The Org Secret That Lets Me Add Locations Without Adding Hours | 353

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Transcript

SPEAKER_00 0:00

Welcome back to the Business of Beers Podcast, your daily dose of strategies, tools, and tips to help you build an eight-figure business. Today's episode is a clip from one of my YouTube lives. If you'd like to hear the whole thing, there's a link below in the description. Cheers. A lot of like retail and even service businesses have a very similar format.

SPEAKER_01 0:23

So think of this as like a single unit. And a single unit for me could be an automotive store. For somebody else, it could be like a Domino's pizza. If you're a territory-based business, like you do window cleaning or something like that, you could think of it like a truck, like a truck that runs. And so, yeah, our stores, we have a normally a store manager, an assistant manager, and then you know, anywhere from four to eight ticks. All right. So that's going to be at its like unit level. Store manager, assistant manager, four day tech. So whatever like you need to be able to run the location. And to start, like if you're just getting started in your business, most likely you are going to fill uh, you know, probably the like store manager role. So you're gonna start, you're gonna start as a store manager, you're gonna be the one who like learns the business. Like when I was starting, like I ran stores for for years because I had to learn every aspect of the business. But if eventually you are going to have an opportunity to grow, and you are gonna find another location to acquire or to open. And so now your goal, and I'm just gonna write uh SA, you know, whatever, in text. So it's it's the same thing, just multiplied. And your goal is to say, hey, I'm gonna take this assistant manager and I'm gonna promote them to be the store manager. And then on my second location, so this is location one, this is location two, I'm gonna go out and ideally, you know, hire another store manager, another assistant manager to be able to take it over. Maybe during the transition, you might like go over here and act as a store manager because it's new and you're trying to get it off the ground. Either way, um, kind of kind of depends on the system. And but your goal is to really be able to remove yourself from the day-to-day in terms of like being out of the role that is the person who sells the work, who manages the cruise, who like who does all the things. And you know, and and then your role becomes what I what I what we call like a district manager, where you're overseeing the two locations. And most likely every single day, you are going to be in one of the two locations. You are probably going to be the assistant, you know, that there's two days off here, two days off here, so four days a week, you're in the stores with one of them. You just like rotate the schedules uh to provide support. And so, and and at this time, you are probably also doing um you know all the admin stuff. That's no fun. And you're also thinking about growth. You're thinking about how do I continue to grow this business. So you're you you kind of have these two divisions that um you do. So as you start to scale, right? So you're like, all right, I'm this DM, I'm the small business owner, I've got these two stores, I oversee, I hire everybody, I'm focused on admin, but then I also need to be able to focus on growth. That's where I like you know max out my stuff. All right. Um that's where we're. And as you start to focus on growth, and as you start to have more and more opportunities, you should also have the bandwidth to be able to take on another location, right? I would think I would when when I was when I was in this role, it's it's somewhere between four to five. It really depends on how much time is like spent on some of these other things. And if you're just hopping on SA is like store manager, system manager, techs. So we have store level teams, right, um, down here, and then this is each store. So then as this like district manager role, you're overseeing five stores. And doing all this other crap that you gotta do to run the business, right? Overseeing that, focused on growth, uh and having time for your you know your your friends and family. And then once you can get to that point that says, I've got now um you know these these five five locations, that's the time that you should be able to have enough cash flow to make that that single hire for that that district manager who can now be the one to be the person to directly oversee the stores. So now you as the owner are overseeing them. You've still got like you, you still got your admin team over here, and we've still got uh, you know, you're still focused on growth over here. And that DM, that district manager, a lot of their time is gonna be spent on all that stuff that we we talked about earlier, which was for me, it's it's hiring, and it's some of the like customer stuff. So you get customer complaints, you just have issues that you know they're gonna have to they're gonna have to deal with, and then training. It's like their main job, at least in my organization, are these three things. If you can read my chicken scratch, it's hiring, like dealing with customer complaints and issues, things that can't can't be resolved at the store level. We gotta give refunds, we gotta fix it, make things right, and training the new people. But that role should be able to go up to about seven locations in my business. All right, and so maybe you hire them when you've got five, but then as you are focused on growth, now you can add plus one here, plus two here. And ideally, the the profits of these two stores, like the profit, let's say this person, let's say you're paying this person a hundred, a hundred grand a year. Um ideally, you know, each one of these stores can make a hundred. So it's like the first one goes to paying them, basically, and then the second one now is like incremental incremental growth. That's that's how you start to think about it. And then this system just repeats at every level. So like you may have, you know, like this this is what I did, right? So it's like I had this DM, and maybe they're whoops, um, over let's say you know, seven stores, and then you know, you you you find another acquisition or you know, you you do your development play, because there's some guys that you know are doing another, and so now you have two DMs. And now you're sitting in this role, I'm gonna call it a COO. Um, but basically your job as the owner is to oversee the DMs, continue to focus on growth, and then it continues to scale. It says, hey, if you can have if you can oversee two DMs with seven stores each, there's really no reason that you can't oversee four. Because the process of what they are doing, because now you as the COO are not dealing with like store level problems, right? You you are primarily focused on training, hire, you know, hiring and training of these people, right? Of the district managers. Because that's what gives you the most leverage. Because to be able to grow and scale, you you your efforts and in like brain power, you have to duplicate as much as you can. And you great you get the greatest leverage where it's like, man, I can pour all my knowledge into this person, and then that one, that one person, maybe it's only eight, maybe he he or she can only execute at 80% of what I can do. But 80% times seven more stores is way more leverage than what you could do kind of on your own.