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Speaker 2: So can you talk about that As far as your

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Speaker 2: backstory into coming into the health field and what made

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Speaker 2: you transition your family's trajectory from being a healthcare worker

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Speaker 2: to being a healthcare.

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Speaker 3: The trajectory was started with my mom.

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Speaker 4: Wait, she was the first one to make the pivot

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Speaker 4: into doing something entrepreneurial in healthcare. She started a nurse

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Speaker 4: staffing firm or what they call nursing agencies, so I

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Speaker 4: was helping her out with that, and that's what got me.

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Speaker 4: Like that early exposure to, you know, being entrepreneurial in healthcare,

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Speaker 4: my mind was still on, Okay, I got to get

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Speaker 4: go into a healthcare profession. They were thinking that all

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Speaker 4: of our kids were going to become doctors. My brother

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Speaker 4: is a physician, and another one of my brothers as

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Speaker 4: an MRI technologist as well. So a lot of us

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Speaker 4: went straight into healthcare because that's what was drilled into

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Speaker 4: our heads. But as I was going through school, I

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Speaker 4: started to focus more and more on the business side

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Speaker 4: of things, eventually opening up an expansion of the healthcare

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Speaker 4: company in Long Island. And I was using school and

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Speaker 4: using that experience to kind of build and improve the business.

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Speaker 4: She was working at a nursing home and they were

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Speaker 4: using what they'd call agency nurses, and she was like, well,

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Speaker 4: why don't I just start when I want to start

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Speaker 4: an agency and get my friends from other hospitals to

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Speaker 4: work for me and be one of your providers.

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Speaker 3: And that's where that company started.

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Speaker 4: But my mom has like zero computer skills, So when

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Speaker 4: it was time to create the documents, it was me

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Speaker 4: making the documents.

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Speaker 3: When it was time to.

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Speaker 4: Create spreadsheets, to do the invoicing, to manage quick books,

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Speaker 4: anything that was on a computer was me, right because

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Speaker 4: I was the kind of computer geek of my household.

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Speaker 4: So I was like, Oh, Carl, I need this, Can

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Speaker 4: you know how to make this? Could you get get

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Speaker 4: it out of the computer. So it was always me

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Speaker 4: and my mom working on that side of the business.

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Speaker 4: So when I went to college, I ended up expanding

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Speaker 4: the business into Long Island, and every lesson that I

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Speaker 4: took that I could kind of like learn from to

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Speaker 4: bring that knowledge back to the business, I did, and

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Speaker 4: I ended up studying health technology and management with the

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Speaker 4: concentration in radiology radiological studies, and that was to become

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Speaker 4: an X ray tech and a cat scan technologist and

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Speaker 4: an MRI technologist. And I chose that path because I

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Speaker 4: wanted to have flexibility in when I worked, right, because

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Speaker 4: there's certain positions in healthcare that are twenty four seven

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Speaker 4: and there's some of them that are only like nine

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Speaker 4: to five, and I didn't want to choose a career

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Speaker 4: path within healthcare that would narrow me down to work

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Speaker 4: in nine to five, because I knew I needed to

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Speaker 4: have the nine to five the business hours free to

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Speaker 4: expand on my business. So that was kind of the

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Speaker 4: reason why it chose x Ray because it's you know,

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Speaker 4: their x ray techs are working all shifts, they're doing

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Speaker 4: cascaing at night, or they could flex into MRI. So

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Speaker 4: I thought that that was going to be the best

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Speaker 4: fit for me. And plus I knew that I would

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Speaker 4: have work as well. And I never you know, and

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Speaker 4: this is a message to anybody who's thinking about going

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Speaker 4: the entrepreneurial I never like to not have.

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Speaker 3: A guaranteed income from somewhere.

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Speaker 4: And I felt like, if I'm if I can work

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Speaker 4: nights and I could work weekends and use all of

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Speaker 4: my free time during the day to folks in the business,

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Speaker 4: then I'm going to do that. But I'm never going

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Speaker 4: to sacrifice the potential to earn. And that's one of

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Speaker 4: the things that is pretty special about about healthcare is

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Speaker 4: because you know, a nurse could work, you know, three

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Speaker 4: three days a week, three thirteen hour shifts or three

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Speaker 4: twelve hour shifts, be full time, and then have four

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Speaker 4: days a week you know, on a nurse'ssalia at that

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Speaker 4: four days a week to focus on whatever else.

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Speaker 2: It is that focused on whatever else they want to

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Speaker 2: do in life. So it's like you can be a

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Speaker 2: real estate entrepreneur, you can work another job if you want.

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Speaker 2: It's like, you know, it's pretty flexible out and so

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Speaker 2: let me ask you this. As far as the healthcare

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Speaker 2: industry is something that pretty much is recession proof, there's

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Speaker 2: a shortage just like the only especially nurses, there's the

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Speaker 2: only profession I think that is extremely on demand right

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Speaker 2: now where everybody else is firing people and it's like

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Speaker 2: they can't find enough nurses, especially where we're at in

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Speaker 2: New York. So as far as that is concerned, right

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Speaker 2: for an entrepreneur, because we don't get in the business

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Speaker 2: model of it, how did you like, what was the

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Speaker 2: steps for you to start your home is it? I

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Speaker 2: don't a misquote. It's a home nursing service home long

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Speaker 2: term nursing service.

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Speaker 4: See licensed home care service agency and then New York

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Speaker 4: they call them.

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Speaker 3: Link says and chops. It's two types actually, But.

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Speaker 4: It started first as a staffing firm, which is very simple.

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Speaker 4: Our staffing firm just need to incorporate yourself. You need

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Speaker 4: to have a contract that says that you're going to

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Speaker 4: be providing you know, contracted services, a rate sheet that

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Speaker 4: says how much you're charging, and you're in business literally

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Speaker 4: for less than a thousand dollars. You could start out

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Speaker 4: a nursing agency, right because and it's it's actually mislabeled

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Speaker 4: as a nursing agency because you're not you're not taking

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Speaker 4: a percentage of the wages of that employee. So like

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Speaker 4: in New York City, you could get a license to

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Speaker 4: be an agency through consumer Affairs, so and that's a

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Speaker 4: very easy process, but that's because you're charging a fee

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Speaker 4: to the person that you that you're getting the job for.

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Speaker 3: Right.

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Speaker 4: A staffing firm is different because those people work for

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Speaker 4: your company and you're assigning them to work in a hospital,

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Speaker 4: in a nursing home or something like that, and you're

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Speaker 4: charging the hospital a fee, taking your cut, and then

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Speaker 4: paying your employee. So it's not by definition an agency,

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Speaker 4: but they just refer to them as agency nurses because

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Speaker 4: that's what the terminology is.

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Speaker 5: Where did the idea for the staffing agency come? Right,

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Speaker 5: So you're doing X rays, you deviated from the plan

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Speaker 5: of being a doctor. Was it from the influx of

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Speaker 5: people coming into the hospital and seeing that there was

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Speaker 5: a shortage.

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Speaker 6: Where did the influence come from?

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Speaker 3: It came from my mom.

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Speaker 4: She just saw an opportunity for a money grab and

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Speaker 4: she was like, well, if I know several nurses myself,

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Speaker 4: and I'm a nurse, so if I could start this,

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Speaker 4: then I could just pull my friends together and we

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Speaker 4: could provide services to these you know, understaffed hospitals and

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Speaker 4: nursing homes. So that's where the idea came from. I

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Speaker 4: got to give her that. But being exposed to that

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Speaker 4: at fourteen years old made and seeing what the numbers

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Speaker 4: were made it like, okay, this is a no brainer

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Speaker 4: for me to kind of expand on that. But while

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Speaker 4: we were in the staff infirm business, she also was like, well,

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Speaker 4: since we're doing well here, there's an another side to

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Speaker 4: this business, which is home healthcare. And I see those

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Speaker 4: companies and she worked. She would work, and that's my

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Speaker 4: mom is I guess pretty genius. She would have worked

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Speaker 4: for them to kind of learn how they maneuver and

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Speaker 4: get exposed to like where they get their contracts from,

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Speaker 4: how what's the money flow. And then she was like,

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Speaker 4: all right, let's look into getting a license. So while

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Speaker 4: we're in high school, we were working with a license.

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Speaker 4: A license didn't hit until two thousand and one. But

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Speaker 4: the staffing firm business was going well. I had expanded

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Speaker 4: to Long Island. We didn't do anything with the nursing agency,

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Speaker 4: I mean with the home healthcare agency. It was just

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Speaker 4: sitting there dormant. But something cool happened, which is New

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Speaker 4: York State stopped issuing the licenses, right, They capped out

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Speaker 4: the licenses.

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Speaker 3: So we start getting phone calls to buy our license.

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Speaker 4: And the phone call first was fifty thousand dollars, then

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Speaker 4: it was one hundred thousand dollars, then it was two

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Speaker 4: hundred and fifty thousand, there was four hundred thousand, and.

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Speaker 3: We thought about selling it just to fuel the staffing firm.

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Speaker 4: But it was like, wait, if we're getting offered four

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Speaker 4: hundred care for this license.

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Speaker 3: To operate, there's money here.

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Speaker 6: So what was What was the reason that New York

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Speaker 6: State decided to stop issuing.

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Speaker 4: Ze same reason why they're trying to scale back the

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Speaker 4: agencies now. It's just too much oversight. Right, So there's

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Speaker 4: more than two thousand agencies in New York, right, every

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Speaker 4: three years, we get surveyed by the state and they

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Speaker 4: have to send three nurses to your agency to review

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Speaker 4: your medical records. So to do that to two thousand agencies,

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Speaker 4: you need a lot of you know, personnel, So it

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Speaker 4: gets out of control every now and then where it's

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Speaker 4: just too many people to monitor. So they're actually trying

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Speaker 4: to force a consolidation within the industry, shrinking the number

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Speaker 4: of licenses that are out there.

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Speaker 3: So it's easier for them to maintain oversight.

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Speaker 2: So all right, so in a sense you have the

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Speaker 2: company where it's like a middleman. In a sense, staffing

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Speaker 2: is actually really big. We haven't even to talk about

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Speaker 2: staffing on this podcast before. But so you recruit, you

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Speaker 2: recruit people for job pretty much, and staffing you could

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Speaker 2: do any you could do staffing in any type of it, staffing,

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Speaker 2: naf staff and stuff like that. And then you you

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Speaker 2: charged the hospital and they pay you and then you

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Speaker 2: paid a difference. How lucretive can that make?

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Speaker 4: Is there?

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Speaker 3: What's the profit margins on that?

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Speaker 4: It could be as much as fifty percent because it

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Speaker 4: depends on what the hospital is willing to pay. In

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Speaker 4: home care, the profit margins about eleven to thirteen percent

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Speaker 4: because it's getting Medicaid dollars and the margins are small there,

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Speaker 4: just like the margin for a hospital is only eight percent, right,

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Speaker 4: hospitals are a functioning on eight percent margin. Or with

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Speaker 4: staffing itself, it could be as high as fifty because

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Speaker 4: it's it's how desperate are they for.

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Speaker 3: Staff and what are they willing to pay?

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Speaker 4: But usually you're charging like a thirty percent markup over

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Speaker 4: what you're paying your staff.

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Speaker 2: That's kind of so fifty percent the best case scenario.

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Speaker 2: If they give you two hundred, you give the employee

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Speaker 2: one hundred.

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Speaker 6: And you say, and you're taking one hundred.

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Speaker 7: Yeah clean, it's like if if if that's what they negotiated, right,

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Speaker 7: So with the nursing comp it's usually about thirty percent

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Speaker 7: over because the hospital and the nursing facilities thinking well,

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Speaker 7: what do we pay our nurses?

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Speaker 3: What about matching their payroll taxes?

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Speaker 4: Right, that's another expense their workers comp and their healthcare

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Speaker 4: expenses plus PTL. So when you're trying to you want

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Speaker 4: to come in as close to their price or their

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Speaker 4: overtime price as possible because they're either going to mandate

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Speaker 4: their staff to work overtime or they're going to use

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Speaker 4: an agency, and if you come in for like a

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Speaker 4: dollar or two less than what that figure is, it's

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Speaker 4: now a saving to that facility and they'll be interested.

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Speaker 4: So you could charge like thirty to fifty percent above

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Speaker 4: because if it's at fifty percent, you know you're hitting

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Speaker 4: the time and a half money, right, and they're still

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Speaker 4: going to they still may be short, so they still

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Speaker 4: may go with you, even though it's equal to their

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Speaker 4: time in a half number, and that doesn't include the

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Speaker 4: workers comp and taxes that they're going to have to

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Speaker 4: pay as the employer.

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Speaker 6: So undred thousand offer for the license, did you guys

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Speaker 6: decide to sell? You decide, you know what, we got

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Speaker 6: something great here, let's hold on to.

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Speaker 3: It, hold on to it. And at the same time

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Speaker 3: the market crashed.

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Speaker 4: So in the staffing business, right you have a contract

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Speaker 4: that says, all right, you're gonna pay me forty five

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Speaker 4: dollars an hour for an LPN nurse, and I'm going

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Speaker 4: to pay them and we're going to provide the service.

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Speaker 4: But what ends up happening is that you have the

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Speaker 4: terms that maybe every thirty days, every sixty, every ninety,

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Speaker 4: so you're front running the payroll until you get reimbursed

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Speaker 4: on your invoice, right, you're not getting paid weekly from

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Speaker 4: the nursing facility.

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Speaker 3: They don't pay out weekly.

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Speaker 4: So right before the market crashed, we were growing pretty

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Speaker 4: aggressively and we had line of credits to float that money.

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Speaker 4: So just like what's happening right now in this crash,

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Speaker 4: the banks pull back on those line of credits, so

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Speaker 4: we couldn't even provide as much services anymore. So it's like, well,

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Speaker 4: what are we going to do because now we can only.

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Speaker 3: Provide like thirty percent of our services.

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Speaker 4: And that's why we're even flirting with the idea of selling,

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Speaker 4: because it's like, if we've sold this for four hundred K,

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Speaker 4: that helps us, you know, have more buffer money.

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Speaker 3: But then we thought like, well, the.

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Speaker 4: Home healthy's get paid less than nurses, so let's just

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Speaker 4: start spooling up that side of the business, making you know,

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Speaker 4: smaller spread, but we can grow this beyond and people

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Speaker 4: are thinking about paying you almost half a million dollars

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Speaker 4: for the license.

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Speaker 3: There's got to be some money here, and that's where

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Speaker 3: that paper took place.

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Speaker 4: Is that true just for New York State or was

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Speaker 4: that something that was happening throughout the country where licenses

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Speaker 4: were being ceased.

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Speaker 3: Oh no, no, no, that's that's New York state.

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Speaker 4: Like right now in Florida, where I am and expanding

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Speaker 4: on my new venture, there isn't a moratorial licenses. I'm

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Speaker 4: applying for a license right now. Some states, I think

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Speaker 4: Michigan doesn't even have a license to operate. You could

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Speaker 4: just start a home care agency without any oversight, which

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Speaker 4: is kind of nuts to me because New York is

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Speaker 4: heavily regulated. California, of course heavily regulated. So you know,

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Speaker 4: short answer is that it depends on your state.

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Speaker 2: So a friend of mine in Ohio, he has a

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Speaker 2: health clinic and he was kind of explaining it to me,

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Speaker 2: and it was it was crazy because he was saying,

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Speaker 2: like with the healthcare industry, the common mistake that people

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Speaker 2: make is that they think that they actually have to

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Speaker 2: be in the field to actually be, you know, an

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Speaker 2: entrepreneur and like open a type of business. But you

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Speaker 2: don't have to be a doctor. You don't have to

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Speaker 2: be a licensed doctor to have these type of business right,

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Speaker 2: like that you have like you're not a licensed doctor, right.

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Speaker 3: I'm not a licensed doctor.

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Speaker 4: But in most states you have to have a licensed

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Speaker 4: person like either a nurse, or a physician on your

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Speaker 4: founding team if you're gonna if you're gonna do a

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Speaker 4: license home care agency, but as a staff and firm,

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Speaker 4: you could turn around and start one tomorrow.

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Speaker 6: So your mom would Your mom filled that role, right,

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Speaker 6: she was the nurse.

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Speaker 3: So that's that's how it worked.

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Speaker 4: So you know, if you're thinking about getting into this business,

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Speaker 4: like I get increase.

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Speaker 3: All the time on my channel where it's like how

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Speaker 3: do I start? How do I start?

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Speaker 4: So I started showing them step by step this is

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Speaker 4: how you do it. So step one, if you're going

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Speaker 4: to go and become a home care agency, you've got

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Speaker 4: to just research your Department of Health website and find

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Speaker 4: out are the issuing licenses, what is the application process,

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Speaker 4: and what are the rules and regulations right, because those

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Speaker 4: regulations are going to dictate what your policies are and

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Speaker 4: how your policies need to be drafted, and you're going

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Speaker 4: to need to develop your policies when you're applying.

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Speaker 3: It's actually pretty a pretty.

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Speaker 4: Grueling process because you're doing like man like four hundred

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Speaker 4: pages of policies, your forms that you're going to be

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Speaker 4: using to do your assessments. It's pretty intense, but you

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Speaker 4: could also hire a consultant to help you with that.

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Speaker 4: Like right now in Florida, since I'm in a much

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Speaker 4: better financial position than when we started the home caurgency before,

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Speaker 4: I'm just paying a consultant to handle the entire application

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Speaker 4: process and working on building my team while while they're

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Speaker 4: doing that piece, rather than physically typing. But from the

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Speaker 4: staffing firm perspective, you just need a you can get

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Speaker 4: like a boiler plate generic staffing firm contract. Pull that

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Speaker 4: up on Google, determine what area you're going to focus on,

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Speaker 4: if it's going to be healthcare or nursing, and then

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Speaker 4: decide what your.

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Speaker 3: Rates are going to be.

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Speaker 4: Make sure you're you're cushioning in at least thirty percent

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Speaker 4: spread because your payroll taxes are going to cost you

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Speaker 4: close to like ten percent, and then your worker's comp

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Speaker 4: is going to be around six to seven percent, so

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Speaker 4: then you're only going to be left in like twenty

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Speaker 4: So at least you charge your thirty percent markup if

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Speaker 4: you're going to do that. But the process, you know,

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Speaker 4: once you get licensed is all about what relationships you

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Speaker 4: build and executing on your marketing strategy so that you're finding.

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Speaker 3: Those those patients.

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Speaker 4: But on the staffing firm side, the process is call

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Speaker 4: the nursing home, called the hospital, speak with either the

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Speaker 4: administrator or the director of nursing and say, I am

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Speaker 4: a staff infirm.

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Speaker 3: I'm looking to gride services. Do you need coverage? Best time? Summertime? Why?

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Speaker 4: Because people are going on vacation. They're going to be short, right,

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Speaker 4: So that's when people are going to be desperate. They'll say, hey,

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Speaker 4: you know what, sure, you know, send us over your

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Speaker 4: send us over your contract and we'll have a reviewed.

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Speaker 4: The first contract that I got when I expanded in

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Speaker 4: Long Island took me about maybe two weeks of phone calls.

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Speaker 3: I just literally downloaded National County.

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Speaker 4: Nursing Homes and I just picked up the phone two

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Speaker 4: years old alone.

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Speaker 3: Call it cold calling.

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Speaker 5: You created the contrast yourself, or you sat down with

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Speaker 5: a lawyer. How did that process work?

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Speaker 3: Oh?

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Speaker 4: She took my mom took a copy of the contract

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Speaker 4: that her nursing home is using, and I just retyped

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Speaker 4: it all right.

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Speaker 2: Well, in the next segment, we want to talk more

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Speaker 2: about the business and also about the acquisition that you guys.

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Speaker 2: I know you were saying off camera that somebody had

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Speaker 2: offered you some money and you looked at that, And

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Speaker 2: because we'd like to talk about stories like that on

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Speaker 2: EUYL because these are things that the general public does

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Speaker 2: not know and isn't privy to. So yeah, we're going

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Speaker 2: to talk some more in depth about the healthcare fail

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Speaker 2: in the next segment. All right, So in this in

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Speaker 2: this segment, we're gonna we're gonna talk some more about

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Speaker 2: some actionable items. This is what everybody loves EYO for.

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Speaker 2: So you have two different businesses with the staffing firm

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Speaker 2: and the nursing But first I want to talk about

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Speaker 2: staffing so for people, because you said that's that's probably

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Speaker 2: like the more practical thing that really anybody can can

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Speaker 2: do as a staffing firm. And like I said, staffing

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Speaker 2: firms are big on a variety of different levels, not

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Speaker 2: just the medical. All over, staffing firms extremely big and

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Speaker 2: pretty much is just bridging the gap where somebody needs

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Speaker 2: work and their employees that are skilled to work but

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Speaker 2: they don't. They got to come together. So the staffing

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Speaker 2: firm job is to find the qualified employees and match

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Speaker 2: them with good employers. So what are some steps if

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Speaker 2: somebody wants to start their own staffing firm?

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Speaker 4: I'm going to try to break it down as simple

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Speaker 4: as possible. If you're going to be starting a staffing firm,

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Speaker 4: the first thing that you're going to need to do

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Speaker 4: is get your hands on just a basic staffing contract.

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Speaker 3: Okay, get a contract.

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Speaker 4: Review that contract, and part of that contract is going

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Speaker 4: to have a feed schedule, right, This is what you're

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Speaker 4: charging for the positions. Right, So if you're starting with nursing,

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Speaker 4: start with a feed schedule for urns, a feed schedule

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Speaker 4: for LPNs, which are licensed practical nurses, and then for

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Speaker 4: nurse aids, because those are the most utilized workers in

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Speaker 4: a nursing home or in a hospital.

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Speaker 3: Right. So that's one thing that you want to have.

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Speaker 3: But you're going to do your market.

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Speaker 4: Research next to know what is a nurse commanding as

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Speaker 4: far as salary, what is an LPN commanding as far

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Speaker 4: as salary?

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Speaker 3: And the nurse aid right, so that you know what

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Speaker 3: you're supposed to be paying.

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Speaker 5: Out specific to each state that you're in, specific to

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Speaker 5: specific to the state that you're in.

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Speaker 3: Specific to your region.

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Speaker 4: Even in New York, New York City is going to

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Speaker 4: charge higher rates than Buffalo, right, So you have to

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Speaker 4: just research your local market just to know what does it?

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Speaker 4: You know how much are you going to be paying,

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Speaker 4: because that's going to dictate how much are you going

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Speaker 4: to charge because.

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Speaker 3: You obviously need to cover that.

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Speaker 4: You're going to need to cover payroll, you need to

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Speaker 4: cover a worker's coup and then you're going to need

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Speaker 4: your profit marginal right, So I advise that whatever the

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Speaker 4: local rates are, charge a minimum of thirty percent more

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Speaker 4: or you know, as much as double, because it depends

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Speaker 4: on what's again the need of that position. So once

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Speaker 4: you have your contract set, the next thing that you

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Speaker 4: should do is obviously incorporate yourself, right, either go to

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Speaker 4: the LLC route or the corporation route, just so that

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Speaker 4: you have an entity and some sort of barrier between

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Speaker 4: you and liability. Right, that's the purpose and also the

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Speaker 4: tax benefit. So make sure you go out there and

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Speaker 4: incorporate yourself. You could do that on legal Zoom. I

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Speaker 4: use a service called Blumberg Excelsior. I'll send you guys

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Speaker 4: a link. You know, I like working with them. They're

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Speaker 4: quick and they'll set up your corporation within a day

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Speaker 4: or two. They'll even apply for your tax ID number,

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Speaker 4: all the things that you need to be recognized as

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Speaker 4: a business right, and that cost in New York is

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Speaker 4: going to be anywhere from like three hundred if you're

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Speaker 4: doing a corporation to like almost two thousand if you're

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Speaker 4: doing an LLC because of the publication fee that's associated

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Speaker 4: with that, because LLCs have to publish that they're coming

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Speaker 4: into existence. So once you have your contract and you

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Speaker 4: have your entity set up, and you have you know,

436
00:21:45,440 --> 00:21:48,000
Speaker 4: open up a bank account and the entity's name, the

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00:21:48,040 --> 00:21:52,240
Speaker 4: next thing that you should do is probably hire a

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Speaker 4: few people right to get your application. You can pull

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00:21:55,840 --> 00:21:58,719
Speaker 4: up any generic application online, but you're going to need

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Speaker 4: to get an application so you can actually on board

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Speaker 4: and have a pool of providers, nurses, nurse aids, LPNs,

442
00:22:05,000 --> 00:22:06,439
Speaker 4: whatever you're going to be hiring.

443
00:22:07,200 --> 00:22:10,600
Speaker 3: And you know, once you do get a hit, you're

444
00:22:10,640 --> 00:22:11,399
Speaker 3: going to be able to staff.

445
00:22:11,440 --> 00:22:14,560
Speaker 4: You don't want you don't want to get into contract

446
00:22:15,000 --> 00:22:16,040
Speaker 4: to provide staff.

447
00:22:15,760 --> 00:22:17,680
Speaker 3: And you got the staff right.

448
00:22:17,720 --> 00:22:21,320
Speaker 4: So I think if you're a healthcare professional, it might

449
00:22:21,400 --> 00:22:23,840
Speaker 4: make the most sense of staff yourself be one of

450
00:22:23,840 --> 00:22:26,280
Speaker 4: the people that gets dispatched, so at least you know

451
00:22:26,320 --> 00:22:28,800
Speaker 4: that you could fill in certain gaps if you get

452
00:22:28,800 --> 00:22:31,560
Speaker 4: that immediate call that you can work that shift yourself.

453
00:22:31,680 --> 00:22:33,600
Speaker 5: How many people? How many people are you putting on

454
00:22:33,600 --> 00:22:35,320
Speaker 5: the team to start? We're doing like two or three

455
00:22:35,359 --> 00:22:37,200
Speaker 5: including yourself, So you've got a four person.

456
00:22:36,960 --> 00:22:41,960
Speaker 4: Team in if you're starting a staff infirm, Yeah, I

457
00:22:42,000 --> 00:22:44,840
Speaker 4: would at least three in each position that that you're marketing.

458
00:22:45,160 --> 00:22:47,880
Speaker 4: So at least you have, you know, some depth to your.

459
00:22:47,720 --> 00:22:48,359
Speaker 3: To your staff.

460
00:22:49,080 --> 00:22:51,720
Speaker 6: So we have r N LPN and then health Day

461
00:22:51,760 --> 00:22:53,040
Speaker 6: so that would be nine people.

462
00:22:53,800 --> 00:22:54,560
Speaker 3: Yeah, gotcha.

463
00:22:55,040 --> 00:22:58,639
Speaker 2: So how do you because like there's a shortage of

464
00:22:59,080 --> 00:23:03,560
Speaker 2: nurses right now New York and there's like they're like

465
00:23:03,600 --> 00:23:05,840
Speaker 2: begging nurses to come from all over the country. Right,

466
00:23:05,880 --> 00:23:07,480
Speaker 2: So this is like a perfect if somebody had a

467
00:23:07,480 --> 00:23:11,159
Speaker 2: staffing agency for nurses right now, it'd be perfect, But like,

468
00:23:11,160 --> 00:23:14,880
Speaker 2: how do you find the candidates?

469
00:23:14,920 --> 00:23:18,960
Speaker 4: Like, I'm track talent, Okay, So first you've got to

470
00:23:19,000 --> 00:23:21,680
Speaker 4: just public. You're going to post on whatever you can indeed,

471
00:23:22,200 --> 00:23:28,679
Speaker 4: LinkedIn Facebook, jobs wherever, threads list, just post that you're hiring.

472
00:23:29,080 --> 00:23:30,920
Speaker 4: And the thing is, people are nurses.

473
00:23:31,280 --> 00:23:34,560
Speaker 3: I know. Most nurses I know are working two jobs. Right.

474
00:23:35,080 --> 00:23:38,080
Speaker 4: They're usually the top earner in their households, especially in

475
00:23:38,119 --> 00:23:38,840
Speaker 4: our community.

476
00:23:39,080 --> 00:23:41,080
Speaker 3: They're working two jobs, sometimes three jobs.

477
00:23:41,119 --> 00:23:44,119
Speaker 4: So they're always looking for jobs, right, because one, their

478
00:23:44,200 --> 00:23:47,199
Speaker 4: jobs exist and they're always looking. But if you dangle

479
00:23:47,480 --> 00:23:51,399
Speaker 4: a carrot, like higher rates than what they're normally getting paid,

480
00:23:52,640 --> 00:23:54,800
Speaker 4: then that also attracts them. So let's just say the

481
00:23:54,920 --> 00:24:00,159
Speaker 4: average thirty but you're paying thirty three. Then nurses who

482
00:24:00,160 --> 00:24:03,760
Speaker 4: are working for some other agency or they'll give up

483
00:24:03,800 --> 00:24:05,639
Speaker 4: their part time job and work with you for a

484
00:24:05,680 --> 00:24:08,119
Speaker 4: little more money. So you make it a smaller spread,

485
00:24:08,560 --> 00:24:10,320
Speaker 4: but you're attracting the talent that way.

486
00:24:10,480 --> 00:24:13,760
Speaker 5: But what what is what makes a candidate qualify? What

487
00:24:14,080 --> 00:24:17,040
Speaker 5: are the things they need? I'm assuming experience or maybe

488
00:24:17,040 --> 00:24:18,840
Speaker 5: not in this type of crisis.

489
00:24:18,560 --> 00:24:19,320
Speaker 3: Even experience.

490
00:24:19,480 --> 00:24:19,560
Speaker 6: Uh.

491
00:24:20,119 --> 00:24:24,080
Speaker 4: Licensed, they need to have most most people in healthcare

492
00:24:24,200 --> 00:24:28,000
Speaker 4: need to be licensed, right, So our answer license LPNs

493
00:24:28,000 --> 00:24:30,960
Speaker 4: are licensed. Nurse aids have a certificate. Home health aids

494
00:24:31,000 --> 00:24:33,400
Speaker 4: have a certificate, so they obviously need to be meet

495
00:24:33,520 --> 00:24:36,480
Speaker 4: whatever the guidelines are for the state. They also need

496
00:24:36,520 --> 00:24:39,919
Speaker 4: to have an up to date physical which shows that

497
00:24:39,960 --> 00:24:46,120
Speaker 4: they're immune to beesels, monks, Rubella rubiola, chickenpox for oursella,

498
00:24:46,240 --> 00:24:49,239
Speaker 4: that they also are TV negative so they can't have

499
00:24:49,320 --> 00:24:54,160
Speaker 4: active tuberculosis, and that they're what's called you know, safe

500
00:24:54,240 --> 00:24:57,800
Speaker 4: and fit to work okay, so that physical needs it's

501
00:24:57,960 --> 00:25:01,680
Speaker 4: done annually. All healthcare workers working in direct contact with

502
00:25:01,760 --> 00:25:03,919
Speaker 4: patients have to have an annual physical, so their physical

503
00:25:03,960 --> 00:25:05,960
Speaker 4: needs to be up to date. But every nurse and

504
00:25:06,040 --> 00:25:09,760
Speaker 4: everybody in the field knows that. So either they're getting

505
00:25:09,920 --> 00:25:12,119
Speaker 4: the physicals done at the job and they could get

506
00:25:12,160 --> 00:25:14,560
Speaker 4: their physicals from their job, or they just get their

507
00:25:14,560 --> 00:25:17,600
Speaker 4: physical from their doctor. But once they have that, they

508
00:25:17,600 --> 00:25:20,720
Speaker 4: have the application, they filled out their W two forms

509
00:25:21,640 --> 00:25:23,919
Speaker 4: or the ten ninety nine forms if they're or W

510
00:25:24,040 --> 00:25:27,000
Speaker 4: nine's if they're going to be ten ninety nine, and

511
00:25:27,040 --> 00:25:30,000
Speaker 4: they have their medical clearance and you have a copy

512
00:25:30,000 --> 00:25:34,040
Speaker 4: of their license, that's what you would consider a profile.

513
00:25:33,800 --> 00:25:35,919
Speaker 3: For that for that nurse.

514
00:25:36,280 --> 00:25:39,120
Speaker 4: Of course, their resume helps, but most of the time

515
00:25:39,160 --> 00:25:41,440
Speaker 4: they're not even asking for the resumes.

516
00:25:41,320 --> 00:25:42,439
Speaker 3: Because they're so behind.

517
00:25:42,480 --> 00:25:43,919
Speaker 4: It's just like, does this person have at least one

518
00:25:44,000 --> 00:25:47,639
Speaker 4: year's experience typically is what they're looking for, so you

519
00:25:47,640 --> 00:25:49,160
Speaker 4: would also look for that.

520
00:25:49,200 --> 00:25:53,640
Speaker 3: But sometimes you might have a new nurse who has maybe.

521
00:25:53,560 --> 00:25:57,600
Speaker 4: Eight years experience as a nurse aid that understands how

522
00:25:57,720 --> 00:26:01,080
Speaker 4: things move in a nursing facility that they'll be willing

523
00:26:01,119 --> 00:26:02,320
Speaker 4: to take as well.

524
00:26:02,720 --> 00:26:04,840
Speaker 3: Sometimes they orient them at the facility.

525
00:26:05,240 --> 00:26:07,199
Speaker 4: It really it's really a case by case, but at

526
00:26:07,280 --> 00:26:12,919
Speaker 4: minimum physical license or certificate and.

527
00:26:13,960 --> 00:26:17,040
Speaker 3: Identification and you know eligibility work in the United.

528
00:26:16,760 --> 00:26:20,280
Speaker 5: States, are there terms after you you find a candidate

529
00:26:20,359 --> 00:26:22,800
Speaker 5: that they have to stay with the company for six

530
00:26:22,840 --> 00:26:25,119
Speaker 5: to twelve months or does that exist in this in

531
00:26:25,119 --> 00:26:26,920
Speaker 5: the staffing aguencry you if.

532
00:26:26,840 --> 00:26:29,920
Speaker 4: You have that agreement with the worker, and usually within

533
00:26:29,960 --> 00:26:34,000
Speaker 4: the contract you have like a provision that they can

534
00:26:34,119 --> 00:26:38,000
Speaker 4: hire that person after one year if they pay you x.

535
00:26:38,000 --> 00:26:41,320
Speaker 3: Percentage of that person's salary. If not, they can't hire

536
00:26:41,320 --> 00:26:41,840
Speaker 3: that person.

537
00:26:42,240 --> 00:26:44,560
Speaker 4: So it's also a way for them to kind of

538
00:26:44,840 --> 00:26:47,280
Speaker 4: vet and recruit talent to a certain extent.

539
00:26:47,720 --> 00:26:50,359
Speaker 5: So that in that sense, right, let's say that they

540
00:26:50,400 --> 00:26:52,159
Speaker 5: made one hundred thousand, if they want to hire them

541
00:26:52,200 --> 00:26:54,040
Speaker 5: after the year, you take a percentage of that, so

542
00:26:54,080 --> 00:26:57,879
Speaker 5: you like, maybe I get five percent, so that's fifteen

543
00:26:58,040 --> 00:27:01,399
Speaker 5: fifteen thousand if we make it one hundred earners.

544
00:27:01,440 --> 00:27:01,800
Speaker 3: What's up?

545
00:27:01,880 --> 00:27:04,920
Speaker 5: You ever walk into a small business and everything just works,

546
00:27:05,280 --> 00:27:08,600
Speaker 5: like the checkout is fast, the receipts are digital, tipping

547
00:27:08,840 --> 00:27:11,280
Speaker 5: is a breeze, and you're out the door before the

548
00:27:11,320 --> 00:27:15,720
Speaker 5: line even builds odds are they're using Square. We love

549
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Speaker 5: supporting businesses that run on Square because it just feels seamless.

550
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551
00:27:21,640 --> 00:27:24,480
Speaker 5: pop up market, or even one of our merch partners,

552
00:27:24,720 --> 00:27:28,520
Speaker 5: Square makes it easy for them to take payments, manage inventory,

553
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Speaker 5: and run their business with confidence, all from one simple system.

554
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Speaker 5: If you're a business owner or even just thinking about

555
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Speaker 5: launching something soon, Square is hands down one of the

556
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557
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558
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559
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560
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561
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562
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563
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Speaker 5: pushing your vision forward. This episode is brought to you

564
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Speaker 5: by P and C Bank. A lot of people think

565
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566
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569
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575
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590
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591
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Speaker 6: Yep, okay, gotcha, Okay.

592
00:29:52,360 --> 00:29:55,200
Speaker 2: So to staffing, how lucrative is staffing?

593
00:29:55,280 --> 00:29:57,720
Speaker 3: We pivoted to home care.

594
00:29:58,120 --> 00:30:01,920
Speaker 4: We're doing about a million year year in revenue and

595
00:30:02,040 --> 00:30:06,160
Speaker 4: like the net margin is about twenty percent, so you're

596
00:30:06,320 --> 00:30:08,320
Speaker 4: seeing two hundred grand profits.

597
00:30:08,480 --> 00:30:10,920
Speaker 3: It see enough to earn.

598
00:30:10,720 --> 00:30:12,920
Speaker 4: On It wasn't it wasn't what it's what it was

599
00:30:12,960 --> 00:30:15,960
Speaker 4: for for like how it is for home care. But

600
00:30:16,120 --> 00:30:19,800
Speaker 4: we never got to the point like as far as

601
00:30:19,920 --> 00:30:22,360
Speaker 4: size that we did with the home care agency.

602
00:30:22,840 --> 00:30:26,640
Speaker 2: So pivoting to pivoting towards home care, So home care

603
00:30:26,640 --> 00:30:29,800
Speaker 2: is more is way more lucrative in your opinion, No.

604
00:30:29,720 --> 00:30:32,480
Speaker 3: They're they're I think I think they're equally lucrative.

605
00:30:33,120 --> 00:30:37,800
Speaker 4: It's just that the the funnel is different and there's

606
00:30:38,040 --> 00:30:42,960
Speaker 4: a larger barrier to entry. So you know there's with that,

607
00:30:43,120 --> 00:30:47,040
Speaker 4: of course, there's money, right, there's fewer view there's fewer providers,

608
00:30:47,560 --> 00:30:49,920
Speaker 4: and there's still a need. So we were able to

609
00:30:49,960 --> 00:30:53,800
Speaker 4: scale that aggressively because you know, a home health aid

610
00:30:54,000 --> 00:30:56,560
Speaker 4: only needs to train for eighty hours right to get

611
00:30:56,600 --> 00:31:00,360
Speaker 4: a certificate, and that means that there's there's a lot

612
00:31:00,360 --> 00:31:03,520
Speaker 4: of them out there, so we're able to scale up

613
00:31:03,800 --> 00:31:06,760
Speaker 4: the number of people that we have faster than a

614
00:31:06,760 --> 00:31:09,160
Speaker 4: bunch of a bunch of nurses. To get three hundred,

615
00:31:09,200 --> 00:31:12,640
Speaker 4: four hundred nurses, it's a lot harder to do than

616
00:31:12,720 --> 00:31:16,120
Speaker 4: to get three hundred or four hundred home healthy.

617
00:31:16,520 --> 00:31:18,440
Speaker 2: So to be a home health aid, to be a

618
00:31:18,440 --> 00:31:23,240
Speaker 2: home health aid, what do you have to do to become.

619
00:31:22,320 --> 00:31:26,320
Speaker 4: It's an eighty hour course, so it's you know, body mechanics,

620
00:31:26,440 --> 00:31:30,000
Speaker 4: how do you care for a patient? You know, making

621
00:31:30,000 --> 00:31:31,760
Speaker 4: sure that the water isn't too hot so you're not

622
00:31:31,840 --> 00:31:35,120
Speaker 4: burning a patient when you're giving them bath safe technique

623
00:31:35,160 --> 00:31:36,320
Speaker 4: at home safe technique.

624
00:31:36,560 --> 00:31:39,520
Speaker 3: Anybody can do that as long as they link up

625
00:31:39,520 --> 00:31:41,000
Speaker 3: to work in the United States yep.

626
00:31:41,480 --> 00:31:43,840
Speaker 2: So that's actually when we're talking about the business side.

627
00:31:43,840 --> 00:31:47,000
Speaker 2: But that's actually a job opportunity I guess as well

628
00:31:47,040 --> 00:31:50,360
Speaker 2: for people that might need work right yep.

629
00:31:51,040 --> 00:31:55,440
Speaker 4: And in New York they're making anywhere between fifteen and

630
00:31:55,760 --> 00:31:56,680
Speaker 4: twenty dollars an hour.

631
00:31:58,600 --> 00:32:03,320
Speaker 6: And the qualifications are like training program, that's it.

632
00:32:04,080 --> 00:32:08,880
Speaker 4: To training program and then also physically background check, background check.

633
00:32:08,920 --> 00:32:12,239
Speaker 2: Yeah, so all right, so you guys scaled that up

634
00:32:12,240 --> 00:32:14,800
Speaker 2: pretty pretty aggressively, and then you were saying that you

635
00:32:14,920 --> 00:32:17,640
Speaker 2: got to offer to sell the company.

636
00:32:17,720 --> 00:32:21,480
Speaker 4: So right now we're doing like for twenty nineteen, you

637
00:32:21,520 --> 00:32:25,240
Speaker 4: did about just under twelve million dollars in annual rev

638
00:32:26,040 --> 00:32:30,360
Speaker 4: and I got a mailer right from somebody who was like.

639
00:32:30,320 --> 00:32:31,240
Speaker 3: Are you looking to sell?

640
00:32:31,760 --> 00:32:33,840
Speaker 4: So I was like, let me, let me, let me

641
00:32:33,960 --> 00:32:35,960
Speaker 4: entertain this and see what numbers are throwing around.

642
00:32:36,080 --> 00:32:36,280
Speaker 3: Right.

643
00:32:36,840 --> 00:32:42,360
Speaker 4: So it was actually an agent who who a burgers

644
00:32:42,360 --> 00:32:46,240
Speaker 4: and acquisitions agent who broke his businesses. So he sat

645
00:32:46,240 --> 00:32:48,640
Speaker 4: with me and he was like, we could get you

646
00:32:48,680 --> 00:32:51,840
Speaker 4: fifty percent of your annual revenue and I was like,

647
00:32:51,920 --> 00:32:56,000
Speaker 4: all right, so talking about you know, between five and

648
00:32:56,040 --> 00:32:57,960
Speaker 4: six million dollars sale based on where we were at

649
00:32:57,960 --> 00:32:59,480
Speaker 4: that year, I was like, all right, cool.

650
00:33:00,080 --> 00:33:04,560
Speaker 3: So they brought in I'm not sure if I got to.

651
00:33:04,640 --> 00:33:06,600
Speaker 4: See the terms and conditions of the contract, so I'm

652
00:33:06,600 --> 00:33:07,959
Speaker 4: not going to say their name, but they brought in

653
00:33:08,120 --> 00:33:14,760
Speaker 4: a publicly traded home care agency that was acquiring agencies

654
00:33:14,800 --> 00:33:17,680
Speaker 4: like mine, right, and they reviewed our case mix and.

655
00:33:17,600 --> 00:33:20,320
Speaker 3: How much money were we making, and they made an offer.

656
00:33:20,080 --> 00:33:25,520
Speaker 4: That was consistent with that so it's like, okay, I

657
00:33:25,680 --> 00:33:29,720
Speaker 4: was my trader background. I started looking up the financials

658
00:33:29,720 --> 00:33:32,120
Speaker 4: of that company and looking at how they were organized,

659
00:33:32,200 --> 00:33:34,680
Speaker 4: and I saw that they were trading at.

660
00:33:36,280 --> 00:33:38,479
Speaker 3: At sixty times.

661
00:33:38,160 --> 00:33:42,920
Speaker 4: Earnings, right, they had a sixty pe And I then

662
00:33:43,000 --> 00:33:45,640
Speaker 4: looked at how many cases they have, and they have

663
00:33:45,840 --> 00:33:47,360
Speaker 4: like thirty thousand lives.

664
00:33:47,080 --> 00:33:49,240
Speaker 3: In the management in the country. And I was like,

665
00:33:49,280 --> 00:33:51,240
Speaker 3: all right, well, we have.

666
00:33:51,400 --> 00:33:55,720
Speaker 4: Three hundred patients, so we would just need to get

667
00:33:56,080 --> 00:33:59,560
Speaker 4: you know, one hundred times larger, right, And what would

668
00:33:59,600 --> 00:33:59,920
Speaker 4: that take?

669
00:34:00,120 --> 00:34:00,920
Speaker 3: How can we do that?

670
00:34:01,520 --> 00:34:04,080
Speaker 4: And I was like, well, they're trying to buy us

671
00:34:04,400 --> 00:34:08,640
Speaker 4: at like five times earnings, but they're trading at sixty.

672
00:34:09,160 --> 00:34:11,439
Speaker 4: This is a this is a dope brainer. They brought

673
00:34:11,440 --> 00:34:14,040
Speaker 4: in another company as well, not not not not the

674
00:34:14,040 --> 00:34:18,240
Speaker 4: public trade company, another another suitor, and they're like yeah.

675
00:34:18,400 --> 00:34:20,200
Speaker 4: I was like, what is your strategy here, which's the

676
00:34:20,280 --> 00:34:21,040
Speaker 4: what's the game plan?

677
00:34:21,400 --> 00:34:22,680
Speaker 3: The guy was like, we've.

678
00:34:22,480 --> 00:34:26,480
Speaker 4: Already taken another Uh, we've already taken another company public.

679
00:34:27,000 --> 00:34:31,399
Speaker 4: All we do is aggregate companies and go public. That's

680
00:34:31,480 --> 00:34:33,840
Speaker 4: that's our model, right. It's like we've done it in

681
00:34:33,880 --> 00:34:38,359
Speaker 4: fashion and now we're doing it in healthcare. So they

682
00:34:38,360 --> 00:34:40,320
Speaker 4: were trying to offer me four times earnings, and I

683
00:34:40,880 --> 00:34:44,600
Speaker 4: know that the publicly traded company is trading at sixty.

684
00:34:45,160 --> 00:34:49,560
Speaker 4: So it's just a matter of getting financing and going

685
00:34:49,560 --> 00:34:52,839
Speaker 4: out there and gobbling up smaller and mid sized agencies

686
00:34:53,440 --> 00:34:57,160
Speaker 4: so that you get the numbers to go public and

687
00:34:57,200 --> 00:35:00,560
Speaker 4: then you're gonna you're gonna make twelve x return on

688
00:35:00,640 --> 00:35:03,080
Speaker 4: what you just bought, because all you're doing is buying

689
00:35:03,120 --> 00:35:07,880
Speaker 4: functional agencies, putting them under one umbrella, stripping back duplicated jobs,

690
00:35:07,920 --> 00:35:10,640
Speaker 4: like you don't need a bunch of CFOs, you have

691
00:35:10,680 --> 00:35:15,320
Speaker 4: one CFO in your company, right, so they just aggregate

692
00:35:15,400 --> 00:35:18,799
Speaker 4: and go public. And I was like, you know what,

693
00:35:19,719 --> 00:35:23,000
Speaker 4: maybe we shouldn't sell, right, Maybe this is not the

694
00:35:23,040 --> 00:35:23,759
Speaker 4: direction to go in.

695
00:35:23,840 --> 00:35:26,680
Speaker 3: Maybe the direction to go in is emulate.

696
00:35:26,400 --> 00:35:30,719
Speaker 4: That model and start thinking about, you know, expanding the

697
00:35:30,760 --> 00:35:35,360
Speaker 4: business into different markets and expanding the business in a

698
00:35:35,440 --> 00:35:39,000
Speaker 4: way that you know, we're on a trajectory to go public.

699
00:35:39,040 --> 00:35:40,640
Speaker 4: And that's what I'm doing now with eight book.

700
00:35:40,680 --> 00:35:43,640
Speaker 6: So you turned down six million and to scale your

701
00:35:43,680 --> 00:35:44,280
Speaker 6: own business.

702
00:35:45,400 --> 00:35:50,040
Speaker 2: Yeah so so so all right, so eight book? What

703
00:35:49,880 --> 00:35:51,839
Speaker 2: is what does that include? As far as you're new

704
00:35:52,239 --> 00:35:54,120
Speaker 2: So you said that once you got that idea.

705
00:35:54,440 --> 00:35:59,839
Speaker 4: Yeah, our mission at a book is really to just

706
00:36:00,000 --> 00:36:06,239
Speaker 4: streamline the discharge planning process because hospitals. Hospitals are under

707
00:36:06,320 --> 00:36:11,160
Speaker 4: pressure to discharge patients quickly and make sure those patients

708
00:36:11,200 --> 00:36:15,680
Speaker 4: are readmitted. But what happens when somebody has pneumonia, goes home,

709
00:36:15,880 --> 00:36:18,920
Speaker 4: doesn't pick up their medication, they don't know how to

710
00:36:18,960 --> 00:36:22,480
Speaker 4: take their medication, they're not following a good diet, They regress,

711
00:36:22,719 --> 00:36:26,920
Speaker 4: they relapse, styand up back in nursing facility. When that happens,

712
00:36:27,480 --> 00:36:32,960
Speaker 4: the hospital gets penalized. So our mission is to streamline

713
00:36:32,960 --> 00:36:36,760
Speaker 4: that process so that hospitals are discharging using our software

714
00:36:36,760 --> 00:36:42,319
Speaker 4: solutions right discharging to home care so that immediately we're

715
00:36:42,320 --> 00:36:45,480
Speaker 4: picking up that patient, servicing them, making sure that someone

716
00:36:45,560 --> 00:36:47,480
Speaker 4: is there to pick up the medication, take care of them,

717
00:36:47,480 --> 00:36:49,879
Speaker 4: making sure they're not falling at home, making sure they're

718
00:36:49,880 --> 00:36:53,080
Speaker 4: not regressing so they don't trigger back into the hospital

719
00:36:53,080 --> 00:36:57,120
Speaker 4: and trigger that penalty, and by doing that, refunneling ourselves

720
00:36:57,719 --> 00:37:00,800
Speaker 4: with a lot of new referrals so the hospital solving

721
00:37:00,800 --> 00:37:01,760
Speaker 4: that hospital's problem.

722
00:37:01,800 --> 00:37:03,640
Speaker 5: The hospital gets penalized is like a fee or a

723
00:37:03,719 --> 00:37:05,440
Speaker 5: fine that the hospital gets.

724
00:37:05,480 --> 00:37:09,320
Speaker 4: That's not a fee or a fine they will subtract

725
00:37:09,440 --> 00:37:14,719
Speaker 4: up to three percent of their top line revenue.

726
00:37:13,840 --> 00:37:15,680
Speaker 3: For penalties on the following year.

727
00:37:15,760 --> 00:37:18,560
Speaker 4: So let's just say the hospital is making one hundred million, right,

728
00:37:18,920 --> 00:37:21,839
Speaker 4: the hospital margin eight percent, right, so they only make

729
00:37:21,880 --> 00:37:23,280
Speaker 4: an eight million dollars profit.

730
00:37:24,560 --> 00:37:27,920
Speaker 3: Medicare will penalize them three percent on.

731
00:37:28,040 --> 00:37:32,200
Speaker 4: Revenue and reimbursement, right, but their operation costs are still

732
00:37:32,239 --> 00:37:37,200
Speaker 4: going to cost them that ninety two million. So from

733
00:37:37,239 --> 00:37:41,200
Speaker 4: going from one hundred million to ninety seven and having

734
00:37:41,480 --> 00:37:45,080
Speaker 4: an underlying ninety two million dollar, you know, cost to

735
00:37:45,120 --> 00:37:49,720
Speaker 4: provide services, they're only making five million. That's that's almost

736
00:37:49,760 --> 00:37:54,520
Speaker 4: forty percent loss in their bottom line if they get penalized.

737
00:37:55,520 --> 00:37:57,680
Speaker 5: How many patients would it would it take for like

738
00:37:57,680 --> 00:38:00,319
Speaker 5: a hospital get penalized for something like that kicking.

739
00:38:01,239 --> 00:38:04,239
Speaker 4: It's it's like ratios, So it depends on how many

740
00:38:04,280 --> 00:38:08,239
Speaker 4: bets they have, how many what disease processes, because they're

741
00:38:08,239 --> 00:38:14,640
Speaker 4: targeting six disease processes, pneumonia, heart failure, cabbage which is

742
00:38:15,200 --> 00:38:19,719
Speaker 4: bypass surgery, complete joint replacement surgeries. So those are the

743
00:38:19,760 --> 00:38:23,440
Speaker 4: ones that are like the high risk because they're expensive

744
00:38:23,560 --> 00:38:27,320
Speaker 4: to take care of, and it's you know the mentality

745
00:38:27,360 --> 00:38:30,360
Speaker 4: of the government is we're paying you to fix them,

746
00:38:30,920 --> 00:38:34,080
Speaker 4: fix them, you get what I'm saying, Like, fix them,

747
00:38:34,200 --> 00:38:36,200
Speaker 4: make sure that they're healthy. But at the same time,

748
00:38:36,239 --> 00:38:38,960
Speaker 4: we're only paying you for four days for this hospital

749
00:38:38,960 --> 00:38:41,480
Speaker 4: state because that's the national average. So what is the

750
00:38:41,600 --> 00:38:43,879
Speaker 4: what is the hospital doing They need to get them

751
00:38:43,920 --> 00:38:45,719
Speaker 4: out or is they losing money and they need to

752
00:38:45,800 --> 00:38:48,480
Speaker 4: ensure that they don't come back. So our company is

753
00:38:48,520 --> 00:38:52,839
Speaker 4: focusing on that transitional care and converting into long term

754
00:38:52,880 --> 00:38:53,200
Speaker 4: care for.

755
00:38:53,160 --> 00:38:56,239
Speaker 6: Those who Yeah, you're helping making sure they don't come back,

756
00:38:56,760 --> 00:38:57,320
Speaker 6: we help.

757
00:38:57,120 --> 00:38:59,600
Speaker 3: Them to make sure they don't come back and saving

758
00:38:59,600 --> 00:39:00,000
Speaker 3: their reps.

759
00:39:00,680 --> 00:39:01,040
Speaker 6: Gotcha?

760
00:39:01,840 --> 00:39:05,480
Speaker 2: And so what's the business modecle? You said, like eventually

761
00:39:05,480 --> 00:39:08,400
Speaker 2: you want to take this public? Right, So how is

762
00:39:08,440 --> 00:39:10,440
Speaker 2: this different from Avalanche?

763
00:39:10,480 --> 00:39:12,040
Speaker 3: And like what do you see?

764
00:39:12,239 --> 00:39:14,960
Speaker 2: How did you replicate what you saw the larger company

765
00:39:15,000 --> 00:39:18,040
Speaker 2: do to you and how are you going to implement that?

766
00:39:18,080 --> 00:39:20,920
Speaker 2: And like really scaling aid Book is it to acquire

767
00:39:20,960 --> 00:39:23,920
Speaker 2: other small sized companies and bring them under the umbrella

768
00:39:23,960 --> 00:39:25,760
Speaker 2: of aid Brook or Okay?

769
00:39:25,880 --> 00:39:29,920
Speaker 4: So for me, what I because I've been trying to

770
00:39:29,960 --> 00:39:33,640
Speaker 4: push my partners in the home care company an Avalanche,

771
00:39:34,400 --> 00:39:38,160
Speaker 4: to think about things on a larger level. Always That's

772
00:39:38,160 --> 00:39:40,680
Speaker 4: always been the case, right. I always wanted to push

773
00:39:40,680 --> 00:39:45,200
Speaker 4: the business further. And what I realized is that they

774
00:39:45,280 --> 00:39:49,040
Speaker 4: were going into business for the freedom that you know,

775
00:39:49,160 --> 00:39:52,280
Speaker 4: owning your own business allows, right, you can take vacation

776
00:39:52,400 --> 00:39:55,640
Speaker 4: when you want, do what you want. And they were

777
00:39:55,800 --> 00:39:59,040
Speaker 4: comfortable with what we're making there, right, So they weren't

778
00:39:59,080 --> 00:40:01,799
Speaker 4: looking to push. They do want growth, they do want

779
00:40:01,840 --> 00:40:04,640
Speaker 4: to make more money, but they're not willing to adjust

780
00:40:04,640 --> 00:40:10,400
Speaker 4: their habits and mindset to run multiple locations to expand

781
00:40:10,400 --> 00:40:13,520
Speaker 4: into different states. They're not They're not there. So the

782
00:40:13,560 --> 00:40:15,880
Speaker 4: first thing that I'm doing with aid Book is assembling

783
00:40:15,880 --> 00:40:21,720
Speaker 4: a team that has industry knowledge and working in public companies.

784
00:40:21,880 --> 00:40:25,480
Speaker 4: So what I'm doing at aid Book is focusing on

785
00:40:25,680 --> 00:40:30,360
Speaker 4: talent that has worked in publicly traded companies and just

786
00:40:30,440 --> 00:40:33,680
Speaker 4: building our infrastructure with that mindset. So not only are

787
00:40:33,680 --> 00:40:36,400
Speaker 4: we going to be using technology as and solving that

788
00:40:36,480 --> 00:40:39,040
Speaker 4: problem for the hospital to be a driver of growth

789
00:40:39,040 --> 00:40:42,560
Speaker 4: in our business, but we will entertain, you know, acquisitions

790
00:40:42,600 --> 00:40:45,640
Speaker 4: as well, because as we get close it makes more

791
00:40:45,719 --> 00:40:49,359
Speaker 4: sense to so let me let me put it this way.

792
00:40:50,920 --> 00:40:53,920
Speaker 4: I believe that our software and aligning ourselves with the

793
00:40:53,960 --> 00:40:56,960
Speaker 4: hospitals will allow us to grow by you know, one

794
00:40:57,040 --> 00:40:58,080
Speaker 4: hundred patients per month.

795
00:40:58,640 --> 00:40:58,839
Speaker 3: Right.

796
00:41:00,200 --> 00:41:03,120
Speaker 4: If I'm growing by my one hundred patients per month

797
00:41:03,440 --> 00:41:06,440
Speaker 4: in one city, then I need to set up in

798
00:41:06,480 --> 00:41:09,320
Speaker 4: another city and grow an agency by one hundred patients

799
00:41:09,320 --> 00:41:11,960
Speaker 4: a month by employing the same software, the same marketing

800
00:41:12,000 --> 00:41:12,680
Speaker 4: team to do that.

801
00:41:12,920 --> 00:41:13,120
Speaker 3: Right.

802
00:41:13,560 --> 00:41:16,640
Speaker 4: So, if I'm going into a new state, rather than

803
00:41:16,680 --> 00:41:21,360
Speaker 4: go through this lengthy, you know, licensing process, which for

804
00:41:21,480 --> 00:41:24,399
Speaker 4: Florida is going to take me four months to have

805
00:41:24,640 --> 00:41:27,640
Speaker 4: the license and then another six months to get Medicare approval,

806
00:41:28,680 --> 00:41:30,239
Speaker 4: what I could do when I'm going into a new

807
00:41:30,280 --> 00:41:33,200
Speaker 4: state and better capitalized.

808
00:41:33,600 --> 00:41:35,200
Speaker 3: I could just start buying.

809
00:41:35,120 --> 00:41:39,000
Speaker 4: Smaller mid sized companies at five times earnings and just

810
00:41:39,080 --> 00:41:42,200
Speaker 4: point our marketing engine to them and scale them up

811
00:41:42,239 --> 00:41:46,440
Speaker 4: to two thousand, three thousand patients per per an agency

812
00:41:46,480 --> 00:41:50,160
Speaker 4: per state. Once I get to like twelve fifteen thousand

813
00:41:50,360 --> 00:41:53,359
Speaker 4: lives in the management, I have something that I can

814
00:41:53,360 --> 00:41:56,160
Speaker 4: take to the public market, or once again, step to

815
00:41:56,280 --> 00:42:01,239
Speaker 4: a larger conglomerate and say, look, we're growing at a

816
00:42:01,320 --> 00:42:02,520
Speaker 4: thousand patients per month.

817
00:42:03,480 --> 00:42:05,560
Speaker 3: We don't see an end in our funnel.

818
00:42:07,560 --> 00:42:12,000
Speaker 4: You're growing by acquiring companies right at five times earnings.

819
00:42:12,920 --> 00:42:16,840
Speaker 4: If you just buy our system that's already functional and

820
00:42:17,760 --> 00:42:22,040
Speaker 4: fully aligned with the hospitals, then you're going to grow

821
00:42:22,120 --> 00:42:28,840
Speaker 4: at this rate in perpetuity, right, So why wouldn't you

822
00:42:29,280 --> 00:42:31,359
Speaker 4: want to buy this? And at the same time, I'll

823
00:42:31,360 --> 00:42:33,520
Speaker 4: still be on the track to take the company public.

824
00:42:33,680 --> 00:42:36,720
Speaker 4: So for me, the most important thing is an initial

825
00:42:36,760 --> 00:42:41,319
Speaker 4: team that has that experience. So I've already coached some

826
00:42:41,400 --> 00:42:46,720
Speaker 4: talent from Toperware, and now I coached one person from

827
00:42:47,160 --> 00:42:50,400
Speaker 4: h Emory the hospital system in Atlanta, And these are

828
00:42:50,400 --> 00:42:53,280
Speaker 4: people who are interested in being involved in a startup

829
00:42:53,640 --> 00:42:58,080
Speaker 4: with this with this trajectory in mind that within five

830
00:42:58,120 --> 00:43:00,719
Speaker 4: to seven years we're going to exit and to exit big,

831
00:43:01,280 --> 00:43:04,360
Speaker 4: and we need to function this way and just replicating

832
00:43:04,400 --> 00:43:08,960
Speaker 4: systems with that that you would come to find in

833
00:43:09,000 --> 00:43:13,359
Speaker 4: a public traded company. So you'll see that most publicly

834
00:43:13,440 --> 00:43:16,680
Speaker 4: traded companies are you know, will have one of the

835
00:43:16,719 --> 00:43:19,640
Speaker 4: major accounting firms doing doing their accounting or at least

836
00:43:19,640 --> 00:43:23,399
Speaker 4: doing their audits, like PwC for instance. So from from

837
00:43:23,560 --> 00:43:28,239
Speaker 4: day one, our accounting structure has to be on point, right,

838
00:43:28,320 --> 00:43:30,359
Speaker 4: because that happens if you if you notice, like when

839
00:43:30,360 --> 00:43:32,920
Speaker 4: you're looking at like startups that are trying to go public,

840
00:43:33,600 --> 00:43:36,360
Speaker 4: they some of them get jammed up because of accounting,

841
00:43:36,800 --> 00:43:40,000
Speaker 4: you know issues is because they didn't have their structure

842
00:43:40,080 --> 00:43:41,719
Speaker 4: right and now they got to get they got to

843
00:43:41,920 --> 00:43:45,239
Speaker 4: spend two or three years getting their financial straight to

844
00:43:45,280 --> 00:43:48,319
Speaker 4: then take the company public. So by building from from

845
00:43:48,320 --> 00:43:51,960
Speaker 4: the very beginning with the mindset of this is this

846
00:43:52,040 --> 00:43:55,239
Speaker 4: is how accounting is done in pubularly traded companies. This

847
00:43:55,320 --> 00:43:59,760
Speaker 4: is how much money is allocated to marketing spend versus revenue.

848
00:44:00,120 --> 00:44:03,040
Speaker 4: Having all those details and people who are familiar with

849
00:44:03,080 --> 00:44:06,320
Speaker 4: those details being on your team from the beginning is

850
00:44:06,560 --> 00:44:08,680
Speaker 4: what you need. And also you're going to need money

851
00:44:08,719 --> 00:44:10,880
Speaker 4: to support that. A lot of one of the mistakes

852
00:44:10,880 --> 00:44:13,759
Speaker 4: that we make, as you know as a community is

853
00:44:13,800 --> 00:44:17,760
Speaker 4: we'll start our business with too little money with our friends,

854
00:44:18,080 --> 00:44:21,120
Speaker 4: with our family, and they're not skilled to take it

855
00:44:21,160 --> 00:44:21,919
Speaker 4: to a certain point.

856
00:44:22,200 --> 00:44:24,200
Speaker 3: And then you don't even have the discussion of what

857
00:44:24,280 --> 00:44:25,000
Speaker 3: is the vision.

858
00:44:24,800 --> 00:44:27,600
Speaker 4: For the company, Where are we trying to go, what

859
00:44:27,640 --> 00:44:29,520
Speaker 4: are we trying to do, how are we trying to

860
00:44:29,560 --> 00:44:35,480
Speaker 4: get there? Are our visions aligned, are values aligned? And

861
00:44:35,800 --> 00:44:37,399
Speaker 4: those things you need to send you need to set

862
00:44:37,440 --> 00:44:40,440
Speaker 4: them from the beginning. If you don't. You're going to

863
00:44:40,480 --> 00:44:43,120
Speaker 4: be building a company on a shaky foundation, or you're

864
00:44:43,120 --> 00:44:45,799
Speaker 4: going to build a company that you know at a

865
00:44:45,840 --> 00:44:49,640
Speaker 4: certain point it can't grow anymore because your your foundation

866
00:44:49,760 --> 00:44:50,200
Speaker 4: is in set.

867
00:44:50,719 --> 00:44:54,760
Speaker 2: Yeah, that's big. Well, obviously I've heard vast sets under management.

868
00:44:54,760 --> 00:44:57,959
Speaker 2: I never heard of lives under management before, but makes

869
00:44:57,960 --> 00:45:01,480
Speaker 2: sense if you're in a medical field. So yeah, I

870
00:45:01,480 --> 00:45:03,200
Speaker 2: mean that. Like you said, I mean you just outline

871
00:45:03,239 --> 00:45:05,960
Speaker 2: your vision. And I think that that's important for entrepreneurs,

872
00:45:06,000 --> 00:45:09,600
Speaker 2: whether it's big, small, middle whatever. You have to have

873
00:45:09,640 --> 00:45:11,920
Speaker 2: a vision. And it's like you already kind of have

874
00:45:12,120 --> 00:45:14,839
Speaker 2: an idea in your mind. Nothing ever goes according to plan,

875
00:45:14,880 --> 00:45:16,759
Speaker 2: but at least you have a roadmap of where you

876
00:45:16,800 --> 00:45:19,160
Speaker 2: want your company to go. And that's more than half

877
00:45:19,160 --> 00:45:21,000
Speaker 2: the battle right there. I think a lot of entrepreneurs

878
00:45:21,000 --> 00:45:23,560
Speaker 2: are just winging it, winking up and just trying to

879
00:45:23,600 --> 00:45:26,160
Speaker 2: figure it out day to day, like they're literally living

880
00:45:26,239 --> 00:45:30,439
Speaker 2: day to day, and times like this it just really

881
00:45:30,480 --> 00:45:33,640
Speaker 2: exposes that. And now you're in a financial crisis because

882
00:45:33,640 --> 00:45:37,200
Speaker 2: you never really had a business plan. You just had

883
00:45:37,360 --> 00:45:40,520
Speaker 2: you know, figure it out mentality as you go, and

884
00:45:40,560 --> 00:45:41,839
Speaker 2: that can only take you so far.

885
00:45:42,640 --> 00:45:45,560
Speaker 3: Correct, It's it's a and the thing, I'm lucky.

886
00:45:45,880 --> 00:45:52,279
Speaker 4: Really, I'm lucky, like just like like like.

887
00:45:50,480 --> 00:45:57,560
Speaker 3: Like the VC dude that was just from Black Star Fire, Yeah, Kwame.

888
00:45:59,280 --> 00:46:01,000
Speaker 4: When I was watching, I was like, this is like

889
00:46:01,080 --> 00:46:04,640
Speaker 4: my story, right because his father's a physician.

890
00:46:05,600 --> 00:46:08,120
Speaker 3: He's helping out at the office, he's learning and he's

891
00:46:08,160 --> 00:46:08,759
Speaker 3: watching and like.

892
00:46:09,160 --> 00:46:12,520
Speaker 4: Having that that information coming into your mind from that

893
00:46:12,640 --> 00:46:14,960
Speaker 4: young you start to just like you say, I think

894
00:46:15,000 --> 00:46:17,520
Speaker 4: you say something. If you start looking at a yellow car,

895
00:46:17,560 --> 00:46:19,160
Speaker 4: you start to notice more yellow cars.

896
00:46:19,480 --> 00:46:22,400
Speaker 3: Right. So if I am ready I'm looking at okay,

897
00:46:22,680 --> 00:46:25,560
Speaker 3: my mom's staffing business, and I'm now I'm in the

898
00:46:25,560 --> 00:46:28,719
Speaker 3: staffing business myself. You start and I'm working in hospitals,

899
00:46:29,040 --> 00:46:32,600
Speaker 3: you start having your eyes open to where's the money moving,

900
00:46:32,640 --> 00:46:35,319
Speaker 3: how's it moving? So certain things that will go over

901
00:46:35,360 --> 00:46:37,920
Speaker 3: your head don't go over your head anymore immediately. Right.

902
00:46:38,640 --> 00:46:39,680
Speaker 3: So it's the same thing.

903
00:46:39,719 --> 00:46:42,799
Speaker 4: But what I see with a lot of people is

904
00:46:42,840 --> 00:46:46,440
Speaker 4: that they either they don't have much, you know, entrepreneurial experience.

905
00:46:46,840 --> 00:46:50,000
Speaker 4: They get it later in life and they start just

906
00:46:50,080 --> 00:46:52,759
Speaker 4: winging it. The best thing that you could do is

907
00:46:53,320 --> 00:46:57,520
Speaker 4: you know, here what one do like a business, a

908
00:46:57,560 --> 00:47:00,680
Speaker 4: business template or a business model, right just look just

909
00:47:00,719 --> 00:47:06,120
Speaker 4: google business model and youtubeer a business model video. It

910
00:47:06,280 --> 00:47:08,720
Speaker 4: walks you through how you should be thinking about your business.

911
00:47:08,840 --> 00:47:11,560
Speaker 4: The very first thing is what is your value proposition?

912
00:47:12,280 --> 00:47:13,080
Speaker 3: What are you offering?

913
00:47:13,080 --> 00:47:17,400
Speaker 4: What problem are you fixing or what need are you addressing?

914
00:47:18,160 --> 00:47:20,120
Speaker 4: What what is that in your company?

915
00:47:20,640 --> 00:47:24,600
Speaker 3: Right? So at eight book, what is our value proposition?

916
00:47:25,360 --> 00:47:30,520
Speaker 4: We're dealing with this problem that hospitals have of patients

917
00:47:30,800 --> 00:47:33,960
Speaker 4: being readmitted, and that's the problem that we're trying to solve.

918
00:47:34,160 --> 00:47:37,080
Speaker 4: And we're going to monetize that by solving that problem

919
00:47:37,120 --> 00:47:39,640
Speaker 4: and by being the service provider to those patients.

920
00:47:40,400 --> 00:47:42,359
Speaker 6: How many how many states are you operating in right now?

921
00:47:42,440 --> 00:47:44,959
Speaker 3: Right now? Well, New York and then what's eight book

922
00:47:45,040 --> 00:47:45,840
Speaker 3: is going to be Florida?

923
00:47:45,880 --> 00:47:46,280
Speaker 6: Florida.

924
00:47:46,440 --> 00:47:48,839
Speaker 5: And when I'm thinking Florida, and I'm thinking, like when

925
00:47:48,840 --> 00:47:52,240
Speaker 5: you said you want to grow your your clients by

926
00:47:52,360 --> 00:47:55,120
Speaker 5: one hundred per or thousand per year, you're in a

927
00:47:55,200 --> 00:48:00,000
Speaker 5: state with the largest population, well the oldest population.

928
00:47:59,600 --> 00:48:01,680
Speaker 6: In the kind of was that done intentionally?

929
00:48:03,120 --> 00:48:09,359
Speaker 4: Actually not really, because Florida, like in New York, we're

930
00:48:09,360 --> 00:48:13,120
Speaker 4: dealing mostly with Medicaid managed long term care right as

931
00:48:13,120 --> 00:48:17,080
Speaker 4: the payer Florida has a cap on how many waivers

932
00:48:17,080 --> 00:48:21,359
Speaker 4: they put out. Right, it's a red state mostly, so

933
00:48:21,920 --> 00:48:24,920
Speaker 4: they put out you know, they do less spending, so

934
00:48:24,960 --> 00:48:27,239
Speaker 4: a lot of the people here are self paid. But

935
00:48:27,440 --> 00:48:30,239
Speaker 4: I liked Florida because you know, I'm going to be

936
00:48:30,600 --> 00:48:34,240
Speaker 4: living part time in Colombia. So it's a good midpoint

937
00:48:34,320 --> 00:48:37,759
Speaker 4: between Columbia and New York. So, and it has the

938
00:48:37,760 --> 00:48:41,360
Speaker 4: international airports. The weather it's good, So that's why I chose.

939
00:48:41,760 --> 00:48:44,760
Speaker 4: I chose Florida. But I'm going to be expanding into

940
00:48:44,840 --> 00:48:48,719
Speaker 4: every state that has, you know, a thriving home care

941
00:48:49,120 --> 00:48:56,080
Speaker 4: community like come care infrastructure, so Florida, North Carolina, Texas, Atlanta,

942
00:48:56,239 --> 00:49:03,000
Speaker 4: or Georgia, Pennsylvania, California. So those are states that I

943
00:49:03,080 --> 00:49:06,840
Speaker 4: would be willing to enter because I know that the

944
00:49:07,480 --> 00:49:09,920
Speaker 4: home care infrastructure is good there.

945
00:49:09,960 --> 00:49:11,920
Speaker 2: You haven't, ladies and gentlemen. So on the last segment,

946
00:49:11,920 --> 00:49:14,240
Speaker 2: we're going to talk about your software system. That's actually

947
00:49:14,239 --> 00:49:15,880
Speaker 2: something you're a lot going on. We're going to a

948
00:49:16,120 --> 00:49:18,400
Speaker 2: time on time your software system, and then we're going

949
00:49:18,440 --> 00:49:20,560
Speaker 2: to bring home with everything yet you got going on now,

950
00:49:20,640 --> 00:49:23,080
Speaker 2: So yeah, all right, so we're going to talk about

951
00:49:23,120 --> 00:49:27,359
Speaker 2: your software system. But before one quick question about your company, So,

952
00:49:27,800 --> 00:49:30,600
Speaker 2: how do you raise money? Because I you know, it's

953
00:49:30,920 --> 00:49:34,240
Speaker 2: probably a lot as far as the expenses to run

954
00:49:34,719 --> 00:49:36,839
Speaker 2: these type of organizations. You say you have to pay

955
00:49:36,920 --> 00:49:38,560
Speaker 2: up front, then you get reimbursed on the back end.

956
00:49:38,600 --> 00:49:42,600
Speaker 2: So finance finances is always the biggest hurdle for any

957
00:49:42,640 --> 00:49:45,120
Speaker 2: business for the most part. So how do you how

958
00:49:45,160 --> 00:49:47,640
Speaker 2: do you raise money? How do you have money coming

959
00:49:47,680 --> 00:49:51,080
Speaker 2: in on a consistent basis to float your operations?

960
00:49:51,280 --> 00:49:52,319
Speaker 3: So in.

961
00:49:54,480 --> 00:49:58,600
Speaker 4: Looking at the staff and business, that started with five

962
00:49:58,640 --> 00:50:03,920
Speaker 4: thousand dollars five K and obviously that's under capitalized, right,

963
00:50:04,800 --> 00:50:08,200
Speaker 4: That's what ended up happening, is that all right, we're

964
00:50:08,280 --> 00:50:11,560
Speaker 4: limited to how much services we can provide. Some people

965
00:50:11,640 --> 00:50:14,480
Speaker 4: waiting a month to get paid because we were getting

966
00:50:14,520 --> 00:50:19,680
Speaker 4: paid on a monthly basis. So first was like the

967
00:50:19,719 --> 00:50:21,680
Speaker 4: most traditional people, you go to a bank, you apply

968
00:50:21,719 --> 00:50:24,480
Speaker 4: for a line of credit, right, but that's only going

969
00:50:24,560 --> 00:50:27,360
Speaker 4: to be if you have business history, right and that

970
00:50:27,520 --> 00:50:30,439
Speaker 4: they feel that you're credit worthy. But with time, those

971
00:50:30,480 --> 00:50:33,839
Speaker 4: lines of credit it was tapping. For one case, it

972
00:50:33,920 --> 00:50:37,040
Speaker 4: was tapping friends and family and that's usually where most

973
00:50:37,040 --> 00:50:42,319
Speaker 4: people start with either basic credit cards or getting money

974
00:50:42,360 --> 00:50:45,360
Speaker 4: from the bank, right, but they're not lended much and

975
00:50:45,400 --> 00:50:48,839
Speaker 4: it's not enough to really turbo charge your company. It

976
00:50:48,960 --> 00:50:53,399
Speaker 4: wasn't until I was trading stocks and building, you know,

977
00:50:53,480 --> 00:50:59,200
Speaker 4: a tech company that I started to understand that starting

978
00:50:59,239 --> 00:51:02,759
Speaker 4: with some family money is schools fight's you know, it

979
00:51:02,760 --> 00:51:05,200
Speaker 4: could get you started. Starting with little credit cards and

980
00:51:05,200 --> 00:51:07,719
Speaker 4: make money is enough to get you started. But if

981
00:51:07,760 --> 00:51:11,200
Speaker 4: you're really gonna try to expand your business, you're going

982
00:51:11,239 --> 00:51:16,600
Speaker 4: to have to raise money from institutional investors, right, from

983
00:51:16,719 --> 00:51:21,160
Speaker 4: VC firms, from angel investors, and their entire business model

984
00:51:22,160 --> 00:51:28,680
Speaker 4: is to identify solid companies, pump money in with the

985
00:51:28,760 --> 00:51:30,719
Speaker 4: intention solely to scale them.

986
00:51:31,040 --> 00:51:31,200
Speaker 3: Right.

987
00:51:31,480 --> 00:51:36,479
Speaker 4: That's a little different than starting from scratch, right because

988
00:51:36,480 --> 00:51:38,960
Speaker 4: if sometimes all right, so in the world, in the

989
00:51:39,080 --> 00:51:42,520
Speaker 4: in the startup world, right, and it's not just tech startups,

990
00:51:42,560 --> 00:51:45,239
Speaker 4: because any obviously, any industry could be a startup. But

991
00:51:45,280 --> 00:51:51,320
Speaker 4: in the startup world, your first objective is to develop

992
00:51:51,320 --> 00:51:56,319
Speaker 4: an MVP, right, your minimally viable products, and that's the

993
00:51:56,360 --> 00:51:59,160
Speaker 4: first thing that you need to finance. Right, Prove that

994
00:51:59,280 --> 00:52:02,200
Speaker 4: you have a product or service that the market is

995
00:52:02,239 --> 00:52:04,360
Speaker 4: in demand for, Prove that you can monetize it.

996
00:52:04,960 --> 00:52:06,480
Speaker 3: That's the first thing that you should raise money for.

997
00:52:06,520 --> 00:52:08,760
Speaker 4: And if you're gonna do it with your credit cards

998
00:52:08,760 --> 00:52:11,600
Speaker 4: and with friends and family money, that's the time because

999
00:52:11,600 --> 00:52:13,239
Speaker 4: you don't you don't necessarily have to go out there

1000
00:52:13,360 --> 00:52:16,560
Speaker 4: and form a business. You just have to prove that

1001
00:52:16,640 --> 00:52:19,200
Speaker 4: you have a product or service that people are willing

1002
00:52:19,239 --> 00:52:22,359
Speaker 4: to pay for. Once you can prove that with this

1003
00:52:22,480 --> 00:52:25,839
Speaker 4: product or service, it costs, you know, ten thousand dollars

1004
00:52:25,880 --> 00:52:29,760
Speaker 4: a month to operate, but it generates fifty thousand dollars

1005
00:52:29,239 --> 00:52:36,520
Speaker 4: of money like annual profits. Once you could prove that relationship,

1006
00:52:36,520 --> 00:52:40,839
Speaker 4: that money in doing this thing produces money out at

1007
00:52:40,840 --> 00:52:45,680
Speaker 4: a multiple larger than money in. You can take that

1008
00:52:45,680 --> 00:52:49,640
Speaker 4: that that little company to market and start raising money

1009
00:52:49,680 --> 00:52:52,680
Speaker 4: from angel investors and venture capitalists.

1010
00:52:52,920 --> 00:52:53,960
Speaker 3: And there's gonna be different.

1011
00:52:54,080 --> 00:52:56,520
Speaker 4: There's gonna be different levels of them, right, there's gonna

1012
00:52:56,520 --> 00:52:59,680
Speaker 4: be there's gonna be like Brooklyn, what is it Brooklyn

1013
00:52:59,680 --> 00:53:03,560
Speaker 4: brids Right, Charlie Charlie O'Donnell is the guy who hits

1014
00:53:03,640 --> 00:53:07,759
Speaker 4: that fund. He likes to deal with companies that are

1015
00:53:08,160 --> 00:53:12,240
Speaker 4: at that seed level, that first investment usually five hundred

1016
00:53:12,280 --> 00:53:16,880
Speaker 4: thousand million in capital. Then there's like the series A,

1017
00:53:17,200 --> 00:53:19,960
Speaker 4: Series B and so on and some so there's some

1018
00:53:20,239 --> 00:53:24,600
Speaker 4: VC firms that only get in at that pre like

1019
00:53:24,600 --> 00:53:28,719
Speaker 4: like two hundred million dollar minimum. Like, we don't look

1020
00:53:28,760 --> 00:53:31,600
Speaker 4: at any company that doesn't require two hundred million dollars

1021
00:53:31,719 --> 00:53:34,879
Speaker 4: or more. Right, So it's all about what where we're

1022
00:53:34,920 --> 00:53:37,400
Speaker 4: trying to go. But the first, the first that seed

1023
00:53:37,480 --> 00:53:40,400
Speaker 4: funding of that that anywhere from half a million dollars

1024
00:53:40,440 --> 00:53:44,400
Speaker 4: to like one one point five. There's there's VC firms

1025
00:53:44,400 --> 00:53:48,320
Speaker 4: that specialize just that. Then there's VC firms that specialize

1026
00:53:48,320 --> 00:53:51,600
Speaker 4: in and then different sectors. Some are healthcare focused, some

1027
00:53:51,680 --> 00:53:55,880
Speaker 4: are technology focused, some are industry agnostic. It really depends,

1028
00:53:56,160 --> 00:53:59,840
Speaker 4: but you need to have some sort of traction, some

1029
00:54:00,120 --> 00:54:02,319
Speaker 4: of proof that your business is growing.

1030
00:54:02,360 --> 00:54:04,640
Speaker 3: And I learned that by doing.

1031
00:54:04,440 --> 00:54:05,680
Speaker 4: My tech start up because I was like, all right,

1032
00:54:05,680 --> 00:54:07,520
Speaker 4: I know, I'm gonna need money to fuel this thing.

1033
00:54:08,200 --> 00:54:12,560
Speaker 4: And in going to like tech startup meetups, listening to

1034
00:54:12,560 --> 00:54:17,319
Speaker 4: the conversations, going to pitching events where you're actually you know,

1035
00:54:17,400 --> 00:54:20,279
Speaker 4: competing to raise money or you are even just practicing

1036
00:54:20,600 --> 00:54:24,319
Speaker 4: you're you're pitching, you hear what they what the VC

1037
00:54:24,480 --> 00:54:25,360
Speaker 4: firms are interested in.

1038
00:54:26,920 --> 00:54:30,360
Speaker 3: What's the cost to acquire a user? What is that

1039
00:54:30,480 --> 00:54:32,040
Speaker 3: user worth? How much?

1040
00:54:32,160 --> 00:54:33,799
Speaker 4: How much does it cost to acquire a user, and

1041
00:54:33,800 --> 00:54:38,319
Speaker 4: what's the lifetime of a user? What's the value proposition here?

1042
00:54:38,560 --> 00:54:41,120
Speaker 4: That they're going to ask you those questions and sometimes

1043
00:54:41,280 --> 00:54:43,680
Speaker 4: you need to be asked that question, so you can

1044
00:54:43,719 --> 00:54:46,239
Speaker 4: go back to your computer Google what the hell they're

1045
00:54:46,239 --> 00:54:49,759
Speaker 4: asking right, and then you end up start you end

1046
00:54:49,880 --> 00:54:53,880
Speaker 4: up creating what they're asking for. We need you to

1047
00:54:53,920 --> 00:54:55,839
Speaker 4: look like this. They you know, in the startup world

1048
00:54:55,840 --> 00:54:58,560
Speaker 4: that we talked about the hockey stick, they want your

1049
00:54:58,560 --> 00:55:02,440
Speaker 4: growth to be the hockey right, gradual growth or if

1050
00:55:02,440 --> 00:55:05,960
Speaker 4: you just look at the that's viral right, look at

1051
00:55:06,000 --> 00:55:10,120
Speaker 4: COVID nineteen right, that's truly the definition of going viral.

1052
00:55:10,440 --> 00:55:13,480
Speaker 3: You look at the curves. What were the numbers, and

1053
00:55:13,560 --> 00:55:14,960
Speaker 3: then it's.

1054
00:55:14,800 --> 00:55:18,640
Speaker 4: Exponential that they're they're looking to see that you're on

1055
00:55:18,680 --> 00:55:22,360
Speaker 4: that trajectory, that there's going to be that level of absorption.

1056
00:55:22,520 --> 00:55:26,239
Speaker 4: So once you start looking at vcs to answer that

1057
00:55:26,320 --> 00:55:27,759
Speaker 4: question is how do you raise money? How do you

1058
00:55:27,760 --> 00:55:29,960
Speaker 4: get the money? Once you start looking at them, it

1059
00:55:30,120 --> 00:55:34,080
Speaker 4: forces you to become, you know, a builder of a

1060
00:55:34,160 --> 00:55:36,680
Speaker 4: business because they want they want your business to succeed,

1061
00:55:37,480 --> 00:55:41,480
Speaker 4: but they can identify that you're on shaky grounds, so

1062
00:55:41,520 --> 00:55:43,160
Speaker 4: they want your foundation to be tight. They want your

1063
00:55:43,160 --> 00:55:45,600
Speaker 4: team to be tight. They want there to be traction,

1064
00:55:45,680 --> 00:55:48,279
Speaker 4: they want the market size to be large enough. And

1065
00:55:48,440 --> 00:55:49,880
Speaker 4: those are the things that they're interested in.

1066
00:55:51,640 --> 00:55:55,560
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