Analyzing Profit Margins and Core Metrics in Business – Brian Will

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04/15/2024

Show Notes:

🚀 Ready to unlock the secrets of business growth? 💼

✅ Discover how to delegate, reinvest profits, and scale successfully from a restaurant chain owner to a real estate mogul.

🔑 Learn the core metrics that could save your business from failure and propel it to new heights!

INTRODUCTION AND ABOUT BRIAN WILL

Welcome back to “Think Business with Tyler,” where we dive deep into the entrepreneurial minds that are reshaping our business landscape. I’m your host, Tyler Martin, and today we are joined by a remarkable guest, Brian Will—an accomplished business owner with a small chain of restaurants, a real estate company, and an executive consulting business under his belt.

In this episode, we’re going to peel back the layers of Brian’s multifaceted business journey—how a simple suggestion from an employee led to a thriving restaurant business, the critical role of delegation, and the art of mastering operational analysis for business success. Brian is here to stress the importance of reinvesting profits into the company’s growth rather than splurging on personal luxuries, a strategy that has served him well across his diverse ventures.

But this conversation isn’t just about profits and management—it’s about the intricate dance with failure and the power of metrics. We’ll hear Brian’s candid insights from his own exit experiences, including a tale involving a virtual sales center and his brush with venture capital. Plus, he’s gearing up to launch a new book, “The Invisible Multimillionaire,” packed with real-world advice on scaling businesses and cultivating generational wealth.

Brian will also share his thoughts on hiring the right second-in-command to manage visionary chaos, navigating family business dynamics, and fostering a culture of ambitious laziness to achieve an enviable work-life balance. As we tackle the fear of losing control and the essential lessons learned from failure, get ready for an episode that’s as inspiring as it is enlightening.

So, whether you’re struggling with a stagnating venture or looking to scale your business and possibly prepare it for a profitable exit, Brian’s pragmatic approach and Tyler’s insightful commentary promise to leave you with actionable tips and new perspectives. Stay tuned, as this is an episode of “Think Business with Tyler” that you don’t want to miss!

QUOTES

1. “You have to live on your bare minimum for a good while and reinvest. People think as the business grows, so should their lifestyle. But you keep your lifestyle pretty much the same, and you reinvest in personnel and infrastructure. That’s the game changer.”

2. “Businesses don’t track their gross profit correctly, and as soon as you don’t know your gross profit, you’re guessing – and that’s why a massive amount of businesses fail. You can have sales through the roof, but if you’re not profitable, it doesn’t matter.”

3. “Bringing someone in as a second in command can help entrepreneurs who tend to be visionary and chaotic to focus. You have to recognize what you’re good at and what you’re not, and bring in a solid CEO or operator to complement your skills.”

4. “It’s not about control; it’s about the growth. A lot of business owners are afraid to let go because they fear they’ll lose control of their company. But you have to get out of that fear-based thinking and move towards thinking about growth and excellence.”

5. “When you sell your business, there can always be that sense of regret, wondering if you could have gotten more. But you have to understand the deal – especially the earn-out terms – and be happy with your decision because after you sell, it’s no longer your company.”

FUN FACTS

1. Brian Will became a restaurant owner based on an employee’s suggestion after he often ordered off-menu items.

2. Brian has written three books and is about to release a fourth one, titled “The Invisible Multimillionaire.”

3. Tyler Martin and Brian Will share anecdotes about the value of learning from failures, with Tyler recounting a client’s ultimate success after multiple business failures.

LESSONS LEARNED

Delegation: Growth Beyond Control
Brian underscores the necessity of delegation for business expansion. Initially, entrusting tasks to employees may trigger setbacks; however, this process is essential for operational refinement and prosperity. By allowing room for employee mistakes, owners foster an environment conducive to learning and development. Delegation liberates the owner from daily minutiae, enabling focus on strategic growth and the ability to tackle larger endeavors. Brian’s journey illustrates that effective delegation ultimately strengthens a business’s foundation.

Smart Reinvestment Equals Success
Entrepreneurs often face the temptation to upgrade their lifestyle upon seeing profits. Brian advocates for a counterintuitive approach, advising owners to maintain minimal personal expenses and funnel profits back into the business. Investment in personnel and infrastructure catalyzes sustainable growth and long-term success. This strategy positions the company for scalability and establishes a solid operational base. Such reinvestment lays the groundwork for future prosperity and enterprise stability.

 

Core Metrics Drive Profits
Command over core business metrics is vital, Brian Will explains. An ignorance of gross profit leads many enterprises to speculate and, subsequently, fail. By examining core metrics, owners can discern trends, forestall profit erosion, and set informed financial targets. Brian emphasizes the power of pattern recognition in historical data to preempt financial challenges. This analytical approach ensures the company’s ability to hit financial objectives, promoting stability and growth. A CFO for small businesses can help determine the core metrics for your business.

Learning from Failure’s Wisdom
Embracing failure as an instructive tool is critical for entrepreneurial triumph, as Brian conveys through narratives of his own experience and others’. Failure should be viewed as a stepping stone, with each stumble providing valuable lessons for future endeavors. Brian stresses that failure unredeemed by learning begets further failure, whereas insight gained from missteps can propel one towards success. Leaders who capitalize on their errors fortify their strategies and bolster their resilience, paving the way for eventual victory.

TAKE ACTION

1. Analyze Core Metrics: Identify the key performance indicators (KPIs) critical to your industry and business model. Consistently track these metrics to understand financial trends, operational effectiveness, and growth opportunities. Utilize historical data to predict future profitability and make informed strategic decisions.

2. Practice Effective Delegation: Reflect on the areas of your business that could benefit from delegated responsibility. Assign tasks to employees or executives who have the competency to tackle those responsibilities while allowing room for failure and learning. This step encourages ownership among team members and frees up your time to focus on high-level strategic growth.

3. Reinvest in Your Business: Commit to living on a budget that meets your basic needs and reinvest the surplus profits back into your business. Allocate funds towards developing personnel, improving infrastructure, and reinforcing systems that enhance operational efficiency and scalability, laying the groundwork for sustainable expansion and eventual exit readiness.

LINKS

Instagram

Brian’s Site

Linkedin

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