Mar 21, 2023
[00:00:00] Hard truth is if you're hunting small ticket items with no recurring revenue, then you will struggle
Husband and wife team, Jerry Kezhaya and Dr. Laura Shwaluk, owned and operated, not one but six highly profitable businesses. Simul Jerry and Laura's Most recent passions are a quarter section ranch in Texas with a 6,000 square foot home paid for with cash and Business Builders, mentor and Mastermind, which is their coaching and mentoring group.
They quickly grew business builders to over six figure income in just two years, teaching business owners how to own a business that gives true freedom. So if you're sick and tired of marketing that doesn't work, lackluster sales and inadequate revenue, then join our hosts, Jerry Kezhaya and Dr. Laura Shwaluk Every Tuesday. It makes sense to pay attention to every word they have to.
When I graduated from chiropractic college, . I started my own practice and [00:01:00] years later I ran into a friend of mine who had graduated at the same time as me, and he asked me how my practice was doing and I said it's doing good, but I'm struggling a bit. And I said, how is your practice? And he said to me, Laura, I never went to chiropractic college to be a chiropractor.
I went to learn how to run a business and own chiropractic businesses. He had 16 different business, different chiropractic offices, and I only had one. And so this brings me to the surest way to create wealth and it's to have reoccurring revenue. That's the main thing, is to have reoccurring revenue.
I grew up in the auto repair business. My dad started the first automatic transmission repair shop in the city of Detroit in 1946, so of course I grew up in it working on cars. About the mid seventies, I saw one of our trade magazines had a article. The main cover story was they had a [00:02:00] picture of a guy laying underneath a car on a creeper with a telephone cord going underneath the car to him and the.
Title of it was, you Can't Run Your Business from a Creeper. And I remember running up to my dad saying, showing him the article going, see dad, see this is exactly what I'm talking about. And of course he said, ah, those people are crazy. They don't know what, they don't know what they're talking about.
Clearly. He and I had two different sets of beliefs on how to run a service
business. So what is a service business? A service business is the basic structure. Reoccurring revenue. The technicians do the work. Like I had different technicians working for me, different chiropractors, and so this can go with any service business, a chiropractic business, a pest control company, auto repair, utility company, restaurants, house cleaning, pool services, all these kinds of businesses.
It's the difference between gathering. And hunting. So let me describe this. [00:03:00] So hunting is when you're hungry, you go out, you find something, you kill it, you eat it, but then you have to continually go out and find something to eat. Gathering is that you gather up a whole bunch of clients and you provide them a service over and over again.
Is it daily? Because some people go to the same restaurant. Every day. And then, or is it weekly? Is it monthly, quarterly that you bill them and you know that money is coming in every month, you're not starting at zero every month. You know that there's gonna be a certain amount of revenue that's coming in because you have those clients on auto pay and they're going to pay every month or every week, or every quarter, whatever it is.
That's the surest way of.
Examples would be, and some of that are in the category yet, in my opinion, are still hunters. For example, plumbers heating and air conditioning people, realtors, people that do renovations in your home, they wait until something breaks down and then hope like hell [00:04:00] that they get the call instead of you calling their competitors.
They don't know that they're hunting in the hunting business. They don't realize that they could have reoccurring revenue.
So I'll give you an example. There's a you've probably seen organization companies that come help you organize all your stuff. The business owner that I was speaking to, she was really struggling.
And I said to her why don't you just find a whole bunch of people that have, they don't. Know how to deal with paper and stuff like that. So you go in every week and help them organize their stuff and you go in every week. I'm one of those. Yeah, I know. You're one of those , look at their desk.
Their desk is completely unorganized. Yet they want to be organized and they need to be organized. Yeah, that's me. Every week and you'll have reoccurring revenue. And she says, but I don't like that. I just like to do the project that the project be done. And I said you're you're always going to struggle.
And she never got above a hundred thousand dollars a year. The service-based business, she could find a whole [00:05:00] bunch of people that need the same service every week and find organizers that love to help people organize and grow the business that way to, because they're organization businesses that are killing it out there because they have a reoccurring revenue.
The hard truth is if you're hunting small ticket items with no recurring revenue, then you will struggle.
That is true. Not to say that you can't hunt big ticket items like auto, like car sales houses, Rolex watches. That's another model, but that's not a service-based business model, and you really have to dominate the marketing in your field and the big ticket.
You have to be a household name, and that can be really expensive to do. The formula is find your customer service their immediate need, and keep them from having that problem coming back. [00:06:00] Collect the money regularly on an ongoing
basis. For example, in a restaurant, you're hungry.
You're hungry for the service experience, not necessarily just food, right? So let's make sure. The restaurant gives the best service, and we get to feed you every day so that you're never hungry.
Consistent service. Consistent service. Consistent service, consistent food. All right, so here's a pest control one.
Somebody calls you up because they have cockroaches or term mates or something like that. Great. Take care of their immediate need and take care of all the other things that are going on. The spiders, the wasp, the rodent exclusion, and you come back every month and you check everything. Rat. Rat's, right?
Rat? Oh yeah. And you check everything, and you do the spray. You spray, every month or every quarter, whatever it is in your area so that you have a reoccurring service and you have lots of technicians that go out and do the work.
In the automotive business, let's say someone stole your catalytic converter.
We'll fix that and then we'll let you know [00:07:00] about the other items that you need now as well as in the future, and we'll keep your car from breaking down
the regular oil services. The regular fluid flushes, all the things that are reoccurring revenue. Okay, so your revenue, or I should say your ability to grow your revenue is directly related to the size of your customer pay base that's paying you regularly.
I'm gonna say that again. Your ability to grow your revenue is directly related to the size of your customer base that's paying you regularly. So here are your growth work questions. Number one, does your company generate reoccurring revenue that you are con. Or are you continually hunting for the next sale?
That's a bad idea. It's exhausting. It's exhausting, and you struggle and you just, you get to a certain plateau and you just can't grow any further. The next question is, if you are hunting, If you have the [00:08:00] hunting business model of especially small ticket items, how can you shift that to reoccurring ticket items or much larger ticket items?
10,000, 20,000, a hundred, $200,000 items that you sell. So here's
the thing about the recurring revenue. so imagine you've got a little tiny snowball. And let's call that your customer base. And so you keep rolling the snowball because you're continuing to get new customers and pretty soon your snowball is bigger.
Yeah. And then it gets bigger and bigger and bigger and bigger. And
you hire more people to help you build that snowball and keep it together. And keep
it moving and keep it growing. And the whole idea is the bigger you snowball. The bigger your customer database, the more revenue that you will generate.
Like the snowball just it will snowball on you. It grows and grows. Look, the, here's what is a business for. The purpose of a business is to [00:09:00] provide the owner his desired or her desired lifestyle, okay? That's what the purpose of a business. The way the business does that is it gets new customers and it retains old customers.
Those are the two things that the business must be able to do, right? But the business, the purpose of the business should be to create the lifestyle, to provide the lifestyle that the owner wants. And if your business isn't able to do that, let's look at why it's not doing that Exactly.
Okay. So what I would like you to do now is go to the bottom of, or the show notes, the bottom of this page or the show notes, and type in your answers, type in the answers to the two questions that we just asked.
And if you have a question about your business, you can type that question in there too, cuz we'll look at them and make sure that we answer all of your questions.
And remember, you are not alone. You don't have [00:10:00] to come up with all these business answers yourself. Write your answers to these questions in the section below the show notes,
Excellent, and we'll see you in the next episode next Tuesday. Bye everybody. Bye.
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