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Dan Martell
- September 06, 2024
13 Simple Rules of Business That Will Make You Rich
Episode Stats
Length
22 minutes
Words per Minute
219.41519
Word Count
4,965
Sentence Count
200
Summary
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.
Transcript
Transcript generated with
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).
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I'm going to share with you the rules of business that have made me so rich, I actually question
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the meaning of making money. These rules are what allowed me to go from broke 22-year-old
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to a multi-millionaire today. Some of these rules I picked up on my own during my 27-year
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career as an entrepreneur, and others I learned from some of the highest net worth individuals
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you probably know. So without further explanation, these are the 13 rules of business. The first
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rule is to take the credit card. Get paid. Had a kid ask me on this hike I host every Tuesday,
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how do I start a business? And I just replied, take the credit card. A business is started when
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money exchanges hands. Essentially, a stranger gives you money for your product or service.
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And it's not hard. You can either take cash, you can use Stripe, you can use PayPal, you can use
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Venmo. Just figure out what you want to sell and ask for it. The payment validates that they actually
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have a problem they want help with. See, a lot of people will tell you like, hey, go start that
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business. That sounds great. And you'll go off and build a bunch of stuff, come back, and guess what?
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They're like, cool, I don't need it.
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And you're like, you were saying you're gonna buy.
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Don't abuse this, get them value,
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deliver the thing you sold,
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but don't go running around doing free work
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for everyone hoping to get ahead.
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But the truth is without charging,
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you don't know if the person actually wants what you have.
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You don't know if they're the right customer
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and you're just gonna waste a lot of time.
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Which brings us to number two,
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which is the under-promise and over-deliver.
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A lot of people start companies as like agencies,
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freelancers, selling SMMA or some other kind of service.
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And the challenge is that sometimes you say yes
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to everything so that you can get the business. And then you don't realize how much work it's
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going to be. What happens is then somebody that gave you the work, it pissed off because you can't
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deliver, but you're not able to do everything. So here's how we solve that. First off, find one
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clear problem. Somebody has then offer a simple, but incredibly effective solution. And then when
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you deliver it, go above and beyond that extra 10% will set you apart from everybody else. For
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example, I've got a guy that details my supercars. His name's Dayton. He is awesome. I've had several
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people show up. They leave cards on my window. Three other people showed up and couldn't do
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basic things. Dayton's never asked me for a single thing. And because he's always shown up and left
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the car better than I expected, I was so impressed by him going that 10% above and beyond everybody
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else. But doing the basics, like showing up on time, doing the work as he said he would do,
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that I thought enough that I wanted to give him a gift
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to thank him for his work.
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That's how we over-deliver.
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Which brings us to number three,
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which is simple scales and complex fails.
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The biggest mistake first-time entrepreneurs make
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is they over-complicate what they do.
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It's hilarious to watch.
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They could have a working thing,
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a business, a product, a service, and totally mess it up.
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I always go back to what Elon Musk used to say
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about his engineering approach.
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He's always looking to remove parts
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from the requirements, from the product,
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Because a part that is in the product
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that doesn't need to exist is one more thing
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that needs to be managed and Q&A'd
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and could break and could cause other issues.
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So he's always looking at the requirements
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and he's always pulling so much stuff out of it
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that it should not work.
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And then he says, then I add it back
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to make the part work again.
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And that's probably the right answer.
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Teach your team.
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It's easy to make something complex.
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It's actually hard to keep something simple
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because everybody that joins your team or even yourself,
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You're like, I wanna make it better.
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And then you do something else.
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How can I make it better?
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You add it all back up.
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And the problem is at some point
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you create this complexity ball.
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It didn't solve the problem.
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So you just keep adding, adding, adding.
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My approach in business is every time I add something,
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it starts with negative value.
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Sometimes you need to think about
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before you add anything, what can I remove?
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So if you wanna keep this simple,
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I always say start with one clear customer
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you wanna serve, one clear product or offer.
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Some people call them godfather offers
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because they're so good they can't say no.
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then one clear way of getting attention marketing then one clear way of selling them and then focus
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on those four for one year those are the five ones if you put all that into your focus which
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stands for follow one course until successful don't complicate it you'll get rich which brings
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us to number four which is to give to get and this is a cool one because i learned this back when i
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was in rehab i struggled with addiction ended up in rehab as a teenager and what i learned through
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through this 11 months process,
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obviously becoming a better version of me
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and dealing with some of the pain that I experienced
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is that in therapy, they talk about,
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if you wanna be sober, you gotta help other people be sober.
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It's this whole idea is that you can only keep
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what you give away.
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When I started in business and I thought about like,
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how can I be valuable in business?
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I realized that if I want more money,
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I gotta help other people make more money.
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If you think about it, that all your income
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is probably about 10% of the value created in the world.
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I call this the 10% rule,
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that whatever value created in the world,
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you're getting 10% of that.
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So if you're making a million dollars,
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you've made other people $10 million.
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So the more you give, the more you get.
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See, most people have a scarcity mindset,
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so they don't wanna give anything away.
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They're just like, if I give that, then I don't got it.
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But that's actually flawed.
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So resources are unlimited.
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If you can be resourceful,
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there's unlimited money that's gonna come into your world.
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So the more you give, the more you'll attract.
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The scarcity mindset will keep you small.
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the abundance mindset will make you rich. If you want more, you have to become more. So your
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personal income will never exceed your investment in your personal development because you won't be
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as valuable to the rest of the world as you could be to make more money. Which brings us to number
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five, which is to be impeccable with your word. If you say to somebody else, you're going to do
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something, do it. I can't tell you, your life will absolutely change. Your bank account will fill up
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if you just went 90 days and did what you told other people you would do people either trust you
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or they don't and if they don't it's because you taught them that you can't be trusted the idea of
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being impeccable with your word to me is be the kind of person that when you talk you actually
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don't have negativity it's not only when you make a commitment you show up so if it's no just say no
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you don't have to say yes and then also just be impeccable with your word with others you realize
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that when you complain about other people that person's thinking i wonder if they say that stuff
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about me when i'm not around so this is the way i would encourage you to think about it everything
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you say is cataloged and published on the front page of your local newspaper i personally live
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my life pretty much on video so everything i say is recorded and i do have to be accountable for
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every word so the truth is if you don't have something nice to say about somebody and you
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wouldn't feel comfortable saying it in front of them you probably shouldn't say it and the cool
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part is is that makes you an attractive character to be around and what i've learned over the years
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is that you don't create success,
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you attract success by being that type of person,
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by being someone others can trust.
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Their word of commitment is strong
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and they don't talk crap, they don't complain,
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they don't bring negative energy into their life.
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They'll wanna have you around,
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they'll wanna go out of their way
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to help you achieve your dreams.
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You will be so rich because other people's success
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will come into your life and impact your business
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because of your word.
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Which brings us to number six,
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which is you win or you learn.
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Most people see me and they go,
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Dan, when's the last time you had a big L?
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It happens almost on a weekly basis.
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I'm swinging massively.
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Less than a couple of years ago,
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I lost a million dollars on a company that I bought.
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Some people would be like, that sucks.
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And I went, cool, I learned.
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Well, I learned I didn't have the team
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and the infrastructure to support it.
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I learned what kind of companies I should and shouldn't buy.
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I learned the process that I need to install
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to make sure that situation didn't happen again.
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And then what was the upside from that
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is that I found my business partner, Kevin,
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who I then built big band software with,
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and now we buy a company every month.
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So yes, did it hurt in the moment?
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Uh-huh, but did I use that setback to ask myself,
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what can I learn from this?
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100%.
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And what you'll learn from some of the richest people
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in the world, they're always pushing to learn
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so that they can earn.
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This always brings me back to Napoleon Hill's quote
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from Think and Grow Rich, which is,
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every adversity, every failure, every heartache
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carries the seed of equal or greater benefit.
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Every setback, every challenge,
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instead of it being like something that scares you,
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annoys you, bugs you, is actually like,
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cool, I'm gonna learn.
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Sometimes when I'm dealing with something really meaningful,
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the language I say to myself is great, worthy adversary.
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It's been a while since I've been exposed and stretched
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and had an opportunity to learn something massive.
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Regardless of the outcome,
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there's always something to gain from the experience.
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There's never been a situation where I,
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and I'm assuming you, have learned something
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when things went well.
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So in many ways, the setbacks
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are valuable learning experiences.
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Stop, reflect, dialogue, contemplate,
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lock it in, and move on.
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Which brings us to number seven,
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which is you don't manage time, you manage energy.
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Back in my 20s, I would wake up, alarm goes off,
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and I would work, I would crush, I would just go.
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16 hours a day, 100 hours a week,
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and it went on and on for four years.
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And what's crazy is the longer it went on for,
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the less and less I got done.
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Why? Because I didn't have a process for getting things done.
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I had all these plates spinning.
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I was running around making sure they kept moving
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because I was so scared that one would fall
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because I actually didn't know why I was being successful.
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I just know that the more I worked,
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it feels like it's gonna keep going.
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What I've learned since then is that my calendar
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is essentially a map to getting things done.
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That calendar needs to map to my energy
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so I can get the best work done in the right spots.
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So over the years, before I had kids,
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My life looked completely different.
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I used to stay up till two or three in the morning,
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sleep until eight or nine, and that was my rhythm.
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Then I had kids and I had these human alarm clocks,
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and all of a sudden now I gotta wake up
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at 5.30 in the morning.
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So I changed my whole life to map to my energy.
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So for example, first thing in the morning,
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I create connected to my creator.
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I literally sit down and I say,
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okay, here's the big problems I'm faced with.
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I've gotta create these new outcomes.
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How do I tap into that early morning energy
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to build something new, to strategize,
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to think differently so that I can come up
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with the solution to the problems
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that otherwise I'd be too close to it.
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So the mornings for me is really my opportunity
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to tackle big, meaningful projects.
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In the afternoon, I will schedule all my in-person meetings.
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All my meetings are typically after lunch
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where I can really get into the zone of having conversations
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and it just flows with my energy.
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You can get more done in those four hours
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than most people do in 12.
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there's no distractions there's no concerns there's no notifications popping off all over
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the place i'm dialed in i'm in flow and i'm getting the best work done connected to my
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creative which brings us to number eight which is to play to win don't play not to lose when you
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work are you working to expand or are you working to contract and protect are you in wealth creation
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mode are you in wealth preservation mode because it's interesting when you start off you're like
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I'm poor. I want to be rich. So you go and you build. Then eventually, potentially, you get to
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a place where you now have something to lose. So you change the way you approach your day and
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specifically your finances. People that spend more time trying to protect the amount of money
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they pay on taxes versus saying, how can I create more money? As a percentage, I want to pay the
00:11:12.140
least amount of taxes, but I want that dollar amount to be massive. And too often, people are
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working in business, trying to protect themselves from the downside instead of trying to create
00:11:21.940
more. The reason they do this is because they're shrinking themselves to save. Instead of asking
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themselves, how can I focus on creating more value? How can I help more people? How can I
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expand? How can I build cool new things? What are my goals and do they grow me? How can I create
00:11:38.020
opportunity for everybody on my team where my vision is so big that everybody's goals and
00:11:43.420
dreams can fit inside of it? Your inner conversation creates your outer world and today's energy will
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literally shape tomorrow's reality so you have to be on the creation mindset not on the preservation
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mindset it's actually a hundred percent the difference between rich people and broke people
00:12:00.160
which brings us to number nine which is to spend money to save time not time to save money this is
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what broke people get wrong that the rich have understood for a long time broke people prioritize
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saving money not saving time i've seen people drive 36 minutes out of their way to get gas at
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costco to save 10 cents on the gas per gallon they don't value their time wealthy people the ones
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that have the most success in business are always looking to invest money to buy back time because
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they know time is the most precious resource the richest people protect their time they value it
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they put a dollar amount is it a hundred dollars three hundred dollars five hundred dollars and
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then every request on their time they ask themselves is this yes worth the investment
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or should I default to a no?
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They spend money to buy back their time.
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Once they get that time back,
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then they're reinvesting it in a few different ways.
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They're going, can I do more of the thing I'm doing
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to make me money?
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That's a good start.
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Who do I need to become?
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Some people, their beliefs are what holding them back
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and they think if I go get some sales training,
00:13:01.200
I will make more money.
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No, you literally have to ask yourself,
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what do you believe about the world that's holding you back?
00:13:06.980
Do you have money blockers?
00:13:08.380
Do you have people blockers?
00:13:09.820
Do you have productivity issues?
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Choosing goals in your life
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to grow you with the time you bought back
00:13:16.940
is exactly how you should reinvest it.
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If you want my internal playbook,
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how I've done this, my whole life built my empire,
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then go check out my book, Buy Back Your Time.
00:13:25.460
It's available on Amazon, at retailers,
00:13:27.680
at buybackyourtime.com.
00:13:29.120
And it's not only a Wall Street Journal bestseller,
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it continues to sell more copies every week
00:13:33.420
than the previous week
00:13:34.300
because people are getting so much value from it.
00:13:36.780
And it's dedicated to this specific problem.
00:13:39.060
Which brings us to number 10,
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which is 80% done by somebody else
00:13:42.780
is a hundred percent freaking awesome some of you guys are like i keep hearing you talking about
00:13:46.660
hiring people and delegating to people it's just like how do you find great employees and i mean
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every time i give them something to do they mess it up it's like i might as well just do it myself
00:13:55.680
because it takes less time to do it than to have to teach somebody else and then fix it because
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they don't do it as good i get it but my employees can't do it as good as me see there's all these
00:14:04.620
reasons that you believe that and the only person that can fix that is you you'll only scale as fast
00:14:10.140
is your ability to delegate,
00:14:12.020
which means you're gonna have to learn how to lead people.
00:14:14.380
It means you're gonna have to learn how to communicate.
00:14:16.200
It might mean you're gonna have to learn a skill
00:14:17.660
called documentation and creating checklists
00:14:20.320
because having somebody else follow a process
00:14:22.900
that doesn't exist and blaming the people is not fair.
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Anytime there's an issue in my company,
00:14:27.960
I go, is this a people problem or a process problem?
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Nine times out of 10, it's a process problem.
00:14:32.760
And some of you are like, well, Dan,
00:14:34.380
my work is very creative.
00:14:35.620
I create content, I write books,
00:14:38.020
I design things that nobody else in the world
00:14:39.700
knows how to design that's where the 1080 10 rule comes into play so the 10 up front is the ideation
00:14:45.460
how do i collaborate with my team to get them on the right track the 80 is the execution them doing
00:14:52.000
the work to actually go and do research and create first draft so you want to be an editor not an
00:14:57.200
author and then the last 10 that's integration that's where you take what they've done and your
00:15:02.320
ability and you kind of tweak things but you weren't involved in 80 of all of that so you get
00:15:06.820
that time back to go become better. Could you clean your house? Yeah. But having somebody clean
00:15:11.820
your house to buy back that time, even if it's not as good as you could have cleaned it. I know
00:15:15.500
I'm not as good as my cleaner. You then get to reinvest that time on things that are going to
00:15:18.940
make you more money. So stop taking the prideful route of like, I like to clean my car and I like
00:15:24.020
to mow my lawn and I like to run my own errands. Use the apps. Think about meal prep. Look at
00:15:29.700
wash and fold. There are so many opportunities for you to get leverage in your life, which brings us
00:15:35.260
the number 11, which is to be incompetent. Most people hire people and then do their work. I had
00:15:41.220
a short go viral where I said, if you want to be rich, be lazy, but if you want to be wealthy,
00:15:45.980
be incompetent. Why? Because you have to stop doing the work. For example, if I owned a restaurant
00:15:51.620
and the chef quit, I'm not going to jump into that kitchen and start cooking people's meals.
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I mean, nobody wants that. I haven't cooked a meal for myself in a long time. What I'm going to do
00:15:59.680
is I'm going to go find another chef. I'm going to solve the problem, not by me putting my time
00:16:04.780
there but to actually solve the thing that's broken see oftentimes as entrepreneurs instead
00:16:09.740
of building the machine that runs the machine we start operating in the machine that's not what
00:16:14.860
we're supposed to be doing we have to learn the skill to work through people if we don't then
00:16:20.060
we'll always be dependent by our business and we won't create something that other people would
00:16:24.220
value so every time i build a business i'm always trying to build it in a way that it could be sold
00:16:28.860
because a company i can sell is actually an incredible company to own and the truth is you
00:16:33.100
you don't need to have all the answers.
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Some of the smartest people in the world aren't rich.
00:16:37.060
If it was IQ or know-how,
00:16:39.440
then all these PhD professors would be multimillionaires,
00:16:43.300
but they're not because they don't understand
00:16:45.080
that by being incompetent is actually a superpower
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because it empowers your people around you
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to step up and own things.
00:16:52.380
Remember one time I was sitting in my office
00:16:53.800
and all these shelves were empty
00:16:55.100
and my general manager who runs this company came in
00:16:57.900
and he's like, hey, what are you gonna put on those shelves?
00:16:59.780
And I just looked at him
00:17:00.640
and he was confused for about half a second.
00:17:02.280
And then he goes, oh, got it.
00:17:04.220
I was like, exactly.
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Like, I don't know.
00:17:06.760
You figure it out.
00:17:07.560
Work with the team.
00:17:08.420
I like to talk to you.
00:17:09.620
All the other stuff, the people that own it, they own it.
00:17:12.360
I train them.
00:17:13.160
I don't teach them.
00:17:13.940
Focus instead on helping other people get rich.
00:17:16.640
Invest in them.
00:17:17.740
Build the people.
00:17:18.540
The people build the business.
00:17:20.080
One of my big rules that'll help summarize all this
00:17:22.200
is train them.
00:17:23.940
Don't tell them.
00:17:25.580
Teach them how to be awesome.
00:17:27.020
Don't tell them how to do their job.
00:17:28.620
Which brings us to number 12,
00:17:29.860
which is be patient with results, but impatient with action.
00:17:33.580
I get business owners all the time that come to me
00:17:35.660
and they say, I just can't figure it out.
00:17:37.320
I've been trying and it's just not working.
00:17:39.260
And I'm like, for how long?
00:17:40.600
And they're like, for two months, four months now, probably.
00:17:43.260
I'm like, you have to go all in and attack it
00:17:46.540
for like six months, a year, two years.
00:17:50.320
Most people are so impatient.
00:17:51.840
And then they get down on themselves
00:17:53.700
and they stop doing the thing
00:17:54.940
that could have had some potential to become the big thing
00:17:57.720
because they're not attacking the activity here's the way i think about it that makes it completely
00:18:02.600
different from what everybody else does i am patient with the timeline if i say 10 years
00:18:07.880
i'm cool we're going to do this for 10 years however daily many times every hour we're ruthless
00:18:14.680
on effectiveness we are focused on the activities that lead to the outcome we're always asking
00:18:20.120
ourselves like what are the steps today that i can be impatient about getting done that will stack
00:18:26.280
up and lead to that outcome to make it inevitable and that's the language it's inevitable that if i
00:18:32.200
just am patient and i keep doing it and i keep doing it i keep showing up and i keep iterating
00:18:36.520
and i keep getting feedback that over time just by being consistent every day that eventually
00:18:42.840
it'll get better and hit the mark and something will work this is the frame that i think about
00:18:48.120
when i share this is the man who loves walking will walk further than the one who loves the
00:18:52.680
destination too many of you guys want to be rich but you don't want to do the work i mean one of
00:18:56.120
my mentors john maxwell said a lot of people want to do what i do they're just not willing to do
00:18:59.800
what i've done and what he's done is 57 years of showing up every day and writing and speaking and
00:19:05.960
90 books later he's the leadership goat which brings us to number 13 which is to protect your
00:19:11.640
reputation i remember one time i was sitting down and i was redesigning kind of my vision for my life
00:19:16.440
and being very detailed of all the things i want to accomplish and i've done some cool stuff but
00:19:21.080
but trust me, I'm just getting started
00:19:22.420
and I wanna do some bigger things.
00:19:24.180
And it occurred to me that all of those things
00:19:26.640
on my vision board, all the things that I had outlined,
00:19:29.060
the goals, the dreams, the impact I wanna have
00:19:31.680
sits on the other side of two things, reach and reputation.
00:19:35.420
That's all brand is.
00:19:36.740
If you think about it,
00:19:37.560
brand is association with other things
00:19:39.600
so that people can build trust with you
00:19:41.600
around whatever you do really well.
00:19:43.040
And then from a kind of pricing point of view,
00:19:45.520
your brand dictates the pricing power.
00:19:48.480
Think about something that's cheap, it's got no brand.
00:19:50.340
it's cheap it's like two bucks for a t-shirt however you put a logo like a nike logo and
00:19:54.340
all of a sudden that's a sixty dollar shirt why can i achieve that if i have those things
00:19:58.660
reach and reputation why can i achieve my goals if i have that is because now i can move really
00:20:03.860
quick if i want to connect with people then they'll say yes i could go and try to create
00:20:08.420
all this stuff but a lot of them would only ever happen if the people involved would know about me
00:20:14.580
and want me to be participating in those projects some people make the mistake of saying oh i want
00:20:19.460
to be well known i want to be well known it's like you want to be known well you want people to have
00:20:24.580
a positive response you could be really famous and everybody think you're a ding dong or you could be
00:20:31.060
known well to the right people because of your reputation the only way you do that is a few
00:20:36.020
key things number one you got to deliver when you make a promise to somebody else you have to show
00:20:40.100
up and you got to deliver second thing is you got to make a decision to go all in and some people
00:20:44.420
feel called and what i learned a long time ago is your calling in the middle of that is all in and
00:20:49.540
it's deciding to go pro if you do that if you want to be world-class like a warren buffett then what's
00:20:55.060
crazy is all the other people around warren that's in his space will go to him because of who he is
00:21:01.620
and his reputation so they'll have big opportunities big luck that just shows up in their life and
00:21:07.140
they'll bring it to buffets then to make decisions you have to have the values you need to know what
00:21:12.740
you stand for because if you don't stand for something you're gonna fall for anything people
00:21:16.100
want to know that they can trust your response because they know how you act values for me is
00:21:21.540
making decisions when i'm not around so i want everybody to know what my values are so even if
00:21:25.620
i'm not around to speak up they'd be like oh dan would probably want you to do this and if they
00:21:29.140
know how they can expect you to act then they have consistency it's huge values i've got them for my
00:21:34.660
businesses i've got them for my family and it all leads into integrity integrity is how you react
00:21:39.860
when things go wrong it's easy to be all like sunshine and rainbows when you're everybody's
00:21:44.020
making money and all is good but what about the moment something goes wrong how do you respond
00:21:49.060
because i believe that in those moments you actually have the opportunity to show your
00:21:52.740
customers how good you've been saying you are the last thing is to shine your light you have to
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decide to be authentically you you are the original you want to focus on a niche until you become the
00:22:03.380
niche so don't focus on a niche become the niche become the best in the world become the person
00:22:08.420
that has values and integrity you are the original and that is something that you can express you can
00:22:14.020
own nobody can take it cool part is it doesn't feel as heavy trying to be somebody else versus
00:22:18.740
just being who you are and there's enough people in this crazy world that they'll want to do
00:22:22.900
business with you they'll want to have you around your tribe is attracted by your vibe you just have
00:22:27.780
to shine your light those are the 13 rules of business if you want to learn the only three
00:22:31.860
skills you need to build a million dollar company click the link and i'll see on the other side
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