Speaker 1: Welcome the Money in Wealth with John O'Bryant, a production
Speaker 1: of the Black Effect Podcast Network and iHeartRadio. Hey, Hey, hey,
Speaker 1: this is John Hope Bryant. This is money and wealth,
Speaker 1: and this is a trending topic. This is a recording artist,
Speaker 1: a rapper is offering in this example, five hundred dollars
Speaker 1: a week for a personal assistant. And there was outrage
Speaker 1: from I believe millennials, young or just say young people
Speaker 1: who value their own talent and skills and intellect. It
Speaker 1: was outraged because they said, what is this star doing
Speaker 1: paying us broke wages or low wages? She's a star.
Speaker 1: How dare her pay us five hundred dollars a week
Speaker 1: to be her personal assistant? What is my advice there?
Speaker 1: My advice is that you're going to go broke. Now,
Speaker 1: my observation is you're going to go broke. First of all,
Speaker 1: five hundred dollars a week if you're twenty two years
Speaker 1: old and you've not yet stepped into mortgages and car
Speaker 1: notes and insurance and all of the obligations that an
Speaker 1: adult children and household expenses, marriage, all these expenses that
Speaker 1: comes with being further on in your career. If you're
Speaker 1: somewhere between eighteen and twenty five years old, is the
Speaker 1: perfect job for you, and five hundred dollars a week
Speaker 1: is actually very good money, particularly if she pays you
Speaker 1: as a ten ninety nine employee versus a W two employee.
Speaker 1: Do you know the difference. Ten ninety nine is a
Speaker 1: contract employee, right, and a W two employee is an
Speaker 1: employee on someone's payroll where they take out.
Speaker 2: And other withholdings.
Speaker 1: I'm gonna break down the different kinds of employment on
Speaker 1: another podcast. And even if it was five hundred dollars
Speaker 1: a week with withholdings, it's still a great gig. I'll
Speaker 1: go one step further. It would be a great gig
Speaker 1: in my opinion if she was just paying your travel
Speaker 1: expenses and living expenses. Yeah, I said it. I worked
Speaker 1: for free, offered to work for free for multimillionaires who
Speaker 1: are highly successful because I wanted to be in the room.
Speaker 1: I wanted to be in the environment. If somebody can
Speaker 1: pay you top dollar, then they want top dollar talent
Speaker 1: who's already got.
Speaker 2: All the skills that they need. Why do they need you?
Speaker 1: Just because you value your talent and gifts doesn't mean
Speaker 1: somebody else is willing to pay for it. You're a
Speaker 1: young person looking to come up. Being in that room,
Speaker 1: traveling around the country, maybe around the world, Being on
Speaker 1: the right hand of a star in the making. Listen
Speaker 1: to how they person negotiating contracts or talking to promoters
Speaker 1: and managers and agents. Being introduced as a member of
Speaker 1: the crew to leaders and luminaries here and around the
Speaker 1: world is priceless. And I would do it for free, Yes,
Speaker 1: I said it. I would do it for free, or
Speaker 1: I would do it for the least amount that I
Speaker 1: could survive on and still move forward. In fact that
Speaker 1: I have done exactly that in my life. But to
Speaker 1: be before I get to that example, let me just
Speaker 1: be very clear. In this example, I think that people
Speaker 1: who are crying and screaming and hollering and complaining and
Speaker 1: even criticizing this rapper Gorilla, I can't believe I'm saying
Speaker 1: this is a name, but you know, hey, whatever works
Speaker 1: because she wants to pay five hundred dollars a week.
Speaker 1: You're just living in another universe and you live in fantasyland,
Speaker 1: and it's not going to last. You need to under
Speaker 1: understand how this world really works. When I was coming up,
Speaker 1: I had didn't have many jobs. I worked for myself
Speaker 1: most of the time, but I worked for a guy
Speaker 1: named Harvey Baskin who owns Jeoffrey Restaurant. Jeffrey's Restaurant in
Speaker 1: Malibu was still there, and I worked as a bus
Speaker 1: boy and then as a waiter, and then as his
Speaker 1: personal assistant, making a whopping twenty thousand dollars a year
Speaker 1: and having to drive from Compton, California to Malibu. I've
Speaker 1: burned up most of my income in gas and car notes.
Speaker 1: But the experience I got of being at the right
Speaker 1: hand of a guy worked two hundred million dollars calling
Speaker 1: today a billionaire was invaluable.
Speaker 2: Right.
Speaker 1: I owed this guy named Davil Mehra a lot of
Speaker 1: money because he invested in my dream, and my dream
Speaker 1: didn't pay off. I was not a very good businessman.
Speaker 1: I was confused. I confused busyness with business back then,
Speaker 1: and my offlow seed my inflow. So my overhead became
Speaker 1: my downfall. And I started losing money and losing his money,
Speaker 1: and he said, you got to go get a job
Speaker 1: to pay me back. So I wanted to go work
Speaker 1: for a friend of his, making no money, made a commission.
Speaker 1: They actually gave me a stipend, which was basically like
Speaker 1: an advance on my future earnings. He gave me enough
Speaker 1: expense money to cover my car note and rent. Let's
Speaker 1: just say back then it was one thousand dollars twelve
Speaker 1: hundred dollars a month, and he sponsored me to get
Speaker 1: a to take the test for my real estate license
Speaker 1: so I could be in a position to earn a
Speaker 1: commission and pay back my stipend, my advance, and pay
Speaker 1: back Davel Mayor for his investment in the nine thousand
Speaker 1: businesses I started back then in my teens that didn't work,
Speaker 1: and in the course of working for Stephan Miller, it
Speaker 1: was Stefan Cotter and Miller Wait Company, and I went
Speaker 1: to go work for this guy and was making effectively
Speaker 1: hard money loans in the hood, the inner city. I
Speaker 1: didn't realize what I was doing until I realized what
Speaker 1: I was doing. I failed the California real Estate test
Speaker 1: three times. You can't take the test more than four
Speaker 1: times before they say you're too dumb, You're too stupid
Speaker 1: to take this test anymore. And at fourth time you
Speaker 1: can't take it anymore if you fail it. So, at
Speaker 1: least back then it was the case, and so the
Speaker 1: fourth time I failed it three times. The fourth time
Speaker 1: I finally passed the test, and people laughed at me.
Speaker 1: In the office. I was one of very few I
Speaker 1: think it was one of two African Americans in the office.
Speaker 1: But I was sitting right next to Steve Miller, the
Speaker 1: chairman CEO, and I'd ear hustled. I'd listen everything he
Speaker 1: had to say. And one day I walked in his office.
Speaker 1: It look, I'm tired of being an employee. Make me
Speaker 1: a partner, and he laughed at me. The only reason
Speaker 1: you're here is the gift as a favorite of Dave,
Speaker 1: a mayor. I said, yes, but I can. I know Hollywood,
Speaker 1: I know the money you're trying to get me a
Speaker 1: loan in South central LA, little old ladies. And these
Speaker 1: person was not a racist. They were just trying to
Speaker 1: get a big return of their money. The money he
Speaker 1: trying to get me to loan in South central LA.
Speaker 1: I could loan that money out in Hollywood and for
Speaker 1: people who can actually pay you back, but need have
Speaker 1: a short term need for capital, and they have assets
Speaker 1: and income, unlike the people in South central LA who
Speaker 1: had assets and no income. And these are bigger transactions
Speaker 1: in Hollywood anyway, I convinced him to do that. He
Speaker 1: made me a partner in a new division of the
Speaker 1: company with no assets. It's called WCC Funding Corp. Loaned
Speaker 1: me his roller deecks. Back then, you know your address
Speaker 1: book and your iPhone back then was called a rollerdex,
Speaker 1: and you literally rode the deck of business cards and
Speaker 1: how many rolls of the rolodecks to fine, how much
Speaker 1: juice you had in the marketplace, how many people of
Speaker 1: power and influence you knew? And people laughed at me
Speaker 1: as I went about this business, having just fail out
Speaker 1: the California Real Estate tests three times. First year, I
Speaker 1: did zero in business. I paid attention, I hear, hustled,
Speaker 1: I listened, I learned. The second year I did nine
Speaker 1: million in business. Thirty year I did fifteen million in business.
Speaker 1: The final year I did twenty something million dollars in
Speaker 1: business and ultimately ended up purchasing my own division. I
Speaker 1: did amagine buyout and bought my own company. I explained
Speaker 1: the transaction in detail in the separate podcast. But I
Speaker 1: never would have gotten that opportunity had I not first
Speaker 1: taken a job paying no guaranteed compensation. Did I feel
Speaker 1: like I was valuable. I felt like I was smarter
Speaker 1: than most people in that office. People were making six figures,
Speaker 1: going living in fancy homes. But I had to take
Speaker 1: the worst job they had in the best office I
Speaker 1: could find. Wanted to meet my obligation to the investor
Speaker 1: who I promised to pay him back. But once I
Speaker 1: got there, I sound found opportunities, but I had to
Speaker 1: go digging in the holes, and nobody else wanted to
Speaker 1: hang in and do these initially these hard money loans
Speaker 1: in south central LA and ultimately transition that. You know,
Speaker 1: rainbows after storms, transition that storm into my own rainbow.
Speaker 1: Rainbows only follow storms. You cannot have a rainbow without
Speaker 1: a storm first. That's why I tell people in the pandemic,
Speaker 1: you don't run away from the office. You run to
Speaker 1: the office. In distance working, you don't advocate to stay
Speaker 1: at home. All the wealthy people and the successful people
Speaker 1: who have been in the office for years and already
Speaker 1: have their relationship capital, they're staying at home with their
Speaker 1: children or whatever.
Speaker 2: Cool.
Speaker 1: You take your rear end of the office because you
Speaker 1: want to be right in the nose of the boss.
Speaker 1: You want to again ear, hustle, pay attention. By the
Speaker 1: eighth time you walk past the office of the boss,
Speaker 1: they'll say, who are you? What's your name? There's nobody
Speaker 1: else here but you and me. Look what's should come
Speaker 1: in here? And after listening to you, if you might look,
Speaker 1: I have this assignment, you want it? Yes, no matter
Speaker 1: how bad the assignment is. Yes, And now you've got
Speaker 1: a seat at the table, and you're going to get
Speaker 1: a crappy assignment.
Speaker 2: But it doesn't matter. Turn it in some gold and
Speaker 2: then press the boss.
Speaker 1: So in all these examples, I'm giving you the same example, right,
Speaker 1: but it starts with this, How dare you pay me
Speaker 1: five hundred dollars a week? Which is a fortune from
Speaker 1: my perspective to be an assistant to a star. You
Speaker 1: want to be next to the star. You want to
Speaker 1: be in the environment. Again, please hear me, If you
Speaker 1: hang around nine broke people, you'll be the tenth. I
Speaker 1: did a whole episode on that deals with this whole
Speaker 1: situation with Oprah and the young lady. I believe it's
Speaker 1: miss Henson who I believe was saying she wasn't being
Speaker 1: paid properly on Oprah shows. But then you should have
Speaker 1: taken the contract. Okay, I mean, don't say yes when
Speaker 1: you really mean no. Nobody's forcing you to take this
Speaker 1: contract from Oprah. You should be honored to be with Oprah.
Speaker 1: I just have a different view of the world. In
Speaker 1: Oprah's job is to make a profit, not to pay
Speaker 1: you top dollar. So you have to understand how this
Speaker 1: game works. You have to understand what hustle means and
Speaker 1: investment means, and how to get a return on your investment,
Speaker 1: and to show people that you're worth not just paying
Speaker 1: you what you're worth, but in my example with WCC funding,
Speaker 1: giving me a profit participation in the upside of my potential,
Speaker 1: structuring a deal where it's cash plus or income plus
Speaker 1: or income plus, a chance to build wealth based on
Speaker 1: your contribution, and any entrepreneurs willing to take any smart
Speaker 1: entrepreneurs willing to take that deal, and being at the table,
Speaker 1: even if you don't get a profit participation, being at
Speaker 1: the table with those who already are successful, if you
Speaker 1: are smart, will make you successful. So it's R and D,
Speaker 1: research and development is investing your time on the front end. So, yes,
Speaker 1: I do believe the young people who are talking bad
Speaker 1: about the young lady being underpaid are wrong. Yes, I
Speaker 1: said it all right, John O'Brien, this is money and Wealth. Hey, hey,
Speaker 1: John Hope Bryant, entrepreneur, and it's important I say the
Speaker 1: word entrepreneur on this particular segment of Money and Wealth
Speaker 1: on the Black Effect Network on iHeart on this podcast episode.
Speaker 1: So you know where I sit in the food chain
Speaker 1: of capitalism. People say I don't like capitalism, I hate
Speaker 1: rich people. No, that's not true. You don't hate rich people.
Speaker 1: You hate rich people until you become rich. What you
Speaker 1: hate is a game system. What you hate is a
Speaker 1: system that does not work for you. No matter how
Speaker 1: hard you work, no matter how much energy you put
Speaker 1: into a project or an initiative or a place of
Speaker 1: employment or whatever, you don't see a return on your investment.
Speaker 1: You see somebody else much less intelligent than you. Maybe
Speaker 1: they're succeeding and you're not. They're on the come up
Speaker 1: and you're not. So you say, this must be a game,
Speaker 1: This must be some kind of rigged system.
Speaker 2: And so you resent that, and you should.
Speaker 1: By the way, that means the ladder of aspiration is
Speaker 1: broken in America, or at least in that environment. And
Speaker 1: somebody who's less intelligent than you, you seem to think
Speaker 1: is succeeding more than you, which might be true. But
Speaker 1: that's no reason to hate the game. Just the players
Speaker 1: of the game. So even if you want to distribute
Speaker 1: money like a socialist, you firse kind of collected like
Speaker 1: a capitalist. I'm gonna repeat that. Even if you want
Speaker 1: to distribute money like a socialist, you first have to
Speaker 1: collect it like a capitalist. People say, oh, I don't
Speaker 1: want to be a capitalist. I don't want to be
Speaker 1: I'm gonna explain in a moment how we're all capitalists.
Speaker 1: That's right, we are all capitalist. People who say they
Speaker 1: don't like capitalism, sorr, I just broke one egg. People
Speaker 1: say I hate rich people. No, you don't hate rich people.
Speaker 1: You hate rich people to you become rich. Oh, I
Speaker 1: want to give the money away, we should just share it. Well,
Speaker 1: you can't distribute it unless you first collect it. Well,
Speaker 1: I want to work for the government. Where do you
Speaker 1: think that money comes from? Hello, government tax revenue comes
Speaker 1: from tax payers. All the government revenue that s are
Speaker 1: the government income, if you want to call it that.
Speaker 1: The budget for the federal government, the largest government in
Speaker 1: the world, the largest economy in the world, the United
Speaker 1: States of America. We may not be the largest government
Speaker 1: because there are other governments who waste money and have
Speaker 1: bigger budgets on crap. But we're the largest economy in
Speaker 1: the world, and really, I think the most efficient government
Speaker 1: in the world. Actually, that's another podcast. Rule of law,
Speaker 1: all that stuff. You're a congress person here, you go
Speaker 1: out and go shopping with a congressional credit card, there'll
Speaker 1: be a front paid story about you within six months
Speaker 1: in the local newspaper in your congressional district. That wouldn't
Speaker 1: happen in China, wouldn't happen in Russia, wouldn't happen in
Speaker 1: most parts of the world. So we do have a
Speaker 1: pretty efficient system. But I'm getting away from the topic.
Speaker 1: Those who work in the government, those who spend the
Speaker 1: money the government, are spending money that you and ize
Speaker 1: taxpayers paid into the government. So where do jobs come from?
Speaker 1: Eighty eight percent of all jobs, give or take in
Speaker 1: the United States of America, the largest economy on the planet,
Speaker 1: are private sector jobs. Just about twelve percent or so
Speaker 1: of all jobs. Our government jobs. Hello, when you go
Speaker 1: to a place like I don't know, someplace in the
Speaker 1: Middle East, to go to a certainly third world countries
Speaker 1: you often find that the ratio is flipped that the
Speaker 1: majority of jobs seventy percent eighty percent of all jobs
Speaker 1: are government jobs and the private sector is very small.
Speaker 1: So everybody wants to go work for the government where
Speaker 1: that works quote unquote, it works if the government says,
Speaker 1: got an income from let's say, oil, a hole in
Speaker 1: the ground, not from productivity, not because you're an entrepreneurial genius,
Speaker 1: not because you guys invented something, but because in this
Speaker 1: traditional example, there's a natural resource the world needs and
Speaker 1: they're extracting it from your business interests, corporate interests are
Speaker 1: extracting those resources.
Speaker 2: Are iron or copper, oil.
Speaker 1: Whatever it may be, from the ground, from your ground
Speaker 1: and removing it. At some point, you're going to run
Speaker 1: out of that resource and you will go broke as
Speaker 1: a nation. But in the short term, people think they're balling,
Speaker 1: and so they pay out a bunch of salaries and
Speaker 1: overpaid salaries for everybody's working for the government basically and
Speaker 1: stealing from the government, and is graft and all kinds
Speaker 1: of things going on, you know, which is you know, pimping.
Speaker 1: Basically the government bribes, et cetera. Right, so let's now
Speaker 1: talk about traditional capitalism. And I just made a bold,
Speaker 1: audacious statement that we are all capitalists. So let me
Speaker 1: now break down the six forms of capitalism people say
Speaker 1: they hate, you know, oh I hate America. Look, capitalism
Speaker 1: and democracy are horrible systems except for every other system. Oh,
Speaker 1: I want to be a I want to live in
Speaker 1: a socialist country. All socialism really means is how do
Speaker 1: you distribute the resources? I e. The Nordic countries. I'm
Speaker 1: trying to break down the six forms of capitalism in
Speaker 1: just one second, but the Nordic countries, a lot of
Speaker 1: socialist countries. Well, that just means that once they pull
Speaker 1: the oil out of the ground in places that have
Speaker 1: become resource rich because of oil, like my friend my
Speaker 1: friend's country, Norway, or in other countries in that area
Speaker 1: that have oil as an example, or Sweden that has
Speaker 1: I believe timber as this resource, they then take that
Speaker 1: dollar that comes in the business person and gets let's
Speaker 1: say fifty cents of the dollar thirty cents on that
Speaker 1: dollar and fifty to seventy cents of that dollar is
Speaker 1: taxed and goes to pay for public resources. Right, and yes,
Speaker 1: there's no homelessness in that place. As an example, everybody's
Speaker 1: got a safety net. But you also don't see those
Speaker 1: at the bottom ever achieve a place at the table.
Speaker 2: At the top.
Speaker 1: You see a bunch of homogeneous folks at the top,
Speaker 1: mostly white European from certain class structures. So you don't
Speaker 1: have any anybody falling through the cracks at the bottom,
Speaker 1: but you got nobody blowing hose through the roof at
Speaker 1: the top with success who don't look like folks who
Speaker 1: are successful there before. Are you following me so far?
Speaker 1: So it's a taxing system. What you call socialism is
Speaker 1: a way of prioritizing who gets what. It's deeper than that, Yes,
Speaker 1: it's socialism. Communism is obviously deeper than that. But I'm
Speaker 1: not a fan of socialism or capitalism. I don't believe
Speaker 1: that people. Nobody washes a rental car. You know, even
Speaker 1: nuns drive a rental car, and after a week of
Speaker 1: it being filthy, they take it back to the owner
Speaker 1: hurts or whomever, and give it back to them and
Speaker 1: let them clean it up. Now there's a random there's
Speaker 1: an odd person who is so conscientious that, yes, they'll
Speaker 1: go and wash a car that's not their own. But
Speaker 1: typically nine times out of ten I'd even say ninety
Speaker 1: five times out of one hundred. If you did a
Speaker 1: survey of you went to go to a rental car
Speaker 1: company and you said that people return the car back
Speaker 1: clean and wash, the answers absolutely no, nobody washes. Nobody,
Speaker 1: meaning most people don't wash rental cars because it's not
Speaker 1: your own.
Speaker 2: So what do you own? You own your human capital.
Speaker 1: So here we go. There are six forms of capital,
Speaker 1: and it starts with human capital. You are human capra.
Speaker 1: You have an education, you have a knowledge base, you
Speaker 1: have a skill, you have a talent. You decide to
Speaker 1: market that talent in exchange for compensation so that you
Speaker 1: can live. Now, you're not living for free, you're not
Speaker 1: working for free. You're not giving Even folks in Congress
Speaker 1: talk about they want socialism, they're not. They're not willing
Speaker 1: to give it their paycheck which they got, and I'm
Speaker 1: going to say here, through capitalism, that willn't give you
Speaker 1: that paycheck. And no, they've got a mortgage, they've got
Speaker 1: a car note, they've got credit cards. That's capitalism people. Okay,
Speaker 1: but I'm gone too far. Let me come back to
Speaker 1: the sixth forms. I'm so excited about this. Here are
Speaker 1: the six forms of capitalism. You just want to get
Speaker 1: right to the meat of this. The first capitalism example
Speaker 1: is a worker. The second capitalism example is an employee. Yes,
Speaker 1: those are different. The third capitalism example is a salaried employee.
Speaker 1: The fourth form of capitalism is a corporate c suite executive.
Speaker 1: The fifth form is business ownership. The sixth form are
Speaker 1: crazy people like me entrepreneurs. And at that highest level
Speaker 1: of entrepreneurship French word built creates something out of nothing,
Speaker 1: create value. At that sixth level, an entrepreneur works eighteen
Speaker 1: hours a day to keep from getting a job. All right,
Speaker 1: that's certainly me. And I don't think I'm working. I
Speaker 1: just enjoy what I do. People are like, I'm on
Speaker 1: the beach with my iPad, and people are like, guys
Speaker 1: walking by me, why are you working?
Speaker 2: Man?
Speaker 1: Because I'm making him feel bad because he's not working.
Speaker 1: I guess why you working. I'm not working. I'm writing
Speaker 1: something down. I'm putting down my ideas. I love it.
Speaker 1: You know I'm not bothering you. I guess I am
Speaker 1: bothering you, but I'm not working. I guess it bothers you.
Speaker 1: To see me with an iPad on the beach. But
Speaker 1: that's how I'm paying for my vacation. Number one and
Speaker 1: number two, I'm actually enjoying myself. It's creative expression. You're
Speaker 1: obviously tired at the job that you have, versus me
Speaker 1: being exhausted at the entrepreneur opportunity I'm pursuing. Once I
Speaker 1: get exhausted and I get arrested, I'm back in duty.
Speaker 1: I'm rejuvenated. But with tired means you're doing something you
Speaker 1: really should not be doing for one more second. Tired
Speaker 1: and exhausted or too different things. So I said that
Speaker 1: we're all human capital. Remember that, all right. So you
Speaker 1: have a talent, you have a gift, you have an expression.
Speaker 1: We By the way, America is a capitalist democracy. America
Speaker 1: is a capitalist democracy. So it's a democracy rooted in
Speaker 1: capitalism and free enterprise. The first example of governance in
Speaker 1: America is not a city. It was not a county,
Speaker 1: it was not a state, it was not the country
Speaker 1: of the United States of America. The first article of
Speaker 1: governance in the country was a corporation. It was a
Speaker 1: trading corporation that had voting rights from the British that's
Speaker 1: you know, this trading company that that trading company.
Speaker 2: You might have heard about it the history books.
Speaker 1: Let's go back to these six examples and I'm gonna
Speaker 1: break each down and explain each to you. Feel free
Speaker 1: to write this down, replay it, sit down with your
Speaker 1: family and go through it, and let's talk about which
Speaker 1: one you fit in. Where do you sit at the
Speaker 1: table to capitalism. So now you're a freelance worker. You're
Speaker 1: obligated to know one. You have freedom, You do, you like,
Speaker 1: when you like, wherever you like. You may, you know,
Speaker 1: just do pick up work here, pick up work there.
Speaker 1: Maybe you decide to work this week not that week.
Speaker 1: Maybe you're maybe you're doing spot work. But you're doing
Speaker 1: what's called ten ninety nine work, which is you're paid
Speaker 1: from a tax basis based on a contract role, and
Speaker 1: taxes are not removed and with holdings are not removed
Speaker 1: from your check, but you're responsible for paying the taxes
Speaker 1: on that check minus business expenses if you want to
Speaker 1: treat it like a business. Most people don't. Who are workers.
Speaker 1: So you have a ten ninety nine as a contract worker,
Speaker 1: and your obligation is to pay taxes under your tax
Speaker 1: break bracket on your income as a worker. But it
Speaker 1: gives you I guess a lot of freedom. But most
Speaker 1: people doing ten ninety nine work at that lower level
Speaker 1: of expression. And there are those at a higher level
Speaker 1: of expression, but they tend to be business owners doing
Speaker 1: ten ninety nine work. I'll get to that in a minute,
Speaker 1: but that lel level of expression of your human capital.
Speaker 1: They tend to be folks with a high school education,
Speaker 1: and it's not and they're not very paid very much.
Speaker 1: Is literally hand the mouth, okay, And by the way,
Speaker 1: I've been there.
Speaker 2: Employee.
Speaker 1: I've been to most of these categories, by the way,
Speaker 1: I just didn't stay in most of them very long.
Speaker 1: The second one is an employee. Now you're getting a
Speaker 1: paid check. You're now a W two employee. You're paying
Speaker 1: taxes and with holdings. You're recognized as part of the team.
Speaker 1: You're on the docket for the corporation or company or
Speaker 1: enterprise or business or government or whatever, or the nonprofit.
Speaker 1: You are recognized as part of an employee group. And
Speaker 1: maybe you get benefits like health insurance, et cetera, et cetera.
Speaker 1: But you're now invested in that team. You put more
Speaker 1: energy in than a worker. They expect you to show up.
Speaker 1: Let's say at nine o'clock and leave at five, or
Speaker 1: check in at nine and check out at five. They
Speaker 1: expect certain things from you. There's certain policies and procedures
Speaker 1: you must adhere to. You can't do as you like,
Speaker 1: whenever you like, whatever you like. You're part of a
Speaker 1: larger infrastructure, but you're trading your talent for a paycheck.
Speaker 1: But you have the comfort of knowing. And it's more
Speaker 1: than a worker, right as an employee, but less than
Speaker 1: a salary person. But it's by the hour, right, by
Speaker 1: the hour. But you know, at five o'clock or four
Speaker 1: o'clock or whatever your forty hour week is based on.
Speaker 1: You know you can leave, you up and leave. The
Speaker 1: rest is not your responsibility. And for that, let's just
Speaker 1: say the same in this example. For that you get paid,
Speaker 1: let's just say forty thousand dollars, forty thousand dollars a
Speaker 1: year as an employee that's checking in at a time
Speaker 1: clock on an hourly job.
Speaker 2: Whether you get some benefits. Are you with me so far?
Speaker 1: Just nod your head and say yes, or hit the
Speaker 1: like button if you're on a platform that allows you
Speaker 1: to do that. In me A note, this is a
Speaker 1: very important podcast episode where I really do benefit from
Speaker 1: feedback from you, because I'm trying to explain something that
Speaker 1: no one explains. It's actually fairly simple, but we've complicated it,
Speaker 1: and as a result of that, we confused Americans and
Speaker 1: people around the world about what they should be striving
Speaker 1: for and what they should be striving against. Number three
Speaker 1: form of capitalist and capitalism is a salaried employee. Now,
Speaker 1: your boss has a right to call you at eight pm,
Speaker 1: maybe even on the weekends, and you'd be smart to
Speaker 1: answer the phone call. You don't have the right to say,
Speaker 1: in this example, well my you know, forty hour week
Speaker 1: is up. Because you're a salary employee, they can't abuse you, right,
Speaker 1: they can't abuse the right. That's against the law. But
Speaker 1: within a reason, a salaried employee is you know, ride
Speaker 1: or die. They're there for when the need is so,
Speaker 1: maybe as a worker you're paying twenty thousand dollars a year.
Speaker 1: As an employee, you're being paid thirty five thirty thousand
Speaker 1: dollars a year. As a salaried worker, maybe you're getting
Speaker 1: paid fifty thousand, sixty thousand, seventy thousand dollars a year,
Speaker 1: but you've got less freedom to walk away you're on
Speaker 1: the hook more for leaning in with management and being
Speaker 1: part of the special forces team. Is the lowest level
Speaker 1: with a special forces team typically is that salaried employee.
Speaker 1: You make more, you got less, so you're being val
Speaker 1: you're human capitalist more value. Tend to be college educated.
Speaker 1: At that salary level, you're not part of the American
Speaker 1: middle class. So you make it between you know, I
Speaker 1: don't know, fifty thousand, forty thousand, and let's just say
Speaker 1: in this example, one hundred and fifty thousand, it's just
Speaker 1: giving you a range. And you're a W two employee,
Speaker 1: so you have more risks, so you get more reward.
Speaker 1: As an employee, you have less risk and you get
Speaker 1: less reward. The worker gets as the lowest level of
Speaker 1: risk and gets the lowest level of reward. Corporate c
Speaker 1: suite executives the highest level of a corporations chief executive
Speaker 1: officer c chief financial officer. Trying to get debunk all
Speaker 1: these terms so that you know, humanize them for you
Speaker 1: no one to explain how this stuff works. C AO
Speaker 1: Chief administrative officers, COO, chief operating officer, vice chairman, which
Speaker 1: is typically lower level than the CEO but has gravitas
Speaker 1: and typically vice chairmen typically are not full time positions.
Speaker 1: But you have the chairman of the board. Then you've
Speaker 1: got the board of directors and the chairman board. The
Speaker 1: CEO is typically if it's a strong CEO on the
Speaker 1: board of directors, so it's a CEO and board member
Speaker 1: or president CEO maybe not on the board. Then you've
Speaker 1: got these officers, right, secretary of the corporation, all that stuff.
Speaker 1: All those people are corporate c suite leaders, the highest
Speaker 1: level of a corporation, and they have the highest level
Speaker 1: of risk, the most engagement. They work weekends, evenings, Christmas
Speaker 1: Eve if the balls ass. They're the special forces team
Speaker 1: at the highest level, and they get the highest compensation.
Speaker 1: It goes from you know, low six figures, typically you
Speaker 1: even have high five figures, but depending on the city
Speaker 1: cost of living, low six figures up to literally millions
Speaker 1: of dollars if it's a fortune five hundred company, but
Speaker 1: typically it's high five figures of income to you know,
Speaker 1: mid six figures is typically where most successful companies are
Speaker 1: paying corporate c suite leaders. Then you have the sixth
Speaker 1: level where you're really starting getting into real risk reward.
Speaker 1: Now you've broken out of the company and the confines
Speaker 1: and the safety of health insurance of somebody else, taking
Speaker 1: on the debt, taking on the corporate risk, taking on
Speaker 1: the liabilities, getting somebody else's getting sued, somebody else's brand,
Speaker 1: somebody else's reputation, somebody else's you know, balance sheet income statement.
Speaker 1: Now you've stepped out and you decided I'm going to
Speaker 1: be a business woman or a businessman, and I want
Speaker 1: the chance of the big ring. What's the difference between
Speaker 1: a business person and an entrepreneur? Is there a difference, Yes,
Speaker 1: there is, and people they mangle the two things together.
Speaker 1: We used to mangle it together at Operation Hope. I
Speaker 1: had to explain to my team you had to separate
Speaker 1: these things. Yes, business training and entreprenship training are similar,
Speaker 1: but they're not identical. A business owner business training is
Speaker 1: somebody who has an established who's modeling what they're doing
Speaker 1: on an established business plan. So think about a franchise,
Speaker 1: Think about a mailbox, et cetera. Think about a McDonald's,
Speaker 1: think about you know whatever. Pick the franchise you like.
Speaker 1: Get that in your head now, A restaurant franchise, a
Speaker 1: nail salon franchise, a hair salon franchise, a you know,
Speaker 1: some kind of professional service. You're getting a professional service
Speaker 1: franchise while it's coming up.
Speaker 2: Used to be called Kinko's. And I think even.
Speaker 1: FedEx stores are Federal Express stores are franchises in most places.
Speaker 1: These are business plans, pre established. They've shown they work
Speaker 1: car dealerships franchises that Okay, you follow this model in
Speaker 1: nine times out of ten, maybe even ninety eight times
Speaker 1: out of one hundred, you do this, you do that,
Speaker 1: and you should succeed along the following lines. You put
Speaker 1: this capital in, you put this energy in, you put
Speaker 1: this time in. You lean against this established business plan,
Speaker 1: you use this established brand, and as a result of that,
Speaker 1: you should live a life that has more return than
Speaker 1: a corporate C suite executive, the salary executive. It's an
Speaker 1: employee or a worker. You're going to get more financial compensation,
Speaker 1: more ultimate freedom. Really you're going to step in from
Speaker 1: making money. They're building wealth if you're really good at
Speaker 1: it as a business owner. But that's different than being
Speaker 1: an entrepreneur because it's an established, existing business plan. It's
Speaker 1: really important to me that you're with me of this
Speaker 1: tick of the watch. So all these are forms of
Speaker 1: capitalism you've gone from human capital to maybe financial capital
Speaker 1: in the business owner, but you're still using capital, and
Speaker 1: it's still capitalism because you're trading your talent and your
Speaker 1: gifts and your energy for some form of remuneration. The
Speaker 1: last form of capitalism is.
Speaker 2: What I do.
Speaker 1: Entrepreneurship. We are absolutely, unbelievably, undeniably crazy. We're nuttingess, we're
Speaker 1: out of our minds. An entrepreneur is doing something that
Speaker 1: hasn't been done before, creating value or value didn't exist.
Speaker 1: May take two or three businesses, business ideas merging together
Speaker 1: and create a whole new business idea. You know, Xerox
Speaker 1: was a business, IBM was a business. Steve Jobs and
Speaker 1: Bill Gates went in and looked at those businesses sort
Speaker 1: of reimagined them through an entrepreneurial spurt of energy. They
Speaker 1: created something called Microsoft and Apple, which were reimagination of
Speaker 1: traditional businesses along new entrepreneurial lines and created helped to
Speaker 1: create a whole new sectors. Bill Gates created Microsoft. I
Speaker 1: actually know Bill Gates Microsoft. So it was taking the
Speaker 1: big business of computers, macro computing, making it micro software.
Speaker 1: That's what that means, micro Soft. I can't get in
Speaker 1: his hand and tell you that's what he means. But
Speaker 1: that's what that means. And that was the first time
Speaker 1: anybody had done it. And then Steve Jobs took something
Speaker 1: that would took up a whole room and was pretty boring,
Speaker 1: a computer, and he made it personal. The first personal
Speaker 1: computer I believed was Steve Jobs. But it is certainly
Speaker 1: the first sexy computer. It's the first computer or our
Speaker 1: phone or digital advice whatever. They had a sort of
Speaker 1: energy and emotions and personality to it and creativity and style, right,
Speaker 1: and so that was very entrepreneurial. So can you be
Speaker 1: an entrepreneur and a businessman, Yes, you are a businesswoman. Absolutely,
Speaker 1: I'm an entrepreneur and a businessman.
Speaker 2: Right.
Speaker 1: That's at the highighest level of risk reward. So I
Speaker 1: take the highest level of risk of both human capital, reputation,
Speaker 1: brand creating, using my own brand, my own reputation, my
Speaker 1: own capital, really throwing the dice at some idea, leaning
Speaker 1: into it, probably not getting paid, no existing business plan,
Speaker 1: no guarantee this is going to work, may blow up
Speaker 1: in my face. And entrepreneurs, I said, works eighteen hours
Speaker 1: a day to keep from getting a job. Success is
Speaker 1: going from failure to failure. Without loss of enthusiasm, old
Speaker 1: a rounded through it. I'm going to get to it.
Speaker 1: You know, life is ten percent what life does to you,
Speaker 1: and not even saying how you choose to respond to it.
Speaker 2: I take no for vitamins that this.
Speaker 1: Is like crazy passionate, committed entrepreneurship right at the highest level,
Speaker 1: and as a result of that, if it pays off,
Speaker 1: you get a great return. Even I had a traditional
Speaker 1: real estate business, the Promise Homes Company, which I grew
Speaker 1: in a unique and different way. Doing well and doing
Speaker 1: good was my approach, and it wasn't perfect, but it
Speaker 1: really left communities better, left people better. When I was
Speaker 1: when I owned the company from twenty seventeen to twenty
Speaker 1: twenty one. When I sold it, I'm still a partner
Speaker 1: in it, but I'm partnering was now called a joint venture.
Speaker 1: I don't own it completely, I don't control it. I
Speaker 1: can't just do as I like. I've got to talk
Speaker 1: to a bunch of partners. I'll do business structures in
Speaker 1: another podcast, explain different business structures to you so you
Speaker 1: again demystify how all this stuff works, because there's no
Speaker 1: shame in the game of not understanding how something works.
Speaker 1: There's no. It's what you don't know that you don't
Speaker 1: know that's killing you. But you think you know. My
Speaker 1: job is to demystify this so you actually now know.
Speaker 1: So I'm now explained that six forms of capitalism. As
Speaker 1: a worker is an employee, there's a salary worker employee,
Speaker 1: there's a corporate executive, there's a business owner, and there's
Speaker 1: an entrepreneur. Can you be an entrepreneur, by the way,
Speaker 1: and be in the nonprofit space, Yes, you can be
Speaker 1: a social entrepreneur and you're getting a return on investment,
Speaker 1: return your capital. That might be spiritual, right, you're just
Speaker 1: going about it in an entrepreneurial way, but you're doing something,
Speaker 1: creating something that didn't exist before.
Speaker 2: Same rules apply.
Speaker 1: And I found out I was an entrepreneur when I
Speaker 1: was nine years old when a banker came to my
Speaker 1: classroom and taught financial literacy to our classroom. And I says,
Speaker 1: excuse me, sir, what do you do for a living
Speaker 1: and how did you get rich legally? And he said,
Speaker 1: I'm a banker and I finance entrepreneurs. And I said, sir,
Speaker 1: what an entrepreneur is? What you're financing it? And it's
Speaker 1: legal I'm going to be one. And I opened the dictionary.
Speaker 1: Yes it wasn't a Google search back then, it was
Speaker 1: a dictionary. And listened up to the dictionary Western's Dictionary
Speaker 1: entrepreneur French word, build something out another and create value,
Speaker 1: blah blah blah. And I was like, okay, whatever that is,
Speaker 1: I'm doing that. And I said, you finance entrepreneurs, mister banker, Yes,
Speaker 1: I do. Okay, then I'm going to make sure that
Speaker 1: I qualify myself so you can finance me. And where
Speaker 1: did the operation hope come from? Well, I said, I
Speaker 1: now know what my example is going to be. What
Speaker 1: I'm going to do and become an entrepreneur. And I
Speaker 1: went to the licker store and told the liquor store
Speaker 1: on he was selling the wrong kind of candy. He said,
Speaker 1: go away, little boy, I've got a college degree. I said,
Speaker 1: that's nice. I've got cavities. I'm telling you selling wrong
Speaker 1: kind of candy. You should be a joint venture partner
Speaker 1: with me. I can tell you how to sell some
Speaker 1: real candy. He laughed at me. Well, I ended up
Speaker 1: putting me out of the liquor store, out of the
Speaker 1: candy business, because I was nine years old.
Speaker 2: I knew what I was talking about.
Speaker 1: And when I was ten years old, I put the
Speaker 1: liquor stor out of candy business in Compland, California at
Speaker 1: my home at one five five o two South Freeley
Speaker 1: in Compland, California. So I knew that I was wanted
Speaker 1: to be an entrepreneur way back when and I did
Speaker 1: my first joint well, it was supposed to be a
Speaker 1: joint venture. He didn't listen to me, so it was
Speaker 1: really a market takeover by my new small business, all right.
Speaker 1: And I was actually a worker for a short period
Speaker 1: of time. I actually worked with him as an employee
Speaker 1: to learn what he was doing how I was doing business.
Speaker 1: I was so call that research and development R and D.
Speaker 1: I worked for three weeks and quit once I realized
Speaker 1: where his inventory came from, where he bought his product from.
Speaker 1: With the wholesale was what he bought it for, what
Speaker 1: the retail rate was, what he charged, what he marked
Speaker 1: up to, what the profit margin was the difference between
Speaker 1: the whostale rate and retail rate. And I went to
Speaker 1: where he bought his product with an investor for my mother,
Speaker 1: but she was my capital provider, my investor. She said,
Speaker 1: life is tough. I'm not gonna give you money you're
Speaker 1: gonna to I'll give you this forty dollars an investment.
Speaker 1: You're going to pay it back with interest. That's a banker,
Speaker 1: right backer. And I put links around the candy business.
Speaker 1: I was at the bottom of the food chain is
Speaker 1: a worker capitalism level one, and I was at the
Speaker 1: and I was at almost at the top of the
Speaker 1: food chain as a business owner capitalism number five. Because
Speaker 1: because a candy house is actually an established business plan,
Speaker 1: you can go to the internet search one a business
Speaker 1: plan for candy houses now, or go to my Operation
Speaker 1: Hope team at the One Me and Black Business Initiative
Speaker 1: or our Hope and Side location and they'll help you
Speaker 1: find and build a business plan for a candy house
Speaker 1: or a buffler shop, or a nail salon or nursery
Speaker 1: business or daycare, whatever it is you want to do.
Speaker 1: So then I asked this banker, are there other bankers
Speaker 1: like you in the world. He said, yes, they're probably
Speaker 1: a million bankers in America. There were back then ten
Speaker 1: thousand banks. I said, is your job to lend poor
Speaker 1: people money?
Speaker 2: Yes? All you have to do is prove that you
Speaker 2: can pay it back.
Speaker 1: I was like, and if I don't pay you back,
Speaker 1: I don't get debt, because that's what happens with the
Speaker 1: gangsters around the corner. You don't pay them back. He's like, no,
Speaker 1: we just issue a notice of default. We impacked your credit.
Speaker 1: Like okay, well, I'll take that deal all day and
Speaker 1: all night. And this applies to everybody in the country. Yes,
Speaker 1: now you know my passion and why I want to
Speaker 1: raise credit scores to people so you're bank qualified. Lower
Speaker 1: your debt level so you fit the debt to income ratios.
Speaker 1: Increase your savings so the banker knows you have a
Speaker 1: little cushion in case you run into hard times. Those
Speaker 1: three things are the baselines for becoming bank qualified. And
Speaker 1: I want to get an entire generation of young people
Speaker 1: and struggling families and folks are too much of the
Speaker 1: month at the end of their money to be able
Speaker 1: to qualify for their dream teams. The bank says yes,
Speaker 1: when right now they may say no because half of
Speaker 1: black folks have a credit score below six twenty, not
Speaker 1: poor people, everybody. And so you may think as racism.
Speaker 1: It may just be your credit scores. Thinks may think
Speaker 1: that maybe that your death income ratios are off my job.
Speaker 1: I now know looking back at my childhood. I didn't
Speaker 1: know it back then that at ten years old, I
Speaker 1: both figured out what I was supposed to do.
Speaker 2: For a living and what I was going to do.
Speaker 1: Sixteen years later in founding Operation Hope, which is now
Speaker 1: the largest financial literacy, coaching and empowerment organization in America
Speaker 1: and probably even in the world. We have three hundred
Speaker 1: offices across this country, a seventy million dollars operating budget,
Speaker 1: four point five billion dollars invested through our partners in
Speaker 1: underserved neighborhoods. The only nonprofit allowed to operate side of
Speaker 1: a bank branch in US history, and we're killing it,
Speaker 1: raising credit scores fifty to one hundred points, lowering debt
Speaker 1: thirty eight hundred dollars in some cases, increasing savings two
Speaker 1: thousand dollars, and making people bank qualified and giving them
Speaker 1: their dignity back at scale. All that came from that
Speaker 1: kid a school classroom, getting a financial literacy course in
Speaker 1: home economics class, which doesn't exist anymore. I'm going to
Speaker 1: solve that and change that in my lifetime as well.
Speaker 1: By the way, the silver rights movement in the suites
Speaker 1: not the streets. The colors now green, not black or white,
Speaker 1: or red or blue.
Speaker 2: It's green.
Speaker 1: But today I wanted to explain to you the six forms,
Speaker 1: the basic forms of capitalism. Are there more forms?
Speaker 2: Yes? Is there more structures? Yes?
Speaker 1: And I've got more episodes. Well, I'll break some of
Speaker 1: this stuff down, but let me know that you got this,
Speaker 1: that you understand what I'm saying. And figure out now,
Speaker 1: have a conversation with your husband, wife, your son, your daughter,
Speaker 1: your cousin, your partner, your friend. Which one of these
Speaker 1: six are you? Which one of these six are people
Speaker 1: you love? Do you want to be in appeinationship with
Speaker 1: somebody who's a worker or an employee, a salary employee,
Speaker 1: a corporate executive, a business owner, an entrepreneur. If you're
Speaker 1: the higher you get on that scale, the less time
Speaker 1: you're going to have for a traditional life. But the
Speaker 1: more the higher you upon that scale, the more resources
Speaker 1: and the opportunities you have to live a free life.
Speaker 1: But you'll find as you get up that scale from
Speaker 1: one to six, you get up that you know certainly
Speaker 1: four or five six levels of capitalism U that your
Speaker 1: balance of time will be out of balance. You will
Speaker 1: always be fighting for time. Whereas you're a worker, you
Speaker 1: may have all the time in the world, but you
Speaker 1: also won't have any resources to do anything with that
Speaker 1: time in the traditional sense, meaning financial resources. Okay, so
Speaker 1: there you go, Love and Light yo yo, John Hope Bryant.
Speaker 1: This is Money and Wealth on the Black Effect Network
Speaker 1: at iHeartRadio. This is a fan question cast Underscore seven
Speaker 1: three three three from Instagram. Cast East Underscore seven three
Speaker 1: three three from Instagram. Ask when starting a business, what
Speaker 1: are the steps you recommend to secure alan or investment?
Speaker 2: Love the question.
Speaker 1: I would suggest you go to Operation Hope, get a
Speaker 1: Hope financial coach. We scholarship. You all in for free.
Speaker 1: So you get Hope Light initially coaching and counseling. Calling
Speaker 1: out of the blue. You tell them I sent you.
Speaker 1: They'll give you Hope Classic, which will allow them to
Speaker 1: go deeper. You can go into You can sign up
Speaker 1: to one Million Black Business Initiative one MBB and get
Speaker 1: business training, a business plan help. They'll help you develop
Speaker 1: that and they'll help you put together a budget and
Speaker 1: a financial statement, an income statement, a balance sheet. I'll
Speaker 1: explain all those things on one of my podcast series,
Speaker 1: Different Structures of a Business and the tools the bases
Speaker 1: you need for a business. But once you have that
Speaker 1: in place and ready to go to market, you may
Speaker 1: if you're coming up from nothing like me, you may
Speaker 1: need to have a non traditional approach. Now, ninety six
Speaker 1: percent of all black businesses don't have an employee, which
Speaker 1: means you don't have infrastructure, systems, books and records for
Speaker 1: the business. You're really your business, but your more busyness
Speaker 1: or a self employment. You have no employee except yourself.
Speaker 1: So you may have to use your personal credit score
Speaker 1: in order to secure a business loan or to use
Speaker 1: a personal loan for a business purpose. When I was
Speaker 1: coming up, I had to use credit cards. A Pep
Speaker 1: Boys card was how I maintained my car, which I
Speaker 1: drove around to do marketing and sales calls. The department
Speaker 1: store credit cards back then it was Montgomery Wards, it
Speaker 1: was Sears.
Speaker 2: May see things like that.
Speaker 1: The department store credit cards is where I bought business
Speaker 1: clothes and business suits and business shoes that allowed me
Speaker 1: to look presentable when I went to business presentations. I
Speaker 1: had a credit card from all these different kinds of
Speaker 1: companies because I didn't have traditional capital. Capital is both
Speaker 1: debt and equity. So investment money you don't have to
Speaker 1: pay back on a schedule is equity, and debt is
Speaker 1: an investment in the form of a loan. You pay
Speaker 1: back on a schedule with payments. Okay, I'm over answering
Speaker 1: this question, but so you may have to use credit cards,
Speaker 1: loans from families and friends. The more sophisticated version of
Speaker 1: that today is a cloud sourcing platform that you can
Speaker 1: use to you know, people are cloud sourcing all kinds
Speaker 1: of things, cloud funding, funerals and cloud funding. You know
Speaker 1: somebody going to college where you can cloud fund a
Speaker 1: business investment opportunity, and of course the most traditional thing
Speaker 1: is to put together a business plan and go get
Speaker 1: a business loan, a small business loan SBA, a loan
Speaker 1: from state government agencies, city government agencies like here in Atlanta.
Speaker 1: You have invested Atlanta, which operational partners with, and you
Speaker 1: can get a loan and sometimes a forgivable grant. Yes,
Speaker 1: every now and then the government will is trying to
Speaker 1: spur small business creation in your area and they will
Speaker 1: give you a forgivable grant. I need to do it.
Speaker 1: One of these podcasts that differentiates a nonprofit from a
Speaker 1: for profit and explain that structure, which I just decided
Speaker 1: to do at this very moment, and I'll also explain
Speaker 1: the different types of corporations and all that stuff. But
Speaker 1: leading back to the question, the top of the food
Speaker 1: chain here is to be able to get a loan
Speaker 1: from a bank and secured or unsecured line of credit
Speaker 1: or a loan commercial loan that doesn't require a personal
Speaker 1: guarantee because you've prepared such an incredible business. You have
Speaker 1: a cash flow, you've got maybe you've been running a
Speaker 1: business now for three to five years, and you've got
Speaker 1: enough revenue from the business itself, and you've got three
Speaker 1: employees and a retail place and making this up and
Speaker 1: cash flow from dependable, reliable, consistent clients that the bank says,
Speaker 1: we don't have to rely on the individual credit. We
Speaker 1: can work on the we can rely now in the
Speaker 1: business credit. The business is credit, and we'll make a
Speaker 1: loan to the business. It doesn't require personal guarantee from
Speaker 1: the individual. The way I started this answer was the
Speaker 1: individual is the credit because they are a self employment project.
Speaker 1: So those are some examples of how you can start
Speaker 1: seeking financing for get a loan or investment for your business.
Speaker 1: Those are not there all the examples. You can do
Speaker 1: a private placement to try to raise money, which is
Speaker 1: like a form of crowdsourcing, So look up the phrase
Speaker 1: private placement, but to be very careful about how you
Speaker 1: do that because you can run into securities violation the
Speaker 1: SEC Securities and Exchange Commission if you don't do that
Speaker 1: exactly right, and you're not getting folks who are qualified
Speaker 1: to be investors in a private placement as investors, you
Speaker 1: don't want to go get the proverbial little old lady
Speaker 1: who can't afford to lose a thousand dollars, so you
Speaker 1: don't want her investing in your project and she loses everything.
Speaker 1: You have enough of those people and you didn't clarify
Speaker 1: well what they're investing in, you could be breaking the
Speaker 1: law and not know and end up with handcuffs on
Speaker 1: and I don't mean from a jewelry store. All right,
Speaker 1: A good question. I hope I answered it well. Kudos
Speaker 1: to you.
Speaker 2: Cast Underscore seven three three three for critical Thinking. John O'Bryant.
Speaker 1: This is the Money and Wealth series on the Black
Speaker 1: Effect Network at iHeart wherever you get your podcast, Tell
Speaker 1: a Friend, Love and Light. Money and Wealth with John
Speaker 1: O'Brien is a production of the Black Effect Podcast Network.
Speaker 1: For more podcasts from the Black Effect Podcast Network, visit
Speaker 1: the iHeartRadio app, Apple Podcasts, or wherever you listen to
Speaker 1: your favorite shows.
Speaker 2: The tapp