Valuetainment - Entrepreneurship Q&A with Patrick Bet-David

00:00:00.240 80% of people could care less about your problems.

00:00:03.600 20% of people are glad you have them.

00:00:05.600 It's the game we signed up for,

00:00:07.000 and the game we all signed up for is what?

00:00:09.360 It's called life.

00:00:10.800 People are gonna die, there's gonna be divorces,

00:00:12.760 there's gonna be losses.

00:00:13.880 If you play the game of business,

00:00:15.760 you're gonna lose money, there's gonna be risk,

00:00:17.920 there's gonna be enemies, there's gonna be people

00:00:19.400 that want to see you go out of business.

00:00:21.720 It's a part of life.

00:00:22.600 It's painful, I get it.

00:00:24.480 But we signed up and we're in this life.

00:00:30.000 Now, I'll tell you my story.

00:00:34.160 I'm coming up.

00:00:35.440 When I'm coming up and I'm building my insurance agency,

00:00:38.440 in October 29th, 2010, I get a call from Glenn Beck.

00:00:46.440 And Glenn Beck calls me and says,

00:00:47.960 hey, I'd like to talk to Glenn Beck, okay, cool.

00:00:49.960 I had a radio show called Saving America back then

00:00:52.360 with the same place with Hugh Hewitt and Dennis Prager

00:00:54.920 and some of these guys.

00:00:56.080 So Beck calls me and says,

00:00:58.200 yeah, I want you to fly out to New York to be on Fox

00:01:03.200 because we hear what you're doing and we want you to be on.

00:01:05.480 We have a program with entrepreneurs.

00:01:06.960 You ought to come out.

00:01:07.800 I'm like, wow, okay.

00:01:09.600 So I went out.

00:01:10.920 And then I went on Fox News on 2010, that's 10 years ago.

00:01:16.760 And I spoke and I'm not yet involved in politics.

00:01:21.040 Like I'm not even, I'm 30 years old at the time,

00:01:23.080 31, 32 years old at the time.

00:01:25.480 I come back, my San Francisco office shut down,

00:01:29.320 which was 18% of my revenue at the time.

00:01:32.280 I had my office in San Fernando Valley that shut down,

00:01:36.120 which was 11% of my revenue.

00:01:38.200 Overnight from being on Fox News with Glenn Beck,

00:01:40.680 I lost 30% of my revenue.

00:01:42.520 Wow.

00:01:43.320 Yeah.

00:01:44.200 And I couldn't afford it at the time.

00:01:46.680 So it almost put me out of business.

00:01:48.600 I came back.

00:01:49.480 I said, Pat, shut down the show.

00:01:53.000 I turned it off.

00:01:54.360 Just stick to business and entrepreneurship.

00:01:57.720 I did.

00:01:58.840 Behind closed doors and smaller settings,

00:02:00.840 I would talk about it.

00:02:02.120 But when it came down to the bigger setting,

00:02:03.880 I didn't talk about it.

00:02:05.480 Eventually what happened, my outlet, I stuck to economy.

00:02:10.680 I stuck to economy.

00:02:12.280 And I'm not fully where I will share with you everything

00:02:16.120 on how I think about politics.

00:02:17.720 I wrote a fiction book that took me five years to write,

00:02:20.920 96,000 words that I still haven't published,

00:02:23.320 that if I published the world would think I'm crazy.

00:02:25.240 I'm not gonna publish it.

00:02:26.120 I'm gonna publish after I sell majority of my shares here.

00:02:28.600 Then maybe I'll publish the book and I'll put it out

00:02:30.440 on what I really think about half the time.

00:02:32.280 Because some people are gonna say, Pat, a little bit out there.

00:02:35.720 Uh, moral of the story.

00:02:38.760 Today, I openly talk about politics.

00:02:41.320 Have you noticed that?

00:02:42.200 That I'm more comfortable today talking about politics

00:02:44.360 than a year ago, than two years ago, than three years ago.

00:02:46.840 Do you know why?

00:02:48.120 Because I don't need any of your money on here.

00:02:52.920 None of your money.

00:02:54.360 This is, guys, you're not, like, value tamed is not,

00:02:58.280 I don't know, value tamed is not 5% of my income.

00:03:06.680 Not 1% of my income.

00:03:08.120 Value tamed is maybe 1% of my net worth.

00:03:10.520 I don't know if that made sense.

00:03:11.480 And I'm not insulting.

00:03:13.080 Only reason I'm saying this to you, I have the power

00:03:16.120 and the leverage of not needing the money.

00:03:20.280 So the other day Coca-Cola calls us and Leo handles this account.

00:03:23.800 We get a call out of nowhere from Coca-Cola.

00:03:27.480 And Coca-Cola CMO, uh, hires me to be their, uh, consultant.

00:03:34.520 So I don't know if it's this week or next week.

00:03:36.360 I'm having a call with them and they pay premium because it's gonna this week.

00:03:39.640 Okay.

00:03:39.880 So it's this week and Leo dealt with them and they got them going.

00:03:43.720 And I'm going to be working with them and their executives

00:03:45.720 to help their marketing team identify their next five moves.

00:03:49.800 They say a price.

00:03:50.920 We give the price.

00:03:51.800 They say, yes, their team had read the book.

00:03:53.960 Boom.

00:03:54.280 We do business together.

00:03:56.120 Whether they say yes or no, I don't need that money.

00:03:59.000 Because I build a business that's generating income.

00:04:01.480 So you have to be thinking about if you're fully ready to make that move or not.

00:04:06.360 I don't want to give you the naive move to say, go talk about what you believe in.

00:04:11.080 And all of a sudden you lose $2.7 million.

00:04:13.400 I don't want to do that to you.

00:04:14.920 You know, so if you do have aspirations long-term,

00:04:17.880 remember, your next 15 moves, maybe talking politics will be your next 11 moves, your move 11,

00:04:24.600 but not right now.

00:04:25.800 So just be patient with it.

00:04:28.680 Hold yourself back a little bit and then release your thoughts when you have 5,

00:04:34.200 10 million in a bank and you're more confident and you're not relying on one source of income.

00:04:42.920 This is my MO.

00:04:43.960 There are certain people that don't believe in this, but I do.

00:04:46.440 I think you got to find a way to have carrots in your life to get you excited and recreate yourself.

00:04:50.920 I think you need to have some kind of carrots.

00:04:53.320 You know, the whole concept of capitalism is based on incentives.

00:04:59.960 So if there's no incentives, capitalism doesn't work.

00:05:02.680 So you're a capitalist.

00:05:04.440 You got to put some kind of incentives for you and your wife.

00:05:06.680 What could that be? I don't know. You know, it could be anything.

00:05:10.680 But I understand delayed gratification.

00:05:13.400 I'm all for it.

00:05:14.360 I'm all for delayed gratification.

00:05:15.960 I said this the other day, and hopefully this will make sense to you.

00:05:19.720 I currently right now have been living in a million and a half.

00:05:23.240 I just sold my house for million six, five, something like that.

00:05:26.920 Right. I don't live in a ridiculous house. 0.96

00:05:29.560 I live in an eighty three hundred square foot house. 0.79

00:05:31.720 But I told myself, babe, I don't want to go from one and a half to three million dollar house.

00:05:39.480 I don't want to go from one and a half to five million dollar house.

00:05:42.280 I just want to skip like four levels.

00:05:45.000 So I told her, I'm not going to be buying a big house.

00:05:46.920 We can live in a house like this.

00:05:48.520 But now we're going from a one and a half million dollar house to potentially a 20 million dollar house.

00:05:52.920 Because I went delayed gratification for a few years.

00:05:55.240 Now, at the same time, I've had the Lambos, the Ferraris, the Porsches, the Rolls Royce, all those cars, because that's my incentive.

00:06:04.920 I like that.

00:06:06.360 I buy an expensive car because I like that.

00:06:08.760 I enjoy doing those kinds of things.

00:06:10.760 That's a different conversation on incentives.

00:06:13.000 I think you're talking about whether I need to be taking income or not, because I'd rather invest it back into the company.

00:06:19.400 It all depends on how big of a thing you want to do in the next year, two years, three years.

00:06:23.240 But if eventually you and your wife don't see an incentive, specifically your wife, like she needs to see some incentives.

00:06:31.320 She may not be wired like you.

00:06:33.240 She may need to see incentives to kind of see this thing that you're working so hard.

00:06:37.240 There's a there's a reason behind the madness.

00:06:44.920 We've never done a ever.

00:06:48.680 We've never done a organization recruiting the staffing agency recruiting for the field.

00:06:54.840 We've always use recruiting agencies for home office always.

00:06:59.160 Yep.

00:06:59.800 Multiple staffing for home office, never for the field.

00:07:03.400 That's been 100 percent warm market.

00:07:06.120 And that's worked very, very well for us.

00:07:08.520 Now, obviously, you have to also know that we get a lot of leads that come through

00:07:12.520 PHP's YouTube channel or people see a video from me on value attainment.

00:07:18.760 And then they say, what does this guy do?

00:07:19.960 Oh, my gosh, I've always wanted to get into insurance.

00:07:22.120 And then, boom, they send an information and that goes out.

00:07:25.560 And somehow, some way they get involved.

00:07:27.560 But we don't have a place we go through or we get the leads.

00:07:30.440 We just have a ridiculous system that we've trained our guys on a war market that's worked very well. 0.99

00:07:36.360 And if you do that right, it could work very well for you.

00:07:39.000 A lot of people use leads.

00:07:40.840 We don't.

00:07:41.480 Today, if you're looking at young guys, I mean, Instagram today is the number one recruiting tool out there.

00:07:46.760 Hands down.

00:07:47.320 There's not a better tool in recruiting today than Instagram.

00:07:50.280 It's specifically for sales guys and girls.

00:07:54.120 But the part you've got to be thinking about is the following.

00:07:56.360 Let me flip it on you a little bit.

00:07:57.800 The comp structure of many companies will determine whether the salespeople will recruit or they will sell.

00:08:06.520 Where you put your incentives is where your salespeople will go bring new talent for you.

00:08:12.920 So if a part of your incentive is based on me recruiting talent, I'm going to recruit more talent for you.

00:08:19.160 I was consulting this trucking company and they were doing, you know, 5 million a year, you know, 10 million a year business.

00:08:28.520 And I went out there one day and we worked on their comp plan for an entire day.

00:08:32.200 We spent one full day on their comp plan, one full day on their comp plan.

00:08:35.960 And we came back and we put a comp structure together for them.

00:08:40.280 2020, they ended up with a quarter of a billion dollars of sales.

00:08:43.400 But their sales, and all they changed is they changed the incentive for their branch managers that they have.

00:08:52.120 And they started bringing in guys that started selling loads.

00:08:55.000 And the next thing you know, now they have branches in U.S., Mexico, Canada, Europe, Armenia, all over the place.

00:09:02.840 And they're doing around a quarter of a billion dollars a year.

00:09:05.080 You got to kind of look at your comp plan and see where the incentive could be for your sales guys to be recruiting versus just selling.

00:09:10.600 If you look at a guy's kids on how the kid does whatever he does, look at kids of teachers.

00:09:17.200 You guys ever notice kids of teachers?

00:09:18.820 If you know a teacher in your family that's an older teacher, like let's just say in their 60s and they have three or four kids, what do their kids do?

00:09:28.480 How many of their kids got a four-year degree?

00:09:31.200 Why?

00:09:32.260 Because the teacher's number one incentive in the family is to do what?

00:09:35.220 Get good grades.

00:09:36.320 Now you look at an entrepreneur's kids.

00:09:38.680 What's the incentives?

00:09:40.520 It's a very different incentive system.

00:09:43.180 So whatever incentive you create, I guarantee you, your kids are going to go after those incentives.

00:09:48.180 Your sales guys are going to go through those incentives.

00:09:50.820 So test your incentive system.

00:09:52.720 I changed my comp structure probably 50 times in the first 24 months.

00:09:56.700 Finally, I hit a sweet spot.

00:09:57.880 And then I just said, oh my gosh, this one's going to take off.

00:10:00.520 And then it took off.

00:10:01.420 I just had a meeting with my guys and I announced to them on the first.

00:10:05.240 My announcement was top 30 performers in a company for 21st to 30th place.

00:10:13.900 I'm getting everybody a cash Corvette C8.

00:10:16.240 I buy it for them.

00:10:17.140 11th through the 20th, I get them a Porsche 911 and I fly them out to Germany to go pick

00:10:24.700 out the Porsche.

00:10:26.060 Second to 10th place, I'm getting everybody a cash brand new Ferrari Portofino.

00:10:29.760 And in first place, I'm getting you a cash Aventador and I'm flying you out to Lamborghini

00:10:35.240 headquarters to get this for you, right?

00:10:36.520 Okay, now watch this.

00:10:37.580 In order for me to buy those $5 million worth of cars, the company has to grow 40%.

00:10:43.360 If we grow 40%, $5 million is nothing to me.

00:10:46.820 You understand what I'm saying?

00:10:47.840 Like, fine, I'll spend $5 million.

00:10:50.000 And you have no idea how crazy people are going right now.

00:10:53.280 Guys, if we do this, I'm going to do this.

00:10:54.660 If we do this, I'm going to do this.

00:10:56.140 So there's a relationship where one of the most important trainings I ever did for my

00:11:00.580 company is the following.

00:11:02.560 I said, let's talk about, here's how it opened up.

00:11:05.520 And this is something all of you guys can do.

00:11:08.740 I said, it was a four hour session I had with my guys.

00:11:12.120 I sat in my room in Woodland Hills and I said, guys, I want you here long-term and I want

00:11:19.780 you to give your best.

00:11:20.980 But before I give you that, what is your expectation of me?

00:11:24.660 What do you expect from me as a CEO?

00:11:26.720 And at first they start very soft, like small stuff.

00:11:30.540 Well, you know, we would like this from you.

00:11:33.460 Okay, great.

00:11:34.800 We would like you to be responsible financially.

00:11:37.180 Okay, great.

00:11:37.980 We would like this.

00:11:38.840 Or we would like you to add millions in the comp one day.

00:11:41.080 We would like you to, we will.

00:11:42.540 I'm like, okay.

00:11:43.540 So they said, we would like you.

00:11:44.920 We would like you.

00:11:45.480 We would like you.

00:11:46.040 We would like that.

00:11:46.660 And then it got bigger, which was great because it set me up for what?

00:11:51.260 I said, perfect.

00:11:51.860 In order for me to be able to give this from you, is it fair to say that I should have

00:11:56.340 some expectations of you as well?

00:11:58.100 Yes.

00:11:59.280 I said, I got a PowerPoint prepared of what I expect from you in order for you to get what

00:12:05.140 you get.

00:12:05.780 And this can be a very simple relationship together.

00:12:08.700 Let me go through it with you.

00:12:10.360 Boom, boom, boom.

00:12:12.200 Two hour PowerPoint.

00:12:13.180 I went through on exactly what I expected from you.

00:12:15.080 So then everybody understood, you want this?

00:12:18.060 Let's do this.

00:12:19.040 You want this?

00:12:19.940 Let's do this.

00:12:20.540 You want, that's what helped us grow.

00:12:22.460 And I think sometimes the relationship between the supervisor, the CEO, the boss and their

00:12:25.640 people, it's not like that.

00:12:27.600 So you screw it up.

00:12:28.940 But if you come from a, and you have to let them talk first, not you. 0.99

00:12:32.100 You have to be sensitive in addressing the most uncomfortable topics way before you hire

00:12:40.760 them.

00:12:41.520 Number one.

00:12:42.380 Like I said, do you want a salary or do you want to be a consultant?

00:12:45.520 I don't want to be a consultant.

00:12:46.600 Then if you're a salary, you have to report.

00:12:48.320 I'm good with that.

00:12:49.340 Then if you report, there's accountability.

00:12:51.020 I'm good with that.

00:12:52.180 So, but that can't be like, oh my gosh, we're going to take over the world together.

00:12:55.860 Let's go. 1.00

00:12:56.800 Oh shit. 1.00

00:12:57.280 We're fighting. 1.00

00:12:57.880 We're having prompts.

00:12:58.660 No, no, no, no, no.

00:12:59.480 Like slow down and take a few more weeks before you do this, but ask all the difficult

00:13:04.740 questions.

00:13:06.320 And Soren, it's, it's the closest thing to a prenuptial agreement you can have.

00:13:10.660 And I don't know if you have a nuptial agreement or not.

00:13:12.820 I'm all about nuptial agreements.

00:13:14.640 It's the closest thing to a nuptial agreement you can have.

00:13:17.300 And I'm, I'm 100% fan of nuptial agreements.

00:13:20.220 I recommend it to every man.

00:13:21.560 I know that has money.

00:13:22.480 And then it's incentive the way it's set up.

00:13:23.800 You got a comp for salary benefits, all the other stuff you negotiate.

00:13:27.080 Then it's, you know, 20% bonus, 25% bonus, whatever the bonus will be based on markers.

00:13:34.560 What are markers?

00:13:35.280 If he hires this person for me, if he raises this much money, if the EBITDAs are on this

00:13:39.540 number, if we grow at a 40% rate, whatever, if we, if we, if we, if we, if we, whatever

00:13:44.180 those markers are going to be, then he knows what he has to hit.

00:13:47.240 If he doesn't hit it, he doesn't get that 25% bonus.

00:13:49.540 So if you pay him a salary of, I don't know, pick a number, uh, uh, uh, for the sake of

00:13:54.900 easy math, let's just use a hundred thousand dollars.

00:13:56.880 Obviously you have to pay more than a hundred, but for the sake of math, if you use a hundred

00:14:00.280 thousand dollars and you say, I'm going to pay you an additional 50% of bonuses.

00:14:03.180 Great.

00:14:04.080 Divided amongst five different areas, 10% if the company grows by 40% net profit.

00:14:09.520 So we're doing a million dollars this year.

00:14:11.000 If we grow and do 1.4 million, you hit your $10,000 bonus.

00:14:15.320 Great.

00:14:15.600 Next.

00:14:16.300 I need a COO. 0.97

00:14:17.540 I need a director of finance and I need a controller.

00:14:20.000 If you find those three, that's another $10,000.

00:14:22.540 Great.

00:14:23.400 Three.

00:14:23.920 I need to expand into two new markets.

00:14:25.940 And if you help us expand, great.

00:14:27.600 Boom.

00:14:28.200 I need the office to be restructured, set up and you know, blah, blah, blah, blah, lease,

00:14:32.160 everything, bathrooms.

00:14:33.500 Okay.

00:14:33.740 Great.

00:14:34.420 So you create whatever those markers are with the incentives.

00:14:37.900 He's got his day to day plus those five incentives.

00:14:40.400 That gives them the additional 25% bonus.

00:14:42.920 And an equity will be based on vesting period.

00:14:46.720 He's going to want three years.

00:14:48.120 You're going to want five years.

00:14:49.380 You'll settle on four years.

00:14:50.680 He may agree to five years.

00:14:51.760 You may have to agree on three years because this guy's just better than you.

00:14:54.300 And then you're going to have to work to get on relationship, you know, calling him out.

00:14:59.100 You can't undermine him.

00:15:00.420 You know, you can't talk to him like a boss.

00:15:02.100 He's somebody that's self-made, but behind closed doors, you can.

00:15:05.080 How's accountability going to work out?

00:15:06.720 All of that matters.

00:15:10.400 Here's the kicker.

00:15:13.220 You know, what's crazy about lying?

00:15:15.060 Half the battle with lying is you're trying to avoid conflict.

00:15:18.860 Yes.

00:15:20.060 You're trying to avoid conflict or you're trying to avoid embarrassment or you want to look

00:15:26.560 cooler.

00:15:27.760 You know, you know, the whole thing where guys will say they've been with three times the

00:15:31.900 girls they've been with and girls will say three times less than the guys they've really

00:15:35.440 been.

00:15:35.620 Have you ever heard that story before?

00:15:37.360 Scientists have done extensive research on this.

00:15:39.460 So don't call me out and say, Pat had a, you know, moment where he's calling out women.

00:15:44.100 But why do men say three times?

00:15:46.440 Because they want to be three times cooler.

00:15:48.500 Why do women say three times less? 1.00

00:15:50.480 Because they want to be embarrassed less.

00:15:52.440 Right.

00:15:52.700 To say, well, I haven't really done it full run as much as I have.

00:15:55.520 Okay.

00:15:55.720 So that's not going away.

00:15:57.700 Just so you know that.

00:15:58.720 Now, there's a difference between that and lies like that, or you have a commitment to

00:16:05.460 hit, you don't hit it.

00:16:06.680 That's a problem.

00:16:07.840 Okay.

00:16:08.400 That's a problem.

00:16:09.660 There's a difference between that and, you know, a compliance lie.

00:16:16.400 You can take a company down with a compliance lie.

00:16:18.900 And there's a difference between that and, but I call out the behavior because I don't

00:16:24.320 tolerate the behavior.

00:16:25.640 I don't tolerate manipulative behavior.

00:16:27.960 I don't tolerate games.

00:16:29.380 And I don't tolerate anything that's going to hurt the company and bring others down.

00:16:32.920 So the more you talk about it, sometimes the challenge, Simon, is your values and principles

00:16:40.700 to the field or your employees or your executive team is not clear.

00:16:45.500 If they don't know your set of values and principles and you don't talk about it over

00:16:50.420 and over and over and over and over and over again, then they don't know what your

00:16:56.020 expectations are, right?

00:16:57.620 They're kind of like, I don't know what it takes to make Simon happy.

00:17:00.440 I don't know what's a good employee.

00:17:02.920 I don't know what's a good partner.

00:17:04.620 I don't know what's a good executive.

00:17:06.120 I don't know what's a good investor because you've never had those values and principles.

00:17:10.100 So how do you do that?

00:17:11.080 Well, you take a piece of paper and a Sunday afternoon or Saturday afternoon, and you sit

00:17:16.480 down and say, what are the best employees I've ever had?

00:17:21.180 Make a list of what made them the best.

00:17:23.680 What do you love most about Johnny, Jackie, Larry, Mary, and then who were the employees

00:17:30.440 or what kind of behavior hurt the company the most and what set back the company the most?

00:17:36.760 Okay.

00:17:37.460 What were those behaviors?

00:17:39.340 Which one of those behaviors will you not tolerate?

00:17:42.280 Great.

00:17:42.960 Then guess what?

00:17:44.260 Go tell the stories.

00:17:45.580 Would I give them specific names?

00:17:48.120 Go tell the stories.

00:17:49.280 Then I'm going to sit there and I'm going to say, oh, I do that sometimes.

00:17:53.580 Okay.

00:17:54.080 I got to work on that.

00:17:55.460 Oh, I do that sometimes.

00:17:56.680 He likes that.

00:17:57.720 Awesome.

00:17:58.180 I got a shot here.

00:17:59.480 Oh, phenomenal.

00:18:00.960 He loves that.

00:18:01.780 That's me.

00:18:02.500 He's talking about me.

00:18:04.320 I don't think this company is for me.

00:18:05.780 I got to go.

00:18:06.400 It's okay.

00:18:08.780 It's okay.

00:18:10.380 But you got to share your values and principles.

00:18:12.640 I read a book a few months ago called No Rules Rules, and I had every one of my employees

00:18:17.440 read the book No Rules Rules, and I had them measure what matters.

00:18:20.200 And after everybody read No Rules Rules, we kind of sat down and we went through the process

00:18:24.400 of what everybody was saying, what I was saying, kind of figured out some people just don't

00:18:27.680 belong here in the culture, and I'm not changing.

00:18:30.220 I'm not changing.

00:18:31.160 Because if I have to conform to you, I never had a real culture.

00:18:34.760 I didn't take time to really process what my culture was.

00:18:38.020 The moment you do that, then they'll know what to respond to.

00:18:41.620 But if they don't, and you keep it a secret, no one knows what's bothering you and what's

00:18:44.680 not.

00:18:44.900 And by the way, if I lose safe around you and you want me to be around with you long term,

00:18:50.200 if you don't allow me to save face, I will leave you because you offended me.

00:18:54.600 So you also got to make sure you're not, you know, hey, papa, papa, you know, you're not

00:19:00.440 coming out just like, I don't care what happens, you know, no, you don't want to do that.

00:19:04.240 You got to let me save face because I'm going to make more mistakes.

00:19:07.620 You know, if I don't have that opportunity for people to save face, sometimes you need

00:19:11.740 a crisis to create even more loyalty with your employees.

00:19:15.040 I don't know if this makes sense.

00:19:15.840 Sometimes you need a problem where we overcome together, then the team's like this.

00:19:20.440 That's why so many people, when they go to war together, their level of bond is the kind

00:19:24.660 that they'll never have with their wives or husbands or, you know, kids.

00:19:27.700 It's different.

00:19:28.380 We went to war together.

00:19:29.380 We almost died together.

00:19:30.800 We were so annoyed with each other because somebody screwed up, but we overcame that.

00:19:34.240 And we came back safe and we saved lives.

00:19:36.760 You have to give that opportunity for people as well.

00:19:39.500 Work on yourself on a leader.

00:19:41.120 Make a note of what you won't tolerate, what you like, what's been qualities of your best

00:19:44.960 employees, give that message to your guys, then go talk to that person, help them save

00:19:48.840 face and help them save their ego and then challenge them to improve and then go about

00:19:54.080 your business.

00:19:59.440 It's all on what kind of a culture you want to create, because if it's external, there

00:20:05.240 is no culture.

00:20:07.220 Okay.

00:20:07.720 It's just a transactional based, right?

00:20:11.020 It's like, I'm not emotionally connected to you, the vision, any of that.

00:20:14.980 I'm just like, okay, you're paying me.

00:20:16.260 I do the job.

00:20:16.880 We go home, right?

00:20:18.820 If it's internal, I'm vested.

00:20:21.460 It's a culture.

00:20:22.460 I'm in it.

00:20:23.080 I'm around you.

00:20:23.700 I'm like, oh my gosh, here's what we're doing.

00:20:25.060 I love it.

00:20:25.940 I want to be part of this.

00:20:27.040 I think that this is what we stand for.

00:20:28.400 Here's what we do as a company.

00:20:29.340 So, you know, the risk of one internal, what's the risk?

00:20:36.400 Takes a lot more time, right?

00:20:39.160 The benefit is what?

00:20:41.700 Increases value.

00:20:42.700 When it comes down to sell, it's very value-based because somebody sees the culture that's already

00:20:47.120 in there with leaders that are vested that are not going to go.

00:20:50.400 Okay.

00:20:51.160 What's the benefit of two?

00:20:52.740 More scalable.

00:20:53.880 It's external.

00:20:54.920 It's easier, right?

00:20:56.540 What's the risk?

00:20:58.100 People can come and go.

00:20:59.660 And it's turnover is going to be higher because you're just another boss.

00:21:03.320 You're just another person that's paying them the bills.

00:21:05.800 So, I think the question you got to answer with that one is, what's your vision?

00:21:09.720 And solve it based on that.

00:21:11.940 You know, right now, my guys are working out of home.

00:21:13.860 I'm not a fan of that.

00:21:15.020 However, you know, one of my IT guys came up to me.

00:21:20.520 I love this.

00:21:21.000 One of my best hires of last year.

00:21:22.880 He came up to me.

00:21:24.720 He was with AIG for 26 years.

00:21:27.120 Quality guy.

00:21:28.220 Quality guy.

00:21:29.700 He said, Pat, you got to realize there's a big difference between the IT industry people

00:21:35.380 and other types of people that you hire in different departments.

00:21:39.500 He says, IT, we're career.

00:21:42.020 We come in.

00:21:42.780 We like to stay with the company because we want to finish the problem that we started

00:21:47.220 to work on.

00:21:47.820 We want to solve that problem.

00:21:49.400 And we'll stay there.

00:21:50.380 He says, most IT guys, if they go to a company, they take care of them.

00:21:52.900 They'll stay with them for a long time.

00:21:54.120 Because, you know, we kind of want to continue solving the problem.

00:21:57.660 He said, the rest of the people that you have in different departments, they're here because

00:22:01.880 they have a job.

00:22:03.220 He says, I'm here for my career.

00:22:05.360 Others are here for their jobs.

00:22:06.900 Okay.

00:22:09.060 External is a lot of jobs.

00:22:10.760 Internal is career.

00:22:12.440 Okay.

00:22:12.660 Which one's going to increase the value for you?

00:22:15.240 Solve for that.

00:22:16.200 Okay.

00:22:16.680 Solve for that.

00:22:17.660 I would tell you right now, as you're going through the transition, probably you need a

00:22:20.960 little bit of both.

00:22:22.040 Okay.

00:22:22.400 To do as we're going through the phase that we're going through right now.

00:22:25.900 But the question will be answered with that based on what your vision is long-term.

00:22:34.720 I interviewed a guy a couple of weeks ago who's a cardiologist.

00:22:39.720 And he has done 25,000 heart surgeries.

00:22:43.480 Okay.

00:22:43.780 And this last week I interviewed Cyril Wecht.

00:22:45.880 I don't know if you guys know who Cyril Wecht is.

00:22:47.960 Cyril Wecht is a number one pathologist in America.

00:22:50.640 He's the guy that he's done 21,000 autopsies, okay, brains, and he supervised 41,000 of it.

00:22:57.260 You know what's part of his game?

00:22:58.580 It's to hold brains and to deal with dead people.

00:23:01.600 You know what's a part of a cardiologist's job?

00:23:04.340 Unfortunately, his job is to sometimes go to families and say what?

00:23:07.700 We lost your father.

00:23:09.520 We lost your auntie.

00:23:11.020 We lost your mom.

00:23:12.220 We lost your dad.

00:23:13.520 We lost your husband.

00:23:14.620 We lost your wife.

00:23:15.320 We lost your kid.

00:23:17.180 And guess how many times?

00:23:18.440 The first time you do it, painful.

00:23:21.200 Tenth time, painful.

00:23:23.360 Fiftyth time, painful.

00:23:25.920 By the 500th time, it's the career you chose.

00:23:30.440 Some surgeries don't go right.

00:23:32.820 And you have to go deliver the news.

00:23:34.420 I'm sorry, but we lost your father.

00:23:37.240 You ever seen a movie, John Q, where the whole heart thing, and you saw one of the heart surgeons

00:23:42.740 in a movie, John Q, with Denzel Washington, where the way the doctor speaks, he's so logical.

00:23:46.880 I don't know if you guys know what I'm talking about.

00:23:48.740 Yes, okay, so here's what we got going on.

00:23:50.240 We got this.

00:23:50.840 And the way they speak is very matter-of-fact.

00:23:53.240 And the rest of the world is like, what a cold mother you-know-what.

00:23:57.680 How could you be this cold?

00:23:58.980 This is someone's life.

00:24:01.020 Because that's his job.

00:24:03.280 His job is people die.

00:24:05.800 Okay? 1.00

00:24:06.060 And the first one sucks. 1.00

00:24:07.940 The fifth one sucks. 1.00

00:24:09.140 The tenth one sucks. 1.00

00:24:09.980 By the 50th one, it's the career you chose. 0.99

00:24:11.820 Right?

00:24:12.040 Okay.

00:24:13.520 What does that have to do with you?

00:24:14.880 In football, when there's a massive injury in a game, players psychologically get afraid.

00:24:26.900 If you look at football, the coaches and great coaches in that moment have to get their players

00:24:31.880 to realize this is the game we signed up for.

00:24:35.840 You could get hurt.

00:24:37.380 But if you play right, you're not.

00:24:39.560 If you play afraid of being injured, the chance of you getting injured goes higher.

00:24:45.020 If you play as if you're not going to get injured, the chance of you getting injured goes lower.

00:24:49.940 That moment, what the coach tells his athletes is what gets the players to go back out there and play.

00:24:55.620 After a guy just broke his leg, he's gone for one year.

00:24:59.280 It's that fear.

00:25:00.280 Right?

00:25:01.140 Kobe came back after having the whole Achilles heel.

00:25:03.540 And how does he go back?

00:25:05.120 It's the game we signed up for.

00:25:06.620 And the game we all signed up for is what?

00:25:08.900 It's called life.

00:25:10.320 People are going to die.

00:25:11.100 If you play the game of business, there's going to be enemies.

00:25:13.420 There's going to be people that want to see you go out of business.

00:25:16.280 It's a part of life.

00:25:17.000 So I don't want to seem like I'm not being empathetic or sympathetic.

00:25:23.740 Believe me, I cried when I'm sitting there and watching my wife cry.

00:25:26.840 Of course I cry.

00:25:27.760 It's painful.

00:25:28.700 I get it.

00:25:29.740 But we signed up and we're in this light.

00:25:33.860 Okay?

00:25:34.760 And however many years ago, all our parents conceived.

00:25:38.400 And nine months later, we're here.

00:25:40.380 Some of us are accidents.

00:25:41.940 Some of us are intentional.

00:25:43.040 But guess what?

00:25:43.720 We're now here.

00:25:44.860 Okay?

00:25:45.080 And we got around eight years to see what we can do with our lives.

00:25:47.820 Nothing's guaranteed.

00:25:49.020 We got to give our best.

00:25:50.660 But I want you to know, and this message goes to everybody, is brace for impact.

00:25:58.040 There's going to be some bad things that are going to happen to you in 2021.

00:26:02.860 Not trying to be negative.

00:26:04.020 There's going to be some bad things that are going to happen to you.

00:26:06.660 There's going to be some things that are going to happen to you that you don't know about.

00:26:09.160 My dad's 78.

00:26:10.520 He's not going to live to 100 years old.

00:26:12.980 Something's going to happen to me.

00:26:13.840 I'm no longer 22.

00:26:14.840 I'm 42.

00:26:16.640 Okay?

00:26:17.120 I got three kids.

00:26:18.920 They're going to get into a fight, injury, something like that.

00:26:21.020 I don't have one kid.

00:26:21.760 I don't have zero kids.

00:26:22.500 I told a guy the other day when the whole Jack Ma was being kidnapped in China.

00:26:29.120 And they're saying, is he kidnapped?

00:26:29.960 Is he this?

00:26:30.380 Is he that?

00:26:30.780 What happened to Jack Ma?

00:26:31.740 I said, you know what's one of the biggest mistakes people make in life that gives an automatic control to politicians to be able to manipulate you for the rest of your life?

00:26:43.300 What's that?

00:26:43.940 Having kids.

00:26:45.340 Why?

00:26:45.700 Because if people want to really hurt you, they go straight to what?

00:26:51.580 Kids.

00:26:52.700 Like in politics.

00:26:53.980 If you don't do this, this is what's going to happen to your kids.

00:26:57.000 How do they eliminate the Kennedy family?

00:26:58.780 They went straight after their kids.

00:27:00.800 So what's the point?

00:27:02.200 We all made the decision to be married.

00:27:05.240 If you are, your heart's going to be broken.

00:27:06.780 If you have kids, something could happen to your kid.

00:27:09.640 If you eat the food and it's too much sugar, bad diet, you may have something to do with your heart.

00:27:14.260 Everything is a decision that we're making.

00:27:16.760 And we got to do our best to live with this.

00:27:19.000 Now, here's also some guaranteed news about 2021.

00:27:21.540 There's going to be some great things that are going to happen to you in 2021.

00:27:24.780 New surprises.

00:27:26.140 You're going to meet someone new that you didn't know before that's going to change your life.

00:27:29.440 A new friend, a new contact, a new client, a new salesperson.

00:27:31.860 A new employee.

00:27:33.460 Something good is going to happen.

00:27:34.520 A lot of good is going to happen to you.

00:27:36.300 And that's going to happen every single year for the rest of our lives until it's time for us to go away.

00:27:43.520 That's kind of how life works.

00:27:45.240 But if you wake up every morning afraid that, you know, what if this, what if that, and oh my gosh, sorry me, feel sorry for me.

00:27:52.720 You are going to stunt so much of your growth because that's not going away.

00:27:58.000 Everybody and everybody else in the world is dealing with their own set of problems.

00:28:05.600 I read a quote one time.

00:28:07.140 80% of people could care less about your problems.

00:28:10.360 20% of people are glad you have them.

00:28:13.580 Very simple.

00:28:15.100 80% could care less about your problems.

00:28:17.320 20% of your people are glad you have them.

00:28:19.980 Exes, former friends, former employees, former workers are glad you're getting new problems.

00:28:26.180 You got to live your life and you do your best and good things will happen to you.

00:28:30.440 25% of your people's health.

00:28:35.740 16% of your people live.

00:28:37.660 Thank you.

00:28:38.560 Three most people live in the world.

00:28:39.720 30% of your people.

00:28:40.060 T tell them, hey, don't you okay?

00:28:41.820 навyamos your people.

00:28:43.140 15% of you live in the world.

00:28:44.060 21% of you live in the world.

00:28:45.700 What are you living in the world?

00:28:46.920 A Mini-L question of your people live?

00:28:47.640 19% of you live in the world.

00:28:48.680 20% of you live in the world.

00:28:49.460 20% of you live in the world.

00:28:50.420 30% of you live in the world.

00:28:51.820 So long as you live in the world is good.

00:28:52.960 Even I like you live in the world.

00:28:54.100 The час is coach.

00:28:55.400 20% of you live in the world.

00:28:55.500 21%.

00:28:56.340 Holy ministry is your life in the world.

00:28:57.360 20% of you live in the world.

Valuetainment - January 19, 2021

Entrepreneurship Q&A with Patrick Bet-David

Episode Stats

Summary

Transcript