Episode 010: 5 Stages of Repair Business Growth – Part 2 – Cellular Repair School

Episode 010: 5 Stages of Repair Business Growth – Part 2

ABOUT THIS EPISODE

In this episode Will and Josh talk about Stage 0: Ideation and Stage 1: "Wantrapreneur" of the 5 unique stages of cell phone repair business growth.  They also answer an audience question regarding "How start a repair business while keeping my costs as low as possible?"

WHAT YOU'LL LEARN:

Discover how to identify what stage you or your business is in, the challenges at each stage and how to grow to the stage that you want to reach.  You'll also learn how to start a cell phone repair business without going giving up your life savings or going into debt by "dipping your toes in."

AskWill+Josh 010 EPISODE TRANSCRIPT:


Will:  Let's do it.

Josh: Let's go.

Will: All right man, we're back.

Josh: Man, I actually just went in today, it feels like we've been away for, I think I say this every time.

Will: Yeah, yeah.

Josh: Right?

Will: Yeah.

Josh: Because it always feels good to be back. This one was a good break though man, we've been busy.

Will: I know we're really busy. It's been crazy, crazy busy.

Josh: It actually has.

Will: Actually, I've been feeling to get back though. It's almost like I feel like I've been missing something, you know what I mean?

Josh: Well, we have, right?

Will: Yeah.

Josh: Because we're now connecting with our students, with the audience and really helping them. It's funny because we kind of get caught up in our own world of what we do.

Will: Right.

Josh: We don't get the opportunity to share that all the time, so it's always cool when we get to kind of reflect.

Will: Exactly.

Josh: It's a reflection moment for us.

Will: Exactly.

Josh: To be able to kind of open up and share, open the kimono.

Will: Exactly.

Josh: Right?

Will: But I will tell you what the benefit of that is, is we have a lot of ideas of what to talk to our people about.

Josh: Right.

Will: In between time and in the meantime, so I do like that aspect of it.

Josh: Right. That's true man, yeah, it gives you that perspective.

Will: Exactly. This will be great to talk about, man this will be great ().

Josh: Hey put a pin in that.

Will: Put a pin in there. So, with that being said what are we talking about in this particular episode?

Josh: Well, the last one we put a pin in, right?

Will: Yes.

Josh: Was we were reflecting on where this industry is versus where it was way back in the day when we started with the repair stores.

Will: Right, exactly.

Josh: And like 3 years ago we did a segment, we did a webinar about the 5 stages of repair businesses.

Will: Exactly.

Josh: Right?

Will: I remember that, I remember that.

Josh: Yeah, so we're like you know what let's dust that off and dive back into this.

Will: 5 stages of the repair business.

Josh: Right.

Will: Very interesting.

Josh: So, exactly. So, what this is is kind of a deep dive into identifying where you are in your business.

Will: Right.

Josh: And where you want to go.

Will: Right.

Josh: Right? So maybe you are where you are, right?

Will: Right.

Josh: And we're going to help you identify what works and where your challenges are, so even if you don't want to grow to the next stage, you're going to at least say let me solve this problem so you can remove yourself from the business and remove that heartache at least, right?

Will: Exactly, exactly.

Josh: So, when we say stages, all the stages really are, again we actually it's not quite 5 that's technically a little weird, but it is, it's 0 to 5, right? So, there are 6 stages, but what we identified was by revenue and there are two actually key markers to this, right? Is revenue and the amount of team members you have, but they go hand in hand.

Will: Right.

Josh: Because as your revenue goes up, you need people to help you.

Will: Exactly. Actually everything goes up.

Josh: Yes.

Will: So that's one, identifier when one marker goes up such as people, right?

Josh: Right.

Will: Everything else tends to go up.

Josh: That's right.

Will: Right? And I guess it would be the same way in the opposite direction too. As things go down, everything else tends to go down.

Josh: Yeah, exactly. Now, there are unique businesses like software businesses where you can get larger scales of economy.

Will: This is true, this is true.

Josh: Right? You can do, you can generate way more revenue with less people.

Will: This is true, right.

Josh: But this is a service business which is why we created this specifically for the repair business.

Will: Exactly.

Josh: Because service businesses have things that need to be serviced.

Will: Exactly

Josh: We have to service people.

Will: Exactly.

Josh: So, when you service people you need people to help you service those people, right?

Will: Exactly, exactly, for sure.

Josh: Yeah. Man, I don't know what's going on here. Oh, how did that get through. I thought I had that on airplane mode.

Will: It happens, it happens.

Josh: Oh look at that.

Will: Joshua got a phone call, he's a very important person, so that's what happens when you're VIP and you're live on, right?

Josh: Yeah.

Will: You got to take those phone calls. I guess the thing would be if you're not getting phone calls then you should be worried, right?

Josh: Well, typically. I'm okay with getting back to that place to be honest with you. I'm all right looking back there.

Will: Right, right, right. Get that time (), you don't need to

Josh: Right?

Will: Yeah, you don't need

Josh: We just cut the amount of phone calls down a little bit.

Will: Exactly.

Josh: Just a little bit.

Will: Exactly. So, let's dive into it.

Josh: Yeah, so we're just going to start at a high level.

Will: Okay.

Josh: As far as like let's talk real quickly about the stages and then we'll dive deeper into each one of them.

Will: Okay. So, what are the stages? We're talking about 5 stages of the repair business.

Josh: Right. So again it's deceiving because there are technically 6, right?

Will: Right.

Josh: But stage 0 we don't count for this reason.

Will: Right, yes.

Josh: So it's 0 through 5. Stage 0 is what we call ideation.

Will: Right.

Josh: Ideation is just you're not actually in the business, you haven't committed to this yet, this is an idea that you have that you're doing research, right?

Will: Right.

Josh: But it's important enough for us to want to talk to about it, because there are some challenges that you face when you're in there and there are certain things you need to know to figure out whether you want to take the step into the next stage.

Will: Yeah.

Josh: And we'll come back to that as far as what that looks like.

Will: Actually, I think ideation is one of the most important parts of this process and we actually focus a lot on this because in the education business ideation usually is the customer that calls us and the customer we talk to first, so we're one of the first points of contact for a person in the ideation stage.

Josh: Right.

Will: Because a lot of times they've done the research a little bit, but they want more information.

Josh: Right.

Will: And we've been in that place where we’ve actually talked to these guys and we have to answer a lot of questions, removing blanks.

Josh: You got to fill in the blanks.

Will: Fill in the blanks.

Josh: A lot of fill in the blanks.

Will: Exactly.

Josh: Right?

Will: So ideation is a very important part, it is a very important part.

Josh: For sure. Everything starts, anytime you start a business or anything it always starts at ideation.

Will: Exactly.

Josh: Right.

Will: Exactly.

Josh: And there's processes you can put in place to help you with, if you're there and that's why we created this stage ideation is because through the years what we've seen with this business is a lot of people start there.

Will: Yes.

Josh: They don't know if this is the right business for them or not.

Will: Exactly.

Josh: So they need basic information to even understand whether it makes sense to jump into stage 1, right?

Will: Exactly. And I think it's important to also say before we jump into the next one Josh is that ideation regardless of what business you're getting into and you kind of said this already, but I want it to be clear that ideation is a typical general space for anybody looking to start any business.

Josh: Any business.

Will: Any businesses, it’s not just the cellphone repair business, but it's any business when you're looking to move to that next level.

Josh: For sure, in fact it's funny because throughout the years I've started multiple businesses, I got side deals with software and different things we’ve build and when I brought in other team members, it always started with an idea.

Will: An idea.

Josh: Right?

Will: Right.

Josh: It's an idea.

Will: Yes.

Josh: List it down and figure this out, but you have to invest time into growing that and flushing out whether it makes sense.

Will: Right.

Josh: Can we monetize it or should we, is this aligned with what we want to do and that's why we call it the ideation stage.

Will: And what are some of the problems we see in ideation stage, because I can say with that

Josh: Well, we're going to come back to it.

Will: Well, I think on top of that is ideation at the ideation stage you can get trouble by and I just want to make this a point, you can get troubled by jumping passed the ideation stage.

Josh: Yeah.

Will: If you really don't understand what it is and how important is which is why we're talking about it.

Josh: Right.

Will: If you forgo or you move too fast through the ideation stage it could be a detriment to the rest of the process.

Josh: Right, and really it is planning.

Will: Yes, it is. It is planning

Josh: That's what that is, right?

Will: Yeah.

Josh: So, that's why we gave it a stage.

Will: Exactly.

Josh: Stage 0 Ideation, right?

Will: Because that's important though, so we want to make sure you got ()

Josh: It really it, it truly is, everything starts there and we want it to identify you if you're in that stage.

Will: Yes.

Josh: Because we don't want to tell you that's not an important stage.

Will: Exactly.

Josh: And there are tools that you need to help you move to the next stage.

Will: Exactly.

Josh: Or you could figure out this is not the right thing for you.

Will: Right.

Josh: So you can go ideat in a different industry.

Will: Boom, that's it.

Josh: Right.

Will: So fireball..

Josh: Boom, yeah. Fire. Was that yoga fire. Man, I just went back to Street Fighter. So stage 1 is what we call onetrepreneur, right?

Will: Yes.

Josh: And that's not a derogatory term by any means, right? But you want to be an entrepreneur which is why we called it the onetrepreneur.

Will: absolutely.

Josh: Right?

Will: Yeah.

Josh: And here's why we say that.

Will: Yeah.

Josh: It's because entrepreneurialism right now is super-hot, everybody oh I'm an entrepreneur, I'm an entrepreneur.

Will: It is hot.

Josh: I'm a CEO, right?

Will: Yeah.

Josh: CEO coma OOO, right? Like everybody is like this is what it's all about.

Will: Yes.

Josh: But at the end of the day there's a lot of work involved in being entrepreneur and a true entrepreneur actually is more than just themselves.

Will: Yes.

Josh: Right?

Will: Yes.

Josh: And that's why we deem this stage onetrepreneur and in fact we split the stage into two parts.

Will: Right.

Josh: So one is this is a side gig for you.

Will: Yes.

Josh: So this is something you do on the side like if you're an Uber driver.

Will: Right.

Josh: Right?

Will: Right.

Josh: It's not something, you're not doing it full time, you're just doing it on the side to make some extra money.

Will: Yeah, it's not paying all your bills, it's not the majority, it's not the thing that's supporting your lifestyle

Josh: Right. It's just adding to it.

Will: Just adding to it.

Josh: And you're figuring out it's almost an extension of ideation.

Will: Exactly.

Josh: Because you're testing it, right?

Will: Exactly.

Josh: To see if this is something that works, can you build it into something that allows you to skip the tipping point that we call.

Will: Hence the word, hence the word side gig.

Josh: Right.

Will: Right?

Josh: And then there's the tipping point to where you can flip over and now you are fully self-employed.

Will: Right.

Josh: Right? But you're a team of one.

Will: Yes.

Josh: An army of one.

Will: Yes.

Josh: Right?

Will: Yes.

Josh: So that's why we call you onetrepreneur because at this point you want to build a business, but you actually are self-employed.

Will: Exactly.

Josh: Right?

Will: I think at this point it's important to point out that, and I think the word would be for me is committed, right?

Josh: Yeah.

Will: Whereas before you're not totally committed to the side gig.

Josh: That's why we used to call it the toe dipper.

Will: Exactly.

Josh: Right? You're dipping your toes, in fact if you go back through the history of Cellular Repair School and you check out some of the other trainings we do.

Will: Right.

Josh: Establish that blueprint.

Will: Right.

Josh: Hint, right?

Will: Go get it.

Josh: Go get it, right?

Will: Go get it.

Josh: But this is what we talk about. This is the concept of a toe dipper.

Will: Right.

Josh: A toe dipper is a side gig.

Will: Exactly.

Josh: That's what that is versus fully committed.

Will: Yeah.

Josh: Right?

Will: Yeah.

Josh: And there's different ways you can build that.

Will: Exactly.

Josh: But yeah, so this is stage 1 and again we're going to comeback, I'm just want to kind of lay it out for you real quick and then we'll come back and dive deeper into them, right?

Will: Right.

Josh: So, obviously as you progress through stage 1, you go stage 2.

Will: Stage 2.

Josh: So stage 2, now you've got a few employees, two to three, you've hired a couple of people, you've had your first hire, maybe two, right?

Will: Right.

Josh: You got a small team. It's no longer you anymore now, this is what we call the new employer stage, right?

Will: Yeah, this is a very important stage.

Josh: Yeah. There are a lot of challenges at this stage.

Will: A lot of changes, lot of challenges, lot of development in this particular part of the stage.

Josh: Exactly.

Will: For sure.

Josh: But this is one of the most exciting stages.

Will: It is.

Josh: It's because now you've got other people that do things.

Will: Exactly, exactly.

Josh: Right? That you would normally be doing, so you have multiplied your powers.

Will: Exactly.

Josh: But you have the challenge of managing these personalities.

Will: What are we saying here this could be, this could be TNT or this could be nitro.

Josh: Yeah.

Will: It's totally up to how you manage it or it could be a black hole.

Josh: It could be a black hole.

Will: Exactly, but you have to believe in yourself you can always do it.

Josh: For sure.

Will: It's just a matter of having skills and knowing how to do it.

Josh: For sure. And again, we're going to come back and tie these in because what we've seen through the years, we've been this 10 years guys, right? Literally have coached tens of thousands of people.

Will: Right.

Josh: In the cellphone repair business.

Will: Right.

Josh: In addition to experience outside of the cellphone repair business, and these things actually stay pretty true to any business, but this is specifically there for the repair business. So we're going to tie in and show you like how you can kind of know what stages you're in, right?

Will: Exactly.

Josh: Right now obviously we're talking about the employee aspect of it.

Will: Yeah, yeah.

Josh: That's an easy way to tell.

Will: We just want you to understand the stages, so we have 0, 1, this is number 2, right?

Josh: Right. And you might not be square into 1, you can straddle some.

Will: Right, exactly.

Josh: Sometimes, right?

Will: Exactly.

Josh: So I don't want to be like this is black and white.

Will: Exactly.

Josh: But it's good to kind of get a marker to where you're at, so you know where you're at.

Will: Right.

Josh: You can figure out where you want to go.

Will: Right.

Josh: Or you can plant your flag and say this is where I want to be.

Will: And I think that's important because different people will hear this audio obviously and they come in at different places. So it's important to understand that everybody doesn't come in at the same place.

Josh: Right.

Will: Some people will come in at the ideation stage, some people will come in at the onetrepreneur stage.

Josh: Right.

Will: Some people will come in at the new employer stage and some people will come in at the next stage which is?

Josh: Which is stage 3?

Will: Right.

Josh: Which is what we call a consistent business.

Will: Exactly.

Josh: So now you have 4 to 10 employees, right? You got a decent sized team going.

Will: Right.

Josh: There are some challenges with that, but there are some exciting opportunities that come with that.

Will: Yes.

Josh: Right? And there are some unique revenue levels that you start to hit that allow you to do things that you couldn't do when you were stage 3 and under, but there's unique challenges that come up that prevent you from going to the next stage, right?

Will: Yeah.

Josh: So we're going to dive deeper into that.

Will: We'll get into that.

Josh: And so, you know guys actually we've experienced all of these things throughout the years. So, we're not talking about anything that we haven't personally experienced. Personally, seeing our students and clients and coached people to go through.

Will: Right.

Josh: This is real, this is what we've experienced and what we see day in and day out.

Will: Yeah and what we also understand with these stages guys is you don't necessarily have to evolve to every stage.

Josh: No.

Will: Right? It's literally what your capabilities are, what your wants are, what you want to do, you might get to stage 3 and say hey, I'm content.

Josh: Right.

Will: It's up to you, right?

Josh: Exactly.

Will: We're getting into that S word which is scalability.

Josh: Scalability.

Will: Exactly.

Josh: So, that's kind of what the next driver is, right? Because this next part now when you get into stage 4, this is actually a one double M business. So, now your business is generating 1 million dollars in revenue plus per year.

Will: Yes.

Josh: Right?

Will: Yes.

Josh: Now, let me tell you no matter where you're at, that is a very hard number for a lot of businesses to cross.

Will: Right.

Josh: Right? We've crossed it, we've been fortunate enough to cross that in our businesses.

Will: Yes. A lot of hard work, a lot of hard work.

Josh: We've had a lot of hard work.

Will: Dedication, focus.

Josh: And there are some unique challenges that come there, but I say that because a lot of businesses don’t make it. There's literally, I want to say out of, we should have looked up the stat actually.

Will: Right.

Josh: But I want to say it's like under 10% of US businesses actually ever reach the 1 million dollar mark.

Will: It's very small.

Josh: Yeah.

Will: It's very small.

Josh: It's super small.

Will: It's super small.

Josh: Yeah. It is very challenging to do.

Will: Yes.

Josh: But once you figure it out.

Will: Yes.

Josh: Then you can start to dial it in and grow it, right?

Will: Right.

Josh: So at this stage now

Will: To go back to your data with the number of people. So, just to give you guys a perception. At the ideation stage, right? To give you a number, to put a number to it, a hundred million, so let's just say a hundred million, right? At the ideation stage. At the one double M stage, 700 thousand.

Josh: Yes.

Will: Right? 700 thousand.

Josh: Yes.

Will: So there's a big difference between 100 million and 700 thousand.

Josh: So to be clear on what he's saying is that there's over a 100 million people or businesses at stage 0. When you get to stage 4, there are literally only 700 thousand businesses that ever really hit that mark.

Will: Exactly.

Josh: Now put this on perspective to go from stage 3.

Will: Yes.

Josh: At stage 3, there's 1.9 million.

Will: Yes.

Josh: 1.9 million.

Will: Right.

Josh: So to go to stage 4, 700 thousand.

Will: That’s that million threshold. That is that threshold that we talk about.

Josh: That's that revenue threshold.

Will: That's that revenue threshold.

Josh: That's a big marker.

Will: That's a big marker.

Josh: It is an emotional and mental block and it is a challenge in many more ways than you think because it's not just sales.

Will: Right.

Josh: Because now you're managing 4 to 10 people, there's a lot of different problems.

Will: Exactly.

Josh: You know with personalities, you're dealing with breakdowns in your systems or the fact that you don't have, there's a lot and we're going come back to some of these things, right?

Will: That fire you're putting out there everyday, there's a lot of things to manage basically.

Josh: Right.

Will: And what you have to be able to do it and we'll talk about it more, but in the scalability sense you have to be able to teach people to do what do or you can't do it all yourself. So, we'll get deeper into what that’s like.

Josh: And to that point our goal is to keep this on time.

Will: Right, for 15 minutes.

Josh: So, what I'll tell you is our goal is we already knew going into this that we probably won't be able to cover all of this in one episode.

Will: Right.

Josh: So, we're going to crush it down into a few episodes as possible.

Will: Right.

Josh: But this is probably going to be a multi-episode series because the information is that important.

Will: Actually, I think we could do it based on the time and based on what we're doing, I think it's good right now just to identify those stages.

Josh: Right, yeah obviously keep it going.

Will: And then what we'll do is we'll come back in the following episodes and break each one down.

Josh: And break each one down and go a little deeper, yeah.

Will: Absolutely.

Josh: I think that's a good plan.

Will: Yeah.

Josh: Again, our goal is just to educate you.

Will: Yeah.

Josh: Hopefully you can identify where you're at, we're you want to go or say, you know what let me plant my flag, this is where I'm at, I'm good.

Will: Right.

Josh: Get the beach share out and chill, right?

Will: Exactly.

Josh: So again stage 4 is the 1 million dollar mark.

Will: The market.

Josh: That means that your business has crossed the 1 million dollars a year in revenue mark.

Will: Big marker.

Josh: Very very, if you've crossed this so far.

Will: Congratulations.

Josh: Fantastic job.

Will: Yeah, you've done a great job.

Josh: Right? If you want to get there, but you're struggling, right? We've got some resources to help you get there.

Will: Exactly, exactly.

Josh: So the next stage, stage 5.

Will: Yes.

Josh: This is a growth focused business.

Will: Right.

Josh: Right? This is much different. You have to think about it, right? Like when you start a business sometimes you just want to get, you just want to replace your job. To go from wanting to just replace my job, to go into a growth focused business is significantly different.

Will: Right.

Josh: Because now you have a mission, you have a vision and you have core values that are going to help drive you beyond that, because at this stage, right now you got 25 to 100 people plus.

Will: That's a lot of people.

Josh: So a lot of people. You have a unique set of challenges that you've never experienced in smaller stages of this business that really take unique skillsets to get passed.

Will: Right.

Josh: In fact when you see a lot of startup companies, it's funny because obviously we talked about how sexy entrepreneurialism is, right?

Will: Right.

Josh: And we promote entrepreneurialism, I believe in it.

Will: For sure.

Josh: I'm not trying to degrading in anyway.

Will: Yeah, I think it's great.

Josh: Right? But I like to put the real spin on what it is when you choose this hard life.

Will: Right.

Josh: This is a hard life man, like you are sacrificing a lot of time and energy and

Will: It's a grind.

Josh: Yeah, it literally is.

Will: It's grind

Josh: But you're doing it usually because you have a big focus on making a change somewhere, right?

Will: Right, yeah.

Josh: So, what's interesting and what I was going to mention is when you see growth focused companies that start to cross those revenue thresholds.

Will: Yes.

Josh: Like let's look at any tech company in the last 5 to 10 years. What happens is especially when you got outside investors that come in.

Will: Yeah.

Josh: Right, because you might be looking for outside investment at this point. Typically what they want to do, get rid of the leadership.

Will: Yeah.

Josh: Let's get rid of the leadership, put our own leadership in. Why is that? Because the leadership currently that grew the business to that stage does not have the skills to grow it beyond that.

Will: Right.

Josh: Right?

Will: Right.

Josh: And most CEOs and founders of businesses don't, and that's why you see CEOs from outsiders brought into companies because those guys don't have the skills necessary

Will: To take it to the next level.

Josh: To take it to the next level.

Will: Yeah.

Josh: Right? Around the people and the systems and the values.

Will: Yeah.

Josh: And the visions and all of those things that are necessary.

Will: Those are very, very specific skills that are needed to take it to that level, right? It is not necessarily the skills to get it there, but it's the skills to take it to the next level, and a lot of times that is a differentiation. You don't have to be the same person, I see it in sports, we see it in sports all the time. Like the guy that actually gets the team to where it needs to be is not necessarily the guy that takes it to the next level.

Josh: That's right.

Will: Right? To get it where it needs to get over that hump to win the championship.

Josh: That's right.

Will: And so a lot of times there's a different set skillsets, there's a different set of experience, it just is what it is, right.

Josh: That's right.

Will: So yes, I agree with you 100%.

Josh: Absolutely man. And to kind of tie it in, I don't want to go too deep into it because I know we're going to circle back.

Will: Right, we're going to circle back.

Josh: But obviously we mentioned that stage 4 was the 1 million dollar threshold.

Will: Right.

Josh: So now you're well beyond the 1 million dollar, right? You're up to, this is 3 to 10 million, right?

Will: Yes, yes.

Josh: And obviously there are stages beyond 10.

Will: Yes.

Josh: But to put it in perspective like you mentioned.

Will: Yeah.

Josh: So if 700 thousand businesses make it into stage 4, which is 1 million.

Will: Which is 1 million?

Josh: 300 thousand makes it to stage 5.

Will: So, we just knocked off 400 thousand?

Josh: Yes.

Will: Right? Is that right? Did I do my math right?

Josh: Yes, you did.

Will: Yeah, okay.

Josh: Yes, you did.

Will: Yeah. That's a big decrease.

Josh: Yes, it is.

Will: But it shows how significant the increase is.

Josh: That's right, exactly.

Will: The ability to increase because you have that decrease. Everybody doesn't make it to this level, to this stage.

Josh: That's right.

Will: Right?

Josh: It's a very tough stage to go to.

Will: Right.

Josh: And not everybody has to go there.

Will: You don't have to, yeah.

Josh: Yeah.

Will: Yeah.

Josh: Again I mean this is your own goals.

Will: To be successful I think it's important to identify what success is.

Josh: For you.

Will: And success is important to identify what success is for you, and that's not necessarily every stage, right? It could be, success it could be stage 2 for you. Actually, success could be stage 1 for you.

Josh: Right.

Will: Right? Having a side gig that pays extra bills and

Josh: Yeah, but this other job I've got, it covers my medical and I got my benefits and

Will: That can be success, right?

Josh: Yeah.

Will: We're just identifying the levels.

Josh: Yeah, there's not judgment man. This is unique to everybody, right?

Will: Exactly, exactly.

Josh: Your situation, your mileage may vary as we used to say, right?

Will: But it's important to know.

Josh: It is.

Will: Just in case you want to aspire to get to the next stage, right?

Josh: Right. Or just to know where you are, right?

Will: Right.

Josh: And again we're going to come back and we're going to start talking about what's needed to move, like how to identify really what level you're at.

Will: Right.

Josh: And how you need to, the challenges that you might see at each stage and how you can solve some of those challenges to move to the next stage if you want to.

Will: Sweet.

Josh: Or maybe how you can even starts to systemize things, so you just live life on cruise control in the stage that you're in.

Will: Exactly.

Josh: Right?

Will: So, let's do this. Josh lets go ahead and kind of go through.

Josh: Yeah.

Will: Once again what the stages were.

Josh: Okay.

Will: Right? Kind of do a

Josh: So again we got 6 stages.

Will: 6 stages.

Josh: 5.

Will: Right.

Josh: 0 to 5, right?

Will: Right.

Josh: So 0 is ideation.

Will: Right.

Josh: Right? One, onetrepreneur where it’s a side gig or you're self-employed.

Will: Right.

Josh: Stage 2 it means that you're a new employer.

Will: Right.

Josh: Stage 3 is a very consistent business.

Will: Right.

Josh: Stage 4 is a 1 million dollar plus business, and stage 5 is a growth focused business.

Will: So those are the 6 stages?

Josh: Yeah, those are technically the 6, but it will come 5 stages of business.

Will: Yeah.

Josh: Because stage 0 still, it really isn’t a business idea, right?

Will: Right. Yeah.

Josh: So, that's really the 5 stages of business growth for repair businesses.

Will: Right.

Josh: And I'm excited to dive in deep and really kind of like tear these apart.

Will: Me too, dissect things.

Josh: And share what we've seen throughout the years, right?

Will: Yeah. I can't wait to dive into it, and I think it's good. Again, what I think you guys should take from this at least this episode if you're starting here, is really again identifying where you are in these stages, right? Are you in the ideation stage, are you in the onetrepreneur stage, are you in new employer stage, like which stage are you in based on the characteristics and the settings that we’ve set up and given you guys. Identify what that is and as we continue in future episodes to go deeper in each one these characteristics or each one of these stages really dive in, get your pen, get your paper, like really do your homework, really take from us our experience, we're going to do deep dives, right?

Josh: Right.

Will: We're going to really get deep, we're going to dive deep, we're going to help you guys understand what the challenges are for this stage, we're going to help you guys to understand how to get to the next stage, and we might even give you information on how to jump the stage.

Josh: Maybe, yeah, hopefully, hopefully.

Will: Right?

Josh: I mean I think you got to go through every stage, it's kind of like learning how to walk, you don't just pop up, you know what I mean?

Will: You kind do, yeah, yeah. Exactly, exactly.

Josh: But you can get there more quickly.

Will: Yeah, if you can really understand and maybe you've done something in your life where you've already experienced another stage and you're just at, in this particular example, you're in this stage, so it maybe will help you get to the another stage faster, but I think it's really important to do the homework, right? Do the homework. Understand, take notes, right? And understand where you are so you can understand where you need to go and where you don't want to go. That's very big, I think it's important to understand because we're going to be talking about that. How not to go necessarily go the wrong direction and what the focus onto move in the right direction.

Josh: Right.

Will:  So, we're going to be doing that in future episodes.

Josh: Yeah. In the next episode we're going to dive right in.

Will: Yeah.

Josh: Dive right in, right, dive right into the next stage.

Will: So, what can they can expect in the next episode. Are we going to start at ideation?

Josh: We might actually combine depending on how deep we go.

Will: Yeah.

Josh: We might combine ideation and stage 1.

Will: Okay.

Josh: So it just depends.

Will: I think that's a good idea.

Josh: I think it depends, but I like it because it all kind of it's the beginning.

Will: Exactly.

Josh: So I think it's just, it's nice to just ball it all up and show like the challenges and how you can quickly move through each one of them.

Will: For sure, 100%.

Josh: Right?

Will: Yeah, I like that. I like that, I like that one, I like that a lot. I'm excited, actually I'm excited.

Josh: I am too. I am too man. We haven't talked about this in a while.

Will: Yeah.

Josh: Again, it's funny because we have taught this three years ago.

Will: Right.

Josh: But it was like a 20 minute segment.

Will: Yes.

Josh: Basically what we just did.

Will: Yes.

Josh: Right?

Will: Yes.

Josh: We need go deeper to really give some tools and resources and just mindset about how to identify where you are, right? Get your emotions aligned and get your expectations aligned about what you need to do to move to the next stage if that is what you want to do.

Will: Exactly, exactly.

Josh: what I also say is if you are just a technician working in a business, this is still valuable information.

Will: Exactly.

Josh: Because the thing with the repair business is most of the repair businesses are still early stage businesses.

Will: For sure. Most of them.

Josh: Right? Yeah.

Will: I would say 70 to 80%.

Josh: Majority of them. Yeah. So, what I would say is even if you're just a technician, right?

Will: Right.

Josh: And you feel like well, it's not my business, so I don't really care about this topic. But I'll tell you is I think that if you can learn this and embrace to learn this information and you can go back and share it with your manager or your store owner, whoever it is, right?

Will: Right.

Josh: You can help to influence and mold the growth of that company which adds value for yourself and for your organization.

Will: For sure ().

Josh: So, I think it's very important man, never ever put the blinders on to learning.

Will: Right, yeah.

Josh: This is an important topic. If you're in the repair business and I promise you that most repair businesses are actually very early stage businesses.

Will: Yeah, 100% true.

Josh: There's a lot of growth that can happen and you can be a pivotal component of really achieving that next growth for your organization.

Will: Exactly. There's a lot of opportunity, and that kind of piggy back what Josh is saying, anytime things are really early, but very high in demand that means there's a lot of opportunity, right? And so what we see and what he's talking about is there's a lot of opportunity in regards to the need for this type of understanding, because once you start to understand what you will be able to do is start to identify where that understanding fits and we've seen it. We've had people who worked with us in the past, move on to do great exceptional things by what we've taught them, right?

Josh: Right.

Will: And it's based on understand and information, and then what they do is they take that understanding and they take that information and they capitalize on the opportunity to move into spots that they see that information is very valuable, and so we've had happen quite a few times.

Josh: Yeah.

Will: With people we've actually trained. We've seen them go off and do wonderful things.

Josh: Fantastic things.

Will: Fantastic things, so it's important, that's my point. My point is simply it's like understand in regards to where you are, whether you're a technician like Josh is saying whether you're a technician, no matter where you are in this business if you can really understand a full understanding of the full evolution which is really what we're talking about, when we're talking about stages of business we're talking about the evolution of business, right? And that goes from obviously ideation to growth focused, right? And everything in between.

Josh: Right.

Will: And When you focus on that, right? And you understand that then you understand okay, what do I know, what I don’t know, where do I need to go and how can I fit into somebody else's plan potentially.

Josh: Right.

Will: Right?

Josh: How can I add value.

Will: To add value.

Josh:  At the end of the day, right?

Will: Yeah.

Josh: You should always be asking yourself how can I add value.

Will: Exactly. It doesn't necessarily have to be you moving the needle.

Josh: Right.

Will: It can be you supporting somebody else to help

Josh: Exactly. It can be you sharing idea.

Will: Exactly.

Josh: Right?

Will: Exactly.

Josh: Because the other thing in this business that we've seen throughout the years is that not everybody in this business is business savvy.

Will: Exactly.

Josh: Right?

Will: Exactly.

Josh: A lot of times you have people in this business because it was an opportunity, but they aren't business savvy.

Will: Right.

Josh: So, they don't actually know everything and I'm not, by the way I'm not professing to know everything, right?

Will: Right. Exactly.

Josh: I'm a continuous student like you say all the time.

Will: Well, we do that too. We find, it’s like Josh used the, he used an analogy once in a previous show we had at Voltron and a lot of times it takes finding the hand or finding the other hand or finding the foot or finding the head, right? That fits into your plan.

Josh: Yeah. Business is a team sport.

Will: Exactly.

Josh: It's a team sport man.

Will: Definitely, it's a team sport.

Josh: It really is.

Will: You can't do it all yourself.

Josh: No, you cannot.

Will: You cannot do it especially when we talk about number 5.

Josh: Right.

Will: Even number 4, even number 3, right? Even number 2.

Josh: Right.

Will: Right? Because everything that is outside of yourself in terms of meeting someone else to support it requires you to have the ability to educate, teach, share, motivate goals, values, it's all of that kind of stuff.

Josh: It's a lot.

Will: It's all that kind of stuff.

Josh: Yeah, it's a lot, but that's

Will: But people put some respect on that.

Josh: Yeah, you put some respect on that.

Will: You better put some respect on that.

Josh: But that's the exciting part of it.

Will: Right, exactly.

Josh: That's what makes it fun, that's part of the journey, that's part of your personal development, that's part of your growth.

Will: Right.

Josh: Right? That's why we choose this life of entrepreneurialism is to change to the world.

Will: Exactly.

Josh: And we change the world through people through people.

Will: Through people. That's the most important, most important

Josh: Boom, I'm going to leave it like that. I'm just going to drop the mic and walk out.

Will: People, people, definitely people. People, people and we often say and we’ve said this before anything worth doing, anything that’s a service word outside of yourself you know what I'm saying is how does it go, I think it's significance, what's the word.

Josh: You lost man, I don't know.

Will: Yeah. Anything of significance.

Josh: Anything of significance.

Will: Right?

Josh: Yeah.

Will: AOS, anything of significance that requires people outside of yourself, right? Or serving something outside of yourself requires people to help you.

Josh: That's true.

Will: People assisting you in reaching that goal, right?

Josh: Yeah.

Will: And that's, I know it took a minute to get that out.

Josh: Yeah, you stumbled the ball.

Will: (), but

Josh: It's the truth though.

Will: You know it's the truth. You know what I mean?

Josh: Yeah.

Will: Anything of significance requires this and people, right? People helping you fulfill that significance.

Josh: Yeah. Well, again if you look at any business.

Will: So you can do it yourself. Yeah.

Josh: And you look at the stages that we just outlined as we dive deeper into them.

Will: Exactly.

Josh: Which you'll notice the key factor that's attached to the revenue growth is the people growth.

Will: It is.

Josh: It doesn't happen. They don't stay at three people to hit a million.

Will: No.

Josh: It doesn't happen.

Will: It's not even possible, I don't think.

Josh: I mean maybe certain businesses.

Will: Well, like you said software maybe.

Josh: Yeah, maybe.

Will: Maybe, even there I don't know.

Josh: I mean you might need more than three, maybe, I don't know.

Will: I mean.

Josh: I'm not in the software business like that, so

Will: A Couple of software businesses sold

Josh: Even then that's three, that's not one.

Will: Exactly. So you still got to play your part, right?

Josh: Exactly.

Will: So yeah. So what we can do at this point, right? And I think we hit that pretty good, so you guys understand just to repeat one more time the 5 or 6 stages of business, right? Ideation.

Josh: Yeah. Ideation.

Will: What's the next one Josh?

Josh: Onetrepreneur.

Will: Onetrepreneur. New employer.

Josh: New employer.

Will: Consistent business.

Josh: Yeah.

Will: One double M business.

Josh: Yeah, 1 million plus.

Will: 1 million plus.

Josh: And then a growth focused business.

Will: So, identify where you are, tune into future episodes, right? And understand that we're going to break these down and get more specific and hope you guys understand exactly how to move, navigate, what problems you may encounter in each of these and that's pretty much it.

Josh: Right.

Will: Right?

Josh: We leave time to answer questions today, because we got a question I think that could be tied into this.

Will: Let's do it, let's do it.

Josh: Right? So.

Will: We've got 30 minutes, so let's do it.

Josh: Yeah, yeah, so we're trying to make this one brief.

Will: Yes, let's do it.

Josh: Because obviously again in case you don't know go onto our website cellularrepairschool.com.

Will: Yes.

Josh: Click on the blog, go down and submit your questions. This is a Q and A show, so we get our topics to talk about to you through the things that we get through your feedback forms.

Will: Exactly.

Josh: And we select the question every show that we will highlight and dive deep into. So, if you have a good question that we think applies to a lot of people outside of just your specifics

Will: cellularrepairschool.com.

Josh: Right? We will answer that question. So, tonight's question comes from, hopefully I'm pronouncing this right, it's Kervin Ferrera and he asks

Will: Mr. Ferrera.

Josh: He asks, that might be a miss, I don't know.

Will: Or Ms. Ferrera okay.

Josh: What is the acceptable profit margin for a cellphone repair business?

Will: Acceptable profit margin for a cellphone repair business, that's across the board, right? That's an across the board question, so we're not talking about per repair?

Josh: Yes. What's the acceptable profit margin for a cellphone repair business?

Will: Okay.

Josh: So what I would it actually goes right into the 5 stages of business, right?

Will: Right.

Josh: Because part of what we need to do and you might put a pin in this.

Will: Yes.

Josh: What we need to do is we need to really dive into what is profit, right?

Will: Yes.

Josh: Which we've done before and again that is in, I think we teach that in seven stages of cellphone, right

Will: Seven stages, go get it.

Josh: Of success.

Will: Yes. How can I get that again? Seven stages

Josh: You need to go right at cellularrepairschool.com and it's on our website, you can get the seven stages, I think we sell it for $7.

Will: And we talk about that.

Josh: It's a killer course, we go into it mini course.

Will: Yes.

Josh: But we dive into all of this sort of stuff,

Will: Which is part of the ideation stage?

Josh: That's right. Yeah, so if you're in that early stage and you're not sure you want to do this, that's why we have it there for you for 7 bucks, right?

Will: Exactly.

Josh: Cheap, low commitment, you got to put sometime in, but it's going to answer all of these types of questions for you.

Will: Right, yeah.

Josh: But to answer your question Kervin, what I would say is man that depends, I don't know, right? And I hate to answer questions like that, right?

Will: It was, yeah, yeah.

Josh: Because what I've seen throughout the years.

Will: Yes.

Josh: In every business.

Will: Right.

Josh: Is that yes, there are acceptable profit margins in certain industries, but at the same time every business is built on a profit margin of operation.

Will: Right.

Josh: Some businesses can run on very thin margins. Some businesses because of whatever value they add to their customer base need much fatter margins to operate.

Will: Right.

Josh: So, I'm not going to give you this, I mean I am going to give you this generic answer, but at the same time I'll tell you that it does vary based on what it is that you are trying to accomplish.

Will: Right.

Josh: So one of the things that we teach in the seven step repair success blueprint.

Will: Right.

Josh: Is how to identify what your goals are, because it's one thing to say well, I'm making 50% profit margins.

Will: Right.

Josh: Right?

Will: Yeah.

Josh: And then you can have someone else's like I'm making 10% profit margins, but that's not the end all be all.

Will: Right.

Josh: Because your 50% might take you 100 hours to accomplish.

Will: Yes.

Josh: Where his 10% might take him 30 minutes.

Will: Yeah.

Josh: So which one is the sexier business model?

Will: Yeah.

Josh: Right?

Will: There's a word for that, I just can't think of what it is. When you put it in that into perspective, right? And I think it's understanding, you can't just, I think the question is it's a very specific question, but it doesn't take in a lot of variables in regards to how you do at the end of the day.

Josh: Right and honestly at the end of the day the variables come down to you.

Will: Yes.

Josh: Right? And they come down to you and what it is that you're trying to achieve. So, what I will do to help answer this question and so you know I'm not trying to be political, I'm really trying to answer your question, but I want to define what profit margin means to me.

Will: Right.

Josh: Right? Because

Will: Let me ask you a question. Mr. Josh

Josh: Yes sir.

Will: What is profit margin mean to you?

Josh: Man, everything. It's the only thing. Hey, you want to know the answer, ask my wife what it means. She knows.

Will: She knows.

Josh: For real.

Will: Yes.

Josh: At the end of the day, right? This is not an accounting course, but there are two things that I look at when we talk about profit margins, there’s gross margin and then there's net profit margins, right?

Will: Right.

Josh: So, when we talk about gross margins, you can think of that as like when I sell an LCD screen, right? And this ties into the stages deeply. When I sell an LCD screen repair and I charge a 100 bucks, right? And I'm just using numbers, right?

Will: Right.

Josh: This might not be your actual cost, right?

Will: Right.

Josh: But let's say I charge a 100 bucks for LCD repair and the screen costs me 30 bucks.

Will: Yes.

Josh: I made $70 gross margin. If it's me doing the repair

Will: Which is ridiculous.

Josh: Right? Now, if I'm paying a technician $20 an hour to do that repair and it took him 30 minutes.

Will: Yes.

Josh: Right? Well, now my cost of goods sold is the $30 of the LCD plus 30 minutes of my $20 an hour technician time, which is an extra $10 and now I'm into this for $40.

Will: Exactly.

Josh: So now I'm making $60 gross margin, that means just the cost of the good, so it's the service or the repair or the product minus the cost of the good is your gross margin.

Will: Right.

Josh: Net profit margins however are completely different and will be different between everybody's business, because that ties into what you rent.

Will: Yeah.

Josh: How much do you need to pay your employees?

Will: Yeah.

Josh: Right? How much does it cost for your insurance, right?

Will: Yeah.

Josh: What are your utility bills?

Will: Operational costs.

Josh: Yeah, these are all of the things that are unique to your business and your geographic location and your negotiation abilities and all these different things, right?

Will: Right.

Josh: So, one of the things I got taught years ago by my mentor, right? Is this golden rule of net profits, right? And it's funny because it sounds silly when you listen to it because the margins sounds small, but I'm going to come back and put it in perspective for you.

Will: Okay.

Josh: Right? So, if your business is making 5% net profit margins, you are on life support, right?

Will: Yes.

Josh: Your business is on life support and you need to figure some things out because your time is limited.

Will: Right.

Josh: Right? If you are making 10% net profit margins, you have a healthy business with opportunity to grow.

Will: Right.

Josh: Right? Man, we should put a pin on this because we can go way deeper on this.

Will: We can go, yeah.

Josh: There's a lot on this one, because I can't even explain all of the things that play into this and why this is so important.

Will: Yeah, we'll put a pin into it, we'll come back to this.

Josh: Let's put a pin into this, because this is an important one.

Will: Yeah.

Josh: Right? If you are making 15% or more net profit margin, take it while you can, because it's not going to be long before your competitors come in and shrink that margin down.

Will: That's a gold rush.

Josh: Right?

Will: You're doing that.

Josh: Take it while you can, so you hear business opportunities that make 20, 30, 40% net profit.

Will: Yeah.

Josh: Man, get it while you can.

Will: You're right.

Josh: Get the bags out, back the truck up, load it up.

Will: Right.

Josh: Right?

Will: Yeah.

Josh: Because there will be a day when your margins shrink.

Will: Yeah.

Josh: That is economics 101.

Will: For sure.

Josh: It happens unless you have some sort of monopoly.

Will: Yeah.

Josh: And you do, it had off to you.

Will: Yeah. Evolution of business, evolution of technology, evolution of competition.

Josh: Right.

Will: Right, all of these things drive your profit margins down.

Josh: Exactly.

Will: What you have to be is very creative, this is where and you keep your thoughts, I don't want you to lose your thought.

Josh: Yeah, yeah.

Will: But this is where you have to be very explore, you have to explore, you have to be creative, you have to always be thinking about how we can sustain

Josh: Analyze.

Will: Analyze

Josh: You got to be analytical.

Will: Yeah, you got to be analytical. What works, what doesn't work, right? This is what we've always teach in the business portion of our classes and our instructing which you can find at cellularrepairschool.com.

Josh: That's right.

Will: But we teach business also, so and what we always taught was how to explore, always be questioning, looking, reviewing, analyzing what's working, what's not working, customer interaction, what the customers are actually asking for.

Josh: Upsell opportunities.

Will: Upsell opportunities, all of these things.

Josh: Right? How to squeeze more margins out of every repair.

Will: Exactly. You have to, because what happens what we see it so often is people get comfortable in making that 15%.

Josh: Right.

Will: They get comfortable in making that 20%.

Josh: Right and they think they base their whole model on that.

Will: And they think it's going to be around forever.

Josh: And if shrinks back, if it shrinks back to 12 or 13 or 11%, guess what?

Will: Exactly.

Josh: They have a harder time surviving because their whole model is built of needing that 15 points.

Will: Exactly.

Josh: Right?

Will: And they’ve set it up that way. They've got to the point where they have to get that because that's how they actually operate.

Josh: And again, this is net profit, so there's a lot of variabilities between the gross margin and the net profit.

Will: And the longer you stay away from being that creative and analytical mind in terms of analyzing what's going on in your business, the harder it is to get back to it. So, what I suggest and I'm sure Josh follows me on this is you should always always, right, take a day, take two days, take a week in that month, right? And schedule out that time to actually reflect.

Josh: Yup.

Will: Right

Josh: You need to review, you need to look at your numbers at.

Will: And analyze and review and look at your numbers, this is where a lot of people get in trouble, they don't really go about the numbers and they don't really analyze the numbers and they don't really understand how their business is, it's really the health, the health of your business is in the numbers.

Josh: Right.

Will: It's on the details, right? Which we always talk about the details. how important the details are, and the details are in the numbers.

Josh: Right.

Will: And what you need to do is you need to be analyzing, reflecting, going back ().

Josh: Again, I'm going to tell you why this is such a good topic.

Will: Yes.

Josh: We need to put a pin in is because there's still, right? When you look at net profit and things like that that's what we call a lagging indicator.

Will: Right.

Josh: That's telling you what happened in the past.

Will: Exactly.

Josh: Right? But there are certain things that you can do on the front end in what we call leading indicators, right?

Will: Right.

Josh: That can already predetermine what your lagging indicators looks like.

Will: Right.

Josh: Right?

Will: Right.

Josh: Which would be around marketing, sales, leads, acquisition, you know.

Will: Right.

Josh: Different things like that.

Will: You got to go deep, you're going a little deep.

Josh: I know, I know.

Will: You lost about half of our audience, right? Do not, no disrespect, no disrespect to any of you guys, right? But when you start talking about that kind of stuff, you lose people really quick.

Josh: Yeah, yeah, I know. I didn’t want to put that out though, because that's, there’s still a difference of how we look at it, right?

Will: It is a difference, it is a difference and we're going to take you guys down that route. But we want to do it slow, controlled, and so you understand exactly what we're talking about, right?

Josh: Right. And if you want to know. If you don't want to know we won't have to cover it.

Will: Yeah, exactly.

Josh: If you want to talk about tiny bots, we'll talk about tiny bots.

Will: Exactly, exactly.

Josh: Right?

Will: Yeah.

Josh: So hopefully Kervin that helps.

Will: Hopefully that helps.

Josh: But again, let me reiterate. Gross margin versus net margin.

Will: Right.

Josh: Right? When we look at gross margin and this is your repair service and your cost to goods which should be labor and the cost of the parts.

Will: Right.

Josh: Right? So, throughout the years what I've seen a healthy margin always be is about 30%.

Will: Right.

Josh: You have some repairs that are way better.

Will: Right.

Josh: Some that aren't even close.

Will: Right.

Josh: But when you average them all out.

Will: Yeah.

Josh: Right? 30% is always been a pretty good number and we'll deeper into why that number works, right?

Will: Yeah.

Josh: And again your mileage may vary, but if you can make that number work or better

Will: Yeah. You're doing good.

Josh: You're doing really well man.

Will: You're doing great.

Josh: You're doing really well.

Will: Just keep going in that direction.

Josh: Yeah.

Will: And we're going to talk about direction as we get deeper into the stages of business in future episodes.

Josh: Man.

Will: I think that

Josh: Yeah, that was fun.

Will: Yeah, that was fun.

Josh: Yeah.

Will: That was a good one bro. I love this, I love getting into the stages of business and business acumen because this is where we really, we've had the experience.

Josh: And it's my passion too, you know.

Will: Yeah, yeah.

Josh: So anytime you guys ask me questions around my passion, you're going to see it's hard, it's going to be hard to stay on this time limit right now.

Will: It is, it is, it's already 43 minutes man and it feels like it's been 5 or 10 minutes, and so that's how it is when you're having fun, right? And so

Josh: On that note

Will: What we're going to do?

Josh: Man, we're out.

Will: Let's do it, let's do it. So you guys check back in. Again, what we always say check us out on our social media, right?

Josh: Yeah, you know find us on Instagram, find us on Facebook, find us on YouTube.

Will: Ask Will and Josh

Josh: cellularrepairschool.com #AskWillandJosh.

Will: #RepairRight

Josh: #RepairRight. Hopefully we left you better than we found you.

Will: All right, let's do it. We'll see you guys on the next one.

Josh: Until the next time.

Will: I’m William Agnew

Josh: Joshua Gray.

Will: Signing off.

Josh: Peace.

Will: Ask Will and Josh, we'll see you guys next time, peace.

About the Author Joshua Gray

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