1 00:00:02,060 --> 00:00:05,520 (Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome to the Business Credit and Financing Show. 2 00:00:06,040 --> 00:00:08,460 Each week, we talk about the growth strategies 3 00:00:08,460 --> 00:00:10,260 that matter most to entrepreneurs. 4 00:00:11,020 --> 00:00:13,600 Listen in as we discuss the secrets to 5 00:00:13,600 --> 00:00:16,400 getting credit and money to start and grow 6 00:00:16,400 --> 00:00:17,240 your business. 7 00:00:17,460 --> 00:00:19,820 And enjoy as we talk with seasoned business 8 00:00:19,820 --> 00:00:22,680 owners, coaches, and industry leaders on a variety 9 00:00:22,680 --> 00:00:25,700 of topics from advertising and marketing to the 10 00:00:25,700 --> 00:00:28,140 nuts and bolts of running a highly successful 11 00:00:28,140 --> 00:00:28,720 business. 12 00:00:29,020 --> 00:00:31,340 And now, to introduce the host of our 13 00:00:31,340 --> 00:00:35,300 show, financial expert and award-winning author, Ty 14 00:00:35,300 --> 00:00:36,020 Crandall. 15 00:00:36,200 --> 00:00:37,540 Hello, and thanks for joining us today. 16 00:00:37,620 --> 00:00:38,900 I'm super excited you could be here. 17 00:00:39,000 --> 00:00:41,300 Today, we have one of the coolest men 18 00:00:41,300 --> 00:00:43,540 I have ever known in my life, or 19 00:00:43,540 --> 00:00:45,360 gotten to be able to know, from all 20 00:00:45,360 --> 00:00:47,720 of his trainings and teachings throughout my career. 21 00:00:47,840 --> 00:00:49,240 As a matter of fact, he is a 22 00:00:49,240 --> 00:00:51,440 huge motivator that has helped me be able 23 00:00:51,440 --> 00:00:53,260 to grow our business to the size that 24 00:00:53,260 --> 00:00:55,780 it is, and also help teach you a 25 00:00:55,780 --> 00:00:57,460 lot of the methodologies that he's taught me 26 00:00:57,460 --> 00:00:59,020 to be able to help you grow your 27 00:00:59,020 --> 00:00:59,700 business as well. 28 00:00:59,700 --> 00:01:01,620 So with us today, I'm honored to have 29 00:01:01,620 --> 00:01:02,280 Jay Abraham. 30 00:01:02,480 --> 00:01:05,400 Now, Jay is the $50 billion man and 31 00:01:05,400 --> 00:01:08,700 highest-paid marketing consultant, a proven business leader, 32 00:01:08,800 --> 00:01:10,960 and top executive coach in the United States. 33 00:01:11,180 --> 00:01:13,100 Now, as founder and CEO of the Abraham 34 00:01:13,100 --> 00:01:15,240 Group, Jay has spent his entire career solving 35 00:01:15,240 --> 00:01:18,640 complex problems and fixing underperforming businesses. 36 00:01:18,940 --> 00:01:20,960 Now, he has significantly increased the bottom line 37 00:01:20,960 --> 00:01:23,800 of over 10,000 clients in more than 38 00:01:23,800 --> 00:01:27,800 1,000 industries and over 7,200 sub 39 00:01:27,800 --> 00:01:29,000 -industries worldwide. 40 00:01:29,000 --> 00:01:31,480 He has dealt with virtually every type of 41 00:01:31,480 --> 00:01:32,800 business scenario and issue. 42 00:01:33,200 --> 00:01:35,360 He has studied and solved almost every type 43 00:01:35,360 --> 00:01:38,460 of business question, challenge, and opportunity as well. 44 00:01:38,880 --> 00:01:41,780 Now, he has an uncanny ability to identify 45 00:01:41,780 --> 00:01:45,880 hidden assets, overlooked opportunities, underperforming activities, and 46 00:01:45,880 --> 00:01:49,480 undervalued possibilities that others just simply miss. 47 00:01:49,820 --> 00:01:51,560 He has earned him, it has earned him 48 00:01:51,560 --> 00:01:54,080 the respect of business leaders globally. 49 00:01:54,600 --> 00:01:56,980 Now, beyond that, he teaches clients that there 50 00:01:56,980 --> 00:01:59,700 are often more effective and profitable strategies beyond 51 00:01:59,700 --> 00:02:02,340 the single approach their industry typically uses. 52 00:02:02,600 --> 00:02:04,900 He helps them adapt successful concepts from other 53 00:02:04,900 --> 00:02:07,160 industries to gain a competitive edge. 54 00:02:07,440 --> 00:02:09,900 Now, he's renowned as a leading expert in 55 00:02:09,900 --> 00:02:14,300 the areas of permanence, exponential business growth, performance 56 00:02:14,300 --> 00:02:18,500 enhancement, risk reduction, and maximizing business assets. 57 00:02:18,740 --> 00:02:21,420 He's been featured extensively in all types of 58 00:02:21,420 --> 00:02:24,300 major publications, and with his depth of experience, 59 00:02:24,300 --> 00:02:27,720 strategic thinking, and strong communication skills, he is 60 00:02:27,720 --> 00:02:30,380 considered one of the world's foremost experts in 61 00:02:30,380 --> 00:02:34,860 revenue model generation, business model generation, strategic restructuring, 62 00:02:34,980 --> 00:02:36,360 and marketing as well. 63 00:02:36,580 --> 00:02:38,580 Now, he's helped raise the performance of countless 64 00:02:38,580 --> 00:02:42,740 businesses, even in adverse environments, by finding creative, 65 00:02:43,100 --> 00:02:46,180 preemptive solution to very complex problems. 66 00:02:46,580 --> 00:02:50,220 He is dedicated to advancing businesses, careers, and 67 00:02:50,220 --> 00:02:50,800 personal wealth. 68 00:02:50,940 --> 00:02:52,300 Jay, thanks for joining us today. 69 00:02:52,300 --> 00:02:53,100 Thank you. 70 00:02:53,240 --> 00:02:54,260 What a buildup. 71 00:02:54,360 --> 00:02:55,480 That's actually impressive. 72 00:02:55,760 --> 00:02:58,320 It's rare that, I mean, it's probably some 73 00:02:58,320 --> 00:03:00,180 of our PR kit, but it's rare that 74 00:03:00,180 --> 00:03:01,820 anybody does it that extensively. 75 00:03:02,040 --> 00:03:03,860 I'm a little bit blushy, but thank you. 76 00:03:03,900 --> 00:03:05,460 I hope I can live up to the 77 00:03:05,460 --> 00:03:06,320 expectations. 78 00:03:06,660 --> 00:03:08,380 Well, the reality is we could spend the 79 00:03:08,380 --> 00:03:10,600 entire time just talking about your accolades because 80 00:03:10,600 --> 00:03:11,440 you've done so much. 81 00:03:11,500 --> 00:03:12,540 And I want to start by just thanking 82 00:03:12,540 --> 00:03:14,440 you for what you've done for all of 83 00:03:14,440 --> 00:03:15,200 us entrepreneurs. 84 00:03:15,680 --> 00:03:17,780 I don't know, I wonder, do you really 85 00:03:17,780 --> 00:03:20,660 know how much you've touched so many people 86 00:03:20,660 --> 00:03:20,920 out there? 87 00:03:20,920 --> 00:03:22,340 I know your clients, but there's so many 88 00:03:22,340 --> 00:03:24,000 of us out there that you've touched. 89 00:03:24,080 --> 00:03:25,400 Do you realize how many of us that 90 00:03:25,400 --> 00:03:26,900 you've out here in the world that you've 91 00:03:26,900 --> 00:03:27,020 helped? 92 00:03:27,560 --> 00:03:29,960 In truth, it's become a little bit of 93 00:03:29,960 --> 00:03:30,940 a blur. 94 00:03:31,220 --> 00:03:33,640 In my youth, I was very aggressive in 95 00:03:33,640 --> 00:03:35,480 doing seminars and trainings. 96 00:03:36,240 --> 00:03:38,280 And the good news is a lot of 97 00:03:38,280 --> 00:03:40,000 it landed very well with a lot of 98 00:03:40,000 --> 00:03:43,440 people who were younger, who became influencers and 99 00:03:43,440 --> 00:03:45,520 experts, and they've done a very nice job 100 00:03:45,520 --> 00:03:48,980 of perpetuating the methodology, both for themselves and 101 00:03:48,980 --> 00:03:50,840 teaching it in a very ethical manner. 102 00:03:51,400 --> 00:03:54,360 So I have no idea, although I hope 103 00:03:54,360 --> 00:03:57,720 it's extensive because the work that I always 104 00:03:57,720 --> 00:03:59,920 tried to do, Ty, was designed to elevate 105 00:03:59,920 --> 00:04:02,500 people to a much higher level of thinking, 106 00:04:02,820 --> 00:04:06,400 acting, transacting, and contributing to their market. 107 00:04:06,640 --> 00:04:10,040 And if I've succeeded beyond my expectation, that's, 108 00:04:10,420 --> 00:04:11,640 when you get to a certain age, your 109 00:04:11,640 --> 00:04:14,780 legacy value and the impact you can not 110 00:04:14,780 --> 00:04:17,860 have done but can still continue to create 111 00:04:17,860 --> 00:04:19,860 societally and business on a world. 112 00:04:19,940 --> 00:04:20,680 And I've been blessed. 113 00:04:20,839 --> 00:04:22,300 You probably know I've been all over the 114 00:04:22,300 --> 00:04:23,080 world many times. 115 00:04:23,300 --> 00:04:24,320 So it's very interesting. 116 00:04:24,520 --> 00:04:27,100 But no, I mean, it's nice when, I'm 117 00:04:27,100 --> 00:04:28,360 flattered about one thing. 118 00:04:28,700 --> 00:04:31,580 If I travel, it is not uncommon for 119 00:04:31,580 --> 00:04:33,340 people to come up to me from all 120 00:04:33,340 --> 00:04:35,920 over the world in a very joyous and 121 00:04:35,920 --> 00:04:37,100 appreciative way. 122 00:04:37,180 --> 00:04:38,840 I've never had anyone say, you're an asshole, 123 00:04:39,200 --> 00:04:42,400 you stole my money, you ruined our life. 124 00:04:42,560 --> 00:04:44,440 It's fortuitously the opposite. 125 00:04:44,440 --> 00:04:45,680 So it's very gratifying. 126 00:04:45,860 --> 00:04:46,980 But you get to a point where you 127 00:04:46,980 --> 00:04:48,460 just do what you do and you hope 128 00:04:48,460 --> 00:04:51,080 it has not just direct value, but that 129 00:04:51,080 --> 00:04:53,900 people are impacted enough that they share the 130 00:04:53,900 --> 00:04:56,380 belief system, the methodology with as many other 131 00:04:56,380 --> 00:04:56,700 people. 132 00:04:56,740 --> 00:04:57,800 It sounds like you've done it. 133 00:04:57,860 --> 00:05:01,200 So I'm grateful on behalf of myself, the 134 00:05:01,200 --> 00:05:02,900 body of work, and all the people you've 135 00:05:02,900 --> 00:05:03,100 helped. 136 00:05:03,260 --> 00:05:03,580 Thank you. 137 00:05:03,880 --> 00:05:05,420 Well, one of the biggest problems, and I 138 00:05:05,420 --> 00:05:07,260 appreciate that, one of the biggest problems that 139 00:05:07,260 --> 00:05:09,040 I've faced along the way and a lot 140 00:05:09,040 --> 00:05:11,660 of our audience faces and that you're masterful 141 00:05:11,660 --> 00:05:13,220 at fixing are revenue leaks. 142 00:05:13,220 --> 00:05:15,380 Just the revenue that's leaking out of the 143 00:05:15,380 --> 00:05:15,680 business. 144 00:05:15,860 --> 00:05:18,080 So what's your advice for how to identify 145 00:05:18,080 --> 00:05:20,300 the revenue leaks and then plug those leaks? 146 00:05:20,680 --> 00:05:22,000 That's a great question. 147 00:05:22,200 --> 00:05:24,040 If you don't mind, I always will try 148 00:05:24,040 --> 00:05:25,940 to answer the question asked, but I have 149 00:05:25,940 --> 00:05:27,900 a tendency to wanna do a little bit 150 00:05:27,900 --> 00:05:30,700 more context so that the answer has much 151 00:05:30,700 --> 00:05:32,840 more meaning and impact and people act on 152 00:05:32,840 --> 00:05:32,960 it. 153 00:05:33,280 --> 00:05:34,660 So the first thing I would do is 154 00:05:34,660 --> 00:05:36,840 have people understand that a lot of my 155 00:05:36,840 --> 00:05:39,200 early work was on variability. 156 00:05:39,860 --> 00:05:41,780 Variability means you do something one way, it 157 00:05:41,780 --> 00:05:42,580 produces X. 158 00:05:42,700 --> 00:05:44,520 You do it another, it can produce two 159 00:05:44,520 --> 00:05:45,800 X or one half X. 160 00:05:45,880 --> 00:05:48,320 You do another, it can produce multiple X 161 00:05:48,320 --> 00:05:50,340 now, but even more X later. 162 00:05:50,640 --> 00:05:52,300 And it usually takes the same amount of 163 00:05:52,300 --> 00:05:54,300 time, effort, opportunity. 164 00:05:54,620 --> 00:05:56,840 You deal in economic terms. 165 00:05:56,980 --> 00:05:57,900 I don't have my list here. 166 00:05:57,940 --> 00:05:59,860 Brian has it, but we have a list 167 00:05:59,860 --> 00:06:02,800 of something like 40 things that are assets 168 00:06:02,800 --> 00:06:04,040 nobody thinks about it. 169 00:06:04,100 --> 00:06:07,660 Time, effort, interaction, leads, access to the market, 170 00:06:08,200 --> 00:06:09,900 your ad, your follow-up. 171 00:06:09,900 --> 00:06:11,840 We have many proprietary concepts. 172 00:06:12,020 --> 00:06:14,740 One of them is called RSO, Revenue System 173 00:06:14,740 --> 00:06:15,620 Optimization. 174 00:06:15,980 --> 00:06:18,800 It starts before the first mile and it 175 00:06:18,800 --> 00:06:20,860 ends after the first mile. 176 00:06:20,980 --> 00:06:23,640 It looks at every interrelated activity you are 177 00:06:23,640 --> 00:06:27,480 currently engaged in right now on either a 178 00:06:27,480 --> 00:06:32,640 formal basis, informal basis, intermittent basis, episodic basis 179 00:06:32,640 --> 00:06:34,740 to generate your revenue. 180 00:06:35,100 --> 00:06:36,860 First of all, if you do anything formally, 181 00:06:36,860 --> 00:06:40,500 whether you spend money or it's organic, you 182 00:06:40,500 --> 00:06:42,180 are targeting a market. 183 00:06:42,600 --> 00:06:44,840 The question is, is the market you're targeting 184 00:06:44,840 --> 00:06:48,540 the most opportune and are you targeting like 185 00:06:48,540 --> 00:06:49,780 shotgun or rifle? 186 00:06:50,160 --> 00:06:53,200 Is the message you are taking to the 187 00:06:53,200 --> 00:06:56,740 market and the proposition you are providing to 188 00:06:56,740 --> 00:06:59,860 stimulate a response the very best one you 189 00:06:59,860 --> 00:07:01,700 could do that's going to appeal to the 190 00:07:01,700 --> 00:07:05,580 maximum number of the most desirable people? 191 00:07:05,580 --> 00:07:09,120 Are you reducing what's called the hurdle rate, 192 00:07:09,220 --> 00:07:11,580 the risk of starting a relationship? 193 00:07:11,900 --> 00:07:14,960 When you initiate a relationship, depending on whether 194 00:07:14,960 --> 00:07:17,480 it's a lead, whether it's an opt-in, 195 00:07:17,580 --> 00:07:20,480 whether it's a request for some item, resource 196 00:07:20,480 --> 00:07:24,620 document, registration for a webinar, how do you 197 00:07:24,620 --> 00:07:27,860 not just follow up in a conventional and 198 00:07:27,860 --> 00:07:31,420 a herd mentality way, how do you start 199 00:07:31,420 --> 00:07:34,780 from that point and elevate the value of 200 00:07:34,780 --> 00:07:37,340 whatever it is and also bridge it to 201 00:07:37,340 --> 00:07:39,760 the value of whatever you are and whatever 202 00:07:39,760 --> 00:07:40,600 you're offering? 203 00:07:40,900 --> 00:07:43,620 How do you progress somebody through the process? 204 00:07:43,620 --> 00:07:45,920 If they buy one time, do you have 205 00:07:45,920 --> 00:07:48,520 products or services they should be buying continually? 206 00:07:48,860 --> 00:07:51,400 If they buy all you have, is there 207 00:07:51,400 --> 00:07:54,260 other ways to ethically monetize it? 208 00:07:54,420 --> 00:07:58,060 If you don't get the maximum conversion or 209 00:07:58,060 --> 00:08:01,260 revenue yield from what you're doing, why? 210 00:08:01,260 --> 00:08:02,440 And so we start there. 211 00:08:02,540 --> 00:08:04,000 Then at the end of it, we say, 212 00:08:04,220 --> 00:08:05,780 what else could you do with the leads 213 00:08:05,780 --> 00:08:06,400 that don't? 214 00:08:06,420 --> 00:08:08,960 Don't convert the buyers who buy one time 215 00:08:08,960 --> 00:08:10,700 and could buy many, the buyers who buy 216 00:08:10,700 --> 00:08:12,680 all the time but don't buy everything, the 217 00:08:12,680 --> 00:08:14,360 buyers who buy everything and you got nothing 218 00:08:14,360 --> 00:08:16,120 else to sell, what else can you do 219 00:08:16,120 --> 00:08:18,900 if you have distribution channels you're using for 220 00:08:18,900 --> 00:08:19,480 one thing? 221 00:08:19,580 --> 00:08:21,760 Is there a lot of variability amongst the 222 00:08:21,760 --> 00:08:22,480 salespeople? 223 00:08:22,700 --> 00:08:25,560 If one person's five times better than another, 224 00:08:25,920 --> 00:08:28,280 what can you model about that person that'll 225 00:08:28,280 --> 00:08:31,740 make the other salespeople at least 10, 20 226 00:08:31,740 --> 00:08:32,500 % better? 227 00:08:32,700 --> 00:08:34,179 Do you know who excels at what? 228 00:08:34,220 --> 00:08:35,480 Who's better at opening accounts? 229 00:08:35,559 --> 00:08:38,400 Who's better at different kinds of industries or 230 00:08:38,400 --> 00:08:38,780 scenarios? 231 00:08:38,960 --> 00:08:40,659 Who's better at selling different products? 232 00:08:40,799 --> 00:08:42,460 Who's better at holding margin? 233 00:08:42,600 --> 00:08:43,780 Who's better at retention? 234 00:08:44,120 --> 00:08:45,520 I'm giving you just a few of the 235 00:08:45,520 --> 00:08:47,020 things, but it's a starting point. 236 00:08:47,300 --> 00:08:49,540 How did you, out of curiosity, develop and 237 00:08:49,540 --> 00:08:51,660 hone this skill as well as you have 238 00:08:51,660 --> 00:08:53,740 of finding these missed opportunities? 239 00:08:54,140 --> 00:08:55,840 It was totally accidental. 240 00:08:56,060 --> 00:08:58,600 I guess my origin story would help everybody 241 00:08:58,600 --> 00:09:01,780 and I haven't formally, excuse me, or formally 242 00:09:01,780 --> 00:09:03,820 for many, many, many years, I used to 243 00:09:03,820 --> 00:09:06,180 use it as the opening of my training. 244 00:09:06,340 --> 00:09:08,680 So I got started the first, at the 245 00:09:08,680 --> 00:09:09,720 beginning at age 18. 246 00:09:09,720 --> 00:09:11,400 I had two children at 20. 247 00:09:11,580 --> 00:09:12,600 It was very difficult. 248 00:09:12,820 --> 00:09:14,720 I had no formal education and the only 249 00:09:14,720 --> 00:09:17,480 people that would give me opportunity were very 250 00:09:17,480 --> 00:09:18,780 interesting entrepreneurs. 251 00:09:19,040 --> 00:09:20,880 They were qualitative, but they would not give 252 00:09:20,880 --> 00:09:21,520 me a salary. 253 00:09:21,660 --> 00:09:22,820 It was an eat what you kill. 254 00:09:23,060 --> 00:09:24,940 If you produced, you earned. 255 00:09:25,040 --> 00:09:26,260 If you didn't, you didn't. 256 00:09:26,260 --> 00:09:28,080 They could give a flying what about whether 257 00:09:28,080 --> 00:09:31,340 I spent a minute or 18 hours at 258 00:09:31,340 --> 00:09:32,220 whatever I was doing. 259 00:09:32,300 --> 00:09:34,520 All they cared about is delivering revenue and 260 00:09:34,520 --> 00:09:35,440 success or not. 261 00:09:35,880 --> 00:09:37,640 When you only eat when you earn, you 262 00:09:37,640 --> 00:09:40,000 realize what works, what doesn't, what works best. 263 00:09:40,400 --> 00:09:44,200 But I had the very wonderful, retrospectively, it 264 00:09:44,200 --> 00:09:45,820 was miserable at the time since I was 265 00:09:45,820 --> 00:09:46,960 not guaranteed anything. 266 00:09:47,240 --> 00:09:49,860 I had the wonderful ability to be in 267 00:09:49,860 --> 00:09:53,960 five, six different activities concurrently, meaning I could 268 00:09:53,960 --> 00:09:55,800 do hour here, two hours there, whatever it 269 00:09:55,800 --> 00:09:56,120 was. 270 00:09:56,120 --> 00:09:58,200 And as luck would have it, Ty, they 271 00:09:58,200 --> 00:09:59,440 were not in the same industry. 272 00:09:59,580 --> 00:10:00,180 Very important. 273 00:10:00,460 --> 00:10:03,640 After a couple of cycles of this, pardon 274 00:10:03,640 --> 00:10:06,500 me again, and doing about 10 or 15 275 00:10:06,500 --> 00:10:09,500 industries, I made a profound and a life 276 00:10:09,500 --> 00:10:10,800 -shifting realization. 277 00:10:11,240 --> 00:10:13,220 People in one industry do not have a 278 00:10:13,220 --> 00:10:17,400 clue how other people think, act, transact, market, 279 00:10:17,800 --> 00:10:22,560 strategize, source leads, convert leads, communicate, nothing. 280 00:10:22,560 --> 00:10:24,640 And so I was able to take rather 281 00:10:24,640 --> 00:10:29,960 commonplace methodologies, techniques, approaches, concepts from the industries 282 00:10:29,960 --> 00:10:34,180 I'd been in, combine into certain hybrids, apply 283 00:10:34,180 --> 00:10:36,000 them to the new industries I was in. 284 00:10:36,220 --> 00:10:37,800 And we were, like, I was the fair 285 00:10:37,800 --> 00:10:38,320 -haired child. 286 00:10:38,400 --> 00:10:39,500 I was extraordinary. 287 00:10:39,720 --> 00:10:42,760 Entrepreneur Magazine grew 20,000% in a 288 00:10:42,760 --> 00:10:44,820 year and got sold for, this was, I'm 289 00:10:44,820 --> 00:10:46,280 not, yeah, that was Entrepreneur Magazine. 290 00:10:46,700 --> 00:10:49,420 Icy Hot grew more than that in 18 291 00:10:49,420 --> 00:10:52,380 months and got sold for a small fortune. 292 00:10:53,000 --> 00:10:54,960 I got into the newsletter business and all 293 00:10:54,960 --> 00:10:56,680 the newsletters I helped blew up. 294 00:10:56,760 --> 00:10:59,580 I got into the gold brokerage business and 295 00:10:59,580 --> 00:11:00,700 all of them blew up. 296 00:11:00,940 --> 00:11:02,420 Not because I was, they thought I was 297 00:11:02,420 --> 00:11:04,880 brilliant, but just that I understood stuff they 298 00:11:04,880 --> 00:11:05,200 didn't. 299 00:11:05,300 --> 00:11:07,000 And then I was, after I realized the 300 00:11:07,000 --> 00:11:08,980 power of that, I was on a mission. 301 00:11:09,420 --> 00:11:10,600 I was hopelessly curious. 302 00:11:10,780 --> 00:11:11,980 I wanted to learn everything I could about 303 00:11:11,980 --> 00:11:12,620 everything I could. 304 00:11:12,720 --> 00:11:14,960 And then one more overlap, and it's a 305 00:11:14,960 --> 00:11:16,640 complex story, but I'm telling it to you 306 00:11:16,640 --> 00:11:17,660 to answer your question. 307 00:11:17,660 --> 00:11:20,480 I also had the very good fortune, and 308 00:11:20,480 --> 00:11:22,960 I still do, of helping over 300 of 309 00:11:22,960 --> 00:11:25,480 the world's top experts, Tony Robbins' client, David 310 00:11:25,480 --> 00:11:28,480 Johns' client, Brian Tracy I helped, Stephen, late 311 00:11:28,480 --> 00:11:30,560 Stephen Covey, his son, Stephen M. 312 00:11:30,620 --> 00:11:30,780 R. 313 00:11:30,820 --> 00:11:35,400 Covey, Anthony Scaramucci, a co-founder of FedEx, 314 00:11:35,440 --> 00:11:36,240 all kinds of people. 315 00:11:36,460 --> 00:11:39,720 But they mostly came to me not for 316 00:11:39,720 --> 00:11:41,080 help with their methodology. 317 00:11:41,740 --> 00:11:44,880 They came for help to command greater value, 318 00:11:44,880 --> 00:11:49,400 greater economic yield out of their methodology, greater 319 00:11:49,400 --> 00:11:52,860 capability of demonstrating to the market its tangible 320 00:11:52,860 --> 00:11:53,880 value. 321 00:11:54,120 --> 00:11:55,620 But before they could do that, I had 322 00:11:55,620 --> 00:11:58,240 to get a compressed, sort of a short 323 00:11:58,240 --> 00:11:59,780 course on their methodology. 324 00:12:00,000 --> 00:12:03,980 So I understand 300, 400 expertises most people 325 00:12:03,980 --> 00:12:05,400 would never be exposed to. 326 00:12:05,500 --> 00:12:07,780 So you take all the experiences I've had, 327 00:12:07,860 --> 00:12:09,900 now it's over a thousand industries, and it's 328 00:12:09,900 --> 00:12:10,500 real experience. 329 00:12:10,860 --> 00:12:13,760 A lot of people say, I've worked with 330 00:12:13,760 --> 00:12:17,660 150,000 businesses, and it's not a lie, 331 00:12:17,980 --> 00:12:19,720 but it's not necessarily a total truth because 332 00:12:19,720 --> 00:12:23,260 what they've done is present the same message, 333 00:12:23,460 --> 00:12:26,420 say it's a keynote, it's a workshop, but 334 00:12:26,420 --> 00:12:28,300 it wasn't really rolling your sleeves up being 335 00:12:28,300 --> 00:12:29,700 on the front lines of capitalism. 336 00:12:29,940 --> 00:12:32,040 I've spent the majority of my life not 337 00:12:32,040 --> 00:12:37,080 teaching, but doing, and being paid in correlation 338 00:12:37,080 --> 00:12:38,620 to the results I produced. 339 00:12:38,620 --> 00:12:43,060 So my context, my perspective, my worldview is 340 00:12:43,060 --> 00:12:46,840 much different than most theoretical experts. 341 00:12:47,200 --> 00:12:48,440 So I don't know if that helps you, 342 00:12:48,480 --> 00:12:50,120 but that's the answer to the question. 343 00:12:50,540 --> 00:12:51,080 I love that. 344 00:12:51,560 --> 00:12:53,280 Another thing I've seen you talk a little 345 00:12:53,280 --> 00:12:55,620 bit about is geometric growth principles. 346 00:12:55,960 --> 00:12:58,380 So how do you use these to be 347 00:12:58,380 --> 00:13:03,520 able to achieve exponential improvement with revenue and 348 00:13:03,520 --> 00:13:04,460 profit as well? 349 00:13:04,480 --> 00:13:06,440 Well, you have to understand that it's easier 350 00:13:06,440 --> 00:13:08,640 to work on the geometry of a business 351 00:13:08,640 --> 00:13:11,780 than it is doing it linear and incremental. 352 00:13:12,080 --> 00:13:13,360 I always talk about getting out of the 353 00:13:13,360 --> 00:13:15,980 incremental zone and getting into the exponential zone 354 00:13:15,980 --> 00:13:18,980 where everything you do, action, effort, dollar, people, 355 00:13:19,460 --> 00:13:23,560 everything is operating with optimal current and residual 356 00:13:23,560 --> 00:13:24,180 yield. 357 00:13:24,260 --> 00:13:25,680 And you can't do that if you don't 358 00:13:25,680 --> 00:13:28,540 have an understanding of the alternatives available to 359 00:13:28,540 --> 00:13:28,840 you. 360 00:13:28,980 --> 00:13:32,340 But I learned there's two ways to blow 361 00:13:32,340 --> 00:13:33,040 up a business. 362 00:13:33,040 --> 00:13:35,020 One is if you're lucky enough to find 363 00:13:35,020 --> 00:13:36,760 one breakthrough that just kills. 364 00:13:37,180 --> 00:13:37,860 It's a rarity. 365 00:13:38,360 --> 00:13:41,500 It is very difficult, not impossible, but it's 366 00:13:41,500 --> 00:13:42,020 much harder. 367 00:13:42,280 --> 00:13:45,160 The other is to improve many different activities, 368 00:13:45,340 --> 00:13:48,080 10 or 15% each, because people don't 369 00:13:48,080 --> 00:13:50,140 understand that it works on the geometry of 370 00:13:50,140 --> 00:13:50,520 a business. 371 00:13:50,660 --> 00:13:52,700 10 plus 10 plus 10 is 30. 372 00:13:52,820 --> 00:13:54,580 10 times 10 times 10 is 1,000. 373 00:13:54,820 --> 00:13:57,060 So if you have, we created years ago, 374 00:13:57,180 --> 00:14:00,160 Tony Robbins has built the foundation with acknowledgement 375 00:14:00,160 --> 00:14:03,360 of his business mastery program on my 10, 376 00:14:03,400 --> 00:14:03,900 10, 10. 377 00:14:04,020 --> 00:14:05,340 There's three ways to grow a business. 378 00:14:05,700 --> 00:14:06,920 You increase the number of buyers. 379 00:14:07,160 --> 00:14:09,620 You increase the size of the transaction ethically. 380 00:14:09,760 --> 00:14:12,020 You increase the frequency of purchase. 381 00:14:12,140 --> 00:14:13,480 And if you have nothing else to sell, 382 00:14:13,580 --> 00:14:16,420 the utility value means other ethical ways you 383 00:14:16,420 --> 00:14:19,860 can monetize that buyer relationship or even that 384 00:14:19,860 --> 00:14:21,060 prospect relationship. 385 00:14:21,400 --> 00:14:24,100 And if you increase three categories by only 386 00:14:24,100 --> 00:14:27,680 10% each, it's not 10%, it's 33 387 00:14:27,680 --> 00:14:29,660 % when you extend it out. 388 00:14:29,720 --> 00:14:30,880 I won't give you all the math now, 389 00:14:30,880 --> 00:14:32,140 but I'll be happy to give you a 390 00:14:32,140 --> 00:14:33,620 chart you can put up for your people. 391 00:14:34,020 --> 00:14:36,340 If you double your numbers, it's 800% 392 00:14:36,340 --> 00:14:36,800 growth. 393 00:14:36,940 --> 00:14:40,700 So there are very safe, very powerful, very 394 00:14:40,700 --> 00:14:44,860 little understood, and very, very, very highly predictable 395 00:14:44,860 --> 00:14:48,180 ways to grow any business. 396 00:14:48,420 --> 00:14:51,520 I guess you could say exponentially, and even 397 00:14:51,520 --> 00:14:52,740 more so to grow the bottom. 398 00:14:52,940 --> 00:14:55,080 Everyone talks about a 10X moonshot. 399 00:14:55,240 --> 00:14:57,520 And what they're telling you is 10X top 400 00:14:57,520 --> 00:14:57,860 line. 401 00:14:58,000 --> 00:14:59,720 And most people don't understand, to increase your 402 00:14:59,720 --> 00:15:02,840 top line 10X, very, very precarious. 403 00:15:03,020 --> 00:15:04,760 You're gonna normally need a lot more capital, 404 00:15:04,880 --> 00:15:06,720 a lot more people, a lot more marketing, 405 00:15:06,980 --> 00:15:11,660 a lot more infrastructure, a lot more inventory. 406 00:15:12,360 --> 00:15:15,000 And a lot of times it actually diminishes 407 00:15:15,000 --> 00:15:15,780 your margin. 408 00:15:16,020 --> 00:15:20,120 Whereas I probably know 97 categories, not just 409 00:15:20,120 --> 00:15:23,840 ways, but whole categories with multiple techniques and 410 00:15:23,840 --> 00:15:27,820 tactics within each category for multiplying your bottom 411 00:15:27,820 --> 00:15:31,220 line 10X without having to really create the 412 00:15:31,220 --> 00:15:32,760 same kind of a correlation at the top. 413 00:15:32,800 --> 00:15:34,720 In other words, you don't have to double 414 00:15:34,720 --> 00:15:37,820 your top line to multiply your bottom line 415 00:15:37,820 --> 00:15:38,920 many times over. 416 00:15:39,060 --> 00:15:40,620 And that's sort of a secret that most 417 00:15:40,620 --> 00:15:41,580 people don't understand. 418 00:15:42,280 --> 00:15:43,280 And it's interesting, because I see a lot 419 00:15:43,280 --> 00:15:45,180 of entrepreneurs bragging about the top line, when 420 00:15:45,180 --> 00:15:46,320 it's the bottom line that matters. 421 00:15:46,540 --> 00:15:48,180 So you're a master at this. 422 00:15:48,340 --> 00:15:49,600 What are some of the things that are 423 00:15:49,600 --> 00:15:52,020 the hidden assets in a business that are 424 00:15:52,020 --> 00:15:55,080 oftentimes overlooked that if you do address can 425 00:15:55,080 --> 00:15:57,720 actually accomplish 10X or more of the bottom 426 00:15:57,720 --> 00:15:58,200 line? 427 00:15:58,200 --> 00:15:59,900 Well, let's take a look at sunk costs 428 00:15:59,900 --> 00:16:00,340 for a minute. 429 00:16:00,520 --> 00:16:02,300 You have sunk costs in ads you run. 430 00:16:02,420 --> 00:16:03,920 It depends on what you sell. 431 00:16:04,340 --> 00:16:07,460 Those ads produce either a sale or a 432 00:16:07,460 --> 00:16:07,640 lead. 433 00:16:07,940 --> 00:16:09,980 You convert some number of those. 434 00:16:10,360 --> 00:16:12,260 If it's a sale, then is it a 435 00:16:12,260 --> 00:16:13,080 one-time sale? 436 00:16:13,240 --> 00:16:15,340 Is it something that should be multiple? 437 00:16:15,880 --> 00:16:18,540 Are there other products or services people buy 438 00:16:18,540 --> 00:16:22,160 before, during, after instead that could be added 439 00:16:22,160 --> 00:16:24,880 to that sale to double, redouble the profit 440 00:16:24,880 --> 00:16:26,500 each time that they purchase? 441 00:16:26,500 --> 00:16:29,800 Are there ways that you could more powerfully 442 00:16:29,800 --> 00:16:32,260 convert more people from your leads? 443 00:16:32,800 --> 00:16:35,260 Are there a way to monetize the leads 444 00:16:35,260 --> 00:16:37,380 that don't buy your product and get them 445 00:16:37,380 --> 00:16:40,280 to buy something so it recoups your sunk 446 00:16:40,280 --> 00:16:42,860 costs and gives you more money you can 447 00:16:42,860 --> 00:16:44,300 reinvest in marketing? 448 00:16:44,720 --> 00:16:48,140 Are you really understanding the lifetime value of 449 00:16:48,140 --> 00:16:49,660 different categories of buyers? 450 00:16:49,780 --> 00:16:52,400 All buyers aren't worth the same relative investment. 451 00:16:52,400 --> 00:16:56,020 All sources aren't worth the same relative investment. 452 00:16:56,620 --> 00:16:59,480 All ads don't produce buyers that are the 453 00:16:59,480 --> 00:17:01,340 same relative investment. 454 00:17:01,900 --> 00:17:04,099 And until you know, you're either over or 455 00:17:04,099 --> 00:17:06,220 under spending on what you're doing. 456 00:17:06,319 --> 00:17:10,040 Anybody who arbitrarily tie decides they're going to, 457 00:17:10,200 --> 00:17:13,700 if they have paid marketing, advertising, they're gonna 458 00:17:13,700 --> 00:17:16,420 give either a percent or a dollar amount 459 00:17:16,420 --> 00:17:17,000 every month. 460 00:17:17,339 --> 00:17:19,839 Whatever you're deciding, you're either committing too much 461 00:17:19,839 --> 00:17:20,420 or too little. 462 00:17:20,420 --> 00:17:22,680 You should understand three things. 463 00:17:23,180 --> 00:17:24,980 You should understand yield-based thinking. 464 00:17:25,160 --> 00:17:28,080 You should understand allowable acquisition costs. 465 00:17:28,280 --> 00:17:31,280 Allowable acquisition costs means when you know the 466 00:17:31,280 --> 00:17:34,120 relative value, not just on the first sale, 467 00:17:34,200 --> 00:17:36,980 but on predictable repeat sales in a time 468 00:17:36,980 --> 00:17:40,680 period, a year, lifetime, then you only then 469 00:17:40,680 --> 00:17:42,120 do you know how much you can afford 470 00:17:42,120 --> 00:17:44,920 to not spend, but invest to acquire the 471 00:17:44,920 --> 00:17:46,300 first sale or the lead. 472 00:17:46,600 --> 00:17:51,240 A 2D, 3D entrepreneur investor, a 2D is 473 00:17:51,240 --> 00:17:52,920 the typical person out there. 474 00:17:53,040 --> 00:17:56,120 He or she looks at revenue minus expense 475 00:17:56,120 --> 00:17:57,080 equals profit. 476 00:17:57,400 --> 00:17:59,100 And now a quick break to hear from 477 00:17:59,100 --> 00:17:59,760 our sponsor. 478 00:18:00,740 --> 00:18:02,420 Hey, it's Ty Crandall with Credit Suite. 479 00:18:02,600 --> 00:18:04,040 Many of our subscribers want to get the 480 00:18:04,040 --> 00:18:05,840 most money to grow their business at the 481 00:18:05,840 --> 00:18:06,760 best terms. 482 00:18:07,120 --> 00:18:09,040 Whether you're looking for startup capital, low interest 483 00:18:09,040 --> 00:18:11,740 credit lines and loans, or business credit, we 484 00:18:11,740 --> 00:18:12,700 can definitely help you. 485 00:18:12,700 --> 00:18:14,640 So give us a call at 877-600 486 00:18:14,640 --> 00:18:18,320 -2487, or schedule your free consultation at creditsuite 487 00:18:18,320 --> 00:18:20,660 .com forward slash consult to see how much 488 00:18:20,660 --> 00:18:22,320 money you can get approved for today. 489 00:18:22,780 --> 00:18:25,120 A 3D investor is much more strategic. 490 00:18:25,120 --> 00:18:27,020 He or she says, I don't care about 491 00:18:27,020 --> 00:18:27,760 just the moment. 492 00:18:27,880 --> 00:18:31,520 I want to know all the compound, residual, 493 00:18:32,380 --> 00:18:34,920 recurring yield I get on this asset called 494 00:18:34,920 --> 00:18:37,400 a leader, this asset called a buyer, this 495 00:18:37,400 --> 00:18:41,140 asset called a salesperson, this asset called a 496 00:18:41,140 --> 00:18:44,840 distribution channel, or this asset called a prospect. 497 00:18:45,200 --> 00:18:47,860 And unless you really understand that, you're under 498 00:18:47,860 --> 00:18:49,560 optimizing what you're doing. 499 00:18:49,660 --> 00:18:51,160 Those are a couple of things, but I 500 00:18:51,160 --> 00:18:51,980 mean, I can go on. 501 00:18:52,460 --> 00:18:54,980 There are the biggest, if you have any 502 00:18:54,980 --> 00:18:59,200 infrastructure, any employees, team, that the biggest, there's 503 00:18:59,200 --> 00:18:59,800 variability. 504 00:19:00,060 --> 00:19:02,500 There's variability, as I said, in salespeople. 505 00:19:03,120 --> 00:19:05,040 And you can fix that. 506 00:19:05,220 --> 00:19:08,460 I mean, if one salesperson is massively more 507 00:19:08,460 --> 00:19:11,120 successful than another, there's eight or nine sub 508 00:19:11,120 --> 00:19:12,360 elements in that. 509 00:19:12,720 --> 00:19:14,220 You can figure what he or she does 510 00:19:14,220 --> 00:19:14,700 differently. 511 00:19:14,900 --> 00:19:15,960 You can model it out. 512 00:19:16,240 --> 00:19:18,280 You can figure that certain people are specialists 513 00:19:18,860 --> 00:19:20,880 and are three, four times better at a 514 00:19:20,880 --> 00:19:24,280 certain thing, opening accounts or different industries or 515 00:19:24,280 --> 00:19:25,360 different scenarios. 516 00:19:25,740 --> 00:19:29,000 We've doubled business just by making people who 517 00:19:29,000 --> 00:19:31,980 were doing everything but had one real superpower, 518 00:19:32,220 --> 00:19:33,500 making them a specialist. 519 00:19:34,080 --> 00:19:36,740 If most people, a lot of companies that 520 00:19:36,740 --> 00:19:39,680 you probably deal with get a significant portion 521 00:19:39,680 --> 00:19:42,640 of their revenue from word of mouth or 522 00:19:42,640 --> 00:19:43,140 referrals. 523 00:19:43,420 --> 00:19:44,700 That's good and it's bad. 524 00:19:44,820 --> 00:19:46,780 It's good because it's an affirmation. 525 00:19:47,000 --> 00:19:50,100 It's their buyer base thinks them valuable enough 526 00:19:50,100 --> 00:19:52,020 and prizes them high enough to tell other 527 00:19:52,020 --> 00:19:52,420 people. 528 00:19:52,500 --> 00:19:56,020 But normally, if you have reactive referral generation 529 00:19:56,020 --> 00:19:59,560 as your driver, it's episodic, it's intermittent. 530 00:19:59,940 --> 00:20:02,100 One day, week, month, you get X, the 531 00:20:02,100 --> 00:20:04,120 other, you get something, nothing. 532 00:20:04,480 --> 00:20:06,160 Well, if you think about it, a referral 533 00:20:06,160 --> 00:20:11,180 generated buyer buys sooner, negotiates less, buys more, 534 00:20:11,520 --> 00:20:14,140 is more enjoyable to deal with, stays longer, 535 00:20:14,540 --> 00:20:16,520 refers more people, costs nothing. 536 00:20:17,080 --> 00:20:18,440 And yet the same people who get a 537 00:20:18,440 --> 00:20:20,480 lot of business or much of it from 538 00:20:20,480 --> 00:20:23,140 referral don't even, they spend money on the 539 00:20:23,140 --> 00:20:25,380 outside market trying to attract what I call 540 00:20:25,380 --> 00:20:28,420 outer peripheral trust, which is very hard to 541 00:20:28,420 --> 00:20:29,380 convert to a buyer. 542 00:20:29,520 --> 00:20:30,440 It's very inefficient. 543 00:20:30,700 --> 00:20:33,540 Whereas if you had at least one, we 544 00:20:33,540 --> 00:20:39,360 know 125, one, two, five, strategic referral generating 545 00:20:39,360 --> 00:20:41,940 systematic approaches that you could put in play 546 00:20:41,940 --> 00:20:46,600 in place to predictably multiply the quantity, quality, 547 00:20:46,700 --> 00:20:50,720 and convertibility of referral generating business that comes 548 00:20:50,720 --> 00:20:50,880 through. 549 00:20:50,960 --> 00:20:51,960 You can go on and on and on, 550 00:20:51,980 --> 00:20:53,400 but there's just a lot of stuff, man. 551 00:20:53,840 --> 00:20:55,580 You've used these kinds of strategies to really 552 00:20:55,580 --> 00:20:59,480 become the dominant force in multiple different markets. 553 00:20:59,820 --> 00:21:01,960 So what's your best advice for somebody else? 554 00:21:01,960 --> 00:21:03,540 I mean, what's the benefits of being the 555 00:21:03,540 --> 00:21:04,500 dominant force in a market? 556 00:21:04,860 --> 00:21:06,600 And what's your best advice for somebody that's 557 00:21:06,600 --> 00:21:08,760 trying to become that dominant force in their 558 00:21:08,760 --> 00:21:09,060 market? 559 00:21:09,460 --> 00:21:11,000 Well, I'm gonna give it to you a 560 00:21:11,000 --> 00:21:13,280 number of ways, and it's not arrogant. 561 00:21:13,440 --> 00:21:15,080 This is just to be very candid. 562 00:21:15,820 --> 00:21:18,540 You can command $120,000 for a day 563 00:21:18,540 --> 00:21:18,980 at a time. 564 00:21:19,100 --> 00:21:20,280 That's one benefit. 565 00:21:21,360 --> 00:21:23,820 You can get Tony Robbins to let you 566 00:21:23,820 --> 00:21:26,300 do a day together with him to his 567 00:21:26,300 --> 00:21:29,720 most precious group of people, his $150,000 568 00:21:29,720 --> 00:21:30,760 members. 569 00:21:30,760 --> 00:21:34,020 You can get to travel the world and 570 00:21:34,020 --> 00:21:36,800 be paid very handsomely and be given two 571 00:21:36,800 --> 00:21:39,640 first-class tickets in the presidential suite. 572 00:21:39,720 --> 00:21:42,280 There's a lot of perks, but probably more 573 00:21:42,280 --> 00:21:45,580 than that is you're operating in a rarefied 574 00:21:45,580 --> 00:21:48,860 strata of understanding and impact, and the world 575 00:21:48,860 --> 00:21:50,660 looks like a 3D movie and you have 576 00:21:50,660 --> 00:21:52,020 the only pair of glasses. 577 00:21:52,260 --> 00:21:54,760 It's much more exhilarating when you're operating as 578 00:21:54,760 --> 00:21:57,780 a preeminent person, whether it's you're running a 579 00:21:57,780 --> 00:22:00,360 company or whether you're a preeminent team member, 580 00:22:00,360 --> 00:22:02,500 manager, employee, whatever. 581 00:22:02,760 --> 00:22:04,300 It's just, it's night and day. 582 00:22:04,420 --> 00:22:05,720 I don't know if that answer is what 583 00:22:05,720 --> 00:22:06,420 you wanted to hear. 584 00:22:06,780 --> 00:22:07,340 No, absolutely. 585 00:22:07,700 --> 00:22:09,340 What do you think, and when you've talked 586 00:22:09,340 --> 00:22:11,260 about the benefits of being there, what do 587 00:22:11,260 --> 00:22:12,880 you think are some of the best strategies 588 00:22:12,880 --> 00:22:14,980 that somebody can deploy besides what you talked 589 00:22:14,980 --> 00:22:16,640 about to be able to become that dominant 590 00:22:16,640 --> 00:22:17,040 force? 591 00:22:17,460 --> 00:22:19,340 We did a mini course a couple of 592 00:22:19,340 --> 00:22:23,320 years ago on achieving greatness, and my premise 593 00:22:23,320 --> 00:22:25,360 then, Ty, was that every human being is 594 00:22:25,360 --> 00:22:28,400 innately programmed in their DNA to wanna be 595 00:22:28,400 --> 00:22:28,720 great. 596 00:22:28,720 --> 00:22:33,560 Nobody wants to be a mediocre entrepreneur, professional, 597 00:22:33,560 --> 00:22:38,780 salesperson, employee, man, woman, husband, wife, parent, friend, 598 00:22:38,960 --> 00:22:41,440 lover, but most people are, and the first 599 00:22:41,440 --> 00:22:44,120 thing is to understand what greatness looks like, 600 00:22:44,280 --> 00:22:46,240 and you can't do it unless you think 601 00:22:46,240 --> 00:22:50,820 about people you admire that personify different elements 602 00:22:50,820 --> 00:22:51,220 of greatness. 603 00:22:51,360 --> 00:22:53,440 We identified, I think, eight categories. 604 00:22:54,020 --> 00:22:56,600 Then you gotta see all these categories where 605 00:22:56,600 --> 00:22:59,600 you fall in terms of that, and then 606 00:22:59,600 --> 00:23:03,900 you've gotta decide which of those gaps is 607 00:23:03,900 --> 00:23:07,280 the most mission-critical to whatever you're trying 608 00:23:07,280 --> 00:23:09,100 to work on, your life, your being, your 609 00:23:09,100 --> 00:23:12,860 marriage, your children, your business, your career, but 610 00:23:12,860 --> 00:23:15,480 the hardest thing is to find the safest 611 00:23:15,480 --> 00:23:16,540 path to get there. 612 00:23:16,620 --> 00:23:19,020 Most people can't do that, and they also 613 00:23:19,020 --> 00:23:19,860 need an advocate. 614 00:23:20,540 --> 00:23:22,640 Your case with people who are trying to 615 00:23:22,640 --> 00:23:26,920 rebuild their business credit, you're their advocate, your 616 00:23:26,920 --> 00:23:27,340 team. 617 00:23:27,920 --> 00:23:30,420 In my case, I'm the advocate that won't 618 00:23:30,420 --> 00:23:34,940 allow people to undervalue their business, their product, 619 00:23:35,120 --> 00:23:35,800 their service. 620 00:23:36,020 --> 00:23:38,700 I'm someone who believes that if you are 621 00:23:38,700 --> 00:23:42,180 adding more value to the marketplace than your 622 00:23:42,180 --> 00:23:45,360 generic competitors, you have a moral obligation to 623 00:23:45,360 --> 00:23:46,960 reach as many people as you can, not 624 00:23:46,960 --> 00:23:48,820 because you're gonna make a lot more money, 625 00:23:49,140 --> 00:23:51,940 but because they will be deserved by lesser 626 00:23:51,940 --> 00:23:55,580 value-creating competitors, and they will be horribly 627 00:23:55,580 --> 00:23:58,820 served if they equivocate, procrastinate, and don't take 628 00:23:58,820 --> 00:23:59,200 action. 629 00:23:59,420 --> 00:24:01,240 So I think you have to reset your 630 00:24:01,240 --> 00:24:03,480 mental models, number one. 631 00:24:03,680 --> 00:24:06,100 I think you've gotta understand that preeminence is 632 00:24:06,100 --> 00:24:09,100 not about working just hard. 633 00:24:09,440 --> 00:24:12,220 It's about really a bunch of different things. 634 00:24:12,320 --> 00:24:13,960 The first is you wanna be on a 635 00:24:13,960 --> 00:24:16,060 mission and crusade on behalf of the market 636 00:24:16,060 --> 00:24:16,700 you serve. 637 00:24:16,960 --> 00:24:18,420 You don't wanna just fall in love with 638 00:24:18,420 --> 00:24:19,080 making money. 639 00:24:19,160 --> 00:24:20,820 You don't wanna fall in love with your 640 00:24:20,820 --> 00:24:22,600 company or even your product or service. 641 00:24:22,600 --> 00:24:24,160 You wanna fall in love with the people 642 00:24:24,160 --> 00:24:26,580 you serve, and you wanna see the work 643 00:24:26,580 --> 00:24:29,160 you do, the product you sell, the service, 644 00:24:29,420 --> 00:24:31,560 when it's at work in their life, their 645 00:24:31,560 --> 00:24:34,040 life is enhanced, their life is protected, their 646 00:24:34,040 --> 00:24:36,320 life is enriched, their life is entertained, depending 647 00:24:36,320 --> 00:24:37,920 on what product or service is. 648 00:24:38,260 --> 00:24:40,040 You want everybody in your organization to be 649 00:24:40,040 --> 00:24:40,680 on a mission. 650 00:24:41,120 --> 00:24:44,100 You wanna basically understand the user experience, the 651 00:24:44,100 --> 00:24:45,900 friction factors, and it eliminates a lot of 652 00:24:45,900 --> 00:24:47,440 things, but most people don't even get to 653 00:24:47,440 --> 00:24:49,260 that point because they're in it to make 654 00:24:49,260 --> 00:24:50,940 money, and it becomes laborious. 655 00:24:51,120 --> 00:24:53,100 Instead of making it boring, I find that 656 00:24:53,100 --> 00:24:55,040 if you have the right mindset, if you're 657 00:24:55,040 --> 00:24:59,300 operating at a preeminent, rarefied strata, everything is 658 00:24:59,300 --> 00:25:00,020 exhilarating. 659 00:25:00,240 --> 00:25:02,640 Even problems are fascinating because it's a challenge 660 00:25:02,640 --> 00:25:05,460 to resolve them and learn from them and 661 00:25:05,460 --> 00:25:07,680 build on them, and it's a whole different 662 00:25:07,680 --> 00:25:12,000 way of thinking, being, acting, and it's much 663 00:25:12,000 --> 00:25:13,380 more externally focused. 664 00:25:13,880 --> 00:25:15,360 Brian, you made a suggestion, and I thought 665 00:25:15,360 --> 00:25:17,040 it was crazy, something I've never done on 666 00:25:17,040 --> 00:25:19,280 a podcast interview before, because you are so 667 00:25:19,280 --> 00:25:21,180 knowledgeable about the questions I'm asking you. 668 00:25:21,180 --> 00:25:22,440 If you don't mind, ask me a question. 669 00:25:22,540 --> 00:25:24,340 Well, what do you think that business owners 670 00:25:24,340 --> 00:25:26,240 are interested to know but maybe don't know 671 00:25:26,240 --> 00:25:27,680 about business credit, if you had to ask 672 00:25:27,680 --> 00:25:28,060 a question? 673 00:25:28,400 --> 00:25:30,320 Sure, well, I think that most people don't 674 00:25:30,320 --> 00:25:30,740 understand. 675 00:25:30,940 --> 00:25:33,840 My observation, because I did a book with 676 00:25:33,840 --> 00:25:36,620 a guy named Roland Frazier on, the title 677 00:25:36,620 --> 00:25:38,360 was Business Wealth Without Risk, and it had 678 00:25:38,360 --> 00:25:40,200 to do with acquiring business, and it had 679 00:25:40,200 --> 00:25:42,940 a lot of very inventive ways to use 680 00:25:42,940 --> 00:25:47,300 credit and financial sources to really get control 681 00:25:47,300 --> 00:25:48,600 of underperforming businesses. 682 00:25:48,780 --> 00:25:50,440 I think the first thing is that most 683 00:25:50,440 --> 00:25:53,860 people don't realize that credit is usually, with 684 00:25:53,860 --> 00:25:57,380 growth companies, either credit or giving away equity 685 00:25:57,380 --> 00:25:58,940 in the business, you need a vehicle. 686 00:25:59,040 --> 00:26:01,740 Most companies, to try to grow internally just 687 00:26:01,740 --> 00:26:03,760 on your own cash flow, you're gonna be 688 00:26:03,760 --> 00:26:06,520 very limited unless you're a lifestyle, unless you're 689 00:26:06,520 --> 00:26:07,440 a lifestyle entrepreneur. 690 00:26:07,900 --> 00:26:10,900 So instead of fearing credit, you should appreciate 691 00:26:10,900 --> 00:26:11,340 it. 692 00:26:11,580 --> 00:26:13,740 You need to be judicious, but without it, 693 00:26:13,920 --> 00:26:16,000 I would say you're probably limited in your 694 00:26:16,000 --> 00:26:17,960 growth and your success, don't you think? 695 00:26:18,120 --> 00:26:18,740 Oh, absolutely. 696 00:26:18,740 --> 00:26:20,180 I would say very much so. 697 00:26:20,300 --> 00:26:21,620 As a matter of fact, I think business 698 00:26:21,620 --> 00:26:23,940 credit's more valuable than consumer credit because as 699 00:26:23,940 --> 00:26:25,980 an entrepreneur, so much of our net worth 700 00:26:25,980 --> 00:26:28,820 is tied up in our business, and business 701 00:26:28,820 --> 00:26:31,760 credit inherently just makes the business worth substantially 702 00:26:31,760 --> 00:26:32,440 more money. 703 00:26:32,620 --> 00:26:34,240 I've had a chance to spend time with 704 00:26:34,240 --> 00:26:36,520 Roland and teach a lot of his students 705 00:26:36,520 --> 00:26:37,540 to be able to how to do that, 706 00:26:37,680 --> 00:26:39,900 and it's astonishing how much even business credit 707 00:26:39,900 --> 00:26:41,940 itself can help them make the decision of 708 00:26:41,940 --> 00:26:44,600 the businesses they want to acquire, because those 709 00:26:44,600 --> 00:26:47,100 businesses are- My point to you is 710 00:26:47,100 --> 00:26:48,980 I don't think most people, I think they 711 00:26:48,980 --> 00:26:52,500 look at it as a negative that they 712 00:26:52,500 --> 00:26:54,660 feel is gonna bite them in the butt, 713 00:26:54,840 --> 00:26:56,980 and they don't understand it's the greatest leverage 714 00:26:56,980 --> 00:27:00,000 tool if you have the right strategy and 715 00:27:00,000 --> 00:27:02,660 if you've got the right business model. 716 00:27:02,720 --> 00:27:05,040 If you don't have a model that is 717 00:27:05,040 --> 00:27:08,180 going to grow because you get credit, and 718 00:27:08,180 --> 00:27:09,860 you don't have a model that that growth 719 00:27:09,860 --> 00:27:13,180 is going to produce enough incremental profit gain 720 00:27:13,180 --> 00:27:17,580 that'll easily service that credit, then you probably 721 00:27:17,580 --> 00:27:19,800 shouldn't do it, but if you understand that 722 00:27:19,800 --> 00:27:21,920 if you look at 90% of the 723 00:27:21,920 --> 00:27:24,840 largest companies that everybody admires, and they look 724 00:27:24,840 --> 00:27:26,480 at their stock, almost every one of them 725 00:27:26,480 --> 00:27:29,060 has enormous layers of debt. 726 00:27:29,260 --> 00:27:30,340 That's the only way they can grow. 727 00:27:30,420 --> 00:27:31,940 They either have debt, or they've given up 728 00:27:31,940 --> 00:27:34,720 a lot of their equity to venture capitalists 729 00:27:34,720 --> 00:27:38,820 and private equity and those, but financing is 730 00:27:38,820 --> 00:27:42,860 the lifeblood of outsized growth, but most people 731 00:27:42,860 --> 00:27:48,680 who are not major companies they're financially illiterate 732 00:27:48,680 --> 00:27:52,080 in terms, not demeaning them, just clinically die 733 00:27:52,080 --> 00:27:54,940 in terms of their understanding of the power 734 00:27:54,940 --> 00:27:58,880 of using business credit strategically. 735 00:27:59,120 --> 00:28:01,580 You talked about having the model, that if 736 00:28:01,580 --> 00:28:03,360 you have the right model, and then you 737 00:28:03,360 --> 00:28:05,020 have the money, that that's when you can 738 00:28:05,020 --> 00:28:06,540 really accomplish exponential growth. 739 00:28:06,820 --> 00:28:08,480 What's your best advice for everybody out there 740 00:28:08,480 --> 00:28:10,460 that's trying to figure out their way? 741 00:28:10,580 --> 00:28:12,680 They're trying to figure out the best model 742 00:28:12,680 --> 00:28:15,340 for their business to be able to set 743 00:28:15,340 --> 00:28:16,620 on fire, to be able to reach those 744 00:28:16,620 --> 00:28:17,800 levels of exponential growth. 745 00:28:17,980 --> 00:28:19,340 Well, I think it's start where you are 746 00:28:19,340 --> 00:28:21,260 and see what you don't know you know 747 00:28:21,260 --> 00:28:22,100 about your business. 748 00:28:22,260 --> 00:28:23,440 What's the average sale worth? 749 00:28:23,540 --> 00:28:26,460 What's the average residual value, lifetime value? 750 00:28:26,540 --> 00:28:27,900 But how much, if you get a hundred 751 00:28:27,900 --> 00:28:30,240 new buyers, what are you gonna make the 752 00:28:30,240 --> 00:28:31,220 first time on them? 753 00:28:31,440 --> 00:28:33,420 How much more could you add to that 754 00:28:33,420 --> 00:28:34,740 ethically with an upsell? 755 00:28:35,080 --> 00:28:38,080 How much downsell could you use to get 756 00:28:38,080 --> 00:28:40,480 revenue from the ones that currently don't buy 757 00:28:40,480 --> 00:28:41,980 your one offering? 758 00:28:41,980 --> 00:28:44,520 How many repurchases could you get in a 759 00:28:44,520 --> 00:28:45,220 period of time? 760 00:28:45,380 --> 00:28:48,700 What would those repurchases produce in combination as 761 00:28:48,700 --> 00:28:49,660 far as profit? 762 00:28:50,100 --> 00:28:53,920 If you had more funding to expand that 763 00:28:53,920 --> 00:28:56,120 front end, the number of buyers or the 764 00:28:56,120 --> 00:28:59,920 backend acquiring more products to sell, what would 765 00:28:59,920 --> 00:29:03,040 the worst case, best case outcome be? 766 00:29:03,380 --> 00:29:04,940 What are the margins be? 767 00:29:05,080 --> 00:29:07,840 How much extra, how can you test it 768 00:29:07,840 --> 00:29:10,880 before you get yourself in too much trouble? 769 00:29:10,880 --> 00:29:13,260 And what's the highest and best use of 770 00:29:13,260 --> 00:29:13,380 it? 771 00:29:13,460 --> 00:29:14,280 Is it advertising? 772 00:29:14,440 --> 00:29:15,540 Is it a sales force? 773 00:29:15,740 --> 00:29:17,780 Is it partnerships outside? 774 00:29:18,620 --> 00:29:20,560 And I think most people live in a 775 00:29:20,560 --> 00:29:24,420 very, very limited world of understanding and without 776 00:29:24,420 --> 00:29:29,580 expanded knowledge, you can't really capitalize on the 777 00:29:29,580 --> 00:29:35,440 explosive opportunities that judicious strategic use of credit 778 00:29:35,440 --> 00:29:37,160 in business can provide. 779 00:29:37,520 --> 00:29:38,320 I mean, it's hilarious. 780 00:29:38,880 --> 00:29:41,500 We've had people that had a very successful 781 00:29:41,500 --> 00:29:44,080 small business and we would say to them, 782 00:29:44,480 --> 00:29:46,420 so why don't you turn into a larger 783 00:29:46,420 --> 00:29:46,740 one? 784 00:29:46,840 --> 00:29:47,920 And they said, well, I just don't have 785 00:29:47,920 --> 00:29:48,480 the capital. 786 00:29:48,720 --> 00:29:50,320 And I'd say, let's just do the numbers. 787 00:29:50,660 --> 00:29:52,380 And I'd show them that every time they 788 00:29:52,380 --> 00:29:54,700 brought in a brand new, like if they 789 00:29:54,700 --> 00:29:57,000 brought in 10 prospects and they got four 790 00:29:57,000 --> 00:29:58,980 buyers and that buyer bought.