Podcast 49:51 | Download | Spotify| Stitcher | iTunes
Many founders hit $3M in revenue and stall out. In this episode, Dan and Greg Crabtree break down why—and how to fix it. They discuss “profit truth”, how to spot financial red flags, and what metrics to track to scale beyond the messy middle.
Plus: we’re looking for listener stories. Have you implemented a system or framework that changed your business? Tell us about it. Your story could help 1,000s of entrepreneurs.
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Form: Share your story / sponsor the pod
Labor Efficiency Ratio Summary
CHAPTERS:
Audio
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(00:00:14) Introduction and the Death Zone
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00:09:37) The Impact of Paying a Market-Based Wage
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(00:11:03) Behavioral Economics and Profit Truth
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(00:14:38) The Definition of a Fully Capitalized Business
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(00:16:49) Transitioning through the Death Zone
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(00:17:26) The Three Steps to Business Success
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(00:18:51) Remaining Profitable in the Death Zone
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(00:19:48) Different Capital Profiles and Cashflow
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(00:21:04) The Emotional Challenge of Spending in the Death Zone
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(00:24:03) The Executional Problem of Growth
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(00:24:24) Getting Through the Black Hole
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(00:27:02) The $3 Million Mark
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(00:28:25) The Worth of Going Through the Zone
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(00:31:32) Managing a Marketing Agency Past $5 Million
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(00:36:26) Common Mistakes Made by Founders
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(00:38:36) Understanding Profit Truth
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(00:45:33) Investing in Finance and Accounting
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Past guests on TMBA include Cal Newport, David Heinemeier Hannson, Seth Godin, Ricardo Semler, Noah Kagan, Rob Walling, Jay Clouse, Einar Vollset, Sam Dogan, Gino Wickam, James Clear, Jodie Cook, Mark Webster, Steph Smith, Taylor Pearson, Justin Tan, Matt Gartland, Ayman Al-Abdullah, Lucy Bella.
PLAYLIST:
The Roadmap for Turning a Skill Into a $1M Business
The Unexpected Downsides of Selling Your Business
The Anti-Agency Agency + High ROI Customer Service Strategies
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Have comments about the show?
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You can email our producer Morgan at [email protected].
Thanks for listening to our show! We’ll be back next Thursday morning 8AM EST.
Cheers,
Dan & Ian