Stay Paid Podcast: $70M CEO’s Perspective on Scaling a Company to New Heights

Release Date: October 21, 2024
Hosts: Luke Acree and Joshua Steike
Guest: Justin Brock, CEO of Bobby Brock Insurance

Introduction

In this insightful episode of the Stay Paid Podcast, hosts Luke Acree and Joshua Steike delve deep into the strategies and experiences of Justin Brock, the CEO of Bobby Brock Insurance. Ranked among the fastest-growing private companies in America on the Inc 5000 list for 2023, Justin shares his journey of scaling his agency to a valuation of $70 million, navigating an acquisition, and maintaining business growth amidst shifting market dynamics. This episode offers invaluable lessons for agents and entrepreneurs aiming to elevate their businesses to new heights.

Justin Brock’s Journey and Business Overview

Justin Brock stands as a leading authority in Medicare and health insurance, having assisted over 50,000 beneficiaries through his national powerhouse agency. His agency boasts a robust community, including hosted events, virtual trainings, and a thriving Facebook community of over 13,000 members. Justin's commitment to helping agents scale their businesses is evident through his comprehensive marketing empire and strategic partnerships.

The Decision to Sell: Insights into the Acquisition Process

One of the episode’s focal points is Justin’s recent 51% sale of his business, valuing Bobby Brock Insurance at approximately $70 million.

Justin Brock [07:30]:
"We were basically at a $70 million valuation roughly, and we did a 51% deal."

Justin discusses the emotional and strategic considerations behind this significant decision. Initially aiming for a more modest goal of $250,000, Justin’s vision expanded as he gained access to more information and success stories within the industry. Observing peers successfully selling their agencies for substantial multiples, Justin recognized the importance of hedging his bets against an uncertain regulatory environment, particularly under the current Democrat administration affecting Medicare Advantage and real estate sectors.

Justin Brock [03:48]:
"Making sure that the distance between my family's perceived safety from negative impacts of the world is, you know, there's a bigger and bigger distance."

Growth Strategies: Marketing and Sales Focus

Justin emphasizes the critical role of marketing and sales in scaling his business. Inspired by thought leaders like Gary Vaynerchuk, Justin adopted a content-driven approach to attract and retain clients. By documenting his processes and sharing valuable insights, he built a substantial value ladder for the agent community, which evolved into an FMO (Field Marketing Organization) offering various paid services.

Justin Brock [06:09]:
"We built this entire other value ladder for the agent community, which turned into an FMO and some other paid services."

Under his leadership, the agency serves over a million Medicare beneficiaries, with 52,000 internal clients managed by W2 employees and an additional thousand 1099 agents collectively serving over a million policyholders. This expansive growth is underpinned by strategic online marketing and recruitment efforts, enabling sustained scaling even amidst market fluctuations.

Navigating Post-Acquisition Motivation and Control

Despite the sizable acquisition, Justin remains deeply involved in the business, retaining 49% equity. His partnership with Amerilife has been notably hands-off, allowing him to continue steering the company’s growth without undue interference.

Justin Brock [08:10]:
"They're pretty hands-off. They're investing in the entrepreneur. They're betting on you as the resource."

Justin appreciates that Amerilife respects the existing business structure, allowing him to focus on sales and marketing while they handle finance and HR. This balanced relationship has maintained his motivation, as the business continues to thrive under his leadership.

Embracing Technology and Product Diversification

A significant element of Justin’s growth strategy includes the development of proprietary software products, such as the Lee aggregation system, which leases accounts at a competitive rate. This high-margin business model not only supplements revenue but also provides scalable solutions for agents.

Justin Brock [14:25]:
"Once you get them, there's a lot of add-ons on the back end where people will pay us for additional build-outs, like setting up Facebook ads."

By offering these tools, Justin effectively diversifies his revenue streams and reinforces his agency’s market position, demonstrating a keen understanding of scalable business practices.

Learning from Industry Leaders: Trust and Adaptation

The discussion also touches on the influence of industry leaders like Grant Cardone, Brandon Dawson, and others. Justin acknowledges the importance of drawing lessons from their strategies while maintaining personal integrity and trust.

Justin Brock [19:04]:
"I just have to learn from these people and pick up some gold that they say. I don't have to buy into everything they do."

This balanced approach allows him to implement effective strategies without compromising his values, fostering a culture of excellence and continuous improvement within his team.

Cultivating Company Culture and Team Alignment

Justin attributes much of his success to a strong, invested company culture. By fostering excellence and camaraderie, he ensures that his team remains aligned with the company’s goals and motivated to contribute to its success.

Justin Brock [25:33]:
"Giving that feeling of your employees feeling invested in the success of the company because it benefits them."

Introducing new programs and training initiatives, inspired by leaders like Brandon Dawson, Justin ensures his team remains cohesive and driven, adapting to new challenges with a united front.

Work-Life Balance: The Realities of Scaling a Business

A compelling segment of the episode addresses the balance between work and personal life. Justin candidly shares his experiences post-acquisition, highlighting both indulgences and the challenges of maintaining motivation.

Justin Brock [11:23]:
"I did buy a Lamborghini Hurricane, but I sold it after five months because it just wasn't practical for where I live."

While Justin enjoys the fruits of his success through vacations and personal purchases, he underscores the difficulty of achieving a true work-life balance when scaling a business to such heights.

Justin Brock [12:37]:
"I'm in Tupelo, Mississippi. It's not exactly a Lamborghini road opinion, but I did take a lot of vacations with the family."

Both Justin and guests acknowledge that obsessive dedication is often necessary to build and sustain a large business, though they also recognize the importance of periodic breaks to recharge.

Conclusion: Intentionality and Goal-Setting

As the episode wraps up, host Luke Acree emphasizes the importance of intentionality in business growth. He encourages listeners to define clear goals and maintain focus, drawing inspiration from Justin’s journey of scaling intelligently and adapting to new information.

Luke Acree [34:06]:
"Do you know where you're going? Do you know what you're trying to build? Do you know what you're trying to accomplish?"

The episode concludes with a motivational call to action, urging entrepreneurs to take decisive steps toward their aspirations with clarity and purpose.

Key Takeaways

1. Strategic Acquisitions: Justin’s decision to sell a majority stake was driven by a combination of market conditions and personal goals, highlighting the importance of timing and valuation in business exits.

2. Marketing and Sales Focus: Emphasizing content-driven marketing and a strong sales infrastructure can significantly propel business growth.

3. Balanced Partnerships: Building partnerships that respect the existing business structure allows for continued autonomy and motivation post-acquisition.

4. Diverse Revenue Streams: Developing proprietary tools and software can create high-margin, scalable revenue sources.

5. Trust and Learning: Learning from industry leaders while maintaining personal integrity fosters sustainable growth and a positive company culture.

6. Work-Life Dynamics: Achieving a balance between professional dedication and personal life is challenging but essential for long-term success and personal fulfillment.

7. Intentional Goal-Setting: Clearly defined goals and intentional actions are crucial for distinguishing top producers from mediocre ones in any business.

Notable Quotes

• Justin Brock [03:48]:
  "What am I really trying to do? And what I'm trying to do is make sure that the distance between my family's perceived safety from negative impacts of the world is, you know, there's a bigger and bigger distance."

• Justin Brock [07:30]:
  "We were basically at a $70 million valuation roughly, and we did a 51% deal."

• Justin Brock [08:10]:
  "They're investing in the entrepreneur. They're betting on you as the resource."

• Justin Brock [14:25]:
  "Once you get them, there's a lot of add-ons on the back end where people will pay us for additional build-outs, like setting up Facebook ads."

• Luke Acree [34:06]:
  "Do you know where you're going? Do you know what you're trying to build? Do you know what you're trying to accomplish?"

Final Thoughts

This episode encapsulates the essence of scaling a business to new heights through strategic decision-making, robust marketing, and maintaining a motivated, aligned team. Justin Brock’s experiences offer a roadmap for entrepreneurs aspiring to elevate their businesses, emphasizing the importance of intention, adaptability, and continuous learning. Whether you’re contemplating an acquisition or looking to scale your operations, the insights shared in this episode provide actionable strategies to guide your journey.

Connect with Justin Brock:

• Website: justinbrock.com
• Instagram & YouTube: @justinbrock

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• Website: staypaidpodcast.com
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• Contact: podcast@remindermedia.com
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