Episode 293： NEXT MARKET CRASH： 10 Ways To Make Millions As An Entrepreneur
Episode Stats
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Summary
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
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30 seconds, one time for the underdog, technician sequence start.
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Let me see you put them up, reach the sky, touch the stars up above, cause it's one time
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I'm Patrick Bedewe, host of ITIM, and today I'm going to talk to you about 10 ways to
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So a couple of days ago, I was at Las Vegas at the Venetians, spending some time with
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other CEOs, about 60, 70 CEOs from the insurance and the financial industry.
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And we were talking about different kind of things, cybersecurity, preparation, opportunity,
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and one of the topics came up was, how are you preparing yourself for the next market
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And so this person, well, you know, I think it's going to go for another couple more years
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and I'm trying to capitalize it because we're making so much money right now.
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And then for me, I went back and I remembered a few different conversations.
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It was a drive up to Lake Arrowhead to someone's house.
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We had a session in 05, 06 that reminded me exactly what took place with myself and another
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entrepreneur, the decision-making process during that time that led to things changing
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But before I share that story with you, I want to first share six time periods with you
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that will give you an idea about when the next market crash should be taking place.
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These are six of the longest economic expansions we've ever had in the last 118 years.
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It went from November of 2001, lasted until December of 2007.
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I went to the biggest mortgage shop in San Fernando Valley off of Canoga, right off the 101 freeway.
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They shut down November of 2007, a month before this took place because everybody saw what was
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going on with Nina, you know, pick a payment, mortgage, all this other stuff.
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Remember, it went from November of 1982 to July of 1990.
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The second longest, second longest ever in the last 118 years is the current one.
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And then obviously, number one is the tech bubble from March 1991, lasted until March of
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This is like 115 months of you constantly growing your business.
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Historically, we have a crisis that happens every five years, but we have a massive crisis
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And then every 20 years, something pretty wild happens that impacts thousands of people's
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So now, what typically happens during these times?
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You've got to realize, as the market is expanding the way it has during these times, we get greedy,
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Now, if you're an entrepreneur, you're watching this, and you're saying, Pat, I don't really
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Billions, if not trillions, are made post, post these timelines.
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A lot of people make money and, you know, right this wave, but the people that make a lot of
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Six months later, I got into the financial industry with Morgan Stanley Dean Witter.
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Nobody wanted to get into stocks, bonds, mutual funds.
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This happened with the housing bubble, December of 07.
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16, 17 months later, I go and negotiate a big contract with one of the largest insurance
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companies in the world at a time where nobody was doing it.
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So having said that, let's talk about the 10 points.
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Let me explain to you what I mean by monetize fear.
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You have to sit there and ask yourself, when this happens in my industry as an entrepreneur,
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how can I monetize fear on everybody and what kind of fear they're going to have?
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For example, how are my clients going to be afraid?
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Every one of the fears, when it comes down to this, you've got to monetize.
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Now, some people say, did I hear this guy say monetize fear?
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Now, some people say, Pat, that word exploit, I don't like that word exploit.
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By the way, they use it in sports all the time.
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Don't they say, you just saw such and such exploit their defense.
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Exploit whatever the weakness the opponent has.
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When this happens, you've got to exploit the cocky.
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And what happens when the market goes up, people show up later.
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And this is a perfect time to prepare yourself for.
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If you knew, for a fact, the market crash is going to happen next six months.
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Because if you knew exactly in your industry, this is going to happen next seven months,
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That's the whole idea about exploiting the unprepared who are cocky.
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Assume none of your competitors are going to watch this video.
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Assume not everyone's going to sit and watch this video.
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How can you take advantage of that opportunity for yourself?
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When crisis happens, this is when heroes are born.
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This is when you can bring comfort to a client, to an investor, to a competitor, to an employee,
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to a salesperson, to a vendor, to so many different people by delivering comfort, delivering security,
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So I ask the question, in my industry, huh, what do I do?
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I'm in real estate business, huh, how can I deliver security to X, Y, and Z?
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You saw a lot of banks that were saying, look, because of what took place with 9-11,
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or because of what's taking place with the mortgage crisis, we will go ahead and forgive
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They delivered comfort during a time like this.
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And some of the companies who weren't delivering comfort, guess what happened to them?
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We'll deliver comfort because we'll forgive your payment for 30 months.
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Because we know what it is to go through tough times.
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If you've seen the movie Jerry Maguire, the famous line, you know, show me the money with
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And the story is about Jerry Maguire being a sports agent.
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And he writes this big report in the middle of the night.
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He's afraid, like everyone's going to look at him like he's funny.
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Then there's a scene where Jerry is trying to say, this business is about relationships.
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And he takes it back on wanting to be having a relationship with his clients.
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Because his opponent looked at everybody as a dollar amount of renewing contract.
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And there's a famous scene where the client, one of the players, is with his agent that
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He sees the celebration of Jerry Maguire and Cuba Gooden Jr. in the scene.
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That is a perfect example of a time like this when this takes place.
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This is when you go and meet with every single one of your clients.
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A lot of times, a lot of times, when a market crash takes place, people are afraid of the
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But it's the perfect time for you to go network like Jerry Maguire and get those relationships
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We're saying, listen, John, this wasn't easy to pick up the call.
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Here's what I have in mind and what we're doing with the rest of our clients.
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That doesn't mean they're going to be happy with everything that's taking place.
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It just means they realize you're in the trenches with them.
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Cannot tell you how much this helps you create loyalty with your clients as well.
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Whatever your cause is for your company or your business, your small business, whatever
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you do, double down on telling that message over and over again.
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You may need to adjust your story slightly accordingly to the market crash, but double down on your
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Double down on your message nonstop because it keeps everybody on your team focused on the
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bigger picture rather than all the small stuff that's taking place on a daily basis.
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Let me explain to you what I mean by cut the fat before the crash.
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Your brain during the crash is trying to handle 42 different issues in your mind because you
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Your opponent's brain has only nine issues to worry about.
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Have you ever sat in a meeting with an employee, with a customer, with a job interview, with
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anybody, and you're speaking to them, and that person's talking to you, and for like seven
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You're thinking about how you're going to fix your mortgage.
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You're thinking about how you're going to handle that payment you're going to make.
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You're thinking about how you're going to help out financially with all the problems
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Another person who was present in the moment of that appointment, they're going to outdo
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you because they cut the fat before the crash that took place.
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I'm probably making a couple hundred thousand dollars a year at this time.
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I think it's like 06, you know, and we're going up in this escalate, and we're going
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It's myself, and everybody in this car is ahead of me.
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There's a guy sitting to my left, there's a guy sitting over here, Latino guy, African
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American guy, and another guy sitting over here, okay?
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The guy sitting over here in the front is the number one guy in the car.
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He's got a couple million dollars in a bank account.
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He's telling his mentor, hey, I'm thinking about buying this house.
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I want to build this place up, and it's so exciting, and he starts telling all this stuff.
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He asks his mentor, what do you think I should do?
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He asks his number one competitor, the guy sitting to my left, what do you think he should
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I mean, all this hard work you've been putting into this business.
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I think you should go out there and buy your house.
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What is the whole purpose of making all this money?
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Then he, his mentor, says, Patrick, what do you think he should do?
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And I said, it's probably the biggest mistake you'll make in your career.
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I said, do you realize the amount of momentum you have in your business right now is something
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You're making two, three, four hundred thousand dollars per month, and you want to take time
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Think about if you go three more years with this momentum.
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You can buy ten of those homes, but you're focused on this house.
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Post that event, the entire focus has been to make sure he doesn't lose that house.
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Now imagine, say the focus was in a different place.
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When the market crash came, the mortgage crisis came, he was affected.
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Do you think he was thinking about, how am I going to save this house?
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I put a million and a half dollars down payment on this house.
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Fast forward 10 years later, maybe he's worth $5 million, maybe $3 million.
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And a lot of people who focus on expanding their business and cut the fat, they're worth a few hundred million dollars.
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When you're trying to save yourself from losing everything and you're hanging on to things.
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Team up with somebody else that's aligned with your vision.
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You're going up and you say, oh, you know what?
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During a market crash, teaming up with the right person double-lates and accelerates your speed.
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If you team up with the right person, during a market crash, you strengthen each other.
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It becomes three, four times the strength because it's compounding two of the ideas together.
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So find a good, aligned partner to team up with to accelerate your speed during a market crash.
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Number eight, double down on positive distractions.
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Listen, we hear a lot of things about distractions.
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When people say distractions, they're talking about negative distractions.
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During a market crash, your family's distracted.
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Give situations to create positive distractions.
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Bring positive distractions to the people you're running with so their brain is not consumed
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by all the negative distractions from the outside.
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And if it keeps morale high, eventually when the market crash goes by, everybody forgot
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You're winning, dominating your marketplace, whatever industry you're part of.
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Have a meeting with your team, almost like a football coach, and create a playbook.
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If this happens with the market, we'll do this.
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And talk amongst each other, and allow your main executive salespeople, leaders to bring
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up whatever that could possibly happen, and identify audibles.
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Hey, what do you think we need to be doing if we do this?
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So the more audibles you have laid out amongst everybody, when this comes, no one's worried.
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And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
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And if you have any questions for me that you may have, you can always find me on Snapchat,
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And I actually do respond back when you snap me or send me a message on Instagram.