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- [00:01]
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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.
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A lot of like retail and even service businesses have a very similar format. 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 normally a store manager, an assistant manager and then you know, anywhere from four to eight techs. So that's going to be at its like unit level, store manager, system manager for whatever. Like you need to be able to run, you know, the location and to start like if you're just getting started in your business, most likely you are going to fill, you know, probably the like store manager role. So you're going to start, you're going to start as a store manager. You're going to be the one who like learns the business. Like when I was started, like I ran stores for years because I had to learn every aspect of the business. But eventually you are going to have an opportunity to grow and you are going to find another location to acquire or to open. And so now your goal, and I'm just going to write sa, you know, whatever in text. So it's the same thing just multiplied. And your goal is to say, hey, I'm going to take this assistant manager and I'm going to promote them to be the store manager. And then on my second location, so this is location one, this is location two. I'm going to go out and ideally hire another store manager, another assistant manager to be able to take it over. Maybe during the transition you might 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 kind of depends on the system. But your goal is to really be able to remove yourself from the day to day in terms of being out of the role, that is the person who sells the work, who manages the crews, who like, who does all the things and you know, and then your role becomes what we call like a district manager where you are overseeing, you know, 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, 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 to provide support. And so. And at this time, you were probably also doing, 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 kind of have these two divisions that you do. So as you start to scale, right? So you're like, all right, on 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, max out my stuff. All right, that's where we're at. 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 I was, when I was in this role, it's somewhere between four to five. It really depends on how much time is 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 down here and then this is each store. So then as this district manager role, you're overseeing five stores and doing all this other crap that you got to do to run the business, right? Overseeing that focused on growth and having time for your friends and family. And then once you can get to that point that says, I've got now these 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 still got like, you, you still got your admin team over here and we've still got, you know, you're still focused on growth over here. And that dm, that district manager, a lot of their time is going to be spent on all that stuff that we talked about earlier, which was for me, it's hiring and it's some of the like customer stuff. So you get customer complaints, you just have issues that they're going to 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 be resolved at the store level. We got to give refunds, we got to 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. 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 profits of these two stores, like the profit, let's say you're paying this person 100 grand a year. 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 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 is what I did, right? So it's like I had this DM and maybe they're over. Let's say, you know, seven stores and then you find another acquisition or you know, you do your development play because there's some guys that doing another. And so now you have two DMs, and now you're sitting in this role, I'm going to call it a coo. But basically your job as the owner is to oversee the DMs, continue to focus on growth, and then it continues to scale. That says, hey, if you can oversee two DMs with seven stores each, there's really no reason that you can't oversee 4. 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 higher, you know, hiring and training of these people, right, of the district managers. Because that's what gives you the most leverage. Because be able to grow and scale you your efforts 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.