0 (2s):
Lights that spark fire nation. JLD here with an audio master class on creating the revenue streams of your dreams to drop these value bombs. I brought Dr. Lance Knaub on the mic. He's the best-selling author of the 4% breakthrough, which helps overwhelmed entrepreneurs stuck in their six figure businesses create finely tuned. Seven figure businesses led by their fearless leadership teams. So far nation. During this interview, we'll talk about building that leadership team to run and operate your business. Why giving your best people? Equity actually makes sense what the most common pitfall, what the most common pitfall for small business owners is in so much more.

0 (44s):
When we get back from thinking our sponsors, we're all looking for new ways to stay active from home these days and fight camp can help fight. Can't brings the boxing gym right to your home with a mix of cardio and conditioning for a full body workout. Visit join fight camp.com/fire. To get free shipping on your new gym today, that's join fightcamp.com/fire, ready to launch and sell your online course. Then you need to tune in for amplify 2021. With Thinkific this free jam packed event produced by our friends at Thinkific will bring together 20 plus international course creation experts to share their behind the scenes tips and strategies to get you on the fast track to launching a course that will sell, visit thinkific.com/amplify to RSVP today.

0 (1m 32s):
That's T H I N K I F I C.com/amplify. Lance say what's up to fire a nation and share something that you believe about what it takes to become successful that most people disagree with.

1 (1m 50s):
Hey, fire, nation and fuego here. Baby's so fired up, John. This may sound shocking to you. I disagree with the conventional business recommendation to simply take action. To me, that would be like hopping onto an airplane or a cruise ship without any idea where you're going or how you're getting there and expecting to arrive at your destination, which is really your vision, or think about hiking into the wilderness, which is a great analogy for the treacherous business marketplace without a map, and hoping to get to the right place. And certainly hoping not to be eaten by a bear. I believe that to become successful, the mantra should instead be take strategic action.

1 (2m 33s):
Over 90% of the small business owners I've surveyed, aren't able to break away from the day-to-day chaos and the mayhem to do any strategic work in planning and do not have a business plan in place. John, it's probably not a coincidence that the number of owners without business plans is nearly the same as the number of businesses that unfortunately fail within 10 years, 96%. My mission is to entrepreneurs to improve that number and a little bit of a sneak preview fire nation. I created a tool that is the solution to this entrepreneurial problem, and I'm offering it to fire nation as a free gift today.

0 (3m 11s):
Fire nation, as I teased in the introduction, we'll be talking about creating the revenue streams of your dreams. And so you're definitely gonna want to stick around for this free gift from Dr. Lance himself. And one thing that we always hear, Lance, I mean over and over again is like, Oh my God, you need to build the right team needed to have the right team, et cetera, et cetera. But how the heck can we build a leadership team that can take over all the management hats and operate our business fully

1 (3m 45s):
John, right from the very beginning, absolutely the very beginning, right? When you feel the busiest and the most stressed with the startup, adopt the mindset that you're building your business to be a valuable asset and you will make better decisions. We know that business ownership is overwhelmingly the best tool for wealth generation. I heard Greg Tanner say this in 2014 in Philadelphia at a franchise Wars conference. And it really resonated with me and I realized it's so true. Think about bill Gates, Elon Musk, Jeff Bezos, they all gained their wealth through business ownership. I've identified three fundamentals to focus on one is people right? Just like Marcus Dimona says on the prophet.

1 (4m 26s):
One of my favorite people, one of my favorite shows people first attract and retain the best people at breakthrough. We literally have the best team hands down. Second, always be recruiting on the lookout for talent, develop your people at every opportunity as great head coaches do. Number two, build a freestanding business with a strong foundation, a little Jenga metaphor, do this by spending 10% additional time along the way. So you're establishing your infrastructure and your fundamentals such as your processes through wards are going to be exponential and net game and time and results. John, I know that you know this so well by breaking away for 90 days to travel the world for the last couple of years, the third fundamental is valuation.

1 (5m 13s):
Learn about valuation in your industry and for your company. So you have a baseline and you can measure your progress. We sought out the most expert person in our industry, James Glen senior, and he taught us that for physical therapy, the valuation was at that time, 1.0 to 1.1 times, revenue or three to five times EBITDA. Okay. We took that information and we constantly evaluated and grew the business by focusing on focusing on these three fundamentals over time, you can build a business, that's an asset and develop an executive team to lead your organization. We now have a five location, multimillion dollar business with double digit profitability.

1 (5m 57s):
Our all have incentive plans wherever possible. So everyone shares in the rewards. Okay. So a little final recap. Think through the perspective of a longterm investment to build a business, that's an asset that will provide you legacy and it can generate a steady revenue stream in profits.

0 (6m 14s):
Very, very few of us ever decide to start a business, thinking that, Hey, we're going to work in this business for the rest of our lives. Like we're looking to build a business, bring on a team, have that team slowly be able to take over the role so that, Hey, we can go travel for like 90 days a year or eventually retire, or maybe sell the business because we're not the only integral part of that business. And this is the process that Lance is talking about here. And Lance, you believe in actually taking on your best people as equity partners. Now that's, you know, is kind of a scary thought for a lot of people. So share with us why you believe this and how we can do it the right way.

1 (6m 56s):
Partnership aligns your interests with your most capable people to grow the business pie together. This allows us to share the wealth generating tool of the business with our best people to literally impact multiple generations. Future generations are all going to benefit from this and all of our efforts to create this awesome business model that in our case, innovatively brings physical therapy and fitness together and has this great culture and his unbelievable team. It's all gonna stand the test of time. And it's going to have some legacy rather than the opposite of just getting gobbled up by some venture capitalists and you know, selling to a giant corporation, losing your name, losing everything that you worked so hard to build.

1 (7m 39s):
So before I move forward to partnership, and I know it's a big decision and I know it's not right for everyone, right? But I interviewed many people from across all industries, both successes and failures. And together with my experience, I came up with a few key ingredients. I'd like to share partners, have to want to create something better together, right? If they really want to be Joe Schmoe's physical therapy or Jane Doe's personal training, it's not going to work. The next key ingredient is the company's best interest has to be first and foremost, right? Robert Hirsch, Hirsch of X has this on shark tank. It's so true. You always have to do what's in the best interest of the team. You have to love to teach and mentor.

1 (8m 21s):
We introduced this throughout the company at all levels. We take on as many high school students, college interns, doctor, physical therapy, interns, you name it. People interested in healthcare fields that we can help even future physicians. And we create great clinicians for the ones that are the best and really are aligned with us. We keep them as great breakthrough clinicians. It's the perfect interviewing experience, the perfect mutual opportunity to get to know one another and we're able to keep our best people. In fact, all three of our partners were interns with us. Dr. Schmitzer was a student of mine at Rutgers university where I'm an adjunct professor and he wanted to spend, I was honored that he wanted to spend his final internship with me at breakthrough.

1 (9m 7s):
And he of course joined us and he became a mentor and teacher and he mentored Dr. Nate stouts and Dr. Nick Nolan, our next two partners and the cycle continues. They are teaching our next future. All-stars next. It's important to keep a pulse on your people's goals, both shorter and longer term and where they align with the company's interest, you create a development plan to achieve it. This is definitely a Pearl and a little bit of our secret sauce. Development plans are really key. And we might talk more about that today. So our partnership is five-year strong and we are definitely reaping the mutual benefits. Our best people will continue to enter as equity partners as part of Jody, my wife and I's thoughtful, proactive succession plan.

0 (9m 53s):
One thing that I realized Lance, and I'm sure you've seen this a lot as well, overwhelm burnouts. They are so common in the world today, especially with what we're all going through right now. So how the heck can entrepreneurs avoid this? How can they avoid overwhelm? How can they avoid burnout while they're still trying to scale and grow their business?

1 (10m 13s):
John, this is a topic that's really meaningful to me. I personally was a burnout, overwhelmed, stressed out entrepreneur, and I want to prevent it from happening to other entrepreneurs. Even as a healthcare professional trained as a doctor of physical therapy and a personal trainer, I pushed too hard and I lost my health. In 2011, we had 30 plus team members, three locations, and we just had our third child with all three children under the age of four. I wasn't sleeping enough. I was working 80 plus hour weeks. I was generally abusing my body and living in the Hayes. I know many of you are familiar with my body. Finally had enough and revolted my digestive system.

1 (10m 55s):
My gastrointestinal system just stopped working and shut down, you know, for anyone who's had a gut problem, you know how disabling it is. I wasn't able to eat. I had constant abdominal pain and upset food was going straight through me. So embarrassing. They had to be close to a bathroom and run to the bathroom continuously. I vividly remember presenting to our entire team in July of 2011 at our central office in Medford, New Jersey. We had a monthly meeting and hadn't been able to eat for several days, probably several weeks at this point. And I really could barely stand. I had pain in my joints, my muscles, my whole body ached. And I had really very little on the tank.

1 (11m 38s):
And I powered through that meeting just barely. And I didn't have the luxury of, of completely stopping, right? The whole, the whole business, you know, was supported by me at that time. But I slowly picked myself up and gradually worked on myself, my business and my health. So what I did is I spent 18 months of about 20 hours a week, pouring all these lessons of life and business into my book, the 4% breakthrough, which is a process that we used together, purpose and business fundamentals and actionable health information to help entrepreneurs avoid overwhelm and stress.

1 (12m 21s):
And I, John, I know you love processes and step-by-step and the same for me. So I literally made it a step by step process. You have to do one step and move on to the next step. Now the last section, the health section, you can break in anywhere. The areas that we cover are mental health, nutrition, sleep, exercise, and posture and ergonomics. That section, fortunately, it's a, wherever you break in, it's going to have a harmonious effect and it'll have a compound effect and a snowball effect. So you'll be able to have some exponential results, but that's really it. The book is the exact process.

1 (13m 2s):
And I will say one final point. You know, the research has always shown that about 75 to 80% of our lifespan and quality of life was dependent more on nurture versus nature on how we took care of herself, our lifestyle. And in 2018, there was a study that even showed 90% might be up to our lifestyle. We can't blame our parents. We can't blame our genetics. It's up to us. Let's take control. Let's do it. That stay healthy while we grow awesome businesses,

0 (13m 29s):
Fire nation. So many valuables have been dropped here. I mean, even just in this last section here where Lance talks about his personal overwhelm and his personal burnout, I mean, this is literally the knowledge and information that when you have it, you can avoid going through the same thing. And we have more valuable items coming up, fire nation. When we get back from thanking our sponsors, imagine you can learn everything you need to know about creating, launching, and selling an online course in just two days. Great news. Our friends at Thinkific are inviting you to kick off 2021 at their free online event amplify where you can do just that this jam packed virtual summit will empower you to create launch and scale your first or next online course.

0 (14m 13s):
Over the two days, you'll hear from me and the 20 plus other top course creation experts who have created transformational online courses that their students rave about. So if you're ready to create an online course to help you reach a wider audience, build revenue and make a bigger impact than amplify 2021 is a must attend event tune in from anywhere, even the comfort of your home for interviews and real tactical workshops spanning everything from course creation to business strategy and marketing and growth sign up for free today at thinkific.com/amplify that's T H I N K I F I C.com/amplify. Ready to take your at-home workouts to the next level fight camp can help fight.

0 (14m 56s):
Can't bring the boxing gym right to your home with a mix of cardio and conditioning for a full body workout Fight Camp comes with all the gear you need to box at home, including a free-standing punching bag, boxing gloves, quick hand wraps and their unique punch tracking sensors. They show you real-time progress and stats on any iOS device. And the fight camp app comes with over 600 workouts in tutorials with 12 new boxing and kickboxing workouts released every week. Fight camp also offers financings. You can pay over 24 months and get your new gym. Now. Plus fight camp offers a 30 day money back guarantee, just visit, join fightcamp.com/fire. That's right, give FYCARE betray. And within 30 days, if you don't love it, send it back and get a refund. If I camp is a new way to work out at home, make a change and join the community that teaches you the art of boxing.

0 (15m 40s):
While following the most intense workouts, there are as quick as 15 minutes to get free shipping on fight camp, visit join fightcamp.com/fire that's joint fightcamp.com/fire. So Lance we're back and I want to know how you did this. How did you pivot to go to coaching as a revenue stream that had get this fire nation 80 plus percent profit margins? I mean, if that's not the dream, what is take it away? Lance,

1 (16m 9s):
I already mentioned that you want to spend your time with your best people. So it's sort of like Marcus Buckingham and Donald Clifton. You want to develop your strengths and your leaders because that will have an exponential effect. Leaders can develop leaders. So as I was doing this while I was wearing the CEO hat of breakthrough, my partner, Dr. Nate stouts, was working towards becoming CEO. And in 2018, he took over the Baton of the CEO hat. And this was my greatest investment. This was my first child. So it was very scary and he's handled it well.

1 (16m 49s):
I, over the years, developing Nate and developing our entire team. I had basically fallen in love with coaching and developing leaders and building teams. The management philosophy that I adopted from my mentor to make other people successful was basically the same as coaching. So it was a natural fit, but I'm a little bit of a slow learner. So in 2018, as Nate was taken over the reins and, and beginning to do great things, I sought out a franchise broker and it was interesting. He recommended staying within the health domain because of our physical therapy and fitness business. And one of the recommendations he made was actually for an eyelash extension business.

1 (17m 29s):
And my, it wasn't the perfect fit for my wife and I were pretty natural, but it had all star franchise or so it was really interesting to hear. And it, most importantly, it was awesome to be on that side of the table, on the shark tank side of the table with people presenting us investment opportunities and opportunities and fire nation can do the same thing. Okay. So another point that I really want to mention and hammer home is a profit first concept that resonates with me, Michael McCalla wits is an accountant and he wrote a great book. If you decide how profitable you want to be, you can actually reverse engineer it. It's going to force you to make some very difficult decisions.

1 (18m 11s):
And there's definitely a need for coaching entrepreneurs right now during this really demanding and challenging time. John. So I've been very humbly blessed to share all the knowledge and, you know, to have a non brick and mortar business right now where I can keep the expenses very low and deliver great value and have extremely high profit margins. John and I have to thank you. I've, you've inspired me in this area and obviously you've been consistently 80 plus percent profit margins for years. So thank you so much.

0 (18m 46s):
It is my pleasure. That's one thing that we really try to get across with our income reports. So we've been doing now for 87 months in a row. Fire nation is, Hey, listen. It's not just the money that you make. It's the money that you keep. And that's why we have that percentage of net profit. And we really highlight that every single income report, because I know so many people, too many people, you know, they can claim million dollar revenue, but man, the end of the day, they're taking home pennies pennies on that dollar. And they're working so hard for it that it would really cripple their hearts if they actually broke down what they were making per hour. And that's why that book that Lance mentioned is fantastic profits first by Michael McCalla wets.

0 (19m 28s):
Cause it's all about the profits. Now, another thing we hear a lot about Dr. Lance is diversify, diversify, diversify, but we need to do it the right way. So how can we do that diversification the right way when we're running a small business?

1 (19m 44s):
So I've recently become a passionate student of investing. I've been reading everything. I can get my hands on Ramit Sethi, Dave Ramsey, Tony Robbins, Nathan Maka, and currently I'm reading Benjamin Graham, one of the classic investing books. And it's fantastic. So fire nation, one thing, be sure to invest along the way, in addition to growing your business as an asset, this was surely allow you to achieve financial freedom the fastest, and you'll be able to capitalize on compounding. Personally. I've become a little bit of a life and financial coach as our team's head coach. I bought each of our partners Ramit Sethi's. I will teach you to be rich book, and I just want to mention ramen these ladder of investments.

1 (20m 25s):
So think about your 401k matches the first rung on the ladder and then your Roth IRA, and then the remainder of your 401k and then a health savings account. And only then should you consider other more fun investments? Just this week? Our CEO, Dr. Nate styles thanked me for sharing Robert's book and just let me know how much of better position he's in as an investor and financially and Dr. Kevin Schmitz or another one of our partners. Let me know that he's getting very close to maxing out his 401k. So some specific investing things real estate. If you have a physical location, consider owning your real estate, set up the real estate as a separate company, as the perfect relationship, you have a long-term renter and you can re rent yourself and your accounts we'll help you figure out the way to do that.

1 (21m 14s):
Optimally for taxes. Now, real estate is really resonating with me personally, and I'm looking for my first investment property to try that out and see how I like it. However, in the last 18 months, I've had the opportunity to do two crowdfunding investments. And I want to share those with you because my friend, Ahmed and connected me with NRAA and the return is pretty cool. I'm actually being paid 10% return monthly along the way. And I'm being guaranteed on the company. 12% return. The cumulative return is 132% and the annualized return is 26%. So just as an example, if you invested a hundred thousand dollars and the term on this is five years, you'd receive your a hundred thousand dollars back and you would have 132,000 additional dollars if we hit those returns.

1 (22m 3s):
So that's pretty special. You do have to be an accredited investor to have access to that one, but if you're not an accredited investor, there's places like fun rise that have these similar opportunities. So consider those another investment opportunity that I want to mention is as you're helping people and your contacts, and you're sharing your knowledge, you know, you may have the opportunity to earn some sweat equity, a good friend of mine, Dr. Lynn Neil Mitchell has a balanced board that he's hoping and together, I'm hoping to help change the world to become more healthy and fit. And it's called the wobblers. So I'm dedicating some time and expertise to that and have the opportunity for sweat equity. And I think John, you did that with a podcast company that we could talk about.

1 (22m 46s):
And lastly, I'll just mention a passion project because once you do all these fundamentals and you position yourself the right way, be patient investment opportunities will come to you. There's a 140 acre airport and Atlantic city and a friend of mine. Who's a landscape architect is a passionate swimmer and he wants to bring swimming to the masses. So we've literally modeled Icelandic Olympic village for a sports village. We're hoping to bring health and fitness to the youth and adults of the community. So there will be a lot of fun investing opportunities along the way

0 (23m 22s):
Is a really important topic to think about fire nation. Because when you do figure out bringing in your profit and maximizing that percentage, now it's like, what do we do with this money? We can't just always pour back into the business or just do one thing because we never know what the future's going to hold. Like, you know, you can't have the ups and the downs with everything and unexpected things can happen all the time, which is why diversifying across a lot of areas like right now, you know, I'm making sure that I'm have exposure to crypto. And I have exposure to gold and silver, you know, in case inflation may happen or deflation may happen. Like nobody knows what the future has in store for us at all. Everybody can hope in and think they know. But I mean, if anything's been shown, we just don't know what we don't know.

0 (24m 3s):
We definitely don't know what the future holds. So you have to do these things. And like Lance was talking about with my sweat equity, like being able to bring my brand into things for companies that I have people in my audience they should hear about. I can get equity in companies for that. So for not even necessarily investing a dollar amount, I'm now potentially getting some equity in a company that could be acquired or could, you know, sell someday or could do all these different things. So there's a lot of ways to look at this. He mentioned a ton of great resources. You know, Rameet Satie is a dear friend of mine. I recommend his book. I will teach you to be rich. It's a fantastic one. He's actually in my book, that's coming out in March. He's one of my 17 contributors.

0 (24m 43s):
So great things you just share the Atlanta much. Appreciate it. And let's end with a bang. The most common pitfall that you find amongst small business owners,

1 (24m 56s):
Is that going straight to action, not breaking away from the day-to-day may hem and chaos. I particularly see this in a lot of action oriented people and especially people that are great at sales. Instead, we have to take a step back and reflect regularly. We need quiet focus, time without distractions. This will allow you to have aha moments and breakthroughs put some time in with yourself, discovering what's most important to you and doing some soul searching introspective work proactively create a time map. Some people call it a time box. I call it a success schedule is actually my step five. And in my book, carve out the areas that are most important to you and make them non-negotiable time for your family time for your personal health time to work on the business.

1 (25m 44s):
We've this plan and your strategic work through all of your time on a monthly, weekly and daily basis. Be sure to build in 20% for meaningful rewarding, purposeful work, because this will help you prevent burnout. Take time to set up your chest pieces for success in business and in life, John, like you said, 2020 showed up fast, the world and the market can change. And if you really don't have a process in place to do some strategic work and planning and know how to pivot, how to tweak, how to adjust what say no to, unfortunately there's a much higher likelihood that you're going to end up in the bucket of entrepreneurs that fail the 96% bucket.

1 (26m 27s):
My mission is to help more entrepreneurs avoid that. So no matter what time of year, you're listening to this the best day to start planning and being strategic with your actions is today. Okay. So I mentioned to John by email a couple of weeks ago that over the last couple of years, I've realized that 90% or more of entrepreneurs do not have a business plan in place. And they really, many of them don't know how to do it. And even the ones that do often aren't able to break away for 40, 80, 120 hours to do a traditional business plan. So what I finally carved together out of this gap was a two hour fast and functional business plan, which I'm calling a jolt business plan.

1 (27m 11s):
And I've created a free tool, a job business planner that I'm offering to fire nation today. And if you put in the reps, fire nation and you actually do the work and you share it with me, I'm offering a 20 minute strategy call to help you anywhere where you need some guidance anywhere you are stuck.

0 (27m 29s):
Fire nation, we've gotten so much value so far from Lance here today. And last, I just want to personally say thank you for coming on dropping all these value bombs. Let's end with you sharing the one thing that you want to make sure fire nation takes away from everything that we talked about here today. Share with us the best way that we can connect with you. And of course, any call to action you have for us fire nation today. And then we'll say goodbye,

1 (27m 52s):
Take strategic action fire nation, put some time in with yourself. Do some introspective work, discover what's most important to you. Discover what matters to you and then dedicate yourself to it, commit to it. You'll have some ahas and some breakthroughs you will survive. You will become part of the 4% that survive in business and thrive in life. If you'd like to check out my job business planner, go to Denaliconsultingteam.com/fire. And if you send it to me, I will hop on the phone with you and we will help you get through your business plan. Please email me at DrLanceKnaub@denaliconsultingteam.com.

1 (28m 34s):
My Instagram is Dr. Lance Knaub and thank you so much, John. I am absolutely thrilled. This is a full circle opportunity. Entrepreneurs on fire was the very first podcast that I was exposed to actually in a mastermind. My friend, John Sharp told me I listened to all 2000 episodes and I it's a dream come true.

0 (28m 60s):
Fantastic brother. I love it for all those reasons and more and fire nation. You know that you're the average of the five people you spend the most time with. You've been hanging out with LK and JLD today. So keep up that heat and head over to eofire.com type at Lance in the search bar. The show notes page will pop up with everything. We talked about links to everything, and man, that's a giveaway that Dr. Lance is sharing with us over at denaliconsultingteam.com/fire. That is fantastic. He's offered to jump on a call with you. If you send him the results of that. I mean, that is just a commitment to you, fire nation.

0 (29m 40s):
So absolutely fantastic. I challenge anybody who really thinks they're an action taker to take action on this and take advantage of this opportunity. And one more time, you mentioned your email address, Dr. Lance, go ahead.

1 (29m 52s):
Dirt Lance Knaub, K N A U B as in boy at Denaliconsulting,team.com. Cool.

0 (29m 58s):
And again, for our nation, we'll have all this linked up in the show notes. You can go directly there or go directly to either one of the places we just mentioned. So Lance, thank you for sharing your truth, your knowledge, your value with fire nation today, for that we salute you and we'll catch you on the flip side. Thanks John. Hey, fire nation. Today's valuable content was brought to you by Lance ants, fire nation. My first traditionally published book is hitting the shelves on March 23rd of 2021. And I am so fired up about it to say the very, very least the title is called the common path to uncommon success. Your roadmap to financial freedom and fulfillment in pre-orders fire nation are everything.

0 (30m 42s):
So if I've given you any value over the years, it would mean the world. If you would head over to my pre-order page and lock in your copy or copies, if you pre-order, I have some of the best bonuses out there for our nation. And we're talking to suite bonuses and extras for you and your loved ones. If you are able to order a couple more head over to eofire.com/success and check out the awesomeness today, EO fire.com/success. I'll catch you there fire nation, or I'll catch you on the flip side, ready to launch and sell your online course. Then you need to tune in for amplify 2021. With Thinkific. This free jam packed event produced by our friends at Thinkific will bring together 20 plus international course creation experts to share their behind the scenes tips and strategies to get you on the fast track to launching a course that will sell, visit thinkific.com/amplify to RSVP today.

0 (31m 39s):
That's T H I N K I F I C.com/amplify. We're all looking for new ways to stay active from home. These days in fight camp can help fight can't brings the boxing gym right to your home with a mix of cardio and conditioning for a full body workout. Visit join fightcamp.com/fire to get free shipping on your new gym today. That's join fightcamp.com/fire.