lets talk profit

growing and going broke

Last month I got on a call with a founder named Marcus.

Runs a service business. $8K a month on ads. Revenue climbing every quarter.

By every metric on Instagram, he was winning.

But he opened the call with a sentence I'll never forget:

"Dez, I'm growing and going broke at the same time."

More clients than ever. Bigger team than ever.

And less cash in the bank than a year ago.

He thought he had an ads problem. Maybe a pricing problem.

So I asked him one question:

"What's a client actually worth to you?"

Silence.

Then: "Honestly… I don't know. Good money?"

That was the whole diagnosis, right there.

Marcus wasn't running a business. He was driving 90 on the highway with the windshield painted black.

Foot on the gas. No idea what was coming.

So we did something boring.

No new funnel. No new offer. No creative refresh.

We opened a blank doc and found 3 numbers.

First, what a client cost him.

We added up everything — ad spend, software, his closer's commission, his own hours.

$6,200 to land one client.

He'd been guessing "two or three grand" for a year.

Second, what a client paid him.

His retainer was $1,500 a month, and clients stuck around about 7 months.

Total, over their lifetime: about $11,000. His ceiling.

But upfront, on day one? One month. $1,500.

There was the "going broke" part.

He was spending $6,200 to collect $1,500, then waiting 5 months just to break even.

Every new client made him poorer before it made him richer.

Growth wasn't fixing his cash problem. Growth WAS his cash problem.

Third, how many opportunities he actually needed.

He wanted to add $15K in monthly recurring revenue.

We worked backwards: at $1,500 a month, that's 10 new clients. His 1-in-4 close rate means 40 calls. His 1-in-3 booking rate means 120 leads.

His pipeline was producing 45.

He wasn't underperforming. He was under-fueled — and blaming the engine.

45 minutes. One blank doc. Three numbers.

Marcus went from "something's wrong and I don't know what" to a to-do list:

  • Cut CAC from $6,200 toward $4,500

  • Raise the upfront payment so day-one cash covers acquisition

  • Nearly triple lead flow before touching anything else

Three months later he texted me a screenshot of his bank balance with one word:

"Breathing."

Same offer. Same market. Same ads, mostly.

The only thing that changed is he stopped guessing.

Here's what I want you to take from Marcus:

You don't have a marketing problem until you've ruled out a math problem.

Most founders never rule it out. They just buy more traffic and hope.

So this week, open your own blank doc and answer what Marcus couldn't:

  • What does a client cost you — really, all-in?

  • What do they pay you over a lifetime, and what do they pay you on day one?

  • How many opportunities does your goal actually require each month?

If any of those makes you go quiet like Marcus did…

That silence is the most valuable thing you'll hear all year.

Let's win together,

Dez

P.S. Marcus's numbers took 45 minutes to find. They'd been costing him money for 3 years. The math is always cheaper than the mystery.