Business 101 | Building Revenue
When it comes down to any business, revenue is what matters. Without it, what’s the point of starting up at all? Of course, building a business is hard enough, but building revenue? That takes some serious consideration and practice no matter the industry. In the business of hemp processing, building revenue is equally critical to success. But, in such a competitive, growing industry, how do you ensure building revenue in your business?
At extraktLAB, Dr. Jon and Randall Thompson know a thing or two about building revenue in the hemp processing industry. In fact, they each have five critical steps to ensure a profitable business is possible.
Randall’s top five steps are to:
- Clearly identify your ideal client/customer,
- Being the authority,
- Inviting your client behind the scene,
- Expanding the definition of a “customer,” and
- Work really, REALLY hard.
To hear Dr. Jon’s top 5, you’ll need to listen to the episode. “What does all this mean?” you may ask. You’re about to find out.
In this episode of extrakTALKS, Dr. Jon and Randall Thompson discuss the ins and outs of building revenue in your CBD and hemp processing business. Listen in to hear Dr. Jon’s and Randall’s top 5 secrets to building a profitable business and get the answers you need to create a successful hemp and cannabis extraction company from the start to finish.
LISTEN to this episode:
06:00 Next weeks topic
07:51 Business Revenue
09:13 Who is Randall Thompson?
13:05 Randall’s Top 5
13:12 #1 Clearly Identify your ideal client/customer
13:25 #2 Be their authority
13:47 #3 Invite them behind the scenes
14:06 #4 Expand your definition of who your customer is.
14:33 #5 Work really, really hard!
15:24 Jon’s Top 5
20:26 Who’s List is better?
20:30 Who’s your customer?
22:05 Core Capabilities
23:11 Choose your focus
24:13 Authority and value
25:34 Become the expert
28:11 How do i find more customers?
33:22 Use Influencers
35:06 Find experts
36:09 SEO & Ad words
36:59 Your next hire
37:40 Passive employees and corporate America
38:45 Should I hire mercenaries?
39:23 Who should I hire?
40:24 Build Relationships and give value
42:03 Solve your customers problems
44:33 What do your customers care about?
45:25 How big is the industry?
47:00 Do we direct compete?
50:11 Thoughts on split contracts?
51:35 Blood, Sweat, and Tears
56:00 Closing Comments
Welcome to extrakTALKS with Dr. Jon podcast. Dr. Jon is CEO and president of extraktLAB and United Science, an industry leader in hemp, cannabis and the extraction industry. Listen closely as Dr. Jon talks about his experiences, CBD extraction methodology, and the ins and outs of owning your own business. Dr. Jon teaches you healthy business practices, how to increase your profits and steps to take your CBD company to a whole new level. Let’s dive in.
Randall Thompson 00:34
Hey, guys, how are you? Thank you for joining us today we’re going to be talking about business revenue. And man, we have had a giant opportunity with questions coming in rolling in. I’m really glad you’re here. Thank you for joining us.
Dr. Jon 00:48
Yeah, thank you for all the questions.
Randall Thompson 00:50
Dr. Jon, Randall is where we are, and I appreciate you being here. The last few weeks we’ve been having a blast
Dr. Jon 00:56
Randall Thompson 00:57
So, thank you for watching. for inviting your friends, I mean, this is crazy how it’s been.
Dr. Jon 01:04
Yeah, we’ve had every everyone we put out here we have over 100 people subscribing, and that’s huge. So, it is really awesome.
Randall Thompson 01:12
Yeah, I love it. And so, thank you because you guys are making this show happen.
Dr. Jon 01:17
Randall Thompson 01:17
And we enjoy this. A lot of you have asked, you know, how do I increase my business revenue? What do we do? So that’s what we’re going to be talking about today. But if you’re new here, thank you for being here for the first time. We’ve got several things. I’ve got lots of papers, so sorry, I’m rustling. Hey, guys, thanks for the shout outs. This is awesome. Appreciate you being here. A couple of things. If you’re new here and your screen freezes up. Maybe there’s an internet hiccup or something on your end. All you have to do is push the reconnect button at the top. It doesn’t disconnect you completely and bounce you out. You don’t have to re-engage. Just hit it and it will refresh your screen right on air. That’s why we like this platform to use, because you don’t have to bounce all the way out and then reconnect it. So that’s a little bit of housekeeping. Last week’s giveaway winner from Instagram. Kaz Hawrylak. All right. Good job Kaz. That’s awesome. What do we send him anyway? Did we send them a hat, did we send him a T shirt? But we all have T shirts. We guess we have swag. So…
Dr. Jon 02:22
We have closets full of swag they just piled up there.
Randall Thompson 02:26
Yes, we got the logo stuff. It’s cool stuff anyway. If you go on our social media, Facebook @extraktlab, Instagram is @extrakt_lab, LinkedIn @extraktlab, YouTube @extraktlab, subscribe to us. That would be great. Appreciate it. There’s a lot of new resources. Oh my gosh, you’re on fire.
Dr. Jon 02:50
Randall Thompson 02:51
You’re on fire!
Dr. Jon 02:52
I’ve been writing and doing videos every day and it’s just a lot of fun.
Randall Thompson 02:56
He sits here and you know with this and he just gives information like valuable mini course stuff education.
Dr. Jon 03:05
Randall Thompson 03:05
Dr. Jon 03:06
Yeah. And I got new prop my tommy gun there in the back. So, I’m adding more props to the set.
Randall Thompson 03:13
We were in a meeting when it arrived. He was very, very excited just so you know. He, he played with that for a while. It’s fun. We have a lot of fun here. And I hope you guys are having fun. We just enjoy you being here. It’s a fun and safe place. Ask questions, introduce yourself would love to know where you are, who you are, whether you’re a farmer, producer an investor. Where are you? This is No Holds Barred Q&A. So, there is no question too small or too large for us. We’ve got the full gamut, you know, I can answer the simple stuff. He can answer the advanced stuff.
Dr. Jon 03:48
Right. I think one of those things. We need to probably go back and circle back to some of the questions we missed. Because, you know, some of the earlier episodes that we did, we had, we had so many questions we didn’t even know have time to answer. Well, that is true. That’s one thing that we could probably do is go back. And of course, we’re also taking some of those and putting them onto our website in the form of FAQs. Some of them have become beginnings of blog articles. So, we’re just kind of using that your questions as a means to get out the right information and the right content for you guys, we can actually go back and look at some of those old old questions.
Randall Thompson 04:21
And I think that’s a great, great point. And if there are questions that we haven’t answered for you that you asked in the past, I apologize. Just keep send it in again, we’ll see it. And again, I apologize if we hadn’t answered it on air previously. So, we’ll get there. Simple or tough questions are good. Join the chat. So, click on the chat button, and let me know and Jason is good to have you here from Oregon hemp farmer from Oregon. Good for you. All right. That’s nice. Let’s Jonathan, John, we got your questions here. Yeah. Thanks for sending those in early. Appreciate that. Yeah, getting them in early helps us, you know, kind of frame it and get you queued up for these questions. Invite your friends. Bring them in. Bring, you know, invite your enemies! That that’s even more fun for a show!
Dr. Jon 04:21
Randall Thompson 04:25
We had a couple weeks ago, the ethanol versus CO2 debate and that was that was we set records we we blew out. We got a lot of haters, for sure. Yes. Good. I think I think we blew up the internet on that one.
Dr. Jon 05:17
Yeah, we did. Well, one of the things is we just maxed out on what we could actually have on our channels so that we did expand that.
Randall Thompson 05:25
So yeah, we did. We shouldn’t have that issue any longer. We’ve got a lot of other resources online. And YouTube has some of these that are there like our live tour. Oh my gosh, the live tour that you conducted here. We have a five ton a day facility here that we do for processing, really cool stuff. And next week, by the way, we’ll talk about this, but next week, we’re gonna be talking about testing, and where you test and why you test and how you test.
Dr. Jon 05:51
Oh, that’s going to be a lot of fun.
Randall Thompson 05:52
It’s going to be awesome. I’m not sure testing and fun is that can you say that?
Dr. Jon 05:56
Oh, wait, wait, wait a second. I am a tester. That’s what I do.
Randall Thompson 05:59
He really is!
Dr. Jon 06:02
We’re going to be talking about analytical chemistry, and we’re gonna make it really accessible for you guys. So, we’re gonna talk about how that will affect your brand, your CBD brand.
Randall Thompson 06:09
It is really cool. Just so you know, don’t let your eyes glaze over when you say we’re going to talk about testing. It is we’re going to talk about testing and where you need to do it, where you come in. I mean, the places where you test and how to test and why it’s cool. Yeah, a couple of tweaks that we were making to that and then it’ll be more readily available to you. We do have some of them out there. But that calculator library will be available. Probably Tomorrow is my guess.
Dr. Jon 06:36
It may be limited. You know like maybe three or four?
Randall Thompson 06:40
Yeah, we got about a dozen of them, but we’re gonna you know, roll them out properly, because we want to make sure that you’ve got them. I mean, they’re used for our own edification and there’s always some variables you can’t plug in. So that’s why there’s a little bit of a delay, but it’s there. We also have the advanced extraction guide. So alright, enough of all of that crap. Thank you today. We’re talking about business revenue. Okay. So, before we get there, we want to start a poll. What is your biggest revenue concern? Okay, so is it to find more customers? Is it to make more money from your current customers? or upgrade to better customers? Okay, because sometimes we’ve got the wrong customers.
Dr. Jon 07:18
Sometimes we do.
Randall Thompson 07:19
Sometimes we do. But most of the stuff that we love our customers, right, so answer in the chat in the polls rather. So, we’ve got the chat and you’ve got the polls. The poll is there, please let me know. So far find more customers is getting.
Dr. Jon 07:35
Yeah, it’s getting the majority. Okay, so that’s what we’re going to talk about. Exactly.
Randall Thompson 07:41
Go figure. Okay. Now, here’s what we did. So we sat down and as we were prepping for the show, we went through this and we said, Alright, let’s each make a list of what are the top five ways to grow revenue for your CBD business? So, I have my list, and Dr. Jon has his list. So, we’re going to go through our lists. Do you want to do this? interstitially? You want to do one? And then I do one? Or do you want to do your list and me do my list?
Dr. Jon 08:07
You do your list first. And then I’ll do my list, Yeah?
Randall Thompson 08:10
He thinks his list is better, and –
Dr. Jon 08:12
My list is definitely better! Hey, before you do that, let me just say this guy, he’s got a lot of business, good business background. He has been building businesses involved in M&A activity than doing marketing and sales his entire life. And there’s something about a Congressional Medal of Honor Medal of Honor for that. It’s pretty cool. And voted number one business guy in Illinois and other states. So, I mean, he has a lot of very good perspective. Yeah, I’ve just been a bootstrapper startup guy. So that that’s, that’s my main knowledge base. I’ve tried my hand in corporate America and I just didn’t fit their kind of broke the mold. It didn’t work for me.
Randall Thompson 08:53
Well, neither of us are corporate guys. My heart is for my heart is for small business guys and the awards that I got words for Small Business and you know, roll ups and dignity and growing and making sure everybody’s making money. That’s the key. And there are a lot of resources out there that need to be gotten. So, I appreciate your kind words. That’s very nice and rare. Thank you for that. And that’s good. And we do we have a heart. We’re more Main Street than Wall Street guys. We love the investors who come in but absolutely, we’re Mainstreet. We’re small business guys. We love the bootstrapper. We love pulling it together for you. So yeah,
Dr. Jon 09:33
And we’ve built extraktLAB as a bootstrap company. We didn’t receive a single dollar from anyone. It’s quite successful. The other companies we started are also you know, they’re growing. They’re, you know, but they’re all bootstrap. We didn’t get money from anybody. So, it’s really hard to do that.
Randall Thompson 09:50
It is hard. And I remember so many years ago, man. I remember when you want to do this when you want to start this, and you and I sat down in a Perkins restaurant. near Lake Geneva, Wisconsin.
Dr. Jon 10:01
I remember that
Randall Thompson 10:02
and he said, how do I do this? How would I make this happen? And we got together, and we got together a couple of times. I said, here’s what you do. Here’s what you don’t do because I had a lot of arrows in my back from getting things started and going and now here we are.
Dr. Jon 10:16
Randall Thompson 10:16
This is awesome!
Dr. Jon 10:18
You know, I was I was writing a little bit about this. We’ll get to this list in a second. But I kind of came up with my mind an analogy of starting a business. It’s a lot like juggling, okay. Oh, yeah. One of the balls. I guess it would be a snake. Okay. Like slithering snake. The other one would be venomous, of course. And the other one would be a ball that you have to keep up and then a razor-sharp dagger.
Randall Thompson 10:42
Dr. Jon 10:42
And you’re juggling all these things trying to keep, you know the snake from biting you?
Randall Thompson 10:46
Dr. Jon 10:48
You got to keep the dagger from slicing. And then you have to keep the balls up in the air which basically making sure that your you know your consumers or your customers and then also your employees are happy. So yeah,
Randall Thompson 10:57
no, I think that that’s good. And then what he left out is the fact that you’re doing that while blindfolded.
Dr. Jon 11:04
Yes, I did leave that out. That’s a good. That’s a good addition.
Randall Thompson 11:10
I like that. It is tough. And you know, we love the fact that you guys are growing, running and you have these questions about growing revenue. Okay, so I’m going to get to my list.
Dr. Jon 11:19
Randall Thompson 11:20
I like the analogy.
Dr. Jon 11:21
Randall Thompson 11:21
And by the way, James, James is back here. But James, he does some really cool video stuff. That would be a cool video. I’m telling you juggling snake, bladed dagger.
Dr. Jon 11:32
Oh, we should have our gnome do that juggling.
Randall Thompson 11:39
I like that. Actually, be fun. Okay, sorry. Okay, so here are my top fives. Okay, in how to generate more profitable revenue. Number one clearly identify your ideal client, okay or customer. Who are you selling to and who fits what you want to deliver the best? So that’s one. Number two be their authority. Okay? So, you want to be the person that they come to when they have questions about things. So clearly identify that ideal customer and then be their authority. Make sure that they know that they’re getting good truthful information from you and there to help them not just to extract dollars from them. Three, invite them and their friends behind the scenes. What that means is get them in, get them to know you know who you are, how you run your business, get them all the way through, I think that is powerful, because they like to see behind the scenes they want to get to know you. And that behind the scenes builds additional trust. Expand your definition of who your ideal customer is. That’s number four. By the way, that means you can expand that once you’re doing that, well. You’re you’ve identified your ideal customer, you become their authority and you invite them and their friends behind the scenes. You want to expand that definition vertically and horizontally. So, start expanding that effort. And then number five, work really, really hard. I had a professor in college who said, hard work. That’s what it’s all about. Hard work. That was Professor AC Scott. And it is – it’s a lot of hard work. And that’s why we’re here with you to lock arms run together and make it happen together, because we want you to run your business for profitable revenue, because that’s how we all get better.
Dr. Jon 13:34
Randall Thompson 13:35
That’s my list of five.
Dr. Jon 13:37
Wow, that was a good list. I liked that list.
Randall Thompson 13:41
Dr. Jon 13:42
It’s very professorial.
Randall Thompson 13:45
Oh, was it?
Dr. Jon 13:45
Yeah. Yeah. It was like I think was taking notes here. So, make sure you understand your customers, right?
Randall Thompson 13:52
Yeah! that’s exactly right.
Dr. Jon 13:54
So, we were writing up these lists simultaneously with one another.
Randall Thompson 13:57
without, without talking Without talking.
Dr. Jon 13:59
So, I had a little bit of a different list and I think it’s better. But whatever, it’s Randy. So, first of all, you need to find a hunter, you need to find a hunter gatherer type of salesperson to help you go out and manage your business. If you’re a salesperson, as an owner of the company, then you got to do that and then leave the operations to other people. Fundamentally, you really do need to find a hunter gatherer what I call foaming at the mouth, you know, sales guy who’s going to go out there and every day is going to be pounding the pavement. You the small business owner, you have like I said, you’re juggling a lot of different things. You’re juggling legal issues; you’re juggling operations issues. You have employee issues and all that stuff. You really don’t have time. Actually, if you’re going to run your business, you don’t have time to do sales too. You know, a lot of times it’s a chicken and the egg. Well, I don’t have any revenue. So, I gotta do sales. I don’t have any sales. So, I gotta, you know, I don’t have any revenue. So that’s what bootstrapping is all about another words, lifting yourself up, levitating yourself by your own bootstraps. How do you do that? Okay, that’s one thing. So, you need to have a hunter. And the second thing is you got to offer something of value. Education is key. What that means is that when you’re approaching someone, are you really there just to sell them your widget? Are you really there just to sell them your ware, because if that’s the case, then you’d really, there’s thousands of people who do that? You might as well just go to Amazon or something to do that. So, if you want to have a relationship, and you want to have kind of where it’s a quid pro quo, like, “Hey, I’m learning from you. And guess what you’re learning from me.” Because the questions that you guys ask us, we’re learning from those, we gain a lot of value actually, from understanding what it is that your questions are. So, we’re giving something of value, and you gotta understand what your value and a lot of it is has to do with your story. A lot of it has to do with you. On the other hand, you don’t want to spend all your time dealing with one particular customer you got to limit the time that you spend but because you have other people obviously that you need to work with, but again, offer something of value in education is key. The third one is influencer outreach is paramount. You have to go out and look for those people who are going to get you free PR, essentially, you’re not going to be able to pay at the startup, you know, 5-10-20,000 bucks a crack for, you know, 500 leads, it’s going to be too expensive. You need to go out and self-promote. So that’s something about reaching out to those people, whether they be reporters or local television or local, local stuff, local is a really great way to get some buzz going. Okay, I think that you know, always trying to achieve free PR is a big, big deal. And it’s also a big part of what I consider to be success in small business and getting more leads and getting more customers. Number four start an Instagram war. You know, it’s something that’s easy to do. All you have to do is have an opinion, all the haters are gonna come out and they’re gonna be telling you, hey, this guy’s not good. Actually. You don’t. You can just start the war just by having an opinion. Put it out there. Be humble about it. Be smiling about it. It’s what you have to offer and that’s a part of your education, that’s a part of your outreach, that’s a part of your free PR, you’re offering something of value because it’s something that you have. Start an Instagram war! That’s what you should do. And then Randy and I both had very similar fifth ones. And that was he said, you know, work really hard. I said, give blood early and often. Starting a business. Small Business is about blood, sweat, and tears. It is. Everyone who has built a business up from nothing to something, understands that what they’re giving they they’re giving their life. They’re basically giving their time. They’re thinking about it on the weekends, they’re spending the time, they have employees, the employees, they check out and go home, you’re not. That’s what I call blood, sweat and tears. That’s really the way that you begin to really build your business. It’s not easy, and you got to put the time and that’s all there is to it.
Randall Thompson 17:51
Yeah, I think that that’s very good. And by the way, I’ve got the next poll question coming up. And that is who’s listening is better mine or Jon’s, Randy’s or Jon’s, so just let me know that would be fun I think that there was similarity all the way through also and Okay, so I agree with number five was the easiest to reconcile but your first one on hunter
Dr. Jon 18:16
Randall Thompson 18:17
my first one was clearly identified your ideal customer
Dr. Jon 18:20
Randall Thompson 18:21
and the customer – hunters need to know who they’re going after right and that’s the same thing. that’s how you go. So, I think they’re identical
Dr. Jon 18:30
Yeah, you need to really define your customer. If you can define your customer, who that, what that image is. Like, okay, am I gonna sell to someone? Am I going to sell to a boutique store owner?
Randall Thompson 18:43
Dr. Jon 18:44
Or am I going to sell to someone who’s going to convert my oils into something to sell them?
Randall Thompson 18:50
Dr. Jon 18:51
Or am I going to sell my hemp to a processor or who those people look completely different and they have different needs. They have different requirements.
Randall Thompson 19:02
Absolutely. And Jon asked a question earlier you know which refined products will bring the most value?
Dr. Jon 19:06
Randall Thompson 19:08
To the company was it crude distillate? Is it isolate? What is the best one? And it really depends on who your customer is, where are you going? Right?
Dr. Jon 19:17
Randall Thompson 19:17
That’s really the answer to that is it depends on where you connect.
Dr. Jon 19:21
So, if you’re in the processing business, you want to have a capability so typically a processor or manufacturer talks about core competency or core capability, they build those core capabilities then they can be versatile with the same input materials think that’s a very important aspect of any processor that’s out there that they have those core capabilities to produce a wide variety of different products for customers who might need them so
Randall Thompson 19:47
Yeah, and if you’re a brand with boutique ideas
Dr. Jon 19:51
Right, right, right
Randall Thompson 19:51
and you’re the brand and you’re selling direct to the consumer through your shop or to other dispensaries, right could be you want To know, who are you targeting? Who is that customer? You know, are they boomers who have arthritis issues that are looking for some alleviation from that discomfort?
Dr. Jon 20:10
Randall Thompson 20:10
What is that? You know, who are they? Are you at a high end, a high level? Is it you know, for sleep? Is it for anxiety? These are things that people have talked about out there. Who is that? So, going back to the hunter idea and the ideal customer analogy? Are you hunting rabbits? Are you hunting elk? Are you hunting mammoths?
Dr. Jon 20:33
A startup company has to choose Really?
Randall Thompson 20:35
Dr. Jon 20:36
I mean, unless they have a huge investor behind you and say, Okay, we’re going to shotgun this. I think you really need to choose what exactly you want to focus. Yeah, you got to focus. If you don’t, you’re just diffusing everywhere, right? Yeah,
Randall Thompson 20:49
I’ve seen this so often when you shotgun, it’s just too broad. You’re trying to be all things to all people. And you’re better off starting that Instagram war, picking aside picking a choice, and finding out who the haters are and who the lovers are, who are you most connected with, and that expand who you connect with, and you’re going to be able to sell a lot more.
Dr. Jon 21:11
They like my list better.
Randall Thompson 21:12
Dr. Jon 21:15
Randall Thompson 21:16
Good job! I like your list better.
Dr. Jon 21:18
Randall Thompson 21:18
Your list is good. Your list is more executable.
Dr. Jon 21:21
Randall Thompson 21:22
Mine is about building relationships.
Dr. Jon 21:23
Randall Thompson 21:24
And yours is executable. And I think that that’s – but again, it goes back to number two, you know, focus on, you know, offer value in education to me, I said build authority.
Dr. Jon 21:34
Randall Thompson 21:34
with that group
Dr. Jon 21:35
Randall Thompson 21:35
That’s the same thing.
Dr. Jon 21:36
Exactly. So, yeah, Let’s talk about that for a sec. If you’re a CBD distributor or if you’re a CBD like retailer, right? I mean, the customer is gonna want to come in and they’re gonna want to understand just the basics of what CBD is all about. And you’re able to really discern, this is what people use it for. And this is what, you know, this is what you’re supposed to do there. Here’s some studies you know, some papers and things like that. Provide them the information that they need so they can make a –
Randall Thompson 22:01
Be the expert!
Dr. Jon 22:02
Randall Thompson 22:03
Okay. And that and that goes not only on that side, but also when you’re at the end user level. So, let’s say you’re selling it through a spa, you know, and you’ve got your brand. I mean, that’s a different client. But if that is your end user, then that’s where you want to go. If you’re a processor, you want to make sure that you’re the expert. Are you – are you an expert in CBD CBG or THC? Are you an expert in T-free distillate? Are you an expert in isolate? Are you an expert in custom formulations? Pick one, and just be the go-to person in the industry for that, right? Yes?
Dr. Jon 22:38
Yeah! Yeah, pick one. Pick one. I’d say that is really difficult to do for someone who’s starting up. Because you have to say, okay, we’re not doing all these other things. What if you pick the wrong one?
Randall Thompson 22:49
Dr. Jon 22:50
Look, entrepreneurs have a hard time picking one thing and if there’s one thing about entrepreneurs, they’re gonna start like 10 things
Randall Thompson 22:57
Dr. Jon 22:57
And that that’s actually why a lot on entrepreneurs are not successful
Randall Thompson 23:01
Because they don’t take it to the endgame. They don’t take it all the way through now. It’s okay to fail early and fail often.
Dr. Jon 23:08
Yeah, I think so.
Randall Thompson 23:08
Okay and that’s –
Dr. Jon 23:10
and be flexible with your business plan.
Randall Thompson 23:11
So, it’s okay to say, “alright this this didn’t work let’s go.” Okay, but if we need to move forward or beyond that then let’s let’s do that. Yeah
Dr. Jon 23:21
Yeah, okay. So, in the case of like the CBD market, just pick one. I don’t even think you need to just pick one and focus on it. I like one of our people here makes CBD infused skin and beauty products. Great!
Randall Thompson 23:34
Dr. Jon 23:34
That’s perfect! Okay, so look here I’m not going to do vape pens, I’m not going to do bulk oils. I’m not going to do isolate. I’m not going to do – I am going to be the best at CBD infused skin and beauty products. That’s what I’m going to be the best at. And that that is a good example of of an entrepreneur who now has focused their business plan, focused their customer, focused all of their marketing dollars. And their sales people and they say, “okay, who are we going to go market to?” Well, we’re going to market to people who are interested in infused skin and beauty products. That’s perfect!
Randall Thompson 24:08
It is perfect because that relaxes the skin, you can have anti-wrinkle, you can have, you know, anti-blemish all of that.
Dr. Jon 24:16
Randall Thompson 24:16
And you know, get it to the dry skin. There are so many different things that come from either topical lotions or even transdermal lotion,
Dr. Jon 24:24
Randall Thompson 24:24
That are out there. I mean, you can be that person who is the expert, and people are going to come to you you’re going to have your own white papers, you’re going to comment on white papers, join groups
Dr. Jon 24:34
You become the expert. Right, exactly.
Randall Thompson 24:35
And in this environment. You know, there was another question earlier is how do I find more customers when it’s tough in this climate, right that we’re in right now? And one of the things is right now is the biggest opportunity in the world because everybody’s online.
Dr. Jon 24:50
Randall Thompson 24:51
Everybody is online looking. Right now, just so you know, we sell equipment, right? We’re talking to people about buying equipment online, and we’re not going to see them. And we’re talking about expensive stuff.
Dr. Jon 25:04
Yeah, absolutely. I mean, so yeah. I mean, it’s amazing. So, we were doing online meetings. Yeah, we’re doing one of these zoom meetings. We’re talking on the phone.
Randall Thompson 25:15
You can do Google Hangout, Zoom anything. All of that. Do your own webinars do your own Instagram war? Right. Are you kidding me? That alone is the same thing so you can reach out on social media or email, but it’s there. And they’re not costly.
Dr. Jon 25:33
Randall Thompson 25:34
If you focus and be the expert on that, people come to you.
Dr. Jon 25:38
Yeah, all right. That’s basically it. Also, the consumer or your target customer will also you know, if you do socials, you can also target your socials to that right? Like there’s a Facebook groups You know, there’s, there’s Instagram groups or people who are focused on a particular area.
Randall Thompson 25:58
Facebook groups, LinkedIn. groups, yeah, all these groups that you join them and join the conversation, but don’t go in and start spammy selling, “Hey, this is what I do buy from me.” Go in and participate and educate yourself and educate your client base and say, “Alright, here’s what I’m offering. Here are some of my questions.” Create a dialogue and a conversation with the people that are out there because they want to hear what you have to say, right? You have a unique opinion. People want to hear you. You’ve got a voice; use it and offer something. Keep learning, keep going.
Dr. Jon 26:33
I think I would say that as an owner of a company, it’s really great if you can, you know, tell your story. You can use that as a part of your selling to people want to hear from you. They want to hear how you got started. They really do. They want to hear your story. They want to see what you have, and then use a salesperson or a sales associate or something like that to really do the mechanics of the sale. So, a lot of times there’s a quoting process if you have like a bulk wholesale account or if you’re, you know – use those people to do you know the mechanics of it, the real work of it and its focus your time on telling your story. Focus your time on getting free PR, focus your time on Instagram and things like that, anything that’s going to create buzz in the market
Randall Thompson 27:20
Absolutely and then build relationships with those folks. I mean, that’s the key. So, we have, you know, we have farmers and growers. We’ve got processors at various places in the chain, you know, some people are processing biomass, to crude or all the way to distillate and isolate and even doing custom formulations. We’ve got packagers here, and we’ve got people who are building their brand, and there are also people who are dispensaries and have their shops we’ve got from seed to the store and to the consumer. And we’ve got online folks here that are at asking questions as well. So, in each one of those areas, let’s just break those down if we can. I think the big breakdown for farmers and growers, the key is to build relationships with processors. And right now there’s a lot of hedge fund managers out there, financial guys who are buying to repurpose that biomass for their end product, ultimately, that’s happening, but find the processors that you can trust, that are testing properly that are running that are going to get you the highest value for your yield, but grow good product, you know, grow, know your product, know what you’re building, what your yield is, what your percentage ratios are, what that is in there and own it.
Dr. Jon 28:44
Randall Thompson 28:46
Right. So, the key is to find more customers out there for you is to explore and network with other processors and packagers, because packages are now starting to integrate vertically. So, some of them are buying processors or buying processing equipment. So, they’re doing that. Talk to other growers and farmers around your area. Because we’ve seen other people, you know, do a joint venture, and put together their own processing facility.
Dr. Jon 29:14
Yeah, absolutely. facility. Absolutely. So, in each one of those people have their own spheres of influence.
Randall Thompson 29:19
Dr. Jon 29:20
One other thing that we want to talk about a little bit is influencers.
Randall Thompson 29:23
Dr. Jon 29:24
Okay. And I think that’s a big deal. Because, you know, there are people who have spent a lot of time in one way or another, getting a large audience. And I think that there are these things called micro influencers, people with maybe two 300 followers or 100 followers. You don’t need to have like, like a huge, huge influencer to start out just approach some of those people that might have maybe 500 or something like that and just say, hey, they will want to work with you. Tell them your story. Give them something of value in exchange, you know, say “hey, look I’ll give you some products here. You want to try them out if you like them, can you tweet about them? Or can you give us a shout out?” And that’s how you’re growing your audience now because and, and you can do that on LinkedIn on Twitter on Instagram and Facebook a lot. One way to go viral really fast actually is you know, Facebook. Facebook is huge for that. I know a lot of the CBD companies are kind of hemmed in because they’re not really able to you know, use the CBD you know, aspect of it to really boost the post. But you can personally do that.
Randall Thompson 30:33
You can personally do that to exploit the gap!
Dr. Jon 30:35
Yeah, exploit the gap! you can boost your own post. Yes. And that’s how you know just start with your friends and family and then move on from there.
Randall Thompson 30:43
The other thing is you can find experts I mean, Dr. Jon is prolific in his technical papers, everything that he’s doing, I mean, look at our blog. Oh my gosh, it’s crazy. extraktLAB.com and go to our blog. We have very technical very cool papers written in a readable, understandable way, but it’s high level stuff. Now, you can take that and repost it and comment on it in your area. Take a segment out of that. We don’t mind. We love it, go ahead, and do that. repost it and comment on it or give your spin on this blog. Just make sure that you don’t, you know, copy it and make sure you put the reference or citation that you know, this is, Dr. Jon and extraktLAB that’s, that’s it. But otherwise, that helps you elevate who you are and who you’re talking to. And you can do that as a farmer/grower. You can do that as a processor, at any level. And you can do that all the way at your branding or packaging or end user consumer.
Dr. Jon 31:43
Another thing related to influencer stuff is influencers are kind of a better way to go then SEO and AdWords at this point, because those AdWords you know, first of all, they’re really hard to get on to Google. And when you do actually get them onto Google, some people are doing them but they’re really costly per click, you can really run up a budget and get no conversions. So, I’d say be very careful of that, especially if you don’t know what you’re doing. And then SEO, you know, yeah. Okay, make your website up. Make sure you have the keywords that you think you want to rank for, and they’re fine. That’s really great. But it’s gonna take a little bit of time for you to get any visibility of the influencer channel as a direct immediate channel. And so, if you are owning a company and you don’t have a hunter on staff, that’s your next hire.
Randall Thompson 32:30
Dr. Jon 32:31
Okay. If you have new scientists and no hunters, you got a problem. I think there’s a you need to get a hunter. And, you know, let me just give you the profile of a hunter. I mean, what do you say? I mean, foaming at the mouth is what I mean, they’re good. They’re just absolutely they’re pounding the pavement. They’re internally motivated. They have within themselves an innate ability to network so they’re very outgoing people. They don’t they’re not passive at all and there’s certainly as hell not from corporate America. Those – you cannot have those people working for you. I mean, and I’m sorry if I offended anybody but I just and obviously there are exceptions Okay, there’s always exceptions not sorry. But they’re gonna take you and run you look they’ll run your business right into the ground.
Randall Thompson 33:20
Absolutely. They do it because it’s never been on their dime, right? Yeah, it’s never been their money right? It’s easy to spend so I
Dr. Jon 33:28
“Oh, I’ve got lots of resources, Oh, I have resources. I got a multimillion-dollar marketing campaign feeding me leads and I’m just sitting here taking orders on the phone.” That’s not the way real business works.
Randall Thompson 33:37
And with corporate the way here’s what you hear the sales cycle is like eight months or a year.
Dr. Jon 33:43
Randall Thompson 33:44
BS, man, you can go. There are people ready to buy right now your product. So, go do that.
Dr. Jon 33:52
Okay, yes, that really that’s true.
Randall Thompson 33:54
You need salespeople. Get the right ones. And the other side of that too, though, is you don’t want to hire mercenaries
Dr. Jon 34:02
That’s correct. That is correct. If they’re only motivated by money, oh, that’s really bad.
Randall Thompson 34:08
Dr. Jon 34:08
They gotta believe in you –
Randall Thompson 34:09
It’s never ever going to be enough
Dr. Jon 34:11
Yeah. Okay. Exactly. So yeah, in fact, I got a couple arrows in my back on that one. I mean, even if they’re good sales guys, in the end, it will always, it will always go right down. It’ll crash and burn baby
Randall Thompson 34:16
We all do. It will bite you square in the ass. Don’t do it.
Dr. Jon 34:26
Yeah, because there’s nothing there’s no amount of money that you can give that person who’s only motivated by the next dollar in their account. You need to have someone who’s a believer. A true believer.
Randall Thompson 34:37
Yeah and they’re really out there evangelizing for your brand, they’re evangelizing for your thought leadership. They’re evangelizing for all of that.
Dr. Jon 34:45
Randall Thompson 34:45
And they’re helping people. They’ve got a service mentality, right, and a service heart really what it is this whole value thing, they’re all equally saying, “How do I help you with your business? How do I help you with your problems? How do I help you with your beauty and skin needs, and requirements, right?”
Dr. Jon 35:04
Randall Thompson 35:04
That’s what you need. So, hire the right, folks. But get a salesperson. If you don’t have one. That is your next hire.
Dr. Jon 35:12
Yeah. Yeah. And if you have a scientist and no sales guy, then you have to, you have to choose.
Randall Thompson 35:17
Dr. Jon 35:18
And I think you probably need a sales guy more you need a scientist, it’s like everything else is almost optional. I hate to say that because I’m a scientist. But, if you don’t have that base sales, it’s just, you know, you’re gonna be always struggling.
Randall Thompson 35:33
And that goes back to I mean, even many of the opportunities that we talk about around the world, I mean, we had a call this morning with South Africa, for example, right? It’s crazy, right? We’re getting started get calls from India. And you know, and domestically, but when we talk, there’s a lot of relationship that we’re building, but we also know the systems and structures which is what I do on the business and sales side. I mean, Jon does that as well. But Dr. Jon brings in a whole new layer of technical expertise and fantastic scientific thought. And it builds trust when we can work and there’s a good give and take, an ebb and flow of what we’re doing and the value we’re building. We’re bringing value to clients at multiple levels, right? And then we’ve got a depth of group people here that you may not have. But you’ve got resources of the people who you’re sourcing from or sourcing to who want to help you succeed as well.
Dr. Jon 36:33
Absolutely they do
Randall Thompson 36:34
So, tap into them – tap into us. Were here.
Dr. Jon 36:37
Yeah, exactly. So yeah, get referrals.
Randall Thompson 36:40
Dr. Jon 36:41
Absolutely. So anyway, yeah, I think if you if you go and you really focus on those influencers, getting that, getting that free PR standing for something saying, “Hey, this is better than everything else,” okay. If you think it’s better than everything else, then go ahead and say it. Some people are not going to like you for saying that. But it doesn’t matter. I mean, those people probably aren’t going to buy from you anyway.
Randall Thompson 37:04
So, this has not been a true “here’s how to sell.” We’re not doing that. Today we’re talking about, okay, what is the fundamental way to do that? I mean, I remember back in boy was when I’m older than dirt. So, it was way back in the dark ages when we were saying, Okay, what are some closing techniques? Okay, you need tie downs. “Isn’t it? wasn’t it? wouldn’t it? couldn’t it? Can’t you? Won’t you? Don’t you?” How about that for rolling off the tongue? But we don’t do that old sales methodology. You know?
Dr. Jon 37:34
It’s old school
Randall Thompson 37:34
Used car salesman, crap, you don’t do that. Get to know your client, and then figure out how to solve their problems. Right? Okay. If you’re not solving problems, you’re not advancing,
Dr. Jon 37:47
Making their lives easier.
Randall Thompson 37:49
Bingo. Yeah, that’s bringing value. And that’s part of the education and that’s partly actually executing working hard and saying, “alright, maybe I’m not gonna make as much money but this is going to solve their problem and maybe the next time they’ll buy more from me” or something, but you’re integrating yourself into their sphere. And their sphere is bigger than your sphere, or it’s at least a different sphere. Right? So, you want to be engaged in multiple spheres so that you are expanding vertically and horizontally and expanding who your ideal customer is. So, influencers perfect to work with them. Small level, big levels –
Dr. Jon 38:26
Randall Thompson 38:27
Dr. Jon 38:28
Start with someone who’s got you know, 1000 or 500. I mean, start small.
Randall Thompson 38:33
And one of the things like in the Instagram, for example, just tag people who are in front of your ideal customer, tag them. Yeah, because everybody who’s with them sees that post, right? Because you’ve tagged them, right. That’s just another Instagram kind of thing. The other thing is start working, dial, talk to people, email, phone, do the hard work that’s necessary to get in front of your customer. Talk to him. Find out what their problems are. I have a sheet that I call my call sheet that has been a long time in the running. Everything is a consultative sale. And even when you’re doing skin and beauty products, it’s all about, okay, what are the key things you need to know? to help them solve their problem? And you ultimately want to get to what is their problem? Yeah. What are their let them vent? What do they care about? Well, when they get real hot about one thing, you know, that is their explicit need, right? That is what they need. And if you can solve that, that’s awesome. Right?
Dr. Jon 39:33
Yeah, I think just understanding what the needs are and making sure that your product meets the need. Once you have that, like for example, this would be like organic. You know, people want organic, they don’t want chemicals in their food anymore. They want to stop eating chemicals. So, you know, there’s a huge demand for organic food. Once you know that, can you make organic What can you make organic skin and beauty care stuff, people want to put chemicals on their skin, they don’t want to put them on their skin any more than they want to eat it, right? So those are the types of things you know.
Randall Thompson 40:03
The other thing is there’s a lot there. The other thing is there’s this is a big, vast growing business. Yeah. Okay. Right now, with the last studies we had, this is a $5 billion industry.
Dr. Jon 40:15
Yeah. Right. Supposed to be growing to 26,000,000,000. The next one, three years? Yeah. Three years, three years. So, it’s huge. It’s crazy.
Randall Thompson 40:27
Yeah, that’s, that is insane. Okay, so that’s a 500% increase in the market over the next three years. There is no end to the need. And the one thing that we heard yesterday in a call is that the FDA is actually a little bit nervous. When the big beverage companies are putting this in all of their beverages, then when you’re processing when you’re growing, there’s going to be an unending demand for your product and your processing power. Yes, it is. It is a huge, vast market. Right? Now, and you know, we don’t like to be too tightly. But there there’s a little bit of a pullback right now in some things, but it is not going to change the fact that this these products, there is a vast need and demand right these products Right, right.
Dr. Jon 41:16
Yeah, that’s absolutely the case. So, I mean, if you look at the market, we’re going to position ourselves, we’re going to hoist their sails because the wind is blowing in that direction. And we’re going to go in that direction. So…
Randall Thompson 41:28
Yeah, and that’s good. There’s a couple of other questions here. Oh, wait long one just came in. But I wanted to address one other thing is, you know, we do manufacture equipment at United science right, extract lab. That’s what we do. We manufacture processing equipment all the way around. We manufacture some really helpful tools for farmers and growers, the shuckNbuck, for example, and all the way out and you know, we can get all the way to IGWLab and that helps the packagers, right, all the way stem to stern. We’re all over that. We do have a facility here, that’s a sister company, it is not a United Science, Nemadji is a company. And, you know, we work with many of our customers who have overflow who have purchased our equipment. And so, we run that. And there are things that we do through there, but we don’t like to, you know, directly compete with any of our customers.
Dr. Jon 42:21
No, in fact, we don’t because we have some, you know, it’s, it’s like, there are thousands of niches here. You have one niche or tune, go pick your niche. There’s going to be let’s say it’s 100-million-dollar niche. Go pick it. Dominate.
Randall Thompson 42:39
Dr. Jon 42:40
So yeah, there’s just some questions like a lot of processors are wondering right now, “Okay, we got crude we’re, we’re getting machine we’re building up this thing. And now we got the crude, we got the distillate, and the prices have gone down, and now we’re wondering if we should make another brand.” Okay. So that that’s, that’s something people are asking about. The answer to that is would say is absolutely do it. Yeah, because there’s – the price has gone down. But if you look at your margin, and you look at your cost basis for producing a kilo, if you buy it from us, you really have an advantage over say, the ethanol processors. You really do. And so, you’re really able to really compete on that winterized crude or distillate market that you’re looking at. So that’s something you want to do, but I would always put another ship in the water and to make a tincture line to make up – you know, pick your niche, focus on it, produce a product that is very good, and invest in that one area. Like how many sports products are there?
Randall Thompson 43:41
There are thousands of different brands – 10s of thousands.
Dr. Jon 43:44
Yeah, and they are successful.
Randall Thompson 43:46
There’s room for everybody.
Dr. Jon 43:47
Yeah, there is room for everybody. We’re talking about a $26 billion market.
Randall Thompson 43:51
Yeah, it is gonna be five times what it is right now. Even if there’s a slight hiccup down. It’s still going to be at least four times anyway. And they think when things go into some of these larger multinationals like Coke and Pepsi. I mean, they’re looking at it right now putting it in their beverages, right? We need to stick together, we need to make sure that we’re helping one another get through that, because that’s a lot of growth.
Dr. Jon 43:51
Randall Thompson 43:52
Oh my gosh!
Dr. Jon 44:00
Exactly. Yeah. Hey, look the other thing on that side of the equation would be if you guys are doing splits contracts, you got to realize that you’re paying money to have that process.
Randall Thompson 44:28
Dr. Jon 44:28
Okay, so you’re getting the value of the oil out. But you’re also paying for the other guys. So, you just doubled your cost to get that oil.
Randall Thompson 44:37
Dr. Jon 44:38
That’s one thing.
Randall Thompson 44:39
Dr. Jon 44:40
So splits… splits are okay, if you want to get started. And if you have a brand or someone that you have based demand, but otherwise, you’re just you’re just paying double for your oil. So, I would say that start a brand. That’s where that’s where the retail margin is at and, you know, get on Instagram. I mean, there’s just so many different little products out there that are successful.
Randall Thompson 45:04
And there are great packagers, or you put up your own packaging. Yeah, it’s not. It’s not that difficult. It doesn’t take a lot of space. I don’t think that it does, but it doesn’t. And you know, we can help you with all of that.
Dr. Jon 45:16
Randall Thompson 45:16
So those are things that we can answer all the time. And there are decent margins you can sell online, you just have to be really careful because the FDA and the FTC are nervous about claims, you’ve got to be really careful. Make sure you educate yourself on how you do that what you’re doing, right. So, look at that side of it as well.
Dr. Jon 45:37
We got just a little bit of time left, I’d like to just talk about blood, sweat and tears. Let’s go! If we could and, okay, look, here’s the deal. You know, don’t mingle your blood with other people’s blood, okay? It just is gross. Okay? So, try to make sure that you in your partnering model that a lot of entrepreneurs always want to try to partner and they think that that’s gonna reduce their risk they, but it doesn’t.
Randall Thompson 46:03
Dr. Jon 46:05
The more you partner, the more risk you’re gonna have. And the numbers are in on partners. I mean, you know, very few partnerships actually work, okay? And because you’re, you’re not, you’re not a partner. A lot of times you’re not a partner of equals, you know, there’s people have different motivations. So, but if you are hellbent on being having a partner make sure that you guys have same idea as to where you’re going
Randall Thompson 46:31
And what you’re hunting!
Dr. Jon 46:32
And what you’re hunting. It’s very risky, okay, because inevitably – how many how many people we have five, six people in this room, – everybody has an opinion. Okay? And it’s fine. It’s no problem. But as at the end of the day when it comes to, you know, focusing your business on a particular customer and everything. Somebody has to say, “this is what we’re going to do.”
Randall Thompson 46:54
Dr. Jon 46:54
Okay. If that produces sparks, your business will die. Sparks usually come from partnering and from, you know, so if you can, as a small business owner, if you can just keep your partnering be very, very reticent about your partnering. Be very careful. It’s high risk, you’re basically getting married. Okay? You’re basically getting married,
Randall Thompson 47:18
You got a 50/50 chance,
Dr. Jon 47:20
And you got a 50/50 chance. And then the more partners you have, the worse it is. So anyway, yeah, so that that would be my thing. So if you’re going to give blood, make sure that you have partners that are also going to give blood with it, because you don’t want to have one partner who has a different work ethic, then you bingo, and then you are like doing all the work and the other guys and then you know, then that’s where the fights come. So just avoid the problems.
Randall Thompson 47:44
And that is true but there’s two different levels of this partnership conversation and I just want to make sure we touch on those and that is if you’ve got partners, make sure that you are all filling one aspect in one area of that partnership that you’re coming together as a collective because you all have unique values and skill sets that are going to make your business grow and go. That’s an OK partnership to deal with. Okay, because that’s internal, because you’re all on that same page. You’re all on the same bus, going to Jim Collins Good to Great. And just make sure you’ve got all the right people on the bus and that everybody’s in the right seat on the bus, and everybody wants to go the direction the bus is going.
Dr. Jon 48:25
Yeah, that’s the hunters, right? You got to make sure the hunters are on there.
Randall Thompson 48:29
You got to and you need the scientists and you need you need every person who does an execute.
Dr. Jon 48:34
Still gotta have someone driving the bus. If you’ve got three, four people driving the bus, it’s not gonna work.
Randall Thompson 48:38
Oh, that’s true. You only have one steering wheel. And that is a very good point. The other side of that is partnering outside of your company. So now it goes back to splits and different things. So, make sure that you are delivering on value and that they fit in your need and you’re not shotgunning and just doing this because It’s expedient, because that usually bites you also. Okay. So, make sure that you’re doing that. I think our lists were exhaustive. I know, we didn’t get to some of the questions, but I want to be respectful of time here. As we’re winding down. If there are other questions you have on this, please put them in the chat or send them via email. We’d love to answer them.
Dr. Jon 49:21
We didn’t get to a bunch of questions there. So, it’s fine we’ll get them though.
Randall Thompson 49:26
And we can be more specific. Have another show on this topic. Yeah, down the road. So, send those questions and any closing comments.
Dr. Jon 49:35
One thing, I just am on about 2000 words into my blog post on this very subject, awesome. So, it kind of takes those five aspects. So maybe in the next week or so we’ll publish that. That’ll be kind of fun.
Randall Thompson 49:47
Okay so look for that on there. We’ll try to get that out to you. This was a great show. Thank you for being here. Thank you for your questions. Thank you for your participation, even though you voted Jon’s list better than mine. Thank you for being here. You know, our favorite part of this recording live is participation with you, great conversations. Make sure that you participate in the chat and the social media online. Go to all of our social media, Facebook, Instagram, LinkedIn, and YouTube. And even on our website, look at all our technical papers and things right subscribe to our YouTube channel, please, that would be great. There’s a lot more resources there and on our blog, our calculator library will be available on our site at extraktlab.com and join our conversations. We have these kinds of conversations all the time on all of our programs, and there will be another winner next week. So, as you participate on Facebook, LinkedIn, Instagram, again, congratulations to Kaz Horlick, who was last week’s Instagram winner perfect Thank you very much. Thank you for participating next week Testing Secrets: where it is, how to do it and how to make it benefit your business.
Dr. Jon 50:53
Advanced Secrets of the universe will be revealed…
Randall Thompson 50:57
Will be revealed! I love it. That’s very good. That’s on here. You’ll see this. If you’ve signed up. It’ll be good. You’ll see it. Any other questions? send them to us. We really appreciate you being here. Thank you. Thank you. Thank you. And we’ll see you next week.
Dr. Jon 51:12
See you later. Bye now.
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