SFR 153: How To Pay For Expensive Things With Your Business – Stephen Larsen

SFR 153: How To Pay For Expensive Things With Your Business

Jul 3rd, 2018 anchorwave

Multiple times I watched Russell Brunson (or others) do incredible things to pay for expensive stuff in their business. Here’s what I learned and how I’m modeling the same…

What if I told you that paying for expensive things in your business is just a matter of asking the right questions… would you be intrigued?

Keep reading, and I’ll reveal to you how I’ve used this principle to liquidate and scale my business without touching any of the money generated by my main product.

Learning to ask the right questions is the secret sauce for creating revenue generation that will take your business to the next level… How many commas would you like?

Stephen Larsen Secrets Masterclass

CASH FLOW IS KING

You probably know the famous Dan Kennedy quote:

He who can spend the most to acquire a customer, wins

Because of this philosophy, I aim to keep I want to keep my operating cash flow as free-flowing possible – so that I can use it for the sole purpose of acquiring new customers.

My funnel is doing really well. However, I’ve purposely kept my ad spend small because I wanted to set up business systems – I didn’t want my revenue to outpace my business and its ability to cope.

I also don’t want to use the money that my funnel brings in for living expenses or setting up systems. So how do I liquidate these expansion costs and remove them from my business?

LIQUIDATING LEVERAGE

Over the last few months, I’ve put together a formidable team to support my customers and me. But here’s the problem, A ROCKSTAR TEAM COSTS MONEY – a whole lot of money.

On a recent coaching call with a mentor, he revealed that the next question I needed to learn to answer was: “How do I hire people that I can’t afford?”

He promised that once I could answer this question, then my business would blow up.

So for the last six weeks to eight weeks, I’ve focused on answering that exact question.

It’s the reason why my team and my business are accelerating the way they are.

I’ve solved the problem and learned how to hire people that I can’t afford.

problem solution

It’s one of the questions I want you to think about answering too: “How can you hire people that you can’t afford?”

If you answer this question, it brings a new level of expertise to your business. I don’t even know all the stuff that my team does.

Problems get solved that I didn’t even know existed. And best of all, problems get solved in an expert way rather than a just good enough way.

I’ve never met anyone who’s made a ton of money just on their own.

It always takes a team. Everyone benefits as the entrepreneur and the business grow together.

team building

You don’t need a large team, but once your product starts to make money, you need to make team building your next move. When you create teams and systems – then you’ll be able to scale big time.

Russell always told me that going from six to seven figures isn’t a matter of more hours in the office, it’s a matter of leverage. Because of this, I’ve been figuring out how to leverage like crazy while keeping available cash flow at maximum.

LESSONS LEARNED

One of the best things about working at ClickFunnels (other than the insane amount of fun we had) was that I got to see how Russell reacted in challenging situations.

It was a masterclass on how to be a successful entrepreneur. When I began to model these traits, I couldn’t believe how fast my income started to skyrocket.

The great news is, that once you know what these character traits are, you can model them too.

In my opinion, modeling the traits of successful people is one of the major reasons why I been able to generate a lot of the wins I’ve enjoyed over the last few years.

I learned how to ask and answer questions with resourcefulness and intention – to view the obstacle as the way.

Learning from mentors

REVENUE GENERATION NOT VC FUNDING

There was this one time when Russell decided to try to get Tony Robbins for the 2017 Funnel Hacking Live.

We reached out to Tony’s team, and Tony’s team came back and said, “Sure, it’s gonna cost $****” I’m not going to reveal how much it was… but it was a butt ton of money.

Piggy Bank, Hammer, Coin Bank.

I remember we all took a deep breath; “Oh my gosh, how much???” But it was so cool to watch how Russell handled it. First, he goes, “Huh, oh my gosh, I feel sick.”

There was a moment where he was freaked out, and that’s appropriate when you want to buy something expensive. But then, he just said “Yes,” and instead of freaking out he started to look for ways to liquidate the cost.

Then he intentionally structured FHL in a way that would pay for Tony. Isn’t that interesting?

The event liquidated the cost of Tony Robbins. Funnel Hacking Live was a huge success. Russell had the kudos of having Tony Robbins speak – without having to take money out of his business to finance it. BOOM. How smart is that?!

Harmon Brothers

When we got ‘The Harmon Brothers’ to make the Gold Digger viral video, Russell used the same approach.

The Harmon Brothers charge half a million dollars for one video. They’re expensive, but they get results.

Instead of Russell going, “Half a million dollars – are you kidding?” Once again, he starts to figure out a way to liquidate the videos cost with either a campaign, event, or product.

He didn’t take money out of the business to fund the video… He created something that paid for the extra expense. He used revenue generation, not VC funding to grow the business. Genius, right?!

And so I started to apply this strategy to my business too.

REMOVING MYSELF FROM THE BUSINESS

I knew from watching Russell that I need to figure out what I want to do… and then figure out what I can create to pay for it

Before taxes and before costs, I pay myself eight grand a month. So I began to ask: “How do I remove eight grand a month from the cost of my business?”

The answer came: “Start a coaching program.”

Boom! I went and launched the coaching program, and that removed the cost of my income from my main product. Does that make sense?

Next, I wanted to create a content team – that team costs me twenty-six grand a month, so I asked the question: “How do I hire people that I can’t afford?”

And the answer came: “Start consulting.”

Recently, a lot of people have been asking me to fly out and consult on their funnels, “Well, ten grand a day and I’m your man.” BOOM – the cost of my team is liquidated.

Stephen Consulting

So that’s what I’ve been doing. I’ve been going through and figuring out different opportunities to remove the cost of my team, my salary.  All the hard costs that I have – I want to completely remove those costs from my main product.

You can apply this principle to any business cost you have – even if it’s not a Tony Robbins sized expense.

Stephen Larsen and Tony Robbins

QUESTIONS THAT LEAD TO SUCCESS

Here’s how it works:

Your brain will answer any question that you give it – so it pays to make sure you ask the right questions.

There was a time, not many years ago, when I was struggling to support my family. I didn’t have very much to show for my efforts other than seventeen failed businesses in four years. I felt like I needed a break.

Each evening, I’d ask God, “Why aren’t I successful yet?”

What I didn’t understand at the time was that I was asking the wrong question! If you want to find a solution you have to ask questions with the right intention.

FOR EXAMPLE (This is based on a real question I was asked at FHL)

  1. 1. Q: Can I get a discount on the ‘2 Comma Club X’ program?

No, wrong question! If you’re always looking for a cheaper experience – that’s what you’ll get.

So let’s reframe the question:

  1. 2. Q: How can I get the most impressive, most expensive things in life?

Now that’s a better question!

If you answer that question, you’ll create an asset or a skill that you can use at another time.

A few weeks ago, I shared with you how answering the question of “How can I get to FHL?” – was the reason I was able to secure the job at ClickFunnels.

I built and swapped funnels for tickets, flights, and hotel rooms – so by the time I got to FHL – I knew the CF software inside out.

The problem with the first question is that this sort of attitude will prevent your growth on both a personal and a business level. You’ll just keep spinning your wheels and getting nowhere fast. #frustration

Drag racing car burns rubber off its tires in preparation for the race

ANOTHER QUESTION FOR YOUR ARSENAL

Russell was in a room with a lot of brilliant people… I think it was at the Genius Network, but I’m not sure…

Anyway, one person recommended another question that will help you to take your business to the next level.

Here’s what they said: “Don’t figure out: ‘How do I do this?’ – that route takes forever. Instead ask: ‘Who’ knows how to do this?”

If you feel a bit stuck or overwhelmed, it may be that you are straying too far from your zone of genius.

It’s very tempting to try and become a ‘Renaissance man’ who is good at everything – however, this usually means that you become a ‘jack of all trades’ – average at a lot of things and excellent at nothing!

To prevent this tragedy from slowing your progress, the question you are asking needs to change from a “What?” to a “Who?”…

It’s time to start answering these questions:

  1. “How do I attract the right ‘who’?”
  2. “How do I liquidate the cost of the right ‘who’?”

You’ll find that when you start asking the right sort of questions then the speed of your growth both personally, and in business, is going to increase like crazy.

Don’t feel that you have to stick to the questions that I’ve shared in this article – get creative. Start asking questions with the right intent – and watch the magic start to happen!

Happy child playing with toy airplane

ACTION STEPS

If I had to sum up this article in two simple steps, then this is what I would want you to take action on:

  1. Find a way to liquidate ‘your costs’ from your flagship product. Keep a healthy cash flow so you can scale your product fast. Remember; “He who can spend the most to acquire a customer, wins!”
  2. Learning how to ask the right questions with the right intent is the best way to solve any problem. Remember; the obstacle is the way.

With these two principles on your side, your business will start crushing it in no time. BOOM!

Until next time – Have A Good One!

Got a question you want answered live on the podcast? Head over to salesfunnelradio.com and ask your question now.

The post SFR 153: How To Pay For Expensive Things With Your Business appeared first on Sales Funnel Radio Blog.