My Barber Wanted Business Advice

Summary

• When you want to expand, keep your business model simple and easy to manage. This helps in scaling effectively without losing control.
• If you're running multiple stores, the goal is to ensure your involvement is minimal in operations that consume time. Focus on what's scalable without your constant input.
• For example, if half of your income comes from an activity that takes none of your time (like renting chairs), and the other half comes from something that takes all your time (like cutting hair), consider scaling the less time-consuming side.
• By freeing yourself from activities that consume a lot of time, like haircuts, you can focus on opening more stores, which will eventually double or triple your cash flow.
• Think of expansion as a way to multiply your current operations. Once you've opened a second location, consider a third, and so on, to increase overall income without increasing your time investment.
• The key to scaling is to replicate what works and requires little of your personal time, allowing for growth and more streams of revenue.

Video

How To Take Action

I would suggest keeping your business model as simple as possible. Focus on the part of your business that takes the least amount of time but still brings in income. This way, you can easily grow your business without getting overwhelmed with too many tasks.

A good way to do this is by identifying what parts of your business generate income without needing too much of your time. If you've got a side of your business, like renting out equipment or space, that brings in money without your active involvement, think about expanding that part. This way, you free up your time, and you still make money.

For instance, if you’re earning half of your income from activities that don't require much of your time, focus on scaling those. This means less time spent on things like providing personal services, leaving more room to expand your operations.

When expanding, start by opening a second location and applying the same model. This could help you double your cash flow. Once you manage this, consider opening a third location, repeating what already works well and doesn't rely heavily on your involvement.

Remember, the trick is to replicate what works efficiently. Keep multiplying these efforts while keeping everything simple, focusing on what expands income without increasing your time investment. This strategy allows for growth and more revenue without stretching yourself too thin.

Full Transcript

I was having my monthly haircut with my barber he was like yeah I want to add in like some vintage clothing and stuff increases LTV you want to have one shop that makes make a lot of money or do you want to have many stores and he was like I want to have more stores and I was like then don't do that you want to keep the base unit as simple as humanly possible because you as the single owner can manage multiple things and you could squeeze one store but if you want to have 10 do the thing that cost you no time to do and then do it 10 times for example this guy was still cutting hair half his income was from him cutting hair half income is from all the chairs he makes a margin on all the chairs he rents let me just get this straight you make half your income and that income cost you no time he was like yeah I was like and the other half your income cost you all your time he was like yeah what if you just opened a second one and cut and got rid of all of your haircuts lived on the less here and open a second one because then you make the same money and now of a sudden you have double the cash flow open a third that's the the scale model