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  • Evan Ryan

The Math of Business

So this morning, I'm on the phone with my dad. And we're working together on building a sales process for a product we have we're working together on and how we are going to expand into a new customer segment, my dad has, I don't know, 30 years, I'm aging him of experience in large corporate sales, he's probably the best corporate salesperson I've ever seen. And so he's helping me out with some stuff, especially stuff that I'm just really, really bad at. I've tried and tried and tried in order to expand into different customer segments, I've never really been that good at it. And so I'm kind of working with him on it, we've been working together for the last almost 90 days. And I have learned more in the last 90 days than than I had in the previous 90, which is great. And so we were talking about this thing today that I wanted to share with other entrepreneurs that I wanted to share with other people who are looking to share their or start their own business who are looking to grow their business who are working to work less and make more, these are like kind of the people that I just really hope that this podcast goes out to. And that they're the kind of entrepreneurs with massive ambition, they're looking to do things that make the world a better place, they're looking to do things that they absolutely love to do. And they're looking to do things that leave a lasting impact and whatever, where they want to leave an impact and, and so today, what I want to talk about is what we talked about, which is the math of business now, and turning business into a math problem. And so if you're not a math person, honestly, I apologize, just bear with me, if you are a math person, or if you're a science person, then I think this is gonna be this is gonna be pretty good for you. And my kind of intention here is to just allow you as an entrepreneur to think about how you can systemize your business more I hate I hate the phrase work on the business and not in the business. And so that's not it. That is just I think that that phrase is hogwash. But just how can you make your business more repeatable? How can you give your business a bit more confidence? How can you turn your business into a y equals mx plus b type of math problem where maybe some variables change. And if variables change, then you change your activities but you know, with a certain level of certainty how something is going to go. And so we're going to talk about confidence. The math of business purely comes down to confidence. It comes down to how much confidence Do you want and my intention for myself in my entire 90 day journey, which I'm going to kind of walk you through my my intention for myself is how can I create a more systemized business model so that I can help more people so that my business can help more people so that we can go out and we can handle another 100 customers or we can handle 1000 customers or 10,000 customers right now we can, we could not if 100 customers walked into my door today, we could not handle it. And so what I am really focused on is how can I create a really repeatable process, a really systemized process in order to allow us to be able to help more people to be able to transform more entrepreneurs lives to help more entrepreneurs succeed faster. So first and foremost, what is confidence. And that's what this whole thing boils down to. This boils down to my having the confidence that we can scale to another hundred customers or thousand customers or whatever. And confidence is my knowledge that the future will be as I want it to be or better. So confidence is always in the future tense. Cash confidence means you know that money is going to come in the door in the future. If you're not confident about the current money that you have. You're confident about future money. One of the reasons why so many people take corporate jobs is because they want to have cash confidence. They want to know that they're going to have a steady job. That's the same way of saying they have cash confidence. Confidence is the knowledge that your future is going to be as you want to be or better when coronavirus strikes, and people think like the world starts freaking out that is a serious crisis of confidence. Because they don't know that the future is going to be as they want it to be or better. Right? That's just it's not a given. And so your confidence might be shaken. And so confidence always being in the future trends tense is what we're looking for. We talked about turning business into a math problem. When we talk about turning business into a y equals mx plus b type of problem. It's about how can I make sure that I know every single time I do an hour activity I know what the output is going to be, every single time I send out 100 emails, I know that I'm going to get two new customers, right? That would be great, then I would just hire five people, they would send out 100 emails a day, we'd get 10 customers a day, over two weeks, those five people paid for themselves. And now we're off to the races, right? They do that every single time for 50 weeks, or for 48 weeks, or whatever it's going to be. And now we've got, we've got something great, right, but you need to know that for every 100 emails that you send, you're going to get two responses that are going to lead to customers, right. And so that's where the, that's where the confidence lies. That's where the math of business lies. And like, let's think about people who are just confident in general, I think about people who are confident. And the two things that I really think about are that those people really know themselves, they are sure of themselves. They know who they are today. And they know who they are today is who they are going to be tomorrow. They know who they are today is going to be who they are a month from now, a year from now, but better and whatever ways that they're currently improving, but those people who are confident confidence comes from knowing that you're not going to lose, you're only going to make progress. Or if you're not making progress you're learning. Right? confidence comes from people who really know themselves. If you just think about people who are confident, right? I'm talking about businesses right now, just people who you know, that are just just exude confidence. It's people who really know themselves, they are so in touch with who they are as a person. And I think that there are people who have a really strong foundation, those are people who have figured out these foundational things, if you don't have the foundation figured out, you're probably not going to be that confident, right? Because you're still learning what is this foundation? What is the thing that I'm what are the things that I'm willing to, like, kind of stand upon? What's the hill that what are the hills, I'm willing to die on? Right? These people who have a strong foundation, they know themselves, they know how they're gonna act today. They know how they're gonna act tomorrow. They know where what areas they're looking to make progress on. But they're not trying to figure out who they are. They're not trying to figure out what they stand for. They already know all of those things. And so that's what I consider to be it to be confident. And so if you trade kind of change that into a business sense, I think it's businesses that really know themselves, they know who they are, as a business, they know who they serve, they know how they serve them. They know how they want to approach them, right. And they're businesses that have a really strong foundation. So they have good product, they have good distribution, they have good sales, they have all like, they have all these things, and they just know every single time it's going to work. Just like you have confidence that if you go to McDonald's, the hamburger is going to taste the exact same as it did the last time you got the hamburger, it doesn't matter if you like the hamburger, the thing here is that, you know, it's going to taste the exact same. A lack of confidence would be if I went to a restaurant, and it was a radically different experience than it was the first time. Right. And so I think the confidence is a future tense. When we talk about the math of business, we're not talking about having this math be accessible. Now we're talking about having this map be useful in the future. That way you know exactly what's going to happen in your business. Every time you do an activity, you know what's going to happen. And so an example of this here is it's taken us 18 months, literally 18 months to really have a ton of confidence in our Pinterest product search. We know that search works every time for every business, it works for bloggers, like it works for e commerce, like it works for finance, like it works for insurance, we drive great website traffic every time search just works. And it took us 18 months to get there. But now we know. And in fact, we have conversations with customers all the time that like Hey, hey, customer, I know you have 50,000 people viewing your Pinterest content every single month. They're probably the wrong 50,000 people. But if you stick it out with us for three months, we will break down your entire Pinterest account and we will build it back up and it will be twice or three times as large as it was in three months as or and it'll be in three months will be twice or three times as large as it is right now. And we will have built it and we broke or broken it down, built it back up and we'll done it the right way. I just had this conversation last week or two weeks ago with a client the client said how is it that over the course of seven or eight weeks, you could take our count and subsequently make the analytics go down and know for a fact that you're going to quintuple our number of website visitors from Pinterest in six weeks. So well, because we know that search works every time, I've total confidence in search, I just know it works every single time. And I know with our future customers search is going to work just as well, if not better than it has for our previous customers. And so, confidence being in this future tense, it takes a lot of time. But now we have the math of search. We know if we do this much posting of other people's content, and then we post our content. And then we comment on posts. And we like posts and we really nurture a great community and you kind of dig the well before you're thirsty. If we do all these things. We know that in 678 or nine weeks, we are going to crush it for our clients, our clients will get more website traffic than they could have ever expected from Pinterest in a month. So what have I been working on? In the last 9090 days with my dad, I've been working on building cash confidence. I've been working on building out this, what happens if we reach out to 100 people with this message, and the people are qualified this way? Right? So we have a certain persona of people, it's a client who has

to 250 employees, they have at least half a million dollars a year in revenue, they have probably one client who makes up at least 10% of that revenue, and they are struggling to build new products or expand their capabilities. Okay, well, what happens if we reach out to 100 people that have this exact, like customer criteria that and they need Pinterest capabilities, and we have this email message? Well, one of them responded back. Great. Okay, now, let's do love another hundred, two of them responded back. Okay, now we've got something here. That's really interesting, great. These are not real numbers, by the way. But that's what we're focused on, is we're focused on how can we take all of the kind of what ifs in business and systemize them down? That way? I know, every single day, what is going to happen in my business, I know that the future of the business is bigger than the past of the business, even in the middle of a pandemic, even the middle of what is technically a recession, how can I make sure that that we are going to have growth in results in the business for every 100 people that we show an advertisement to or for one of every 100 people that click our website, we know that seven of them are going to give us their email address, and then 0.5% of those people are going to make a purchase or whatever it's going to be right. And so how can we make sure that our business is just totally systemized, that way, we have growth in results. And everything is repeatable. Once it's repeatable, it can be trained, or it can be automated. But if it's not repeatable, you can't train like you can't train, what if you have to t