Can I Save This Failing Park in 90 Days? | Ep 1008

Alex Hormozi (0:00)

Bankrupt, as in zero dollars in his bank account. That's what this business owner just approached me with. That's gonna happen within weeks, not months or years, weeks. And he's gonna have to sink his entire life savings into it just to keep it going to the end of the year. And so I'm gonna sit down with Paul to help him fix his adventure park that he's already sunk $22 million in, which is absolutely insane. And I'm gonna give you a step-by-step road map on exactly what he needs to do to fix the business, and we're gonna check back in within 90 days from now to see A, is he still alive, and B, did the business get fixed. But most importantly for you, if you're a business owner, I've scaled 10 businesses to 10 million dollars in revenue, 3 to 100 million dollars plus. And I think the biggest lesson I've learned in this entire process is the tactics and principles that apply to this business apply to many businesses because businesses behave in patterns. So with that being said, let's dive into the business.

SPEAKER_2 (0:43)

What's happening, everybody?

Alex Hormozi (0:44)

So Paul, you ready?

Paul Fontanelli (0:45)

Oh, I'm ready.

Alex Hormozi (0:46)

All right, so tell me about the business.

Paul Fontanelli (0:48)

Yeah, my name is Paul Fontanelli, founder of Boulder Adventure Park. We are indoor family entertainment center in Grand Prairie, Texas. The story actually started eight years ago.

I dreamed it up. I was working in corporate America, kind of uninspired at the time, wanted to do something entrepreneurial. I have three young kids, wanted to get out of that and build a business.

Alex Hormozi (1:08)

And how much did you raise?

Paul Fontanelli (1:10)

Raised eight, total cost is 22 million.

Alex Hormozi (1:13)

Did you put the rest in?

Paul Fontanelli (1:15)

I put, well, raise eight, the rest is debt.

Alex Hormozi (1:17)

Got it. Who paid for the debt?

Paul Fontanelli (1:20)

Bank.

Alex Hormozi (1:20)

Oh, shit.

Paul Fontanelli (1:21)

Yeah.

Alex Hormozi (1:21)

It's a big loan.

Paul Fontanelli (1:22)

It is a big loan. That's part of what we're going to talk about today.

Alex Hormozi (1:24)

Yeah, I know.

Paul Fontanelli (1:25)

We will.

Alex Hormozi (1:26)

All right. So how does this thing make money?

Paul Fontanelli (1:29)

So we're 4.8. We're not profitable yet. That's one of our biggest challenges is the profitability of it. Our goal is to get to 10 million revenue over the next few years. But what's really the goal, what we need to talk about today is the next 90 days.

So I'll come back to that, but that's a really big piece of what we're doing today. Streams of revenue. This is the money slide literally. Yeah.

General admission, $32.46 per person with another $11 of impact spend. They add on arcade, food and beverage, merchandise, you name it. This makes up about 70 percent of total revenue. Then we have a bunch of other groups in terms of church groups, social groups, etc. And then we literally just launched our summer camp campaign today. I assume one of the biggest things Alex is going to help me work on is data and metrics I'm not crystal clear on at the moment. This is the, take my medicine slide. I own this. I don't make excuses. The numbers that your team was asking help me prepare and realize where some of our deficiencies are.

Alex Hormozi (2:31)

Yeah. It's really interesting for you because from a business perspective, it's like you're looking at outputs, not inputs. So these numbers are inputs that create the outputs that you're accustomed to tracking. Because the core economic arbitrage of the business is LTVCAC.

That's the core arbitrage that we expand out and then we just do it to infinity. So we actually start making a profit. Okay. Well, good to know.

Paul Fontanelli (2:52)

So problems. The bad is we are demand constrained, right? But the good news is we can 10x the opportunity. Capacity is absolutely there. As you can see, peak day is running at 50 percent of capacity, but emissions are down. We've had struggles with marketing, conversion rates, all of that is really been one of our challenges. And here's the final shit sandwich. We are cash constrained. I'm at the point now I'm putting my 401k in, which I believe in this business, I believe in the upside, I believe in this opportunity.

And so I'm all in, which actually leads me to the next slide. This literally hit me yesterday, dude. And I was like, heard.

You come, you fight for your life. You said earlier, we have nine lives, right? I might be towards the end, but I'm here and I believe in it. And I know we've got the upside to to make it happen.