Experts Unleashed

The Growth Of An Entrepreneur: EU 96 with Daniel Marcos

Tags: leader, methodology, growth, entrepreneur, marketing

I have an amazing treat for all of you today.

We have a very special guest who is a good friend of mine. He is the CEO of the growth institute and the author of impact X.

He is a client of mindful disclosure, his name is Daniel Marcos.

His values, process, and methodology for helping entrepreneurs, founders, and CEOs follow a trajectory of growth. Daniel has his way of developing clarity with clients.

He trained how to scale companies faster and reduced the operation drama of around 11,000 companies worldwide.

Find out here the growth of an entrepreneur, build systems, and process of everything.

You'll Discover:

  • You have to work for someone and get a lot of discipline of what is to be an employee to be a good leader. [5:03]

  • When someone is successful, they see opportunities everywhere. [16:46]

  • When you have an opportunity or problem, think about who’s the expert on the subject. [19:19]

  • Stages of growth entrepreneur. [21:29]

  • Difference between a standard coaching program versus the growth institute. [33:15]

… and much more!

Watch Interview

Episode Transcript

EU 96 audio

[00:00:00] Daniel Marcos:

A lot of entrepreneurs, they said, Hey, if I’m on stage two 15 employees and I’m making a million dollars or half a million dollars of money, imagine when I have 30, I’m gonna make twice as much. And when they’re there at 30, their company’s losing half a million and they’re having a horrible life.

Because they were expecting to have the same leadership and structure and everything on stage and faith tree.

[00:00:25] INTRO:

This is experts unleashed, revealing how professionals and entrepreneurs transform experience into Gama while positively impacting the world for years, Joel, or way has helped entrepreneurs develop and launch their expert based business.

Growing them beyond six and even seven figures a year now a professional expert serves their community through paid training education or service. This podcast will help you design and execute your plan to become a six or seven figure experts without a massive team. To get more information or apply now, visit the perfect experts.com.

Let’s get started.

[00:01:08] Joel Erway:

Hey, what’s going on, Joel erway here and welcome to another very special episode of experts unleashed. Guys, and gals. You are in for an amazing treat today. I have a very, very special guest and a good friend of mine. His name is Daniel Marcos, the CEO of growth Institute and the author of impact X. I have known Daniel for probably three or four years now, and I invited him onto the show here today because.

When I was working with Daniel, he’s a client of mindful disclosure when I was working with Daniel. And I really got to know his values and his process and his methodology for helping entrepreneurs and founders and CEOs follow a trajectory of growth. It was eye opening for me, as I started to kind of really study his process.

He has. This way of developing clarity with the founder. Because there are certain stages that we all go through. And I think intuitively a lot of us know this. I think a lot of us know that like, okay, if we wanna get to $50 million, we have to be a completely different person than our company is at say $500,000 or $2 million.

And so it was, it was enlightening. It was eye-opening and it was revealing for me to just kind of see how this all mapped out. Because me personally, at my stage, in my life, I am much lifestyle focused. And yet I see a lot of my clients or a lot of my friends who are way past the revenue numbers that I’m at.

And so we you know, this is me personally. I tend to just get a sense of like, oh, I want that. And watching and following. Daniel’s process in methodology and helped me reshift my focus and not get attracted to the big revenue numbers. If that’s not, what’s aligned with my true goal. So that’s what I really wanted to talk about here today with my guest and without further ado, Daniel, welcome to the show, my man.

[00:03:10] Daniel Marcos:

Hey Joel, super excited to be here.

[00:03:12] Joel Erway:

So why don’t we get started? And Daniel, why don’t you give us a quick 30-second background about who you are and what brought you to the growth Institute? What brought you to launch this project? And then we’ll dive into the conversation.

[00:03:27] Daniel Marcos:

So I’ve been entrepreneurial my life and I was doing small companies doing high school and stuff.

And then when I was in college. I was trying to start a new company and my father was worried that I was gonna get distracted. I was a terrible student and he said, you’re doing bad. As in school, plus a job or a company it’s gonna be worse. So he called my older brother and said, Hey, why don’t you get your little brother a job?

So he doesn’t like go into business again and get distracted, at least get somewhere that he could have a job and learn how to load the discipline and stuff and have a desk. So my brother helped me get a job in a brokerage house. So I was trading in the stock market, Mexico and, and us stock market.

I grew up in Mexico, went to college in Mexico. And my last three years of college, I was, I was a stock trader and, and a broker. So I learned a lot about finance. Then I graduated, went to Hong Kong to live two years to work in the Mexican consulate as their financial attach. And I, that helped me really understand Asia and how the world moves beyond Mexico and the us for me, living in Mexico, see the us as the big country.

And I was very focused on the us in Canada. And I really didn’t understand Asia and the rest of the world. And that really opened the eyes of, of what is the rest of the world. And then I came back after two years and I said, okay, I’m ready to be entrepreneur. Again, and I’ve learned a lot about discipline of work.

And by the way, this is something that I teach a lot entrepreneurs. They feel like a badge of that. They’re proud. They’ve never worked for anyone else. And I was like, no, you have to work for someone like four or five years. Really to get a lot of discipline of what is to be an employee. So you could be a leader I’ve seen the Tris have worked for someone else have really have more discipline and structure of work.

Mm. And that really helped a lot for me for those five years. And then I started, my first company did say after college, I started the first FinTech or financial technology company in Mexico. We were the first one to put stock quotes online and trading and games and everything. And just to make a long story short a year after that, we had merge with two other companies in Argentina, Brazil.

We had 1200 employees and sold to Vanko and for 700 million in a year, it was crazy. What. And that you have to imagine the learning. It was, it was great. I slept probably three, four hours a day for one year. Then I saw the company and I stayed working for them for two more years. But I really learned about fast growth.

I joined you and went to all these courses and was mentored by you. Really find most entrepreneurs and stuff like that. So it was a huge, huge, fast-growth year well, year and a half, two years all total. So it was a lot of Then I moved to the us, wanted to prove myself an entrepreneur in the us. I did a mortgage back in 2004.

I would destroy 2007. You have to understand when the subprime industry went under, I was a subprime model subprime. I was giving loans to undocumented Hispanics in the us and was completely destroyed. And then after that I became a CEO. I was already being coached by ver Harnish. He’s my mentor vert coached me when I build my first company, joined EO and started in all the forums and all this roller coaster over the entrepreneurship life.

But that’s when I met Vern and Vern said, Hey, come be a coach. And I was like, I don’t trust myself now to be an tri entrepreneur myself, how can I coach others? And he said, that’s precisely why? Because you’ve seen. The big high, and you’ve seen the really big lows. We lost in the, in the mortgage bank, probably five, $6 million.

And it was rough. Go to investors, told them we lost all their money. And then I lost my money and I was a million dollars in debt when I closed it. So I’ve seen a lot of the big highs and big lows. And I became a coach 15 years ago, more or less. And I’ve been coaching companies since and after four years I was very happy coaching companies having a lot of.

But I was traveling 200 nights a year. And I had my second son, so I told her, Hey, I’m gonna stop coaching or I’m gonna decrease my coaching and go more online. And I went and wanted to build growth Institute and over, but I was gonna build it for Latin America, just in Spanish. And Vern said, no, let’s do it together.

Let’s build it for the us or, or the, the English market worldwide. And that’s when we started 10 years ago. And up to now, we’ve trained in how to scale companies faster. And reduce the drama of the operation around 11,000 companies, 55,000 people of, of these companies in 70 countries around the world.

So I have a, a per personal perspective of when things go really, really well. And when things go really, really bad, but most importantly, I’ve worked with a lot of cos and helping them through the process of scaling their companies and really go to the next level.

[00:08:07] Joel Erway:

Can I ask you something Daniel? So when I think a lot of people Would probably gain some insightful knowledge from your experience of when things go really, really bad.

It’s like, when you think about when subprime industry crashed, you had to tell all your investors, I’m sorry. We lost all your money. Not only that you were a million dollars in debt. Did you have a family at that point? Were, did you have any, any children?

[00:08:33] Daniel Marcos:

I was married with one daughter. My daughter was three or four years old and imagine I went to Dallas to meet my investors and tell ’em we’ve lost all the money.

We’re gonna shut everything down. Came back from Dallas and sat down with my wife and said, so here’s what happened. Everyone agreed. We should shut down the company. The company has a million dollars in debt and they say, that’s your problem? You’re the operating guy. So you’re in charge of paying the million dollars and my visa was attached to the business.

So if we shut the business, I had no more visa to be in the us. So we had like two months to get outta the us, so sell the house and everything get out. So it was a pretty rough conversation with my wife at. Everything that happened could be summarizing that conversation with my wife. So I went back to Mexico, get a job.

I got a job Monday to Friday just to be able to pay the school of my daughter and food from the table. And I started coaching on the weekends. And precisely that, that was interesting when I told her and I couldn’t coach anyone because I didn’t trust. At that time, he said, how are you gonna pay the million dollars?

And I said, I have no idea. I, I don’t care about that today. I just care about putting food on the table for my family. And he said, well, from Monday day to Friday, get a job. You pay your day today on the weekends you coach. And with that, you pay your million dollars. And that’s what I did. And four years later I paid a million dollars.

I was back in the us and making significant money.

[00:09:55] Joel Erway:

When you had that conversation with your wife, like that kind of tell all like, Hey, here’s the situation, you know? Deep down. What did you, obviously, your, your confidence was probably shattered. Your self-esteem was probably shattered in terms of like your ability as an entrepreneur, you know, how far in the future could you see, and did you believe in yourself to recover?

Like, you know, a lot of times when you’re like, we go through those, those pitfalls. A lot of times, like our vision is, is really, really shortsighted because it’s like, holy cow, like you can only see past the million, like that statement in your bank account, I’m a million dollars in debt. Right. So like, did you have the belief in, in yourself that like, Hey, I will be able to recover or like, were you just buried in kind of self doubt at that point?

[00:10:45] Daniel Marcos:

So the first, probably couple of months, the self doubt was so big that I couldn’t, I have no idea what it was I was gonna do and how I was gonna pay that money. I woke up many nights, probably a month and a half, two months, two or three o’clock in the morning, sweating cold. Like my bed was wet or wet.

And I was waking up sweating and crying in the middle of the night and I start, and by the way, I gain a lot of weight. I had all this rush because of all the stress. There was a lot of other things going on. I indeed, I have Vigo here. It’s an autoimmune disease. It came out in those two months.

So it was, the stress was pretty high. And I was told failure and I couldn’t see anything. And I was very hard with myself because entrepreneurs, we believe that if our company’s successful, we are successful. If our company’s failure, we are a failure and we attach. Cost to our company. And because the company was not successful, I thought I was not successful.

And a lot of things happened. A lot of, I spoke with a lot of people and things. There were three calls that really changed my life. One was a letter, really? My parents sent me a letter. I’ve been very close to my parents, all my life. They’re amazing couple and mentors. And they send me a letter saying, Hey, life gives you very few opportunities to learn fast in.

And you’re getting an opportunity today, but you have so much pain that you’re not willing to learn from the pain. So I recommend that we bring everything to the table and we discuss it openly. So you could really learn from it. So I called my parents and said, good, let’s do it. What do you recommend?

And we hired a coach or a kind of a, a personal mentor. My mom a yoga. And we did a session at my house, my parents, my wife, this mentor, and myself for two days, we got into a room white walls and had like 10 hours of discussion for two days and everything was on the table then. And it was, it was rough.

It was very, very rough. The second call was from a very good friend of mine. That was the head of Google, Mexico, Google, the way they entered Latin America. They first opened an office in Mexico and hired my friend to be the. And then they were promoting him to be the head of Latin America. And he needed someone to replace him as head of Google, Mexico.

So he calls me and said, Hey, when they told me I was promoted to be head of Latin America, I thought about you to be the head of Google, Mexico. And I was like, no, I cannot do it. And hang on the phone, my friend got you crazy. Like I’m offering you the job of the lifetime. to be the head of Google in Mexico.

And I was like, no, I’m not ready. And I, I, I didn’t want to take the. And the guy said like, are you crazy? Like tell me how many interpreters in Mexico have built a company for 700 million valuation and sold it to the third biggest bank in the world. And Hey, FinTech or EdTech back then was like, I was the only company I was, I was the first ever to put stock quotes or the Mexico market online.

Back then. So this guy was trying to convince me, and it took like two weeks of calls with my friend, for me to even go into the process. To become CEO of Google. And by the way, I did not got the job. I was offered to be number two not the number one position, because I was not an expert on the core values of Google.
And they still want to you to be head of operations for two years for then become CEO. And I said, no, he’ll make me CEO for the first time. I want to do it because I was already doing coaching and making a lot of money in coaching. So by the process took like six or eight more. And I was in a really good tracking in coaching.

And for me to replace that I had to be CEO. And then the third phone call was ver and Vern said precisely because of what you’ve learned, you have to make sure it does happen again to another Jupiter. So become a coach and I’ve always admired over a lot founder of Rife habits or other Rife habits, scaling up an amazing thought leader, known all word world founder of, or entrepreneurs organize.

Vern said, you’re a extremely good entrepreneur. I want you to coach and lead my brand in Latin America. And I was like, how can you ask that for me? I’m a disaster. And he was like, you don’t, you don’t get it. You were into a bad situation. So those three phone calls really changed the way I, I was much harder with myself than the way the world was being hard on me or, or thinking about how bad I was.

And that really started changing the perspective. Indeed I had a phone call with a good friend of mine just quickly that I told him that I was, I just went under and I was crying and I was having a really hard call with him. And he was like, thank God you. And I was like, and he was like, imagine you’ve build a company in Mexico and do that.

And then do another one. The us successful. You were gonna be untouchable you’re back to human. And I was like, how can you say that? And he was like, you really need it. I was less than 30 years old when all of this happened. So it kept me hungry. I’m 50 now and I’m still hungry as ever. So it, it was, he helped me with that.

[00:15:44] Joel Erway:

One of the things that I love about that story. Thank you for sharing by the way, is. When things come crashing down, you become blind, you become blind. Like it’s, it’s almost like the tail of two extremes. When someone is super, super successful, you see opportunities everywhere. Like when things are when you’re riding high.

Everything’s an opportunity. Like you, you have a wide open mind because you have financial security, you know, you know, things are firing at all. Cylinders. Like nothing can go wrong and like you just see opportunity everywhere and the world collapses. Your vision collapses and you can only see three inches in front of you.

I went through, I mean, you know, I went through a similar experience, not to the extreme, but you know, in my world it was this extreme just by relativity of like, Hey, you know, my business, you know, did. Poorly a couple of months. And like, I thought everything was coming crashing down. I was paralyzed in bed.

I had, you know, I was extremely emotional. Like I was crying because I’m like, how can I feed my family? Right. And your vision becomes so shortsighted. And I think this is like a perfect segue into really why I wanted to bring you on, which is a, okay. Now you’ve obviously escaped. You. You’ve gotten out of that.

Years and years and years ago, and been super, super successful again. And now you, you can zoom out and you can kind of show everybody that. There are stages to this game. As an entrepreneur, there are stages of who you become and in stages of what you develop as, as an entrepreneur, which I think is gonna be super helpful for people when they alt everyone I think is probably going to go through the crunch time of like, Hey, something’s gonna fail.

And like, you need to breathe. Like, yes, you need to go experience it. And yes, it’s going to be difficult. And yes, you’re probably going to think like the world is ending, but I think if we can now zoom out and say, Hey, listen, This is the journey that everybody goes through, like take a breath, get some help, and then figure out where are you along that path and diagnose and prescribe what needs to be done to get back on that path.

So, can we, we talk about that data. So you have the four stages of the growth of an entrepreneur. Can you explain what those are?

[00:18:02] Daniel Marcos:

So working with a lot of companies and myself. A lot of entrepreneurs come to me and say, Hey, tell me exactly what I have to do or tell me what’s the most important book I need to read or whatever.

Right. And by the way, that’s one of the big things. I, I became an avid business reader. I probably read 2000 business books in the last 20 something years. So I recommend a lot of books and tell people exactly what book to go. I, I learned very early that whenever I have an opportunity or a problem, My first think is who’s the expert on the subject.

And they always, there’s gonna be an expert going through that process. They wrote a book or a mythology on how to solve it. You have to read the book or take their course, follow the process, and then you’re gonna be able to have a better outcome. So I gather entrepreneurs asking, Hey, what’s the most important book?

And I was like, that’s not going to a doctor and said, doctor, I’m sick. Gimme the strongest medicine. Wait, how old are you? Like what’s the pain. Are you sick from the stomach? You have cancer, like, depending on where’s the sickness, it’s the right medicine. Same thing happens with companies and that’s what entrepreneurs don’t get.

They read a book, they go to a conference, they get excited and they implement something in the wrong timing. And I kind of compare this to a baby. Imagine if you’re a baby, the best food you could give a baby is a Gerber. Right. But when your kid is 18 years old, if you give them ger. He will hate you.

It’s not the right thing. Something happens in companies when we make these mistakes all the time as entrepreneurs. I, I see all these entrepreneurs that they said, Hey, but what I did is right now, we’re like, yeah, you did. I did right decision 10 years earlier, or 10 years late or 50 employees wrong.

Right. So it’s really important to understand that. So I start going to the stages and I’ve read a lot of books. A lot of people talk about stages at DCS and all. I kind of developed my own base on my experience and I’ve been using it a lot. So lemme, lemme kind of walk you through this first in the us, the 32 million businesses register in the us.

96% of them do less than a million dollars in revenue, 96% of them. So 96% of the companies, 96% of the entrepreneurs will even the, the ones that survive will never do above a million. And for me, that’s stage one and two and that’s lifestyle business. What dictates your stage is the amount of employees that you have, because it’s not the amount of revenue you generate is the complexity of the operation of your business.

So stage one is one to our employees, more or less. And that’s when you’re really getting, what product are you selling? Who are you selling it for? Like understanding your product market fit. And, and that you have a business plan with a lot of assumptions. You have to prove your assumptions and confirm your business model.

That’s kind of stage. Stage two, you have six to 15 employees, more or less. And your job there is to really go from being an entrepreneur, to being a leader, you have to start delegating and hiring people that are better than you in all the years of the business and delegating what to do. But instead of having your arms, doing everything and working in the company, you have to start working on the company and become a leader of the organization.

But the leadership on stage two, it’s a very simple leadership. One on. Right. You don’t have to be great communicator. You don’t have to be great delegator. You could kind of go by with a okay leadership. Once you pass stage two, like 15 employees. Now you start getting managers and it’s your first line of defense.

And that’s what everything breaks loose. Because now you have to lead through other leaders and very few people have the knowledge and leadership to be able to do. And then for you to be able to have enough margin to pay them and get the right people on the right, the right seat. That’s what I call the value of death between stage two and stage three it’s around 15 employee starts 15, 20 to around 50 to 70.

You don’t have enough money, enough margin to really pay and get great managers in every area of your business. And that’s really tough. I’ve been giving this presentation for. Many years, indeed. I’m writing my book now I finish my book and someone was asking me, Hey, when do you start talking about this?

And I went online. There’s a video in a mind valley conference 10 years ago, or nine years ago talking about this. So I start using it. I, I just didn’t write a book. But then let me go back here a lot of entrepreneurs, they said, Hey, if I’m on stage two 15 employees and I’m making. A million dollars or half a million dollars of money.

Imagine when I have 30, I’m gonna make twice as much. And when they’re there at 30, their company’s losing half a million and they’re having a horrible life because they were expecting to have the same leadership and structure and everything on stage Sloan stage three the other day was giving this presentation with solar over the world, a virtual presentation.

Like half hour later, I get a, a WhatsApp from entrepreneur in, in, in England and say he just destroyed and explained in my life for the last five years in half hour, he said, I got my company to around 60 17th employees. I was doing 60 million a year and I was miserable. I was losing a couple million a year, headed my life one day, imploded my business.

I came down to 16 employees. That’s the maximum employees I could manage. I’m doing 7 million of revenue and I’m netting 3 million and I’m happy as hell. Why? Because that’s my stage. That’s where I’m good at. So I really believe once you pass stage two or you’re in stage two, you have a very, very important decision to take.

If you want to build a stage three and four, and you’re really building an asset that is gonna have an intrinsic value and you you’re gonna go through the value of death and you’re gonna have to invest all your profit. In really building an asset or you stay on stage two and keep a very, very casual, positive business.

So today I have two businesses. I have growth Institute that is a scale stage three, and we get two or three offers a year trying to buy in the business. Now it has an, an intrinsic value or enterprise value. Like I have a team of 30, 35. We have all these courses and brands and everything, and we’re growing 30, 40% a year.

And it’s an asset. Right. But. I don’t distribute a lot of money to myself. I have a salary and I make some money, but it’s, it’s not like a really big cash flow. It’s decent cash flow, but not a big one. I have a second business as a coaching business that I have 90% margins really, really profitable, and that’s a stage one or two business.

So I have a lifestyle business that fits me and my family. And then I have a scaling business that I’m building an. I think that’s a way you have to see it as an entrepreneur. You have to decide what type of business you want and build it accordingly to it. Before we go to the next question, let me just say something and here’s for me the most important difference on leadership on stage two and three in stage two, you’re playing checkers.

You look at your board and everyone for you, the same, and you are the one taking the decisions of moving them. you’re playing checkers. You see all the chips are exactly the same, same capacity, same power. You move them. You have a hundred percent control of what happens on stage three. You’re playing chess.

You look at your board and you realize that you have different team members with strengths and weaknesses, and you have to position them in the right position for them to use their strengths and then cover the weaknesses with other team members. If you’re able to be strategical to play. You could build a stage three company, if you could not do that, don’t do it stay on stage soon.

And by the way, very few entrepreneurs are able and have the capacity to go to stage three.

[00:25:51] Joel Erway:

That’s a super powerful analogy. Because the question that I was immediately gonna go to next is, you know, let’s say that we are. In stage one right now, or even just kind of like thinking about what our offer is going to be, what our business is going to be.

So we’re very, very early stage, you know, I think it’s important for us to probably have a vision in being able to identify, do I wanna get to stage three stage four? How would you answer that question? Because there’s, I, I, I think maybe it comes down to part personality type part goals. How. Would somebody be able to self identify what stage they ultimately want to get to?

Because I think that’s a very important question. So. Someone doesn’t accidentally put themselves into stage three when they really weren’t meant to be there. Like, for example, that, that client or that audience member who listened to your presentations, that I’ve been in stage, you just described my life the past five years.

It’s been hell. And you know, I’m wondering if some of those people just shouldn’t ever have been there to begin with, like maybe they should have been content with stage one stage two lifestyle business. So how would somebody go? Self-identify.

[00:27:10] Daniel Marcos:

So there’s several things that you have to design or, or analyze.

The first one is if the business model is scalable I had a coaching business before I build growth Institute and coaching it’s, it’s scalable, but not really. It’s very difficult to scale and evaluations are not worth it to scale it. So I was in a moment that said, Hey, should I scale my consulting? Or just keep stage one or two very profitable and just leave it there.

And I said, I’m gonna leave it there. I’m gonna do another business that is more scalable and scale that right. And build, raise money and everything and, and scaling growth. But, but first you have to understand the business model, how scalable is. The second thing is if you are willing to do the work.

As an example, when ver and I decide to do growth Institute. So we finished through the strategy and I flew ver was reliving in Barcelona back then. So I flew to Barcelona and we spent two days in the drawing board, just getting all the strategy. Right. And when we finished the strategy, ver looks at me and said, who’s gonna run it.

And I was like, what do you mean I’m gonna run it? And he was like, you don’t have the time. You’re too expensive to run a startup, like your cost. Opportunities too expensive. You make a lot of money in coaching. You cannot do it. Who are you gonna bring to run it? And I was like, I will bring someone, but, but it was very experience understanding what we needed to do saying you’re not the right guy to run stage one.

And he was right. So I brought a good friend of mine, Juan Gonzales. And Juan was the CEO of growth the first two years. And Juan took it to above a million revenue and called me and. Now it’s ready come and run it. And then they took her over after a million dollars in revenue. So when it was below a million, Juan was kind of the CEO running day to day operations and over and I were working for free for the company, getting all these thought leaders and all these things.

But Juan had a salary and he called us every Monday and said, this is the plan for the week. This is the amount of one 8 cent I need. And Vernon, I said the checks and we’re investing in building an asset. So, so you have to understand the business. If it’s scalable, if you are the right person to run it.

But depending on your lifestyle and your cost of cost in the market, on the rests. And then if you’re really willing to go through the process of the values of that in stage two, if you are in stage two, trying to be stage three, it’s a very difficult stage. And that’s where an entrepreneur ages, the most.

Because you are living in the future in the dream of building a scale up, but you’re operating in a space with no cash. No, usually on stage two, when you’re going to stage three, your expenses are fixed and your income is unstable and that creates a lot of drama. So what I tell entrepreneur said, Hey, you want to do it great.

So here’s, what’s gonna happen. You will make half of what you’re making today or less for the next five years. There’s gonna be like three or four months. Sometimes you will not be able to make a dime or you’re gonna have to give away 50% of your company to an investor to own 50% of your company to be, to have cash.

Right. And you’re gonna work 17 hours a day and blah, like, I kind of give them a breakdown what’s gonna happen in their life. Other people said I will never do it. I just, I just don’t want to do it. Quick story. The other day, I hired an entrepreneur, someone that is entrepreneur or he wanted to be entrepreneur and he came to work for me because he wanted to learn entrepreneur life and all that.

And after two years came to me and said, Hey, I be doing his work for you. I wanted to come to learn where he was to be a entrepreneur. I realized I don’t want to do it. I don’t have the stomach to go for what you’ve gone through. So I’m gonna stay with you as an. I don’t want to be a entrepreneur. And I was like, congrats and very happy you took that decision.

So really understand the company and then you of going through the stage and all the issues and accept what’s gonna happen for you to do it. If you’re willing to do that and the business scalable, then skill it not before.

[00:31:25] Joel Erway:

One of the things that you mentioned is that coaching businesses are really difficult to maybe not scale, but they don’t have the right valuation. Right. They’re just not, they don’t have the right multiple, like, you know, it’s, it’s not a, it’s not a great sellable asset. Well, I look at that because this audience listening right now, a lot of them are coaches or consultants. Right. You know, maybe they should be just the lifestyle, the lifestyle, business model.

But when I look at growth Institute, which is the thought leader brand, it is still coaching and consulting. What is the difference between a standard coaching program or model versus what you built over at growth Institute that is making that a much more sellable asset, right?

[00:32:13] Daniel Marcos:

So several things in coaching, they usually want you to be there.

Right? And I have all the coaches, but my cost per hour, let’s say, or my revenue per hour is probably eight or 10 times. My. And when there’s a problem, they call you and you’re responsible to be there. Growth Institute it’s called growth Institute is not called Marco consulting or Harnish consulting or anything it’s, it has its own brand.

And if you ask me the name of clients of growth Institute, I probably know less than 2% of the name of. I, I was in the process of selling them probably two or 3% of them. That’s it. I have an engine that does revenue servicing everything of the client I could disappear for the month. Nothing happens.

Growth Institute runs without me. What we do a growth Institute is we partner with like Fe or or Brad smart or all these amazing theaters. And we partner to do courses. and I build an engine of marketing sales and delivery, of course, online. And I have a team of 30 people running it. So whenever there’s a new thought leader, my job in grodi suit is building the engines that they’re built and I’m scaling the engines.

And then I go and look for new thought leaders, go and have dinner with them and have a conversation. We agree on partnering with the course. I signed the contract. I signed the contract to my team and said, here’s a. Build a course market, the course sells the course, deliver the course and we have a personal system for everything.

And that’s scalable that doesn’t depend on me at all. So one of the big things of building a business that is sellable is a business that doesn’t run of you being the center over has never worked TSU. He’s been an investor and a board member and advisor, and he has helped us with those leaders and contracts and strategy and everything.
But whenever there’s operation, he has never spent an hour operating the company. The company is operated by the team and that’s an asset that is allow, right? So, so whenever you build a business like consulting, they expect you to do the work. They expect you for you to be the center. The best way to do consulting and you not being the center is you have to package the delivery and you hire people to do.

And that’s exactly what we’re doing Institute we package coaching in courses and that’s what we deliver.

[00:34:50] Joel Erway:

Got it. So the difference there is more, so the productized portion of it, it’s a collection of courses categorized under one broad umbrella of business, entrepreneurship and growth.

[00:35:05] Daniel Marcos:

That’s it. So lemme give that quick idea.

So at the coaching business, We are, we just develop a program called 36 months to exit helping companies scale for three, three years to then exit. But if you want to really maximize your evaluation, when you sell there’s a lot of things we could prepare in the business to make it sellable for a premium, and it’s a product and we have deliverables and we have outcomes for the owner of the.

and it’s a program I’m not gonna deliver all of it. I will do a lot of it, but not all of it. And I will tell the client, Hey, this is the cost. These are the deliverables. These are the results. You’re gonna get people in my team were gonna do it independently of me doing it. Right. So I’m prioritizing a little bit on the consulting side, but that’s it, it’s a very structured process.

36 months to exit or whatever.

[00:35:59] Joel Erway:

Got it. Yeah. It, it makes total sense, you know, it’s, it’s that leave from. Selling customized expertise that is custom from client to client, to client, to developing a more productized model that anybody can run. Once you know, you give them, you hand them over the reins and that’s not easy to do.
I mean, that’s the space that I work in. I work in the course space, the consulting space, the coaching space. Right. And I’ve seen a lot of people try and scale. I mean, I’ve seen people hit eight figures in their consulting business or in their coaching business, but it’s still not sellable because okay.

They might be they’re teaching one methodology and they might have coaches in place there, but it’s still based around that expert’s methodology. So that one person is still attached to the business, even though they might not be the. Delivering or fulfilling, whereas you have built kind of like, I’ll just, it’s, I’ll just say it’s the, like the Netflix of entrepreneurship where, you know, it’s obviously a much higher value, but they there’s a, there’s a collection and there’s there’s a business model around it.

That’s not tied to Verne or it’s not tied to Daniel.

[00:37:07] Daniel Marcos:

So as an example, scaling up the class scaling up that we sell across Institute. The first year was over 50% of our revenue. Last year was less than 10% of our. We use it to start and fund the business. But now today it’s a small percentage.

[00:37:24] Joel Erway:

So I wanna ask you this Daniel, cause we’re I we’re running short on time.

You have the innate ability to help a wide variety of entrepreneurs. Is your methodology, your four stages is that applicable to every business, like every entrepreneur, like they can follow this model and understand like, these are the stages. Like if I wanna get to, if my goal is to get to Z, yeah.

Then these four stages are, well, I might not need to go to stage four, but you know, these four stages still apply. So does that apply to every entrepreneur?

[00:38:00] Daniel Marcos:

What I’m doing in impact tax and what’s, what’s what I’m kind of publishing the book. I believe you have to build a co system. So, so we have like five more minutes.

I will, I will lemme explain this because it’s supportive. So I go to a company and I say, Hey, the only way to build a company successful is that you build systems, a process of everything, right? And that’s the entrepreneur that is really able to scale is because they’re building systems and processes.

And that’s what we do at the growth issue, by the way, all the class that we teach, all the master business courses. We’re helping you build and improve your systems and process on hiring meetings, dashboards, KPIs, all of the things that you need, systems and process, we help you develop that. So I asked them, Hey, show your systems.

And they show me all their accounting system and production system and customer support system. And then I say, show me your CEO system. I say, what do you mean? Yeah, you have systems for everything in your company. How do you operate as a. And they stayed kind of quiet. And I was like, if the most important job is to see on the strategy and everything, you need to have a system to run your company and they don’t have it.

So I design a system, a co system based in three areas, tools for you as a leader tools for your team, create to lead your team and tools for your. so in every stage I give you four tools for you, four for your team, for her company, they have to build. And it’s kind of the pillars of the business. Right?

And I talk with someone that is on stage three and I show them all the pillars of stage one and two, and they say, well, I miss like five or six. And I was like, that’s why you’re struggling because imagine building a house instead, instead of having, let’s say four pillars, you just have. So the house’s gonna be standing, but it’s probably gonna be crooked or, or kind of weak.

So, so what we design on impact X is what are the 12 things you have to have in every stage to be able to have the, a fundamental or, or foundation stable foundation. So you could build the next floor on the next level of your company. And that’s what impact is X it’s a seal system with a minimum, two of things you have to have as an example stage.

A lot of people, they get excited to say show and they got stage three and they don’t build a predictable sales system. They have a lot of stability in their expenses, but a lot of instability in the revenue and that’s not scalable. I said, don’t go above stage two. If you don’t build a recurring revenue or a stable process for you to get revenue and people don’t see it.

And they pass that and they have a lot of trauma. So that’s why it’s important to have a co system.

[00:40:46] Joel Erway:

Yeah. People need to be managed including yourself. And that’s a big hurdle for some entrepreneurs to get over because if their primary value is freedom. that’s in their mind, whether this is true or false, I’m, I’m actually just speaking from personal experience, cuz I’m not one to really wanna follow a system of like managing myself.

Right. My highest value is freedom. And, you know, it’s difficult for some, for some entrepreneurs with that high of a value to want to subscribe to, okay, you need to be managed maybe not by another person, but you still need to follow a system if you have these lofty goals or if you have this certain goal.

And if you’re not willing to do that, then, okay. That’s totally fine. But like, just understand your limit is probably capped to a certain point because of everything that you’ve just talked about, would you say that’s.

[00:41:43] Daniel Marcos:

So he did, I’ll tell you a conversation had last week with a client. The client’s not very happy with me, but I, I got hired to implement, scaling up in a company and he’s a supplier of another of my clients.

And he admires how my client runs a CEO and he one day came to him and said, Hey, I, you’re an amazing CEO. What do you do? Like teach me and the guy said you should hire my coach. So the guy hires me and I’ve been working with him three or four months trying to implement a co system for him to be CEO.

And he continues to pull me down and just take the operation. And I’m trying to pull him up to think strategically in the business and really build the business. So I had a call with him last week and I usually with, we are with his team and everything. And I said, I need a call with the CEO, just one, one.

So I got into the call and said, Hey, I’m very happy work with you. I, I love to work with you. I think you have an amazing company, but I have a problem. You hired me to teach you how to be a CEO and you don’t want to be a CEO. You’re an amazing head of operations. We’re a terrible CEO. I’m giving you all of these tools.

You don’t want to use them. Because you have been so many years as a CEO of a company, he was a previous COO of a company and he thinks that’s to be CEO. And I was like, no, you have to work on the business, not in the business. He doesn’t want to do it. So I told him you have two options or you allow me to do my job and make you CEO or fire me because you are paying me a lot of money that you asked me to do something and you don’t want to do it.

And the guy said, okay, let’s talk up next week. He’s still not appearing. Right. But that’s reality. He doesn’t want to be CEO. And by the way, he’s doing 50 million of revenue in his second year. Brilliant business. He’s an amazing operator, but he doesn’t want to be CEO. He doesn’t want to take the bullet and do what it’s right. As a CEO of.

[00:43:41] Joel Erway:

That’s amazing. I mean, it’s, it’s a shame, but I mean, it’s amazing that they’re doing 50 million, but, and he’s unable to see the growth block of what he wants. He came to you because he’s, I, I want what my client has or what my supplier has. He told me that you’re the person who helped him become this CEO, or, you know, this, this this leader and there’s, there’s natural resistance for a lot of people.

[00:44:04] Daniel Marcos:

And as a CEO, you have focus and in put time in really building the systems and processes and get the strategy. Right. And think about the future and understand your competitors. That’s a job of CEO. You have to do that. If you really want to take the company to the next level, if not one day you’re gonna hit the wall and the company is gonna go on.

[00:44:25] Joel Erway:

Yep. Love it, Daniel, this has been amazing, man. Number one, I didn’t realize. So when we dove into your, your, your backstory, I didn’t realize that you were in that you were in the financial sector. I didn’t realize that like that was where you kind of came from and how you’ve evolved into who you are today is that’s fantastic.

I mean, you know, it’s, it’s always awful to, to hear how Here to the experience of somebody who went through such a, such a bad experience, such as yourself when you’re a million dollars in debt. And but I hope that people understand that like when you get to that point and your vision is so shortsighted, like it’s important for you to really step back and see, okay.

You know, You had three conversations, you had three calls or, you know, one was a letter, but two were phone calls that helped pull you out. And like, here’s how you get outta that situation. And then here’s how you see the big picture of the trajectory of of an entrepreneur. And so then we went and we talked about those four stages of, of becoming a successful entrepreneur, successful CEO.

And you know, the stories that we, we, we talked about were, were fantastic. So you. Where can people go check out growth Institute? Where can people go check out more about you and, you know, the programs that you guys offer? You know, whether that’s, you know you know, the exit program, you know, let’s drop some links and, and be able to direct people to, to go check you out.

[00:45:44] Daniel Marcos:

So growth institute, we have most of the programs, and by the way, out of the 48 tools we recommend we have probably 30 or so of those course at the growth. So growthinstitute.com for the courses. And then my personal page is danielmarcos.co. And I have some slides there that people could download and see the stages and what happens on each stage.

So if they want to download some slides and really understand kind of the stages and, and numbers and what you have to do in each one, go to danielmarcos.co, and, and then you could download them.

[00:46:16] Joel Erway:

Awesome. Daniel. It’s been a pleasure, man. We’ll make sure we include those links in the show notes down below.

And if you’re listening right now, reach out to Daniel, let him know that you heard him on experts unleashed. And this is one brilliant, brilliant individual with such a wealth of knowledge across so many industries across so many topics I should say. You know, it’s been such a pleasure to have known Daniel for three or four years now I’m working intimately with him on a couple of projects inside of the Growth Institute. So please, please, please go follow him. Go follow what he’s doing. Over at the growth Institute, go connect with him. Let him know you heard him on the podcast, and we’ll see you on the next one.

Take care. Thank you.

[00:47:02] OUTRO:

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