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Chapter 1: What is discussed at the start of this section?
Generate is supporting my vision to improve the financial literacy of 100,000 Kiwis by sponsoring Keep the Change. Cheers Generate! Head to generatekiwisaver.co.nz forward slash change to find out more. The issue is, I've got a good product, but the leverage at the moment, there's only so much time that I have. Basically, you expect that you've got greater demand than you have capacity.
And this is where it gets tricky because someone like you, I'd imagine, you're doing it not just for the money, but it's because you really enjoy it. That's right, yes. I want to be able to help more people, as cliche as it sounds. But that's where I think we have to then go, okay, what... makes this worthwhile.
If we've got limited capacity, we have to charge well because it's not just what we're charging, it's the inability to charge someone else who would have been willing to pay more. So many things that can take away from this and I'm sure listeners can take some nuggets as well.
today we're going to explore scaling a side hustle up so this will be a live training now for context al reached out to me and he was going to book a paid call with me under my next advisory accounting and advisory business and i thought you know what this could be an awesome learning opportunity for the keep the change audience and people across new zealand who are thinking about scaling their side hustle up
i often get questions from people about how they can take it further and this is i think some of the principles that you need to be thinking about before scaling your side hustle any further so for context i had a quick call with al to find out what it was that he was doing and i do not know too much more than that.
So I've deliberately kept it very detailed light for myself so that I can really dig in alongside you guys listening and try and figure this out on the fly. And hopefully you guys can learn from it. The risk was that I went and did heaps of research in the background, which is typically what I would do on a paid consulting call and understand their business a lot better.
But that would probably mean that I would skip a number of steps and speed up the call. So we're going to slow it right back and I do not know nearly anything about this lad or what he does, but thank you mate for agreeing to do this. And I'm sure that this will help so many people that are in the same position. Yeah, thanks for having me on. No worries.
So to start with, what is it that you do for a bit of extra cash? Yeah, so day to day, I'm fully immersed in the music education in Auckland predominantly. For extra cash, I am doing one-on-one private teaching. I run a private music studio and I do about Roughly 12 hours of work for that on the side every week. Sometimes it's a bit more, sometimes a bit less.
But during the day, I'm based at a school out in East Auckland as a director of jazz. So that's my official title. So what that involves is taking... Anything jazz band related, we go to competitions, we set them up to compete. We teach one-on-one lessons, group lessons, and also a little bit in the classroom as well. Okay. So you're a full-time teacher. Full-time teacher. That's right.
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Chapter 2: How does Albert describe his current teaching situation?
Um, a high standard of teaching that will be valuable for a lot of clients and I want to be able to reach out to more people. However, the issue is I've got a good product. I like to think, um, but the leverage at the moment, there's only so much time that I have. And that's the primary reason why I wanted to get on a call with you to see how can we battle this situation.
There's something that I want to show the people, something that I like to think that I'm quite good at it. And I want to be able to help more people, as cliche as it sounds. That's the reason why I'm starting this.
this or the scaling part yeah yeah and is that what brought you back into taking on that first one-on-one again sort of yeah yeah so you just there's a real sense of loving this like yeah that's right I it never feels like a working day for me like every single day okay well I guess you the first time you get to say 80 people and you know that it's got the risk of not really being able to go beyond that starts to probably burn you out if we want to use that terminology but when I say burnout I talk about it as it's like
your effort put in starts to not be matched by the same amount of rewarding you can feel like what it's not fulfilling is not you know as enjoyment not oh you're burnt out how everybody else talks about it on the internet and um you know throws around that terminology so loosely but okay see the the diminishing returns start to kick in as such and what i guess is the sometimes i say like the nirvana like the ideal situation if you could have
You know, it looked like whatever you wanted it to look like. What, what do you think that that would be? I think I'd like, ideally I'd like to have a, uh, a handful of one-on-ones and then, uh, majority of my students still following the system that I've built, but not being, uh, not requiring 30 minutes of my time or 45 minutes of my time each week. Okay.
So that would be, I think that would be the ideal goal. Yeah. And I think the biggest, um, doubt that I have at the moment is in my head, people are wanting that time with myself. And that's the biggest thing that I'm trying to break away from because I I have built some good systems around that and it has worked in the past, but I'm not sure how to get that going again. Yeah. Gotcha. Okay.
And just so I understand, if I'm coming to you and I'm learning jazz, piano, drums, am I bringing stuff to you? You're not bringing anything to me. Yeah. Okay. So you've got it. I've got all the instruments and I provide the curriculum as well. So I don't have to say, hey, go to the shop and buy this. As long as you've got...
yourself in the room in the same room with me cool then okay let's get into some numbers yeah so I've got context of that piece too because sometimes I like to say to people like do do the numbers yes count it right so the numbers actually work so what are these people paying for one-on-one They're all on different rates. So that might be a thing because I've started teaching a long time ago.
So some of them have been there from the beginning where I was charging a lower rate and I try to keep that as much as I can. So some people might call this like legacy pricing for the early onboarders. Yeah. So bottom line is for 30 minutes, I charge at 46 to 58. Okay. So 58 will be the newer clients that have come on board more recently. Cool. And then the 46 are the older ones that have
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Chapter 3: What challenges does Albert face with his side hustle?
sorry um and i think it was like lashes or something they're like we can't do the whole thing because you're late it's got nothing to do with the fact but us and so the customer was pissed off because they're like well i then saw that they did nothing for the next five minutes but they are basically setting the standard of how right we operate and if you think about it you're again we go back to you're good you've got this is good quality they're not coming to you because you're cheap or
Partly, maybe they are, but that's not where we want to be in the future. So they come to you because they're good, so then they're going to respect you. And then they have to play by the rules. And there's only so much of your capacity. If they don't play by the rules, really sorry, but we'll find somebody else who is.
But underlying all of this too, mate, there's a piece here that we have to figure out. What are these parents actually paying for? That's a hard one, eh? Yeah, what are they paying for? I would still say majority of them are saying, hey, music is good for Whether they think it's brain development or coordination or just another creative outlet to learn.
I think every parent or most parents have an incentive to provide the best sort of experience or education for their children. And music lessons happen to be one of those things. So sports is one, music's one, could be art classes, swimming, all of those things. So I think some parents definitely think, all right, this is your music side of your upbringing. Yeah.
Some parents definitely think, oh, no, I want my kid to be the best in New Zealand. And they say, hey, what can you do to help make that happen? Or what can we do together from home as well as from myself to make that happen? So I think it is two kind of very extreme parts of the spectrum that parents expect. Okay. Well, I don't have kids, right?
So I don't understand the context of that, like that thinking process from a parent. But what I observe, I guess, is that some people want their kids being babysat, right? And that's what they're paying for. It feels like that every now and then, yeah.
But I'd imagine with this, with what you're... So the way I picture that in my head is people dropping their kids off to the library holiday program, being like, okay, now I can go do my job or do my thing whilst someone else takes care of my kids. Yeah. This to me feels like I'm a parent who's got aspirations for my child and that my child does too.
And I'm willing to invest into the extracurricular education so that they can be a better version of themselves or have opportunities that they may not. Because we could argue, why do they need this if they could get it at school? So clearly they aren't getting it. Well, we, we argue like there's must be something more that you can deliver.
They're not getting in their schooling, no matter where they're going to school. Right. And I think those are your ideal clients. Not right. Um, you know, Sally's interested in jazz. Fuck just drop her off at Al's and like, who cares what he charges? At least we've, you know, got a half an hour to do whatever they want to do. Yeah.
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Chapter 4: What strategies can help scale a side hustle effectively?
And you've had previous ones. You've probably got some form of database. And in the next school holidays, I would go out to all of them and say, hey, between these hours, I'm hosting a, again, we need a package. Specific workshop almost. Yeah. And then you would go, what's the key thing from the curriculum? Hmm. that they get the most value out of.
And they would say, look, this is going to be a workshop for all the kids. They can bring their equipment. They don't need to if they don't want to. I'm going to bring some equipment. And say it's going to be run from X, Y, Z, AM to 1, whatever you think you need. Might even be a couple of hours. Yeah. and go, would your child be interested in coming along?
Would you be interested in your child coming along? This is for serious players only sort of thing. Drop me a line back. So then we're putting some bait in the water and then we are capturing some market interest
Chapter 5: How can you package your expertise for better pricing?
And then some of them are going to go, yes, can you tell me more? And then you tell them more. So then it's great, but yep, that'd be a great fit for this. It's going to be $100. You're going to have to charge GST, I'd say, on the journey that you're going on, plus GST. Whatever, it might be $200, whatever. We'll come back to pricing. And then there's limits. There's probably put a limit on it.
So there's $10, $20 that's first and first served. Do you have the infrastructure to be able to do this? Could you organize this? Yeah. And then, great, send them this, send them, you know, however to sign up. It might even be you build a way for them to pay electronically. You've probably got these things figured out already.
But if you get, you know, 10 in the room at $100, you know, you've got $1,000, right? And then... You go, well, okay, how long did it take you to make $1,000 the other way, right? So if we divide that by 58, that would have been 17 hours times by two, 34 sessions that you would have had to do to make the same $1,000.
Chapter 6: What mindset shifts are necessary for increasing your value?
Now, this I think is probably one of your single biggest levers to figure out, can you do one-to-many? Right. Can you do, you know, can you do this in a group setting? Can you build leverage into it? Because that's the overall thing that we're trying to solve going right back to the top is actually leverage. Mm-hmm. Now you might get 10 that do it.
And I think if you do it, you're going to learn a lot doing it, but you're also going to, I'll just finish off. Once you build it, you can go back to all those people and be like, Hey, we are doing this. There's three spots left. So it gives you an ability to like remarket, you know, because you've said that you're asking them, are they interested? And now, Hey, we do have three.
Cause at that moment they might not, nah, it doesn't work. And then, or maybe it does. And then the scarcity brings it down to, okay, cool. So then you fill the room, you do 10, and you go, shit, okay, I made $1,000. You might go, whoop-de-shit, I made $1,000. But you should be going, well, I saved myself. I just put 30, basically, sessions back into my week.
But what it will hopefully do is, ah, this is possible. Yeah, that's right. Yeah, yeah. The mindset. Yeah. And then I think what you'll find through this too is that these parents are probably your ā
uh next customers in some form over the next like 24 months they're probably the most serious ones right because they're willing to spend again yeah so once you have a customer base so there's always other things that you can offer true right it's no different in my business for next advisory for instance we have thousands of people who follow us listen to us who um you know comment on and then we have like 150 clients
And I think, how do we only have 150 clients when we've got tens of thousands, probably, you know? So if I go, right, what's 150, 150. divided by, let's say, 10,000, like it's 1.5% of the market. Now I know that probably 3% of that market should be willing to buy.
So I know at any one time that basically I've got 150 people who want to right now spend money with us, but they're not because I'm getting it wrong. I'm not putting an offer in front of them that they want to pay for. Because loosely 3% of a market will be willing to pay for something once you start to build an audience, right?
Now, if I can then get the right sort of offer in front of them, then they can probably transact with me. So then I can have one-on-one, they can do their accounting, they can do 12-month business planning with us for a year, over a year for 23 grand. And that's kind of as much as they can do accounting. One-on-one, 90 days, one-on-one.
Sorry, Phil and I, so it's one-on-one, but both of us over a 12-month window. They have a half-day session and then a quarterly session.
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Chapter 7: How can testimonials impact your business growth?
But then I look and I'm like, well, look at all of these other people. There's 10,000 over here, but 150. And I'm also not making the right offer to the other 150. But then there's this 97. So then I keep creating content and I keep staying in front of them for them to then hopefully one day become the 3%.
But then I slotted in for us just to give an example of how this can kind of work in different spots. It's like... you know, okay, well, can I go one to many online? So, okay, we're going to do a workshop and then charge a hundred bucks for the workshop instead of doing free stuff, right? We've got so much free stuff out there.
You know, do you want to be in the 97% or do you want to eventually be in the 3%? So they come to the workshop and they pay a hundred dollars to come to the workshop. And then they go from sort of listener, follower to, okay, I'm going to see if this guy's full of shit. Well, you can have your a hundred bucks back if you don't learn anything. Typically no one does.
We've had like two, I think one lady signed up thinking it was a live webinar. It was a replay. I'm like, Hey, you've got the wrong in the stick. Here's your money back. Like,
chill another like you guys swore too much didn't rate it okay cool here's your you know then they still that one still comes to future workshops right so basically like 99 point something percent never ask um because you should be able to deliver value to them because you're picking out the best bits from the curriculum yeah basically same principle right and then i launch a one-to-many do you want to come to a group thing what i noticed uh
for the group thing is that just about, well, every single one of them, so we're going to do 20 people in a room, every single one of them that have signed up so far have come to the workshops. But they are also not a next advisory client. So they are another accountant's client, but they are in our world.
They are then coming to a workshop, learning something, and then going, okay, now I'm going to get in the room. Now the workshop's 100, but the in-person's 1,500. So it's 15 times their first investment. But they're going, well, I got enough value out of that to trust them that they can deliver 15 times the value in a full day setting.
Now, I'm still like, why do people not sign up to this faster? They say, I want to learn about my business. I want to do this. I want to grow and shit. And it's like, here's a way to do it. From some guys that you can see 180 Google reviews from that it's working. $1,500, come along. Nah. But you can't listen to the noise of people who won't do it. We've got to find those people that are.
Focus on that 3%. Yeah. Same sort of thing in your business where you will have a database of these people. And at any one time, if you think 3% to 5% are probably willing to pay for an offer that you're just not yet putting in front of them, it gives you an incredible starting point to go, I've probably got some leverage. So for the listeners out there,
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