2019 Amsterdam - Compressed 1.pdf Version 1 1

The 1kX Matrix: How To
Radically Grow Any Business

Business Mastery June 2019
© 2019 Roland Frasier

A Proven System For Growth
Medical Billing ** Machine Manufacturing ** CPG **
eLearning * Sporting Goods * Corporate Training
Commercial Real Estate * Legal Services Document Preparation
Residential Real Estate *** Mastermind Groups * Medical Equipment *
Trade Shows/Events Supplements * Telecom Infrastructure *
Motorcycle Equipment * Real Estate Training * Beauty + Cosmetics *
Direct Response * Online Casinos * Tax Services
Digital Marketing Agency eCommerce * Software As A Service *
* $10MM+ | ** $100MM+ | *** $1B+ © 2019 Roland Frasier

The 1kX Matrix
BMI + Flow-Riding TOC Optimization SOAPS + EOI Filter
BOB + Integrations E2P Canvas FPR + Inversion
Verticalization Conversion Margin Match Moat (IP + CA + NE)
33 Leverage Matrix Top Line Scrape MRR/ARR Multiplier
Strategic Partnerships Geo-Index Arbitrage OKRs + 4DX + SOPs
Traffic Grid 5 Whys CCB Diamonds
Product Mix/Dev Grid Lateral Integration PVC Differentiation Map
BML/PMF Loop Super Employee Creator CVJ + PSS Canvas
GISC 16X MIAs + LIAs EV Acquisition Arbitrage
Pivot Canvas CXO + CRO Multiple Bump Matrix
1. Build Revenues 2. Build Profits 3. Build Value

THINK
DIFFERENT
Can You Finish Finish
The Maze In 20
Seconds Using
Just Your Eyes?
Start

Can You Finish Finish
The Maze In 20
Seconds Using
Just Your Eyes?
Start

Lateral Thinking: Finish
Move outside the
implied rules of
the system
Start
What
assumptions are
impeding your
speed right now?
Disruptive Finish
Thinking: Make
new rules or a new
system
Start
What
assumptions are
impeding your
speed right now?
Think Laterally
What can grow my business
10x… 100x… 1,000x?
Optimization yields Linear
Growth
Innovation yields
Exponential Growth
Apply Lateral Thinking
What pre-conceptions about your life
or business currently hold you back?
What factual assumptions are you
making that may not be actual facts?
What language patterns are you using
to frame solutions that may lead you
to make incorrect assumptions?

FIRST-PRINCIPLES REASONING

“Boil things down to their
fundamental truths and reason up
from there. Most of our life, we
reason by analogy, copying what
other people do with slight
variations.” -Elon Musk
STEP 1: IDENTIFY + DEFINE
Identify and define your

current assumptions

Lux Vacation Rentals: “Need a
fund to acquire luxury real
estate properties.”
Dugout Mugs: “$13.50 cost to
create a Dugout Mug”
STEP 2: BREAK DOWN
Break down the problem into

its fundamental principles

Lux Vacation Rentals: Is ownership
required to achieve the core objective? Is
a fund required to own?
Dugout Mugs: What are the material
components of a Dugout Mug? What’s the
commoditized cost of a) the wood? b) the
burn? c) the labor?
STEP 3: NEW SOLUTIONS
Create new solutions from scratch a la Elon
Tesla: Cheaper, higher capacity batteries
$80/khr vs. $600
SpaceX: Reusable rockets
Paypal: Make payments by email
Lux Vacation Rentals: Existing fund
partner to save time + cost + liability of a
fund? Bank partner to monetize bank lux
REOs? Broker partner?
Dugout Mugs: Raws not from bats?
Source wood + mfg. + labor overseas?
Reduce COGS 90% ($13.50 to $1.35)?
INVERSION THINKING
Think about and plan for the
opposite of what you want to
happen.
“Man muss immer umkehren” [You
must always turn back] –Carl Jacobi
INVERSION THINKING
“It is remarkable how much long-
term advantage people like us have
gotten by trying to be consistently
not stupid, instead of trying to be
very intelligent.”
–Charlie Munger
“Turn a situation or problem upside
down. Look at it backward. What
happens if all our plans go wrong?
Where don’t we want to go, and how
do you get there? Tell me where I’m
going to die so I don’t go there.”
INVERSION THINKING
1. What do you want to happen? E.g. Get more new
customers for my direct mail business
2. Inversion – What’s the opposite of what you want? E.g.
How can I prevent the business from getting new
customers? Don’t mail.
3. Preventative solutions: How can I ensure the mail gets
sent and on time? Create a mail calendar + dual
responsibility & reporting
STARTING NEW
PROFIT CENTERS
FROM
NOTHING?
Eyjafjallajökull

NO PRODUCT
NO LIST
NO €€
€1,108
€1,121,315
1,012X
LAUNCH
NEW PROFIT
CENTERS
EVENTS €412K
TRAINING €887K
LIST 7,300
DEALS
WHAT’S YOUR
UVP?
DIFFERENTIATE:
YOUR BRAND
CATEGORY
People Think In Ordered Lists
On A Scale Of 1 To 10… Top 3…
You currently occupy a rung on
some ladder. To move up, you must:
“Pay your dues”
Hop to a different ladder
Be #1 on a new ladder

Beer
Imported Beer Domestic Beer
Mexican Beer Netherlands Japanese Beer

Beer
#1 In USA #1 In Germany
Lite Beer Beer With Orange Craft Beer
Beer
Brands Find
New Categories
32,000 Types
Of Beer In
Over 100
Categories

ADDRESSABLE
MARKET
One-To-Many Niche Strategy
Dollar Shave Club SHV HOLDINGS N.V.
Razors > All Bathroom Coal > Oil > Transport
Unilever Amazon
Margarine > Food > Books > Everything Store
Nutrition + Personal Care

Micro-Markets To Macro-Markets
2013 Survival Life 3MM Preppers Base
2015 Survival Life 40MM Campers 13x Increase
2017 Native Commerce 141MM Outdoor Sports 47x Increase

COMPETITIVE
ADVANTAGE
“The #1 thing buyer’s value in a
potential acquisition is sustainable
competitive advantage”

Threat of New
THE FIVE FORCES
Entrants
Supplier Buyer
Competitor
Bargaining Bargaining
Rivalry
Power Power
Threat of
COMPETITIVE
Substitute ADVANTAGE
Products Source: Michael Porter
Sustainable Competitive Advantage
Cost Leadership Focus
Achieve efficiencies to Serve focused niche
provide better value with Lowest Pricing
OR
Differentiation Focus
Innovation, Quality or Serve focused niche
Customer Experience With Premium Pricing
COMPETITIVE
ADVANTAGE
Advertising Communicates +
Amplifies Competitive Advantage
The purpose of marketing is to
differentiate yourself from the norm.
Roy H. Williams

CASE STUDY
€111 Million Sale
Vertically Integrated High Margin
Cost Leadership
30% In-Store Conversion + CZ
Innovative Display Sales Model
Superior Customer Experience
Selection + Speed of Delivery
Artisan Diamond Pioneer (Cost
Leadership + Innovation)
Ultra-Light Inventory Model (Cost
Leadership)
CASE STUDY
Debt + Equity Recap

Over 100 Patents: Innovation +
Defensible IP
79 Year Old Company: Longevity
Superior Customer Experience
Goettl University: Superior
Training, Systems + SOPs
500% Y-O-Y Growth Since 2015
Via Multiple Acquisitions

Customer
Needs/Wants
1. ____________
2. ____________
3. ____________
4. ____________
5. ____________
COMPETITIVE
ADVANTAGE
WORKSHEET
Competitive Customer
Strengths Needs/Wants
1. ____________ 1. ____________
2. ____________ 2. ____________
3. ____________ 3. ____________
4. ____________ 4. ____________
5. ____________ 5. ____________
COMPETITIVE
ADVANTAGE
WORKSHEET
Competitive Advantages
1. _________________________
2. _________________________
3. _________________________
4. _________________________ 1. ____________ 1. ____________
5. _________________________ 2. ____________ 2. ____________
3. ____________ Competitive 3. ____________
Advantage
Tablestakes 4. ____________ 4. ____________
5. ____________ 5. ____________
1. _____________ Perfect
2. _____________ S P Competition
3. _____________
E C
4. _____________ Q L kes Vu
I R ta lne
s rab
5. _____________
able le
T
Vulnerabilities Competitor Strengths
1. _____________ 1. ____________
S P
2. _____________
3. _____________
E C Key Migration Factors
2. ____________ COMPETITIVE
4. _____________
Q L Price Capital 3. ____________
ADVANTAGE
I R Labor Resources
4. ____________
5. _____________ Innovation Quality
Experience Segmentation 5. ____________ WORKSHEET
1. _________________________
2. _________________________
3. _________________________
4. _________________________ ________________
New Items, Known Brands ________________
New Items; Known Brands
5. _________________________ ________________
Free Test Model Lowest $$ ________________
Low Price; Free Shipping
________________
Useful + Entertaining Content
Competitive ________________
High Quality; Physical Store
Advantage
Tablestakes ________________
Known Influencer; MRR ________________
________________
Physical Store; Assoc. Stick ________________
Kown Influencer; Easy To Buy
1. _____________ Perfect
3. _____________
E C
Q L s Vu
4. _____________ ake lne
I R st
5. _____________ ble rab
Ta le
1. _____________ ________________
S P New Items; Known Brands
2. _____________
3. _____________
________________
Low Price; Freee Shipping COMPETITIVE
Q L ________________
4. _____________
I R
Price
Labor
Capital
Resources
________________
Huge Selection; Easy To Buy
ADVANTAGE
Experience Segmentation ________________
Huge, Trusted Retail Brand WORKSHEET
1. _________________________
2. _________________________
3. _________________________
4. _________________________ ________________
5. _________________________ ________________
________________
Competitive ________________
Advantage
Tablestakes ________________
________________
1. _____________
New Items Perfect
2. _____________
Known Brands
S P Competition
3. _____________
Physical Store
E C
4. _____________ Q L kes Vu
lne
I R sta
rab
5. _____________
able le
T
1. _____________ ________________
2. _____________
3. _____________
________________
Q L ________________
4. _____________
I R
Price
Labor
Capital
Resources
________________
ADVANTAGE
1. _________________________
2. _________________________
3. _________________________
4. _________________________ ________________
5. _________________________ ________________
________________
Competitive ________________
Advantage
Tablestakes ________________
________________
1. _____________
New Items Perfect
2. _____________
Known Brands
S P Competition
3. _____________
Physical Store
E C
Q L s Vu
4. _____________ ake lne
I R st
5. _____________ ble rab
Ta le
1. _____________
Free Shipping ________________
2. _____________
High Quality
3. _____________
Easy To Buy
________________
Q L ________________
4. _____________
Huge Selection
I R
Price
Labor
Capital
Resources
________________
ADVANTAGE
5. _____________
Trusted Retail Brand
Innovation Quality
1. _________________________
Faster Innovation of Newest Items
2. _________________________
Free Test Model Lowest $$
3. _________________________
4. _________________________
Known Influencer
________________
5. _________________________ ________________
Association Continuity Stick & Low Churn
________________
Competitive ________________
Advantage
Tablestakes ________________
________________
1. _____________
New Items Perfect
2. _____________
Known Brands
S P Competition
3. _____________
Physical Store
E C
Q L s Vu
4. _____________ ake lne
I R st
5. _____________ ble rab
Ta le
1. _____________
2. _____________
High Quality
3. _____________
Easy To Buy
________________
Q L ________________
4. _____________
Huge Selection
I R
Price
Labor
Capital
Resources
________________
ADVANTAGE
1. _________________________
Continual Flow of Newest Items
2. _________________________
3. _________________________
4. _________________________
Known Influencer; MRR
________________
5. _________________________ ________________
________________
Competitive ________________
Advantage
Tablestakes ________________
________________
1. _____________
New Items Perfect
2. _____________
Known Brands
S P Competition
3. _____________
Physical Store
E C
Q L s Vu
4. _____________ ake lne
I R st
5. _____________ ble rab
Ta le
1. _____________
2. _____________
High Quality
3. _____________
Easy To Buy
________________
Q L ________________
4. _____________
Huge Selection
I R
Price
Labor
Capital
Resources
________________
ADVANTAGE
1. _________________________
Continual Flow of Newest Items
2. _________________________
3. _________________________
4. _________________________
Known Influencer; MRR
________________
5. _________________________ ________________
________________
Competitive ________________
Advantage
Tablestakes ________________
________________
1. _____________
New Items Perfect
2. _____________
Known Brands
S P Competition
3. _____________
Physical Store
E C
Q L s Vu
4. _____________ ake lne
I R st
5. _____________ ble rab
Ta le
1. _____________
2. _____________
High Quality
3. _____________
Easy To Buy
________________
Q L ________________
4. _____________
Huge Selection
I R
Price
Labor
Capital
Resources
________________
ADVANTAGE
rolandfrasier@gmail.com | 858.204.9500 © 2018 Roland Frasier
1. _________________________
2. _________________________
3. _________________________
4. _________________________ 1. ____________ 1. ____________
5. _________________________ 2. ____________ 2. ____________
3. ____________ Competitive 3. ____________
Advantage
Tablestakes 4. ____________ 4. ____________
5. ____________ 5. ____________
1. _____________ Perfect
3. _____________
E C
4. _____________ Q L kes Vu
I R ta lne
s rab
5. _____________
able le
T
1. _____________ 1. ____________
S P
2. _____________
3. _____________
2. ____________ COMPETITIVE
4. _____________
Q L Price Capital 3. ____________
ADVANTAGE
I R Labor Resources
4. ____________
Experience Segmentation 5. ____________ WORKSHEET
KEY MIGRATION FACTORS
Price Capital Labor Resources
1. ____________________ 1. ____________________ 1. ____________________ 1. ____________________
2. ____________________ 2. ____________________ 2. ____________________ 2. ____________________
3. ____________________ 3. ____________________ 3. ____________________ 3. ____________________
4. ____________________ 4. ____________________ 4. ____________________ 4. ____________________
5. ____________________ 5. ____________________ 5. ____________________ 5. ____________________
Innovation Quality Experience Segmentation

1. ____________________ 1. ____________________ 1. ____________________ 1. ____________________
2. ____________________ 2. ____________________ 2. ____________________ 2. ____________________
3. ____________________ 3. ____________________ 3. ____________________ 3. ____________________
4. ____________________ 4. ____________________ 4. ____________________ 4. ____________________
5. ____________________ 5. ____________________ 5. ____________________ 5. ____________________

BUSINESS
MODEL
INNOVATION
Business Model Innovation System
Systems Of Disruption = Business Model Innovation
• Landlord (Physical/IP) • Broker
• Affiliate • Reseller/VAR
• Pay As You Go • Retailer
• Publisher • Network Marketing
• Franchise • All you can eat
• Manufacturer/Sales Rep • Direct Seller
• Wholesaler • Subscription

Business Model Innovation System
Experiment With Different Pricing Models
• Free (Ad Supported) • Free + Paid Support
• Freemium • “Cost +” or “x Cost”
• Value Based • Portfolio/Suite
• Tiered/Volume • Commodity
• Feature + Add-Ons • Razor + Blade
• Low Price • Premium/Luxury
• MSRP/MAP • Discount

Uber Product Innovation Mapping
Business Model
Primary Secondary Tertiary
Broker: Connect Drivers Landlord/Tenant:
Affiliate
Primary
With Passengers Drivers Rent Car Space

Volume: Charge 15%- Tiered based on type Referral Fees For New
30% Brokerage Fee of car requested Customers
Pricing Models
Secondary
Volume Referral Fee For New

(Distance/Miles) Drivers
Tertiary
Time of Day Premium

SurvivalLife Product Innovation Mapping
Business Model
Primary Secondary Tertiary
Direct Seller: Gadgets Subscription: FPA
Publisher
Primary
People Want Membership
Low Price: Tripwire Value Based Free + Ad Supported

Pricing Models
Secondary
Cost + or X Cost: Upsells Tiered: Membership

to additional products Levels
Tertiary
Feature + Add-ons

New Product Innovation Mapping
Business Model
Primary Primary Secondary Tertiary
Pricing Models
Secondary
Tertiary

PIVOT:
TO PROFIT + PMF
Pivot Canvas: Create New Businesses From Old
Zoom-In: Many products become 1 product Value Capture: New rev model
Zoom-Out: 1 product becomes many products Growth Engine: Move between viral, paid or sticky
Technology: New tech can improve price or Customer Need: Tweak product to solve more
performance. important need
Sales Platform: Switch between house product, Customer Segment: Same product to different
affiliate or marketplace customer
Channel: Change distribution channels but not Architecture: High margin, low volume to or from
product low margin, high volume

SOAPS Business Growth Framework
Processes
Objectives
Activities
Systems
Structure
Entity Choice C+B Diamonds 16x MIAs + LIAs Process Mapping Create + Codify SOPs
Cap Table Mission + We Believes 3x3x3 Leverage Matrix Optimize Automation Audit
Org Chart OKRs + GISC 5-80-5 + BFOs TOC Review + Adjust

SOAPS GROWTH FRAMEWORK
STEP 1: STRUCTURE

PLATFORM
RETENTION
Structure To “Sell The Eggs”
And Keep The Geese

Goose + Eggs Structure Template
You Ops #2 Cap
IP-Co Table
Trust, FLP, New Liability
TM © ® .com
FLLC or Corp Product Line #2
Holding Ops #1 Ops #3 Cap

Partners Co Primary New Geo Table
Business Territory
#3
Holding Co Can
Investor
Spin Off Multiple
Ops Cos ShareCo Ops #4 Cap
Group Copyright 2019
Media Props
Fin-Team
Profit
Maximizer
Table
Roland Frasier Sales Team Company #4
Business Structure Template
Owner Intangibles Ops (Liability) Cap Table #2
Partners Holding Co. Main Bus/MP Ops (Geo) Cap Table #3
Holding Co Can
Investors Spin Off Multiple Hard Assets Ops (JV/SP) Cap Table #4
Ops Cos
Copyright 2019
Roland Frasier
STEP 2: OBJECTIVES

EOI FILTER
RUNWAY GRAIL
LI-HO HI-HO
Low Income High Income
High Exit Opportunity High Exit Opportunity
Income
SANDBOX DANCING BEAR

LI-LO HI-LO
Low Exit Opportunity Low Exit Opportunity
© 2019 Roland Frasier Opportunity To Exit

“Quadrants Create Decision
Points To Reposition Profit
Centers For Value”

RUNWAY GRAIL
LI-HO HI-HO
STOP Low Income ASCEND High Income EXIT
High Exit Opportunity High Exit Opportunity
ASCEND
ASCEND
Income
SANDBOX DANCING BEAR

STOP LI-LO ASCEND HI-LO STOP
Low Exit Opportunity Low Exit Opportunity
© 2019 Roland Frasier Opportunity To Exit

“Chart Each Profit Center
Into A Value/Performance
Quadrant”

RUNWAY GRAIL
1. __________________ A X E 1. __________________ H E B
2. __________________ A X E 2. __________________ H E B
? 3. __________________ A X E ? 3. __________________ H E B ?
4. __________________ A X E 4. __________________ H E B
5. __________________ A X E 5. __________________ H E B
? ?
$ SANDBOX DANCING BEAR
1. __________________ A X E 1. __________________ H E A
2. __________________ A X E 2. __________________ H E A
? 3. __________________ A X E ? 3. __________________ H E A ?
4. __________________ A X E 4. __________________ H E A
5. __________________ A X E 5. __________________ H E A
© 2019 Roland Frasier O
RUNWAY GRAIL
LMS Project
1. __________________ A X E 1. Seasoned Mar-Tech
__________________ H E B
New Event or Ecom
2. __________________ A X E 2. Dominant Event
__________________ H E B
? Lending Company
3. __________________ A X E ? 3. Leading Media Prop
__________________ H E B ?
4. R.E.I.T
__________________ A X E 4. Fully Funded Fund
__________________ H E B
5. New Media Property
__________________ A X E 5. High Unit Franchise
__________________ H E B
? ?
$ SANDBOX DANCING BEAR
Healthcare Support
1. __________________ A X E 1. Podcast or Influencer
__________________ H E A
2. Food Wholesaler
__________________ A X E 2. Consulting or Agecny
__________________ H E A
? 3. Auto ? 3.Mastermind/Coaching ?
Parts Seller
__________________ A X E __________________ H E A
4. Survival Retailer
__________________ A X E 4.Affiliate /Promos
__________________ H E A
5. Publishing Company
__________________ A X E 5.Speaking-To-Sell
__________________ H E A
© 2019 Roland Frasier O
GROWTH IDEA
SCORE CARD
Prioritize What To Do First With The GISC
GISC Tool

October 2018 Intensive © 2019 Roland Frasier
STEP 3: ACTIVITIES

CUSTOMER
EXPERIENCE
ELEVATOR
Customer Touchpoint Inventory
Pre-Purchase Purchase Post-Purchase
Ads, Website Add-To-Cart Confirmations
Blog, Newsletter Persistent Cart Shipping, Tracking
Landing Pages In-Cart Pre-Checkout Delivery, Unboxing
Webinar, Facebook Checkout, Upsells, 1st Product Contact
Instagram, YouTube Down-sells 1st Product Use
LinkedIn, Email Cross-sells On-Boarding, NPS
Chat, UGC, Ungated In-Purchase Support Consumption, Gifts
User Communities Thank You Page Follow-Up, Support
Comparison Sites Confirmations User Communities
Review Sites, Store Chat, Messenger UGC, Testimonials
Storefront, Amazon In-Person Sales Follow-On Sales
Call Center, Samples Call Center Loyalty Programs
© 2019 Roland Frasier #War Room April 2019
Customer Touchpoint Inventory
Pre-Purchase Purchase Post-Purchase

Customer Experience Elevator
3 ⭐ Review 7 ⭐ Experience
5 ⭐ Review 10 ⭐ Experience

MIA LIA MIP LIP
ANALYSIS
Apply Pareto Principal To Your Product Line (270 Products)

SCALE MIAS ELIMINATE LIAS
BROWN BOX > 6% REV + 8% PROFIT
WAR ROOM > 6% REV + 42% PROFIT
#1 BOOK SYSTEM > 8% REV + 10% PROFIT
AUTHORITY BP > 6% REV + 9% PROFIT
ECOMMERCE > 63% REV + 8% PROFIT
EVENTS > 11% REV + 23% PROFIT

EXERCISE: FEED YOUR MIAs STARVE YOUR LIAs
WHAT ARE YOUR MOST IMPACTFUL
ACTIVITIES YOU ENJOY MOST RIGHT NOW?
ELIMINATE LIAs FULLY SCALE MIAs
WHAT ADDITIONAL VERTICALS CAN YOU
EXPAND YOUR MIAs INTO?

HISTORICAL MIAs (MOST IMPACTFUL ACTIVITIES)
5 Year List Of Acyviyes
Joy Brand Sales Profit Value Scale Ease
Contribuyng 20%+ To RPV
1. _______________________ ____ ____ ____ ____ ____ ____ ____
2. _______________________ ____ ____ ____ ____ ____ ____ ____
3. _______________________ ____ ____ ____ ____ ____ ____ ____
4. _______________________ ____ ____ ____ ____ ____ ____ ____
5. _______________________ ____ ____ ____ ____ ____ ____ ____
6. _______________________ ____ ____ ____ ____ ____ ____ ____

HISTORICAL LIAs (LEAST IMPACTFUL ACTIVITIES)
5 Year List Of Activities That Contributed
Core/Non-Core Eliminate/Keep
Less Than 20% To Revenue, Value or Profit
1. ______________________________________ _____ _____
2. ______________________________________ _____ _____
3. ______________________________________ _____ _____
4. ______________________________________ _____ _____
5. ______________________________________ _____ _____
6. ______________________________________ _____ _____

LEVERAGED
ACTIVITIES
3 Quick Ways To Find Leverage
In Your Business…
#1: Replication
#2: Quick Wins Checklist
#3: Leveraged Growth Matrix
Replicate: How Can We Do A $6MM - $10MM Event Every Month?
Expand Internayonally
• Reuse The Same Content • Leveraged Customers: Partner Audiences
• Access Host-Partner Audiences • Leveraged Investment: Partner + Sponsors
• Uylize Host-Partner Teams • Leveraged Team: Core Team + Partner Staff
• Sell Exisyng Sponsor Pipeline • 2020: Amsterdam + USA West
• Tap Local Ceryfied Partner • 2021: Asia Pacific + Russia + Brazil
Network
• Launch New Countries From
Host-Partner Events
Method #2: Quick Wins Leverage Checklist
__ Expand Internayonally (T/G/S/F) __ Create JVs + Strategic Partnerships (T/G/S/F)
__ Manufacture In-House (G/S) __ License Other Brands/Products/Services (G)
__ Buy Your Compeytors (T/G/S) __ Crowdfund With Clients + Customers (G/S/F)
__ Buy Your Suppliers (T/G/S) __ Debt/Equity Offering (T/G/S/F)
__ Buy Your Clients / Partners (T/G/S) __ Borrow A Salesforce/Rep. Network (T/G/S)
__ Cost Center To Profit Center (G/S/F) __ Outsource Or Offshore Functions (T/S)
__ Buy Complementary Media (T/G/S) __ Add Services/Digital To Physical Products (G)
__ Franchise To Others (G/S/F) __ Add Physical Products To Services/Digital (G)
__ License Brand/Products To Others (G) __ Bolt-On Businesses (G/F) Benefits Key:
T = Team G = Growth
S = Scale F = Funding
Method #3: 3x3x3 Leveraged Growth Matrix
Leveraged Customer Acquisiyon (KPI = CAC + DPL + Viral Coefficient) Goal Method Means Need
Add A Channel Media + Channels Channel Partners Data + Network

Acquire Enyty SPA/APA/License Capital + Debt Investors + Targets
Affinity Play COIs + Virality Social Proof/P2P Influencers + PMF
Leveraged Transacyon Size + Margin Enhancement (KPI = ICV + GM)
Add OPP + OPS Svc/Prod Partners Super Funnel OP Products/Offers
Bigger Orders Bulk + Bundles Wholesalers OP Dist. Channels
Higher Margins Vert/Horiz Int. Mfg. + Strat Rels. Consolidate S/C
Leveraged Buyer Frequency (KPI = CHURN + LTV + MAU + PIR)
Add Recurring New Prod/Serv License/Contract OP Products/Offers
Buy Recurring $ SPA or APA Capital + Debt Investors + Targets
Borrow Rec. $ Outsourced Partner/Affiliate OP Products/Offers
3x3x3 Leveraged Growth Examples
Leveraged Customer Acquisiyon (KPI = CAC + DPL + Viral Coefficient) Goal Method Means
Add A Channel Channel Partner Sales Force, Entrepreneur, MicroSo~

Acquire Enyty SPA/APA/License Purchased SurvivalLife.com, Publishing Company
Affinity Play COIs + Virality Influencers @ Events, Top-Down Video, eSports
Add OPP + OPS Svc/Prod Partners Referrals From Sharks e.g. SpyEscape
Bigger Orders Wholesalers BathBombSupplies.com + Wholesale Distributors
Higher Margins Vert/Horiz Int. T-Shirts, Bath Bombs, Personalizayon Prinyng
Add Recurring New Prod/Service FPA Buyers Club, American Gun Associayon
Buy Recurring $ SPA or APA Purchased TruConversion.com
Borrow Recurring Outsourced Recurring Affiliate Offers, Other Peoples’ Lists
3x3x3 Leveraged Growth Action Steps
Leveraged Customer Acquisiyon (KPI = CAC + DPL + Viral Coefficient) Goal Method Means
Add A Channel Channel Partner Traffic Channel Grid Exercise + Channel Partner List
Acquire Enyty SPA/APA/License Mergers & Acquisiyons Grid Exercise
Affinity Play COIs + Virality Influencers + Celebriyes List
Add OPP + OPS Svc/Prod Partners Test Affiliate Offers + Partner With The Best
Bigger Orders Wholesalers Find Wholesale Buyers For Your Products/Services
Higher Margins Vert/Horiz Int. M&A Grid Customers+Suppliers You Could Acquire
Add Recurring New Prod/Service 5-80-5 MRR Exercise
Buy Recurring $ SPA or APA Mergers & Acquisiyons Grid
Borrow Recurring Outsourced Recurring Revenue Affiliate Offers
LEVERAGE
DISCOVERY +
DISTRIBUTION
The High Cost Of Customer Acquisition
Customer Acquisition Cost
Consumer Goods
Construct ion
Manufacturing
Transportation
Prof. Serv. Consulting
Healthcare
Marketing Agency
B2C
Non-Profit Edu
Financial
Tech Hardware
PR Medi a
Real Estate
B2B
Banking
Telecom
0 50 100 150 200 250 300 350

© Roland Frasier
OPP = Other People’s Pla•orms

One Lisyng Built
€31B Company
Successful Leveraged Virality Plays…
Dropbox, Uber, Harry’s, Groupon,
Blue Apron Used Bribes
One Plus, Naked Wines + Gmail
Used A Waiting List + Invites
Etsy, Udemy, Tinder Used Live Events
Facebook, Lyft + Yelp Used Geo-
Launch + Data-Informed Expansion
5-80-5 MRR

INSIGHT #1

Static = 1X
MRR = 4X-5X!
Valuation @ €531K/Month
Static €6.4M
MRR €31.9M
€25.5MM More!
What Stayc
Income Can We
Convert To MRR?
€4.8M Into
€23.9M
How We Did It…
#1: End A-La-Carte Trainings
#2: Focus… Grow Existing MRR
#3: Convert Non-MRR Into MRR
How You Can Do This…
#1
Convert 1X Payments
To MRR
Rent The Runway: Fashion Subscription
Cadillac BOOK: Automobile Subscription
Apple iPhone: Cell Phone Subscription
Convert 1X To MRR… Lori Taylor: TruDog
1X To MRR… Vital Choice Seafood
Add MRR (Supplements) To Non-MRR (Seafood)
#2
Add MRR Services
Add MRR Services… Michael Parrella: I Love Kickboxing
#3
Turn 1X Sales Into
A SaaS Or Box
Add MRR Services… Ezra Firestone: One Click Upsell
Add MRR Services… Digital Marketer DMHQ
#4
Memberships, Associations
+ Buyer’s Clubs
Add Membership Upsells To Funnels

Add Associayon Upsells To Funnels

Add Buyers Club Upsells To Funnels

Stack All 3 Together

#5
Add Product + Service
Certifications Or Licenses
Course Related Ceryficayons… DigitalMarketer.com

Training Related Ceryficayons… Bikram Yoga

Product Related Certifications… Underwriters Labs

MRR Step-By-Step

MRR Step-By-Step Example

5-80-5 E2P
INSIGHT #2

LET THEM
LAUGH
November
2006
NET SALES PROFIT
€125B €6.4B
€58.3B €-1.9B
€22.7B €6.6B
AWS AWS
INT INT
NA NA
© 2019 Roland Frasier Source: Amazon 2018 Annual Report
PROFIT
€6.4B
AWS EARNED €-1.9B
11.6X THE PROFIT
MARGIN ON €6.6B
87.6% LESS REVENUE AWS
INT
NA
© 2019 Roland Frasier Source: Amazon 2018 Annual Report
How Can We
Turn Expenses To
Profits?
€43,400
Content Team
€283K Revenue
Bonus… It’s MRR
€80,616 Profit
#1: Identify Your Biggest Expenses
#2: Convert To Profit Centers?
#3: Offer Each As A New Product
Or Service
E2P…

E2P… Example

STEPS 4/5: PROCESSES & SYSTEMS

5-80-5 BOB

Bolt-On Business

#1: Identify Your Superpowers
#2: Who Has Your Customers?
#3: Match SPs To Their Needs
BOB 5X Lead Multiplier… Example

BOB 5X Lead Mulyplier… Example

CO-BRAND WITH
PRODUCT
INTEGRATION
PARTNERSHIPS
EO San Diego
EXERCISE

EXERCISE

ACQUISITION
FOR GROWTH
BUY +vs SELL
HOLD
Structure For A Bigger Exit
X-SDC/SDE X-EBITDA X-Revenue
Revenue €5,000,000 €5,000,000 €5,000,000
Profit €1,000,000 €1,000,000
Mulyple 1 7 7
Cash To Seller €1,000,000 €7,000,000 €35,000,000
Same #s… Very Different Results

4
Steps To Acquire
For Growth
Step 1: Decide Which
Types Of Businesses To
Acquire

TEAM +
RESOURCES
MEDIA SERVICE
VENDORS
CORE
BUSINESS
IP PRODUCT
VENDORS
SUPPLY +
DISTRIBUTION
TEAM
MEDIA SERVICE
VENDORS
IDEA
INCUBATOR
IP PRODUCT
VENDORS
SUPPLY +
DISTRIBUTION
MEDIA M___= RESOURCES M=
___ SERVICES M___=
__________ _________________ __________
__________ _________________ __________
__________ __________
__________ __________
__________ M=
__________
CORE BUSINESS ___
IP M=
___ PRODUCT M___=
______________ __________
______________ SUPPLY + DIST. M___= __________
______________ _________________ __________
______________ _________________ __________
______________
RolandFrasier.com
__________
WAR ROOM 10/18
MEDIA M___= RESOURCES M=
___ SERVICES M___=
__________
Website _________________
Affiliates, Customers, __________
Financial
__________
Blog _________________
SOPs, Ops/Dev Team __________
Business
__________
Facebook Group __________
Publishing
__________
Instagram Page __________
Advertising
__________
YouTube Acct. __________
Brokerage
CORE BUSINESS
M=
___
IP M=
___ PRODUCT M___=
______________
Patent __________
Related
______________
Customer List SUPPLY + DIST. M___= __________
Upsell/Downsell
______________
Trademark _________________
Manufacturer, Supplier __________
Cross-Sell
______________
Software _________________
Distributor, Retail Site __________
Substitute
______________
Copyright
RolandFrasier.com
__________
Complementary
WAR ROOM 10/18
Step 2: Buy Businesses For
Nothing Down
Owner Carry Split Equity
Earn-Out SLiP
Swaps Base-Line
ABL Pipe Wrench
Buy A €25M Company For €0
€25M Ask For Established Major Media Brand
€10M For 75% Instead Of €25M For All
€2M Down + €8M Financed From Cash Flow
€2M Sell 15% To Non-Competing Partner
Own 60% For €0 Out Of Pocket
Step 3: Find The Exit
Mulyple For Each Profit
Center

Revenue Mulyples By Industry 2018
Industry
Determines
Valuation
What Business
Are You In?
What
Valuation?
Source: Stern.NYU.edu
MEDIA 2-5x M=
RESOURCES M=
1-2x SERVICES M31x=
__________
Website _________________
Financial
__________
Blog _________________
Business
__________
Publishing
__________
Advertising
__________
YouTube Acct. M=
__________
Brokerage
CORE BUSINESS .9x
IP M=
2-8x PRODUCT 1-3xM=
______________
Patent __________
Related
______________
Customer List SUPPLY + DIST. 1-3x M= __________
Upsell/Downsell
______________
Trademark _________________
Cross-Sell
______________
Software _________________
Substitute
______________
Copyright
RolandFrasier.com
__________
Complementary
WAR ROOM 10/18
Step 4: Reposition Towards
The Highest Exit Multiple

Which Exit Mulyple Creates
The Greatest Exit Value?
Industry Mulyple Industry Multiple
Edu. Services 1.45 R.E.I.T 11.43
Publishing .91 Diversified 2.64
Business Services 1.83 Finance Services 31.81
So~ware/Internet 6.76 Retail Internet 2.99
Total Market = 2.89
Up To 30.9X Higher Valuation!
MEDIA 2-5x M=
RESOURCES M=
1-2x SERVICES M31x=
__________
Website 3rd
_________________
Financial1st
__________
Blog _________________
Business
__________
Publishing
__________
Advertising
__________
YouTube Acct. M=
__________
Brokerage
CORE BUSINESS .9x
IP M=
2-8x PRODUCT 1-3xM=
______________
Patent 2nd __________
Related
______________
Customer List SUPPLY + DIST. 1-3x M= __________
Upsell/Downsell
______________
Trademark _________________
Cross-Sell
______________
Software _________________
Substitute
______________
Copyright
RolandFrasier.com
__________
Complementary
WAR ROOM 10/18
Increased Valuayon From
Reposiyoning The Business
2014 2019
Publishing REIT + Software
Multiple = .91 Multiple = 7.73
684%
Buy + Sell For Wealth
Step 1: Decide What To Buy
Step 2: Buy For Nothing Down
Step 3: Choose An Exit Mulyple
Step 4: Reposiyon For Exit
EV Acquisiyon Arbitrage:
Acquire Low Mulyple Enyyes
With Your Higher Mulyple
Business

Thank You!

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The 1kX Matrix: How To

Radically Grow Any Business

© 2019 Roland Frasier

* $10MM+ | ** $100MM+ | *** $1B+ © 2019 Roland Frasier

1. Build Revenues 2. Build Profits 3. Build Value

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier

Identify and define your

© 2019 Roland Frasier

Break down the problem into

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier

Mexican Beer Netherlands Japanese Beer

© 2019 Roland Frasier

© 2019 Roland Frasier

2013 Survival Life 3MM Preppers Base

2015 Survival Life 40MM Campers 13x Increase

2017 Native Commerce 141MM Outdoor Sports 47x Increase

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier

Debt + Equity Recap

© 2019 Roland Frasier

2. ____________________ 2. ____________________ 2. ____________________ 2. ____________________

3. ____________________ 3. ____________________ 3. ____________________ 3. ____________________

4. ____________________ 4. ____________________ 4. ____________________ 4. ____________________

5. ____________________ 5. ____________________ 5. ____________________ 5. ____________________

Innovation Quality Experience Segmentation

2. ____________________ 2. ____________________ 2. ____________________ 2. ____________________

3. ____________________ 3. ____________________ 3. ____________________ 3. ____________________

4. ____________________ 4. ____________________ 4. ____________________ 4. ____________________

5. ____________________ 5. ____________________ 5. ____________________ 5. ____________________

© 2019 Roland Frasier

© 2019 Roland Frasier

With Passengers Drivers Rent Car Space

Volume Referral Fee For New

Time of Day Premium

© 2019 Roland Frasier

People Want Membership

Low Price: Tripwire Value Based Free + Ad Supported

Cost + or X Cost: Upsells Tiered: Membership

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier

Holding Ops #1 Ops #3 Cap

Partners Holding Co. Main Bus/MP Ops (Geo) Cap Table #3

© 2019 Roland Frasier

SANDBOX DANCING BEAR

© 2019 Roland Frasier Opportunity To Exit

© 2019 Roland Frasier

SANDBOX DANCING BEAR

© 2019 Roland Frasier Opportunity To Exit

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier

© 2019 Roland Frasier #War Room April 2019

© 2019 Roland Frasier #War Room April 2019

* $10MM+ | $100MM+ | * $1B+ © 2019 Roland Frasier

2. 2. 2. 2.

3. 3. 3. 3.

4. 4. 4. 4.

5. 5. 5. 5.

2. 2. 2. 2.

3. 3. 3. 3.

4. 4. 4. 4.

5. 5. 5. 5.

1. ___________________

2. ___________________

3. ___________________

4. ___________________

5. ___________________

6. ___________________

1. ____________________________________ _ ___

2. ____________________________________ _ ___

3. ____________________________________ _ ___

4. ____________________________________ _ ___

5. ____________________________________ _ ___

6. ____________________________________ _ ___