Valuetainment - August 07, 2023


Why LUCKY Millionaires Almost Always Go Bankrupt

Hosted by
Patrick Bet-David
Mentioned
Ferraris
Biggest Presidential UPSETS - Why The Underdogs Almost Always Win Are Unions Destroying Jobs & The Economy？

Episode Stats


Length

5 minutes

Words per minute

234.89

Word count

1,209

Sentence count

89


Summary

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

In this episode, Pat McAfee talks about why your business may not be as good as you think it is, and why it may be even worse than you thought. He also talks about how the market can change at any given moment, and how to deal with it.

Transcript

Transcript generated with Whisper (turbo).
Hosts, guests, and mentioned names generated with spaCy (en_core_web_sm), reconciled against Wikidata.
00:00:00.000 So I'm consulting for the CEO the other day. He's super nervous, very antsy, anxiety sigh. I'm
00:00:04.560 watching for him. He's about to ask the question and he's sweating. He's about to tell me he's
00:00:08.380 going through a divorce. His wife left him. You know, he's filing bankruptcy. One of his employees
00:00:12.320 took his money and he doesn't have anything left. But no, he says, Pat, all of a sudden our business
00:00:16.380 doubles in size. We did $16 million. I've never made this kind of profit before. I've never had
00:00:22.140 this kind of money before. I have no clue what to do. So think his business has grown. The business
00:00:27.520 owner's dream. He's making more money than ever before, but he's nervous. So I asked him one
00:00:32.340 question that took the conversation to a whole different direction. But by the way, if you get
00:00:35.700 value out of this video, give it a thumbs up and subscribe to the channel. Let's get right into it.
00:00:39.160 I asked him, is your business at $16 million doubled in size because of the current climate
00:00:46.460 of the market, because of you or because of a client or a employee? So he says, no, the business
00:00:55.480 is at $16 million and we're making this kind of money because the market, the market is just so
00:01:00.320 hot. I've never gotten this much business in my life before. I'm not doing anything different and I
00:01:05.100 didn't hire anybody new and it's not because of a new customer. I said, okay, do you want the good
00:01:10.140 news or do you want the bad news? He says, Pat, I have a feeling it's only going to be bad news. I
00:01:14.540 said, well, I said, the good news is you're about to make a lot of money. The next three, six months
00:01:18.060 save a lot of that money. But the bad news is this is going to go by very quickly and your business
00:01:22.580 is going to drop 50% back to what it normally has been the last five years for the following
00:01:26.700 reason. The market can change all the time. There's a lot of guys in real estate and mortgages
00:01:31.000 that made a lot of money during that 160 month economic expansion. I know a lot of people would
00:01:38.180 say, well, no, it was only 128 months interrupted by COVID. If there is no COVID that 128 is more like
00:01:43.680 160, 150 economic expansion. So many realtors, mortgage loan officers made so much money, drove all the
00:01:50.120 Lambos, the Ferraris, all the cars, and they got nothing left to themselves because of the market.
00:01:54.920 Only few of them are still in business growing because of them. So the three questions was what?
00:02:00.200 The market, you, or last but not least is what? One client or one employee. Why one client,
00:02:06.520 one employee? Say you got one client all of a sudden brings a business to you. Hey, you know,
00:02:10.360 we got so much business going on. You seem to be able to process our business. We'd like to bring
00:02:14.160 $10 million of our business over to you. You're doing $6 million a year. One company brings $10 million,
00:02:19.000 but if that company leaves you to somebody else, you can also very quickly go from $60 million to
00:02:23.400 $6 million because that person's going to got $10 million. Or if you brought one salesperson on
00:02:27.420 board and that salesperson brought all their customers from another company to you, but you
00:02:30.880 only got two salespeople or three salespeople, if that salesperson leaves, so will the revenue follow
00:02:35.860 that salesperson to whatever company they're going to. The only saving grace you have for your company
00:02:40.280 to continuously grow. And I can tell you, most people don't want to hear this because most people want
00:02:45.500 the shortcut. The, yeah, but you don't understand, but what if, what if it's because I know what to
00:02:50.340 do and I don't have to work as hard and I'm doing the six days a week golf and I want to do this.
00:02:54.460 And no man, you just got lucky. A lot of people get lucky. There's a reason most businesses don't
00:02:58.760 make it. There's a reason most businesses file bankruptcy. There's a reason most businesses
00:03:02.260 shut down three, five years. There is a reason for that. It's very, very hard. How many restaurants
00:03:08.240 from 10 mile radius of where you live right now have been around for 20 years? Why do you think?
00:03:12.620 Because it's very, very hard to run a business. And those who have been around for 20 years,
00:03:18.560 there's typically a great operator behind closed doors that's dependable, reliable, that's driving
00:03:24.680 the company. So I'm going to come back to you here. If you're watching, it's your business owner and
00:03:28.380 the times may be good for you. It may be bad for you. You may be like this guy. You all of a sudden
00:03:32.340 are making more money than ever before thinking it's because of you, but it's because of the market.
00:03:36.860 If you'd like to protect that so you don't ever have to worry about that business going away for you,
00:03:42.020 take inventory of what you can do to recreate yourself as a leader, as an operator, as a creative
00:03:47.300 marketer, as a way to make the investment into the right people, where it's not just one client
00:03:51.660 that you're relying on. You don't ever want to have a client or a salesperson that gives you more than
00:03:56.980 20% of your revenues per year. If it is maybe 25%, my number is typically 20%. If it's above 25%,
00:04:04.500 if they own 50%, if that guy leaves, you don't really have a business. That person owns you. The
00:04:08.320 customer owns you. The employee owns you. The market owns you. You don't own your business.
00:04:12.480 They own you. So you got to flip it on them. You got to be so good at what you do that the market,
00:04:16.900 no crisis, no individual, no customer, no client, no salesperson working for you can dictate the
00:04:23.880 future of your company. If you got value out of this video, give it a thumbs up, subscribe to the
00:04:29.120 channel. By the way, if you haven't yet downloaded Manect, I get questions asked all the time on Manect.
00:04:33.660 I get thousands of messages on Instagram, Twitter, Facebook. I never get back to, I don't have the
00:04:37.620 time to get back to it, but I get back to a hundred percent of my messages on Manect because
00:04:41.840 you want to connect with me. I got to give you my time. You got to pay for it. If you want to talk to
00:04:46.780 me or you want to talk to Tom or other influencers and experts on Manect about raising money, about
00:04:52.100 business, about recruiting, about whatever it may be, download the app Manect. We're going to put the
00:04:56.040 link below here or somewhere here you can click on and you can text me and I'll respond back. Text me and I'll
00:05:00.820 respond back in a video or we can do a 15-minute FaceTime together. If it's not me, you can do
00:05:04.320 with other people on Manect. Having said that, have a great day, everybody. Take care. Bye-bye,
00:05:07.820 bye-bye.