Transcription
career coaching services to corporate executives. So basically we help these people find their next role. So we did 7.2 million in revenue last year. Congrats. About 2 million in profit. Amazing. And we know how to grow B2C. We know that we can do that. But we're really wanting to get B2B going. Okay.
So these enterprise level deals are a little bit more they're a different ball game, right? So we're struggling to get our first B2B deal because they have to be big enough to have the budget.
Why do you want to do B2B? So this entrepreneur is obviously doing well. You know, he's doing multiple millions of dollars a year and he's got something that's his decent margins and he said in order to scale he should do B2B. But he was in a consumer based market and consumer markets are huge. There's way more consumers than there are businesses. So he had a proven product with a proven acquisition channel and was profitable and was growing and he was spending you know three or five thousand dollars a day. I was like this is nothing in terms of the amount of scale that's available for the product that he had. And so when he said he wanted to do this other new thing I had an inkling that it was for no actual reason besides he probably encountered some sort of difficulty that he assumed the new path wouldn't have. And so this is just a classic woman in the red dress. Why can't you just do more of what you're currently doing?
We can. I mean like we hit like 900k and in October and like that was a big like a million a month. Like that was the milestone where it's like okay let's start doing different stuff. I'll tell you what my initial reaction is which you're already probably guessing which is like I will exhaust more before I look at anything new. And so someone would have to make a very strong argument for me why I can't do more of what I'm already doing.
So if I were to like buy your company tomorrow I'd be like yeah don't worry about that. Just what do you do what are you currently doing to get to get customers? It's Facebook ads. Okay. So what are you spending a day? Uh anywhere from 3,000 to 5,000 a day. Right. I'd be like okay so how do we get to 100,000 a day in spend? A day? Yeah. Wow. Like what stops us from getting to 100,000 a day? Okay. And the answer to that question is the constraint. So what stops you from getting so let's say 10,000 a day. That's a triple. So like what stops you from doing that? We were there in October right around 10,000 a day and then we had like sales efficiency issues and stuff like that. Obviously Q4 is not like the best time to have that type of service and so really just like making sure that our back end or our front end like sales call to close rate all that good stuff is like able to Yeah. profitable. We have a lot of like services like one-on-ones that we pay coaches really well. We have a writing team in house that we pay. So like there's there's costs. So what would but that those costs are fixed cuz you'd have that cost in the B2B. Right. Okay.
So what stops us? The problems that exist in the B2C scenario also exist in the B2B scenario. And so he's like hey I've got I've encountered this problem I don't know how to solve and so my way of solving it is to not solve it and start something else that will create more problems in my business. And so when you say it like that it sounds ridiculous but this is a decision-making process that or rather a mistake-making process that a lot of people follow. Fundamentally you want to ask why can't we do more and the answer to that question is the constraint. And the only in my opinion proper constraint for deciding to go after new avatar is that you run out of the existing avatar.
So think about this just have you ever done B2B? Like enterprise? Mhm. Okay. So the thing is is that they are a higher leverage but you're also going to have like 10 15 touch points and so the number of deals per guy is going to go down a lot. There's also going to be multiple stakeholders that you have to get involved on their side and multiple stakeholders that you're going to introduce on your side. So just in general for B2B like enterprise level sales you increase conversion rate and stick of a customer by increasing the number of people that are involved in the transaction on both sides. So basically you want to show you want to show as have as many of these ties as you can to do enterprise sales. The the lowest risk-adjusted return move in any business is to do more of what's already working. And answer the question why why can't we do more. And so if you have a sales efficiency issue then like solve the sales efficiency issue because it's holding you back from tripling. The things that you brought up are all fixed problems. As in they're they're problems on both paths. So to to to forego the path you're currently on for a new path that's completely unproven with with the same problems that you know already exist is a much higher risk move than just saying yeah why don't we just get to 30 million? Okay. So just focus on maxing out B2C and worry about B2B till we're like fully confident B2C like we're doing everything.
Not even that you're doing everything that you have exhausted the market of C's. Okay.
Right? Like it's So if you want diversity then I would still I would rather you go diversity of channel rather than changing customers. The riskiest thing you can do is a new business basically. You're going to have you have a new offering a new acquisition like everything's new. And so I would rather if you if you have the itch for new just get a second channel but I don't think you're even close to that. You're at three to five thousand a day. I think you can totally spend 50 100,000 a day for sure just on that. What will likely be the next thing that gets in your way is that your ROAS is going to drop. And so typically that's going to be you're going to need to have option one better lead magnet option two better creative option three superior CRO conversion rate optimization just on the the pages option four improve sales efficiency option five all four and then that allows you to scale. And like fundamentally the difference between companies that can spend 100,000 a day and 5,000 a day profitably is how good they are. It's literally just making all of these pieces better and that takes time because you're only change one of those at a time and this is why business takes time to grow.
So if you've hit a revenue ceiling or your entire business relies on you to grow then I'd love to invite you out to our headquarters here in Vegas to learn how we scale. It's where my team spends two days with you to identify the thing that's holding your business back. And so if that sounds interesting click book a call and if you're a fit we'd love to potentially see you out here in Vegas.