WEBVTT - 3 Ways To Grow Your Business Like A Pro 0:00:00.680 --> 0:00:01.080 Hello. 0:00:01.560 --> 0:00:05.040 My name is Santasha Nabananga Bamblet. I'm a proud Order 0:00:05.160 --> 0:00:08.760 Order Kerni Whoalbury and a waddery woman. And before we 0:00:08.800 --> 0:00:11.440 get started on She's on the Money podcast, I would 0:00:11.520 --> 0:00:14.520 like to acknowledge the traditional custodians of the land of 0:00:14.560 --> 0:00:18.680 which this podcast is recorded on a wondery country, acknowledging 0:00:18.680 --> 0:00:22.560 the elders, the ancestors and the next generation coming through 0:00:23.040 --> 0:00:27.159 as this podcast is about connecting, empowering, knowledge sharing and 0:00:27.200 --> 0:00:30.560 the storytelling of you to make a difference for today 0:00:31.040 --> 0:00:33.080 and lasting impactful tomorrow. 0:00:33.320 --> 0:00:34.200 Let's get into it. 0:00:34.360 --> 0:00:53.640 She's on the Money, She's on the Money. 0:00:57.400 --> 0:01:00.920 Hello, and welcome to the business Bible. Are you noticing 0:01:00.960 --> 0:01:04.280 some burnout signs, juggling multiple hats and wondering if it's 0:01:04.280 --> 0:01:07.280 time to bring more hands on deck. Maybe you're seeing 0:01:07.280 --> 0:01:10.360 some bright opportunities on the horizon, but you're not sure 0:01:10.400 --> 0:01:14.160 if they're worth chasing. Well, today we're diving into one 0:01:14.200 --> 0:01:17.720 of the most crucial questions for any business, and that's 0:01:17.840 --> 0:01:21.160 when is it time to scale? I'm Victoria de Vine, 0:01:21.240 --> 0:01:24.480 your business bff, and I'm here with our side hustle 0:01:24.560 --> 0:01:27.720 superstar is Jess Gorucci. Hi Jess. 0:01:27.959 --> 0:01:31.920 Hello, welcome back to another episode of the Business Bible. 0:01:32.120 --> 0:01:34.280 Happy to be here. I love the business episodes. They're 0:01:34.360 --> 0:01:37.160 so fun and I'm so excited today because I feel 0:01:37.200 --> 0:01:40.040 like you hear the words scale a lot in the 0:01:40.080 --> 0:01:42.560 business world. People are always saying things like scale to 0:01:42.640 --> 0:01:44.080 ten k in one month. 0:01:44.280 --> 0:01:46.000 Oh my gosh, it's isn't it. 0:01:46.240 --> 0:01:48.520 Yeah, people just popping off using the word left, frat 0:01:48.520 --> 0:01:49.280 and center, and it. 0:01:49.240 --> 0:01:50.559 Sounds took me like six years. 0:01:50.760 --> 0:01:53.040 It sounds great in theory, but like, what does it 0:01:53.080 --> 0:01:55.320 actually mean to scaling business? 0:01:55.360 --> 0:01:58.080 It's a good question and probably the best place to start. 0:01:58.160 --> 0:02:01.160 So from the starts, scaling your business is kind of 0:02:01.200 --> 0:02:04.320 like adding the perfect accessory to your favorite outfit. It's 0:02:04.360 --> 0:02:08.240 all about enhancing what you already have without losing your 0:02:08.360 --> 0:02:12.720 unique style, which is harder done than said. In business terms, 0:02:12.760 --> 0:02:16.160 scaling means growing your operations, increasing your reach, and boosting 0:02:16.160 --> 0:02:19.840 your revenue, all while maintaining the quality and essence that 0:02:19.960 --> 0:02:23.560 makes your brand so special. It's not just about doing more, 0:02:23.720 --> 0:02:27.800 it's about doing more smartly, with the right systems, team 0:02:27.960 --> 0:02:31.440 and strategies in place that support your growth. It's exciting, 0:02:31.639 --> 0:02:35.519 it is challenging, and if it's done right, it's really rewarding. 0:02:35.760 --> 0:02:38.440 Is scaling something that we should all be just like 0:02:38.560 --> 0:02:40.959 diving straight into the second that we start. 0:02:40.880 --> 0:02:44.120 Or just go hard or go home? Jess, No, I'm joking. 0:02:44.160 --> 0:02:46.600 Definitely do not go hard and do not go home. 0:02:47.160 --> 0:02:50.520 Timing is absolutely everything. Scaling your business is kind of 0:02:50.600 --> 0:02:53.000 like tending to a garden. I can't keep a garden alive. 0:02:53.080 --> 0:02:55.240 So maybe this is a really bad analogy, but you 0:02:55.320 --> 0:02:57.520 need to plant the seeds at the right moments to 0:02:57.600 --> 0:03:00.360 let them grow. If you try and scale to early, 0:03:00.480 --> 0:03:03.040 your roots might not actually be deep enough to support 0:03:03.120 --> 0:03:06.160 new growth. And things could with a really fast like 0:03:06.240 --> 0:03:09.640 my actual garden. But if you wait too longes you 0:03:09.680 --> 0:03:12.359 could actually miss out on a prime season for expansion. 0:03:12.560 --> 0:03:15.040 It's all about finding that sweet spot where your business 0:03:15.120 --> 0:03:17.680 is ready to thrive without getting tangled in the weeds 0:03:17.760 --> 0:03:19.680 of let's call it unpreparedness. 0:03:20.120 --> 0:03:24.360 Okay, now, you obviously as someone who's scaled multiple businesses 0:03:24.400 --> 0:03:27.359 with a lot of success, but did you run into 0:03:27.400 --> 0:03:30.280 any problems kind of along the way of that journey, Yeah. 0:03:30.160 --> 0:03:31.800 One hundred percent. And then I cried a lot. But 0:03:31.880 --> 0:03:35.040 I think that's really normal. I feel like I've gotten 0:03:35.040 --> 0:03:38.560 so much wrong, And I mean, scaling is really hard. 0:03:38.600 --> 0:03:42.480 Knowing when to scale is also equally hard, because I 0:03:42.520 --> 0:03:44.560 think so many of us see that as like a 0:03:44.600 --> 0:03:48.800 really shiny next step. But as someone who has scaled, 0:03:49.440 --> 0:03:51.920 sold and now is going through, I would say your 0:03:51.960 --> 0:03:55.440 scale process. At the moment, I am recruiting left, right, 0:03:55.480 --> 0:03:58.840 and center. But I'm also finding it very different this 0:03:58.960 --> 0:04:02.360 time because I've really realized that scaling is not necessarily 0:04:02.760 --> 0:04:05.720 always the goal I need at this point in my 0:04:05.800 --> 0:04:09.280 business to scale because right now the demand we have 0:04:09.920 --> 0:04:13.280 outweighs the staff that we have. Like we are overworked 0:04:13.280 --> 0:04:15.240 at the moment. We're not able to service as many 0:04:15.280 --> 0:04:17.599 clients as we would love to, so I know that 0:04:17.640 --> 0:04:20.440 we need more hands on deck. But on the flip side, 0:04:20.480 --> 0:04:23.080 I have run a bigger business before and I haven't 0:04:23.200 --> 0:04:25.279 enjoyed it, and it has you know, I wouldn't say 0:04:25.320 --> 0:04:28.120 gone to shit, but like I wasn't loving at my 0:04:28.120 --> 0:04:31.400 mental health, wasn't there, nothing really worked, And I think 0:04:31.440 --> 0:04:33.800 that there are so many bumps along the way right Like, 0:04:33.880 --> 0:04:36.560 it's not something that is super shiny, and you do 0:04:36.640 --> 0:04:39.320 need to really work out what that looks like. And 0:04:39.400 --> 0:04:43.160 with scale comes in increased cost as well, and that 0:04:43.200 --> 0:04:45.680 can be really overwhelming, like at some point you go, 0:04:46.240 --> 0:04:48.960 is this actually worth it? So there's I guess a 0:04:49.040 --> 0:04:52.800 lot of moving parts when it comes to scaling, and 0:04:52.880 --> 0:04:55.440 it doesn't necessarily mean that it might be right for you. 0:04:55.760 --> 0:04:58.560 Like if you love your lifestyle right now, scaling might 0:04:58.640 --> 0:05:01.320 mean that you are working another forty hours a week. 0:05:01.600 --> 0:05:02.479 Is that actually for you? 0:05:03.240 --> 0:05:06.760 Crazy? How did you know that the right time to 0:05:06.839 --> 0:05:09.480 scale was when you decided to do so well? 0:05:09.520 --> 0:05:11.880 The first time we scaled was when I scaled my 0:05:12.160 --> 0:05:15.280 financial advice firm. The first time this is like when 0:05:15.360 --> 0:05:18.120 she's on the money, was just starting. And if we're 0:05:18.160 --> 0:05:22.080 being really honest, I think that scale to me was 0:05:22.120 --> 0:05:24.560 a lot about ego. I wanted a big business. I 0:05:24.600 --> 0:05:27.280 felt like a big business was reflective of how good 0:05:27.320 --> 0:05:29.680 I was at my work, and we all know now 0:05:29.720 --> 0:05:32.719 that that is absolutely not the case. So I scaled, 0:05:32.760 --> 0:05:35.320 and I feel like I was making decisions because a 0:05:35.320 --> 0:05:38.240 lot of the time they looked like the right decisions. 0:05:38.560 --> 0:05:41.640 Having a good financial advice business to me meant having 0:05:41.720 --> 0:05:45.280 a lot of financial advices. It didn't actually end up 0:05:45.279 --> 0:05:47.640 breaking even in the way that you would expect it to, 0:05:48.000 --> 0:05:51.200 because with increased headcount, your entire business model needs to 0:05:51.279 --> 0:05:54.839 change to make sure that the profitability is still being maintained. 0:05:55.240 --> 0:06:00.160 And my profitability was being eaten into significantly, which it's 0:06:00.240 --> 0:06:03.560 absolutely fine, because often when you scale, there's a number 0:06:03.640 --> 0:06:05.760 of investments you need to make in the short term 0:06:05.800 --> 0:06:08.960 to get there. It eats away your profitability and then 0:06:09.320 --> 0:06:12.000 over time it starts to come back up. I didn't 0:06:12.040 --> 0:06:14.680 like it, I didn't enjoy it. It wasn't nourishing to me, 0:06:15.000 --> 0:06:18.400 and we ended up selling that business. So in September 0:06:18.440 --> 0:06:21.320 twenty twenty two, I officially sold out of being a 0:06:21.360 --> 0:06:25.599 financial advisor. I went back into mortgage broking, decided to 0:06:25.640 --> 0:06:29.360 start that from scratch. I've recently had the other business 0:06:29.360 --> 0:06:32.320 partner in that business, Leaf and we're currently in the 0:06:32.360 --> 0:06:36.600 process of scaling the business now, but more so that 0:06:36.680 --> 0:06:39.720 we can properly resource the team so that we can 0:06:39.760 --> 0:06:42.200 have a really good time. And I mean right now, 0:06:42.640 --> 0:06:45.160 I currently run Cheese on the Money and Zella Money 0:06:45.200 --> 0:06:48.600 the mortgage broking business, and we have so many beautiful 0:06:48.640 --> 0:06:50.360 clients coming from Shees on the Money and I want 0:06:50.360 --> 0:06:52.080 to be able to service more of them. So the 0:06:52.120 --> 0:06:54.479 reason for scaling at the moment is purely because I'm like, 0:06:54.560 --> 0:06:57.080 I want more people to come to my business because 0:06:57.120 --> 0:07:00.360 I'm enjoying this, not because of an ego thing. And 0:07:00.839 --> 0:07:03.320 as you know, Jess, a lot of this is taking 0:07:03.400 --> 0:07:06.280 us a long time because I'm trying so hard to 0:07:06.720 --> 0:07:10.200 find the right mortgage brokers to hire. My last mortgage 0:07:10.200 --> 0:07:13.080 broker took four months to hire because I had not 0:07:13.160 --> 0:07:15.440 found the right person yet and I wasn't willing to 0:07:15.480 --> 0:07:18.280 compromise in order to say that my team was growing. 0:07:18.520 --> 0:07:21.360 So I definitely have a different hat on this time, 0:07:21.920 --> 0:07:24.360 and it is a little bit more complex, but I 0:07:24.360 --> 0:07:26.040 think it'll be for the better. 0:07:26.240 --> 0:07:30.040 Yeah. So scaling isn't necessarily just about adding in follow 0:07:30.040 --> 0:07:32.800 you more quantity of people, or you know, outsourcing to 0:07:32.840 --> 0:07:35.600 more and more people. It's about finding the right people 0:07:35.600 --> 0:07:37.080 to support that growth exactly. 0:07:37.080 --> 0:07:39.360 And I think that there's a very big misconception that 0:07:39.440 --> 0:07:42.200 the bigger you scale, the bigger profit margin there will be. 0:07:42.680 --> 0:07:45.040 And someone who's really good at this is Iris Smith 0:07:45.200 --> 0:07:47.600 from the quick Flick. So she's on TikTok and she 0:07:47.720 --> 0:07:51.080 shares a lot about how her business has scaled, and 0:07:51.160 --> 0:07:53.000 she went from a small business where she was packing 0:07:53.080 --> 0:07:55.720 her own orders in her laund room, which was really cute. 0:07:55.720 --> 0:07:57.880 I feel like I've followed her since then and now 0:07:57.920 --> 0:08:00.880 her products are available in price line. But what you 0:08:00.880 --> 0:08:03.480 guys probably don't know is that if you get to 0:08:03.520 --> 0:08:07.760 that stage with a cosmetics company, you are not only 0:08:07.960 --> 0:08:11.840 paying for mass amounts of production to supply to these 0:08:11.880 --> 0:08:14.920 big companies. You're paying for the display stands, you're paying 0:08:14.920 --> 0:08:17.480 for the marketing. You're paying for the branding and arguably 0:08:17.520 --> 0:08:20.600 the spot inside the store to begin with that, and 0:08:20.800 --> 0:08:23.280 you're sharing your profit margin with somebody else because they're 0:08:23.280 --> 0:08:25.520 stocking it. They're not going to want to stock your product, 0:08:25.600 --> 0:08:28.920 jess if it's not financially beneficial for them to do so. 0:08:28.920 --> 0:08:31.360 So it's all about is that even worth it? And 0:08:31.400 --> 0:08:34.160 it's about weighing up do I actually want to scale 0:08:34.280 --> 0:08:36.600 or do I want to stay small and maybe keep 0:08:36.800 --> 0:08:39.680 a higher percentage of my profit margin. There's a lot 0:08:39.720 --> 0:08:40.920 to take into consideration. 0:08:41.200 --> 0:08:44.400 Okay, well, I feel like after the break, we should 0:08:44.400 --> 0:08:47.880 talk about maybe some indicators for people on how they 0:08:47.920 --> 0:08:50.640 can know whether or not scaling is the right choice 0:08:50.640 --> 0:08:52.760 for them. But let's go take a really quick break 0:08:52.840 --> 0:09:00.720 and come back. Surely, Welcome back, everybody. Now, I know 0:09:00.800 --> 0:09:02.599 a lot of our listeners are eager to learn a 0:09:02.640 --> 0:09:05.240 little bit more about whether or not scaling is the 0:09:05.320 --> 0:09:07.280 right choice for them because it feels a little bit 0:09:07.400 --> 0:09:10.680 like a gut decision. But is it really just about 0:09:10.880 --> 0:09:12.840 your intuition and what you think or are there things 0:09:12.840 --> 0:09:14.440 that we can look out for that let us know 0:09:14.559 --> 0:09:15.880 that it might be the right choice. 0:09:15.920 --> 0:09:18.720 It's definitely not a gut thing. I mean at the moment, 0:09:18.800 --> 0:09:20.520 I know in my gut that I really want to 0:09:20.520 --> 0:09:23.480 scale Zella money because I just know that that's going 0:09:23.520 --> 0:09:26.280 to nourish my soul, having more brokers that can support 0:09:26.280 --> 0:09:28.440 more folsts home by, Like, I just love it, right, 0:09:28.720 --> 0:09:31.000 So in my gut that's what I want. So it 0:09:31.040 --> 0:09:34.120 feels really positive, but I have a number of tools 0:09:34.160 --> 0:09:36.440 that I need to implement because just because it feels 0:09:36.520 --> 0:09:38.400 right doesn't mean it's going to be financially viable. And 0:09:38.440 --> 0:09:40.760 if we go down that route just based on gut feeling, 0:09:41.000 --> 0:09:42.840 I could end up in a lot of trouble Jess, 0:09:43.160 --> 0:09:46.720 because more money, more problems. Right, So there are some 0:09:46.840 --> 0:09:49.000 key indicators that I want you to keep an eye on. 0:09:49.400 --> 0:09:52.120 So firstly, if you or your team at the moment 0:09:52.160 --> 0:09:55.600 are completely swamped, they're working additional hours and you're still 0:09:55.600 --> 0:09:58.400 feeling like you're drowning in tasks. I would say that's 0:09:58.400 --> 0:10:00.640 a red flag. You might need to hire some more 0:10:00.720 --> 0:10:04.640 hands and delegate some tasks off, or ask yourself if 0:10:04.679 --> 0:10:06.640 there are tasks that you do all the time that 0:10:06.679 --> 0:10:09.120 you might be able to automate or get someone else 0:10:09.240 --> 0:10:12.880 to do next up. If you're selling out regularly, that's 0:10:13.000 --> 0:10:15.600 usually not just luck. I think lots of us, especially 0:10:15.640 --> 0:10:18.640 small business owners, they're like, I am so lucky, and 0:10:18.679 --> 0:10:23.360 you're like, no, you are so talented. That's demand telling 0:10:23.400 --> 0:10:26.240 you that maybe it's time to level up. And lastly, 0:10:26.400 --> 0:10:29.400 if your current tools, space or tech setup just isn't 0:10:29.400 --> 0:10:32.079 cutting it anymore, to me, that's a sign that your 0:10:32.120 --> 0:10:36.199 infrastructure needs an upgrade to keep up with your growing business. Now, 0:10:36.240 --> 0:10:39.120 it's something when we're looking at key indicators. If I 0:10:39.360 --> 0:10:41.240 sit down and look at it, right, I have a 0:10:41.280 --> 0:10:43.320 team of mortgage brokers. You don't need to know what 0:10:43.360 --> 0:10:45.880 they do at the end of the day. They see clients, right, 0:10:46.160 --> 0:10:48.560 and I know that at this point in time, my 0:10:48.640 --> 0:10:52.320 mortgage brokers can see two clients a day, and I go, wow, 0:10:52.360 --> 0:10:54.679 I'd really like more clients to get through my door. 0:10:55.080 --> 0:10:57.200 The first thing I might think is that means we 0:10:57.280 --> 0:11:01.280 need more brokers, Yess, But in reality, we actually need 0:11:01.320 --> 0:11:04.080 to look at the back end processes. Are we equipping 0:11:04.160 --> 0:11:06.959 them with enough admin staff to get their job done? 0:11:07.160 --> 0:11:10.679 Are we automating enough processes? Is there anything that I 0:11:10.760 --> 0:11:15.160 could do to mean that my mortgage brokers do less 0:11:15.679 --> 0:11:18.600 admin work and get to see more clients? Is there 0:11:18.600 --> 0:11:20.840 a way that I could scale my pre existing team 0:11:20.960 --> 0:11:23.120 from seeing two clients a day to being able to 0:11:23.160 --> 0:11:25.520 say three. What would that actually look like? What would 0:11:25.559 --> 0:11:27.840 I have to alleviate from them? And I think that 0:11:27.880 --> 0:11:30.400 we need to look at our businesses this way first, 0:11:30.760 --> 0:11:34.000 because if you're just going, okay, well I need another 0:11:34.120 --> 0:11:36.600 Jess like Jess, you and I both know in she's 0:11:36.640 --> 0:11:38.960 on the money. If scaling she's on the money was 0:11:39.000 --> 0:11:41.640 the plan, and we go, actually, Jess is really productive. 0:11:41.720 --> 0:11:44.600 She's running all the partnerships. Maybe we need to double that. 0:11:44.960 --> 0:11:47.559 Maybe we need another partnerships manager. You and I both 0:11:47.640 --> 0:11:49.800 know that's not the answer. The answer would be to 0:11:49.840 --> 0:11:53.400 alleviate all of the things that you personally are doing 0:11:53.480 --> 0:11:56.240 that could be done by somebody else, so that then 0:11:56.360 --> 0:11:58.720 you can scale that. Because from my perspective, you'd be 0:11:58.720 --> 0:11:59.720 the right person for that. 0:12:00.080 --> 0:12:00.280 Yeah. 0:12:00.280 --> 0:12:02.240 So I think we need to take a step back 0:12:02.280 --> 0:12:06.440 and pragmatically look at our businesses before we actually pull 0:12:06.480 --> 0:12:10.199 the trigger or immediately think Okay, well I want X, 0:12:10.240 --> 0:12:12.760 so I need y. Yeah that could mean that you're 0:12:12.760 --> 0:12:16.840 seeing more people, but is that the most cost effective decision? 0:12:17.320 --> 0:12:20.880 Are you effectively outsourcing things? Are there things on your 0:12:20.960 --> 0:12:23.719 team that you are doing that you don't really need 0:12:23.760 --> 0:12:26.560 to be doing. Recently, I've re reviewed all of the 0:12:26.600 --> 0:12:29.000 financials that I'm doing. You guys know, I have a 0:12:29.000 --> 0:12:32.360 bookkeeper and I adore her. Hi Helen and Carmen love you. 0:12:32.400 --> 0:12:34.760 They do so much. But when I went back to 0:12:34.800 --> 0:12:36.920 the drawing board, I was like, oh my gosh, every 0:12:36.920 --> 0:12:39.760 single month, I'm generating all these reports and I'm doing this, 0:12:39.880 --> 0:12:43.000 and I'm doing that in addition to their bookkeeping. I 0:12:43.000 --> 0:12:45.440 could actually get them to do that, pop it into 0:12:45.440 --> 0:12:47.679 my emails. I can still do the review, but I'm 0:12:47.720 --> 0:12:50.520 saving at least another five hours a month by not 0:12:50.720 --> 0:12:54.160 doing it myself. And I think that that is really important. 0:12:54.480 --> 0:12:57.240 But as business owners, Jess, we don't like to let 0:12:57.280 --> 0:13:00.480 go totally. And you've probably seen this, but for me, 0:13:00.600 --> 0:13:02.640 letting go has been a really big part of it. 0:13:02.679 --> 0:13:04.960 I don't really want people to come in and do 0:13:05.040 --> 0:13:06.720 it for me because I feel like I'm good at 0:13:06.760 --> 0:13:08.400 it and I want to still feel involved. But at 0:13:08.440 --> 0:13:10.920 the same time, sometimes you turn around to me and go, 0:13:11.360 --> 0:13:15.240 they I can actually do that, and we both know 0:13:15.280 --> 0:13:17.960 I'm better at it. Yeah, I know, I know. So 0:13:18.080 --> 0:13:20.120 I think it's really important to step back and go, 0:13:20.200 --> 0:13:23.319 what is the actual logical answer here because it might 0:13:23.400 --> 0:13:26.040 not look the way that you think it looks. Because 0:13:26.160 --> 0:13:28.680 for me to scale my business right now, if I 0:13:28.760 --> 0:13:31.760 looked at it at surface level, it's high more mortgage brokers. 0:13:31.960 --> 0:13:35.000 I actually need a lot more admin. So that's going 0:13:35.080 --> 0:13:37.479 to look different. There's going to be different costs associated, 0:13:37.559 --> 0:13:41.040 different resources associated, And I just think it's really important 0:13:41.480 --> 0:13:43.600 to have a look at the indicators and go, are 0:13:43.640 --> 0:13:46.400 we even ready for this? Is this even something I want? 0:13:46.679 --> 0:13:46.880 Yeah? 0:13:46.920 --> 0:13:48.520 It sounds like you need to have a really in 0:13:48.559 --> 0:13:51.840 depth understanding of like, ah, you're back in your processes. 0:13:52.240 --> 0:13:54.840 It's not just a quick snap decision if someone is 0:13:54.840 --> 0:13:57.559 feeling the pinge in those places. Scaling is a very 0:13:57.600 --> 0:13:59.960 abstract word. I feel like, what do we do? 0:14:00.040 --> 0:14:02.280 It's a bit different to scaling a fish. Do about 0:14:02.280 --> 0:14:05.840 that yuck that you said abstruct scaling And I was like, okay, 0:14:05.920 --> 0:14:10.200 let's go completely rogue. When we're talking about scaling, you 0:14:10.200 --> 0:14:12.840 should always start with a financial health check. I bet 0:14:12.920 --> 0:14:15.760 none of you saw that coming from me assessing your 0:14:15.760 --> 0:14:18.200 financial situation. It's going to ensure that you're ready for 0:14:18.240 --> 0:14:22.000 the financial investment that scaling actually requires. First, I want 0:14:22.040 --> 0:14:24.040 you to look at your cash flow before scaling. You 0:14:24.040 --> 0:14:26.200 need to make sure that your cash flow is positive 0:14:26.480 --> 0:14:29.520 and consistent. You need to be able to cover the 0:14:29.520 --> 0:14:33.720 costs of scaling without jeopardizing your financial stability. Then I 0:14:33.760 --> 0:14:35.400 want you to have a look at your profit margins. 0:14:35.400 --> 0:14:38.160 We spoke about this before the break. Your profit margins 0:14:38.200 --> 0:14:41.160 should be strong enough to support the additional cost of scaling, 0:14:41.240 --> 0:14:45.240 like hiring and marketing and production increases. Like, for example, 0:14:45.280 --> 0:14:48.120 if you're taking a product into a different store that 0:14:48.240 --> 0:14:51.160 you don't run, what percentage of that profit margin are 0:14:51.200 --> 0:14:53.520 you going to end up having to share? What does 0:14:53.600 --> 0:14:56.000 that look like? And how does that eat into your 0:14:56.040 --> 0:14:59.120 ability to put that product on the table. How does 0:14:59.160 --> 0:15:02.720 that work? And don't forget we all need a financial buffer. 0:15:02.760 --> 0:15:04.520 I jump up and down on cheese on the money 0:15:04.520 --> 0:15:08.080 about making sure that we have an emergency fund. Where's 0:15:08.080 --> 0:15:09.280 your business emergency fund? 0:15:09.360 --> 0:15:09.680 Jess? 0:15:09.840 --> 0:15:11.720 We need one of those two. This is going to 0:15:11.760 --> 0:15:14.920 be your safety net to cover any unexpected costs. Like 0:15:14.960 --> 0:15:17.600 what if growth is slower than expected during this process 0:15:17.600 --> 0:15:20.360 of scaling. What if you've done all of your numbers 0:15:20.400 --> 0:15:21.960 and you've dot it all your eyes and crossed all 0:15:22.000 --> 0:15:23.560 your tea's and then all of a sudden, it's just 0:15:23.600 --> 0:15:25.080 not working the way that you thought it was going 0:15:25.160 --> 0:15:27.880 to work. But you know it's going to work long term. 0:15:28.400 --> 0:15:31.000 Can you get through that period? We don't want to 0:15:31.040 --> 0:15:34.200 be under significant financial stress so that we're forced to 0:15:34.240 --> 0:15:34.520 make a. 0:15:34.480 --> 0:15:36.520 Decision we don't want to have to make. And that's 0:15:36.560 --> 0:15:40.359 a risk, right with scaling n sive risk. You know, ultimately, 0:15:40.640 --> 0:15:43.080 in an ideal world it works exactly like you said. 0:15:43.080 --> 0:15:45.000 You add in a new team member or a new 0:15:45.360 --> 0:15:48.000 piece of machinery or a new factory or whatever, and 0:15:48.080 --> 0:15:51.480 it improves your profitability. But that isn't always how it works. 0:15:51.560 --> 0:15:53.360 Right Like you and I, Jess, we could sit down 0:15:53.360 --> 0:15:56.560 and I'm clearly just using my businesses because it makes 0:15:56.560 --> 0:15:58.040 the most sense to me, and both you and I 0:15:58.080 --> 0:16:00.600 understand it, and I think that they are full enough 0:16:00.600 --> 0:16:03.280 when we distill them down. So I have this mortgage 0:16:03.280 --> 0:16:06.000 broking business right and right now, it's going well, and 0:16:06.600 --> 0:16:09.320 I adore it. If I sat there and said, Jess, 0:16:09.400 --> 0:16:11.280 we want to scale, let's make a plan. What could 0:16:11.280 --> 0:16:14.560 we do? We could do more mortgages or yes, we 0:16:14.600 --> 0:16:18.200 could add another stream of income to that business. What 0:16:18.360 --> 0:16:21.960 if I go back to financial advice? So maybe I'm 0:16:21.960 --> 0:16:24.120 not the advisor. Maybe Jess, we do the numbers and 0:16:24.160 --> 0:16:27.080 we realize we've got the demand. I reckon, we could 0:16:27.080 --> 0:16:30.760 get clients for this. Let's hire a couple of financial advisors. 0:16:31.240 --> 0:16:34.520 That's significant in our head, it makes a lot of 0:16:34.560 --> 0:16:37.320 sense because you know, mortgage broking and financial advice go 0:16:37.440 --> 0:16:42.040 together really nicely. And arguably I've done this before. But 0:16:42.440 --> 0:16:45.920 is that worth it? Yeah? Like the amount of money 0:16:46.040 --> 0:16:49.720 to hire financial advisors, pay them properly, get them off 0:16:49.760 --> 0:16:52.240 of space. Is that something I even want to engage in. 0:16:52.560 --> 0:16:55.720 I know it's scaling. I know it's going to ultimately 0:16:55.760 --> 0:16:58.800 add profit to my business, But at what cost am 0:16:58.840 --> 0:17:00.760 I going to have the same time, time, energy, and 0:17:00.800 --> 0:17:03.440 effort to focus on my mortgage broking business? Have I 0:17:03.560 --> 0:17:07.399 thought about what the mortgage broking business will lose because 0:17:07.440 --> 0:17:10.000 I'm investing my time, energy and effort into something else, 0:17:10.520 --> 0:17:13.199 Like what effort needs to go into that to maintain it. 0:17:13.480 --> 0:17:15.160 I think we need to talk about all of these 0:17:15.200 --> 0:17:19.159 other things because financially, on paper, we could distill it 0:17:19.200 --> 0:17:22.480 down and go, okay, Jess, we know that a third 0:17:22.520 --> 0:17:24.920 of the income that is generated from hiring a new 0:17:24.920 --> 0:17:27.360 financial advisor is going to go to the overhead costs, 0:17:27.680 --> 0:17:29.719 a third is going to go to paying their wage, 0:17:29.840 --> 0:17:31.679 and a third is going to go to profitability. I 0:17:31.680 --> 0:17:34.640 can make a beautiful spreadsheet, so the financials checkout, but 0:17:34.680 --> 0:17:36.200 that's not all we have to consider. 0:17:36.400 --> 0:17:38.800 Yeah, apart from the financials, what are the things should 0:17:38.840 --> 0:17:39.800 people be looking at all? 0:17:39.880 --> 0:17:40.080 Right? 0:17:40.200 --> 0:17:42.760 So I have a framework for you. I love a framework. 0:17:42.800 --> 0:17:43.439 You love a little bit. 0:17:43.760 --> 0:17:46.920 Hold the three p's framework, And it's all about making 0:17:47.000 --> 0:17:50.080 sure that your people, process and product are set up 0:17:50.080 --> 0:17:52.320 for growth. First, you're going to look at your team. 0:17:52.520 --> 0:17:55.760 Do you have the right gesses in place in your 0:17:55.800 --> 0:17:58.840 team and can they handle more work? Of course that 0:17:59.119 --> 0:18:01.159 might be just you at the moment. Let's be honest. 0:18:01.760 --> 0:18:03.920 Let's go back to our candle example that I love 0:18:04.000 --> 0:18:07.040 using on their business Bible could just be you. Are 0:18:07.080 --> 0:18:11.040 you just looking at your process, your person and your product. 0:18:11.640 --> 0:18:13.879 So could you handle this on your own or do 0:18:13.920 --> 0:18:16.480 you need to look at getting some help or outsourcing 0:18:16.520 --> 0:18:19.040 some of your tasks. You need to ensure that you 0:18:19.080 --> 0:18:23.280 are scaling but not burning out. I've done that. Do 0:18:23.400 --> 0:18:26.159 not do that. It impacts your business more than you know. 0:18:26.320 --> 0:18:28.159 Yeah. Are you staying up until five in the morning 0:18:28.200 --> 0:18:30.199 pouring candles, go into bed for three hours, and then 0:18:30.240 --> 0:18:31.960 getting up to take all the candles out of the molts? 0:18:32.040 --> 0:18:33.919 Yeah, and you're just having the worst time ever, Like 0:18:34.000 --> 0:18:36.760 one out of ten cannot recommend. Next, we want to 0:18:36.800 --> 0:18:38.239 look in and have a bit of a check in 0:18:38.240 --> 0:18:42.080 with our processes. Are your systems for things like production 0:18:42.280 --> 0:18:46.800 and customer service and management working efficiently? And are they scalable? 0:18:47.240 --> 0:18:49.120 You want to make sure that everything is running as 0:18:49.119 --> 0:18:52.040 smoothly as possible for scaling. So a good example of 0:18:52.040 --> 0:18:55.240 this right now is just I'm going through everything in 0:18:55.280 --> 0:18:59.119 our business right now, and we're really good at customer service, 0:18:59.440 --> 0:19:02.399 Like that's my favorite part. And I want every single 0:19:02.400 --> 0:19:04.640 person that comes through my doors to be like, Wow, 0:19:04.800 --> 0:19:06.960 working with Zella Money was incredible, Like I loved that. 0:19:07.000 --> 0:19:08.880 I'm going to recommend them to a friend because that's 0:19:08.880 --> 0:19:11.760 going to grow my business, right, But when I review it, 0:19:11.760 --> 0:19:15.480 it's so manual at the moment, Like in the background, 0:19:15.600 --> 0:19:18.159 my team are doing an incredible job at it, but 0:19:18.320 --> 0:19:23.480 everything is manual, Like they are writing out birthday emails 0:19:23.640 --> 0:19:26.640 and letters to clients on a monthly basis, Like none 0:19:26.680 --> 0:19:29.639