**This Video Should Be Required Viewing for Business Owners — Transcript & Summary | SozAI**
Source: https://sozai.app/transcript/required-viewing-business-owners/

Alex Hormozi guides a dental practice CEO on scaling from $2M to $15M revenue with actionable business strategies.

## Key Takeaways

- Scaling requires delegating critical tasks to trusted associates to increase capacity.
- Clear communication and patient education reduce resistance to seeing multiple doctors.
- Operational bottlenecks often stem from over-reliance on a single key individual.
- Pricing and payment plans should be optimized to improve cash flow and patient commitment.
- A systematic, step-by-step approach can transform a small business into a multimillion-dollar enterprise.

## What the video covers

- Alex Hormozi offers a step-by-step roadmap to help a dental practice scale from $2 million to $15 million in revenue.
- The business currently has three locations but only one main doctor handling all high-ticket patients, limiting growth.
- Key bottleneck identified is the reliance on the founder for critical clinical visits, creating a capacity constraint.
- Hormozi discusses delegating clinical tasks to associates to increase patient capacity and leverage time.
- Patient trust and the handoff between doctors is a challenge but can be overcome with proper communication strategies.
- The conversation covers clinical visit breakdown, sales process, and operational scaling tactics.
- Pricing strategies and payment options are also reviewed to optimize revenue and patient conversion.
- Hormozi emphasizes the importance of mindset shifts, education, and clear patient journeys to improve sales.
- The video includes practical advice on managing multiple locations and scaling the team effectively.
- Overall, the video provides a replicable framework for business owners to scale their companies by addressing operational bottlenecks.

## Chapters

1. 00:00 Introduction and Business Overview
2. 01:45 Current Business Challenges and Scaling Barriers
3. 03:37 Clinical Visit Breakdown and Delegation Opportunities
4. 04:59 Addressing Patient Trust and Doctor Handoff
5. 07:46 Sales Process and Payment Options
6. 12:10 Pricing Strategy and Revenue Optimization
7. 17:20 Operational Scaling and Multi-location Management
8. 26:00 Final Insights and Execution Advice

Answers

## Questions about this video

What is the main bottleneck preventing the dental practice from scaling?

The main bottleneck is that the founder doctor handles all critical clinical visits, limiting patient capacity and causing the business to stall when he is unavailable.

How does Alex Hormozi suggest overcoming patient resistance to seeing multiple doctors?

He recommends creating a video introduction to associates, setting clear expectations that different doctors specialize in different parts of treatment to build trust and smooth handoffs.

What financial goals does the dental practice aim to achieve?

The practice aims to grow from $2 million in revenue to $15 million over three years, with a profit goal of about $5 million.

## Full Transcript — Download SRT & Markdown

00:00

Speaker A

I'm about to help a complete stranger build a $15 million per year business. I'm going to give him a step-by-step roadmap on exactly what he needs to do.

00:07

Speaker A

And 90 days later, we're going to check in with him to see what actually happened. If all the business owners watching, I've scaled 10 businesses past 10 million, three past 100 million, and I've realized an important lesson, which

00:17

Speaker A

is that businesses behave in patterns at all levels. And so, you can take any of the principles and tactics and apply them to your specific business and industry at its current size. There are far more similarities than there are

00:27

Speaker A

differences. And so, with that being said, let's meet Hussle. Alex, how are you? Ready to rock?

00:34

Speaker A

Yes, sir. So, my name is Hussle Nazir. I'm CEO of Smile Magic Dentistry. We are a holistic dental practice that focuses on helping prominently women. Mhm.

00:46

Speaker A

Achieve their deserved nice teeth? Usually the women are the ones doing the research. The men follow after. Welcome [music] to Smile Magic Dentistry.

00:54

Speaker A

So, give me the dollars. Yeah, so these are some of our numbers. So, our past 12-month revenue is around $2 million. Our profit is right around 47%, about 960,000. And our goal over the next 3 years is to have $15 million in

01:09

Speaker A

revenue and about $5 million in profit. Has the goal always been to do that, or has the goal suddenly changed?

01:14

Speaker A

So, I've only joined the business about a year ago. All right. So, previously my dad, he was the owner of the practice. He didn't have the support system to actually grow the practice. So, he was essentially just making ends meet doing what he can,

01:30

Speaker A

working as much as he can. With me joining, it's been a matter of how can we scale and I've kind of tried to expand his horizons 'cause I'm not a dentist.

01:38

Speaker A

Yeah. So, I'm purely focusing on the business and just growing the business. So, but is he aligned with that goal?

01:45

Speaker A

Yes, it. Yeah. Okay. So, what's stopping the scaling right now? So, right now we have three locations, but one doctor. So, our staff, as well as myself, are essentially shuffling between locations. So, all the high-ticket patients are all flowing

02:03

Speaker A

through one person. The minute our main doctor, my dad, takes a break, business takes a break.

02:08

Speaker A

Do you have other associates at all? So, we had an associate over the past year or so. He's actually leaving to go to a master's program.

02:18

Speaker A

But, with him, the problem was we weren't able to actually fill a schedule. So, a lot of the time he was only working about a day, a day and a half per week. And for some reason, his show rate would be a lot lower than my

02:31

Speaker A

dad's. So, why is solving this important right now? I mean, my dad has given everything to the business. When I was a kid, he wouldn't be able to show up for soccer games essentially because the business needed him in it at all times. So, with

02:44

Speaker A

him getting older and me joining and seeing his past 30 years of hard work, if we're unable to actually fix this problem, it becomes a thing that will just die. Our business will will die if we're unable to solve this issue.

02:58

Speaker A

Got it. This will be really straight down the middle. This is good news. I mean, complex doesn't mean good.

03:04

Speaker A

[laughter] So, yeah, let's come over here. I'll I'll walk you through what we have to do.

03:09

Speaker A

[music] All right. So, the big issue is that right now you have your dad who's doing all the diagnosis of the people who are coming in. And then he also does the actual implant work. From a time perspective, does it

03:26

Speaker A

take longer to sell or take longer to deliver? Longer to deliver, I think. Okay.

03:30

Speaker A

So, of the elements of delivery, how many how many visits are is required to do the treatment?

03:37

Speaker A

It would be approximately of actual clinical work, about five visits. Okay. So, it's five visits.

03:44

Speaker A

Of all those five visits, does your dad need to do all five? No. Okay. So, does he currently do all five?

03:51

Speaker A

Yes. Okay. So, of those So, let's say we've got we've got sale, right? Which I'll get to in a second.

03:57

Speaker A

So, we have the sale, the sales motion, and then we have call it visit one, you know, two, three, four, five. Okay, which of these can he not do?

04:06

Speaker A

Depending on how complex like the actual pulling of the teeth are, that's really where some of our associates have gotten hung up.

04:13

Speaker A

All right. So, potentially he wouldn't need to do visit five. Okay. So, we cannot search that.

04:21

Speaker A

All right. Visit five. And then where does he pull the teeth? It'd be visit one.

04:26

Speaker A

Okay. So, he this one's a an important one. Okay. So, he has to do that one. What else? So, the rest of these are Visit two, he pretty much needs to needs to do it.

04:37

Speaker A

That'd be like the bone graft. So, essentially laying the foundation. Okay. for the implant.

04:42

Speaker A

I'm not going to push back, but let's just we'll keep going. Okay. And then visit three is a checkup, so So, he doesn't have to be there?

04:48

Speaker A

Okay. And then visit four is implant placement, which I would say is less important than the bone graft, but very important. So, I would still I would still say he needs to do Let's say you just had an associate

04:59

Speaker A

level person. Is there any reason the associate couldn't do these ones? The only reason why they wouldn't be able to do those three would be just based on their clinical ability.

05:08

Speaker A

Well, this is a checkup. Yeah. So, They can do that no matter what. Yeah.

05:12

Speaker A

That's probably some sort of last conversation and also checkup. Okay. So, this one is a very basic thing, right?

05:21

Speaker A

Just implanting is the bone graft is pulling in the graft is harder than the than implant.

05:25

Speaker A

Correct. At times, yeah. Okay. So, I mean, wouldn't associate They are doctors correct? Yeah.

05:31

Speaker A

Right. So, wouldn't associate be able to just learn how to do the implant? Definitely.

05:35

Speaker A

Would the guy that you had be able to have that skill if that was like a priority to teach him how to do this one thing?

05:39

Speaker A

Yeah. Okay, cool. So, let's assume that we can actually get that off of his plate because right now your cap that was it like 25-ish a month, I think.

05:49

Speaker A

About 25, yeah. About 25 to 30 patients a month. So, that's that's a huge point of leverage. It's the greatest point of leverage. So, if we just cut his There's six visits to make this money. Three of them are the most important that require

06:00

Speaker A

the most skill. The other three, not so much. It's like that can take us from 25 visits a month to 50 visits a month, provided we can increase the lead flow, which we'll get to in a second.

06:10

Speaker A

But, do you think that that would be like your dad would be on board with that?

06:14

Speaker A

I think he would be on board with it. The only pushback I would ever say is more about the patient journey.

06:22

Speaker A

Sure. So, I think that a lot of the time patients get very like connected to the doctor, and I think having the handoff has been the hardest part, especially after doing some pretty like intense visits. They have a hard time trusting a

06:36

Speaker A

different doctor. That's not impossible. Yeah. It's Yeah, of course it's not impossible. There's dental clinics that have many doctors. Of course it's not impossible.

06:43

Speaker A

Um but, that just sounds like what I would consider to be a uh just a limiting belief. Yeah. So, all he has to do is just have a um like he could film one time a video that's that's with the doctor that he's

06:55

Speaker A

edifying. He says, "Hey, you know, this is Johnny. Johnny's awesome. And so, Johnny actually specializes in the next three visits that you're going to be coming out with us. And so, this is literally all he does. And so, he's

07:04

Speaker A

going to take care of you for X, Y, and Z. Um and so, we've already laid a amazing foundation. You've been healing great.

07:09

Speaker A

And that's what like the the road map is. And so, if you have any questions, you know, you can give Johnny a call.

07:14

Speaker A

He'll be, you know, available to you. And uh yeah, so next time you see it, uh you're not in the wrong place." Like, "Ha ha ha." That's it.

07:20

Speaker A

Got it. And you can obviously set that expectation here. It's like, "Hey, you're the the work is split between two of us. One is One we specialize I specialize on this side, he specializes on that side. And that's it."

07:31

Speaker A

That's like That's totally mental, th

07:41

Speaker A

to feel special. Yeah. But, there are other humans who have hands who can learn things.

07:46

Speaker A

100%. Right. And it's like, okay, do you want to be right or do you want to be rich?

07:50

Speaker A

And this is one of those scenarios. And I'll tell you what he has to do like what you have to convince him obviously just that he has to be positioned as the architect or the artist. Um and then the

07:58

Speaker A

other guys are the hands, and that way it'll kind of preserve his I won't say ego, but like it's like you're still the puppeteer. You're still the you know, you're the conductor of the orchestra. Um and then from a from a

08:08

Speaker A

positioning perspective, that's what you would say to the patients. It's like the actual the hardest part is designing the the procedure and the process. Um once the plan's laid out, it's really just executing it.

08:17

Speaker A

Got it. Um and so that's that's easy to position. All right. So, that's thing one. This double This gives of a gives us a double in capacity.

08:24

Speaker A

Now, that guy was quitting, but if he was able to take all these appointments on, would that fill up his calendar?

08:30

Speaker A

For the most part. Okay. Well, I mean, in my mind, I would say like maybe don't fire him if he was a decent guy.

08:36

Speaker A

Um because that would double the potential revenue of the business and take you from two to four.

08:40

Speaker A

That feels worth it. Yeah. And you can make up the extra two million in whatever you're paying the associate.

08:45

Speaker A

Definitely. Okay. Okay. That feels That feels not not dumb. Hey Alex, it's been 90 days since I saw you last, and here's an update about what's going on and how things are going inside the practice. I hired two

08:59

Speaker A

associates. They took off all of the less complicated work from my dad, and it's allowed us to do more consults, and we're still able to fulfill the patients' needs when they need it, and schedule them closer to events. So, the

09:19

Speaker A

trade-off between doctors has been much easier because we're framing my dad as the architect, and we're framing our offices as a team of doctors, not just him. So, when we tell them they're getting taken care of by another doctor

09:35

Speaker A

for some other treatment, patients are a lot easier and a lot happier to do so, and it's made the transition much faster.

09:43

Speaker A

And so, the fact that you got two associates on in such a short period of time, and it's you know, kudos to him for actually just following following the steps and doing doing what we all did. Okay, the next

09:53

Speaker A

thing is when So, right now you have Google Ads that are working, obviously, right?

09:59

Speaker A

Yeah. So, I would just actually continue to encourage you to just keep increasing Google Ad spend.

10:08

Speaker A

Okay. Cuz right now you're spending What are you spending a month? Like 14,000 like that?

10:12

Speaker A

12,000, yeah. 12,000, right? So, if you have $12,000 a month, like you're not in you're in Orange County.

10:17

Speaker A

Like you could probably go to several hundred dollars a month before you even get close to capping that area. So, like there's a lot of runway there. But if we double it, we can double the capacity, we double the spend. Now, number three

10:28

Speaker A

is that you have like or your dad has like a 85 or 90% close some very high close rate.

10:33

Speaker A

Yeah. Um I would do a couple things. So, number one, when I see those kinds of close rates, I would increase price.

10:42

Speaker A

Because with those kind of close rates, there's a probably a lot of room there.

10:47

Speaker A

What payment options do you provide people? So, it depends on what they qualify for.

10:51

Speaker A

So, either with an implant patient or a long treatment plan, they pay as they go. So, they would pay over the course of a year.

10:59

Speaker A

Mhm. Whenever they get the work done, they pay for that that visit, essentially. If they choose financing, they pay the entire treatment up front.

11:06

Speaker A

Mhm. And that's it. What percentage of people do financing? Approximately maybe 30% of the treatment plans over 15,000.

11:19

Speaker A

30 to 50% on say. I feel like you could get like 80 or 90%.

11:23

Speaker A

Like doing that. Cuz like my position would be like, "Hey, so there's two ways to pay. You can either pay on your credit card and pay whatever you want, or you can pay using financing, but either way we need to pay now to get

11:31

Speaker A

this whole started. Okay, so you would change it to a pay now I prefer that, especially from a cash conversion cycle perspective. And that's not that uncommon.

11:40

Speaker A

Do you think that it would be wise to give them almost like a discount to prepay? Cuz the way I mean, obviously, it's more of a limiting belief, but the way we've always done it is pay as you

11:50

Speaker A

go per visit. No, I mean, I would I would be like, "Huh, okay, I guess we could do that." You know what I mean? Like, I would make it seem odd.

11:56

Speaker A

[laughter] Okay. Um but yeah, you can give the incentive, um if you want, but it's like what this is what most people do. Cuz you're going to pay it either way cuz like believe me, you can't half finish your mouth. So

12:03

Speaker A

like, you're going to have to end up paying it, so you might as well just prepay. Um and that's the way because it allows us to pre-order some of the things that we need um for your specific case.

12:10

Speaker A

Got it. That's how I'd script it. So I would just say like, "A B credit card {slash} financing and then you downsell a payment plan." Does that make sense?

12:23

Speaker A

Okay. We shifted our payment collection process to paying per visit to paying up front and it has been the biggest unlock for us when actually growing and our revenue have gone up substantially.

12:39

Speaker A

We've gone from averaging 160,000 a month to almost we're on track to hit 500k. It is unreal. I never thought it would happen this quickly.

12:52

Speaker A

Well, I did. Um That's really awesome. That um that that makes me feel good.

13:00

Speaker A

Now, from a pricing perspective um you're charging 14 is the average three-year value of these implants?

13:07

Speaker A

Cuz that seems low. It is low. So the three-year value of implants is a lot higher. 14,000 is our overall including patient recall.

13:15

Speaker A

Got it. So, with implant patients, our average our average ticket is around 28,000. And is close rate is still 80 whatever percent?

13:24

Speaker A

Yeah. Yeah, I mean This is after we increased prices, too. First thing I did following your following your judgment nothing happened, right?

13:31

Speaker A

Increased prices by 15 to 20%. Mhm. Originally, it was whole world is going to end.

13:37

Speaker A

Yeah. And then oh my and nothing happened. We and I ended up trying to give more value Mhm.

13:42

Speaker A

to patients and close rate increased. Yeah, because it's a luxury item. I mean, people rather technically it's a premium item, but I think I would go to 35k.

13:53

Speaker A

Okay. And how long had it been since your dad had raised his prices when you got him to raise his prices?

13:58

Speaker A

Three to four years. Yeah, and the thing is is that in that time period, like the money supply went up by a lot more than 20%.

14:03

Speaker A

Yeah. So, uh like that change was not even that was like still just make that was just right-sizing. It wasn't even really a price increase. That was just right-sizing. So, I think given your dad's experience and the fact that he's

14:16

Speaker A

closing 85 whatever plus percent, um I doubt you're going to lose a lot, especially because of the nature of how you're having people pay.

14:23

Speaker A

It's because the actual monthly difference is going to be negligible, but it'll be a material difference for you guys.

14:28

Speaker A

Definitely. Definitely. Extra 7,000 per scan will add up, especially if you can pull it up front.

14:33

Speaker A

Okay. When we increased prices, our average treatment plan was 28,000. We increased prices 20% and our average treatment plan is now 44,000 for implant cases. And It's pure profit.

14:48

Speaker A

It's pure profit. I thought patients would be hesitant, but our close rate has gone up about three to four percent, I would say.

14:58

Speaker A

And patients are happy to be in an office where we spend time and we explain things and we're giving more value, to be honest. And since we are charging more, we are over-delivering on the service. We are giving them the

15:15

Speaker A

best experience they could ever have and patients have never been happier, to be honest.

15:20

Speaker A

He's now entering into the virtuous cycle of pricing, which is that the more you charge, the better the customer you attract, the more you can over-deliver for them, the more profit you make, the better the talent you can bring on, the

15:30

Speaker A

more you can over-deliver, and so it's a virtuous cycle of going up market rather than competing down. A lot of goods, especially if you're selling premium, are Veblen goods, which basically means that when the price goes up, um demand

15:42

Speaker A

also goes up, and health-related things, specifically cosmetic, often has that relationship. So, it's like, do you want to go to the $50 tattoo parlor? No. Um and so, if you have the money, you typically want to spend the money for

15:58

Speaker A

the best person because you want to massively pay down your risk because, you know, getting your face messed up for a nose job or, you know, whatever is going to be so much higher stakes than spending a little bit

16:10

Speaker A

more money. And so, I think a lot of businesses are in the position where they're actually selling around that specific thing, but they don't realize it, and so they're leaving a huge amount of pricing power on the table, but also

16:19

Speaker A

just the additional cash flow to provide a significantly better experience. So, he went from closing fewer people at a lower price with lower gross margin that he could deliver less to uh then have to compete with other people with less margin to now selling

16:32

Speaker A

more people at a higher margin you can over-deliver and continue to reinforce the brand and bring on these other docs, and this is like this is how you scale.

16:38

Speaker A

Another quick quick little thing is that walk me through the sales process really quickly because to help support this price increase, I just want to tweak sales motion if we can.

16:47

Speaker A

Okay. So, someone clicks, they schedule uh you know, they call in or whatever, they schedule their appointment, okay?

16:54

Speaker A

Walk me through what happens after like from the time they schedule till the time they give you money.

16:58

Speaker A

So, they schedule, they receive a reminder 7 days before their appointment, they receive a second reminder 3 days, one last one day before, one day of.

17:08

Speaker A

So, the 7 3 2 1. Yep. Okay. And then they show for their appointment, and that is their initial consultation. No work gets done. It's purely potentially x-rays and a right?

17:20

Speaker A

Yeah. Yeah, visual consult. And Well, let's actually walk through that in more detail. So, when they actually walk in the door, what happens?

17:26

Speaker A

They walk in the door, we greet them, and they get seated in the chair immediately.

17:31

Speaker A

Okay. Once we take the x-ray or the CT scan, they come back to the chair.

17:36

Speaker A

Okay. And it takes anywhere from 2 to 4 minutes. Got it. So, they sit back in the chair, we pull up the scan with them, and we essentially diagnose what they can't see or what we can't see visually.

17:48

Speaker A

Mhm. So, you actually get the patient, you say your teeth are up. Got it. Uh when does it transition to okay, give us money?

17:55

Speaker A

So, that transition doesn't happen in the chair. That happens once he diagnoses and things are complete, they will either sit down with myself or office manager, and we will And that's they get out of the chair and they go somewhere else into like a sales

18:07

Speaker A

room. For an office. Yeah, yeah. Okay, got it. So, every So, two things that we need to I would tweak is number one and this will help you out, but I would put I'd grab everyone's ID on the way in.

18:19

Speaker A

Okay. So, I could scan it and then confirm identity. Plus, I would swap that for their credit card and say, "Hey, it's just how we complete our patient profiles." And that way you already have payment method before you even ask for

18:28

Speaker A

payment. Much easier way to do it. Then, you're going to go to chair, rigamarole x-rays etc.

18:34

Speaker A

Then, afterwards, they're meeting with you, right? You have your your one-on-one with them in office.

18:40

Speaker A

All right, in the front office or whatever, right? Um before they actually sit down. So, this you have your x-ray here, right? And then there's this period where they come into this office.

18:51

Speaker A

Okay. This is where before they actually sit down with you, you should have them watch a little VSL.

18:56

Speaker A

Little video sales letter. And so, maybe you have them wait in that office for like 5 minutes, 10 minutes.

19:01

Speaker A

And while they're there, you just give them this iPad, "Hey, be right with you.

19:03

Speaker A

Watch this. That'll give you a little bit more context on what the doctor just shared with you." And then it's just like basically a ton of testimonials.

19:09

Speaker A

Um this I'll give you the the the TLDR. You can the recording. But, um promise of the video like, "Hey, in this video I'm going to show you how we transform people's mouths. Um pain that you're avoiding, which is like and so if

19:20

Speaker A

you have them in sure you've had pain or you're like you're not confident with your smile, you know these pains better than I do. Um our process will help you fix that. And here's proof number one, proof number

19:29

Speaker A

two, proof number three, which are three or four for different avatars. And so that's what we'll walk through is kind of like our our four-step process in this video. So, then we go to big idea number one, which is like the old way of

19:37

Speaker A

doing things is like this. The new way our way of doing it is like this and this is the core reason that we started this practice and why so many people have bad teeth and why our, you know,

19:44

Speaker A

patients are so happy. Um and that's the core that's the core big idea. Okay.

19:48

Speaker A

And then you just have what are the what are the common objections that people bring up in that sales consult?

19:52

Speaker A

Which is like some people have some questions we like to cover them ahead of time, which is, "Hey, you know, um does this work for tiny teeth?" I don't know, whatever. Like you know, like you'll know you know what the objections

20:01

Speaker A

are. Um and then with each of them you'll follow through with uh this is what people think, this is uh what's wrong why it's wrong, this is what is true, and then here's proof.

20:11

Speaker A

Okay. And for each one of them it's basically a simple objection overcome for each of them. And then after that it's just proof of just basically before and after and people saying, "Oh my god, this is amazing." Okay.

20:19

Speaker A

And then what that'll do is because if we're going to have an increase in price, I want to give you more tailwind to do it.

20:25

Speaker A

Okay. And would you recommend going over pricing the VSL as well? Like going over you can do a range. You can do a range.

20:32

Speaker A

It depends on the number of teeth and and whatnot. But our range can go from here to here. But you have you already have good close rates, so I don't want to mess with too much. But like you

20:38

Speaker A

basically never sell less with a VSL. Yeah. And if you have already a a form of payment on file, it's easier to do you want to use the card on file? It's just very easy.

20:47

Speaker A

Yeah. And so to like you don't have to take out the wallet again. It just decreases friction, makes it very buttery.

20:52

Speaker A

Nice. That make sense? Very nice. I add in VSLs. Every patient gets the VSL when they book an appointment and then we show them a VSL while they're waiting for me to present the treatment plan.

21:04

Speaker A

It's made the process much more smooth because we frame it as the biggest investment they'll ever make in their life when it comes to their health.

21:12

Speaker A

Patients know exactly what to expect and they have less questions, so it makes the process a little bit faster, in my opinion. And I've really there's been no downside.

21:24

Speaker A

It's only helped, to be honest. So you have two levers in a sales motion. You've got qualification and education. Qualification is to make sure the right people are showing up.

21:33

Speaker A

Education is to make sure they're in the right mindset of showing up as in the highest likelihood of of being willing to purchase. And so if you have sales processes that take too many calls or take too long or there's too many

21:42

Speaker A

questions, usually you need to educate more ahead of time. Now the downside of educating customers or prospects is that you're going to lose people because not all the people make it through, but there are plenty of motions, especially in person

21:52

Speaker A

selling environment like the one that Hassie is in, that you you're not going to lose anyone. They're already at the office and so there is absolutely no downside to simply educating your prospects more prior to asking them to

22:01

Speaker A

buy. Like there's just there's no downside. You literally just make more money, sell more people, they're more convicted, you have fewer conversations, the conversations are shorter, they buy faster, they prepay more. It's all upside.

22:14

Speaker A

Big picture, you have like what I would consider be a very like straight down the middle, which is like you're supply constrained, this doubles our capacity, long term we need to take up one and two and give that to another doc as well. So

22:25

Speaker A

your dad can just focus on the diagnosis. If you just do that, that can get you to 12-ish million just from doing that one change. And so you'll have to break your dad's beliefs around the fact that like what my father's a

22:36

Speaker A

physician, so like a surgeon and so I understand the the archetype. There's a lot of romanticism around like I have a lot of repetitions on this and like no one will be able to teach me or no one's

22:44

Speaker A

going to be as good as I am. I'm not saying your dad's like like that, but many surgeons are. And so there has to be a fundamental belief shift, which is that like if you learned it, so can someone else and then

22:54

Speaker A

re-edifying him as like you need like for for this business to scale, his identity needs to change from I'm the best dentist to I'm the best teacher.

23:03

Speaker A

Yeah. Like if you can make that change, I think this thing can get really good.

23:07

Speaker A

If he if he holds onto the chair, uh it'll be very difficult. 100%. Okay.

23:12

Speaker A

And with this, at what point do you think it would make sense to possibly buy new locations?

23:18

Speaker A

We need to we need to fix all this stuff first. Correct. And right now, there's no point in adding another practice cuz you don't even know how to run a practice without your dad.

23:26

Speaker A

100%. Right. So, it's like that has to happen before any of these other conversations can really occur.

23:31

Speaker A

When it comes to scaling, I thought we would have to open three or four more offices to really hit five or 10 million dollars, to be honest. But with how we've been able to scale in the past 90 days, we might hit our goal

23:48

Speaker A

without opening any new offices. I think, like you said, my dad is a teacher, so we need to frame him as a teacher and actually teach.

23:55

Speaker A

If we can teach our doctors to do better work at a higher level, I don't see it being a problem, and I think it'll unlock maybe 3x, possibly 3 to 4x.

24:07

Speaker A

And so, this is the the quintessential nail it before you scale it. A lot of people think they need to scale to make more money, but usually you need to nail it to make more money, and then you make

24:15

Speaker A

so much money that you don't know what to do with the money, and that is when you scale. It's I think it's one of the big, especially brick and mortar, the big misconceptions. They're not making as much as they want, so they're like, I

24:23

Speaker A

guess I should have more locations, when almost always you should make the location that you have significantly better and more profitable. Like, I cannot It's probably one of the more mistakes that gets made in brick and mortar. So, yeah, kudos to him for

24:34

Speaker A

actually just following through the steps. And yeah, when you have, you know, in the business probably good, we can look at capacity for the office space, but like as long as demand gen is not a problem locally, which I doubt it is, um he

24:45

Speaker A

might be able to get that location to 10, maybe even 15. And then we look at, okay, maybe if we had three offices, then we can go to 45 million, which becomes much more interesting. Um instead of having three offices to get

24:54

Speaker A

to 10. And so, uh yeah, kudos to Husey for uh following the following the steps and actually just executing.

25:00

Speaker A

That said, I'll just add a little bit of a tidbit for these guys because you're just getting into it. Um but the speed to lead is especially with Are you doing PPC?

25:09

Speaker A

Yeah. Yeah. Um it it is the most important platform for speed to lead. Yeah.

25:14

Speaker A

Like talking like 60 seconds because you have super high intent people, but they're shopping. They're looking around and so it's most of the time, I don't know the stat, but it's very high. Um the first person who responds is the

25:24

Speaker A

person who gets the gets the customer. Yeah. That's the one thing that I've been focusing on.

25:30

Speaker A

Yeah. This is killing you cuz a big part is like he's booked out 15 to 30 days in order for him to do these diagnoses, right? And you're losing money there.

25:37

Speaker A

Mhm. Okay. Perfect world would be this. Like perfectly efficient world that I think will maintain sales uh percentages is that um they come in, greeted, whatever, and then when they when they walk into me with you, if possible, if

25:51

Speaker A

he says "This is my guy. He's the man." He just transfers authority. Says, "He's seen more of these cases than anyone. Like he will definitely help you out. I'll be with you as soon as we get into the DEXA

25:59

Speaker A

rays." He just needs to do that. Just edifies you and then you'll have the whole frame. Then he'll come in, razzle-dazzle, and then you close.

26:07

Speaker A

Got it. Cuz in that way, cuz if he can just basically the only time How long is the DEXA rays diagnosis part?

26:13

Speaker A

1 hour 15 We we book out Right. Yeah. That's terrible. And so, that's why it's taking 15 to 30 days cuz like you have 70% rates, you'll probably get closer to 85 or 90.

26:21

Speaker A

Mhm. Um if that's the case, that would give you a a 20% lift in revenue Okay.

26:26

Speaker A

and return on ad spend just from that one change. Because you'll just move you'll just pull it forward. Because then it's like, "Great. We can get you in tomorrow." Cuz they're they're literally they have pain.

26:36

Speaker A

Exactly. 100% we they want you to solve the pain. Um and if somebody else can see them tomorrow, they'll see them and not you.

26:43

Speaker A

Especially for a customer that's not warm or referral. Yeah. Right? So, I see this as super material.

26:49

Speaker A

By hiring doctors and allowing them to take care of the easier, less complicated work, we've been able to have our new patients booked within 7 days. Our close rate has gone up because patients are seeing us sooner while

27:07

Speaker A

they're still in pain, and our show up rate has made a big difference. It It's only about 10% higher, but 10% with the amount of patients we're seeing is a huge difference and a huge unlock when a patient's really in pain, they're coming

27:22

Speaker A

to see us, and we're getting them in as soon as possible, and we finally have the space to actually get them in.

27:30

Speaker A

Speed is almost always like if you add speed to any sales process, sales will almost always go up and profitability will almost always go up. Just period.

27:38

Speaker A

If you have more availability where more people can come in and you have almost similar cost basis, you will just drop incrementally more money to the bottom line just by doing things faster. So, you have fewer competitors who compete

27:47

Speaker A

for the same business. People are willing to pay premiums for speed. Um they will show up more often, pay more, like every CAC reduces as in your cost of getting customers goes down, close rates go up, like everything

27:58

Speaker A

across the board is improved with speed. And so, if you were somebody who's got a business that has customers that are coming at a delay, or they have to book multiple weeks out, like you are significantly exposing yourself to

28:08

Speaker A

competitors who are faster, and it's better to put yourself your old business out of business and then have your new business than have somebody else do it.

28:15

Speaker A

Other than that, the business already runs really good margins. The rest of this is fine.

28:19

Speaker A

Um but this would be the This would be the next steps. Got it. Again, when I see prices went up, close rates went up, what that means is that, especially in the market you're at, and for the when I

28:30

Speaker A

see market, I mean the geographic market, but also the avatar itself, the people who are walking in the door, they they are correlating price with risk and quality.

28:43

Speaker A

And so, they're like, I this is this is a complex procedure. I'm going to use my mouth the rest of my life. I want to make sure it's done right. And for that person, an extra, call it, $100 a month is going to mean

28:54

Speaker A

absolutely makes me no difference whatsoever. But them getting an inferior uh procedure is going to make a huge difference.

29:01

Speaker A

Huge difference. You raised price and conversion went up. Yeah. So, keep raising price. [laughter] At what point do we know that we should stop raising price?

29:10

Speaker A

Well, when conversion times price goes down. Okay. Not when you sell less, cuz sometimes you will sell less, but if you have a 50% price raise and you sell 10% fewer, you should continue to keep that price, right?

29:20

Speaker A

We're at a plus. Right, exactly. You're at a You're at a a plus plus. You're closing more at a higher price.

29:24

Speaker A

Yeah. There's going to be a point where you close the same at a higher price, and that's still good, and there's a point where even after the curve, you close even at a higher price with even a little bit less than the and the math

29:34

Speaker A

still makes sense, but it's just a pure math equation. I also understand the nature of high-ticket sales like this, which is very difficult to get. You know, maybe he's having a bad day, whatever happens.

29:42

Speaker A

Um but I think you're very safe to continue to raise for a minute. This is just like probably the first of maybe another one after this.

29:49

Speaker A

Got it. And then the one thing I was going to start doing is just doing like organic content.

29:55

Speaker A

That reminds me. I was going to bring that up to bring it up to you.

29:58

Speaker A

So, what I want you to also do is re-engineer the process. I'm sure there's these reaction moments when they get to see their teeth and like they'll look bad, right?

30:06

Speaker A

Yeah. Okay. So, we just want to have this big mirror in your hallway where you can have people kind of walk up blindfolded or like not see it or just you want to basically capture the reveal moment. And you will probably

30:18

Speaker A

already do capture the before moment, I'm guessing. A lot of the time we don't.

30:21

Speaker A

Okay. Well, that needs to get integrated in the process, right? Um and so that becomes your posting. Like every single before and after that you have at your clinic should get posted, but you can have multiple versions of this.

30:36

Speaker A

So, think about one is like the uh story version, which is like um Um, Angela showing her before and then showing her after, and it's like, yay. And then there's the uh carousel version, which is like images that you might still put

30:49

Speaker A

the story as the third third tile that you'd post. Um, you can do a case study version of this, which is like your dad or you reviewing the case. So, this is Casey, she came in with an ex you know,

30:58

Speaker A

XYZ micro underbite. I'm making it up. Right? Um, and so this was an interesting case for XYZ. And so and then but it's but then you're immediately flipping it to like, so if you're struggling with this this and

31:08

Speaker A

this and this, you don't have to struggle with that. Like these are super solvable problems. All people just don't know it. That's why I'm making this content.

31:13

Speaker A

And then with all of that stuff, you can just CTA to lead gen. Okay.

31:17

Speaker A

I didn't want to add a separate channel because like this is the you're already doing this. Let's just do more better on this.

31:23

Speaker A

Um, but as you like basically if you were to come back, I'd like in a year, I would say like, okay, this is going to be our further expansion. And so what's difficult with small businesses, there's whenever you have a pipeline, if you as

31:35

Speaker A

long as you're not supply constrained, which you are. [laughter] Uh, more marketing on a supply constrained does nothing.

31:40

Speaker A

Yeah. It does not increase throughput. And so it's like we have to solve the supply constraint first.

31:45

Speaker A

And then the other other things out of the pipeline can increase and then that increases throughput. But we have to solve that first and then this alone will match your throughput. So, could we do it? Yeah. Is it a constraint? No.

31:58

Speaker A

Will it take resources from you to think about? Yes. If you do all this stuff and you have bandwidth, sure.

32:03

Speaker A

Got it. Got it. The reason I was at least thinking about it Yeah. was I'm never going to tell you to advertise less.

32:08

Speaker A

[laughter] Okay. Small businesses like more people know about yourself, the more more money you make. Sure. Unless you have no way to actually capitalize on it.

32:20

Speaker A

Yes. Okay. How many employees you guys got? Nine, including me. Nine. All right. So, where are we at on the scaling roadmap? So, you are you're right at the kind of prioritize to productize stage. Notice what we were

32:34

Speaker A

doing is prioritizing the things you need to do and trying to develop productization of the actual delivery.

32:40

Speaker A

It's almost like these things make sense. Um And so um you do have a specialized product that's priced to serve a richer richer after. So you already have this, which is why I like from a business perspective you're probably closer to

32:52

Speaker A

here. From a marketing angle, free more free better stuff. Um that's [clears throat] where this part that I was referencing would kind of come in and that will kind of graduate here. And so it's common for businesses to be split between multiple stages at

33:03

Speaker A

for different kind of functions. Yeah. From a sales perspective, I think you just started tracking these basic KPIs.

33:08

Speaker A

So like you have probably more along this product size step. So spend more on this down messaging and new offer.

33:16

Speaker A

Fair enough. [laughter] Right? Create sales aids and materials. Right? And the VSL sales aids, right?

33:25

Speaker A

Build a proper CS playbook to onboard and train team to answer questions. So that is partially like how can we get the team to do some of these pieces and then obviously like overtime they're going to be taking over more of the

33:35

Speaker A

delivery. Agree. Understood. Make sense? The fact that you're at this stage to graduate? Fair enough.

33:41

Speaker A

Cool. Fair enough. Alex. Yeah. And by the way, this is free. If you're a business owner and you're like what stage am I at? What should I do?

33:47

Speaker A

Download this. Each one of these comes with like a 90 plus minute video that breaks down in way more detail than I just did in 10 seconds, um what to do at each stage. So if you want that, you can go grab it. I'm sure

33:55

Speaker A

the link somewhere. Meeting Alex has been on my mind for a little while now and I know with the amount of value he's provided to me inadvertently, not knowing me, just providing content to the masses, he has already changed my life without him

34:11

Speaker A

knowing it. I've told myself going into this that no matter what he says, I know for a fact that I will come out on top because it's the insight I've been wanting for years.

34:24

Speaker A

And it's the insight I can only dream of. Well, sweet. So you shifted it sounded like you shifted more to more payment up front.

34:31

Speaker A

Raise the implant pricing. Speed delete is solid. You held off on scaling to the new location. Um, yeah. So, all in all, what's what's revenue at now? Run rate?

34:43

Speaker A

On run rate, we are right at 3.3, I believe. Oh, hell yeah. So, we're right at, I believe it's 270,000 a month. When I saw you last, I think we're at at 2.8 run rate.

34:57

Speaker A

Okay, 2.8 2.8 to 3.3. So, what's that? So, that's a 7% lift in that.

35:05

Speaker A

Yeah, 7% a month for some. And from averaging 160, our best month before this was 290,000.

35:13

Speaker A

And now we're about at 500,000. I never thought it'd be possible with the same team doing the same things we're currently doing. Honestly, Alex, thank you.

35:25

Speaker A

Thank you so much. I I have a lot of gratitude for your team, for you, for what everyone has been doing. Just the advice you've been able to give when it comes to fixing limiting beliefs. I think that's been the biggest

35:37

Speaker A

thing. Unlocking belief conviction in myself, in my team, in my dad, and our doctors has been the biggest unlock of what's possible. Why not?

35:49

Speaker A

Why can't we is the question. How fast can we do it? We'll keep it going.

35:56

Speaker A

Yeah, nothing to add there. I mean, it was all him. And so, uh, you know, the kudos should go to him because a lot of people, you know, watch YouTube videos, they they uh, read my books, but they don't

36:06

Speaker A

do anything about it. And so, I guess one of the one one of the nice things about this competition is that, um, people have public stakes [music] around around taking action. And, um, I think someone else said this, they

36:19

Speaker A

said, "I've never worked so hard in my life." And I find that really interesting cuz it's like this whole time you've been working for you, but only now you want to work harder.

36:26

Speaker A

[music] And I'm trying to think like how can I recreate that stimulus or that those conditions for entrepreneurs so that more people experience that. I mean, in my weight loss business, you know, we started running these challenges and people lost more weight

36:40

Speaker A

than they'd ever lost in their lives, but it's because we had this external, you know, carrot that we would leave there, which is that if they hit a certain goal, they could get [music] their money back as credit towards more

36:48

Speaker A

service. And um it'd be be really interesting to figure out a way to do that again for entrepreneurs, but you can see what happens when you have correct advice, ruthlessly executed, you get big results.

36:59

Speaker A

All right. And so, that was this episode of Scale or Fail. Stay tuned for the next one as they all compete for $100,000 and a year of working on scaling.

Topics: Alex Hormozi business scaling dental practice growth operational leverage patient journey delegation pricing strategy business roadmap small business growth entrepreneurship


---
This is the markdown twin of https://sozai.app/transcript/required-viewing-business-owners/ — the same content, without the markup.
Published by SozAI (https://sozai.app). Reuse and quotation are allowed with attribution and a link back.
Machine-readable index: https://sozai.app/llms.txt · data API: https://sozai.app/api/