299 - 12 Mistakes First Year As An Entrepreneur
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Summary
The dumbest mistake I almost made my first year as an entrepreneur is I almost quit. I almost believed that everyone that said, "You don't have what it takes to be an entrepreneur" and I almost gave up. The biggest mistake I made was trying to become a CEO too early.
Transcript
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30 seconds, one time for the underdog, ignition sequence start, let me see you put them up,
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reach the sky, turn the stars up above, cause it's one time for the underdog, one time for
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I'm Patrick B.W., host of ITEM, and today I'm going to talk about the 12 mistakes I
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The dumbest mistake I almost made my first year as an entrepreneur is I almost quit.
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I almost believed being an entrepreneur wasn't for me.
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I almost believed that everyone that said, Pat, you don't have what it takes to be an
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entrepreneur, I almost believed it and I almost gave up.
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I almost quit my first year as an entrepreneur.
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That would have been above everything else the dumbest mistake I would have made as an
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Number two, I tried to become a CEO president too early.
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See, when I think about the word entrepreneur, right?
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When I think about the word entrepreneur, what's the first thing that comes to mind?
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For instance, if I were to tell you right now, what's the first word that comes to mind when
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What's the first word that comes to mind when I say Apple?
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What's the first word that comes to mind when you think about the Lakers?
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What's the first thing that comes to mind when I say Chicago Bulls?
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What's the first thing that comes to mind when I think about Golden State Warriors?
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What's the first thing that comes to mind when I say the word entrepreneur to you?
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See, to me, entrepreneur, first is sales and numbers.
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Now, you may have said create a problem, solve a problem, da, da, da, da.
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But if you don't know how to sell and you don't look at the world of business as a number formula
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you've got to solve, you're not, because the only way an entrepreneur is an entrepreneur
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An entrepreneur must first learn how to graduate.
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Back in the days when you moved up in a company, the way everybody came to the top of the company,
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it wasn't like how it is today when people go get a fancy degree and they start off as
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Back in the days when you worked up at a company, everybody started selling first.
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Because you had to know what it was to be a salesperson, touching the customers, talking
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to their customers, and connecting with everybody else as an executive that you know
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If you don't know what salespeople do on a daily basis, you don't know how to connect
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And you don't know how to connect with the customer.
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So, my biggest mistake first year was I tried to be too much of a business owner instead
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of learning how to sell first and survive based on my selling abilities of making money
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Dumbest mistake I made was number two dumbest mistake I made.
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Number three, trying to take advice from too many people.
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Let me tell you what I mean by trying to take advice from too many people.
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If you're not pregnant yet or if you haven't, you as a woman are not pregnant, I've never
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been pregnant, or you haven't been a man with a wife who hasn't been pregnant yet, when that
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does happen, and if it has, you know exactly what I'm talking about.
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And whatever they tell you, they're telling you because that's what they did.
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And when you raise your kids, that's the best way to raise your kids.
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The way we raise our kids, we raise our kids because we put them through this, and we put
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them through that, and we put them through this.
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And by the way, this doesn't mean they're wrong, and it doesn't mean they're right.
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The way I take opinion from the people is, here's what I had to do.
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I took way too much advice from way too many people.
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My first mentor was in nine different sales companies at the same time, selling nine different
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I took a, trying to take advice from way, way too many people.
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Instead of simplify, who has the life that you want to have, and what are they doing at
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Sometimes we don't take the right type of advice because we see somebody that's already
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They come at the office at 11 o'clock, and they do this, and we think we have to have
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No, I want to know how you were when you were in the hunt building your business.
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So take advice from people who have the life that you have, and ask them how they did and
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what they did when they were at your level getting started, not at their level.
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It's irrelevant what they're doing at their level.
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I took advice from too many people that gave me too many different opinions, and my brain
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was going all over the place until I finally realized this is what I'm doing myself.
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Number four, not knowing how to ask for advice.
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So sometimes, you know, because you're an employee, and you want to become an entrepreneur, an employee
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An employee's told what to do, and you go do it.
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No one goes and says, so how do you think I've become a better employee?
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Very few people ask, how do I become a better employee?
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Most employees, I don't like this place, boom, I leave.
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Oh, I don't like this place, they don't take care of me, boom, I leave.
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Oh, I don't like this, instead of, you know, in my environment, I'm kind of like, you come
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You come ask me what we need to do to get better.
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What do we need to do to make this department better?
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What do we need to do to make the company better?
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Most companies, the employees are told what to do, and they do it, right?
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So when you go from being an employee to an entrepreneur, your mind hasn't yet shifted
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And as an entrepreneur, when you go into becoming an entrepreneur, you got to learn how to ask
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advice from the right people, kind of point number three and four is the same thing, but
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learning how to ask advice from the right people.
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You know, at what, when you were at my face, how did you do this?
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I hear sometimes on some conference calls, so, hey, you made $193,000 last month.
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It has, anything they did this month means nothing to you.
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You got to ask them, when you were making $3,200 a month like I am today, and you were
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at this level when you only had 17 customers, what were you doing every single day?
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That's the right question on how to ask for advice.
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If you want to sell yourself to dream and be excited, that's fine.
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But if you want to know how to's, you got to ask, what did we do when we were at your
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I force too much on my clients, on my staff members, on my sales force.
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My first year, oh my gosh, I was just way, way too much about forcing people to become
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successful, forcing people to realize why they made the decision.
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I was just too much force, way too much force, instead of trying to influence.
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It's almost like trying to manage everyone's success instead of leading.
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I said, this is putting way too much pressure on me than anybody else because their success
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If they don't succeed, then I'm taking, I said, you know what?
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I got to set an example of success and then I'm going to lead and influence them with my
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That took weight off my shoulder and they enjoyed my style of leadership because it was purely
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It was more about example than it was about, you better do this, you better do that.
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I had to learn by a ton of mistakes on going from force to influence, from managing to just
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What does that mean, living the dream too early?
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When I started the business, I made some money, so I went and got a brand spanking new car,
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big car payment, just driving everybody around.
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I was going to the, you know, out and buying drinks for everybody and partying and hey,
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You know, and I was good in the party scene because I liked that.
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And so lifestyle big, going to Vegas, spending 10 grand on a week, weekend when I don't even
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have $10,000 and I'm just, it's okay, the money is coming on future success and future
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That's what happened when I tried to live the dream too early.
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Now, I think there's a mistake as well, trying to leave it delayed too long as well because,
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you know, people also want to see that you're expanding in your life too.
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There's got to be a part of that that's taking place, that you're expanding in your life too.
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But living the dream too early, trying to act as if way too early, I don't think that's
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a benefit either because at the end of the day, the number one rule of being in business
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You got to make sure you're staying in business to be able to have a shot at growing your business.
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And living the dream too early, living too large too early, can backfire on you.
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Next, number seven, trying to sell too many products as an entrepreneur.
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I remember when I first chose the financial industry.
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So, I got started with Morgan Stanley Dean Witter, and I'm getting my Series 7, 66, 31,
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I'm going to go into the financial industry, okay?
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My first day in Morgan Stanley Dean Witter was on Monday, it was 9-10.
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It was probably the worst time to be involved in the financial industry.
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And I saw mortgages start climbing up, and that's when Negam, if you've seen the movie
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It has, I want to say, Ryan Gosling is in The Big Short.
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Actually, some pretty big shot actors are in The Big Short.
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So, you know, the whole thing is about the Negam business.
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Mortgages, where pick a payment, negative amortization, whatever you want to call this
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You can pay the 15-year loan, the 30-year loan, the interest only, or the negative amortization,
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which whatever payment you're making, your loan gets bigger and bigger every single month.
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I know it's a $720,000 house, but you only need to make a payment of, you know, $1,920.
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And who knows, five years from then, it may go up.
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But I was tempted to get into the mortgage world.
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This guy made $600,000 last month, and he's doing this, this, this, this.
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People who did it, the right, but made a lot of money.
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But I had chosen the insurance and the financial industry.
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One weekend, I came back, and one guy was kicking my butt.
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And I'd have to go and sit in the room and just watch this guy beating everybody up.
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Mortgage, mortgage, mortgage, mortgage, mortgage, mortgage.
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And so I said, we also need to do the mortgage.
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He's also getting, he's got his money, all this other.
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We have to try to become like a bank, and we have to do property and casualty as well,
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and we have to do tax services as well, and we have to do.
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And Blue Ocean Strategy said, get leaner, get tighter, fewer products.
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And not having read that book, I read it afterwards, realizing by pure luck,
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But I was this close of selling many, many, many different products instead of being focused
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The challenge as an entrepreneur is when you choose an industry, there's going to be booms
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happening in a lot of different industries, whatever industry you're going to choose.
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And there's always an industry that seems more sexier.
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I wish I would have came out with the next Snapchat, the next Instagram, the next Facebook,
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It just seems it's more sexy to come out with the Groupon or to come out with this, you know,
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I think, you know, I wish I wasn't in this boring type of, it doesn't matter.
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I am going to more hedge my money towards the guy that's all in an industry to master that
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industry than I am with the guy that's constantly trying to chase the next big thing that's taking
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And I watched guys, they went from negam, from mortgages into REO, to short sale, to real estate, to, you know, commercial, to modification, to selling gold, to dead sediment, to credit repair, to credit restoration, to so many, 25 different things.
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And I kept telling everybody, sell one product, man.
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And I almost made that mistake and it cost me my business on where I'm at.
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Become focused and intentional on one product, one industry you're choosing.
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I mean, literally, when I got started, I was a young kid, just a knucklehead who thought
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I would have been so annoyed coaching myself at that time because I thought I knew everything.
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And then the best thing that ever happened to me, the best thing that ever happened to
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By far, the best thing that ever happened to me is hitting rock bottom.
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I think for men, I have two boys and I'm going to be in pain when I witness these guys go
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through this, but I think the best thing that can happen to a man is a heartbreak, a very
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strong heartbreak, and a very big failure early on in business.
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And it happened to me early on in life, both heartbreak and business.
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It happened early on because I thought I knew it all.
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Socrates says, the only thing I know is that I know nothing.
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If the greatest minds on their deathbed are saying things like that, what makes you and
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Quite frankly, everything I'm saying on Valuetainment may be inaccurate.
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Every single thing I'm saying on Valuetainment, you may come back and my opinions may be wrong.
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For me, it's more about teaching how to think than actually what to think.
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I want to get an entrepreneur to learn how to think than what to think.
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And so the mindset of thinking, you know it all and all the concepts, it's just, it's not
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a place you want to be because it means advancements doesn't come around the corner.
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And I had the know-it-all attitude at a young age and it almost cost me.
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There's a benefit because you become edgy, you push the envelope a little bit, but there's
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also the leveling off to know that maybe you don't really know this and let me ask and
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question somebody I respect to give me proper direction that I trust that maybe they can
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But it's good that I have the audacity, so I like it, the fact that there's audacity,
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But there's got to be coachability and learnability that you want to learn and advance as well.
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Everyone's got to have somebody that they have a mentor that's giving them direction with.
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So it was good that I got out of that pretty quickly.
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I like Thursday night because it was ladies' night.
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I mean, we used to go to, this is back in the days, Dublin's.
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I don't know how many times I got kicked out of Dublin's.
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Man, Dublin's is now shut down, but Dublin's was just heavenly for me.
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We had a great time at Miyagi's, Saddle Ranch, all these other clubs that they had in Hollywood.
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I mean, you name it, we went through every single one of these things.
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We just partied like crazy and we'd go to Vegas and Dre's is open until today,
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but back in the days, Dre's was the late, you know, after hours.
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And we'd go to all these other places, just partying.
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Thursday night, then Friday night, then Saturday night, then Sunday night.
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And then you're trying to get up in the morning and go work on Friday morning.
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And you go into work and you're kind of like jet-lagged and, you know, from Vegas flight back or whatever it is,
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and you have no energy and you're going to work.
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No, I'm going to pull it off because I'm drinking three Red Bulls today.
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I did that for a couple of years and then my friends will tell you from high school,
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I went from being the most ridiculous, crazy party guy that wanted to do all that stuff
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to the most boring guy that said, stop calling me.
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One incident took place one night at a nightclub at Highlands,
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which was an ugly fight that almost led to arrests and all this other stuff.
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The only way I'm going to party is I'm going to party going around the world and seeing the world.
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And I want to celebrate with some ridiculous celebrations and business and success in life.
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All this other party stuff, the drinks, the girls, it's so boring after a while, man.
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It's like the same old crap over and over again.
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I want the natural highs of life is what I'm seeking, what I'm looking for.
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But it almost cost me a business because I thought, well, listen, man, we watch these movies, Wolf of Wall Street and Boiler Room,
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and you got to go and party very hard because that's what these guys do in the movies.
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If you want the bigger real life, the real, real players, that's not how they party, man.
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They don't party with the people at the nightclub.
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They don't go in there mingling and doing all that other stuff.
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And so it's all based on your standards and what you want to do.
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If you're my age and you're from California, we've probably partied at some of the same places together.
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If you know me from the past, we don't need any comments on the bottom.
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Number 10, acting like a boss instead of an employee.
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I come out at 11 o'clock if I want to because I chose to be an entrepreneur.
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When a person goes from being an employee to an entrepreneur, they're missing one thing.
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If you were a boss, you'd be a boss in your past life.
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That's why you were never a boss in your past life.
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So when you become an entrepreneur, one thing's missing.
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You don't have somebody that's going to hold you accountable.
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You don't have somebody that's going to tell you, what were you at 8 o'clock in the morning?
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You don't even like when somebody does that to you because no one's paying you hourly anymore.
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No one's paying you $20 an hour, $15 an hour, $30 an hour, $40 an hour, or whatever it is.
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So who's someone to tell you, what were you this morning?
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So that environment that you're going into, you're thinking to yourself, what the hell am I doing?
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You know, so if you don't hold yourself accountable or don't have somebody that's going to hold you accountable,
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a person, somebody that's directing you, challenging you, a running mate, a partner,
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And then eventually, obviously, you're self-motivated.
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You learn how to hold yourself accountable, all this other stuff.
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I've seen many people not make you because of that.
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Create a schedule just like you have a job, except at a job you work 9 to 5.
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As an entrepreneur, you work 7 to 10, just so you know that.
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You don't go become an entrepreneur and work a few hours.
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You go become an entrepreneur because you work twice as many hours,
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but then you own your own business and you control the time.
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Most people don't become entrepreneurs because they make more money.
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And the last one I'll tell you, the last one I'll tell you is,
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You know, I remember I got started early on and I was on this meeting
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and this one girl who had gotten involved in business.
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We had both become advisors at around the same time.
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She wrote a business plan, 60-page business plan.
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I'm like, man, I have no idea how to even write a business plan.
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And there was not like internet to go and type it,
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There was no online blogs, you know, on how to write a business plan.
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What am I going to do on writing a business plan?
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So the value of a business plan is this much when you're year one of an entrepreneur.
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Your business plan should be actionable items and habits to learn and apply every day,
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I am going to give away 50 business cards today.
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I am going to network online and connect with 50 people on social media today.
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And what counts, so I'm not just going on News Feed Facebook,
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I'm getting numbers and schedule and follow-up appointments.
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The business plan is not, here's what I'm going to hit, quarter number one, quarter number two, quarter number three.
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It's more, I'm going to learn this skill set this month.
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Then I'm going to learn this skill set this month.
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Then I'm going to learn this skill set this month.
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Then I'm going to learn this skill set this month.
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A habit, skill set, discipline plan is really what's critical over all the other stuff.
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Reading and putting that part of your plan on a daily basis is very important because you're improving your mindset,
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self-affirmation, you know, self-auto-suggestion statements you're telling yourself,
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books you're reading on how to improve yourself, audio CDs you're listening to,
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And obviously, when you do that plan, it's eliminating certain relationships, certain associations,
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The plan is not a business, business plan that you have to write.
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This intimidating business plan that a kid from USC with an MBA is going to teach you how to write
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I've seen hundreds of kids coming out of big universities writing business plans as entrepreneurs
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who failed and are working at somebody right now for nothing.
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Writing a business plan to value with year one, not a lot.
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Because then you understand the cycles of the business, the seasons of the business.
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You know, you're more of a mature entrepreneur, dot, dot, dot, dot, dot.
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And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
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And if you have any questions for me that you may have, you can always find me on Snapchat,
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And I actually do respond back when you snap me or send me a message on Instagram.