Building and Selling a 6 Figure Business. What You Didn't Know with Phyllis Khare

0:01Boom! Shake the room, Fire Nation. JLD here and welcome to Entrepreneurs on Fire. I am brought to you by the HubSpot Podcast Network, the audio destination for business professionals with great shows like Imperfect Action. Today, we'll be breaking down, building and selling a six-figure business, what you didn't know. To drop these value bombs, I are brought to Phyllis Kerr and to EO Fire Studios. Phyllis is an author, coach, mentor, co-founder, course creator, content director, marketing coach, and more. She enjoyed a long career in online marketing and continues to enjoy working with a few select influencers.

0:35And today, Foundation, we will talk about building the six-figure business, selling a six-figure business, being a consultant afterwards, working with five-star clients, artistic side hustles, and so much more. And the big thank you for sponsoring today's episode goes to Phyllis and our sponsors. Success Story, hosted by my friend, Scott D. Clary, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. Success Story features Q &A sessions with successful business leaders, keynote presentations, and conversation on sales, marketing, business, startups, and entrepreneurship.

1:05In a recent episode, Scott brings Kate Bradley on the show, founder and CEO of Lately.ai, to discuss the best ways to use AI to create content. Listen to Success Story wherever you get your podcasts. Many EO Fire listeners have launched non-food franchises, and Franbridge Consulting has guided them. Franbridge's founder and frequent EO Fire guest, John Ostenson, has done more placements than any other in the country, and his service is free. Sign up for a consultation with John or get a free copy of his book, Non-Food Franchising, at franbridgeconsulting.com. Phyllis, say what's up to Fire Nation and share something that you believe about becoming successful that most people disagree with.

1:46Oh, this is a good one. Most people will disagree with the idea that there's one way to do this. You just have to build your email list. You gotta do the things. You gotta like do the YouTube videos and you just have to follow the system. But it turns out that most people end up eventually disagreeing with that because it really is an individual path in this life. And there are so many different ways to get to where you want to go. I love that. And it kind of leads into the awesomeness that we have to chat about today. All about building and selling six-figure businesses. And I want to start with the first thing there, which is what goes into actually building a six-figure business?

2:31What does that look like? Well, it's not a straight line up, as you know. It's an up-and-down process that took us 10 years, really. And there was an arc to it. And as in all things in my life, there's a beginning where it's like we're scrappy and we don't know what we're doing. And we have maybe some successes and we build on that. And we look at the data and you say, okay, well, this works and this doesn't work. So let's lean into this. And so you learn things through time to help you build the business. And for me, it was all about really listening to what people wanted and then building those things.

3:12Then what happens is you start to scale it a little bit and you start to put a lot more money into advertising and you start building it out to a wider audience. and that's where you can get to those six figures. And that's exactly kind of how we did it. But we had a long timeline on that. I know a lot of entrepreneurs, they can do this in months or within a year. But for us, it was a little bit of a long haul, but we did it. And that's all that mattered for us at the moment. And that's what we're talking about here today, Fire Nation. One thing that I want to circle back to that Phyllis shared is it's listening to what people want in building those things.

3:53I've mentioned this before, but it's a theme that I believe so strongly in. You, Fire Nation, need to create the number one solution to a real problem in this world. It's another way of saying, you know, listening to what people want and building those things. But you do have to be a little careful, I believe, there is that, you know, some people, sometimes some people will say, oh, I want this, I want that. But do they need it? Do they have to have it? Yes. And will they buy it when you deliver it to them? Exactly. This is very important. Will they vote with their wallet, we like to say? Because a lot of people, they like to just say, oh yeah, I want that.

4:30Oh yeah, that'd be nice to have. That's a good... And they're probably being truthful for sure, but just because they want it doesn't mean they have to have it. It doesn't mean it's solving a real pain point they have. So you've got to dive deep into that. And what's an example of you doing something like that, Phyllis? Like, what did you finally figure out your audience really wanted? What is it? Are you psychic? Because you just like landed exactly on something very recent. Andrea Voll and I decided that we were going to build something new. And we have learned to be cautious and to reach out to our community first to see if it's anything that they actually want.

5:14And so we did. We pitched this idea to our community and they loved it. Oh man, this was the best thing. It was great. I couldn't wait. And then so we sent them the information to sign up and it was almost crickets. Not totally crickets, but it was, you know, not at the same level as the enthusiasm we saw when we pitched the idea. Well, let me break in here real quick. Sometimes like almost crickets is actually worse than crickets because that means now you actually do have a couple clients that you have to serve. and it's not profitable. So sometimes you either want to hit a home run or strike out.

5:49Just wanted to kind of interject there, but keep going. Yeah, it was a very odd situation that we had never really been in before to have that mismatch between the pitch and the verification of it. So we decided to not do the project. And it was a very odd sensation for both of us because we felt very deeply that this was something really good and cool and necessary and needed and wonderful and, you know, all the things. But you can't have a business if you don't have customers. So we decided to move on and do different things. And that's fine because, you know, both of us have a lot of plates up in the air and it was okay.

6:34But that was a very recent experience. Yeah, but that was a negative experience. And so I want to talk about a positive one. Like you have built a six-figure business. So when did you do it right? What did you identify? We developed community. I think that's what built the six-figure business more than anything is everybody felt connected and in community. And I think that's really important to keep people in the community is that feeling. So we did that successfully. But then things changed in both of our lives. And we had to move on from this whole thing that we had built. And that's a very interesting chapter turn in a person's life when they've done something for 10, 12 years, and then they notice that the chapter is turning.

7:22Okay, before we talk about that chapter, though, you said community. That feels very vague. What was it exactly that people were paying you money for that brought you to Six Figures? I think it was a mix of personality. There's not any thinking behind it, though. Like people were paying you, Phyllis. What were they paying you for? Like what was the product they were receiving? What was the service they were receiving? Oh, do you want to know about the business? Yeah, absolutely. Oh, okay. I'm sorry. I didn't know if you wanted me to go deeply into that or not. Well, I do. Well, Andrea and I, we built Social Media Manager School.

7:58And that trained people to be social media managers. and then also as they develop their career, be able to turn that into agency business models. So that's what we built together as a six-figure business. So what is the solution that you are providing to that problem? Well, we were training people how to use not only the social media accounts and platforms, like just basically how to use them properly as a marketer for themselves and for their clients, but we were also teaching them how to run their business, how to do time management, how to do their accounting, what tools to use for appointments, you know, all the things that help you build a business too.

8:39So we were teaching people how to build their business as a social media manager. And then a time came where you decided, I'm going to sell a six-figure business. So talk about selling that business. Share with us that process from the decision through to getting the check in the mail. If anyone has ever built a business for 10 years, that business is your baby, right? It's like, at least for us, for us, it was very much a personal build. It wasn't just a business that we built and it was just a thing. It was a very personal thing for us. And we didn't want to just go to Flipper and sell it to some Joe down the street, right?

9:20So we reached out to people in our industry that we knew could benefit from it and would take care of it. And that was very important to us. So we did that. We did that reaching out to everyone. And we did have some people say, yes, this would be a great thing to do. We're interested. And then we narrowed it down to one person we thought was just right. And And that communication just continued to develop. And they said, yes, we want it. So then you have to negotiate a little bit. And this is something I would advise people who are going to sell a business is really look into the value of your business before you pitch a number that you think is appropriate.

10:06I honestly think our business was worth a lot more than what we asked for. but having been the first business that we had built and sold we you know learned these things along the way and there there are tools out there for people to find out the value of their business I mentioned Flippa but there are all all sorts of other ones that you can do and you just plug in all your numbers right you plug in your email list size your your expenses your income the size of your community, all the things. And it just spits out a number and that's the value they give to the business. And it's a useful tool.

10:44It's not something you should take for gospel, but it is a good working beginning. So we came upon this number and we negotiated it. And in 2020, we did sell the business and all the assets to the business and even, you know, do not compete kind of thing for a few years. Now for 2000 episodes, I asked the question, what is the worst moment you've experienced as an entrepreneur? And believe it or not, you may believe this, or you may not, but believe it or not, a lot of people's answers was the day I sold my business. Did you have one of those experiences? Yeah. So it's a very odd sensation to take something that you've built for 10 years and you know, intimately every nook and cranny of the business.

11:32And then and just hand it to someone and say, have fun.

11:39It's odd. It's a very odd sensation. Now, for me, it was a little even weirder because I also, in the cell of the business, negotiated an independent contract with that same company to kind of shepherd it into this new ownership. So that doesn't usually happen. Usually, if someone sells a business, the new business sort of kicks the old owner out because they want to do it the way they want to do it. But in this particular case, I negotiated this contract where I could be there and be the sort of resident expert on what they just bought. Fire Nation, very interesting things to think about and talk about here because, hey, when you do sell your business, yeah, you may be getting a check in the mail, but that's oftentimes the only thing you're getting.

12:31That recurring revenue that you're used to getting, that kind of salary that you may be having as a distribution every month, that's gone. And then quickly people are like, oh, I thought this was a big number, but it keeps diminishing and there's no replenishing. So that's why that could be a very good idea if you can kind of create something like Phyllis did there. And we have a lot to talk about around this topic when we get back from thanking our sponsors. Personalized support has quickly become an expectation from customers everywhere. They want help and they want it now. But many businesses aren't equipped with the right tools to help them deliver.

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14:52That's FranBridgeConsulting.com. Phyllis, we're back. And one thing I want to dive into is your belief in only working with five-star clients. If you're a 4.5, see you later, out the door, I don't want to talk to you. So how do you accomplish this and why do you have belief in this? Interesting thing. I think it first started as a habit because I kept clients the whole time I was also running this business. I felt very strongly that I need to have boots on the ground and actually doing the work that was supporting the training other people to be social media managers. So I really only had time to have one or two clients at a time while I was also running the business.

15:36And I found that the more clients I had, the less comfortable I felt in my abilities. So I always kept it very low. I learned very early on that I'm not the type of person who builds an agency myself. I help people build their agencies with systems and tools and all of that. But for me and my personality, it was like, nope, just got to be that one rock star client that I can really make the difference with. So it started out as a sort of habit that way. And now I keep it up because I think it works best for me and my personality. But by a five star client, that's two things, really. One is they have to be involved in the business.

16:20I don't work for people and work with. I must say I work with people, not for them. This is an important point. But I like doing all the things for them, their content management, all their blogging, their editing, their email marketing, their YouTube strategies, their Amazon shopping strategies, their e -book strategy, like all the things. because I think all of them have to play on the main strategy for the business, which is to make money. So I like to have control of all of those aspects of a person's business. So I kind of become a partner, complete partner in their whole business setup. And this works great for me.

17:06It works great for my clients. And I just like doing it that way. One thing I want to talk about is kind of having a balanced life. And a balanced life is focusing on health and wellness. because the unhealthy person only wants one thing, that's to be healthy. While the healthy person can want a thousand things because they're healthy, they can go after and take over the world. So you need health and wellness. You know, you need to balance that. Well, hopefully work that you enjoy, but then there's this whole kind of side thing where a lot of entrepreneurs just don't find time to create hobbies or these artistic side hustles.

17:43What are yours? Oh my, well, I have to say my artistic side hustles are therapy. They are my therapy. And even though these side hustles could become bigger businesses, I don't work them that way because then I just have another business I'm doing. So they're definitely side hustles, but more therapeutic side hustles, I would call them. And for years now, I've done these artistic things where I create patterns and I put them on things. So I put them on napkins and linens and clothing and bags and shoes and journals and things. I just like that process of going from creating something pretty and putting it on a physical thing in the world.

18:34And so that's sort of my hobby of creating that. And funnily enough, that process of learning how to do that has now brought me some coaching clients where I'm teaching them how to do the same thing. So entrepreneurs really can't help themselves. Sometimes they just sort of end up creating business based on whatever it is that they're learning. But these are small, intimate groups of other people who have been in online marketing for a decade or more who really need to do something different in their life. That side hustle becomes very important for that balance in life. So I'm working with a lot of women doing that right now.

19:18And I love it. Side hustles are important. And not only side hustles, but to me, side hustles that show up in real life, in the physical world, is what I mean by that. What is your artistic side hustle? Do you have one? Are you hoping to acquire one in the upcoming days, weeks, months, years, so that you can kind of look back after 20 years and say, You know what? I didn't just grind and just work. I really enjoyed life. I focus on health and wellness. I had this hobby that I had fun with. For me, for a long time, it's been pickleball. I really like getting on the court and just playing a game against other adults and just having fun doing that.

20:01Now, Phyllis, I want to end strong here. I mean, the word retirement is scary for a lot of people, but is retirement in your future? I think there's a softening of the work schedule. I think there's an awareness that it's important not to fill up every waking hour. I mean, I'm in my mid-60s now, and I don't see a time where I'm just living off of Social Security or whatever. I don't see that in my life. The one thing I found out about myself in the last few years is the worst feeling in the world is boredom. And it's like physically painful to be bored. And I love to work and do and create and make things.

20:49And so that's part of my life. And even right now, I've got this strong hankering to do something in the retail space locally. And I find myself looking at buildings and talking to contractors and looking at, you know, what that would be for my business and how it would change the structure, like all of those things. So that's another chapter in my life. That's another 10-year kind of page turner there. and so I don't necessarily see retirement until maybe, I don't know, in my 90s? What do you think? The next chapter, just keep on turning that page, Phyllis, because why not? I love it. And let's end with a bang.

21:32Share with us the one key takeaway you really want to make sure Fire Nation gets from our conversation today, the best way that we can connect with you, any call to action you have, and then we'll say goodbye. Well, I think that the one key takeaway is that your life is a journey and there are chapters in your life. And what you're doing right now is not necessarily what you're going to be doing 10 years from now. You might have some inkling of what is on the horizon by where your attention is going and what you're drawn to. So kind of lean into that and develop that as your old chapter ends and your new chapter begins.

22:08And I think that's really where I am right now is another chapter turn. and that's okay. I'm like okay with that. And I hope you are too. Absolutely. And share with us the best way to connect with you, any call to action you have. Best way to find out about anything I do is just go to Phyllis Care and you got to spell it right, man. It's P-H-Y-L-L-I-S-K-H-A-R-E.com forward slash links. And there you'll find my books, my journals, my YouTube music videos, my artwork, all the things. And you can just go explore and see what I'm up to. Fire Nation, you, yes, you, are the average of the five people you spend the most time with.

22:53You've been hanging out with PK and JLD today. So keep up the heat. For links to everything we talked about, visit eofire.com. Just type Phyllis, as she mentioned, P-H-Y-L-L-I-S, in the search bar and the show notes page will pop right up with links to all that jazz. Phyllis, thank you for sharing your truth, your knowledge, your value with Fire Nation. For that, we salute you and we will catch you on the flip side. Hey, Fire Nation, a huge thank you to our sponsors and Phyllis for sponsoring today's episode. And Fire Nation, over the last decade, I've interviewed more than 4 ,000 of the world's most successful entrepreneurs and I've created a revolutionary 17-step roadmap to your financial freedom and fulfillment.

23:33I put it all into my first traditionally published book, The Common Path to Uncommon Success, personally endorsed by Seth Godin and Gary Vaynerchuk. The Common Path to Uncommon Success is the step-by-step guidance that you need to achieve the lifestyle of your dreams. Visit UncommonSuccessBook.com. I will catch you there or on the flip side. Success Story, hosted by my friend Scott D. Clary, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. Success Story features Q &A sessions with successful business leaders, keynote presentations, and conversation on sales, marketing, business, startups, and entrepreneurship.

24:12In a recent episode, Scott brings Kate Bradley on the show, founder and CEO of Lately.ai, to discuss the best ways to use AI to create content. Listen to Success Story wherever you get your podcasts. Many EO Fire listeners have launched non-food franchises, and Frambridge Consulting has guided them. Frambridge's founder and frequent EO Fire guest, John Ostenson, has done more placements than any other in the country and his service is free. Sign up for a consultation with John or get a free copy of his book, Non-Food Franchising, at FranBridgeConsulting.com.