Valuetainment - February 19, 2020


Episode 430： 10 Situations You’ll Face As An Entrepreneur


Episode Stats

Length

14 minutes

Words per Minute

229.18582

Word Count

3,407

Sentence Count

167

Hate Speech Sentences

1


Summary


Transcript

00:00:00.300 30 seconds.
00:00:01.880 Did you ever think you would make it?
00:00:04.200 I feel I'm so close I could take sweet victory.
00:00:07.620 I know this life meant for me.
00:00:10.740 Yeah, why would you bet on Goliath when we got Bet David?
00:00:14.540 Valuetainment, giving value is contagious.
00:00:16.420 This world of entrepreneurs, we get no value to haters.
00:00:19.160 How they run, homie, look what I become.
00:00:21.400 I'm the one.
00:00:22.540 I'm Patrick Bet David, your host of Valuetainment.
00:00:24.320 Today we're going to talk about 10 situations you'll face as an entrepreneur.
00:00:27.880 So the first one's very simple.
00:00:28.900 Every entrepreneur that starts a business, typically you have somebody that's working
00:00:32.880 with you that's either a relative or a friend.
00:00:36.500 So now when you work with a relative and a friend, at first everything's exciting.
00:00:40.780 Oh my gosh, we're going to build something big together.
00:00:42.600 We're going to go out there and do this and we're going to go out there and do that.
00:00:44.600 And all of a sudden the personalities can work together.
00:00:48.080 And one of the situations you're going to face is having to fire a friend or a relative.
00:00:53.280 And it's very, very hard to do for most first-time entrepreneurs because it's friendship.
00:01:00.840 But in reality, when you're running a business, the priority of a business is to stay in business,
00:01:06.220 even if it means having to fire a relative or a best friend in the world.
00:01:10.880 Because if the business goes out of business, everybody else is affected.
00:01:14.420 This next one is very interesting because most people, when you start a business, you're
00:01:18.060 kind of like, oh my gosh, we're going to go out there, we're going to do this, I'm going
00:01:20.100 to build this business.
00:01:21.180 We're going to start regional, then we're going to go national, then we're going to go
00:01:23.960 international, we'll be global, we'll be so big, right?
00:01:26.820 And you think you're fully in.
00:01:28.760 You think you're fully in, right?
00:01:30.740 I put $100,000 into it, I put $50,000 into it, I put a half a million dollars into it,
00:01:35.180 I put my life savings into it, I'm all in.
00:01:38.040 But there's still another phase of all in, phase of all in that you're going to face.
00:01:43.200 And when you get there, that's when, as hard as you thought, because at the beginning, anybody
00:01:48.320 that starts a business, they don't really think about how tough this business is going
00:01:51.260 to be.
00:01:51.680 You typically, at first, think it's a lot easier than it's really going to be.
00:01:55.100 You're like, oh my gosh, this is going to be great, all our dreams are going to become
00:01:58.100 a reality.
00:01:58.980 Then you realize the real challenge of becoming an entrepreneur.
00:02:03.540 And in that moment is when you realize if you're 100% in or not, because it's not going
00:02:10.880 to be an easy moment.
00:02:11.720 It's going to be a very, very tough moment, where almost everything you look at doesn't
00:02:17.300 make sense.
00:02:18.120 Nothing makes sense for you to continue.
00:02:20.820 On paper, logically, nothing makes sense why you could make it or why you ought to continue,
00:02:28.100 but it's in that moment where you find out if you're a person that's all in or everybody
00:02:32.940 around you realize this, slowly but surely, you're finding your way out of being an entrepreneur
00:02:38.060 back to being an employee.
00:02:40.040 And you will know when you get into that moment, because that moment, no one's going to know
00:02:43.200 except for one person, and that's you.
00:02:44.920 All right, so this next one's tough, because when you typically make the transition of being
00:02:48.300 an employee to wanting to be an entrepreneur, you still have a lot of friends that are employees
00:02:52.400 who you want to associate yourself with, but you're now an entrepreneur.
00:02:54.880 An entrepreneur, it's almost like going from babysitting someone's baby to now you have a baby,
00:03:01.280 and when you have a newborn baby, you can't go watch movies, you can't go do a lot of
00:03:05.900 things when you have a newborn baby, because that newborn baby needs to be fed, diapers
00:03:09.440 needs to be changed, they need attention, they're crying, they're waking up three, four times
00:03:12.860 throughout the night, and that's going to last a year and a half, two years, three years.
00:03:17.060 That's the startup phase.
00:03:18.900 So when you're married with kids, trying to hang out with friends that are single with
00:03:23.540 no kids going to nightclubs, that's going to clash.
00:03:26.220 And these guys are going to say, I thought we were friends.
00:03:27.940 You know, just like your buddies that have regular jobs, they're going to say, wait a
00:03:31.180 minute, we used to hang out together, it seems like everything about your life is now your
00:03:35.320 business.
00:03:35.920 What happened to this guy?
00:03:37.280 All you care about is money, and you're not going to have an answer for them at first.
00:03:41.460 But now that you watched the video, now you know.
00:03:43.800 In order to make the business work for a period, you have to be all in, and this means most likely
00:03:50.140 you may have to cut some of your hobbies that you were doing before, you won't be able
00:03:53.420 to do right now, because if you don't, stay focused on the business, this thing's going to go out of
00:03:57.560 business, and you're eventually going to find yourself on this side.
00:03:59.700 So the tipping point is going to be at one point where you're going to have to make a
00:04:03.060 decision and say no to some of your friends that don't understand what it is to be an
00:04:06.900 entrepreneur.
00:04:07.560 So this next one's a little bit confusing, because when you start the business, you're
00:04:10.640 going to have certain competitors that are supportive of you.
00:04:13.040 And they're kind of like, oh, John, listen, you're going to get it.
00:04:15.260 Go get them.
00:04:15.720 It's going to be all great.
00:04:16.820 And these competitors who were once supportive now become your enemies, and they don't like
00:04:22.520 you anymore.
00:04:23.140 They become haters.
00:04:24.220 They start talking behind your back.
00:04:25.660 So what does that really mean?
00:04:26.600 This guy used to tell me, he's supporting my decision.
00:04:29.660 Why is he now all upset with me?
00:04:31.520 Here's why.
00:04:32.560 The reality of it is, when he used to support you when you were small, he never thought you
00:04:37.980 were going to get bigger.
00:04:39.220 He never thought you were going to make it.
00:04:40.980 Because if he knew you were going to get bigger, and you were going to compete against
00:04:44.620 them, he would have never liked you in the first place, and he would have never allowed
00:04:48.340 you to compete with them, because that was never the intention.
00:04:51.200 The intention was, you're always going to stay small, and you're never going to take a market
00:04:54.860 share.
00:04:55.100 But the bigger you get, and you take some market share away from certain people, those
00:04:59.360 competitors that were supportive are officially haters of yours.
00:05:03.000 So this next one is a contradiction of what I just said.
00:05:05.080 Let me explain to you why this is a contradiction of what I just said.
00:05:07.420 So remember those same competitors that used to support you.
00:05:10.620 Then you started getting big.
00:05:12.140 Now they don't like you, and they hate you.
00:05:13.880 And then if you experience this next part, which is magical, is you get so big that those
00:05:21.740 competitors that ended up hating you end up loving you and becoming supportive of you,
00:05:26.980 because you're no longer in the same league.
00:05:28.940 You're in a different league.
00:05:30.160 They'll call you, and now they are supportive.
00:05:33.120 They'll call you because there's now a level of admiration.
00:05:36.360 But to get to this level, you have to go through the level of hate.
00:05:40.860 And that hate may last a few years.
00:05:42.740 It may be five, ten years until they end up saying, you know what?
00:05:46.480 You got to just give it up to this guy.
00:05:47.840 This guy's just better than us.
00:05:48.920 And you know what?
00:05:49.400 I love and respect this guy.
00:05:50.780 Much love to you.
00:05:51.480 Let me just call you.
00:05:52.040 Hey, man, you know, I used to hate on you.
00:05:54.040 I used to say a lot of bad things about you.
00:05:55.640 But I love you, and I love what you're doing.
00:05:56.900 I got to give you respect.
00:05:57.740 You're just kicking everybody's butt.
00:05:59.260 More, you know, more love to you.
00:06:00.600 Keep at it.
00:06:01.160 So proud of you.
00:06:01.740 Keep at it.
00:06:02.180 Whatever I can do to help you out, I'm cheering you on.
00:06:04.300 I hate the fact that you beat me, but guess what?
00:06:06.560 We now know you're better than us in whatever we're doing.
00:06:08.780 That happens.
00:06:09.660 When that happens, that's an incredible feeling, but it takes about a decade for that to happen
00:06:14.780 to you.
00:06:15.660 All right, so this next one is interesting because you'll be building your business, and at first
00:06:19.180 when you're not taking a lot of money out because you're investing back into your business,
00:06:21.700 you'll get to a point where you can now take the profits out.
00:06:24.680 And sometimes while you're going and you want to take the profits out, if you take too much
00:06:28.720 profits out, you can no longer put back into the business to grow, whether it's marketing,
00:06:31.860 hiring, support, growth, expansion, and sometimes you will be tempted.
00:06:37.240 There'll come a time where you go to your checking account, your business checking account, and
00:06:39.860 say, oh my gosh, we have some money in this checking account.
00:06:43.140 I am tempted to take $2 million off the table.
00:06:45.840 I am tempted to take $1 million off the table.
00:06:48.200 Whatever size of the business you got, I'm tempted to take $10 million off the table.
00:06:51.640 In that moment sometimes, if you're going to taking the profits out versus putting back
00:06:57.300 into the business, sometimes you jeopardize long-term valuation of building a really powerful
00:07:03.260 business, and you're tempted over taking short-term profits out, and you will be tempted to do
00:07:08.380 that.
00:07:08.680 This doesn't mean you don't set a little bit of money aside to save yourself, set aside
00:07:13.120 for yourself and your family in savings, but if you go into this mode of constantly taking
00:07:17.020 profits out, eventually long-term valuation and potential the company keeps going lower
00:07:21.400 and lower and lower.
00:07:22.260 So maybe that is what you want to do.
00:07:23.560 Maybe you just want to take the profits.
00:07:24.680 You don't care about long-term valuation, but if you do care about this, you cannot be
00:07:28.420 tempted to take the short-term profits out because long-term valuation goes down.
00:07:31.660 This next one is also tough for first-time entrepreneurs because when you become an
00:07:35.380 entrepreneur, there's going to come a time where you have to say no to your family when
00:07:40.260 you used to say yes to, meaning maybe you used to say, yes, we can go out there and
00:07:44.400 buy this, and we can go out there and do this, and now money's a little bit tighter
00:07:47.360 because you're running a business.
00:07:48.680 That money's now being invested into the business, and you're a wife or your husband or your
00:07:52.440 spouse or your kids or partner or parents or whoever it is, they were accustomed to you
00:07:57.080 saying yes to a lot of the expenditure you had before.
00:07:59.480 You can't right now because for a good year, two-year, three-year period, you've got to
00:08:02.860 stay tight, and that money's got to get back into the business.
00:08:05.700 It creates friction sometimes because if your spouse doesn't really know about the commitments
00:08:11.780 you made and the sacrifices that come with it, if they're not aware of it and you don't
00:08:16.220 have the conversation with them, there's going to be some friction between the two of you,
00:08:19.080 and you're going to have that conversation.
00:08:20.580 So instead of getting to the point of having that conversation, just make sure you talk
00:08:24.660 about it up front, and everyone knows we're going to have to be tight in certain areas
00:08:28.800 because daddy or mommy have chosen to start a business for themselves, and there's going
00:08:33.140 to be a little bit of period where we may not have money to do the things that we used
00:08:36.400 to do, that trip, that this and that.
00:08:38.740 We have to be a little bit tighter because we're going for the long-term victory.
00:08:41.640 So we've talked a lot about business, family, all this other stuff.
00:08:44.320 One of the things that could happen is when you build your business, you will face a situation
00:08:48.160 where departments go against each other.
00:08:50.260 Maybe sales is going to go against support, or investors don't like the board, or you
00:08:54.500 don't like the board, board doesn't like you, you know, your engineers don't get along with
00:08:59.280 sales, marketing doesn't get along with sales.
00:09:01.380 There's going to be some kind of a division that happens on the team because typically when
00:09:05.080 a company's being ran, if you don't do it properly from the top, every department has
00:09:10.140 to know that their role is very important.
00:09:11.760 Every department has to know that their role is very important.
00:09:14.220 And at the same time, every department also has to know who is more important, meaning,
00:09:19.580 for instance, we'll have a meeting here, and say a home office kind of starts being a little
00:09:24.820 bit too tough on sales, I'll sit down and I'll say, listen, I just want to remind everybody,
00:09:28.040 without sales, this company doesn't exist.
00:09:30.060 Matter of fact, without sales, no company exists.
00:09:32.480 Sometimes, just like the government of a country starts thinking they're more important than
00:09:36.740 the job creators and the entrepreneurs, sometimes corporate forgets the fact that the creative
00:09:42.060 people or the salespeople are really the ones that are holding the company together, and
00:09:45.760 this is a support team.
00:09:46.960 There's got to be respect here, but there's got to be an admiration from here to know that
00:09:50.300 these guys are working 24-7.
00:09:52.280 These guys may be working eight, ten hours a day, five days a week, but they're working
00:09:55.600 six, seven days a week, going all over the place, away from their family to sell.
00:09:58.920 There has to be an expectation of what is the priority, but there also has to be a very clear
00:10:04.040 understanding from everybody that every single job done by every single person is critical
00:10:09.740 to the growth of the company.
00:10:11.240 If that conversation's not had, then you're going to have some friction amongst different
00:10:15.360 teams.
00:10:15.920 And if there's division, then bad things can happen to your business.
00:10:18.840 So you as a leader got to make sure you always bring everybody together, everybody has perspective
00:10:21.900 to understand what roles they play.
00:10:23.460 Everybody gets properly recognized, encouraged, praised, so then from there, they're working
00:10:27.460 as a team like they once used to.
00:10:29.860 You know, this next one is tricky because when you're building your business and all of a sudden
00:10:34.200 you have a lot of leverage and you have the ability to do certain things, people are going
00:10:38.840 to bring opportunities to you that are kind of like shortcuts.
00:10:41.180 And I remember this happened to us with the business throughout my career.
00:10:44.560 Hey, if you do this, no one's going to know you'll make an additional million dollars on
00:10:47.400 the side.
00:10:47.720 If you do this, no one will know you'll make an additional two million dollars on the
00:10:50.440 side or half a million dollars on the side.
00:10:52.480 And when you're only making two million dollar your income and somebody says you're going
00:10:56.220 to make an additional two million dollar your income or million dollar income, that's
00:10:59.100 a lot of money.
00:10:59.760 That's not a little money.
00:11:00.760 That's a lot of money when you kind of are being tempted by it.
00:11:03.560 So meaning, if the real idea of the business you're building long term is to truly build
00:11:10.420 a business that grows and becomes a legacy company, you can't fall for the shortcuts.
00:11:16.700 Your character will be tested many, many, many times.
00:11:19.860 Now I'm not talking about like additional sources of income to generate for the business
00:11:24.520 that's the right way of doing it.
00:11:26.240 But I am talking about you're going to get certain offers and opportunities that are going
00:11:30.800 to hurt your core, your core fundamental philosophy of how the business was built.
00:11:36.920 If you start trying to go for all the shortcuts, this is going to break.
00:11:40.380 And a lot of times when business people are entrepreneurs are building a business, they
00:11:44.660 start looking so much this way that they forget the core that's holding it all together.
00:11:49.840 So while they're doing this, this collapses.
00:11:52.000 And once this collapses, you don't have time to do this because you're trying to do this
00:11:54.720 and it's too late already.
00:11:55.740 You lost it already.
00:11:56.820 You got to make sure you get this bigger and every once in a while you're looking for opportunities
00:11:59.900 that's going to help this continuously get bigger.
00:12:02.500 Not just another shortcut that you're going to have out there.
00:12:04.580 You will face it when you do.
00:12:06.140 Just make sure you make the right decision because it's going to hurt you long term if
00:12:08.760 you don't.
00:12:09.360 Listen, last one's something no one will know when you're facing this.
00:12:13.180 Nobody's going to know you're going to be facing this because it's all in here when you
00:12:16.860 go through this.
00:12:17.420 And here's what it is.
00:12:18.760 There will come a time where you're still in a business mode, but your business is making
00:12:24.140 money, you're growing, and you are no longer the same hard charging leader with high standards
00:12:31.640 and expectations of wanting to deliver the right product and all this stuff because now
00:12:35.900 you're going to nice dinners and you got money in the bank and maybe driving a nice car,
00:12:40.140 living in a nice house.
00:12:41.240 And you're no longer stressed like when you used to be feeling like, oh my gosh, we're
00:12:45.660 going to run out of money.
00:12:46.380 That idea of the survival mode, that's gone and you get casual.
00:12:50.880 And when you get casual, you become casual with all the departments, salespeople, competitors,
00:12:54.840 everybody, and then boom, you're caught.
00:12:56.740 This happens in boxing, this happens in fighting, this happens in sports, this happens in every
00:13:00.780 single thing.
00:13:01.340 And if it happens in a business world, the way you typically get knocked out is somebody
00:13:06.880 internally decides to turn against you or an external competitor says, I'm going to
00:13:11.440 go out there and get this guy because he's getting softer or a new competitor's coming up
00:13:15.400 if you get too soft or your habits of being casual gets rubbed off to your management team
00:13:21.420 and your C-suite executives, then they pass it to their directors, the directors pass
00:13:25.160 it to their employees.
00:13:26.360 Now everybody's leaving on Fridays early and you're kind of like, oh, we're going to take
00:13:29.640 three days off, four days off, five days off, one day off.
00:13:32.320 Everything becomes a little too comfortable.
00:13:34.000 And when that happens, you already know what happens when that happens in wars, when that
00:13:40.440 happens in sports, when that happens on teams, when that happens in businesses, somebody hungrier
00:13:46.020 than you with bigger vision, higher standards and expectations is going to come and put you
00:13:50.760 out of business because that's how business works.
00:13:53.360 The moment somebody gets soft, another person with a clear vision, higher standard will attract
00:13:57.500 the right talent and they essentially will come out and say, your time's been had, five,
00:14:02.080 10, 15 years, now it's our turn, please, your market share's coming to us.
00:14:06.580 You may not go out of business, but you may lose your market share from 8% to 4% to 2%.
00:14:11.020 That is a form of going out of business because you're getting smaller and smaller.
00:14:14.400 So that is why it's critical to maintain high standards and expectations.
00:14:17.380 That is the only way continuously to grow year after year after year after year after year,
00:14:22.280 even when bad market times come up.
00:14:23.920 So don't be tempted to lower the standards because you will be when you start making good
00:14:27.240 money.
00:14:27.600 Thanks everybody for listening.
00:14:28.700 And by the way, if you haven't already subscribed to Valuetainment on iTunes,
00:14:32.220 please do so.
00:14:33.440 Give us a five star, write a review if you haven't already.
00:14:36.340 And if you have any questions for me that you may have, you can always find me on Snapchat,
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00:14:49.040 With that being said, have a great day today.
00:14:50.840 Take care everybody.
00:14:51.600 Bye-bye.
00:14:51.840 Bye-bye.
00:14:51.900 Bye-bye.
00:14:51.920 Bye-bye.