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One in every 250 businesses does over 10 million dollars a year in sales and that means that 99% of

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entrepreneurs never hit it. Every business that I started since I was 25 has crossed 10 million

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B2B services with Jim Lons B2C consumer products with prestige labs or supplement company Allen

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are B2B software in acquisition.com which is an investment firm for all of the money that we

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made during those businesses to invest in other ones. It's really confident that I can talk to

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you the points of helping you go from zero to a million million to 10 million and beyond. And so

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this is just a visual put this in context. 90% of businesses never hit a million dollars a year

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in sales. 90% doesn't look that way on Instagram but this is the this is the vast majority of businesses

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right. Now 9% of businesses cross this million dollar threshold right and then only 0.4% which is

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1 in 250 due 10 million plus. It's so rare. And so the nice thing is that success does leave

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clues. I want to kind of separate this into two major categories. One is the entrepreneur and the

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other is the opportunity vehicle they're pursuing. You'll notice I said leverage rather than opportunity

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vehicle but fundamentally leverages the difference in what you put in and what you get out. And so

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you want to have the best entrepreneur getting the most out of what they put in. And so if you have

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those two things together then you create a 10 million dollar plus business. And if you've

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consumed any of my other content I used to talk about how entrepreneurs there's three main things.

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You've got skills you've got character traits you've got beliefs. I've thought about this more and

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I've actually simplified it to one degree which is I think you just have skills and beliefs.

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Character traits if you think about this you're like I want to become patient. Patient is just a

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general term for lots of little skills. And so if you want to become more patient you want to do

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things that patient people do. And that means that if I can train someone to become more patient

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then patience is a skill. And so as a total side quest on this what's interesting about this is

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that you've probably heard people say soft skills and like hard skills. In my opinion hard skills

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are just skills that are easy to measure. Soft skills are just hard to measure but they're both

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100% skills that you can train and improve. And so if we say man I wish that guy had better

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people skills. What we mean is 100 micro skills that are like I wish he would smile when someone

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walked in the room. Can I train someone to do that? Absolutely. If I said hey I wish he would greet

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someone by their first name immediately every time they walk in the door. Right? Boom that's

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trainable. I wish someone wouldn't interrupt. It's like okay well we can just give someone a cookie

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every time they don't interrupt someone and let someone finish their statement. And then we train

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them. And so all of these soft skills are just soft because they're hard to measure.

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Doesn't mean that they're not skills or they're not important. And oftentimes most of us know that

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like within an organization like the way that you gain influence is the soft skills that are hard

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to measure but incredibly important. So if we're talking about how do we make the highest leverage

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entrepreneur. We want somebody who has lots and lots of skills and really it's about beliefs that

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don't limit them. If someone had no limits in terms of what they believe they could achieve

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then the only thing that would limit them was their skills. But most of the times the beliefs that

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we have are things that just decrease our potential. And it's not really our fault because most of the

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people that were around us we grew up just by statistics were poorer than you might want to be.

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And so they told you how they see the world. If there's ever something that's gonna be on my

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tombstone it's this quote which is we question all of our beliefs except for those that we truly

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believe and those we never think to question. And so like the things that you actually believe

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they're so invisible to you because that's just your lens through which you see the world. Whereas

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when you're like I wanted to bake this point it's like you don't really believe that you just

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have an opinion on it or you have some assumptions that you're willing to back right but the true

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beliefs of like well no one would be willing to pay for something like that or like that doesn't

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exist. I didn't know that was possible. You don't even question those things because they weren't

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even in your mind to begin with. It's the unknown unknowns that are the things that limit us. The

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question is how do we up level someone's beliefs. So let me give you a quick example here. So there

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was an entrepreneur that I know who had a fitness app. He was a super high level across fit games

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competitor and he started this app and he didn't want to tell anybody about it because he'd never

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placed top three. He placed fourth place in multiple competitions which is insane. But he had a

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belief that if he wasn't the winner he didn't deserve to have an app. Like think about how crazy

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it is but he didn't question that. That was just what he believed reality to be. He's like well of

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course. Of course I wouldn't want it. And so he built this app for himself and just the members

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of his gym but the app was so good that people started sharing it and finally a client of his was

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a marketer and said you need to start marketing this. You need to start posting about it and he

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wouldn't post and finally she convinced him to just make one post and he like doubled his revenue.

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He had gone from like 20,000 a month to 100,000 dollars a month with his app simply because

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he changed his beliefs. And so like fundamentally he had all the skills. He was already a really

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good CrossFit Games competitor. He already had the product that was really good and he already

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had the skills to be able to market it. He was just choosing not to. Unchaining an entrepreneur

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is figuring out the reasons they give for why they can't do something. Those are known

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limits, right? Well I can't do it because of X. That's the things that you know because you

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

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

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there's only one platform. I can't do it because insert whatever, right? Now the dangerous ones

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are the unknown unknowns. That's an end. My whole goal when I started my chain of gyms

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was that I wanted to be America's next gyms. I bought the trademark United Fitness. I was really

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proud of it. I had six locations. I joined this group of internet entrepreneurs. Now mind you,

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this reason I think this is funny is because I was sold by the sales guy that there was other

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gym owners in the room and they were all doing well and doing stuff on the internet too. God in

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the room, not only were there no gym owners, there weren't even any brick and mortar business owners

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in the room. And so I was like, wow, this is a shock. And so everybody's going up there explaining

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their ads and their funnels and their up sell prices and all this stuff. And I get up there and

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I'm like, I own six gyms. And I was like, but these are the ads I run to get members into my gyms.

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The thing is I gave this whole breakdown of everything I did and how I opened every location at full

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capacity on the first day without taking cash out of the pocket, all the stuff. And I remember

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the guy who was running the whole group. And I really looked up to this guy at that time because

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he was the first person who was way more successful than me that I actually had access to. And so I

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think at that point he was doing a million dollars a month. And I remember thinking like, whoa,

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like. And so I go through this whole presentation. I'm talking as fast as I can, explaining all the

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stuff that I do. And he stops and he's like, Alex, I don't think you should be in the gym business.

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And I remember hearing that it was like time slowed down because I felt like you like punched me in

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the gut because this was like my whole plan, my whole dream. This is what I was going towards.

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But I like paused and just like hurt him out and said, you have a level 10 skill set and a level

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two opportunity. I don't think you should be running gyms. I think you should be teaching people

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how to do what you just walk through. And I had to believe and I still do that. If someone's

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further along in the game of business, you always have things that you can learn from them. And if I

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paid to be in this room, if I don't take the advice, it's the closest thing to me burning all the

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money that I paid to be here. And so when he told me that to me, that was an unknown unknown.

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I didn't know that there was another opportunity vehicle outside of me just owning gyms. Like I didn't

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know it was possible. So I hadn't thought like, I didn't know how franchise this worked. I didn't

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know how licensing worked. I didn't know how, how any of, I didn't know how to be to be national,

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any of that stuff worked. Now there were sub skills that I would have to learn in order to enable it.

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But I couldn't even start on that skill path or see the deficiency of skills that I had because

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I didn't even think I could pursue it. And so these are the ones that in my opinion are the most

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powerful to overcome. It's the things that you didn't know were possible. I'll give you a different

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example. In Chain of Ferrys, which is one of our portfolio companies, amazing business, super

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successful single location. And the founder had an agency when he approached me saying like, hey,

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I want to do what you did with gym launch, but with photographer studios. And so we talked and we

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talked and we talked and his model was so good. I was like, I don't know, man. I think like one of

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the things that I didn't have with gym launches, they're like, I couldn't control delivery with

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photography. You can control delivery. And so that means that we could actually centralize

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a lot of stuff. I was like, what if we just owned all of them with like a hybrid model? We actually

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took the agency from what it was doing, which for most people watching this would be a very good

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business for you to zero to start this next thing. We had such good rapport that he's like, if you

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really think so and we walk through the math, he's like, I mean, this makes sense, but like I'm

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going to kill something that makes a lot of money. It's like, yeah, but I think it's going to be

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for something that's going to make way more. And then for the next six months, we worked and tweaked

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the original model to get this new model off the ground. And 30 months later, that business

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has two and a half million a month with 30 plus locations because I said, let's just own it all.

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He didn't think that that was a model that was really available. And then as soon as we made that

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switch, everything took off. Even in my own personal story, when I switched from having my gyms

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to doing a done for you fly around the country model, that took the same skills that I had as an

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entrepreneur and put them in a better vehicle. And then even from doing the gym turner business

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for two years, I accidentally fell into the licensing model because I didn't want to fly out.

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Somebody asked me if I could show them all the stuff that I did so they could do it for themselves.

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And then at that point, he bought it and it was all margin and I was like, holy cow, this is insane.

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That's when everything took off like a rocket. And so I had my brick and mortar gyms

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and then I scaled to a done for you turn around business and then I scaled to licensing

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and each of those were higher leverage opportunities. And it was because I didn't know as possible.

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And so once I learned that it was possible, that unlocked all of the potential value that my skills

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could have because fundamentally in every one of those examples, I knew how to do the same stuff.

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I knew how to market and sell for a local gym. I knew how to build them more profitably,

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create the workouts, the meal plans, all that kind of stuff that got people results.

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That's what I knew how to do. But at each level, when I went from gyms to turnarounds,

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the leverage increased from each of these things. And so the same skill set put into a new bucket

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or a new vehicle unlocked huge value. And that's why a lot of entrepreneurs don't get past a

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million or even get to 10 million that they're in the wrong vehicle. So I talk about leverage a lot

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and it's actually one of the core concepts in our logo. So we have a supply demand curve and then we

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have a full chrome, which is the acquisition.com logo. And it's because it's core to everything we do.

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If you think about leverage, you've ever heard Archimedes, he said, give me a long enough lever

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and I can move the world. This is our lever and we'll put our little hand here. That's my arm.

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If we grab the lever here, we have the most leverage on something that is here.

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If we grab the lever here, we still have the most leverage on something here, but we have less leverage

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overall compared to how much we have on this side. And the main difference here is how much force

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goes up the other side. All right. And so leverage is the difference between what you put in

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and what you get out. That's it. So let me give you an example in the real world.

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If you are really skilled at cold calling, skill itself is leverage because if somebody who doesn't

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have the skill makes a hundred phone calls, that's their input. And somebody who does have the skill

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puts a hundred calls down. And the guy who has doesn't have the skill gets zero appointments set.

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And the guy who's amazing at it gets 10 appointments set. He has, well, let's just say the first guy

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had one for sake of math. He has 10 times the leverage on that skill compared to the newbie.

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Getting and acquiring skills gives you more leverage because it gets you more for what you put in.

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And so if you're more skilled entrepreneur, being a skilled entrepreneur is a big bucket for

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hundreds of smaller skills underneath of it because it means that you know how to prioritize what

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to do next. And so one of my favorite quotes about leverage comes from Warren Buffett, Uncle Warren.

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He and one of his closest friends graduated Columbia Business School at the same time. Same year,

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and he said that guy was smarter and harder working than him. Now they then went their

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separate ways. Warren ended up getting into investing with Ben Graham and his friend goes into

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the steel business because that was back in the day when like American steel was like a thing,

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which it really no longer is. What he learned from that experience is that he fast-forwarded 30,

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40, 50 years. And he said his friend, you know, did okay. And he said, mind you, this is a guy who

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was smarter and harder working than him. He said he did okay. He did pretty well, but not close to

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what Warren did. And he said his biggest lesson from that was it's not about how hard you

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row. It's about what bow you're in. And I love that because it really encompasses the concept of

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leverage, which is Warren got more out for what he put in than his buddy in the steel business,

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because the steel business had a lot of headwinds. A lot of things going against them. They had

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globalization that started starting happening. You know, other imported steel that was cheaper from

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China, blah, blah. And so those forces, he had to row harder against the wind than Warren did,

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while riding one of the best growth curves of the U.S. economy overall. And so he got higher

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returns. And so over my career, I make more now than I did before because I've moved further

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back along this lever. So I have more leverage now on what I put in than what I did before.

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When I was selling one-on-one in person and I was doing 20 consults a day, I was working more

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hours probably than I do now. But I get so much more for what I put in. So I'm going to show you two

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triangles that show increasing amounts of leverage. All right. Now one of these I have stolen

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ruthlessly from the Volrovicon. All right. And so he talks about the four types of leverage. I've

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renamed them so they're seized and it's mostly just so I remember them more easily. But you've got

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collaboration, which just means other people working for you. All right. Then you've got

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capital, which means other people work for you and give you the fruit of their work so that you

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can invest it on their behalf. So for example, if I get people to give me a billion dollars,

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which I could do, just raise the money. And then I invest that money. And I say, I get 20% of the

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gain. I didn't have to work all the time to make a billion dollars, but I still get 20% of it.

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Right. That's the idea of using leverage of other people's money. So capital. So you've got

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collaboration, capital. You've got code and content. If I'm a genius coder and I could build one

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piece of software, I can build it once and a million people can use that same piece of software.

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With content, Joe Rogan can make one podcast episode and millions of people can listen to it.

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And so he gets more for what he puts in. Right. So if you think about each of these things,

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it's like you have the influence on someone else. I trade me selling for 40 hours a week to

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me managing a salesman for two hours, who then sells for for 40 hours a week or higher leverage.

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I spend a week or two weeks recruiting the best sales recruiter. And then I do that one time

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in my life for two weeks. And then that sales recruiter works 40 hours a week to get new sales

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people in every single week on my behalf. And then those sales people on my behalf then sell every

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single day. And so I did two weeks of work for a hundred sales people over the lifetime of that one

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higher. More leverage. I get more for what I put in. Compare that to me taking 20 consults today.

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Higher leverage skill, but same concept done at scale. Capital, we went over code content.

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Those are the four types of leverage. Now, this is where this gets interesting because like,

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once I learned this, I was able to put words to what I kind of knew intrinsically. And I can now explain

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it. So if you look at my career trajectory, see if I can draw a triangle here. All right. And one

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of the key points here is that you can actually just max out one of these things. So you don't need to

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have all four. Now, if you have all four cool, but if you think about what leverage is in general,

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it's just you get more for what you put in. And so if you get a thousand X on any of these,

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still a thousand X. So somebody can just be an amazing private equity guy or amazing at raising

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money and become a billionaire. They don't need to do any of these other things, right? So we can be

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amazing at galvanizing people and creating movements. And they wouldn't need any of these other things.

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If someone's amazing at writing software, they don't need anyone else's capital. And the software

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does the collaboration on their rehab, right? And so all of these things like even though they're

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structured like this, you don't have to have all of them. If you do have all of them, well, you look

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at Facebook that is code about content. You raise other people's money and you ask people

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working for it. But let me show you how this changed for me. So in the beginning, it was dark.

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I was an employee, right? And I made four figures a month. Then I became self-employed. I gained a

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little bit of leverage just over my own time. So I went from having someone else control my time

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to me controlling my time, which was leverage. All right. I got more for what I put it. And now it's

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a five figures a month. All right. Then I went to employing other people, right? Which is then I would

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say the first level is me now having the first level of leverage. So it's a six figures a month.

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All right. And this is right as I, I would say first when I started my gyms, then I had multiple gyms.

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And then when I transitioned that to turn around, I still stayed at six figures a month. But

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fundamentally it's because I actually didn't change leverage. I changed how I was structuring it,

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but fundamentally like it was people doing the same work. So this was both me being a gym

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owner with six locations and me doing the turnaround business with other people. You're like,

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how do you go from six figures a month to seven figures a month? Then we started licensing.

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Now what is that? I made content fundamentally and then I made it once and then many people could

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have access to it. And so when I did that, I went to seven figures a month. Now the question is,

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how do I get from seven figures a month to eight figures a month? Because that's what we have at

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acquisition.com. What did I add into it? Capital. So now we buy into companies that have other people

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working for them. I use content to attract those businesses. Now I don't have any code right now.

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I have one software investment, maybe two I think that are major investments. But the rest of my

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stuff really if we're talking about it is that I made content. I had capital from the things that

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I had done before and we have the ability to get other people to help us get our get to our goals.

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And so this is acquisition.com. And that's eight figures a month. Now will I need to do to get to

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nine figures a month? I may just need to add time to the existing thing that I'm doing. Key point

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is that leverage is about getting more for what you put in. People who move faster in life don't

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actually move faster. They get more for their inputs. They get more for every step. I'm not like

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frenetically moving to move faster. You just get more out of every move. And so that means that if

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you're getting more out of every move, it's a function of time. And so if I had, for example,

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maybe some code that was implemented within everything that I do at acquisition.com, I might be able

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to get to nine figures a month faster than I currently am. But I feel confident with these three

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that we will get to nine figures a month eventually. And so you might say, Alex, that might be

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a limiting belief. It might be. But that's that's kind of how I'm choosing to play it. And so

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and let me let me like reverse the clock here. If I had just kept my gyms from the time I started my

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gyms until now, I might have a hundred locations. And I might also already be doing nine figure,

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not nine figure. I probably be doing eight figures a month from the gyms. And so you're like,

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well, wait a second. So was it the best move? I can't go back and replay time. I don't know.

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But that's where to me, this is why the game gets interesting is that every time you switch vehicles,

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you start at zero again. So the pace that the leverage affords you for each step you take has to be

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disproportionate because you're four of a business. You'll typically grow more than year one of a new

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business. And so that's where doing the same thing for a longer and longer period of time. You

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still get more leverage. The guy who owns Panda Express opened 600 new locations this year because

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he he has done this because now he has enough capital. He has enough collaboration that he's maxed.

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No, he doesn't do any content and he doesn't have any code, right? But he has these two. It's such a

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high degree that when he adds 600 locations and each location does $3 million a year, right?

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It might even be. I don't know. It's a lot. And just to give you context, Panda Express in 2021 to

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$3.7 billion in top line sales. And he owns 100% of it. No outside investors with his wife, Peggy.

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And they took home 27% net margins on brick and mortar food. All right. So let's do the math. That's

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935 million in income. Like that was his distributions from owning this thing. Now if you're like,

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wait, but did he pay taxes on it? Sure, didn't. Why? Because he owns all the land and the dirt for

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most of the locations that he had that are free standing. So he depreciated all of that against his

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income. So you took all of that tax free. So point being, he did this and you're like, well, how did

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you do it? He's been making chicken and orange chicken and kung-pow chicken for 45 years. So even

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though he might not have been in the highest leverage vehicle, he was able to stick with that vehicle

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for 45 years. And being able to stick with something for 45 years makes it really hard to suck.

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And when you do that, you start unlocking multipliers on the leverage you have, rather than thinking,

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I need more leverage in terms of more types of leverage. Maybe you just need more of the one

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that you've been using since you started with. Remember, I gave the little phone call example of

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like two people doing the same thing. One person has more leverage. Well, each of these things are

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big buckets with many smaller skills underneath of it. So collaboration is I have to know how to

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recruit talent. I have to know how to recognize talent. I have to know how to onboard. I have to know

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how to train. I have to know how to manage. I have to know how to grow talent. And I have to know

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how to run meetings. And I have to know how to have one on ones. And I have to, like you're

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saying here, like all of those micro skills chunk up to collaboration. For capital, it's like you

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have to be good at math. Being bad at math is probably not like it'd be tough to raise capital if

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you really can't do math, right? It's like, okay, well, that's a skill you need to know. Well,

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what else do you need to know? It's like, well, you need to be able to reach out to people and get

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rejected. Why? Because when you try and raise capital, you get rejected a lot more times than you

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get checks, right? From there, it's like you also probably have to have an understanding of legal

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because you have to learn how to set up a fun structure. You also have to know how to negotiate

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because every single person writes you check is going to want different terms. You then have to

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structure it in a way and negotiate so that you can get mutually beneficial terms for both parties.

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So these are all other skills that go into raising capital, right? Making content, it's like you

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have to understand the different platforms. You have to understand how to sell stories. You have to

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understand how to have, I mean, an even understanding here is just like you might even have to just

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do the work to have credibility to make the content about whatever you're making it on. And you

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know what? I'm going to sidequist this real quick. A lot of people make content right now and they're

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trying to hit it big. But what they do is like in my opinion, you've got entertainers and you've got

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educators. The thing is, is that a lot of people who haven't done shit or trying to educate on things

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they haven't done. And so they have no credibility. And so the thing is, is that like the reason

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Mr. Beast was able to get so big is that when he was 15 years old, he wasn't teaching people about

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business. He was being funny and being cool. People are like, oh, I want to be like him. And so

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then they say, oh, I'm going to educate people on house flipping, but they're 22 years old,

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and they haven't flipped them any houses. And so they have no credibility in their content. And so

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in my opinion, when you're doing this content thing, if you're going to do it, then make sure that

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you have the backing of experience and proof because then I promise you, like when you get shit on

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from the public because you will, because they don't know who you are and most people are lying,

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you'll be able to know that what you're saying is true because you lived it. And so then you won't

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second guess yourself. The people who like tank and self-employed because they're like they can't

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handle the heat is because on some level, they believe it. So if you want to be an educator,

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then I think that the middle ground, the pre-education stage is the documentation stage where you just

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say, this is what I'm doing now. Check it out. Like right now, I can't educate really or not figure,

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not really. Excuse me, I can't educate on nine figures a month. Haven't been there. I know what

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eight figures a month is. Don't know how to get to nine figures a month. I have my theory, which is

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that I just have to add time to this equation. The math spells that out. But I just got to wait.

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Once I get there, then I can talk about how to build a billion dollar portfolio. And you can imagine

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how my content might change, right? And so if you're making six figures a year and trying to talk

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about how to make seven, you've never made seven, then you're full of shit and you rightfully should

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get the heat that you do, right? And so these are skills that you have to learn how to acquire

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to make content. And to make code, you have to learn how to go code. And this is how little I know

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about coding. This is it. So I would even give you examples of micro skills, but like you have to

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learn HTML and JavaScript and Ruby and Python. That's about it. That's all I know. And data

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architecture. And yep, that's it. That's all I got. It's so you have to learn these smaller skills

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to then say I'm very excellent at code so that I can then have more leverage on the things that I do.

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And then you can walk yourself up this income ladder with more leverage, right? And again,

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leverage is about speed. Any of these vehicles that I had done, if I had done it for 45 years,

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like Mr. Panda, you could get there because my end on input is so high. If I spend 45 years doing

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something, I might not have the strongest arm, but I've done it 45 times more. So I still get

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more out than the guy that's over here that does it two times. This is where strategy comes into play

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is making sure that you're picking the right vehicle. Chris, for example, made last money

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in the first nine months, scaling and chin at fairies than he did before. But at month 10,

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he matched it. At month 24, it was it was like so small in comparison that didn't even matter.

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But I can tell you this, really easy to say this, really hard to do that for nine months,

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each shit and feel like you're losing and always knowing that you could always go back. And that's

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the hard part. Go back to what you were doing before that was comfortable and made you X versus

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staying the path. And I can tell you it was, I mean, it's hard for me. I mean, my team does that,

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like going for making what I was making a gym watch to doing acquisition.com the first year,

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I was like, this sucks. Like I'm used to being able to run any personal expense with this business

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and not even blank. Like, oh, I actually have to look at cash flow. Right? And so like these are

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things that you have to like take in, but I do believe genuinely you're 10 of acquisition.com.

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I think is bigger than your 15 of gym launch to make the apples to apples comparison because the

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thing is that you actually never get an apples to apples comparisons. You can go back in time. And

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so you have to look at what your 10 of one businesses compared to your three of another. And so if

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you're at your sixth year, maybe you should just keep riding it out because whatever you started with

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is the thing that you have the longest lever on number of times that you got reps in. And people

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want to change industries and I'll give you a little tidbit from Y Combinator. One is they don't

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take solo founders as a side note. Now mind you, they're only interested in billion dollar

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companies. So if that's not you, then you could totally be a single founder, but it's just harder to

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be successful with one person's skills versus three. The second interesting thing that they have,

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they have many things they select for, but one of them is industry experience. And so if someone

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says, Hey, I want to get into this industry. If you don't have any experience in that industry,

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and then second to that is personal experience like you suffered from whatever problem you're trying

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to solve, then they're not interested. And so you might have six years of experience in the

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mortgage business. I wouldn't recommend getting into weight loss. I would say maybe you take a half

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pivot. So you're in the same industry because it's so hard to make up those six years. This hopefully

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gives you a more nuanced view to making the right picks to making the most money. By the way,

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if you guys liked the whiteboard of me drawing on with markers, this is a throwback to what I used to

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do. I finally got another board because I love these things. But if you like this style,

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like let me know, I love this style, but I just try and do the things that the data suggests that

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you like the most. I'll do what you guys want so that I can hopefully transfer the skills that I have

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to you faster. I said earlier that the unknown unknowns are the most expensive thing in business,

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right? Because you don't know what you don't know. And so I want to give you a quantifiable example.

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I remember the first time I heard this, it changed my life. And so it was actually a whiteboard

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just like this. So you get to like, I'm getting goosebumps. You'll have the same experience I did.

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So I was on stage and gave this whole presentation about learning skills and about how you have to

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invest in yourself to get better, right? And he called somebody in the audience and he said,

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ma'am, and as he's saying this, he's doing what I'm doing. He says, ma'am, how much money do you make

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right now per year? She stood up and she said $50,000 a year. And it's like, okay. So what would be

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the main reason that you wouldn't want to invest today, right? So he was closing. This is actually

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a close, but as a side note, I think the reason I like sales so much is because many of the

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obstacles overcomes that you learn to overcome are actually self bullshit. And so in a way like

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learning how to sell other people for me was learning how to sell myself. Because I have so much

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head trash of like, why I couldn't do things or why I shouldn't start now or why I had to think

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about or why I need a permission from someone else or why the universe was stacked against me to be

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successful. Like these are all things that I had to learn the arguments against to convince myself

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to do stuff. And so he asked the lady, he says, okay, so what would make you not want to invest in

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this? And she says, well, I don't have the money. And he said, well, you probably don't have the

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money because you've been paying a really expensive bill every single year. And she's like, what do you

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mean? And he's like, well, right now you've been paying $950,000 a year. Not knowing how to make a

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million dollars. He said, this is the cost of your ignorance. This is the debt that you carry

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for the rest of your life until you learn how to make a million dollars. And so the reason I'm so

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heavy on learning skills and becoming educated is that right now I'm paying down ignorance debt.

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I'm paying down $950 million a year, not knowing how to make a billion. It's debt, I'm paying

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well, like we all pay ignorance debt. And so the idea is how quickly cannot pay this down so that I

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can have more cash flow to continue to pay this down faster. Now strategy, like I said earlier,

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is about how you allocate limited resources against unlimited options. That's the fancy word of

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just saying prioritizing. All right. And so right now you have limited resources. You have time

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and you have money. Now you might have more time than money, but either way you have some

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limit on what you have. And so for you to move faster, you have to identify, prioritize the thing

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that you're going to allocate your time and money towards. And you want the thing that gets you

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the most for it. Remember the input output that we had over the leverage. So you want the thing

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that gives you the most leverage. Now one of the tough parts about reality is that the things

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that you have access to when you have fewer resources are less than the things that you have access

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to when you have more resources. Like Mr. Panda can go buy a building for a billion dollars and

372
00:30:51.360 --> 00:30:57.440
flip it for two billion dollars in a year or two and make a billion dollars because he has more

373
00:30:57.440 --> 00:31:03.040
resources than you do. And you can't do that, right? Not right now. But you do have things that

374
00:31:03.040 --> 00:31:08.080
could get you there, which is why Charlie Munger talks about how do whatever you can do, big bar of

375
00:31:08.080 --> 00:31:12.000
steel, eat ramen, walk with your lunchpale, both directions, do whatever you have to do to make

376
00:31:12.000 --> 00:31:15.680
your first 100,000. It's because he understands and mind you, him saying 100,000 is probably like a

377
00:31:15.680 --> 00:31:19.760
million dollars today because he knows that once you get that, you can actually get a little bit more

378
00:31:19.760 --> 00:31:24.400
leverage in terms you get way more for what you put in because you can't only put your time in

379
00:31:24.400 --> 00:31:32.160
because it's so limited in terms of how much you can do. All right. So this is why I talk about

380
00:31:32.160 --> 00:31:37.280
having investing in the SME 500 more than the SMP 500. So if you don't know this, it's standard

381
00:31:37.280 --> 00:31:42.320
and poor 500 companies on the stock exchange. It's probably like the gold standard index that we

382
00:31:42.320 --> 00:31:46.000
track how the US economy is doing. It's really just the stock market in general is doing. All right.

383
00:31:46.000 --> 00:31:51.280
And so if you dollar cost average in the SMP 500, you get 9 to 10% a year for for life,

384
00:31:51.280 --> 00:31:53.920
at least that's what it's done historically. All right. So the question is,

385
00:31:55.200 --> 00:32:00.000
rather than investing in this, we just have to say, can we do anything that gets us more than 10%

386
00:32:00.000 --> 00:32:06.480
back? Great. Now we can quantify this. And so if I have, let's say, a thousand dollars,

387
00:32:07.360 --> 00:32:12.880
right? And here's the magic of this is that when you invest a thousand dollars into the SMP,

388
00:32:12.880 --> 00:32:17.760
you have no, you have nothing else that you add to that thousand. Like you can't juice the

389
00:32:17.760 --> 00:32:22.000
thousand. You buy into the same valuation that every other investor buys in it. And so I'll tell

390
00:32:22.000 --> 00:32:25.040
you one of the magic. So I'm going to open up the curtain here for a second. One of the magical

391
00:32:25.040 --> 00:32:30.800
what we do at Acquisition.com is that we pair capital with know how. And so we can buy a company

392
00:32:31.440 --> 00:32:37.840
at a decent valuation and have a big margin of safety because of our skill set. So we know that we

393
00:32:37.840 --> 00:32:42.720
can triple or 10x the business when we invest in it. So we don't have to pick amazingly. Like

394
00:32:42.720 --> 00:32:47.120
Warren Buffett's a better picker always will be than I am, right? At picking businesses. But Warren

395
00:32:47.120 --> 00:32:50.800
Buffett doesn't work in the business, right? So that's the advantage. That's my advantage over

396
00:32:50.800 --> 00:32:55.200
Warren Buffett right now. Might do. He has way more advantages over me, right? Made 90 billion on

397
00:32:55.200 --> 00:33:00.640
his apple trade. But, but, but this is the game that I'm supposed to play right now because here's

398
00:33:00.640 --> 00:33:09.440
the leverage that I have on him. I have 60 more years of life than he does, right? He's 93. I'm 33.

399
00:33:09.680 --> 00:33:15.200
So I have a lot more of these left on my on my moveset, okay? Now, we have our $1,000.

400
00:33:15.920 --> 00:33:22.080
We get 10% meaning at the end of the year we're at $1,100. Dollars roughly, okay? Or let's say

401
00:33:22.640 --> 00:33:27.280
you buy a sales training course. They teach you how to sell and you get implementation from that

402
00:33:27.280 --> 00:33:32.080
where they review some of your calls so that you can improve and all of a sudden you take your income

403
00:33:32.080 --> 00:33:39.520
from 40,000 a year to 220,000 a year. Okay, what does that mean? That means that that thousand

404
00:33:39.520 --> 00:33:45.920
think about this return, all right? In scenario one, you have $1,100. In scenario two and here's

405
00:33:45.920 --> 00:33:54.640
the crazy part. You have an extra 180,000, all right? So compare this to that. But here's the crazy

406
00:33:55.440 --> 00:34:02.800
part. This is every year. Because once you have the skill, you only get better from there.

407
00:34:02.800 --> 00:34:07.520
And so one of the things my dad used to tell me that when I was growing up was that he was always

408
00:34:07.520 --> 00:34:11.040
really big on education because he came here at $1,000. Didn't speak the language and he learned

409
00:34:11.040 --> 00:34:14.640
English. Like that was a skill he didn't have. Like we take so many skills for granted. Like the man

410
00:34:14.640 --> 00:34:18.960
didn't he couldn't even speak the language of the country, right? In a thousand bucks and he was

411
00:34:18.960 --> 00:34:24.720
able to take his medical school education and apply it here in the U.S. because he fled during

412
00:34:24.720 --> 00:34:30.320
the revolution in Iran and he said the one thing that no government can take from you and no wife

413
00:34:30.320 --> 00:34:38.080
can steal from you in a divorce and you can't get sued out of is your education. They can't take

414
00:34:38.080 --> 00:34:43.920
it from you and he had relatives who actually really well off who actually owned the lottery in

415
00:34:43.920 --> 00:34:48.400
Iran. So you get it was a private company so they made a lot of money. But they were like second

416
00:34:48.400 --> 00:34:52.080
third generation and they hadn't learned the skills and so when they fled during the revolution,

417
00:34:52.800 --> 00:34:57.120
they could only take what they could carry because all of their assets got seized by the government.

418
00:34:57.920 --> 00:35:01.840
And they never were able to go back to what they had because they didn't have the skills

419
00:35:02.560 --> 00:35:07.040
because the government could take their assets but they didn't have the education, right?

420
00:35:07.040 --> 00:35:12.240
And the guys who were who were businessmen from Iran straight to LA became businessmen in LA

421
00:35:12.240 --> 00:35:17.920
and crushed it there too because they understood the game, right? And so this is why like if you think

422
00:35:17.920 --> 00:35:23.040
about it from actually an investment perspective like education can't go down, it can't be taxed,

423
00:35:23.040 --> 00:35:28.640
it can't be taken from you and only gets better over time, right? And it compounds unto itself

424
00:35:28.640 --> 00:35:32.880
because when you learn the next skill, so let's say this is this is what the lift we got from

425
00:35:32.880 --> 00:35:38.640
from sales then you learn lead gen and then all of a sudden this because then you five x the

426
00:35:38.640 --> 00:35:47.120
demand on your sales skills and you just pay down your ignorance death with two investments

427
00:35:47.680 --> 00:35:55.440
and so like is that worth it more than putting the money in the S&P in my opinion every fucking time

428
00:35:56.320 --> 00:36:00.560
is going for 40 to 220 realistic if you're a killer in your part of Mosination,

429
00:36:00.560 --> 00:36:04.720
apps of fucking Lulee if you do it the way we tell you to do it which is you look at the top guy

430
00:36:04.800 --> 00:36:08.800
on whatever company whatever team and you do twice what they do because you know why because

431
00:36:08.800 --> 00:36:11.680
they're going to be better than you and so you've got to make up with you got to make it up in

432
00:36:11.680 --> 00:36:15.440
inputs it's like bed Alex does that mean I'm going to have to work harder in longer hours you bet

433
00:36:19.280 --> 00:36:24.560
welcome to the world like because think about it if you work the same hours as that guy that guy

434
00:36:24.560 --> 00:36:28.400
always has the advantage because he's already better than you and so if he puts a month in and you

435
00:36:28.400 --> 00:36:31.920
put a month and he's going to get further ahead than you because he already has skills through which

436
00:36:32.320 --> 00:36:36.720
to judge his own performance and improve and so you have to put way more inputs in to get the

437
00:36:36.720 --> 00:36:41.680
same output than that guy and so that's why Kobe spent five summers doing two days when everyone

438
00:36:41.680 --> 00:36:45.600
else was doing one a day because he knew he had to make up for the guys who were way better than

439
00:36:45.600 --> 00:36:50.880
him naturally and so like I would like to think of everybody in Mosination as many black mombas

440
00:36:50.880 --> 00:36:54.640
from that perspective is that we're willing to put in twice the work three times the work four

441
00:36:54.640 --> 00:37:00.640
times the work despite the natural talent deficiencies to make up for it because on a five year

442
00:37:00.640 --> 00:37:04.880
or 10 year or 25 year timeline to become unbeatable do I think you can get to 220

443
00:37:06.000 --> 00:37:10.720
hell yeah but if you were to just look at average which I don't want you to be but if you were to

444
00:37:10.720 --> 00:37:16.160
look at average you might make a hundred a year or 128 year it would still trip away you were making

445
00:37:16.160 --> 00:37:22.800
before and if you don't adjust your living from what you're making at 40 Mr. Smart Cookie then now you

446
00:37:22.800 --> 00:37:32.320
have even at 120 this was 120 you have 80k year extra that you can then invest in more skills

447
00:37:32.320 --> 00:37:37.040
to pay down your ignorance debt a key point here as I said that there was an advantage that I have

448
00:37:37.040 --> 00:37:44.480
a warm buffet which is I got money and time slash effort right if you go spend the money

449
00:37:45.200 --> 00:37:50.720
but you don't put this in then you lose your advantage and so it's not just about spending

450
00:37:50.720 --> 00:37:55.760
the money because here's an interesting fact to it for you when you sell someone you understand

451
00:37:55.760 --> 00:38:00.480
that the moment someone buys they actually feel like they solve the problem emotionally and so you

452
00:38:00.480 --> 00:38:05.520
can sell that because you learn how to sell but the reality is that that just gives them the

453
00:38:05.520 --> 00:38:10.400
license to begin solving the problem of whatever it is especially if it's a skill or it's education

454
00:38:10.400 --> 00:38:14.320
based and here's my ask for you guys one of the beliefs that I think has served me well is that whenever

455
00:38:14.320 --> 00:38:19.520
I joined a group or I joined a community or I free or paid or otherwise I always wanted to become

456
00:38:19.520 --> 00:38:23.520
number one and the way that I thought about that was and I always wanted to join groups of people

457
00:38:23.520 --> 00:38:26.560
who were all ahead of me like when I joined that internet group that I was talking about earlier

458
00:38:26.560 --> 00:38:29.760
everybody there was making more money than me how do I get status in this group and the way that

459
00:38:29.760 --> 00:38:34.720
I did that was like be be good you know I mean make more money and so what I did was I talked to

460
00:38:34.720 --> 00:38:39.360
every single person in the group and I had only my small skill set and I gave it to them for free

461
00:38:39.360 --> 00:38:45.040
and I want to fucking hit on this because I get DMs every day about this guy this morning even

462
00:38:45.040 --> 00:38:53.440
said it he said Alex I want to make you a hundred videos for free if you're willing to employ me

463
00:38:55.680 --> 00:38:59.840
the amount of times that I get this request whether it's I want to make you this website

464
00:38:59.840 --> 00:39:03.520
in exchange for a job the point of Mosination the point of everything that I was

465
00:39:04.000 --> 00:39:08.160
acquisition dot com that I hope to live by example is that you give first without asking

466
00:39:08.880 --> 00:39:12.320
you're doing it wrong right you think because like and the way I was like hey in the spirit of

467
00:39:12.320 --> 00:39:15.680
Mosin it's like you're not doing in the spirit of Mosination you're doing the spirit of John

468
00:39:15.680 --> 00:39:21.280
right doing the spirit of you the way that you do it is that you give and then you give and then

469
00:39:21.280 --> 00:39:26.080
you give and then you give and you keep on giving until that person is like dude what can I do for you

470
00:39:26.080 --> 00:39:31.280
and then you make your ask like whenever I get frustrated and I think like why do I even bother

471
00:39:31.280 --> 00:39:37.600
doing this like I think about giving up I just think this is where most people stop and this is

472
00:39:37.600 --> 00:39:43.280
why they don't win it transitions into one of my my most you sayings to myself I don't say a lot

473
00:39:43.280 --> 00:39:48.640
out loud but to myself it's like I won't do my best I'll do what's required and so right now

474
00:39:48.640 --> 00:39:53.360
what is required for you to win or get a job or get the skill might be better than your best

475
00:39:53.360 --> 00:39:57.360
and so it just means that your best just needs to get better all right so you might be riled up and

476
00:39:57.360 --> 00:40:00.960
be like I'm gonna go do this and take over the world and make all the money so but you're like

477
00:40:00.960 --> 00:40:06.640
fuck I gotta pay bills so how do we take this and then put into reality number one is like and this

478
00:40:06.640 --> 00:40:09.840
is how you transfer any skills in general by the way a little sneak peek from the book that's

479
00:40:09.840 --> 00:40:18.400
coming out all right coming is that you have the person who's teaching you documents the skill

480
00:40:18.400 --> 00:40:24.880
that's step one step two is that they do it in front of you so they demonstrate it and the third

481
00:40:24.880 --> 00:40:33.200
piece is duplicate you do it in front of them so document demonstrate duplicate now I can do this

482
00:40:34.000 --> 00:40:39.840
and I can do this but you have to do this I can't duplicate it for you you have to take the

483
00:40:39.840 --> 00:40:45.680
stuff and actually execute on it and so if you're like okay Alex what does that actually look like

484
00:40:45.680 --> 00:40:52.400
in my life I'm actually big big proponent of having jobs and I think that's probably taboo nowadays

485
00:40:52.400 --> 00:40:58.240
but uh yeah why not get paid to learn shit and if you're like well the place that I work at doesn't

486
00:40:58.240 --> 00:41:04.240
teach me anything then you should absolutely go apply for other jobs like change your conditions

487
00:41:04.240 --> 00:41:12.480
all right so I'm all about get paid to learn and as an aside the reason that keeping your living

488
00:41:12.480 --> 00:41:16.560
expenses low is so important is because if let's say you make a hundred thousand dollars a year now

489
00:41:16.560 --> 00:41:19.040
you're like yeah I've got a pretty good white collar job right now but I really want to get into

490
00:41:19.040 --> 00:41:23.600
this then it might mean that you have to go from a hundred thousand dollars a year to thirty thousand

491
00:41:23.600 --> 00:41:28.800
dollars a year to learn the skill because right now you go from earning to learning all right and

492
00:41:28.800 --> 00:41:34.080
like I want to tell you like I walked this walk so I was a management consultant at a boutique

493
00:41:34.080 --> 00:41:38.880
strategy firm in DC like we did like I had a top secret clearance I was 20 like I did I did

494
00:41:38.880 --> 00:41:43.200
shit that people could brag about all right and then I went and became a personal trainer in a gym

495
00:41:43.200 --> 00:41:50.880
for fourteen dollars an hour think about that I went from a high-rise condo that I owned to

496
00:41:50.880 --> 00:41:54.640
renting someone's bedroom for four hundred dollars a month in their house all right and I went

497
00:41:54.640 --> 00:42:00.960
from having you know Hugo boss suits to wearing beast mode engage t-shirts all right and showing up

498
00:42:00.960 --> 00:42:06.240
at four a.m. like ready to teach Nancy how to lose the last five you know what I mean and so like

499
00:42:07.120 --> 00:42:17.120
I had to swallow my pride on this because I wanted to I wanted to get learned all right and so you

500
00:42:17.120 --> 00:42:23.520
have to be willing to relinquish getting paid for getting learned all right once you get yourself

501
00:42:23.520 --> 00:42:27.440
in an environment where you actually have a business that is investing in you and it doesn't

502
00:42:27.440 --> 00:42:30.720
mean that they actually have to write checks to be clear now if you have a company that's willing

503
00:42:30.720 --> 00:42:36.320
to do that awesome level one is you communicate to them this is the skill that I would like to learn

504
00:42:36.320 --> 00:42:40.720
upon working for you and so you're like these are the skills that I bring to the table this is

505
00:42:40.720 --> 00:42:45.680
what I would like to learn is this a place that I can do that any business owner loves clear

506
00:42:45.680 --> 00:42:48.480
communication and it's like if you want to learn that and if they're a good business owner they'll

507
00:42:48.480 --> 00:42:52.080
be like let me help you support now if they're like my job isn't to teach you wrong place

508
00:42:52.080 --> 00:42:57.440
and I'm be real a lot of business owners like that and so if you're like well huh man it's not fair

509
00:42:57.440 --> 00:43:02.640
it's like well I mean getting paid to learn is a pretty good deal it's just that that's not

510
00:43:02.640 --> 00:43:06.160
always what happens and so I would say switch your conditions but let's say you finally get into a

511
00:43:06.160 --> 00:43:09.840
business that teaches you stuff and you feel like you're getting better you're moving faster I would

512
00:43:09.840 --> 00:43:17.680
say once you feel like and this is a big caveat this is like fucking caveat once you have nothing

513
00:43:17.680 --> 00:43:21.760
left to learn from the current position you communicate to them that you feel like you're learning

514
00:43:21.760 --> 00:43:27.040
is slowed down and then they may give you another opportunity to learn more and if they feel like

515
00:43:27.040 --> 00:43:32.000
they can't actually teach you internally they might say I'll pay $10,000 a year for you to go

516
00:43:32.000 --> 00:43:36.880
through these programs or workshops or seminars or whatever so you can or certifications so you can

517
00:43:36.880 --> 00:43:40.800
continue to level up your skill a good employer will do that and if you look at big corporate

518
00:43:40.800 --> 00:43:44.240
America as much as people sit on them they usually have pretty strong corporate reinvestment

519
00:43:44.240 --> 00:43:49.840
programs like they why because they want their their human capital to appreciate and so if you

520
00:43:49.840 --> 00:43:55.840
can pay $10,000 because they do the same SME 500 except the SMU 500 right they invest in you

521
00:43:55.840 --> 00:43:59.760
$10,000 and they get a three times more valuable person like one of the biggest arbitrage

522
00:43:59.760 --> 00:44:03.920
opportunity inside of this me talking business owners that's out there in the marketplace is that

523
00:44:03.920 --> 00:44:09.040
you can pay 25% more for an A player versus a B player and you get five times the output so like

524
00:44:09.040 --> 00:44:12.720
you think about value arbitrage like instead of paying a hundred a year if that's the market

525
00:44:12.720 --> 00:44:17.440
pay 125 and get five times the output why would you never make that trade once you've done this

526
00:44:17.440 --> 00:44:21.040
here are the three steps that you can transition from getting learned back to getting paid

527
00:44:21.040 --> 00:44:26.720
all right number one is that you live below your means the less risk you take in your personal

528
00:44:26.720 --> 00:44:31.360
life the more risk you take in your business life let's say that I own a business that does

529
00:44:31.360 --> 00:44:38.480
$10 million a year in profit okay if my living expenses are $800,000 a month then I'm not

530
00:44:38.480 --> 00:44:43.120
leaving much for the business to weather a storm and let's say that it's all fixed it's like

531
00:44:43.120 --> 00:44:48.240
mortgages and cars and jets and all the other stuff that I do well if there's a hiccup the business

532
00:44:48.240 --> 00:44:55.920
might go under but if I live on 400,000 a year then I have 9.6 million every year that I can go

533
00:44:55.920 --> 00:44:59.600
on the offensive and I can take huge swings I can be like I want to buy this company even though

534
00:44:59.600 --> 00:45:04.640
it's risky but it might 10x right and that offense is what you have to do as an entrepreneur because

535
00:45:04.640 --> 00:45:08.720
you have to take a calculated risk but you don't want to introduce multiple risk if you can control it

536
00:45:08.720 --> 00:45:14.560
and this is controllable risk okay so you live below your means so you can stack cash okay

537
00:45:14.560 --> 00:45:20.080
level two is that you take this cash and I want to be clear I'm actually kind of against side hustles

538
00:45:20.080 --> 00:45:25.760
as a long-term thing I'm pro them as a way to transition again this is how I play the game I'm a

539
00:45:25.760 --> 00:45:29.520
maximizer like I want to win big and so I think if you follow my stuff that you probably want to win

540
00:45:29.520 --> 00:45:34.000
big too and so if you're doing a side hustle it's because you wanted to eventually become your main

541
00:45:34.000 --> 00:45:37.360
hustle not because you're just looking for side income I'm just not that guy there's other

542
00:45:37.360 --> 00:45:41.600
guys who will talk about that it's just not me all right and so you stack the cash you can start

543
00:45:41.600 --> 00:45:50.000
your side hustle and you keep doing this until you have a matched your income so you start your

544
00:45:50.000 --> 00:45:54.400
side hustle and you keep doing it until you match your current income and if you're like wait a

545
00:45:54.400 --> 00:45:57.920
second for me to match my current income I'm gonna have to work 40 hours a week in my job and

546
00:45:57.920 --> 00:46:03.840
then work another 40 hours a week at this thing yep and the thing is and this is just you know

547
00:46:03.840 --> 00:46:08.320
one man's caveat there's me different different takes on this if you're not making more money

548
00:46:08.320 --> 00:46:12.400
on 40 hours a week of the new thing you're still not doing it right remember I went from

549
00:46:12.400 --> 00:46:16.320
employed to self-employed you have a level of leverage so those 40 hours you have more leverage

550
00:46:16.320 --> 00:46:20.480
than the 40 hours that you're working for someone else and if you're not making more there then you're

551
00:46:20.560 --> 00:46:25.200
like you still need to keep doing it until you've matched at least at least match your income and

552
00:46:25.200 --> 00:46:29.920
then once you've matched the income I would say sustain it for six months two reasons one is because

553
00:46:29.920 --> 00:46:32.400
now you're gonna be making double time you're gonna be making money on your job you're gonna be

554
00:46:32.400 --> 00:46:34.880
making money on your income so you're gonna be doubling your actual income which means you might

555
00:46:34.880 --> 00:46:38.400
be like three or four acts in your savings and the second is so that you don't just quit on the

556
00:46:38.400 --> 00:46:42.080
one good month you had because you sent up for clients okay we want to make sure that it's not

557
00:46:42.080 --> 00:46:45.680
seasonal we want to make sure that we get like it's not just normal volatility because really small

558
00:46:45.680 --> 00:46:49.840
businesses super volatile right if you're selling two customers a month if all of a sudden you sell

559
00:46:49.840 --> 00:46:54.240
zero your income goes to zero right unless you retain the people etc etc and then

560
00:46:56.000 --> 00:47:01.920
cut the cord and go out on your own spread those wings you're a beautiful butterfly in a lot of

561
00:47:01.920 --> 00:47:07.360
people look at this thing the side hustle and they're like but this isn't Facebook like this isn't

562
00:47:07.360 --> 00:47:12.400
sure it's not but I think a lot of people put under pressure on themselves by expecting their next

563
00:47:12.400 --> 00:47:18.720
thing to be a trillion dollar company and the likely that happens super super super super super super

564
00:47:18.720 --> 00:47:23.280
super small but again it's like what are your goals if your goals are just like get out of poverty

565
00:47:23.280 --> 00:47:28.000
get above the middle class get above get into the upper class like a lot of businesses can get

566
00:47:28.000 --> 00:47:32.800
you there if you want to be a trillion there there's only a few and also what we don't see is the

567
00:47:32.800 --> 00:47:37.760
zillions of not Zuckerbergs who put everything into their social media thing and it didn't work

568
00:47:37.760 --> 00:47:41.600
I'm a big fan of service businesses because it costs you nothing to start it's just your time you

569
00:47:41.600 --> 00:47:46.240
have no overhead in the beginning those ones are harder to scale but you'll usually learn a lot

570
00:47:46.240 --> 00:47:51.440
of other skills during that part like I learned more from running a gym that allowed me to do gym

571
00:47:51.440 --> 00:47:54.880
launch like if I hadn't run the gyms I don't think I would have been able to do gym launch and so

572
00:47:54.880 --> 00:47:58.960
think of whatever this is as the stepping stone and again we're still trying to get learned

573
00:47:58.960 --> 00:48:02.560
like that doesn't change we're just going to also get paid as we do it and that's one of the

574
00:48:02.560 --> 00:48:06.080
beautiful things but entrepreneurship is that like once you get past a certain level you get to get

575
00:48:06.080 --> 00:48:10.320
paid to learn more and I think that's like for me while I love the game so much is that you just

576
00:48:10.320 --> 00:48:14.560
keep getting better and get paid to get better don't judge yourself on the side hustle and especially

577
00:48:15.040 --> 00:48:18.960
don't listen to other people's judgment on your side hustle you know any people like I was like

578
00:48:18.960 --> 00:48:23.920
Vanderbilt Magna Cum Laude you know white collar consultant job like had a above Harvard you know

579
00:48:23.920 --> 00:48:30.640
GMAT score say like and you want to become a trainer like the amount of people that like I used

580
00:48:30.640 --> 00:48:34.080
to compete against friend of me's whatever you want to call it they were like oh great he's he's

581
00:48:34.080 --> 00:48:38.560
out of the race you know I mean like he's he's doing stuff to make himself happy right you know

582
00:48:38.640 --> 00:48:42.640
I was younger and I probably have more fucked up shit in my head than I do now but like

583
00:48:42.640 --> 00:48:45.600
I used to just think about them all the time when I'd be sleeping on the floor I'd be selling where

584
00:48:45.600 --> 00:48:48.000
I was like they're not willing to do this they're not willing to do this they're not willing to do

585
00:48:48.000 --> 00:48:52.640
this and then you come from behind right and you do Kobe and you work twice a day and while they're

586
00:48:52.640 --> 00:48:56.560
working their job and they have their three series BMW and they're you know going out to dinner and

587
00:48:56.560 --> 00:49:00.160
they have the football on the weekends and their fantasy league and you have none of that

588
00:49:01.200 --> 00:49:05.200
just know that you're doing your two days during the summer or your three days during the summer

589
00:49:05.200 --> 00:49:09.520
but because your rate of input is so much higher than theirs is you will catch up and you also

590
00:49:09.520 --> 00:49:13.760
pass them and that's if you want to compare and the main reason I don't think you should judge

591
00:49:13.760 --> 00:49:19.200
yourself on whatever you do is because in my opinion like I'm married to the game right more than

592
00:49:19.200 --> 00:49:25.360
anything like I'm going to keep playing the game because I love the game and so if you want to play

593
00:49:25.360 --> 00:49:30.720
the game a long time then it's the game itself that you want to stick with rather than the vehicle

594
00:49:30.800 --> 00:49:35.680
you're in right most entrepreneurs start more than one business over their career you are above

595
00:49:35.680 --> 00:49:40.400
the business the problem is that people identify so closely like their identity is their business

596
00:49:40.400 --> 00:49:44.480
but you have to just think about it and this is me just trying to give you like a you know big brother

597
00:49:44.480 --> 00:49:48.480
what do you want to call it piece of advice but like the further you can separate your identity

598
00:49:49.200 --> 00:49:53.280
and yourself worth from the worth of the business the better off you'll be as an entrepreneur

599
00:49:53.280 --> 00:49:57.600
because you also start to see as an asset that can be sold can create value in the asset you can

600
00:49:57.600 --> 00:50:01.920
make hard decisions whereas if it's you you're like what what will people think it's like

601
00:50:01.920 --> 00:50:06.720
I made a decision about a business that I own that's okay Simon Sinek is a great piece on this

602
00:50:06.720 --> 00:50:10.880
but when I learned the difference between infinite and finite games it really changed my perspective

603
00:50:10.880 --> 00:50:15.280
the infinite frame will always be the finite frame and there are finite games within every infinite

604
00:50:15.280 --> 00:50:19.840
game and so you have quarters you have years you have goals these are all finite games that we play

605
00:50:19.840 --> 00:50:27.040
in an infinite game and so when the US invaded Vietnam we lost why did we lose we lost a war

606
00:50:27.040 --> 00:50:32.240
of attrition which was that they were willing to play the game longer than we were all right and so

607
00:50:32.240 --> 00:50:38.080
the difference in a finite infinite game is that a finite game has known players agreed upon rules

608
00:50:38.080 --> 00:50:44.480
and an outcome and an end that's why it's finite an infinite game has known and unknown players

609
00:50:44.480 --> 00:50:49.040
has no agreed upon rules and the point of the game is to keep the game going and so the problem

610
00:50:49.040 --> 00:50:54.240
that most entrepreneurs have is they approach an infinite game with a finite frame they are the

611
00:50:54.240 --> 00:50:59.440
United States trying to invade Vietnam and you will lose every time because there will be players

612
00:50:59.440 --> 00:51:02.880
who are playing with an infinite frame and so let me give you two more examples of this if you

613
00:51:02.880 --> 00:51:08.720
want to get healthy right you don't win at health there's no end goal to being how you're like okay

614
00:51:08.720 --> 00:51:13.760
I'm done working out I did it I've achieved it right of course not right same thing with marriage

615
00:51:13.760 --> 00:51:18.480
right like you're not the point is into uh get married the point is to stay married the point is

616
00:51:18.480 --> 00:51:23.840
to stay in the game to keep the game going most of the games worth playing are infinite games

617
00:51:23.840 --> 00:51:29.440
not finite games which means the point is to just play and so business you don't win the point

618
00:51:29.440 --> 00:51:34.160
isn't to finish because even if you were trying to say finish first it's like by what metric

619
00:51:34.160 --> 00:51:38.560
on what time period has there anyone who's been the richest man in the world for all time

620
00:51:40.960 --> 00:51:46.880
no of course not which means that anybody who would try to do that is coming from a finite frame

621
00:51:46.880 --> 00:51:50.640
and so but there have been people who've won the game of business in my perspective because they

622
00:51:50.640 --> 00:51:57.280
played their whole lives if you want to be a stronger player and be somebody who can succeed

623
00:51:57.280 --> 00:52:02.400
as an entrepreneur then the day you start playing is the day you win and the day you stop playing is

624
00:52:02.400 --> 00:52:10.000
the day you lose and so the goal is to find games that you don't want to quit that's where learning

625
00:52:10.000 --> 00:52:16.960
what you are into from executing is the the mega win here so for me I found out that I actually

626
00:52:16.960 --> 00:52:21.360
like business more than I like fitness which is crazy because I love fitness getting into fitness

627
00:52:21.360 --> 00:52:25.760
but like the day I started my gym was the day my love for business outpace my love for fitness

628
00:52:25.760 --> 00:52:31.280
I was like this is amazing this is so cool and so you have to find whatever that thing is

629
00:52:31.280 --> 00:52:36.960
and I'm be clear like business sucks all the time but it's just that if you're willing to play

630
00:52:36.960 --> 00:52:40.240
and like there's plenty of times merit sucks there's plenty of time you don't want to work out

631
00:52:40.240 --> 00:52:43.600
but it doesn't mean that I'm gonna stop working out doesn't mean I'm gonna stop being merit

632
00:52:43.600 --> 00:52:47.680
doesn't mean I'm gonna stop being a business and so I think if you can unlock that frame that

633
00:52:47.680 --> 00:52:52.640
you want to play until the day you die even if the vehicle changes even the players that you're

634
00:52:52.640 --> 00:52:57.840
playing with on the court change then you'll be the guy who stays on the court the longest you

635
00:52:57.840 --> 00:53:01.920
might think oh I don't like video editing or oh I don't like you know dry cleaning right I don't

636
00:53:01.920 --> 00:53:06.400
like mowing lawns I don't like washing cars or whatever it is right but the higher up you get in

637
00:53:06.400 --> 00:53:10.320
business the more all businesses are the same right you're gonna have marketing you're gonna have

638
00:53:10.320 --> 00:53:14.240
sales you're gonna have products you're gonna have customer success or customer support you're

639
00:53:14.240 --> 00:53:17.840
gonna have IT you're gonna have finance you're gonna have legal like all these departments are

640
00:53:17.840 --> 00:53:24.560
gonna these functions were more or less existing every business and so my advice is like a lot of

641
00:53:24.560 --> 00:53:29.760
people quit industries when they really actually just quit a function of a job and so like they're

642
00:53:29.760 --> 00:53:33.280
like oh entertainment wasn't for me it's like do you know many jobs there are an entertainment like

643
00:53:33.280 --> 00:53:40.080
you might love sales and like sales in entertainment and you were in the actual like product side

644
00:53:40.080 --> 00:53:44.720
right on the production side or the support side and so again remember I said earlier that like if

645
00:53:44.720 --> 00:53:48.800
you stay in the same game longer you'll be likely to get more reps in and you'll do better

646
00:53:48.800 --> 00:53:53.760
well then maybe stay in the same industry but switch roles now in a micro business like your side

647
00:53:53.760 --> 00:53:58.160
hustle you'll get to taste all the roles and you'll find out the things that you like more and that's

648
00:53:58.160 --> 00:54:02.080
where you can shift some of your attention there and then you backfill people who are because you

649
00:54:02.080 --> 00:54:07.120
have a little bit of context good enough to do what you do better you demonstrate sorry you document

650
00:54:07.120 --> 00:54:11.280
you demonstrate you duplicate they duplicate and then they run with it right and so

651
00:54:12.320 --> 00:54:17.680
today for example my what I do looks very different than when I did 10 years ago

652
00:54:17.680 --> 00:54:21.200
right like what I did 10 years ago was the highest value school I had then which was just closing

653
00:54:21.200 --> 00:54:25.280
like it's all I did I consults all day because I got trainers to train for me I knew how to run

654
00:54:25.280 --> 00:54:28.800
the ads and that didn't take me that long took me two three hours a week to run the ads make make

655
00:54:28.800 --> 00:54:34.320
them and manage them the rest of my time was sitting in appointments and closing and I had

656
00:54:34.320 --> 00:54:38.080
somebody else make the phone calls and text for me so I would just sit there and close because that

657
00:54:38.080 --> 00:54:42.160
was the highest value thing I could do at the time but the thing is that your baseline skill will

658
00:54:42.160 --> 00:54:46.960
continue to level up if I lost everything then like if I lost everything I knew that I would sell

659
00:54:46.960 --> 00:54:50.880
cars during the day and I would strip at night right once I had that skill before I had the skill

660
00:54:50.880 --> 00:54:54.240
of sales I would drive Uber during the day and strip at night because I had the skill been in shape

661
00:54:54.240 --> 00:54:59.680
right and so your baseline continues to grow like being the best car salesman make 400 500 maybe

662
00:54:59.680 --> 00:55:03.040
even a million here at some of the best dealerships like if you're at absolute savage and I would

663
00:55:03.040 --> 00:55:06.560
consider myself an absolute savage if I was going to do that right if I lost it all I'd be

664
00:55:06.560 --> 00:55:11.760
there 12 hours a day for sure and then once I learned how to market marketing and sales together

665
00:55:11.760 --> 00:55:15.360
my new minimum was a million bucks here because I knew that I could sit in front of any brick and

666
00:55:15.360 --> 00:55:19.120
mortar business and I could get them leads and I could close once you have that you can make a million

667
00:55:19.120 --> 00:55:23.520
two million three million like I can't go below that because I have skills that are above that right

668
00:55:23.520 --> 00:55:28.960
you keep learning these skills as you keep doing your business and you might you'll start ping-ponging

669
00:55:29.040 --> 00:55:32.800
in different directions until you hone in on the things that you're best at and so I think if you

670
00:55:32.800 --> 00:55:39.040
can find that game make it the meta skill of continuing to learn then you won't stop and then at that

671
00:55:39.040 --> 00:55:43.840
point it means you win by default so we talked about a lot of stuff right but the question is like

672
00:55:43.840 --> 00:55:47.120
what's the next thing you're gonna do and so I'm just gonna give you the advice that I followed

673
00:55:47.120 --> 00:55:51.360
which is like what was the first thing I did to get myself out of this million dollar or below

674
00:55:51.360 --> 00:55:55.360
million dollar category to the above million dollar category and then to eventually the 0.4%

675
00:55:55.360 --> 00:56:00.080
10 million dollar category and it was actually just learning how to sell because if you can't sell

676
00:56:00.080 --> 00:56:04.720
anything you can't make money it's the first part of the equation number of sales times if you have

677
00:56:04.720 --> 00:56:10.080
no sales doesn't matter how good the life's and values if no one buys it zero so I have what we call

678
00:56:10.080 --> 00:56:15.120
the best sales training on the internet it's a long keynote that I did that people really dig and I

679
00:56:15.120 --> 00:56:20.560
think you'll hopefully like it and get as much from it as it took me years to consolidate it for you

680
00:56:20.560 --> 00:56:25.680
it's a good bargain on your time to get 10 years of sales training into an hour so enjoy