WEBVTT 1 00:00:00.000 --> 00:00:03.920 Most people who've made millions started with something that got them a hundred grand 2 00:00:03.920 --> 00:00:09.200 And I will tell you personally the first hundred thousand dollars that I put in my bank account was by far the most meaningful 3 00:00:09.200 --> 00:00:11.200 That of all the money that I've made in my life 4 00:00:11.400 --> 00:00:14.320 Welcome to the game where we talk about how to get more customers how to make more 5 00:00:14.320 --> 00:00:18.080 Procure and how to keep them longer and the many failures and lessons we have learned along the way 6 00:00:18.080 --> 00:00:20.080 I hope you enjoy and subscribe 7 00:00:20.160 --> 00:00:24.800 What's going on everyone? I've got a special podcast episode for you today 8 00:00:25.600 --> 00:00:30.880 What I want to break down is a conversation I was having with a different friend about how a hundred thousand dollars 9 00:00:30.880 --> 00:00:32.880 Is the hardest amount of money to make 10 00:00:33.680 --> 00:00:36.800 And I was actually talking to him he's he's starting his physical therapy 11 00:00:37.600 --> 00:00:39.600 Clinic practice right now 12 00:00:40.320 --> 00:00:43.360 And he's he's he's you know he's eating shit for lack of better term 13 00:00:43.360 --> 00:00:45.600 You know what I mean like he's just he's just trying to figure this out 14 00:00:46.320 --> 00:00:50.480 And the thing is is that a hundred thousand dollars is the hardest amount of money to make for a variety of reasons 15 00:00:50.480 --> 00:00:53.120 And that's not me. I'm not the first person to say that Charlie Munger said 16 00:00:53.600 --> 00:00:57.600 Who's Warren Buffett's business partner said the first hundred grams of bitch even says that 17 00:00:58.160 --> 00:00:59.760 It's a quote you can look it up 18 00:00:59.760 --> 00:01:04.320 But anyways and and there's there's a bunch of reasons why and so I wanted to kind of walk through it 19 00:01:05.120 --> 00:01:10.240 The first is the the biggest one which is that when you're when you set the goal of a hundred thousand dollars 20 00:01:10.240 --> 00:01:12.560 You only think of a hundred thousand dollar opportunities right 21 00:01:13.200 --> 00:01:15.200 And what I mean by that is 22 00:01:15.360 --> 00:01:18.000 You're not like if I were to say hey you need to make ten million dollars 23 00:01:18.640 --> 00:01:22.400 You can't hundred grand your way times a hundred to get there right 24 00:01:22.480 --> 00:01:27.600 You have to think of a different way of operating of doing business in order to make ten million dollars right 25 00:01:27.600 --> 00:01:31.200 Because at that point you know you can't sell your time like it's not gonna work right 26 00:01:31.200 --> 00:01:33.200 You have to do something else 27 00:01:33.200 --> 00:01:38.160 And so inherently when someone puts the constraint of I want to make a hundred thousand dollars on themselves 28 00:01:38.160 --> 00:01:43.040 Then they automatically only can try to confine themselves to vehicles where they have to sell time for money 29 00:01:43.280 --> 00:01:46.000 Right which are inherently constraining which is why it's a bitch right 30 00:01:46.000 --> 00:01:49.040 It's hard because you literally have to sell your time in order to do it 31 00:01:49.120 --> 00:01:51.840 That being said most people who've made millions 32 00:01:51.840 --> 00:01:56.480 Started with something that got them a hundred grand and I will tell you personally the first hundred thousand dollars 33 00:01:56.480 --> 00:02:00.960 That I put in my bank account was by far the most meaningful that of all the money that I've made in my life 34 00:02:01.440 --> 00:02:02.240 um 35 00:02:02.240 --> 00:02:06.480 I remember when I looked at Layla and I had a hundred thousand dollars in my bank account after everything 36 00:02:06.880 --> 00:02:07.680 um 37 00:02:07.680 --> 00:02:09.680 I remember looking her and saying 38 00:02:09.680 --> 00:02:10.880 It's gonna be okay 39 00:02:10.880 --> 00:02:15.280 We've got three and a half years of money now that if we mess up for three and a half years 40 00:02:15.440 --> 00:02:17.280 We'll still will still be all right 41 00:02:17.280 --> 00:02:22.800 And I remember feeling that that sense of relief and the reason that I think it was so impactful is that difference between zero 42 00:02:22.800 --> 00:02:27.200 Or let's say the difference mean a thousand dollars in your bank account a hundred thousand dollars is a hundred x increase 43 00:02:27.920 --> 00:02:32.560 For me to have that same hundred x increase I'd have to go from a hundred thousand ten million in my bank account to have the same 44 00:02:32.800 --> 00:02:33.840 proportional 45 00:02:33.840 --> 00:02:35.840 increase in terms of security 46 00:02:35.920 --> 00:02:38.160 And I'll tell you even after I ten million dollars in my bank account 47 00:02:38.160 --> 00:02:41.920 I was like it still didn't feel as good as the first hundred grand all right 48 00:02:42.000 --> 00:02:45.680 And so it doesn't matter where you're at like I'll tell you if it's hard right now 49 00:02:45.760 --> 00:02:47.520 It's normal. It's supposed to be hard 50 00:02:47.520 --> 00:02:53.040 But it will get better because you're going to start thinking differently all right now back to the original a topic of why 51 00:02:53.120 --> 00:02:57.520 A hundred thousand dollars the hardest money to make first is you think of time vehicles time for money vehicles 52 00:02:58.080 --> 00:03:00.560 The second is that you have no leverage all right 53 00:03:00.800 --> 00:03:08.000 So what I mean that is that inherently all businesses arbitrage right you're buying and selling things at less and you're making the difference right 54 00:03:08.080 --> 00:03:13.280 If you're in a service business. I'm buying people's labor and I'm selling it at a higher price to the marketplace 55 00:03:13.280 --> 00:03:17.280 Because I see the discrepancy between that and I can add value to a person by training them in certain ways 56 00:03:17.280 --> 00:03:22.320 Or putting them inside of a system and then the sum of the individuals or sorry the sum of the whole is greater than parts right 57 00:03:23.120 --> 00:03:24.720 That's essentially what it is 58 00:03:24.720 --> 00:03:30.880 But when you don't have money you have no leverage on anything and so you have to do everything yourself 59 00:03:31.200 --> 00:03:34.960 And so again, it takes tons of time to get small amounts of output 60 00:03:35.280 --> 00:03:37.840 And so because of that you're really inefficient right 61 00:03:38.080 --> 00:03:40.880 Because you have to and you also have to wear all of the hats 62 00:03:40.880 --> 00:03:47.600 You have to learn every aspect of the business in order to really turn the first dollar and that takes time and it takes effort 63 00:03:48.400 --> 00:03:50.960 A lot more effort than you think it will right 64 00:03:51.760 --> 00:03:57.120 And then once you finally figure out how to make the first dollar you have to keep repeating that action over and over and over and over again 65 00:03:57.120 --> 00:03:59.520 Until you have you know a hundred thousand dollars in your bank account 66 00:03:59.680 --> 00:04:01.680 But once you have that 67 00:04:01.760 --> 00:04:07.920 You can start paying people to do things you can start paying for you know advertising and and you're not worried 68 00:04:08.000 --> 00:04:12.960 About paying your rent or and and what happens is you now start having the big L word right which is leverage 69 00:04:12.960 --> 00:04:18.320 You can you can you can move the world a lot faster because you can have 10 people doing up on for you 70 00:04:18.320 --> 00:04:21.120 You can pay a team to make advertising for you 71 00:04:21.120 --> 00:04:26.080 You can have a video setup or whatever that's going to get you a higher ROI or make your stuff look better and you get more 72 00:04:26.320 --> 00:04:28.320 You know you get more engagement or whatever right 73 00:04:29.040 --> 00:04:35.760 But the thing is is that that first hundred grand is so hard because the vehicles that exist for it require all your effort 74 00:04:35.760 --> 00:04:40.240 If you're doing sales right you're working all the time if you're doing a job you're working all the time 75 00:04:40.240 --> 00:04:43.840 If you're you know if you wanted to drive uber to make a hundred grand you probably worked 12 hours a day 76 00:04:44.240 --> 00:04:46.000 Uh, and it would require a lot of time 77 00:04:46.000 --> 00:04:52.160 But things is that once you do that though you can you can then start peace-mealing out pieces of your day 78 00:04:52.960 --> 00:04:58.400 And you do that in reverse order of the value that you can buy that same skill in the marketplace 79 00:04:58.480 --> 00:05:00.640 So let me let me dive into that for a second 80 00:05:00.640 --> 00:05:01.840 so 81 00:05:01.920 --> 00:05:05.120 Let's say that in your business you might be doing 15 different things 82 00:05:05.600 --> 00:05:08.560 But you might find out that the administrative work of scheduling 83 00:05:08.960 --> 00:05:12.400 Um, and answering the phone might be the least valuable it may be it may not be whatever 84 00:05:12.480 --> 00:05:16.880 But let's just say it is and let's say that the marketplace you can buy that skill for a $10 an hour 85 00:05:17.520 --> 00:05:21.040 And so what that means is you can get let's say four hours of your day back 86 00:05:21.520 --> 00:05:23.200 For $10 an hour 87 00:05:23.200 --> 00:05:28.080 And so now you have four more hours and if you can make more money in those four hours 88 00:05:28.080 --> 00:05:29.280 And this is a key point 89 00:05:29.280 --> 00:05:31.280 I see this one as a mistake too is uh 90 00:05:31.440 --> 00:05:33.440 People will outsource certain work that they're doing 91 00:05:33.440 --> 00:05:36.320 But they will not replace the time with higher value skill 92 00:05:36.320 --> 00:05:40.160 So that then they basically just pay people and then stop working and make the same amount of money 93 00:05:40.160 --> 00:05:41.600 Which can be cool 94 00:05:41.600 --> 00:05:48.080 But if you want to grow then you're going to need to continue to work and just do higher and higher and higher value higher leverage time 95 00:05:48.240 --> 00:05:50.080 In the time that you buy back right 96 00:05:50.960 --> 00:05:55.360 But fundamentally when you think about your business as what what would it take for me to make a million dollars 97 00:05:55.360 --> 00:05:59.360 What would it take for me to make ten million dollars you think of different vehicles in order to get there 98 00:05:59.360 --> 00:06:00.880 And if you don't know of the vehicles 99 00:06:00.880 --> 00:06:05.600 I would highly highly encourage you to look at the vehicles that already exist 100 00:06:05.600 --> 00:06:08.320 So like one of the things that's here here's an interesting nugget for you 101 00:06:08.800 --> 00:06:12.640 There's no reason for anyone in the United States to make less than $25 an hour 102 00:06:13.280 --> 00:06:18.400 Why because in one day you can go through a certification and become a philbotomist to make $25 an hour 103 00:06:18.880 --> 00:06:23.280 So who wouldn't take a one-day education to triple their income for minimum wage 104 00:06:24.160 --> 00:06:28.240 Who wouldn't do that the reason people don't do it is because they don't know people are ignorant 105 00:06:30.480 --> 00:06:35.680 Hey guys love that you're listening to the podcast if you ever want to have the video version of this 106 00:06:35.680 --> 00:06:39.360 Which usually has more facts more visuals more graphs, you know drawn out stuff 107 00:06:39.680 --> 00:06:42.800 Sometimes it can help hit the brain centers in different ways 108 00:06:42.800 --> 00:06:45.600 You can check on my youtube channel. It's absolutely free to check that out 109 00:06:45.600 --> 00:06:48.320 If that's what you are into and if not keep enjoying the show 110 00:06:48.640 --> 00:06:55.360 Right and so if you're watching this and you didn't know that that that even existed 111 00:06:55.360 --> 00:06:58.400 There are so many other opportunities that are like that 112 00:06:58.400 --> 00:07:01.280 That you can immediately get more leverage on the time just as you're starting 113 00:07:01.280 --> 00:07:03.840 So if you're if you're working a job and you're not making that 114 00:07:03.840 --> 00:07:08.800 Well then go find go find small opportunities go find little many certifications that you can get that qualify you 115 00:07:09.520 --> 00:07:13.440 For now that's only get a certificate if it's required if it's just like this is a certain don't worry about it 116 00:07:13.440 --> 00:07:16.800 But like if if you can find these little opportunities 117 00:07:16.880 --> 00:07:20.480 You know like I'll tell you for me my plan B of like if my business was going to fail 118 00:07:21.040 --> 00:07:25.280 I knew that what I was going to do was I was going to drive Uber and I was going to strip at night 119 00:07:25.440 --> 00:07:30.560 That was going to be my 100% my my gig because I knew that if I drove Uber 12 hours a day and I strip for four hours 120 00:07:31.120 --> 00:07:33.120 Every night I would be able to make about 200 grand 121 00:07:33.760 --> 00:07:38.960 And I knew that even though I started zero I could do that again and try and try and get another do over right 122 00:07:39.280 --> 00:07:45.360 And the thing is is that as your skill set increases right the base level of your building as I like to consider it 123 00:07:45.360 --> 00:07:50.400 Like this is your building of skills the base level your basement continues to rise right 124 00:07:50.560 --> 00:07:52.720 And so the level that you can fall down to 125 00:07:52.720 --> 00:07:57.200 Continues to go be higher and higher right and so once I learned how to sell 126 00:07:57.360 --> 00:08:03.360 I knew that I would never really make less than 250,000 a year because I knew I could always go to a car dealership and sell cars 127 00:08:03.600 --> 00:08:06.800 No matter what I could go sell cars make 200 300 400 thousand a year 128 00:08:07.520 --> 00:08:10.880 I knew that because I had that skill and that means that from this point going forward with my life 129 00:08:10.880 --> 00:08:12.880 I'll never make less than that right 130 00:08:12.960 --> 00:08:16.240 But then I learned how to market and then as soon as I learned how to market 131 00:08:16.240 --> 00:08:20.400 I knew that that was going to be my because now I could take my sale skill and pair it with marketing 132 00:08:20.560 --> 00:08:22.960 And then I could generate demand at will right 133 00:08:23.600 --> 00:08:26.240 And then that means that my new level might be three million dollars a year 134 00:08:26.240 --> 00:08:30.720 That I'll never make less than because I have the skills that even if I have to start over I can end there 135 00:08:30.960 --> 00:08:35.520 And the thing is is that if you think about your your journey as an entrepreneur in terms of the 136 00:08:35.920 --> 00:08:41.200 As a skill set stacking all you're doing is acquiring skills and putting your back pocket put it in your toolkit 137 00:08:41.200 --> 00:08:46.000 Right then you inherently become more valuable and you stop seeing your failures as failures 138 00:08:46.160 --> 00:08:49.040 But rather lessons on the way to where you're trying to go 139 00:08:49.200 --> 00:08:53.600 Because you inherently become more valuable because your work works on you more than you work on it 140 00:08:54.240 --> 00:08:58.160 All right, I'll say that again your work works on you more than you work on it 141 00:08:58.240 --> 00:09:01.760 And so even if you didn't make a hundred grand the first year that's okay because you developed the 142 00:09:01.840 --> 00:09:06.240 The foundational skill sets that maybe got you above 50,000 a year right 143 00:09:06.240 --> 00:09:10.880 But as long as you were continuing to acquire skills that baseline will will go up 144 00:09:11.200 --> 00:09:15.680 And the speed with which you move up will be how much volume you do 145 00:09:16.080 --> 00:09:22.960 So volume of work for a specific skill with deliberate effort will improve your skill set now 146 00:09:23.360 --> 00:09:26.800 You can do it faster or slower depending on how quickly you learn the skill 147 00:09:26.960 --> 00:09:30.400 But you still have to learn it and there's usually a certain amount of volume that has to happen 148 00:09:30.400 --> 00:09:32.240 Which means that there's some amount of time 149 00:09:32.400 --> 00:09:36.400 But then how do some people acquire skills faster than others some people are more deliberate with their practice 150 00:09:36.640 --> 00:09:41.680 Some people get mentors and experts that feed into them every valuable skill that I've acquired in my life 151 00:09:41.680 --> 00:09:44.160 I've paid someone to acquire so I can get it faster 152 00:09:44.160 --> 00:09:49.360 All right, and so if you're like why don't have money then do the high value do the do the leverage do the shitty work now 153 00:09:49.360 --> 00:09:54.880 Do the first hundred thousand dollar that's a bitch do that work now you have to trade some of your your life for money 154 00:09:54.880 --> 00:10:00.000 And that's okay, which is why I was saying which is you can you can't be busy and broke right you can't be both 155 00:10:00.400 --> 00:10:02.640 If you're busy you should be making money, right 156 00:10:03.440 --> 00:10:08.400 And if you're broke you're not busy, which means you've got time so you can always trade back and forth time for money 157 00:10:08.640 --> 00:10:10.480 Right if you have more money then 158 00:10:11.280 --> 00:10:15.200 And but you're busy all the time then you can trade some of that money back to buy some time back right 159 00:10:15.280 --> 00:10:18.000 But you can't be busy and broke all right to think about that 160 00:10:18.240 --> 00:10:22.240 And if you feel like you are busy and broke I guarantee you're wasting a lot of your time. So anyways 161 00:10:23.200 --> 00:10:28.480 To ring this full circle a hundred thousand dollars is by far one of the hardest amounts of money to make because we think about it 162 00:10:28.720 --> 00:10:32.080 Only in time vehicles and for many of us it's the first thing you have to do 163 00:10:32.080 --> 00:10:35.280 So just bite the bullet go do it and then after that you can start 164 00:10:35.760 --> 00:10:39.600 Leveling up your skill set you can pay for skills you can pay for 165 00:10:40.480 --> 00:10:44.720 For for things to happen faster for you can pay for other people to do some of the lower value work 166 00:10:44.960 --> 00:10:47.040 That you're doing because they're earlier on in their journey 167 00:10:47.120 --> 00:10:49.600 So you can buy their time that's less valuable than yours 168 00:10:49.760 --> 00:10:54.880 And you continue to work up and build the foundation of that building that eventually becomes a skyscraper of your skills 169 00:10:55.120 --> 00:11:00.960 And then you'll have the perspective to identify the 10 million the 100 million the billion dollar opportunities 170 00:11:01.200 --> 00:11:04.720 And go all in on them because at this point you'll have the skill set to make it happen 171 00:11:04.960 --> 00:11:08.400 So anyways hope that was valid before you hope you're having an amazing day 172 00:11:08.880 --> 00:11:10.880 Uh, and I'll see you next day. Bye