THE
LEVEL
7
MASTERCLASS
WORKBOOK
NAME:
DATE:
INTRODUCTION
TO RYAN
A marketer turned entrepreneur
turned investor, Ryan is the creator of
the “Customer Value Optimization”
methodology and has introduced and
popularized many of the digital selling
strategies that modern companies
now take for granted. He quite literally
wrote the book on marketing while
also founding multiple companies
employing hundreds around the
globe.
RYAN DEISS,
CEO | SCALABLE.CO
AGENDA
MODULE 1: The 7 Levels of Scale
MODULE 2: Defining Your Number
MODULE 3: Getting Your First 10 Customers (Level 1)
MODULE 4: Building a Growth Flywheel (Level 2)
MODULE 5: Upgrading Your Operating System (Level 3)
MODULE 6: Doubling Your Take-Home (Level 4)
MODULE 7: Building Your Board (Level 5)
MODULE 8: Expand Through Acquisition (Level 6)
MODULE 9: Hitting Your Number (Level 7)
2
MODULE
#1
THE 7 LEVELS OF SCALE
LESSON 1
WELCOME AND INTRODUCTION
a business is hard but
a business is harder.
STARTUP AND SMALL-BUSINESS FAILURE RATE
What percentage of businesses fail in the first year?
That means that most businesses ___________ their
first year.
Starting a business is hard but ____________ a business
is even harder.
WHERE ARE YOU?
Circle where you’re at in the Entrepreneurial Lifecycle.
3
LESSON 2
WHAT YOU’LL DO TO GET
SCALABLE
Define Your Number
Walk through the 7 Levels
Build a “Level 7 Plan”
THE GOAL
Build a plan to (at least) DOUBLE your
sales, DOUBLE your take
- home profit,
hit your “number,” and achieve the
“Level 7 Life.”
4
LESSON 3
WHO THIS IS FOR
WHAT’S AN “ACCIDENTAL ENTREPRENEUR”?
....................
They know WHO they serve and HOW to
best serve them, and they’ll never sacrifice customer delight
at the alter of profitability.
__________. They have raised little or no outside capital.
_________. They have little-to-no formal business training
and education.
HOW MANY ACCIDENTAL ENTREPRENEURS
ARE THERE?
Out of ________
entrepreneurs….
_____.......
launched their company without a formal
Business plan.
_____ don’t have a degree in business. (
_____ don’t have
any college degree).
______
didn’t raise venture capital. ( _____
any outside capital at all).
5
didn’t raise
In other words:
ACCIDENTAL ENTREPRENEURS ARE EVERYWHERE!
But there’s a problem…
Percentage of entrepreneurs suffering from imposter
syndrome
OUR PURPOSE
Help entrepreneurs scale
themselves, so they can scale
their companies.
WRITE THIS DOWN
Your business isn’t
____________.
YOU aren’t ____________.
You just need a new ____________
of ___________.
6
and a new set
LESSON 4
THE 7 LEVELS OF SCALE EXPLAINED
SO WHAT NOW?
That’s why we created…..
LEVEL 1:
___________
LEVEL 2: ___________
LEVEL 3: ___________
LEVEL 4: ___________
LEVEL 5: ___________
LEVEL 6: ___________
LEVEL 7: ___________
7
8
YOU’RE NOT ALONE
OUR MISSION
Create 10,000 “Level 7”
Entrepreneurs by 2030.
YOU ARE NOT ALONE.
WRITE THAT DOWN:
_________________________
_________________________
_________________________
_________________________
_________________________
_________________________
9
MODULE
#2
DEFINING YOUR NUMBER
LESSON 1
WHAT’S YOUR NUMBER?
We’re going to Define your number. Take out your Scalable
Impact Planner. We’ll be filling that in.
LESSON 2
CONFIRM YOUR SCALE LEVEL
First, confirm your scale level.
10
LESSON 3
DETERMINE YOUR STARTING POINT
Answer these questions to get a clear picture of your
starting point:
Where are your current annual sales (estimates are fine)?
Based on those sales, how much profit do you expect to
realize?
Do you have a sense of how much your company would
be worth if you sold it today? Specifically, the EBITDA
multiple?
11
To calculate your profit margins, divide your revenue by
your profit. Put that number in the top percentage box.
You can use the chart below to calculate your businesses
value:
Once you have that filled in, we’re ready for the next
step….
12
LESSON 4
DETERMINE YOUR END GAME
HOW MUCH DO YOU PLAN TO GROW?
Here are some common growth benchmarks:
13
OUR RECOMMENDED GOALS
TOP TO BOTTOM - make your top-line revenue your bottom
line profit
OR
DOUBLE IN 3 - double the size of your company in 3 years
Can you REALLY double in 3?
Let’s see…
That means that you’d only need 3% growth MoM to double
in 3! THAT’S IT!
What does that mean? YOU CAN DO THIS!
WRITE THAT DOWN
---------------------------------------------------------------------------------------------------------------------------------------------------------------------14
And what would that do for the
value of your company?
THAT IS MASSIVE GROWTH!
USING OUR PROVEN SYSTEMS…
IN ONLY 3 YEARS.
15
LESSON 5
CODIFY YOUR WHY
We’ll do that by answering 3 questions:
The
_____
Question
The
_____
Question
The
_____
Question
16
THE ME QUESTION:
s??
How do I want my life to look in 3 years
years?
What is my level 7 life?
THE US QUESTION:
What do I want for the people closest to me?
(Kids/Partners/Execs)
THE THEM QUESTION:
What dent do I want to make in my little corner of the
Universe? (Industry/community)
NOTE: If you don’t know yet, that’s ok. It’s hard to think
about others when you’re still worried about your
day-to-day needs, so there’s no shame in leaving this
blank for now.
17
WAIT….
Does your 3-year target fulfill your
“WHY?”
"Would $XXXXXX in bankable profits per year and/or
$YYYYYYY in a possible lump sum allow you to make the
impact you want to make for yourself (Me), your inner
circle (Us), and the world at large (Them)?”
If Yes: Proceed
If No: Expand goals or adjust “Why” (stepping stones).
18
LESSON 6
DEFINE THE HOW
FILL IN YOUR FOCUS 5 - the 5 Projects or Key Initiatives that
will keep you on track to your target.
To do that, answer the question:
What must happen in the next 3 - 6 months to bridge the
gap between where you are and where you need to be?
19
LESSON 7
CREATE YOUR PLAN
GREAT NEWS! Wherever you are on your journey…our goal
for the next 2 days is to give you the support and
momentum you need to ascend to Level 7.
IT’S QUITE LITERALLY
OUR MISSION.
20
MODULE
#3
Getting Your First Customers
(Level 1)
LESSON 1
DO THIS FIRST
LEVEL 1
SELL & SERVE 10 CUSTOMERS
21
TYPICAL LAUNCH PLAN
GET A NEW
BUSINESS
IDEA
BUY THE
DOMAIN
NAME
RESEARCH
EXOTIC
CARS
LAUNCH
THE
PRODUCT
INSTEAD, DO THIS FIRST…
Before you scale, you must confirm:
You have something people want to
__________.
You are able to __________ on the promises you make.
22
THINGS NOT TO DO FIRST....
•
•
•
•
•
•
•
•
•
•
•
•
THE GOAL
Sell and serve at least 10
customers so you have the
and
you
need to scale!
23
LESSON 2
THE PROBLEM WITH
PRODUCT/MARKET FIT
It’s highly
It’s a
________
__________
target.
SO WHY 10?
It’s
___________.
It’s
____________.
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LESSON 3
GETTING YOUR FIRST 10
YOUR FIRST TEN: The Process
Step 1: Define the Problem You Solve
Step 2: Define the Ideal Market
(Problem + Means to Pay + Targetable = Ideal Market)
Step 3: Deliver Value In Advance (OPTIONAL)
Step 4: Offer to Help - “Want some help?”
Step 5: Ask, “What else?”
YEAH BUT…HOW?
FORGET
____________
JUST SELL AND
SERVE 10 CUSTOMERS.
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LESSON 4
THE ONE-QUESTION SURVEY
TRULY…sell and serve 10
How can you be sure you served 10? With one simple
question (NPS).
“ON A SCALE OF 0 - 10,
HOW LIKELY ARE YOU TO RECOMMEND
MY SERVICES TO A FRIEND OR COLLEAGUE?”
THE GOAL
AT LEAST 10 PROMOTERS (9+) MAY NEED TO
SELL 15…20… EVEN 100 CUSTOMERS
BEFORE YOU TRULY “SELL AND SERVE 10”
Far from perfect, but good enough for now.
26
LESSON 5
YOUR MODEL 10
Take a moment and list out at least 10 of your most
successful and enthusiastic advocates by name. We call
this your “Model 10” list, because these are the 10
customers and clients who will serve as models for you as
you scale.
27
LESSON 6
READY TO LEVEL UP?
WRITE THIS DOWN:
Level 1 is the
the
____________
but it’s also
_____________
LEVEL OF SCALE
1
GENERATE (ATLEAST) 10 SALES
GENERATE (ATLEAST) 10 PROMOTERS
(NPS+ 9+)
MAKE YOUR “MODEL 10” LIST
(HIGH LTV + HIGH ADVOCACY)
28
MODULE
#4
BUILDING A GROWTH FLYWHEEL
(LEVEL 2)
LESSON 1
THE FOUR KINDS OF GROWTH
Which best describes your growth rate?
THE GOAL
SYSTEMIZE YOUR SALES PROCESS SO GROWTH BECOMES
___________ , __________,
AND
__________.
YOU ONLY NEED ___________ GROWTH ENGINE
TO BREAK THROUGH THE 7-FIGURE SALES BARRIER.
29
LESSON 2
WHAT IS A GROWTH ENGINE?
What is a Growth Engine?
A
__________________________
of the customer acquisition
process from the first moment of awareness until the final sale is
closed.
IT ANSWERS THIS QUESTION:
HOW DO CUSTOMERS
HAPPEN?
NEVER underestimate the power of simply documenting how
customers happen in your business.
30
LESSON 3
MAPPING YOUR GROWTH ENGINE
The Basics
31
Pre-Work: The Six Questions
ANSWER THESE 6 QUESTIONS.
1.
What is our core, flagship offer,and how will we continue
to deliver value after the first sale is made?
2.How do qualified prospects find out about our brand?
What channels do we leverage to create initial awareness?
3. How do we leverage content and followup marketing to
engage new prospects and re engage existing prospects?
4. What valuable chunk of content do we offer in exchange for
our prospects’ contact information and permission to
followup?
5. How do we get our prospects to make a micro commitment…
a small investment of money and/or time?
6.[OPTIONAL] What are some “Ah -Ha Moments” that transform
our product/service from a “nice-to-have” into a MUST-HAVE?
32
STEP 1: Select Growth Engine to be Mapped
What core, flagship product/service are we focusing on for this
exercise?
NOTE: Growth Engines are defined by the product/service that’s
being sold. It’s normal to have multiple flagship offers, so for
now, pick ONE! If e-commerce, think about a bundle or a desired
cart value.
STEP 2: Define the triggering & ending events
What is the triggering event that initiates this process and what
is the final action that concludes it?
STEP 3: Brainstorm Tasks and Activities Between the Start and
finish
We all agree that this is where our Growth Engine starts and this
is where our Growth Engine end. So if this is the starting point,
the question is… “Then what happens?”
ASK YOURSELF: AND THEN WHAT HAPPENS?
33
Then put down the steps, one per post-it note as people say
them or as they come up.
You’ll end up with something like this….
IMPORTANT: Resist the urge to connect the dots…for now.
We’ll do that next.
STEP 4: Add Gateways and Connect the Dots
“IT DEPENDS...”
If a step has a decision that needs to be made, turn it into a
diamond and identify what happens next
34
Then connect the dots between the steps.
STEP 5: Hold a Stakeholder Review
Ask your stakeholders this question:
-
“WHAT ARE YOU CURRENTLY DOING
THAT ISN’T REPRESENTED ON THIS
FLOWCHART??”
35
STEP 6: Finalizing Your Growth Engine
Once you’re done, you’ll have something that looks like this….
If you want, you can use a flowchart tool to make a pretty version…
You now know how customers happen, which means you can
build a system to get more of them. The next step is to build a
flywheel that will optimize your Growth Engine and get it
spinning faster and faster…
36
LESSON 4
OPTIMIZING YOUR GROWTH ENGINE
Step 1: Measure the performance of each Growth Engine
___________
(i.e. Sticky Note).
Step 2: Identify the _____________
stage.
Step 3: Execute projects
(per quarter) that
______
optimize the bottleneck stage.
WHY THREE PROJECTS?
Forces ______
Prioritizes
________
over ____________
Maximum number of ________
________________________
37
a team can manage while
LESSON 5
SPINNING THE FLYWHEEL
Just to recap…
STEP 1: Map Your Growth Engine (visual representation of how
customers happen).
STEP 2: Leverage scorecards and dashboards to identify friction
and bottlenecks.
STEP 3: Strategize a growth plan to unclog bottlenecks
STEP 4: Execute projects that optimize the growth engine
(message, ACV, channels).
This is the BIG SECRET for achieving Scalable Growth…
38
You only need
__________
That’s the number of Growth Engines you need to scale to
multi-7-figures in sales. One. I truly believe that you are just ONE
engine away from hitting your growth targets and achieving your
long-term goals.
Remember the 1:10:3 Rule
DO NOT launch additional Growth Engines until
you have ______________ that is generating at least
____________ at least
__________
in a row and
can scale to at least __________ in direct annual sales.
39
LESSON 6
READY TO LEVEL UP?
LEVEL OF SCALE
2
(Once you have checked all the boxes you’re ready to move
onto Level 3.)
Map your Growth Engine.
Build a metrics scorecard that tracks the performance
of each stage.
Establish a 90-day optimization cadence with your
team.
Have ONE Growth Engine generating at least $10K/mo
at least 3 months in a row
40
MODULE
#5
UPGRADING YOUR OPERATING
SYSTEM (LEVEL 3)
LESSON 1
DOES YOUR OS NEED AN UPGRADE?
Most businesses are running on a
_____________ instead
of a ________________.
Which of these are you experiencing?
Plans are loosely defined and rarely followed.
Work is chaotic, and nothing important ever seems to get
done aside from the things that are “on fire”.
Team members need to constantly be told what to do and
no one seems to know what’s going on!
Meetings feel like a waste of time
Profits are low…even on higher sales
You’re burned out and ready to quit…
THE GOAL
Install an upgraded business operating
system so you company can
_______________
41
LESSON 2
WHAT IS AN OPERATING SYSTEM?
An operating system is a
_______________
_________________ and a
that enables different components to
communicate with one another in support of the ____________
of a machine.
42
LESSON 3
UPGRADING YOUR OS: 3 STEPS
STEP 1: Document the “Set of _______________ that make
your business run
STEP 2: Define and develop your company’s
______________
Architecture.
STEP 3: Clarify the company’s Desired
_______
(so your people and systems are all aligned to a common goal).
THE SCALABLE OS FRAMEWORK:
43
LESSON 4
DOCUMENTING YOUR COMPANY’S
ALGORITHMS
3 COMPONENTS:
Map Your
___________
Document critical
____________
Assign clear areas of
____________
MAP YOUR VALUE ENGINES
THE GOAL
____________________ how your
company creates value, so we
can ______________ and
____________ it.
44
VALUE ENGINE TYPES
1. _______
Engines.
(Attract and convert new customers).
2. _______
Engines.
(Deliver the promised value).
3. _______
Engines.
(Create, update, and improve offerings).
Value Engine Mapping: The Process
1. Identify the __________ to be mapped.
2. Define the ________ and ___________ events.
3. Brainstorm __________ and _____________ between
the start and end.
4. Add _______________ (aka Decision Diamonds) and
connect stages with ____________ lines.
5. Hold a __________________ review meeting.
6. (OPTIONAL): Finalize in a _______________ tool.
Value Engine Formula: Selling + Serving
= _________________
45
ACTION STEP
Map the Fulfillment Engine for the
Growth Engine you mapped in the
last session to complete your first
Value Engine!
Document Your Playbooks
46
Best Practices: Building Company Playbooks
1. Define _______________ before your document
2. Every Playbook must have an _____________
3. Document while you _____________
4. Don’t try to document __________.
(Stick to the truly ________ stages).
SOLUTION: COMPANY PLAYBOOK
Company Playbooks are a set of
actionable, step-by-step checklists
that document the individual tasks
that must be completed, as well as
the order those tasks must be
completed in, to execute a repeatable
process or project.
47
The Documentation Process
1. ________ It.
2. Document what you ___________ (Keep it linear…..5-9 steps).
3. Do it _________
(following your steps).
4. _______________________ your documentation with
non-expert.
5. Tweak and ______________ based on field test.
6. Deploy and ______________ the Playbook.
ACTION STEP
Create checklists for each of the
Power Stages (3 - 5) in the Value
Engine you just mapped.
Assign Accountability
48
THE GOAL
Eliminate finger-pointing and
________________ forever.
How We do It: Gather all value engines then document who is
responsible for each step in the Value Engine
ACTION STEP
Assign clear accountability for every
task and activity in the Value Engine
you just mapped.
IMPORTANT: Fill in additional areas of accountability only
____________
you have fully audited all Value Engines.
49
Upgrading Your Company OS: 3 Steps
STEP 1: Document the “Set of __________ ” that make your
business run.
STEP 2: Define and develop your company’s _____________
Architecture”
STEP 3: Clarify the company’s Desired _________ (so your
people and systems are all aligned to a common goal).
50
LESSON 5
DEFINING YOUR COMMUNICATION
ARCHITECTURE
Communication Architecture: 2 Components
1. Company
____________
2. Meeting
______________
COMPANY SCORECARDS
THE GOAL
Get everyone literally on the same
page and ____________ to the
same ___________
This is why we use a
Company Scorecard…it’s
our User Interface for
the entire business.
NOTE: This is a higherlevel version of the
Growth Scorecard we
discussed earlier.
51
Types of Metrics
1. _________________ Metrics
(ex. Revenue, Profit, Profit/Employee).
2. _________________ Metrics
(Leading metrics tied to quarterly sprint goals)
3. _________________ Metrics
(High-level metrics that show team performance)
What are 3 simple metrics you can use for each type?
NOTE: Each team should have key metrics they are using.
Keep it ___________
Track it ___________
Make it ____________
Manual input is a ____________ not a _______.
ACTION STEP
Build a Company Scorecard that
includes three (3) Evergreen Metrics
(Revenue, Profit, Profit/Employee),
three (3) North Star Metrics, and three
(3) level metrics for each team
52
MEETING RHYTHM
THE GOAL
Establish a ___________________
so the right information is shared
with the right people at the right time,
allowing teams and individuals to make
__________________ that lead the
company toward their stated
goals and objectives.
53
FOUR TYPES OF MEETINGS:
1.
__________________________ Planning Meetings.
2. ___________________________ Review Meetings.
3. ___________________________ Check-in Meetings.
4. ____________________ Meetings.
SCALABLE PLANNING SYSTEM
Plan in 3-year cycles…
Execute in Quarterly Sprints….
Measure Weekly, and….
Pivot Monthly (as-needed)
Two Mindset Shifts:
1. Stop
____________ Planning.
2. Stop end-of- _________
Planning.
54
ACTION STEP
Establish your company’s meeting
rhythm and block out dates for your
Quarterly Sprint Planning Meetings,
Monthly Business Reviews, Weekly
Check-ins, Weekly/Monthly All Hands
Meetings, etc.
55
LESSON 6
CLARIFYING YOUR DESIRED
OUTPUTS
______________ Target
Company ____________
_________ Values
Strategic _____________
The 3-Year Target
56
GREAT NEWS!
You’ve already done this
57
COMPANY PURPOSE
COMPANY
PURPOSE
DEFINED
•
Idealistic, aspirational, and
inspiring (think: “horizon”)
•
Impact-centric
(not business-centric)
•
No clear time horizon
___________ : What you DO (the products/services you
provide)
____________ : The specific VALUE you deliver
____________ + ___________
= Purpose
58
CORE VALUES
TYPES OF VALUES:
1. Core
2. Aspirational
3. Accidental
4. Permission-to-play
_____________ Values: 3-5 inherent, natural, and positive traits.
_________________ Values: neither natural nor inherent, but
highly desired (may come and go over time).
_______________ : base-level values that everyone must have
to work there (i.e. integrity, honesty, hard work, etc).
_______________ Values: existing behaviors that don’t need to
preserved and may need to be squashed.
59
STRATEGIC ANCHORS
All entrepreneurs need a framework for saying ___________
60
THE CLARITY COMPASS
Once you have completed the four elements of your Desired
Objective, you have the pieces you need to assemble your
company’s Clarity Compass…
61
ACTION STEP
Draft your company’s Clarity Compass
and schedule a 2-day off site meeting to
finalize it with your team.
CONGRATULATIONS!
You’ve officially UPGRADED
your company’s OS!!
62
LESSON 7
INSTALLING YOUR OS
Now that you’ve upgraded your OS, you need to INSTALL it.
INSTALLING YOUR OS
• STEP 1: Hold a 2-Day Strategic Planning Meeting.
• DAY 1: Clarity Day (Build Your Clarity Compass).
• DAY 2: Quarterly Sprint Planning Meeting.
• STEP 2: Hold a company-wide All Hands meeting to
announce the Clarity Compass and Quarterly Plan.
• STEP 3: Build and roll out your OS Dashboard.
63
LESSON 8
READY TO LEVEL UP?
LEVEL OF SCALE
3
READY TO LEVEL UP?
(Once you have checked all the boxes you’re ready to move
onto Level 4.)
Map at least one complete Value Engine
(Growth + Fulfillment)
Document Playbooks for each “Power Stage” in your Value
Engine (5-10).
Assign clear roles and accountability for all critical tasks
and activities.
Build a Company Scorecard (3 North Star + 3 Metrics Per
Team).
Define your company’s Meeting Rhythm.
Build and publish your Clarity Compass.
Install your upgraded Operating System.
At this point…Level 7 is INEVITABLE.
64
65
MODULE
#6
DOUBLING YOUR TAKE HOME
(LEVEL 4)
LESSON 1
CORE PRINCIPLES OF PROFITABLE
SCALE
Growth doesn’t equal
________________,
Growth
profit!
_________
THE GOAL
Create financial freedom for your
business so your business can
create ____________________.
Four Core Principles of Profitable Scale
Pay
__________________ first.
Set expense
Build an
_______________ (a.k.a. Budget!)
__________________ fund.
_______________
the cash.
66
LESSON 2
PAY YOURSELF FIRST
LESSON #1:
Entrepreneurs must pay
themselves a
______________
wage at all times.
TRUE OR FALSE:
Founders should ‘reinvest’ all their money back into their
companies. Their payday comes when they sell or go public.
True
False
WHY DID YOU START YOUR BUSINESS?
More Money
More Freedom
To Make an Impact
All of the above
67
Let’s get real…
Can you honestly say your
___________
is priority #1 when
you’re worried about making payroll or paying your own bills?
LESSON #2:
Scalable entrepreneurs must pay
themselves a
____________
salary at all times.
ACTION STEP
Pay yourself at least enough
to cover all you living expenses
plus
_________ savings and
investing.
68
LESSON 3
SETTING EXPENSE RATIOS
An optimistic entrepreneur’s ability to
_____________ will
always outpace their ability to _________, which is why
____________ must be determined ahead of time.
SETTING YOUR EXPENSE RATIOS
STEP 1: Define your _________ Margin.
STEP 2: Brainstorm your Expense _________ .
STEP 3: Set your _________
Rations.
STEP 4: Compare Target to ____________ .
STEP 5: _______________ Actuals to Match Target.
ACTION STEP
Set your expense rations
and begin making any
necessary expense re-allocations.
69
LESSON 4
BUILDING YOUR EMERGENCY
FUND
WHAT IS IT?
An emergency fund is a separate cash reserve account equivalent
to
____________ of operating expenses.
An emergency fund keeps you from making ______________
decisions
ACTION STEP
Sprint to a ____________ starter
emergency fund in your
operating account, then start
building a 3-6 month emergency
fund in a _________ account.
70
LESSON 5
THE CASH SWEEP WATERFALL
P&Ls lie…
________
doesn’t.
WHAT IS IT?
A cash sweep waterfall specifies the movement of ___________
from a company operating account into prioritized, specialized
accounts for pre-determined future uses.
The Five Cashflow Waterfall Accounts
1. Operating Account (Checking).
2. Tax Account (Savings/Money Market).
3. Emergency Fund (Savings).
4. Sweep Account (Checking).
5. Sinking Funds (Optional).
ACTION STEP
Sprint to a ____________ starter
emergency fund in your
operating account, then start
building a 3-6 month emergency
fund in a _________ account.
71
LESSON 6
FINAL TIPS AND REMINDERS
1. Don’t assume ____________ will save the day. (Growth usually
costs money, especially at first).
2. Don’t cut your _________ to make the ratios work.
3. Save _______________ facing cuts for last. (It’s better to
downgrade your office space than to downgrade the customer
experience.)
4. Avoid _____________ like the plague…it’s a sign you can’t
afford it.
LEVEL OF SCALE
4
READY TO LEVEL UP?
(Once you have checked all the boxes you’re ready to move
onto Level 4.)
Pay Yourself FIRST (at least enough to cover personal
expenses plus 15%).
Establish expense ratios and budgets
Build a 3-6 month Emergency Fund (plus 1 month in
Operating Account)
Setup your cashflow waterfall accounts and institute a
monthly cash “sweep”.
72
MODULE
#7
BUILDING YOUR BOARD
(LEVEL 5)
LESSON 1
WHY YOU NEED A BOARD
Funded companies get this right…
They all have Advisory Board made up of
__________ and
____________.
I ________
know what I
_________ know.
73
LESSON 2
WHAT IS A BOARD OF
ADVISORS?
74
LESSON 3
WHO SHOULD BE ON
YOUR BOARD?
Who should be on your Board of
Advisors?
Mentors
Peers
Strategics [OPTIONAL]
Influencers [OPTIONAL]
MENTORS HELP YOU…
Define your _________________ (3-Year Target).
Close ____________ gaps.
Broaden your _____________ (warm Introductions).
Stay ______________ to your goals and plan.
Build and facilitator your
____________
75
.
PEERS HELP YOU…
Stay ______________ to your goals
Break through _____________
Process “_____________”
Commiserate on the ___________ and
Celebrate the __________ !!!
ULTIMATE SHORTCUT:
The right ___________ will help connect you with the right
_________
group and give you the __________ and
resources to close any skills gaps…
76
LESSON 4
COMPENSATING YOUR BOARD
MEMBERS
Equity (or equity __________ ) << AVOID
Flat ___________ (mentors/influencers).
Peer _____________________
_____________ for services.
___________
to the room.
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LESSON 5
RUNNING A BOARD MEETING
Best Practices:
Advisor Board Meetings
No need for _______________ meeting.
Peers should connect __________
times per month.
Mentors should be available at least __________ per month
(and ideally lead peer mastermind)
Strategics just need to return ____________
Influencers just need to be ____________
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LESSON 6
READY TO LEVEL UP?
LEVEL OF SCALE
5
READY TO LEVEL UP?
(Once you have checked all the boxes you’re ready to move
onto Level 6.)
Identify a worthy mentor (or mentorship program).
Find 3-5 peers who could serve on your Advisory Board.
Attend an Advisory Board meeting (yours or a peer’s).
[OPTIONAL] Apply for Founders Board and shortcut
all of the above.
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MODULE
#8
EXPANDING THROUGH
ACQUISITION (LEVEL 6)
LESSON 1
WHY ACQUISITIONS?
All businesses eventually cap out…
Market ________________
Product ____________
Team _____________
______________ Limitations
Expansion Acquisition Deal Types
Add new ____________ and _________ channels (acquire
media).
Add talent (a.k.a. __________________)
Increase ___________ ________
Widen ______________ margins.
Amplify total enterprise _____________
Acquisition can be the
_____________,
______________, and least ____________
path to rapid scale.
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LESSON 2
CLOSING YOUR FIRST
ACQUISITION
Acquisition Expansion: Six Steps
STEP 1: Position yourself as an ______________
STEP 2: Assemble your “_________________”
STEP 3: Document __________________ criteria.
STEP 4: Identify and research at least __
acquisition targets.
STEP 5: Complete target __________ outreach
STEP 6: Close and __________
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LESSON 3
WANT SOME HELP?
Mergers and acquisitions is its own field of study that’s
deserving of its own course, and fortunately, that’s exactly what
we did.
THAT’S WHY WE CREATED THE
EPIC CHALLENGE.
Take the challenge here
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LESSON 4
READY TO LEVEL UP?
LEVEL OF SCALE
6
READY TO LEVEL UP?
(Once you have checked all the boxes you’re ready to move
onto Level 7.)
Position yourself as an investor.
Assemble your “Deal Team".
Determine acquisition criteria.
Identify at least five (5) potential acquisition targets
(asset or company).
Complete target owner outreach.
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MODULE
#9
HITTING YOUR NUMBER
(LEVEL 7)
LESSON 1
WHAT NOW?
Celebrate with an “________________”
Reward Reset and Find Your “___________”
Mountain Plan Your “_______”
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LESSON 2
THE 5 TYPES OF EXIT
Acquisition Expansion: Six Steps
1. Exit the __________ (Worker to Manager/Do to Delegate).
2. Exit the __________ (Manager to CEO/Delegate to Lead).
3. Exit the ____________ (CEO to Board/Lead to Govern).
4. Exit the ______________ (Board to Investor/Govern to
Above).
5. Exit _______________ (Investor to Cash-Out/Above to
Cash-Out).
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LESSON 3
BECOMING AN ENTREPRENEURIAL
INVESTOR
1. _____________________ beyond their own business.
2. Looks for investments that create ______________ .
3. Gives back and helps other entrepreneurs achieve their
___________ life.
4. Continues to invest in their ____________ business.
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LESSON 4
LEVEL OF SCALE
7
READY TO LEVEL UP?
( Once you have checked all the boxes, it ’s time to start “ legacy
wealth”.
Hit your “Number”.
Claim your “Everest Award” (CELEBRATE!)
Plan your “ Ideal Exit ”.
Reset and define your “Second Mountain” .
(asset or company).
Share your story ( with us!)
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LESSON 5
SCALE IS INEVITABLE
WHY MOST BUSINESSES GET
STUCK AND FAIL
1. Clarity: Unclear, uninspiring, and misaligned mission and
vision.
2. Demand: Not enough people want what we’re offering.
3. Strategy: Failing to choose or failing to execute upon the
right strategy.
4. Systems: Inadequate or inaccurate processes documentation
and training.
5. Team: Not having the right people or having the right people
in the wrong roles.
6. Communications: Unclear or inconsistent communications.
7. Capital: Not able to generate enough free cashflow to support
the enterprise.
8. Impact Alignment: Company, customer, and/or owner goals
are misaligned.
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WANT TO KNOW WHAT IS HOLDING
YOU BACK FROM YOUR NEXT
LEVEL OF SCALE?
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learn about the 7 Levels of Scale, we are offering you a Free
ScaleABILITY Assessment and Strategy Call…
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3. How to use your ScaleABILITY Score to decide how to prioritize
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