WEBVTT - Seizing the Opportunity: Navigating the Largest Wealth Transfer in History - The Mark Moss Show 0:00:00.280 --> 0:00:02.680 Hello, and welcome to another episode of the Mark Mos Show. 0:00:02.680 --> 0:00:05.760 We're always running through the changes that are happening in 0:00:05.760 --> 0:00:07.240 the world right now. Of course, we're always looking at 0:00:07.240 --> 0:00:11.879 through the lens of politics, finance, and technology, and today 0:00:11.960 --> 0:00:14.400 I got something a little bit different for you. Today, 0:00:14.440 --> 0:00:17.200 I want to talk about something else, another phenomenon that 0:00:17.200 --> 0:00:18.759 I've been studying for over a dozen years, and this 0:00:18.880 --> 0:00:22.840 is about a wealth transfer now that I guess fits 0:00:22.840 --> 0:00:25.880 into you know, finance, of course, but it's a little 0:00:25.920 --> 0:00:28.040 bit of a different angle now. Typically I talk about 0:00:28.040 --> 0:00:31.560 wealth transfers in regards to the economic cycle booms and bust. 0:00:32.200 --> 0:00:34.519 Whenever the market goes up really fast, it creates a 0:00:34.560 --> 0:00:36.320 lot of wealth, and then the crash happens, and then 0:00:36.440 --> 0:00:39.159 all that wealth transfers to somebody else, similar to what 0:00:39.200 --> 0:00:41.920 happened to me in two thousand and eight. I built 0:00:42.000 --> 0:00:46.240 up a massive amount of wealth leading into the boom cycle, 0:00:46.280 --> 0:00:48.560 and then when the bust happened, I lost most of 0:00:48.600 --> 0:00:51.680 that wealth and it got transferred to somebody else. So 0:00:51.880 --> 0:00:54.360 booms and bus create these wealth transfer cycles, which is 0:00:54.360 --> 0:00:56.640 why I study them. I want to make sure that 0:00:56.640 --> 0:00:58.720 I'm always on the receiving end of this wealth transfer 0:00:59.320 --> 0:01:02.400 other ways that these giant wealth transfers are through times 0:01:02.400 --> 0:01:05.280 of wealth. So, for example, with bitcoin, I believe bitcoin 0:01:05.319 --> 0:01:07.480 is one of the biggest wealth transfers that we have today. 0:01:08.080 --> 0:01:10.360 And people that are early are making a lot of 0:01:10.360 --> 0:01:12.440 money by owning bitcoin, and those that are missing are 0:01:12.440 --> 0:01:14.160 going to come in later and it's going to be 0:01:14.160 --> 0:01:14.679 too late. 0:01:14.560 --> 0:01:15.200 For a lot of them. 0:01:15.600 --> 0:01:19.000 So technology gives us that early adopters of technology allow 0:01:19.080 --> 0:01:21.640 this wealth to flow to us. Another way that this 0:01:21.720 --> 0:01:23.039 is going to happen, and what I'm going to talk 0:01:23.040 --> 0:01:24.560 about today is something a little bit different than I 0:01:24.600 --> 0:01:26.840 normally talk about, but it's going to lead to one 0:01:26.840 --> 0:01:29.760 of the greatest wealth transfers in history, and that is 0:01:29.840 --> 0:01:34.240 the largest segment of the population that baby boomers are 0:01:34.280 --> 0:01:36.920 all retiring. They've been retiring for the last year, they 0:01:36.959 --> 0:01:41.120 have about another dozen years or so left, and all 0:01:41.160 --> 0:01:43.520 of this wealth, trillions of dollars of this wealth is 0:01:43.560 --> 0:01:48.400 going to transfer, trillions of dollars, will be moving hands, 0:01:48.680 --> 0:01:51.560 tens of trillions of dollars. And so when this much 0:01:51.640 --> 0:01:54.000 money moves, all we have to do is get on 0:01:54.040 --> 0:01:56.400 the receiving end of it. All right, I've been on 0:01:56.400 --> 0:01:58.960 the giving end of it before, it's no fun take 0:01:58.960 --> 0:02:00.040 it from me. You don't want to be there. And 0:02:00.160 --> 0:02:02.400 so how can we do that, Well, we have to 0:02:02.560 --> 0:02:06.200 understand what it is that they own, how are they're 0:02:06.240 --> 0:02:08.639 going to be transferring it, and then how we can 0:02:08.680 --> 0:02:10.240 get in the middle of it. So that's what I'm 0:02:10.240 --> 0:02:12.840 gonna talk about today. Something a little bit different. If 0:02:12.880 --> 0:02:15.600 you are a baby boomer and you own a business, 0:02:15.720 --> 0:02:19.200 then this is for you. If you are a gen 0:02:19.360 --> 0:02:21.160 X or a millennial that want to get one of 0:02:21.200 --> 0:02:23.440 these business to flow to you, this it could be 0:02:23.480 --> 0:02:25.720 for you. If you want to take advantage of this 0:02:25.800 --> 0:02:26.680 transfer by. 0:02:26.560 --> 0:02:29.520 Any means, then this episode is for you. 0:02:29.520 --> 0:02:31.079 It's a little bit different than we talk about today, 0:02:31.320 --> 0:02:33.639 But just for some stats to sort of frame this up, 0:02:34.120 --> 0:02:37.640 baby boomers today make up about forty one percent of 0:02:37.680 --> 0:02:41.640 small business owners or franchise owners all right. Now, there's 0:02:41.639 --> 0:02:44.200 also the like sort of echo boom generation gen X 0:02:44.240 --> 0:02:46.640 that also owns about a forty percent share as well, 0:02:46.800 --> 0:02:49.040 But there's forty one percent that the baby boomers own. 0:02:49.280 --> 0:02:53.960 Total is about twelve million businesses. Twelve million businesses that 0:02:54.000 --> 0:02:58.640 will either be shut down, handed off to a kid, 0:02:59.040 --> 0:03:01.640 or sold off. All right, those are the three options 0:03:01.639 --> 0:03:05.120 that they have. This is tens of trillions of dollars 0:03:05.120 --> 0:03:07.359 of wealth that's going to be passed off, and so 0:03:07.440 --> 0:03:09.800 how can we take advantage of this. Let me break 0:03:09.800 --> 0:03:12.040 down a little bit of math so you can understand 0:03:12.160 --> 0:03:14.400 how big of a problem this is going to be. 0:03:16.080 --> 0:03:19.680 There's twelve million baby boomers and they own businesses, and 0:03:19.720 --> 0:03:22.639 these businesses they need to do something with them over 0:03:22.680 --> 0:03:25.280 this next dozen years or so. Now let me give 0:03:25.280 --> 0:03:27.160 you an example of this so you can understand. My 0:03:27.280 --> 0:03:31.040 father is a baby boomer. My father had a business 0:03:31.040 --> 0:03:34.840 for like thirty years, doing a construction business. Over thirty 0:03:34.880 --> 0:03:37.640 years of business, he built up a giant client base, 0:03:37.880 --> 0:03:41.280 massive amounts of good will, and he has a steady 0:03:41.320 --> 0:03:44.320 stream of business that just comes organically because you know, 0:03:44.400 --> 0:03:46.920 a word of mouth and goodwill and customers referrals things 0:03:46.960 --> 0:03:50.240 like that. His phone number rings. People want him to 0:03:50.280 --> 0:03:52.880 come do work. But yet he didn't want to do 0:03:52.920 --> 0:03:53.600 it anymore. He was tired. 0:03:53.640 --> 0:03:54.240 He wanted to retire. 0:03:54.760 --> 0:03:56.760 I didn't want it, and none of my siblings, none 0:03:56.800 --> 0:03:57.280 of my other. 0:03:57.200 --> 0:03:58.600 Brothers and sisters wanted it either. 0:03:59.040 --> 0:04:01.320 And so what did my dad do? Instead of selling 0:04:01.360 --> 0:04:04.480 that business, he just shut it down, literally just closed 0:04:04.520 --> 0:04:08.240 it Now, typically a service based business would be worth 0:04:08.400 --> 0:04:12.280 maybe three to four times one year's profit. So let's 0:04:12.280 --> 0:04:15.040 say that he was making, you know, just let's call 0:04:15.080 --> 0:04:19.279 it a million dollars a year of top line revenue. 0:04:19.680 --> 0:04:22.480 Let's say that he's making thirty forty percent, so he's 0:04:22.480 --> 0:04:25.520 made three four hundred grand. Well, now you can multiply 0:04:25.600 --> 0:04:27.800 that at times three or four, So three hundred grand 0:04:27.800 --> 0:04:31.600 times four is one point two million. So instead of 0:04:31.600 --> 0:04:34.680 putting one point two million dollars in his pocket, or 0:04:34.680 --> 0:04:36.480 maybe he would have done a deal for like two 0:04:36.560 --> 0:04:38.800 hundred and fifty down and then finance the rest over 0:04:38.880 --> 0:04:40.760 over time, and now he'd have an annuity stream as 0:04:40.760 --> 0:04:43.680 he goes into retirement. Instead of that he has zero. 0:04:44.440 --> 0:04:47.479 Shut it down. All those customers that want business now 0:04:48.000 --> 0:04:51.040 find a dead end number. Now this wasn't a smart 0:04:51.040 --> 0:04:54.000 thing to do, but that's about the rate of what's 0:04:54.080 --> 0:04:57.880 going on, which creates a massive opportunity for you if 0:04:57.880 --> 0:04:59.720 you'd like to get into businesses. But it's also a 0:04:59.760 --> 0:05:02.760 mass opportunity for business owners. They don't have to do that. 0:05:02.800 --> 0:05:04.360 So let's break down some of this maths. So twelve 0:05:04.360 --> 0:05:06.560 million business owners that need to do something with their 0:05:06.600 --> 0:05:10.200 businesses over the next decade or so. Let's just assume 0:05:10.279 --> 0:05:13.840 that about forty percent of those business owners decide just 0:05:13.880 --> 0:05:16.279 to close down their business or just give it to 0:05:16.279 --> 0:05:19.719 their kids. So forty percent of them don't sell their businesses. 0:05:19.760 --> 0:05:21.520 They just either shut them down like my dad did, 0:05:21.920 --> 0:05:25.600 or they handed over their kids. Now, that leaves seven 0:05:25.640 --> 0:05:29.480 point two million businesses that will try to be sold. 0:05:29.560 --> 0:05:32.800 They will seek buyers of some sort. Now, if we 0:05:32.920 --> 0:05:36.520 divide the seven point two million businesses that will be 0:05:36.560 --> 0:05:40.320 sold over let's just even be conservative, let's say fifteen 0:05:40.360 --> 0:05:42.320 years instead of ten years. Let's give it fifteen years. 0:05:42.360 --> 0:05:44.359 So we divide the seven point two million divided by 0:05:44.400 --> 0:05:49.359 fifteen years, gives us about five hundred thousand businesses per 0:05:49.480 --> 0:05:52.760 year that will go onto the market for sale. This 0:05:52.920 --> 0:05:58.400 is a massive amount, a massive wealth transfer. Now, five 0:05:58.480 --> 0:06:00.440 hundred thousand business per year. Now, let's just put this 0:06:00.480 --> 0:06:02.680 into comparison. Maybe you don't understand how big of a 0:06:02.760 --> 0:06:05.400 number that is. Last year, according to the old logic, 0:06:06.040 --> 0:06:09.480 in the United States, ten thousand, five hundred and ninety 0:06:09.480 --> 0:06:12.960 seven five hundred and nine seven businesses closed M and 0:06:13.000 --> 0:06:15.840 A transactions mergers and acquisitions. At least that's what was 0:06:15.839 --> 0:06:18.520 announced there was probably more, we don't know if they 0:06:18.560 --> 0:06:21.120 weren't announced, But let's just triple that number. So let's 0:06:21.120 --> 0:06:24.800 stay instead of ten thousand, five hundred, let's say roughly 0:06:24.880 --> 0:06:26.279 thirty thousand. 0:06:26.040 --> 0:06:27.600 Businesses changed hands. 0:06:28.200 --> 0:06:31.520 All right, Now, how does thirty thousand businesses compared to 0:06:31.600 --> 0:06:36.680 the five hundred thousand businesses that are scheduled to change hands? Well, 0:06:36.720 --> 0:06:42.440 that's about fifteen times larger instead of thirty thousand. That's 0:06:42.440 --> 0:06:44.839 about what the market can absorb. Right now. There's people 0:06:44.880 --> 0:06:47.760 buying those businesses, but we go from thirty thousand to 0:06:47.760 --> 0:06:51.520 five hundred thousand business there's not enough demand for the 0:06:51.520 --> 0:06:54.159 amount of supply that's about to hit the market. These 0:06:54.200 --> 0:06:57.039 baby boom baby boomer businesses will hit the market, and 0:06:57.080 --> 0:07:01.640 it's going to just completely overwhelm the demand. Now, what 0:07:01.839 --> 0:07:05.160 happens when this supply outstrips the demand when the price 0:07:05.200 --> 0:07:08.760 goes down, which means then these baby boomers that are 0:07:08.800 --> 0:07:11.200 selling these businesses or wanting to be selling these businesses 0:07:11.240 --> 0:07:13.800 are going to be getting a fraction of what they 0:07:13.800 --> 0:07:17.680 should be getting. It's not real good if you are 0:07:17.720 --> 0:07:19.600 trying to sell the business. Now, it's great if you 0:07:19.640 --> 0:07:21.480 want to buy a business, which is why I'm saying 0:07:22.000 --> 0:07:24.720 this wealth is going to transfer. So even if you 0:07:24.720 --> 0:07:26.560 don't own a business, even if you're a millennial or 0:07:26.600 --> 0:07:28.320 Gen x er and you want to get in, there's 0:07:28.360 --> 0:07:31.280 going to be a massive opportunity in front of you. 0:07:32.400 --> 0:07:34.720 Or if you do own a business, you have to 0:07:34.800 --> 0:07:38.560 understand that they're going to face massive selling pressure, and 0:07:38.600 --> 0:07:41.720 so you need to change your business so that you 0:07:41.800 --> 0:07:43.360 stand out that you're one of the best, that you 0:07:43.400 --> 0:07:45.840 can still command a premium when everybody else is getting 0:07:45.840 --> 0:07:48.560 discounted to you command a premium. And maybe you want 0:07:48.560 --> 0:07:51.200 to front run this trend once you find out about it. 0:07:51.800 --> 0:07:54.000 So there's a few ways that you can do this, 0:07:54.960 --> 0:07:56.600 a few ways that you can take advantage of this 0:07:56.600 --> 0:07:57.920 that I want to walk you through, and I really 0:07:57.960 --> 0:08:01.320 want to kind of give you this systematic framework. I 0:08:01.360 --> 0:08:06.000 want to talk about five pivotal stages to transform your business. 0:08:08.160 --> 0:08:11.240 To set that business up so it's highly desirable so 0:08:11.280 --> 0:08:13.360 you get massive amounts of money, or if you're buying 0:08:13.400 --> 0:08:15.880 that business, you know how to do that as well. 0:08:16.720 --> 0:08:19.520 So we'll walk you through that. And I want to 0:08:19.560 --> 0:08:23.440 talk about, you know, getting you out of the business, 0:08:23.440 --> 0:08:25.480 because the goal of the business, I mean, sure you're 0:08:25.520 --> 0:08:27.680 solving problems and sure your meeting needs and all those things, 0:08:27.680 --> 0:08:31.000 but ultimately you want to Most of us have started 0:08:31.000 --> 0:08:34.240 businesses to increase our income, but also to somewhat be free, 0:08:34.280 --> 0:08:37.720 financially free. And most people just have jobs. And so 0:08:37.800 --> 0:08:39.880 no matter where you're at in your career on a 0:08:39.920 --> 0:08:42.280 business or thinking about starting a business, this is information 0:08:42.400 --> 0:08:45.120 that you want to have. You don't want to be 0:08:45.280 --> 0:08:47.920 trapped as in owning a job. You want to own 0:08:47.960 --> 0:08:50.440 a business. The difference would be I mean, I guess 0:08:50.520 --> 0:08:53.360 just ask yourself a question, what would happen if you 0:08:53.440 --> 0:08:55.560 had a business and you took a month off or 0:08:55.600 --> 0:08:58.640 three months off, or six months off or twelve months off. 0:08:59.559 --> 0:09:02.920 Would that business still continue to run? And how could 0:09:03.000 --> 0:09:05.679 you make sure that you continue to run? And how 0:09:05.679 --> 0:09:10.000 could you really turn this business into a company. That's 0:09:10.000 --> 0:09:13.080 what the difference is, a business into a company that 0:09:13.120 --> 0:09:16.679 would systematically transform that and allow you to achieve your 0:09:16.720 --> 0:09:19.640 ideal exit or be exitable. That's what we're going to cover. 0:09:19.640 --> 0:09:21.480 I'm gonna give you five steps here when we come back. 0:09:21.520 --> 0:09:23.720 If you're just tune, you're listening to the Markmas show, 0:09:24.000 --> 0:09:25.800 something a little different for you. I hopefully enjoy it. 0:09:25.960 --> 0:09:27.520 I'll be back with more in a minute. Don't go away, 0:09:28.200 --> 0:09:29.679 all right, welcome back. If you're just tune in, you're 0:09:29.679 --> 0:09:31.840 listening to the Mark Maas Show. We're talking about the 0:09:31.960 --> 0:09:35.080 greatest wealth transfer in history that is coming our way. 0:09:35.760 --> 0:09:37.240 I don't want to show you to take advantage of it, 0:09:37.360 --> 0:09:39.840 whether you are the one transferring away or the one 0:09:39.880 --> 0:09:42.440 that you want them to be transferred to you. And 0:09:42.480 --> 0:09:44.160 we're talking about it through business. So if you if 0:09:44.200 --> 0:09:46.360 you have a business, own a business, want to own 0:09:46.400 --> 0:09:48.360 a business, and you want to take advantage of this transfer, 0:09:48.440 --> 0:09:52.720 you want to make sure you can command a premium 0:09:52.720 --> 0:09:54.280 over everybody else because there's going to be a massive 0:09:54.280 --> 0:09:56.720 amount of supply. And this is what you need to 0:09:56.720 --> 0:09:58.400 do now. If you want to buy one of these businesses, 0:09:58.480 --> 0:09:59.840 you still need to you still need to know this 0:09:59.840 --> 0:10:02.920 in information because what happens is for most people, the 0:10:02.960 --> 0:10:05.719 majority of these baby boomers that have these small businesses, 0:10:05.760 --> 0:10:08.560 they don't own. They don't own a company. A company 0:10:08.640 --> 0:10:11.559 sort of being like a separate entity that can run 0:10:11.600 --> 0:10:13.320 on its own The legal definition of a company would 0:10:13.360 --> 0:10:15.560 be like its own legal entity that has its own 0:10:15.600 --> 0:10:19.679 tax code all that, and so using that frame of reference, 0:10:19.840 --> 0:10:22.320 a company sort of can run its own it's separate 0:10:22.320 --> 0:10:24.600 from you, Its identity is separate from you as the founder, 0:10:24.920 --> 0:10:27.000 but the founder is more like a business where you 0:10:27.120 --> 0:10:30.080 run that. And so let's talk about the first stage. 0:10:30.120 --> 0:10:32.240 And this is where most people are and I want 0:10:32.240 --> 0:10:34.800 to show you the five exits. So the first stage is. 0:10:35.000 --> 0:10:35.840 You're a worker. 0:10:36.080 --> 0:10:39.320 You're a worker in the business, and typically you're a technician. 0:10:39.640 --> 0:10:41.679 So what do I mean by a technician. Well, let's 0:10:41.720 --> 0:10:45.360 say that you have a job as a baker or 0:10:45.440 --> 0:10:49.640 a dog groomer, or you fix cars, and you're like, man, 0:10:49.720 --> 0:10:51.760 I'm sick of working at this auto mechanic place and 0:10:52.000 --> 0:10:54.440 making my boss the owner all this money. I'm going 0:10:54.520 --> 0:10:57.000 to go start my own mechanic shop, or I'm going 0:10:57.040 --> 0:10:58.920 to go start my own bakery. I'm going to go 0:10:59.000 --> 0:11:02.360 start my own dog grooming business. So you leave the 0:11:02.360 --> 0:11:04.880 dog room or to go start your own dog grooming business, 0:11:04.880 --> 0:11:09.920 your own massage business, or whatever it may be, and 0:11:09.960 --> 0:11:12.600 you end up working in the business as a technician. 0:11:12.679 --> 0:11:15.440 I used to groom dogs for this other company, Now 0:11:15.600 --> 0:11:17.800 do I groom dogs for my company. 0:11:17.840 --> 0:11:19.839 I used to repair cars for. 0:11:19.920 --> 0:11:22.560 This mechanic shop. Now I repair cars, but for my 0:11:22.720 --> 0:11:26.200 own mechanic shop. So you're the technician, you're in the job. 0:11:26.240 --> 0:11:26.880 You're doing the role. 0:11:26.920 --> 0:11:31.040 Now typically this would be self employed small business. You know, 0:11:31.120 --> 0:11:33.040 maybe you have somebody in there doing the books for 0:11:33.120 --> 0:11:35.880 you and answering the phone, maybe someone's even trying to 0:11:35.880 --> 0:11:37.600 do some sort of ads for you, things like that, 0:11:37.840 --> 0:11:40.240 but at the end of the day, it's you doing 0:11:40.280 --> 0:11:43.600 the job, doing the work. You're the technician. And so 0:11:43.640 --> 0:11:46.200 at the stage you have a business, I mean there's 0:11:46.200 --> 0:11:49.120 a company that, there's a business there, there's employees there, 0:11:49.280 --> 0:11:51.760 there's business coming through, but you're in that role. You're 0:11:51.920 --> 0:11:55.720 in the business. Now. You could at this point, you know, 0:11:55.760 --> 0:11:59.320 you could start to hire other technicians, but the first 0:11:59.400 --> 0:12:03.800 exit is who leave this role, to exit the worker role, 0:12:03.840 --> 0:12:06.280 exit the line? And so how do we do that? 0:12:06.440 --> 0:12:08.240 What we want to do is we want to be 0:12:08.360 --> 0:12:12.440 able to hire other technicians to take our role. Now. 0:12:12.480 --> 0:12:15.320 One of the benefits is that, or one of the 0:12:15.320 --> 0:12:17.560 things that we should think about sometimes is starting businesses 0:12:17.559 --> 0:12:19.800 that we're not a technician in. So it might be 0:12:19.800 --> 0:12:22.280 better for the auto mechanic to go set up a 0:12:22.320 --> 0:12:24.360 dog grooming business, and a dog groomer to set up 0:12:24.400 --> 0:12:27.520 an auto mechanic business. The reason why is a dog 0:12:27.520 --> 0:12:29.800 groomer doesn't know how to fix the car, So the 0:12:29.840 --> 0:12:34.480 dog groomer would never go into that technician role. Vice versa, 0:12:34.600 --> 0:12:38.040 the auto technician would never start up a dog grooming business. 0:12:38.240 --> 0:12:41.040 They would be forced to go hire someone to work 0:12:41.080 --> 0:12:44.000 in that role. But let's assume that you're in that role. 0:12:44.040 --> 0:12:46.600 So we want to one, we want to hire other technicians. 0:12:46.840 --> 0:12:49.640 We want to move from being a worker to a manager. 0:12:49.679 --> 0:12:52.160 This is exit number one work exit the line going 0:12:52.160 --> 0:12:54.440 from worker to manager. We need to make sure that 0:12:54.440 --> 0:12:59.520 we're delegating and not relegating, meaning we're saying, this is 0:12:59.600 --> 0:13:02.440 how this role is done. This is the perfect recipe 0:13:02.440 --> 0:13:05.720 for the bread. This is exactly how I groom this dog. 0:13:06.240 --> 0:13:08.840 And this is your new plan to follow your standard 0:13:08.840 --> 0:13:11.679 operating procedure. You don't want to relegate it like, hey, 0:13:11.760 --> 0:13:13.600 I'm just going to hire someone and hopefully they do 0:13:13.640 --> 0:13:16.040 as good of a job as me. In order to 0:13:16.120 --> 0:13:19.120 do that, you have to have very well documented systems, 0:13:19.160 --> 0:13:22.920 and so if you're currently in this role, begin documenting 0:13:22.960 --> 0:13:25.200 what it is that you're doing. Here's what I say 0:13:25.200 --> 0:13:27.320 when I answer the phone. Here's how I make a 0:13:27.360 --> 0:13:30.319 perfect cup of copy. Here's how I treat my customer, 0:13:30.600 --> 0:13:32.240 Here's how I do a review, or whatever it is. 0:13:32.440 --> 0:13:36.600 Start to document these processes. That way, when you hire 0:13:36.840 --> 0:13:40.400 somebody else, then you can delegate using that well documented systems. 0:13:41.040 --> 0:13:42.240 The other thing that you're going to need to be 0:13:42.280 --> 0:13:46.240 doing is starting to establish a very compelling culture. As 0:13:46.280 --> 0:13:47.520 you start to grow to the business. You need to 0:13:47.520 --> 0:13:50.320 be able to track the right people to you, and 0:13:50.360 --> 0:13:53.520 you have to be able to coach them. As a manager. Again, 0:13:53.640 --> 0:13:56.720 you're going from the doing in the trenches doing the 0:13:56.760 --> 0:14:00.319 work to delegating. All right, that's exit number one. Exit 0:14:00.400 --> 0:14:03.360 number two then is now I've moved from the technician 0:14:03.440 --> 0:14:06.800 in the line. I'm now a manager and so now 0:14:07.000 --> 0:14:10.080 I'm starting to work on the business instead of in 0:14:10.120 --> 0:14:11.040 the business. 0:14:10.720 --> 0:14:11.199 Doing the work. 0:14:11.240 --> 0:14:13.840 I'm able to work on the business, which now allows 0:14:13.880 --> 0:14:17.600 me to see things at a higher level and start 0:14:17.640 --> 0:14:21.080 to think more about how do we set policies to 0:14:21.200 --> 0:14:24.080 handle customer service, or how do we do the marketing, 0:14:24.600 --> 0:14:27.520 how do we recruit staff and things like that. You've 0:14:27.560 --> 0:14:30.640 moved out of the business and now on the business. 0:14:30.800 --> 0:14:33.560 It allows you to now be proactive instead of reactive. 0:14:33.560 --> 0:14:35.560 You see, when you're in this technician role. It's like, Okay, 0:14:35.600 --> 0:14:37.360 what's under the hood. You pop the hood. Okay, here's 0:14:37.480 --> 0:14:39.760 the problem, let me fix it. You're reacting to what 0:14:39.800 --> 0:14:40.360 you see. 0:14:40.760 --> 0:14:41.520 You're a dog groomer. 0:14:41.520 --> 0:14:42.440 Okay, what does this dog have? 0:14:42.480 --> 0:14:42.960 What does it need? 0:14:42.960 --> 0:14:45.320 Okay, now I'm reacting to that dog. But as a manager, 0:14:45.320 --> 0:14:47.600 I can now be proactive and we can start to 0:14:47.600 --> 0:14:49.840 think about what it is that we want. What's our 0:14:49.880 --> 0:14:53.120 ideal client, what's our ideal process procedure, things like that. 0:14:53.560 --> 0:14:55.480 A lot of this was highlighting a book called The 0:14:55.640 --> 0:15:00.480 E Myth which stands for the Entrepreneurial Myth book. I've 0:15:00.480 --> 0:15:02.040 read it multiple times. There's a new book called The 0:15:02.080 --> 0:15:04.080 E Myth Revisited, sort of like a new version of 0:15:04.080 --> 0:15:07.960 the book. I'd highly highly recommend it. They talk about 0:15:07.960 --> 0:15:11.520 how the entrepreneurial myth is that most people think that 0:15:11.560 --> 0:15:13.960 if they can start their own business and become an entrepreneur, 0:15:14.400 --> 0:15:16.680 then they can be free. But that's a myth because 0:15:16.720 --> 0:15:19.040 what they have done is they've just created a job 0:15:19.080 --> 0:15:21.400 for themselves. Anyway, read the book. He kind of goes 0:15:21.440 --> 0:15:23.920 more into depth and detail into how to do this. 0:15:24.320 --> 0:15:27.880 But at this level, now, if you've exited from the 0:15:27.920 --> 0:15:31.680 line and the manager. You know, you're now proactive. But 0:15:31.840 --> 0:15:35.840 from here, we want to now exit the staff and 0:15:35.880 --> 0:15:37.600 then being a manager, and we want. 0:15:37.440 --> 0:15:39.320 To go to the CEO level. 0:15:40.400 --> 0:15:42.560 Right, we're working on the business, not in it, but 0:15:42.600 --> 0:15:44.160 we want to get to the next level. We want 0:15:44.160 --> 0:15:47.680 to go from delegation, being the manager that's now delegating 0:15:47.720 --> 0:15:51.680 these tasks to these individual workers, instead of delegation, instead 0:15:51.680 --> 0:15:53.320 of first it was doing, then it was delegation, and 0:15:53.360 --> 0:15:56.600 now we want to move up to leadership. We want 0:15:56.640 --> 0:16:00.840 to go from an operator, someone who's operation aiding the business, 0:16:01.200 --> 0:16:05.040 setting the schedules, paying the payroll, you know, running the 0:16:05.080 --> 0:16:07.280 marketing instead of operating the business. We want to go 0:16:07.320 --> 0:16:12.040 to a CEO. We want to go from a manager, well, 0:16:12.400 --> 0:16:14.640 you know, from an operator to a CEO. We don't 0:16:14.680 --> 0:16:17.640 want to be just a manager with a title. You see, 0:16:17.680 --> 0:16:20.040 most of you owning your own businesses have called yourself 0:16:20.120 --> 0:16:22.800 a CEO, but the reality is you're just a manager 0:16:22.800 --> 0:16:25.920 with a title. You're still managing the business. You're still 0:16:26.240 --> 0:16:29.760 managing the marketing team, managing the day to day, overseeing 0:16:29.760 --> 0:16:32.520 the customer service, managing the meetings and things like that. 0:16:33.360 --> 0:16:36.360 And so now we want to exit the manager and 0:16:36.400 --> 0:16:41.160 go to the CEO level. All right. Once we're able 0:16:41.240 --> 0:16:44.840 to do that, now things start to get very interesting. 0:16:46.480 --> 0:16:49.400 Now we're able to really start to think long term 0:16:49.440 --> 0:16:51.960 or really start to think about other types of the business. 0:16:51.960 --> 0:16:54.840 We can start to think about other businesses that we 0:16:54.880 --> 0:16:58.120 could buy or merge with or partner with. For example, 0:16:58.880 --> 0:17:02.200 you're a bakery, maybe you want to uh, maybe you 0:17:02.240 --> 0:17:05.359 only bake bread. Well, maybe you want to acquire another 0:17:05.400 --> 0:17:10.199 bakery that specializes in pastries. For example, maybe you're a 0:17:10.320 --> 0:17:13.000 dog groomer and now you want a partner or you 0:17:13.040 --> 0:17:16.200 want to buy a dog training business, or you want 0:17:16.240 --> 0:17:20.919 to launch a line of dog grooming or dog training products, 0:17:21.440 --> 0:17:23.160 and maybe you're able to buy that. So now from 0:17:23.200 --> 0:17:26.119 the CEO lens, now you're way up above and you 0:17:26.119 --> 0:17:29.880 can start to think strategically about the business because you're 0:17:29.880 --> 0:17:33.320 not bogged down with the technical work of doing the job, 0:17:33.400 --> 0:17:36.040 nor are you even bogged down with the management of that. 0:17:36.640 --> 0:17:39.040 All right, now, there's two more exits that I want 0:17:39.040 --> 0:17:41.520 to talk about. How we exit the CEO Where did 0:17:41.560 --> 0:17:43.960 we go from there? And how do we exit from 0:17:43.960 --> 0:17:46.920 that next stage? And then we're going to dig into 0:17:47.280 --> 0:17:49.840 exactly how to do this all right, So there's a 0:17:49.840 --> 0:17:51.439 little bit of high level theory. I want to give 0:17:51.480 --> 0:17:53.919 you some actual tactical steps that you can do this, 0:17:54.640 --> 0:17:56.240 but I gotta take a quick breakre just tuning in 0:17:56.440 --> 0:17:58.480 saying to the Mark ma Show doing something a little 0:17:58.480 --> 0:18:00.919 bit different today, talking about the great wealth transfer in 0:18:01.080 --> 0:18:04.200 history coming through the baby boomer's transferring all these businesses 0:18:04.200 --> 0:18:05.720 and how you can take a part of it. I'll 0:18:05.760 --> 0:18:07.000 be back with more in a minute. You don't want 0:18:07.000 --> 0:18:09.200 to miss it, so don't cool way, I'll be right back. 0:18:10.080 --> 0:18:11.560 All right, welcome back. If you just tune in, you're 0:18:11.560 --> 0:18:14.919 listening to the Markmash Show. We're always talking about the 0:18:15.160 --> 0:18:16.760 way the world is changing as we look at it 0:18:16.760 --> 0:18:19.720 through the lens of politics, finance, and technology. Today we're 0:18:19.720 --> 0:18:24.120 talking about well transfer. Specifically, we're talking about businesses being 0:18:24.160 --> 0:18:27.000 transferred from the largest segment of the population, the baby boomers, 0:18:27.080 --> 0:18:30.080 down to the next section. If you're in that role, 0:18:30.400 --> 0:18:33.199 you need to learn how to scale these levels of 0:18:33.240 --> 0:18:36.719 exit so your business becomes worth more. If you're running 0:18:36.720 --> 0:18:40.000 your business in the technician role, you're the one grooming 0:18:40.040 --> 0:18:41.960 the dogs and working on the cars or baking the bread, 0:18:42.200 --> 0:18:44.960 your business isn't worth much. You see, someone who's going 0:18:45.040 --> 0:18:47.280 to want to buy your business doesn't want to buy 0:18:47.320 --> 0:18:48.600 your business because they want. 0:18:48.440 --> 0:18:50.320 A big bread or groom dogs every day. 0:18:51.119 --> 0:18:53.040 Someone who's going to buy your business wants to buy 0:18:53.080 --> 0:18:56.480