Built Online Podcast – Episode 87 Summary: Lessons from a $2 Million Business Journey with Maxwell Nee

Release Date: February 3, 2025

In Episode 87 of Built Online, host Cody McGuffie engages in an insightful conversation with Maxwell Nee, an accomplished entrepreneur and investor. Maxwell shares his journey from struggling through the initial phases of his business to scaling it to a $2 million annual revenue. Throughout the episode, Maxwell imparts valuable lessons, discusses the challenges of personal branding, the importance of building sustainable business assets, and his perspectives on investing and entrepreneurship.

1. Overcoming the Initial Learning Curve

Maxwell kicks off the discussion by highlighting the significant challenges faced in the early stages of entrepreneurship.

Maxwell [00:00]: "It doesn't matter how smart you are, how much money you have, if you're doing something new, there's always a learning curve... that was the dumbest way to go through a learning curve."

Maxwell candidly shares that during the first 12 to 18 months, his business barely made any profit. Despite previously earning a substantial salary of $100,000, his venture only generated about $28,000, resulting in a loss. This period was fraught with financial strain and personal burnout, serving as a harsh introduction to the realities of starting a new business.

2. Building a $2 Million Business in Under Two Years

Transitioning from the struggles of the initial phase, Maxwell recounts the rapid growth of his business.

Maxwell [02:29]: "I built a two million dollar year, which we got that to that point in less than two years. So that was very fast growth."

Maxwell achieved remarkable growth by selling high-ticket courses priced between $1,500 and $10,000. By the end of the two-year period, he had over a thousand clients and conducted more than 2,000 sales calls personally. His hands-on approach extended beyond sales to managing advertisements, operations, hiring and firing over 50 employees, and handling various other facets of the business.

Maxwell [02:55]: "You know, so I did everything, I ran the ads, did the operations, hired and fired more than 50 people."

3. Transitioning from Services to Courses

Maxwell explains his strategic shift from offering digital marketing agency services to creating and selling courses.

Maxwell [05:03]: "I started selling services, digital marketing agency services... which told me what I need to know to then build the course."

Initially, Maxwell launched a digital marketing agency, providing services such as Facebook ads and email marketing. This hands-on experience and client base informed the development of his course offerings. By packaging his services into educational content, he was able to scale his business more efficiently, leveraging higher profit margins inherent to digital products.

Cody McGuffey [07:12]: "You had a face, your Facebook ads?... you grew this thing to 2 million a year."

4. The Challenges of Personal Branding and Scaling

A significant theme of the conversation centers around the difficulties Maxwell faced due to the intertwining of his personal brand with his business.

Maxwell [08:18]: "When people just love your brand so much and they're buying your brand because of you... it's very hard to detach yourself from the business."

Maxwell highlights that as his personal brand became a cornerstone of his business's success, scaling became increasingly problematic. Delegating sales roles led to a drastic drop in conversion rates from 80% to 40%, underscoring the unique influence his personal presence had on sales efficacy.

Maxwell [10:35]: "If you're a bit of a superstar in your business, there's not going to be another superstar."

This dependency on his persona limited the scalability and sustainability of the business model, ultimately leading Maxwell to conclude that he would approach entrepreneurial ventures differently in the future.

5. Building Sustainable Business Assets

Reflecting on his experiences, Maxwell emphasizes the importance of creating business assets that work independently of the founder.

Maxwell [17:48]: "If I was to do it all over again, I would focus on building assets that outwork me rather than building a sales machine."

Maxwell advises aspiring entrepreneurs to develop assets such as books, which can serve as authoritative and credible tools to educate potential customers. By creating a comprehensive guide or informational product, businesses can establish themselves as thought leaders without relying solely on personal branding.

Maxwell [20:04]: "A book creates authority. Book creates credibility."

He contrasts this approach with traditional sales and advertising methods, illustrating how books can generate leads more cost-effectively and build a sustainable pipeline of qualified prospects.

6. The Role of Books in Business Strategy

Maxwell delves deeper into the strategic use of books as business tools rather than mere revenue generators.

Maxwell [29:54]: "A book is the ultimate relationship building tool... it transpires living, breathing, dead time, space."

He argues that books should be designed to promote the author's personal brand and business offerings, rather than being sold independently as standalone products. This perspective aligns with his broader strategy of using content as a means to establish authority and drive business growth.

Cody McGuffey [31:09]: "It doesn't go all the way around the circle."

Maxwell likens the creation and use of books to running a podcast—both serve as platforms to provide free value, build trust, and indirectly promote the business's core offerings.

7. Investment Strategies and Preferences

Shifting focus to investments, Maxwell shares his philosophy and criteria for selecting investment opportunities.

Maxwell [35:03]: "I look at three things at any investment... the team, the revenue model, the uniqueness."

He prioritizes investments in companies with strong, aligned teams composed entirely of "A players." Additionally, he favors revenue models that are recurring and sticky, ensuring long-term sustainability and potential for retirement funding. The uniqueness or competitive advantage of the technology is the final critical factor, ensuring that the company can maintain a durable market position.

Maxwell [37:17]: "Yeah, the Moat Beautiful."

Maxwell outlines his preference for "boring" businesses—those that offer essential, non-trendy products with consistent demand. Examples include pest control for restaurants and simple, indispensable consumer products. He believes that such businesses provide stability and lower risk compared to more volatile, trend-dependent ventures.

Maxwell [40:15]: "If you're in business to make money instead of expressing yourself creatively, like the best is to have both."

8. Embracing Boring Businesses

Maxwell champions the idea of focusing on "boring" businesses that fulfill fundamental needs over flashy, trend-driven enterprises.

Maxwell [43:24]: "So the button on that need on that urgency button is just glowing. You just gotta press it."

He cites industries like waste management and HVAC as prime examples of sectors that offer consistent demand without the volatility associated with consumer trends. Maxwell underscores that while these businesses may lack the glamour of B2C brands, they provide reliable income and lower operational risks.

Cody McGuffey [43:50]: "But it's certainly a need that you serve with the market."

Maxwell's preference for these sectors is rooted in their stability and the minimal need for constant innovation, allowing entrepreneurs to focus on efficiency and scaling rather than chasing fleeting market trends.

9. Self-Awareness in Entrepreneurship

A recurring theme in Maxwell's advice is the importance of self-awareness and aligning business endeavors with personal strengths and preferences.

Maxwell [47:25]: "Know yourself... build your business around yours."

He differentiates between "worker bees" who thrive on consistency and incremental improvements and entrepreneurs like himself who prefer short, intense sprints. Recognizing one's natural inclinations allows for building businesses that align with personal working styles, ultimately leading to greater satisfaction and success.

Maxwell [51:10]: "Know yourself is the key to that."

Maxwell encourages entrepreneurs to assess their strengths and weaknesses and to design their business strategies accordingly. Whether one is more disciplined and systematic or prefers dynamic, high-energy projects will significantly influence the types of businesses that are best suited to their personalities.

10. Maximizing Learning and Mentorship

Maxwell shares poignant advice on navigating the entrepreneurial journey, emphasizing the value of mentorship and early failure.

Maxwell [54:00]: "If I had the luxury of learning from a really good entrepreneur for three months, I would have gone through the same learning curve."

He advocates for aspiring entrepreneurs to seek out mentorship roles, such as becoming an executive assistant to a seasoned entrepreneur. This approach allows for gaining invaluable insights and practical experience without the financial risks associated with failing early on.

Maxwell [57:26]: "Failure early, failing faster, failing cheap."

Drawing parallels to successful figures like Jeff Bezos, Maxwell underscores the importance of long-term, data-driven decision-making and persistence. He encourages entrepreneurs to adopt a decade-long vision, understanding that sustained focus and accumulated knowledge will yield significant advantages over competitors.

11. Rapid Fire: Personal Insights

In the episode's rapid-fire segment, Maxwell shares quick insights into his personal preferences and philosophies:

• Favorite Business Books: Over Subscribed (written by his business partner) and Outsiders by William Thorndike.

Maxwell [51:43]: "It's about... studying CEOs who didn't fit the typical CEO mold and outperformed others by significant margins."

• One Thing He Wishes He Knew Before Starting: The inevitability of a learning curve and the importance of strategically navigating it.

Maxwell [52:48]: "There are three ways to go through a learning curve... invest, apprentice, or find another method."

• Definition of a Creator: Someone who creates value in any form, whether through content, products, or services, and takes control of their own narrative.

Maxwell [59:40]: "A creator is someone that's taking the steering wheel of life into their own hands."

• Should Everyone Be a Business Owner? Maxwell believes that while anyone can pursue entrepreneurship, it requires a specific skill set and passion for business operations. Not everyone is suited to be a "gold medalist entrepreneur."

Maxwell [60:15]: "If you have no interest in business... then you're not going to be a gold medalist entrepreneur."

12. Final Thoughts and Contact Information

Maxwell concludes the episode by reiterating the significance of strategic planning and aligning business ventures with personal strengths. He encourages listeners to embrace both creative and practical aspects of entrepreneurship to achieve lasting success.

For those interested in connecting with Maxwell or exploring his ventures, he is available on LinkedIn under the name Maxwell Nee.

Key Takeaways

1. Navigating the Learning Curve: Entrepreneurship involves inevitable challenges and financial strains during the initial phases. Proper planning and strategic decision-making are crucial to overcoming these hurdles.

2. Personal Branding vs. Scalability: While personal branding can drive significant growth, it can also limit scalability if the business becomes overly dependent on the founder’s persona.

3. Building Sustainable Assets: Developing business assets like books can establish authority and generate leads without relying solely on direct sales efforts.

4. Investment Philosophy: Prioritize investments in stable, essential sectors with recurring revenue models and strong, aligned teams to ensure long-term sustainability.

5. Embracing Boring Businesses: Focusing on fundamental, non-trendy industries can provide reliable income and lower operational risks compared to volatile, trend-driven markets.

6. Self-Awareness and Alignment: Understanding one’s strengths and aligning business strategies accordingly can lead to greater satisfaction and success in entrepreneurial endeavors.

7. Value of Mentorship: Seeking mentorship and learning from seasoned entrepreneurs can provide invaluable insights and help navigate the complexities of business growth.

Notable Quotes:

Maxwell [00:00]: "It doesn't matter how smart you are, how much money you have, if you're doing something new, there's always a learning curve."

Maxwell [04:25]: "Capex, meaning capital expenditures."

Maxwell [09:11]: "We've all had that feeling, right?"

Maxwell [17:48]: "I would focus on building assets that outwork me rather than building a sales machine."

Maxwell [24:25]: "What's the best tool to educate people? A book."

Maxwell [35:03]: "I look at three things at any investment: the team, the revenue model, the uniqueness."

Maxwell [47:25]: "Know yourself is the key to that."

Maxwell [59:40]: "A creator is someone that's taking the steering wheel of life into their own hands."

This episode is a treasure trove of entrepreneurial wisdom, offering listeners a candid look into the highs and lows of building a successful online business. Maxwell Nee's experiences and insights provide a roadmap for aspiring entrepreneurs aiming to navigate their own business journeys with foresight and strategic planning.