right. And another thing I'd like to mention on this is one of the most powerful concepts and things you can do in business is to actually, you know, if you are really one, if you're sort of like you can do both or you're sort of balanced, then you know you can run a business on your own, no problem. But if you really skewed on one side of it, which is fine, you know that is powerful as well because you really about bulking, you can be powerful with that, great at that same with cutting, you'd be really, really good at that stuff. So if you're really skewed onto one side, one of the most powerful things you can do is have a business partner that is the complete opposite and some of the most powerful partnerships in business and the most popular businesses in the world who have been built with these two poles at the helm.
(01:26:52):
So two business partners, call owners, co founders that are like this. One is like self and one is north. You know, one is a bulker, one's a cutter because that creates the balance and that can create a powerful dynamic where you have someone that is wanting to grow and expand that has the visions and the um, ideas and things and then the other guy or the other person that's like being practical and really looking at those ideas and you know, seeing no a lot and, and really looking to make everything more efficient than sort of, you know, actually make things happen in reality, string things together and, and, and operate things. So very powerful. I wanted to bring this up here because this directly relates to bulking and cutting. And you must understand yourself here because that's gonna make you, you know who you are is going to make you super biased and more prone to one or the other, but you need both.
(01:27:51):
Now the final part here in this module is planning for scale. So now we're going to talk about how you can actually plan ahead and dramatically improve your odds of scaling successfully and quickly. So really how do you plan and then implement so you prove and increase the capacity and capability of the business before you add fuel to the fire and really, you know, grow into that new capacity. So let's talk about this. So everything starts with a good plan, basically everything you know. And the same goes for scaling a business. You must start with a good hard look inside your business to see whether you're ready to scale and then map out what it takes to scale to the point you want. And remember again, if, you know, be honest with yourself. If you're not ready to scale, don't do it. Like if you really bloated and, and um, the business you know is wasteful and things you should cut, like usually go and cut and go into the cutting faced and refined and you know, stream limit everything.
(01:29:03):
Make sure you have good systems, that kind of thing. And make sure you're in a position where if you grow, your sales things are fine. You know, the business is actually getting better, not worse. Because if it does bulking, bulking, bulking, you mentioned that the business will get so inefficient and the value that you provide is going to go down. You're going to have so many problems that will import. And I've seen the classic example with some of that's an extreme bulker ah, that can a person go that route and grow fast and then just implode, you know, while the cutter and might just be stuck at the same point and still do well, you know, but they can't really get to that next level. So, so you want it then cut before you scale. I do make sure that you're ready to scale and that's the next logical face.
(01:29:50):
You know, look at it. Should I be cutting next or should it be bulking next? That's really the first determination you need to make right now because if you need to cut now do that before you really try to scale. If you are ready to scale, then great. No, we're going to move into that in the program and increase in sales. So, of course all growth requires more sales. That's a given. But the root issue here is usually not a lack of tactics. You know, the problem more sellers have when it comes to increasing sales isn't that they can't generate more sales. You know, you'll learn powerful tactics to increase sales in this program is really all that you need. You can do more, but that's really all you need if you do everything else right. So cashflow systems, pour focus, et cetera are usually the cost of slow growth.
(01:30:40):
It is not that you can't, you know, you can't run ads or you can't promote. It has really cast full limits. You, your systems limits you, you're distracted and not focused. That limits you, right? That is usually the cost of not growing and kept passive and capability. So assume your orders doubled or tripled. Ordinates. Do you have the people and systems to handle those new orders without falling? Uh, sort of without failing or falling back down on you yourself? Like going back to the same level you were at before. Think about that. You know, if everything doubled or tripled, what would happen? What would it look like if that happened? You know, would you be in trouble? Would you be stressed and overwhelmed and things will be breaking? You can handle it or would it be fine and be honest, project costs to look at every item on your current profit and loss statement to see how it might be impacted as you grow.
(01:31:37):
Try to think about that. Like how is this number going to be impacted? Is it going to grow? Is it going to decrease? Uh, probably this all gonna grow, right? If you grow up. But proportionately, is it a higher or lower, you know, what happens to the net margin if you grow? Is that higher or lower? So expenses will go up and you have to anticipate where and whole, you know, how are we gonna go, where are they going to go up? And then most importantly, you want to find ways to lower costs proportionately with scale. So you want to look at that and think, how can we make this not increase as much? For example, if it's an expense and how can we make this actually like costs less? Uh, at a higher volume of possible, you know, like good. We invest into something different than we're doing right now to make this number, you know, knock, go up as we grow.
(01:32:31):
So try to think of everything you know, users said than done, but you'll need to do some hard thinking and research to come up with a solid plan and proper profit and loss estimates. You want to literally look at your profit and loss statement and, uh, you know, math is numbers. I'll project them say new thinking. You know, I'm going to grow from 25,000 a month to 100,000 a month. What is going to happen to every single number here? And really be honest and projected as accurately as possible. You want to know what it's gonna look like in detail, but you know, so yeah, it's going to take hard thinking and research and work, but doing this will make your plan better and ultimately will pay off big time because you will be able to scale much faster and more successfully. When you go ahead and implement these things and focus on bulking and growth, then you're going to be in a much better position if you've planned it out. And I'm going to provide you with this planning for scale worksheet now. So this is a worksheet to really prepare and plan for Scaling Your Business. And this is available in the resources section as a download. So let me show this to you right now.
(01:33:39):
So it's a pdf and there's always you want to click this link and go accesses and Google docs so you can actually write into it and use it. So once you opened it up and then you want to go into file, make a copy and save it to your drive. And it says here, plan to scale your business to scale a business successfully, you must first prepare for it. The key to scaling is to be a great systems thinker. You must understand the current situation of your business and how higher volumes are going to place greater strain on certain areas. By understanding constraints and the interdependencies, you can plan ahead and understand what it's going to take to scale successfully. Right? So that's what we're doing here and I've simply provided you with some great questions to go through because the key to you know, good solutions and clear thinking is great questions.
(01:34:39):
So number one, what is your current monthly revenue and what does it immediate monthly revenue target you have for your business and exactly when do you want to reach it? So you want to define and who want to write down your current revenue and then what is your immediate or next monthly revenue target, don't right? What do you want to do in five years from now? Sets like any media target that could be three, six months, even a year out, but not more than that. Ideally about 90 days out. That's a good sort of immediate target. Maybe six months depending on what you need to do. Do you need to launch new products and things or just grow existing uh, sales and existing products and then define exactly a date, like in a, say like December 14th, 2000, you know, uh, whatever that the year is that you want to hit this target.
(01:35:31):
Right, exactly. The dates, that's important. Number two, how many units do you have to sell every month to reach your target? How many more units do you have to sell and what is the required growth percentage wise? So you wanna you know, estimate, of course it can be a hundred percent accurate, but roughly like how many units would you have to sell to have this revenue and how many more units than no, do you have to sell to make it happen? You know, what does an increase in, what is the growth and percentage? Like they, you're looking to grow a 50% or 25%. You know, what is it's real right it and define it. And then three by now he should be clear on the current systems team and structure of your business because you've met that already in Trello. Then you know, you want to map out where and Hamas strain would be added to the different departments, SLAs, systems in your business if you are already at a revenue targets.
(01:36:23):
So now you want to imagine, you want to think ahead and really spend time on this. You know, this is important stuff like this is really like one of the most important things you can do for your business. You want, if you want to grow and scale it. So you want to make sure you take action here. Um, you know, this is really the biggest value for us to do these things. So now imagine that, imagine you were doing the goal, right? Let's say it's a hundred thousand a month. What would that look like? You know, based on the current situation, unless you're doing 25,000 a month, you know, right now you're running the systems. You know, you're um, in the middle of everything. Let's say you have three people helping you out, whatever it is. Now imagine if you had four times more sales, what would happen? You know, how many people would you need?
(01:37:18):
Uh, but really like at this point do you want to, do we think about, you know, how stream would be added and what would happen with the current situation. So you can think, yeah, hire more people. But really what the key here in this question three here is to think, what would it look like? So you would maybe think, well, if I had four more sales with the current set up, I would be freaking overwhelmed. Like I'm already kind of overwhelmed. I would be, I don't know what I would do up. Like I would have to make, you know, four times more orders I'd have to plan in for, you know, three new products and our tests, you know, that's what you want to think, right? And then you want to really identify the pain points that you would encounter. So you'd be like, yeah, I would, I would be screwed here.
(01:38:06):
I would have a lot of pain here. And that's what he want to see here. That's the point of this then for a strategy. So now you want to think, do you have enough ammunition with your current products and their strategy to realistically reach your goal? Or do you have to sharpen the strategy and or add new products to make it to your revenue target? So this out and be specific, right? Do you realistically have enough, you know, ammunition or do you have a good enough product selection to realistically reach this goal? Or are you missing more products? Like do you need to add more products or are you just selling me too products? You don't have any strategy to really make them stand out and grow. Um, so think about this five supply chain. And of course it'd be specific and right, exactly out, you know, what do you think?
(01:39:00):
And then also say like, what do you think you would have to do as who might say like, well I think I would have to add about two new products with a great strategy. You know, be specific. You're, you know, you're doing this to understand what has to happen to reach your target five supply chain. Are you manufacturing, uh, and to play tune partners capable of supporting your, so growth is product quality consistent than us to scale our, your profit margins high enough and that kind of thing. You know, on all of these, if there's things you can think of related to let's say supply chain cast that I didn't write here, I'm just giving you some good questions. Of course you can add that in. But really you want to map it out and be specific and be honest. You know, do you have what it takes to get there right now?
(01:39:45):
Six cat. So is your cashflow good enough to support your growth? How does your current cash cycle, including your margins potentially limit the pace of your growth? What is a realistic timeframe to reach a revenue target with your current cashflow situation? We've talked about this, you know, um, you can literally run the math with your margins, with the link through cas, Ogle and McCasin business. Realistically, like how long does it take in the best scenario to reach your target? Um, and then from there you can understand, do you need to access, uh, do you need to access more working capital to reach your revenue goal by or decide here date. Um, so you want to understand these things, right? So if you're wanting to hit this target by this point, is it realistic or do you need to go and seek a capital injection if you want to make it happen?
(01:40:39):
So really think about this and map it out and be specific seminar systems. So are your systems effective? Well defined, including the measured with data. So I'm not going to read all of these. You can do that as you answer the question, but really we talk about systems, we talk about sales, operations costs and you really want to read these in detail and answer all these questions and break it down. So here we're going to figure out, you know, red centralized or not, are you the bottleneck? Very missing systems. You know, do you have what it takes to carry you to your revenue target sales? You know, homeless, do you need to actually increase your sales? Um, you know, map out a realistic sales plan based on recurrent products? Like what would have to happen and how much would you have to increase sales and we'd have to add a new pair of variations or uh, new products to realistically make enough sales operations.
(01:41:33):
Do you have the team necessary to your managers to, you know, could you maybe add in leverage and partners or automation to help you scale and then costs, you know, with all of the above in mind, how much would your costs go up in total and he area of your business or you probably want to run this and meth on a spreadsheet with your final sheet, whatever, you know, finance sheet or tracking. You might even work with your accountant on this specifically, but you want to project the numbers when you grow or what happened to your net profitability. You want to get as clear on all these things as you possibly can. And then you want to map out, you know, what you could do to improve it. And you always want to be thinking about these things. Like this is the work of a CEO right here.
(01:42:20):
11 improving with scale. So what can you do to improve your business as it grows? Can use data and feedback to improve your practice and strategy? Well, yes you can. Um, but I put it in here. You want to think about that. Can you build systems? They get better this scale. For example, Faq sections and self service support. Can you leverage your growth to hire better people? Can you leverage your increased volumes and decrease your costs per unit and increase your profit margins. Map this all out. Be Person Specific. And then finally 12th now is the time to really map out the plan. So all these questions have basically helped you extract exactly what needs to happen. So at this point of view, entered all the questions you want to extract the main components from the questions above. So you want to go and look at them.
(01:43:08):
You may have written out a lot of stuff, but you want to then go and extract the main bits, main components that you, uh, you know, basically discovered or uncovered here and map out a plan for scaling your business. So now you want to map out exactly like, you know, [inaudible], uh, specify your revenue target and set a specific date that you want to hit it buys. We might write that, you know, here up at top initially. And then you want to define exactly what you must do to realistically be able to generate this amount of revenue, right? So you can list your products and homeless. Maurice had to increase sales, you know, do you have to add products? And then roughly how many do you think variations and that kind of thing. You might say, well, I need to, you know, generate more sales with ads, so I'm gonna let him to do that. Um, and then define exactly what you must do yet again to rules the hit this amount of revenue and run the business successful. We unacceptable net profit margin. So look at that. What do you need to improve? Who Do you need to hire? What systems are missing? Everything that is here, these are all the main components.
(01:44:23):
So that's how this works. And you want to make sure that you complete this before you move ahead and really, you know, move forward in the program and started scale and add fuel to the fire with ads and things, which we'll talk about next week. Once you've done this, you'll know what needs to happen and you know what you might have to fix before you actually go in and add strain and pressure on the business. So that should make sense. And I encourage you to actually pause the video right now and get this done.
(01:45:02):
Yeah,
(01:45:02):
no, there's just one more thing. And that thing is you. So the harsh reality is that the biggest potential limitation on how big your business grows is you who you are at, let's say 10 k per month and at a hundred k per month is not going to be the same person. You know, just that's the way it works. You must evolve yourself. You're not going to be the same person at six figures and seven figures. It's going to change who you are in is going to need you to change. You know, right now you basically have, you know what you've built. You might be growing and who might be doing great but really like what you have is obviously a result of what you're doing. It's all cause and effect. So you really to change what you do and improve what you do. You really need to change and improve and scaling our businesses uncomfortable.
(01:46:04):
You know, scaling of business isn't like this. Walk in the park. All exciting and fun. It can be uncomfortable, it can be scary and you're going to face problems and I'm going to do my best to make sure you know what the problems are and you know, help you prevent problems, but you're also going to face problems that you know, I can't just anticipate and you can anticipate and scary situations are going to happen and you know something with Amazon, you know different things are going to be scary and it's going to really push your boundaries. You're going to feel like you're freaking out, you're going to feel nervous, like you can't sleep. You're going to want to pull your hair out, like it's going to test you and it's going to put you out of your conference on for awhile. That's how it works.
(01:46:52):
Cause you're not only a play of pressure to the business, you're also playing certain pressure to yourself and you know that's a fact. But the thing is this is exactly how you grow and your business. It is by expanding you and the business beyond the current situation and beyond the current comfort zone. So understand that this is a good thing. This is just a sign of growth and you must learn to embrace it and love it and treat yourself seriously. So you must work on improving yourself, your own habits. You know, every day Andrew thoughts all the time, just as if not more intensely than your business because you are the root of your business. You know your business. It's really like a reflection of yourself. You know, most people have a problem in their business, they think it's about the business. You know, if there a problem, they're struggling with something, then they go and look at the business.
(01:47:51):
Like there's something wrong with the business, but most of the time will tell you honestly, the problem is actually you and it's stemming from you. There's something you are doing right. There is some problem with you personally. Let's say in your personal life that is transferred into the business. You know there's a problem with your level of commitment as a person to everything you know. For example, if you are in a relationship and you aren't very committed, you can basically guarantee that you're not going to be committed to your business either, but at least not very committed, right? Um, if you're all messy and disorganized in your personal life, your business is going to be messy and disorganized too. That's how it works. So it starts with you. You know, if you have an issue with your business, always start with looking at yourself and see how this might simply be a reflection of you and assign that you've got to change something about yourself.
(01:48:49):
And then the business is going to change as well because you are the cost of a lot of things in your business because you designed that thing, you created that thing, right? So if you want to have a different business or a better business, it comes back to the costs. And if you are the costs you need to fix yourself and then the effect is going to take care of itself and the business will improve. So again, you need to work on yourself just as intensely as your actual business. You've got to make sure you grow as well and you're expanding and learning. So you want to read books, you want to push yourself daily and never stop. You know, you want to attend seminars if they're good, you know, and push yourself. You want to really do what you can to become better and expand your awareness, your capacities.
(01:49:38):
A person to uh, make things manifest. And in reality, and you know, I said this before, but you really have to learn to love the pain and loved the discomfort. You know, like it, you know, like a certain amount of pain and discomfort because it's, it's good. You know, there's not like breaking your leg, right? That is not a good amount of pain and discomfort. Like that is not what you want, but a certain amount of tension and you know, stress and excitement and you know, feeling afraid is good. And then finally of course, focus. I've said this over and over again in this program, and I'll say it again. Focus. Nothing can add more power to your life than concentrating all of your energies on one target. Focus is also a habit. You know, it's how you do everything and that is how you win, right?
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So try to do one thing at a time. Always don't be distracted, don't multitask. You know, don't be on your phone as German, a conversation with someone. Be in the moment focused on one thing at a time. And that's then who you are. That's how you operate. Now, everything, and this is a habit and this is how you win. It's focus really at the end of the day, just persistence and focus. Here's two Bruin books. Um, they're on my desk that I just took a picture off to show you. Um, these are two of my favorite books and they're by this guy called Steve Siebold. And the first one is called 177 mental toughness secrets of the world class. And the other one is called how rich people think. Both are extremely good. And two of my favorite books and I want to recommend these to you now to help you with you know yourself.
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And the great thing is is with this books is, you know, you want to basically read and take action on them daily. So the way they're set up, uh, is that, you know, like there's a concept or a lesson that through a short, it's like a page or two pages maximum. And after that concept of that is explained is usually a corn in there and things as well. Um, there's like an action item and there's a resource if you want to expand your knowledge on it. But the action item is something you can do that day and work on. So really like by this ruling, one per day. Um, it's a great thing to do despite your brain. I like to read one thing, um, in the morning and you know, I'll read this books all in Oregon. There's a good but like one thing in the morning and really this considerate, be aware of or think about it.
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It kind of sets the foundation for your day. You know, you're looking at the excellence, you're thinking about excellence and then you can practice that and implement that, you know? So it's a great, great resource. These two books as just actually starting with the mental toughness secrets because I think a lot of that stuff, what, you know, we, uh, we tend to lack the most, but then how rich people think is like money mindset and this is also extremely important and how truly think better, you know, more like a systems thinker and that kind of thing. Um, so awesome. Future of this books as you can read, you know, five minutes and take action every day and you'll be able to add and work on a new metal concerts or modeled daily. And the lessons are concise. Again, a single page. So I recommend reading one lesson every morning.
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So I'm going to provide the links to both books below this video so you can go below the video and click the link to go and buy each one on Amazon. I suggest you could score and buy them right now. Don't hesitate for a second. It's going to be worth your money a thousand times, over, million times. Or if you actually go in and use them and read them. Brilliant, brilliant books. And what he's doing is really like comparing in all like the average person to like the work as person. And it's brilliant. It's really, really powerful. So to wrap up this module, here are your action items. There's this one from this module and it is to plan for scale. So you want to complete the planning for scale of worksheet and take a hard look at your business the way it is right now.
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By asking yourself the right questions and thinking ahead, you're going to be much better prepared for the journey ahead. You're going to know, you know what to improve, who to hire, and what you need to do to basically make scale possible for your business and ultimately you'll be able to scale your business quicker and more reliably if you have already planned out and mapped out what it takes and what is required to make it happen. So make sure you complete this before moving forward and into the next week and into actually adding fuel to the fire and adding pressure to your business and scaling it up. So now you're ready to scale your business right up. What have you covered so far in this program is all the foundations, all the core essential systems you need to now go and add fuel to the fire, promote market, sell more, build a team, and grow the business. So now you're ready to grow and scale your business right up. It's is extremely exciting and fun and exhilarating and I can't wait to show you the next steps in this program and I want to say congratulations on making it all the way to here. You've done a fantastic job by sticking to the program, being focused, executing. You've done a lot and now you're ready to really reap the rewards and scaled the business up.
