Carlos and Sal detail exactly how to grow a multi-million-dollar business. Everything from the first person you should hire, the CRM you should use to the trick question to ask prospective employees, they outline every step of the process.
INTRO TO CARLOS AND SAL
-They started their business less than 4 years ago. They have built a multi-million-dollar real estate acquisition business that currently operates in 15 states
FIRST STEP TO SYSTEMATIZE
-Their business did not grow until they put people, processes, systems and spent money on their business.
THEY WOULD DO HAND WRITTEN BANDIT SIGNS JUST TO SAVE MONEY
-Investors are afraid to spend money on their business. But you must be able to spend money to grow your business. That separates the massively successful business from the mom-and-pops. They saw investors all doing the same thing. Their first three marketing campaigns cost $2,500, but they were so afraid to spend money. They paid themselves $5,000 and put the remainder back into the business.
THEY HAVE 25 PEOPLE IN THE 2,500 SF OFFICE, BUT HAVE OVER 75-100 ON THEIR TEAM
WHAT STEPS DID YOU TAKE TO SYSTEMATIZE
-The first hire was an acquisition manager, this freed up their time to actually focus on growing the business. Systematizing is the foundation. They approached it as growing a company that they could retire under.
ESSENTIAL POSITIONS IN THE COMPANY
-Junior Acquisition Manager (Follow Up Manager) – Make sure no leads fall through the cracks
-Chief Financial Officer
-Business Development Manager
IF LEADS ARE FALLING THROUGH THE CRACKS, HIRE A JUNIOR ACQUISITIONS MANAGER
-If leads are not a problem, hire a closer. Hire according to what you need or lack. If a lead has not been touched in 7+ days, the Jr. Acquisition can take that lead. The Acquisition Manager’s commission drops if a Jr. Acquisition brings the lead back to them.
EVERY BUSINESS HAS A DIFFERENT NEED
-Figure out who is the visionary, integrator. The start of your business is your lead flow. If no leads are coming in, you will have no business.
LEADS ARE FALLING THROUGH THE CRACKS
-Is there no follow up? Are you using the correct CRM?
CHOOSING THE CORRECT CRM
-A CRM is critical to scaling your company. The foundation is the CRM system. Multiple foundations in a company. For example, in marketing, data is the foundation. They chose Podio because it is highly customizable. You can build a lead flow and work flow.
WINGING IT LEADS TO MISTAKES
-Having processes in place is critical to growth. It is like having a hole in your boat, do you keep patching the holes or do you just build a new boat.
IF YOU DON’T KNOW THE PROCESSES, IT DOESN’T MATTER WHAT CRM YOU HAVE
-You can create a process on a napkin, but many investors don’t even know the processes to start.
-The Hercules System – has all the kinks worked out to be scaled.
WHAT IS THE HIRING PROCESS?
-99% of their team is from social media. People must know who you are and what you are doing. Many people confuse marketing for vanity. If people know you are successful, they will be attracted to that. You will attract successful people. Also, social media is free. The standard hiring platforms, Indeed, etc., did not seem to work for them. If they follow you on social media, they likely know your culture.
EMPLOYEES MUST HAVE YOUR SAME CORE VALUES
-And they must share your core values and your company vision.
IF YOU CAN HIRE SOMEONE AT 70% OF YOUR SKILL SET, IT IS WORTH IT
-You can gain more than 70% by the time you gain back by hiring someone.
BE SLOW TO HIRE AND FAST TO HIRE
-It can cost hundreds of dollars to allow a non-producer to linger in a company.
AS A GOOD COMPANY LEADER, YOU MUST BE ABLE TO KNOW WHAT SOMEONE’S TALENT
-Someone may apply for a job doing one thing, but you see they are better at another position. Spot talent, and foster growth. You cannot teach work ethic.
YOU MUST PAY ATTENTION TO YOUR BUSINESS
-In order to spot talent, catch problems before they get out of hand.
HIRING AN ACQUISITION MANAGER
-Do their core values align with yours and
-What is your home life like?
-What have been doing for the past 5 years?
-Why are you leaving you current position?
–Are they a people person?
-Are they genuine, caring
–Are they a problem solver?
–Are they a closer?
-Someone who is accustomed to the commission-based lifestyle
ASK “WHAT WAS THE FIRST THING YOU DID TO EARN MONEY?”
-If they were working at a young age, they are likely entrepreneurs. It is OK to have all entrepreneurs in your business.
IF THEY CAN’T CLOSE YOU ON WHY THEY SHOULD HIRE YOU, THEY ARE NOT A CLOSER
-They have a small water fountain in the office. They ask their biggest skill, they say “building a rapport.” They tell them to sell them the water fountain, and the person tries to sell the water fountain right away without building any rapport. You must give them unexpected questions and tasks that throw them off their game.
KNOW YOUR NUMBERS. WATCH YOUR KEY PERFORMANCE INDICATORS
-If KPIs go down in a market, one employee or whatever, be aware of it. Track ROI on absolutely everything. Exactly how much return do you get on specific marketing campaigns. This will tell you where the money needs to be spent.
SET INTENTIONS AND RELEASE EXPECTATIONS
1.What must you be willing to do to scale your business?
2.What would be the first hire when scaling a company?
3.Why is it important to systematize?
4.Why is hiring from free social media platforms better than traditional hiring platforms?
5.Why should you be alright hiring someone who has 70% of your skillset?
6.What is fundamental to know about hiring?
7.What is the most important thing to know in order to grow your business?
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