SFR 295: The Day After The Million Dollar Day – Stephen Larsen

SFR 295: The Day After The Million Dollar Day

Jan 8th, 2020 anchorwave

You CAN sell too fast!

And although I’d rather have that problem instead of no sales, here’s how I kept the biz alive while we rebuilt our business structures…

Q: Sooo… what happened the day after my million dollar day (1.6 million to be exact)…?

You might be thinking, ‘I bet you threw a party, Steve!’

How to run a million dollar business

BUT…

*NOPE*

You’d be wrong!

The answer is something quite different

A: SELLING THAT MUCH IN ONE DAY NEARLY KILLED MY BUSINESS (… but NOT for the reasons you might think!)

So listen up, ‘cause I wanna tell you…

  1. How you can avoid some of the pitfalls that I had to go through!
  2. Why the situation turned out to be a HUGE blessing for my business.

SELLING MY OFFERLAB

So, back in September, I threw a HUGE event for 600 people… I knew that we were gonna sell a ton of products but I had no idea how much!

…it was my first million-dollar + day.

And when we did that million dollars three things happened…

  1. Sheer utter excitement – “Oh my gosh, so excited, this is so incredible.”
  2. “It’s not that cool.” (People told me this would happen)… It’s kind of a club card but after about four seconds, I was like, “HOLY CRAP!!!… errrm, alright… well, I’m hungry.”

And there wasn’t a lot to it after that…

But #3 that happened was something that I was NOT prepared for…

I kinda thought that it would happen a little bit… but not to the extent that it did.

Learn how to run a million dollar business

It actually was very, very rough.

Okay, so, here’s what happened…

  • We did all the sales – and it was awesome.
  • We start onboarding the people – and that part goes great.

HOWEVER…

I found myself very unprepared for the volume of sales, we didn’t think it would be that much.

HOW TO RUN A MILLION DOLLAR BUSINESS???

#1: we had to go upgrade our systems.

  • I didn’t have enough fulfillment.

I remember waking up the next morning and realizing, “Oh my gosh, I need to over-deliver for these people.”

  • How can I do that when there are that many clients?
  • How can we track this?

I thought it would sell, just not that much.

And we started building…

  • More fulfillment
  • More processes
  • More systems

We spent probably the first six weeks doing that…

If that sounds like we’re going slow, don’t be fooled, we were hauling’cause there are all these other parts of the business that we’re still running as well.

How to run a million dollar business step 1

So we start building all these processes and putting all these things together.

After about two-three weeks, we start running the OfferLab payments, as agreed.

We’d told everybody, they agreed to it ahead of time, and we had all the paperwork signed.

BUT…

(Another question for you…)

Do you know what happens when payment processors see you doing around 150 to 200 grand a month, and then suddenly you try to run $1.6 million?

ANSWER…

How to grow your business

  • You look like you’re laundering money.
  • You look like you’re doing something very illegal and shady.

So, EVERYTHING basically got frozen.

WHO TOOK MY MONEY?

Learn how to grow your business

In fact, the money didn’t get frozen… but I didn’t have a single payment processor that could actually process the payments.

And I was like, “WHAT?!?!”

I ended up having about $920,000 that we couldn’t run – which is crazy, right!

So we started trying to get other banking relationships with people to find out how we could run the money.

I was smart enough to warn some of these payment processors that stuff was about to happen, but I don’t think they believed me.

Honestly, I didn’t think it would be that much either.

So *THIS* is the untold story (until now) of what’s been going down in the last little bit at Larsen HQ…

ARE YOU LEGIT, STEVE?

How to scale a business

For three months I’ve had all these payment processors and all these other people going through my business…

  • They jumped through my terms
  • They jumped through my conditions
  • They jumped through my privacy policies
  • They eyeballed my GDPR
  • They jumped through my identity – confirming I am who I am – with tons of docs around that.
  • They did Background checks
  • There were history checks on my credit – personal & business.

The level of scrutiny was insane.

Learn how to scale a business

You have to understand that this almost killed my business.

I’m telling you this on Sales Funnel Radio

Selling too much almost killed the company.

I have done that multiple times to other people’s businesses by building an insanely good funnel but NEVER to my own business.

But it wasn’t because I couldn’t fulfill – it was because I couldn’t run the cash.

So while I was unable to run the cash, I was like…

“Well, I still have business expenses, man. What am I gonna go do? Oh, that’s right, I’m a marketer – I can sell stuff.”

And so, we fell back on the skillsets that I have…

  • Sales Message Creation
  • Offer creation
  • Campaigns
  • Marketing.

And so for the last quarter, (…because we can’t run the payments of the people that bought from us), I’ve been floating the cost of fulfillment for those clients on my own dollar.

Not my personal dollar, but money that was meant to do other projects.

So I was like, “Okay well, I gotta go figure out how to get this done, then.”

And so, I’ve been…

  • Selling stuff
  • Being an affiliate
  • Doing all these other things…

… because it’s what’s been paying for the fulfillment of those clients themselves.

So that’s been the challenge, and that’s exactly what’s been going on.

THE GOOD!

So for the last quarter, I’ve been making ‘all the changes’ to my terms and conditions…

Man, I’m so much more legally tight right now, it’s ridiculous.

Legally how to run a million dollar business

I’ve had lots of lawyers going through my stuff and tons of scrutiny.

Bro, this is pretty bullet-proof now.

If someone was to sue me – they wouldn’t get much because we’ve gone through asset protection and varying kinds of insurance…

All the stuff in the business that most of us marketing entrepreneurs do NOT like to do…

But it was time for me to create it.

So I’m telling you this for two reasons

#1: While we did a million-dollar day – we couldn’t run most of it.

However, it’s allowed us to create a scenario where banks who are very litigious and obviously and wanna cover their own butts have had lawyers, payment processors and all these other people going through and nitpicking at my stuff.

How to run a million dollar business like Steve Larsen

  • Why don’t you have this?
  • How come you don’t have this?
  • Why does this say, this LLC, it should be that LLC.
  • Does that LLC own that LLC?
  • What’s the relationship there? Who owns it?
  • Prove that you have the ownership.
  • Where are the articles of organization?

All the crap that I usually don’t like to go in and do.

How to grow your business like Steve Larsen

But I gotta tell you, it’s actually been really fun… and it’s been good for the company.

Does that make sense?

My business structure could NOT handle a million-dollar day – and that was really good for me to learn and understand.

I suspected that there would be a few hiccups along the way, but I did NOT think it would halt pretty much all cash.

KEEPING MY BUSINESS AFLOAT

How to scale a business like Steve Larsen

So the way we’ve kept the whole machine floating is by…

  • Continuing to sell products
  • Create things
  • Being an affiliate for ClickFunnels

…I’ve actually floated the cost of fulfillment for my clients I sold to – even though I’ve not been able to run the cash.

We’re still in the middle of fixing the last few pieces but it’s been almost four months since that sale.

So while our first million-dollar day was really cool, it brought on this intense onslaught.

MORE MONEY, MORE PROBLEMS?

Have you heard the phrase, “More money, more problems?”

How to run a million dollar business well

People use that lame phrase as an excuse to not do stuff!

However…

It’s not more money, more problems – it’s more money, different problems. It’s more money, more valuable problems.

I don’t want anyone NOT to sell because they’re afraid of these problems.

Here’s the upside of what’s been going on…

My company has the structure of legally ‘quite the machine.’

  • It can handle a lot MORE in sales
  • We’ve got awesome relationships with various payment processors.
  • We’re not putting all eggs in one basket with a single pay processor anymore

…and because of this, there’s A LOT of security for the business itself.

The effects of my marketing are causing a lot of money, and it’s coming faster – which is great…

But these are some of the problems we’ve encountered

I hope that’s not weird for me to say?

I’m documenting the journey – this is me telling you what’s worked and what hasn’t.

You need to go in and start looking at your business structures and ask the question…

  • What can my business structures handle?

I just had a conversation with a buddy a little while ago, (and he comes more from the corporate world)…

And he said that:

“One of the issues we’re finding is that we’ll go increase the sales of a big corporate client, but the drawback is that the actual company itself can’t handle the influx of cash, it almost kills ’em.

Not that it will bankrupt ’em, but they actually don’t have the systems to fulfill.”

After the last few months, I’m in a much better position…

  • My fulfillment systems are so awesome.
  • We have amazing legal backups.
  • We’ve got amazing entity structures and asset protection.

… all the crap that isn’t fun to do!

And I wouldn’t change the order of how I’ve done it.

I’m not gonna go do all that crap until I know I’ve got the sales to justify all that work – ’cause this has taken us a few months and been REALLY intense!!!

How to grow your business with sales

And just so you know, banks typically move about the speed of the government.

It’s very slow, it’s painstaking… and if I’d been sitting around waiting, man, the crap would have hit the fan!

How to grow your business slowly

In fact, this is what happened…

QUESTIONS INVITE REVELATION

Last month, beginning of December, I was looking at the business bank accounts and I was like, “These are getting a little low.”

They shouldn’t have been – because I should’ve been monthly running cash from the people who paid me from that million-dollar day.

But I was like, “Well, this is a really interesting challenge. How am I gonna go solve it?”

Now, if you’ve been following me for any length of time, you’ll have heard me use the phrase…

Questions Invite Revelation…

And because I asked a *NEW* question for the new problem set… my team and I got to flex in a way we probably wouldn’t have otherwise done.

So December ended up being almost a $400,000 month – without including the money that we couldn’t run.

I wouldn’t have traded the journey – though I’m not gonna lie, there’s definitely been some stress.

How to run a million dollar business without stress

So while you’re building your sales funnel be cognizant of the fact that…

Your business structure may not be able to handle the powerful sales machine that I teach you to build.

DO YOU KNOW THE MODEL YOU’RE FOLLOWING?

How to grow your business with a model

I talk a lot about models and you need the model because it’s like a road map.

Let me give you an example…

Have you guys ever been on a car trip with ‘an actual map’ … not your phone?

I don’t know if you remember doing that back before phones?

I remember a road trip where I had an actual paper map 😂.

How to grow your business with a map

It’s kinda like, “Okay, this makes sense. I’m gonna go from here to here, there’s my route.

I’m gonna take a left here and a right there – here’s the way I’m gonna go do it.”

Now, while you conceptually understand what it takes to get from location A to location B – it’s a little bit different while you’re actually driving, right?

There are a few speed bumps along the way…

  • “Oh man, I didn’t plan for gas.”
  • “Oh man, when are we gonna eat?”
  • “Is it a two-day road trip?”
  • “ Is it a long road trip?”

The actual execution of the map is different from the conceptual understanding of going from A to B.

My friends, it’s the *EXACT SAME THING* with the models I teach.

It’s all about the model, but when you’re in the middle of executing there are two things that happen…

  1. There’s the execution of the model itself.
  2. A ton of small little hiccups that you were not expecting… the details that you didn’t know you need to know… the details you wish were not important but they are.

There are so many things that you have to go in and say:

“Hey, this thing matters, I need to go figure out how to create a solution to all these problems.”

Does that make sense?

You have the main core problem…

  • How do I get from A to B?
  • How do I execute this model?
  • How do I build a free plus shipping funnel?
  • How do I build a webinar funnel? (Which still works, by the way, I don’t know where that whole thing came from.)
  • How do I build a high-ticket funnel?

… those are models.

But now, in the execution of the model itself, there’s a little bit MORE that you’re gonna have to go figure out – there’s A LOT of small details along the way!

… which is why I do not offer done-for-you funnel building services – ‘cause you have to include in some of those small details.

I’M THE OFFER KING

My OfferLab

By the way…

I don’t have a funnel building agency, I have an offer building agency. We just happen to build your funnel.

Funnel building is easy, guys!

You just…

  • Click
  • Drag
  • Drop
  • Boom!
  • Done

That’s not why it works, it works because of the offer.

A funnel is nothing more than a sales message and an offer.

Anyway, let me stop ranting – I feel like I’m on fire here!

How to run a million dollar business successfully

“I’m the fire starter, crazy fire starter…”

SO… WHO TOOK MY MONEY?

I’ve been thinking about this episode quite a lot, trying to figure out how to say this.

But that’s what happened with OfferLab and the aftermath of the million-dollar day.

  • I didn’t know how much I would sell
  • Payment processors freaked out and made me sign a bunch of background checks saying I wasn’t internet gambling.

It’s kind of ridiculous, but understandable from the bank’s point…

  • I’ve been hopping from payment processor to payment processor getting the things done.
  • Dealing with the combination of each of their finance lawyers nitpicking at my business.
  • Making structures changes.

YOUR CASH NEEDS A CAREER

I just finished a fantastic book called Who Took My Money? – by Robert Kiyosaki.

In the book, Kiyosaki says that…

  1. You need a career, but your money also needs a career.
  2. One of the best ways for you to find the holes in your business structure is to go try to borrow as much money as you physically can.
  3. Don’t borrow the money, but the process that they bring you through is gonna be a vetting process that makes you better.

And that’s been the other thing we’ve set up the last quarter, (besides a lot of asset protection and insurance stuff) …

We’re starting our investment life and we’re starting the career for my money…

How to grow your business successfully

There’s been…

  • A lot of self-development
  • A lot of personal growth
  • Going to therapy
  • Getting a personal trainer
  • Someone’s making my meals

I systemized a lot in the last three months.

And this whole OfferLab thing – not being able to run payments for a little bit has turned out to be a great blessing.

I haven’t stopped the fulfillment, I’ve just been eating the cost on my own.

Q: “What do you do for clients, man?”

A: You over-deliver.

You’re gonna have a short road in this game if you don’t – so we over-deliver and find ways to keep over-delivering.

We threw a huge event as part of the promised fulfillment for OfferLab, that cost about 100 grand, (’cause I don’t skimp on events)…

I like cool events… and that money had to come from somewhere – so I went and sold a bunch of stuff.

I promoted a lot of ClickFunnels and got the dream car awardI got a big Tundra, which is really fun.

Dream business systems

It’s just funny, I don’t think I would’ve done a lot of stuff had the payment processor worked.

GOING DOWN THE RABBIT HOLE

Especially in the last six months, I’ve worked with a lot of banks and the questions that they’ve asked me have been like, “Oh crap.”

You guys are gonna laugh at this, but I was like, “I don’t know what my personal financial statement is!”

…I filled one out for the first time four months ago!

And then, I just kept following the rabbit hole of ‘all the things’ they asked.

How to run a million dollar business like OfferLab

Then all these lawyers came in and sent me a laundry list of things to do…

And it turned out to be one of the greatest blessings ever.

I’m very thankful for Robert Kiyosaki’s advice in that book…

  • Go try to borrow money
  • Go try and run a lot of money

The list they hand you back is where you could be sued.

Remember…

  • I’m NOT your lawyer
  • I’m NOT a financial guru

…but as far as building the business structure, that’s been the name of the game for the past a little bit here for me.

And if you’re like, “I don’t know what to do next,” go try to borrow A LOT of money.

Don’t borrow that money, but whatever the list they hand back to you is a good way to find holes.

Anyway, I’m NOT a lawyer, I’m not A LOT of stuff…

BUT…

I do have killer offer creation.

We’ve had a lot of people do six figures in OfferLab already… and it’s only been three or four months.

If you’re interested in me…

  • Building your offer
  • Helping you design and launch
  • Building the funnel for you
  • Building your webinar slides; you heard that correctly, that is not an easy task.
  • Doing a three-day event with you.
  • Hooking you up with my traffic drivers.

If you’re interested in any of that, come apply…

Go to myofferlab.com – I couldn’t get OfferLab, so it’s myofferlab.com.

We can only do about 10 a month, that’s kinda the cap of what I’m doing here…

But it’s killer service, a lot of fun, and it comes with a year of coaching – NOT just from me but two other coaches as well; my personal funnel builders, Austin Dickson and Rhonda Melody.

And my personal copywriters write your copy.

…it’s powerful stuff.

A funnel is nothing without a campaign…

And so we help you also create and dominate that part of the game as well.

#GetRichGiveBack

Alright, I’ve been asked, “Steve, you were the lead funnel builder at ClickFunnels, why aren’t you offering a funnel building service for people in businesses?”

Okay, that’s a fair question.

Check this out…

Back in early 2016 when I joined ClickFunnels as an employee, there were only about 12,000 users of ClickFunnels compared to the 100,000 now.

And there were only like 40 employees compared to the 400 that there are now.

Okay? What does that mean?

It meant Russell and I were literally the only funnel builders *period*.

  • All the sales copy
  • The design
  • The video
  • Building the pages
  • Email sequences
  • Integrating software with ClickFunnels

…it was literally just he and I.

About a year into my employment at ClickFunnels though, other funnel building team members started getting hired, we finally had a copywriter, a designer, etcetera.

It changed my whole world as we now had a funnel team.

So before I offered funnel building services, I wanted to make sure I could not only find my team but that it was also air-tight.

What I did not tell you, and what I’ve NOT been public about was that my team has already been building funnels for other people for over a year now…

  • Testing
  • Tweaking
  • Building
  • Making our process better

… and so finally, I will tell you that we are ready.

We’ve been building other sales funnels for a while, I just have not announced it until now.

If you want me and my team to build your company a professional sales funnel, come get more info at myofferlab.com.

Make sure you use the “MY” … myofferlab.com.

  • You can talk to us
  • Learn about the process
  • See what we ask of you in the process as well.

It comes with a live three-day event just with me, so I can teach you

  • How to use the funnel after it’s done
  • Get traffic

….as well as a year of coaching from myself and my staff.

  • If you want us to be the nerds while you continue to run your business…
  • If you’re still looking for the core offer and funnel that supports your business revenue needs…
  • If you’d like to hand the critical funnel building task over to professionals who do this full-time…
  • If you want to learn how to design and launch your lucrative offer while my team of techies takes care of your funnel building and logistics for you…

Get more information and apply at myofferlab.com.

When you think about it, all businesses need to be able to do three things…

  1. Get leads
  2. Sell a percentage of those lead
  3. Fulfill on what they sold

And your professional business needs a professional core offer and funnel to deliver it.

We’ve already been doing this for a year with students who have businesses that are…

  • Online
  • Offline
  • Physical
  • Digital
  • Software
  • Supplement
  • Experience with revenue
  • Just starting out

…you get the point?

Not only will we build the funnel, but I’m also actually going to hook you up with the very people that I use to send various types of traffic to my own funnels.

I want you to be taking care of post-funnel build.

If you’re tight on money, it’s totally fine – we have various payment and funding plans which are also available.

Come learn more and apply at myofferlab.com.

Just be aware that we’re actually building you a professional sales funnel, and my team and I actually have very limited capacity in what we can handle monthly.

So skip the line of people shouting the most popular question I’m asked which is, “Steve will build my funnel?”

The answer finally is, “Yes,” just go start at myofferlab.com now.

The post SFR 295: The Day After The Million Dollar Day appeared first on Sales Funnel Radio Blog.