Valuetainment - July 15, 2020


Episode 492： 10 Business Principles By Patrick Bet-David From “Your Next Five Moves”


Episode Stats


Length

7 minutes

Words per minute

223.64868

Word count

1,684

Sentence count

166

Harmful content

Misogyny

1

sentences flagged


Summary

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

In this episode, Pat and John talk about their business principles and why it's important to have your own business principles as well. Pat: No one has 100% job security, including the founder and CEO What brought us here won't take us to the next level I m going to micromanage you until I trust you

Transcript

Transcript generated with Whisper (turbo).
Misogyny classifications generated with MilaNLProc/bert-base-uncased-ear-misogyny .
00:00:00.000 Let's just say you come up and you say, Pat, I want you to go into business with me, meaning
00:00:25.420 I go into business with you.
00:00:26.740 And I say, okay, why don't you tell me about your business and what you do?
00:00:29.340 We sit down, we talk, phase one, first meeting, I love it.
00:00:32.360 We go into phase two.
00:00:33.620 You show me a little bit more, I love it even more.
00:00:35.500 Phase three, we're sitting there and I say, you know what?
00:00:37.640 Before we go into business together, I have a question for you.
00:00:39.960 You say, what's the question?
00:00:41.460 What are some of your business principles?
00:00:44.100 You say, what do you mean?
00:00:45.420 Well, if we were to work together, there's going to be friction, issues, challenges.
00:00:49.460 What are some of your business principles that you built your business on?
00:00:53.000 And you say, I don't know.
00:00:54.920 Today, I want to share with you some of my business principles, and I'll give you feedback
00:00:58.960 why it's very important for you to have your own business principles as well.
00:01:02.280 So let's get right into it.
00:01:03.700 My business principles, here are some of them.
00:01:06.240 Number one, no one has 100% job security, including the founder or the CEO.
00:01:11.900 Let me say that one more time.
00:01:13.040 No one has 100% job security, including the founder or the CEO.
00:01:17.320 Now you may say, Pat, if you're the CEO or the founder, don't you have 100% job security?
00:01:21.380 No.
00:01:22.240 If you stop showing up to work, and if you don't come to grow the company, you're staying
00:01:25.900 home all day, golfing all day, I'm sorry, you don't have job security.
00:01:29.080 I'm probably going to go to another place and run with somebody else, and your clients
00:01:32.240 are probably going to leave you.
00:01:33.380 So business principle number one, nobody has 100% job security, including the CEO and the
00:01:38.680 founder.
00:01:38.920 Number two, what brought us here won't take us to the next level.
00:01:43.400 I just brought on a new executive.
00:01:44.900 We're sitting on, as we're going through the process of hiring him, and we're doing all the
00:01:48.440 paperwork, I said, listen, what's the biggest thing you've ever done in your life?
00:01:51.980 And he tells me, I've done this, I've done this, I've done that.
00:01:53.940 I said, okay.
00:01:54.760 I said, where do you see we can go with value attainment and what we can do here?
00:01:59.220 He says, I think we can do this, and I think we can do that, and I think we can build this
00:02:03.060 big of a business.
00:02:03.880 I said, I love it.
00:02:04.680 You fired me up.
00:02:05.300 Now here's a question.
00:02:06.500 If you've never built something like that, what do you think it's going to take to go somewhere
00:02:10.720 like this that you just painted a division?
00:02:12.880 He says, I don't know.
00:02:15.180 I said, that's the point.
00:02:15.940 Second, what took you here ain't going to take you there.
00:02:19.420 To go there, you need to change, I need to change.
00:02:21.980 So the mindset of we always have to improve.
00:02:24.260 That's the second principle.
00:02:25.860 Third one, I micromanage until I trust you.
00:02:29.900 What does that mean?
00:02:31.040 Well, John, if we work together, this is, let's just say I'm sharing my principles with
00:02:34.180 you, I'm going to micromanage you until I trust you.
00:02:37.360 What does that mean?
00:02:38.300 Well, I don't know how you work.
00:02:39.440 I mean, we went through the interview.
00:02:40.640 We sat down, we had dinner, we broke bread.
00:02:42.500 I met your wife, you met my wife.
00:02:43.800 Everything's looking good, but I don't know how disciplined you are.
00:02:46.960 I don't know what time you come in in the morning.
00:02:48.820 I don't know what time you leave.
00:02:49.760 I don't know how long of a lunch you take.
00:02:51.300 I don't know if you deliver.
00:02:52.220 I don't know if you're just a talker.
00:02:53.340 I don't know if you don't keep your, I don't know.
00:02:55.420 But I'm going to tell you one thing here.
00:02:56.880 I'm going to micromanage and watch you like a hawk until I trust you.
00:02:59.940 Once I do, then there's distance and there's freedom.
00:03:02.820 But until there, I'm going to micromanage.
00:03:04.300 Are you comfortable with that?
00:03:05.640 I don't know if I like that, but I totally understand at the beginning.
00:03:08.180 Great.
00:03:08.380 Number four, never compromise your non-negotiables.
00:03:12.220 So whatever I'm sharing with you, I don't compromise these non-negotiables.
00:03:16.260 I have in the past before, every single time it costs me money.
00:03:19.840 So guess what?
00:03:20.500 I don't compromise my non-negotiables.
00:03:22.500 Next one, create positive, pure pressure by challenging one another.
00:03:27.820 What does this mean?
00:03:28.740 Here's what it means.
00:03:29.800 When we work together, I'm not going to be able to solve all your problems for you.
00:03:33.960 There's going to be times that culturally, I can't teach you everything.
00:03:36.720 But the team, the culture that we have, there's going to be some kind of pressure you're going
00:03:41.080 to feel, not from me, from the culture.
00:03:43.600 We have created a certain culture that provides pure pressure for you to step up your game.
00:03:48.540 It's the kind of an environment we have.
00:03:49.780 Okay, I get it.
00:03:50.740 Fine.
00:03:51.500 Next one.
00:03:52.020 Number six, our entire focus is to always beat our prior best.
00:03:57.160 If the most money we ever made in a month is $100,000, I want to make $200,000.
00:04:00.980 If the most we've ever made is a million, I want to make $2 million.
00:04:03.300 If it's $10 million, I want to make $20 million.
00:04:04.700 Anything we've ever done, the whole idea is to beat our prior best.
00:04:09.880 You with your department, me with my department.
00:04:12.080 We do that.
00:04:13.000 We'll eventually get to that vision that we want to get to.
00:04:14.940 I think that's fair.
00:04:15.820 Great.
00:04:16.600 Next.
00:04:17.520 Treat the company's money like it's your own money.
00:04:20.340 What does that mean?
00:04:21.140 Let me explain to you.
00:04:23.240 If the bank account you look at, we have $7 million in there.
00:04:26.860 And you decide to go buy cameras.
00:04:28.540 And we don't need a $50,000 camera, but it's not your own money.
00:04:32.400 So you decided to go get four $50,000 cameras.
00:04:34.960 But if it was your own money, you would have only gotten $6,000 cameras.
00:04:37.820 You would have done a little bit more negotiation.
00:04:39.720 And you would have gotten three different offers to make sure we get the best deal on the table.
00:04:43.300 I probably would have done that.
00:04:44.580 I want you to treat the company's money like it's your own money.
00:04:47.280 I think that also makes sense.
00:04:48.320 Fair enough.
00:04:48.780 Let's continue.
00:04:49.960 Next one.
00:04:50.780 Be radically open-minded, but not easily persuaded.
00:04:53.640 I don't know if I understand that one.
00:04:55.000 Let me explain.
00:04:55.900 I'm open-minded.
00:04:56.840 Bring up ideas.
00:04:57.940 Tell me what you suggest how to do this.
00:04:59.380 How to suggest how to do that.
00:05:00.560 Great.
00:05:00.980 All ears.
00:05:01.980 But I know what I know.
00:05:03.960 And a lot of things you bring up, I'm not going to be easily persuaded just because something
00:05:08.280 sounds great.
00:05:09.060 I may say this is not a phase one idea.
00:05:11.140 This is a phase three idea.
00:05:12.540 I may say I like what you're saying.
00:05:14.080 It's not going to fit with our culture.
00:05:15.740 I may say I like the title you're picking for this video,
00:05:19.020 but it's not the type of title that we use over here.
00:05:22.020 I may say I like the person you want to hire.
00:05:24.140 It just doesn't fit in our culture.
00:05:25.600 I like the format you want to give this person with a job schedule.
00:05:28.320 It doesn't work with our format that we have.
00:05:30.320 So I'm open-minded.
00:05:31.720 Bring it up to me.
00:05:32.580 But it doesn't mean I'm easily persuaded with some ideas that you bring at the end.
00:05:36.140 Okay.
00:05:36.440 No problem.
00:05:36.800 That's fair.
00:05:37.500 Next one.
00:05:38.340 Fight any temptation to lower expectation and standards.
00:05:41.780 What does that mean?
00:05:42.880 Let's just say we start growing and we're doing good.
00:05:45.340 And people start saying how amazing we are.
00:05:46.800 Oh my gosh.
00:05:47.920 Look how great they're doing.
00:05:49.280 Look at how much money they're making.
00:05:50.780 Look at how much this.
00:05:51.920 Fight any temptation to allow success to lower any kind of expectation and standards.
00:05:56.700 You know what, guys?
00:05:57.680 Don't worry about it.
00:05:59.180 I don't care if a guy comes in nine minutes late.
00:06:01.100 It's totally cool.
00:06:02.440 I don't care if you come two hours late.
00:06:03.940 It's fine.
00:06:04.400 Guy, just leave him alone. 0.99
00:06:05.420 Let him do it.
00:06:06.140 He wants to go at two o'clock every day.
00:06:07.740 It's fine.
00:06:08.340 Do it.
00:06:09.140 We're not lowering standards and expectations.
00:06:10.940 I'm just telling you.
00:06:11.940 For as long as that's the vision that we painted and we're going there,
00:06:15.160 we're not doing any kind of lowering expectation and standards.
00:06:17.600 Okay, a little bit unreasonable, a little bit crazy, but fine.
00:06:22.020 I can work with that.
00:06:22.980 Great.
00:06:23.300 We want to keep the expectation high.
00:06:24.740 Fine.
00:06:25.300 Last one I'm going to give you here.
00:06:26.980 Create an environment where our team is taken care of both financially and professionally.
00:06:33.020 What does that mean?
00:06:33.600 If my guys work very hard, I want them to financially make money based on what their market value is.
00:06:39.960 I don't want to pay you more than your market value.
00:06:41.920 If your market value is $100,000, I'm okay getting there.
00:06:44.820 If your market value is $200,000, you perform like a $250,000, I don't mind you getting there.
00:06:48.760 But if your market value is $50,000, I'm paying you $150,000.
00:06:51.620 It's financially, I want you to be taking care of for your market value if you push more.
00:06:56.440 And I want us, environment-wise and fund-wise, to be in a place where everybody's growing,
00:07:02.140 everybody's having fun.
00:07:03.040 I like that as well.
00:07:04.140 Great.
00:07:04.400 No problem.
00:07:04.700 So those are my 10 business principles.
00:07:07.520 Thanks, everybody, for listening.
00:07:08.740 And by the way, if you haven't already subscribed to Valuetainment on iTunes, please do so.
00:07:13.360 Give us a five-star.
00:07:14.760 Write a review if you haven't already.
00:07:16.240 And if you have any questions for me that you may have, you can always find me on Snapchat,
00:07:20.240 Instagram, Facebook, or YouTube.
00:07:22.200 Just search my name, PatrickBitDavid.
00:07:24.120 And I actually do respond back when you snap me or send me a message on Instagram.
00:07:28.760 With that being said, have a great day today.
00:07:30.780 Take care, everybody.
00:07:31.520 Bye-bye.