Valuetainment - April 27, 2025


How to Go From $0 to $100 Million As an Entrepreneur


Episode Stats

Length

29 minutes

Words per Minute

224.88596

Word Count

6,557

Sentence Count

528

Misogynist Sentences

1

Hate Speech Sentences

2


Summary

No matter what phase of your career or business you re at, you re going to have different things you have to focus on and enemies you ll have. And there s 5 phases you ll go through. 1. The Shadow Phase 2. The Zero to 100 Phase 3. The 100 to 200 Phase 4. The 300 to 400 Phase 5. The 500 to 600 Phase


Transcript

00:00:00.000 No matter what phase of your career or business you're at, you're going to have different things
00:00:03.100 you have to focus on and enemies you're going to have. And there's five phases you're generally
00:00:06.860 going to go through. So let's just say you're from zero to a hundred thousand. What should I do here?
00:00:11.020 A hundred to a million, million to 10 million, 10 million to a hundred million and a hundred
00:00:14.660 million beyond. We're going to talk about that here today. And by the way, if you get value out
00:00:18.140 of this video, give it a thumbs up and subscribe to the channel. For some of you that used to watch
00:00:22.240 the old school content from 10 years ago, when I used to write on the board, it took me two hours
00:00:27.160 to write the stuff out and add paint all over my hands. This is a little bit more effective yet.
00:00:31.600 We can still give you the same exact message as well. So let's get right into it. All right. So
00:00:35.400 think about this here. If you're watching this, you're like, Pat, I'm making 20 grand a year. This
00:00:40.000 is me making 20 grand a year. I'm in the army. What should I be thinking about at this phase?
00:00:43.700 This is me at Morgan Stanley Dean with her just got my series seven, just getting started. I'm 21,
00:00:49.240 22 years old here. What do I do here? This is when you're growing your business. You have revenue.
00:00:53.740 You have a lot of different issues, compliance, finance, expansion, hiring, firing. What should
00:00:59.480 I be focused on here? Or then you're expanding into a different business line, podcast, marketing.
00:01:04.760 What do I do there? Then at the same time, the most common thing that'll come up is the following.
00:01:08.540 People will ask me this question on Manect all the time. Pat, I'm growing my business and we
00:01:13.840 expanded into this and I just raised $5 million and I hired my first C-suite and I'm going through
00:01:18.460 this. But oh my God, my wife is giving me a hard time. My kids, I'm not spending time. How do you
00:01:23.660 balance this? And then my mother is sick. My father is going through this. My in-laws are going.
00:01:28.320 I'm just so overwhelmed. So how do you do all of that and still find a way to maintain this?
00:01:33.780 It's not easy. It's very hard. I'm going to show what I do with, you know, the five different phases.
00:01:40.960 So phase one that we're going through, I call it the shadow phase. This is the zero to 100.
00:01:47.280 If you can just think about one word and it's shadow, the rest of it's going to be fairly simple.
00:01:52.560 So no matter what business you're in, think about shadow phase. So most important skill set in my
00:01:57.560 opinion to learn at this phase is what? Sales. Why? If I can watch you make 50 sales, make 30 sales,
00:02:05.820 and I'm seeing how you're selling. I'm seeing how disciplined you are. Okay. I'm seeing how you
00:02:12.000 handle your, you know, negotiation with the client. I'm seeing how your identity is going. Man, this guy's
00:02:18.200 very confident to ask for a hundred thousand dollar check. This guy's very confident to be able to ask
00:02:22.320 the client to do this. I don't know if I can do that. I only have $3,000 in the bank. If they find
00:02:26.600 out that I'm broken, I'm $20,000 in debt, who's going to do business with me, right? But just think
00:02:30.980 shadow. What can I do and who can I learn from that's going to give me the right habits, the right
00:02:36.140 discipline? This guy comes in, he works, he does this, he does that. Good habits are being duplicated.
00:02:41.780 We had a guy at Bally's. There was a bunch of us at Bally's that worked together. All of us left Bally's.
00:02:47.620 Bally total fitness years ago. It's not in business anymore. LA fitness bottom.
00:02:51.300 We all knew those rock stars. These guys were amazing at what they were doing. One guy goes
00:02:58.100 into the mortgage business. Unfortunately, the guy that he watches makes a lot of money,
00:03:02.400 but he's also addicted to cocaine. Within two years, guess what happens to that guy?
00:03:07.100 He's duplicating the same exact habits. Guess what happens to him? Ends up owing taxes in the tens of
00:03:13.320 millions of dollars, has all these issues for the rest of his life. His mom and dad are trying to help
00:03:17.400 bail him out because he had wrong people to shadow and duplicate. So it's not only success, but it's
00:03:24.360 also the right habits. You shadow the wrong person, it can completely destroy your life. So very, very
00:03:30.020 important this phase. Your enemy at this level is bad habits. You pick up bad habits. You're coming in
00:03:36.080 late. You're sleeping in. You're lazy. You got an attitude. You're arrogant. You're kind of going through
00:03:41.020 some of this stuff. You have to be very careful here because the most important thing to overcome at
00:03:45.320 phase one of shadowing is bad habits. If you're not coachable and a person that wants to teach you
00:03:50.500 that you're shadowing, they don't have the tolerance for you. They have a lot of options of people that
00:03:54.320 want to work with them. So if some of those things are bad for you, you're not going to get the best
00:03:58.440 opportunity working with somebody that can transfer that knowledge to you. Phase two that we go through
00:04:03.640 is a leading phase. This is 100,000 to a million. At zero to 100,000, maybe you can get away without
00:04:09.940 leading at 100,000 to a million. Now you need to learn about how to lead. And again, doesn't matter
00:04:14.680 what the job is. Leading by example, building. Okay. You're going through, you know, driving. How
00:04:20.600 do I drive Johnny in a different way than the way I drive Mary? And you'll see, man, when I challenge
00:04:25.260 her, she doesn't respond well, but the same way I challenge him, it works well. So maybe I need to
00:04:29.540 learn how to challenge her in a different way than the way I challenge him. That's tough. How do I do
00:04:34.900 this? This isn't easy. And that's a part of where the EQ comes in, where you learn about human nature,
00:04:39.600 where you learn about, okay, maybe this is a time for me to encourage a little bit. This is a time
00:04:44.440 for me to mentor. This is a time for me to challenge. This is a time for me to steer the pot. This is a
00:04:49.900 time for me to bring everybody together. This is a time for me to give this message. This is the part
00:04:54.340 where you learn a little bit timing of the message. And that is an element of leading. Networking.
00:05:00.300 Can I get in the right rooms? Can I get the right phone numbers? Can I meet the right people?
00:05:04.580 This is one of the reasons why Manect is doing so well. People are networking, doing business with
00:05:08.440 each other left and right. It's becoming a top networking app where I can get ahold of somebody,
00:05:12.980 pay for their time, establish the relationship. Then over three, six months later, we had a guy
00:05:17.920 that Manects me for 50 times. We go back and forth. Very successful guy of Ohio. Then eventually becomes
00:05:23.320 a member at the cigar lounge, comes to the cigar lounge. We see each other. I meet his wife. We're hugging
00:05:27.840 each other as if we've known each other for 10 years. But because this relationship has been being built
00:05:32.320 on Manect and our business is being done. Good guy, hung guy, become a member, and a lot of other things
00:05:37.220 that's going to be happening from it. But networking, very important at this phase.
00:05:42.460 Unreasonable hospitality. If you have unreasonable hospitality, guys like me will pay attention to it.
00:05:49.380 And guys like me who pay attention to will never forget the way you treated me.
00:05:53.360 For example, I'll give you an idea. Our cigar lounge right now, the general manager that we just hired
00:05:57.580 to be the GM of the cigar lounge. It's a person that's been serving me for the last four years.
00:06:02.160 The way he treats me, my wife, my kids, my dad, any of my employees, absolutely world class. It's so
00:06:09.860 amazing that I can't forget that service. So if you have incredible service you're giving to people,
00:06:14.820 they're going to remember. It's one of the most simplest thing anybody can do at 100,000 to a million,
00:06:21.540 but it's so valuable at the highest level. Unreasonable hospitality. Next one, similar to
00:06:26.660 building, leading is connecting. You're learning how to connect with people in different meetings.
00:06:30.320 You're negotiating with a boss. How do you connect with them? You're negotiating with a vendor.
00:06:33.880 You're talking to somebody that's a partner, an enemy. How do I connect to bring down the temperament
00:06:38.440 of this unhappy client? You got to find a way to connect. Then the next one is specializing.
00:06:42.540 At this phase, you have to figure out a way what your niche is going to be. So for example,
00:06:47.040 I get into sales. I get into financial services. I'm selling stocks, bonds, mutual funds, insurance,
00:06:52.380 variable annuity, whatever it may be. But anything I can get my hands on, I sell between zero to
00:06:56.600 100,000. At 100,000 to a million, I said, no, I'm going to specialize. So what's the specialization?
00:07:02.620 Insurance and annuities. And that's it. That's it. That's it. The sooner you specialize,
00:07:07.140 now you can really be focused on only those things instead of saying, I'm going to try to do
00:07:10.820 everything that's out there for me. And then recruiting. Because to go from 100,000 to a million,
00:07:16.320 you have to recruit an assistant. You have to bring on board people that are going to do customer
00:07:20.660 service or case management or engineers or salespeople. But you have to get good at recruiting
00:07:25.660 somebody to want to work with you. So how do you do that? We sat down with a couple of our
00:07:30.000 executives and managers and I said, interview me to the company. Recruit me to the company. What do
00:07:34.520 you mean by that? Do an interview. Sell me why somebody has to be here. Sell me the dream. Sell
00:07:40.140 me the system. Sell me what we do here. Challenge me why this could be the opportunity that I ought to
00:07:45.020 be a part of. Most people don't know how to do that. That's a very, very important skill set.
00:07:50.480 When Jobs was recruiting other people, he knew how to poke and recruit them to join his vision
00:07:56.580 with Apple. You got to learn how to recruit by far one of the most under recognized skill set to take
00:08:02.280 that business from 100,000 to a million. So now who is your enemy at this level? Your enemy at this
00:08:08.100 level is complacency and contentment. I cannot tell you how many times I was at a room in a room when
00:08:13.160 I'm at this phase, 100,000 to a million guys are ahead of me. I'm ranked number 60 and I'm sizing
00:08:18.120 everybody up and I'm like, Oh my God, that guy's going to kill it. And he's going to kill it. And
00:08:21.820 that guy's going to do so well. And there's no way I can compete with her. And look at this guy here
00:08:26.380 until I realized most of these guys got comfortable at a hundred K 200 K at a certain position at a
00:08:33.300 certain title. They were cruising. They were no longer pushing. They were no longer reading new
00:08:37.640 books that were no longer developing themselves. They got complacent and very happy and content and
00:08:43.900 they stopped developing. So they were only talking about the first 20 books they read.
00:08:48.520 They were no longer recreating themselves consistently. And I realized at the end of the
00:08:52.460 day, this is way too early to decide who the biggest thinkers are. We got some time to go until
00:08:57.460 we realize who the biggest thinkers are typically takes 10 to 20 years. So that's phase number two.
00:09:02.360 Now let's go to phase number three. Phase number three is a million to 10 million at this phase.
00:09:06.840 You need to learn how to process issues, process issues, decision-making. So when it comes down to
00:09:13.400 processing issues, let me go on this side, crisis management, you're going to have a lot of
00:09:18.000 challenges that's going to come up. Lawsuits, employee leaves, defamation of character, rumors,
00:09:25.560 somebody trying to hurt you, put you out of business. Another competitor that's spreading rumors
00:09:29.920 about your company and pinning you against your business partner. You have to be very, very careful
00:09:34.240 with this. It's going to happen. And by the way, there is no escaping this. This, the bigger you get
00:09:40.240 is guaranteed. Let me, it's not like you can avoid it. It's going to happen. You're either going to be
00:09:45.780 good at it or you're not going to be good at it. If you're good at it, you'll handle it. Well, if you're
00:09:50.080 not good at it, you're going to go backwards if you don't know how to manage crisis. Next is high
00:09:54.080 stakes meetings. So you will have meetings at zero to a hundred thousand, which is maybe a high stakes
00:10:00.160 meeting for you to be able to convince the guy to hire you and the person you don't have a lot of
00:10:04.760 credibility at. Why should I hire you? You have to be able to have that high stakes meeting and close
00:10:08.280 yourself to the person that you're going to be shadowing, right? At a hundred thousand to a million,
00:10:12.760 you can have some high stakes meeting to recruit somebody that's going to come over to your business.
00:10:16.760 That's going to be an executive experience, but at a million to 10 million, you're going to have an
00:10:22.220 opportunity or two or five where you will sit down with someone that if you're able to get this
00:10:28.220 relationship going, your business could go from a million to 25 million. I'll give you one of them
00:10:33.380 that I had at 32 years old, 31 years old. I'm in Houston at AIG's building. I'm on the 41st, 42nd floor.
00:10:41.820 I meet the CEO. Then I go into a room. They're sitting there. I'm trying to tell them you ought to
00:10:47.540 do business with me and I ought to do business with you. You ought to give me a contract. They're like,
00:10:51.040 who are you? I said, put me in a room with all your lawyers, everybody that you have asked me any
00:10:56.300 questions you want. Great. They set up the meeting. There's 20 people in the room. I'm at the head. I
00:11:00.700 said, just give me a marker and a board and ask me whatever you want to ask me. And I'm there with
00:11:04.620 a couple of my guys in the room. They start asking questions. Well, what about this? And what about
00:11:08.740 that? And what about this? And what about that? And what about this? And I'm addressing every single
00:11:13.220 one of them. By the time I'm done, they asked me to sit outside. I come back and they said, you got
00:11:17.020 the contract. I get, if I don't get that contract, the game's going to change. I may not even exist.
00:11:22.640 Business may go out of business. The company may go out of business, but we end up becoming the
00:11:26.820 number one writers of AIG insurance for four or five consecutive years, back to back to back because
00:11:32.820 of that high stakes meeting and how you prepare for that high stakes meeting is before you go into the
00:11:37.860 meeting, you sit down with a couple other people that you respect or your right hand people. You ask
00:11:42.000 them, well, what do you think they're going to ask me? They're going to ask you this. If they ask you,
00:11:45.820 what are you going to say? It's a good question. Boom, boom, boom. No. Boom, boom, boom. Uh, boom, boom, boom. That's the one.
00:11:51.360 What if they ask you this? Gosh, I don't know how to answer. What if they ask you this? They're going
00:11:55.840 to ask you this. So you have to be as prepared of the questions that we'll be asking those high
00:12:00.660 stakes meeting that will cover 80, 90% of the question. Then there's a 10% that you're not
00:12:05.660 going to be ready for. And that's where you went. No matter how much you prepare, there's going to be
00:12:09.840 10% of the conversations that you will not expect. It will not be anticipated. It'll be surprising.
00:12:15.260 And if you do that right, you're probably going to do a deal with the folks you're doing business with.
00:12:18.920 So very important when you're at the million to 10 million. Next one is going to be management.
00:12:23.180 How will you manage different personalities? One person came from this corporation from Uber.
00:12:27.820 This person came from Chevron. This person came from a big insurance company. This person came
00:12:32.140 from here. How do you get all of these guys that are coming from five different cultures to work
00:12:36.120 together? How do you manage these different personalities? Their skill sets. How do you manage
00:12:40.480 the money that you have? The amount of money you left in the bank, the savings that you have,
00:12:44.840 the balance sheet. How do you manage all that stuff? But management will be one as well.
00:12:48.340 Next, master processor. You will be in a room. Someone's going to ask questions. Well,
00:12:53.700 such and such happened. You won't believe. Well, how do we handle this? This person called
00:12:56.600 this. This client said this. That customer said this. And the most basic way on how to process
00:13:01.640 some of these things, there's videos on this, is zero to 10. How important is this? How urgent is
00:13:06.660 this? Who do you know that can help solve this problem? Zero to 10. This is probably a nine,
00:13:11.220 an urgency. Zero to 10, when it comes down to amount of importance of money being lost,
00:13:15.360 this is probably a seven. We can lose a half a million dollars. That's high. And who can help
00:13:20.180 us with this? Our lawyer, our compliance officer, our accountant, the person that has a contact with
00:13:24.620 this client that is not happy. Let's get that person on the Zoom with us. But that's processing
00:13:29.040 issues. The more you get better at processing issues, the more your executive team and leadership
00:13:35.280 around you will get better at processing issues. And then you have a new peer group. A lot of times when
00:13:40.900 you're here, one to 10 million, you're alone. So you're not getting into that next room. You need
00:13:45.840 to be in a mastermind. You need to be in certain groups that you're watching other people process
00:13:49.880 issues. Maybe you're in real estate and there's one in the group that's engineer, one in the group
00:13:54.240 that's, I don't know, it's running a digital marketing agency, another one that's in solar,
00:13:58.820 another one that's in insurance, another one that's in property and casualty. And this person's
00:14:03.280 telling their problems that you needed to hear. That person's giving problems about expansion
00:14:07.880 into a new state. This person's giving problems about their personal life. And you're like,
00:14:11.920 whoa, this was great. I came in thinking I had one issue that I'm trying to resolve.
00:14:15.900 But what I really needed is the eight things they're going through. So you need to find
00:14:19.480 new peer group that challenges you to have to grow. Or else if you stay with the same level
00:14:23.820 of people that are below you, you'll feel so successful, you'll slow down. Because like,
00:14:27.960 oh my God, Johnny is so great. Look at all the money he's making. Oh, my life is so great.
00:14:33.080 Yeah, let me tell you, I'm special. Versus you need to be in more rooms where you're like just
00:14:36.760 another person in the room. If you're in too many rooms where you're like this,
00:14:40.700 and everyone's below you, you're going to be hitting a wall and you won't be growing to the
00:14:44.700 next level. And then clarity. You need more clarity. What are my next moves? What am I doing
00:14:48.520 this for? What's the vision? Where are we going to? At a guy I ask a question of that he's working
00:14:53.320 with the CEO. He says, look, I love this guy. I love working with this company. I've been here for
00:14:57.560 five years. But every time I ask him about vision, there is no vision. He just takes the profits
00:15:02.240 off the table. I don't know what to do with this guy. What do I do? There's nothing really I can
00:15:06.580 say. Because that CEO, that entrepreneur needs to have a vision. Where are we taking the company
00:15:10.900 to? If you don't, your team is going to get lost. So there needs to be a clear vision of what we're
00:15:16.500 doing. So now we know phase one is shadowing. Your enemy is bad habits. Phase two is leading.
00:15:21.820 Your enemy is contentment and complacency. So now phase three is processing issues. What's your enemy?
00:15:28.860 These are your three enemies. Reactive. Everything is reactive. Oh, my God. Oh, my God.
00:15:34.080 So when it's always reactive, you're disrupting everybody else's workflow, right? Instead of
00:15:39.800 being proactive. You're only responding to crisis versus anticipating what could happen. Number two
00:15:45.400 is lack of urgency. You don't have an urgency. It's like, yeah, we'll get to it. Yeah, we'll hire
00:15:49.100 that person. Yeah, it's not a big deal. Yeah, if that person quits, we're going to be fine. Yeah,
00:15:53.300 it's going to be okay. Or your ego. Nobody can give you feedback. I don't need any coaching. Do you
00:15:57.720 realize who I am? So you're kind of going through that phase. Those three are your enemies at
00:16:02.420 one to 10 million. So the next phase is 10 million to 100 million. We call this the sequencing
00:16:08.140 phase. That's very because now it's about strategy. Now it's about what is my next move? Now it's about,
00:16:13.720 you know, what should I be doing next? So in this, you have to master power plays. You're going to go
00:16:19.700 through it. Power plays could be towards your competitors. Power plays could be a statement to
00:16:24.860 the marketplace that nobody is expecting. No one was expecting when we first bought this property,
00:16:29.740 what was going to happen on election night. Just a couple of days ago, the vice president's brother
00:16:34.060 is here and he says, while we were at the convention center, we were all watching a PVD podcast because
00:16:39.520 you guys got it right before anybody else. We took a risk that night. We licensed a software
00:16:44.460 that we probably didn't need to do. We're just a podcast, but we brought it in. Tom presented it to
00:16:49.920 me. I said, let's do it. What is the cost? Let's go back and forth. We finally got it on election night.
00:16:54.180 We had 2000 people here for our podcast. Everybody's like, what the hell is going? There's a thousand
00:16:59.220 cars, VIPs, people coming through, you know, live 283,000 people concurrent live. We had a meeting
00:17:06.880 with YouTube CEO and Google CEO. They're like, what were you guys doing that night? It was record
00:17:10.540 breaking. That's a power play. That's a statement to the marketplace. Every once in a while, you need
00:17:15.260 to be making a statement to the marketplace when they're watching you. Next one, next area of focus
00:17:20.400 is sequencing. What sequencing means is, hey, is this a move? Do I make that now as a move three
00:17:25.820 or is it a move nine? Do I buy this software now for $2.8 million or wait 18 months? Because in 18
00:17:32.820 months, maybe I got to focus on hiring 19 more people first and being prepared before I go, no,
00:17:37.900 we should buy the software. This you're going to be judged on how good of a job you do sequencing
00:17:42.660 investments, hiring, expansion, new marketing campaign, new product, all of that is sequencing.
00:17:50.080 So it's always, is that a moving out? Like imagine you're in a boardroom with all your
00:17:53.040 executives. We just did our quarterly meeting at Four Seasons this week and we'll sit there
00:17:57.960 and we go through all these issues from 7.30 in the morning, 7.30 at night. And hey, here's
00:18:02.820 what's going on with finance. Here's what's going on with this. Here, we should go raise capital
00:18:06.160 on this business. We should go hire this person here. The entire conversation was about sequencing.
00:18:11.520 Okay. The next one is running mate. At this phase, 10 million, 200 million. If you don't find
00:18:18.120 the right running mate, your pillow is going to feel very hard. You know what it feels like when
00:18:22.400 you sleep on a very hard pillow, like a brick, you're tossing and turning all night. What does
00:18:27.980 it feel like when you sleep on a real soft pillow? You sleep better at night, right? So at this point
00:18:32.540 is when you find a running mate that they're thinking and sharing pressure as much as you are
00:18:37.840 in different ways. There's, you're going at night and it's like, let me tell you what happened last
00:18:42.660 night. We had these three things that happened. I did this. I contacted that person. I contacted this
00:18:46.700 person. Thank God I got a running mate. You will be judged on finding a running mate here. Think
00:18:52.240 about a running mate as a spouse, as a wife, as a husband. You find a right running mate, life is
00:18:58.760 better. You find a wrong running mate, divorce, bankruptcy, the whole night. And in an area like
00:19:04.460 this with running mates, there has to be a criteria. And there's a few points that I personally go through
00:19:09.340 contacts, character, work ethic, bottom to the vision, you know, an example, somebody that has
00:19:14.460 specialized skill. There's seven points that I personally go through when I'm judging a running
00:19:18.360 mate, then we give them a score. You get the right running mate, business grows exponentially. Very,
00:19:23.280 very important hire. And the next point here outside of the running mate is raising money. You will need
00:19:28.380 to learn how to raise money. And if you don't know how to raise money, you're going to have somebody on
00:19:31.600 your team that's raised money before. So if you don't have somebody on your team that has raised money
00:19:36.160 before, the terms are not going to be favorable to you. It's going to be favorable to the person that's
00:19:40.120 given the money. So you remember, I don't need anybody to go help me raise money. No problem.
00:19:44.640 You don't. But the terms are going to be shitty for you. So you're going to need to raise money
00:19:49.440 with someone that's done it in the past before. So they're able to get some of those controls.
00:19:54.160 Any purchase you make over $10,000, we need you to get it approved by me. You kidding me? It would
00:19:58.780 take me two days to get it approved by you. No, that needs to be a half a million. We're not going to do
00:20:02.800 it a half a million. There's like 20 things that you got to go through. So if you're raising money
00:20:06.300 and you're running mate, you're hired, knows how to raise money. It accelerates the process. So now
00:20:10.900 what are the enemies you have at this phase? Two enemies, lack of recreating yourself. And number
00:20:16.880 two, intoxicated with flattery. Everyone around you is going to say, Oh my God, Jack, you're the best.
00:20:24.000 Oh my goodness. You smartest guy I know is Jack. And let me tell you, he can't do anything wrong.
00:20:32.180 Yeah. It's the last thing you need. You almost kind of need to tell yourself now,
00:20:35.860 don't believe the hype. Don't believe the hype. Don't believe the hype. Keep going to the next
00:20:39.200 phase. And then the other part is recreating yourself. Who do you need to be for this next
00:20:43.200 phase to be ready? Because by the way, running a $10 million of your business, very different than
00:20:47.760 running a $100 million business. Very, very different. Very, very few get to 10 million.
00:20:54.560 Even fewer ever make it to the $100 million of your business. So then last but not least is phase five.
00:20:59.300 So what's phase five about? Phase five is about solving for X. Everything at this phase,
00:21:05.860 become solving for X. Everything. You'll sit in a room and you're trying to find a way to,
00:21:12.460 you know, I had a meeting with my guys and I'm telling my guys saying, Hey, what's the difference
00:21:15.800 between building a million dollar company versus a $10 million company? What's the difference
00:21:20.660 between 10 million or a hundred million? A hundred million or a billion? Billion or 10 billion?
00:21:24.020 10 billion or a hundred billion? A hundred billion or trillion? Leadership? Vision? Sure.
00:21:29.960 I said, was it really that big of a difference between 10 billion and a hundred billion? Think
00:21:34.540 about it. I guess no. So what's really the difference between 10 billion and a hundred
00:21:39.220 billion? What's the difference between a hundred billion dollar company and a trillion dollar
00:21:42.940 company? Netflix is a 200 billion dollar company, but Microsoft is a three trillion dollar
00:21:48.560 company. What's the difference? Is it just lifespan? Is it just a product? Or is it the fact
00:21:54.560 that they solve for X and solve a bigger problem? The bigger the problem you solve, the bigger
00:22:01.140 the money you make. So the CEO, the entrepreneur, the founder has to constantly be challenging the
00:22:07.440 people on how to solve for X. In the meeting that we had this quarter, I told my executive
00:22:11.440 team, I said, let me ask you guys a question. Who in here is building a 10 billion dollar company
00:22:15.140 from scratch? Go ahead, guys. Raise your hands. Go ahead, guys. Participate, please. Raise your
00:22:20.000 hands. And I was going to, what's this guy talking about? I said, who is taking a business
00:22:24.640 from zero to a hundred billion or 10 billion here? No one's raising their hands. I said,
00:22:28.220 I'm also not raising my hands. I've never done it before. So what does that mean? That
00:22:31.920 means our way of thinking got us to where we are today. But if we want to build something
00:22:36.920 that's going to be 10 billion and beyond, we have to change the way we think. The shift
00:22:40.940 in the mindset has to be constantly challenged. All right. So what do we need to get good at
00:22:45.400 in this area? First one is moral authority. Moral authority is if I'm golfing every day,
00:22:52.240 guy asked me a question, says, how come I can't duplicate salespeople? It's so hard.
00:22:56.400 There's one guy on one of our consulting calls. I said, let me ask you a question. And I see
00:23:00.640 the backdrop of where he's at. You know how somebody does a zoom and they make it blurry.
00:23:04.280 So you don't know what the backdrop is. I said, I'm sorry. Let's call him Johnny. Johnny,
00:23:08.420 where are you doing this zoom from? From my home office. Okay. How many hours a week do you
00:23:14.380 spend time around your salespeople? Oh, I work from home. You are never going to duplicate
00:23:18.500 salespeople. You're not. So the moral authority to have people want to run through the wall for
00:23:25.060 your company to be growing. Do you have the moral authority? Do they see you recreating yourself?
00:23:30.100 Are you setting the example of being there? Are you in the office? Are they seeing you hiring other
00:23:34.900 people? Are you seeing they're staying late, coming in early? Are they seeing you creating opportunities
00:23:39.280 for the company? What are they seeing you do? You as the founder have to make sure you earn
00:23:44.320 the moral authority from your guys for them to trust you. And by the way, at this stage,
00:23:48.700 at the hundred million plus, the people you have on your executive team, if you don't continue
00:23:54.460 growing, they got a lot of options of where to go to. Remember, typically at this stage,
00:23:59.440 the executive team that you have is therefore an L-tip, profit sharing or equity. If the company
00:24:04.160 is not growing valuation wise, why do I need L-tip, profit sharing or equity? I don't need it.
00:24:09.240 Do you understand how that works? So they're shopping. But if you're at this phase and the
00:24:13.560 business is growing, others from other companies that have flatline are saying, hey man, I want
00:24:17.980 to go wrong with this guy because this guy's got moral authority. They're watching your moral
00:24:21.380 authority. Next one is replacement game. You're constantly looking at mid-level management. This
00:24:27.060 person's got to move up. That person's got to go to a different division. That person here in this
00:24:31.620 level that's running this many people, we got to get them to go to a different department or this
00:24:35.660 person's going to grow to the next level. Do we have the next layer of management coming in?
00:24:38.760 And you're replacing jobs with new people because the company is expanding. Either
00:24:43.180 with people or with software or technology, but that replacement game is constantly thinking
00:24:47.720 about what you need to be doing. I remember one time we had the software that we bought
00:24:50.620 when we used to license insurance agents. Our insurance licensing department was massive
00:24:55.920 because we had to get them appointed with different carriers and different states. And
00:24:59.340 it was so much cost. I met this Ukrainian guy who had the software. Amazing. We had multiple
00:25:04.080 meetings. Took us two years to negotiate. But eventually when we did the deal,
00:25:07.040 I could license God knows how many people like this and get them appointed in 20 different
00:25:12.340 companies and five different states with no issues because it was all electronic. That was
00:25:16.580 a replacement game. Instead of having everything be paperwork hands-on, we were able to move it
00:25:21.440 and have the software do it for us. So you're thinking about replacement games, especially today
00:25:25.420 with AI. Third point is vision. We've talked about this, but it's got to get even to the next level
00:25:30.400 to attract the right people. Generational planning. When your company is doing this type of money,
00:25:34.960 that means you also have a lot of money and your net worth is high. You don't want to create
00:25:38.780 additional headaches. You got to take some time to go hire an estate planner to put your estate in
00:25:42.920 the right place. Estate planning, nuptial, what's going to happen with your kids? How is it going
00:25:48.040 to be passed on to them? Tax planning, financial advisor. You need to make sure that part is also
00:25:52.500 scored away because most of the time when guys get to a business like this, they'll do a little bit
00:25:56.360 of it, but they still wing it in that area for whatever reasons. Like doctors. I sat down with so many
00:26:01.080 different doctors when I was doing financial planning. They were some of the most uneducated
00:26:05.140 people when it came down to finances because advisors were uncomfortable to give advice to
00:26:09.820 doctors. And so nobody would approach doctors. They had nothing in place. They're making 800 grand
00:26:14.820 a year, but nothing in place. You need to make sure you get your finances in order as well.
00:26:18.920 And outside of that is legacy, similar thing to what I'm talking about. So at one point here,
00:26:23.080 if you're 68 years old, you're watching this video, you're like, dude, I'm not trying to take this
00:26:26.760 business to a billion. I'm trying to get out of this business. I've been doing it for 40 years. I want to give it to
00:26:30.640 my son. No problem. That's a complete different thing. At our consulting from beddavidconsulting,
00:26:35.160 beddavid.com, you can go and learn more about it. I can't tell you how many conversations I have with
00:26:39.320 father and son and daughter where we sit down and say, okay, how are we going to transition this
00:26:43.700 business over to the son? And the father doesn't want to let go. And the son hasn't earned the right,
00:26:48.740 what's the right way of doing it? There's a whole psychology and philosophy behind this.
00:26:52.680 But at this phase, that may be something you need to be keeping in mind. Your enemies at the space,
00:26:56.480 face, lack of purpose. If you don't have purpose, you're bored because everything in your life is
00:27:01.520 covered. The house, the cars, the travel, Christmas, summer vacation, Hamptons, Lambeau, Bentley,
00:27:08.100 Rolls Royce, Sushi, Ikura, Fogra, Stefano, Richie, Sue, Tom Ford, colognes, whatever you want.
00:27:14.920 What else do you want? It's all covered. You go to the court side, Super Bowl, Derby, F1.
00:27:21.040 What else do you need, right? You know, big cul-de-sac house with the pool you put up,
00:27:25.780 the parties, politicians come to your house, all this other stuff. If you don't have the next
00:27:29.880 purpose, that's an enemy. And last one is not recruiting your next enemy. And what I mean by
00:27:35.580 that is I wrote a book called Choose Your Enemies Wisely. If you don't have the next thing that gets
00:27:39.720 you out of bed, competition, it's time to hang it up. Sell the business, let your son or your kids run
00:27:45.020 the business to the next level, because you are going to probably cause the business to go down if you
00:27:49.420 don't have these two things. Lack of purpose and not recruiting your next enemy. So last
00:27:55.560 finale is a quick reminder. Phase one, shadow, two, lead, three, process, four, sequence, and last
00:28:01.360 finale, solve for X. So if you got value out of this video, give it a thumbs up and subscribe to
00:28:04.620 the channel. But for some of you that are watching this, who are saying, I run a business over 10
00:28:09.140 million. I kind of feel like I need, I'm going to go a little bit deeper with this. Great. No problem.
00:28:12.760 If you text the word BDC, Bed David Consulting, BDC to 310-340-1132. Again, text the word BDC to
00:28:22.020 310-340-1132. We will text you the link that explains the five by five of what to do at the
00:28:29.680 different stages you're at from BedDavid.com and watch that 18 minute video, give you a little
00:28:34.480 bit more in-depth analysis. And then if you want to engage with us at Bed David Consulting, fill out
00:28:38.620 the information, somebody is going to get ahold of you. And if you're watching this, whether you're at
00:28:42.060 phase one or five, you can send me a Manect and ask me any questions you have about the phase you're
00:28:48.600 in. And if I don't have the answer to the question, I'm going to refer you to somebody else on Manect
00:28:53.040 to connect with and ask the questions with. This app is becoming a game changer for people that are
00:28:58.260 using it. If you haven't yet used it, test it out, download the app, Manect someone, see how smooth
00:29:04.360 the exchange is. I'm sure after you Manect once, you'll be Manecting many, many more times. Take care
00:29:08.460 everybody. Bye-bye, bye-bye.