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Hey guys, welcome back to the game.

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Today's episode is a throwback city

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of one of our top episodes of all time.

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And so if you are new to the channel,

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then you will probably like it.

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It's tight on how to get ahead of 99% of entrepreneurs,

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but it's really a podcast about leverage,

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which is about the skills, beliefs, and traits required

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to get more for what you put in

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so that you can move faster towards your goals.

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And I think it's one of the better things to put out.

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So have a enjoy.

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One in every 250 businesses does over $10 million a year

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in sales.

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And that means that 99% of entrepreneurs never hit it.

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Every business that I started since I was 25

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has crossed 10 million B2B services with gym lawns,

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B2C consumer products with prestige labs

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or supplement company, Allen are B2B software

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in acquisition.com, which is an investment firm

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for all of the money that we made during those businesses

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to invest in other ones.

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It's really confident that I can talk to the points

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of helping you go from $0 million,

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to $10 million and beyond.

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And so this is just a visual put this in contact.

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90% of businesses never hit a million dollars a year in sales.

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90% doesn't look that way on Instagram,

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but this is the vast majority of businesses, right?

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Now, 9% of businesses across this million dollar threshold,

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right?

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And then only 0.4%, which is one in 250,

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do 10 million plus, it's so rare.

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And so the nice thing is that success does leave clues,

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but want to kind of separate this into two major categories.

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One is the entrepreneur,

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and the other is the opportunity vehicle they're pursuing.

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You'll notice I said leverage rather than opportunity vehicle,

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but fundamentally leverage is the difference in what you put in

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and what you get out.

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And so you want to have the best entrepreneur

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getting the most out of what they put in.

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And so if you have those two things together,

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then you create a $10 million plus business.

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And if you've consumed any of my other content,

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I used to talk about how entrepreneurs

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just three main things, you've got skills,

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you've got character traits, you've got beliefs.

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I've thought about this more,

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and I've actually simplified it to one degree,

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which is I think you just have skills and beliefs.

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Character traits, if you think about this,

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you're like, I want to become patient.

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Patient is just a general term for lots of little skills.

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And so if you want to become more patient,

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you want to do things that patient people do.

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And that means that if I can train someone to become more patient,

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then patience is a skill.

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And so as a total side quest on this,

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what's interesting about this is that you've probably heard people say

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soft skills and like hard skills.

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In my opinion, hard skills are just skills

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that are easy to measure.

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Soft skills are just hard to measure,

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but they're both 100% skills that you can train and improve.

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And so if we say, man, I wish that guy had better people skills.

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What we mean is 100 micro skills that are like,

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I wish he would smile when someone walked in the room.

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Can I train someone to do that?

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Absolutely.

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If I said, hey, I wish he would greet someone

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by their first name immediately every time they walk in the door, right?

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Boom, that's trainable.

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I wish someone wouldn't interrupt.

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It's like, okay, well, we can just give someone a cookie

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every time they don't interrupt someone

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and let someone finish their statement.

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And then we train them.

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And so all of these soft skills are just soft

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because they're hard to measure.

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Does it mean that they're not skills or they're not important?

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And oftentimes most of us know that like within an organization,

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like the way that you gain influence is the soft skills

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that are hard to measure, but incredibly important.

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So if we're talking about,

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how do we make the highest leverage entrepreneur?

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We want somebody who has lots and lots of skills.

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And really it's about beliefs that don't limit them.

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If someone had no limits in terms of what they believe

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they could achieve, then the only thing

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that would limit them was their skills.

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But most of the times, the beliefs that we have

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are things that just decrease our potential.

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And it's not really our fault

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because most of the people that were around us

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we grew up just by statistics were poorer than you might want to be.

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And so they told you how they see the world.

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If there's ever something that's going to be on my tombstone,

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it's this quote, which is, we question all of our beliefs

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except for those that we truly believe

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and those we never think to question.

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And so like the things that you actually believe,

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they're so invisible to you

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because that's just your lens through which you see the world.

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Whereas when you're like, oh, I want to debate this point,

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it's like you don't really believe that.

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You just have an opinion on it

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or you have some assumptions that you're willing to back, right?

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But the true beliefs of like, well, no one

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would be willing to pay for something like that.

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Or like that doesn't exist.

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I didn't know that was possible.

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You don't even question those things

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because they weren't even in your mind to begin with.

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It's the unknown unknowns that are the things that limit us.

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The question is, how do we uplevel someone's beliefs?

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So let me give you a quick example here.

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So there was an entrepreneur that I know

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who had a fitness app.

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He was a super high level crossfit games competitor

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and he started this app

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and he didn't want to tell anybody about it

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because he'd never placed top three.

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He placed fourth place in multiple competitions,

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which is insane.

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But he had a belief that if he wasn't the winner,

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he didn't deserve to have an app.

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Like, think about how crazy it is.

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But he didn't question that.

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That was just what he believed reality to be.

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It's like, well, of course, I wouldn't want it.

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And so he built this app for himself

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and just the members of his gym.

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But the app was so good that people started sharing it.

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And finally, a client of his was a marketer and said,

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you need to start marketing this.

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You need to start posting about it.

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And he wouldn't post.

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And finally, she convinced him to just make one post.

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And he doubled his revenue.

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He'd gone from like 20,000 to 100,000

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as well as a month with his app,

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simply because he changed his beliefs.

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And so like, fundamentally, he had all the skills.

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He was already a really good crossfit games competitor.

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He already had the product that was really good.

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And he already had the skills to be able to market it.

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He was just choosing not to.

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Unchaining an entrepreneur is figuring out

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the reasons they give for why they can't do something.

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Those are known limits, right?

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Well, I can't do it because of X.

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That's the things that you know

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because you can even explain it.

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I can't do it because I'm not number one.

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I can't do it because I'm not in good enough shape.

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I can't do it because the app doesn't load well enough.

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I can't do it because it's only on one platform.

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I can't do it because insert whatever, right?

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Now, the dangerous ones are the unknown unknowns, all right?

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My whole goal when I started my chain of gyms

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was that I wanted to be America's next gym.

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So I bought the trademark United Fitness.

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I was really proud of it.

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I had six locations.

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I joined this group of internet entrepreneurs.

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I might do this.

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The reason I think this is funny is because

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I was sold by the sales guy

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that there was other gym owners in the room

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and they were all doing well and doing stuff

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on the internet too.

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God in the room, not only were there no gym owners,

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there weren't even any brick and mortar business owners

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in the room.

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And so I was like, wow, this is a shock.

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And so everybody's going up there

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explaining their ads and their funnels

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and their upsell process and all this stuff.

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And I get up there and I'm like, I own six gyms.

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And I was like, but these are the ads

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I run to get members into my gyms.

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The thing is I gave this whole breakdown

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of everything I did and how I opened every location

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at full capacity on the first day without taking cash

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out of the pocket, all the stuff.

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And I remember the guy who was running the whole group.

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And I really looked up to this guy at that time

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because he was the first person who was way more successful

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than me that I actually had access to.

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And so I think at that point,

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he was doing a million dollars a month.

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And I remember thinking like, whoa, like.

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And so I go through this whole presentation.

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I'm talking as fast as I can,

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explaining all the stuff that I do.

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And he stops and he's like, Alex,

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I don't think you should be in the gym business.

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And I remember hearing that it was like time slow down

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because I felt like you like punched me in the gut

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because this was like my whole plan, my whole dream.

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This is what I was going towards.

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But I like paused and just like hurt him out.

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And he said, you have a level 10 skill set

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and a level two opportunity.

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I don't think you should be running gyms.

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I think you should be teaching people

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how to do what you just walk through.

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And I had to believe and I still do that.

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If someone's further along in the game of business,

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you always have things that you can learn from them.

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And if I paid to be in this room,

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if I don't take the advice,

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it's the closest thing to me burning all the money

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that I paid to be here.

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And so when he told me that to me,

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that was an unknown, unknown.

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I didn't know that there was another opportunity vehicle

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outside of me just owning gyms.

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Like I didn't know it was possible.

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So I hadn't thought like, I didn't know how franchise

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has worked, I didn't know how licensing worked,

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I didn't know how any of,

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I didn't know how to be to be national,

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any of that stuff worked.

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Now there were some skills that I would have

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to learn in order to enable it,

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but I couldn't even start on that skill path

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or see the deficiency of skills that I had

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because I didn't even think I could pursue it.

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And so these are the ones that in my opinion

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are the most powerful to overcome.

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It's the things that you didn't know were possible.

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I'll give you a different example.

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In Chain of Ferry's,

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which is one of our portfolio companies,

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amazing business,

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super successful single location.

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And the founder had an agency when he approached me saying,

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like, hey, I wanna do what you did with gym launch

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but with photography studios.

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And so we talked and we talked and we talked

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and his model was so good.

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I was like, I don't know, man.

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I think one of the things that I didn't have with gym launch

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is that I couldn't control delivery

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with photography who can control delivery.

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And so that means that we could actually centralize

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a lot of stuff.

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I was like, what if we just owned all of them

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with a hybrid model?

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We actually took the agency from what it was doing,

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which for most people watching this

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would be a very good business for you to zero,

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to start this next thing.

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We had such good rapport that he's like,

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if you really think so and we walk through the math,

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he's like, I mean, this makes sense

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but I'm gonna kill something that makes a lot of money.

260
00:09:06.280 --> 00:09:07.920
It's like, yeah, but I think it's gonna be,

261
00:09:07.920 --> 00:09:09.200
for some reason it's gonna make way more.

262
00:09:09.200 --> 00:09:11.480
And then for the next six months,

263
00:09:11.480 --> 00:09:14.240
we worked and tweaked the original model

264
00:09:14.240 --> 00:09:16.760
to get this new model off the ground.

265
00:09:16.760 --> 00:09:18.840
And 30 months later, that business

266
00:09:18.840 --> 00:09:20.200
has two and a half million a month

267
00:09:20.200 --> 00:09:22.280
with 30 plus locations because I said,

268
00:09:22.280 --> 00:09:23.680
let's just own it all.

269
00:09:23.680 --> 00:09:24.880
He didn't think that that was a model

270
00:09:24.880 --> 00:09:26.480
that was really available.

271
00:09:26.480 --> 00:09:29.120
And then as soon as we made that switch,

272
00:09:29.120 --> 00:09:29.880
everything took off.

273
00:09:29.880 --> 00:09:31.600
Even in my own personal story,

274
00:09:31.600 --> 00:09:33.480
when I switched from having my gyms

275
00:09:33.480 --> 00:09:36.640
to doing a done for you fly around the country model,

276
00:09:36.640 --> 00:09:39.600
that took the same skills that I had as an entrepreneur

277
00:09:39.600 --> 00:09:41.000
and put them in a better vehicle.

278
00:09:41.000 --> 00:09:43.800
And then, even from doing the gym turn around business

279
00:09:43.800 --> 00:09:47.360
for two years, I accidentally fell into the licensing model

280
00:09:47.360 --> 00:09:48.760
because I didn't wanna fly out.

281
00:09:48.760 --> 00:09:50.680
Somebody asked me if I could show them all the stuff

282
00:09:50.680 --> 00:09:52.320
that I did so they could do it for themselves.

283
00:09:52.320 --> 00:09:55.920
And then at that point, he bought it and it was all margin.

284
00:09:55.920 --> 00:09:58.240
And I was like, holy cow, this is insane.

285
00:09:58.240 --> 00:09:59.720
That's when everything took off like a rocket.

286
00:09:59.720 --> 00:10:01.760
And so I had my brick and mortar gyms

287
00:10:01.760 --> 00:10:03.480
and then I scaled to a done for you turn around business.

288
00:10:03.480 --> 00:10:05.440
And then I scaled to licensing

289
00:10:05.440 --> 00:10:07.720
and each of those were higher leverage opportunities.

290
00:10:07.720 --> 00:10:10.560
And it was because I didn't know as possible.

291
00:10:10.560 --> 00:10:12.400
And so once I learned that it was possible,

292
00:10:12.400 --> 00:10:15.240
that unlocked all of the potential value

293
00:10:15.240 --> 00:10:16.200
that my skills could have.

294
00:10:16.200 --> 00:10:18.480
Because fundamentally in every one of those examples,

295
00:10:18.480 --> 00:10:19.800
I knew how to do the same stuff.

296
00:10:19.800 --> 00:10:21.800
I knew how to market and sell for a local gym.

297
00:10:21.800 --> 00:10:23.480
I knew how to build them more profitably,

298
00:10:23.480 --> 00:10:24.800
create the workouts, the meal plans,

299
00:10:24.800 --> 00:10:26.360
all that kind of stuff that got people results.

300
00:10:26.360 --> 00:10:28.160
That's what I knew how to do.

301
00:10:28.200 --> 00:10:33.200
But at each level, when I went from gyms to turnarounds,

302
00:10:33.960 --> 00:10:36.840
the leverage increased from each of these things.

303
00:10:36.840 --> 00:10:39.400
And so the same skill set put into a new bucket

304
00:10:39.400 --> 00:10:41.920
or a new vehicle unlocked huge value.

305
00:10:41.920 --> 00:10:43.480
And that's why a lot of entrepreneurs

306
00:10:43.480 --> 00:10:45.320
don't get past a million,

307
00:10:45.320 --> 00:10:46.800
or even get to 10 million,

308
00:10:46.800 --> 00:10:48.320
it's that they're in the wrong vehicle.

309
00:10:48.320 --> 00:10:49.720
So I talk about leverage a lot.

310
00:10:49.720 --> 00:10:52.040
And it's actually one of the core concepts in our logo.

311
00:10:52.040 --> 00:10:53.400
So we have a supply demand curve

312
00:10:53.400 --> 00:10:54.680
and then we have the full chrome,

313
00:10:54.680 --> 00:10:56.160
which is the acquisition.com logo.

314
00:10:56.160 --> 00:10:58.040
And it's because it's core to everything we do.

315
00:10:58.040 --> 00:10:59.840
If you think about leverage,

316
00:10:59.840 --> 00:11:01.400
you've ever heard Archimedes, he said,

317
00:11:01.400 --> 00:11:02.480
give me a long enough lever

318
00:11:02.480 --> 00:11:03.760
and I can move the world.

319
00:11:03.760 --> 00:11:04.960
This is our lever.

320
00:11:04.960 --> 00:11:07.440
And we'll put our little hand here.

321
00:11:07.440 --> 00:11:08.960
That's my arm.

322
00:11:08.960 --> 00:11:12.080
If we grab the lever here,

323
00:11:12.080 --> 00:11:15.720
we have the most leverage on something that is here.

324
00:11:15.720 --> 00:11:17.720
If we grab the lever here,

325
00:11:17.720 --> 00:11:19.160
we sell the most leverage on something here,

326
00:11:19.160 --> 00:11:21.440
but we have less leverage overall

327
00:11:21.440 --> 00:11:23.760
compared to how much we have on this side.

328
00:11:23.760 --> 00:11:26.120
And the main difference here is

329
00:11:26.120 --> 00:11:28.680
how much force goes up the other side.

330
00:11:28.680 --> 00:11:30.600
All right, and so leverage is the difference

331
00:11:30.600 --> 00:11:33.800
between what you put in and what you get out.

332
00:11:34.880 --> 00:11:35.720
That's it.

333
00:11:35.720 --> 00:11:36.880
So let me give you an example in the real world.

334
00:11:36.880 --> 00:11:39.400
If you are really skilled at cold calling,

335
00:11:39.400 --> 00:11:41.840
skill itself is leverage.

336
00:11:41.840 --> 00:11:43.400
Because if somebody who doesn't have the skill

337
00:11:43.400 --> 00:11:46.080
makes 100 phone calls, that's their input.

338
00:11:46.080 --> 00:11:47.680
And somebody who does have the skill

339
00:11:47.680 --> 00:11:49.520
puts 100 calls down.

340
00:11:49.520 --> 00:11:51.840
And the guy who doesn't have the skill

341
00:11:51.840 --> 00:11:53.600
gets zero appointments set.

342
00:11:53.600 --> 00:11:54.920
And the guy who's amazing at it

343
00:11:54.920 --> 00:11:57.120
gets 10 appointments set.

344
00:11:57.120 --> 00:11:58.720
He has, well, let's just say the first guy

345
00:11:58.720 --> 00:11:59.960
had one for sake of math.

346
00:11:59.960 --> 00:12:03.560
He has 10 times the leverage on that skill

347
00:12:03.560 --> 00:12:04.680
compared to the newbie.

348
00:12:04.680 --> 00:12:07.640
Getting and acquiring skills gives you more leverage

349
00:12:07.640 --> 00:12:09.520
because it gets you more for what you put in.

350
00:12:09.520 --> 00:12:11.560
And so if you're more skilled entrepreneur,

351
00:12:11.560 --> 00:12:14.160
being a skilled entrepreneur is a big bucket

352
00:12:14.160 --> 00:12:17.080
for hundreds of smaller skills underneath of it

353
00:12:17.080 --> 00:12:18.520
because it means that you know how to prioritize

354
00:12:18.520 --> 00:12:19.360
what to do next.

355
00:12:19.360 --> 00:12:20.840
And so one of my favorite quotes about leverage

356
00:12:20.840 --> 00:12:22.760
comes from Warren Buffett, Uncle Warren.

357
00:12:22.760 --> 00:12:24.360
He and one of his closest friends graduated

358
00:12:24.360 --> 00:12:25.720
Columbia Business School at the same time,

359
00:12:25.720 --> 00:12:26.560
same year.

360
00:12:26.560 --> 00:12:28.480
And he said that guy was smarter and harder working than him.

361
00:12:28.480 --> 00:12:30.160
Now, they then went their separate ways.

362
00:12:30.160 --> 00:12:32.600
Warren ended up getting into investing with Ben Graham

363
00:12:32.600 --> 00:12:34.520
and his friend goes into the steel business.

364
00:12:34.520 --> 00:12:36.320
Because that was back in the day when like American steel

365
00:12:36.320 --> 00:12:38.560
was like a thing, which it really no longer is.

366
00:12:38.560 --> 00:12:39.680
What he learned from that experience

367
00:12:39.680 --> 00:12:43.120
is that he fast-forwarded 30, 40, 50 years.

368
00:12:43.120 --> 00:12:45.840
And he said his friend did okay.

369
00:12:45.840 --> 00:12:47.520
And he said, mind you, this is a guy who was smarter

370
00:12:47.520 --> 00:12:48.800
and harder working than him.

371
00:12:48.800 --> 00:12:51.040
He said he did okay, he did pretty well,

372
00:12:51.040 --> 00:12:53.440
but not close to what Warren did.

373
00:12:53.440 --> 00:12:54.800
And he said his biggest lesson from that

374
00:12:54.800 --> 00:12:56.720
was it's not about how hard you row.

375
00:12:56.720 --> 00:12:58.160
It's about what bow you're in.

376
00:12:58.160 --> 00:13:01.440
And I love that because it really encompasses

377
00:13:01.440 --> 00:13:05.720
the concept of leverage, which is Warren got more out

378
00:13:05.720 --> 00:13:09.120
for what he put in than his buddy in the steel business

379
00:13:09.120 --> 00:13:11.160
because the steel business had a lot of headwinds.

380
00:13:11.160 --> 00:13:12.280
A lot of things going against them.

381
00:13:12.280 --> 00:13:13.840
They had globalization to start it,

382
00:13:13.840 --> 00:13:15.920
started happening, you know, other imported steel

383
00:13:15.920 --> 00:13:17.480
that was cheaper from China, blah, blah, blah.

384
00:13:17.480 --> 00:13:21.240
And so those forces, he had to roll harder against the wind

385
00:13:21.240 --> 00:13:26.240
than Warren did while riding one of the best growth curves

386
00:13:26.320 --> 00:13:28.080
of the US economy overall.

387
00:13:28.080 --> 00:13:29.840
And so he got higher returns.

388
00:13:29.840 --> 00:13:34.680
And so over my career, I make more now than I did before

389
00:13:34.680 --> 00:13:37.720
because I've moved further back along this lever.

390
00:13:37.720 --> 00:13:40.400
So I have more leverage now on what I put in

391
00:13:40.400 --> 00:13:41.680
than what I did before.

392
00:13:41.680 --> 00:13:43.640
When I was selling one on one in person

393
00:13:43.640 --> 00:13:45.240
and I was doing 20 consults a day,

394
00:13:45.240 --> 00:13:48.320
I was working more hours probably than I do now,

395
00:13:48.320 --> 00:13:50.960
but I get so much more for what I put in.

396
00:13:50.960 --> 00:13:52.840
So I'm going to show you two triangles

397
00:13:52.840 --> 00:13:55.520
that show increasing amounts of leverage, all right?

398
00:13:55.520 --> 00:13:57.720
Now, one of these I have stolen ruthlessly

399
00:13:57.720 --> 00:13:59.120
from the Volrovicon, all right?

400
00:13:59.120 --> 00:14:01.360
And so he talks about the four types of leverage.

401
00:14:01.360 --> 00:14:02.840
I've renamed them so they're seized

402
00:14:02.840 --> 00:14:05.600
and it's mostly just so I remember them more easily.

403
00:14:05.600 --> 00:14:06.880
But you've got collaboration

404
00:14:06.880 --> 00:14:09.400
which just means other people working for you, all right?

405
00:14:09.400 --> 00:14:12.560
Then you've got capital, which means other people worked for you

406
00:14:12.560 --> 00:14:14.040
and gave you the fruit of their work

407
00:14:14.040 --> 00:14:15.480
so that you can invest it on their behalf.

408
00:14:15.480 --> 00:14:18.200
So for example, if I get people to give me a billion dollars,

409
00:14:18.200 --> 00:14:19.640
which I could do, just raise the money.

410
00:14:19.720 --> 00:14:21.280
And then I invest that money

411
00:14:21.280 --> 00:14:23.480
and I say I get 20% of the gain.

412
00:14:23.480 --> 00:14:25.960
I didn't have to work all the time to make a billion dollars,

413
00:14:25.960 --> 00:14:28.600
but I still get 20% of it, right?

414
00:14:28.600 --> 00:14:30.760
That's the idea of using leverage of other people's money.

415
00:14:30.760 --> 00:14:33.200
So capital, so you've got collaboration,

416
00:14:33.200 --> 00:14:35.640
capital, you've got code and content.

417
00:14:35.640 --> 00:14:38.520
If I'm a genius coder and I could build one piece of software,

418
00:14:38.520 --> 00:14:40.840
I can build it once and a million people

419
00:14:40.840 --> 00:14:42.800
can use that same piece of software.

420
00:14:42.800 --> 00:14:46.080
With content, Joe Rogan can make one podcast episode

421
00:14:46.080 --> 00:14:48.200
and millions of people can listen to it.

422
00:14:48.320 --> 00:14:51.800
And so he gets more for what he puts in, right?

423
00:14:51.800 --> 00:14:52.880
So if you think about each of these things,

424
00:14:52.880 --> 00:14:55.360
it's like you have the influence on someone else.

425
00:14:55.360 --> 00:14:57.440
I traded me selling for 40 hours a week

426
00:14:57.440 --> 00:14:59.320
to me managing a salesman for two hours

427
00:14:59.320 --> 00:15:03.360
who then sells for 40 hours a week or higher leverage.

428
00:15:03.360 --> 00:15:08.400
I spend a week or two weeks recruiting the best sales recruiter

429
00:15:08.400 --> 00:15:11.240
and then I do that one time in my life for two weeks.

430
00:15:11.240 --> 00:15:13.600
And then that sales recruiter works 40 hours a week

431
00:15:13.600 --> 00:15:16.560
to get new salespeople in every single week on my behalf

432
00:15:16.680 --> 00:15:18.960
and then those salespeople on my behalf

433
00:15:18.960 --> 00:15:20.520
then sell every single day.

434
00:15:20.520 --> 00:15:23.240
And so I did two weeks of work for a hundred salespeople

435
00:15:23.240 --> 00:15:26.280
over the lifetime of that one higher, more leverage.

436
00:15:26.280 --> 00:15:27.560
I get more for what I put in.

437
00:15:27.560 --> 00:15:29.680
Compare that to me taking 20 consults a day,

438
00:15:29.680 --> 00:15:32.920
higher leverage skill, but same concept done at scale.

439
00:15:32.920 --> 00:15:34.920
Capital, we went over code content.

440
00:15:34.920 --> 00:15:36.160
Those are the four types of leverage.

441
00:15:36.160 --> 00:15:38.840
Now, this is where this gets interesting because like,

442
00:15:38.840 --> 00:15:41.080
once I learned this, I was able to put words

443
00:15:41.080 --> 00:15:43.240
to what I kind of knew intrinsically

444
00:15:43.240 --> 00:15:44.960
and I can now explain it.

445
00:15:44.960 --> 00:15:48.440
So if you look at my career trajectory

446
00:15:48.440 --> 00:15:50.400
and one of the key points here is that

447
00:15:50.400 --> 00:15:52.480
you can actually just max out one of these things.

448
00:15:52.480 --> 00:15:53.920
So you don't need to have all four.

449
00:15:53.920 --> 00:15:55.440
Now, if you have all four, cool,

450
00:15:55.440 --> 00:15:57.400
but if you think about what leverage is in general,

451
00:15:57.400 --> 00:15:59.120
it's just you get more for what you put in.

452
00:15:59.120 --> 00:16:00.880
And so if you get 1,000X on any of these,

453
00:16:00.880 --> 00:16:01.840
it's still 1,000X.

454
00:16:01.840 --> 00:16:04.200
So somebody can just be an amazing private equity guy

455
00:16:04.200 --> 00:16:06.480
or amazing at raising money and become a billionaire.

456
00:16:06.480 --> 00:16:08.520
They don't need to do any of these other things, right?

457
00:16:08.520 --> 00:16:11.200
So we could be amazing at galvanizing people

458
00:16:11.200 --> 00:16:13.040
and creating movements and they wouldn't need

459
00:16:13.040 --> 00:16:14.240
any of these other things.

460
00:16:14.240 --> 00:16:16.200
If someone's amazing at writing software,

461
00:16:16.200 --> 00:16:17.640
they don't need anyone else's capital

462
00:16:17.640 --> 00:16:20.320
and the software does the collaboration on their behalf, right?

463
00:16:20.320 --> 00:16:21.600
And so all of these things,

464
00:16:21.600 --> 00:16:23.000
like even though they're structured like this,

465
00:16:23.000 --> 00:16:24.320
you don't have to have all of them.

466
00:16:24.320 --> 00:16:25.640
If you do have all of them,

467
00:16:25.640 --> 00:16:28.960
well, you look at Facebook that is code about content,

468
00:16:28.960 --> 00:16:29.880
you raise other people's money

469
00:16:29.880 --> 00:16:30.760
and you ask people working for them.

470
00:16:30.760 --> 00:16:32.880
But let me show you how this changed for me.

471
00:16:32.880 --> 00:16:37.360
So in the beginning, I was an employee, right?

472
00:16:38.240 --> 00:16:41.840
And I made four figures a month.

473
00:16:41.840 --> 00:16:43.720
Then I became self-employed.

474
00:16:43.720 --> 00:16:46.040
I gained a little bit of leverage just over my own time.

475
00:16:46.040 --> 00:16:48.480
So I went from having someone else control my time

476
00:16:48.480 --> 00:16:50.360
to me controlling my time, which was leverage.

477
00:16:50.360 --> 00:16:51.760
All right, I got more for what I put it.

478
00:16:51.760 --> 00:16:53.920
And now it's a five figures a month, all right?

479
00:16:53.920 --> 00:16:57.200
Then I went to employing other people, right?

480
00:16:57.200 --> 00:16:59.000
Which is then I would say the first level

481
00:16:59.000 --> 00:17:01.640
is me now having the first level of leverage.

482
00:17:01.640 --> 00:17:03.360
So it's a six figures a month, all right?

483
00:17:03.360 --> 00:17:05.080
And this is right as I, I would say first

484
00:17:05.080 --> 00:17:07.320
when I started my gyms and I had multiple gyms

485
00:17:07.320 --> 00:17:08.680
and then when I transitioned that to turn around,

486
00:17:08.680 --> 00:17:10.440
I still stayed at six figures a month,

487
00:17:10.440 --> 00:17:12.320
but fundamentally it's because I actually didn't change leverage.

488
00:17:12.320 --> 00:17:13.680
I changed how I was structuring it,

489
00:17:13.680 --> 00:17:16.840
but fundamentally like it was people doing the same work.

490
00:17:16.840 --> 00:17:20.440
So this was both me being a gym owner with six locations

491
00:17:20.440 --> 00:17:23.840
and me doing the turnaround business with other people.

492
00:17:24.840 --> 00:17:26.120
You're like, how do you go from six figures

493
00:17:26.120 --> 00:17:27.840
a month to seven figures a month?

494
00:17:27.840 --> 00:17:30.680
Then you start licensing.

495
00:17:31.600 --> 00:17:33.320
Now what is that?

496
00:17:33.320 --> 00:17:36.960
I made content fundamentally and then I made it once

497
00:17:36.960 --> 00:17:39.680
and then many people could have access to it.

498
00:17:39.720 --> 00:17:42.800
And so when I did that, I went to seven figures a month.

499
00:17:42.800 --> 00:17:46.120
Now the question is how do I get from seven figures a month

500
00:17:46.120 --> 00:17:46.960
to a figures a month?

501
00:17:46.960 --> 00:17:48.680
Because that's what we have at acquisition.com.

502
00:17:48.680 --> 00:17:50.080
What did I add into it?

503
00:17:50.080 --> 00:17:51.160
Capital.

504
00:17:51.160 --> 00:17:53.560
So now we buy into companies that have other people

505
00:17:53.560 --> 00:17:54.400
working for them.

506
00:17:54.400 --> 00:17:56.600
I use content to attract those businesses.

507
00:17:56.600 --> 00:17:58.360
Now I don't have any code right now.

508
00:17:58.360 --> 00:18:00.640
I have one software investment, maybe two I think,

509
00:18:00.640 --> 00:18:02.200
that are major investments.

510
00:18:02.200 --> 00:18:04.280
But the rest of my stuff really if we're talking about it

511
00:18:04.280 --> 00:18:05.720
is that I made content.

512
00:18:05.720 --> 00:18:07.880
I had capital from the things that I had done before

513
00:18:07.880 --> 00:18:09.360
and we have the ability to get other people

514
00:18:09.360 --> 00:18:11.360
to help us get to our goals.

515
00:18:12.280 --> 00:18:15.200
And so this is acquisition.com.

516
00:18:15.200 --> 00:18:16.720
And that's a figures a month.

517
00:18:16.720 --> 00:18:19.520
Now will I need to do to get to nine figures a month?

518
00:18:19.520 --> 00:18:22.440
I may just need to add time to the existing thing

519
00:18:22.440 --> 00:18:23.280
that I'm doing.

520
00:18:23.280 --> 00:18:25.920
Key point is that leverage is about getting more

521
00:18:25.920 --> 00:18:26.760
for what you put in.

522
00:18:26.760 --> 00:18:29.720
People who move faster in life don't actually move faster.

523
00:18:29.720 --> 00:18:30.920
They get more for their inputs.

524
00:18:30.920 --> 00:18:32.440
They get more for every step, right?

525
00:18:32.440 --> 00:18:34.960
I'm not like frenetically moving to move faster.

526
00:18:34.960 --> 00:18:37.680
You just get more out of every move.

527
00:18:37.680 --> 00:18:39.640
And so that means that if you're getting more out

528
00:18:39.640 --> 00:18:42.000
of every move, it's a function of time.

529
00:18:42.000 --> 00:18:45.680
And so if I had, for example, maybe some code

530
00:18:45.680 --> 00:18:47.120
that was implemented within everything

531
00:18:47.120 --> 00:18:49.760
that I do at acquisition.com, I might be able to get

532
00:18:49.760 --> 00:18:52.800
to nine figures a month faster than I currently am.

533
00:18:52.800 --> 00:18:55.760
But I feel confident with these three

534
00:18:55.760 --> 00:18:59.360
that we will get to nine figures a month eventually.

535
00:18:59.360 --> 00:19:01.960
And so you might say Alex, that might be a limiting belief.

536
00:19:01.960 --> 00:19:02.800
They might be.

537
00:19:02.800 --> 00:19:05.120
But that's kind of how I'm choosing to play it.

538
00:19:05.200 --> 00:19:08.160
And so let me like reverse the clock here.

539
00:19:08.160 --> 00:19:11.560
If I had just kept my gyms from the time I started my gyms

540
00:19:11.560 --> 00:19:15.560
until now, I might have a hundred locations.

541
00:19:15.560 --> 00:19:18.960
And I might also already be doing nine figure,

542
00:19:18.960 --> 00:19:21.080
not nine figure, I probably be doing eight figures a month

543
00:19:21.080 --> 00:19:22.200
from the gyms.

544
00:19:22.200 --> 00:19:23.800
And so you're like, well, wait a second.

545
00:19:23.800 --> 00:19:25.800
So was it the best move?

546
00:19:25.800 --> 00:19:27.360
I can't go back and replay time.

547
00:19:27.360 --> 00:19:28.240
I don't know.

548
00:19:28.240 --> 00:19:30.960
But that's where, to me, this is why the game gets interesting

549
00:19:30.960 --> 00:19:32.960
is that every time you switch vehicles,

550
00:19:32.960 --> 00:19:34.440
you started zero again.

551
00:19:34.440 --> 00:19:37.160
So the pace that the leverage affords you

552
00:19:37.160 --> 00:19:39.600
for each step you take has to be disproportionate

553
00:19:39.600 --> 00:19:41.680
because you're four of a business,

554
00:19:41.680 --> 00:19:45.160
you'll typically grow more than year one of a new business.

555
00:19:45.160 --> 00:19:47.000
And so that's where doing the same thing

556
00:19:47.000 --> 00:19:48.720
for a longer and longer period of time,

557
00:19:48.720 --> 00:19:49.960
you still get more leverage.

558
00:19:49.960 --> 00:19:52.360
The guy who owns Panda Express

559
00:19:52.360 --> 00:19:55.080
opens 600 new locations this year.

560
00:19:55.080 --> 00:19:58.440
Because he has done this because now he has enough capital.

561
00:19:58.440 --> 00:20:00.680
He has enough collaboration that he's maxed.

562
00:20:00.680 --> 00:20:02.240
Now he doesn't do any content.

563
00:20:02.240 --> 00:20:04.040
And he doesn't have any code, right?

564
00:20:04.080 --> 00:20:06.680
But he has these two at such a high degree

565
00:20:06.680 --> 00:20:09.960
that when he adds 600 locations

566
00:20:09.960 --> 00:20:13.320
and each location does $3 million a year, right?

567
00:20:13.320 --> 00:20:14.960
I might even be a, I don't know, it's a lot.

568
00:20:14.960 --> 00:20:17.920
And just to give you context, Panda Express in 2021

569
00:20:17.920 --> 00:20:21.560
to 3.7 billion in top line sales.

570
00:20:21.560 --> 00:20:24.880
And he owns 100% of it, no outside investors

571
00:20:24.880 --> 00:20:26.520
with his wife, Peggy.

572
00:20:26.520 --> 00:20:31.520
And they took home 27% net margins on brick and mortar food.

573
00:20:32.280 --> 00:20:33.400
All right, so let's do the math.

574
00:20:33.400 --> 00:20:36.640
That's 935 million in income.

575
00:20:36.640 --> 00:20:39.680
Like that was his distributions from owning this thing.

576
00:20:39.680 --> 00:20:40.600
Now if you're like, wait,

577
00:20:40.600 --> 00:20:41.800
but did he pay taxes on it?

578
00:20:41.800 --> 00:20:43.080
Sure, didn't, why?

579
00:20:43.080 --> 00:20:44.520
Because he owns all the land and the dirt

580
00:20:44.520 --> 00:20:46.320
for most of the locations that he had that are free standing.

581
00:20:46.320 --> 00:20:48.400
So he depreciated all of that against his income.

582
00:20:48.400 --> 00:20:50.920
So he took all of that tax-free.

583
00:20:50.920 --> 00:20:53.960
So point being, he did this and you're like,

584
00:20:53.960 --> 00:20:54.720
well, how did you do it?

585
00:20:54.720 --> 00:20:57.120
He's been making chicken and orange chicken

586
00:20:57.120 --> 00:21:00.520
and kung-pow chicken for 45 years.

587
00:21:00.520 --> 00:21:02.280
So even though he might not have been

588
00:21:02.280 --> 00:21:05.200
in the highest leverage vehicle,

589
00:21:05.200 --> 00:21:08.280
he was able to stick with that vehicle for 45 years.

590
00:21:08.280 --> 00:21:10.880
And being able to stick with something for 45 years

591
00:21:10.880 --> 00:21:12.880
makes it really hard to suck.

592
00:21:14.200 --> 00:21:15.080
And when you do that,

593
00:21:15.080 --> 00:21:18.800
you start unlocking multipliers on the leverage you have

594
00:21:18.800 --> 00:21:20.560
rather than thinking I need more leverage

595
00:21:20.560 --> 00:21:22.080
in terms of more types of leverage.

596
00:21:22.080 --> 00:21:23.480
Maybe you just need more of the one

597
00:21:23.480 --> 00:21:25.480
that you've been using since you started with.

598
00:21:25.480 --> 00:21:27.120
Remember I gave the little phone call example

599
00:21:27.120 --> 00:21:28.520
of like two people doing the same thing,

600
00:21:28.520 --> 00:21:30.080
one person has more leverage?

601
00:21:30.120 --> 00:21:32.520
Well, each of these things are big buckets

602
00:21:32.520 --> 00:21:34.720
with many smaller skills underneath of it.

603
00:21:34.720 --> 00:21:38.560
So collaboration is I have to know how to recruit talent.

604
00:21:38.560 --> 00:21:40.240
I have to know how to recognize talent.

605
00:21:40.240 --> 00:21:41.320
I have to know how to onboard.

606
00:21:41.320 --> 00:21:42.480
I have to know how to train.

607
00:21:42.480 --> 00:21:43.640
I have to know how to manage.

608
00:21:43.640 --> 00:21:46.480
I have to know how to grow talent

609
00:21:46.480 --> 00:21:48.520
and I have to know how to run meetings.

610
00:21:48.520 --> 00:21:50.080
And I have to know how to have one on once.

611
00:21:50.080 --> 00:21:51.440
And I have to know, like you're saying here,

612
00:21:51.440 --> 00:21:55.960
like all of those micro skills chunk up to collaboration.

613
00:21:55.960 --> 00:21:58.240
For capital, it's like you have to be good at math.

614
00:21:58.240 --> 00:21:59.880
Being bad at math is probably not,

615
00:21:59.880 --> 00:22:01.400
like it'd be tough to raise capital

616
00:22:01.400 --> 00:22:02.800
if you really can't do math, right?

617
00:22:02.800 --> 00:22:04.840
It's like, okay, well that's a skill you need to know.

618
00:22:04.840 --> 00:22:06.120
Well, what else do you need to know?

619
00:22:06.120 --> 00:22:08.120
It's like, well, you need to be able to reach out

620
00:22:08.120 --> 00:22:09.040
to people and get rejected.

621
00:22:09.040 --> 00:22:09.880
Why?

622
00:22:09.880 --> 00:22:11.160
Because when you try and raise capital,

623
00:22:11.160 --> 00:22:14.200
you get rejected a lot more times than you get checks, right?

624
00:22:14.200 --> 00:22:15.520
From there, it's like you also probably

625
00:22:15.520 --> 00:22:16.880
have to have an understanding of legal

626
00:22:16.880 --> 00:22:18.920
because you have to learn how to set up a fun structure.

627
00:22:18.920 --> 00:22:20.320
You also have to know how to negotiate

628
00:22:20.320 --> 00:22:22.120
because every single person writes your check

629
00:22:22.120 --> 00:22:23.240
is gonna want different terms.

630
00:22:23.240 --> 00:22:24.920
You then have to structure it in a way

631
00:22:24.920 --> 00:22:26.400
and negotiate so that you can get

632
00:22:26.400 --> 00:22:28.400
mutually beneficial terms for both parties.

633
00:22:28.400 --> 00:22:31.760
So these are all other skills that go into raising capital, right?

634
00:22:31.760 --> 00:22:33.280
Making content, it's like you have to understand

635
00:22:33.280 --> 00:22:34.120
the different platforms.

636
00:22:34.120 --> 00:22:35.400
You have to understand how to sell stories.

637
00:22:35.400 --> 00:22:37.600
You have to understand how to have,

638
00:22:37.600 --> 00:22:39.240
I mean, and even understanding here is just like,

639
00:22:39.240 --> 00:22:41.480
you might even have to just do the work to have credibility

640
00:22:41.480 --> 00:22:43.440
to make the content about whatever you're making it on.

641
00:22:43.440 --> 00:22:44.280
And you know what?

642
00:22:44.280 --> 00:22:45.400
I'm the sidequistist real quick.

643
00:22:45.400 --> 00:22:47.080
A lot of people make content right now

644
00:22:47.080 --> 00:22:48.520
and they're trying to hit it big.

645
00:22:48.520 --> 00:22:50.560
But what they do is, like in my opinion,

646
00:22:50.560 --> 00:22:54.440
you've got entertainers and you've got educators.

647
00:22:54.440 --> 00:22:56.440
The thing is, is that a lot of people who haven't done shit

648
00:22:56.440 --> 00:22:59.320
are trying to educate on things they haven't done.

649
00:22:59.320 --> 00:23:01.000
And so they have no credibility.

650
00:23:01.000 --> 00:23:03.440
And so the thing is, is that like the reason Mr. Beast

651
00:23:03.440 --> 00:23:05.440
was able to get so big is that when he was 15 years old,

652
00:23:05.440 --> 00:23:07.280
he wasn't teaching people about business.

653
00:23:07.280 --> 00:23:09.600
He was being funny and being cool.

654
00:23:09.600 --> 00:23:11.560
People were like, oh, I wanna be like him.

655
00:23:11.560 --> 00:23:13.320
And so then they say, oh, I'm gonna educate people

656
00:23:13.320 --> 00:23:16.600
on house flipping, but they're 22 years old

657
00:23:16.600 --> 00:23:18.520
and they haven't flipped them any houses.

658
00:23:18.520 --> 00:23:20.800
And so they have no credibility in their content.

659
00:23:20.800 --> 00:23:23.760
And so in my opinion, when you're doing this content thing,

660
00:23:23.760 --> 00:23:26.160
if you're gonna do it, then make sure

661
00:23:26.160 --> 00:23:28.360
that you have the backing of experience and proof

662
00:23:28.360 --> 00:23:30.480
because then I promise you, like when you get shit on

663
00:23:30.480 --> 00:23:32.320
from the public because you will,

664
00:23:32.320 --> 00:23:33.680
because they don't know who you are

665
00:23:33.680 --> 00:23:36.120
and most people are lying, you'll be able to know

666
00:23:36.120 --> 00:23:38.400
that what you're saying is true because you lived it.

667
00:23:38.400 --> 00:23:40.080
And so then you won't second guess yourself.

668
00:23:40.080 --> 00:23:42.000
The people who like tank and self-employed

669
00:23:42.000 --> 00:23:43.640
because they're like, they can't handle the heat

670
00:23:43.640 --> 00:23:45.920
is because on some level they believe it.

671
00:23:45.920 --> 00:23:48.320
So if you wanna be an educator,

672
00:23:48.320 --> 00:23:49.840
then I think that the middle ground,

673
00:23:49.840 --> 00:23:52.640
the pre-education stage is the documentation stage,

674
00:23:52.640 --> 00:23:54.920
where you just say, this is what I'm doing now, check it out.

675
00:23:54.920 --> 00:23:58.240
Like right now, I can't educate really or not really.

676
00:23:58.240 --> 00:24:00.040
Excuse me, I can't educate on nine figures a month.

677
00:24:00.040 --> 00:24:00.880
Haven't been there.

678
00:24:00.880 --> 00:24:02.400
I know what eight figures a month is.

679
00:24:02.400 --> 00:24:03.640
Don't know how to get to nine figures a month.

680
00:24:03.640 --> 00:24:05.840
I have my theory, which is that I just have to add time

681
00:24:05.840 --> 00:24:07.400
to this equation.

682
00:24:07.400 --> 00:24:10.640
The math spells that out, but I just gotta wait.

683
00:24:10.640 --> 00:24:12.640
Once I get there, then I can talk about

684
00:24:12.640 --> 00:24:14.320
how to build a billion dollar portfolio.

685
00:24:14.320 --> 00:24:17.080
And you can imagine how my content might change, right?

686
00:24:17.080 --> 00:24:19.120
And so if you're making six figures a year

687
00:24:19.120 --> 00:24:20.600
and trying to talk about how to make seven,

688
00:24:20.600 --> 00:24:23.000
you've never made seven, then you're full of shit.

689
00:24:23.000 --> 00:24:26.160
And you rightfully should get the heat that you do, right?

690
00:24:26.160 --> 00:24:29.760
And so these are skills that you have to learn how to acquire

691
00:24:29.760 --> 00:24:30.840
to make content.

692
00:24:30.840 --> 00:24:33.560
And to make code, you have to learn how to go code.

693
00:24:33.560 --> 00:24:35.640
And this is how little I know about coding.

694
00:24:35.640 --> 00:24:36.480
This is it.

695
00:24:36.480 --> 00:24:39.800
So I would even give you examples of microskills,

696
00:24:39.800 --> 00:24:42.800
but like you have to learn HTML and JavaScript

697
00:24:42.800 --> 00:24:44.760
and Ruby and Python.

698
00:24:44.760 --> 00:24:46.560
It's about it, it's all I know.

699
00:24:46.560 --> 00:24:48.720
And data architecture.

700
00:24:48.720 --> 00:24:51.320
And yep, that's it, that's all I got.

701
00:24:51.320 --> 00:24:54.800
It's so you have to learn these smaller skills

702
00:24:54.800 --> 00:24:57.920
to then say, I'm very excellent at code

703
00:24:57.920 --> 00:24:59.160
so that I can then have more leverage

704
00:24:59.160 --> 00:25:00.640
on the things that I do.

705
00:25:00.640 --> 00:25:03.880
And then you can walk yourself up this income ladder

706
00:25:03.880 --> 00:25:05.840
with more leverage, right?

707
00:25:05.840 --> 00:25:07.320
And again, leverage is about speed.

708
00:25:07.320 --> 00:25:09.720
Any of these vehicles that I had done,

709
00:25:09.720 --> 00:25:12.240
if I had done it for 45 years like Mr. Panda,

710
00:25:12.240 --> 00:25:17.040
you could get there because my end on input is so high.

711
00:25:17.040 --> 00:25:19.760
If I spend 45 years doing something,

712
00:25:19.760 --> 00:25:22.160
I might not have the strongest arm,

713
00:25:22.160 --> 00:25:25.000
but I've done it 45 times more.

714
00:25:25.000 --> 00:25:27.240
So I still get more out than the guy

715
00:25:27.240 --> 00:25:29.720
that's over here that does it two times.

716
00:25:29.720 --> 00:25:31.920
This is where strategy comes into play

717
00:25:31.920 --> 00:25:33.720
is making sure that you're picking the right vehicle.

718
00:25:33.720 --> 00:25:35.800
Chris, for example, made last money

719
00:25:35.800 --> 00:25:39.040
in the first nine months, scaling and chanted fairies

720
00:25:39.040 --> 00:25:41.200
than he did before.

721
00:25:41.200 --> 00:25:43.520
But at month 10, he matched it.

722
00:25:43.520 --> 00:25:47.440
At month 24, it was like so small in comparison

723
00:25:47.440 --> 00:25:48.520
that didn't even matter.

724
00:25:48.520 --> 00:25:52.040
But I can tell you this, really easy to say this,

725
00:25:52.040 --> 00:25:53.200
really hard to do that.

726
00:25:53.200 --> 00:25:57.440
For nine months, each shit and feel like you're losing

727
00:25:57.440 --> 00:25:59.280
and always knowing that you could always go back

728
00:25:59.280 --> 00:26:00.120
and that's the hard part.

729
00:26:00.120 --> 00:26:01.640
Go back to what you were doing before

730
00:26:01.640 --> 00:26:06.040
that was comfortable and made you X versus staying the path.

731
00:26:06.040 --> 00:26:07.760
And I can tell you, it was, I mean, it's hard for me.

732
00:26:07.760 --> 00:26:08.760
I mean, my team does that.

733
00:26:08.760 --> 00:26:11.480
Like going for making what I was making at gym watch

734
00:26:11.480 --> 00:26:14.960
to doing acquisition.com the first year,

735
00:26:14.960 --> 00:26:16.680
I was like, this sucks.

736
00:26:16.680 --> 00:26:18.480
Like I'm used to being able to run any personal expense

737
00:26:18.480 --> 00:26:20.080
with this business and not even blank.

738
00:26:20.080 --> 00:26:23.160
I'm like, oh, I actually have to look at cashflow, right?

739
00:26:23.160 --> 00:26:25.160
And so like these are things that you have to like take in,

740
00:26:25.160 --> 00:26:28.240
but I do believe genuinely, you're 10 of acquisition.com,

741
00:26:28.240 --> 00:26:31.600
I think is bigger than your 15 of gym launch

742
00:26:31.600 --> 00:26:32.880
to make the apples to apples comparison.

743
00:26:32.880 --> 00:26:34.440
Because the thing is that you actually never get

744
00:26:34.440 --> 00:26:35.440
an apples to apples comparison

745
00:26:35.440 --> 00:26:36.640
because you can go back in time.

746
00:26:36.640 --> 00:26:38.760
And so you have to look at what your 10 of one businesses

747
00:26:38.760 --> 00:26:40.400
compared to your three of another.

748
00:26:40.400 --> 00:26:42.840
And so if you're at your sixth year,

749
00:26:42.840 --> 00:26:44.760
maybe you should just keep riding it out

750
00:26:44.760 --> 00:26:46.200
because whatever you started with

751
00:26:46.200 --> 00:26:48.520
is the thing that you have the longest lever

752
00:26:48.520 --> 00:26:50.560
on number of times that you got reps in.

753
00:26:50.560 --> 00:26:51.960
And people want to change industries

754
00:26:51.960 --> 00:26:53.960
and I'll give you a little tidbit from Y Combinator.

755
00:26:53.960 --> 00:26:56.360
One is they don't take solo founders as a side note.

756
00:26:56.360 --> 00:26:57.520
Now mind you, they're only interested

757
00:26:57.520 --> 00:26:58.440
in billion dollar companies.

758
00:26:58.440 --> 00:27:00.800
So if that's not you, then you could totally be a single founder.

759
00:27:00.800 --> 00:27:02.560
But it's just harder to be successful

760
00:27:02.560 --> 00:27:05.000
with one person's skills versus three.

761
00:27:05.000 --> 00:27:06.800
The second interesting thing that they have,

762
00:27:06.800 --> 00:27:08.480
they have many things they select for,

763
00:27:08.480 --> 00:27:10.360
but one of them is industry experience.

764
00:27:10.360 --> 00:27:11.120
And so if someone says,

765
00:27:11.120 --> 00:27:13.320
hey, I want to get into this industry.

766
00:27:13.320 --> 00:27:15.720
If you don't have any experience in that industry

767
00:27:15.720 --> 00:27:17.880
and then second to that is personal experience

768
00:27:17.880 --> 00:27:19.480
like you suffered from whatever problem

769
00:27:19.480 --> 00:27:21.080
you're trying to solve,

770
00:27:21.080 --> 00:27:22.920
then they're not interested.

771
00:27:22.920 --> 00:27:26.640
And so you might have six years of experience

772
00:27:26.640 --> 00:27:27.480
in the mortgage business.

773
00:27:27.480 --> 00:27:29.560
I wouldn't recommend getting in a weight loss.

774
00:27:29.560 --> 00:27:31.040
I would say maybe you take a half pivot

775
00:27:31.040 --> 00:27:32.280
so you're in the same industry

776
00:27:32.280 --> 00:27:34.760
because it's so hard to make up those six years.

777
00:27:34.760 --> 00:27:37.880
This hopefully gives you a more nuanced view

778
00:27:37.880 --> 00:27:41.360
to making the right picks, to making the most money.

779
00:27:41.360 --> 00:27:42.960
By the way, if you guys like the whiteboard

780
00:27:42.960 --> 00:27:44.880
and me drawing on with markers,

781
00:27:44.880 --> 00:27:46.600
this is a throwback to what I used to do.

782
00:27:46.600 --> 00:27:50.600
I finally got another board because I love these things.

783
00:27:50.600 --> 00:27:52.840
But if you like this style, like let me know,

784
00:27:52.840 --> 00:27:53.960
I love this style,

785
00:27:53.960 --> 00:27:55.600
but I just try and do the things that,

786
00:27:55.600 --> 00:27:57.760
that the data suggests that you like the most.

787
00:27:57.760 --> 00:27:59.040
I'll do what you guys want

788
00:27:59.040 --> 00:28:01.400
so that I can hopefully transfer the skills that I have

789
00:28:01.400 --> 00:28:02.720
to you faster.

790
00:28:02.720 --> 00:28:04.520
I said earlier that the unknown unknowns

791
00:28:04.520 --> 00:28:06.360
are the most expensive thing in business, right?

792
00:28:06.360 --> 00:28:08.160
Because you don't know what you don't know.

793
00:28:08.160 --> 00:28:10.040
And so I want to give you a quantifiable example.

794
00:28:10.040 --> 00:28:11.000
I remember the first time I heard this,

795
00:28:11.000 --> 00:28:11.880
it changed my life.

796
00:28:11.880 --> 00:28:13.960
And so it was actually a whiteboard just like this.

797
00:28:13.960 --> 00:28:15.400
So you get to, like I'm getting goosebumps,

798
00:28:15.400 --> 00:28:17.400
you'll have the same experience I did.

799
00:28:17.400 --> 00:28:19.440
So I was on stage and gave this whole presentation

800
00:28:19.440 --> 00:28:22.160
about learning skills and about how you have to invest

801
00:28:22.160 --> 00:28:24.160
in yourself to get better, right?

802
00:28:24.160 --> 00:28:27.000
And he called somebody in the audience and he said,

803
00:28:27.000 --> 00:28:28.840
ma'am, and as he's saying this,

804
00:28:28.840 --> 00:28:29.680
he's doing what I'm doing.

805
00:28:29.680 --> 00:28:32.320
He says, ma'am, how much money do you make right now

806
00:28:32.320 --> 00:28:33.160
per year?

807
00:28:33.160 --> 00:28:35.120
She stood up and she said $50,000 a year.

808
00:28:35.120 --> 00:28:38.920
He was like, okay, so what would be the main reason

809
00:28:38.920 --> 00:28:40.440
that you wouldn't want to invest today, right?

810
00:28:40.440 --> 00:28:42.080
So he was closing, this is actually a close,

811
00:28:42.080 --> 00:28:45.040
but as a side note, I think the reason I like sales so much

812
00:28:45.040 --> 00:28:47.120
is because many of the obstacles overcome

813
00:28:47.120 --> 00:28:50.120
that you learn to overcome are actually self bullshit.

814
00:28:50.120 --> 00:28:53.080
And so in a way like learning how to sell other people

815
00:28:53.080 --> 00:28:55.360
for me was learning how to sell myself.

816
00:28:55.360 --> 00:28:57.160
Because I had so much head trash of like,

817
00:28:57.160 --> 00:28:59.320
why I couldn't do things or why I shouldn't start now

818
00:28:59.320 --> 00:29:01.160
or why I had to think about it or why I needed permission

819
00:29:01.160 --> 00:29:02.960
from someone else or why the universe was stacked

820
00:29:02.960 --> 00:29:04.240
against me to be successful.

821
00:29:04.240 --> 00:29:06.600
Like these are all things that I had to learn the arguments

822
00:29:06.600 --> 00:29:08.960
against to convince myself to do stuff.

823
00:29:08.960 --> 00:29:11.760
And so he asked the lady, he says, okay,

824
00:29:11.760 --> 00:29:13.720
so what would make you not want to invest in this?

825
00:29:13.720 --> 00:29:16.800
And she says, well, I don't have the money.

826
00:29:16.800 --> 00:29:18.800
And he said, well, it's probably,

827
00:29:18.800 --> 00:29:19.800
you probably don't have the money

828
00:29:19.800 --> 00:29:21.440
because you've been paying a really expensive bill

829
00:29:21.440 --> 00:29:22.720
every single year.

830
00:29:22.720 --> 00:29:24.240
And she's like, what do you mean?

831
00:29:24.240 --> 00:29:28.920
He's like, well, right now you've been paying $950,000 a year,

832
00:29:28.920 --> 00:29:30.800
not knowing how to make a million dollars.

833
00:29:30.800 --> 00:29:33.640
He said, this is the cost of your ignorance.

834
00:29:36.400 --> 00:29:38.680
Hey guys, love that you're listening to the podcast.

835
00:29:38.680 --> 00:29:41.520
If you ever want to have the video version of this,

836
00:29:41.520 --> 00:29:44.080
which usually has more facts, more visuals, more graphs,

837
00:29:44.080 --> 00:29:47.120
you know, drawn out stuff, sometimes it can help hit

838
00:29:47.120 --> 00:29:48.640
the brain centers in different ways.

839
00:29:48.640 --> 00:29:49.640
You can check out my YouTube channel.

840
00:29:49.640 --> 00:29:51.400
It's absolutely free to check that out

841
00:29:51.400 --> 00:29:52.480
if that's what you are into.

842
00:29:52.480 --> 00:29:54.280
And if not, keep enjoying the show.

843
00:29:56.840 --> 00:30:00.520
This is the debt that you carry for the rest of your life

844
00:30:00.560 --> 00:30:03.120
until you learn how to make a million dollars.

845
00:30:03.120 --> 00:30:07.720
And so the reason I'm so heavy on learning skills

846
00:30:07.720 --> 00:30:09.240
and becoming educators that right now,

847
00:30:09.240 --> 00:30:11.600
I'm paying down ignorance debt.

848
00:30:11.600 --> 00:30:15.200
I'm paying down $950 million a year,

849
00:30:15.200 --> 00:30:17.400
not knowing how to make a billion.

850
00:30:17.400 --> 00:30:18.680
It's a debt I'm paying.

851
00:30:18.680 --> 00:30:20.120
Well, like we all pay ignorance debt.

852
00:30:20.120 --> 00:30:23.240
And so the idea is how quickly cannot pay this down

853
00:30:23.240 --> 00:30:24.600
so that I can have more cash flow

854
00:30:24.600 --> 00:30:27.520
to continue to pay this down faster.

855
00:30:27.520 --> 00:30:29.920
Now, strategy, like I said earlier,

856
00:30:29.920 --> 00:30:32.240
is about how you allocate limited resources

857
00:30:32.240 --> 00:30:33.280
against unlimited options.

858
00:30:33.280 --> 00:30:36.200
That's the fancy word of just saying prioritizing, all right?

859
00:30:36.200 --> 00:30:39.800
And so right now, you have limited resources.

860
00:30:39.800 --> 00:30:41.720
You have time and you have money.

861
00:30:41.720 --> 00:30:43.040
Now, you might have more time than money,

862
00:30:43.040 --> 00:30:46.000
but either way, you have some limit on what you have.

863
00:30:46.000 --> 00:30:47.880
And so for you to move faster,

864
00:30:47.880 --> 00:30:50.120
you have to identify, prioritize,

865
00:30:50.120 --> 00:30:51.760
the thing that you're gonna allocate your time

866
00:30:51.760 --> 00:30:53.000
and money towards, right?

867
00:30:53.000 --> 00:30:54.920
And you want the thing that gets you the most for it.

868
00:30:54.920 --> 00:30:57.200
Remember the input output that we had earlier, the leverage?

869
00:30:57.280 --> 00:30:59.040
You want the thing that gives you the most leverage.

870
00:30:59.040 --> 00:31:01.840
Now, one of the tough parts about reality

871
00:31:01.840 --> 00:31:04.400
is that the things that you have access to

872
00:31:04.400 --> 00:31:06.560
when you have fewer resources are less than the things

873
00:31:06.560 --> 00:31:08.600
that you have access to when you have more resources.

874
00:31:08.600 --> 00:31:13.240
Like Mr. Panda can go buy a building for a billion dollars

875
00:31:13.240 --> 00:31:17.000
and flip it for $2 billion in a year or two

876
00:31:17.000 --> 00:31:18.760
and make a billion dollars

877
00:31:18.760 --> 00:31:20.280
because he has more resources than you do.

878
00:31:20.280 --> 00:31:21.920
And you can't do that, right?

879
00:31:21.920 --> 00:31:23.480
Not right now.

880
00:31:23.480 --> 00:31:26.000
But you do have things that could get you there,

881
00:31:26.000 --> 00:31:28.640
which is why Charlie Munger talks about how,

882
00:31:28.640 --> 00:31:31.120
do whatever you can do, big bar of steel, eat ramen,

883
00:31:31.120 --> 00:31:32.960
walk with your lunchpale, both directions,

884
00:31:32.960 --> 00:31:35.160
do whatever you have to do to make your first 100,000.

885
00:31:35.160 --> 00:31:36.080
It's because he understands,

886
00:31:36.080 --> 00:31:37.240
and mind you, him saying 100,000

887
00:31:37.240 --> 00:31:38.640
is probably like a million dollars today.

888
00:31:38.640 --> 00:31:40.320
Because he knows that once you get that,

889
00:31:40.320 --> 00:31:42.560
you can actually get a little bit more leverage

890
00:31:42.560 --> 00:31:44.400
in terms you get way more for what you put in

891
00:31:44.400 --> 00:31:46.360
because you can't only put your time in

892
00:31:46.360 --> 00:31:48.680
because it's so limited in terms of how much you can do.

893
00:31:48.680 --> 00:31:53.680
All right, so this is why I talk about having investing

894
00:31:54.160 --> 00:31:56.960
in the SME 500 more than the SMP 500.

895
00:31:56.960 --> 00:31:58.080
So if you don't know this, it's standard

896
00:31:58.080 --> 00:32:01.120
and poor 500 companies on the stock exchange.

897
00:32:01.120 --> 00:32:02.880
It's probably like the gold standard index

898
00:32:02.880 --> 00:32:04.440
that we track how the US economy is doing.

899
00:32:04.440 --> 00:32:06.560
It's really just the stock market in general is doing.

900
00:32:06.560 --> 00:32:07.960
All right, and so if you dollar cost average

901
00:32:07.960 --> 00:32:12.040
in the SMP 500, you get nine to 10% a year for life,

902
00:32:12.040 --> 00:32:13.320
or at least that's what it's done historically.

903
00:32:13.320 --> 00:32:17.880
All right, so the question is rather than investing in this,

904
00:32:17.880 --> 00:32:19.560
we just have to say, can we do anything

905
00:32:19.560 --> 00:32:21.240
that gets us more than 10% back?

906
00:32:22.120 --> 00:32:24.600
Great, now we can quantify this.

907
00:32:24.600 --> 00:32:29.040
And so if I have, let's say $1,000, right?

908
00:32:29.040 --> 00:32:31.760
And here's the magic of this, is that when you invest

909
00:32:31.760 --> 00:32:35.960
$1,000 into the SMP, you have nothing else

910
00:32:35.960 --> 00:32:37.640
that you add to that thousand.

911
00:32:37.640 --> 00:32:39.120
Like you can't juice the thousand.

912
00:32:39.120 --> 00:32:40.520
You bind at the same valuation

913
00:32:40.520 --> 00:32:42.120
that every other investor buys in at.

914
00:32:42.120 --> 00:32:43.400
And so I'll tell you one of the magic,

915
00:32:43.400 --> 00:32:45.280
so I'm gonna open up the curtain here for a second.

916
00:32:45.280 --> 00:32:46.880
One of the magic of what we do at Acquisition.com

917
00:32:46.880 --> 00:32:49.560
is that we pair capital with know-how.

918
00:32:49.720 --> 00:32:54.120
And so we can buy a company at a decent valuation

919
00:32:54.120 --> 00:32:57.280
and have a big margin of safety because of our skill set.

920
00:32:57.280 --> 00:33:00.480
So we know that we can triple or 10x the business

921
00:33:00.480 --> 00:33:01.600
when we invest in it.

922
00:33:01.600 --> 00:33:03.280
So we don't have to pick amazingly.

923
00:33:03.280 --> 00:33:04.520
Like Warren Buffett, the better picker

924
00:33:04.520 --> 00:33:07.360
always will be than I am, right, at picking businesses.

925
00:33:07.360 --> 00:33:09.760
But Warren Buffett doesn't work in the business, right?

926
00:33:09.760 --> 00:33:12.360
So that's my advantage over Warren Buffett right now.

927
00:33:12.360 --> 00:33:15.040
Might do, he has way more advantages over me, right?

928
00:33:15.040 --> 00:33:16.720
Made $90 billion on his Apple trade.

929
00:33:16.720 --> 00:33:19.960
But, but, but, but this is the game

930
00:33:19.960 --> 00:33:20.880
that I'm supposed to play right now

931
00:33:20.880 --> 00:33:23.840
because here's the leverage that I have on him.

932
00:33:23.840 --> 00:33:28.480
I have 60 more years of life than he does, right?

933
00:33:28.480 --> 00:33:30.480
He's 93, I'm 33.

934
00:33:30.480 --> 00:33:34.680
So I have a lot more of these left on my move set, okay?

935
00:33:34.680 --> 00:33:36.720
Now, we have our thousand dollars.

936
00:33:36.720 --> 00:33:38.560
We get 10% meaning at the end of the year

937
00:33:38.560 --> 00:33:42.040
we're at $1,100, roughly, okay?

938
00:33:42.040 --> 00:33:45.320
Or let's say you buy a sales training course.

939
00:33:45.320 --> 00:33:46.200
They teach you how to sell

940
00:33:46.200 --> 00:33:48.080
and you get implementation from that

941
00:33:48.080 --> 00:33:49.600
where they review some of your calls

942
00:33:49.600 --> 00:33:51.680
so that you can improve and all of a sudden

943
00:33:51.680 --> 00:33:56.680
you take your income from 40,000 a year to 220,000 a year.

944
00:33:58.000 --> 00:33:59.200
Okay, well, what does that mean?

945
00:33:59.200 --> 00:34:02.120
That means that that thousand, think about this return, all right?

946
00:34:02.120 --> 00:34:06.360
In scenario one, you have $1,100 in scenario two

947
00:34:06.360 --> 00:34:07.600
and here's the crazy part.

948
00:34:07.600 --> 00:34:12.600
You have an extra 180,000, all right?

949
00:34:12.800 --> 00:34:14.760
So compare this to that.

950
00:34:14.760 --> 00:34:17.560
But here's the crazy part, this is every year

951
00:34:17.560 --> 00:34:21.640
because once you have the skill, you only get better from there.

952
00:34:21.640 --> 00:34:23.040
And so one of the things my dad used to tell me

953
00:34:23.040 --> 00:34:26.000
that when I was growing up was that

954
00:34:26.000 --> 00:34:27.160
he was always really big on education

955
00:34:27.160 --> 00:34:28.400
because he came here a thousand dollars

956
00:34:28.400 --> 00:34:30.200
didn't speak the language and he learned English.

957
00:34:30.200 --> 00:34:31.320
Like that was a skill he didn't have.

958
00:34:31.320 --> 00:34:32.720
Like we take so many skills for granted.

959
00:34:32.720 --> 00:34:34.600
Like the man didn't, he couldn't even speak

960
00:34:34.600 --> 00:34:36.360
the language of the country, right?

961
00:34:36.360 --> 00:34:38.800
In a thousand bucks and he was able to take

962
00:34:38.800 --> 00:34:42.400
his medical school education and apply it here in the US

963
00:34:42.400 --> 00:34:45.040
because he fled during the revolution in Iran

964
00:34:45.040 --> 00:34:48.560
and he said, the one thing that no government can take from you

965
00:34:48.560 --> 00:34:51.360
and no wife can steal from you in a divorce,

966
00:34:51.360 --> 00:34:55.240
and you can't get sued out of is your education.

967
00:34:56.400 --> 00:34:57.520
They can't take it from you.

968
00:34:57.520 --> 00:35:01.280
And he had relatives who were actually really well off

969
00:35:01.280 --> 00:35:03.320
who actually owned the lottery in Iran.

970
00:35:03.320 --> 00:35:04.480
So you get, it was a private company.

971
00:35:04.480 --> 00:35:06.000
So they made a lot of money.

972
00:35:06.000 --> 00:35:08.000
But they were like second, third generation

973
00:35:08.000 --> 00:35:09.280
and they hadn't learned the skills.

974
00:35:09.280 --> 00:35:11.640
And so when they fled during the revolution,

975
00:35:11.640 --> 00:35:13.560
they could only take what they could carry

976
00:35:13.560 --> 00:35:16.720
because all of their assets got seized by the government.

977
00:35:16.720 --> 00:35:19.600
And they never were able to go back to what they had

978
00:35:19.600 --> 00:35:21.400
because they didn't have the skills.

979
00:35:21.400 --> 00:35:23.640
Because the government could take their assets

980
00:35:23.640 --> 00:35:25.800
but they didn't have the education, right?

981
00:35:25.800 --> 00:35:28.560
And the guys who were businessmen from Iran,

982
00:35:28.560 --> 00:35:31.040
straight to LA became businessmen in LA

983
00:35:31.040 --> 00:35:33.840
and crushed it there too, because they understood the game,

984
00:35:33.840 --> 00:35:34.680
right?

985
00:35:34.680 --> 00:35:37.000
And so this is why like if you think about it

986
00:35:37.000 --> 00:35:38.680
from actually an investment perspective,

987
00:35:38.680 --> 00:35:40.720
like education can't go down.

988
00:35:40.720 --> 00:35:41.920
It can't be taxed.

989
00:35:41.920 --> 00:35:45.600
It can't be taken from you and only gets better over time, right?

990
00:35:45.600 --> 00:35:47.480
And it compounds unto itself

991
00:35:47.480 --> 00:35:49.400
because when you learn the next skill,

992
00:35:49.400 --> 00:35:53.120
so let's say this is what the lift we got from sales,

993
00:35:53.120 --> 00:35:54.760
then you learn lead gen.

994
00:35:54.760 --> 00:35:55.960
And then all of a sudden this,

995
00:35:55.960 --> 00:35:59.440
because then you five x the demand on your sales skills

996
00:35:59.440 --> 00:36:01.120
and you just pay down your ignorance debt

997
00:36:01.120 --> 00:36:02.640
with two investments.

998
00:36:02.640 --> 00:36:04.560
And so like is that worth it more

999
00:36:06.200 --> 00:36:08.360
than putting the money in the S&P?

1000
00:36:08.360 --> 00:36:11.280
In my opinion, every fucking time.

1001
00:36:11.280 --> 00:36:13.680
It is going for 40 to 220 realistic.

1002
00:36:13.680 --> 00:36:15.480
If you're a killer in your part of Mosin Nation,

1003
00:36:15.480 --> 00:36:16.440
apps of fucking Lulee.

1004
00:36:16.440 --> 00:36:17.760
If you do it the way we tell you to do it,

1005
00:36:17.760 --> 00:36:20.400
which is you look at the top guy on whatever company,

1006
00:36:20.400 --> 00:36:22.840
whatever team and you do twice what they do.

1007
00:36:22.840 --> 00:36:23.680
Because you know why?

1008
00:36:23.680 --> 00:36:24.680
Because they're gonna be better than you.

1009
00:36:24.680 --> 00:36:25.800
And so you've got to make up with,

1010
00:36:25.800 --> 00:36:27.040
you've got to make it up in inputs.

1011
00:36:27.040 --> 00:36:27.880
It's like, but Alex,

1012
00:36:27.880 --> 00:36:28.920
does that mean I'm gonna have to work harder

1013
00:36:28.920 --> 00:36:29.880
in longer hours?

1014
00:36:29.880 --> 00:36:30.960
You bet.

1015
00:36:30.960 --> 00:36:31.840
Welcome to the world.

1016
00:36:31.840 --> 00:36:34.040
Like, because think about it.

1017
00:36:34.040 --> 00:36:35.840
If you work the same hours as that guy,

1018
00:36:35.840 --> 00:36:37.160
that guy always has the advantage

1019
00:36:37.160 --> 00:36:38.560
because he's already better than you.

1020
00:36:38.560 --> 00:36:40.440
And so if he puts a month in and you put a month

1021
00:36:40.440 --> 00:36:42.080
and he's gonna get further ahead than you,

1022
00:36:42.080 --> 00:36:43.600
because he already has skills through which

1023
00:36:43.600 --> 00:36:45.760
to judge his own performance and improve.

1024
00:36:45.760 --> 00:36:48.000
And so you have to put way more inputs in

1025
00:36:48.000 --> 00:36:49.720
to get the same output than that guy.

1026
00:36:49.720 --> 00:36:53.040
And so that's why Kobe spent five summers doing two days

1027
00:36:53.040 --> 00:36:54.200
when everyone else was doing one a day

1028
00:36:54.200 --> 00:36:55.760
because he knew he had to make up

1029
00:36:55.760 --> 00:36:58.520
for the guys who were way better than him naturally.

1030
00:36:58.520 --> 00:36:59.680
And so like, I would like to think

1031
00:36:59.680 --> 00:37:02.560
everybody in Mosin Nation as mini-black mamas

1032
00:37:02.560 --> 00:37:04.880
from that perspective is that we're willing to put in

1033
00:37:04.880 --> 00:37:07.120
twice the work, three times the work, four times the work,

1034
00:37:07.120 --> 00:37:10.920
despite the natural talent deficiencies to make up for it.

1035
00:37:10.920 --> 00:37:13.160
Because on a five year or a 10 year

1036
00:37:13.160 --> 00:37:15.320
or a 25 year timeline to become unbeatable.

1037
00:37:15.320 --> 00:37:17.640
Do I think you can get to 220?

1038
00:37:17.640 --> 00:37:19.080
Hell yeah.

1039
00:37:19.080 --> 00:37:21.080
But if you were to just look at average,

1040
00:37:21.080 --> 00:37:22.040
which I don't want you to be,

1041
00:37:22.040 --> 00:37:23.080
but if you were to look at average,

1042
00:37:23.080 --> 00:37:26.600
you might make 100 a year or 128 a year.

1043
00:37:26.600 --> 00:37:28.400
It would still triple what you were making before.

1044
00:37:28.400 --> 00:37:30.600
And if you don't adjust your living

1045
00:37:30.600 --> 00:37:34.000
from what you were making at 40, Mr. Smart Cookie,

1046
00:37:34.000 --> 00:37:38.880
then now you have even at 120, this was 120.

1047
00:37:38.880 --> 00:37:41.840
You have 80K a year extra

1048
00:37:41.840 --> 00:37:44.000
that you can then invest in more skills

1049
00:37:44.000 --> 00:37:45.800
to pay down your ignorance debt.

1050
00:37:45.800 --> 00:37:48.040
A key point here is I said that there was an advantage

1051
00:37:48.040 --> 00:37:49.720
that I have a Warren Buffett,

1052
00:37:49.720 --> 00:37:54.720
which is I got money and time slash effort, right?

1053
00:37:55.080 --> 00:37:58.680
If you go spend the money, but you don't put this in,

1054
00:37:58.680 --> 00:38:00.320
then you lose your advantage.

1055
00:38:00.320 --> 00:38:02.760
And so it's not just about spending the money

1056
00:38:03.040 --> 00:38:05.280
because here's an interesting fact to it for you.

1057
00:38:05.280 --> 00:38:07.440
When you sell someone, you understand

1058
00:38:07.440 --> 00:38:08.920
that the moment someone buys,

1059
00:38:08.920 --> 00:38:11.720
they actually feel like they solve the problem emotionally.

1060
00:38:11.720 --> 00:38:15.040
And so you can sell that because you learn how to sell.

1061
00:38:15.040 --> 00:38:17.920
But the reality is that that just gives them the license

1062
00:38:17.920 --> 00:38:20.240
to begin solving the problem of whatever it is,

1063
00:38:20.240 --> 00:38:22.360
especially if it's a skill or it's education-based.

1064
00:38:22.360 --> 00:38:23.760
And here's my answer for you guys.

1065
00:38:23.760 --> 00:38:25.520
One of the beliefs that I think has served me well

1066
00:38:25.520 --> 00:38:26.600
is that whenever I joined a group,

1067
00:38:26.600 --> 00:38:30.280
or I joined a community, or I free or paid or otherwise,

1068
00:38:30.280 --> 00:38:32.240
I always wanted to become number one.

1069
00:38:32.280 --> 00:38:33.840
And the way that I thought about that was,

1070
00:38:33.840 --> 00:38:35.200
and I always wanted to join groups of people

1071
00:38:35.200 --> 00:38:36.040
who were all ahead of me.

1072
00:38:36.040 --> 00:38:38.200
When I joined the internet group that I was talking about earlier,

1073
00:38:38.200 --> 00:38:39.320
everybody there was making more money than me.

1074
00:38:39.320 --> 00:38:40.960
How do I get status in this group?

1075
00:38:40.960 --> 00:38:43.120
And the way that I did that was like, be good.

1076
00:38:43.120 --> 00:38:44.240
I mean, make more money.

1077
00:38:44.240 --> 00:38:47.000
And so what I did was I talked to every single person

1078
00:38:47.000 --> 00:38:49.600
in the group, and I had only my small skill set,

1079
00:38:49.600 --> 00:38:51.080
and I gave it to them for free.

1080
00:38:51.080 --> 00:38:52.200
And I want to fucking hit on this

1081
00:38:52.200 --> 00:38:56.080
because I get DMs every day about this guy this morning,

1082
00:38:56.080 --> 00:38:56.920
even said it.

1083
00:38:56.920 --> 00:39:02.040
He said, Alex, I want to make you 100 videos for free

1084
00:39:02.040 --> 00:39:04.960
if you're willing to employ me.

1085
00:39:07.040 --> 00:39:08.600
The amount of times that I get this request,

1086
00:39:08.600 --> 00:39:11.160
whether it's I want to make you this website

1087
00:39:11.160 --> 00:39:12.720
in exchange for a job.

1088
00:39:12.720 --> 00:39:14.560
The point of Mosination, the point of everything

1089
00:39:14.560 --> 00:39:17.480
that you do at acquisition.com that I hope to live by example,

1090
00:39:17.480 --> 00:39:20.280
is that you give first without asking.

1091
00:39:20.280 --> 00:39:21.840
You're doing it wrong, right?

1092
00:39:21.840 --> 00:39:23.000
You think, and the way I was like,

1093
00:39:23.000 --> 00:39:23.840
hey, in the spirit of Mosin,

1094
00:39:23.840 --> 00:39:25.280
it's like you're not doing in the spirit of Mosination.

1095
00:39:25.280 --> 00:39:27.040
You're doing the spirit of John, right?

1096
00:39:27.040 --> 00:39:29.000
You're doing the spirit of you.

1097
00:39:29.000 --> 00:39:31.200
The way that you do it is that you give,

1098
00:39:31.200 --> 00:39:33.360
and then you give, and then you give,

1099
00:39:33.360 --> 00:39:34.920
and then you give, and you keep on giving

1100
00:39:34.920 --> 00:39:37.400
until that person is like, dude, what can I do for you?

1101
00:39:37.400 --> 00:39:39.200
And then you make your ask.

1102
00:39:39.200 --> 00:39:40.560
Like whenever I get frustrated,

1103
00:39:40.560 --> 00:39:43.160
and I think like, why do I even bother doing this?

1104
00:39:43.160 --> 00:39:44.760
Like I think about giving up.

1105
00:39:44.760 --> 00:39:48.520
I just think this is where most people stop,

1106
00:39:48.520 --> 00:39:50.640
and this is why they don't win.

1107
00:39:50.640 --> 00:39:53.920
It transitions into one of my most you sayings to myself.

1108
00:39:53.920 --> 00:39:56.120
I don't say a lot out loud, but to myself.

1109
00:39:56.120 --> 00:39:57.560
It's like, I won't do my best.

1110
00:39:57.560 --> 00:39:58.920
I'll do what's required.

1111
00:39:59.040 --> 00:40:01.560
And so right now, what is required for you to win

1112
00:40:01.560 --> 00:40:03.000
or get a job or get the skill?

1113
00:40:03.000 --> 00:40:04.680
It might be better than your best.

1114
00:40:04.680 --> 00:40:05.800
And so it just means that your best

1115
00:40:05.800 --> 00:40:07.280
just needs to get better.

1116
00:40:07.280 --> 00:40:08.560
All right, so you might be rallied out

1117
00:40:08.560 --> 00:40:09.680
and be like, I'm gonna go do this

1118
00:40:09.680 --> 00:40:11.360
and take over the world and make all the money.

1119
00:40:11.360 --> 00:40:14.000
So, but you're like, fuck, I gotta pay bills.

1120
00:40:14.000 --> 00:40:16.160
So how do we take this and then put into reality?

1121
00:40:16.160 --> 00:40:19.120
Number one is, and this is how you transfer any skills

1122
00:40:19.120 --> 00:40:20.600
in general, by the way, a little sneak peak

1123
00:40:20.600 --> 00:40:21.840
from the book that's coming up.

1124
00:40:21.840 --> 00:40:24.000
All right, that makes it.

1125
00:40:25.200 --> 00:40:28.320
Is that you have, the person who's teaching you,

1126
00:40:28.320 --> 00:40:31.040
documents the skill, that's step one.

1127
00:40:31.040 --> 00:40:34.120
Step two is that they do it in front of you.

1128
00:40:34.120 --> 00:40:35.680
So they demonstrate it.

1129
00:40:35.680 --> 00:40:38.000
And the third piece is duplicate.

1130
00:40:38.000 --> 00:40:40.040
You do it in front of them.

1131
00:40:40.040 --> 00:40:42.600
So document, demonstrate, duplicate.

1132
00:40:42.600 --> 00:40:47.000
Now, I can do this and I can do this,

1133
00:40:47.000 --> 00:40:48.280
but you have to do this.

1134
00:40:49.280 --> 00:40:50.200
I can't duplicate it for you.

1135
00:40:50.200 --> 00:40:53.080
You have to take the stuff and actually execute on it.

1136
00:40:53.080 --> 00:40:55.680
And so if you're like, okay, Alex,

1137
00:40:55.680 --> 00:40:57.920
what does that actually look like in my life?

1138
00:40:59.400 --> 00:41:01.800
I'm actually a big, big proponent of having jobs.

1139
00:41:01.800 --> 00:41:03.720
And I think that's probably taboo nowadays,

1140
00:41:03.720 --> 00:41:07.160
but yeah, why not get paid to learn shit?

1141
00:41:07.160 --> 00:41:09.320
And if you're like, well, the place that I work at

1142
00:41:09.320 --> 00:41:10.280
doesn't teach me anything,

1143
00:41:10.280 --> 00:41:13.840
then you should absolutely go apply for other jobs,

1144
00:41:13.840 --> 00:41:15.520
like change your conditions.

1145
00:41:15.520 --> 00:41:20.520
All right, so I'm all about get paid to learn.

1146
00:41:21.400 --> 00:41:24.160
And as an aside, the reason that keeping your living expenses

1147
00:41:24.160 --> 00:41:26.600
low is so important is because if let's say

1148
00:41:26.600 --> 00:41:28.200
you make $100,000 a year now and you're like,

1149
00:41:28.200 --> 00:41:29.720
oh, it's got a pretty good white collar job right now,

1150
00:41:29.720 --> 00:41:31.080
but I really want to get into this.

1151
00:41:31.080 --> 00:41:33.800
Then it might mean that you have to go from $100,000

1152
00:41:33.800 --> 00:41:36.880
a year to $30,000 a year to learn the skill

1153
00:41:36.880 --> 00:41:39.640
because right now you go from earning to learning.

1154
00:41:39.640 --> 00:41:41.640
All right, and like I want to tell you,

1155
00:41:41.640 --> 00:41:43.280
like I walked this walk.

1156
00:41:43.280 --> 00:41:46.720
So I was a management consultant at a boutique strategy firm

1157
00:41:46.720 --> 00:41:49.040
in DC, like we did, like I had a top secret clearance.

1158
00:41:49.040 --> 00:41:51.400
I was 20, like I did shit that people could brag about.

1159
00:41:51.400 --> 00:41:52.240
All right.

1160
00:41:52.280 --> 00:41:54.480
And then I went and became a personal trainer at a gym

1161
00:41:54.480 --> 00:41:57.200
for $14 an hour.

1162
00:41:57.200 --> 00:41:58.680
Think about that.

1163
00:41:58.680 --> 00:42:02.080
I went from a high-rise condo that I owned

1164
00:42:02.080 --> 00:42:04.400
to renting someone's bedroom for $400 a month

1165
00:42:04.400 --> 00:42:05.680
in their house, all right?

1166
00:42:05.680 --> 00:42:08.280
And I went from having Hugo Boss suits

1167
00:42:08.280 --> 00:42:11.520
to wearing beast mode engaged t-shirts, all right?

1168
00:42:11.520 --> 00:42:14.720
And showing up at 4am, like ready to teach Nancy

1169
00:42:14.720 --> 00:42:16.960
how to lose the last five, you know what I mean?

1170
00:42:16.960 --> 00:42:20.640
And so like I had to swallow my pride on this

1171
00:42:20.640 --> 00:42:25.640
because I wanted to, I wanted to get learned, all right?

1172
00:42:28.040 --> 00:42:30.880
And so you have to be willing to relinquish

1173
00:42:30.880 --> 00:42:33.800
getting paid for getting learned, all right?

1174
00:42:33.800 --> 00:42:35.560
Once you get yourself in an environment

1175
00:42:35.560 --> 00:42:37.040
where you actually have a business

1176
00:42:37.040 --> 00:42:39.000
that is investing in you and it doesn't mean

1177
00:42:39.000 --> 00:42:40.920
that they actually have to write checks to be clear.

1178
00:42:40.920 --> 00:42:42.880
Now if you have a company that's willing to do that, awesome.

1179
00:42:42.880 --> 00:42:45.920
Level one is you communicate to them,

1180
00:42:45.920 --> 00:42:47.680
this is the skill that I would like to learn

1181
00:42:47.680 --> 00:42:49.520
upon working for you.

1182
00:42:49.680 --> 00:42:50.920
And so you're like, these are the skills

1183
00:42:50.920 --> 00:42:53.400
that I bring to the table, this is what I would like to learn.

1184
00:42:53.400 --> 00:42:55.640
Is this a place that I can do that?

1185
00:42:55.640 --> 00:42:57.560
Any business owner loves clear communication.

1186
00:42:57.560 --> 00:42:58.560
And it's like, if you want to learn that

1187
00:42:58.560 --> 00:42:59.600
and if they're a good business owner,

1188
00:42:59.600 --> 00:43:00.680
they'll be like, let me help you support.

1189
00:43:00.680 --> 00:43:03.400
Now if they're like, my job isn't to teach you wrong place.

1190
00:43:03.400 --> 00:43:06.120
And I'm being real, a lot of business owners will like that.

1191
00:43:06.120 --> 00:43:08.680
And so if you're like, well, man, it's not fair.

1192
00:43:08.680 --> 00:43:11.280
It's like, well, I mean, getting paid to learn

1193
00:43:11.280 --> 00:43:12.600
is a pretty good deal.

1194
00:43:12.600 --> 00:43:14.840
It's just that that's not always what happens.

1195
00:43:14.840 --> 00:43:16.280
And so I would say switch your conditions.

1196
00:43:16.280 --> 00:43:17.800
But let's say you finally get into a business

1197
00:43:17.800 --> 00:43:19.200
that teaches you stuff.

1198
00:43:19.200 --> 00:43:20.200
And you feel like you're getting better,

1199
00:43:20.200 --> 00:43:21.040
you're moving faster.

1200
00:43:21.040 --> 00:43:23.400
I'd say once you feel like, and this is a big caveat,

1201
00:43:23.400 --> 00:43:25.520
this is like fucking caveat,

1202
00:43:25.520 --> 00:43:28.520
once you have nothing left to learn from the current position,

1203
00:43:28.520 --> 00:43:30.040
you communicate to them that you feel

1204
00:43:30.040 --> 00:43:31.920
like you're learning a slow down.

1205
00:43:31.920 --> 00:43:33.800
And then they may give you another opportunity

1206
00:43:33.800 --> 00:43:34.960
to learn more.

1207
00:43:34.960 --> 00:43:37.080
And if they feel like they can't actually teach you

1208
00:43:37.080 --> 00:43:40.280
internally, they might say, I'll pay $10,000 a year

1209
00:43:40.280 --> 00:43:41.840
for you to go through these programs

1210
00:43:41.840 --> 00:43:43.440
or workshops or seminars or whatever,

1211
00:43:43.440 --> 00:43:45.160
so you can, or certifications,

1212
00:43:45.160 --> 00:43:46.840
so you can continue to level up your skill.

1213
00:43:46.840 --> 00:43:48.520
A good employer will do that.

1214
00:43:48.520 --> 00:43:49.800
And if you look at big corporate America

1215
00:43:49.800 --> 00:43:50.800
as much as people should on them,

1216
00:43:50.800 --> 00:43:52.560
they usually have pretty strong corporate

1217
00:43:52.560 --> 00:43:54.560
reinvestment programs, like they, why?

1218
00:43:54.560 --> 00:43:58.080
Because they want their human capital to appreciate.

1219
00:43:58.080 --> 00:43:59.520
And so if you can pay $10,000,

1220
00:43:59.520 --> 00:44:01.440
because they do the same SME 500,

1221
00:44:01.440 --> 00:44:03.440
except the SMU 500, right?

1222
00:44:03.440 --> 00:44:05.480
They invest in you $10,000,

1223
00:44:05.480 --> 00:44:07.280
and they get a three times more valuable person.

1224
00:44:07.280 --> 00:44:08.840
Like one of the biggest arbitrage opportunity

1225
00:44:08.840 --> 00:44:10.880
side of this is me talking to business owners.

1226
00:44:10.880 --> 00:44:12.440
That's out there in the marketplace

1227
00:44:12.440 --> 00:44:15.080
is that you can pay 25% more for an A player

1228
00:44:15.080 --> 00:44:17.560
versus a B player and you get five times the output.

1229
00:44:17.560 --> 00:44:19.280
So like you think about value arbitrage,

1230
00:44:19.280 --> 00:44:21.440
like instead of paying 100 a year if that's the market,

1231
00:44:21.440 --> 00:44:23.480
pay 125 and get five times the output,

1232
00:44:23.480 --> 00:44:24.960
why would you never make that trade?

1233
00:44:24.960 --> 00:44:26.200
Once you've done this,

1234
00:44:26.200 --> 00:44:27.920
here are the three steps that you can transition

1235
00:44:27.920 --> 00:44:29.840
from getting learned back to getting paid.

1236
00:44:29.840 --> 00:44:32.560
All right, number one is that you live below your means.

1237
00:44:33.880 --> 00:44:35.840
The less risk you take in your personal life,

1238
00:44:35.840 --> 00:44:37.920
the more risk you take in your business life.

1239
00:44:37.920 --> 00:44:40.080
Let's say that I own a business that does

1240
00:44:40.080 --> 00:44:42.280
$10 million a year in profit, okay?

1241
00:44:42.280 --> 00:44:46.200
If my living expenses are $800,000 a month,

1242
00:44:46.200 --> 00:44:50.200
then I'm not leaving much for the business to weather a storm.

1243
00:44:50.200 --> 00:44:51.560
And let's say that it's all fixed.

1244
00:44:51.560 --> 00:44:54.040
It's like mortgages and cars and jets

1245
00:44:54.040 --> 00:44:55.320
and all the other stuff that I do.

1246
00:44:55.320 --> 00:44:57.840
Well, if there's a hiccup, the business might go under.

1247
00:44:57.840 --> 00:45:00.520
But if I live on $400,000 a year,

1248
00:45:00.520 --> 00:45:04.200
then I have $9.6 million every year

1249
00:45:04.200 --> 00:45:06.640
that I can go on the offensive and I can take huge swings.

1250
00:45:06.640 --> 00:45:08.040
I can be like, I wanna buy this company

1251
00:45:08.040 --> 00:45:10.920
even though it's risky, but it might 10X, right?

1252
00:45:10.920 --> 00:45:13.240
And that offense is what you have to do as an entrepreneur

1253
00:45:13.240 --> 00:45:15.280
because you have to take calculated risk.

1254
00:45:15.280 --> 00:45:16.680
But you don't wanna introduce multiple risk

1255
00:45:16.680 --> 00:45:20.440
if you can control it and this is controllable risk, okay?

1256
00:45:20.440 --> 00:45:23.360
So you live below your means so you can stack cash, okay?

1257
00:45:23.360 --> 00:45:26.920
Level two is that you take this cash and I wanna be clear,

1258
00:45:26.920 --> 00:45:28.840
I'm actually kind of against side hustles

1259
00:45:28.840 --> 00:45:30.200
as a long term thing.

1260
00:45:30.200 --> 00:45:32.800
I'm pro them as a way to transition.

1261
00:45:32.800 --> 00:45:34.280
Again, this is how I play the game.

1262
00:45:34.280 --> 00:45:36.000
I'm a maximizer, like I wanna win big.

1263
00:45:36.000 --> 00:45:37.280
And so I think if you follow my stuff

1264
00:45:37.280 --> 00:45:39.040
that you probably wanna win big too.

1265
00:45:39.040 --> 00:45:40.800
And so if you're doing a side hustles

1266
00:45:40.800 --> 00:45:43.040
because you wanted to eventually become your main hustle,

1267
00:45:43.040 --> 00:45:44.640
not because you're just looking for side income.

1268
00:45:44.640 --> 00:45:45.760
I'm just not that guy.

1269
00:45:45.760 --> 00:45:47.240
There's other guys who will talk about that.

1270
00:45:47.240 --> 00:45:48.720
It's just not me, all right?

1271
00:45:48.720 --> 00:45:51.320
And so you stack the cash, you can start your side hustle

1272
00:45:51.320 --> 00:45:56.080
and you keep doing this until you have a matched your income.

1273
00:45:56.080 --> 00:45:58.360
So you start your side hustle and you keep doing it

1274
00:45:58.360 --> 00:46:00.600
until you match your current income.

1275
00:46:00.600 --> 00:46:01.760
And if you're like, wait a second,

1276
00:46:01.760 --> 00:46:02.960
for me to match my current income,

1277
00:46:02.960 --> 00:46:04.760
I'm gonna have to work 40 hours a week in my job

1278
00:46:04.760 --> 00:46:07.920
and then work another 40 hours a week at this thing.

1279
00:46:07.960 --> 00:46:09.240
Yup.

1280
00:46:09.240 --> 00:46:11.680
And the thing is, and this is just one man's caveat.

1281
00:46:11.680 --> 00:46:13.120
There's gonna be different takes on this.

1282
00:46:13.120 --> 00:46:15.240
If you're not making more money

1283
00:46:15.240 --> 00:46:17.560
on 40 hours a week of the new thing,

1284
00:46:17.560 --> 00:46:18.800
you're still not doing it right.

1285
00:46:18.800 --> 00:46:20.440
Remember I went from employed to self-employed?

1286
00:46:20.440 --> 00:46:21.760
You have a level of leverage.

1287
00:46:21.760 --> 00:46:23.280
So those 40 hours, you have more leverage

1288
00:46:23.280 --> 00:46:25.080
than the 40 hours that you're working for someone else.

1289
00:46:25.080 --> 00:46:27.080
And if you're not making more there,

1290
00:46:27.080 --> 00:46:28.720
then you're like, you still need to keep doing it

1291
00:46:28.720 --> 00:46:32.000
until you've matched at least, at least match your income.

1292
00:46:32.000 --> 00:46:33.960
And then once you've matched the income,

1293
00:46:33.960 --> 00:46:36.440
I would say sustain it for six months, two reasons.

1294
00:46:36.480 --> 00:46:37.960
One is, because now you're gonna be making double time.

1295
00:46:37.960 --> 00:46:39.040
You're gonna be making money on your job,

1296
00:46:39.040 --> 00:46:40.040
you're gonna be making money on your,

1297
00:46:40.040 --> 00:46:41.320
so you're gonna be doubling your actual income,

1298
00:46:41.320 --> 00:46:42.840
which means you might be like through or forexing

1299
00:46:42.840 --> 00:46:43.680
your savings.

1300
00:46:43.680 --> 00:46:45.040
And the second is so that you don't just quit

1301
00:46:45.040 --> 00:46:46.280
on the one good month you had

1302
00:46:46.280 --> 00:46:47.640
because you sent up for clients.

1303
00:46:47.640 --> 00:46:49.560
Okay, we wanna make sure that it's not seasonal,

1304
00:46:49.560 --> 00:46:50.720
we wanna make sure that we can,

1305
00:46:50.720 --> 00:46:52.040
like it's not just normal volatility

1306
00:46:52.040 --> 00:46:54.360
because really small businesses, super volatile.

1307
00:46:54.360 --> 00:46:56.040
Right, if you're selling two customers a month,

1308
00:46:56.040 --> 00:46:57.280
if all of a sudden you sell zero,

1309
00:46:57.280 --> 00:46:59.000
your income goes to zero, right?

1310
00:46:59.000 --> 00:47:00.600
Unless you retain the people, et cetera, et cetera.

1311
00:47:00.600 --> 00:47:05.320
And then cut the cord and go out on your own.

1312
00:47:05.320 --> 00:47:07.600
Spread those wings, get a beautiful butterfly.

1313
00:47:07.600 --> 00:47:09.480
And a lot of people look at this thing,

1314
00:47:09.480 --> 00:47:11.080
the side hustle and they're like,

1315
00:47:11.080 --> 00:47:14.320
but this isn't Facebook, like this isn't sure.

1316
00:47:14.320 --> 00:47:16.360
It's not, but I think a lot of people

1317
00:47:16.360 --> 00:47:17.600
put under pressure on themselves

1318
00:47:17.600 --> 00:47:21.000
by expecting their next thing to be a trillion dollar company.

1319
00:47:21.000 --> 00:47:24.920
And the likely that happens, super, super, super, super, super,

1320
00:47:24.920 --> 00:47:25.880
super small.

1321
00:47:25.880 --> 00:47:27.600
But again, it's like what are your goals?

1322
00:47:27.600 --> 00:47:29.480
If your goals are just like get out of poverty,

1323
00:47:29.480 --> 00:47:32.480
get above the middle class, get into the upper class,

1324
00:47:32.480 --> 00:47:34.560
like a lot of businesses can get you there.

1325
00:47:34.560 --> 00:47:36.800
If you want to be a trillionaire, there's only a few.

1326
00:47:36.800 --> 00:47:40.880
And also what we don't see is the zillions of not Zuckerbergs

1327
00:47:40.880 --> 00:47:42.960
who put everything into their social media thing

1328
00:47:42.960 --> 00:47:44.000
and it didn't work.

1329
00:47:44.000 --> 00:47:45.520
I'm a big fan of service businesses

1330
00:47:45.520 --> 00:47:46.920
because it costs you nothing to start.

1331
00:47:46.920 --> 00:47:47.760
It's just your time.

1332
00:47:47.760 --> 00:47:49.160
You have no overhead in the beginning.

1333
00:47:49.160 --> 00:47:50.880
Those ones are harder to scale,

1334
00:47:50.880 --> 00:47:54.040
but you'll usually learn a lot of other skills during that product.

1335
00:47:54.040 --> 00:47:55.840
Like I learned more from running a gym

1336
00:47:55.840 --> 00:47:57.960
that allowed me to do gym launch.

1337
00:47:57.960 --> 00:47:59.080
Like if I hadn't run the gyms,

1338
00:47:59.080 --> 00:48:00.600
I don't think I would have been able to do gym launch.

1339
00:48:00.600 --> 00:48:03.480
And so think of whatever this is as the stepping stone.

1340
00:48:03.480 --> 00:48:05.200
And again, we're still trying to get learned.

1341
00:48:05.200 --> 00:48:06.560
Like that doesn't change.

1342
00:48:06.560 --> 00:48:08.280
We're just going to also get paid as we do it.

1343
00:48:08.280 --> 00:48:09.280
And that's one of the beautiful things

1344
00:48:09.280 --> 00:48:11.560
about entrepreneurship is that once you get past a certain level,

1345
00:48:11.560 --> 00:48:13.400
you get to get paid to learn more.

1346
00:48:13.400 --> 00:48:14.520
And I think that's like for me,

1347
00:48:14.520 --> 00:48:17.320
why I love the game so much is that you just keep getting better

1348
00:48:17.320 --> 00:48:18.640
and get paid to get better.

1349
00:48:18.640 --> 00:48:19.960
Don't judge yourself on the side hustle.

1350
00:48:19.960 --> 00:48:22.640
And especially, don't listen to other people's judgment

1351
00:48:22.640 --> 00:48:23.600
on your side hustle.

1352
00:48:23.600 --> 00:48:25.760
You know any people, like I was like Vanderbilt,

1353
00:48:25.760 --> 00:48:26.960
Magna Cum Laude, you know,

1354
00:48:26.960 --> 00:48:29.960
White Collar Consultant job, like had above Harvard,

1355
00:48:29.960 --> 00:48:32.480
you know, GMAT score, say like,

1356
00:48:32.600 --> 00:48:34.320
you want to become a trainer?

1357
00:48:35.360 --> 00:48:36.600
Like the amount of people that like,

1358
00:48:36.600 --> 00:48:38.040
I used to compete against friend of me

1359
00:48:38.040 --> 00:48:38.880
is whatever you want to call it.

1360
00:48:38.880 --> 00:48:41.000
They were like, oh great, he's out of the race.

1361
00:48:41.000 --> 00:48:41.840
You know what I mean?

1362
00:48:41.840 --> 00:48:44.280
Like he's, he's doing stuff to make himself happy, right?

1363
00:48:44.280 --> 00:48:46.720
You know, I was younger and I probably had more fucked up

1364
00:48:46.720 --> 00:48:48.120
shit in my head than I do now.

1365
00:48:48.120 --> 00:48:50.280
But like, I used to just think about them all the time

1366
00:48:50.280 --> 00:48:51.640
when I'd be sleeping on the floor and I'd be selling

1367
00:48:51.640 --> 00:48:52.800
where I was like, they're not willing to do this.

1368
00:48:52.800 --> 00:48:53.720
They're not willing to do this.

1369
00:48:53.720 --> 00:48:54.560
They're not willing to do this.

1370
00:48:54.560 --> 00:48:56.360
And then you come from behind, right?

1371
00:48:56.360 --> 00:48:58.320
And you do Kobe and you work twice a day.

1372
00:48:58.320 --> 00:48:59.600
And while they're working their job

1373
00:48:59.600 --> 00:49:01.160
and they have their three series BMW

1374
00:49:01.160 --> 00:49:02.720
and they're, you know, going out to dinner

1375
00:49:02.720 --> 00:49:04.200
and they have the football on the weekends

1376
00:49:04.200 --> 00:49:05.360
and their fantasy league.

1377
00:49:05.360 --> 00:49:07.480
And you have none of that.

1378
00:49:07.480 --> 00:49:09.160
Just know that you're doing your two days

1379
00:49:09.160 --> 00:49:11.440
during the summer or your three days during the summer.

1380
00:49:11.440 --> 00:49:13.560
But because your rate of input is so much higher

1381
00:49:13.560 --> 00:49:16.360
than theirs is, you will catch up and you also pass them.

1382
00:49:16.360 --> 00:49:17.600
And that's if you want to compare.

1383
00:49:17.600 --> 00:49:20.320
And the main reason I don't think you should judge yourself

1384
00:49:20.320 --> 00:49:23.160
on whatever you do is because in my opinion,

1385
00:49:23.160 --> 00:49:26.200
like I'm married to the game, right, more than anything.

1386
00:49:26.200 --> 00:49:27.640
Like I'm going to keep playing the game

1387
00:49:27.640 --> 00:49:29.840
because I love the game.

1388
00:49:29.920 --> 00:49:33.320
And so if you want to play the game a long time,

1389
00:49:33.320 --> 00:49:36.040
then it's the game itself that you want to stick with

1390
00:49:36.040 --> 00:49:38.120
rather than the vehicle you're in, right?

1391
00:49:38.120 --> 00:49:40.480
Most entrepreneurs start more than one business

1392
00:49:40.480 --> 00:49:41.320
over their career.

1393
00:49:41.320 --> 00:49:42.360
You are above the business.

1394
00:49:42.360 --> 00:49:44.760
The problem is that people identify so closely,

1395
00:49:44.760 --> 00:49:46.680
like their identity is their business.

1396
00:49:46.680 --> 00:49:47.960
But you have to just think about it.

1397
00:49:47.960 --> 00:49:49.800
And this is me just trying to give you like a,

1398
00:49:49.800 --> 00:49:51.600
you know, big brother, what do you want to call it?

1399
00:49:51.600 --> 00:49:52.440
Piece of advice.

1400
00:49:52.440 --> 00:49:55.480
But like the further you can separate your identity

1401
00:49:55.480 --> 00:49:57.840
and your self-worth from the worth of the business,

1402
00:49:57.840 --> 00:49:59.560
the better off you'll be as an entrepreneur.

1403
00:49:59.560 --> 00:50:01.880
Because you also start to see as an asset

1404
00:50:01.880 --> 00:50:03.720
that can be sold, can create value in the asset,

1405
00:50:03.720 --> 00:50:06.000
you can make hard decisions, whereas if it's you,

1406
00:50:06.000 --> 00:50:07.480
you're like, what will people think?

1407
00:50:07.480 --> 00:50:10.680
It's like, I made a decision about a business that I own.

1408
00:50:10.680 --> 00:50:11.520
That's okay.

1409
00:50:11.520 --> 00:50:12.840
Simon Sinek is a great piece on this.

1410
00:50:12.840 --> 00:50:14.320
But when I learned the difference between

1411
00:50:14.320 --> 00:50:17.040
infinite and finite games, it really changed my perspective.

1412
00:50:17.040 --> 00:50:19.400
The infinite frame will always be the finite frame.

1413
00:50:19.400 --> 00:50:21.720
And there are finite games within every infinite game.

1414
00:50:21.720 --> 00:50:23.840
And so you have quarters, you have years, you have goals,

1415
00:50:23.840 --> 00:50:27.040
these are all finite games that we play in an infinite game.

1416
00:50:27.040 --> 00:50:31.600
And so when the US invaded Vietnam, we lost.

1417
00:50:31.600 --> 00:50:32.560
Why did we lose?

1418
00:50:32.560 --> 00:50:35.000
We lost a war of attrition, which was that

1419
00:50:35.000 --> 00:50:37.840
they were willing to play the game longer than we were.

1420
00:50:37.840 --> 00:50:38.680
All right.

1421
00:50:38.680 --> 00:50:40.000
And so the difference in a finite infinite game

1422
00:50:40.000 --> 00:50:43.040
is that a finite game has known players,

1423
00:50:43.040 --> 00:50:46.840
agreed upon roles, and an outcome, and an end.

1424
00:50:46.840 --> 00:50:48.120
That's why it's finite.

1425
00:50:48.120 --> 00:50:50.720
An infinite game has known and unknown players,

1426
00:50:50.720 --> 00:50:53.080
has no agreed upon roles, and the point of the game

1427
00:50:53.080 --> 00:50:54.400
is to keep the game going.

1428
00:50:54.400 --> 00:50:56.320
And so the problem that most entrepreneurs have

1429
00:50:56.320 --> 00:50:59.520
is they approach an infinite game with a finite frame.

1430
00:50:59.520 --> 00:51:02.560
They are the United States trying to invade Vietnam,

1431
00:51:02.560 --> 00:51:04.800
and you will lose every time.

1432
00:51:04.800 --> 00:51:06.000
Because there will be players who are playing

1433
00:51:06.000 --> 00:51:07.040
with an infinite frame.

1434
00:51:07.040 --> 00:51:08.800
And so let me give you two more examples of this.

1435
00:51:08.800 --> 00:51:12.520
If you want to get healthy, right, you don't win at health.

1436
00:51:12.520 --> 00:51:15.000
There's no end goal to being, you're like, okay,

1437
00:51:15.000 --> 00:51:17.440
I'm done working out, I did it, I've achieved it.

1438
00:51:17.440 --> 00:51:18.480
Right, of course not.

1439
00:51:18.480 --> 00:51:20.040
Right, same thing with marriage.

1440
00:51:20.040 --> 00:51:22.920
Right, like you're not, the point is to get married.

1441
00:51:22.920 --> 00:51:24.320
The point is to stay married.

1442
00:51:24.320 --> 00:51:27.320
The point is to stay in the game, to keep the game going.

1443
00:51:27.320 --> 00:51:30.040
Most of the games worth playing are infinite games,

1444
00:51:30.040 --> 00:51:33.200
not finite games, which means the point is to just play.

1445
00:51:33.200 --> 00:51:35.360
And so business, you don't win.

1446
00:51:35.360 --> 00:51:37.800
The point isn't to finish, because even if you were trying

1447
00:51:37.800 --> 00:51:40.400
to say you finished first, it's like, by what metric?

1448
00:51:40.400 --> 00:51:42.280
On what time period?

1449
00:51:42.280 --> 00:51:43.720
Has there anyone who's been the richest man

1450
00:51:43.720 --> 00:51:45.040
in the world for all time?

1451
00:51:47.240 --> 00:51:49.360
No, of course not.

1452
00:51:49.360 --> 00:51:51.360
Which means that anybody who would try to do that

1453
00:51:51.360 --> 00:51:53.040
is coming from a finite frame.

1454
00:51:53.080 --> 00:51:54.600
And so, but there have been people

1455
00:51:54.600 --> 00:51:56.520
who've won the game of business in my perspective

1456
00:51:56.520 --> 00:51:58.280
because they played their whole lives.

1457
00:51:58.280 --> 00:52:01.320
If you want to be a stronger player

1458
00:52:01.320 --> 00:52:04.560
and be somebody who can succeed as an entrepreneur,

1459
00:52:04.560 --> 00:52:07.440
then the day you start playing is the day you win,

1460
00:52:07.440 --> 00:52:09.680
and the day you stop playing is the day you lose.

1461
00:52:10.800 --> 00:52:15.040
And so the goal is to find games that you don't wanna quit.

1462
00:52:15.040 --> 00:52:17.920
That's where learning what you are into

1463
00:52:17.920 --> 00:52:21.640
from executing is the mega win here.

1464
00:52:21.640 --> 00:52:23.800
So for me, I found out that I actually liked business

1465
00:52:23.800 --> 00:52:25.480
more than I liked fitness, which is crazy,

1466
00:52:25.480 --> 00:52:27.640
because I loved fitness, getting into fitness.

1467
00:52:27.640 --> 00:52:29.560
But like the day I started my gym was the day,

1468
00:52:29.560 --> 00:52:32.000
my love for business outpaced my love for fitness.

1469
00:52:32.000 --> 00:52:34.440
I was like, this is amazing, this is so cool.

1470
00:52:34.440 --> 00:52:37.520
And so you have to find whatever that thing is,

1471
00:52:37.520 --> 00:52:41.440
and I'm be clear, like business sucks all the time.

1472
00:52:41.440 --> 00:52:43.240
But it's just that if you're willing to play,

1473
00:52:43.240 --> 00:52:44.880
and like there's plenty of times merit sucks,

1474
00:52:44.880 --> 00:52:46.560
there's plenty of time you don't wanna work out,

1475
00:52:46.560 --> 00:52:48.480
but it doesn't mean that I'm gonna stop working out.

1476
00:52:48.480 --> 00:52:49.920
It doesn't mean I'm gonna stop being merit,

1477
00:52:49.920 --> 00:52:51.760
it doesn't mean I'm gonna stop being in business.

1478
00:52:51.760 --> 00:52:53.840
And so I think if you can unlock that frame

1479
00:52:53.840 --> 00:52:56.320
that you wanna play until the day you die,

1480
00:52:56.320 --> 00:52:57.960
even if the vehicle changes,

1481
00:52:57.960 --> 00:53:01.600
even the players that you're playing with on the court change,

1482
00:53:01.600 --> 00:53:03.880
then you'll be the guy who stays on the court the longest.

1483
00:53:03.880 --> 00:53:05.840
You might think, oh, I don't like video editing,

1484
00:53:05.840 --> 00:53:08.000
or oh, I don't like dry cleaning, right?

1485
00:53:08.000 --> 00:53:09.760
I don't like mowing lawns, I don't like washing cars,

1486
00:53:09.760 --> 00:53:11.080
or whatever it is, right?

1487
00:53:11.080 --> 00:53:13.160
But the higher up you get in business,

1488
00:53:13.160 --> 00:53:15.360
the more all businesses are the same, right?

1489
00:53:15.360 --> 00:53:17.280
You're gonna have marketing, you're gonna have sales,

1490
00:53:17.280 --> 00:53:19.320
you're gonna have product, you're gonna have customer success,

1491
00:53:19.360 --> 00:53:21.200
you're gonna have customer support, you're gonna have IT,

1492
00:53:21.200 --> 00:53:22.760
you're gonna have finance, you're gonna have legal,

1493
00:53:22.760 --> 00:53:24.480
like all these departments are gonna,

1494
00:53:24.480 --> 00:53:27.320
these functions will more or less exist in every business.

1495
00:53:27.320 --> 00:53:32.320
And so my advice is like a lot of people quit industries

1496
00:53:32.320 --> 00:53:35.440
when they really actually just quit a function of a job.

1497
00:53:35.440 --> 00:53:37.440
And so they're like, oh, entertainment wasn't for me,

1498
00:53:37.440 --> 00:53:39.400
it's like do you know how many jobs there are in entertainment?

1499
00:53:39.400 --> 00:53:43.120
Like you might love sales in entertainment,

1500
00:53:43.120 --> 00:53:46.560
and you were in the actual product side, right?

1501
00:53:46.560 --> 00:53:48.760
Or the production side, or the support side.

1502
00:53:48.840 --> 00:53:50.640
And so again, remember I said earlier

1503
00:53:50.640 --> 00:53:52.240
that like if you stay in the same game longer,

1504
00:53:52.240 --> 00:53:55.000
you'll be likely to get more reps in and you'll do better.

1505
00:53:55.000 --> 00:53:57.040
Well, then maybe stay in the same industry,

1506
00:53:57.040 --> 00:53:58.240
but switch roles.

1507
00:53:58.240 --> 00:54:00.280
Now in a micro business like your side hustle,

1508
00:54:00.280 --> 00:54:01.480
you'll get to taste all the roles,

1509
00:54:01.480 --> 00:54:03.840
and you'll find out the things that you like more.

1510
00:54:03.840 --> 00:54:06.320
And that's where you can shift some of your attention there,

1511
00:54:06.320 --> 00:54:07.960
and then you backfill people who are

1512
00:54:07.960 --> 00:54:09.960
because you have a little bit of context,

1513
00:54:09.960 --> 00:54:11.640
good enough to do what you do better.

1514
00:54:11.640 --> 00:54:13.800
You demonstrate, sorry, you document, you demonstrate,

1515
00:54:13.800 --> 00:54:17.200
you duplicate, they duplicate, and then they run with it, right?

1516
00:54:17.200 --> 00:54:21.680
And so today, for example, my, what I do

1517
00:54:21.680 --> 00:54:24.000
looks very different than what I did 10 years ago.

1518
00:54:24.000 --> 00:54:25.080
But I like what I did 10 years ago

1519
00:54:25.080 --> 00:54:26.360
was the highest value school I had then,

1520
00:54:26.360 --> 00:54:27.520
which was just closing.

1521
00:54:27.520 --> 00:54:28.960
That's all I did, I consults all day

1522
00:54:28.960 --> 00:54:30.960
because I got trainers to train for me.

1523
00:54:30.960 --> 00:54:32.000
I knew how to run the ads,

1524
00:54:32.000 --> 00:54:32.960
and that didn't take me that long,

1525
00:54:32.960 --> 00:54:34.080
took me two, three hours a week

1526
00:54:34.080 --> 00:54:36.840
to run the ads, make them and manage them.

1527
00:54:36.840 --> 00:54:40.280
The rest of my time was sitting in appointments and closing,

1528
00:54:40.280 --> 00:54:42.200
and I had somebody else make the phone calls and text for me.

1529
00:54:42.200 --> 00:54:44.000
So I would just sit there and close,

1530
00:54:44.000 --> 00:54:46.200
because that was the highest value thing I could do at the time.

1531
00:54:46.200 --> 00:54:48.240
But the thing is, is that your baseline skill

1532
00:54:48.240 --> 00:54:49.360
will continue to level up.

1533
00:54:49.360 --> 00:54:52.200
If I lost everything then, like if I lost everything,

1534
00:54:52.200 --> 00:54:53.920
I knew that I would sell cars during the day,

1535
00:54:53.920 --> 00:54:55.480
and I would strip at night, right?

1536
00:54:55.480 --> 00:54:57.520
Once I had that skill, before I had the skill of sales,

1537
00:54:57.520 --> 00:54:59.040
I would drive Uber during the day at strip at night,

1538
00:54:59.040 --> 00:55:01.120
because I had the skill of being in shape, right?

1539
00:55:01.120 --> 00:55:03.200
And so your baseline continues to grow,

1540
00:55:03.200 --> 00:55:04.400
like being the best car sales,

1541
00:55:04.400 --> 00:55:06.520
when you make 400, 500, maybe even a million here,

1542
00:55:06.520 --> 00:55:07.440
at some of the best dealerships,

1543
00:55:07.440 --> 00:55:09.000
like if you're at absolute savage,

1544
00:55:09.000 --> 00:55:10.560
and I would consider myself an absolute savage,

1545
00:55:10.560 --> 00:55:11.560
if I was gonna do that, right?

1546
00:55:11.560 --> 00:55:14.680
If I lost it all, I'd be there 12 hours a day, for sure.

1547
00:55:14.680 --> 00:55:17.000
And then, once I learned how to market marketing

1548
00:55:17.000 --> 00:55:19.800
and sales together, my new minimum was a million bucks here,

1549
00:55:19.800 --> 00:55:20.920
because I knew that I could sit in front

1550
00:55:20.920 --> 00:55:22.440
of any brick and mortar business,

1551
00:55:22.440 --> 00:55:24.000
and I could get them leads and I could close.

1552
00:55:24.000 --> 00:55:25.400
Once you have that, you can make a million,

1553
00:55:25.400 --> 00:55:26.240
two million, three million.

1554
00:55:26.240 --> 00:55:27.240
I can't go below that,

1555
00:55:27.240 --> 00:55:29.760
because I have skills that are above that, right?

1556
00:55:29.760 --> 00:55:31.560
You keep learning these skills,

1557
00:55:31.560 --> 00:55:33.000
as you keep doing your business,

1558
00:55:33.000 --> 00:55:35.240
and you might, you'll start ping ponging

1559
00:55:35.240 --> 00:55:36.400
in different directions,

1560
00:55:36.400 --> 00:55:38.520
until you hone in on the things that you're best at.

1561
00:55:38.520 --> 00:55:40.160
And so I think if you can find that game,

1562
00:55:40.160 --> 00:55:43.200
make it the meta skill of continuing to learn,

1563
00:55:43.200 --> 00:55:44.760
then you won't stop.

1564
00:55:44.760 --> 00:55:47.280
And then at that point, it means you win by default.

1565
00:55:47.280 --> 00:55:49.440
So we had talked about a lot of stuff, right?

1566
00:55:49.440 --> 00:55:51.480
But the question is like, what's the next thing you're gonna do?

1567
00:55:51.480 --> 00:55:53.400
And so I'm just gonna give you the advice that I followed,

1568
00:55:53.400 --> 00:55:55.080
which is like, what was the first thing I did

1569
00:55:55.080 --> 00:55:57.120
to get myself out of this million dollar,

1570
00:55:57.120 --> 00:55:58.720
or below a million dollar category,

1571
00:55:58.720 --> 00:56:00.080
to the above million dollar category,

1572
00:56:00.080 --> 00:56:02.800
and then to eventually the 0.4% 10 million dollar category.

1573
00:56:02.800 --> 00:56:05.120
And it was actually just learning how to sell,

1574
00:56:05.120 --> 00:56:07.880
because if you can't sell anything, you can't make money.

1575
00:56:07.880 --> 00:56:09.120
It's the first part of the equation.

1576
00:56:09.120 --> 00:56:10.600
Number of sales times.

1577
00:56:10.600 --> 00:56:11.520
If you have no sales,

1578
00:56:11.520 --> 00:56:12.720
no matter how good the life's of values,

1579
00:56:12.720 --> 00:56:14.440
if no one buys it, zero.

1580
00:56:14.440 --> 00:56:16.760
You