1 00:00:00,280 --> 00:00:04,280 Speaker 1: Seventy percent of millionaires are self made. If you want 2 00:00:04,280 --> 00:00:06,640 Speaker 1: to make money, you got to follow the math. People 3 00:00:06,680 --> 00:00:08,000 Speaker 1: that have money have one thing. 4 00:00:08,440 --> 00:00:12,440 Speaker 2: Entrepreneur, Investor. She's got over twenty six businesses. Cody Sanchez. 5 00:00:12,640 --> 00:00:14,680 Speaker 2: I have no money. I don't really know too much 6 00:00:14,680 --> 00:00:17,000 Speaker 2: about money. Where do I start? What do I do? 7 00:00:17,239 --> 00:00:20,079 Speaker 1: Most often we're told things like follow our passion. I 8 00:00:20,120 --> 00:00:22,480 Speaker 1: think that's pretty bad advice. If you don't have ownership, 9 00:00:22,520 --> 00:00:24,880 Speaker 1: you're probably never going to be free financially. 10 00:00:25,079 --> 00:00:28,360 Speaker 2: You're literally opening up a whole new doorway for people. 11 00:00:30,960 --> 00:00:33,840 Speaker 2: The number one health and wellness podcast. 12 00:00:33,560 --> 00:00:37,240 Speaker 1: Jay Seti Jay Sheety only Set. 13 00:00:39,520 --> 00:00:42,360 Speaker 2: Hey, everyone, welcome back to on Purpose, the place you 14 00:00:42,440 --> 00:00:45,800 Speaker 2: come to become a happier, healthier and more healed. I'm 15 00:00:45,800 --> 00:00:48,840 Speaker 2: fascinated by our relationships with things that we grew up with, 16 00:00:49,200 --> 00:00:52,040 Speaker 2: how they've changed, how they've evolved, or how they've stayed 17 00:00:52,040 --> 00:00:55,520 Speaker 2: the same. I believe that our relationship with money is 18 00:00:55,560 --> 00:00:58,840 Speaker 2: probably one of the most underestimated relationships that we have, 19 00:00:59,280 --> 00:01:02,000 Speaker 2: and it's probably one of the relationships that we paid 20 00:01:02,040 --> 00:01:05,400 Speaker 2: the least attention to. We don't treat it like a relationship, 21 00:01:05,520 --> 00:01:08,080 Speaker 2: we don't think of it like a relationship. And therefore 22 00:01:08,200 --> 00:01:10,760 Speaker 2: it falls into the binary category of I'm either good 23 00:01:10,800 --> 00:01:13,520 Speaker 2: at it or I'm bad at it. Today's guest has 24 00:01:13,520 --> 00:01:16,280 Speaker 2: some incredible insights for each and every one of us. 25 00:01:16,280 --> 00:01:20,280 Speaker 2: Wherever you are in your financial journey, this episode is 26 00:01:20,480 --> 00:01:23,280 Speaker 2: for you. Today's guest is Cody Sanchez. 27 00:01:23,480 --> 00:01:25,440 Speaker 1: Thank you. I'm blushing. I'm excited to be here. 28 00:01:25,480 --> 00:01:27,680 Speaker 2: I want to start with a question that I know 29 00:01:27,720 --> 00:01:29,640 Speaker 2: you probably get a million times and I get all 30 00:01:29,680 --> 00:01:33,039 Speaker 2: the time. Jay, I have no money. I don't really 31 00:01:33,080 --> 00:01:35,800 Speaker 2: know too much about money. Where do I start? What 32 00:01:35,840 --> 00:01:36,240 Speaker 2: do I do? 33 00:01:36,720 --> 00:01:38,280 Speaker 1: There's two things in life that I wish we were 34 00:01:38,319 --> 00:01:41,240 Speaker 1: told earlier, and one is if you want to make money, 35 00:01:41,360 --> 00:01:43,720 Speaker 1: you got to follow the math. And I think most 36 00:01:43,800 --> 00:01:46,920 Speaker 1: often we're told things like follow our passion, you know, 37 00:01:47,200 --> 00:01:49,760 Speaker 1: do what I did to make money. I made real 38 00:01:49,840 --> 00:01:52,320 Speaker 1: estate money. You should make real estate money. And I 39 00:01:52,360 --> 00:01:54,840 Speaker 1: think that's pretty bad advice. I think instead we should 40 00:01:54,880 --> 00:01:58,600 Speaker 1: look to where are most people rich? What makes most 41 00:01:58,600 --> 00:02:01,480 Speaker 1: people rich? Kind of go to the data. I came 42 00:02:01,520 --> 00:02:05,480 Speaker 1: from really middle class kind of we didn't have money 43 00:02:05,480 --> 00:02:07,520 Speaker 1: all the time. I remember what it was like to 44 00:02:07,560 --> 00:02:09,600 Speaker 1: not have money. I remember what it was like when 45 00:02:09,600 --> 00:02:12,120 Speaker 1: my debit card. You know, I was a little worried 46 00:02:12,160 --> 00:02:15,160 Speaker 1: stuff wouldn't go through at the grocery store, and I 47 00:02:15,200 --> 00:02:17,640 Speaker 1: didn't like that feeling, and so I kind of started 48 00:02:17,680 --> 00:02:19,119 Speaker 1: looking around and I was like, wait a second, where 49 00:02:19,160 --> 00:02:21,760 Speaker 1: do people have money? And after being in finance for 50 00:02:21,800 --> 00:02:23,640 Speaker 1: whatever it is, fifteen years, I'm going to give away 51 00:02:23,639 --> 00:02:26,399 Speaker 1: my age. I realized people that have money have one 52 00:02:26,440 --> 00:02:30,120 Speaker 1: thing ownership. So the data is really clear on this. 53 00:02:31,000 --> 00:02:35,600 Speaker 1: Seventy percent of millionaires are self made, which is interesting. 54 00:02:35,720 --> 00:02:37,920 Speaker 1: I used to think maybe you just inherit it did 55 00:02:37,960 --> 00:02:41,440 Speaker 1: they just get lucky? And then sixty eight percent of 56 00:02:41,960 --> 00:02:46,120 Speaker 1: millionaires have some form of ownership. They have actually bought 57 00:02:46,120 --> 00:02:48,160 Speaker 1: a business, or have equity in a business, or built 58 00:02:48,200 --> 00:02:50,320 Speaker 1: a business. And so when I realized that, I was like, 59 00:02:50,360 --> 00:02:52,919 Speaker 1: the problem is I don't have a brilliant idea, Like 60 00:02:52,960 --> 00:02:54,640 Speaker 1: I don't know how to make money. I don't have 61 00:02:54,680 --> 00:02:56,440 Speaker 1: any money to make money. But at least you have 62 00:02:56,480 --> 00:02:59,240 Speaker 1: step one, which is if you don't have ownership, you're 63 00:02:59,240 --> 00:03:02,320 Speaker 1: probably never going to be free financially. You got to 64 00:03:02,360 --> 00:03:04,280 Speaker 1: get some skin in the game. That doesn't mean that 65 00:03:04,320 --> 00:03:06,080 Speaker 1: you have to become an entrepreneur. It's really hard to 66 00:03:06,080 --> 00:03:08,640 Speaker 1: do that. It sucks many days. You know this very well. 67 00:03:08,760 --> 00:03:10,519 Speaker 1: There's fridays when you're never going to make payroll, and 68 00:03:10,600 --> 00:03:13,640 Speaker 1: that is like a deep, terrible dark hurt. Actually, But 69 00:03:13,760 --> 00:03:15,720 Speaker 1: if you realize ownership is the name of the game, 70 00:03:16,280 --> 00:03:18,400 Speaker 1: then you should probably obsess on one thing more than 71 00:03:18,400 --> 00:03:21,680 Speaker 1: anything else, which is learn the language of money. And 72 00:03:22,080 --> 00:03:24,200 Speaker 1: back when I was young, I was a journalist, originally 73 00:03:24,320 --> 00:03:28,320 Speaker 1: made zero dollars, and I realized that I had no 74 00:03:28,440 --> 00:03:33,400 Speaker 1: idea why I had opportunities and ability to make some money. 75 00:03:33,400 --> 00:03:35,600 Speaker 1: And let's say the women I was covering at the 76 00:03:35,600 --> 00:03:40,360 Speaker 1: time in Warres, who are they call it Laciel de Mote, right, 77 00:03:40,400 --> 00:03:44,280 Speaker 1: the city of death, which is where women are mutilated 78 00:03:44,320 --> 00:03:48,360 Speaker 1: and raped and brutalized and found murdered all over the 79 00:03:48,400 --> 00:03:51,720 Speaker 1: city every single day, thousands of women a year. There 80 00:03:51,720 --> 00:03:54,240 Speaker 1: were many that had the last name Sanches. My last 81 00:03:54,280 --> 00:03:56,080 Speaker 1: name happens to be Sanchez. I was like, what's the 82 00:03:56,080 --> 00:03:59,080 Speaker 1: difference between us? Is it that I'm American? Now, that's 83 00:03:59,080 --> 00:04:01,920 Speaker 1: not it alone. I think it's also that I had 84 00:04:01,960 --> 00:04:06,120 Speaker 1: some financial tools, and like, money is a pushback against 85 00:04:06,280 --> 00:04:10,000 Speaker 1: other people's architecture of your life, and it makes people 86 00:04:10,000 --> 00:04:12,320 Speaker 1: care about you one way or the other, which is sad, 87 00:04:12,840 --> 00:04:14,520 Speaker 1: But the truth of the matter is if you are poor, 88 00:04:14,560 --> 00:04:17,200 Speaker 1: you have no power, and anybody who's been poor before 89 00:04:17,560 --> 00:04:19,960 Speaker 1: knows that is true. You got to go where the 90 00:04:19,960 --> 00:04:21,560 Speaker 1: game is played. So the first thing I tell you is, 91 00:04:21,560 --> 00:04:23,520 Speaker 1: if you don't have any cash, you need to find 92 00:04:23,520 --> 00:04:25,640 Speaker 1: a way to figure out how to speak the language 93 00:04:25,640 --> 00:04:29,000 Speaker 1: of money. And that probably means you maybe go work 94 00:04:29,040 --> 00:04:31,560 Speaker 1: in finance like I did. You get with a company 95 00:04:31,640 --> 00:04:34,559 Speaker 1: that has smart leaders like Jay where you can actually 96 00:04:34,640 --> 00:04:37,280 Speaker 1: go and learn from them, and you obsess on can 97 00:04:37,279 --> 00:04:40,080 Speaker 1: I become fluent in the thing that nobody talks about 98 00:04:40,080 --> 00:04:42,040 Speaker 1: in the US because money is supposed to be the 99 00:04:42,080 --> 00:04:43,400 Speaker 1: root of all evil. 100 00:04:43,960 --> 00:04:45,920 Speaker 2: Yeah, you shared a statistic with me that I thought 101 00:04:45,920 --> 00:04:48,840 Speaker 2: it was mind blowing that sixty two percent of Americans 102 00:04:49,240 --> 00:04:52,880 Speaker 2: don't want to talk about money. Yeah, that is so scary, 103 00:04:53,360 --> 00:04:56,119 Speaker 2: but it's also not surprising because, like you just said, 104 00:04:56,680 --> 00:04:59,600 Speaker 2: we've created this narrative that money is the roof all evil. 105 00:05:00,040 --> 00:05:03,520 Speaker 2: And it was so fascinating because someone actually said this 106 00:05:03,560 --> 00:05:06,159 Speaker 2: to me where if you look up the actual reference, 107 00:05:06,640 --> 00:05:09,200 Speaker 2: it says love of money is the root of all evil. 108 00:05:09,720 --> 00:05:10,600 Speaker 1: I never knew that. 109 00:05:11,040 --> 00:05:11,880 Speaker 2: Yeah, how did we? 110 00:05:12,080 --> 00:05:13,880 Speaker 1: I mean, I do wonder sometimes how do we get 111 00:05:13,880 --> 00:05:16,120 Speaker 1: programmed these ways? Because if you think about it's like, 112 00:05:16,120 --> 00:05:19,159 Speaker 1: what are the three things you're not supposed to talk about? Politics, religion? 113 00:05:19,240 --> 00:05:19,600 Speaker 2: Money? 114 00:05:19,839 --> 00:05:22,680 Speaker 1: Now, politics and religion. Maybe I could understand you could 115 00:05:22,720 --> 00:05:27,560 Speaker 1: offend somebody. I believe this religion, you believe this political slant, 116 00:05:27,760 --> 00:05:30,080 Speaker 1: and if we could go aide, that could be bad. 117 00:05:30,440 --> 00:05:33,560 Speaker 1: But when it comes to money, who's like, nah, I 118 00:05:33,600 --> 00:05:36,240 Speaker 1: wish everybody was poor, Like why wouldn't we be able 119 00:05:36,279 --> 00:05:37,839 Speaker 1: to talk about it? Then the only thing that I 120 00:05:37,839 --> 00:05:42,000 Speaker 1: can determine from that is that every time we get 121 00:05:42,000 --> 00:05:44,200 Speaker 1: a little bit more ownership, a little bit more money, 122 00:05:44,360 --> 00:05:48,880 Speaker 1: we become harder to control. And when you're harder to control, 123 00:05:49,440 --> 00:05:52,760 Speaker 1: big institutions and largely are governments, they don't like that. 124 00:05:52,960 --> 00:05:55,360 Speaker 1: You know, you want a controllable populace by and large, 125 00:05:55,400 --> 00:05:58,760 Speaker 1: And I think that is a big reason why people 126 00:05:58,760 --> 00:06:01,440 Speaker 1: don't talk about money, Actually, that we have been programmed 127 00:06:01,720 --> 00:06:05,120 Speaker 1: to be more malleable sheep in many ways, not because 128 00:06:05,120 --> 00:06:08,120 Speaker 1: people are evil at the top, but because once we 129 00:06:08,160 --> 00:06:10,080 Speaker 1: get power, we humans are a little funny. We don't 130 00:06:10,080 --> 00:06:11,520 Speaker 1: like to give it up no matter who we are. 131 00:06:11,520 --> 00:06:14,480 Speaker 1: I would probably be the same, And so that centralization 132 00:06:14,520 --> 00:06:17,640 Speaker 1: of power, we start to think I know better you 133 00:06:17,760 --> 00:06:20,000 Speaker 1: poor person, let me give you some charity. You can't 134 00:06:20,040 --> 00:06:23,479 Speaker 1: figure it out, And instead we should be saying you 135 00:06:23,560 --> 00:06:25,440 Speaker 1: are just as capable as I am, and I would 136 00:06:25,480 --> 00:06:28,000 Speaker 1: probably be you if I lived your life. And so instead, 137 00:06:28,040 --> 00:06:30,679 Speaker 1: why don't I transfer some knowledge because that's where money starts. 138 00:06:30,839 --> 00:06:32,719 Speaker 2: Yeah, what about people right now who look at the 139 00:06:32,720 --> 00:06:35,600 Speaker 2: situation and just like the economy is in a bad place, 140 00:06:35,880 --> 00:06:38,799 Speaker 2: we're super worried. Paint us a picture of where America 141 00:06:38,880 --> 00:06:39,440 Speaker 2: is right now. 142 00:06:39,880 --> 00:06:42,480 Speaker 1: Well, I mean, well, let's talk. First, We'll talk about 143 00:06:42,480 --> 00:06:44,560 Speaker 1: how it's tough, and I'll be honest, and then we 144 00:06:44,600 --> 00:06:46,760 Speaker 1: can talk about solutions. So I promise I won't leave 145 00:06:46,760 --> 00:06:49,600 Speaker 1: you in a doom scroll. But here's the truth of 146 00:06:49,640 --> 00:06:52,000 Speaker 1: what's happening in the world right now. If you're young. 147 00:06:52,160 --> 00:06:54,640 Speaker 1: Young people today are upset about what's happening in the 148 00:06:54,640 --> 00:06:57,680 Speaker 1: world around them, and I understand why you have wage stagnation. 149 00:06:57,880 --> 00:07:00,280 Speaker 1: So we basically have not made any more money. And 150 00:07:00,320 --> 00:07:03,160 Speaker 1: in fact, this generation Gen Z is the first generation 151 00:07:03,200 --> 00:07:05,640 Speaker 1: where at their same age as their parents, they're making 152 00:07:05,720 --> 00:07:08,680 Speaker 1: less money, not more. Problem is their university degrees or 153 00:07:08,720 --> 00:07:11,000 Speaker 1: three to four x more expensive. Oh, by the way, 154 00:07:11,080 --> 00:07:14,200 Speaker 1: so is housing. Wait a second, inflation is at a 155 00:07:14,240 --> 00:07:17,120 Speaker 1: degree in which my dollar today is worth even substantially 156 00:07:17,200 --> 00:07:20,200 Speaker 1: less than even five years ago. On top of that, yeah, 157 00:07:20,240 --> 00:07:23,600 Speaker 1: we have all these jobs open. You know, seven million 158 00:07:23,640 --> 00:07:27,440 Speaker 1: working age men supposedly are unemployed at this moment right now, 159 00:07:28,240 --> 00:07:32,160 Speaker 1: even though the jobs report says that there's so many jobs. 160 00:07:32,240 --> 00:07:35,280 Speaker 1: Are the jobs real, well, largely not. They're private sector. 161 00:07:35,280 --> 00:07:38,160 Speaker 1: They're not private sector, their public sector, their government jobs. 162 00:07:38,280 --> 00:07:39,760 Speaker 1: And so young people are like, wait a second, I 163 00:07:39,800 --> 00:07:42,920 Speaker 1: can't live, I can't eat. You know, grocery is more expensive, 164 00:07:43,240 --> 00:07:45,840 Speaker 1: and that's real actually, And so the people that are 165 00:07:45,840 --> 00:07:48,240 Speaker 1: making fun of young people in Tiktoks, you know, when 166 00:07:48,280 --> 00:07:51,440 Speaker 1: they cry about their job being difficult, I don't. I 167 00:07:51,480 --> 00:07:54,080 Speaker 1: don't really vibe with that because the math says it's 168 00:07:54,160 --> 00:07:56,600 Speaker 1: hard right now and not just for young people. But 169 00:07:56,640 --> 00:07:59,280 Speaker 1: I think it's important to talk about them. And the 170 00:07:59,320 --> 00:08:01,480 Speaker 1: truth of the matter is though that in any market, 171 00:08:01,520 --> 00:08:04,840 Speaker 1: we can make money. And so although it's really difficult 172 00:08:04,840 --> 00:08:07,200 Speaker 1: out there, there's like one silver lining that I've kind 173 00:08:07,200 --> 00:08:09,840 Speaker 1: of been screaming from the rooftops for the past three years, 174 00:08:10,160 --> 00:08:13,160 Speaker 1: and people, I think are starting to see it, which 175 00:08:13,200 --> 00:08:17,200 Speaker 1: is that we are, thankfully, I think going to have 176 00:08:17,280 --> 00:08:21,520 Speaker 1: a marriage between baby boomers and young people that would 177 00:08:21,560 --> 00:08:24,800 Speaker 1: be very unexpected. So right now and historically young people 178 00:08:24,800 --> 00:08:28,280 Speaker 1: have said, Okay, Boomer, you messed up our economy. Boomer, 179 00:08:28,520 --> 00:08:30,880 Speaker 1: you're not employing me. Boomer, you don't understand my life. 180 00:08:30,920 --> 00:08:32,960 Speaker 1: You listen to the music that young people like. They 181 00:08:33,000 --> 00:08:35,520 Speaker 1: don't like that generation in a lot of ways. Then 182 00:08:35,559 --> 00:08:37,560 Speaker 1: the baby boomers are like, you guys are quiet, quitting, 183 00:08:37,640 --> 00:08:40,600 Speaker 1: you're not working very hard. Get out of my basement. 184 00:08:41,520 --> 00:08:44,080 Speaker 1: And so these two generations have been at war in 185 00:08:44,120 --> 00:08:48,160 Speaker 1: some ways, like a quiet war. And now I think 186 00:08:48,320 --> 00:08:50,920 Speaker 1: with the transfer of ownership that we're seeing and we 187 00:08:50,960 --> 00:08:53,760 Speaker 1: can talk about the great wealth transfer, I think we 188 00:08:53,800 --> 00:08:57,040 Speaker 1: have an opportunity where the baby boomer generation, the richest 189 00:08:57,080 --> 00:09:00,440 Speaker 1: generation that we have ever seen in the US, which 190 00:09:00,440 --> 00:09:03,160 Speaker 1: has mimicked in all other countries around the world by 191 00:09:03,160 --> 00:09:07,319 Speaker 1: the way that are developed countries. This generation is about 192 00:09:07,440 --> 00:09:10,600 Speaker 1: to sunset, they're getting ready to retire, they're ready to 193 00:09:10,640 --> 00:09:13,720 Speaker 1: move on, but they own sixty eight trillion dollars in 194 00:09:13,840 --> 00:09:18,240 Speaker 1: wealth in just the US. The interesting part is the 195 00:09:18,280 --> 00:09:21,560 Speaker 1: young people think, well, that money must get transferred somehow, right, 196 00:09:21,640 --> 00:09:23,120 Speaker 1: does that mean I get a house. Does that mean 197 00:09:23,160 --> 00:09:25,120 Speaker 1: I get a car? Does that mean I get inheritance? 198 00:09:25,559 --> 00:09:28,480 Speaker 1: The problem is that money is not tied up in 199 00:09:28,880 --> 00:09:32,120 Speaker 1: just assets. It's not tied up in houses and bank accounts. 200 00:09:32,600 --> 00:09:35,400 Speaker 1: It by and large is tied up in small businesses 201 00:09:35,920 --> 00:09:38,600 Speaker 1: because baby boomers owned sixty percent of all small businesses, 202 00:09:39,000 --> 00:09:40,400 Speaker 1: and so I think we got to find a way 203 00:09:40,440 --> 00:09:43,360 Speaker 1: for the young people to take over these baby boomer 204 00:09:43,360 --> 00:09:47,200 Speaker 1: businesses because otherwise then we're in a really bad spot. 205 00:09:47,440 --> 00:09:48,200 Speaker 1: Then we're Japan. 206 00:09:48,679 --> 00:09:51,640 Speaker 2: Yeah, what are some of the mistakes that you think 207 00:09:51,720 --> 00:09:54,800 Speaker 2: we think about what makes money? What are we thinking 208 00:09:54,840 --> 00:09:58,320 Speaker 2: makes money right now? Where we're being distracted, we're actually 209 00:09:58,360 --> 00:10:01,240 Speaker 2: small businesses is where you're pointing to spotlight? Yeah, but 210 00:10:01,559 --> 00:10:02,600 Speaker 2: what are we distracted by? 211 00:10:03,040 --> 00:10:04,599 Speaker 1: I think a lot of young people today chase the 212 00:10:04,640 --> 00:10:07,720 Speaker 1: shiny object, right and think about this for a second. 213 00:10:07,760 --> 00:10:10,559 Speaker 1: I remember, like many years ago, I had an opportunity 214 00:10:10,600 --> 00:10:13,120 Speaker 1: to invest in robin Hood, and I could kick myself 215 00:10:13,440 --> 00:10:16,040 Speaker 1: financially because I didn't. But at the time why I 216 00:10:16,040 --> 00:10:19,880 Speaker 1: didn't is I was like day trading stocks as amateurs 217 00:10:20,480 --> 00:10:23,240 Speaker 1: and then gamifying it. So we get like a drenal 218 00:10:23,280 --> 00:10:25,920 Speaker 1: response every time a balloon pops because we placed a 219 00:10:26,000 --> 00:10:28,480 Speaker 1: trade might be a bad idea, like I don't think 220 00:10:28,520 --> 00:10:31,719 Speaker 1: we should probably gamify our finances that way. And I 221 00:10:31,760 --> 00:10:34,160 Speaker 1: think that's what's happened to young people. They're being told, 222 00:10:34,640 --> 00:10:38,160 Speaker 1: I mean put in the stock market day trade, They're 223 00:10:38,200 --> 00:10:42,080 Speaker 1: being told NFTs and playing with crypto monkeys. They're being 224 00:10:42,120 --> 00:10:46,560 Speaker 1: told price speculation on crypto or even bitcoin. They're taking 225 00:10:46,679 --> 00:10:49,960 Speaker 1: margin calls out on their stock portfolios. Then with a 226 00:10:50,000 --> 00:10:52,240 Speaker 1: little amount of money that they have, they're trying for 227 00:10:52,280 --> 00:10:55,440 Speaker 1: this get rich scheme speculation. And the shitty part is 228 00:10:55,600 --> 00:10:58,480 Speaker 1: that just never works. You know, the one sure thing 229 00:10:58,520 --> 00:11:00,760 Speaker 1: I know about money is that you're never going to 230 00:11:00,800 --> 00:11:04,040 Speaker 1: make it if your solution is, hey, I'm going to 231 00:11:04,120 --> 00:11:07,120 Speaker 1: win at money, because that guy's going to lose. If 232 00:11:07,160 --> 00:11:10,520 Speaker 1: you think that there is a lose win scenario and 233 00:11:10,600 --> 00:11:12,240 Speaker 1: you are the one that's going to win, I hate 234 00:11:12,280 --> 00:11:15,160 Speaker 1: to tell you you're the one hold in the bag. Yeah, 235 00:11:15,200 --> 00:11:17,800 Speaker 1: And I wish people told us that more, that actually 236 00:11:17,880 --> 00:11:20,040 Speaker 1: making money doesn't have to be lose win, it could 237 00:11:20,040 --> 00:11:22,160 Speaker 1: be win win. And that is when you know you've 238 00:11:22,160 --> 00:11:24,840 Speaker 1: actually found a good opportunity is when you go, Okay, 239 00:11:25,600 --> 00:11:27,760 Speaker 1: why would I make money on this deal, Oh, because 240 00:11:27,800 --> 00:11:30,120 Speaker 1: I am solving a pain point that adds value to 241 00:11:30,160 --> 00:11:33,640 Speaker 1: another human's life, and I've properly valued what my own 242 00:11:33,720 --> 00:11:36,240 Speaker 1: skill set is. The problem is most of us don't 243 00:11:36,280 --> 00:11:38,520 Speaker 1: even know what we're good at or how you'd value 244 00:11:38,520 --> 00:11:40,880 Speaker 1: that skill. And we could play around with some exercises 245 00:11:40,880 --> 00:11:43,880 Speaker 1: so that any human could figure out, Okay, I cody 246 00:11:44,360 --> 00:11:46,719 Speaker 1: know how to market something, how do I figure out 247 00:11:46,760 --> 00:11:48,560 Speaker 1: how much is that is worth? And how could I 248 00:11:48,600 --> 00:11:50,760 Speaker 1: transfer some of that to get a percentage of equity 249 00:11:50,800 --> 00:11:53,199 Speaker 1: in somebody's company just for the skill that I have. 250 00:11:53,920 --> 00:11:55,240 Speaker 1: The last thing I want to say there is like 251 00:11:56,520 --> 00:11:59,000 Speaker 1: more than anything. I think one, we think money's bad, 252 00:11:59,280 --> 00:12:02,600 Speaker 1: and then two money's scary, Like I don't really know why, 253 00:12:02,679 --> 00:12:05,559 Speaker 1: but I think we're scared of it, and we're scared 254 00:12:05,640 --> 00:12:07,840 Speaker 1: that we might not be able to make it, and 255 00:12:07,880 --> 00:12:10,160 Speaker 1: we're scared what if we lose it? And what if 256 00:12:10,160 --> 00:12:11,400 Speaker 1: our self worth is tied. 257 00:12:11,280 --> 00:12:11,600 Speaker 3: Up in it? 258 00:12:11,679 --> 00:12:13,720 Speaker 1: And should we actually ask for it? So we have 259 00:12:13,840 --> 00:12:16,480 Speaker 1: all these fears surrounding money, which is probably why we 260 00:12:16,480 --> 00:12:18,440 Speaker 1: don't talk about it too. And we got to kind 261 00:12:18,480 --> 00:12:20,800 Speaker 1: of work through that because money is just a tool. 262 00:12:21,160 --> 00:12:23,559 Speaker 1: So it's just like if you want to build a house. 263 00:12:23,840 --> 00:12:26,760 Speaker 1: Do you want to use a bunch of tiny little 264 00:12:26,840 --> 00:12:28,440 Speaker 1: nails and your own hammer, or do you want to 265 00:12:28,440 --> 00:12:30,120 Speaker 1: have a screw gun? And like in this instance, I 266 00:12:30,120 --> 00:12:31,120 Speaker 1: want to have the bigger gun. 267 00:12:31,320 --> 00:12:34,280 Speaker 2: Yeah. I want to look at three scenarios of our 268 00:12:34,320 --> 00:12:38,040 Speaker 2: audience and where they sit, and look at what your 269 00:12:38,040 --> 00:12:39,960 Speaker 2: advice would be for them at that point. So let's 270 00:12:40,000 --> 00:12:43,080 Speaker 2: say we have a listener who just graduated from college. 271 00:12:43,800 --> 00:12:45,760 Speaker 2: What should they be doing first? What should they be 272 00:12:45,840 --> 00:12:46,840 Speaker 2: thinking about right now? 273 00:12:46,960 --> 00:12:49,480 Speaker 1: Yeah, Well, here's how I think about making money. We 274 00:12:49,480 --> 00:12:51,720 Speaker 1: have a four step process that I think if you 275 00:12:51,720 --> 00:12:54,440 Speaker 1: don't have money, now, here's how you make it consistently 276 00:12:54,480 --> 00:12:56,440 Speaker 1: over time, and you have your money, go out and 277 00:12:56,440 --> 00:12:59,360 Speaker 1: bring back friends with it. The first is you've got 278 00:12:59,360 --> 00:13:01,560 Speaker 1: to learn. We've got to obsess in the beginning about 279 00:13:01,559 --> 00:13:03,600 Speaker 1: one thing. Only it's not what your salary is. It's 280 00:13:03,640 --> 00:13:06,160 Speaker 1: how can I cram as much information as humanly possible 281 00:13:06,200 --> 00:13:08,800 Speaker 1: in my brain in order for me to then do 282 00:13:08,880 --> 00:13:12,040 Speaker 1: the next thing, which is increase my skill stack. After 283 00:13:12,080 --> 00:13:14,320 Speaker 1: I learn, can I increase my skills so that my 284 00:13:14,360 --> 00:13:17,200 Speaker 1: skills are more valuable today than they were yesterday? And 285 00:13:17,240 --> 00:13:20,600 Speaker 1: the third is how can I increase my income, So 286 00:13:20,720 --> 00:13:23,360 Speaker 1: before you go thinking about investing in things overall, how 287 00:13:23,360 --> 00:13:25,640 Speaker 1: can I just make more money currently with what I'm doing? 288 00:13:26,040 --> 00:13:29,200 Speaker 1: And then finally we can get to invest. So after 289 00:13:29,240 --> 00:13:31,200 Speaker 1: we do these three steps, the final one is how 290 00:13:31,200 --> 00:13:33,000 Speaker 1: do I take my money and make my money work 291 00:13:33,040 --> 00:13:35,120 Speaker 1: for me? But in the beginning, you don't have money. 292 00:13:35,360 --> 00:13:37,600 Speaker 1: You know, you don't really have skills, you probably don't 293 00:13:37,600 --> 00:13:39,640 Speaker 1: have a ton of connections, and so what you actually 294 00:13:39,679 --> 00:13:41,960 Speaker 1: want to do is use your sweat, equity and your 295 00:13:42,240 --> 00:13:47,920 Speaker 1: experience and time as a really maybe hungry individual to 296 00:13:48,040 --> 00:13:50,360 Speaker 1: get money to eventually be able to invest the money. 297 00:13:50,400 --> 00:13:52,160 Speaker 1: And I think that's the other thing young people are 298 00:13:52,200 --> 00:13:55,280 Speaker 1: told that's a lie, is that you can go out 299 00:13:55,280 --> 00:13:59,600 Speaker 1: as a young person and you know, you know Fendi, Gucci, Prada, Lamborghini, 300 00:14:00,040 --> 00:14:02,720 Speaker 1: on the internet, make a bunch of fast cash and Airbnb, 301 00:14:02,840 --> 00:14:05,360 Speaker 1: arbitrage or whatever. Man, I wish somebody had told me 302 00:14:05,360 --> 00:14:06,840 Speaker 1: earlier on that's a terrible thing to do. 303 00:14:07,120 --> 00:14:09,320 Speaker 2: Yeah, And I think what's really interesting though, is when 304 00:14:09,360 --> 00:14:13,520 Speaker 2: you're talking about improving of skills. I think when we 305 00:14:13,559 --> 00:14:16,560 Speaker 2: graduate college, you think that that was the skill, like 306 00:14:16,559 --> 00:14:19,800 Speaker 2: that your degree was the investment in the skill. But 307 00:14:19,880 --> 00:14:23,320 Speaker 2: really what you're talking about our high value skills, talents, 308 00:14:23,800 --> 00:14:27,520 Speaker 2: abilities that actually make an impact in a workplace, and 309 00:14:27,560 --> 00:14:29,640 Speaker 2: those are really different. And so I'd meet a lot 310 00:14:29,720 --> 00:14:32,560 Speaker 2: of young people who sadly have spent so much money 311 00:14:32,560 --> 00:14:36,640 Speaker 2: on their degree, are really smart academically, but then that 312 00:14:36,680 --> 00:14:39,760 Speaker 2: skill doesn't translate into knowing how to make their company 313 00:14:39,760 --> 00:14:42,800 Speaker 2: more money, knowing how to lead people really well, knowing 314 00:14:42,840 --> 00:14:46,880 Speaker 2: how to build function systems, processes. And therefore it's like, well, 315 00:14:46,920 --> 00:14:48,560 Speaker 2: wait a minute, I just studied all these years, but 316 00:14:48,840 --> 00:14:49,800 Speaker 2: it doesn't translate. 317 00:14:49,960 --> 00:14:52,200 Speaker 1: Yeah, I think you're exactly right. I mean, for a 318 00:14:52,240 --> 00:14:55,880 Speaker 1: long time, we employed people from the top universities and 319 00:14:55,920 --> 00:14:57,760 Speaker 1: financial firms. We would go out and we would hand 320 00:14:57,760 --> 00:15:00,480 Speaker 1: select them because that would be an indicator of their grit, 321 00:15:00,600 --> 00:15:04,440 Speaker 1: perseverance and potentially their their intellect, their IQ. Now, by 322 00:15:04,480 --> 00:15:06,560 Speaker 1: and large, you're starting to see a lot of the 323 00:15:06,560 --> 00:15:10,600 Speaker 1: top institutions bypass that. You know, Google doesn't mandate that 324 00:15:10,600 --> 00:15:12,240 Speaker 1: you have a college degree if you're going into an 325 00:15:12,280 --> 00:15:14,600 Speaker 1: engineering degree, actually, and I think that should be really 326 00:15:14,640 --> 00:15:18,080 Speaker 1: liberating for us. It's basically breaking down this barrier, that's 327 00:15:18,080 --> 00:15:21,080 Speaker 1: a six figure barrier that allowed for the few, the 328 00:15:21,160 --> 00:15:24,720 Speaker 1: elites to stare step over everybody else, And now it's 329 00:15:24,760 --> 00:15:27,480 Speaker 1: actually saying how bad you want it, and don't tell 330 00:15:27,480 --> 00:15:30,720 Speaker 1: me what you learned, show me what you can do, 331 00:15:30,880 --> 00:15:33,200 Speaker 1: or even better, show me what you did. And so 332 00:15:33,280 --> 00:15:36,160 Speaker 1: I think the resume of the future is actually if 333 00:15:36,160 --> 00:15:37,520 Speaker 1: somebody came to you, Jay and they were like, I 334 00:15:37,600 --> 00:15:40,840 Speaker 1: just graduated from Wharton. I am very smart. You know, 335 00:15:41,040 --> 00:15:44,760 Speaker 1: I also did my undergraduate degree at Harvard. I now 336 00:15:44,800 --> 00:15:47,480 Speaker 1: want to come work for you. You'd be like, what do 337 00:15:47,520 --> 00:15:49,240 Speaker 1: you know how to do? Do you know how to market? 338 00:15:49,520 --> 00:15:52,480 Speaker 1: Do you know how to grow a beverage company? Do 339 00:15:52,520 --> 00:15:55,920 Speaker 1: you know how to increase our investment return? 340 00:15:56,280 --> 00:15:56,400 Speaker 2: Oh? 341 00:15:56,440 --> 00:15:58,600 Speaker 1: You kind of like theoretically have looked about how to 342 00:15:58,600 --> 00:16:01,080 Speaker 1: do that in a case study. That's probably less interesting 343 00:16:01,120 --> 00:16:03,240 Speaker 1: to you than somebody that goes you know what. I 344 00:16:03,400 --> 00:16:06,000 Speaker 1: was part of the beverage team at Arowon and Whole Foods, 345 00:16:06,160 --> 00:16:09,000 Speaker 1: and I figured out sort of across the country how 346 00:16:09,040 --> 00:16:14,120 Speaker 1: they buy different pieces of inventory. Yeah, attend right exactly. 347 00:16:14,320 --> 00:16:17,880 Speaker 1: And maybe because I want to help you grow this 348 00:16:17,960 --> 00:16:19,840 Speaker 1: individual business, which I know you care about because I 349 00:16:19,880 --> 00:16:21,840 Speaker 1: see it on your socials, I put together this little 350 00:16:21,840 --> 00:16:24,520 Speaker 1: spreadsheet for you. Here's the things they care about. Could 351 00:16:24,520 --> 00:16:27,800 Speaker 1: I come work for you for free for three or 352 00:16:27,840 --> 00:16:29,680 Speaker 1: six months, and if that works out, could we do 353 00:16:29,720 --> 00:16:33,120 Speaker 1: something better and bigger. The problem that people usually have 354 00:16:33,120 --> 00:16:34,480 Speaker 1: on the Internet when I throw out the word work 355 00:16:34,520 --> 00:16:37,400 Speaker 1: for free is young people are like, remember that part 356 00:16:37,440 --> 00:16:38,840 Speaker 1: where you told us that we were broke and we 357 00:16:38,840 --> 00:16:41,480 Speaker 1: don't have any money. So I'm not trying to dismiss 358 00:16:41,480 --> 00:16:43,160 Speaker 1: that at all, but I do think we have to 359 00:16:43,160 --> 00:16:45,480 Speaker 1: be honest about the fact that when we're young, you're 360 00:16:45,520 --> 00:16:47,840 Speaker 1: gonna have to work harder than you think, longer than 361 00:16:47,880 --> 00:16:50,080 Speaker 1: you think, doing stuff you don't like with people you 362 00:16:50,120 --> 00:16:53,000 Speaker 1: probably don't like, until eventually you get the right to 363 00:16:53,000 --> 00:16:56,000 Speaker 1: do something really interesting. But like, you don't die in 364 00:16:56,040 --> 00:16:58,760 Speaker 1: your first job from it being really hard and challenging. 365 00:16:59,040 --> 00:17:02,120 Speaker 1: You die from the apps, monotony and the low level 366 00:17:02,120 --> 00:17:04,359 Speaker 1: tasks you have to do for basically pennies on the dollar. 367 00:17:04,520 --> 00:17:08,359 Speaker 2: Yeah, definitely, definitely, absolutely, I fully agree. Let's say someone's 368 00:17:08,359 --> 00:17:11,120 Speaker 2: thirty years old. Yeah, they've or thirty to thirty five, 369 00:17:11,160 --> 00:17:14,359 Speaker 2: they worked ten fifteen years after graduating, They've been at 370 00:17:14,359 --> 00:17:16,160 Speaker 2: the same company, maybe they've moved once. 371 00:17:16,240 --> 00:17:16,720 Speaker 1: Yeah. 372 00:17:16,760 --> 00:17:18,680 Speaker 2: I was actually talking to someone like this yesterday. She's 373 00:17:18,680 --> 00:17:20,320 Speaker 2: been at this one company for six years. It's a 374 00:17:20,320 --> 00:17:23,119 Speaker 2: great company, great on her resume, but she's like, I 375 00:17:23,119 --> 00:17:25,119 Speaker 2: don't really want to be here. I don't think this 376 00:17:25,240 --> 00:17:28,160 Speaker 2: is where I see my future. But I'm so scared 377 00:17:28,200 --> 00:17:31,840 Speaker 2: of quitting. I don't know how to invest. I probably 378 00:17:31,880 --> 00:17:34,440 Speaker 2: didn't save that much anywhere. Now I feel bad about it. 379 00:17:34,720 --> 00:17:37,320 Speaker 2: I'm probably feeling a bit of shame and guilt that 380 00:17:37,359 --> 00:17:39,399 Speaker 2: I didn't save that much over the last ten years. 381 00:17:39,960 --> 00:17:40,960 Speaker 2: What would I do, Cody? 382 00:17:41,080 --> 00:17:42,760 Speaker 1: Well, one, I would say, these days, you do not 383 00:17:42,880 --> 00:17:46,719 Speaker 1: have to have money to make money, which is incredibly powerful. 384 00:17:47,040 --> 00:17:49,159 Speaker 1: So when I think about it, if I'm thirty and 385 00:17:49,240 --> 00:17:51,560 Speaker 1: I am at a company like that, what would I 386 00:17:51,600 --> 00:17:53,960 Speaker 1: do today? Well, I would actually probably sit down and 387 00:17:54,000 --> 00:17:56,439 Speaker 1: figure out what am I actually skilled at that somebody 388 00:17:56,440 --> 00:17:59,480 Speaker 1: else would pay me for? Once you know what somebody 389 00:17:59,480 --> 00:18:01,399 Speaker 1: else would pay for, which is really just like do 390 00:18:01,440 --> 00:18:03,520 Speaker 1: people ask for your opinion on this? Could you actually 391 00:18:03,560 --> 00:18:06,200 Speaker 1: get jobs in this space if it was me, because 392 00:18:06,280 --> 00:18:09,040 Speaker 1: I'm kind of unemployable, like you don't want me to 393 00:18:09,080 --> 00:18:11,080 Speaker 1: work for you, Like I got my own ideas. I 394 00:18:11,119 --> 00:18:13,080 Speaker 1: want to do things this way. If she's like that, 395 00:18:13,440 --> 00:18:14,720 Speaker 1: then what you want to do is you want to 396 00:18:14,760 --> 00:18:17,439 Speaker 1: try to partner with somebody where you can be the 397 00:18:17,480 --> 00:18:20,440 Speaker 1: solution to their problem. And because you understand what I 398 00:18:20,520 --> 00:18:22,760 Speaker 1: call deal making, which is really the language of money, 399 00:18:23,080 --> 00:18:25,960 Speaker 1: you can negotiate an ability for you to own part 400 00:18:26,000 --> 00:18:27,719 Speaker 1: of a thing in order for you to have one 401 00:18:27,760 --> 00:18:30,959 Speaker 1: of three outcomes. If she can figure out if she 402 00:18:30,960 --> 00:18:34,320 Speaker 1: can help a business grow its revenue, make more money, 403 00:18:34,520 --> 00:18:37,320 Speaker 1: if she can help a business cut its costs, or 404 00:18:37,320 --> 00:18:40,439 Speaker 1: if she can help decrease the pain of a business owner. 405 00:18:40,720 --> 00:18:43,399 Speaker 1: You can negotiate your way into a business and have 406 00:18:43,480 --> 00:18:46,320 Speaker 1: equity in it and upside. And I wish somebody had 407 00:18:46,320 --> 00:18:49,520 Speaker 1: taught me that earlier, because this is what consultants do, 408 00:18:49,720 --> 00:18:52,080 Speaker 1: this is what private equity firms do, this is what 409 00:18:52,240 --> 00:18:54,600 Speaker 1: some of the largest institutions in the world do. I 410 00:18:54,640 --> 00:18:56,719 Speaker 1: call it expertise to equity. But if I was her, 411 00:18:56,720 --> 00:18:59,119 Speaker 1: I'd say, don't go find another job. And if you 412 00:18:59,160 --> 00:19:01,800 Speaker 1: don't have a brilliant idea that you're like, I would 413 00:19:01,920 --> 00:19:04,320 Speaker 1: die for the want of creating this thing in the world. 414 00:19:04,359 --> 00:19:05,800 Speaker 1: If you have that, please go do it. But if 415 00:19:05,840 --> 00:19:08,080 Speaker 1: you're like I don't have that. I just want to 416 00:19:08,080 --> 00:19:10,960 Speaker 1: make money and I want to feel respected, and I 417 00:19:10,960 --> 00:19:13,320 Speaker 1: want to feel like my skills fit somewhere and I'm 418 00:19:13,359 --> 00:19:16,640 Speaker 1: able to have an outsized income. If that's you, then 419 00:19:16,840 --> 00:19:19,200 Speaker 1: I think you should try to value your skill set. 420 00:19:19,560 --> 00:19:22,440 Speaker 1: Then you should try to negotiate for an upside deal 421 00:19:22,480 --> 00:19:24,720 Speaker 1: with somebody, and you should try your hand at this 422 00:19:24,760 --> 00:19:28,160 Speaker 1: game called ownership, which is where you say, hey, small business, 423 00:19:28,400 --> 00:19:30,400 Speaker 1: I know how to market. Can I help you market 424 00:19:30,440 --> 00:19:32,679 Speaker 1: at the side while I'm working on this company? And 425 00:19:32,800 --> 00:19:35,320 Speaker 1: because I help you grow your revenue by fifty percent? 426 00:19:35,720 --> 00:19:38,359 Speaker 1: Could I keep ten percent of the fifty percent I grow? 427 00:19:38,760 --> 00:19:40,600 Speaker 1: Do you think a small business owner would say yes 428 00:19:40,680 --> 00:19:44,720 Speaker 1: to that? Of course they would, because there's no downside. 429 00:19:45,240 --> 00:19:47,240 Speaker 1: And I think more often than not, we think that 430 00:19:47,280 --> 00:19:49,399 Speaker 1: the only risk you can take and making money in 431 00:19:49,440 --> 00:19:52,240 Speaker 1: business is putting your own cash down. That's a risk, 432 00:19:52,600 --> 00:19:55,560 Speaker 1: or starting a business aka dedicating your life to something. 433 00:19:56,320 --> 00:19:58,280 Speaker 1: The last part I'll get a little statistic on us 434 00:19:58,359 --> 00:20:01,439 Speaker 1: is ninety percent of startups fail inside any rolling ten 435 00:20:01,520 --> 00:20:04,760 Speaker 1: year period. We know that statistic. Most startups make zero 436 00:20:04,800 --> 00:20:07,800 Speaker 1: dollars for the first three years. After that, the average 437 00:20:07,880 --> 00:20:10,120 Speaker 1: entrepreneur makes about forty six thousand dollars a year, which 438 00:20:10,160 --> 00:20:12,560 Speaker 1: is great, but not when you've been making zero for 439 00:20:12,600 --> 00:20:15,200 Speaker 1: three years. And then on top of that, we've got 440 00:20:15,200 --> 00:20:17,840 Speaker 1: this nation of people who have all these bills to pay, 441 00:20:18,320 --> 00:20:21,560 Speaker 1: and they're betting on hopes and dreams as opposed to realities. 442 00:20:21,800 --> 00:20:25,480 Speaker 1: And so my commentary is, can you figure out how 443 00:20:25,520 --> 00:20:28,240 Speaker 1: to value your skills so you can negotiate a little 444 00:20:28,240 --> 00:20:30,640 Speaker 1: bit more upside for that day where you can't work anymore. 445 00:20:31,119 --> 00:20:34,040 Speaker 2: Hey everyone, it's Jay Shetty and I'm thrilled to announce 446 00:20:34,119 --> 00:20:37,960 Speaker 2: my podcast tool. For the first time ever, you can 447 00:20:38,000 --> 00:20:41,960 Speaker 2: see my on Purpose podcast live and in person. Join 448 00:20:42,040 --> 00:20:45,959 Speaker 2: me in a city near you for meaningful, insightful conversations 449 00:20:46,160 --> 00:20:50,480 Speaker 2: with surprise guests. It could be a celebrity, top wellness expert, 450 00:20:50,840 --> 00:20:54,760 Speaker 2: or a CEO or business leader. We'll dive into experiences 451 00:20:54,800 --> 00:21:00,000 Speaker 2: designed to inspire growth, spark learning, and build real connections. 452 00:21:00,000 --> 00:21:02,600 Speaker 2: I wait to see you there. Tickets are on sell now. 453 00:21:02,880 --> 00:21:07,560 Speaker 2: Head to Jayshetty dot me and get yours today. Yeah. Definitely, E. 454 00:21:08,359 --> 00:21:12,439 Speaker 2: I'm so happy to hear such like smart, honest advice 455 00:21:12,560 --> 00:21:14,920 Speaker 2: because I do think you're so right. For so long 456 00:21:14,960 --> 00:21:18,119 Speaker 2: we keep telling everyone like follow your passion, like just 457 00:21:18,200 --> 00:21:21,160 Speaker 2: quit your job, like jump over, and you know it's 458 00:21:21,680 --> 00:21:24,480 Speaker 2: it's hard because like you said that business may not work, 459 00:21:24,560 --> 00:21:26,600 Speaker 2: your skills may be better off here. You might not 460 00:21:26,640 --> 00:21:29,000 Speaker 2: be an entrepreneur, you might be someone who's gonna work 461 00:21:29,040 --> 00:21:31,760 Speaker 2: with an entrepreneur and build. I wanted to address something though. 462 00:21:31,800 --> 00:21:34,560 Speaker 2: I do find a lot of leaders and a lot 463 00:21:34,560 --> 00:21:37,879 Speaker 2: of founders of small businesses or up and coming businesses 464 00:21:38,560 --> 00:21:45,960 Speaker 2: to also be quite resistant to recognizing the value of sharing. 465 00:21:46,080 --> 00:21:47,800 Speaker 2: So I'll give an example of what I mean by this. Like, 466 00:21:47,840 --> 00:21:50,240 Speaker 2: when I was starting out, I remember speaking to people 467 00:21:50,560 --> 00:21:53,600 Speaker 2: who are much more established than I was, and I said, Hey, 468 00:21:53,600 --> 00:21:55,920 Speaker 2: I've got a person i'm going to work with. I'm 469 00:21:55,960 --> 00:21:59,760 Speaker 2: gonna split things seventy five twenty five, and they're going 470 00:21:59,800 --> 00:22:01,359 Speaker 2: to get twenty five percent of profits. I'm going to 471 00:22:01,440 --> 00:22:03,679 Speaker 2: keep seventy five because they have a skill set I 472 00:22:03,680 --> 00:22:06,000 Speaker 2: don't have, and it will be complementary. And I remember 473 00:22:06,040 --> 00:22:08,400 Speaker 2: everyone telling me it was a really bad idea, because 474 00:22:08,400 --> 00:22:10,720 Speaker 2: I'm like, Jay, like, no, you you're building a platform. 475 00:22:10,800 --> 00:22:12,800 Speaker 2: You should earn one hundred percent of it. And I 476 00:22:12,840 --> 00:22:15,040 Speaker 2: was like, but no, they're going to manage stress for me. 477 00:22:15,200 --> 00:22:18,080 Speaker 2: They're going to manage teams. I want to see them grow. 478 00:22:18,080 --> 00:22:19,600 Speaker 2: I want them to feel like they've got skin in 479 00:22:19,600 --> 00:22:23,240 Speaker 2: the game. And now you know, eight years later since 480 00:22:23,280 --> 00:22:26,040 Speaker 2: that decision, I'm so much happier and I have a 481 00:22:26,080 --> 00:22:29,000 Speaker 2: great relationship with my one of my business partners. We 482 00:22:29,040 --> 00:22:31,560 Speaker 2: have a great relationship. He's as invested as he is 483 00:22:31,840 --> 00:22:34,600 Speaker 2: as he was then. Things have grown really well, and 484 00:22:34,640 --> 00:22:37,119 Speaker 2: I'm like the people that were trying to hold on 485 00:22:37,160 --> 00:22:40,639 Speaker 2: to that last five to ten percent, yeah, actually haven't grown. 486 00:22:41,200 --> 00:22:44,080 Speaker 2: And so it was really interesting to me though that 487 00:22:44,160 --> 00:22:46,680 Speaker 2: I see that again and again and again, where even 488 00:22:46,960 --> 00:22:50,760 Speaker 2: founders and new leaders are actually scared of parting with something. 489 00:22:50,760 --> 00:22:53,240 Speaker 2: How would you encourage them to think about that differently? 490 00:22:53,440 --> 00:22:57,480 Speaker 3: Well, I actually would say, be scared of partnerships, Oh great, 491 00:22:57,520 --> 00:22:59,520 Speaker 3: because fifty percent of marriage is and divorced, but one 492 00:22:59,600 --> 00:23:04,200 Speaker 3: hundred of business marriages typically, and because no business lasts forever, right, 493 00:23:04,440 --> 00:23:06,000 Speaker 3: and so at some point you're going to have a 494 00:23:06,080 --> 00:23:09,080 Speaker 3: rift with your business partner by and large, and probably 495 00:23:09,119 --> 00:23:10,399 Speaker 3: you'll have a few rifts with them. 496 00:23:10,400 --> 00:23:11,800 Speaker 1: So I would actually say it's cool to be scared 497 00:23:11,800 --> 00:23:14,520 Speaker 1: about that, you should be. The thing that I want 498 00:23:14,600 --> 00:23:16,920 Speaker 1: people to think about is like, I want to make 499 00:23:17,080 --> 00:23:20,119 Speaker 1: risk a non four letter word, because I think the 500 00:23:20,200 --> 00:23:23,240 Speaker 1: key to wealth is actually risk taking some of it 501 00:23:23,760 --> 00:23:25,879 Speaker 1: the question is if you're like me, I'm kind of 502 00:23:25,880 --> 00:23:27,760 Speaker 1: a wuss, Like I stayed in a corporate job for 503 00:23:27,760 --> 00:23:29,479 Speaker 1: twelve years because I was too scared to do things 504 00:23:29,520 --> 00:23:31,399 Speaker 1: by myself. Even though I was like pretty highly skilled, 505 00:23:31,440 --> 00:23:33,199 Speaker 1: I had a decent amount of cash, I was like, 506 00:23:34,080 --> 00:23:35,679 Speaker 1: definitely not going to make it. I don't think I'm 507 00:23:35,800 --> 00:23:37,480 Speaker 1: I don't think I'm capable, like it took me a 508 00:23:37,520 --> 00:23:40,239 Speaker 1: long time to get there. And so what I did is, 509 00:23:40,400 --> 00:23:43,359 Speaker 1: I'm all about risk mitigation, which is like a fancy, 510 00:23:43,480 --> 00:23:46,439 Speaker 1: you know, financy word to say, how can I just 511 00:23:46,560 --> 00:23:50,280 Speaker 1: make the outcome so in my favor that even if 512 00:23:50,560 --> 00:23:52,719 Speaker 1: I'm not as smart as I think I am, it's 513 00:23:52,720 --> 00:23:54,760 Speaker 1: almost like a win win no matter what. And so 514 00:23:54,840 --> 00:23:58,520 Speaker 1: in that instance, I would probably say tell the make 515 00:23:58,600 --> 00:24:00,720 Speaker 1: the founder a deal so good that they would feel 516 00:24:00,760 --> 00:24:03,639 Speaker 1: dumb saying no to it. And so if if I 517 00:24:03,680 --> 00:24:06,359 Speaker 1: was coming to you Jay and Jay was just starting out, 518 00:24:06,480 --> 00:24:08,600 Speaker 1: I wouldn't do this to somebody who has a big platform. 519 00:24:08,640 --> 00:24:11,120 Speaker 1: They have way too much, too many resources. You need 520 00:24:11,160 --> 00:24:12,959 Speaker 1: to go with somebody that's more accessible to you, that 521 00:24:13,000 --> 00:24:15,280 Speaker 1: doesn't have a lot of resources. It's more on your level. 522 00:24:15,760 --> 00:24:18,160 Speaker 1: But when you find that person, you go hey, win 523 00:24:18,240 --> 00:24:22,520 Speaker 1: win deal. Don't give me a cent unless I provide 524 00:24:22,800 --> 00:24:25,800 Speaker 1: X value, like literally nothing. Don't give me a percentage 525 00:24:25,800 --> 00:24:27,920 Speaker 1: of the company right away. I never give a percentage 526 00:24:27,920 --> 00:24:30,040 Speaker 1: of my companies right away anymore. I did once cost 527 00:24:30,080 --> 00:24:31,840 Speaker 1: me a million bucks. I was pissed. I didn't do 528 00:24:31,880 --> 00:24:35,239 Speaker 1: it again. So you can do. It's called an urn 529 00:24:35,320 --> 00:24:38,199 Speaker 1: in or milestone based deliverables, which I know sounds like 530 00:24:38,800 --> 00:24:41,000 Speaker 1: a little maybe boring. If people are listening the. 531 00:24:41,040 --> 00:24:42,440 Speaker 2: Right way to do it, I'm so glad you're giving 532 00:24:42,440 --> 00:24:43,320 Speaker 2: this advice. It's great. 533 00:24:43,560 --> 00:24:45,440 Speaker 1: Yeah, I mean what you want to do is say, hey, 534 00:24:46,359 --> 00:24:48,359 Speaker 1: I love you, you love me, We're going to be 535 00:24:48,359 --> 00:24:50,919 Speaker 1: together forever. In the off chance that you see a 536 00:24:50,960 --> 00:24:52,760 Speaker 1: hot little side piece and you run off with them. 537 00:24:52,840 --> 00:24:54,840 Speaker 1: I want an ability to get the business back right, 538 00:24:55,280 --> 00:24:58,680 Speaker 1: and so in that way, I am going to instead say, hey, 539 00:24:58,960 --> 00:25:01,160 Speaker 1: I'm taking all the risk in business for the most part, 540 00:25:01,480 --> 00:25:03,600 Speaker 1: I'm putting in the capitol. Unless you're going to put 541 00:25:03,600 --> 00:25:07,040 Speaker 1: in money that is equal to me. You only get 542 00:25:07,160 --> 00:25:08,960 Speaker 1: the equity in the business or the upside in the 543 00:25:08,960 --> 00:25:13,480 Speaker 1: business if you it's either duration or it's execution. So 544 00:25:13,760 --> 00:25:16,760 Speaker 1: either you're here for one, two, three years, which is 545 00:25:16,800 --> 00:25:20,720 Speaker 1: called cliff based investing. Or you're here for the first 546 00:25:20,760 --> 00:25:22,760 Speaker 1: million that you helped me get in, and then the second, 547 00:25:23,000 --> 00:25:25,080 Speaker 1: second million, and then the third million, and if you 548 00:25:25,160 --> 00:25:27,239 Speaker 1: help me hit those milestones, you get the equity. If 549 00:25:27,280 --> 00:25:29,720 Speaker 1: you don't, I wish you well, you wish me well. 550 00:25:29,760 --> 00:25:31,479 Speaker 1: But we've already signed a prenup and this is how 551 00:25:31,480 --> 00:25:33,840 Speaker 1: it works. And so I think we need to start 552 00:25:33,840 --> 00:25:36,919 Speaker 1: thinking like that. And it's very non American. We're not 553 00:25:36,960 --> 00:25:41,760 Speaker 1: so used to negotiating. Probably non British too. Actually, Indians 554 00:25:41,960 --> 00:25:44,680 Speaker 1: incredible at negotiation, same with a lot of people in 555 00:25:44,680 --> 00:25:47,359 Speaker 1: the Middle East, but British and American people not so 556 00:25:47,400 --> 00:25:50,560 Speaker 1: good at negotiating. We think that it's like a low 557 00:25:50,640 --> 00:25:54,000 Speaker 1: level signal on average. So like when I was young, 558 00:25:54,720 --> 00:25:57,480 Speaker 1: my mom, we call her the pipule. She's amazing and 559 00:25:57,520 --> 00:26:00,640 Speaker 1: she would always negotiate everything. My dad's an incredible businessman, 560 00:26:00,760 --> 00:26:03,000 Speaker 1: like totally pull himself up by his own bootstraps, but 561 00:26:03,040 --> 00:26:05,239 Speaker 1: my mom would go negotiate. And I don't know if 562 00:26:05,240 --> 00:26:08,159 Speaker 1: you ever felt like this, but I remember sometimes, you know, 563 00:26:08,200 --> 00:26:10,680 Speaker 1: my mom would be like negotiating for a different price. 564 00:26:10,720 --> 00:26:13,479 Speaker 1: I mom, oh all the time, like please stop, you 565 00:26:13,520 --> 00:26:15,359 Speaker 1: just pay it. And she would look at me and 566 00:26:15,359 --> 00:26:18,320 Speaker 1: she would say, like, once it's your money, you pay it, 567 00:26:18,359 --> 00:26:20,199 Speaker 1: but it's my money, so like, get out of here 568 00:26:20,240 --> 00:26:21,879 Speaker 1: if you don't want to deal with this. And I 569 00:26:21,960 --> 00:26:25,480 Speaker 1: used to think it was so embarrassing, and now I realize, oh, 570 00:26:25,480 --> 00:26:28,000 Speaker 1: that's very smart, and it's actually the thing the wealthy 571 00:26:28,040 --> 00:26:30,600 Speaker 1: do more than anything else that the poor do not, 572 00:26:31,160 --> 00:26:34,960 Speaker 1: which is the wealthy negotiate everything and the poor take 573 00:26:35,080 --> 00:26:36,960 Speaker 1: price while the rich set price. 574 00:26:38,440 --> 00:26:41,040 Speaker 2: Wow, I've never thought about it like that. Set price 575 00:26:41,080 --> 00:26:45,320 Speaker 2: best is taking a price. And I love your mindful 576 00:26:45,600 --> 00:26:49,200 Speaker 2: habits on mitigating risk in a business relationship both sides. 577 00:26:49,240 --> 00:26:52,080 Speaker 2: I think it's I'm glad that you laid it out 578 00:26:52,119 --> 00:26:54,119 Speaker 2: that way because I completely agree with you the amount 579 00:26:54,160 --> 00:26:57,240 Speaker 2: of business relationships that have challenges and issues and everything. 580 00:26:57,359 --> 00:26:58,920 Speaker 2: I want to go back a few moments to when 581 00:26:58,960 --> 00:27:02,199 Speaker 2: you were saying you were stuck for twelve years. And 582 00:27:02,240 --> 00:27:04,200 Speaker 2: the reason I want to talk about that is because 583 00:27:04,880 --> 00:27:07,080 Speaker 2: now when I see you, and whether someone sees you 584 00:27:07,119 --> 00:27:09,399 Speaker 2: online or writing your book or you know, you're on 585 00:27:09,480 --> 00:27:12,200 Speaker 2: all these awesome podcasts and you're talking so confidently and 586 00:27:12,720 --> 00:27:15,640 Speaker 2: you're so clear that to hear that you had doubt 587 00:27:15,640 --> 00:27:18,240 Speaker 2: and it took your long time to get over it. 588 00:27:18,840 --> 00:27:20,720 Speaker 2: Walk me through what was going on in your mind 589 00:27:20,920 --> 00:27:23,840 Speaker 2: during that twenty four month period, twelve month period before 590 00:27:23,880 --> 00:27:27,600 Speaker 2: you actually managed to quit. What was going inside Cody's head? 591 00:27:27,680 --> 00:27:30,879 Speaker 1: Oh yeah, I think I would have stayed an employee forever. 592 00:27:31,040 --> 00:27:32,439 Speaker 2: Check me too. That's why I'm asking. 593 00:27:32,640 --> 00:27:35,399 Speaker 1: I like, And I also think, if you're listening right 594 00:27:35,440 --> 00:27:37,760 Speaker 1: now and you ever feel less, then for being an employee, 595 00:27:37,760 --> 00:27:40,600 Speaker 1: you tell that person a pound sand because I guarantee 596 00:27:40,640 --> 00:27:43,679 Speaker 1: you Cheryl Sandberg is worth a lot more than many entrepreneurs. 597 00:27:43,840 --> 00:27:45,840 Speaker 1: And she was an entrepreneur. She worked inside of a 598 00:27:45,880 --> 00:27:50,520 Speaker 1: business and amassed massive wealth, prestige, status, and impact from it. 599 00:27:50,800 --> 00:27:54,320 Speaker 1: And so I don't like when people make employees feel less. 600 00:27:54,320 --> 00:27:56,120 Speaker 1: Then you and I couldn't do what we do if 601 00:27:56,160 --> 00:27:58,240 Speaker 1: we didn't have people who also wanted to build a 602 00:27:58,280 --> 00:27:59,879 Speaker 1: vision with a team as opposed to an end of it. 603 00:28:00,320 --> 00:28:02,360 Speaker 1: So one you can make a ton of money, whether 604 00:28:02,400 --> 00:28:04,679 Speaker 1: you're an employee or whether you are the founder of 605 00:28:04,720 --> 00:28:06,560 Speaker 1: the business. You just got to get a little skin 606 00:28:06,600 --> 00:28:08,679 Speaker 1: in the game and upside. And you get skin in 607 00:28:08,680 --> 00:28:11,159 Speaker 1: the game and upside when you have more value. You 608 00:28:11,160 --> 00:28:13,120 Speaker 1: don't just ask for it. You've got to be able 609 00:28:13,160 --> 00:28:17,560 Speaker 1: to earn it. And so when I was thinking those 610 00:28:17,640 --> 00:28:21,480 Speaker 1: last two years in the business, I was running a 611 00:28:21,520 --> 00:28:24,239 Speaker 1: business in Latin America. I had taken the business from 612 00:28:24,359 --> 00:28:27,119 Speaker 1: zero to a billion dollars in assets under management. I 613 00:28:27,160 --> 00:28:28,480 Speaker 1: had done it for in a place that I had 614 00:28:28,520 --> 00:28:32,359 Speaker 1: never lived, in Mexico, Chile, Colombia, Peru. I didn't have 615 00:28:32,440 --> 00:28:35,399 Speaker 1: contacts there. I'd like built something from nothing, and I 616 00:28:35,440 --> 00:28:38,400 Speaker 1: was really proud of that. But I wasn't very good 617 00:28:38,400 --> 00:28:40,640 Speaker 1: at doing deals back then, and maybe that's why I'm 618 00:28:40,680 --> 00:28:42,800 Speaker 1: obsessed with it now, because I did a shitty deal 619 00:28:43,560 --> 00:28:45,160 Speaker 1: with a guy that I respect a lot, but he 620 00:28:45,200 --> 00:28:47,560 Speaker 1: was just better than me, and he ran the company 621 00:28:48,440 --> 00:28:51,080 Speaker 1: and I built up this huge thing. But basically I 622 00:28:51,120 --> 00:28:54,040 Speaker 1: had no way to take the assets of the business 623 00:28:54,040 --> 00:28:55,760 Speaker 1: with me. The only thing that I could do is 624 00:28:55,760 --> 00:28:58,160 Speaker 1: stay at that business and continue to get partnership until 625 00:28:58,200 --> 00:29:00,760 Speaker 1: they eventually sold. I was like, gosh, I don't want 626 00:29:00,760 --> 00:29:03,240 Speaker 1: to be here for thirty years. And at the time, 627 00:29:03,640 --> 00:29:06,400 Speaker 1: again I respected the CEO a lot, but we didn't 628 00:29:06,440 --> 00:29:09,400 Speaker 1: believe in the same world. Like I believe in a 629 00:29:09,440 --> 00:29:12,400 Speaker 1: world in which we can all get rich together. He 630 00:29:12,480 --> 00:29:14,320 Speaker 1: believed in a world in which he told me, we 631 00:29:14,400 --> 00:29:17,080 Speaker 1: get rich quietly, and he believed that if you told 632 00:29:17,120 --> 00:29:19,600 Speaker 1: people that you were rich, they came after you, which 633 00:29:19,640 --> 00:29:22,600 Speaker 1: sometimes they do. And because of that, he wanted to 634 00:29:22,600 --> 00:29:25,480 Speaker 1: protect himself and be quiet. And I said, I don't 635 00:29:25,480 --> 00:29:27,680 Speaker 1: want to live in that world. And so we thought 636 00:29:27,680 --> 00:29:29,600 Speaker 1: about that. I thought we should run the business this way. 637 00:29:29,600 --> 00:29:31,720 Speaker 1: He thought we should run the business that way. And 638 00:29:31,800 --> 00:29:34,320 Speaker 1: so for those last two years, if he hadn't finally 639 00:29:34,360 --> 00:29:36,280 Speaker 1: taken me on a beach for a walk, him and 640 00:29:36,280 --> 00:29:38,520 Speaker 1: I went he runs a multi hundreds, hundreds and hundreds 641 00:29:38,520 --> 00:29:41,000 Speaker 1: billions of dollar company. We're still friends this day. But 642 00:29:41,640 --> 00:29:44,080 Speaker 1: he essentially gave me an ultimatum. He said, listen, I 643 00:29:44,120 --> 00:29:46,280 Speaker 1: want to row left. You want to row right. The 644 00:29:46,320 --> 00:29:48,520 Speaker 1: problem is you need to get your own chips. You 645 00:29:48,560 --> 00:29:50,640 Speaker 1: got to get your own boat. You're on my boat 646 00:29:50,760 --> 00:29:52,520 Speaker 1: and you're trying to row this way and we're going 647 00:29:52,560 --> 00:29:55,000 Speaker 1: this way. So you got to make a decision. And 648 00:29:55,080 --> 00:29:57,280 Speaker 1: at the time I was so mad. I was like, 649 00:29:57,680 --> 00:30:00,000 Speaker 1: I built this from nothing. You guys can't even speak space. 650 00:30:00,360 --> 00:30:02,280 Speaker 1: I'm down here, do it. Like I was mad, I 651 00:30:02,320 --> 00:30:05,520 Speaker 1: was super entitled that I realized, Cody, did you put 652 00:30:05,520 --> 00:30:07,600 Speaker 1: any of the money on the table to build this business. No, 653 00:30:08,120 --> 00:30:09,840 Speaker 1: you know, did you take the risk? 654 00:30:10,120 --> 00:30:10,200 Speaker 2: No? 655 00:30:10,400 --> 00:30:13,280 Speaker 1: Besides coming here like that was his and so he 656 00:30:13,360 --> 00:30:17,360 Speaker 1: was right, and I couldn't take anything with me. I 657 00:30:17,360 --> 00:30:20,120 Speaker 1: did put my old number two in charge of that business, 658 00:30:20,120 --> 00:30:21,840 Speaker 1: which is cool, she still runs it to this day. 659 00:30:22,320 --> 00:30:24,480 Speaker 1: But I was really like mad at myself and sad. 660 00:30:24,920 --> 00:30:29,160 Speaker 1: And so before I left there, I had done a 661 00:30:29,160 --> 00:30:31,800 Speaker 1: lot of little investments. I called him throwing out my chips. So, 662 00:30:32,200 --> 00:30:33,720 Speaker 1: you know, once you start to make a little money, 663 00:30:33,720 --> 00:30:37,480 Speaker 1: I think it's really helpful to start investing in the 664 00:30:37,520 --> 00:30:40,320 Speaker 1: things that you want to eventually earn from. So I 665 00:30:40,400 --> 00:30:43,160 Speaker 1: knew I wanted to get into some venture capital like things. 666 00:30:43,160 --> 00:30:45,680 Speaker 1: So I started investing in some venture capital firms. And 667 00:30:45,760 --> 00:30:49,000 Speaker 1: so when he finally gave me that ultimatum, I jumped 668 00:30:49,040 --> 00:30:51,240 Speaker 1: ship went to another company, and I didn't even have 669 00:30:51,280 --> 00:30:53,600 Speaker 1: the balls to do it by myself. Then I was 670 00:30:53,840 --> 00:30:57,400 Speaker 1: partnered up with a few other people, and man, like 671 00:30:57,520 --> 00:30:59,040 Speaker 1: a lot of terrible things can happen to you when 672 00:30:59,040 --> 00:31:01,400 Speaker 1: you don't believe in yourself. And I think the universe 673 00:31:01,960 --> 00:31:04,480 Speaker 1: like it will tell you kind of what you need 674 00:31:04,520 --> 00:31:06,680 Speaker 1: to do. And then if you don't listen, I'll annoy 675 00:31:06,760 --> 00:31:08,200 Speaker 1: you for a while and then at some point I'll 676 00:31:08,240 --> 00:31:10,680 Speaker 1: just kick you in the face. I'd like, that's my experience. 677 00:31:10,720 --> 00:31:12,800 Speaker 2: You probably have a nicer experience with the universe. 678 00:31:13,040 --> 00:31:14,600 Speaker 1: But he's kind of like, come on, we should do this, 679 00:31:14,600 --> 00:31:16,400 Speaker 1: we should do this, and it just pushes you off 680 00:31:16,400 --> 00:31:19,120 Speaker 1: the cliff. And so with me, I raised a ton 681 00:31:19,160 --> 00:31:21,680 Speaker 1: of money for this company. I had these couple of partners, 682 00:31:22,160 --> 00:31:24,880 Speaker 1: and at the end, like it didn't work out between us, 683 00:31:25,120 --> 00:31:28,120 Speaker 1: and again unemployable. I wanted to go left, they wanted 684 00:31:28,160 --> 00:31:29,680 Speaker 1: to go right, and I didn't really do that good 685 00:31:29,680 --> 00:31:32,520 Speaker 1: of a deal. And so twice this happened, but that 686 00:31:32,680 --> 00:31:35,080 Speaker 1: last time I did a better deal. And so I said, 687 00:31:35,120 --> 00:31:37,120 Speaker 1: you guys have to pay me out for what I did, 688 00:31:37,560 --> 00:31:40,360 Speaker 1: and I'm going to go do this new business and 689 00:31:40,360 --> 00:31:42,520 Speaker 1: I want to take some of our investors. And so 690 00:31:43,600 --> 00:31:45,760 Speaker 1: if somebody hadn't pushed me out of a company, and 691 00:31:45,840 --> 00:31:49,280 Speaker 1: if somebody else hadn't also said no, we don't want 692 00:31:49,280 --> 00:31:50,800 Speaker 1: to do this with you, I never would have done 693 00:31:50,800 --> 00:31:53,160 Speaker 1: it by myself. And so I think it's it's okay 694 00:31:53,200 --> 00:31:55,000 Speaker 1: if somebody is listening and you're stuck in a corporate 695 00:31:55,040 --> 00:31:57,640 Speaker 1: job quote unquote stuck for a long time, that's okay, 696 00:31:57,840 --> 00:31:59,880 Speaker 1: and it's also okay if it takes you a few tries. 697 00:32:00,240 --> 00:32:02,200 Speaker 1: And I don't think that the only way to make 698 00:32:02,240 --> 00:32:04,520 Speaker 1: money is to go be an entrepreneur and founder and 699 00:32:04,560 --> 00:32:06,760 Speaker 1: do it all by yourself and never work in corporate America. 700 00:32:07,080 --> 00:32:09,040 Speaker 1: I'm very grateful for the money that they spent on 701 00:32:09,120 --> 00:32:09,880 Speaker 1: me for decades. 702 00:32:10,080 --> 00:32:12,880 Speaker 2: Yeah. Absolutely, And I think there's plenty of good examples, 703 00:32:12,920 --> 00:32:15,920 Speaker 2: as you said, of entrepreneurs. And I think it's more 704 00:32:15,920 --> 00:32:19,520 Speaker 2: a mindset thing. What I'm hearing from you is it's 705 00:32:19,520 --> 00:32:23,160 Speaker 2: getting skin in the game, it's negotiating well, it's being 706 00:32:23,160 --> 00:32:25,400 Speaker 2: an owner, right like that. That's really what I'm hearing. 707 00:32:25,440 --> 00:32:27,680 Speaker 2: And I think if people take those three things away 708 00:32:28,000 --> 00:32:30,600 Speaker 2: from what we've talked about so far, that's what you 709 00:32:30,640 --> 00:32:32,760 Speaker 2: want to put your attention to, rather than this idea 710 00:32:32,840 --> 00:32:34,680 Speaker 2: of oh, I've got to start a business, I've got 711 00:32:34,680 --> 00:32:36,560 Speaker 2: to become an entrepreneur. I've got to learn how to invest. 712 00:32:36,600 --> 00:32:38,720 Speaker 2: It's like, no, no, no, this is it. This is 713 00:32:38,720 --> 00:32:39,200 Speaker 2: what it is. 714 00:32:39,320 --> 00:32:41,960 Speaker 1: You're right, Yeah, lots of people focus on the tactics. 715 00:32:42,240 --> 00:32:45,360 Speaker 1: They don't focus on the foundation. The foundation is do 716 00:32:45,400 --> 00:32:48,680 Speaker 1: you believe that you have ownership and responsibility for the 717 00:32:48,720 --> 00:32:51,920 Speaker 1: things you spend more time doing than anything besides sleeping, 718 00:32:52,000 --> 00:32:54,120 Speaker 1: which is working. And if you have what we call 719 00:32:54,160 --> 00:32:56,560 Speaker 1: an owner's mindset, so the type of human that's like 720 00:32:57,040 --> 00:33:00,200 Speaker 1: I'm putting like respect and dignity into what I do 721 00:33:00,280 --> 00:33:02,840 Speaker 1: every day to the point that I start to value 722 00:33:02,880 --> 00:33:06,280 Speaker 1: my own worth and I understand why I'm valued, then 723 00:33:06,280 --> 00:33:09,120 Speaker 1: you will finally be able to negotiate for the only 724 00:33:09,160 --> 00:33:10,840 Speaker 1: thing that nobody can take from you. Somebody can take 725 00:33:10,840 --> 00:33:13,080 Speaker 1: a job, somebody can take a salary, nobody can take 726 00:33:13,160 --> 00:33:15,960 Speaker 1: contractual ownership in a business. And I think that's really 727 00:33:15,960 --> 00:33:19,120 Speaker 1: important in today's world because it really allows you. Then 728 00:33:19,160 --> 00:33:21,360 Speaker 1: when somebody that you work for does something you don't like, 729 00:33:21,440 --> 00:33:23,600 Speaker 1: you just go, yeah, I'm not doing that, you know, 730 00:33:24,120 --> 00:33:26,560 Speaker 1: and you become it's what I call my que fund 731 00:33:26,840 --> 00:33:29,080 Speaker 1: and my lady like fashion, which is like, hey, I 732 00:33:29,080 --> 00:33:31,280 Speaker 1: have a certain amount of money, and because I have it, 733 00:33:31,400 --> 00:33:36,280 Speaker 1: I will never compromise on a few things. But the 734 00:33:36,320 --> 00:33:38,840 Speaker 1: owner's mindset is kind of rare, you know. And so 735 00:33:39,000 --> 00:33:41,480 Speaker 1: I think for young people today so often, and I 736 00:33:41,600 --> 00:33:46,160 Speaker 1: was one, it's like my boss's bed, my job sucks, 737 00:33:46,480 --> 00:33:48,960 Speaker 1: you know, I don't have upward mobility, And if I 738 00:33:48,960 --> 00:33:51,160 Speaker 1: could tell young Cody one thing differently, it would be like, 739 00:33:51,840 --> 00:33:53,720 Speaker 1: what would the opposite side of that story say, and 740 00:33:53,720 --> 00:33:55,280 Speaker 1: which one do you think would make you more money? 741 00:33:55,840 --> 00:33:58,480 Speaker 1: And I'd be like, probably the one in which you're like, hey, 742 00:33:59,080 --> 00:34:01,440 Speaker 1: this is all kind of in my and if I 743 00:34:01,520 --> 00:34:03,520 Speaker 1: make some serious changes in my life, I bet I 744 00:34:03,560 --> 00:34:06,080 Speaker 1: could be richer than I am today. And I wish 745 00:34:06,080 --> 00:34:06,960 Speaker 1: more people thought that way. 746 00:34:07,200 --> 00:34:09,960 Speaker 2: Yeah, how do you have that conversation with your boss? 747 00:34:10,200 --> 00:34:14,600 Speaker 1: I remember once I was at an event and I 748 00:34:14,680 --> 00:34:16,360 Speaker 1: was just listening in the crowd and it was actually 749 00:34:16,400 --> 00:34:19,120 Speaker 1: a finance event for women. So it's a bunch of 750 00:34:19,160 --> 00:34:22,080 Speaker 1: like kind of well off ladies and we're in the 751 00:34:22,120 --> 00:34:24,040 Speaker 1: audience and that the person in front asked everybody to 752 00:34:24,080 --> 00:34:26,120 Speaker 1: close their eyes. So we all close their eyes and 753 00:34:26,160 --> 00:34:28,319 Speaker 1: then they said, nobody is looking. I want you to 754 00:34:28,360 --> 00:34:31,879 Speaker 1: have your body have a physical representation of what you 755 00:34:31,960 --> 00:34:34,040 Speaker 1: feel when you think of money. So I was like, 756 00:34:34,080 --> 00:34:36,160 Speaker 1: this is weird, hippiece, Like what are we doing? So 757 00:34:36,360 --> 00:34:37,759 Speaker 1: I was like I don't know, you know, and you 758 00:34:37,760 --> 00:34:39,759 Speaker 1: can't see me, but like I was like throwing out 759 00:34:39,800 --> 00:34:42,319 Speaker 1: my hands, I'm like, okay, money, I like it, Like 760 00:34:42,400 --> 00:34:44,080 Speaker 1: give it to me, keep it going, you know. Those 761 00:34:44,120 --> 00:34:47,880 Speaker 1: are like my internal monologue, right, yeah, like I'll take some. 762 00:34:48,480 --> 00:34:51,000 Speaker 1: And so I'm chilling. I'm like this, like nobody's looking. 763 00:34:51,239 --> 00:34:53,720 Speaker 1: And then they're like, now, don't move, but open your eyes. 764 00:34:53,840 --> 00:34:56,120 Speaker 1: And when I looked out, I was like, whoa. Because 765 00:34:56,360 --> 00:34:58,439 Speaker 1: the rest of the audience, not the rest, but let's 766 00:34:58,440 --> 00:35:01,840 Speaker 1: call it eighty percent were like this. They're like they 767 00:35:01,880 --> 00:35:04,160 Speaker 1: were tight to the chest, they were like kind of 768 00:35:04,160 --> 00:35:07,680 Speaker 1: like maybe small arms to the side. In some instances, 769 00:35:07,719 --> 00:35:09,080 Speaker 1: I was like, it looked like they had been hit, 770 00:35:09,160 --> 00:35:12,480 Speaker 1: they had been harmed, and I thought that was so fascinating. 771 00:35:12,480 --> 00:35:14,000 Speaker 1: And then they let us shake it off, and I 772 00:35:14,040 --> 00:35:17,440 Speaker 1: was like, oh, man, if your representation of money that 773 00:35:17,480 --> 00:35:21,120 Speaker 1: you feel in your body is closed off, you know, 774 00:35:21,200 --> 00:35:23,640 Speaker 1: kind of scared whatever, I don't know, might be hard 775 00:35:23,680 --> 00:35:26,880 Speaker 1: for you to earn it. So I think for some reason, 776 00:35:27,840 --> 00:35:31,279 Speaker 1: being in finance helped me realize. You guys, if you 777 00:35:31,520 --> 00:35:33,480 Speaker 1: met some of the guys who were worth a hundred 778 00:35:33,480 --> 00:35:35,440 Speaker 1: million dollars that I did in finance, you go, I 779 00:35:35,440 --> 00:35:38,040 Speaker 1: could do that too, Like that guy did it really, 780 00:35:38,360 --> 00:35:40,080 Speaker 1: And so I think once you meet a bunch of 781 00:35:40,120 --> 00:35:44,239 Speaker 1: those people, you go, oh, like this isn't this isn't 782 00:35:44,239 --> 00:35:47,640 Speaker 1: as impossible as people say it is. And so I 783 00:35:47,719 --> 00:35:50,799 Speaker 1: learn a lot from not seeing people achieve it and 784 00:35:50,840 --> 00:35:53,920 Speaker 1: going how could they? How could they? It's instead going wow, 785 00:35:54,000 --> 00:35:55,520 Speaker 1: that guy didn't want to think if you could do it, 786 00:35:55,560 --> 00:35:57,560 Speaker 1: I could do it too, And that taught me to 787 00:35:57,640 --> 00:35:58,880 Speaker 1: keep going Okay, he did it. 788 00:35:58,920 --> 00:35:59,239 Speaker 2: He did it. 789 00:35:59,239 --> 00:36:01,560 Speaker 1: And it's like arms, arms would raise, arms would raise. 790 00:36:01,880 --> 00:36:03,839 Speaker 1: And so maybe that's what I would try to tell people. 791 00:36:03,880 --> 00:36:06,080 Speaker 1: It's like every time you see somebody that has a 792 00:36:06,080 --> 00:36:08,520 Speaker 1: lot of money and you see the humanity in them, 793 00:36:08,960 --> 00:36:11,360 Speaker 1: just remember like we're all kind of the same. Yeah, 794 00:36:11,760 --> 00:36:16,719 Speaker 1: And you can, now, don't get me wrong, intelligence levels, network, 795 00:36:16,920 --> 00:36:20,440 Speaker 1: how you're born, where you're born, real things. But if 796 00:36:20,480 --> 00:36:24,520 Speaker 1: you're living in a first world country in today's day 797 00:36:24,520 --> 00:36:26,040 Speaker 1: and age, with the Internet and what we have at 798 00:36:26,040 --> 00:36:28,600 Speaker 1: our fingertips, I think you're in a better position than 799 00:36:28,640 --> 00:36:30,080 Speaker 1: you've ever been in order to make a lot of 800 00:36:30,160 --> 00:36:33,239 Speaker 1: money today. And I promise you only one thing, which 801 00:36:33,280 --> 00:36:35,000 Speaker 1: is you'll make less money if you think you will. 802 00:36:36,280 --> 00:36:39,320 Speaker 2: Yeah. I wanted you to talk about the difference between 803 00:36:39,960 --> 00:36:42,680 Speaker 2: what you just said and how we cultivate that mindset 804 00:36:43,120 --> 00:36:45,000 Speaker 2: because you're so right I know a lot of people, 805 00:36:45,000 --> 00:36:46,480 Speaker 2: a lot of friends as well. They'll look at someone 806 00:36:46,520 --> 00:36:48,799 Speaker 2: who's doing well for themselves and they'll be like, that 807 00:36:48,880 --> 00:36:50,839 Speaker 2: guy's so dumb le I could do that. I could 808 00:36:50,840 --> 00:36:52,759 Speaker 2: do that with my clothes, but it's actually in a 809 00:36:52,840 --> 00:36:56,120 Speaker 2: condescending way to that person, rather than oh that guy 810 00:36:56,120 --> 00:36:58,560 Speaker 2: can do it, Oh great, okay, well I've got this 811 00:36:58,640 --> 00:37:00,319 Speaker 2: sko I went, I can do it, you know. And 812 00:37:00,360 --> 00:37:03,440 Speaker 2: so what is that mindset shift? Because I think we're 813 00:37:03,480 --> 00:37:06,120 Speaker 2: good at looking at other people, but often we eat 814 00:37:06,200 --> 00:37:10,680 Speaker 2: the full prey to being envious instead of studious of them, 815 00:37:10,680 --> 00:37:13,080 Speaker 2: Like instead of envy, instead of studying them, we envy them, 816 00:37:13,680 --> 00:37:16,719 Speaker 2: or we end up being condescending of them of like, oh, well, 817 00:37:16,800 --> 00:37:18,600 Speaker 2: you know, he's not even that small. Well they're not 818 00:37:18,640 --> 00:37:20,880 Speaker 2: even it's not even that great, right, we kind of 819 00:37:21,040 --> 00:37:23,600 Speaker 2: justify that. So how do you shift that? Because I 820 00:37:23,600 --> 00:37:25,200 Speaker 2: think that's at the core of what you're saying. 821 00:37:25,400 --> 00:37:27,040 Speaker 1: Yeah, and don't get me wrong, I fall pray to 822 00:37:27,080 --> 00:37:29,000 Speaker 1: all of these things too. I still to this day 823 00:37:29,320 --> 00:37:32,399 Speaker 1: play the game of comparison like they're doing that. Come on, team, 824 00:37:32,400 --> 00:37:32,960 Speaker 1: where are we going? 825 00:37:33,040 --> 00:37:33,200 Speaker 2: You know? 826 00:37:33,280 --> 00:37:35,960 Speaker 1: I do it me too, sure, And I wish I didn't, 827 00:37:35,960 --> 00:37:39,759 Speaker 1: but I still do. But I do think cash loves curiosity. 828 00:37:40,120 --> 00:37:43,279 Speaker 1: If you remember anything else, it's that money is really 829 00:37:43,320 --> 00:37:46,080 Speaker 1: attracted to the type of human that keeps asking questions. 830 00:37:46,120 --> 00:37:48,080 Speaker 1: You don't actually have to know the answers. Often to 831 00:37:48,080 --> 00:37:49,880 Speaker 1: make money, you need to ask the right questions. So 832 00:37:49,920 --> 00:37:53,400 Speaker 1: I kind of trained myself every time I saw somebody 833 00:37:53,400 --> 00:37:55,480 Speaker 1: with money, or I got to know somebody with money, 834 00:37:55,640 --> 00:37:57,880 Speaker 1: I didn't need to know anything else besides, like, can 835 00:37:57,920 --> 00:38:00,120 Speaker 1: I just ask them a lot of questions continuously? And 836 00:38:00,160 --> 00:38:01,399 Speaker 1: it was funny because I was talking to I think 837 00:38:01,400 --> 00:38:03,520 Speaker 1: another mutual friend of ours, Jesse Eisler, the other day, 838 00:38:03,760 --> 00:38:05,319 Speaker 1: and Jesse talks about how he used to go to 839 00:38:05,600 --> 00:38:09,040 Speaker 1: a hotel here and he would just ask questions in 840 00:38:09,080 --> 00:38:11,680 Speaker 1: the lobby or at the lunch table. He was like 841 00:38:11,800 --> 00:38:13,960 Speaker 1: living not in a nice place, he had no cash whatsoever, 842 00:38:14,080 --> 00:38:15,839 Speaker 1: but when he saw people that he thought looked rich 843 00:38:15,960 --> 00:38:19,160 Speaker 1: or interesting, he would just ask them questions. And I 844 00:38:19,200 --> 00:38:23,560 Speaker 1: think with the Internet, sometimes we think that questions don't 845 00:38:23,560 --> 00:38:26,760 Speaker 1: matter anymore, and we go to the internet to get answers, 846 00:38:26,920 --> 00:38:28,960 Speaker 1: and if instead you can make a human connection and 847 00:38:29,040 --> 00:38:31,640 Speaker 1: get curious about them, they'll give things to you. And 848 00:38:31,719 --> 00:38:33,759 Speaker 1: so one of my I played a game when I 849 00:38:33,800 --> 00:38:36,160 Speaker 1: was really young, which is I kind of started collecting 850 00:38:36,239 --> 00:38:39,520 Speaker 1: mentors who never knew they were my mentor. And I 851 00:38:39,520 --> 00:38:42,200 Speaker 1: think this is a really clever thing to do. And 852 00:38:42,640 --> 00:38:46,520 Speaker 1: I remember one in particular, Bob Kendall, and BKA is 853 00:38:46,560 --> 00:38:48,200 Speaker 1: what we call him. He was super high up at 854 00:38:48,840 --> 00:38:50,080 Speaker 1: I don't know if it was gold Men or Credits 855 00:38:50,080 --> 00:38:52,200 Speaker 1: Suite at the time, one of the companies, and he 856 00:38:52,280 --> 00:38:54,319 Speaker 1: was so like out of my range, like you know 857 00:38:54,360 --> 00:38:55,920 Speaker 1: when somebody else is in a company, and I was 858 00:38:55,960 --> 00:38:58,440 Speaker 1: basically the intern and he was the big dog. But 859 00:38:58,480 --> 00:39:00,319 Speaker 1: I got a couple of chances to interact with him, 860 00:39:00,320 --> 00:39:02,840 Speaker 1: and I would just ask him questions, like very simple 861 00:39:02,880 --> 00:39:05,719 Speaker 1: ones like oh, you just took over this area of 862 00:39:05,760 --> 00:39:08,160 Speaker 1: the business, like why what did you see there as 863 00:39:08,160 --> 00:39:09,799 Speaker 1: opposed to this other area where a lot of people 864 00:39:09,800 --> 00:39:11,719 Speaker 1: are going. I would just kind of beque curious. And 865 00:39:11,760 --> 00:39:13,720 Speaker 1: then I would do a thing that I think probably 866 00:39:13,719 --> 00:39:16,279 Speaker 1: helped me make more mentors than anything else, which is 867 00:39:17,200 --> 00:39:20,200 Speaker 1: I would get their contact information. I would never ask 868 00:39:20,280 --> 00:39:23,560 Speaker 1: them for anything. I would largely just say, Hey, that 869 00:39:23,600 --> 00:39:25,319 Speaker 1: piece of advice that you gave me the other day 870 00:39:25,400 --> 00:39:27,239 Speaker 1: that was really useful and I applied it this way, 871 00:39:27,280 --> 00:39:29,600 Speaker 1: thank you for doing that. Or i'd see if his 872 00:39:29,719 --> 00:39:32,479 Speaker 1: name was written somewhere he had done a research paper 873 00:39:32,560 --> 00:39:33,880 Speaker 1: or something. I might send it to him, like with 874 00:39:33,920 --> 00:39:36,600 Speaker 1: a couple highlighted things like these lines were incredible, Thank 875 00:39:36,600 --> 00:39:38,520 Speaker 1: you for doing that. Then after I had done that 876 00:39:38,560 --> 00:39:41,919 Speaker 1: a few times, I might give them one question like, hey, 877 00:39:42,640 --> 00:39:47,280 Speaker 1: you know, I'm thinking about going into marketing or sales, 878 00:39:47,400 --> 00:39:49,680 Speaker 1: and I'm trying to figure out how do you decide 879 00:39:49,800 --> 00:39:52,600 Speaker 1: which career path is more interesting to you? Do you 880 00:39:52,600 --> 00:39:54,880 Speaker 1: have just like a one sentence about it, or do 881 00:39:54,920 --> 00:39:56,640 Speaker 1: you have one book that you'd like to read, like 882 00:39:56,680 --> 00:39:59,560 Speaker 1: really short? And I remember I sat down with BK 883 00:39:59,680 --> 00:40:01,359 Speaker 1: years and he was like, you know the funny thing 884 00:40:01,360 --> 00:40:03,600 Speaker 1: about you? And I was like, oh, what you know? 885 00:40:03,920 --> 00:40:07,319 Speaker 1: And he was like, you like somehow made me your 886 00:40:07,360 --> 00:40:09,880 Speaker 1: mentor but you never asked. And then I started caring 887 00:40:10,040 --> 00:40:12,080 Speaker 1: about what happened to your career but I kind of 888 00:40:12,080 --> 00:40:14,800 Speaker 1: never meant to, which is like a very aspergerzy finance 889 00:40:14,880 --> 00:40:17,040 Speaker 1: thing to do. And he's like, did you do that 890 00:40:17,080 --> 00:40:18,680 Speaker 1: on purpose? And I was like, I get, you know, 891 00:40:18,719 --> 00:40:20,279 Speaker 1: I don't know. I was young then, so I don't know, 892 00:40:20,400 --> 00:40:26,320 Speaker 1: but maybe that tiny transfer of Hey, I have advice 893 00:40:26,400 --> 00:40:30,360 Speaker 1: and somebody actually takes it, uses it, continuously wants nothing 894 00:40:30,480 --> 00:40:32,840 Speaker 1: from me for it, and then gives me a positive 895 00:40:32,880 --> 00:40:35,839 Speaker 1: feedback loop that I'm making change on their life is 896 00:40:35,960 --> 00:40:38,440 Speaker 1: so rare, so right. 897 00:40:38,360 --> 00:40:41,400 Speaker 2: That's genius. That's actually the best mentorship advice I think 898 00:40:41,440 --> 00:40:44,399 Speaker 2: I've ever heard, because I think so many of us 899 00:40:44,840 --> 00:40:46,640 Speaker 2: when we want someone to be a mentor, the fast 900 00:40:46,680 --> 00:40:48,000 Speaker 2: mistake is we asked them to be honest. 901 00:40:48,000 --> 00:40:49,600 Speaker 1: I don't do that. That also makes me die on 902 00:40:49,640 --> 00:40:51,120 Speaker 1: the inside. If somebody asked me that, I'm like, that's 903 00:40:51,120 --> 00:40:52,160 Speaker 1: such a huge responsibility. 904 00:40:52,200 --> 00:40:54,040 Speaker 2: What if I you up exactly? What if I don't 905 00:40:54,040 --> 00:40:56,680 Speaker 2: have time? If I can't respond, like that's that's the 906 00:40:56,760 --> 00:40:59,920 Speaker 2: natural reaction. And same with me. I've always had ment 907 00:41:00,160 --> 00:41:01,919 Speaker 2: was that don't know their my mentors. It's the only way. 908 00:41:02,080 --> 00:41:04,239 Speaker 2: But what I love about your advice, which I've never 909 00:41:04,280 --> 00:41:06,920 Speaker 2: ever heard before, is also how you ask for advice. 910 00:41:06,960 --> 00:41:09,040 Speaker 2: I think this is second mistake. So the first mistake 911 00:41:09,080 --> 00:41:10,200 Speaker 2: we say is can you be my mentor? 912 00:41:10,280 --> 00:41:10,520 Speaker 1: Yeah? 913 00:41:10,560 --> 00:41:12,759 Speaker 2: The second mistake we make is we send a whole 914 00:41:12,800 --> 00:41:18,279 Speaker 2: life story with one like really big profound question. So 915 00:41:18,320 --> 00:41:20,359 Speaker 2: it's like I went from this then I did this, 916 00:41:20,480 --> 00:41:22,200 Speaker 2: then I dropped out, then I did this, then I 917 00:41:22,239 --> 00:41:25,319 Speaker 2: did this. How do I discover my purpose? And it's 918 00:41:25,440 --> 00:41:27,439 Speaker 2: like and it's like the person on the other side 919 00:41:27,480 --> 00:41:31,760 Speaker 2: has no idea how to compute all of that algorithmically 920 00:41:32,320 --> 00:41:34,319 Speaker 2: and give you a really profound answer back that they 921 00:41:34,400 --> 00:41:37,400 Speaker 2: genuinely be will help you, which means they probably won't respond, 922 00:41:37,640 --> 00:41:39,800 Speaker 2: or if they don't respond, it will be extremely short, 923 00:41:40,320 --> 00:41:43,719 Speaker 2: and then you feel disgruntled and upset that they didn't 924 00:41:43,840 --> 00:41:47,000 Speaker 2: value your whole life story, and then now you probably 925 00:41:47,040 --> 00:41:50,040 Speaker 2: lose touch. Whereas your advice was just so perfect because 926 00:41:50,040 --> 00:41:52,239 Speaker 2: the idea that you were sending them their own work 927 00:41:52,280 --> 00:41:55,640 Speaker 2: with a couple of highlights, one sentence question, one piece 928 00:41:55,640 --> 00:41:58,200 Speaker 2: of insight, and then that person, like you said, becomes 929 00:41:58,280 --> 00:42:01,880 Speaker 2: invested in your life. Such great advice, Cody, I've really, 930 00:42:02,360 --> 00:42:04,799 Speaker 2: really mean that. I've never had mentorship advice better than that. 931 00:42:05,000 --> 00:42:07,239 Speaker 1: Yeah, I think it worked for me. And I also 932 00:42:07,239 --> 00:42:08,880 Speaker 1: think the other piece of advice that was useful. I 933 00:42:08,920 --> 00:42:11,480 Speaker 1: never went for like the top dog. Yeah, you know, 934 00:42:11,480 --> 00:42:13,319 Speaker 1: I would never go to the president of Goldman Lloyd 935 00:42:13,320 --> 00:42:15,240 Speaker 1: blank Figon back in the day and be like LLRD, 936 00:42:15,280 --> 00:42:17,400 Speaker 1: the thing is, talk to me, can I have your email, 937 00:42:17,600 --> 00:42:20,319 Speaker 1: of course, not I would go to like one or 938 00:42:20,320 --> 00:42:23,560 Speaker 1: two levels past what was comfortable for me. Right, So 939 00:42:23,600 --> 00:42:25,320 Speaker 1: it was like I could still get to the person, 940 00:42:25,719 --> 00:42:28,440 Speaker 1: and then you can use it as like a leap frog. 941 00:42:28,680 --> 00:42:31,760 Speaker 1: And the last thing I'll say is I totally disagree 942 00:42:31,760 --> 00:42:33,640 Speaker 1: with the advice today that a lot of like kind 943 00:42:33,640 --> 00:42:38,279 Speaker 1: of well known people give, which is, once you outgrow people, 944 00:42:38,360 --> 00:42:39,880 Speaker 1: leave them behind you, you know, and a lot of 945 00:42:39,880 --> 00:42:41,799 Speaker 1: people say like, well they were my mentor, but I've 946 00:42:41,840 --> 00:42:44,960 Speaker 1: superseded on my mentors. Oh no, yeah, And I hear 947 00:42:45,000 --> 00:42:47,640 Speaker 1: that often from like the business community. You know. It's 948 00:42:47,680 --> 00:42:49,360 Speaker 1: like you're the average of the five people you surround 949 00:42:49,400 --> 00:42:51,120 Speaker 1: yourself with, so make sure there are awesome and it's 950 00:42:51,160 --> 00:42:53,200 Speaker 1: like yeah, but also don't forget how you got there 951 00:42:53,560 --> 00:42:56,680 Speaker 1: because you never know. Mentorship has like multi layers to it. 952 00:42:56,880 --> 00:42:59,400 Speaker 1: You can get mentored from above but also below, I 953 00:42:59,400 --> 00:43:01,600 Speaker 1: mean your team teaching us beforehand. How do not sound 954 00:43:01,600 --> 00:43:04,600 Speaker 1: like boomers? Right? So, like there's that, you know, you 955 00:43:04,600 --> 00:43:08,240 Speaker 1: can also have somebody that's a higher that like, for instance, 956 00:43:08,239 --> 00:43:12,600 Speaker 1: I think a lot about the idea that like Peter Teal, 957 00:43:12,640 --> 00:43:15,080 Speaker 1: whether you like him or not, really rich guy gives 958 00:43:15,160 --> 00:43:17,600 Speaker 1: money to Mark Zuckerberg, right, whether you like him or not, 959 00:43:17,920 --> 00:43:20,959 Speaker 1: Mark Zuckerberg then goes to become richer than Peter Teel. 960 00:43:21,920 --> 00:43:25,040 Speaker 1: Now is Peter mad because Mark made more money than him? 961 00:43:25,200 --> 00:43:27,600 Speaker 1: I highly doubt it, because Mark made Peter a ton 962 00:43:27,600 --> 00:43:30,239 Speaker 1: of money. And at one point, you know, the imbalance 963 00:43:30,280 --> 00:43:32,000 Speaker 1: was Peter was way up here and Mark was down here, 964 00:43:32,040 --> 00:43:35,319 Speaker 1: and now it's probably flipped. And how cool is that that? 965 00:43:35,440 --> 00:43:39,239 Speaker 1: Like somebody who used to be sort of below you, 966 00:43:39,239 --> 00:43:42,000 Speaker 1: you've helped in some way get above you, and then 967 00:43:42,000 --> 00:43:44,080 Speaker 1: you get to like value transitfer the other way. So 968 00:43:44,120 --> 00:43:46,399 Speaker 1: I will say, like, maybe if I gave one other 969 00:43:46,440 --> 00:43:50,440 Speaker 1: piece of advice on mentorship, it would be collect and 970 00:43:50,520 --> 00:43:53,920 Speaker 1: keep with you the people even after you've superseded them, 971 00:43:54,760 --> 00:43:57,560 Speaker 1: you know, yeah, and try to be their best mentortely 972 00:43:57,600 --> 00:44:00,719 Speaker 1: like I mean mentee, I always try to like them. 973 00:44:01,000 --> 00:44:03,000 Speaker 1: I want them to be able to brag about me. Yeah, Like, 974 00:44:03,040 --> 00:44:05,239 Speaker 1: no matter what you teach me, I want to be 975 00:44:05,360 --> 00:44:08,120 Speaker 1: the best mentee to the point that they're like, hey, 976 00:44:08,239 --> 00:44:10,560 Speaker 1: look how smart I am because of that, And I 977 00:44:10,560 --> 00:44:11,960 Speaker 1: want to give them all the credit on it. 978 00:44:12,160 --> 00:44:13,000 Speaker 2: Yeah. 979 00:44:13,040 --> 00:44:15,080 Speaker 1: And when you do that, then they introduce you to 980 00:44:15,080 --> 00:44:17,239 Speaker 1: their really successful friends too, So it's a two for. 981 00:44:17,520 --> 00:44:19,160 Speaker 2: Yeah, definitely. And I want to add what you were 982 00:44:19,160 --> 00:44:21,759 Speaker 2: saying earlier as well, this idea of you have to 983 00:44:21,800 --> 00:44:24,279 Speaker 2: act on the advice. And I think there's a lot 984 00:44:24,320 --> 00:44:27,840 Speaker 2: of requesting of advice, there's a lot of looking for answers, 985 00:44:28,480 --> 00:44:31,720 Speaker 2: but being a great mentee is taking the advice, putting 986 00:44:31,719 --> 00:44:35,600 Speaker 2: it into action, and then reporting the result and saying, hey, 987 00:44:35,680 --> 00:44:37,400 Speaker 2: I took your advice. This is as you were saying, 988 00:44:37,680 --> 00:44:40,480 Speaker 2: And I think that's so core to what was different 989 00:44:40,480 --> 00:44:43,560 Speaker 2: about mentorship, where like you're saying, now, in this TikTok 990 00:44:43,600 --> 00:44:46,239 Speaker 2: Instagram world, I think there's just so much advice everywhere 991 00:44:46,880 --> 00:44:49,839 Speaker 2: that we're not really getting the opportunity to digest it, 992 00:44:50,160 --> 00:44:53,120 Speaker 2: put it into practice, and then report on it as well. 993 00:44:53,200 --> 00:44:56,120 Speaker 2: And I love your idea of gratitude. I mean, I 994 00:44:56,160 --> 00:44:59,479 Speaker 2: remember when I joined the company as an intern years ago, 995 00:45:00,040 --> 00:45:02,120 Speaker 2: and I was only there for like a summer internship, 996 00:45:02,719 --> 00:45:04,920 Speaker 2: but they put up the pictures of the founders of 997 00:45:04,960 --> 00:45:07,239 Speaker 2: the company and then they were like, yeah, but we 998 00:45:07,280 --> 00:45:08,960 Speaker 2: don't care about them, the old guys anyway, And I 999 00:45:09,000 --> 00:45:12,200 Speaker 2: remember realized, like I was just like, wow, that's really 1000 00:45:12,719 --> 00:45:15,719 Speaker 2: ungrateful because none of us would be here right now 1001 00:45:15,719 --> 00:45:18,560 Speaker 2: if it wasn't for them. And yes, they're not alive anymore, 1002 00:45:18,560 --> 00:45:21,120 Speaker 2: and yes that was a long time ago, but I 1003 00:45:21,160 --> 00:45:23,319 Speaker 2: fully agree with you that. And also, you just don't 1004 00:45:23,320 --> 00:45:24,640 Speaker 2: know when you're on the way up when you're on 1005 00:45:24,680 --> 00:45:27,799 Speaker 2: the way down. Your mentors, generally, if they're older than 1006 00:45:27,800 --> 00:45:30,320 Speaker 2: you in the beginning, even if you become more successful 1007 00:45:30,360 --> 00:45:32,960 Speaker 2: than them materially, I believe they have so much more 1008 00:45:33,000 --> 00:45:35,640 Speaker 2: spiritual wisdom to give you over time. Like I've got 1009 00:45:35,680 --> 00:45:38,920 Speaker 2: mentors same way who helped me out when I was 1010 00:45:38,920 --> 00:45:42,880 Speaker 2: in my late twenties, and today there's so much more 1011 00:45:42,880 --> 00:45:44,520 Speaker 2: helpful when they talk to me about what it feels 1012 00:45:44,520 --> 00:45:46,520 Speaker 2: like being a dad, Like I'm not a dad right now, 1013 00:45:46,560 --> 00:45:48,239 Speaker 2: but he's been a dad and his kids are in 1014 00:45:48,320 --> 00:45:51,160 Speaker 2: their mid twenties and he has a great relationship with them. 1015 00:45:51,160 --> 00:45:53,680 Speaker 2: I'm like, I'm not there at that level. So mentorship 1016 00:45:53,719 --> 00:45:59,400 Speaker 2: also takes across not just financial, but relationships, you know, emotionally, mentally, 1017 00:45:59,440 --> 00:46:02,560 Speaker 2: there's so many other areas. Oh yeah, so leaving someone 1018 00:46:02,560 --> 00:46:04,520 Speaker 2: behind his terrible advice. 1019 00:46:04,280 --> 00:46:05,960 Speaker 1: Yeah, I agree, And you know it's one thing if 1020 00:46:06,000 --> 00:46:11,520 Speaker 1: somebody's negative or they're unhelpful, which I still believe very much. 1021 00:46:11,560 --> 00:46:14,680 Speaker 1: So like Arthur Brooks, who I just think so highly of. 1022 00:46:14,719 --> 00:46:16,560 Speaker 1: And I remember back before I knew him as a 1023 00:46:16,600 --> 00:46:18,759 Speaker 1: friend and I was just a fan. Last time I 1024 00:46:18,800 --> 00:46:21,480 Speaker 1: was in New York with him, he I was having like, 1025 00:46:21,719 --> 00:46:23,600 Speaker 1: you know, what somebody's mean to you online? Does that 1026 00:46:23,600 --> 00:46:26,520 Speaker 1: ever happened to you? Probably sometimes, of course. Well there 1027 00:46:26,520 --> 00:46:28,360 Speaker 1: was one person that was like really mean and I 1028 00:46:28,360 --> 00:46:30,480 Speaker 1: don't know why it got to me. Somehow it bothered me. 1029 00:46:31,080 --> 00:46:33,279 Speaker 1: And you know, this was a while ago, and I 1030 00:46:33,320 --> 00:46:36,000 Speaker 1: remember telling him for some reason. And often it only 1031 00:46:36,000 --> 00:46:37,560 Speaker 1: bothers me if I feel like there's a kernel of 1032 00:46:37,600 --> 00:46:39,759 Speaker 1: truth to it. So if they like really nail my 1033 00:46:39,800 --> 00:46:43,560 Speaker 1: imposter syndrome, or they really nail like, you know, is 1034 00:46:43,600 --> 00:46:45,319 Speaker 1: she as smart as she thinks? She like something that 1035 00:46:45,320 --> 00:46:47,480 Speaker 1: I'm like that I worry about too. If they get that, 1036 00:46:47,520 --> 00:46:49,600 Speaker 1: I'm like, dang it, I'm paying attention now. That's not good. 1037 00:46:49,960 --> 00:46:51,920 Speaker 1: But I remember I said to him, like, you know, 1038 00:46:52,480 --> 00:46:54,279 Speaker 1: I'm just bothered and I want to do something about it. 1039 00:46:54,320 --> 00:46:55,719 Speaker 1: And he was like, are you going to listen to me? 1040 00:46:55,760 --> 00:46:57,319 Speaker 1: And I was like, maybe, what what are you going 1041 00:46:57,400 --> 00:46:59,239 Speaker 1: to tell me to do? And he's like, I want 1042 00:46:59,280 --> 00:47:03,880 Speaker 1: you too, picture this guy having all the success in 1043 00:47:03,920 --> 00:47:06,360 Speaker 1: the world. I want you to wish him so much. Well, 1044 00:47:06,440 --> 00:47:08,880 Speaker 1: it becomes like a bit bizarre, and I want you 1045 00:47:08,920 --> 00:47:11,280 Speaker 1: to actually feel it. And again I'm not that touchy feeling. 1046 00:47:11,280 --> 00:47:15,080 Speaker 1: I'm pretty spreadsheety. So when he told me that, I'm like, fine, 1047 00:47:15,600 --> 00:47:17,080 Speaker 1: but like, I don't think there's going to be an 1048 00:47:17,120 --> 00:47:21,319 Speaker 1: outcome here like that. And he's a wonky, very smart guy, 1049 00:47:21,400 --> 00:47:25,040 Speaker 1: so it's not anyway. So I did it, and I 1050 00:47:25,200 --> 00:47:27,160 Speaker 1: like really thought about it. I was like walking in 1051 00:47:27,160 --> 00:47:28,319 Speaker 1: New York, and I was like, you know what, I 1052 00:47:28,360 --> 00:47:30,000 Speaker 1: do wish this guy well, because I bet it is 1053 00:47:30,080 --> 00:47:32,640 Speaker 1: sad if you are, like, if you're in a place 1054 00:47:32,640 --> 00:47:34,759 Speaker 1: where all you're doing is hating on somebody online all 1055 00:47:34,760 --> 00:47:36,000 Speaker 1: the time, I bet you are kind of sad. So 1056 00:47:36,040 --> 00:47:38,760 Speaker 1: I started like empathizing with him and thinking about it. Anyway. 1057 00:47:38,920 --> 00:47:41,840 Speaker 1: Not two weeks later, the guy does a public apology 1058 00:47:42,239 --> 00:47:45,719 Speaker 1: for like and does this long dm to me. You know, 1059 00:47:45,760 --> 00:47:47,560 Speaker 1: my husband has like a long memory, so it's like, not, 1060 00:47:47,840 --> 00:47:49,880 Speaker 1: you know, let's get that guy. But I was like, 1061 00:47:49,920 --> 00:47:52,120 Speaker 1: I just learned such a lesson and maybe it doesn't 1062 00:47:52,120 --> 00:47:53,880 Speaker 1: always work like that, and maybe there's still me in you. 1063 00:47:53,960 --> 00:47:57,680 Speaker 1: Later but I really think sometimes you learn just as 1064 00:47:57,719 --> 00:48:00,640 Speaker 1: much from your haters as you do from your mentors, 1065 00:48:00,719 --> 00:48:04,000 Speaker 1: and so don't underestimate not only the same where we 1066 00:48:04,080 --> 00:48:06,360 Speaker 1: kind of get all hot and bothered, like, you know, 1067 00:48:06,400 --> 00:48:08,920 Speaker 1: if you don't got hate, you're not doing anything maybe, 1068 00:48:09,160 --> 00:48:12,640 Speaker 1: but also, wow, you can learn a lot from the 1069 00:48:12,680 --> 00:48:16,480 Speaker 1: type of feelings you get when people doubt you. And 1070 00:48:16,560 --> 00:48:18,640 Speaker 1: I think that's just as important. And I wouldn't be 1071 00:48:18,719 --> 00:48:21,280 Speaker 1: where I was today if I didn't have some big 1072 00:48:21,360 --> 00:48:23,400 Speaker 1: haters that I felt like I needed to prove wrong. 1073 00:48:23,640 --> 00:48:26,000 Speaker 2: Yeah, well said, I want to dive into the heart 1074 00:48:26,000 --> 00:48:28,319 Speaker 2: of this book because what made it so unique for 1075 00:48:28,360 --> 00:48:31,600 Speaker 2: me is I don't think I've ever heard anyone really 1076 00:48:31,640 --> 00:48:36,719 Speaker 2: talk about buying ordinary businesses. And that's the crux of 1077 00:48:36,760 --> 00:48:39,000 Speaker 2: so much of your work and why it's different and 1078 00:48:39,080 --> 00:48:41,600 Speaker 2: how you're getting people to think differently about ownership. You 1079 00:48:41,600 --> 00:48:43,960 Speaker 2: had this video that I remember watching that got like 1080 00:48:43,960 --> 00:48:48,200 Speaker 2: eleven million views talking about this vending machine business, like, 1081 00:48:48,320 --> 00:48:50,839 Speaker 2: what are some of the most unusual businesses you've seen 1082 00:48:50,880 --> 00:48:52,839 Speaker 2: people make money from? Because I think it goes back 1083 00:48:52,840 --> 00:48:56,520 Speaker 2: to what we were speaking about earlier. We're all after this sexy, 1084 00:48:56,880 --> 00:49:00,480 Speaker 2: shiny money and most people are making loads of money 1085 00:49:00,520 --> 00:49:04,000 Speaker 2: through really un sexy random things, vending machines being a 1086 00:49:04,040 --> 00:49:07,320 Speaker 2: case in point. Walk us through some of us unusual businesses. 1087 00:49:07,360 --> 00:49:08,880 Speaker 2: You've discovered people making money. 1088 00:49:08,719 --> 00:49:11,719 Speaker 1: Yes, let's do it. And also realized first like most 1089 00:49:11,760 --> 00:49:13,720 Speaker 1: of the people who are really shiny on the internet 1090 00:49:14,280 --> 00:49:16,200 Speaker 1: don't actually make much money. In fact, a lot of 1091 00:49:16,200 --> 00:49:18,480 Speaker 1: celebrities make no money. And you know this all too 1092 00:49:18,520 --> 00:49:20,560 Speaker 1: well being here. There's a lot of show and it's 1093 00:49:20,600 --> 00:49:23,080 Speaker 1: actually quite hard to make money in the shiny things. 1094 00:49:23,320 --> 00:49:25,960 Speaker 1: The richest guy you know probably started a landscaping or 1095 00:49:25,960 --> 00:49:27,920 Speaker 1: sprinkler head company. In fact, that was the case for 1096 00:49:28,000 --> 00:49:30,279 Speaker 1: my family when I was growing up. I meant I 1097 00:49:30,400 --> 00:49:34,960 Speaker 1: interned for a woman who is my brother's friend's mom, 1098 00:49:35,480 --> 00:49:38,000 Speaker 1: and they were worth what I thought was a bajillion 1099 00:49:38,080 --> 00:49:41,520 Speaker 1: dollars back then, and it was from an equipment rental company, 1100 00:49:41,760 --> 00:49:45,040 Speaker 1: so this guy was worth somewhere near fifty million dollars. 1101 00:49:45,080 --> 00:49:49,840 Speaker 1: From one idea, I buy some landscaping equipment, some tractors, 1102 00:49:49,880 --> 00:49:53,120 Speaker 1: et cetera, and I don't sell them, I don't flip them. 1103 00:49:53,400 --> 00:49:56,080 Speaker 1: But I realized that construction companies only want to use 1104 00:49:56,120 --> 00:49:59,200 Speaker 1: them part time, so I actually rent them out and 1105 00:49:59,280 --> 00:50:02,200 Speaker 1: so this guy would make the cost of a piece 1106 00:50:02,239 --> 00:50:06,400 Speaker 1: of equipment back inside of ninety days, and so instead 1107 00:50:06,440 --> 00:50:09,200 Speaker 1: of getting whatever difference is between him buying the equipment 1108 00:50:09,200 --> 00:50:10,960 Speaker 1: and selling it for a little bit more, he would 1109 00:50:10,960 --> 00:50:15,080 Speaker 1: make the entire purchase price over every ninety day cycle. 1110 00:50:15,400 --> 00:50:17,279 Speaker 1: And I remember, like thinking back the day when I 1111 00:50:17,280 --> 00:50:20,320 Speaker 1: saw that you can make money doing anything, and in fact, 1112 00:50:20,400 --> 00:50:22,160 Speaker 1: you probably make it more often in the things that 1113 00:50:22,239 --> 00:50:25,319 Speaker 1: nobody thinks about because you have less competition, because it 1114 00:50:25,360 --> 00:50:28,360 Speaker 1: also sounds really boring, and you know, the Mark zucker 1115 00:50:28,400 --> 00:50:30,919 Speaker 1: brote Bergs and brilliant minds of the world, they don't 1116 00:50:30,920 --> 00:50:33,600 Speaker 1: want to mess around with equipment rental. But people like 1117 00:50:33,680 --> 00:50:35,560 Speaker 1: me who are maybe like kind of smart but not 1118 00:50:35,719 --> 00:50:38,000 Speaker 1: that smart, could make a lot of money doing it. 1119 00:50:38,080 --> 00:50:40,120 Speaker 1: And so there are three types of businesses that I 1120 00:50:40,160 --> 00:50:45,000 Speaker 1: obsess about. I call them overarchingly mainStreet businesses. So the ideas, basically, 1121 00:50:45,239 --> 00:50:47,600 Speaker 1: what if all the money is actually made in community 1122 00:50:47,600 --> 00:50:51,040 Speaker 1: businesses that we use every single day. Your roofing company, 1123 00:50:51,239 --> 00:50:54,799 Speaker 1: your podcast production company, you send outsourced editing clips too. 1124 00:50:55,239 --> 00:50:59,520 Speaker 1: You know the cobbler that actually cleans up shoes on 1125 00:50:59,560 --> 00:51:02,359 Speaker 1: the corner store. All of these businesses. When you see 1126 00:51:02,400 --> 00:51:04,279 Speaker 1: that they've been in business for thirty years. It's not 1127 00:51:04,280 --> 00:51:06,960 Speaker 1: because they were making money or because they were losing money. 1128 00:51:07,080 --> 00:51:09,480 Speaker 1: And it's not because they got venture capital, because they didn't. 1129 00:51:09,719 --> 00:51:12,879 Speaker 1: So these things actually are profitable, which is kind of rare, 1130 00:51:13,280 --> 00:51:15,919 Speaker 1: so main street businesses. And then underneath it, I call 1131 00:51:15,960 --> 00:51:18,520 Speaker 1: them three different types. The first one is the gateway 1132 00:51:18,560 --> 00:51:20,960 Speaker 1: drug business, which basically I use that as a little 1133 00:51:20,960 --> 00:51:24,000 Speaker 1: bit of a joke, but it's like a vending machine. Well, 1134 00:51:24,000 --> 00:51:26,399 Speaker 1: everybody understands how a venue machine works, right, You get 1135 00:51:26,400 --> 00:51:28,840 Speaker 1: the machine, you take the cash out, you input the things. 1136 00:51:29,200 --> 00:51:31,960 Speaker 1: It's a straightforward business. It doesn't need a lot of people, 1137 00:51:32,000 --> 00:51:33,759 Speaker 1: and I think it's a great place for like young 1138 00:51:33,800 --> 00:51:36,040 Speaker 1: people to start because you learn the game of business. 1139 00:51:36,440 --> 00:51:38,960 Speaker 1: A similar one might be what I call a people 1140 00:51:39,080 --> 00:51:42,040 Speaker 1: light business, which might be like a laundromat. So a 1141 00:51:42,120 --> 00:51:45,319 Speaker 1: laundromat is like, in some ways a slightly bigger venue machine. Right, 1142 00:51:45,320 --> 00:51:47,719 Speaker 1: you put clothes in, the clothes get washed, you take 1143 00:51:47,760 --> 00:51:50,319 Speaker 1: the clothes out, you put coins in and return, right. 1144 00:51:50,719 --> 00:51:52,799 Speaker 1: And that doesn't have a lot of employees, and they're 1145 00:51:52,840 --> 00:51:55,480 Speaker 1: not super super expensive on the scale of it, and 1146 00:51:55,520 --> 00:51:58,480 Speaker 1: so you go, okay, we got gateway drug businesses. We 1147 00:51:58,560 --> 00:52:01,960 Speaker 1: got asked, we've got people light businesses, and then finally 1148 00:52:02,000 --> 00:52:04,800 Speaker 1: we get into what I call the trades businesses overall 1149 00:52:04,920 --> 00:52:08,080 Speaker 1: or boring businesses. And these are things like we own 1150 00:52:08,120 --> 00:52:11,320 Speaker 1: a company called Resi Brands that has a window cleaning 1151 00:52:11,360 --> 00:52:15,560 Speaker 1: company called Pinks, a roofing company, a painting company called 1152 00:52:15,560 --> 00:52:19,440 Speaker 1: that One Painter. And what's wild is with these businesses. 1153 00:52:19,880 --> 00:52:21,640 Speaker 1: If you were to look right now jay At, like 1154 00:52:22,480 --> 00:52:25,160 Speaker 1: the Forbes one hundred list of the richest people in 1155 00:52:25,200 --> 00:52:27,640 Speaker 1: the world, and you were to see what they made 1156 00:52:27,640 --> 00:52:31,800 Speaker 1: their money from. They're not celebrities, they're not singing songs, 1157 00:52:32,280 --> 00:52:35,400 Speaker 1: they're not doing YouTube like, we're not even touching the 1158 00:52:35,400 --> 00:52:37,839 Speaker 1: amount of wealth they have. What do most of them 1159 00:52:37,840 --> 00:52:42,520 Speaker 1: have in common more than anything else, finance and business ownership, 1160 00:52:42,760 --> 00:52:46,600 Speaker 1: and the businesses they own are largely boring businesses. Richest 1161 00:52:46,600 --> 00:52:51,400 Speaker 1: woman in the World Kim Kardashian no roofing magnet, literally 1162 00:52:51,560 --> 00:52:53,200 Speaker 1: the richest woman in the world. This was as of 1163 00:52:53,200 --> 00:52:55,080 Speaker 1: twenty twenty two, so we should see if the numbers 1164 00:52:55,080 --> 00:52:58,319 Speaker 1: are updated. But is a woman who started a very 1165 00:52:58,400 --> 00:53:02,720 Speaker 1: large roofing company. And so, you know, I wish somebody 1166 00:53:02,760 --> 00:53:05,680 Speaker 1: told us this when we were younger because instead, you 1167 00:53:05,719 --> 00:53:08,960 Speaker 1: know who knows this, the private equity guys. And I 1168 00:53:09,000 --> 00:53:12,120 Speaker 1: don't mean to villainize anybody I was in private equity. 1169 00:53:12,120 --> 00:53:14,960 Speaker 1: I know plenty of good people in that industry, but again, 1170 00:53:15,120 --> 00:53:18,719 Speaker 1: centralization of power. Private equity companies in two thousand owned 1171 00:53:18,800 --> 00:53:21,080 Speaker 1: four percent of the companies in the US. Now they 1172 00:53:21,120 --> 00:53:24,279 Speaker 1: own twenty percent. It's almost one out of every four 1173 00:53:24,320 --> 00:53:27,120 Speaker 1: companies in the US is owned by private equity. You 1174 00:53:27,120 --> 00:53:30,880 Speaker 1: know what they're buying, like crazy, the trades, the service businesses, 1175 00:53:30,960 --> 00:53:33,920 Speaker 1: the boring businesses, the print money that service our community. 1176 00:53:34,280 --> 00:53:36,319 Speaker 1: And I think this is our chance to take those 1177 00:53:36,360 --> 00:53:36,920 Speaker 1: things back. 1178 00:53:37,400 --> 00:53:40,840 Speaker 2: You're literally opening up a whole new doorway for people, 1179 00:53:41,160 --> 00:53:43,680 Speaker 2: like I don't think I've ever even thought about it, 1180 00:53:43,719 --> 00:53:46,920 Speaker 2: Like it's so far off from what I think we 1181 00:53:46,920 --> 00:53:52,400 Speaker 2: were all trained to believe would make a successful, safe, stable, wealthy. 1182 00:53:52,960 --> 00:53:56,680 Speaker 2: You're not thinking about these areas, and therefore, like you said, 1183 00:53:56,719 --> 00:54:00,440 Speaker 2: they're not very competitive. There's not a lot of new 1184 00:54:00,560 --> 00:54:03,680 Speaker 2: entrants in there. When I hear you say that, the 1185 00:54:03,760 --> 00:54:07,960 Speaker 2: thing that comes to my mind is what skills and 1186 00:54:08,000 --> 00:54:10,719 Speaker 2: talents to people need to be able to run those businesses. 1187 00:54:10,760 --> 00:54:14,320 Speaker 2: How much industry knowledge do they need? What business skills 1188 00:54:14,320 --> 00:54:17,440 Speaker 2: are core and important, because I think the mistake is 1189 00:54:17,440 --> 00:54:19,200 Speaker 2: again with the kind of world we live in right now, 1190 00:54:19,600 --> 00:54:21,520 Speaker 2: someone goes, I love what Cody saying. I get it. 1191 00:54:21,520 --> 00:54:23,440 Speaker 2: I'm going to go buy vending machines, and then all 1192 00:54:23,480 --> 00:54:25,279 Speaker 2: of a sudden you've got a garage full of like 1193 00:54:25,320 --> 00:54:27,759 Speaker 2: twenty vending machines and you don't what to do with 1194 00:54:27,800 --> 00:54:31,960 Speaker 2: them because you don't understand business. So what core business 1195 00:54:32,040 --> 00:54:34,719 Speaker 2: skills are needed and what should we be developing in 1196 00:54:34,840 --> 00:54:37,800 Speaker 2: order to run any of these businesses? How much industry 1197 00:54:37,880 --> 00:54:38,480 Speaker 2: knowledge do we need? 1198 00:54:38,560 --> 00:54:40,520 Speaker 1: Yeah, it's a great question. Well, first of all, what 1199 00:54:40,520 --> 00:54:42,840 Speaker 1: I would think about is there's two different things we 1200 00:54:42,880 --> 00:54:45,880 Speaker 1: need to know in buying businesses or growing businesses. And 1201 00:54:45,920 --> 00:54:48,600 Speaker 1: the first thing is you've got to learn how to 1202 00:54:48,640 --> 00:54:51,800 Speaker 1: do deal making and how to actually speak the language 1203 00:54:51,840 --> 00:54:53,200 Speaker 1: of money, which is what we talk about in the 1204 00:54:53,200 --> 00:54:55,200 Speaker 1: book before you buy a business. So please don't just 1205 00:54:55,239 --> 00:54:57,200 Speaker 1: hear me and go buy a business. Read the book 1206 00:54:57,320 --> 00:55:00,600 Speaker 1: or go to a free newsletter online, spend a decent 1207 00:55:00,640 --> 00:55:03,920 Speaker 1: amount of up front time learning. I promise you'll make 1208 00:55:03,960 --> 00:55:05,799 Speaker 1: more money that way, you know. I kind of think 1209 00:55:05,800 --> 00:55:08,120 Speaker 1: about sometimes people go, well, why don't I use x 1210 00:55:08,120 --> 00:55:11,200 Speaker 1: amount of dollars I have instead of learning, just buying 1211 00:55:11,239 --> 00:55:14,040 Speaker 1: the business and I go, Does that ever work out well? 1212 00:55:14,080 --> 00:55:15,879 Speaker 1: Where we don't know what we're doing, but we plow 1213 00:55:15,960 --> 00:55:17,400 Speaker 1: a bunch of money into it because we want to 1214 00:55:17,400 --> 00:55:19,200 Speaker 1: just go do the thing, it doesn't work out, So 1215 00:55:19,480 --> 00:55:23,439 Speaker 1: spend your time learning how to execute first. Now that said, 1216 00:55:23,480 --> 00:55:27,360 Speaker 1: I really think there's just three key skills that we 1217 00:55:27,400 --> 00:55:29,520 Speaker 1: need to learn to grow a business. The first one 1218 00:55:29,560 --> 00:55:31,279 Speaker 1: is deal making. We got to understand how to do 1219 00:55:31,280 --> 00:55:34,640 Speaker 1: a deal. The second one is really a mixture of 1220 00:55:34,920 --> 00:55:39,320 Speaker 1: grit and endurance. So it's actually not tactics, it's how 1221 00:55:39,360 --> 00:55:41,640 Speaker 1: hard am I willing to work? What am I willing 1222 00:55:41,680 --> 00:55:44,040 Speaker 1: to sacrifice for the things that I want? And for 1223 00:55:44,080 --> 00:55:46,560 Speaker 1: how long am I willing to do that? And so 1224 00:55:46,719 --> 00:55:50,880 Speaker 1: Angela Duckworth famously University of Pennsylvania popularized grit is the 1225 00:55:50,880 --> 00:55:54,920 Speaker 1: most important thing to measure success. So it's basically like 1226 00:55:54,960 --> 00:55:57,120 Speaker 1: how much pain can you tolerate? And if you can 1227 00:55:57,120 --> 00:55:58,560 Speaker 1: tolerate a lot of pain, turns out you have a 1228 00:55:58,640 --> 00:56:01,920 Speaker 1: higher likelihood of making money. Business is really just like 1229 00:56:02,239 --> 00:56:05,920 Speaker 1: elongated periods of low level pain. Sometimes you have like 1230 00:56:05,920 --> 00:56:08,720 Speaker 1: what's called an acute or like a big jump in pain. 1231 00:56:08,920 --> 00:56:10,440 Speaker 1: But for the most part you know this. It's like 1232 00:56:10,640 --> 00:56:12,840 Speaker 1: what is what is running a business or starting a business. 1233 00:56:12,880 --> 00:56:15,960 Speaker 1: It's like, well, you're looking at your statements pretty much. 1234 00:56:16,000 --> 00:56:18,480 Speaker 1: Often you're like messing around with marketing. It's kind of 1235 00:56:18,520 --> 00:56:22,520 Speaker 1: like low level pain. And so that's the second point. 1236 00:56:22,600 --> 00:56:25,560 Speaker 1: And the third point is actually maybe a little rare too, 1237 00:56:25,600 --> 00:56:28,280 Speaker 1: which is just a lot of people obsess on how 1238 00:56:28,719 --> 00:56:33,120 Speaker 1: so what skills do I have to have? Exactly? How 1239 00:56:33,160 --> 00:56:35,440 Speaker 1: do I start a business? How do I tax? Structure, 1240 00:56:35,520 --> 00:56:37,920 Speaker 1: structure at the business? How do I get my first customers? 1241 00:56:38,000 --> 00:56:41,040 Speaker 1: All important and good questions, But the real pros know 1242 00:56:41,880 --> 00:56:44,960 Speaker 1: you don't ask how you ask who? Who can I 1243 00:56:45,000 --> 00:56:46,920 Speaker 1: go to who already has ten thousand hours where I 1244 00:56:46,960 --> 00:56:50,080 Speaker 1: can steal their homework. So now in business, if I go, hey, 1245 00:56:51,560 --> 00:56:53,040 Speaker 1: I don't know how to do our taxes, I go 1246 00:56:53,120 --> 00:56:54,960 Speaker 1: find somebody else who has done taxes for us. And 1247 00:56:54,960 --> 00:56:56,319 Speaker 1: it doesn't mean you have to pay for them. It 1248 00:56:56,440 --> 00:56:58,280 Speaker 1: just means you have to talk to them, and often 1249 00:56:58,280 --> 00:57:01,520 Speaker 1: people will help you. And so I am I who second, 1250 00:57:01,719 --> 00:57:04,680 Speaker 1: and then the third tier is buy So the really 1251 00:57:04,719 --> 00:57:06,879 Speaker 1: really rich when they have a problem, they don't think, 1252 00:57:06,920 --> 00:57:08,719 Speaker 1: how do I fix it. They don't think who can 1253 00:57:08,760 --> 00:57:10,520 Speaker 1: fix it? They think, how do I buy the solution 1254 00:57:10,600 --> 00:57:14,200 Speaker 1: to my problem? Because if I can buy the business, 1255 00:57:14,239 --> 00:57:17,040 Speaker 1: if I can buy the solution, then it's almost it's 1256 00:57:17,040 --> 00:57:19,520 Speaker 1: a higher guarantee of winning. And so that last one 1257 00:57:19,560 --> 00:57:22,600 Speaker 1: is really about your connections. And so I think if 1258 00:57:22,640 --> 00:57:26,200 Speaker 1: you understand deal making, you are honest with yourself about 1259 00:57:26,280 --> 00:57:28,600 Speaker 1: how much work you're willing to do one where the other, 1260 00:57:29,160 --> 00:57:32,040 Speaker 1: and you are willing to ask people for help. I 1261 00:57:32,040 --> 00:57:37,600 Speaker 1: think just about anybody can run a business. Now. Can 1262 00:57:37,640 --> 00:57:40,919 Speaker 1: anybody run Amazon? No, of course not. Could anybody run 1263 00:57:40,920 --> 00:57:43,120 Speaker 1: your businesses which are quite big, No. 1264 00:57:43,080 --> 00:57:43,600 Speaker 2: Of course not. 1265 00:57:43,800 --> 00:57:46,000 Speaker 1: It's really like the level of skill to the level 1266 00:57:46,040 --> 00:57:49,720 Speaker 1: you're at. But we don't say to people, you know, well, 1267 00:57:50,800 --> 00:57:54,720 Speaker 1: not anybody could buy an individual apartment apartment and live 1268 00:57:54,760 --> 00:57:58,040 Speaker 1: in them. We ask like, what do you want and 1269 00:57:58,560 --> 00:58:00,960 Speaker 1: how are you willing to in order to get it? 1270 00:58:01,080 --> 00:58:03,120 Speaker 1: So I think the same thing with businesses. It's like, okay, 1271 00:58:03,240 --> 00:58:04,720 Speaker 1: we have what's called the deal box, which is a 1272 00:58:04,720 --> 00:58:08,720 Speaker 1: little slightly technical, but basically the idea is oracle of 1273 00:58:08,760 --> 00:58:11,760 Speaker 1: DELFI says, know thyself, right, most important thing we can do? 1274 00:58:12,280 --> 00:58:15,240 Speaker 1: And in business you basically want to have your little 1275 00:58:15,280 --> 00:58:17,800 Speaker 1: deal box of what you want. So do you want 1276 00:58:18,320 --> 00:58:20,360 Speaker 1: income of x amount? Do you want it to be 1277 00:58:20,440 --> 00:58:22,720 Speaker 1: located in la? Do you want it to scratch an 1278 00:58:22,800 --> 00:58:25,680 Speaker 1: artistic itch and make you money? And you sort of 1279 00:58:25,680 --> 00:58:28,440 Speaker 1: fill out this box you know what you want, and 1280 00:58:28,480 --> 00:58:30,760 Speaker 1: then again you know the universe. I think a lot 1281 00:58:30,800 --> 00:58:33,080 Speaker 1: of times wants to help us out, but we don't 1282 00:58:33,120 --> 00:58:34,440 Speaker 1: know what we want. So how is it going to 1283 00:58:34,520 --> 00:58:36,120 Speaker 1: help us? Because we can't tell it one way or 1284 00:58:36,160 --> 00:58:38,080 Speaker 1: the other. And I think it's the same with business, 1285 00:58:38,800 --> 00:58:41,040 Speaker 1: you know, because we could go fifteen ways from sideways on, 1286 00:58:41,160 --> 00:58:43,600 Speaker 1: Like we have something called the nine p's, which are 1287 00:58:43,640 --> 00:58:46,280 Speaker 1: like the nine ways you scale a business to nine figures. 1288 00:58:47,360 --> 00:58:50,400 Speaker 1: But I don't want to stop people. I want them 1289 00:58:50,440 --> 00:58:54,360 Speaker 1: to start small and reasonable and know that the biggest 1290 00:58:54,360 --> 00:58:55,919 Speaker 1: thing in between you and the thing that you want 1291 00:58:56,360 --> 00:58:59,200 Speaker 1: is the knowledge on learning and the language of money, 1292 00:58:59,200 --> 00:59:02,360 Speaker 1: on getting after it kind of intensely, and then on 1293 00:59:02,440 --> 00:59:04,880 Speaker 1: asking for help. Like if you have those three things, 1294 00:59:05,000 --> 00:59:07,000 Speaker 1: you can at least start. And I don't want people 1295 00:59:07,000 --> 00:59:10,720 Speaker 1: to stop because they don't have XYZ leadership skill, Like 1296 00:59:11,000 --> 00:59:12,520 Speaker 1: I believe in your ability to figure it out. 1297 00:59:13,160 --> 00:59:15,480 Speaker 2: Yeah, yeah, and you might make some mistakes along the way. 1298 00:59:15,360 --> 00:59:18,880 Speaker 1: You will, yeah, sure, yeah, just don't make mistakes. Like, 1299 00:59:19,040 --> 00:59:21,080 Speaker 1: the only rule that I really have is don't do 1300 00:59:21,120 --> 00:59:23,360 Speaker 1: a deal so big that it can wipe you out. Ye, 1301 00:59:23,520 --> 00:59:26,520 Speaker 1: make sure your first deal is reasonable, or you help 1302 00:59:26,560 --> 00:59:29,080 Speaker 1: other people bring on risk to level it out. So like, 1303 00:59:29,560 --> 00:59:31,520 Speaker 1: if I'm young and I have no cash, should I 1304 00:59:31,520 --> 00:59:33,800 Speaker 1: go buy a million dollar business? Of course not? What 1305 00:59:33,840 --> 00:59:36,000 Speaker 1: would I do? I might go and I might partner 1306 00:59:36,080 --> 00:59:37,600 Speaker 1: with a couple friends, and I might say, hey, do 1307 00:59:37,600 --> 00:59:39,760 Speaker 1: you want to pool our capital together, Let's buy this 1308 00:59:39,800 --> 00:59:42,480 Speaker 1: little business together. If it doesn't work out, it's not 1309 00:59:42,520 --> 00:59:45,320 Speaker 1: going to murder us. It's gonna hurt, but we're going 1310 00:59:45,400 --> 00:59:47,640 Speaker 1: to learn a lot, and we're gonna diversify our risk 1311 00:59:47,720 --> 00:59:50,080 Speaker 1: amongst us, and we're going to do it together. Or 1312 00:59:50,120 --> 00:59:51,960 Speaker 1: maybe you partner with your dad, or maybe you partner 1313 00:59:51,960 --> 00:59:54,000 Speaker 1: with your dad's friends or your mom's friends or whatever. 1314 00:59:54,040 --> 00:59:55,720 Speaker 1: And so don't think that you have to do this 1315 00:59:55,800 --> 00:59:59,160 Speaker 1: game of entrepreneurship and acquisition by yourself. You don't. The 1316 00:59:59,160 --> 01:00:01,680 Speaker 1: big boys in private equity don't. You don't have to either. 1317 01:00:02,320 --> 01:00:05,320 Speaker 2: How do you find someone who wants to sell a business, 1318 01:00:05,960 --> 01:00:09,160 Speaker 2: because yeah, I feel like that would be My next 1319 01:00:09,240 --> 01:00:11,600 Speaker 2: question of like, how do I even know someone? How 1320 01:00:11,600 --> 01:00:13,320 Speaker 2: do I find someone? Because it must be going great 1321 01:00:13,320 --> 01:00:15,240 Speaker 2: for them, Why would they sell it to me, especially 1322 01:00:15,280 --> 01:00:18,600 Speaker 2: when I maybe know nothing about owning a hair salon 1323 01:00:18,960 --> 01:00:21,280 Speaker 2: or vending machines or whatever it may be. 1324 01:00:21,400 --> 01:00:23,640 Speaker 1: Right, well, you probably already know this. How many people 1325 01:00:23,720 --> 01:00:25,760 Speaker 1: offer you businesses or stakes and businesses? 1326 01:00:25,800 --> 01:00:27,320 Speaker 2: Now? Yeah, I bet a lot a lot? 1327 01:00:27,760 --> 01:00:30,880 Speaker 1: Why Because you have a very high value skill stack. 1328 01:00:31,040 --> 01:00:35,120 Speaker 1: That's very evident. People can directly attribute. If I partnered 1329 01:00:35,120 --> 01:00:38,240 Speaker 1: with Jay Shetty, then he's probably going to market my stuff. 1330 01:00:38,280 --> 01:00:40,680 Speaker 1: He's going to give me brand recognition. There's a high 1331 01:00:40,720 --> 01:00:43,280 Speaker 1: level of trust. So there's what's called the trust transference. 1332 01:00:43,440 --> 01:00:46,000 Speaker 1: So the higher level of skill you have, the easier 1333 01:00:46,000 --> 01:00:47,800 Speaker 1: it is for you to find businesses. In fact, they'll 1334 01:00:47,840 --> 01:00:51,080 Speaker 1: often come to you. The thing is, though, when even 1335 01:00:51,080 --> 01:00:53,040 Speaker 1: when we have a higher level of skill, we often 1336 01:00:53,120 --> 01:00:55,600 Speaker 1: don't really know what to do when it comes to us. 1337 01:00:55,600 --> 01:00:58,640 Speaker 1: We don't know how to do zero risk deals to us. 1338 01:00:59,000 --> 01:01:00,800 Speaker 1: And so I like learning deal making even if you 1339 01:01:00,800 --> 01:01:02,480 Speaker 1: have a ton of skills and a ton of money, 1340 01:01:02,680 --> 01:01:05,600 Speaker 1: because you can do a deal that seems unfair, but 1341 01:01:05,680 --> 01:01:09,360 Speaker 1: because you recognize your value, the deal is incredibly fair. 1342 01:01:09,480 --> 01:01:13,600 Speaker 1: In fact, the richer you are and the more audience 1343 01:01:13,680 --> 01:01:16,840 Speaker 1: you have, money you have which I call capital, the 1344 01:01:16,880 --> 01:01:20,760 Speaker 1: more coding ability you have aka like tech Jeff Bezos, 1345 01:01:20,920 --> 01:01:25,040 Speaker 1: engineering capability or labor you have access to, so employees 1346 01:01:25,080 --> 01:01:27,320 Speaker 1: or people that will work with you, the better deals 1347 01:01:27,360 --> 01:01:30,080 Speaker 1: you can do. And that's like the two two three 1348 01:01:30,200 --> 01:01:32,840 Speaker 1: oh three level. And anybody who's listening who actually has 1349 01:01:32,840 --> 01:01:35,640 Speaker 1: access to money and capital, you are crazy if you're 1350 01:01:35,680 --> 01:01:39,000 Speaker 1: not thinking about doing deals and learning it because it 1351 01:01:39,080 --> 01:01:43,720 Speaker 1: is the ultimate positive form of leverage. So I wish 1352 01:01:43,840 --> 01:01:45,600 Speaker 1: that we learned this earlier. This is how so many 1353 01:01:45,600 --> 01:01:48,760 Speaker 1: celebrities get screwed by the way, and you know, they 1354 01:01:48,760 --> 01:01:51,680 Speaker 1: get screwed because they do a deal, they don't understand 1355 01:01:51,720 --> 01:01:55,120 Speaker 1: the terms they signed. Their agent understands the terms they signed, 1356 01:01:55,280 --> 01:01:58,400 Speaker 1: Their agent isn't actually insteentive aligned with them long term, 1357 01:01:58,640 --> 01:02:00,600 Speaker 1: and so they end up getting screwed. It broke my 1358 01:02:00,720 --> 01:02:04,080 Speaker 1: heart when I watch that documentary with Val Kilmer, like, 1359 01:02:05,280 --> 01:02:07,280 Speaker 1: oh God, first of all, you would love it. It's beautiful. 1360 01:02:07,520 --> 01:02:10,240 Speaker 1: The documentary is beautiful. He wrote it, produced it and 1361 01:02:10,280 --> 01:02:13,280 Speaker 1: directed it and started it and it's just a beautiful 1362 01:02:13,280 --> 01:02:16,280 Speaker 1: piece of art. But also he lost everything. I mean 1363 01:02:16,280 --> 01:02:18,560 Speaker 1: he has basically no money now, no way, uh huh. 1364 01:02:18,560 --> 01:02:20,480 Speaker 1: And the reason why is because of a series of 1365 01:02:20,520 --> 01:02:22,400 Speaker 1: deals that he did where other people made it and 1366 01:02:22,440 --> 01:02:24,600 Speaker 1: he didn't. And so even if you have a ton 1367 01:02:24,640 --> 01:02:26,960 Speaker 1: of money, you got to be really careful about how 1368 01:02:26,960 --> 01:02:29,680 Speaker 1: you structure things in order to keep it. And the 1369 01:02:29,720 --> 01:02:32,480 Speaker 1: bigger that you get, the bigger target you have. And 1370 01:02:32,520 --> 01:02:34,720 Speaker 1: so it's important to think about that. And like the 1371 01:02:34,800 --> 01:02:37,920 Speaker 1: Russian proverb trust but verify, which is like trust nobody. 1372 01:02:38,640 --> 01:02:41,840 Speaker 1: I'm sorry, trust everybody, but verify that they are actually 1373 01:02:41,880 --> 01:02:44,440 Speaker 1: on your best terms, which is why I always doesn't 1374 01:02:44,480 --> 01:02:46,520 Speaker 1: count unless you've signed on the line that has dotted 1375 01:02:46,600 --> 01:02:50,960 Speaker 1: in the words of Alec Baldwin. So if you don't 1376 01:02:51,080 --> 01:02:53,760 Speaker 1: have deals coming at you because you don't have massive 1377 01:02:54,080 --> 01:02:57,640 Speaker 1: you know, fame or money or whatever like a normal person, 1378 01:02:57,920 --> 01:02:59,560 Speaker 1: and then the easiest way is to find deals. It's 1379 01:02:59,600 --> 01:03:02,480 Speaker 1: called a nation and private equity. So in private equity, 1380 01:03:02,800 --> 01:03:05,080 Speaker 1: if you think about what they do, they go around 1381 01:03:05,200 --> 01:03:08,160 Speaker 1: and they cold call small businesses. So they literally will 1382 01:03:08,200 --> 01:03:11,680 Speaker 1: cold call a plumbing company up all over the Midwest 1383 01:03:11,840 --> 01:03:13,280 Speaker 1: and ask like, hey, you guys want to sell or 1384 01:03:13,320 --> 01:03:14,840 Speaker 1: I get them all the time because I own these 1385 01:03:14,840 --> 01:03:17,600 Speaker 1: so our small businesses, Hey can we buy your landscaping company? 1386 01:03:17,840 --> 01:03:20,600 Speaker 1: So one one way you find deals is called on 1387 01:03:20,720 --> 01:03:24,360 Speaker 1: off market deal searching. So you basically turn on what 1388 01:03:24,400 --> 01:03:27,280 Speaker 1: I call your reticular activating system, which is basically just 1389 01:03:28,080 --> 01:03:31,360 Speaker 1: a system inside of your brain that is trained from 1390 01:03:31,400 --> 01:03:34,440 Speaker 1: the African Savannah to say, if I keep repeating this 1391 01:03:34,520 --> 01:03:36,960 Speaker 1: thing brain, it means it's important and I might die 1392 01:03:37,040 --> 01:03:39,120 Speaker 1: if I don't pay attention to it. And so in 1393 01:03:39,160 --> 01:03:41,800 Speaker 1: real life, what happens to you is once you play 1394 01:03:41,800 --> 01:03:44,480 Speaker 1: the game of business enough, then once you like deals, 1395 01:03:45,000 --> 01:03:47,600 Speaker 1: Like have you ever gone into somebody else's podcast studio? 1396 01:03:47,640 --> 01:03:49,840 Speaker 1: And because you probably are obsessed with podcasting, you walk 1397 01:03:49,880 --> 01:03:52,000 Speaker 1: in and you're like, hmm, that's an interesting way to 1398 01:03:52,040 --> 01:03:54,080 Speaker 1: do that set up. I don't think I would do that. 1399 01:03:54,160 --> 01:03:56,479 Speaker 1: Oh I like that they did that. Let's steal that, right. 1400 01:03:56,960 --> 01:03:59,760 Speaker 1: Your reticular activating system is so turned onto podcasts that 1401 01:03:59,760 --> 01:04:01,520 Speaker 1: you cant help. But notice all around you things you 1402 01:04:01,520 --> 01:04:04,160 Speaker 1: would do differently or that you like the same thing 1403 01:04:04,200 --> 01:04:07,280 Speaker 1: happens with business and deals. So now when I go 1404 01:04:07,400 --> 01:04:09,440 Speaker 1: into like a corner store, or when I go into 1405 01:04:09,480 --> 01:04:11,960 Speaker 1: a restaurant, I go or Jim Jim's get me for 1406 01:04:12,000 --> 01:04:14,120 Speaker 1: some reason. It's like you have me, you have my 1407 01:04:14,160 --> 01:04:16,480 Speaker 1: credit card, you have recurring revenue. I come in here 1408 01:04:16,480 --> 01:04:18,720 Speaker 1: every single day, sell me more shit? Why don't you 1409 01:04:18,720 --> 01:04:21,400 Speaker 1: sell me more things? You definitely should. And so one 1410 01:04:21,520 --> 01:04:23,640 Speaker 1: I will say, as you learn deal making, I can 1411 01:04:23,680 --> 01:04:26,600 Speaker 1: promise you only really one thing. When it comes to 1412 01:04:26,760 --> 01:04:30,760 Speaker 1: you becoming a better deal maker, your reticular activitying system 1413 01:04:30,840 --> 01:04:33,480 Speaker 1: comes on. So what's going to happen in deal finding? Yes, 1414 01:04:33,520 --> 01:04:36,640 Speaker 1: you could cold call, just like private equity, but instead 1415 01:04:37,120 --> 01:04:39,760 Speaker 1: kind of steep yourself in the type of deal you 1416 01:04:39,800 --> 01:04:43,160 Speaker 1: are looking for, steep yourself in what skills you actually have, 1417 01:04:43,640 --> 01:04:45,400 Speaker 1: and then you're going to see them all around. You 1418 01:04:45,440 --> 01:04:47,480 Speaker 1: won't be able to turn it off. It'll be like 1419 01:04:47,480 --> 01:04:48,960 Speaker 1: when you buy a car. All of a sudden, the 1420 01:04:48,960 --> 01:04:50,800 Speaker 1: car's all over the place. After you bought it, You're like, 1421 01:04:50,800 --> 01:04:54,400 Speaker 1: did everybody was it a sale? No? Your brain starts 1422 01:04:54,400 --> 01:04:56,600 Speaker 1: making you notice it. And so the best way to 1423 01:04:56,640 --> 01:04:59,960 Speaker 1: find deals is you start just having conversations with guys, 1424 01:05:00,160 --> 01:05:03,880 Speaker 1: because again cash Love's curiosity. Every time you go into 1425 01:05:03,920 --> 01:05:06,840 Speaker 1: a small business, you just go like, ah, amazing, you go, 1426 01:05:07,000 --> 01:05:08,640 Speaker 1: I mean, LA is full of them. You walk into 1427 01:05:08,640 --> 01:05:11,120 Speaker 1: a cool retail shop. Oh that's cool, man, this's your store. 1428 01:05:11,680 --> 01:05:14,120 Speaker 1: It is I mean probably fifty percent of the time 1429 01:05:14,160 --> 01:05:16,160 Speaker 1: it's theirs. And then you say to the guy like, 1430 01:05:16,160 --> 01:05:18,200 Speaker 1: how long you been doing this? A while? Do you 1431 01:05:18,240 --> 01:05:20,120 Speaker 1: want to keep you want to keep doing this? 1432 01:05:20,160 --> 01:05:20,200 Speaker 2: Like? 1433 01:05:20,240 --> 01:05:21,800 Speaker 1: How's business going? You guys make a lot of money. 1434 01:05:21,800 --> 01:05:23,360 Speaker 1: How long you've been around? Is a kid going to 1435 01:05:23,400 --> 01:05:24,720 Speaker 1: take over? Are you going to keep going? 1436 01:05:25,000 --> 01:05:25,160 Speaker 2: Oh? 1437 01:05:25,200 --> 01:05:26,960 Speaker 1: This is so cool. I love this. Maybe I buy 1438 01:05:27,000 --> 01:05:29,280 Speaker 1: a little something, and then maybe I decide I want 1439 01:05:29,280 --> 01:05:31,440 Speaker 1: to own one of these businesses with them. All of 1440 01:05:31,480 --> 01:05:33,240 Speaker 1: a sudden, I get to know the owner and I 1441 01:05:33,480 --> 01:05:36,080 Speaker 1: start getting into the curiosity where I get them to 1442 01:05:36,120 --> 01:05:39,880 Speaker 1: maybe consider that a young hustler who is really aggressive 1443 01:05:40,120 --> 01:05:41,280 Speaker 1: might be good for their business. 1444 01:05:41,600 --> 01:05:44,160 Speaker 2: Absolutely, yeah, No. I had a really interesting experience of 1445 01:05:44,200 --> 01:05:47,280 Speaker 2: this last maybe a couple of years ago. I was 1446 01:05:47,720 --> 01:05:52,080 Speaker 2: in a store that curates beautiful sets of books, and 1447 01:05:52,120 --> 01:05:54,360 Speaker 2: that's not what they do professionally. They sell clothes, but 1448 01:05:54,400 --> 01:05:57,360 Speaker 2: they also have books in the store. And I walked 1449 01:05:57,400 --> 01:06:00,840 Speaker 2: in there and I was I love, really enjoy books, 1450 01:06:00,880 --> 01:06:02,720 Speaker 2: and I enjoy collecting, and so I was looking around 1451 01:06:02,720 --> 01:06:04,479 Speaker 2: and these were all like new books. They're all newly 1452 01:06:04,480 --> 01:06:07,120 Speaker 2: published the Beautiful and I bought a ton and they 1453 01:06:07,120 --> 01:06:08,800 Speaker 2: were just like And then one person at that store 1454 01:06:08,840 --> 01:06:10,000 Speaker 2: just said to me, oh, by the way, like, do 1455 01:06:10,040 --> 01:06:11,360 Speaker 2: you love books. I was like yeah, And I was like, 1456 01:06:11,360 --> 01:06:13,680 Speaker 2: I'm really looking for vintage books though, be cool to 1457 01:06:13,720 --> 01:06:16,400 Speaker 2: own some like antique books and things like that. And 1458 01:06:16,440 --> 01:06:18,960 Speaker 2: she said, well, oh, there's this random store around the 1459 01:06:19,000 --> 01:06:22,400 Speaker 2: corner and it's like a printing press, like an old 1460 01:06:22,400 --> 01:06:24,840 Speaker 2: school binding book. But I've seen books in there before 1461 01:06:24,880 --> 01:06:26,720 Speaker 2: when you go check it out. So I literally go 1462 01:06:26,840 --> 01:06:29,560 Speaker 2: walk into this books and basically, actually, first of all, 1463 01:06:29,600 --> 01:06:33,640 Speaker 2: I walk outside. It looks like no one operates it. 1464 01:06:33,640 --> 01:06:37,560 Speaker 2: It looks completely run down. You wouldn't walk past it 1465 01:06:37,600 --> 01:06:39,760 Speaker 2: and think oh cool shop. You'd walk past it and 1466 01:06:39,800 --> 01:06:42,080 Speaker 2: not even you'd think no one, no one's inside it. 1467 01:06:42,240 --> 01:06:43,920 Speaker 2: So I'm kind of looking around. I'm like knocking on 1468 01:06:43,960 --> 01:06:45,640 Speaker 2: the door just to see I do see some books. 1469 01:06:46,160 --> 01:06:48,840 Speaker 2: And this lady opens the door and she's got like 1470 01:06:48,880 --> 01:06:51,880 Speaker 2: an old school binding press in there, and old school 1471 01:06:51,920 --> 01:06:54,720 Speaker 2: you know, all the old school tools that how books 1472 01:06:54,720 --> 01:06:56,280 Speaker 2: were bound in the past. And then she's got this 1473 01:06:56,280 --> 01:06:58,840 Speaker 2: bookshelf and I said, oh, I heard you might sell books, 1474 01:06:59,320 --> 01:07:01,960 Speaker 2: Like could I take a look, and she was like, 1475 01:07:02,440 --> 01:07:04,560 Speaker 2: oh no, I just have these books because I got 1476 01:07:04,560 --> 01:07:07,640 Speaker 2: divorced a few years back. My husband owned a bookstore. 1477 01:07:08,080 --> 01:07:11,080 Speaker 2: He left me with like fifty thousand books or something crazy, 1478 01:07:11,440 --> 01:07:12,919 Speaker 2: and she goes most of them at home, but there's 1479 01:07:12,920 --> 01:07:14,600 Speaker 2: probably like I don't know, a thousand yere or whatever 1480 01:07:14,600 --> 01:07:17,160 Speaker 2: it is. You can take whatever you want. And I 1481 01:07:17,200 --> 01:07:19,600 Speaker 2: was like, I'm happy to pay you, but sure. So 1482 01:07:19,640 --> 01:07:22,080 Speaker 2: I spent like two three hours and I was like 1483 01:07:22,080 --> 01:07:24,360 Speaker 2: getting really you know, I loved it. It was like it 1484 01:07:24,400 --> 01:07:27,400 Speaker 2: was literally like being inside of a secret cave of 1485 01:07:27,440 --> 01:07:29,680 Speaker 2: books and I was like finding all this stuff. So 1486 01:07:29,720 --> 01:07:31,720 Speaker 2: I got a stack of maybe like twenty books and 1487 01:07:31,720 --> 01:07:33,000 Speaker 2: I was like, hey, look, i'd love to pay you 1488 01:07:33,040 --> 01:07:35,040 Speaker 2: for them, Like you know, I'm good for it, and 1489 01:07:35,080 --> 01:07:38,880 Speaker 2: I'm grateful that you've even allowed me in. And I 1490 01:07:38,960 --> 01:07:40,680 Speaker 2: forced her a little bit. She finally took some money, 1491 01:07:40,800 --> 01:07:43,360 Speaker 2: and then there was one book while she was going 1492 01:07:43,400 --> 01:07:45,600 Speaker 2: through and she's like, I've been looking for this book 1493 01:07:45,640 --> 01:07:48,280 Speaker 2: for like five years, and she goes, I can't sell 1494 01:07:48,320 --> 01:07:49,800 Speaker 2: this one to you, and I was like sure, like 1495 01:07:50,120 --> 01:07:52,880 Speaker 2: I'm never gonna, you know, have it. Whatever. Anyway, I 1496 01:07:52,920 --> 01:07:55,280 Speaker 2: come home and I started checking all these books out online. 1497 01:07:55,400 --> 01:07:58,560 Speaker 2: They were all worth like at least one hundred dollars each. 1498 01:07:58,680 --> 01:08:00,880 Speaker 2: I probably paid like five to ten dollars each for them. 1499 01:08:01,280 --> 01:08:03,400 Speaker 2: And it was just a really good example to me 1500 01:08:03,640 --> 01:08:08,040 Speaker 2: of like this random place that and I wanted the book, 1501 01:08:08,080 --> 01:08:09,840 Speaker 2: so I kept them. But it was just this random 1502 01:08:09,840 --> 01:08:13,080 Speaker 2: place that was like this treasure trove of all of 1503 01:08:13,120 --> 01:08:15,920 Speaker 2: this great material and had someone wanted to go in 1504 01:08:16,000 --> 01:08:18,920 Speaker 2: and buy fifty thousand books and sell them online or 1505 01:08:18,920 --> 01:08:21,400 Speaker 2: sell them anywhere, there was a real business there and 1506 01:08:21,439 --> 01:08:24,000 Speaker 2: it was a smaller It was a very simple example 1507 01:08:24,240 --> 01:08:26,839 Speaker 2: of just how easy it was to come across something 1508 01:08:27,280 --> 01:08:29,920 Speaker 2: that that I wouldn't even I wasn't even looking for it. 1509 01:08:30,000 --> 01:08:31,720 Speaker 1: Well, yeah, and you know, it's a funny thing I 1510 01:08:31,800 --> 01:08:35,719 Speaker 1: do sometimes. One it's so lovely. And also how happy 1511 01:08:35,800 --> 01:08:38,479 Speaker 1: was she probably at the value you found in it? Yeah, 1512 01:08:38,479 --> 01:08:40,800 Speaker 1: Like did you feel like you were taking advantage of her? 1513 01:08:40,920 --> 01:08:43,439 Speaker 1: Or did she feel like, Wow, are you sure? Like 1514 01:08:43,479 --> 01:08:44,760 Speaker 1: I'm glad you're spending time with me? 1515 01:08:45,200 --> 01:08:47,439 Speaker 2: Absolutely? Absolutely, she was so happy. 1516 01:08:47,560 --> 01:08:49,960 Speaker 1: And I think this is something we don't realize because 1517 01:08:50,000 --> 01:08:54,000 Speaker 1: our generation is highly transactional. We're a highly transactional generation 1518 01:08:54,360 --> 01:08:58,360 Speaker 1: with immediate feedback loops aka social media with a high 1519 01:08:58,880 --> 01:09:02,000 Speaker 1: UH status game that we play with a lot of 1520 01:09:02,040 --> 01:09:03,839 Speaker 1: attention on us because you get a lot of attention 1521 01:09:03,920 --> 01:09:05,960 Speaker 1: when you're young and hungry and moving, but as we 1522 01:09:06,000 --> 01:09:07,720 Speaker 1: get older, I mean, women will tell you this all 1523 01:09:07,720 --> 01:09:09,479 Speaker 1: the time. They'll warn you that as you get older, 1524 01:09:09,600 --> 01:09:12,320 Speaker 1: you become a visible Like a middle aged woman will say, often, 1525 01:09:12,360 --> 01:09:15,519 Speaker 1: nobody sees me. And like one of our copywriters, she 1526 01:09:15,720 --> 01:09:17,519 Speaker 1: was so lovely, she said a thing to me. I 1527 01:09:17,560 --> 01:09:18,920 Speaker 1: was like, oh, she died or her blue And I 1528 01:09:18,920 --> 01:09:21,519 Speaker 1: was like, Marcella, looks great. Like she's an older woman, 1529 01:09:21,560 --> 01:09:23,920 Speaker 1: probably like mid fifties. And I was like, looks great, 1530 01:09:23,960 --> 01:09:25,400 Speaker 1: Like you know, what was the impetus? And she's like, 1531 01:09:25,479 --> 01:09:27,760 Speaker 1: you know, as you get older, I realized that, like 1532 01:09:27,800 --> 01:09:29,240 Speaker 1: nobody would talk to me, and I feel like they 1533 01:09:29,280 --> 01:09:31,920 Speaker 1: were looking through me. And she's like, so she's like, 1534 01:09:31,960 --> 01:09:34,200 Speaker 1: so I was with my one of my little nieces 1535 01:09:34,560 --> 01:09:36,760 Speaker 1: and I we dyed our hair little strips of it 1536 01:09:36,800 --> 01:09:38,280 Speaker 1: pink together, and she was like, And I was walking 1537 01:09:38,280 --> 01:09:41,599 Speaker 1: across the street and this young man kind of yelled 1538 01:09:41,640 --> 01:09:43,960 Speaker 1: over to me and he's like, hey, mama, like the hair. 1539 01:09:44,320 --> 01:09:46,519 Speaker 1: And she's like, I can't remember the last time a 1540 01:09:46,560 --> 01:09:49,799 Speaker 1: young man talk to me. She's like, so I anytime 1541 01:09:49,840 --> 01:09:51,840 Speaker 1: I now feel a little out of it, I die 1542 01:09:51,880 --> 01:09:54,320 Speaker 1: my hair blue. And to be fair, like in the past, 1543 01:09:54,320 --> 01:09:56,240 Speaker 1: sometimes when I saw people do that, I was like, really, 1544 01:09:56,320 --> 01:09:58,519 Speaker 1: what's going on here, Like, what's what's the move? And 1545 01:09:58,560 --> 01:10:03,040 Speaker 1: then I realized, oh, like, just because we value something 1546 01:10:03,120 --> 01:10:06,120 Speaker 1: one way doesn't mean that everybody else values it the 1547 01:10:06,120 --> 01:10:08,840 Speaker 1: other way. And so in order to break your frame 1548 01:10:08,880 --> 01:10:11,680 Speaker 1: and to see businesses all around, you don't assume that 1549 01:10:11,760 --> 01:10:14,160 Speaker 1: the same things you value other people do. It's like, 1550 01:10:14,200 --> 01:10:16,280 Speaker 1: I've never really believed in the Golden rule, which is 1551 01:10:16,320 --> 01:10:17,800 Speaker 1: treat others how you want to be treated. It's like 1552 01:10:18,040 --> 01:10:19,640 Speaker 1: buy and large, treat them how they want to be 1553 01:10:19,640 --> 01:10:22,240 Speaker 1: treated unless that breaks how you want to be treated. 1554 01:10:22,720 --> 01:10:24,640 Speaker 1: And I think that's the same with business owners. I 1555 01:10:24,640 --> 01:10:26,920 Speaker 1: mean my uncle Eb, which is one of the main 1556 01:10:26,960 --> 01:10:30,839 Speaker 1: reasons I started publicly about business talking about businesses online. 1557 01:10:31,479 --> 01:10:34,000 Speaker 1: He had a business did a couple million dollars a 1558 01:10:34,040 --> 01:10:36,880 Speaker 1: year in revenue and you can it's called eb Holmes Plumbing. 1559 01:10:36,960 --> 01:10:40,599 Speaker 1: It was in Phoenix, Arizona, and he got sick with 1560 01:10:40,640 --> 01:10:44,679 Speaker 1: cancer and decided he wanted to shut the business down. 1561 01:10:44,720 --> 01:10:47,360 Speaker 1: You know, he's in his seventies and was like, you know, 1562 01:10:47,439 --> 01:10:50,400 Speaker 1: I'm ready to be done. And what he didn't know 1563 01:10:50,439 --> 01:10:52,000 Speaker 1: at the time is that a business that is doing 1564 01:10:52,040 --> 01:10:53,960 Speaker 1: a couple of millions of dollars in revenue and a 1565 01:10:53,960 --> 01:10:56,679 Speaker 1: couple of millions of dollars in profit is worth millions 1566 01:10:56,720 --> 01:10:59,639 Speaker 1: of dollars. And so this man who spent his life 1567 01:10:59,680 --> 01:11:03,599 Speaker 1: building up a plumbing company that probably would have thought, honestly, 1568 01:11:03,720 --> 01:11:05,880 Speaker 1: like if he was here, he would say, Cody, I 1569 01:11:05,880 --> 01:11:08,519 Speaker 1: couldn't have sold that thing like that. That wasn't really 1570 01:11:08,520 --> 01:11:11,320 Speaker 1: you know, it was sort of And this is what 1571 01:11:11,439 --> 01:11:14,400 Speaker 1: most baby boomer business owners think. They're like, who's going 1572 01:11:14,479 --> 01:11:17,080 Speaker 1: to buy this? Because how many times have you had 1573 01:11:17,120 --> 01:11:19,040 Speaker 1: a business where you didn't want to be in it before? 1574 01:11:19,080 --> 01:11:19,960 Speaker 1: Have you ever had that before? 1575 01:11:20,120 --> 01:11:20,680 Speaker 2: Absolutely? 1576 01:11:20,720 --> 01:11:22,800 Speaker 1: Of course, like if you're in a room. Sometimes I 1577 01:11:22,840 --> 01:11:26,200 Speaker 1: go out to speaking stages and just for shits and giggles, 1578 01:11:26,240 --> 01:11:28,880 Speaker 1: cause people will always go if a business was profitable 1579 01:11:29,320 --> 01:11:31,920 Speaker 1: and it was going to continue to be profitable, nobody 1580 01:11:31,920 --> 01:11:34,479 Speaker 1: would sell it. And I go, okay, let's play a game. 1581 01:11:34,640 --> 01:11:36,920 Speaker 1: Business owners. Raise your hand. Everybody raises her hand, that's 1582 01:11:36,920 --> 01:11:39,439 Speaker 1: a business owner. I go, cool, keep them up. If 1583 01:11:39,439 --> 01:11:41,600 Speaker 1: you would sell your business at the right price and 1584 01:11:41,680 --> 01:11:44,519 Speaker 1: the right terms. If it came along, keep your hand up. 1585 01:11:44,560 --> 01:11:47,519 Speaker 1: What happens, everybody's up, not one. If you go down 1586 01:11:47,520 --> 01:11:50,840 Speaker 1: and I go liars, I laugh because the truth of 1587 01:11:50,880 --> 01:11:52,439 Speaker 1: the matter is, you haven't been in the game long 1588 01:11:52,520 --> 01:11:54,800 Speaker 1: enough if you put your hand down. But if you've 1589 01:11:54,840 --> 01:11:56,760 Speaker 1: been in the game long enough, you go absolutely. Now, 1590 01:11:56,800 --> 01:11:59,680 Speaker 1: I wouldn't sell every one of my businesses, but there 1591 01:11:59,720 --> 01:12:02,439 Speaker 1: is at some point one business, and if you cove 1592 01:12:02,439 --> 01:12:05,000 Speaker 1: he here the right day, maybe I would. So I 1593 01:12:05,000 --> 01:12:09,040 Speaker 1: think we have to like change our programming to realize 1594 01:12:09,120 --> 01:12:12,280 Speaker 1: all around us, every business has a value. That book 1595 01:12:12,320 --> 01:12:14,960 Speaker 1: selling business that shut down. I bet there was a 1596 01:12:15,040 --> 01:12:17,360 Speaker 1: value in the lease that they had. It might have 1597 01:12:17,400 --> 01:12:19,760 Speaker 1: been in California. Sometimes they have leases that are locked in. 1598 01:12:19,960 --> 01:12:22,520 Speaker 1: There could have been value in just the lease contract 1599 01:12:22,600 --> 01:12:25,000 Speaker 1: to transfer it. There could have been value in the assets, 1600 01:12:25,040 --> 01:12:27,680 Speaker 1: the books. There could have been value in the employees 1601 01:12:28,320 --> 01:12:30,240 Speaker 1: because you can do an aqua hire. There could have 1602 01:12:30,280 --> 01:12:32,800 Speaker 1: been value in the website listing. What about the Yelp 1603 01:12:32,840 --> 01:12:35,439 Speaker 1: and Google reviews? There could have been value in the IP. 1604 01:12:35,920 --> 01:12:37,800 Speaker 1: What about the logos and the brand and the name. 1605 01:12:38,000 --> 01:12:40,000 Speaker 1: What if they had one of those old school original 1606 01:12:40,240 --> 01:12:43,080 Speaker 1: you know, Cody dot com websites before, like we now 1607 01:12:43,120 --> 01:12:44,640 Speaker 1: have to have websites that are like four hundred and 1608 01:12:44,680 --> 01:12:47,920 Speaker 1: fifty two words, right, And so every single business has 1609 01:12:47,960 --> 01:12:51,160 Speaker 1: some value. And if you can find the business where 1610 01:12:51,200 --> 01:12:53,720 Speaker 1: the value to the owner is not as much as 1611 01:12:53,720 --> 01:12:55,120 Speaker 1: the value is to you, and then you got a 1612 01:12:55,120 --> 01:12:55,840 Speaker 1: really good deal. 1613 01:12:56,800 --> 01:12:59,400 Speaker 2: So I said, Cody, I'm just like, you know, I'm 1614 01:12:59,439 --> 01:13:01,640 Speaker 2: so happy that breaking this down for everyone, because I 1615 01:13:01,680 --> 01:13:05,280 Speaker 2: think it's such a It's just not what I'm hearing. 1616 01:13:05,360 --> 01:13:08,760 Speaker 2: It's not what people are talking about. It's not the 1617 01:13:09,160 --> 01:13:12,200 Speaker 2: it's not the and I'm glad because it's not the 1618 01:13:12,200 --> 01:13:15,160 Speaker 2: get rich quick solution either. It's not the Hey you 1619 01:13:15,200 --> 01:13:17,280 Speaker 2: can be really rich in twelve months and not worry 1620 01:13:17,320 --> 01:13:20,160 Speaker 2: about anything, and that kind of thing. I wish, Yeah, yeah, 1621 01:13:20,200 --> 01:13:23,320 Speaker 2: you wish. And I think I really appreciate you nailing 1622 01:13:23,320 --> 01:13:26,040 Speaker 2: it by just saying it's grit, right, that's what's required, 1623 01:13:26,120 --> 01:13:30,400 Speaker 2: that's deeply required. What's a skill that you think you 1624 01:13:30,479 --> 01:13:32,599 Speaker 2: wish you'd known you had to develop at the beginning 1625 01:13:32,640 --> 01:13:34,400 Speaker 2: of the journey, that you learned too late. 1626 01:13:34,560 --> 01:13:38,080 Speaker 1: I wish that I didn't have stories to myself about 1627 01:13:38,120 --> 01:13:40,799 Speaker 1: me being bad at math and money I think most 1628 01:13:40,920 --> 01:13:43,439 Speaker 1: people have a story when they're younger about how bad 1629 01:13:43,439 --> 01:13:45,599 Speaker 1: they are at math. I have one that I think 1630 01:13:45,640 --> 01:13:48,519 Speaker 1: really messed me up. I was in middle no, no, it 1631 01:13:48,600 --> 01:13:52,479 Speaker 1: was high school, was at Arkadia High and I had 1632 01:13:52,479 --> 01:13:56,679 Speaker 1: a math teacher, and I wasn't very good at math, 1633 01:13:56,720 --> 01:13:58,479 Speaker 1: Like I struggled. I think I might have a little 1634 01:13:58,520 --> 01:14:01,360 Speaker 1: bit of dyslexia. I'm not sure, but I just couldn't 1635 01:14:01,360 --> 01:14:04,040 Speaker 1: get the numbers to stay in my head correctly, and 1636 01:14:04,080 --> 01:14:05,960 Speaker 1: so I was sort of struggling. And I remember one 1637 01:14:06,000 --> 01:14:08,000 Speaker 1: day the teacher was getting really frustrated with me, And 1638 01:14:08,080 --> 01:14:09,880 Speaker 1: teaching is a hard job, so I get it. But 1639 01:14:10,320 --> 01:14:12,000 Speaker 1: he looked at me in front of the class and 1640 01:14:12,040 --> 01:14:14,920 Speaker 1: he said, man, I think Helen Keller would have a 1641 01:14:15,000 --> 01:14:17,120 Speaker 1: better shot at winning an archery contest than you would 1642 01:14:17,120 --> 01:14:20,439 Speaker 1: at winning in finance. And at the time, I was 1643 01:14:20,520 --> 01:14:24,280 Speaker 1: like heartbroken about this and like embarrassed, you know, and 1644 01:14:24,320 --> 01:14:26,960 Speaker 1: did it in the way teenagers do, just like I 1645 01:14:27,000 --> 01:14:29,479 Speaker 1: don't care whatever. But I was like very sad about it. 1646 01:14:29,560 --> 01:14:32,559 Speaker 1: And then I love my parents deeply. But my parents 1647 01:14:32,560 --> 01:14:35,280 Speaker 1: always used to say to my brother, you're so smart, 1648 01:14:35,600 --> 01:14:37,800 Speaker 1: You're so smart. You're so smart, You're so smart. And 1649 01:14:37,840 --> 01:14:39,800 Speaker 1: to me, they would always say, you work so hard, 1650 01:14:40,080 --> 01:14:42,000 Speaker 1: you work so hard, you work so hard, and at 1651 01:14:42,000 --> 01:14:44,080 Speaker 1: the time it was kind of mad, like I'm also smart, 1652 01:14:44,120 --> 01:14:45,880 Speaker 1: what about me? And they would always be like, well, 1653 01:14:45,880 --> 01:14:47,599 Speaker 1: Cody's not very good at math, in the same way 1654 01:14:47,640 --> 01:14:49,160 Speaker 1: that they would say I'm not very good at singing. 1655 01:14:49,240 --> 01:14:51,599 Speaker 1: The singing is true, I'm not good at that one. 1656 01:14:51,760 --> 01:14:54,639 Speaker 1: But that math thing stuck with me for a long time, 1657 01:14:54,760 --> 01:14:58,280 Speaker 1: and so I always thought that it was big and 1658 01:14:58,360 --> 01:15:00,880 Speaker 1: hard and scary to be quote unquote good at math. 1659 01:15:01,200 --> 01:15:02,920 Speaker 1: And when it comes to making money, the math is 1660 01:15:02,960 --> 01:15:05,400 Speaker 1: really simple, guys. And I'm bad at making math, so 1661 01:15:05,560 --> 01:15:07,720 Speaker 1: bad that Helen Keller would be better at archerie than 1662 01:15:07,760 --> 01:15:11,200 Speaker 1: I am. And so if any part of this skill 1663 01:15:11,280 --> 01:15:13,600 Speaker 1: is scaring you, I think it often starts with like, 1664 01:15:13,920 --> 01:15:16,240 Speaker 1: oh my god, I look at a spreadsheet and I panic. 1665 01:15:16,840 --> 01:15:19,280 Speaker 1: You know, I have to calculate something, and I panic. 1666 01:15:19,600 --> 01:15:21,840 Speaker 1: I look at a calculator and I panic. And I 1667 01:15:21,880 --> 01:15:25,400 Speaker 1: would say, just like, lean into that slightly, because I 1668 01:15:25,479 --> 01:15:28,920 Speaker 1: think in finance we do a very sneaky thing, which is, 1669 01:15:29,000 --> 01:15:32,200 Speaker 1: I think we try to make it seem really scary 1670 01:15:32,240 --> 01:15:35,200 Speaker 1: and hard for the average person to become rich. Why 1671 01:15:35,600 --> 01:15:37,240 Speaker 1: Because if it's scary and hard for you to do it, 1672 01:15:37,240 --> 01:15:38,679 Speaker 1: guess what I get to do. I get to charge 1673 01:15:38,720 --> 01:15:40,759 Speaker 1: a lot of money for it. And so that's why 1674 01:15:41,040 --> 01:15:43,320 Speaker 1: most of us take our money, and like, think about 1675 01:15:43,360 --> 01:15:45,280 Speaker 1: it for a second. We take our money and we 1676 01:15:45,360 --> 01:15:47,720 Speaker 1: give it to other people to take care of. Now, 1677 01:15:47,760 --> 01:15:49,639 Speaker 1: when you give your kids to other people to take 1678 01:15:49,680 --> 01:15:52,439 Speaker 1: care of, one hundred percent like their opinions about that, 1679 01:15:52,640 --> 01:15:55,160 Speaker 1: people say, no, you got to take care of your kids, 1680 01:15:55,160 --> 01:15:57,439 Speaker 1: you got to grow your kids. But with wealth, we 1681 01:15:57,479 --> 01:15:59,200 Speaker 1: can just say no, no, I don't understand anything. I just 1682 01:15:59,240 --> 01:16:01,040 Speaker 1: give it to this guy or year he figures it out. 1683 01:16:01,400 --> 01:16:03,439 Speaker 1: That's really not how we should treat money. And so 1684 01:16:03,479 --> 01:16:05,800 Speaker 1: the main skill that I think you should think about 1685 01:16:05,880 --> 01:16:08,600 Speaker 1: is one of my mentors said to me, money is 1686 01:16:08,920 --> 01:16:10,800 Speaker 1: a cruel mistress. She'll leave you if you don't pay 1687 01:16:10,840 --> 01:16:13,559 Speaker 1: attention to her. And I think about that a lot, Like, 1688 01:16:13,720 --> 01:16:16,840 Speaker 1: just give the money a little attention, give the math 1689 01:16:16,920 --> 01:16:19,639 Speaker 1: a little attention. You're more capable than you think you are. 1690 01:16:19,800 --> 01:16:22,519 Speaker 1: And it's really not possible to be bad at this 1691 01:16:22,640 --> 01:16:24,920 Speaker 1: type of math. So if your head you think I'm 1692 01:16:24,920 --> 01:16:28,080 Speaker 1: bad at math, I'm bad at spreadsheets. It's really not possible. 1693 01:16:28,360 --> 01:16:31,080 Speaker 1: I'm bad at calculus, but you can figure this stuff out. 1694 01:16:31,880 --> 01:16:35,760 Speaker 2: Cody, you are awesome and I love that advice. And 1695 01:16:35,880 --> 01:16:39,000 Speaker 2: I think everyone who's listened in what's this episode now 1696 01:16:39,120 --> 01:16:42,760 Speaker 2: has a game plan of how to negotiate something at 1697 01:16:42,760 --> 01:16:46,160 Speaker 2: their workplace, figure out how to invest in a company 1698 01:16:46,240 --> 01:16:49,639 Speaker 2: or a small business, recognize if you're at that place. 1699 01:16:49,640 --> 01:16:51,160 Speaker 2: If I just want to get over the fear that 1700 01:16:51,200 --> 01:16:54,120 Speaker 2: I'm bad at math, well that money is bad and 1701 01:16:54,240 --> 01:16:57,439 Speaker 2: a calm way for everyone to dive into main street Millionaire. 1702 01:16:57,439 --> 01:17:00,120 Speaker 2: This is the book that Cody's got out right now. 1703 01:17:00,120 --> 01:17:01,640 Speaker 2: I want you to go grab a copy if you've 1704 01:17:01,720 --> 01:17:04,280 Speaker 2: enjoyed today's discussion. This is one of those books that 1705 01:17:04,320 --> 01:17:07,200 Speaker 2: I hope you read with your friends, share insights. Maybe 1706 01:17:07,200 --> 01:17:10,120 Speaker 2: you'll invest in something together, build something together. It's a 1707 01:17:10,120 --> 01:17:12,360 Speaker 2: great book to pass on to a family member or 1708 01:17:12,360 --> 01:17:15,080 Speaker 2: a friend who's been struggling with money thinking about it. 1709 01:17:15,439 --> 01:17:19,559 Speaker 2: Please do not hesitate with this because it's so easy 1710 01:17:19,560 --> 01:17:22,240 Speaker 2: to keep pushing money off and keep having it be 1711 01:17:22,280 --> 01:17:24,080 Speaker 2: a source of anxiety in your life. And I think 1712 01:17:24,080 --> 01:17:26,840 Speaker 2: Cody's broken it down and make it really simple based 1713 01:17:26,920 --> 01:17:29,599 Speaker 2: on how to overcome your fears and go create something brilliant. 1714 01:17:29,760 --> 01:17:32,200 Speaker 2: So Cody, thank you for putting your heart and soul 1715 01:17:32,240 --> 01:17:35,559 Speaker 2: into this work. And we end every episode of On 1716 01:17:35,600 --> 01:17:38,599 Speaker 2: Purpose with a final five. These are a fast five 1717 01:17:38,640 --> 01:17:41,400 Speaker 2: where you have to answer each question in one word 1718 01:17:41,439 --> 01:17:44,479 Speaker 2: to one sentence maximum. So, Cody Sanchez, these are your 1719 01:17:44,600 --> 01:17:47,799 Speaker 2: final five. The first question is what is the best 1720 01:17:47,840 --> 01:17:51,240 Speaker 2: financial advice you've ever heard or received. 1721 01:17:50,840 --> 01:17:55,519 Speaker 1: That other people's money is actually feasible. People think that 1722 01:17:55,640 --> 01:17:59,160 Speaker 1: passive income is a lie, that getting other people's money 1723 01:17:59,200 --> 01:18:01,519 Speaker 1: is a lie, but they tell you that because they 1724 01:18:01,520 --> 01:18:03,559 Speaker 1: are usually the ones on the other side of the coin. 1725 01:18:04,000 --> 01:18:06,719 Speaker 1: So if you want to see about other people's money, 1726 01:18:06,720 --> 01:18:08,479 Speaker 1: look to private equity and mimic it. 1727 01:18:09,400 --> 01:18:11,360 Speaker 2: Let's go off piece for a second on that, because 1728 01:18:11,360 --> 01:18:13,320 Speaker 2: I think we didn't touch on that. If you want 1729 01:18:13,360 --> 01:18:15,839 Speaker 2: to raise investment for people who want to gain investment, 1730 01:18:15,840 --> 01:18:18,840 Speaker 2: maybe you've got a cool new idea, Maybe you've been 1731 01:18:18,920 --> 01:18:22,760 Speaker 2: tinkering something, got a deck. What should you have if 1732 01:18:22,760 --> 01:18:24,320 Speaker 2: you're going to go and ask for someone's money. 1733 01:18:24,320 --> 01:18:26,639 Speaker 1: Oh that's yeah, that's a really good point. It's really simple. 1734 01:18:26,760 --> 01:18:29,920 Speaker 1: A couple tactical things. One something called a tear sheet 1735 01:18:30,000 --> 01:18:33,040 Speaker 1: or a one sheet. So this is basically like think 1736 01:18:33,040 --> 01:18:35,000 Speaker 1: about it like a baseball card with all the stats 1737 01:18:35,000 --> 01:18:37,160 Speaker 1: on the baseball card, but for the deal that you're 1738 01:18:37,160 --> 01:18:39,040 Speaker 1: going to put So it's like, here's why I think 1739 01:18:39,080 --> 01:18:41,320 Speaker 1: it's good. Here's why I think we'll make money. Here's 1740 01:18:41,360 --> 01:18:43,519 Speaker 1: what that's based off of. Here's what a summary it is. 1741 01:18:43,680 --> 01:18:46,040 Speaker 1: Here's why I'm good at it too, and you should 1742 01:18:46,080 --> 01:18:48,559 Speaker 1: invest in me. And here's why I think you should 1743 01:18:48,600 --> 01:18:50,679 Speaker 1: be the one to invest. That's called a one sheet 1744 01:18:50,720 --> 01:18:54,200 Speaker 1: or a tear sheet. The second one is a pitch deck. 1745 01:18:54,479 --> 01:18:56,639 Speaker 1: From Golden I learned something called a three piece, which 1746 01:18:56,680 --> 01:18:59,439 Speaker 1: is people process performance, So I do that in all 1747 01:18:59,439 --> 01:19:03,479 Speaker 1: my pitch deck, which basically is like why us, Why 1748 01:19:03,479 --> 01:19:04,840 Speaker 1: should you bet on us? Because at the end of 1749 01:19:04,880 --> 01:19:06,800 Speaker 1: the day, if you're asking for somebody's money, it's about 1750 01:19:06,800 --> 01:19:09,160 Speaker 1: the opportunity for sure, but it's really like, do I 1751 01:19:09,200 --> 01:19:10,960 Speaker 1: want to invest in Jay? Do I believe in Jay? 1752 01:19:11,360 --> 01:19:16,200 Speaker 1: And then second is process, so like what is the opportunity, 1753 01:19:16,320 --> 01:19:18,519 Speaker 1: what is the way we're structuring this, what are we 1754 01:19:18,600 --> 01:19:20,880 Speaker 1: investing in? What is the process by which you're going 1755 01:19:20,920 --> 01:19:23,200 Speaker 1: to take our money and go bring it back with friends? 1756 01:19:23,520 --> 01:19:26,120 Speaker 1: And then lastly is performance. So if I give you this, 1757 01:19:26,760 --> 01:19:28,800 Speaker 1: why do you think that I'm going to make money? 1758 01:19:28,840 --> 01:19:32,040 Speaker 1: How much money am I going to make? And why 1759 01:19:32,120 --> 01:19:34,439 Speaker 1: should I invest in you instead of all these other things. 1760 01:19:34,600 --> 01:19:36,559 Speaker 1: So if you have those two things, that is the 1761 01:19:36,880 --> 01:19:39,400 Speaker 1: like typical one on one for raising money. 1762 01:19:39,560 --> 01:19:41,559 Speaker 2: Great answer. Now, I think it's really important for people 1763 01:19:41,640 --> 01:19:43,560 Speaker 2: to know because I think so many times we just 1764 01:19:43,640 --> 01:19:44,960 Speaker 2: kind of turn up and hope. 1765 01:19:44,960 --> 01:19:46,599 Speaker 1: One hundred percent. And I wish people would have told 1766 01:19:46,600 --> 01:19:48,280 Speaker 1: me that. It's like sometimes when you have those little 1767 01:19:48,320 --> 01:19:50,600 Speaker 1: easy tactics, you're like, Okay, now I feel good. You 1768 01:19:50,600 --> 01:19:52,639 Speaker 1: know there's more to it than that, but at least 1769 01:19:52,960 --> 01:19:54,720 Speaker 1: you know, like, hey, if I want to drive a car, 1770 01:19:54,840 --> 01:19:56,320 Speaker 1: I need the car and I need some gas. So 1771 01:19:56,360 --> 01:19:57,080 Speaker 1: now you guys got that. 1772 01:19:57,400 --> 01:20:01,200 Speaker 2: Yeah. And I think sometimes were so focused on convincing 1773 01:20:01,240 --> 01:20:03,559 Speaker 2: someone that we have the best idea and not focused 1774 01:20:03,560 --> 01:20:06,160 Speaker 2: on convincing someone we understand how to execute it. And 1775 01:20:06,240 --> 01:20:08,240 Speaker 2: I think anyone who's looking to give you money is 1776 01:20:08,280 --> 01:20:11,639 Speaker 2: looking to whether they think you can execute it. Because 1777 01:20:11,640 --> 01:20:14,719 Speaker 2: I hear good ideas all the time. The best investors 1778 01:20:14,760 --> 01:20:18,360 Speaker 2: in the world hear amazing ideas all the time, and 1779 01:20:19,040 --> 01:20:21,840 Speaker 2: ideas are just not the thing that works. Like you know, 1780 01:20:21,920 --> 01:20:23,599 Speaker 2: you were talking about like Google was like the twenty 1781 01:20:23,600 --> 01:20:26,479 Speaker 2: first search engine, Like they weren't the first search engine. 1782 01:20:26,520 --> 01:20:29,200 Speaker 2: It wasn't a unique idea. It was just that they 1783 01:20:29,240 --> 01:20:32,120 Speaker 2: had a great way of executing and why they've evolved 1784 01:20:32,160 --> 01:20:34,879 Speaker 2: into this mega, mega megabusiness now. 1785 01:20:34,800 --> 01:20:37,680 Speaker 1: Yeah, exactly. Best predictor of future behavior's past behavior. So 1786 01:20:37,680 --> 01:20:40,160 Speaker 1: if you can show them you have a history of winning, yeah, 1787 01:20:40,360 --> 01:20:42,720 Speaker 1: and even show them some instances where you didn't win, 1788 01:20:42,840 --> 01:20:44,960 Speaker 1: why and how, you're never going to replicate that again. 1789 01:20:45,240 --> 01:20:48,000 Speaker 1: People are going to bet on the hustler who is 1790 01:20:48,040 --> 01:20:50,960 Speaker 1: on a winning streak, you know oftentimes right, You know this, 1791 01:20:51,120 --> 01:20:53,879 Speaker 1: if you go to gamble on a game in sports, 1792 01:20:54,000 --> 01:20:56,280 Speaker 1: you don't gamble on the person that's have a losing streak. 1793 01:20:56,439 --> 01:20:58,800 Speaker 1: Why Because it's actually quite hard to break. And so 1794 01:20:58,840 --> 01:21:01,200 Speaker 1: I think also if you can show a history of winning, 1795 01:21:01,640 --> 01:21:03,760 Speaker 1: and that's a narrative you can frame, you're more likely 1796 01:21:03,760 --> 01:21:05,280 Speaker 1: to get cash to that's great. 1797 01:21:05,680 --> 01:21:08,800 Speaker 2: Second question, what is the worst financial advice you've ever 1798 01:21:08,800 --> 01:21:09,519 Speaker 2: heard or received? 1799 01:21:10,120 --> 01:21:14,040 Speaker 1: That money is scarce and hard to get. If you 1800 01:21:14,040 --> 01:21:16,680 Speaker 1: think money is hard and scarce, then you're probably not 1801 01:21:16,720 --> 01:21:19,680 Speaker 1: going to get it. And I think people want you 1802 01:21:19,880 --> 01:21:23,040 Speaker 1: to think that, and that does not serve you at all. 1803 01:21:24,320 --> 01:21:27,640 Speaker 2: Question number three, the best five hundred dollars investment you 1804 01:21:27,680 --> 01:21:30,240 Speaker 2: ever made or two. 1805 01:21:32,920 --> 01:21:38,719 Speaker 1: Mm. I think this is a little cliche, but health 1806 01:21:38,840 --> 01:21:44,160 Speaker 1: and wealth are super tired. And the best money I've 1807 01:21:44,160 --> 01:21:47,200 Speaker 1: ever spent are probably two things, a saana and a 1808 01:21:47,200 --> 01:21:50,040 Speaker 1: cold plunge. And I know that sounds like super tech 1809 01:21:50,040 --> 01:21:53,120 Speaker 1: bro Twitter, but the truth of the matter is is 1810 01:21:53,160 --> 01:21:55,280 Speaker 1: that if I can get a little bit more energy 1811 01:21:55,280 --> 01:21:57,479 Speaker 1: in the beginning of the day, it seems to carry 1812 01:21:57,520 --> 01:21:59,240 Speaker 1: through the rest of my day and make me more money. 1813 01:21:59,280 --> 01:22:02,519 Speaker 1: So what your sauna and cold plunges? And I think 1814 01:22:02,520 --> 01:22:05,400 Speaker 1: I bought mine on Amazon for literally like a thousand 1815 01:22:05,400 --> 01:22:09,719 Speaker 1: bucks each, Then that's money well spent. 1816 01:22:10,760 --> 01:22:14,800 Speaker 2: Great question before the biggest waste of money you've ever spent? 1817 01:22:15,360 --> 01:22:17,679 Speaker 2: Not the amount, but like something that was all complete waste. 1818 01:22:17,760 --> 01:22:21,360 Speaker 1: The biggest mistakes I've ever made are always not things 1819 01:22:21,360 --> 01:22:25,160 Speaker 1: I did or bought, but people I chose. It was. 1820 01:22:25,280 --> 01:22:27,600 Speaker 1: It's always about the people, the good things, and the 1821 01:22:27,640 --> 01:22:30,240 Speaker 1: best things. So be careful those you partner with, spend 1822 01:22:30,320 --> 01:22:34,200 Speaker 1: time with, and invest in, and know that those will 1823 01:22:34,200 --> 01:22:36,400 Speaker 1: often be the things that give you the most heartache 1824 01:22:36,439 --> 01:22:37,599 Speaker 1: or make you the most money. 1825 01:22:38,160 --> 01:22:40,519 Speaker 2: Let's side note on that too. How does We talked 1826 01:22:40,560 --> 01:22:43,000 Speaker 2: a bit about it before too, But for someone who's 1827 01:22:43,040 --> 01:22:47,080 Speaker 2: like thinking about finding the right business partner, knowing whether 1828 01:22:47,080 --> 01:22:49,400 Speaker 2: you can trust someone, obviously you never know anything. We 1829 01:22:49,439 --> 01:22:52,920 Speaker 2: talked about it, like, how do you set yourself up 1830 01:22:52,960 --> 01:22:55,679 Speaker 2: for success? Bey on the negotiation that we discussed. 1831 01:22:55,720 --> 01:22:59,439 Speaker 1: I have a couple different rules. One rule is you 1832 01:22:59,439 --> 01:23:01,559 Speaker 1: don't get married on the first date. Don't do a 1833 01:23:01,600 --> 01:23:03,800 Speaker 1: deal or start a business on the first date, which 1834 01:23:03,840 --> 01:23:05,840 Speaker 1: means I have a one year rule. I do not 1835 01:23:05,960 --> 01:23:08,400 Speaker 1: get into a long term partnership with anybody that I 1836 01:23:08,439 --> 01:23:11,439 Speaker 1: haven't known for at least a year. In business, a 1837 01:23:11,439 --> 01:23:13,759 Speaker 1: lot of times there's this, you know, that rosy phase 1838 01:23:13,800 --> 01:23:15,400 Speaker 1: you have on your first dating with somebody. You're like, 1839 01:23:15,400 --> 01:23:17,040 Speaker 1: the thing is, we're in love and we're meant to be, 1840 01:23:17,200 --> 01:23:19,240 Speaker 1: and that about six months later you're like, also, no, 1841 01:23:19,680 --> 01:23:22,800 Speaker 1: and so same thing with business partners. Give yourself a 1842 01:23:22,880 --> 01:23:25,280 Speaker 1: nice twelve month window. It's hard to hide who you 1843 01:23:25,360 --> 01:23:29,559 Speaker 1: are for a year. The second thing when doing business 1844 01:23:29,560 --> 01:23:33,400 Speaker 1: deals is when you partner with somebody, you don't actually 1845 01:23:33,439 --> 01:23:35,559 Speaker 1: want to partner with somebody that's just like you. It's 1846 01:23:35,560 --> 01:23:38,000 Speaker 1: the same with marriage. It's why dating apps are so tough. 1847 01:23:38,040 --> 01:23:39,479 Speaker 1: I mean I was talking to Sean rad about that, 1848 01:23:39,479 --> 01:23:41,000 Speaker 1: the founder to Tender of the other day. I was like, 1849 01:23:41,240 --> 01:23:43,680 Speaker 1: the thing is, you don't realize what you did, but 1850 01:23:44,120 --> 01:23:46,519 Speaker 1: you allowed people to self select for people that are 1851 01:23:46,560 --> 01:23:50,000 Speaker 1: just like them. And it turns out the statistics all 1852 01:23:50,040 --> 01:23:52,559 Speaker 1: show that we do not last in marriages as long 1853 01:23:52,800 --> 01:23:55,200 Speaker 1: or relationships as long when our person is just like us. 1854 01:23:55,320 --> 01:23:57,599 Speaker 1: They actually we actually have to have this like creative 1855 01:23:57,760 --> 01:23:59,640 Speaker 1: difference between the two of us. There's a ying to 1856 01:23:59,680 --> 01:24:01,600 Speaker 1: the yang in everything in the universe, and so the 1857 01:24:01,640 --> 01:24:03,960 Speaker 1: studies tell us you need two different types in order 1858 01:24:04,000 --> 01:24:07,879 Speaker 1: to succeed long term. You can some overlap is necessary, obviously, 1859 01:24:07,920 --> 01:24:10,479 Speaker 1: but you don't actually want to date yourself. It's the 1860 01:24:10,520 --> 01:24:12,760 Speaker 1: same with a partner. Make sure that if you're a 1861 01:24:12,760 --> 01:24:16,040 Speaker 1: great salesperson and a parent with another salesperson, you've got 1862 01:24:16,040 --> 01:24:19,439 Speaker 1: a great operational person and a great salesperson. Maybe that works. 1863 01:24:19,960 --> 01:24:23,080 Speaker 1: And the last thing about great partnerships is everything else 1864 01:24:23,320 --> 01:24:26,559 Speaker 1: is figure outable if there is enough drive. And so, 1865 01:24:26,920 --> 01:24:29,439 Speaker 1: but my father says, you can lead a horse to water, 1866 01:24:29,479 --> 01:24:32,200 Speaker 1: but you can't make them drink, And so I always 1867 01:24:32,200 --> 01:24:36,240 Speaker 1: overoptimize on this idea of desire, like why do you 1868 01:24:36,280 --> 01:24:38,400 Speaker 1: want to partner with me? And do I believe that 1869 01:24:38,400 --> 01:24:41,000 Speaker 1: that why is so big that we can overcome anyhow? 1870 01:24:41,200 --> 01:24:42,680 Speaker 1: And if your why is like I kind of want 1871 01:24:42,680 --> 01:24:44,400 Speaker 1: to make a couple dollars on the side, but I 1872 01:24:44,479 --> 01:24:45,920 Speaker 1: might do this, but I might do this, but I 1873 01:24:46,000 --> 01:24:48,360 Speaker 1: might do this, I call you a tow tepper. You're 1874 01:24:48,400 --> 01:24:50,439 Speaker 1: actually not all the way in. You're not fully in 1875 01:24:50,520 --> 01:24:52,040 Speaker 1: with me. And so at our company, we just had 1876 01:24:52,040 --> 01:24:54,640 Speaker 1: one of these people the other day, a young kid's 1877 01:24:54,680 --> 01:24:56,720 Speaker 1: a stud but he came to us and he was like, yeah, 1878 01:24:56,720 --> 01:24:58,559 Speaker 1: I want to do this job with you, but I 1879 01:24:58,560 --> 01:25:01,160 Speaker 1: also have these other things. And you know, once you've 1880 01:25:01,200 --> 01:25:03,680 Speaker 1: interviewed I've interviewed thousands and thousands of people by now, 1881 01:25:03,720 --> 01:25:04,960 Speaker 1: so you know I can kind of get to the 1882 01:25:04,960 --> 01:25:06,559 Speaker 1: heart of it. And I remember Tanner was sitting in 1883 01:25:06,560 --> 01:25:08,960 Speaker 1: the interview with me, and Tanner's face was just falling 1884 01:25:09,040 --> 01:25:11,000 Speaker 1: as he was listening to it because I was kind 1885 01:25:11,000 --> 01:25:13,479 Speaker 1: of faireading out a few things, and the young guy 1886 01:25:13,600 --> 01:25:15,720 Speaker 1: was like, well, I have this channel and I want 1887 01:25:15,720 --> 01:25:18,040 Speaker 1: to grow this and I want to do that. And 1888 01:25:18,120 --> 01:25:19,600 Speaker 1: I was like, why do you want to be here? Then? Like, 1889 01:25:19,640 --> 01:25:21,040 Speaker 1: if you want to do all those other things like no, no, 1890 01:25:21,160 --> 01:25:22,240 Speaker 1: I want to do this too, and we can do 1891 01:25:22,280 --> 01:25:23,439 Speaker 1: it all together. And I said, the thing in life 1892 01:25:23,479 --> 01:25:25,599 Speaker 1: that I wish somebody had told me earlier is when 1893 01:25:25,640 --> 01:25:28,080 Speaker 1: you're starting out, you can never be excellent at multiple 1894 01:25:28,080 --> 01:25:31,479 Speaker 1: things at once. Eventually you can have excellence in multiple 1895 01:25:31,479 --> 01:25:34,240 Speaker 1: things because you can attract top talent. But in the beginning, 1896 01:25:34,280 --> 01:25:37,320 Speaker 1: you're either all in or you are a barely concealed 1897 01:25:37,360 --> 01:25:41,240 Speaker 1: series of distractions. And so a partnership make sure they 1898 01:25:41,240 --> 01:25:43,759 Speaker 1: are all in and their why is super super big. 1899 01:25:44,040 --> 01:25:47,680 Speaker 1: Otherwise they should go find their why and it's not you. 1900 01:25:48,400 --> 01:25:52,000 Speaker 2: Yeah, well, said fifth and final question. If you could 1901 01:25:52,000 --> 01:25:55,000 Speaker 2: create one law that everyone in the world had to follow, 1902 01:25:55,360 --> 01:25:56,000 Speaker 2: what would it be. 1903 01:25:56,120 --> 01:25:59,400 Speaker 1: Oh, God, that's a hard one. Just one one law 1904 01:25:59,400 --> 01:26:01,920 Speaker 1: in the world everybody in the world had to follow up. 1905 01:26:03,000 --> 01:26:05,360 Speaker 1: How would we We'd have to think legally about some 1906 01:26:05,439 --> 01:26:07,080 Speaker 1: of the caveats to this. We want to make sure 1907 01:26:07,120 --> 01:26:09,519 Speaker 1: we crafted the language correctly in order to not have 1908 01:26:09,640 --> 01:26:12,760 Speaker 1: perverse incentives or second and third order effects. But it 1909 01:26:12,760 --> 01:26:16,760 Speaker 1: would be something to the tune of like probably something 1910 01:26:16,800 --> 01:26:21,400 Speaker 1: about taxes. It'd be like, don't allow centralization of tax 1911 01:26:21,520 --> 01:26:24,840 Speaker 1: power above a certain amount, and the reason why is 1912 01:26:25,880 --> 01:26:30,320 Speaker 1: kind of technical, but basically, we want to give as 1913 01:26:30,360 --> 01:26:33,760 Speaker 1: much money as possible back to you, the builders. The 1914 01:26:33,840 --> 01:26:36,680 Speaker 1: only way that money and thus freedom is created is 1915 01:26:36,720 --> 01:26:41,080 Speaker 1: from individual humans who build things. Governments cannot build things. 1916 01:26:41,479 --> 01:26:44,400 Speaker 1: Governments can take capital from somewhere else and they can 1917 01:26:44,439 --> 01:26:47,280 Speaker 1: allocate it to other things and equalize. And that is 1918 01:26:47,320 --> 01:26:50,280 Speaker 1: great and wonderful and necessary. But I would be really 1919 01:26:50,320 --> 01:26:54,639 Speaker 1: careful about what I see as core to our society today, 1920 01:26:55,120 --> 01:26:59,040 Speaker 1: which is, are we allowing too few of people to 1921 01:26:59,120 --> 01:27:01,680 Speaker 1: control two money much of us? And it starts with 1922 01:27:01,680 --> 01:27:03,720 Speaker 1: our money. And I know there are lots of other 1923 01:27:03,760 --> 01:27:05,439 Speaker 1: things we could care about when it comes to politics, 1924 01:27:05,439 --> 01:27:08,360 Speaker 1: and that's very important too. But I was in Argentina 1925 01:27:08,479 --> 01:27:11,360 Speaker 1: when they closed my business and made it illegal overnight 1926 01:27:11,439 --> 01:27:15,120 Speaker 1: because they nationalized it. And I have seen countries fall 1927 01:27:15,160 --> 01:27:19,360 Speaker 1: apart at the floor of tax station and nationalization, and 1928 01:27:19,360 --> 01:27:21,559 Speaker 1: so I guess it would be a government is never 1929 01:27:21,600 --> 01:27:24,760 Speaker 1: allowed to nationalize, and a government is never allowed to 1930 01:27:24,840 --> 01:27:28,640 Speaker 1: overly tax, and every chance we get, let's believe in 1931 01:27:28,680 --> 01:27:31,479 Speaker 1: the builder and the individual and not the big huge 1932 01:27:31,600 --> 01:27:33,920 Speaker 1: entity like you guys can figure out you don't need 1933 01:27:34,000 --> 01:27:34,799 Speaker 1: them all the time. 1934 01:27:35,320 --> 01:27:38,439 Speaker 2: I love it. Cody Sanjez the books called Main Street Millionaire. 1935 01:27:38,520 --> 01:27:40,960 Speaker 2: Everyone make sure you follow Cody on social media if 1936 01:27:40,960 --> 01:27:44,240 Speaker 2: you don't already, subscribe on YouTube, follow on Instagram, TikTok, 1937 01:27:44,400 --> 01:27:47,040 Speaker 2: get the book, Cody. I hope you'll come on many, 1938 01:27:47,120 --> 01:27:50,599 Speaker 2: many more times. It was amazing talking to you. Honestly, 1939 01:27:50,640 --> 01:27:53,880 Speaker 2: You've opened my mind. I'm sure you've blown everyone else's mind. 1940 01:27:54,320 --> 01:27:56,000 Speaker 2: And I want to thank you for doing the work 1941 01:27:56,040 --> 01:27:59,960 Speaker 2: you do and really appreciate how practical, tactical and access 1942 01:28:00,280 --> 01:28:03,160 Speaker 2: that you're making this world of money that's been so 1943 01:28:03,760 --> 01:28:05,840 Speaker 2: hidden and kept aside. So thank you so much. 1944 01:28:05,880 --> 01:28:08,280 Speaker 1: Well, thank you, And maybe the only thing can I 1945 01:28:08,280 --> 01:28:10,600 Speaker 1: add one thing, audience, of course, the only thing I 1946 01:28:10,600 --> 01:28:13,439 Speaker 1: would add is, like anybody who is out there building 1947 01:28:13,520 --> 01:28:16,120 Speaker 1: right now, I hope you know how important you are. 1948 01:28:16,680 --> 01:28:19,000 Speaker 1: You know it is. It is so critical to have 1949 01:28:19,040 --> 01:28:22,080 Speaker 1: builders in this world, and it is so hard, and 1950 01:28:22,120 --> 01:28:25,080 Speaker 1: you're never alone, and you are so necessary and without you, 1951 01:28:25,160 --> 01:28:29,120 Speaker 1: the world literally stops. And so three percent of Americans 1952 01:28:29,160 --> 01:28:32,760 Speaker 1: own a business, three percent. We need more of you 1953 01:28:33,040 --> 01:28:35,120 Speaker 1: builders out there in the world, and so everything we 1954 01:28:35,280 --> 01:28:38,840 Speaker 1: do is to try to create more humans who have 1955 01:28:38,920 --> 01:28:41,080 Speaker 1: skin in the game, who are creating things with your 1956 01:28:41,080 --> 01:28:44,519 Speaker 1: beautiful brains and your hands, and like, I'm an awe 1957 01:28:44,520 --> 01:28:47,639 Speaker 1: of you. So every time I meet like the laundromat owner, 1958 01:28:47,680 --> 01:28:50,759 Speaker 1: the car wash owner, the entrepreneur that's building something inside 1959 01:28:50,760 --> 01:28:52,360 Speaker 1: of a business, like I just hope you know there's 1960 01:28:52,360 --> 01:28:54,920 Speaker 1: so much dignity in the world and it's because of 1961 01:28:54,960 --> 01:28:58,080 Speaker 1: the work you do, and without you, you know, it's 1962 01:28:58,080 --> 01:29:00,519 Speaker 1: actually not good to go back to the stone. Like 1963 01:29:00,680 --> 01:29:02,280 Speaker 1: we have all the things we have today because of 1964 01:29:02,320 --> 01:29:04,439 Speaker 1: each of you, and that includes you and building this business. 1965 01:29:04,479 --> 01:29:05,320 Speaker 1: So thank you for having me. 1966 01:29:05,400 --> 01:29:07,120 Speaker 2: I just want to say that I've appreciated you so 1967 01:29:07,240 --> 01:29:11,799 Speaker 2: deeply offline, and your work online of course speaks for itself. 1968 01:29:11,840 --> 01:29:15,439 Speaker 2: It's been so successful in congratulations, and so to be 1969 01:29:15,479 --> 01:29:18,120 Speaker 2: able to dive into this theme with you that I 1970 01:29:18,120 --> 01:29:20,320 Speaker 2: think is so important for the world right now is 1971 01:29:20,760 --> 01:29:21,479 Speaker 2: a real blessing. 1972 01:29:21,520 --> 01:29:23,400 Speaker 1: So thank you, well, thank you. I think you know, 1973 01:29:23,840 --> 01:29:25,479 Speaker 1: you meet a lot of people in real life that 1974 01:29:25,520 --> 01:29:27,719 Speaker 1: you kind of know online and so at a certain point, 1975 01:29:27,840 --> 01:29:29,519 Speaker 1: I think you can kind of tell when the human 1976 01:29:29,560 --> 01:29:31,360 Speaker 1: is going to match the human and that's what I 1977 01:29:31,360 --> 01:29:33,880 Speaker 1: felt with you. So it's cool for the people listening too. 1978 01:29:34,320 --> 01:29:36,880 Speaker 1: You got a question everything, and sometimes you meet people 1979 01:29:36,960 --> 01:29:38,320 Speaker 1: that you look up to, and you're like, dang it, 1980 01:29:38,840 --> 01:29:40,280 Speaker 1: you know, not quite what I thought it was going 1981 01:29:40,360 --> 01:29:43,720 Speaker 1: to be, and so like real respect to you for that. 1982 01:29:44,200 --> 01:29:47,360 Speaker 2: I love it. Thanks Cody. Yeah, that's awesome. Thank you 1983 01:29:47,479 --> 01:29:51,200 Speaker 2: so much for listening to this conversation. If you enjoyed it, 1984 01:29:51,320 --> 01:29:55,440 Speaker 2: you'll love my chat with Adam Grant on why discomfort 1985 01:29:55,560 --> 01:29:58,720 Speaker 2: is the key to growth and the strategies for unlocking 1986 01:29:59,080 --> 01:30:01,800 Speaker 2: your hidden potential. If you know you want to be 1987 01:30:01,960 --> 01:30:04,719 Speaker 2: more and achieve more this year, go check it out 1988 01:30:04,960 --> 01:30:05,479 Speaker 2: right now. 1989 01:30:05,640 --> 01:30:08,320 Speaker 1: You set a goal today, you achieve it in six months, 1990 01:30:08,720 --> 01:30:11,559 Speaker 1: and then by the time it happens, it's almost a relief. 1991 01:30:11,760 --> 01:30:13,320 Speaker 2: There's no sense of meaning and purpose. 1992 01:30:13,520 --> 01:30:15,200 Speaker 1: You sort of expected it, and you would have been 1993 01:30:15,200 --> 01:30:16,639 Speaker 1: disappointed if it didn't happen.