#233: Dominate Your Industry By Increasing Your Revenue Per Employee with Daniel Marcos
Daniel Marcos, Co-Founder of Growth Institute, talks about what drove him to write ImpactX, a book about the four stages of a business, and how the age-old metric of revenue per employee can be the best indicator of the overall health of your company. However, he also found limits on the number of employees you should have for each stage if you want to avoid some seriously adverse effects. Find out why Daniel says 12 is the perfect number of employees for "profit and drama" and why you should jump from 12 to 60 if you want to have an industry-dominating business.
What You Will Learn In Today's Podcast Interview
- The magic number of employees that brings the perfect balance of cash flow and drama
- How three phone calls led to one of the fastest-growing coaching businesses in the world.
- Daniel’s incredibly interesting founder story, including one of his favorite early successes of how his online trading business was acquired within six months by Argentina's then-largest financial player.
- How Daniel paid off $1 million in debt and started his coaching business.
- Why Daniel partnered with Verne Hardish (founder of EO and Scaling Up) to create Growth Institute.
- The four stages of every business, from his book ImpactX.
- How to assess and use the metric of revenue per employe
- Why the complexity of a business exponentially grows as employee count grows and what you can do to manage the challenges.
- The importance of creating space to think as an owner.
- How to create systems that make ‘everything float’ and why this is a double-edged sword if you’re not ready for it.
Are You Growing The Value of Your Business
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- Are your company's current initiatives intentionally designed to increase the value of the business?
- Do you know what you want from your business long term and why?
- Do you know what your company is worth?
- Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?
- Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?
About the Guest:
Daniel Marcos is CEO and Co-Founder, alongside Verne Harnish, of Growth Institute, the leading online executive education company for C-level executives at fast-growing firms. In less than a decade, Growth Institute has been recognized among the top 5,000 fastest-growing companies in the USA, with over 40,000 members across 64 countries. Daniel is a keynote speaker and a CEO Coach, with a mission to help one million entrepreneurs scale their impact and reduce drama in the process.
17:42 - “The biggest mistake we make as entrepreneurs is that we believe our business and ourselves are the same thing. So if your business is a failure, we believe that we are a failure.” - Daniel Marcos
30:28 – “No one really teaches you how to be a CO.” – Daniel Marcos
36:32 – “The average mid-market business in the US does an average of $120,000 in revenue per employee, per year.” – Daniel Marcos
47:35 – “Scaling up makes everything float, and some stuff stinks.” – Daniel Marcos
49:20 - “Business is made out of people and people are messy.” - Daniel Marcos
53:06 - “We have become the bottlenecks of our businesses. We are the biggest bottleneck of our company.” - Daniel Marcos
53:30 - “You don’t build a great company if you don’t first build a great team. And if, first, you don’t become a great leader.” - Daniel Marcos
Links and Resources:
Reach out to me if you have questions about the boot camp!
You can also reach out to me via email at firstname.lastname@example.org, or on my LinkedIn.
Brought to you by Ryan Tansom of Intentional Growth