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

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 1.00

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 1.00

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 1.00

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 0.87

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 1.00

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.

Valuetainment - April 27, 2025

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

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