WEBVTT 1 00:00:00.000 --> 00:00:05.320 This is where most people stop and this is why they don't win. It transitions into one of my my most 2 00:00:05.320 --> 00:00:08.600 You sayings to myself. I don't say a lot out loud, but to myself 3 00:00:08.600 --> 00:00:15.560 It's like I won't do my best. I'll do what's required and so right now what is required for you to win or get a job or get the skill 4 00:00:15.560 --> 00:00:19.160 It might be better than your best and so it just means that your best just needs to get better 5 00:00:22.560 --> 00:00:27.520 Welcome to the game where we talk about how to sell more stuff to more people in more ways and build businesses worth owning 6 00:00:27.520 --> 00:00:33.120 I'm trying to build a billion dollar thing with acquisition.com. I always wish pesos, musk and Buffett had documented their journey 7 00:00:33.120 --> 00:00:35.440 So I'm doing it for the rest of us. Please share and enjoy 8 00:00:37.760 --> 00:00:44.600 One in every 250 businesses does over 10 million dollars a year in sales and that means that 99% of entrepreneurs never hit it 9 00:00:44.600 --> 00:00:49.420 Every business that I started since I was 25 has crossed 10 million B2B services with Jim 10 00:00:49.420 --> 00:00:56.240 Launch B2C consumer products with prestige labs or something company Allen are B2B software in acquisition.com 11 00:00:56.280 --> 00:01:01.120 Which is an investment firm for all of the money that we made during those businesses to invest in other ones 12 00:01:01.120 --> 00:01:07.680 It's a really confident that I can talk to the points of helping you go from zero to million million to 10 million and beyond 13 00:01:07.680 --> 00:01:12.900 And so this is just a visual put this in contact 90% of businesses never hit a 14 00:01:13.480 --> 00:01:15.480 Million dollars a year in sales 15 00:01:15.480 --> 00:01:22.480 90% doesn't look that way on Instagram, but this is the this is the vast majority of businesses, right now 9% of businesses 16 00:01:23.040 --> 00:01:25.040 across this million dollar 17 00:01:25.040 --> 00:01:29.280 Threshold, right and then only 0.4% which is 1 in 18 00:01:30.480 --> 00:01:37.480 250 do 10 million plus it's so rare and so the nice thing is that success does leave clues 19 00:01:37.480 --> 00:01:42.920 But want to kind of separate this into two major categories one is the entrepreneur and the others the opportunity vehicle 20 00:01:42.920 --> 00:01:46.080 They're pursuing you'll notice I said leverage rather than opportunity vehicle 21 00:01:46.080 --> 00:01:49.640 But fundamentally leverages the difference in what you put in and what you get out 22 00:01:49.640 --> 00:01:56.120 And so you want to have the best entrepreneur getting the most out of what they put in and so if you have those two things together 23 00:01:56.120 --> 00:02:00.520 Then you create a 10 million dollar plus business and if you've consumed any my other content 24 00:02:00.520 --> 00:02:04.960 I used to talk about how entrepreneurs those three main things you've got skills you've got character traits 25 00:02:04.960 --> 00:02:08.640 You've got beliefs. I've thought about this more and I've actually simplified it to one degree 26 00:02:08.640 --> 00:02:11.800 Which is I think you just have skills and beliefs 27 00:02:12.640 --> 00:02:17.320 Character traits if you think about this you're like I want to become patient 28 00:02:17.680 --> 00:02:22.680 Patient is just a general term for lots of little skills and so if you want to become more patient 29 00:02:22.680 --> 00:02:27.600 You want to do things that patient people do and that means that if I can train someone to become more patient 30 00:02:27.600 --> 00:02:31.640 Then patients is a skill and so as a total side quest on this 31 00:02:31.760 --> 00:02:37.640 What's interesting about this is that you've probably heard people say soft skills and like hard skills in my opinion 32 00:02:37.640 --> 00:02:40.400 Hard skills are just skills that are easy to measure 33 00:02:40.800 --> 00:02:42.600 Soft skills are just hard to measure 34 00:02:42.600 --> 00:02:48.240 But they're both 100% skills that you can train and improve and so if we say man 35 00:02:48.240 --> 00:02:52.440 I wish that guy had better people skills what we mean is 100 micro skills that are like 36 00:02:52.440 --> 00:02:57.240 I wish you would smile when someone walked in the room. Can I train someone to do that? Absolutely if I said hey 37 00:02:57.240 --> 00:03:03.080 I wish you would greet someone by their first name immediately every time they walk in the door right boom 38 00:03:03.080 --> 00:03:06.640 That's trainable. I wish someone wouldn't interrupt. It's like, okay 39 00:03:06.640 --> 00:03:11.160 Well, we can just give someone a cookie every time they don't interrupt someone and let someone finish their statement 40 00:03:11.160 --> 00:03:15.800 And then we train them and so all of these soft skills are just soft because they're hard to measure 41 00:03:16.000 --> 00:03:22.880 Does it mean that they're not skills or they're not important and oftentimes most of us know that like within an organization like the way that you gain 42 00:03:22.880 --> 00:03:26.480 Influences the soft skills that are hard to measure but incredibly important 43 00:03:26.480 --> 00:03:32.160 So if we're talking about how do we make the highest leverage entrepreneur we want somebody who has lots and lots of skills and 44 00:03:33.000 --> 00:03:38.680 Really it's about beliefs that don't limit them if someone had no limits in terms of what they believe they could achieve 45 00:03:38.720 --> 00:03:42.800 Then the only thing that would limit them was their skills, but most of the times 46 00:03:43.240 --> 00:03:50.480 The beliefs that we have are things that just decrease our potential and it's not really our fault because most of the people that were around us 47 00:03:50.480 --> 00:03:58.360 We grew up just by statistics were poorer than you might want to be and so they told you how they see the world if there's ever something 48 00:03:58.360 --> 00:04:00.600 It's gonna be on my tombstone. It's this quote which is 49 00:04:01.360 --> 00:04:07.720 We question all of our beliefs except for those that we truly believe and those we never think to question and so like the things that you 50 00:04:07.720 --> 00:04:13.400 Actually believe they're so invisible to you because that's just you're lends the roots you see the world whereas when you're like 51 00:04:13.400 --> 00:04:14.560 I wanted to bake this point 52 00:04:14.560 --> 00:04:19.520 It's like you don't really believe that you just have an opinion on it or you have some assumptions that you're willing to back 53 00:04:19.760 --> 00:04:22.080 Right, but the true beliefs of like well 54 00:04:22.080 --> 00:04:25.960 No one would be willing to pay for something like that or like that doesn't exist 55 00:04:25.960 --> 00:04:27.480 I didn't know that was possible 56 00:04:27.480 --> 00:04:30.920 You don't even question those things because they weren't even in your mind to begin with 57 00:04:30.920 --> 00:04:36.360 It's the unknown unknowns that are the things that limit us the question is how do we up-level someone's beliefs? 58 00:04:36.480 --> 00:04:38.520 So let me give you a quick example here 59 00:04:38.520 --> 00:04:42.240 So there was an entrepreneur that I know who had a fitness app 60 00:04:42.240 --> 00:04:50.320 He was a super high-level CrossFit Games competitor and he started this app and he didn't want to tell anybody about it because he never placed top three 61 00:04:50.320 --> 00:04:53.240 He placed fourth place in multiple competitions, which is insane 62 00:04:54.400 --> 00:05:00.960 But he had a belief that if he wasn't the winner he didn't deserve to have an app like think about how crazy it is 63 00:05:01.000 --> 00:05:05.120 But he didn't question that that was just what he believed reality to be like well of course 64 00:05:05.560 --> 00:05:10.160 Of course I wouldn't want it and so he built this app for himself and just the members of his gym 65 00:05:10.160 --> 00:05:13.040 But the app was so good that people started sharing it and 66 00:05:13.960 --> 00:05:18.160 Finally a client of his was a marketer and said you need to start marketing this 67 00:05:18.160 --> 00:05:23.480 You need to start posting about it and he wouldn't post and finally she convinced him to just make one post and he like 68 00:05:23.600 --> 00:05:28.800 Doubled his revenue he'd gone from like 20,000 a month to a hundred thousand dollars a month with his app simply because 69 00:05:28.960 --> 00:05:32.800 He changed his beliefs and so like fundamentally he had all the skills 70 00:05:32.800 --> 00:05:34.960 If he was already a really good CrossFit Games competitor 71 00:05:34.960 --> 00:05:40.080 He already had the product that was really good and he already had the skills to be able to market it 72 00:05:40.080 --> 00:05:41.760 He was just choosing not to 73 00:05:41.760 --> 00:05:43.760 Unchaining an entrepreneur is 74 00:05:44.000 --> 00:05:49.280 Figging out the reasons they give for why they can't do something those are known 75 00:05:49.800 --> 00:05:52.800 Limits right well. I can't do it because of X 76 00:05:52.800 --> 00:05:56.640 That's the things that you know because you can even explain it. I can't do it because I'm not number one 77 00:05:56.640 --> 00:05:58.400 I can't do it because I'm not in good enough shape 78 00:05:58.400 --> 00:06:01.000 I can't do it because the app doesn't load well enough 79 00:06:01.000 --> 00:06:07.320 I can't do it because it's only on one platform. I can't do it because insert whatever right now the dangerous ones are the unknown unknowns 80 00:06:07.800 --> 00:06:08.520 All right 81 00:06:08.520 --> 00:06:14.520 My whole goal when I started my chain of gyms was that I wanted to be America's next gym 82 00:06:14.520 --> 00:06:18.000 So I bought the trademark United Fitness. I was really proud of it. I had six locations 83 00:06:18.000 --> 00:06:21.880 I joined this group of internet entrepreneurs now mind you this reason 84 00:06:21.880 --> 00:06:28.040 I think this is funny is because I was sold by the sales guy that there was other gym owners in the room and they were all like doing well and 85 00:06:28.040 --> 00:06:32.560 Doing stuff on the internet too got in the room not only were there no gym owners 86 00:06:32.560 --> 00:06:37.280 There weren't even any brick and mortar business in the room and so I was like wow 87 00:06:37.280 --> 00:06:41.600 This is a shock and so everybody's going up there explaining their like ads and their funnels and their upsell 88 00:06:41.600 --> 00:06:44.600 Process and all this stuff and I get up there and I'm like I own six gyms 89 00:06:45.320 --> 00:06:50.000 And I was like, but these are the ads I run to get members into my gyms the thing is I gave this whole breakdown of everything 90 00:06:50.000 --> 00:06:54.640 I did and how I opened every location at full capacity on the first day without taking cash out of the pocket all the stuff and 91 00:06:55.140 --> 00:06:59.080 I remember the the guy who was running the whole the whole group and 92 00:06:59.720 --> 00:07:07.520 I really looked up to this guy at that time because he was the first person who was like way more successful than me that I actually had access to and so I think at that point 93 00:07:07.520 --> 00:07:13.440 He was doing a million dollars a month and I remember thinking like whoa like and so I go through this whole presentation 94 00:07:13.440 --> 00:07:16.320 I'm talking as fast as I can explaining all the stuff that I do and 95 00:07:17.680 --> 00:07:19.680 He stops and he's like Alex 96 00:07:19.680 --> 00:07:20.880 I 97 00:07:20.880 --> 00:07:22.880 Don't think you should be in the gym business 98 00:07:23.240 --> 00:07:29.080 And I remember hearing that it was like time slow down because I felt like you like punch me in the gut because this was like my whole plan my whole dream 99 00:07:29.080 --> 00:07:31.080 This is what I was going towards 100 00:07:31.080 --> 00:07:33.760 But I like pause and just like hurt him out and he said 101 00:07:34.360 --> 00:07:39.120 You have a level 10 skill set and a level two opportunity. I don't think you should be running gyms 102 00:07:39.120 --> 00:07:41.760 I think you should be teaching people how to do what you just walk through and 103 00:07:42.920 --> 00:07:44.920 I had to believe and I still do that 104 00:07:45.240 --> 00:07:47.240 If someone's further along in the game of business 105 00:07:47.520 --> 00:07:52.440 You always have things that you can learn from them and if I paid to be in this room if I don't take the advice 106 00:07:52.440 --> 00:07:55.720 It's the closest thing to me burning all the money that I paid to be here and so 107 00:07:56.440 --> 00:07:59.520 When he told me that to me that was an unknown unknown 108 00:07:59.520 --> 00:08:05.840 I didn't know that there was another opportunity vehicle outside of me just owning gyms like I didn't know it was possible 109 00:08:05.840 --> 00:08:08.760 So I hadn't thought like I didn't know how franchises worked 110 00:08:08.760 --> 00:08:14.600 I didn't know how licensing worked. I didn't know how how any of I didn't know how to be to be national any of that stuff worked 111 00:08:14.600 --> 00:08:17.400 Now there were sub skills that I would have to learn in order to enable it 112 00:08:17.400 --> 00:08:22.720 But I couldn't even start on that skill path or see the deficiency of skills that I had because I didn't even think I could pursue it 113 00:08:22.720 --> 00:08:28.160 And so these are the ones that in my opinion are the most powerful to overcome 114 00:08:28.160 --> 00:08:32.240 It's the things that you didn't know were possible. I'll give you a different example in chain of fairies 115 00:08:32.240 --> 00:08:38.800 Which is one of our portfolio companies amazing business super successful single location and the founder had an agency when he approached me 116 00:08:38.800 --> 00:08:42.000 He's saying like hey, I want to do what you did with gym launch, but with photography studios 117 00:08:42.000 --> 00:08:45.080 And so we talked and we talked and we talked and his model was so good 118 00:08:45.080 --> 00:08:46.800 I was like, I don't know man 119 00:08:46.800 --> 00:08:50.840 I think like one of the things that I didn't have with gym launches is that like I couldn't control delivery 120 00:08:51.120 --> 00:08:55.600 With photography who can control delivery and so that means that we could actually centralize law stuff 121 00:08:55.600 --> 00:08:59.400 I was like, what if we just owned all of them with like a hybrid model 122 00:08:59.400 --> 00:09:04.200 We actually took the agency from what it was doing which for most people watching this would be a very good business for you 123 00:09:04.560 --> 00:09:06.040 to zero 124 00:09:06.040 --> 00:09:07.520 To start this next thing 125 00:09:07.520 --> 00:09:11.600 We had such good rapport that he's like if you really think so and we walk through the math 126 00:09:11.600 --> 00:09:15.680 And he's like I mean this makes sense, but like I'm going to kill something that makes a lot of money 127 00:09:15.680 --> 00:09:20.520 It's like yeah, but I think it's going to be for something that's going to make way more and then for the next six months 128 00:09:21.040 --> 00:09:25.720 We worked and tweaked the original model to get this new model off the ground 129 00:09:26.240 --> 00:09:32.920 And 30 months later that business was two and a half million a month with 30 plus locations because I said let's just own it all 130 00:09:33.280 --> 00:09:37.760 He didn't think that that was a model that was really available and then as soon as we made that switch 131 00:09:38.920 --> 00:09:46.400 Everything took off even in my own personal story when I switch from having my gyms to doing a done for you fly around the country model 132 00:09:46.400 --> 00:09:54.240 That took the same skills that I had as an entrepreneur and put them in a better vehicle and then even from doing the gym turnaround business for two years 133 00:09:54.240 --> 00:09:59.440 I accidentally fell into the licensing model because I didn't want to fly out somebody asked me if I could 134 00:09:59.440 --> 00:10:04.200 Show them all the stuff that I did so they could do it for themselves and then at that point he bought it 135 00:10:04.200 --> 00:10:07.800 And it was all margin and I was like holy cow. This is insane 136 00:10:07.800 --> 00:10:09.600 That's when everything took off like a rocket 137 00:10:09.600 --> 00:10:14.220 And so I had my brick and mortar gyms and then I scaled to a done for you turnaround business and then I scaled to 138 00:10:14.520 --> 00:10:19.560 Licensing and each of those were higher leverage opportunities and it was because I didn't know as possible 139 00:10:19.560 --> 00:10:28.080 And so once I learned that it was possible that unlocked all of the potential value that my skills could have because fundamentally and every one of those examples 140 00:10:28.080 --> 00:10:31.440 I knew how to do the same stuff. I knew you had a market and sell for a local gym 141 00:10:31.440 --> 00:10:36.040 I knew how to build them more profitably create the workouts the meal plans all that kind of stuff that got people results 142 00:10:36.040 --> 00:10:41.160 That's what I knew how to do but at each level when I went from gyms 143 00:10:42.000 --> 00:10:50.160 To turn arounds the leverage increased from each of these things and so the same skills that put into a new bucket or a new vehicle 144 00:10:50.160 --> 00:10:56.720 Unlocked huge value and that's why a lot of entrepreneurs don't get past a million or even get two ten million 145 00:10:56.720 --> 00:11:01.840 That they're in the wrong vehicle. So I talk about leverage a lot and it's actually one of the core concepts in our logo 146 00:11:01.840 --> 00:11:04.400 So we have a supply demand curve and then we have the full chrome 147 00:11:04.400 --> 00:11:08.800 Which is the acquisition.com logo and it's because it's core to everything we do if you think about leverage 148 00:11:09.360 --> 00:11:13.160 You've ever heard Archimedes. He said give me a long enough lever and I can move the world 149 00:11:13.320 --> 00:11:17.840 This is our lever and we'll put our little our little hand here. That's my arm 150 00:11:18.560 --> 00:11:24.560 If we grab the lever here, we have the most leverage on something that is here 151 00:11:25.280 --> 00:11:29.040 If we grab the lever here, we still have the most leverage on something here 152 00:11:29.040 --> 00:11:35.040 But we have less leverage over all compared to how much we have on this side and the main difference here is 153 00:11:35.880 --> 00:11:38.120 How much force goes up the other side? 154 00:11:38.120 --> 00:11:43.360 All right, and so leverage is the difference between what you put in and what you get out 155 00:11:44.520 --> 00:11:49.120 That's it. So let me give you an example in the real world if you are really skilled at cold calling 156 00:11:49.520 --> 00:11:55.200 Skill itself is leverage because if somebody who doesn't have the skill makes a hundred phone calls that's their input 157 00:11:56.080 --> 00:11:59.280 And somebody who does have the skill puts a hundred calls down and 158 00:11:59.840 --> 00:12:06.640 The guy who has doesn't have the skill gets zero appointments set and the guy who's amazing at it gets ten appointments set 159 00:12:07.040 --> 00:12:09.600 He has well, let's just say the first guy had one for sake of math 160 00:12:09.920 --> 00:12:16.080 He has ten times the leverage on that skill compared to the newbie getting and acquiring skills 161 00:12:16.560 --> 00:12:21.120 Gives you more leverage because it gets you more for what you put in and so if you're more skilled entrepreneur 162 00:12:21.440 --> 00:12:26.320 Being a skilled entrepreneur is a is a big bucket for hundreds of smaller skills underneath of it 163 00:12:26.960 --> 00:12:29.120 Because it means that you know how to prioritize what to do next 164 00:12:29.120 --> 00:12:32.640 And so one of my favorite quotes about leverage comes from Warren Buffett Uncle Warren 165 00:12:32.640 --> 00:12:36.080 He and one of his closest friends graduated Columbia Business School at the same time same year 166 00:12:36.080 --> 00:12:38.560 And he said that guy was smarter and harder working than him now 167 00:12:38.720 --> 00:12:44.400 They then went their separate ways Warren ended up getting into investing with Ben Graham and his friend goes into the steel business 168 00:12:44.400 --> 00:12:50.480 Because that was back in the day when like American steel was like a thing which it really no longer is what he learned from that experience is that you fast forward 169 00:12:51.040 --> 00:12:55.120 30 40 50 years and he said his friend you know did okay 170 00:12:55.600 --> 00:12:58.400 And he said mind you this is a guy who was smarter and harder working than him 171 00:12:58.640 --> 00:13:00.800 He said he did okay. He did pretty well 172 00:13:00.880 --> 00:13:06.240 But not close to what Warren did and he said his biggest lesson from that was it's not about how hard you row 173 00:13:06.560 --> 00:13:12.480 It's about what bow you're in and I love that because it really encompasses the concept of leverage 174 00:13:12.800 --> 00:13:14.800 Which is Warren got more out 175 00:13:15.600 --> 00:13:20.640 For what he put in then his buddy in the steel business because the steel business had a lot of headwinds 176 00:13:20.960 --> 00:13:24.720 A lot of things going against them. They had globalization to start it started happening you know 177 00:13:24.880 --> 00:13:27.280 Other imported steel that was cheaper from China ball of law 178 00:13:27.360 --> 00:13:31.440 And so those forces he had to row harder against the wind then 179 00:13:31.840 --> 00:13:34.800 Warren did while riding one of the best 180 00:13:35.440 --> 00:13:39.360 Growth curves of the US economy overall and so he got higher returns 181 00:13:39.680 --> 00:13:47.280 And so over my career I make more now than I did before because I've moved further back along this lever 182 00:13:47.600 --> 00:13:53.520 So I have more leverage now on what I put in than what I did before when I was selling one-on-one in person 183 00:13:53.520 --> 00:13:57.760 And I was doing 20 consult today. I was working more hours probably than I do now 184 00:13:58.160 --> 00:14:04.560 But I get so much more for what I put in so I'm going to show you two triangles that show increasing amounts of leverage 185 00:14:04.720 --> 00:14:05.360 All right 186 00:14:05.440 --> 00:14:11.200 Now one of these I have stolen ruthlessly from the Volrovicon all right, and so he talks about the four types of leverage 187 00:14:11.200 --> 00:14:14.880 I've renamed them so they're seized and it's mostly just so I remember them more easily 188 00:14:15.440 --> 00:14:19.840 But you've got collaboration which just means other people working for you all right then you've got 189 00:14:20.400 --> 00:14:25.280 Capital which means other people worked for you and gave you the fruit of their work so that you can invest it on their behalf 190 00:14:25.280 --> 00:14:29.280 So for example if I get people to give me a billion dollars which I could do just raise the money 191 00:14:29.600 --> 00:14:33.040 And then I invest that money and I say I get 20% of the gain 192 00:14:33.360 --> 00:14:37.280 I didn't have to work all the time to make a billion dollars, but I still get 20% of it 193 00:14:37.840 --> 00:14:38.480 Right 194 00:14:38.480 --> 00:14:42.160 That's the idea of using leverage of other people's money. So capital. So you've got collaboration 195 00:14:43.040 --> 00:14:48.160 Capital you've got code and content if I'm a genius coder and I could build one piece of software 196 00:14:48.320 --> 00:14:52.000 I can build it once and people a million people can use that same piece of software 197 00:14:52.640 --> 00:14:57.920 With content Joe Rogan can make one podcast episode and millions of people can listen to it 198 00:14:58.240 --> 00:15:01.600 And so he gets more for what he puts in right 199 00:15:01.680 --> 00:15:05.120 So if you think about each of these things it's like you have the influence on someone else 200 00:15:05.280 --> 00:15:12.800 I trade me selling for 40 hours a week to me managing a salesman for two hours who then sells for for 40 hours a week or higher leverage 201 00:15:13.280 --> 00:15:14.080 I 202 00:15:14.080 --> 00:15:17.760 Spend a week or two weeks recruiting the best sales recruiter 203 00:15:18.320 --> 00:15:20.960 And then I'd do that one time in my life for two weeks 204 00:15:21.280 --> 00:15:26.320 And then that sales recruiter works 40 hours a week to get new salespeople in every single week on my behalf 205 00:15:26.560 --> 00:15:30.240 And then those salespeople on my behalf then sell every single day 206 00:15:30.400 --> 00:15:36.160 And so I did two weeks of work for a hundred salespeople over the the lifetime of that one higher more leverage 207 00:15:36.160 --> 00:15:39.440 I get more for what I put in compare that to me taking 20 consults today 208 00:15:39.600 --> 00:15:43.200 higher leverage skill but same concept done at scale capital 209 00:15:43.200 --> 00:15:46.240 We went over code content those are the four types of leverage now 210 00:15:46.800 --> 00:15:49.600 This is where this gets interesting because like once I learned this 211 00:15:49.600 --> 00:15:54.480 I was able to put words to what I kind of knew intrinsically and I can now explain it 212 00:15:54.880 --> 00:15:59.680 So if you look at my career trajectory and one of the key points here is that 213 00:16:00.240 --> 00:16:02.320 You can actually just max out one of these things 214 00:16:02.320 --> 00:16:04.960 So you don't need to have all four now if you have all four cool 215 00:16:05.360 --> 00:16:07.280 But if you think about what leverage is in general 216 00:16:07.280 --> 00:16:11.680 It's just you get more for what you put in and so if you get a thousand x on any of these still a thousand x 217 00:16:11.680 --> 00:16:16.320 So somebody can just be an amazing private equity guy or amazing at raising money and become a billionaire 218 00:16:16.320 --> 00:16:18.320 They don't need to do any of these other things right 219 00:16:18.320 --> 00:16:22.080 So we could be amazing at galvanizing people and creating movements 220 00:16:22.240 --> 00:16:24.080 And they wouldn't need any of these other things 221 00:16:24.080 --> 00:16:26.000 If someone's amazing at writing software 222 00:16:26.000 --> 00:16:29.760 They don't need anyone else's capital and the software does the collaboration on their rehab 223 00:16:29.760 --> 00:16:30.240 right 224 00:16:30.240 --> 00:16:32.880 And so all of these things like even though they're structured like this 225 00:16:32.880 --> 00:16:34.160 You don't have to have all of them 226 00:16:34.160 --> 00:16:35.520 If you do have all of them 227 00:16:35.520 --> 00:16:38.800 Well you look at Facebook that is code about content 228 00:16:38.800 --> 00:16:40.640 You raised other people's money and you asked people working for 229 00:16:40.640 --> 00:16:42.080 But let me show you how this changed for me 230 00:16:42.800 --> 00:16:44.800 So in the beginning 231 00:16:45.440 --> 00:16:47.040 I was an employee right 232 00:16:48.160 --> 00:16:50.800 And I made four figures a month 233 00:16:51.760 --> 00:16:53.600 Then I became self-employed 234 00:16:53.600 --> 00:16:55.920 I gained a little bit of leverage just over my own time 235 00:16:55.920 --> 00:16:59.360 So I went from having someone else control my time to me controlling my time 236 00:16:59.360 --> 00:17:00.240 Which was leverage 237 00:17:00.240 --> 00:17:01.600 All right I got more for what I put it 238 00:17:01.600 --> 00:17:03.120 And I went to five figures a month 239 00:17:03.120 --> 00:17:03.920 All right 240 00:17:03.920 --> 00:17:06.080 Then I went to employing other people 241 00:17:06.800 --> 00:17:11.440 Right which is then I would say the first level is me now having the first level of leverage 242 00:17:11.440 --> 00:17:12.960 So I went to six figures a month 243 00:17:12.960 --> 00:17:14.320 All right and this is right as I 244 00:17:14.320 --> 00:17:17.200 I would say first when I started my gyms and I had multiple gyms 245 00:17:17.200 --> 00:17:18.560 And then when I transitioned that to turn around 246 00:17:18.560 --> 00:17:20.320 I still stayed at six figures a month 247 00:17:20.320 --> 00:17:22.160 But fundamentally it's because I actually didn't change leverage 248 00:17:22.240 --> 00:17:24.960 I changed how I was structuring it but fundamentally like 249 00:17:24.960 --> 00:17:26.640 It was people doing the same work 250 00:17:26.640 --> 00:17:29.760 So this was both me being a gym owner with six locations 251 00:17:30.320 --> 00:17:33.440 And me doing the turnaround business with other people 252 00:17:34.640 --> 00:17:36.960 You're like how do you go from six figures a month to seven figures a month 253 00:17:37.840 --> 00:17:40.320 Then you start licensing 254 00:17:41.440 --> 00:17:42.240 Now what is that? 255 00:17:43.200 --> 00:17:45.360 I made content fundamentally 256 00:17:45.360 --> 00:17:46.800 And then I made it once 257 00:17:46.800 --> 00:17:48.800 And then many people could have access to it 258 00:17:49.520 --> 00:17:50.720 And so when I did that 259 00:17:50.880 --> 00:17:51.920 I went to seven figures a month 260 00:17:52.720 --> 00:17:56.720 Now the question is how do I get from seven figures a month to eight figures a month 261 00:17:56.720 --> 00:17:58.480 Because that's what we have at acquisition.com 262 00:17:58.480 --> 00:18:00.000 What did I add into it? 263 00:18:00.000 --> 00:18:00.960 Capital 264 00:18:00.960 --> 00:18:04.160 So now we buy into companies that have other people working for them 265 00:18:04.160 --> 00:18:06.480 I use content to attract those businesses 266 00:18:06.480 --> 00:18:07.920 Now I don't have any code 267 00:18:07.920 --> 00:18:09.520 Right now I have one software investment 268 00:18:09.520 --> 00:18:10.480 Maybe two I think 269 00:18:10.480 --> 00:18:12.000 That are major investments 270 00:18:12.000 --> 00:18:14.160 But the rest of my stuff really if we're talking about it 271 00:18:14.160 --> 00:18:15.520 Is that I made content 272 00:18:15.520 --> 00:18:17.760 I had capital from the things that I had done before 273 00:18:17.760 --> 00:18:19.920 And we have the ability to get other people to help us 274 00:18:19.920 --> 00:18:21.040 Get our get to our goals 275 00:18:22.160 --> 00:18:22.880 And so this is 276 00:18:23.920 --> 00:18:24.960 Acquisition.com 277 00:18:24.960 --> 00:18:25.920 And that's eight figures a month 278 00:18:26.640 --> 00:18:26.800 Now 279 00:18:27.600 --> 00:18:29.360 Will I need to do to get to nine figures a month 280 00:18:29.360 --> 00:18:31.360 I may just need to add time 281 00:18:31.360 --> 00:18:32.960 To the existing thing that I'm doing 282 00:18:32.960 --> 00:18:33.920 Key point 283 00:18:33.920 --> 00:18:36.560 Is that leverage is about getting more for what you put in 284 00:18:36.560 --> 00:18:39.520 People who move faster in life don't actually move faster 285 00:18:39.520 --> 00:18:40.720 They get more for their inputs 286 00:18:40.720 --> 00:18:42.080 They get more for every step 287 00:18:42.080 --> 00:18:44.800 Right I'm not like frenetically moving to move faster 288 00:18:44.800 --> 00:18:47.040 You just get more out of every move 289 00:18:47.520 --> 00:18:50.000 And so that means that if you're getting more out of every move 290 00:18:50.000 --> 00:18:51.120 It's a function of time 291 00:18:51.920 --> 00:18:54.480 And so if I had for example 292 00:18:54.480 --> 00:18:56.320 Maybe some code that was implemented 293 00:18:56.320 --> 00:18:58.720 Within everything that I do at Acquisition.com 294 00:18:58.720 --> 00:19:00.480 I might be able to get to nine figures a month 295 00:19:00.480 --> 00:19:01.680 Faster than I currently am 296 00:19:02.720 --> 00:19:04.960 But I feel confident with these three 297 00:19:05.600 --> 00:19:07.120 That we will get to nine figures a month 298 00:19:08.000 --> 00:19:09.440 Eventually 299 00:19:09.440 --> 00:19:11.840 And so you might say Alex that might be a limiting belief 300 00:19:11.840 --> 00:19:12.480 It might be 301 00:19:12.480 --> 00:19:15.120 But that's that's kind of how I'm choosing to play it 302 00:19:16.080 --> 00:19:18.000 And let me let me like reverse the clock here 303 00:19:18.000 --> 00:19:19.920 If I had just kept my gyms 304 00:19:19.920 --> 00:19:22.000 From the time I started my gyms until now 305 00:19:22.880 --> 00:19:24.640 I might have a hundred locations 306 00:19:25.360 --> 00:19:27.280 And I might also already be doing 307 00:19:28.080 --> 00:19:28.800 Nine figure 308 00:19:28.800 --> 00:19:30.880 Not nine figure I probably be doing eight figures a month 309 00:19:30.880 --> 00:19:32.080 From the gyms 310 00:19:32.080 --> 00:19:33.600 And so you're like well wait a second 311 00:19:33.600 --> 00:19:34.800 So was it the best move 312 00:19:35.520 --> 00:19:37.120 I can't go back and replay time 313 00:19:37.120 --> 00:19:38.000 I don't know 314 00:19:38.000 --> 00:19:39.360 But that's where to me 315 00:19:39.360 --> 00:19:40.720 This is why the game gets interesting 316 00:19:40.720 --> 00:19:42.720 Is that every time you switch vehicles 317 00:19:42.720 --> 00:19:44.240 You started zero again 318 00:19:44.320 --> 00:19:45.120 So the pace 319 00:19:45.760 --> 00:19:48.080 That the leverage affords you for each step you take 320 00:19:48.080 --> 00:19:49.520 Has to be disproportionate 321 00:19:49.520 --> 00:19:51.520 Because you're four of a business 322 00:19:51.520 --> 00:19:52.960 You'll typically grow more 323 00:19:52.960 --> 00:19:55.120 Than year one of a new business 324 00:19:55.120 --> 00:19:56.880 And so that's where doing the same thing 325 00:19:56.880 --> 00:19:58.640 For a longer and longer period of time 326 00:19:58.640 --> 00:19:59.840 You still get more leverage 327 00:19:59.840 --> 00:20:02.240 The guy who owns Panda Express 328 00:20:02.240 --> 00:20:04.480 Open 600 new locations this year 329 00:20:04.960 --> 00:20:06.880 Because he has done this 330 00:20:06.880 --> 00:20:08.320 Because now he has enough capital 331 00:20:08.320 --> 00:20:09.680 He has enough collaboration 332 00:20:09.680 --> 00:20:10.480 That he's maxed 333 00:20:10.480 --> 00:20:12.080 You know he doesn't do any content 334 00:20:12.080 --> 00:20:13.440 And he doesn't have any code 335 00:20:13.440 --> 00:20:13.920 Right? 336 00:20:13.920 --> 00:20:14.880 But he has these two 337 00:20:14.880 --> 00:20:16.560 It's such a high degree 338 00:20:16.560 --> 00:20:17.920 That when he adds 339 00:20:18.800 --> 00:20:19.840 600 locations 340 00:20:19.840 --> 00:20:22.320 And each location does $3 million a year 341 00:20:22.320 --> 00:20:23.120 Right 342 00:20:23.120 --> 00:20:23.920 I might even be a 343 00:20:23.920 --> 00:20:24.240 I don't know 344 00:20:24.240 --> 00:20:24.800 It's a lot 345 00:20:24.800 --> 00:20:26.080 And just to give you context 346 00:20:26.080 --> 00:20:27.760 Panda Express in 2021 347 00:20:27.760 --> 00:20:29.440 To 3.7 billion 348 00:20:29.440 --> 00:20:30.640 And top line sales 349 00:20:31.440 --> 00:20:33.520 And he owns 100% of it 350 00:20:33.520 --> 00:20:34.720 No outside investors 351 00:20:34.720 --> 00:20:35.680 With his wife, Peggy 352 00:20:36.400 --> 00:20:36.720 And 353 00:20:37.600 --> 00:20:40.320 They took on 27% net margins 354 00:20:40.320 --> 00:20:42.160 On brick and mortar food 355 00:20:42.160 --> 00:20:43.280 All right so let's do the math 356 00:20:43.280 --> 00:20:46.480 That's 935 million in income 357 00:20:46.480 --> 00:20:48.400 Like that was his distributions 358 00:20:48.400 --> 00:20:49.520 From owning this thing 359 00:20:49.520 --> 00:20:50.400 Now if you're like wait 360 00:20:50.400 --> 00:20:51.600 But did he pay taxes on it 361 00:20:51.600 --> 00:20:52.400 Sure didn't 362 00:20:52.400 --> 00:20:52.880 Why 363 00:20:52.880 --> 00:20:54.000 Because he owns all the land 364 00:20:54.000 --> 00:20:55.200 And the dirt for most of the locations 365 00:20:55.200 --> 00:20:56.160 That he had that are free standing 366 00:20:56.160 --> 00:20:58.240 So he depreciated all of that against his income 367 00:20:58.240 --> 00:21:00.240 So he took all of that tax free 368 00:21:00.800 --> 00:21:01.600 So 369 00:21:01.600 --> 00:21:02.720 Point being 370 00:21:02.720 --> 00:21:03.440 He did this 371 00:21:03.440 --> 00:21:04.560 And you're like well how did you do it 372 00:21:04.560 --> 00:21:05.840 He's been making chicken 373 00:21:05.840 --> 00:21:07.040 And orange chicken 374 00:21:07.040 --> 00:21:09.440 And kung-pow chicken for 45 years 375 00:21:10.320 --> 00:21:12.160 So even though he might not have been 376 00:21:12.160 --> 00:21:14.160 In the highest leverage vehicle 377 00:21:15.040 --> 00:21:16.800 He was able to stick with that vehicle 378 00:21:16.800 --> 00:21:18.080 For 45 years 379 00:21:18.080 --> 00:21:19.840 And being able to stick with something 380 00:21:19.840 --> 00:21:22.480 For 45 years makes it really hard to suck 381 00:21:24.000 --> 00:21:24.960 And when you do that 382 00:21:24.960 --> 00:21:26.880 You start unlocking multipliers 383 00:21:26.880 --> 00:21:28.640 On the leverage you have 384 00:21:28.640 --> 00:21:29.440 Rather than thinking 385 00:21:29.440 --> 00:21:30.400 I need more leverage 386 00:21:30.400 --> 00:21:32.000 In terms of more types of leverage 387 00:21:32.000 --> 00:21:33.360 Maybe you just need more of the one 388 00:21:33.360 --> 00:21:35.280 That you've been using since you started with 389 00:21:35.280 --> 00:21:36.960 Remember I gave the little phone call example 390 00:21:36.960 --> 00:21:38.400 Of like two people doing the same thing 391 00:21:38.400 --> 00:21:39.920 One person has more leverage 392 00:21:39.920 --> 00:21:41.360 Well each of these things 393 00:21:41.360 --> 00:21:43.760 Are big buckets with many smaller skills 394 00:21:43.760 --> 00:21:44.560 Underneath of it 395 00:21:44.560 --> 00:21:46.400 So collaboration is 396 00:21:46.400 --> 00:21:48.400 I have to know how to recruit talent 397 00:21:48.400 --> 00:21:50.080 I have to know how to recognize talent 398 00:21:50.080 --> 00:21:51.120 I have to know how to onboard 399 00:21:51.120 --> 00:21:52.320 I have to know how to train 400 00:21:52.320 --> 00:21:53.520 I have to know how to manage 401 00:21:53.520 --> 00:21:56.320 I have to know how to grow talent 402 00:21:56.320 --> 00:21:58.320 And I have to know how to run meetings 403 00:21:58.320 --> 00:21:59.920 And I have to know how to have one on once 404 00:21:59.920 --> 00:22:00.560 And I have to know 405 00:22:00.560 --> 00:22:01.680 Like you're saying here like 406 00:22:01.680 --> 00:22:02.640 All of those 407 00:22:02.640 --> 00:22:04.720 Micro skills chunk up to 408 00:22:04.720 --> 00:22:05.760 Collaboration 409 00:22:05.760 --> 00:22:08.080 For capital it's like you have to be good at math 410 00:22:08.080 --> 00:22:09.760 Being bad at math is probably not 411 00:22:10.160 --> 00:22:12.480 To be tough to raise capital if you really can't do math 412 00:22:12.480 --> 00:22:14.640 It's like okay well that's a skill you need to know 413 00:22:14.640 --> 00:22:16.000 Well what else do you need to know 414 00:22:16.000 --> 00:22:16.800 It's like well 415 00:22:16.800 --> 00:22:18.960 You need to be able to reach out to people and get rejected 416 00:22:18.960 --> 00:22:20.960 Why? Because when you try and raise capital 417 00:22:20.960 --> 00:22:23.360 You get rejected a lot more times than you get checks 418 00:22:23.360 --> 00:22:24.160 Right 419 00:22:24.160 --> 00:22:26.720 From there it's like you also probably have to have an understanding of legal 420 00:22:26.720 --> 00:22:28.720 Because you have to learn how to set up a fun structure 421 00:22:28.720 --> 00:22:30.160 You also have to know how to negotiate 422 00:22:30.160 --> 00:22:32.000 Because every single person writes your check 423 00:22:32.000 --> 00:22:33.040 Is going to want different terms 424 00:22:33.040 --> 00:22:34.720 You then have to structure it in a way 425 00:22:34.720 --> 00:22:36.320 And negotiate so that you can get 426 00:22:36.320 --> 00:22:38.240 Mutually beneficial terms for both parties 427 00:22:38.240 --> 00:22:41.360 So these are all other skills that go into raising capital 428 00:22:41.360 --> 00:22:42.320 Right making content 429 00:22:42.320 --> 00:22:43.920 It's like you have to understand the different platforms 430 00:22:43.920 --> 00:22:45.280 You have to understand how to sell stories 431 00:22:45.280 --> 00:22:47.360 You have to understand how to have 432 00:22:47.360 --> 00:22:49.040 I mean even understanding here is just like 433 00:22:49.040 --> 00:22:51.280 You might even have to just do the work to have credibility 434 00:22:51.280 --> 00:22:53.280 To make the content about whatever you're making it on 435 00:22:53.280 --> 00:22:55.200 And you know what I'm the sidequistist real quick 436 00:22:55.200 --> 00:22:56.800 A lot of people make content right now 437 00:22:56.800 --> 00:22:58.320 And they're trying to hit it big 438 00:22:58.320 --> 00:23:00.400 But what they do is like in my opinion 439 00:23:00.400 --> 00:23:02.240 You've got entertainers 440 00:23:02.240 --> 00:23:04.240 And you've got educators 441 00:23:04.240 --> 00:23:06.240 The thing is is that a lot of people who haven't done shit 442 00:23:06.240 --> 00:23:08.320 Or trying to educate on things they haven't done 443 00:23:09.040 --> 00:23:10.800 And so they have no credibility 444 00:23:10.800 --> 00:23:13.200 And so the thing is is that like the reason Mr. Beast 445 00:23:13.200 --> 00:23:15.200 Was able to get so big is that when he was 15 years old 446 00:23:15.200 --> 00:23:17.040 He wasn't teaching people about business 447 00:23:17.040 --> 00:23:18.240 He was being funny 448 00:23:18.240 --> 00:23:19.360 And being cool 449 00:23:19.360 --> 00:23:21.360 People are like oh I want to be like him 450 00:23:21.360 --> 00:23:23.920 And so then they say oh I'm going to educate people on house flipping 451 00:23:24.720 --> 00:23:26.400 But they're 22 years old 452 00:23:26.400 --> 00:23:28.400 And they haven't flipped them any houses 453 00:23:28.400 --> 00:23:30.640 And so they have no credibility in their content 454 00:23:30.640 --> 00:23:32.080 And so in my opinion 455 00:23:32.080 --> 00:23:33.600 When you're doing this content thing 456 00:23:33.600 --> 00:23:35.280 If you're going to do it 457 00:23:35.280 --> 00:23:38.240 Then make sure that you have the backing of experience and proof 458 00:23:38.240 --> 00:23:40.320 Because then I promise you like when you get shit on 459 00:23:40.320 --> 00:23:42.240 From the public because you will 460 00:23:42.240 --> 00:23:43.520 Because they don't know who you are 461 00:23:43.520 --> 00:23:44.800 And most people are lying 462 00:23:44.800 --> 00:23:45.920 You'll be able to know 463 00:23:45.920 --> 00:23:48.240 That what you're saying is true because you lived it 464 00:23:48.240 --> 00:23:49.920 And so then you won't second guess yourself 465 00:23:49.920 --> 00:23:51.840 The people who like tank and self-employed 466 00:23:51.840 --> 00:23:53.520 Because they're like they can't handle the heat 467 00:23:53.520 --> 00:23:55.520 Is because on some level they believe it 468 00:23:55.840 --> 00:23:58.160 So if you want to be an educator 469 00:23:58.160 --> 00:23:59.680 Then I think that the middle ground 470 00:23:59.680 --> 00:24:02.400 The pre-education stage is the documentation stage 471 00:24:02.400 --> 00:24:04.720 Where you just say this is what I'm doing now check it out 472 00:24:04.800 --> 00:24:08.160 Like right now I can't educate really or not really 473 00:24:08.160 --> 00:24:09.920 Excuse me, I can't educate on nine figures a month 474 00:24:09.920 --> 00:24:10.720 Haven't been there 475 00:24:10.720 --> 00:24:12.240 I know what eight figures a month is 476 00:24:12.240 --> 00:24:13.520 Don't know how to get to nine figures a month 477 00:24:13.520 --> 00:24:16.400 I have my theory which is that I just have to add time to this equation 478 00:24:17.200 --> 00:24:18.960 The math spells that out 479 00:24:19.280 --> 00:24:20.480 But I just got to wait 480 00:24:20.480 --> 00:24:21.680 Once I get there 481 00:24:21.680 --> 00:24:24.160 Then I can talk about how to build a billion dollar portfolio 482 00:24:24.160 --> 00:24:26.400 And you can imagine how my content might change 483 00:24:26.400 --> 00:24:27.040 Right? 484 00:24:27.040 --> 00:24:28.960 And so if you're making six figures a year 485 00:24:28.960 --> 00:24:30.480 And trying to talk about how to make seven 486 00:24:30.480 --> 00:24:32.080 And you've never made seven 487 00:24:32.080 --> 00:24:32.880 Then you're full of shit 488 00:24:33.360 --> 00:24:35.360 Rightfully you get the heat that you do 489 00:24:35.360 --> 00:24:36.160 Right? 490 00:24:36.160 --> 00:24:39.680 And so these are skills that you have to learn how to acquire 491 00:24:39.680 --> 00:24:41.520 To make content and to make code 492 00:24:41.520 --> 00:24:43.440 You have to learn how to go code 493 00:24:43.440 --> 00:24:45.520 And this is how little I know about coding 494 00:24:45.520 --> 00:24:46.240 This is it 495 00:24:46.240 --> 00:24:49.680 So I would even give you examples of micro skills 496 00:24:49.680 --> 00:24:53.920 But like you have to learn html and javascript and ruby and python 497 00:24:54.560 --> 00:24:56.480 That's about it it's all I know 498 00:24:56.480 --> 00:24:58.640 And data architecture 499 00:24:58.640 --> 00:24:59.680 And uh 500 00:24:59.680 --> 00:25:01.200 Yep that's it that's all I got 501 00:25:02.160 --> 00:25:05.280 It's so you have to learn these these smaller skills to then say 502 00:25:05.280 --> 00:25:07.680 I'm very excellent at code 503 00:25:07.680 --> 00:25:10.480 So that I can then have more leverage on the things that I do 504 00:25:10.480 --> 00:25:12.480 And then you can walk yourself up 505 00:25:12.480 --> 00:25:14.720 This income ladder with more leverage 506 00:25:14.720 --> 00:25:15.680 Right 507 00:25:15.680 --> 00:25:17.200 And again, leverage is about speed 508 00:25:17.200 --> 00:25:19.520 Any of these vehicles that I had done 509 00:25:19.520 --> 00:25:22.080 If I had done it for 45 years like mr panda 510 00:25:22.080 --> 00:25:23.920 You could get there 511 00:25:23.920 --> 00:25:26.880 Because my end on input is so high 512 00:25:26.880 --> 00:25:29.600 If I spend 45 years doing something 513 00:25:29.600 --> 00:25:32.000 I might not have the strongest arm 514 00:25:32.000 --> 00:25:34.880 But I've done it 45 times more 515 00:25:34.880 --> 00:25:36.560 So I still get more out 516 00:25:36.560 --> 00:25:38.720 Than the guy that's over here that does it two times 517 00:25:39.600 --> 00:25:41.760 This is where strategy comes into play 518 00:25:41.760 --> 00:25:43.680 Is making sure that you're picking the right vehicle 519 00:25:43.680 --> 00:25:45.680 Chris for example made last money 520 00:25:45.680 --> 00:25:47.120 In the first nine months 521 00:25:47.120 --> 00:25:48.880 Scaling in chin at fairies 522 00:25:48.880 --> 00:25:51.040 Then he did before 523 00:25:51.040 --> 00:25:53.360 But at month 10 he matched it 524 00:25:53.360 --> 00:25:55.040 At month 24 525 00:25:55.040 --> 00:25:56.800 It was it was like so small 526 00:25:56.800 --> 00:25:58.400 In comparison that didn't even matter 527 00:25:58.400 --> 00:26:00.240 But I can tell you this 528 00:26:00.240 --> 00:26:01.920 Really easy to say this 529 00:26:01.920 --> 00:26:03.120 Really hard to do that 530 00:26:03.120 --> 00:26:05.360 For nine months each shit 531 00:26:05.360 --> 00:26:07.360 And feel like you're losing 532 00:26:07.360 --> 00:26:09.200 And always knowing that you could always go back 533 00:26:09.200 --> 00:26:09.920 And that's the hard part 534 00:26:09.920 --> 00:26:11.520 Go back to what you were doing before 535 00:26:11.520 --> 00:26:12.560 That was comfortable 536 00:26:12.560 --> 00:26:14.000 And made you x 537 00:26:14.000 --> 00:26:15.920 Versus staying the path 538 00:26:15.920 --> 00:26:17.680 And I can tell you it was I mean it's hard for me 539 00:26:17.680 --> 00:26:18.720 I mean my team does that 540 00:26:18.720 --> 00:26:21.440 Like going for making what I was making a gym watch 541 00:26:21.440 --> 00:26:23.760 To doing acquisition.com 542 00:26:23.760 --> 00:26:24.800 The first year 543 00:26:24.800 --> 00:26:26.480 I was like this sucks 544 00:26:26.480 --> 00:26:28.320 Like I'm used to being able to run any personal expense 545 00:26:28.320 --> 00:26:29.840 For this business and not even blank 546 00:26:29.840 --> 00:26:32.080 I'm like oh I actually have to look at cash flow 547 00:26:32.080 --> 00:26:33.040 Right 548 00:26:33.040 --> 00:26:34.960 And so like these are things that you have to like take in 549 00:26:34.960 --> 00:26:36.160 But I do believe genuinely 550 00:26:36.160 --> 00:26:38.000 You're 10 of acquisition.com 551 00:26:38.000 --> 00:26:40.160 I think is bigger than your 15 552 00:26:40.160 --> 00:26:41.360 Of gym launch 553 00:26:41.360 --> 00:26:42.720 To make the apples to apples comparison 554 00:26:42.720 --> 00:26:45.280 Because the thing is that you actually never get an apples to apples comparison 555 00:26:45.280 --> 00:26:46.560 Because you can go back in time 556 00:26:46.560 --> 00:26:48.560 And so you have to look at what your 10 of one businesses 557 00:26:48.560 --> 00:26:50.160 Compared to your three of another 558 00:26:50.160 --> 00:26:51.760 And so if you're at your sixth year 559 00:26:52.720 --> 00:26:54.640 Maybe you should just keep riding it out 560 00:26:54.720 --> 00:26:56.160 Because whatever you started with 561 00:26:56.160 --> 00:26:58.000 Is the thing that you have the longest 562 00:26:58.000 --> 00:27:00.480 lever on number of times that you got reps in 563 00:27:00.480 --> 00:27:01.840 And people want to change industries 564 00:27:01.840 --> 00:27:03.840 And I'll give you a little tidbit from Y Combinator 565 00:27:03.840 --> 00:27:05.600 One is they don't take solo founders 566 00:27:05.600 --> 00:27:06.320 As a side note 567 00:27:06.320 --> 00:27:08.320 Now mind you they're only interested in billion dollar companies 568 00:27:08.320 --> 00:27:10.720 So if that's not you then you could totally be a single founder 569 00:27:10.720 --> 00:27:12.480 But it's just harder to be successful 570 00:27:12.480 --> 00:27:14.160 With one person's skills versus three 571 00:27:14.880 --> 00:27:16.720 The second interesting thing that they have 572 00:27:16.720 --> 00:27:18.400 They have many things they select for 573 00:27:18.400 --> 00:27:20.240 But one of them is industry experience 574 00:27:20.240 --> 00:27:23.200 And so if someone says hey I want to get into this industry 575 00:27:23.200 --> 00:27:25.520 If you don't have any experience in that industry 576 00:27:25.520 --> 00:27:27.760 And then second to that is personal experience 577 00:27:27.760 --> 00:27:30.080 Like you suffered from whatever problem you're trying to solve 578 00:27:30.960 --> 00:27:32.000 Then they're not interested 579 00:27:32.880 --> 00:27:37.360 And so you might have six years of experience in the mortgage business 580 00:27:37.360 --> 00:27:38.800 I wouldn't recommend getting into weight loss 581 00:27:39.360 --> 00:27:40.880 I would say maybe you take a half pivot 582 00:27:40.880 --> 00:27:42.160 So you're in the same industry 583 00:27:42.160 --> 00:27:44.640 Because it's so hard to make up those six years 584 00:27:44.640 --> 00:27:47.760 This hopefully gives you a more nuanced view 585 00:27:47.760 --> 00:27:49.520 To making the right picks 586 00:27:49.520 --> 00:27:51.200 To making the most money 587 00:27:51.280 --> 00:27:54.800 By the way if you guys like the whiteboard of me drawing on with markers 588 00:27:54.800 --> 00:27:56.480 This is a throwback to what I used to do 589 00:27:56.480 --> 00:27:57.760 I finally got another board because 590 00:27:59.200 --> 00:28:00.400 Love these things 591 00:28:00.400 --> 00:28:02.720 But if you like this style like let me know 592 00:28:02.720 --> 00:28:05.440 I love this style but I just try and do the things that 593 00:28:05.440 --> 00:28:07.600 That the data suggests that you like the most 594 00:28:07.600 --> 00:28:10.320 I'll do what you guys want so that I can hopefully transfer 595 00:28:10.320 --> 00:28:12.480 The skills that I have to you faster 596 00:28:12.480 --> 00:28:16.080 I said earlier that the unknown unknowns are the most expensive thing in business 597 00:28:16.080 --> 00:28:17.920 Right because you don't know what you don't know 598 00:28:17.920 --> 00:28:19.840 And so I want to give you a quantifiable example 599 00:28:19.840 --> 00:28:21.840 I remember the first time I heard this it changed my life 600 00:28:21.840 --> 00:28:23.840 And so it was actually a whiteboard just like this 601 00:28:23.840 --> 00:28:25.200 So you get to like I'm getting goosebumps 602 00:28:25.200 --> 00:28:27.200 You'll you'll have the same experience I did 603 00:28:27.200 --> 00:28:29.840 So I was on stage and gave this whole presentation about 604 00:28:29.840 --> 00:28:32.480 About learning skills and about how you have to invest in yourself 605 00:28:32.480 --> 00:28:34.000 To get better right 606 00:28:34.000 --> 00:28:36.800 And he called somebody in the audience and he said 607 00:28:36.800 --> 00:28:39.280 Ma'am and as he's saying this he's doing what I'm doing 608 00:28:39.280 --> 00:28:40.800 He says ma'am 609 00:28:40.800 --> 00:28:42.800 How much money do you make right now per year 610 00:28:42.800 --> 00:28:44.880 She stood up and she said $50,000 a year 611 00:28:44.880 --> 00:28:46.560 He was like okay 612 00:28:46.640 --> 00:28:50.080 So what would be the the main reason that you wouldn't want to invest today 613 00:28:50.080 --> 00:28:52.560 Right so he was closing this was actually a close but 614 00:28:52.560 --> 00:28:54.960 As a side note I think the reason I like sales so much 615 00:28:54.960 --> 00:28:58.480 Is because many of the obstacles overcomes that you learn to overcome 616 00:28:58.480 --> 00:29:00.080 Are actually self bullshit 617 00:29:00.080 --> 00:29:02.960 And so in a way like learning how to sell other people 618 00:29:02.960 --> 00:29:05.200 For me was learning how to sell myself 619 00:29:05.200 --> 00:29:09.120 Because I had so much head trash of like why I couldn't do things or why I shouldn't start now 620 00:29:09.120 --> 00:29:11.920 Or why I had to think about our why I need a permission from someone else or why the 621 00:29:11.920 --> 00:29:14.080 The universe was stacked against me to be successful 622 00:29:14.160 --> 00:29:18.960 Like these are all things that I had to learn the arguments against to convince myself to do stuff 623 00:29:18.960 --> 00:29:21.600 And so he asked the lady he says okay 624 00:29:21.600 --> 00:29:23.520 So what would make you not want to invest in this 625 00:29:23.520 --> 00:29:26.640 And she says well I don't have the money 626 00:29:26.640 --> 00:29:29.680 And he said well it's probably you probably don't have the money 627 00:29:29.680 --> 00:29:32.560 Because you've been paying a really expensive bill every single year 628 00:29:32.560 --> 00:29:34.080 And she's like what do you mean 629 00:29:34.080 --> 00:29:38.880 He's like well right now you've been paying $950,000 a year 630 00:29:38.880 --> 00:29:40.640 Not knowing how to make a million dollars 631 00:29:40.720 --> 00:29:43.280 He said this is the cost of your ignorance 632 00:29:46.160 --> 00:29:48.560 Hey guys love that you're listening to the podcast 633 00:29:48.560 --> 00:29:52.560 If you ever want to have the video version of this which usually has more effects 634 00:29:52.560 --> 00:29:55.360 More visuals more graphs you know drawn out stuff 635 00:29:55.360 --> 00:29:58.480 Sometimes it can help hit the brain centers in different ways 636 00:29:58.480 --> 00:30:00.640 You can check my youtube channel. It's absolutely free 637 00:30:00.640 --> 00:30:02.320 To check that out if that's what you are into 638 00:30:02.320 --> 00:30:03.920 And if not keep enjoying the show 639 00:30:06.720 --> 00:30:08.240 This is the debt that you carry 640 00:30:09.040 --> 00:30:12.160 For the rest of your life until you learn how to make a million dollars 641 00:30:13.120 --> 00:30:19.040 And so the reason I'm so heavy on learning skills and becoming educated is that right now 642 00:30:19.040 --> 00:30:20.480 I'm paying down ignorance debt 643 00:30:21.360 --> 00:30:23.360 I'm paying down 644 00:30:23.360 --> 00:30:26.080 $950 million a year not knowing how to make a billion 645 00:30:27.120 --> 00:30:28.400 It's debt I'm paying 646 00:30:28.400 --> 00:30:29.920 Well like we all pay ignorance debt 647 00:30:29.920 --> 00:30:32.480 And so the idea is how quickly cannot pay this down 648 00:30:33.040 --> 00:30:35.760 So that I can have more cash flow to continue to pay this down 649 00:30:36.400 --> 00:30:37.360 Faster 650 00:30:37.360 --> 00:30:43.120 Now strategy like I said earlier is about how you allocate limited resources against unlimited options 651 00:30:43.120 --> 00:30:46.000 That's the fancy word of just saying prioritizing all right 652 00:30:46.000 --> 00:30:49.600 And so right now you have limited resources 653 00:30:49.600 --> 00:30:51.520 You have time and you have money 654 00:30:51.520 --> 00:30:52.880 Now you might have more time than money 655 00:30:52.880 --> 00:30:55.920 But either way you have some limit on what you have 656 00:30:55.920 --> 00:30:59.440 And so for you to move faster you have to identify prioritize 657 00:31:00.000 --> 00:31:02.560 The thing that you're going to allocate your time and money towards 658 00:31:02.560 --> 00:31:04.720 Right and you want the thing that gets you the most for it 659 00:31:04.720 --> 00:31:06.960 Remember the input output that we had over the leverage 660 00:31:06.960 --> 00:31:08.880 So you want the thing that gives you the most leverage 661 00:31:08.880 --> 00:31:12.400 Now one of the one of the tough parts about reality is that 662 00:31:12.400 --> 00:31:16.960 The things that you have access to when you have fuel resources are less than the things that you've access to 663 00:31:16.960 --> 00:31:18.480 When you have more resources 664 00:31:18.480 --> 00:31:23.120 Like Mr. Panda can go buy a building for a billion dollars 665 00:31:23.120 --> 00:31:25.920 And flip it for two billion dollars in a year or two 666 00:31:26.800 --> 00:31:28.560 And make a billion dollars 667 00:31:28.560 --> 00:31:31.520 Because he has more resources than you do and you can't do that 668 00:31:31.520 --> 00:31:33.520 Right not right now 669 00:31:33.520 --> 00:31:35.920 But you do have things that could get you there 670 00:31:35.920 --> 00:31:37.840 Which is why Charlie Munger talks about how 671 00:31:38.480 --> 00:31:41.040 Do whatever you can do big bar of steel eat ramen 672 00:31:41.040 --> 00:31:42.800 Walk with your lunchpile both directions 673 00:31:42.800 --> 00:31:44.960 Do whatever you have to do to make your first 100,000 674 00:31:44.960 --> 00:31:45.920 It's because he understands 675 00:31:45.920 --> 00:31:48.480 And mind you him saying 100,000 is probably like a million dollars today 676 00:31:48.480 --> 00:31:50.160 Because he knows that once you get that 677 00:31:50.160 --> 00:31:52.400 You can actually get a little bit more leverage 678 00:31:52.400 --> 00:31:54.240 In terms you get way more for what you put in 679 00:31:54.240 --> 00:31:56.240 Because you can't only put your time in 680 00:31:56.240 --> 00:31:58.480 Because it's so limited in terms of how much you can do 681 00:31:58.480 --> 00:32:00.480 All right so 682 00:32:00.640 --> 00:32:02.160 This is why 683 00:32:02.240 --> 00:32:03.520 I talk about having 684 00:32:03.520 --> 00:32:06.880 Investing in the SME 500 more than the SMP 500 685 00:32:06.880 --> 00:32:08.400 So if you don't know this is standard and poor 686 00:32:08.400 --> 00:32:10.960 500 companies on the stock exchange 687 00:32:10.960 --> 00:32:12.720 It's probably like the gold standard index 688 00:32:12.720 --> 00:32:14.320 That we track how the US economy is doing 689 00:32:14.320 --> 00:32:16.400 It's really just the stock market in general is doing 690 00:32:16.400 --> 00:32:18.640 All right so if you dollar cost average in the SMP 500 691 00:32:18.640 --> 00:32:21.920 You get 9 to 10% a year for for life 692 00:32:21.920 --> 00:32:23.200 At least that's what it's done historically 693 00:32:23.200 --> 00:32:24.640 All right so the question is 694 00:32:25.840 --> 00:32:27.760 Rather than investing in this 695 00:32:27.760 --> 00:32:30.960 We just have to say can we do anything that gets us more than 10% back 696 00:32:32.480 --> 00:32:34.480 Great now we can quantify this 697 00:32:34.480 --> 00:32:37.120 And so if I have let's say a thousand dollars 698 00:32:38.000 --> 00:32:38.880 Right 699 00:32:38.880 --> 00:32:40.400 And here's the magic of this 700 00:32:40.400 --> 00:32:43.520 Is that when you invest a thousand dollars into the SMP 701 00:32:43.520 --> 00:32:45.360 You have no you have nothing else 702 00:32:46.320 --> 00:32:48.960 That you add to that thousand like you can't juice the thousand 703 00:32:48.960 --> 00:32:52.000 You bind at the same valuation that every other investor buys in it 704 00:32:52.000 --> 00:32:55.120 And so I'll tell you one of the magic so I'm going to open open up the curtain here for a second 705 00:32:55.120 --> 00:32:58.240 One of the magical what we do at acquisition is not common is that we pair capital 706 00:32:58.240 --> 00:32:59.680 With know how 707 00:32:59.680 --> 00:33:01.440 And so we can buy a company 708 00:33:02.080 --> 00:33:04.000 At a decent valuation 709 00:33:04.000 --> 00:33:07.200 And have a big margin of safety because of our skill set 710 00:33:07.200 --> 00:33:11.440 So we know that we can triple or 10x the business when we invest in it 711 00:33:11.440 --> 00:33:15.680 So we don't have to pick amazingly like Warren Buffett the better picker always will be than I am 712 00:33:15.680 --> 00:33:17.280 Right at picking businesses 713 00:33:17.280 --> 00:33:19.600 But Warren Buffett doesn't work in the business right 714 00:33:19.600 --> 00:33:22.240 So that's the event that's my advantage over Warren Buffett right now 715 00:33:22.240 --> 00:33:24.480 Might you he has way more advantages over me 716 00:33:24.480 --> 00:33:26.560 All right made 90 billion on his apple trade 717 00:33:26.560 --> 00:33:28.080 But 718 00:33:28.080 --> 00:33:30.800 But this is the game that I'm supposed to play right now 719 00:33:30.800 --> 00:33:32.480 Because here's the leverage that I have on him 720 00:33:33.760 --> 00:33:36.960 I have 60 more years of life than he does 721 00:33:37.920 --> 00:33:40.400 Right he's 93 I'm 33 722 00:33:40.400 --> 00:33:43.920 So I have a lot more of these left on my on my moveset 723 00:33:43.920 --> 00:33:45.920 Okay now we have our thousand dollars 724 00:33:46.560 --> 00:33:49.200 We get 10% meaning at the end of the year we're at 1100 725 00:33:49.920 --> 00:33:51.440 Dollars roughly 726 00:33:51.440 --> 00:33:55.200 Okay, or let's say you buy a sales training course 727 00:33:55.200 --> 00:33:59.440 They teach you how to sell and you get implementation from that where they review some of your calls 728 00:33:59.440 --> 00:34:04.000 So that you can improve and all of a sudden you take your income from 40,000 year 729 00:34:05.360 --> 00:34:07.840 To 220,000 year 730 00:34:07.840 --> 00:34:12.960 Okay, well, what does that mean? I mean is that that thousand think about this return all right in scenario one 731 00:34:12.960 --> 00:34:15.440 You have 1100 dollars in scenario two 732 00:34:16.160 --> 00:34:18.880 And here's the crazy part you have an extra 733 00:34:19.920 --> 00:34:21.920 180,000 734 00:34:21.920 --> 00:34:23.760 All right, so compare this to that 735 00:34:24.480 --> 00:34:26.160 But here's the crazy part 736 00:34:26.160 --> 00:34:28.560 This is every year because once you have the skill 737 00:34:29.760 --> 00:34:34.480 You only get better from there and so one of the things my dad used to tell me that um when I was growing up 738 00:34:35.200 --> 00:34:39.040 Was that he was always really big on education because he came here a thousand dollars didn't speak the language 739 00:34:39.360 --> 00:34:42.560 And he learned English like that was a skill he didn't have like we take so many skills for granted 740 00:34:42.560 --> 00:34:47.040 Like the man didn't he couldn't even speak the language of the country right in a thousand bucks 741 00:34:47.040 --> 00:34:51.600 And he was able to take his medical school education and apply it here in the US 742 00:34:52.240 --> 00:34:55.120 Because he fled during the revolution in Iran and 743 00:34:55.600 --> 00:35:00.080 He said the one thing that no government can take from you and no wife can still from unit of course 744 00:35:01.120 --> 00:35:03.120 You can't get sued out of 745 00:35:04.080 --> 00:35:06.080 Is your education 746 00:35:06.160 --> 00:35:08.080 They can't take it from you and he had 747 00:35:08.880 --> 00:35:13.040 Relatives who were actually really well off who actually owned the lottery in Iran 748 00:35:13.120 --> 00:35:15.120 So you get it was a private company so they made a lot of money 749 00:35:15.840 --> 00:35:20.720 But they were like second third generation and they hadn't learned the skills and so when they fled during the revolution 750 00:35:21.520 --> 00:35:25.760 They could only take what they could carry because all of their assets got seized by the government 751 00:35:26.560 --> 00:35:30.480 And they never were able to go back to what they had because they didn't have the skills 752 00:35:31.280 --> 00:35:34.720 Because the government could take their assets, but they didn't have the education 753 00:35:35.120 --> 00:35:41.920 Right and the guys who were who were businessmen from Iran straight to LA became businessmen in in in LA and crushed it there too 754 00:35:42.400 --> 00:35:48.560 Because they understood the game right and so this is why like if you think about it from actually an investment perspective 755 00:35:49.040 --> 00:35:54.320 Education can't go down. It can't be taxed. It can't be taken from you and only gets better over time 756 00:35:55.040 --> 00:35:58.720 Right and it compounds unto itself because when you learn the next skill 757 00:35:59.280 --> 00:36:02.240 So let's say this is this is what the lift we got from from sales 758 00:36:02.960 --> 00:36:08.480 Then you learn lead gen and then all of a sudden this because then you five x the demand on your sales skills 759 00:36:09.280 --> 00:36:14.080 And you just paid down your ignorance debt with two investments and so like is that worth it more 760 00:36:15.040 --> 00:36:20.160 Then putting the the money in the S&P in my opinion every fucking time 761 00:36:21.120 --> 00:36:25.200 Is going for 40 to 220 realistic if you're a killer in your part of mosey nation 762 00:36:25.360 --> 00:36:27.600 Apps of fucking Lulee if you do it the way we tell you to do it 763 00:36:27.600 --> 00:36:31.920 Which is you look at the top guy on whatever company whatever team and you do twice what they do 764 00:36:32.640 --> 00:36:36.720 Because you know why because they're gonna be better than you and so you've got to make up with you got to make it up in inputs 765 00:36:36.880 --> 00:36:40.080 It's like bed Alex does that mean I'm gonna have to work harder and longer hours you bet 766 00:36:40.800 --> 00:36:42.640 Welcome to the world 767 00:36:42.720 --> 00:36:45.680 Like because think about it if you work the same hours as that guy 768 00:36:45.680 --> 00:36:48.400 That guy always has the advantage because he's already better than you 769 00:36:48.480 --> 00:36:51.760 And so if he puts a month in and you put a month in he's gonna get further ahead than you 770 00:36:51.920 --> 00:36:55.600 Because he already has skills through which to to judge his own performance and improve 771 00:36:55.760 --> 00:36:59.520 And so you have to put way more inputs in to get the same output than that guy 772 00:36:59.600 --> 00:37:04.080 And so that's why Kobe spent five summers doing two days when everyone else was doing one a day 773 00:37:04.080 --> 00:37:07.840 Because he knew he had to make up for the guys who were way better than him naturally 774 00:37:08.320 --> 00:37:10.960 And so like I would like to think everybody emozination as 775 00:37:11.520 --> 00:37:16.800 Many black mamas from that perspective is that we're willing to put in twice the work three times the work four times the work 776 00:37:17.040 --> 00:37:25.040 Despite the natural talent deficiencies to make up for it because on a five-year or a ten-year or 25-year timeline to become unbeatable 777 00:37:25.200 --> 00:37:27.200 Do I think you can get to 220? 778 00:37:27.520 --> 00:37:28.800 Hell yeah 779 00:37:28.960 --> 00:37:35.680 But if you were to just look at average which I don't want you to be but if you were to look at average you might make a hundred a year or a hundred and twenty a year 780 00:37:36.400 --> 00:37:39.840 It would still triple what you were making before and if you don't adjust your living 781 00:37:40.400 --> 00:37:43.040 From what you're making at 40 mr. smart cookie 782 00:37:43.760 --> 00:37:45.520 Then now you have even at 120 783 00:37:47.200 --> 00:37:49.840 This was 120 you have 80k your 784 00:37:50.720 --> 00:37:58.480 Extra that you can then invest in more skills to pay down your ignorance that a key point here as I said that there was an advantage that I have 785 00:37:58.480 --> 00:38:00.480 Worm Buffet which is I got money 786 00:38:01.600 --> 00:38:03.600 and time 787 00:38:03.760 --> 00:38:06.000 Effort right if you go spend the money 788 00:38:06.720 --> 00:38:09.680 But you don't put this in then you lose your advantage 789 00:38:10.320 --> 00:38:14.640 And so it's not just about spending the money because here's an interesting fact to it for you 790 00:38:15.120 --> 00:38:21.040 When you sell someone you understand that the moment someone buys they actually feel like they solve the problem emotionally 791 00:38:21.600 --> 00:38:24.000 And so you can sell that because you learn how to sell 792 00:38:24.960 --> 00:38:30.080 But the reality is that that just gives them the license to begin solving the problem of whatever it is 793 00:38:30.160 --> 00:38:33.200 Especially if it's a skill or it's education based and here's my answer for you guys 794 00:38:33.680 --> 00:38:39.280 One of the beliefs that I think to serve me well is that whenever I joined a group or I joined a community or I free or paid or otherwise 795 00:38:40.160 --> 00:38:42.160 I always wanted to become number one 796 00:38:42.160 --> 00:38:45.760 And the way that I thought about that was and I always wanted to join groups of people who were all ahead of me 797 00:38:45.760 --> 00:38:49.200 Like when I joined the internet group that I was talking about earlier everybody there was making more money than me 798 00:38:49.200 --> 00:38:53.040 How do I get status in this group and the way that I did that was like be be good, you know 799 00:38:53.040 --> 00:38:57.200 I mean make more money and so what I did was I talked to every single person in the group 800 00:38:57.200 --> 00:39:00.960 And I had only my small skill set and I gave it to them for free 801 00:39:00.960 --> 00:39:04.240 And I want to fucking hit on this because I get DMs every day about this 802 00:39:05.200 --> 00:39:10.720 Guy this morning even said it. He said Alex. I want to make you a hundred videos for free 803 00:39:11.920 --> 00:39:13.440 If 804 00:39:13.440 --> 00:39:15.440 You're willing to employ me 805 00:39:16.800 --> 00:39:22.320 The amount of times that I get this request whether it's I want to make you this website in exchange for a job 806 00:39:22.480 --> 00:39:25.120 The point of Mosination the point of everything that you do at Kuzak 807 00:39:25.200 --> 00:39:29.360 Acquisition.com that I hope to live by example is that you give first without asking 808 00:39:30.080 --> 00:39:33.760 You're doing it wrong, right? You think because like and the way I was like hey in the spirit of Mosination 809 00:39:33.760 --> 00:39:37.680 It's like you're not doing in the spirit of Mosination. You're doing the spirit of John. All right. You're doing the spirit of you 810 00:39:38.800 --> 00:39:45.760 The way that you do it is that you give and then you give and then you give and then you give and you keep on giving until that person is like 811 00:39:45.760 --> 00:39:50.160 Dude, what can I do for you and then you make your ask like whenever I get frustrated 812 00:39:50.640 --> 00:39:54.000 And I think like why do I even bother doing this like I think about giving up 813 00:39:54.640 --> 00:39:56.640 I just think 814 00:39:56.640 --> 00:39:59.440 This is where most people stop and this is why they don't win 815 00:40:00.480 --> 00:40:03.760 It transitions into one of my my most you sayings to myself 816 00:40:03.760 --> 00:40:05.920 I don't say a lot out loud, but to myself 817 00:40:05.920 --> 00:40:08.400 It's like I won't do my best. I'll do what's required 818 00:40:08.960 --> 00:40:14.160 And so right now what is required for you to win or get a job or get the skill might be better than your best 819 00:40:14.560 --> 00:40:16.480 And so it just means that your best just needs to get better 820 00:40:17.120 --> 00:40:20.880 All right, so you might be rallied up and be like I'm gonna go do this and take over the world and make all the money 821 00:40:21.280 --> 00:40:23.280 So but you're like fuck I gotta pay bills 822 00:40:24.000 --> 00:40:29.440 So how do we take this and then put it into reality number one is like and this is how you transfer any skills in general 823 00:40:29.440 --> 00:40:32.000 By the way a little sneak peek from the book that's coming up all right 824 00:40:32.960 --> 00:40:34.960 That makes it 825 00:40:35.040 --> 00:40:36.560 Is that you have 826 00:40:36.560 --> 00:40:40.320 So the person who's teaching you documents the skill that's step one 827 00:40:40.960 --> 00:40:47.200 Step two is that they do it in front of you so they demonstrate it and the third piece is duplicate 828 00:40:47.920 --> 00:40:49.920 You do it in front of them 829 00:40:50.000 --> 00:40:52.800 So document demonstrate duplicate now 830 00:40:53.520 --> 00:40:56.000 I can do this and I can do this 831 00:40:56.880 --> 00:40:58.880 But you have to do this 832 00:40:59.120 --> 00:41:02.640 I can't duplicate it for you you have to take the stuff and actually execute on it 833 00:41:03.120 --> 00:41:04.720 And so if you're like okay, Alex 834 00:41:05.600 --> 00:41:07.600 What does that actually look like in my life 835 00:41:09.280 --> 00:41:13.600 I'm actually big big proponent of having jobs and I think that's probably taboo nowadays 836 00:41:13.600 --> 00:41:16.160 But uh, yeah, why not get paid to learn shit 837 00:41:17.040 --> 00:41:22.960 And if you're like well the place that I work at doesn't teach me anything then you should absolutely go apply for other jobs 838 00:41:23.760 --> 00:41:27.680 Like change your conditions all right, so I'm all about 839 00:41:28.560 --> 00:41:30.560 Get paid to 840 00:41:30.560 --> 00:41:35.440 Learn and as an aside the reason that keeping your living expenses low is so important is because 841 00:41:36.000 --> 00:41:38.080 If let's say you make a hundred thousand dollars a year now and you're like 842 00:41:38.080 --> 00:41:42.000 Oh, it's got a pretty good white collar job right now, but I really want to get into this then it might mean 843 00:41:42.240 --> 00:41:46.560 That you have to go from a hundred thousand dollars a year to thirty thousand dollars a year to learn the skill 844 00:41:46.720 --> 00:41:51.680 Because right now you go from earning to learning all right, and like I want to I want to tell you like 845 00:41:51.760 --> 00:41:53.120 I walked this walk 846 00:41:53.120 --> 00:41:56.000 So I was a management consultant at a boutique strategy firm 847 00:41:56.560 --> 00:41:58.880 in DC like we did like I had a top-secure clearance 848 00:41:58.880 --> 00:42:01.440 I was 20 like I did I did shit that people could brag about all right 849 00:42:02.080 --> 00:42:06.240 And then I went and became a personal trainer in a gym for fourteen dollars an hour 850 00:42:07.040 --> 00:42:08.560 Think about that 851 00:42:08.640 --> 00:42:14.720 I went from a high-rise condo that I owned to renting someone's bedroom for four hundred dollars a month in their house 852 00:42:15.200 --> 00:42:19.920 All right, and I went from having you know Hugo boss suits to wearing beast mode engage t-shirts 853 00:42:20.480 --> 00:42:22.800 All right, and showing up at four a.m 854 00:42:23.280 --> 00:42:27.440 Like ready to teach Nancy how to lose the last five you know, they mean and so like 855 00:42:28.320 --> 00:42:31.760 I had to swallow my pride on this because I wanted to 856 00:42:34.160 --> 00:42:36.160 I wanted to get learned 857 00:42:37.040 --> 00:42:42.480 All right, and so you have to be willing to relinquish getting paid for getting learned 858 00:42:43.040 --> 00:42:48.000 All right, once you get yourself in an environment where you actually have a business that is investing in you 859 00:42:48.240 --> 00:42:52.240 And it doesn't mean that they actually have to write checks to be clear now if you have a company that's willing to do that 860 00:42:52.320 --> 00:42:54.320 awesome level one is 861 00:42:54.720 --> 00:42:59.200 You communicate to them. This is the skill that I would like to learn upon working for you 862 00:42:59.600 --> 00:43:02.800 And so you're like these are the skills that I bring to the table. This is what I would like to learn 863 00:43:03.280 --> 00:43:05.280 Is this a place that I can do that? 864 00:43:05.440 --> 00:43:07.440 Any business owner loves clear communication 865 00:43:07.440 --> 00:43:09.440 And it's like if you want to learn that and if they're a good business owner 866 00:43:09.440 --> 00:43:12.800 They'll be like let me help you support now if they're like my job isn't to teach you wrong place 867 00:43:13.280 --> 00:43:15.840 And I'm be real a lot of business owners like that 868 00:43:16.000 --> 00:43:18.480 And so if you're like well, huh, man, it's not fair 869 00:43:18.560 --> 00:43:22.240 It's like well, I mean getting paid to learn is a pretty good deal 870 00:43:22.480 --> 00:43:26.080 It's just that that's not always what happens and so I would say switch your conditions 871 00:43:26.160 --> 00:43:30.000 But let's say you finally get into a business that teaches you stuff and you feel like you're getting better 872 00:43:30.000 --> 00:43:34.800 You're moving faster. I would say once you feel like and this is a big caveat. This is like fucking caveat 873 00:43:35.440 --> 00:43:38.240 Once you have nothing left to learn from the current position 874 00:43:38.400 --> 00:43:41.040 You communicate to them that you feel like you're learning is slowed down 875 00:43:41.760 --> 00:43:44.240 And then they may give you another opportunity to learn more 876 00:43:44.800 --> 00:43:47.440 And if they feel like they can't actually teach you internally 877 00:43:47.440 --> 00:43:50.080 They might say I'll pay $10,000 a year 878 00:43:50.160 --> 00:43:53.760 Free to go through these programs or workshops or seminars or whatever so you can 879 00:43:53.840 --> 00:43:58.000 Or certifications so you can continue to level up your skill a good employer will do that 880 00:43:58.320 --> 00:44:00.560 And if you look at big corporate America as much as people should on them 881 00:44:00.560 --> 00:44:04.160 They usually have pretty strong corporate reinvestment programs like they why 882 00:44:04.400 --> 00:44:07.600 Because they want their their human capital to appreciate 883 00:44:07.920 --> 00:44:12.720 And so if you can pay $10,000 because they do the same SME 500 except the SMU 500 884 00:44:13.040 --> 00:44:16.960 Right, they invest in you $10,000 and they get a three times more valuable person 885 00:44:17.120 --> 00:44:20.080 Like one of the biggest arbitrage opportunity side of this and be talking to business owners 886 00:44:20.720 --> 00:44:26.800 That's out there in the marketplace is that you can pay 25% more for an A player versus a B player and you get five times the output 887 00:44:27.360 --> 00:44:31.040 So like you think about value arbitrage like instead of paying a hundred a year if that's the market 888 00:44:31.280 --> 00:44:35.680 Pay 125 and get five times the output. Why would you never make that trade once you've done this 889 00:44:36.080 --> 00:44:41.840 Here the three steps that you can transition from getting learned back to getting paid all right number one is that you live below your means 890 00:44:43.680 --> 00:44:47.440 The last risk you taking your personal life the more risk you take in your business life 891 00:44:47.760 --> 00:44:51.120 Let's say that I own a business. It does 10 million dollars a year in profit 892 00:44:51.200 --> 00:44:55.120 Okay, if my living expenses are 800,000 dollars a month 893 00:44:56.080 --> 00:45:01.360 Then I'm not leaving much for the business to weather a storm and let's say that it's all fixed 894 00:45:01.440 --> 00:45:04.960 It's like mortgages and cars and jets and all the other stuff that I do 895 00:45:05.200 --> 00:45:09.920 Well, if there's a hiccup the business might go under but if I live on 400,000 a year 896 00:45:10.400 --> 00:45:12.400 Then I have 9.6 million 897 00:45:13.520 --> 00:45:16.480 Every year that I can go on the offensive that I can take huge swings 898 00:45:16.480 --> 00:45:20.080 I can be like I want to buy this company even though it's risky, but it might 10x 899 00:45:20.560 --> 00:45:24.640 Right and that offense is what you have to do as an entrepreneur because you have to take great calculated risk 900 00:45:25.120 --> 00:45:29.200 But you don't want to introduce multiple risk if you can control it and this is controllable risk 901 00:45:29.600 --> 00:45:32.160 Okay, so you live below your means so you can stack cash 902 00:45:32.720 --> 00:45:36.240 Okay, level two is that you take this cash and I want to be clear 903 00:45:36.800 --> 00:45:39.840 I'm actually kind of against side hustles as a long-term thing 904 00:45:40.080 --> 00:45:44.160 I'm pro them as a way to transition again. This is how I play the game 905 00:45:44.160 --> 00:45:48.560 I'm a maximizer like I want to win big and so I think if you follow my stuff that you probably want to win big too 906 00:45:48.960 --> 00:45:52.960 And so if you're doing a side hustles because you wanted to eventually become your main hustle 907 00:45:52.960 --> 00:45:56.960 Not because you're just looking for side income. I'm just not that guy. There's other guys you will talk about that 908 00:45:57.120 --> 00:46:02.560 It's just not me. All right, and so you stack the cash you can start your side hustle and you keep doing this until 909 00:46:03.600 --> 00:46:05.600 You have a matched your income 910 00:46:05.920 --> 00:46:09.440 So you start your side hustle and you keep doing it until you match your current income 911 00:46:10.400 --> 00:46:12.800 And if you're like wait a second for me to match my current income 912 00:46:12.800 --> 00:46:17.440 I'm gonna have to work 40 hours a week in my job and then work on another 40 hours a week at this thing 913 00:46:17.840 --> 00:46:19.040 Yep 914 00:46:19.040 --> 00:46:23.600 And the thing is and this is just you know one man's caveat. There's me different different takes on this if you're not 915 00:46:24.080 --> 00:46:28.960 Making more money on 40 hours a week of the new thing you're still not doing it right remember 916 00:46:28.960 --> 00:46:31.280 I went from employed to self-employed you have a level of leverage 917 00:46:31.600 --> 00:46:34.560 So those 40 hours you have more leverage than the 40 hours that you're working for someone else 918 00:46:34.960 --> 00:46:36.960 And if you're not making more there 919 00:46:36.960 --> 00:46:41.680 Then you're like you still need to keep doing it until you've matched at least at least match your income 920 00:46:41.840 --> 00:46:43.840 And then once you've matched the income 921 00:46:43.840 --> 00:46:47.840 I would say sustain it for six months two reasons one is because now you're gonna be making double time 922 00:46:47.840 --> 00:46:51.200 You're gonna be making money on your job. You're gonna be making money on your so you're gonna be doubling your actual income 923 00:46:51.200 --> 00:46:53.280 Which means you might be like three or four acts in your savings 924 00:46:53.280 --> 00:46:57.120 And the second is so that you don't just quit on the one good month you had because you sent up for clients 925 00:46:57.520 --> 00:47:01.920 Okay, we want to make sure that it's not seasonal we want to make sure that we get like it's not just normal volatility 926 00:47:01.920 --> 00:47:06.880 Because really small businesses super volatile right if you're selling two customers a month if all of a sudden you sell zero 927 00:47:07.120 --> 00:47:11.040 Your income goes to zero right unless you retain the people etc etc and then 928 00:47:12.000 --> 00:47:14.560 Cut bait cut the cord and go out on your own 929 00:47:15.120 --> 00:47:16.400 Spread those wings 930 00:47:16.400 --> 00:47:20.880 Make a beautiful butterfly in a lot of people look at this thing the side hustle and they're like 931 00:47:20.880 --> 00:47:23.840 But this isn't Facebook like this isn't sure 932 00:47:24.160 --> 00:47:25.200 It's not 933 00:47:25.200 --> 00:47:31.040 But I think a lot of people put undue pressure on themselves by expecting their next thing to be a trillion dollar company and 934 00:47:31.840 --> 00:47:35.280 The likely that it happens super super super super super super super super small 935 00:47:35.680 --> 00:47:37.440 But again, it's like what are your goals? 936 00:47:37.440 --> 00:47:42.480 If your goals are just like get out of poverty get above the middle class get above get into the upper class like 937 00:47:42.960 --> 00:47:46.080 A lot of businesses can get you there if you want to be a trillion there. There's only a few 938 00:47:46.640 --> 00:47:52.800 And also what we don't see is the zillions of not Zuckerbergs who put everything into their social media thing 939 00:47:52.800 --> 00:47:53.840 And it didn't work 940 00:47:53.840 --> 00:47:56.720 I'm a big fan of service businesses because it costs you nothing to start 941 00:47:56.720 --> 00:47:58.960 It's just your time you have no overhead in the beginning 942 00:47:59.040 --> 00:48:00.720 Those ones are harder to scale 943 00:48:00.720 --> 00:48:05.600 But you'll usually learn a lot of other skills during that product like I learned more from running a gym 944 00:48:05.680 --> 00:48:08.880 That allowed me to do gym launch like if I hadn't run the gyms 945 00:48:08.880 --> 00:48:10.400 I don't think I would have been able to do gym launch 946 00:48:10.400 --> 00:48:13.760 And so think of whatever this is as the stepping stone and again 947 00:48:13.760 --> 00:48:16.240 We're still trying to get learned like that doesn't change 948 00:48:16.400 --> 00:48:18.160 We're just going to also get paid as we do it 949 00:48:18.160 --> 00:48:21.360 And that's one of the beautiful things about entrepreneurship is that like once you get past a certain level 950 00:48:21.360 --> 00:48:23.200 You get to get paid to learn more 951 00:48:23.200 --> 00:48:25.840 And I think that's like for me why I love the game so much 952 00:48:25.840 --> 00:48:28.400 Is that you just keep getting better and get paid to get better 953 00:48:28.400 --> 00:48:30.640 Don't judge yourself on the side hustle and especially 954 00:48:31.120 --> 00:48:33.360 Don't listen to other people's judgment on your side hustle 955 00:48:33.360 --> 00:48:37.920 You know any people like I was like Vanderbilt, Magna Cum Laude, you know white collar consultant job 956 00:48:37.920 --> 00:48:40.720 Like had a above-harvard, you know GMAT score 957 00:48:41.680 --> 00:48:43.920 Say like and you want to become a trainer 958 00:48:45.200 --> 00:48:47.920 Like the amount of people that like I used to compete against friend of me 959 00:48:47.920 --> 00:48:50.800 Is whatever you want to call it they were like oh great he's he's out of the race 960 00:48:50.800 --> 00:48:53.360 You know, I mean like he's he's doing stuff to make himself happy 961 00:48:53.760 --> 00:48:57.920 Right, you know, I was younger and I probably have more fucked up shit in my head than I do now 962 00:48:57.920 --> 00:49:01.040 But like I used to just think about them all the time when I'd be sleeping on the floor 963 00:49:01.120 --> 00:49:04.320 I'd be selling where I was like they're not willing to do this. They're not willing to do this 964 00:49:04.320 --> 00:49:05.920 And then you come from behind 965 00:49:05.920 --> 00:49:08.160 Right and you do Kobe and you work twice a day 966 00:49:08.160 --> 00:49:12.560 And while they're working their job and they have their three series BMW and they're you know going out to dinner 967 00:49:12.560 --> 00:49:16.240 And they have the football on the weekends and their fantasy league and you have none of that 968 00:49:17.280 --> 00:49:20.960 Just know that you're doing your two days during the summer or your three days during the summer 969 00:49:21.280 --> 00:49:26.160 But because your rate of input is so much higher than theirs is you will catch up and you also pass them 970 00:49:26.160 --> 00:49:28.160 And that's if you want to compare 971 00:49:28.480 --> 00:49:31.040 And the main reason I don't think you should judge yourself on whatever you do 972 00:49:31.600 --> 00:49:37.520 Is because in my opinion like I'm married to the game right more than anything like I'm going to keep playing the game 973 00:49:37.520 --> 00:49:42.560 Because I love the game and so if you want to play the game a long time 974 00:49:43.200 --> 00:49:49.120 Then it's the game itself that you want to stick with rather than the vehicle you're in right most entrepreneurs 975 00:49:49.200 --> 00:49:51.120 Start more than one business over their career 976 00:49:51.120 --> 00:49:56.160 You are above the business the problem is that people identify so closely like their identity is their business 977 00:49:56.480 --> 00:50:00.560 But you have to just think about it and this is me just trying to give you like a you know big brother 978 00:50:00.560 --> 00:50:02.000 What do you want to call it piece of advice? 979 00:50:02.000 --> 00:50:04.560 But like the further you can separate your identity 980 00:50:05.280 --> 00:50:09.280 And yourself worth from the worth of the business the better off you'll be as an entrepreneur 981 00:50:09.360 --> 00:50:10.960 Because you also start to see as an asset 982 00:50:11.680 --> 00:50:14.480 That can be sold can create value in the asset you can make hard decisions 983 00:50:14.480 --> 00:50:19.760 Whereas if it's you you're like what what will people think it's like I made a decision about a business that I own 984 00:50:20.480 --> 00:50:21.200 That's okay 985 00:50:21.200 --> 00:50:22.800 Simon Sinek is a great piece on this 986 00:50:22.800 --> 00:50:26.800 But when I learned the difference between infinite and finite games it really changed my perspective 987 00:50:26.960 --> 00:50:31.600 The infinite frame will always be the finite frame and there are finite games within every infinite game 988 00:50:31.600 --> 00:50:36.880 And so you have quarters you have years you have goals these are all finite games that we play in an infinite game 989 00:50:36.960 --> 00:50:40.960 And so when the US invaded Vietnam we lost 990 00:50:41.520 --> 00:50:47.200 Why did we lose we lost a war of attrition which was that they were willing to play the game longer than we were 991 00:50:47.680 --> 00:50:51.360 All right, and so the difference in a finite infinite game is that a finite game has 992 00:50:51.920 --> 00:50:54.880 known players agree upon roles and an outcome 993 00:50:55.840 --> 00:51:00.320 And an end that's why it's finite an infinite game has known and unknown players 994 00:51:00.560 --> 00:51:04.000 Has no agreed upon roles and the point of the game is to keep the game going 995 00:51:04.480 --> 00:51:09.040 And so the problem that most entrepreneurs have is they approach an infinite game with a finite frame 996 00:51:09.440 --> 00:51:14.000 They are the United States trying to invade Vietnam and you will lose every time 997 00:51:14.640 --> 00:51:16.720 Because there will be players who are playing with an infinite frame 998 00:51:16.960 --> 00:51:19.920 And so let me give you two more examples of this if you want to get healthy 999 00:51:20.400 --> 00:51:24.400 Right you don't win at health there's no end goal to being how you're like okay 1000 00:51:24.800 --> 00:51:29.520 I'm done working out. I did it. I've achieved it right of course not right same thing with marriage 1001 00:51:29.840 --> 00:51:31.360 Right like you're not the point is into 1002 00:51:32.160 --> 00:51:37.120 Get married the point is to stay married the point is to stay in the game to keep the game going 1003 00:51:37.200 --> 00:51:40.720 Most of the games worth playing are infinite games not finite games 1004 00:51:40.800 --> 00:51:42.400 Which means the point is to just play 1005 00:51:43.120 --> 00:51:48.640 And so business you don't win the point isn't to finish because even if you were trying to say finish first 1006 00:51:48.640 --> 00:51:51.360 It's like by what metric on what time period 1007 00:51:52.080 --> 00:51:54.720 Has there anyone who's been the richest man in the world for all time 1008 00:51:57.120 --> 00:51:58.320 No of course not 1009 00:51:59.200 --> 00:52:02.880 Which means that anybody who would try to do that is coming from a finite frame 1010 00:52:03.040 --> 00:52:07.440 And so but there have been people who've won the game of business in my perspective because they played their whole lives 1011 00:52:08.160 --> 00:52:14.240 If you want to be a stronger player and be somebody who can succeed as an entrepreneur 1012 00:52:14.400 --> 00:52:19.200 Then the day you start playing is the day you win and the day you stop playing is the day you lose 1013 00:52:20.800 --> 00:52:24.640 And so the goal is to find games that you don't want to quit 1014 00:52:24.880 --> 00:52:27.040 That's where learning what you are into 1015 00:52:27.840 --> 00:52:31.040 From executing is the the mega win here 1016 00:52:31.440 --> 00:52:34.560 So for me I found out that I actually liked business more than I liked fitness 1017 00:52:34.560 --> 00:52:37.200 Which is crazy because I love fitness getting into fitness 1018 00:52:37.440 --> 00:52:40.640 But like the day I started my gym was the day my love for business 1019 00:52:40.640 --> 00:52:43.840 Outpace my love for fitness. I was like this is amazing. This is so cool 1020 00:52:44.480 --> 00:52:50.800 And so you have to find whatever that thing is and I'm be clear like business sucks all the time 1021 00:52:51.280 --> 00:52:54.720 But it's just that if you're willing to play and like there's plenty of times merit sucks 1022 00:52:54.720 --> 00:52:56.320 There's plenty of time you don't want to work out 1023 00:52:56.320 --> 00:52:59.760 But it doesn't mean that I'm gonna stop working out. It doesn't mean I'm gonna stop being married 1024 00:52:59.760 --> 00:53:01.600 It's mean I'm gonna stop being in business 1025 00:53:01.600 --> 00:53:05.120 And so I think if you can unlock that frame that you want to play until the day you die 1026 00:53:06.080 --> 00:53:09.840 Even if the vehicle changes even the players that you're playing with on the court change 1027 00:53:11.360 --> 00:53:13.120 Then you'll be the guy who stays on the court the longest 1028 00:53:13.680 --> 00:53:17.920 You might think oh, I don't like video editing or oh, I don't like you know dry cleaning right? 1029 00:53:17.920 --> 00:53:20.480 I don't like mowing lawns. I don't like washing cars or whatever it is right 1030 00:53:20.880 --> 00:53:24.480 But the higher up you get in business the more all businesses are the same 1031 00:53:24.960 --> 00:53:27.040 Right, you're gonna have marketing you're gonna have sales 1032 00:53:27.120 --> 00:53:30.000 You're gonna have product you're gonna have customer success or customer support 1033 00:53:30.080 --> 00:53:34.160 You're gonna have it you're gonna have finance you're gonna legal like all these departments are gonna 1034 00:53:34.320 --> 00:53:36.320 These functions were more or less existing every business 1035 00:53:37.200 --> 00:53:38.480 and so 1036 00:53:38.480 --> 00:53:44.560 My advice is like a lot of people quit industries when they really actually just quit a function of a job 1037 00:53:45.280 --> 00:53:48.320 And so like they're like oh entertainment wasn't for me. It's like do you know many jobs? 1038 00:53:48.320 --> 00:53:53.520 There are an entertainment like you might love sales and like sales in entertainment and you were in 1039 00:53:54.320 --> 00:53:58.320 Enter the actual like product side right or the production side or the support side 1040 00:53:58.720 --> 00:54:02.080 And so again, remember I said earlier that like if you stay in the same game longer 1041 00:54:02.080 --> 00:54:04.400 You'll be likely to get more reps in and you'll do better 1042 00:54:04.880 --> 00:54:10.160 Well, then maybe stay in the same industry, but switch roles now in a micro business like your side hustle 1043 00:54:10.160 --> 00:54:13.120 You'll get to taste all the roles and you'll find out the things that you like more 1044 00:54:13.680 --> 00:54:16.160 And that's where you can shift some of your attention there 1045 00:54:16.160 --> 00:54:21.440 And then you backfill people who are because you have a little bit of context good enough to do what you do better 1046 00:54:21.440 --> 00:54:26.160 You demonstrate sorry you document you demonstrate you duplicate they duplicate and then they run with it, right? 1047 00:54:27.040 --> 00:54:28.400 and so 1048 00:54:28.480 --> 00:54:30.480 Today for example my 1049 00:54:30.880 --> 00:54:33.440 What I do looks very different than when I did 10 years ago 1050 00:54:33.840 --> 00:54:37.040 But I like what I did 10 years ago is the highest value skill I had then which was just closing 1051 00:54:37.360 --> 00:54:40.480 Like it's all I did I consults all day because I got trainers to train for me 1052 00:54:40.800 --> 00:54:45.280 I knew how to run the ads and that didn't take me that long took me two three hours a week to run the ads make make them and 1053 00:54:45.680 --> 00:54:52.080 Manage them the rest of my time was sitting in appointments and closing and I had somebody else make the phone calls and text for me 1054 00:54:52.080 --> 00:54:55.760 So I would just sit there and close because that was the highest value thing I could do at the time 1055 00:54:56.080 --> 00:55:01.680 But the thing is is that your baseline skill will continue to level up if I lost everything then like if I lost everything 1056 00:55:02.080 --> 00:55:04.560 I knew that I would sell cars during the day and I would strip at night 1057 00:55:05.040 --> 00:55:07.360 Right once I had that skill before I had the skill of sales 1058 00:55:07.360 --> 00:55:10.560 I would drive Uber during the day at strip at night because I had the skill been in shape, right? 1059 00:55:10.960 --> 00:55:17.280 And so your baseline continues to grow like being the best car sales me make 400 500 maybe even a million here at some of the best dealerships 1060 00:55:17.280 --> 00:55:22.000 Like if you're an absolute savage and I would consider myself an absolute savage if I was going to do that right if I lost it all 1061 00:55:22.080 --> 00:55:23.920 I'd be there 12 hours a day for sure 1062 00:55:24.560 --> 00:55:29.680 And then once I learned how to market marketing and sales together my new minimum was a million bucks here 1063 00:55:29.680 --> 00:55:33.600 Because I knew that I could sit in front of any brick and mortar business and I could get them leads and I could close 1064 00:55:33.840 --> 00:55:38.480 Once you have that you can make a million two million three million like I can't go below that because I have skills that are above that 1065 00:55:38.960 --> 00:55:46.080 Right you keep learning these skills as you keep doing your business and you might you'll start ping ponging in different directions 1066 00:55:46.240 --> 00:55:48.240 Until you hone in on the things that you're best at 1067 00:55:48.320 --> 00:55:52.320 And so I think if you can find that game make it the meta skill of continuing to learn 1068 00:55:53.120 --> 00:55:56.560 Then you won't stop and then at that point it means you win by default 1069 00:55:57.120 --> 00:56:01.040 So we had talked about a lot of stuff right but the question is like what's the next thing you're gonna do 1070 00:56:01.360 --> 00:56:06.000 And so I'm just gonna give you advice that I followed which is like what was the first thing I did to get myself out of this 1071 00:56:06.400 --> 00:56:10.000 Million dollar or below a million dollar category to the above million dollar category 1072 00:56:10.000 --> 00:56:14.480 And then to eventually the point four percent ten million dollar category and it was actually just learning how to sell 1073 00:56:14.960 --> 00:56:20.160 Because if you can't sell anything you can't make money. It's the first part of the equation number of sales times 1074 00:56:20.400 --> 00:56:23.920 If you have no sales, doesn't matter how good the life's of values if no one buys it zero