Permission to Kick Ass

Patrick Rogers: How I lost 75% of my income (and bounced back)

November 29, 2023 angie@permissiontokickass.com (Colee Creative) Episode 144
Patrick Rogers: How I lost 75% of my income (and bounced back)
Permission to Kick Ass
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Permission to Kick Ass
Patrick Rogers: How I lost 75% of my income (and bounced back)
Nov 29, 2023 Episode 144
angie@permissiontokickass.com (Colee Creative)

From a Navy-based Nuclear Engineer to a Fortune 500 Sales Manager, Patrick discovered his passion for entrepreneurship by successfully flipping houses. Recognizing his knack for mentorship, he transitioned into coaching CEOs, specializing in acquisitions consultancy. If you need inspiration and a push to chase your goals, this episode is for you! Listen now! 
 

Can’t-Miss Moments From This Episode:
 

  • Truth Bomb: You don’t need a Ph.D. and a bazillion years of experience to do the damn thing you wanna do. Patrick shows us how cozying up to the right mentors could be your missing link. "It's who you know, not what you know" might just hit closer to home than you think...
     
  • Feel like you have NO idea what you’re doing? Newsflash: You're not alone! Join Patrick and me as we uncover the hidden magic of being 'coachable’... 
     
  • If you’ve been wondering how you can escape the trading time for dollars trap, Patrick's words of wisdom from his ‘pandemic-induced pivot’ may just be the advice you need… 
     
  • Spoiler Alert: If you don’t know where you’re going, there isn’t a coach, guru, consultant, or wizard that’s going to be able to get you there. Patrick and I are exploring why getting clear on your goals is KEY if you want to progress...
     
  • What do you do when $hit hits the fan, your business is tanking and you’re hemorrhaging money? Patrick shares the inside scoop on his ‘pause and pivot’ strategy - (soon to be on a t-shirt or tattooed on my forehead). It worked for him and here's how you can make it work for you too… 
     

This one is jam-packed full of advice. Don’t miss out - listen now!
 

Patrick’s Bio:

Patrick Rogers is an experienced entrepreneur, cutting his teeth in the property management industry. He then spent 15 years consulting 7 and 8 figure CEO’s on everything from scaling the business to culture development and strategy. He is now a Mergers and Acquisitions growth consultant and helps CEO’s double their business every year through a comprehensive turn key acquisition strategy.

He lives in Medford, Oregon with his beautiful Fiancee and children. Patrick is a voracious reader, recreational athlete, outdoor enthusiast for all things nature and country/rock infusion guitar player/vocalist.

 

Resources and links mentioned:

Come kick ass with me:

Support the Show.

Let's collab:

Let's connect:

If you dig the show and want to help bring more episodes to the world, consider buying a coffee for the production team!

Show Notes Transcript

From a Navy-based Nuclear Engineer to a Fortune 500 Sales Manager, Patrick discovered his passion for entrepreneurship by successfully flipping houses. Recognizing his knack for mentorship, he transitioned into coaching CEOs, specializing in acquisitions consultancy. If you need inspiration and a push to chase your goals, this episode is for you! Listen now! 
 

Can’t-Miss Moments From This Episode:
 

  • Truth Bomb: You don’t need a Ph.D. and a bazillion years of experience to do the damn thing you wanna do. Patrick shows us how cozying up to the right mentors could be your missing link. "It's who you know, not what you know" might just hit closer to home than you think...
     
  • Feel like you have NO idea what you’re doing? Newsflash: You're not alone! Join Patrick and me as we uncover the hidden magic of being 'coachable’... 
     
  • If you’ve been wondering how you can escape the trading time for dollars trap, Patrick's words of wisdom from his ‘pandemic-induced pivot’ may just be the advice you need… 
     
  • Spoiler Alert: If you don’t know where you’re going, there isn’t a coach, guru, consultant, or wizard that’s going to be able to get you there. Patrick and I are exploring why getting clear on your goals is KEY if you want to progress...
     
  • What do you do when $hit hits the fan, your business is tanking and you’re hemorrhaging money? Patrick shares the inside scoop on his ‘pause and pivot’ strategy - (soon to be on a t-shirt or tattooed on my forehead). It worked for him and here's how you can make it work for you too… 
     

This one is jam-packed full of advice. Don’t miss out - listen now!
 

Patrick’s Bio:

Patrick Rogers is an experienced entrepreneur, cutting his teeth in the property management industry. He then spent 15 years consulting 7 and 8 figure CEO’s on everything from scaling the business to culture development and strategy. He is now a Mergers and Acquisitions growth consultant and helps CEO’s double their business every year through a comprehensive turn key acquisition strategy.

He lives in Medford, Oregon with his beautiful Fiancee and children. Patrick is a voracious reader, recreational athlete, outdoor enthusiast for all things nature and country/rock infusion guitar player/vocalist.

 

Resources and links mentioned:

Come kick ass with me:

Support the Show.

Let's collab:

Let's connect:

If you dig the show and want to help bring more episodes to the world, consider buying a coffee for the production team!

Angie Colee (00:00):

Welcome to Permission to Kick Ass, the show that gives you a virtual seat at the bar for the real conversations that happen between entrepreneurs. I'm interviewing all kinds of business owners from those just a few years into freelancing to CEOs, helming nine figure companies. If you've ever worried that everyone else just seems to get it and you're missing something or messing things up, this show is for you. I'm your host, Angie Colee, and let's get to it. Hello, and welcome back to your permission to Kick Ass with me today is my new friend Patrick Rogers. Say hi.

Patrick Rogers (00:37):

Hello everybody. Thanks for having me on the show, Angie.

Angie Colee (00:40):

Oh, my pleasure, my pleasure. I can just feel the good energy is coming on this one, . Alright, so tell us a little bit about your business and what you do.

Patrick Rogers (00:49):

Yeah, so I guess, I mean, a little bit of a backstory. Um, you know, uh, I, I was actually in college. I was nuclear engineer, studied, I was fascinated with fission and fusion and Wow. And, uh, made it through first year of college and my parents could only afford, you know, one year. And so going in sophomore year, I had a 4.0 and was in great shape and, and, uh, all the men in my family were, you know, were in the Navy. And when the opportunity presented itself for a full ride scholarship to become a nuclear naval officer, uh, which, uh, I was fascinated with. And at the same time, the opportunity to defend my country and freedom, I jumped on it, got the scholarship, and then I became a commissioned offer officer. Um, proud to serve my country. And, and, uh, I decided after my first child was born, I exited the military and pursued a career with a Fortune 100 company as district sales manager.

Patrick Rogers (01:37):

And while I was successful in that, I also realized that working for the man is not gonna get me to where I want to be in life. That's when I got into, started a property management company, uh, started flipping houses to, to generate wealth, which is, you know, what, what many of us are after. And turns out I was pretty good at business. I was successful at scale in my company that was approached by other CEOs of property management companies who asked me to mentor them. And that's how I broke into the consulting world, uh, which is where I am now coaching and consulting. And so I ended up coaching CEOs in just about every industry. I still do coach occasionally I'll take on clients, uh, since 2009, very successfully. And, you know, my average client went from working 60 plus hours a week to less than 20 and, uh, increasing their profits by 200, 300, 400%. And, you know, I think I've coached upwards of 250 business owners over the years and what, while coaching was and is very rewarding, I've now turned my focus to mergers and acquisitions. And so what I do now, Angie, to long-winded answer to your question is I help founders and CEOs of four to $40 million companies who wanna grow faster, are burned out, or just not make any income. They once dream of. Um, I, I help them, uh, grow through acquisitions.

Angie Colee (02:48):

That's incredible.

Patrick Rogers (02:49):

Yeah, thank you.

Angie Colee (02:50):

Blown away by that journey. And I can honestly say I'm pretty sure you're the first nuclear engineer that I've had on the show. That's awesome. All right. We're having milestones all day today, , and wow. Like what a journey, what a big switch to go from Navy Vet to working for this company to becoming, to becoming an owner of a company, to consulting and wow, every evolution. I'm just kind of fascinated about like what led you to that decision? Was it something that you fell into? Was it something that you got introduced to? Like, how did that happen?

Patrick Rogers (03:23):

You know, great question is, um, when, when I was working for the company, I was trying to generate wealth and I was doing it through flipping houses. Mm-Hmm. . And there's just something inside of me that just, just, I get, I get motivated by taking something that is somebody else's, you know, I won't say trash, but you know, it's, there's an opportunity for improvement. So I totally get motivated by being able to find the thing that needs to be fixed, fix the thing, and, and then move on. And so early on I identified that, you know, prop, not property management, but flipping houses was good. You make a lot of money at it, but what if you could do the same thing in businesses? I actually attended a conference 15 years ago, no, 10 years ago, and it was about how to flip businesses. And I said, well, I'm not quite ready for that. Maybe I was, or maybe I wasn't. But I wanted to know business inside and out before I started doing that. So that's why I became a, one of the reasons I became a coach is so I would force myself to learn business and get paid to do it so that when I do start doing mergers and acquisitions and buying my own companies as well, I'm gonna know what the heck I'm doing.

Angie Colee (04:28):

Oh, that's fascinating because that was one of the things that I was writing down as I was listening. It's like, I imagine that there are some people that are listening that are interested in that, and they're going, but don't you need an MBA for that? Did you get an MBA or was that all on the

Patrick Rogers (04:41):

Doctor? No, absolutely not. Now I see, see all these things behind me. These books read every single one, not twice, but, uh, a lot of them. And I've taken so many courses and have so many mentors, uh, it's just, there's a real power in, you know, finding someone who has done what you wanna do and, and snuggling up really close to them. ,

Angie Colee (05:01):

I kind of love that visual. And the one, the image that popped up into my head was me grabbing one of my mentors and snuggling him and being like, just tell me your secrets,

Patrick Rogers (05:11):

Osmosis. Just give me what you got. Come on, bring it on.

Angie Colee (05:14):

. I'm so glad that you mentioned that. And I had no idea that the conversation was gonna go there. Uh, but like, there are so many of us, I feel that hold ourselves back from making any kind of steps or changes because we feel like I don't have the education, or I need to commit to this multi-year MBA and learn a whole bunch of stuff that may or may not help me on this journey. And so I love that you came at it from the perspective of, I can get paid to learn this, I'm just gonna go dig into businesses while I get paid to learn more about how to run a business. Exactly. And the fact that you had the awareness to make that a conscious decision, I had something similar happen very early on in my freelancing journey. So like, we're, we're now a world away from what you do, but, uh, this was more creative service business. I didn't really know anything about business, and I was very new to the world of copywriting and marketing. And so I had like a twofold problem. I've gotta solve both of these things. And that was my decision too. I'm gonna go in-house and get paid and get mentored and being better at copywriting.

Patrick Rogers (06:12):

Totally love it.

Angie Colee (06:14):

Stack up some wins and get some results and learn what I don't know, i, I need to know. Yeah. And then go out and learn the business skills. And I feel like there are a lot of, especially in the creative industry, might not be as much of a, an issue in the field where you work, but like people think in creatives that I'm not good at business. Uh, I don't know what I'm doing. And newsflash, a lot of us don't.

Patrick Rogers (06:40):

Yeah, no, it's just, it takes, it takes time. And, and, and again, it, it takes somebody who's the best, best business people are willing to learn. They're coachable. Mm-Hmm. , they're humble and they understand and know that somebody else before them has done it better. And just, just learn, just be willing to be coachable. Yes. Yeah.

Angie Colee (06:57):

We're never the best at what we do, and we're never the worst either. And everybody is just, I think as long as you come into it with that intention of trying to make something Mm-Hmm. out of what you're doing and trying to help people. I love it. I love it. Yeah. Yeah.

Patrick Rogers (07:09):

Totally.

Angie Colee (07:10):

So tell me a little bit more about the consultancy, because I know that that's fairly new. Am I correct on that one?

Patrick Rogers (07:16):

Yeah. So the mergers and acquisitions consultancy and, you know, in the last six months, uh, I mean I've done acquisitions myself. I've purchased companies and, and that's one of the things that really hit me is that, you know, I was coaching these clients for the last 10 years and helping them get growth. They're getting, you know, maybe 10 to 15% organic growth, which is decent, right? You know, if you're a $5 million company, you're getting 15, 20% growth. It's not that bad. That's big

Patrick Rogers (07:42):

, but, but 200% growth through acquisitions. Well, now we're talking, right? Yes. And that's what we're doing is we're helping, uh, each, every business pretty much double their size every year. So if you're a $5 million, uh, company this year, uh, next year you'll be a $10 million company. And then the year after that, you'll be a $20 million company, and the year after that you'll be 40. And so this is very possible. And, and, you know, the whole concept of this is, it really hit me. I went to one of those men's retreats, actually. It's still, you know, an ongoing thing. But you know, you, you, there comes a time when you're like, what am I really here for? And, and I found out and figured out that what I stand for is freedom. Everything in my life has been all about the pursuit of freedom. And I wanna spread freedom throughout the world because when entrepreneurs win truly win, I'm not talking $1.7 million business growing 10%.

Patrick Rogers (08:33):

'cause that person is stuck in the business. They're not able to really impact the world. I'm talking true freedom. Mm-Hmm. , uh, they, they, that is the bedrock of the world. Not only do they create generational wealth for their families, but when enter entrepreneurs get freedom, they do great things, they give back. Mm-Hmm. , they're philanthropy. And so my clients are able, uh, uh, are able to more than 20 to 25 x their business value in five years or less with this strategy. So a $44 million company can grow to $60 million company or more in five years. And it's all possible with the right strategy.

Angie Colee (09:03):

Oh, that's awesome.

Patrick Rogers (09:04):

It's kinda like being in the, it's kinda like being in the fast lane, right? The HOV fast lane. Oh yeah. You stay in the slow lane and get there 20, 30 years from now, but why not get there in a couple years? Right?

Angie Colee (09:12):

Mm-Hmm. , I'm keeping you in my Rolodex. 'cause that's always been one there go of my long-term, long-term goals on the vision board was to own companies that other people run. I don't wanna do it forever. I don't.

Patrick Rogers (09:22):

Perfect. Perfect. Absolutely .

Angie Colee (09:25):

And I like that idea of being part of the people who create, like even copywriting has always been fascinating to me because that's more sales oriented writing. But to create a product or a sale or a conversation out of thin air, just, it takes something special. And not everybody is willing to do that or to even try to do that. Yeah. So I love that. And creating value the way that you do. Incredible. Incredible.

Patrick Rogers (09:50):

No brainer. So

Angie Colee (09:52):

Tell me a little bit more about, 'cause I know that we talked a little bit before the show about your journey and that it wasn't always smooth sailing. So I know that there was a time back in the pandemic when we all struggled that something happened to your business that almost threw things off track. Do you wanna tell us a little bit more about that?

Patrick Rogers (10:09):

Well, Angie, I've had lots of times in my, in my career where things have threw me off track. But, but the one you're referring to was the pandemic. As, as many people experienced, I had just broken into, uh, kind of a new segment of consulting. So before I was coaching like $500,000 businesses and below Mm-Hmm. . And I attended this. I, you know, I, I then studied like how to really help bigger companies really. And their problem is culture and people and leadership and all that kind of stuff. So I broke into that and within three months I went from, you know, where I was before, I think it was like 3000 a month to over $19,000 a month and three months. And this was right as the pandemic was just kind of boiling up over in China, you know, hadn't really hit over here yet. Mm-Hmm. . And then it hit here and within a month and a half, I lost 75% of that income because these were, these were companies that I, the ones I was attracting, there were a lot of service companies. There were companies that were getting shut down. They, they were their, they were just, their future was very unknown. And so pretty much got turned off. And that was nine clients I picked up in three months.

Angie Colee (11:16):

Wow. And

Patrick Rogers (11:17):

So, yeah, so I mean, I, I, I finally found something. I was like, yes, I am just Kick Assing, excuse me, , and going

Angie Colee (11:26):

After No, you can swear on the show. It's called For Machine.

Patrick Rogers (11:28):

Alright, cool. I mean, that's the name of it. Right? So , so I was Kick Assing in three months. I had picked I from, from 3,019,000. What, how, who does that? Like Right. Nobody does it. I Yes.

Angie Colee (11:37):

Celebrate then it,

Patrick Rogers (11:39):

Yeah. And then I was back down to like 7,000 or something, 7,500, which is not, I mean, okay, I'm, I'm paying my bills, life is good. But I was on, you know, I was on the trajectory Mm-Hmm. . And so what I did though is, is I, I took a pause and I, and I pivoted. And so what I did is I took everything that I had learned and I've been practicing and I turned it into a video collection, a video of how to take, uh, so I, you know, I turned it into 60 videos over the next four months of how to transform anybody's business from wherever you're at to amazing. And, and it goes into sales and marketing and unique value proposition, financial strategy, people, leadership. Right. The whole whole thing. Love it. And so then I turned that into a course that I was then able to sell because it was a lot cheaper than coaching. And it was a lot, just a lot easier. And so I was able to pivot and within a few months I was right back up where I was before. And, and it's less work in a course. Right? You just, here, here's a course, . Yeah.

Angie Colee (12:39):

Self-directed. You get to, yeah. You get to take yourself through this at your own pace, fit it into your own life. And if you get stuck and you decide you need additional help, well who better to help you than me? Like, let's talk about what that looks like. There you go. Yeah. I do love that. And I feel like a lot of people, especially folks who come at business from, from a freelancer, you know, I, I, I almost see these as elevations even though that's not really accurate. 'cause I don't think one is above another. But if I'm thinking in terms of like graduated steps, there's employee, there's freelancer, there's business owner, there's entrepreneur, and like, these are kind of the stages that we go through in growth to get to the kinds of companies that you're working with. And I think that that was that evolution between being the consultant, freelancer service provider to getting you to business owner to get you. So I just think that that's interesting. I don't know if I've interviewed anybody else that had like that clear pivot point where it was like, all right, cool. Moving out of trading time for dollars into Yeah, we're starting to create our product line. Love it. Yeah,

Patrick Rogers (13:41):

Totally.

Angie Colee (13:43):

Um, and how to, like, how did you even come up with what to do? Was it all the questions that your clients had asked you over the years? Like what was the inspiration behind that

Patrick Rogers (13:51):

As far as what to do in the course?

Angie Colee (13:53):

Yeah, just coming up with the 60 videos and doing that in four months, that's just astonishing to me. .

Patrick Rogers (13:58):

Um, I actually had kind of a format from one of my mentors of how to transform a business. So it was, it was, and so basically I just, you know, took his stuff and he's like, yeah, take it. Make your videos, you're good. Um, and you know, I just, and, and over time I kind of created my own, uh, format as well and molded it into my own, uh, since then, especially for larger companies, but, Mm-Hmm. . But really it's just, you know, any company, wherever from wherever they're at to get to where they wanna be, it, it's, it's all a formula. Mm-Hmm. , it's, it's all a formula. It's not this like magical thing. It, this fufu thing. It's a very logical step. You start here, you do X you do, you know, you do step 1, 2, 3, X, y, z and, and you get there.

Patrick Rogers (14:41):

And if you, and if you skip steps, well, you could be skipping over something that could have been a very important foundation. Hey, I'll give you an example. Um, a unique value proposition. Any company that's out there, if they want to be able to have the proper margins Mm-Hmm. to be able to scale a company, they have to be different than everybody else. Or else why would somebody pay them more than anybody else? And they just get commoditized. Mm-Hmm. . So they have to have what's called a unique value proposition that truly differentiate, differentiates themselves in the marketplace so they can charge more and have enough money so when the money comes in, they can afford things like automation and people to be able to scale the company and remove themselves from the operations. Otherwise, they just, you know, they, I could, the commoditized companies, the people that don't have unique value propositions, they're the same price as their competitors and they're only gonna get to a certain size in their business and they're not gonna go any further. They're gonna be stressed out day to day, they're trying to grow, or if they do grow, they just come right back down because they're the, you know, the single operator.

Angie Colee (15:41):

Oh yeah. And that makes a whole lot of sense to me. I feel like I've coached a lot of people that had the same kind of challenge. And especially when it came to money, they're worrying about, well, where should I set my price? And I ask them, well, what do you want to make? And that just starts us down a whole spiral of like, self-worth. And I always ask them like, if you don't know where you're going, how are we going to get you there?

Patrick Rogers (16:02):

It's like the chef iron cat . Yeah.

Angie Colee (16:05):

I, I don't care if your goal is $500 a month or $5 million a month, but you've gotta know where you're going. I don't have any judgements.

Patrick Rogers (16:13):

I have to know where you're going.

Angie Colee (16:14):

So, and it was interesting to me that you brought up the unique value proposition. 'cause that's another place where I feel like people get really entangled. They go, I don't have a patent, I don't have this unique mechanism. That's another piece of that. I don't know what about me stands out. And has it been your experience with people that you work wi with that sometimes it's the company leader, it's the company personality, it's their approach to doing things in their unique perspective. Is enough of a unique value proposition or is it something else?

Patrick Rogers (16:44):

Uh, could be. Typically, it's not so much that it has to be something that's tangible to the client, something that makes a difference. And typically it's, it's around, uh, quality of product, speed of delivery and or experience. It's typically one of these three things. And, uh, you know, I'll give you, like one of my, one of my clients, uh, she's a, uh, a mergers and an acquisitions, um, administration company. So she handles all the documentation, all the administration, everything else that's going on for large billion dollar mergers and acquisitions. Mm-Hmm. . And prior to work with me, she didn't really have any unique value propositions. She had them, but she, she wasn't pulling them out of what she was doing and then putting it into the marketing and sales. Mm-Hmm. to allow her to differentiate herself. We've done that now. And like for one of her things is she has this dashboard that she created this phenomenal dashboard and it outlined the entire m and a process, and it's a real time thing. And all of our clients can see it, see exactly what's done, what's not done. None of our competitors have that. It's an amazing thing. In one second you can see exactly what's going on. And so that we turned that into a unique value proposition for her. And it's something that's on her website, it's on her marketing brochures, and it has gotten her a ton of business because we pulled it out and that's just one of 'em. Right? Mm-Hmm. .

Angie Colee (18:01):

Yeah. Ah, that's so fantastic. Uh, and I love that you have kind of a process to help somebody identify that. 'cause it's so easy to get close to what you're doing and lose sight of the forest for the trees.

Patrick Rogers (18:12):

Yeah. I mean, I'm definitely focusing more on mergers and acquisitions now, but for the right client, I'll, I'll, I'll take on a coaching and consulting client, .

Angie Colee (18:20):

Oh, that's awesome. Well, and if you need somebody to refer to, I do coaching and consulting now, so that's that's great. Yeah.

Patrick Rogers (18:25):

There you go. Right on.

Angie Colee (18:27):

Oh, man. And I love that you talk about, there was a whole reason that I brought up the pandemic shift. Yeah. Because that's one of my favorite times to talk about business and not just because of the impact that the pandemic had, which for some people it was horrible. So I, I admit that like there were a lot of businesses shuttered, a lot of lives impacted all of my love. But I also love the fact that there were so many people that went, well, this sucks. Now what?

Patrick Rogers (18:55):

Now what? Okay.

Angie Colee (18:56):

Pivot about pivot, I gotta do. So something, something different. Yeah. That pause and pivot that you said, I wanna put that on a fricking mug or a T-shirt or like ta. Right. I won't, I won't on, won't tattoo it on my forehead, but maybe somewhere else hurts . I love that movie.

Patrick Rogers (19:13):

Yeah.

Angie Colee (19:14):

I'm not gonna tattoo it here. Uh, and I like triple checked the spelling on all of the tattoos. So, um, just how many people struggled and went under because they just got stuck looking at that door that closed. I can't serve people in person. And that's all that I know. So I guess this is the end for me. Yeah. And I just want more people out there. If, if your story can inspire anybody to just pause and pivot, what else can I do now? What this door closed? Is there a window? Is there a ladder I can scale? What else can I do to get out of this box that I'm in?

Patrick Rogers (19:52):

You know, it's interesting you say that because, you know, I kind of look of, uh, as acquisitions almost as a pivot and, and we're going into, um, there's a lot of very large financial, you know, kind of companies that are predicting companies, uh, that are looking at what's to come. And a lot of 'em are saying 2024 is gonna be a recessionary year. Mm-Hmm. . And, um, you know, and so there, so there could be a lot of business owners out there that are, you know, in the slow lane. They're, they don't have that growth or organically coming in. And so it's a great point to be able to pivot, uh, into potentially looking at acquisitions. And especially if you have cash, cash is king going into a recession. Because what happens in a recession, just like you said, Angie, is most people hunker down most people. Mm-Hmm. , I'm, I'm hunkering down. I'm not spending any money in marketing. I'm not spending anything. And, and because of business, the smart people have positioned themselves actually right now. So Right, right now is a fantastic time to start positioning yourself, get your, get your word out there, get your name out there, who you are, and then when it comes time to buy and gobble up all these companies, you're already in position. Right? Mm-Hmm. ,

Angie Colee (21:04):

That's what one of my friends said. Uh, you know, recessions and down times are when millionaires are made because yeah, they're zigging. When other people are zagging, they're out there taking a risk knowing that the win is in the long term. It's not right now. So maybe I take an initial loss right now, or I'm super stressed and stressed right now, or maybe not. Maybe you had enough cash stockpiled exactly like you said, to make this a net win. But like, take that risk, do what others aren't willing to do and grow. Yeah. Growth is painful sometimes.

Patrick Rogers (21:37):

Well, absolutely. And being in the slow lane in business, it has a lot of pain points. Mm-Hmm. one is it, when you're growing that slowly, you're generally limited on your operating income that you can afford to invest in, like I said, leaders or people or technology. So you're a much higher risk of burnout because you're doing everything and impacting your work life balance. Mm-Hmm. it also impacts your profitability. So with that small growth, you typically have to reinvest your profits into the company continuously to attempt to grow faster. That affects your lifestyle. Mm-Hmm. prevents you from realizing what you want and, and it impacts your growth. Yeah. When you enter the world of acquisitions, you learn about something called multiple arbitrage. And, um, I'd love to take a minute and explain to the audience what multiple arbitrage is. Hell yeah. Let's do, do it.

Patrick Rogers (22:18):

Would that be okay? Okay, cool. So this is how we're gonna make millions out of nothing. This is, you know, before what I was talking about, it's all good and great, but this is the real reason to do besides generational wealth, right? Which we're gonna build. So let's say you're a $4 million annual revenue company with a million dollars in ebitda, right? Which is basically your net cash flow, right? Mm-Hmm. . So with that size of a company, uh, how they, how they determine the value of a company. It's basically your cashflow times some kind of a multiple plus whatever, whatever other assets. So with that size of a company, that multiple would be maybe a four. Okay? So, so in this case, your company value might be $4 million, 1 million in cashflow times four, $4 million. So let's say you acquire two companies. Mm-Hmm. first one's the same size at 4 million.

Patrick Rogers (23:01):

Okay? Now you have two companies under one umbrella, $8 million in revenue, and $2 million in cash flow. Mm-Hmm. follow me so far? Yeah. So you then acquire another company for 8 million, right? So because you went from four to four year eight, so that you do it again next year for 8 million, you're now at $16 million in revenue and 4 million in cash flow. So here's, here's multiple arbitrage. This is what we're talking about. Just because you're a larger company, the multiple that you're going to be bought for goes up. So your multiple increases from, in this case it would be from about a four to a six. So you only paid $12 million for the two additional companies, but because your multiple are six now the value of that company under one roof is now $24 million.

Angie Colee (23:48):

Ooh.

Patrick Rogers (23:49):

Your original company had a value of 4 million. So that is an automatic $8 million in equity generation just for putting a few companies under one umbrella. Mm-Hmm. and this rollup strategy, it's, it's, it's ingenious. Really, it's multiple arbitrage. And this is why you simply cannot stay in the slow lane. You have to pivot, get into acquisitions, .

Angie Colee (24:08):

Oh, I love that. You know, and, and just making, this is what I love about value and why I hate when people kind of get stuck on dollars and money because I keep going. Well, but dollars don't exist. Like, not really, not anymore. I can't go out into the backyard and pick a dollar off a tree. Yeah. But I can actually create one outta thin air in the ones and zeros that are floating above our head. I can create value. Exactly. Like I know that that's, that's not entirely related to what you're talking about, but I still just find that fascinating about how new and interesting combinations, new and interesting portfolios can just exponentially increase value. And that's the key guys. That's the key. Stop trading time. That is the key for dollars.

Patrick Rogers (24:49):

Absolutely. Stop it. Absolutely.

Angie Colee (24:52):

And no judgment if that's where you're starting, by the way, if you're a freelancer or if you're just dipping your toes into business and you're hearing us talk about a $4 million company and going,

Patrick Rogers (25:01):

Yeah,

Angie Colee (25:01):

Well, I don't know if I'm on the right show. This is, I'm glad to be able to bring people from just starting out to your level of expertise to share the full business journey and all of the perspective and all of the bumps and the pivots along the way so that people can see what's possible and where they're going. And that's really important to me, said it.

Patrick Rogers (25:19):

Mm-Hmm. , you said it's a journey. It's a journey. You have to start somewhere.

Angie Colee (25:22):

Yeah. And some people are going to enter this and decide it's not for them and go back to a job. Totally cool. Some people are gonna enter this and stay freelancers. Some people are gonna stop at business owner, some people are gonna go all the way to entrepreneur. Some people are gunning for Elon Musk and they are not going to stop until they pull

Patrick Rogers (25:38):

Him down there. There you go.

Angie Colee (25:40):

It do it. Love all of you. All of your goals are valid. Let's do this. And if you get to where you're gunning for Elon Musk, I know who you need to call. You need to call Patrick.

Patrick Rogers (25:49):

There it is. Boom. . We'll,

Angie Colee (25:51):

Well this has been a fascinating conversation. Please tell us more where we can learn about your business and check you out online.

Patrick Rogers (25:58):

Yeah, absolutely. So, um, first of all on LinkedIn, uh, my handle is Patrick V. Rogers and that's V as in Vincent, R-O-G-E-R-S. And my website is patrick v rogers.com. P-A-T-R-I-C-K-V as in Vincent Rogers, R-O-G-E-R s.com. And that's the best way to get ahold of me, one of those

Angie Colee (26:18):

Two. Awesome. We're gonna make sure that they have clickable links in the show notes so you don't have to worry about a thing. We got you. Yeah. Awesome. And thank you so much for being on the show. This has been an enlightening conversation. I really hope that everybody got as much out of this as I did.

Patrick Rogers (26:31):

Very cool. Thanks for having me, Angie.

Speaker 2 (26:36):

That's all for now. If you wanna keep that Kick Ass energy high, please take a minute to share this episode with someone that might need a high octane dose. If you can do it, don't forget to rate, review, and subscribe to the Permission to Kick Ass podcast on Apple Podcasts, Spotify, and wherever you stream your podcast. I'm your host, Angie Colee, and I'm here rooting for you. Thanks for listening and let's go Kick Ass some.