Valuetainment - May 01, 2019


Episode 293： NEXT MARKET CRASH： 10 Ways To Make Millions As An Entrepreneur


Episode Stats


Length

16 minutes

Words per minute

205.52951

Word count

3,318

Sentence count

317

Harmful content

Hate speech

1

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

In this episode of ITIM, Pat talks about how to prepare for the next market crash and how to make millions of dollars in the next downturn. He shares 6 time periods that will give you an idea of when the next crash will take place and why you should be prepared.

Transcript

Transcript generated with Whisper (turbo).
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.960 30 seconds, one time for the underdog, technician sequence start.
00:00:06.980 Let me see you put them up, reach the sky, touch the stars up above, cause it's one time
00:00:13.100 for the underdog, one time for the underdog.
00:00:17.180 I'm Patrick Bedewe, host of ITIM, and today I'm going to talk to you about 10 ways to
00:00:20.420 make millions.
00:00:21.580 So a couple of days ago, I was at Las Vegas at the Venetians, spending some time with
00:00:24.800 other CEOs, about 60, 70 CEOs from the insurance and the financial industry.
00:00:28.660 And we were talking about different kind of things, cybersecurity, preparation, opportunity,
00:00:32.920 and one of the topics came up was, how are you preparing yourself for the next market
00:00:37.340 crash?
00:00:38.380 And so this person, well, you know, I think it's going to go for another couple more years
00:00:42.240 and I'm trying to capitalize it because we're making so much money right now.
00:00:45.020 This other person is saying this.
00:00:46.440 So it sparked a whole different conversation.
00:00:48.640 And then for me, I went back and I remembered a few different conversations.
00:00:53.260 One of them I'll share with you.
00:00:54.780 It was a drive up to Lake Arrowhead to someone's house.
00:00:58.420 We had a session in 05, 06 that reminded me exactly what took place with myself and another
00:01:05.580 entrepreneur, the decision-making process during that time that led to things changing
00:01:09.740 13, 14, 15 years later.
00:01:11.340 But before I share that story with you, I want to first share six time periods with you
00:01:15.800 that will give you an idea about when the next market crash should be taking place.
00:01:19.580 Okay, so here's what we have.
00:01:20.900 These are six of the longest economic expansions we've ever had in the last 118 years.
00:01:27.300 In the U.S. since 1900.
00:01:28.640 Here's what we're looking at.
00:01:29.400 Number six is 74 months.
00:01:31.680 The U.S. housing bubble.
00:01:32.860 It went from November of 2001, lasted until December of 2007.
00:01:36.500 By the way, I remember this date vividly.
00:01:39.920 I went to the biggest mortgage shop in San Fernando Valley off of Canoga, right off the 101 freeway.
00:01:47.480 It was a 30,000 square foot office.
00:01:50.580 I know the name.
00:01:51.820 They shut down November of 2007, a month before this took place because everybody saw what was
00:01:56.780 going on with Nina, you know, pick a payment, mortgage, all this other stuff.
00:02:01.300 I remember this vividly.
00:02:02.340 Watch this.
00:02:02.720 World War II, 81 months.
00:02:04.600 It went from June of 1938 to February of 1945.
00:02:08.500 Next, 93 months.
00:02:10.040 Reaganomics.
00:02:10.720 Cold War.
00:02:11.140 Remember, it went from November of 1982 to July of 1990.
00:02:14.720 Vietnam, 108 months is what it lasted.
00:02:18.060 February of 61 to December of 1969.
00:02:20.840 The second longest, second longest ever in the last 118 years is the current one.
00:02:26.780 115 months.
00:02:27.900 It's gone from June of 2009 till today.
00:02:30.420 And then obviously, number one is the tech bubble from March 1991, lasted until March of
00:02:35.120 2001.
00:02:36.040 122 months.
00:02:37.040 So we've got 115 months we're going right now.
00:02:40.580 This is like 115 months of you constantly growing your business.
00:02:45.360 Eventually, something happens.
00:02:48.180 Historically, we have a crisis that happens every five years, but we have a massive crisis
00:02:53.420 that happens about every decade.
00:02:55.420 And then every 20 years, something pretty wild happens that impacts thousands of people's
00:03:00.400 lives.
00:03:01.660 So now, what typically happens during these times?
00:03:04.120 You've got to realize, as the market is expanding the way it has during these times, we get greedy,
00:03:08.960 we get soft, we lose our edge, right?
00:03:11.420 Now, if you're an entrepreneur, you're watching this, and you're saying, Pat, I don't really
00:03:14.960 get it.
00:03:15.420 What's this got to do with anything?
00:03:17.740 Billions, if not trillions, are made post, post these timelines.
00:03:22.560 Not just during.
00:03:24.080 A lot of people make money and, you know, right this wave, but the people that make a lot of
00:03:29.500 money do it post.
00:03:30.940 I'll give you a perfect idea.
00:03:32.940 This happens March of 01.
00:03:35.100 Six months later, I got into the financial industry with Morgan Stanley Dean Witter.
00:03:38.400 Nobody wanted to get into stocks, bonds, mutual funds.
00:03:40.740 That's when I got in.
00:03:41.460 This happened with the housing bubble, December of 07.
00:03:45.640 16, 17 months later, I go and negotiate a big contract with one of the largest insurance
00:03:49.860 companies in the world at a time where nobody was doing it.
00:03:52.720 And everybody called us crazy.
00:03:54.920 But these are the opportunities.
00:03:56.380 Now, obviously, a lot of money has been made.
00:03:57.480 So having said that, let's talk about the 10 points.
00:03:59.020 How do you make millions during these times?
00:04:01.180 Number one, you've got to monetize fear.
00:04:03.180 Let me explain to you what I mean by monetize fear.
00:04:06.160 Monetize fear is not just you.
00:04:08.220 You have to sit there and ask yourself, when this happens in my industry as an entrepreneur,
00:04:14.980 how can I monetize fear on everybody and what kind of fear they're going to have?
00:04:19.760 For example, how are my clients going to be afraid?
00:04:22.840 How can I monetize that and help them out?
00:04:25.360 How are my partners going to be afraid?
00:04:27.720 How can I monetize that and help them out?
00:04:29.940 How are my competitors going to be afraid?
00:04:32.360 How can I monetize that?
00:04:34.060 How are my vendors going to be afraid?
00:04:36.220 How can I monetize that?
00:04:37.780 Every one of the fears, when it comes down to this, you've got to monetize.
00:04:40.840 Now, some people say, did I hear this guy say monetize fear?
00:04:44.300 Yes, of course.
00:04:45.560 You monetize fear.
00:04:46.700 That's what you do during business.
00:04:48.080 You become the solution for it.
00:04:49.400 Point number two, you exploit the unprepared.
00:04:52.440 Now, some people say, Pat, that word exploit, I don't like that word exploit.
00:04:55.840 Isn't that a negative word?
00:04:57.620 By the way, they use it in sports all the time.
00:04:59.780 Don't they say, you just saw such and such exploit their defense.
00:05:04.320 Exploit their lack of offense.
00:05:06.400 Exploit their lack of pitching.
00:05:08.260 Exploit their lack of hitting.
00:05:10.400 Exploit their lack of coaching.
00:05:12.460 Exploit whatever the weakness the opponent has.
00:05:15.000 When this happens, you've got to exploit the cocky.
00:05:18.780 Because every industry has the cocky.
00:05:21.860 And what happens when the market goes up, people show up later.
00:05:24.920 People get more casual.
00:05:26.120 People get more comfortable.
00:05:27.500 People get more confident.
00:05:29.000 People get more cocky.
00:05:30.440 And this is a perfect time to prepare yourself for.
00:05:33.820 Now, here's what you've got to realize.
00:05:35.360 If you knew, for a fact, the market crash is going to happen next six months.
00:05:38.920 It's 115 months.
00:05:40.300 It's 122 months.
00:05:41.220 Because if you knew exactly in your industry, this is going to happen next seven months,
00:05:46.700 how would you be prepared for it?
00:05:48.400 Have you thought about it?
00:05:49.800 That's the whole idea about exploiting the unprepared who are cocky. 0.99
00:05:53.480 Assume none of your competitors are going to watch this video.
00:05:56.760 Assume not everyone's going to sit and watch this video.
00:05:59.080 But you are watching this video.
00:06:00.520 How can you take advantage of that opportunity for yourself?
00:06:03.380 Number three, deliver comfort.
00:06:05.000 Let me explain what I mean by deliver comfort.
00:06:06.380 When crisis happens, this is when heroes are born.
00:06:10.780 This is when you can bring comfort to a client, to an investor, to a competitor, to an employee,
00:06:17.840 to a salesperson, to a vendor, to so many different people by delivering comfort, delivering security,
00:06:23.620 delivering a safety net.
00:06:25.260 When this takes place, you deliver comfort.
00:06:28.220 So I ask the question, in my industry, huh, what do I do?
00:06:31.720 I'm in a gas business.
00:06:32.960 I'm in this business.
00:06:33.820 I'm in real estate business, huh, how can I deliver security to X, Y, and Z?
00:06:38.360 You saw a lot of banks that were saying, look, because of what took place with 9-11,
00:06:42.640 or because of what's taking place with the mortgage crisis, we will go ahead and forgive
00:06:46.700 your mortgage payment for 90 days.
00:06:48.680 They delivered comfort during a time like this.
00:06:51.220 And some of the companies who weren't delivering comfort, guess what happened to them?
00:06:55.080 What a cold company.
00:06:56.540 Come to us.
00:06:57.360 We'll deliver comfort because we'll forgive your payment for 30 months.
00:07:00.480 Because we know what it is to go through tough times.
00:07:02.000 That delivering comfort gets loyal customers.
00:07:04.700 Number four, network like Jerry Maguire.
00:07:07.060 Let me explain what I mean by this.
00:07:08.200 If you've seen the movie Jerry Maguire, the famous line, you know, show me the money with
00:07:11.620 Cuba Gooden Jr.
00:07:12.520 And the story is about Jerry Maguire being a sports agent.
00:07:15.960 And he's working for a big agency.
00:07:17.660 And he writes this big report in the middle of the night.
00:07:20.580 And he sends it.
00:07:22.000 And he goes to work the next day.
00:07:23.440 He's afraid, like everyone's going to look at him like he's funny.
00:07:26.200 So eventually he gets fired.
00:07:27.400 Everybody takes his clients.
00:07:28.640 Then there's a scene where Jerry is trying to say, this business is about relationships.
00:07:35.500 And he takes it back on wanting to be having a relationship with his clients.
00:07:38.960 Then he realizes everyone's coming back.
00:07:41.400 Because his opponent looked at everybody as a dollar amount of renewing contract.
00:07:46.420 And there's a famous scene where the client, one of the players, is with his agent that
00:07:51.380 was all about the money.
00:07:52.840 He sees the celebration of Jerry Maguire and Cuba Gooden Jr. in the scene.
00:07:58.000 And this guy says, how come we don't hug?
00:08:00.140 The agent goes to hug him.
00:08:01.240 He elbows him like this.
00:08:02.320 Hey, get off me, right?
00:08:03.220 That is a perfect example of a time like this when this takes place.
00:08:06.100 This is when you go and meet with every single one of your clients.
00:08:09.900 You go shake their hands.
00:08:10.840 You go sit down and talk to them.
00:08:12.780 How you doing?
00:08:13.400 A lot of times, a lot of times, when a market crash takes place, people are afraid of the
00:08:18.340 phone calls.
00:08:18.880 People are afraid to pick up the phone calls.
00:08:20.620 People don't want to talk to the clients.
00:08:22.160 They're afraid that the clients are upset.
00:08:23.840 Of course they're upset.
00:08:25.200 Of course they're afraid.
00:08:26.240 Of course they're panicking.
00:08:27.420 But it's the perfect time for you to go network like Jerry Maguire and get those relationships
00:08:32.940 to be stronger.
00:08:33.580 We're saying, listen, John, this wasn't easy to pick up the call.
00:08:36.760 I know this is a difficult time.
00:08:38.180 But I want you to know something.
00:08:39.680 We're going to go through this together here.
00:08:41.360 Let me share with you what I'm thinking about.
00:08:43.000 Here's what I have in mind and what we're doing with the rest of our clients.
00:08:45.460 And you walk through it.
00:08:46.500 That doesn't mean they're going to be happy with everything that's taking place.
00:08:49.440 It just means they realize you're in the trenches with them.
00:08:53.320 Cannot tell you how much this helps you create loyalty with your clients as well.
00:08:57.080 All right, next one.
00:08:57.600 Point number five.
00:08:58.300 Double down on your message.
00:09:00.160 Let me explain to you what I mean by this.
00:09:01.340 Whatever your cause is for your company or your business, your small business, whatever
00:09:06.140 you do, double down on telling that message over and over again.
00:09:09.460 You may need to adjust your story slightly accordingly to the market crash, but double down on your
00:09:15.040 message.
00:09:15.380 Here's what we do for families.
00:09:16.420 Here's what we do as a company.
00:09:17.780 This is what we stand for.
00:09:18.780 This is our history.
00:09:19.600 This is what we're doing long term.
00:09:20.940 This is our vision.
00:09:21.800 Vision.
00:09:22.480 Double down on your message nonstop because it keeps everybody on your team focused on the
00:09:28.360 bigger picture rather than all the small stuff that's taking place on a daily basis.
00:09:31.560 Number six.
00:09:32.440 Cut the fat before the crash.
00:09:33.940 Let me explain to you what I mean by cut the fat before the crash.
00:09:36.240 You have time to cut the fat.
00:09:38.700 Listen.
00:09:39.740 Your brain.
00:09:40.600 Say you got two brains.
00:09:41.700 Here's your brain.
00:09:42.720 Here's somebody else's brain.
00:09:44.300 Your brain during the crash is trying to handle 42 different issues in your mind because you
00:09:50.960 didn't cut the fat.
00:09:52.460 Your opponent's brain has only nine issues to worry about.
00:09:56.140 Have you ever sat in a meeting with an employee, with a customer, with a job interview, with
00:10:01.000 anybody, and you're speaking to them, and that person's talking to you, and for like seven
00:10:06.240 minutes, you're not in the room.
00:10:08.220 You're thinking about how you're going to fix your mortgage.
00:10:10.760 You're thinking about how you're going to handle that payment you're going to make.
00:10:13.780 You're thinking about how you're going to help out financially with all the problems
00:10:16.560 you're facing financially.
00:10:17.840 You are not present in that moment.
00:10:19.320 Another person who was present in the moment of that appointment, they're going to outdo
00:10:24.780 you because they cut the fat before the crash that took place.
00:10:29.240 I'll give you a perfect story.
00:10:30.180 One day, I'm driving up.
00:10:32.340 I'm coming up in the industry.
00:10:33.440 I'm probably making a couple hundred thousand dollars a year at this time.
00:10:35.460 I think it's like 06, you know, and we're going up in this escalate, and we're going
00:10:39.720 to Lake Arrowhead.
00:10:40.420 It's myself, and everybody in this car is ahead of me.
00:10:45.140 I'm like the fifth guy in the car.
00:10:46.640 There's a guy sitting to my left, there's a guy sitting over here, Latino guy, African
00:10:52.360 American guy, and another guy sitting over here, okay?
00:10:55.720 We're driving up.
00:10:57.260 The guy sitting over here in the front is the number one guy in the car.
00:11:01.260 He's got a couple million dollars in a bank account.
00:11:03.660 He's telling his mentor, hey, I'm thinking about buying this house.
00:11:07.980 It's a four million dollar house.
00:11:09.200 I want to build it up.
00:11:10.420 It's in Glendora Hills.
00:11:11.600 It's a beautiful home.
00:11:12.560 I want to build this place up, and it's so exciting, and he starts telling all this stuff.
00:11:17.380 He asks his mentor, what do you think I should do?
00:11:20.260 His mentor doesn't give him any advice.
00:11:22.540 He asks his number one competitor, the guy sitting to my left, what do you think he should
00:11:27.020 do?
00:11:28.020 He says to him, he says, you know what?
00:11:31.080 You've been working very hard.
00:11:32.480 I mean, all this hard work you've been putting into this business.
00:11:34.780 I think you should go out there and buy your house.
00:11:36.460 What is the whole purpose of making all this money?
00:11:38.500 Go build this house.
00:11:39.480 Go do all this other stuff.
00:11:40.860 You deserve it.
00:11:41.560 You should get it.
00:11:42.120 He's like, oh, okay, that's how I feel.
00:11:43.380 I should get it.
00:11:44.480 Then he, his mentor, says, Patrick, what do you think he should do?
00:11:48.760 And I said, it's probably the biggest mistake you'll make in your career.
00:11:52.860 And he says, why is that?
00:11:54.280 I said, do you realize the amount of momentum you have in your business right now is something
00:11:58.980 none of us have ever seen before.
00:12:00.580 You have so much momentum.
00:12:02.120 You're making two, three, four hundred thousand dollars per month, and you want to take time
00:12:07.820 away from this momentum to build a house?
00:12:09.480 Think about if you go three more years with this momentum.
00:12:13.140 You can buy ten of those homes, but you're focused on this house.
00:12:16.600 I don't think it's a good decision.
00:12:17.840 I think it's a mistake.
00:12:19.120 You know who he ends up listening to?
00:12:20.380 He ends up listening to this guy.
00:12:21.900 Do you know what ends up happening?
00:12:22.920 He builds the house.
00:12:23.660 Beautiful house.
00:12:24.600 Beautiful home.
00:12:25.400 Gorgeous home.
00:12:26.860 We went to the house.
00:12:27.920 Beautiful property.
00:12:28.900 Post that event, the entire focus has been to make sure he doesn't lose that house.
00:12:34.480 Now imagine, say the focus was in a different place.
00:12:37.480 You drove momentum.
00:12:38.640 You could have grown your business.
00:12:40.260 When the market crash came, the mortgage crisis came, he was affected.
00:12:45.060 How many things do you think was on his mind?
00:12:46.940 Do you think he was thinking about, how am I going to save this house?
00:12:48.900 I put a million and a half dollars down payment on this house.
00:12:51.540 This house, I had to do this.
00:12:52.540 I had to do that.
00:12:53.100 So he may have saved his $2 million house.
00:12:56.460 Fast forward 10 years later, maybe he's worth $5 million, maybe $3 million.
00:13:00.860 And a lot of people who focus on expanding their business and cut the fat, they're worth a few hundred million dollars.
00:13:06.640 What's the difference?
00:13:08.020 Cut the fat before the market crash.
00:13:12.160 Do not let fat consume your brain.
00:13:14.720 Because it's so draining.
00:13:16.760 When you're trying to save yourself from losing everything and you're hanging on to things.
00:13:22.100 You're hanging on to things.
00:13:23.360 That is a draining place to be.
00:13:25.480 Versus, I'm playing loose.
00:13:26.740 I'm good.
00:13:27.280 I'm tight.
00:13:28.160 I'm lean.
00:13:28.740 I'm playing offense.
00:13:29.540 I'm going to be good to go.
00:13:30.520 Number seven, team up with aligned players.
00:13:32.600 Team up with somebody else that's aligned with your vision.
00:13:34.480 Meaning, say you're a competitor.
00:13:35.760 You're going up and you say, oh, you know what?
00:13:36.780 I like this guy.
00:13:37.420 We're thinking the same way.
00:13:38.660 Let's run together.
00:13:39.740 During a market crash, teaming up with the right person double-lates and accelerates your speed.
00:13:44.200 If you team up with the right person, during a market crash, you strengthen each other.
00:13:48.920 It doesn't just become twice the strength.
00:13:50.440 It becomes three, four times the strength because it's compounding two of the ideas together.
00:13:55.060 That person's strength is your strength.
00:13:56.220 So find a good, aligned partner to team up with to accelerate your speed during a market crash.
00:14:02.020 Number eight, double down on positive distractions.
00:14:05.080 Listen, we hear a lot of things about distractions.
00:14:07.140 Distractions.
00:14:07.640 Don't be distracted.
00:14:08.320 Don't be distracted.
00:14:08.940 Don't be distracted.
00:14:10.120 I love to be distracted.
00:14:12.040 Except I like positive distractions.
00:14:14.220 When people say distractions, they're talking about negative distractions.
00:14:17.360 During a market crash, your family's distracted.
00:14:21.600 Your employees are distracted.
00:14:23.900 Your vendors are distracted.
00:14:25.700 Your partners are distracted.
00:14:26.960 Your staff is distracted.
00:14:28.920 Everybody's distracted and worried.
00:14:31.300 Give situations to create positive distractions.
00:14:33.880 Take them to a park.
00:14:35.040 Go bowling.
00:14:35.820 Take them to movies.
00:14:36.700 Go do a game.
00:14:37.880 Bring the fun, exciting aspect to it.
00:14:40.980 Let's do something together.
00:14:42.300 Let's go on.
00:14:42.900 Bring positive distractions to the people you're running with so their brain is not consumed
00:14:48.180 by all the negative distractions from the outside.
00:14:50.340 It keeps morale high.
00:14:51.580 And if it keeps morale high, eventually when the market crash goes by, everybody forgot
00:14:55.960 about all the negativities.
00:14:57.160 You've overcome it.
00:14:57.780 You're winning, dominating your marketplace, whatever industry you're part of.
00:15:00.940 And last but not least, number nine.
00:15:01.980 I told you ten, but I'll give you number nine.
00:15:04.620 Equip your team with all possible audibles.
00:15:07.420 Let me explain to you what I mean.
00:15:08.640 Have a meeting with your team, almost like a football coach, and create a playbook.
00:15:13.040 If this happens with the market, we'll do this.
00:15:16.180 If this happens here, we do this.
00:15:17.620 If that happens, we'll do these three things.
00:15:19.240 If that happens, we can do this.
00:15:20.740 If this happens, we do this.
00:15:22.320 What about this happens?
00:15:23.160 We do this.
00:15:23.660 And talk amongst each other, and allow your main executive salespeople, leaders to bring
00:15:28.840 up whatever that could possibly happen, and identify audibles.
00:15:31.900 Hey, what do you think we need to be doing if we do this?
00:15:33.800 I would do this.
00:15:34.520 I would do that.
00:15:35.140 I would do this.
00:15:35.660 I would call this person.
00:15:36.320 I would talk to that person.
00:15:37.000 I would team up with this person.
00:15:37.760 I would do that.
00:15:38.180 All the audibles.
00:15:38.820 So the more audibles you have laid out amongst everybody, when this comes, no one's worried.
00:15:43.860 Thanks, everybody, for listening.
00:15:45.480 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
00:15:50.080 Give us a five-star.
00:15:51.380 Write a review if you haven't already.
00:15:52.980 And if you have any questions for me that you may have, you can always find me on Snapchat,
00:15:57.040 Instagram, Facebook, or YouTube.
00:15:59.000 Just search my name, PatrickBitDavid.
00:16:00.760 And I actually do respond back when you snap me or send me a message on Instagram.
00:16:05.920 With that being said, have a great day today.
00:16:07.640 Take care, everybody.
00:16:08.360 Bye-bye.