Featured Coaching Training: 17 Steps to Maximize Your Profits
Many business owners think you need to increase sales substantially to make more money. However, there’s another way to make more money, which is to maximize your profit margins. Here are 17 tips to make it happen!
Featured Coaching Excerpt - Notes & Transcript, Part 1
Lesson Nugget: Step 1: Define the Purpose of Your Business.
Notable Quotable : “The purpose of your business is to profitably create value for the market in a scalable way.” -Jeff Hoffman (Author of Scale: Seven Proven Principles to Grow Your Business and Get Your Life.)
Lesson Nugget: If you are creating a product that others don't want, then it's not worth doing.
Lesson Nugget: The word job stands for "Just Over Broke."
- Step number 1, define the purpose of your business. Clay, what do you mean by that?
- Well, the purpose of your business, the guy who wrote the book called Scale, his name is Hoffman. It's an awesome book. If you haven't read the book, it's awesome. Stu, I don't know if I've ever recommended you read this book yet?
- [Stu] Yeah, I've read it.
- [Stu] Awesome
- He says this, "the purpose of your business is to profitably create value for the market in a scalable way." And what he's talking about is the purpose of your business is to create value for the market in a scalable way. Bottom line, if you're creating a product or a service and it doesn't make, if it doesn't create value, if people don't want it, it's not worth doing. But it has to be scalable, where you can't be the only one who's doing it. If you're a web designer and you're the only one who can do it, that's good. I frankly, I know of two different guys, good friends with who make over six figures a year doing web development and they do web development, that's what they do. But if they're on vacation, they're also doing web development. They never have a time off, they never have a vacation, they never have time with family. Literally, that's all they do. But what he says here in the book, scale. Phenomenal book, he says, "the purpose of your business is to profitably create value for the market in a scalable way." If you're not creating value for the market, if you're not being able to build websites without just you only doing it. What you're doing is your building a job and job stands for, check it out Thrivers. Just over broke, J-O-B, job, just over broke. You're just over broke. You probably if you take a weekend off, you take a vacation off, you're probably going to fall behind, you're probably not going to be able to keep up. Very, very important that you find a way to deliver value to your customers in a scalable way. Stu, you've worked with different web companies over the years.
- [Stu] Yes, yes.
- A couple I can think of in my mind, a lot of good companies, a lot of good people. Talk to me about how important it is to teach multiple people to do what it is that you do and not just one guy. What has happened, what have you seen happen when it was just you and you're the only guy and you're out of town? Walk me through why it's important to teach, a team to build it in a scalable way.
- I don't know how this relates to every business out there, but in my world, and probably in yours, something is going to break on a Saturday night. Something is going to happen. And I don't necessarily want to be the guy who comes up there at two in the morning or whatever it is to fix that problem. That's one example. If you scale you've got more people to help you do things, right? You're also not going to have that low ceiling on yourself like you're talking about. If I have a second person that I can scale to right and I can teach them right. I can do more work, I can make more money.
- As a growth thing for you, I want to talk to you about it in kind of a woo-woo way, kind of a little bit more personable than we want to do it. You're a phenomenal designer.
- [Stu] Thank you.
- You're one of the best designers I've ever seen.
- [Stu] Thank you, I appreciate that.
- How is it, I'm just saying, how is it like occasionally how do you, I mean how do you feel internally when you're like, okay, someone else is going to design it. I could probably do it better, definitely do it better. How could I do it, you know, I could definitely do it better but delegating, how does it feel to you when you do that?
- Well, at first, it was painful because that person, I'm thinking of one particular person right now. And that person was, they had talent, they had some skills. What I had to do what pour my energy into training them about what to do and what not to do and kind of step back. That's a difficult thing to do but if you can do it, it makes a huge difference.
Featured Coaching Excerpt - Notes & Transcript, Part 2
Lesson Nugget: If you do everything in your business yourself and do not train others to do the same, you will not have scalable growth.
Lesson Nugget: Find a way to duplicate and show others on your team to do what you do.
Lesson Nugget: The purpose of your business is to profitably create value for the market in a scalable way.
- Travers, I'm just telling you, like it's hard. It's hard. When I became a really good disc jockey, people would come to me and go, oh my gosh, can you do my wedding? You DJed tonight and it was awesome. And I'm like, oh yeah, I'm God's gift to DJing. I know that, I don't know if it was in in the Old Testament or the New Testament, but it was in the Inter Testaments, God said, let there be a DJ by the name of Clay. And I felt so good about myself, you know, but ultimately I had to go, hey, you know what? I'm gonna hire somebody else to DJ. And frankly, the guy who I hired to DJ wasn't as good as what I was. But, I was like, then I should just do every wedding myself.
- [co-host] Yeah.
- He's not as good as I am, so let me just do somebody else, or let me just do the party myself. But over time, I start to realize if I do every party myself, there's no growth here.
- [co-host] Right.
- So I have to eventually stop and put the energy that I would spend into entertaining the event, the attendees, the audience, into training people who I believe could eventually learn what I know how to do and maybe do it 80% as well. And that is so hard.
- [co-host] It's an issue of trust.
- It's hard.
- [co-host] Yeah.
- It's like, not a good thing. Stu, you're a designer.
- [Stu] Yeah.
- It doesn't feel good.
- You have to be very intentional about it. If you're willing to compromise just a little bit, you said 80%, that's a good example. I want to get that next person to that level where I'm ok with 80%.
- A friend of mine, I'm just being real, a friend of mine, it was their wedding, they send me a text, they asked me if I could do their wedding. It was called the Garden Center in Tulsa.
- [Stu] Right.
- And I was already booked. And I sent somebody else to their wedding. And it was like, the most hard thing for me. Because I knew the guy that I was sending, I was like, is there any way you could DJ our wedding, and I was already committed to someone else's wedding. And I remember saying, I'm gonna send Josh, was a new guy I was training. I'll send Josh to your wedding. I do believe he'll be as good. Now, the good thing is that I have enough insecurity where I spent a lot of time training Josh so that when Josh got to their wedding, honestly, just being real, he was almost as good as I was. Probably even better.
- [Stu] Wow.
- But I, it's hard. I'm just telling you, it was my friend's wedding, my very good friends from college. And he was like, how come you can't do my own wedding? And I'm like, I'm already booked. Well, how come you can't switch? I'm like, I'm already committed to somebody else. So we've got to find a way to duplicate, whether you're in direct selling, multi-level, whether you own a small business, you've gotta find a way to teach somebody else to do what you do, as good as you or better than you. And Jose, you've had some experience in direct selling.
- Oh, absolutely.
- [Clay] How hard is that, man? To teach somebody to do what you, bro?
- Yeah, it is not easy. But it boils down to trust. Trust and how scaled you want to become.
- You did some direct selling though.
- [Jose] Sure.
- Did you deal with a little bit of fear when you're telling somebody else to do the system, I mean...
- Yeah, it's your baby man, it's your baby. At time you're like, how can I give my baby to somebody else and trust but you gotta invest that time like Stu was saying, it's an issue of how bad do you want it or you saying, am I going to DJ every wedding in Tusla? You gotta invest in that person and it is never an easy thing.
- So step one, just wanna make sure we're clear on this. You gotta define the purpose of your business. And the purpose of your business is to profitably create value for the market in a scalable way, that's the goal. So you can do it in a scalable way, therefore you can not be there. So it's very very important.