Exceeding Expectations: A Reputation That Speaks For Itself

0:00And what we do is magic for people. It is freedom. It is wealth building. It is asset creation. It is income multiplication. How much more successful would you be if you had lunch once a week with insanely successful entrepreneurs who shared their biggest secrets on how they think and achieve success? Grab your seat at the table because this is Business Lunch with Roland Frazier and Ryan Dice.

0:28Welcome to another episode of Business Lunch. And today's a snackable episode with Roland where he's going to get into some more tactical strategies that you can start using to live a rich and happy life. If this is the first snackable episode you're hearing, I'd encourage you to go back and listen to some of the other episodes that Roland has put out. And if you want to get notified every time we release a new episode, go to the new businesslunchpodcast.com website and we'll send you detailed notes along with every episode. That's businesslunchpodcast.com, www.businesslunchpodcast.com and you can sign up for the free email newsletter where you'll be able to get all the highlights and resources from the episodes.

1:03This is the deck that we use to get deals when we are sharing them with somebody that we don't know that doesn't know us. So we're outsourcing and automating the deal process by saying, look, if you want to work with us, this is what it looks like. This is our trust agent. We're not saying anything about us. we're sending them to the deck. That is a big deal. Because even though we created the deck, we're positioning it in a way where it is able to say good things about us that is way more credible than if we say them ourselves. And in our world that we are all in, right? What do people ask for when they want to find out about things?

1:48They send me a deck. Great. We have one. We're professional. We've done that. So it starts with current portfolio performance. We've got a whole bunch of these companies. Now in the one that we do for every for our Epic board members, it's, it's our companies, because we don't, we don't want to, you know, to put other companies on there. But we've got a lot of companies, right? So you start with that position of, look, we already have a portfolio. Wow, that's a portfolio. This is these guys are serious, right? They've got experience and they're all over the place and they've got logos, you know, cool, right?

2:26Then we say it's a proven system for growth. In 24 different industries, we've grown$700 million companies, a billion dollar company and a whole crap ton of$10 million companies, right? A whole bunch of them. Then here's how we work. This tells them this is how we work. We're not telling them that's it. I mean, I can't change it. It's this is this is it's already on there. Standard term. It's there. You can't. Standard terms. As an attorney, the biggest thing you learn is like, if you want things in a contract, you take the contract and the contract is super simple. Name, address, phone number, deal point one, two, three, four.

3:01And then there's a thing on the back that says standard terms and all the stuff that you don't want to negotiate, you put in standard terms because nobody ever looks at it. So monthly, 10 % of client sales secured by accounts receivable on exit, 10 % of the aggregate proceeds from the sale. And you'll know why we take profits, interest instead of equity in most of the deals we do when Grant talks later. Then meet the team. Now in the decks that we do for you guys, it's your pictures here. And then the advisory board is us. Then we talk a little bit about this is what we do and these are the kinds of companies we want.

3:36That's explained. You do a video of this too. We talk about the five exits of an entrepreneur. Most of the people that you will deal with will be wanting to exit some part of their company, even if they don't want to sell. So we talk about the five exits of an entrepreneur is like where you start accidental entrepreneur is wearing all the hats and doing all the things. You're on the line providing the services and selling the stuff. You need to exit that to get out of that spot where you're doing everything to have any hope of scaling. That starts with delegating. Now you're a manager. You've moved from the line to a manager.

4:12That's cool. That's what Gerber talks about in the E-Myth Revisited. it's a pie shop and you can't just make the pies. You got to work on the business, not in it. Then we say, but really, you need to move from delegation to leadership. Leadership is being a CEO. Most of the people that you deal with who call themselves CEOs are not. They are operators. And so explaining to them how they can move from being the person who is a manager to an actual leader, a CEO of their company, that's another exit. So there's three exits there, right? And we still own the company. But yet there's another one. There's exit the org chart.

4:55How do I get off the org chart? This is where I like to live. I don't like to be on any org chart because if I am, I have a job description and a job title and stuff to do. I don't want a job. So if we can move you off the org chart from CEO, if that's something you're ready to do to the board of directors, then you move from leadership to governance. You're going to supervise the company. This is where we're starting to be above the business. We're no longer thinking of selling the products or services or widgets that the company sells. We're thinking of selling the business. The business itself is the thing that we want to sell.

5:28Awesome. Now we're on the board, but then we can exit the board and be completely free of any operational or supervisory responsibility to the company. And you know what we are then? We're an investor. and one of the companies in our portfolio now is this company. You can paint this picture really vividly for anybody that you're doing business with, and then you say, and then if you decide that you want to sell the company, you don't have to. We would like for you to be ready to, we call that exit ready, but it doesn't mean that you have to. You're going to have a better company. If you're thinking like an investor, you're going to want the company to perform well, right?

6:05So you can sit there or you can exit ownership. So there's five different exits that you can talk about that your people that you're working with can go through and you can facilitate all of them. So that's that's our kind of, you know, some of our secret sauce. We talk about the leveraged sales, the SPV model of sales, profits and value, leveraged sales, bankable profits and transferable value. And that's the that's the word that I used. And Ryan, we were trying, I was like, I changed one of the words. But anyway, so now they've got a model, a framework, right? And we talk about, well, you want to get, you want to increase sales.

6:45And then I go into case studies. There's 196 primary sales accelerators. You guys have access to all this, by the way. 196 primary sales accelerators. Here's a few of them. I can help you with that. And here's some case studies. So now we go to, what if you don't have any case studies? Well, if you're on Epic Board, you can use ours. You can partner with somebody or you can just skip it like I used to do because I only just started using case study. So grew a$360 ,000 a year e-commerce business 86 times. That's pretty sexy because they're going to future pace themselves into this. I'd like to grow 80s.

7:22Well, if I grew 86 times, it'd be this. To$31 million a year, added products to digital info sales, brought in professional management, exited to a billion dollar strategic acquirer. That sounds good. That's a case study, right? Case study two, completed digital transformation of a live events company, reduced costs by 50%, increased sales by 200%. Case study three, these are all just sales. Grew a multinational manufacturing company to sales on five continents, nine figures in sales, installed professional management, and professionalized for exit to a strategic acquirer. Then we've got this bankable profit thing.

7:56Not just profit, bankable profit. I can take this profit and put it in my pocket. How many of you have got profitable businesses that you don't ever take any profits out of? That's a really good conversation because a lot of people are experiencing the pain of that. Well, we've got 63 profit accelerators that we're going to work with you to increase the profit in your company across six different categories. Then case studies. Consumer products company in the golf space, in debt, over$3 million, losing money, re-architected the business model, restructured the business to eliminate existing debt, generated$2.4 million in profits in just 12 months.

8:33Then created a new value ladder and negotiated a strategic partnership to transform a software as a service company from losing$300 ,000 annually to generating annual profit of$2.4 million. Number three, redesigned a business model of a rapidly growing professional services company and increased profits 300%, reduced staffing needs and lower operating costs by 67%. Again, these are all very strategically chosen from my private clients and portfolio companies that we've got so that it addresses the broadest potential spectrum of needs and desires that our ideal target would have. Then increasing valuation, building transferable value, all goes in line with the framework.

9:18We've got 50 primary value amplifiers. And then we talk about the valuation multiple arbitrage that owner-operator businesses typically only sell for 2.5 times, but just installing professional management and professionalizing the company can take you up a full 2x in multiple. So that's a really good strategy because right now, most of the people we're dealing with are owner-operators. They can't leave the business for six months or a year and come back and expect it to be as good or better as when they left it. then exit to private equity, that's selling for 15.3. That's our game. We go from, and I just talk about it in colors.

9:57We've tried to take you from a blue box company to a red box exit. That's what we're really about here. And don't worry, because I know a lot of you are really concerned, are those private equity guys going to make it? They are. They're going to go public and it's 21.7 now, even after huge, huge losses. Valuation case studies, restructured a home services company, increased the value 221%, achieved$4 million in tax savings, and negotiated an exit to a strategic acquirer. Grew a training event company 50 times, sales revenue of 6x, an enterprise value 20x, resulting in an exit to a strategic partner that was a Blackstone company.

10:31That was our event, right? Case study three, grew a digital publishing company by 3x, profits by 12x, repositioned the business model, acquired additional products, increased the value 30x. Nine case studies. You want to talk about credibility, but I didn't have to say any of that because we have this to give to people. That was a senior deck. How we're going to work together. So you're like, how do we work with our clients? This is it for us. We assess, improve, and exit. So we're going to take an assessment, all kinds of things around that. How are we going to improve the company? And then how are we going to get out?

11:11Okay, then our objective, and this is super helpful because we say like during the asses stage. It worked for me. During the asses stage. I'm here for it. You're typically around a one to two X. This is gonna be the baseline that we establish the value of the company because most people's companies aren't worth even the average of 2.5 because they've got all kinds of dependence. They're actually not sellable at all. Yeah. Okay, so we're being generous to say, so you're at one to two X now if you're lucky. if you're even exitable. Now, over the course of year one, we're going to take you to a three to five X valuation.

11:48And then over the following couple of years, we're going to add additional benefits to take you to four X. So we're going to improve you two to seven X over that period of time. And then by year five, our goal is that we're five to 15 X value. Again, that's a broad range, but it's because different industries sell for different things. So we're going to exit at a significantly higher value than you came in. And that graphic is super helpful for explaining what we do, which was one of the other questions that we had during the first day was how do we explain what we do? Right? Okay. Do you qualify to work with us?

12:25Not do we qualify to work with you? Can we please beg some equity out of you? Hey, we're pretty selective. We can only do a certain number of deals a year. And what we do is magic for people. It is freedom. It is wealth building. It is asset creation. It is income multiplication. So do you qualify to work with us is really important. And we're positioning it again with the deck saying, do you qualify to work with these guys? Right? So we want character. We want people that are service focused, that have a prosperity mindset of abundance, not a scarcity mindset. Right? And we want people who are of impeccable integrity.

13:04It is very important to us that the people that we work with are in integrity with everything that they do and congruent with that. Then industries, we only work in certain industries. We do B2B and B2C services. We do e-learning and SaaS franchise events and media. That's really all we want. So if you're an e-commerce company, sorry, I don't care how profitable you are. It's just not my thing. And that's like, I learned that from Buffett. Buffett said, I get people coming all the time that have tech companies like Facebook and Uber and things like that. He's like, I don't understand it. I understand a garbage company and a furniture store and a candy shop.

13:41But know what you do. If you are saying, I want to do it for everybody, then you're not going to be terribly appealing to the people that you really want to reach. Then financial, what do you have to do to qualify? Again, for us, it's ideally 2 million to 60 million in sales and a minimum EBIT of a million dollars a year up to about 30. When it gets above that, it's too much competition generally with private equity because they have more money than we do. And we're not really looking to make an investment of cash. Then how does this work? What's our communications cadence? A lot of you ask that.

14:20Well, we do three things. We do strategic planning. Then we're going to do ad hoc check-ins as you need us. And we're going to have a scheduled review. So the strategy planning is going to be quarterly strategic planning via Zoom. We're not going to meet in person for that. That doesn't take much time at all. Then we're going to have these two are our masterminds. We want you to come to the masterminds. As Adam said, it's kind of like a board meeting. It's a really big board meeting, but it's kind of like a board meeting. Then whenever you need us, whatever your preferred channel of contact is, we can talk with you on Slack, text, phone, email, et cetera.

15:01And then we're going to have scheduled periodic reviews. Once a month, we're going to review the KPIs and how you're progressing towards the advice that we gave you last time. Did you do the things you said you were going to do? Quarterly, we're going to have a Zoom board meeting. And then once a year, we're going to get together at our favorite resort that's right down the road from here. Sorry, Grand Del Mar. And we're going to have a personal face-to-face meeting. That is how we work together. Here's the process of how we go about that. A lot of you ask that, right? First, you've got to apply.

15:36You don't get in without applying. Then we're going to review the application. We're going to hop on a Zoom call and get our questions clarified about what you gave us. We're going to do some light due diligence, then have another Zoom call and clarify whatever there. Then we're going to make a decision on whether you qualify to work with us. really important. Then we're going to have a Zoom call and tell you, you suck, we're not going to work with you, or we love you. Then we'll do the agreement, and then we'll go through an onboarding process. And then click here to work with us, which takes them to the automated intake.

16:14So again, going to systems and automation, now this takes them to several questions that are the high-level light diligence that we need to know. And all you board members, you know this, you have this, right? So this is a deck you can send, or we also build a website for you and you can go in there. So now that automatically, systematically gathers the light diligence that allows us to make the decision and populates it into a Google Docs so that we have all of our leads in there, which can then be exported to a CRM so that they can be communicated with automatically. Is that helpful? Okay. Awesome.

16:52Okay.

17:06Hey, Roland Frazier here. If you're looking for a way to grow your business exponentially, to get more customers and ultimately increase your wealth, there's no faster way to do it than to acquire other businesses that already have the customers, products, services, teams, and media that you want. If you want to double your sales, just acquire a company that has the same sales as yours. It sounds simple, but far too many people end up starting new businesses that fail and forget that they could skip all the hard stuff and just acquire one that already exists. There's a reason why private equity firms, family offices, big companies like Apple, Google, and some of the smartest entrepreneurs on the planet do not start new businesses from scratch.

17:49They acquire already successful businesses. And when they do it, they instantly increase their sales, their profits. If they want market share, they increase that. They can get new products and services to offer all instantly. Hey, look, 90 % of new businesses fail. 90%. Why not acquire an already successful business and increase your chances of success by 900 %? What most people don't realize is you can acquire highly profitable businesses with no money out of your own pocket in pretty much any country in the world, regardless of your credit and without having to go find a bunch of investors or needing any experience.

18:26Look, I've been acquiring businesses for over 30 years now and I cover the whole process in my Epic Investing Strategy Training and I wanna give it to you 100 % free. Just visit businesslunchpodcast.com forward slash epic to get your free access to my Epic Investing Training right now while it's available.

18:52Ever wonder how some people build real wealth through acquisitions while others just sit on the sidelines? Well, I'm here to tell you it's not about luck. It's about having the right system, the right deals, and the right guidance. And that's exactly what we give you in the Epic Deal Fast Track. If you've been thinking about buying a business, but you keep getting stuck, whether it's finding the right deal, structuring the financing, or negotiating with sellers, You are not alone. Too many people waste months, even years, just thinking about acquiring a business while the real opportunities pass them by.

19:26The Epic Deal Fast Track is not another course. It's actually an implementation program, and it's designed to get you from the idea to the acquisition in just 16 weeks or less. We work with you one-on-one to help you find, fund, and close your first or next deal. And once you do, we're going to plug you into our elite Epic Board community so that you can keep scaling through acquisitions. We install three powerful systems in your business. The first is the deal flow engine. So you always have high quality off market deals coming to you. Number two, we give you our offer and funding system so that you can structure offers that get accepted and fund them creatively many times with no money out of your own pocket.

20:09And number three, our closing and integration system so that you don't just buy a business, you actually successfully run and scale it once you have acquired it. Plus, you'll have direct one-on-one support from an Epic Deal advisor every step of the way. And that's people that have actually come up through the system and done these deals themselves. That's the only way to become an Epic Deal advisor. And if you're serious about acquiring a business this year, don't just sit on the sidelines. Just text I'm in to 334-458-9034 and we'll get you in. So text I'm in to 334-458-9034. We'll get you in.

20:46No fluff, no wasted time, just real deal making from people that are actually out there doing deals right now. I'll see you there.