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Valuetainment
- April 06, 2021
9 Obstacles Every Entrepreneur Will Face With Their Startup
Episode Stats
Length
17 minutes
Words per Minute
228.91678
Word Count
4,116
Sentence Count
339
Misogynist Sentences
1
Hate Speech Sentences
1
Summary
Summaries are generated with
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Transcript
Transcript is generated with
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).
Misogyny classification is done with
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Hate speech classification is done with
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.
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So say you have two entrepreneurs that begin at the same exact time and the same exact
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industry, two of them, right?
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They start growing their businesses.
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If you notice, they're growing at the same time, but then there comes the wall that they
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hit, the obstacle that they hit.
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Notice the first one has a massive drop off, the second one doesn't, and it goes bigger,
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and the distance between them gets wider and wider and wider.
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So why is that?
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It's because one of them knew how to handle the obstacle they faced when they hit a wall,
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the other one didn't.
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Today we're going to talk about nine obstacles you will face as an entrepreneur.
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So make sure to stick around until the very end because I'm going to give you a PDF on
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today's message.
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So let's get right into it.
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Number one, creativity.
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When your business starts growing and you get to a point where you become stale, everything's
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the same, you're no longer growing, sometimes it's like, why are we not growing?
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One of the factors could be there's no more creative, innovative campaigns, creative strategies,
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mixed marketing campaign that comes out.
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It's just business as usual, and when there's lack of creativity, there's boredom.
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When there's boredom, people start looking all over the place.
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You lose customers, you lose employees, you lose agents, you lose salespeople.
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So you've got to get creative.
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Second obstacle you're going to face is resources as far as money.
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Now what do you mean by the obstacle I'm going to face is money?
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Look at the two guys or the two gals that are going as entrepreneurs.
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When you hit a wall, one has the money to invest back into the business in an area to help accelerate
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or solve the problem, the other one's been spending all the money or taking too much income
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out, they don't have it.
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They lose momentum.
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Resources is another obstacle you're going to face, and many different things.
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You may have an opportunity to buy technology.
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You may have an opportunity to expand and get a new C-suite executive that's going to bring
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the set of talents and skills that's going to grow your company.
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But if you've been spending too much money, you don't have that $200,000 to pay that C-suite
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executive.
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That is resources.
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So, so far we've talked about creativity and resources.
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Now let's talk about the other obstacle you're going to overcome, which is talent.
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What is talent?
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I was reading a book by Patty McCord called, I believe it's called Powerful, I think it's
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called Powerful.
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And I was reading this book, and one side, she worked for Netflix for 14 years, and she was
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pretty much their chief HR.
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And one day one of the departments comes up and says, hey, I want to recruit 50 employees at $50,000
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because I need that support from my department.
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She says, why 50 at $50,000?
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He says, that's because that's what I need.
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And Patty says, what makes you think it's 50 at $50,000?
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Maybe it's 25 at $100,000.
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Maybe it's 10 at $250,000.
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Why 50 at $50,000?
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And the guy started thinking about it, saying, huh, it's not like you're saying no to $2.5 million
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budget.
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You're just saying maybe it's not 50 at $50,000.
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So you're thinking about it.
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As the company grew, and I was building, first, let's just get anybody here to help us out,
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maybe $15 an hour.
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I can afford to pay somebody $50,000 a year, maybe $75,000 a year, maybe $100,000 a year.
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But as you get bigger, the talent you need here is not going to be able to handle it here.
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And the talent you have here may be good enough, but may not be good enough here.
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You have to constantly be increasing your talent pool.
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If you don't increase your talent pool, you don't know.
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The talent here may want to stay at this level.
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So you may want to have to get somebody else that wants to grow the company to this level.
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But if you stick with that same exact talent, they were good for this company size at $1
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million a year, $5 million a year, $10 million a year, but maybe you're not good at $50 million
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a year, $100 million a year, a billion a year.
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You have to assess that obstacle, you can say, how come this guy doesn't want it that bad?
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How come you don't want to grow?
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Maybe they just don't.
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Maybe they're just happy where they are.
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What are you going to do?
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You've got to go and find better talent that wants to take you to the next level.
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And maybe those folks will have a position in the company, just not at an executive level
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or senior executive level with the company.
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Next one is contacts.
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And I want to make sure you look at contacts the same way as we did with talent.
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Watch this.
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The talent pool here may have been good for this size of a business, but not this size.
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So you either have to challenge them to see if they want to upgrade, or you have to go
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recruit somebody else to help you get here, right?
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Same with contacts.
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Your existing contacts that you have in your Rolodex may have been good for here, but maybe
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to get to this level you need to kind of go and add some new people to your Rolodex.
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Maybe to get to this level you've got to go and add some new people to that Rolodex.
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So how do you do?
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What do you do?
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The other night I was sitting out with a group of guys and they were saying, Pat, what's
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been your main focus lately?
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All I'm doing, from morning till night, I am recruiting executives to two companies.
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One is my insurance company, one is Valuetainment.
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All I'm doing is on the phone with people recruiting.
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It doesn't matter what I'm doing, it's all about recruiting.
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So I'm using my data pool that I have of the contacts, and I'm reaching out to them.
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Who do you know?
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Who do you know?
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Who do you know?
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Who do you know?
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Who do you know?
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I'm recruiting.
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Why?
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Because there's no way in the world I can get to the next level with the existing talent
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that I have.
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Okay?
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Very few of them will recreate themselves constantly.
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Not everybody will.
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So the next challenge was going to be contacts.
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Now the fifth one is vision.
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Vision is on you.
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Sometimes you as the leader, you're going, I was on a board call the other day with a group
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of insurance executives that were all doing 20 plus million per year.
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20 to $100 million.
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They're doing good for themselves.
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They're doing very good for themselves.
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And we were being challenged on a lofty goal on what to do with this lofty goal, right?
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And everybody goes giving their ideas.
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And I go at the end and I say, listen, one of the challenges we're all going to face is
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the following.
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Sometimes when you're making $5 million a year or $10 million a year, or you're netting
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$2.5 million a year, you go to the right country clubs, you go to the right restaurants,
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you have the caviar, you have the lobster, you have the sushi, you have the sea urchin,
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you have the car, you have the clothes, you have the tailor, you have all that stuff
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that you've got going on, right?
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Part of the clubs, part of the sport teams, part of all that stuff, whose parties you go to.
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Sometimes you lose the vision.
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And you lose the motivation.
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And sometimes you're not motivating anymore.
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You sound like the same person 10 years ago.
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And it's the same exact thing.
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I as a person working for you, or I'm one of the people on your team, I'm like, where's
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this guy's fire?
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I bought into your fire 10 years ago.
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I bought into your fire five years ago.
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I bought into your fire a year ago.
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Where is that fire?
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Where is that person I chose to want to run with and work with?
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What happened to that person's fire?
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If you don't snap out of it and figure out a way to get your vision back on to the next
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level, you're not going to stay at the same level you are.
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There's always going to be a dip.
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Because your talent pool that you have with your company is going to say, like, I want
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to run with somebody that's got a big vision.
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And you seem to be very content where you're at, and then I start looking elsewhere, right?
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Sometimes a setback is because your vision has been already filled.
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You've got a full stomach.
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You're no longer thinking big enough, you start facing a big obstacle.
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And this one, by the way, can be very annoying if you ever go through this.
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Next.
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Tech.
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So what's tech?
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Speed.
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To me, when I see tech, I see speed.
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I just see those two together.
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I see tech as speed and efficiency together all the time, right?
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So myself, four years ago, three years ago, I built my business on a software that when
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I first started doing business with this gentleman 11, 12 years ago, he told me this software
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is built for a business this size.
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So one day, three years ago, him and I are talking, and he says to me, Pat, I got some
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bad news for you.
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He says, what's that?
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I said, buddy, my software is not built for a big company the way you're going right now.
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I can't sustain that.
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I said, if you go with me for a while, I'm about to break.
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I'm just telling you, I can't sustain you for too long.
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Think about he is telling a customer, we're very good friends.
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He's saying, you've outgrown me.
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I can't even get my service.
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I can't get nothing to support you.
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I'm just telling you, you've got to do something about it.
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So what do I do?
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I look and I said, okay, my tech, I've got a big tech issue.
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If that tech breaks apart, I've got a big setback, not a small one, a very big one.
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What does that cost to me?
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Is it a million dollar cost?
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Is it a two million dollar cost?
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Is it a three million dollar cost?
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By the way, is it a ten million dollar setback?
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Is it a hundred million dollar setback?
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Is it a quarter billion dollar setback?
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If that tech was to fall apart, to me, it's somewhere around a quarter of a billion to
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a half a billion dollar mistake, if the software was to break apart.
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So what do we do?
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Immediately meeting, get everybody in, technology engineers start pitching their products who
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can do it better.
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We go through eight weeks of the whole findings and the sticky pads on the conference room.
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Every week in our conference room we have two, three hundred new sticky pads.
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This week, two, three hundred sticky pads, every single week for eight weeks, then we
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come out with a work order like this big, and then we go around and see how much it's going
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to cost.
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The number came around three to five million dollars.
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Our man hours, their man hours, engineers, everybody, we built the software.
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Why?
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I was about to face a massive obstacle if I wasn't going to get the tech.
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Now watch this, I could have been stubborn and said, oh, it's going to be okay.
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Nope.
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It worked for this side, Mr. Ben David.
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It may even work for this side, but it's going to break at this side.
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So what do you want to do?
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Do you have the resources?
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We had the resources.
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We had the right people.
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We went and hired them.
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Next thing you know, the software was launched five months ago.
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Last month in the month of March, record breaking month.
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Why?
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Because the software now works so fast versus what we had in the past.
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Next, enemy, political.
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As you get bigger, you will have new enemies.
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Every time you get bigger, it's new enemies.
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If you think about it right now, I actually want you to go back and think about it.
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Go back five years ago, who was your number one enemy in business?
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Go back five years ago and think about your number one enemy.
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As a matter of fact, go back three years ago, who was your number one enemy?
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Who did you go to sleep in 2018 thinking about your enemy?
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Go to 2017.
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How about 2016?
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How about 2015?
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How about 2011?
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Do you see how you go back?
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Do you even think about that enemy today?
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If you've been growing and you've been developing yourself, that person or business or individual
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should not be your enemy today.
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You must graduate enemies.
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But as you graduate enemies, new enemies show up.
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Some are political.
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Some is government.
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Some is attorneys.
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Some is another person you're going up against.
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Some is a market share.
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Some is your business.
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You're going to face that.
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You cannot eliminate that.
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That's just going to be happening.
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The only way you eliminate an enemy that you're going up against is to stay small.
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In a very small, in a community, the smaller you are, the fewer enemies you have, but you're
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going to face that.
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So how do you handle that?
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Is it going head on?
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Is it trying to collaborate?
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Are they trying to bully you around?
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You have to kind of stand up to yourself sometimes.
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Do you start creating and poking?
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If you poke too much, they may poke back.
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So maybe you don't poke, you just kind of stay focused on your business, and you try to
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get the right people to make these things work out.
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This is all the different challenges you will face also with your enemies.
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At every level I've grown, I've had enemies.
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Every level I've grown, 90% of the time, I've befriended my enemies.
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We have figured out a way to make it work, and those 10% that we didn't, we just couldn't
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do it.
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We have to go head on.
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There's nothing we can do about it, until eventually you graduate.
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And some of them will stick around for a very, very long time.
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And some of them will pretty much go away and say, you know what, I don't want to compete
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with you directly.
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I'm going to go this way.
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Or you say, I don't want to compete with you directly.
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This is my market.
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This is your market.
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We don't even have to compete against each other.
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We go two separate ways.
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But you're going to be facing this, unfortunately.
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Most entrepreneurs and business owners do not know how to handle this.
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And this gets a lot of people to go out of business.
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Eight, culture.
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You're growing your business.
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Things are going good.
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All of a sudden you're like, man, how come we are flattened out?
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What's going on here?
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What is it?
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You can't figure it out.
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I can't even feel it anymore.
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What's going on?
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People are not excited anymore.
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What happened to this company?
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Well, your culture, either there is no culture, either the culture used to be a nice culture
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to be around, but the culture's gotten boring.
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Maybe you're not around anymore.
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You've given up the culture to somebody else.
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And they don't know how to continue the culture that you created at the beginning of the company.
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So this culture is not helping you attract the right talent.
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This culture is not getting the right people that want to come work with you.
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This culture is not allowing you to raise more money.
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This culture is not creating the place where it's very creative.
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Why?
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You've got to go back and ask the culture.
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You're responsible for it if you're the entrepreneur.
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And last but not least is reputation.
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I had issues when I was small.
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As I got bigger, I still had issues.
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And I got bigger, I still had issues.
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This is never going away.
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Today especially, anybody and everybody can say anything they want about you.
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How do you handle that?
00:12:11.020
Years ago when I started creating content, eight years ago, the number one reason why
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I created content, the number one reason why I created content wasn't because I wanted
00:12:19.980
to be a YouTuber.
00:12:20.980
It wasn't because I wanted to make money off of you.
00:12:24.320
It was simply because if you and I were going to do business together, I wanted you to say,
00:12:30.060
huh, let me see this guy here.
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What is this guy?
00:12:32.920
I go on YouTube.
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Patrick B. David.
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Let me look.
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Wow, I like what he says.
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How interesting.
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I actually like what he stands for.
00:12:38.920
I like the way he does interviews.
00:12:40.800
I like the way he talks about business.
00:12:42.520
I like his values and principles.
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We match together.
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You know what?
00:12:46.140
I want to do business with him.
00:12:47.140
Or you'd go look at him and say, I just don't like this guy.
00:12:50.640
He's too much about capitalism.
00:12:52.680
He's all about entrepreneurship.
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I don't like him.
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I don't want to ever do business with this guy.
00:12:57.360
No problem.
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But it became a filtering process.
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You know what's the one rule about this?
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I'll give you a few challenges.
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One time we had a customer.
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Very interesting story.
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We're a year-round in the business.
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I start doing what I'm doing.
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This one guy, all of a sudden, I notice everywhere he's commenting.
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He's commenting this.
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He's commenting this.
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He's commenting this.
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Okay?
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And then one day, I'm like, I'm just going to call this guy.
00:13:19.100
So I'm like, hey, give me his number, Tikran.
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Tikran gets his number.
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I call him up.
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Say, hey, John, how you doing?
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Good.
00:13:24.600
Who's this?
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Patrick B. David.
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Patrick B. David?
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Yeah, Patrick B. David.
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I said, look, did we do something?
00:13:29.600
Sounds like you're upset with me or somebody.
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Tell me what I did to upset you, because I'm curious.
00:13:33.980
And he says, well, let me tell you something, all you think about is capitalism.
00:13:38.800
Money doesn't rule the world.
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It's not all about money.
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It's about this.
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I said, okay, so tell me what you believe in.
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He says, I believe in communism.
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I said, you believe in communism?
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Yeah.
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I said, great.
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I was raised by a communist.
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What do you like about communism?
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We had a 45-minute conversation together.
00:13:52.740
You know what happened after the 45 minutes?
00:13:54.840
He said, you know what, Pat?
00:13:55.840
I said, what's that?
00:13:56.840
He says, I had a different idea of who you were.
00:13:59.360
I appreciate you calling me, just the fact that you heard me out.
00:14:02.380
I appreciate that.
00:14:04.380
We had a good banter together.
00:14:05.380
I said, yeah, no problem.
00:14:06.380
Cool.
00:14:07.380
Here's my number.
00:14:08.380
If you want to keep in contact with me.
00:14:09.380
I'm just glad I had a conversation with you.
00:14:10.380
I thought something really happened where you were upset.
00:14:12.100
Where apparently what upset you is the fact that I believe in capitalism.
00:14:14.760
Yeah.
00:14:15.760
Look, I got my philosophies.
00:14:17.400
You got yours.
00:14:18.400
I think what a good thing that came out of this is we had a good banter.
00:14:21.060
Yeah, absolutely.
00:14:22.060
Ha, ha, ha.
00:14:23.060
We got off the phone.
00:14:24.060
Seven years later, you got calls me.
00:14:25.060
We had a good conversation.
00:14:26.060
Remember seven years ago when I called you?
00:14:27.060
Yeah.
00:14:28.060
I'm an entrepreneur now, right?
00:14:29.060
I mean, the whole story with life changes.
00:14:30.060
What's the point?
00:14:31.060
One phone call.
00:14:32.460
One phone call.
00:14:33.460
We had an issue where the phone call wasn't made.
00:14:34.960
It dragged out for 12 months just because of one simple phone call.
00:14:38.180
I had a call yesterday with one of my guys.
00:14:40.400
We're having a conflict with this person here, with this customer here.
00:14:44.060
I said, when did the conflict start?
00:14:45.960
Two weeks ago.
00:14:46.960
I said, when did you reach out to the customer?
00:14:49.020
We haven't yet.
00:14:50.020
I said, you've had a conflict with a customer you haven't reached out?
00:14:52.020
No, we're thinking about reaching out on Monday.
00:14:53.400
I said, what are you talking about on Monday?
00:14:55.600
Call the customer today, right now.
00:14:57.740
When the conflict happens, call the customer.
00:15:00.980
Ask them.
00:15:01.980
Hey, Mary, John, sounds like I did something that upsets you.
00:15:04.680
Can you please help me know what it is because I don't know.
00:15:07.540
You know what upset me?
00:15:08.840
What upset me is the fact that, perfect.
00:15:10.740
You know what?
00:15:11.740
I am so sorry.
00:15:12.740
I wish I knew this.
00:15:13.740
It's totally my fault.
00:15:14.740
I apologize.
00:15:15.740
I'm going to work on this area.
00:15:17.520
Aside from this, did I do anything else that upsets you?
00:15:21.140
No nothing.
00:15:22.140
Well, I'm glad to know.
00:15:23.140
How about this, John and Mary, what?
00:15:25.100
If I work on this area and I'm able to follow up with you to provide you with ABC, are you
00:15:29.460
good with moving forward doing business together?
00:15:31.140
Yes, sure.
00:15:32.140
I just want to let you know, everybody I've ever done business with, we've always had
00:15:34.960
some kind of differences at one point.
00:15:36.460
There's always been a conflict with my marriage, with my best friends, with my business partners.
00:15:40.380
But once we're able to overcome that and move forward, that ends up becoming one of
00:15:44.760
the best relationships I have.
00:15:46.520
I'm open to it if you are.
00:15:48.060
You know what, Patrick?
00:15:49.200
We like your approach.
00:15:50.200
I'm open to it.
00:15:51.200
Wonderful.
00:15:52.200
If you need to get a hold of me, John and Mary, this is my phone number.
00:15:55.040
Is it okay for me to call Bobby for them to continue the process?
00:16:00.200
Absolutely.
00:16:01.200
Thank you.
00:16:02.200
Again, if you need anything, call me.
00:16:03.200
I'm going to call Bobby.
00:16:04.200
Bobby should call you in the next 30 minutes.
00:16:05.200
Excellent.
00:16:06.200
Great.
00:16:07.200
I call Bobby.
00:16:08.200
Bobby, I just spoke to them for 45 minutes.
00:16:09.200
Call John and Mary.
00:16:10.200
Half the battle with reputation and credibility is instant follow-up to address the issue.
00:16:15.420
You have to know that you can't please everybody.
00:16:18.040
You cannot please everybody.
00:16:19.660
I'm in the insurance industry.
00:16:21.400
I can't please the fact that only 10% of people pass their license.
00:16:24.940
I can't please everybody that this is not an easy industry to be a part of.
00:16:28.800
But I can do enough for the market to say, I actually like doing business with this person.
00:16:33.780
Again, the bigger you get, the more this is going to be.
00:16:37.720
The smaller you are, the smaller this is.
00:16:39.940
The bigger you get, the more resources you need.
00:16:42.220
The bigger you get, the more creative you need to get on the inside.
00:16:45.220
The bigger you get, the better talent you need.
00:16:46.840
The bigger you get, the stronger contacts you need.
00:16:48.600
The bigger you get, the bigger the vision needs to be.
00:16:50.500
The clearer it needs to be.
00:16:52.500
The bigger you get, the better tech you're going to need.
00:16:54.780
The bigger you get, the better you'll need to be with enemies.
00:16:58.300
The bigger you get, the more your culture is going to matter to have a high retention.
00:17:01.340
The bigger you get, the better you need to get at dealing with people who don't like
00:17:05.140
the way you do business.
00:17:06.540
Because your credibility is on the line, and your reputation is on the line.
00:17:09.020
So having said that, these were the nine obstacles you're going to overcome as an entrepreneur.
00:17:12.960
If you want today's message in PDF, text, huh, let's say reputation, it's a tough word,
00:17:20.640
text reputation to 310-340-1132.
00:17:24.220
Once again, text the word reputation, you see it on the screen, to 310-340-1132.
00:17:31.180
And if you're not in the U.S., you can go in the description below, subscribe to our
00:17:34.220
newsletter.
00:17:35.220
We'll send you today's PDF.
00:17:36.220
And if you enjoyed today's video that I talked about, nine obstacles to overcome as an entrepreneur.
00:17:40.580
I did a video a few years ago titled, How to Improve Your Work Ethic.
00:17:44.220
If you've never seen the video, How to Improve Your Work Ethic, this was probably four or five
00:17:48.840
years ago.
00:17:49.960
It's one of my favorite videos I've ever put up.
00:17:51.620
It's a very important topic.
00:17:53.000
Click over to go watch that video, and if you've not subscribed to the channel, please
00:17:56.800
do so.
00:17:57.800
Thanks for watching everybody.
00:17:58.800
Take care, bye bye.
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