20 Episode results for "PNL"

E295 - Mind Your Business  |  Key Performance Indicators To Scale Your Business

15 Minutes to Freedom: A Warrior’s Daily Focus on Journals and Meditations

28:08 min | 1 year ago

E295 - Mind Your Business | Key Performance Indicators To Scale Your Business

"This is fifteen minutes to freedom. I'm your host Ryan at Ellen. Today's episode is mind your business. Today's episode is more business oriented as I'm willing to discuss some key performance indicators that are valuable in helping you grow scale optimize your business. I realize as I sit here in the studio that has been quite some time since I have shared anything business related. I feel almost obligated to apologize for that obligated base off of it's part of who I am. And what I have done what I've been through that affords me the luxury to get to share lessons on things that I had not done correctly. Which now provides inside on things I know how to do correctly and how to help others do correctly. The biggest thing that I did not focus on the now, I help people focus on is. Establishing the key performance indicators for your business. That's why I understand there's a potential listen to this. You're not a business owner. You're not an entrepreneur. You don't have any aspirants of owning your own business. All this actually applies for your household as well. So I'd encourage you to still stay tuned. So I had a coaching call with on incredible client of mine. Just yesterday as I record this episode. Client, and I have worked together for twelve thirteen fourteen weeks on the backside of his time with me and we've gotten to the point now of really trying to dial in the variables of his business. Now, he's a franchise owner a very successful franchise. He owns multiple franchises. Right. So there's a lot of moving pieces and parts and as we've worked in our time together. Sure, we work on mindset in limiting beliefs and healthy habits and patterns and communication and right? I think so often we want to especially as men, but also his business owners entrepreneurs we always want help on the business. I gotta make more money. I gotta figure out business. I can truly say from where I sit business seems like one of the easiest variables are working on. That's why so much of this podcast. That's why so much of my time with clients is spent working on them before we work in on their business. So put a little Asher because we've already done the deep work on him his operating system. We've upgraded it to the most current model that he's capable or workable uncovering. Dive in a business. I started asking him some very direct questions. Questions like what are your fixed monthly expenses? What's the dollar amount? What are they as items? What are your variable monthly operating expenses? Dollar amount. Do they typically range from? What's your churn rate or attrition rate on client side ups and acquisitions? What's your lifetime customer value? What's your payroll personnel expense? What you're miscellaneous column? What percentage of revenue allocating towards marketing sales, new client acquisition? What is your marketing plans, combating? How can you track return on investment on your marketing dollars? Right. These are all just rapid fire. Right. I was sharing these with you. I don't have a listened the office. This isn't written down somewhere. These in a few. Other variables I call key performance indicators of your business. Now, having of analytic mind, I realize the fact that these things become easier for me now to speak about. They become easier. Because I started back in say this web hosting world was really weird all this became massively important to me where I realize with. Somewhere between two hundred and four hundred employees and all different pieces of sales process to monitor customer support expenses retention rates merchant processing fees settlements like right ahead. More variables and I was able to calculate in my head on a consistent basis. But I was intelligent enough to know that these variables mattered. It wasn't enough just to sit back and say like, oh, they'll figure themselves out or I can look at monthly profit and loss statement or PNL or same to cash flow. I can look at that on the fifteenth the next month and make decisions. I truly feel like had done that would have been a catastrophic disaster. Having so many variables and having so many, different pieces and parts. It would have taken two or three employees to almost be fulltime personnel to give me what I needed every morning to be able to make decisions. Doesn't a fortune position to have an entire. Suite of employees that were programmers right, computer programmers, PHP HTML links like the whole gamut of people. And so one of the first things I didn't I took over the company was sit down and design and mockup. A reporting tool. That would work through every variable? I could possibly see. So that we can refresh it from any browser anywhere. It was secure by it. I can see you. What was the client attrition rate? What was my acquisition rate? What was the cost of acquisition? What was the average shopping cart? Total was lifetime customer value like going through all these different pieces and parts were all incredibly beneficial important to me because I had to make decisions. And those decisions couldn't wait for weeks or sometimes even days Takouchet late. I certainly can't say that. I was the best CEO can't say it was the best president. I can say I cared. A lot about the numbers in the variables. Because a help provide light into dark places. Now, Dr places those are the places that we there are frayed to look we don't know where to look or that we don't know we should be looking. Which comes back full circle to my conversation. My client. I'm asking him for these. I call them KPI's. And he says, well, I think it's about and it's roughly. It could be as much as. As not for nor as a business owner. As someone that's in charge of money. That is a catastrophic place for you to be operating, especially if you're on the ground floor of your a startup if you're bootstrapping accompany yourself. For you to say, I think it's about. Is bad. It's it's really bad. You should be able to sit down and say, look it cost me seven thousand four hundred forty seven dollars to run it operate my business every month. My customer. Sign up is worth nine ninety two dollars by the time, I work in operational expenses and variable operational expenses that attrition rate gets down closer to seventy two dollars. So I know I have to sell a hundred ten memberships or have to Bill hundred ten people month just to break, even so I know my current client portfolio one hundred people right now, I have to acquire ten more just to break, even so my goals to choir. Thirty people this month. But Klein over client. I'm losing ten percent of my populace every month for people that just timeout. So after we're kind of retention strategy for those ten percent. Plus, I have to gain an extra ten percent above and beyond the twenty that I've already agreed to gain in order to keep a hockey stick type of growth curve month over month, which becomes advantageous. If we ever wanna talk about an exit. Tomorrow, full, right. There's chances you're listening. I don't understand one word of what was just said. So wanna break it out and reverse engineer for you? If it costs eight thousand dollars to run a business keep the lights on pay rent pay franchising fees. Make sure your personnel is paid for. I sure the lights stay on make sure there's always toilet, paper and pens. Make sure the software they use as paid for think of all the things that you might have to write a check for this month. Monthly operating expenses to me which required. No matter. What goes on? Now, you might say, but Ryan they changed month over month. Sometimes heats more expensive. Sometimes we spend more money on water. Sometimes for whatever. The reason we go through twice as much toilet paper. Okay. So right now, I would have you do is three months. Look back. I would ask you three pass months in fairly consistent to you. I'd have you look at your PNL. I'd have you add all those numbers together and a heavy divide by three. That's when give you an average. It's not exact, but it's much closer. Now. We can take cost eight thousand dollars to run this hypothetical nonsensical business. Because it's very easy. Let's say this is a gyp. And if you have joined a gym yourself, you know, typical there's an upfront sign up fee, and then a monthly billing fee. Right. That's kinda how most gyms work. So you start looking how many current paying members? Do you have right now that you can Otto debit their credit card without having to spend any marketing dollars or anytime energy effort or resources to find that client. In this make believe world. Let's say it's a hundred clients at ninety bucks a month. That math isn't very good. I'll do a hundred clients at seventy bucks a month. That seven thousand dollars versus the eight thousand dollars takes to run the business. Currently if you made no shift in your business, you're going to be a thousand dollars in the hole, which has to come from somewhere. So as I sit here on closer the first of the month. And look at what is my strategy and plan what is the tactic? I have to deploy this month to make up the difference in revenue. Well, it's a thousand dollars and for all things to be equal. Let you say new Klein is worth a hundred dollars. So you have to sign up ten new clients that is just to break. Even as an owner. You're still not taking home any any cash. You think? Well, why would I want to do that? I work really hard. I'd like to take home cash. Okay. How much cash rely take home? Let's go with three thousand dollars. So it takes ten clients to break, even and you wanna take home three thousand dollars, which is thirty clients, and I need forty clients total. But if we look statistically over the past three months every month. There's been ten percent of clients have just decided staying at your gym wasn't wasn't good for them anymore. They wanna to go somewhere else. Now, you're losing ten over the course of a month. So the forty clients you thought you needed actually turns into fifty for you to make three thousand dollars. Hopefully, follow me so far. There has to be a plan on the first of the month at the latest on how you're going to acquire those fifty clients the plan cannot be nebulous. Meaning you have to have some time bound restrictions around. It you know, what strategies are going to implement every day, you need checks and balances and systems and processes built around yourself to save you from yourself, especially the small business owner. So fifty clients saying you're going to be opened thirty days this month is on I'm going to round up and say one point seven clients day be overzealous and say to get to new clients day. But what didn't talk about safaris? I have three trainers in my gym. And those trainers more than just trainers. They also get compensated ever so slightly when a new client signs up that they brought in the gym. So I know any fifty clients I have three trainers. They're all training groups. I think I can get them each to bring in ten clients. So now, I'm going to share that message to them. I'm not explain to them. That's my expectation for them. I'm gonna then teach them and coach them consistently on how to do that. I'm gonna hold them accountable every day because they need to bring a new client once every three days and order hit their obligation to you. But you as a business owner so responsible offer twenty new client acquisitions, but you also have to make up for the potential deficiency in your personnel. Because all things are not equal in some are going to succeed in some are not going to. So what we have to do is say you as a as a business owner you need to sign up thirty clients one a day. So not only do you have to run the business. Not only have to worry about the variable and fixed expenses, not only do you have to deal with the headaches of running a business. Now, you have to train your trainers on how to sell you have to hold them accountable for sales. And then you have to go out and sell yourself. But you as a business owner are someone that I call the evangelical leader of your movement. I believe you should be known, especially in the gym industry around town, people should know you. So think of what I call your customer avatar that is if you could write down on a sheet of paper who your ideal top three clients, are you should do that? None of their age, but their sex their interest, their socioeconomic standards will part of town. They live in every variable. You can think of this imaginary person that could walk into the gym. Look great three variables of that. You wanna create three different versions from those three different versions. You also want to come up with one person who you just are not ever going to want to work with, you know, the no good because you've had them in the gym before they mess up the culture, they mess up. The mindset. Some with all four of these customer avatars laid out in front of you. You sit down and brainstorm, maybe it's five minutes. Maybe it's an hour where the highest population density areas of these three individuals. Could be anywhere. Maybe it's a library. Maybe it's a local business. Maybe it's a grocery store. Don't know only you're gonna know that answer. Once you have that answer for each one of those three clients three that you want to acquire. Now, you have to come up with a plan and how you're going to get in front of them. Now, I believe in a grassroots movement. We wanna spend as little money as possible. 'cause right now most people say I'll just advertise on social media. That is a whole nother rabbit hole for a whole nother day. We can get on social media marketing, we're gonna Facebook ads Benz and Instagram ad spends. Lincoln Twitter, Email marketing, I'm fine with all that. But we wanted to hear is look at what can I do that doesn't have a massive financial burden for me. That's crazy thing of showing up places being there. Going above and beyond. So you itemize three preferred clients, and you itemize the three highest density population locations for each one of those clients now, you have nine different places. While the average month has twenty four and a half working days. I'm gonna say twenty five. Super overzealous and say couple of these places will be open on Saturdays soon need to stop by each one of these places three times throughout the month and have a plan. Have a sequential order. You're taking them through knowing the first time you stop into these businesses or the places you're going to be met with some resistance. People are not going to be warm to you. They don't really know yet. So you should be doing that capacity in my opinion is simply seeing how you can add value to their lives saying Hello introducing yourself. Offering complimentary tips and tricks don't devalue product don't give it away. But see how you can ask enough questions know how to position your next meeting? Your goal in meeting number one is to show up be present and be passive. We're not trying to go for hard close yet. And meeting number two. Not you take some of the information from meeting number one new apply that to their life like you're solving for their pain points. As a gym owner. There's a chance of it's a small business that you could work on something to help them lower their expense. As far as employees sick days. Maybe you're gonna lower their medical insurance burden. Maybe it could be a wellness package because the owner really cares about fitness employees. Don't so much. Who knows what the pain point could be. But you start to introduce the idea that you're there to be able to potentially solve it for them. Maybe some customer sign up. Now, maybe they don't maybe some are interested in coming and seeing what you have to offer. Maybe they're not. But by the third time, you're there does I'm start up heat a little bit. It's okay. You've earned the right? Maybe show up with some sort of passive gift. Maybe come in with commentary diets or exercise plans for anybody that wants one. But now you're goal is. Because you've added value because you've asked for permission because you've shown up and been present. Now believe you're fully within your right to say, hey, I want you to do this. And in this situation. It's I want you to come check out my gym and become a member. You've earned it. So often business owners were frayed to ask for the sale or demand. What we want? But it's because internally we haven't built the value. None of us really want to be sold. Anything? But I would be hard presses. You're listening. You don't enjoy buying things? Are it's been proven scientifically that we get a dopamine dump when we buy things it's exciting. That's why they're shopaholics. That's why we get credit cards massive credit card debt, because it feels good new swipe something you get take it home. Even if you know you can't afford it. So it's your responsibility as a business owner to also be the joke will leader also be the salesperson. You're just helping people facilitate what they already want. That's the by. But while you're doing this next human this. You're also back filling teaching your staff on how to do this because they have their own idea customers. They have their own referral network. They have their own plan to processes and procedures. What happens is consistently every two or three days? There has to be a check in. So everybody on the team knows where you're at versus where you need to end up at and everybody has to be tied into the mission of the company, the visually the company and the values associated with the company. Because if they're not there knocking understand why they're working for it. There's a reason why their employee's and your potentially and owner. Help some of this is making sense to you. Because this not only works inside of a small business, but it works. If you're a salesperson. Right. You trying to to grow your enterprise value inside a large large organization near salesperson. It's a contact sport. Being told. No is okay. Because it's not permanent. Right. Just a temporary. Like, they don't see the value. So that I would encourage you to consider how can I add value to their lives? I'm gonna let you in on a secret. There's a specific reason above and beyond my own personal enjoyment. And because I feel good when I do it. Then I'm committed to add value every day for four years. Not always it. Because I know you get to know me, you get to know my moral fiber. You know what I'm about? But it makes it so when I ask something of you whenever the day comes come to one of my events, I'm willing to take up coaching clients, go support this company. I have nothing to do with. You have a higher likelihood of actually doing that. Because I've given you everything I can give you admittedly. I don't hold much of anything back on the show, not only my own shit that I've been through but also coaching ideas. Business ideas, renegade marketing sales automation on just unload all of it. I don't keep any this for Pryatta. Because I know if I give enough. There's a chance when you're searching for something you'll think of me, and even if that's not the case, and you just consume the content for the next four years honored to be of off service to you and be a part of your journey. I can tell you when you're in sales. When you started opting that mindset. Life becomes easier. Right. This is a this never ending quote unquote game for me. I'll be podcasting and helping people change their lives from now until forever. So I'm not really concerned about today. Just as in sales. You should not be that concerned about today either. Today's all we have but we get a series of today's. So to recap the business side of this conversation. Small business owner eight thousand dollars around the business seven thousand dollars a month recurring revenue thousand dollar deficiency needs ten clients was gonna lose ten clients. He really needs twenty. But here she wants to make three thousand bucks above and beyond operating the business. You gotta sign up another thirty clients above and beyond that. You understand the facts of the situation. We're not running from anything we have facts to deal with from -sition of factual information. You come up with a plan. Part of that plan is disseminated the information down into your organization and making sure they buy into the mission vision and values at your instilling in them. Part of that plan. Is you have to work your plan as well to lead from the front and lead, by example. Part. Then is it? You must train the people that work for you on how to work like you part of the senate's back filling in and consistent and systematic way to ensure this check ins along the way if you're on pace if you're behind pace or if you're headed pace. Then you have to execute the plan take inventory in stock of if the plan worked by the thirtieth of the month and then recalibrated comparable plan for the next month. That'll business is. We can talk about goal setting for one year three years five years. Ten years. We can talk about IPO's and exit strategies talking about all that fun stuff. Love it. That'd be another episode for another day. But us matters. If you don't focus on the now, are we gotta get the cash flow stable in the business. Because I'll cash flow. There is nothing really aren't you're eating your own savings. Then you're not really a business owner, you're a slave to the business. This a whole different way to start unpacking some of the pieces and parts as far as business sales automation that I would love to add more value to. I would love to start opening up this show for business related questions. Have more entrepreneurs more business owners on the show, and we can dive deeper into the issues that you're having is a business. As a complete side note, one of the questions, I get quite often is I think I need to raise capital. What do you think? I think someone that has raised capital before. It delude your equity typically. So when I own less of what I want to what I create when I'm the one that's in the trenches. And I'm giving up. Stock for lack of better term ownership percentage to someone else. That's not actively involved. Now have to answer questions on what really want to answer. I'm okay with pieces and parts of it. But I don't inherently like that. So I personally believe in less is true TJ play because you're burning cash. I would never take on capital. I don't think most businesses really need it. It less strategic partnership that can be established because the person that's investing in infusing capital fills deficiency that you have in your organization, we'll take this Jim for instance. Perhaps you just realize you're just not a good salesperson. You're great numbers. You're great at automation near great it systems with sales. Just you're not your area of expertise to raise capital from someone. That's not a master in sales. That's not willing to come and train your staff to me as a misalignment of goals. Anybody can give you money. They're just expecting a return. But how do you leverage the need for money into filling the holes in your boat? Find the right person to give you money that fills a hole. And when it's time to do that, you kinda know because you hit them a carrying capacity where you won't be able to grow anymore without some sort of extra advice. So that's a business coach whether that's mentor, whether that's a capital infusion with someone's going to come in and be more active in the business. There's all types of ways to start to grow and scale. But it's my recommendation to delay delay delay capital. Have official way to wrap up this episode because it's been so business-minded, but I can say we just have to always be clear on the facts. Right. As pertains to your body. You have to be really clear and honest about where the facts are in your life. Right. You can say I think I'm ten percent body fat at home two hundred pounds. But until you'll get a decks Iskander or sitting the Bod pod. And really figure out the actual fat on your body. You're just guessing it's not factual data without that, you don't know your resting metabolic rate. And you don't know. Some variables that are required to figure out how to have you officially ineffectively lose body fat. But retainer gained muscle mass is very difficult. So I would encourage you to find the facts there. As a pertains to your relationship. Maybe you don't wanna admit the fact, you don't really get the warm and fuzzy from your partner. The facts of life are painful that you might have to be alone. The facts of life are not gonna communication you. Don't feel like you're being heard. The facts life. Are you should share that and get some more feedback and input from people? Then this whole opposites been about the facts of business. If you don't know the the very basics on what a cost to run your business the revenue bring your business, which your plans are for the business and executed plan for that plan. You shooting yourself in the foot. And as you look at the scope of work across every variable and dial in the facts of your life. Once you have them under control, you'll be able to get shit done.

business owner Ryan Klein Asher hockey Takouchet PNL Bill engineer CEO Otto Instagram Ellen
Pay it Forward Friday: Shawna Newsome

Hacking Your Leadership

02:33 min | 2 months ago

Pay it Forward Friday: Shawna Newsome

"Hey everyone and welcome to another paid for Friday episode where we highlight people that we feel are doing a great job of Polish leadership content resonates with us. We will include links to their work and tag them on our post to make sure that they know we appreciate them. This is our way to say thanks to other leaders and individuals that are having a positive impact on helping others become better leaders through sharing your thoughts opinions and ideas online for all to see and hear Chris. I have always wanted to use our platform to advocate for other people passionate about leadership and our listeners much content as possible to help sharpen their own skills through different perspectives and approaches. If you like US check out any one specific please tag him in the comments or send us a message with links to their content on this episode. I WANNA recognize Sean. Newsom SEAN is a season retail manager is open to new opportunities with this pandemic. We've seen a lot of people impacted especially in retail now. I could go on for hours about people who lead retail stores in their connection to their people and their loyalty to their companies and their ability to manage. Pnl's present on performance calls deal with HR issues and exceed customer expectations. But that would just be the tip of the iceberg on what most retailers are capable of the reason I wanted to highlight. Shauna is because of how she is handling her current situation. I saw one of her most recent posts and even with the uncertainty of her organization and her job. She was recognizing her team for the hard work they were doing. It was genuine because after checking out her content came across opposed that she shared a wild bag and it read and I quote when I started my new role store manager of a new store at a new company. I not only had to learn an entire new process and new procedures but new employees as well like every new store manager. I began assessing my employees from the beginning. I listen to feedback from the former store manager as well as conducting daily observations one of the quote unquote week performers. I quickly assessed was simply in the wrong role. I moved this young lady to a new role within the store. And she is now flourishing beyond words. The moral of the story is treat your employees like they matter and like their work matters and give them a job that speaks to them and you will be amazed the outcome. So if anyone in the Paynesville Kentucky Wise Virginia and Logan West Virginia area is look for talent. Checkout Shawna's links in the episode notes for everyone else check out her content for some uplifting positive leadership. Great Job Shawna and thanks for helping others to Hashtag be a better leader. Thanks for listening and let us know who else deserves kudos.

Shauna Newsom SEAN retail manager Chris Shawna Paynesville Kentucky Wise Virg Logan West Virginia Pnl
Guest Host: Michael King

Journey to $100 Million

05:38 min | 5 months ago

Guest Host: Michael King

"What's happening it's Eric J Olson? Today we have a special guest host Michael King from KFC SOLUTIONS DOT com. He provide financial advice to businesses. Like yours he is also the host of the podcast in the trenches which I was recently interviewed on great time on his interview and it was pretty amazing how many similarities he and I have in our stories and how they overlap with one another. Take a listen and enjoy. Hey there Eric Olson in I'm Heaven Days. Join us on our journey to building a one hundred million dollars company. Hey everybody my name is Michael King. I'm the CEO of KFC solutions. Where our sole mission in life to help business owners understand their numbers so they can make better decisions you know after working with over two hundred businesses now and these are businesses that range anywhere from pre revenue startups. Maybe better known as the want preneurs all the way up to mid range businesses and even Into the fortune one hundred companies people. Say Hey with all that experience. What would you say is the number one mistake that executives or business owners? Make relative to business financials. And it's a pretty easy answer for me. In this is true for those pre revenue startups. All the way up to the the big boys the biggest mistake that a business owner or an executive can make is not knowing the four key financial numbers for their business. Now if you've ever looked at PNL's and balance sheet statements of cash flows. You know that there's probably hundreds and hundreds of financial metrics they probably make your eyes gloss over there. There's nothing sexier exciting about them. The good news though is regardless of how big your businesses. There's really only four financial metrics that you absolutely have to know inside and out in the cool thing about these metrics is. These are the only four numbers only four numbers that are going to cause your business to thrive or cause it to die. So you're you might be thinking yourself. Hey I'm not a numbers person. This isn't my thing. I have a bookkeeper. I've an account of a controller. They worry about these things. But I'm going to tell you the four numbers that you absolutely have to. No you can't outsource these. You can't hired away and and have somebody else on your team. Track them if you WANNA be a savvy. Successful business owner. You're going to have to know these numbers in here. They are number. One is revenue revenue is really straightforward. We all know what revenue is. It's the money that comes in the door. Revenues SALES ETCETERA. Everybody follows revenue number two though is gross profit. So let's say that you sell Coffee Cups and you sell this coffee cups for a dollar. You buy them from your supplier for twenty cents. You are left with a gross profit of eighty cents easy enough so revenue on that hypothetical is one dollar. Gross profit is eighty cents all right but as we all know is business owners. There's other costs that go into selling coffee cups you've got rent. You've got shipping. Maybe you have Internet fees. Maybe some employees. Somebody that answers your phone. All those overhead costs. Okay so maybe on a per cup average. That's thirty cents. Thirty Cents Per Cup goes towards overhead. So you sold it for a dollar. You paid twenty cents for the cup. You pay thirty cents an overhead. You're left with fifty cents of net profit so revenue minus gross minus overhead. You're left with net profit the fourth and final number that you have to understand in this is the most critical of all of them is cash. You know one of my favorite sayings is revenue Vanity Prophet is sanity but cash is king. And here's why cash is king caches. The only real number out of all the financials all the financial numbers that you have cash is the only real number. It's the only one that you could actually touch that number in real life. It's cash in the bank in caches. What pays salaries it's what pays rent? It's what pays your vendors. Cash cash is king right in so the reason that that that saying resonates with me revenue is vanity profit is sanity but cash is king is is business owners a lot of times when somebody says hey as your business doing. Oh Yeah we've We doubled revenue this year. We've got this ambitious goal to increase sales thirty percent. And we're on target it's a vanity metric profit is sanity that tells us how efficient the machine is. How much how much does it cost us to generate that revenue that we like to brag about so much but at the end of the day cash is king and as we know that we you know we can have profit on the books but we may not have the cash in the bank yet but cash is? What really pays the bills? It's the thing that's going to be business for it. So if you're a business owner if you're a pre revenue startup if you're Mitt here company doing maybe twenty thirty forty fifty million a year. Or if you're a big executive of a publicly traded company four numbers that you must know revenue gross profit that profiting cash thinks everybody have a great day? Thank you for listening. If you enjoyed this podcast. You'll love our entrepreneurial. Newsletter sign up at journey to one hundred million dot com.

business owner Michael King KFC Eric J Olson executive PNL CEO Mitt one hundred million dollars thirty percent one dollar
73 How To Gain Control of Your Money with Rachel Cruze

RISE Podcast

40:51 min | 1 year ago

73 How To Gain Control of Your Money with Rachel Cruze

"Welcome to the rise podcast. I'm Rachel Hollis. And I built a multi-million dollar media company with a high school diploma and Google search bar each week. We'll be sharing tangible direct advice or inspiring interviews with the same intention. These are the tools to change your life. Right sister. I am so excited to have you on podcast today. I have had the distinct pleasure to have dinner with you before. And I feel like this is a chance for the audience to get some of that awesome. Wisdom girl time that I got to have. So if they have never heard of you, which seems impossible, but if that were true, can you please tell our listeners who you are what you do in. How got there? Yes. Absolutely. Well, thanks, Rachel for having me on. No, it's so fun to be able to work together and do this. I appreciate it's. So I am Rachel Cruze. And I'm a financial experts in the personal finance space, and I travel and rights and speak and have a YouTube show and do content all around personal finance specifically, helping people gain control of their money everything from budgeting and getting out of debt to even talking about insurance and investing and taxes like. Very very tactical, but also the high level of really helping people gain control of this part of their life. That usually is a very stressful point for people, which is their money. And I love really setting that foundation in that table for people and giving them a plan, and I grew up as Dave Ramsey's daughter. So that was kind of my intro into going to be the question. It was like, and how do you know this information? Yeah, that's right. But yes, it's funny though, because people just assume growing up as Dave Ramsey's kid that we had like mutual funds parties like. In the summer like all this stuff and really growing up mom and dad were very normal. When it comes to parenting in that sense. But they did teach us how money works since. I really grew up with this philosophy kind of this financial bubble of learning that debt is a four letter word like you just never borrow money. You always save up and pay for things as kids, for instance. We were never given an allowance. We were always on commission. So you work at work. You don't get paid. And so really like this is like the environment. I grew up in and so when I graduated from high school and went off to college is when I realized that not everyone had these tools in their tool belt, if you will when it comes to money because all my peers were getting into student loan debt, and they they had they don't even know how to budget they were getting into credit card debt and all of this at eighteen nineteen years old. And that's really when I realized the need for this message. And so when I graduated from college. That's when I decided, okay. This is what I want to do with my life. And so my message started out relief for high school students in college students. And now, it's gravitated. I guess followed me if you will through my seasons of life. Now that I'm married I have two kids and a working mom. And so a lot of my content is around that as well. So it's it's been really a crazy journey over the done it for about nine years now fulltime, and it's just been a dream. I mean, it's so fun. I love it sou-. What if someone's listening to this? And I feel like I would have been this person. Like, yeah, that's a good idea at all. But I don't have any money or, but I'm deeply in debt or like if you're vaguely unsure about how to even get started. What is the advice that you give people the number one thing you must do? And it's the number one mistake people make is that they're just not intentional with their money. Because a lot of people don't answer in that kind of tone or that pursue. Effective. A lot of people have no idea where their money goes. They don't know how much debt they have some people don't even know really how much they make after taxes. I mean, they just don't know the state of their finances. And so it's really hard to be purposeful with your money when you're living. It's almost a sense of denial. Right. Like, you're you're just not engaging in this. Because either you're fearful or you're apathetic, whatever the reason is and so the budgets is the number one key of getting on track. And that is doing it every month listing out all of your expenses and the goal would be for your income before the month begins. You're looking at the next month. They made this is what I'm going to make in the following month. And if you're on commission or your or your income fluctuates, you kind of have to have a guesstimate it's kind of like, okay. This is what I think we're gonna make and then you can make changes throughout the month of that. If that number is off, but you take that income for the month, minus all of your expenses, and you get it to equals zero. So every dollar is assigned to a category. And that's kind of your springboard of starting. Off because what that's going to do is reveal a lot of your spending habits where you're spending money if you're not saving money or giving money you're gonna see that. And so it's really getting in control. And so once you do that for a few months, maybe a rough few months if you've never done that before. But after doing it for about three months, you're going to start to gain control. And then that's really where your eyes are open. You're like, wow. Okay. And then you figure out, okay. How much debt do I have? How can I start paying this off and really getting to the place where you are not only debt free, but you have savings and all of that. So we have a whole we call it the baby steps around Ramsey solutions. So it's more core content. You can find all of that on Rachel Cruze dot com. Or daveramsey dot com. I love I love this video at starting starting with way said at the beginning of the first step is getting out of denial because I think a hundred percent in my family. We were not race. I was not a Ramsey child were not race to be a to be conscious of money all your door apart, by the way, very normal. Yeah. In probably because it was something we struggled so much right naturally that it was one of like, let's not look over there. We just see how bad it is. And I think I definitely walked into marriage. Like thank God. I'm married to someone who is Harry fiscally responsible because I was just like why I don't know. Do I haven't asked do, you know, let the credit card to the target in hope that I've got enough to cover these throw pillows trauma. So I loved the idea of getting getting honest with yourself never gonna get to the place. You wanna be if you can't start there? Yeah. And I would say to Rachel that. You know, your personality actually is a lot like mine like I am a free spirit. I am a spender naturally like you're either naturally a saver or spender. And I'm spend are I I'm not great at details. And so like what you just described them. Like that literally would have been me if I hadn't had these like foundational principles growing up. But just some encouragement if that is you if you relate to Rachel and myself in that weather, like, no, I'm spend their I love to spend my love to live in the moment. You can still learn these tools and still be who you are like I still always enjoy spending money. I've learned how to save it. And I've made that a habit in my life. But I still get this thrill of going to target and be like, but I know what I can spend right in the budget. It's like I have categories and I'm like, okay. I I'm spending in control, but I still love I literally was just on. I think banana Republic. Com right before we got on and I'm like dying my husband closed because he doesn't like to shop. And I love it. I'm like, so fun. So you could still enjoy life, but be in control of your money at the same time. What I find so interesting about money is I have owned my company for gosh. Over a decade and actually doing copy it's on the new book right now. So this is fresh in my mind, but I talk about the idea of having this limiting beliefs that I'm bad at math and therefore bad at money, and I hate to admit it because this is embarrassing, but for years and years as a business owner amnesty this because so many women who listen to this podcast on your own businesses. For years in that space. I didn't really know the finances of my company at all. Like, my attitude was do we have enough to cover payroll? Do we have enough to pay bills? Great than we're doing good. Our clients paying on time. Awesome. I couldn't ever truly scale, and I couldn't ever cut expenses because I was too afraid to dig in to what the financials were. And I was too afraid to do it because I didn't understand it. And I think a lot of women are in that place, either with personal finances or business finances. They know that they don't know. And so they're too afraid to even try and the crazy thing is what would actually give you more confidence is just to admit that you don't know and to dig into the how how do I learn this what book can read what podcasts can I listen to. But you're so caught up in the fear of what's going to happen for not knowing that you don't just like live into that spe army. It was like if I admit that I don't understand a balance she that. I don't know the difference between a balance sheet in a PL than I shouldn't be allowed to run this company. So I had a lot of shame around that you mind that people out of shame around personal finances as well. Oh, absolutely. Because not only is it an intimidating part of your life. Just what you're explaining right? I mean, the business side there's taxes and PNL's bright all of that. Which is intimidating but on the personal finance side. There's elements of that that people don't even wanna get near because they don't understand. They don't ask questions because they don't wanna look dumb. And what's so interesting about personal finance, which is very common, even with your business finances. But it is so much about your behavior. And it's really not a lot about head knowledge because the to really succeed in your personal finances. You don't need to know ton. But you really don't like all of us know, if we don't have the money, we probably shouldn't buy it. Like, we probably should be saving. Right. Like these are. Basic common principles that are so easy to understand. But it is so hard to do. And so what happens is we stick in this in we keep doing the same mistakes over and over again because we don't want to change because the change is uncomfortable and to say, okay, I'm gonna make a change. And I'm going to try to live on a budget because the budget really when you look at it. It's it's fifth grade math. I mean, it's income minus expenses equals zero. And so that the math of it is not that difficult, but doing it and actually putting it on paper and seeing it. That's the scary part of the behavior that is so hard to change. But once you change it, and you get over that uncomfortable feeling it's amazing the progress, and how quickly you will see progress because you actually decided to care, and I think a lot of people that are in denial when it comes to their money. A lot of my encouragement is is usually your situation's, probably probably not as bad as you think. It is the unknown is what is scary. It's all these numbers in your head. Sphere of not wanting to open up the bills or log into your Bank account that fear is usually most of the time greater than your reality. And and once you get it and see it and take the scary monster, you know, like open the open the closet door. And and and really look at the monster in the face and say, okay, I'm going to do this. You come out of that usually saying, okay now feels possible what seemed impossible now feel so doable? Because again, you you put things out there, and you actually are living in your reality. Instead of this make believe world. So how do you think that the community that we find ourselves in or the friends that we have especially when we're younger how much do their attitudes towards money affect how we spend our money? Oh, I think astronomically I mean who you hang around with. I really believe is who you become because you start picking up on habits, and if your friends don't care about money, right? And they don't care to know. Oh, I'm going deeply in dead. I'm just wanting to go on this great vacation. I just wanna go out to eat all the time. Oh, don't worry about it. That lifestyle is going to make you if you're in contrast without say, okay, I have to say no to myself because I don't have the money to do those things and you start comparing your life and your lifestyle to others when your principles and your values are not lining up. And that's not to say that, you know, I don't have friends that I have a lot of friends that do money very differently, but it would be very very difficult to to win financially and really against stick to a budget starts sacrificing your lifestyle to get out of debt. And do these things when your friends don't really care as much and I find about two out of three women. I talked to majority of their friends don't think that debt is a big deal, and they don't wanna budget because that doesn't sound fun that sounds restricting and they wanna live in the moment. And so a lot of people that I talked to their friends and even family don't get it. So I would say at least find a person, even hopefully if you're married, it's your spouse or a good girlfriends or someone that is good with money. And how's your value system to? Talk to because again, it's going to be really hard. If you're isolated to do these things when your friends are doing the opposite. If you will. And I wish I knew the quote where tower which ended the stat off the top of my head, and I don't, but there was a recent study done by millionaires. And they talk about that millionaire show that their friends are within like twenty percents of their income level or something like that. And and it's because not because just rich people hang out with rich people, but they wanna be around people that that work, you know, work hard there onto preneurs they they do things that make that that they win in life. If you will, and that's who they're attracted to, and that's who they ended up being friends with and that's what I choose to spend time with because we know our time is so limited. And if you're if you're doing, you know, if you're if you run your business, and you have a husband, and you have kids, and it's like all this stuff is going on your time is limited, and you have to be very selective of who you hang out with. And so you start to see your value system lining up with other people's values system. And that's when you I. Connect and have even a better friendship. Yeah. Yeah. I think it's it's funny. The first time that I got to meet you of having dinner with you and Christy Wright and check him at the end of the night. And I think we maybe three of split it. And I remember. So Barras still, but like you put down a debit card your without a debit card of hypothetic credit card. I was like oh my gosh. So mortifying 'cause I I was like oh look at them like walking the walk and talking the talk over here giving by MasterCard. Judge rachel. No, not at all. But I'm just like, oh my gosh. This somebody things I really not just saying this. I think you know, what like a super murdered how much I love your dad like what I learned business from entreleadership and all of the conferences in such big fan, but being immersed in in the culture of Ramsey is what made me start to question like just even being on credit cards because we are an interesting, we're interesting like way of thinking, which you guys will like your soda 'cause I told you know, why we have always will John credit hearts always. And we pay them off in full at the end of every month. But that's just always done things. I remember saying that you, and I was like because we've really good credit, and you like, but why would you need credit if you have money like it never really would never occur to me to pay for something with the data car? But the ID note it wouldn't. And I need to have like. Oh, yes. But I am. Hey, this is. You guys to you're gonna laugh at me. But we bought our office when we move to Texas in cash, which we have never done more than Dan is the influence of you guys. One hundred percent like we are not supposed to be a debt like Rachel would not want this our lives so put but really it is who you are surrounding yourself with energy, slime, courage. Does her listening like I get it? Not everyone gets to go to dinner with Ramsey, but a follow all of y'all on social media. And I feel like that's a great liquor. You fall. I'm pretty sure it's your imprint sure it's at daveramsey. But the basically all it is people who are getting out of debt of Jansa lovey mammoths. So great. Yes, it's so inspiring. So it'll be like I paid off thirty thousand dollars in student loans in a year where I paid off or how we own our house in our cars, just that these people were celebrating getting out of debt, and I don't even have soon love, but I'm just like. So if you can't hang out with people were like a really encourage you to consume it in your media. Yes. Oh, absolutely. Because again, and I think our social media accounts. It's a great point how much that influences so much of your way of thinking and your expectation of life like I had to stop following a bunch of fashion bloggers because I'll my whole Instagram feed were all these beautiful women with these amazing clothes, and I started to be so, you know, started to seep in this discontentment, and this whole idea of, oh, if I could just have that I'd be happy and that kind of spiral and after looking at these things over and over again, I'm like what am I doing like, I know in my head the truth. And they're no that this is so silly. And I'm like, you know, what it's not worth me sitting there scrolling and seeing this day in and day out. So I did I am followed a bunch of them. Not because I'm mad at fashion bloggers by any means, I still follow a few. But I'm like, this is all I'm looking at in my spare time, and I'm like, you know, it's just not worth it. And so being careful again, even on social media who you're following. Because. It's so easy to compare your life to other people's highlight reel and the best parts of their life or being shown in the most best perfect way. And I'm like, you know, makes your life feel so insignificant and not cool. Really when it comes down to it. And so I'm always like, okay. Rachel be prepared as opened up Instagram. Even just like you have to remember the reality of what's going on. All right. We're gonna take a quick break to tell you a little bit of something that we have been working on at the Hollis co stick listen. Start today journals? That's right. Our daily practice of gratitude and goal setting wrapped in a beautiful design small batch. It's out for the second wave, but we're already sold out of two of the three covers there's just a single one left, and I can tell you as a person who's using it on an everyday basis. It is a massive difference maker in grounding myself in gratitude and setting me up to chase a big goal every day. Check it out at the Hollis co dot com. I'm super curious about what it feels like to have built a family business at the level that you guys have built it like what age were you? When the company was started because we're you were you born yet. Or is it so old that it it was before your time? No, it was right after I was born so mom and dad filed bankruptcy, actually, the euro was born. So dad was doing real estate in. And I was born in April in filed bankruptcy in September of that year. And so out of that whole part of their story dad really dug into what the bible has to say about money. What common sense has to say about money because he was like have all these financial degrees after my name, and I felt for bankruptcy like what is going on? And so really getting to the heart of what makes you win financially and everything we talked about, right? These basic common sense principles. But putting them into practice is what's difficult. And so he started teaching on these things I think like at a Sunday school like at our church like mean, it was like super like. You know, basic level super low key. And then slowly. But surely there was a radio station in Nashville that was actually in bankruptcy, which is fun. And so they had like a few free hours. And he was like, well, I'll get on and, you know, talk about money, and then kinda from there like wrote a book, and so it was a very very gradual process if you will. And so all of that. I mean, I was you know, two three years old when a bunch of that started happening with the radio and all of that. And so I did grow up with like, our shipping department was in our living room for few years like my sister, and I would stuff envelopes and stuff books and invalids helped ship things out put the labels on the front of packages and all of that. And then as it grew. We were very much still a part of it. I mean like we would travel to events on the weekends and work the back book tables. I remember I was fourteen. And my sister was sixteen and dad set us down after school one day. And he was like, okay girls, you'll appreciate this Rachel, but he was like I want you to open up your own business, and you can. Do it together you can do it separately. But I want you to learn how to run a business, and I want you to learn a basic PNL sheet. I want you to learn expenses. I want you to figure out something you can do. And we looked at each other. Like, wait what? No, this is so stupid. Like, you know, and he was like, no, I really want you to do this for a little bit and so- Denise. And I my sister we opened up a snack business at the office. So there were like four different kitchens and the office building at the time. And so we competed with the vending machine prices. And like did the whole I guess, and we caught it your integrity snacks because. Pay for it. And so yeah, so we did that around the office that lasted probably about twelve to eighteen months. It felt like five years for us. But it was like to do in that. And then I started speaking with dad when I was fifteen years old. So I would travel with him and get on stage and pitch our kids products. 'cause we have a whole kids line about how to teach kids about money. And so I would, you know, get up and do this like little ten minute bit and sell those kids products. And then I'd get a cut of whatever sold whatever I sold on the back book table. So I did that through high school. So I was speaking and really immersed myself kind of in that life through the end of high school there, and then in college, I kinda unplugged then I was like I just want to be in college and enjoy it which was totally great mom and dad had zero expectations of us being in the family business. It was really what do we choose to do? And what do we feel called to what excited about and so after college again, my story goes from there? I think already said earlier, but started yet doing all this fulltime. So that's. So all that to say long answer. But from the very beginning, we were a part of it. And again, I do want to stress to people that hear it. Because if you have a business that's running and you have kids number one. I think it is such an amazing environment to grow up when your parents are entrepreneurs. And you get to watch them make decisions and talk to your kids about it. And like really show them the way. But then once they get old enough. Let them make the decision do they choose to continue on in it or do they want to do their own thing because the most miserable. I in my head. The most miserable thing would be in the world to be part of a family business when you're not happy when you're not living in your gifts and your passions and your goal. My dad was doing this. I felt like I had to no-no it has to be your decision to do that. Because that's we've studied a lot of family businesses in the ones that succeed in transition on or the ones that people are in their sweet spot doing what they love so often women, especially who are building small businesses or the SE shop or they're doing direct sales or whatever it is. Have a lot of guilt and shame about wanting to have a business like they feel like I should only want to be a mom like they struggle to what I have to take a little time away from the kids in order to, you know, have a direct sales party or whatever it is. They have a lot of Shane wrapped up in it. And I your house that my especially my two older boys who are eleven and ten at the end of the month. Have watched like me work my butt off. And now a decade end. They're getting to see the fruits of that labor has special. Like, I know that owning this business means that I didn't have the time that a stay at home. Mom gets like I understand that I made that trade off. But the beautiful thing is that my boys do not know a world where a woman cannot build and run a successful meteorite v. They do not know a world where like in their minds like, oh, you just work. You just work really hard. You were really related are. And then you can have. I'm something special for yourself. And I love y'all have that line that everybody says like I'm gonna live in a way tell me your line about live like no one else. So later, you can live and give like no one else. So yeah, I just wanna encourage anyone who's in that space today where you're struggling with. Oh, this business takes me away from children. But yeah, but, but what is the awesome things that they're going to get out of it. Or what are the values that they're gonna learn by washi-, you built something? So that's right. And I take two kids are resilient like they are the it's amazing. What you what your pressure in? What you think in your head in putting that on your kids when they may not even feel that like even growing up dad traveled a ton. I mean at night he was teaching financial peace university are nine week course in person live like three nights a week. I mean, all of that. And I look back on my childhood and Mike, do you know what I remember? I remember going on dates with my dad, and he would pick us up, and I get to dress up in a little dress. And he'd bring me flowers. Hours, and we would do that. And in my head. It was like all the time. We always did that. I think I did that four times he was at every middle school basketball game that I cheered at like like he he did pick the important things in life. And really that's what I remember. I don't have this scarring idea. I only saw my mom. I never saw my dad. No, no, no. Like, it's in my mind. Again, you're there for the important things. If you're able to be and your present when you are there, and you're not on your phone. You're on social meteorite taking him on your with your kids, you're with your kids. And then when you're at work, you're at work, and you work hard and your kids are going to see that. So so so male dad or or mom in that case. I would say your kids are resilience for sure could job I love that. That's good wisdom. That's good wisdom to hear because I feel like that it really is about intention -ality and the quality time. Yes, you have those memories of such coal things in. It's not that it was every day. But it's that when. It happened. It was it was really intentional. How has your business? How has your work changed as you have become a mall it? I'd say definitely it's changed in the sense that I pulled back on travel. So I traveled a ton before kids. So anytime there was a speaking engagement. I mean, I just did it and even in the early days did so many things for free. And I was like just if anyone wanted me I was there and really made those those sacrifices early on which I'm so thankful. I did. Because now that I have the girls I'm able to pick and choose what I do more. So and because of that, I cut my travel basically in half just in these early years, and when I'm pregnant and all of that, it's just miserable to anyways, it'd be on airplane and all of that. So so that part is what shifted I would say the most. But but then at the same time, I think my works exploded, even more since my girls have been here. I mean, I have I've had two books out since them. I started the Rachel Cruze show and YouTube, and I mean. If anything it's exploded on that end, which is so cool. And so yeah. And I think everyone's life looks different. Right. I and you kind of have to pick and choose. And so for me, it's that. But again in the important things is what I try to be ad. And so I've kind of decided all of Melia my three year old all of her. I I really want to be at. So like her first day of preschool, I wanna be there. She had her first day of ballet, she's never taken Ballet's. I put her in ballet because I've always wanted to be a battery in curiously listening. My. Oh, just for a few years. And so I wanted to be there for that. So I was there for that. And so you know, what I mean, there's there's definitely the things that I've chosen to be priorities. But in two months Ballet's can be every Monday, and I won't be there. Someone else it's going to be taking her. And so that's okay. And she's okay with them. She's going to be okay. And so so yeah. So I would say it's it's shifted. I think priorities with travel the most that's the most that's changed for me of pulling back. Some let me ask this too. Because it's it's something that keeps coming up at in. When I'm speaking or traveling or people are asking questions in Email. And so I really wanna be intentional anytime that I have the opportunity to speak to another mom who is working at the level. You are working is talked to me about how you ask for help. Because oh, many women are like, which will have you do it. I'm like or how do you do it by how do you do it? All I'm like, I don't I haven't the any. I have a Lillian vault husband. I haven't assisted. And I know that people, you know, there there are meanings on the internet freak out when you say that because they're like God, you don't love your children. I'm like now get out of here. Nobody's talking to you. Get out of it. But I do think that so many women in media like who who our listeners have heard from most are like actresses and singers. And there is dislike wall of like Wooldridge is really organized wealth. You're like, you know, what get out of here. We know you have three nannies. It's it feels like people are not talking enough about asking for help in so women at home were struggling Dono that they should. So how'd you wouldn't that look like in your life? So I remember talking to Christine Caine, if you know who she has came out of the hill song, she is like amazing. She's like my mentor of like who does this on steroids and has two girls too. So I'm like, I'm always like Christine. What are you doing? How do you do it? And I'm a her telling me, she unashamed. I mean, she was unashamed. She said I outsource what can be outsourced. So good. And so everything from like someone. Does laundry someone even for her? She hates cooking. So her thing is like I pick up dinner or have someone cook cooked meal like I don't do cooking because it's not my thing and said things that can be outsourced outsource them. If you're able to if you're in the financial space, or you know, wherever you are in your story, and in your life, whatever you're able to outsource outsource. You can't outsource hugs. You can't outsource certain things. I mean, there are certain things that as a monger always going to be a mom, and those are things that you wanna be a part of your kids life and talking to them and being in their world knowing them really really, well, and those are things you can't necessarily outsource. And so, but the things you can outsource it. And so that's what I've learned to do. Honestly, I I was a little bit like. Embarrassed. I don't know what the word would be. But like when for instance, like, oh, I hate doing laundry. And I'm like don't ask. Don't ask don't okay with that. I grew up with a mom, and she did everything. And that's not my story. That's not gonna be my life. And so things that grocery shopping our nanny goes grocery shopping. So when I come home, I'm not grocery shopping. I am with my girls. And if I have a house cleaner. I'm just gonna give you all my no. No, I I've said to them they know I have we'll have a fulltime housekeeper. I'm with Rachel I and I had the housekeeper, but I was like I had some deep clean the house. And I just did it once a month because there was still a little bit of that guilty. Like if it's more than once a month that feels over the top should be doing just two weeks ago. My husband's like beg. Can we put can we do it like every other week like it's such a huge gift when we come home and the house is spotless. I was like yes, we can do that. But it was kind of a weird hurdle for me emotionally to be like every other week where I'm going to do that. And I'm like, that's so stupid. Why is it a hurdle for me? No, Rachel like embrace that. Because I don't want to be vacuuming and cleaning my baseboards on a Saturday when I could be with my girls, they can go to the park. And so yeah. So that's my thing outsource which you can outsource and that and I'm great with that. And when I had my second baby. A lot of people said to like ask for help ask for help. And I remember thinking, okay, I will. And I did it so much more with carrot when I had Carolina versus my first one Amelia, and I have. I know it's a better memories with my second as a newborn, but I have such a more relaxing memory of not only knowing what you're doing. You're not a new mom anymore. But but still I'm like, I in a sense, some people call it lazy. But I'm like, I remember laying in bed for two full days and just holding up baby on me on me. And I was like I'm gonna just sit here because this is okay. And I can sit here which is hard for me to do. And I was like minute do it. And so all that to say outsource, which you can outsource and be in the moment with those with those kids when you have those moments for sure, and I would say two things for this is to remember that if you don't it's not necessarily even financial thing. So if you're looking for two hours a week for yourself to just go literally do anything semes- have a breakthrough stay at home. Mommy to see two hours trade with another mall. Hey, I'll give it to hours on Thursday. If you give me two hours on Tuesday like there as if you get creative with how you are asking for the help that it will. Not cost you money. I also think when we were earlier in our marriage. We were like we really wanted to ask her in. We can only afford the decline once a month. Just exactly like you're talking about and we gave up dinners out. So that we could afford that. Because that was more important to us than getting to go to like black Angus. Let's really wanted to be able to just have someone special toilets thri, never I'm at whenever. I'm speaking. I talk about this. I say look I will full time nanny, and I have a fulltime housekeeper. And I I know for a fact that there are women in this room who just thought in their head must be nice and everybody laughs because half the room sought that. And I'm like, but y'all how in the world. Do you think that I could produce at this level by myself? I can't and if I keep that truth from you, if you think that somehow running this company and drawing this much writing these books and raising four kids in keeping my house clean and feeding them great meals. Like if you think that that it's gonna. Stop you from even trying because you're gonna do it. Well, I can't do anything. Rachel jobs are Brennan the world all by ourselves. No, man. We asked for help and little budget away other things so fast in order to be able to afford the help because we don't have family by us. There isn't an option like if for as long as we've had kids we don't have any family around. So you didn't pay for childcare gear a thrice Italian. So if you can get it and you're not accepting to help. But sister come on stop being a martyr ask for a threat. Yup. Of yes. And you know, and I and I find people wanna help right into a good community of people in just like the mom trade off. I love that. And I tell them to do that too. There's other moms out there that are like, yes, please. By your kids will entertain my kid's upstairs, you know, at least at a certain way. And then you can have some time. Why? And then I do the same like people want to be able to help you as well. And so that's that's a big thing to remember. It takes a village. And it's good to be. Ashamed of it. That's good. Right. Gillette? Spoke to me. I. Sooner. In the new book called called ask for help. It's I and I say this in there. I was watching the today show two years ago when there is a very big celebrity who is releasing a very big line of products. And she also has a celebrity husband like they're super famous. They have kids and they asked her alma on busy. Mom, you have all these products. You have all of these businesses. How'd you do it? She smiled and said, I'm just super organized, and I wanted to back my head against the wall because road, I know that that is untrue. I know that at the level that they are operating at they have massive help. But the mom and Ohio. She doesn't know that. And she saw this woman say that. And now she's thinking that she's just not smart enough. Just not organized enough. Just not the she doesn't try hard enough. Now. She's she feels depleted because you are honest, man, I will be the one I'll raise my hand and say girl, I get all the help that I can and you should do. And it'll good. It's so important to because I think like it. What matters is how our kids doing harder doing. 'cause all of these women are beating themselves up because they don't think they're doing things quote, the right way when the reality is like good our kids. They're doing pretty good. They're genuinely good people. I know they have jerky days. But they're genuinely good people. You love each other ever. You know, everyone's doing good look at the evidence of your good work and stop beating yourself up because it didn't look like that person's Instagram feed. That's right. That's right. And I think too in in my kids are still a little young for this my three I'm just now starting to like tap in a little bit more. But it's amazing when you know, your kids on a deep emotional level that's gonna that's gonna be a lot of your saving grace because if you are a working parent, but you don't talk to your kids. You don't know them then that could be the war wounding, right? But even having a working mom, like having a nam said that it doesn't know you. And so being able to sit with your kids, and my parents. I'm thankful because they were a lot like this in my husband grew up with similar parents to that. You're just engaged in how they are in an in trying and again schedules are gonna look different depending on the season, but having dinners together like as many times as we can sit down as a family like we try to do it two to three times a week and just sit together because it's amazing when you just ask a question listen to them. No, they're friends being the part of their worlds that are important in Flint and influence them. And you're going to have a pulse on how they're doing. And so it's it's an again, not to put judgment on other moms. But like the thing that scares me. I even think about like a middle school and high school when the kids just go up to the room shut the door. And you know, nothing about them. You don't know what they're doing? You. Don't know, you don't know their friends. You don't know how they are. That's the scary place for me as a mom like I always want to be in tuned emotionally because that's what I leave for three nights in travel, and I come back. They're not all scarred and freaked out. No, they know that a mom, I love them, and I know them, and so I think that that's a huge part of parenting that again, we're just tapping into something that we've made. A priority. We've always said from the beginning we want to know our kids on a deep level. I love that. And honestly, I feel like the is a meal she three yes, she three. It was not on a ton channel three. No. No, no. But but you can just mentioned right now. Absolutely. Does I think it's about it's knowing your kids, but it's knowing them as individuals. That's right hus- every one of our kids is so different and they need to loved in different ways. And they need to be disciplined in different ways. And it's so important to have that relationship. And I I want to encourage to like when when my kids were very little I really struggled as a mall because I was like a, you know, this is terrible. I said it before. But I'm like, this is not fun for me. I this is you know, they're toddlers, and I don't like it. And it's not an I had so much shame. I thought it was the worst mom ever means. I didn't like toddler stay. And now, I have oldest. Eleven and I love lion. Love it so much because I like having a conversation. I wanna down you about what you're doing. I want they go on business trips with me, we have so much fun. And so I just want to encourage this view who are in a season where you're like, I'm a horrible. I'm pretty sure I'm a horrible mom 'cause I do not like this two year old note, your all. Yes. They are jerk. It is not your fall. And it does get there. So good. So. Yeah. At this like covered every topic. Anyone could ever need your home? All right. Perfect life. Now, the right shakes. Got you. Thank you so much for taking the time and sharing your wisdom, and and your grace and your friendship with me. And with the audience, I know that a there are people who listening you are going to think differently about what they're doing your finances and how they're speaking themselves in how they're taking control and being intentional. So it's really wanna acknowledge you for that. And thank you so much for spending the time with most thank you. Rachel. Thanks for having me on always so fun. So fun to talk to you. We should hang out on more than just this podcast, which means that the next time, you're on Instagram or Facebook or YouTube, be sure and type Rachel Hollis into the search bar and check out all the fun things. We have going on on your favor platform.

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Halving 2020: The Bitcoin Reformation with Tuur Demeester

Messari's Unqualified Opinions

50:35 min | 3 months ago

Halving 2020: The Bitcoin Reformation with Tuur Demeester

"And welcome a very special dishes. Podcast series on the twenty twenty bitcoin having brought to you by our friends at Stanford original Global Crypto Currency Exchange to twenty eleven bit stamps. Been the preferred exchange for serious traders investors everywhere. Trust by over four million customers the top nations. Check out his. They've got some serious professional grade. Trading technology putting matching engine from Nasdaq some Api's ministry and trade you. Their advanced trading interface with live charting deep joined four million traders download the bit stamp from the APP store or Google play or visit bits Tampa net slash pro to get started stamp net slash pro and for its stamp users and got a special sorry. Our twenty five percent off the pro professional grade cryptanalysts toolkit best in class research and dance tools. You Identify your next investments over them. Sorry dot io and use the stamp the get ahead of the curve. Sorry Dot off code stamp that Steve Right in accepts owes Vigo or everyone. Welcome back to this final special episode for the series on Bitcoin. Having my guest today is none other than toured in Easter. He's a bitcoin. Analysts and investor has been around the game for probably longer than anyone else on the research side. I actually heard her for the first time in Las Vegas. In December. Two thousand thirteen was my first. Bitcoin conference I walked in during his presentation. So I can honestly say the tour is the very first person that I heard presents on Bitcoin. Way Back in the day he has lived through now three having happenings since we just had our to fill in this on Friday may fifteenth. And of course the most recent having was May. We're talk all about the having some of the things that tourists looking out for in terms of trends What he thinks about crypto more generally. He's been outspoken on some projects. For sure is still knows bullish on Bitcoin and Generally WANNA get his. Take on how the industry And it's evolution might foreshadow the next phases of development and adoption for for for Bitcoin crypto. More broadly but force tour Why don't we hear directly from you about your path into bitcoin? And and and what made it so sticky for you to get involved As early as you did and then to continue to research write about it and and be thoughtful about it's It's evolution you have been. The short of it is that I was. I was more on an academic path than I was studying the theory of business cycle Peep back in the day as well and also looking at history finance and I just got more more scared about inflation at Systemic risk and so I started leaning more and more tours will. What do I do to protect myself? I need to have some hard money or like learn about that and how that works and so. I did my own investment newsletter. Twenty eleven to twenty thirteen. That was in Dutch so it was like a subscription newsletter later. Eventually I just went fulltime. Bitcoin I made some Some VC investments and the. Yeah I got hit the Speaker Circuit at some point and haven't looked back since and and into what year was this that you started writing about it. Twenty seven twenty twelve. I started learning about Bitcoin April twenty eleven. And then I felt this was ability because I was just about to launch my my financial newsletter to do a good job at reporting on it in a not like cell snake oils so it was kind of a lucky circumstance that I have the time to really research it and wrote about it. Pretty Alex First. Half twenty eleven but it was like it was coming down from the big bubble. At the time there was a rally to thirty dollars which is crazy because it had barely broken one dollar like months before I kinda discovery Bitcoin on the downslope of that of that oval Early Twenty twelve is I start recommending it to my my subscribers. And what about Bitcoin at the time made it recommendation worthy. Because there were no services to really procure this easily basically had to buy it or Procured through either mocks or maybe bit instant but there was a period of time. There may be right around When when it sounds like you recommended this where for Western audience it was. It was pretty accessible moross. New like bid stamped only came online. Maybe like Summer Twenty Eleven. So yeah it was like. I really like wrack my brain around. How do I recommend people store this stuff like I didn't? I couldn't recommend any of the exchanges. So yeah I I remember writing this manually. No actually I recorded a tutorial video on you know you go to a paper Wallet Dot Com and then you go off line. Then you run the program in your browser. And then it'll generated a text private key and then printed off and then finally send coins to that but then it's just it was just so hokey in in those kind of the most the easiest way to do it back then but so going back to your question I forget Reminding just how how logistically were people able to acquire it right to custody and create the private key but how you know by Bitcoin. First of all why and how the why the why to me was like the first skepticism that I had was exactly about the scarcity and then once was convinced that it was actually scared. That became the biggest. Selling point is like Oh so this is digital goals and then it's like if it really is digital golden and like in in twenty ten Forms he he actually described. Bitcoin is like you know. Imagine imagine a gray medal that has like no no application whatsoever except you can send it over the Internet. You can send it digitally on a wire and like what price with that metal atom but that's literally he's describing digital goals so that became how I would kind of quote unquote sell it to my audience and myself. It's like okay will eventually. We're going to have inflation eventually. We'll have serious problems in the economy. And so what you want. Is You want to have a liquid assets that has load already risk and that is not very correlate with anything else and so that's big has become so I still. That's why I wasn't worried about all. I can't buy coffee with bitcoin right. You could barely anything at the time and even today. It's pretty contested as a payment as a payment rails. It's not very attractive. Still how much of the That I having narrative was baked into that these because if you're recommending this early two thousand twelve the first half programmatic. Lavigne's coming up later in the year did you Did you think at all about the having events back then or was it just part of the kind of programmatic or out rhythmic central banking function of Bitcoin? That made it interesting because I can imagine at that time. Your pre I having that's all it's an unknown also white. Y2k Bug and you think it could be a positive catalyst but you're not certain is going to go off without a hitch. Yeah To me the first appeal was just twenty million cap like that was just wild. Like that's just amazing and then like yeah gradually like learning. There's this thing called the having 'em it's coming up and and they were I'd say like that's been changing over time. Is that those quite a lot of fear that maybe something might go wrong and like you know who knows we might have to fix a bug or you know it's it is like you say it was kind of like a. Y2k moment where Oh my God? What are the computers? Go from nineteen ninety nine to two thousand like something good you know and nothing happened so this was the same and then I felt like again. Having after bad there was again like some fearmongering it was. I think the second having was the bureau's not so much that bitcoin would have problem per se as the protocol but it was about the mining. Death spiral like Oh my God like minors. They'RE GONNA LOSE HALF THEIR INCOME. We that was when we had just come off Wider that's after the kind of professionalization of the mining sectors that would be the first wheel tests So Yeah I. I guess you can almost categorize Three percents fears right. I having it was primarily about this two Y2K element. It's an unknown known unknown. But it's a a a box it has to be checked in terms of a bitcoin. Maturity is a protocol the second you could say it was all about the mining death spiral and maybe the third most recently. It's about how sustainable or how. Secure Bitcoin the network is as the percentage of senior edge falls below two percent and then ultimately falls below one percent and there there needs to be some type of femoral develops around the up mining death spiral in second having this was twenty. Twenty sixteen was largely overdone We saw brief dip and correction and then Rate inexorably marched forward as it has basically since inception. We're probably a little bit of that again today. But I'm curious how you think about This particular having and whether does present any unique new security threats that need to be de risked much like the first two cycles. Unity Wrist The unknown protocol level elements in the mining elements. Yeah I mean one other fear that came with the second having twenty sixteen they kind of go hand in hand with the mining death. Spiral fear was the this power concentration. Like oh my God like one. One company gets access to almost all the mining You know to some extent that became true. Like Bit. Main really you know. Of course there were many M- several mining pools but was providing the chips that everyone so they had this unprecedented power in the market. And that of course makes people fearful -biotics percent attack and things like that so but yet for today. I don't see any of those concerns. The inflation rate was already low. I think we went from six percent to three percent now or something like that. Two and a half percent maybe our Ford For the two. It's even it's even lower. I mean the big milestone now is it's below the feds target inflation rate and below The actual mining gold mining inflation rate. Not Not quite almost. Were very close but gold is a black box. Bitcoin is a little bit more predictable. Right I am sure your data as more up to date than mine. Endoume so yen terms of concerns. I mean the death spiral is not gonNA happen. I mean the the it's self-correcting when the all of a sudden a lot of minors plug out their machines which they have done the hash rate goes down and then two weeks later. It gets adjusted automatically. you know it's kind of been all of a sudden there's a new providence that have for minors to To go in again because then they do get some more awards Yes I just. Don't see anything other than that. It's it's validating that bitcoin is just a like a perfect little clock and it just keeps ticking and we can rely on it and it's such a contrast with the this craziness in in the central banking world where it's just like all bets are off. Who knows what's next so yeah I don't I don't really have a law in terms of like. Oh what Maybe the discussion about. Is it priced or not? Like market efficiencies some people are saying that the derivatives market in. Bitcoin is not very well developed yet. And so that would explain why you know the there just wasn't a lot of opportunity for futures traders to to signal like look. This is a thing in. It's GonNa have an impact and so maybe we'll just have the real effect of the actual scarcity driving prices up in bitcoin rather than like you know the news. That does the trick for everyone. What are the drivers now? You you kind of tease this a little bit. When you said it never really bothered me that. You can't buy a cup of coffee with bitcoin. I almost felt like that was an important Milestone in bitcoin evolution right it. It's almost like the price of. Bitcoin reflected the stay the phase of adoption. Which sounds obvious in hindsight but but what I mean by. That is the number of bitcoins available at the. The size of the total market cap was balanced in such a way that at the point in time where you needed bitcoin to be used for experimental transactions cups of Coffee Right Sending airdrops someone overseas paying for conference. It was it was in the double digits or the single digits the low triple digits which was accessible enough for most people to buy their first. Bitcoin fast forward. You know through the next cycle. It's hardened there's a broad enough community and yes. It's much more expensive for a single bitcoin. Now there's a memo. You can buy. Fractions of bitcoin stack. Sats is like the new retail focused to onboard. But at the same time it is now expensive enough At a at a whole bitcoin level where it's starting to look more a value play for institutional investors and potentially central banks big asset managers. Because it's got this like Berkshire hathaway effect where the price at ten thousand almost makes it look more like digital goals than the price at at one hundred when it was more valuable for kind of trade and you know yes. Silk Road Gambling APPS and that's all narrative but but I'm curious what you think about that breakdown of of the narrative cycles of Bitcoin and maybe more importantly you know what about your investment thesis has changed over the course of the last eight years. Now Yeah so in terms of the phases. The Way I've looked at bitcoin. Is that from twenty twenty nine two thousand nine to two thousand thirteen. That was what I call the discovery phase. Which is just like you were saying experimentation using bitcoin for all kinds of silly things and gambling in. It's great because it allows you to discover what this thing does. It's like it's all a big test night in a way and then I would say from twenty thirteen once we had the the ACC mining chips and the hardware wallets is we kind of went into this infrastructure phase or really like some some more capital became available to really invest in in building the foundation for eventually the Internet of money or that kind of thing and so then I feel like we're still in infrastructure as like seven years later. It's still that even like the announcement of the JP Morgan now becoming the bank for coin base and and Jimmy to me that fits in there. It's all about building the rails and it's both legal rails it's The financial like bridges between the financial industry in Bitcoin. A lot of technological rails with this The protocol stack of Bitcoin. Where it's very clear by now all his experimentation that you can't just scale of blockchain boosting the block size that is GonNa be very cumbersome for people to run their own notes. And that's what Ben Undermines the decentralisation. So you don't want that you WANNA be able to run a blockchain phone literally full nodes. Ideally I would say so so then the answer is really that in order to scale you have to have several layers to your protocol stack just like with the Internet that became a stack of protocols not just TCP Ip but also the other ones on top and so in Bitcoin. That's the lightning that were I would can liquid also as part of the protocol stag and in some way you could. You could even argue that. The bitcoin exchanges had become like a second layer Because you'll be able to send in a way. It synthesized bitcoins from one. Exchange to the other you can. You can send dollar soon. Exchange an own claim on. Bitcoin never really cashed it out. So they're in a way that's kind of that's kind of like a 'cause you're not gonNA pay transaction fees on your purchase So anyway so to me. That is kind of what what the story is about. Kind of slowly growing into a mature works protocol. Stacks so that I would say twenty. Mike. Guess was between twenty. Twenty and twenty twenty two is the deployment phase where we really go mainstream and people can start using it for many different purposes. And so yeah. I agree with you that right now. It's it's It's institutions that are interested in and it's kind of like a land grab phase. Were you know this is GonNa get big and you know? This is not correlated with Financial System. That's all kinds of trouble You know it's really scared. So let's just kind of you know. Stick our claim and then and then see what's going to be built on top of later so to me. The the the price right now is driven mostly by institutions. I think retail still not paying attention. I probably only come back once where were close to twenty thousand or even beyond twenty thousand dollars. Bitcoin They've just been shaken like they. There's lots of despondency. Whoever stayed invested? I'm probably got Burns in between twenty eighteen and now and so they're kind of like laugh status the family dinner table now. And I think that's GonNa. Yeah that's GonNa keep people away for a while still but meanwhile it's billionaires family offices it's it's large institutions that are kind of taking a n. I think Paul Tudor Jones signaled very well like his position is to percents. It's perfect it's like a you know either. A call option or an insurance policy that he's taken out like. Oh what if something goes wrong with the rest and Bitcoin is done at a out there. There's a couple of interesting things about the the having so Dan. At the former headed circle trade navy had the best line in the series so far where he said you know yes. It's been a rocket ship straight up right. It doesn't matter what time period you're looking at. You know every everything looks like. It's positively correlated because bitcoin is done historically well on just an unprecedented scale in terms of investment returns. But the the thing that I think clouds the narrative around the that having and whether it has any impact on price performance is a is a sense that there's always been a key macro driver outside of the having In in these different cycles the first one I would argue and this is where I got my first exposure to to bitcoin. Least Lebel learning about it was that was around. The sovereign debt crises in the Arizona Crisis in twenty eleven and the S&P downgraded US debt and And and you know just generally in that phase there was enough true believers and hobbyists. That you'd brute force the infrastructure into existence that made it accessible to kind of early early investors the second wave you know arguably it was around the ice. Yo craze right. It was actually less about bitcoin. Yes there was the resolution of the kind of upscaling saga. And segue to axe and New York remained Blah Blah bite But but really. The beginning that that super cycle was was more about theory. And and all the you know the fast money that that was flowing into the system route. Ics it really wasn't until and then kind of going into this cycle we've got the virus so You have people thinking about all hard money and all store of value investments as safe plays right now right. If you're talking about property you're talking about gold you're talking about you know other physical goods and Bitcoin for the first time seems to be You know kind of lumped into that so having or no. I would think that this next cycle is going to be more about response to corona virus and weather. Bitcoin is a part of the solution for states for institutions for for individuals. How have you how you thought about this or have you tried to quantify this in your research yet to me? I mean in a way I think the the to flow model kind of plays into the having a lot where it seems like that. The you know the Fair Value. Bitcoin all of a sudden jumps after the supply gets gets cut down and then people who are critical of that model. Say like Whoa. You know my motivation to buy was not that. There's a having my motivation was just. There's a cap twenty one million binds. Scarcely I don't care when when the cuts happen and so yeah I I think the main drivers are indeed you know Cova da now liquidity and debt crisis that has come with it and so in terms of like Look Bitcoin had a value. It's I we could apiece in two thousand nineteen about a different valuation approaches and to me what makes most sense. Does that You WanNa look at what the people are doing and feeling who have been holding bitcoin for a long time and the and the reason I say this is that in a way they're they're the buyers and sellers of last resort the of course we don't have a central bank but like for lack of bad while you look at the Wales because they're going to be the ones that can fundamentally drive the market and also they have the buying power to buy dips and and so they're confident matters a lot and With gold you can imagine trying to trying to figure out what goal whales are doing. It's very very hard because we know if only we had ledger where we could see. Even if we couldn't identify who it was at least if old gold was being sold or on. We don't have that. But we do with the blockchain and so you can look at when old coins are moving. And how much are they moving? And then Kinda. We filter out the noise. Because a lot of activity on the blockchain may be like a traitor who just moves in and out of bitcoin every week even if he has a large volume that's not similarly mean much for the where the mindset of the large holders are so You know one measures that I like is the the Bitcoin Hodler net position change has basically. Kinda like it's it's a little bit like insider trading like you can you can just with publicly traded stocks you can see are the insiders buying or selling and that's an important signal like do. They have confidence and so in Bitcoin. I don't see you know Except for the end of twenty nineteen. It was this when we broke down from six thousand there was a bit of a Blip. Where like some long-term holders did sell But other than that we've just seen steady accumulation among Wales. So that's what they're actually doing is that they're holding. They're not they're not dishoarding. They're not selling at least based on what we can see on the blockchain and then the other Kind of valuation approach that I like is The net unrealized profit loss. So that it's a bit of a mouthful but would basically means is that you look at all the bitcoins. That are there on the ledger. And then you look. When when did they move the last time? And so for every bitcoin. You're gonNA look like what was the price when it lasts moves. What was its price last? Move and you put all those together and then you can compare the current market cap which is all the coins in circulation times the current price with that kind of adjusted market cap which is like literally when everybody probably bought and so comparing those two you can see is Mr Market as a whole is he a looking at paper prophets or paper losses in dollar terms. Does that make sense? It one hundred percent does and and so we include this dad. on I'm sorry in quite metrics has done to work here as well. Basically market value to realize value realize value being when these when these different transaction output move and change over taking the time stamp price at the last movement. Thanks to our sponsor bits making a special having series possible it stamps. The original global crypto exchange. Were proud to be celebrating their third. Bitcoin having doesn't get much more than that. So twenty seven stance preferred exchange for serious traders investors worldwide of four million customers including top financial institutions. They've got some serious training tech matching from Nasdaq. Sap is in the industry trade view. Their advanced training interface live charting and deep analytical tools available web mobile so you can join the former on bit stamp downloading their out the APP store. Google play or go to stamp nut slash pro to get started and a reminder for users SARS offering twenty five percent off of Missouri pro are professional analytics tool kit with best in class research in advanced tools that help identify your next investments using Promo Code. Bit Stamp as started. I'll offer code bit stabbed. Get ahead of CRYPTO curve. What's interesting is every single. Time historically only been a few instances of this but every single time that the current market value has fallen below the realized value based on on Net. The holder base was underwater current prices. There's been a sharp out so you know that that one That that ratio of one seems to be a bit of a magic number for predicting market bottoms and it makes at least a little bit of intuitive sense. Because psychologically speaking most investors hate selling their losers right. They're hoping that it's going to come back up and they'll be made whole so it. Kinda does form this lower bound for the true believers and the folks that are just going to help with the bottom end because at some point it doesn't make sense for them to to sell thirty down in eighty five percent peak to trough. Then you know was the other fifteen percent. Let's just hold it in. And and like ride this thing out in. It has a ripple effect on the rest of the holder base. It's A. It's a really strong psychological effects that like that's one of the main buying season. All markets is that like you said investors hate to sell their losers and so in a way they hold on too long even if they can't afford it really and then when they're forced to sell you get this like puke phase like the real capitulation. And that's what you can see in that unrealized. Pnl is that like. Yeah you see clear puke phase in early twenty fifteen and then again. And that's what like you said when the when the realized cab goes under the current market cap again. We saw that in January. Twenty nineteen and actually Early this year. We saw a very very briefly that bitcoin did go under Like that value went negative again so all of a sudden but of course it was so brief N based on the stat. I talked about before. Like what are the whales actually doing the wheels or just sitting tight like they didn't care but sentiment wise? It did kind of like hurt some people that like. Oh my God. I'm like looking at negative values so what that means to me is shake out of it like it just shook out the weekends and right now we're back in sentiment wise. We're back pretty optimistic. Like it's like people are looking at some moderate profits right now on bitcoin and unlike combined with everything that's going on. I don't see because what you want to look for his exuberance. Like you WANNA in that that measure you WanNa look at are we at art is the average investor like to Original investment like that. That is kind of like more a sign of exuberance and by the way if anyone is listening to this and they're into data and like maybe you guys at Massari. At some point I would love to see the The Bitcoin net unrealized. Pnl expressed in gold. 'cause at some point it won't really matter that we're looking at like two hundred percent profit in dollar terms because they'll be inflation if you have thirty fifty percent annual inflation. It won't be that impressive. But if you have like two x prophets in gold express will then maybe bitcoin is a bit overvalued anyway but but so yeah right now? Valley like cinnamon is very very healthy if anything investors still limited scared's rather than exuberance the go everybody's looking forward to the next puke phase as you call it being from one hundred fifty thousand down to thirty thousand when when again at thirty thousand which is three times where we are right now. Every major financial publication will read about the demise of bitcoin because eighty percent of obituaries. For sure. Do you have a. Do you have a price outlook? I know most people at Math but you mentioned Dr Flow and obviously you've been thoughtful about valuation approaches One that I'm not sure if maybe taking a look at we talked. Paul Tudor Jones. What is the impact of having hedge funds as an asset class allocate fifty basis points or one point or or or or two points of their portfolios into bitcoin right What does that mean for the market? Move because it's not it's much more than one to one right so one one dollars net inflows equals much more than one one dollars added market cap because there is you know if you think about this as an orderbook there are certain holders whose ask is much much higher than it is right now right like my ask is Is Not going to be priced under the orderbook and many others are the same. So if you if you think about you know. Billions of dollars of institutional flows in to Bitcoin in particular. That's GonNa have just an enormous impact on the price but it's much much harder to move the price than it was in in twenty seventeen because the markets more efficient you've got some derivative infrastructure and and. Y- generally speaking. The retail market is not nearly as much Dry powder to to to move. The needle is the institutional base. Where have you done that analysis number one and and and what are your general thoughts on magnitude? Yeah I put together this piece. Which maybe that's the presentation might has seen in two thousand thirteen Which some projections of at the time. Bitcoin was like one hundred dollars and so they were like these. What if questions like okay? Like what if? Bitcoin grows to one percent of the gold all the gold in the world or like what with Hedge Fund invest one percent of their. You know their A. Um Asset management into bitcoin. What could conceivably be the BITCOIN PRICE? Of course these super rough estimates but I think for it was like if hedge funds move one percent of their assets in Bitcoin at any to look at it but I thought it was like forty thousand dollars coin or something like that. These are really valid analysis to look at potential sources of demands and And so it's happening I don't I think said The macro stories just there and it all fits in right. Now of course is more directionally driven hedge funds. They're looking into it but in terms of like where that could bring us for the price. I wouldn't be surprised if this cycle this bull market. Which now we're back in a bull market I think you know for sure. Three four thousand dollars was the bottom. I don't think we'll go below six thousand again I mean I think the price target of like fifty thousand dollars is not not insane at all especially given just how how crazy the money printing as I would even say like between fifty and one hundred thousand and ended. The question is more. Like what is the dollar going to be worth once? We're at hundred thousand dollars bitcoin. So like you know if a bicycle costs instead of up. Two hundred dollars thousand dollars. We have to discount for that. At a certain price of bitcoin the the dollar equivalent becomes the price of of. Dick could be infants so I've I've said that Bitcoin is is either going to be worth zero or it'll be worth a million dollars. Billion dollars of trillion dollars doesn't really matter because at some market cap. It means if bitcoin has gotten so big that is more dominant than Sir. Fiat currencies right and reserve currencies show. I'm curious you've been bullish for so long. You've been a constant in the industry for so long. What if anything keeps you up at night or we've de risked having direct centralized exchange collapses? We de risked not a bit of geopolitical risk. Not all of it but a good chunk of that wet does anything keep you up at night. Or what's next on the hit list or checklist of things to do risk as a bitcoin investor? Yeah lately I've literally been battling insomnia and it's hits. I'm not kidding it's it's Qasim worry about endemic. I'm just I'm worried about. I mean to put briefly. I'm worried about hucker inflation. How how unexpected that might be for the public at large and then basically how people are going to respond to that. How it could change the political landscape All kinds of Jakonen measures. That now are hard to imagine. Could become very very normal in in an environment where we have super high inflation awardee seeing it with this cova crisis things like rent control Like I mean who could have thought one year ago that right now and I'm not making a case for all landlords that they're all angels or anything but who could have predicted that you cannot evict a tenant who is not paying their rights. You know the one year ago could imagine that nationwide or even internationally speaking. That's now a reality. So price controls rent controls And then of course when nineteen thirty one comes to mind where Gold was confiscated so all these scenarios were. You just don't know you know. There's chaos coming but the nature of chaos that you can't really predicted so you try to keep your options open an just you know it's it's it's it's and I've been thinking about this stuff for ten years and I still don't like what is the right thing to do. What is the right answer? And I'm just trying to kind of legs except that like you know. I think that I've always been aluminum head of the curve when it comes to like seeing things coming I'm trying to keep my options open and But it still like. It's like I have to process that like people are gonNA freak out like they're gonNA freak out and I just in a way I'm trying to. I'm trying to prepare myself that that is just GonNa happen and I- Put my horizon further than that. I have to like already look beyond. And it's it's GonNa be appeared of three four five years or you know debt is going to be wiped out which is good like finally we're going to get rid of this debt burden And there's GonNa be a new normal after that but like during. Let's just going to be a bit crazy. I lived in Latin America. Like I know it's not the end of the world like you can totally lived through it and you can do well But it is just too strange to just reset like endre feeling of like. Oh my God like this is this is it. This were everybody's printing money and no ways worried about it because they're all their their eyes off the ball. They're looking at something else. Which is I think that the corona virus crisis and they think this is the end of the world. So it's just an insist cascade were okay. They're bailing out whatever XYZ companies but then because they're over overextending all. The governments are overextending. We're GONNA get into this crazy debt crisis and then central banks are gonNA buy up all the municipal bonds you can imagine and they're gonNA rescue life insurance companies and it's just going be off the rails down if trillion dollar bailouts every other month. I think eventually anyway. That's what Casey of Yemen. On a lot of what you're talking about applies to the US in Europe Obviously and those are two of the US and euro being cleared two largest reserve currencies so potentially the ones that will have the most chaos associated with them if there is something goes haywire. You mentioned The seizure of gold in the thirties out at what point I I haven't really heard of many people talking seriously yet but at what point do think people start truly taking seriously movements from the US zone or wherever they are. What do you mean with movements like immigration an obligation? Well I mean if you're in a country where you're worried that your wealth is going to be seized If there is a similar order that impacts bitcoin. You know at some points in the future. Does that put you in a position where you are? You're ready to pack your bags and move to more stable. Were more crypto friendly locations because the one thing that's interesting about Of where we are in the world right now like there is no more physical land right so you basically need to pick your Your tallest digit in terms of like which Which country out or which has set of law this jurisdiction. You WanNa be bound to and it strikes me that the time is unrestricted may have passed already but in others if people are going to take seriously a move or or think about whereas the optimal safest and most secure location they might have to make that decision relatively soon and. I'm quite frankly. I'm surprised that we haven't seen it. Bubble up more in Crypto circles because that tends to be the bleeding edge of Of folks thinking thinking about how hostile actions could could impact them. Their families are portfolios and just their personal property rights. Yeah well I mean. It's it's hard but for me I think. Optionality is this huge. An inexorable has talked about this as far as I know his family had to flee Hungary like they barely made it out. Definitely definitely. There's there's people learn from So anyway connor represents like it's the ultimate optionality like it allows you to move your money around the world you can leave in the Senate to a friend like even like you know you hear on television like we're GONNA start confiscating blah blah blah. And like you can pick up your phone right after. Send all your bitcoin to a friend who lives on the other side of the world like it's physically possible so I think that's that's important and I think a lot of Bitcoin A that that gives them some light Autonomy and and and it's too early to know where where it's going to be bad where it's going to be good so I think that's important. I think in a way also living in the US offers actual optionality to because like I think that we've seen peak power for Washington in the White House. I think that We're we're we're going to see slow decline of the kind of hold that they can have on. Just by issuing orders staff eventually will have states. That are just GonNa be like sorry but no. I'm not GonNa do that like you know what you're gonNA invade me. Come at me. Bro. I don't know like so that is something. Do you know the the ability to vote with your feet in the US and you can just jump in your car and drive across the state line and then you're in another environment. That still has a lot of similarities with rule of law language and market structure. And so I think that Eventually it'll be hard for the federal government that has created this problem in a lot of the problems created by just two successive debt an and monetary destruction that it might be hard to keep their hold on on everything. I mean this is how empire Like you know Roman. The Roman Empire dissolved through inflation Ussr did not saying the US will. But I'm saying like there is a limit to the kind of how far you can go with the federal government orders and in Europe like there's different trade offs like there's you know even there's even less centralized power like Brussels is kind of like a running joke And I think it will be becoming more so than I think. They're the challenge is a little bit more on the rule of law size. Where you know what? Countries other than Switzerland have really strong rule of law that can weather even like very severe depression or crisis. And I don't really know I think we'll have to wait and see But yeah I mean then the other countries around the world of course you can. Yeah you can go to Latin America but like the you know. Maybe maybe if things don't really bad I might go to Chile or something But still like they have a history of dictatorships and stuff like that. So you don't you know I. I think it's too early to to place your bets like you only to own it. Some call options and put options against you. It's all about optionality. I think right now. That's how I see it to preserve your optionality what What are your thoughts on other assets or other crypto assets? You know you. You've been very outspoken. And to the negative about some of the CRYPTO assets is there. Is there anything that would get you excited about other types of cryptos or Bitcoin in the context of a broader real world portfolio and and and just sticking with Bitcoin as the one digital asset? That's a a good portable and censorship resistant hedged. Everything else going on. Yeah well I mean I think In the cryptocurrency realm like. I think you want to be overweight. Bitcoin like like very very significant. Part of your portfolio It's almost like in the gold world in the world of precious metals. You won't own mainly goal. Of course you can have some sober to in some miners. Have that be like thirty. Percents Max or something And of course it's all everybody's different than than like you know but but like for example it matters if you have a capital gains environment or not like you know if you if you can easily trade out of coins than maybe you can have been more exposure something or if you have good trader whatever But I do generally speaking that the old coins by-in-large are not gonNA come back especially not as strong as they did in twenty seventeen so the bitcoin dominance wait is never going to go as low as it did. Back then I think a few coins are GONNA do. Well I mean I have a few light coin like people are GonNa shoot me an Alka because I just as a play on. I've always kind of beat myself up that my investments were driven by like Mayan analysis. And like this is what I think. And this whatever. This technology doesn't really make sense. I'm not going to own it whereas I missed out like I missed out on Syrian. Because I wasn't thinking in terms of the market psychology. You know where it could go and so I feel like if we're going to have a retail phase again people are Evitable is GonNa be labeled the digital gold and so then they're going to be like with their unit bias. GonNa let one. Bitcoin is so expensive. What else is there? So who knows just had a little bit. You never know And then another area that I'm and I think like theory in general is that we never had the same market cycle twice. There's always different emphases. I can twenty thirteen. It was not really bottled coins. The big the big buzz was was a mining everybody was ordering mining machines bowels decrees at of course become up as well and then in two thousand seventeen was old coins. I think the next cycle. We're going to have some other things of bubble up together with bitcoin. One area that I that I've been looking at is the exchange and again I'm GonNa get I'm GonNa get roasted for this is the The I E. What is it called? Idee IOS exchange well I mean I. I don't think for that. I mean they're basically quasi securities because they got burnt models. That's why like I mean that's why to me like you know I. I put together that report on the bitcoin reformation then you know other than owning shares in the east India company which was the big time What you do is you can invest in basically local government bonds and you had these little local cities that sometimes needed to beef up their defenses against the Spanish army was invading. And you could do very well if you moderately invested in those well and so similarly bitcoin exchanges are gonNA be under fire. They're going to have to defend themselves. There's no sugar daddies central bank to bail them out so so that could be an area where you could strategically occasionally Put somebody work in. And they're always gonNA. They know that their main audience our bitcoins. So they're going to try to put together deals that are attractive. Even for people that are used to the kind of returns that you seem bitcoin. So that's kind of my my best analysis for the. I'm not really looking at a lot of all coins. Maybe also where things could go like. We're GONNA see some. Ipo's I think because like some of these some of these early companies they want their executives and everybody else the sheriff to be able to diversify. 'cause they're looking at the same reality we are. Maybe eighty percent of their wealth is wrapped up into company. Stall like that's too much so they need liquidity and so I think we'll see some interesting opportunities for if you time it right to invest in some some become companies But that's GONNA probably be a little little while longer. Tour is always fascinating to hear your thoughts on the industry just comes with so much? Historical context both crypto. You know specific. Bitcoin specific and much more broadly in historical context on. Where can people find you online? Reach him your more recent research as you just go a name. I think I have the still use to. You are to use our in four es in my last name yet. Correct formation is still out there. If you haven't read I suggest you have a. It's probably would work. I'm most proud of for the moment and then slowly working on a report that's going to focus more on insulation probably in the next one or two months in amount of excellent ball looking for that one Tour Troje. Thank you very much for joining in. Thank you everyone for tuning in for this final installment of the special bitcoin having series That we've done in conjunction with that stamp toward stay safe. Thanks again and all this nurse or listening botching. Be Good next time to wrap. Thanks for listening. You episodes of unqualified opinions. Go live weekdays at noon eastern time you follow me in the meantime on twitter at two Bit Idiots. Want to continue the conversation with rolling otherwise as you next week.

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Career Housekeeping: Your End of Year To-Do List

Trill MBA Show - For Black Women Surviving Corporate America

32:58 min | 9 months ago

Career Housekeeping: Your End of Year To-Do List

"Welcome to the troll. NBA Show. I'm your host Felicia an rose a Nuha Aka the truest. NBA You. You will ever know and I'm here to help us. Survive and thrive in corporate America. By giving you the truth and being as real as only I can be happy Sunday everybody. Welcome back from the break. It is December a CIMBER I which means we have thirty days and holidays in there so really less than thirty days but it thirty calendar days from today and then it's the end of a decade. We're going into a new decade okay. It's twenty twenty like we've got thirty days. What are you GonNa do in these thirty days just to make sure you set yourself up for career success in twenty twenty? That's what we're going to talk about today. Okay I have three things for you guys to think about out doing in the next thirty days that will definitely help you set yourself up for success in twenty twenty twenty as far as it comes to your career so the first thing that you need to do this month and you you need to set a target date to get it done before you leave the office for the holidays so really and truly you got about two weeks to get eacho live together sisters or guy but the first thing you need to do is update your resume. Now I know some. y'All are like girl. My my resume is always ready and to you are say Kudos. You'll you'll get Persia prize. You get uprise. Yeah great but for most of us we are busy. We are grinding. We're trying to make it work. We've got responsibilities finds abilities at work. We've got responsibilities outside of work. Many of us are not just career women. We are daughters cutters. We are mothers we are wives. We are sisters we are on tees. We are a lot of things to the world. And because of that a lot of times we put ourselves on the back burner but when it comes to your career and the housekeeping things you need to get done to get ready for an amazing career. Journey in twenty twenty is to update arisen. May this is the perfect time. Most of us are on a calendar year so this time of year is her perfect because because everything's winding down everyone has just kind of giving up at this point like let's try again next year. You're looking at what you've got accomplish. This is the time for reflection. So this is the perfect time as as you were preparing for your individual ear reviews and conversations or even if you're not on a fiscal you should be at the halfway mark or a mark where you should be looking at what you have accomplished over the past eleven to twelve months right and in that you need to pull out new bullet points to us to update your resume to changing. It's perfect you guys. So things that have made the company money. Save the company money things you were the first to do. Who are something you know that resonates in your field or your industry are in your role if you have an update your resume in so long along that your current role is not even on your resume? Air Girl is time. It's so time so take the time out. Update your resume and if you have any questions it me up at ask a trill NBA Darcom. I'm not the resume person person but I have a couple of awesome resume. People aren't deck that I can send you to don't get kickbacks from it or anything like that. These are just the people I know personally and I know they are black magic when it comes to these things and I know they will do right so if you you are looking to take your resume up to the next level. Hit me up at ask at trilling. Ba Dot com. I will make that referral for you when we get back from the break. I'm going to talk about something that we don't quite think about often because we're always always interacting with it so we don't think of. Oh maybe I should analyze this in the mind frame of furthering my career. So we'll talk about it when we get back from the break. Hey you guys. So I'm I'm working on some ideas for new content for season four and possibly some new formatting of the show so with that said I want to know if you guys want me to share listener letters on the ear and if you do you have certain situations and you feel like hey. I want everybody to know that this stuff happens end because it happened to me then hit me up at ask at Trillon. Ba Dot com. And tell me your story. Tell me what you want me to share. Tell me if I can get into a little bit of the Nitty Gritty. I'M NOT GONNA share company details details unless it's all out there and your guests on the show so we're not here to blast companies. What we we are here to do with the listener letters is take your situation and help the next sister trying to make it through the same thing so if you want to be of help hit me up ask a trill? MBA DOT com. Share your story with me. I will definitely be cognizant of we all need archer and hopefully we can all have some good learnings right because everybody's experience is a little different but there's so many things that are so similar that we really need to start telling our stories stories so hit me up and let's get back to the show so in the first segment. We talked talked about the first thing you need to update your resume. And please don't do these things out of order because they actually build on each other so I update your resume. This me really understand what you've accomplished in the past year. Now the second thing we don't think about why because we're always on it we're always Online we're always on social. Were always on this dadgum computer but the thing that we never do is Google ourselves are take hey could look at our digital footprint so again. This is another time in the year that is perfect to take a look at your digital footprint to analyze your linked in and after you update your resume. Gus What now you can update your linked in. Oh you don't have a Lincoln and and I'm not even GonNa Shame you because I know for some of us. This social crap is just that crap but if if you know that you may be wanting to explore new opportunities career wise in twenty twenty you've got to of date year linked in or you've got to sign up for Lincoln linked in should pay me for this but they're not but I'm telling you linked in it is a great career resource and they have made themselves so and they have figured out how to monetize it so I'm not gonNA knock linked in Hustle. I'm going to jump on in there and get my link in on some. I would advise you to do the same now. I need you to be strategic about what you're putting on your linked in and how you are packaging yourself. What is your brand's story story right? And that's why you need to check your digital footprint. You need to understand what is the world's saying about you when they go online right or when I go online what can I learn about you and this is important especially now because a lot of hr people they go you they look and see like what is out there about you so make sure you understand Dan. What is out there about you number one number two? If there's stuff out there that you feel isn't representative of who you you want to show yourself to be if it isn't aligned to the personal brand that you're creating well then you need to think about the security the options like if you have a twitter and your lose fingers on twitter and it doesn't matter because you're not famous what is it. Look like to lock that down unsecure that I know for a lot of people feel like a hassle because then when people want to follow you you have to accept them and all that stuff but if you know that you need to be more protective of your online identity then lock all that stuff down like everything isn't for everybody okay. So you don't have to let everybody in on your social media or your online presence like the sites nights. I don't even know how to say that but you do need to be aware now. What if you find something you like? Oh Shit how gotta get rid of it you know. Honestly I don't actually know anybody out. There is an expert about how to get rid of things. Things are how to better manage your social media presence especially in the context of managing your career. Hit me up at ask at Trillon. Va The as are calm. I actually WanNa have you on the show or if you guys know somebody that's really good at that stuff and you think they'd be good for the show you think other people should know about them. We're further to me. Let me know if you have a guest referral. Hit me a now. I'm GonNa tell you now. I'm real picky about. WHO's on the show and a has to be somebody who can give you actual tips like actual things that you can go? Oh do and they're not just trying to sell you something or not just trying to promote themselves like we're not here for that what we're here for is to get these tips tricks tactics and strategies to climb the corporate ladder. That is what we're trying to do as we're going to keep the main thing the main thing. Okay okay so when we come back from a quick break I am going to tell you the last m probably the the most important thing that you need to be doing this month to set yourself up for an amazing career the journey in twenty twenty. So I will hit you with the goodies when we get back. So it's currently eleven thirty five PM and I am working on this podcast. And sometimes I'll be honest with you our life. But then the Go-to the reviews and I see reviews like this one. Love this podcast back. Hr Bay so see y'all HR people. You'll be listening. HR basis this podcast. I cast has changed my life and my perspective and my career. I thought I was the only person that was going through. Crazy stuff in corporate America. I've learned how to take my career back and not throw in the towel. Thanks Trillon. Ba Eh. Much love and respect to you in so eleven thirty six. I am going to. Who still be working on this podcast because I just remember when he felt saying that? I'm like okay. One of us is is crazy. And I'm saying it's not me and yellow saying this may be dammed since you are not alone so thank you for listening. Thank you guys for your support. You are the reason. Why do this podcast? Because I want uh-huh uh-huh to know and believe that we are everything and anything. We put our minds to that. We can take this world ruled by storm. Be Entrepreneurship bid corporate citizenship and just getting into corporate leadership chip in running the hell out of this world like bananas basically telling us we run the world. Yeah so we just have to own it and I just WanNa say thank you for leaving comments and reviews and your emails. Please keep it coming because as you can see since I started working. I can't just record in the middle of the day like I used to. So I appreciate you guys. Please go to our tunes or Apple podcasts. Or whatever APP you listen to and you can rate review. Please do that stuff. Please tow your friends. Do not keep this podcast to yourself. Tell people about this information and I'm going to continue to work to bring you content. That's actionable in real term that you can take in work on and use every week. That is my promise. I want to see us. Rise is to the top of wherever our journey takes us and we can do it and I want you to have somewhere. You can come every week week and just have somebody tell you that you got this. Could you do all right guys. I love you and let's Rapa the show. Welcome back. Oh my God I'm still tripping. It is December first you guys December first two thousand nine hundred thirty days are left in the two thousand thousand teams and now right. I can't believe it either but my question to you is do you feel oh like you have been living life or do you feel like life has been living you one of the reasons why I started this podcast. I is because I felt like for the bulk of my career. I have not been intentional. About what what I wanted for my career hill what I wanted for my life and some of this shit. I'm still working on be honest like I don't know what I'm doing here. I'm just doing my best every day. That's all we really can do right. But what I've come to realise especially working on the show. Is that if you don't have an intention if you don't sit down and and say this is what I would like to see. This is my goal or my dream or my idea if you don't do that intentionally you're setting yourself a to just take whatever happens so the third thing I need you to do this month and it starts with some meditations some quiet time and no. That's hard but maybe it's you know just cutting everything off on your drive to work. It's just taking some time out to think and think about what you want your intention to be for twenty twenty it by the end of twenty twenty. What do you want to see? Come to fruition for for your career what should your career look like in an ideal world by the end of next year. So by this time next steer when I do this episode for twenty sports what should have happened in those twelve months in those three hundred sixty five days for your career so so for example for me as you guys know no. I started a new job. I went back to corporate My bank account said Ed. I need you to get a job and I was like. I can't stand you right but I realize you know I'm still new are my first ninety days and and sometimes it feels hard to think longer term when you're so new but something. I've always wanted to try something I've always wanted to be and be seen as in. These organizations is high potential talent and the as a black woman being seen is high. Potential talent is a difficult task and people are what no so. Let me explain a little bit. Let me take a little time. My definition of being seen this high potential talent is not just marking me Hypo in hr file when you truly seen as high potential talent you you're seeing as someone we can put in the plans in the succession planning someone up we. It really invest in their career because we want them to be a senior leader in the organization. And I see that externally happening. I've seen it happening. And Oh my God I'm getting emotional in my career I have seen it happen for so many white people just going. NBA On. And it's like I think of all the organizations I've been in there's always a white man or white woman and for for whatever reason or how it's always been a mystery to me. I've been working so hard which was another reason why I started this podcast because I was see these people people these senior leaders and I would look at them and be like and it's not that they're not smart. They're smart but they're not smarter than me. They're no better than me and I'm not saying I'm any better than them but what I'm saying. Is I do what they do if I was groomed if I was tapped if I was picked if I was chosen and I just didn't understand what made them so different to get pit to be tapped than me or any of my other. Black colleagues is been and so frustrating. Which is why I'm getting emotional? I'm feeling that frustration in sharing this with you guys and so now they have a new opportunity mighty and with the knowledge that I've gained firm creating this show and looking up information and in studying how to get ahead in my career because I firmly believe that. Fuck all the bullshit microaggressions racism system sexism. Fine we're always going to have a fucking obstacle fine but I just refuse to believe you've that just because of all that shit I still can't defy the odds that I can't be nominally. Ah I can't make you to places that my ancestors prayed for but could never dream of. I just refused to believe believe that I'm not good enough because I'm black or because I'm a woman and so because of that my intention is is to make sure I'm doing everything I know. I can do in my power to signal to the organization that I I am someone who can lead. MB leader and add value and be great intake this organization to a higher heights. And I'm over here chunking back tears because it's so frustrating. I know you guys know this why he listened to the podcast like back. I know I'm not alone. I know there's so many ambitious women because this is why black women are leaving corporate right like this is why we're going going to be entrepreneurs in droves because at the end of the day is like fuck you you think I should you treat me like shit will oh fuck you. I'll show you because I'll take all and learn from working and giving you all this value that you didn't appreciate I will go build my own and say fuck you workplace Corporate America. Ray Make we all feel that way but guess what guys is. All of us. Don't want to be entrepreneurs like I know I see it. I see it on the Internet. Like what we need to do. As black people we need to be corporate corporate America. We used to go do our own thing. Yeah like I can't see how we all get to leave. Maybe there's something I'm missing. I don't I know you guys tell me but I know is some of US came leave. So what are we going to do with is going to sit there and just be a worker bee knowing that we would be so much better deriving in the gifts that we have if we were truly given the opportunity to lead organizations to lead teams to manage huge. PNL's to drive a big business but that takes someone. Saying I see you. I see your talent. You know you can do this. And I'm going to open these doors for you. And so my intention for two thousand thousands and twenty is to work to show up every day and and do all the things that I know need to be done in that are in my power to be seen as someone to doc groom and put into succession. That is my whole intention for twenty twenty four my career incorporate now my intention for podcast is expand the podcast to grow the podcast to get more people to listen. Listen to podcast to touch more black women. That's really the goal. Give us a space where we don't feel Sologne Right I. That's why I come listen to me every week that just for myron Black Shenanigans uh-huh before these tips that are infused in the black ash. And Antigens I want you guys to know I appreciate you I I love your emails. Keep them coming scheduled time with me. Your calendars back open. I'm starting to figure out what timing looks like. From a balance of doing my work I get a w. two four and then doing the work that fuels my my soul right now now sam. My job doesn't give me a sense of joy. It's just. I know where my talents would be better served. It's just I have to pay my dues to get their fine but at least allow me to pay them. Uh So with all that said you guys. I hope that you had wonderful. I just filled Thanksgiving and that you're ready to knock these last last thirty days of the year out of the park. That you're going to be intentional. You're GonNa Update your digital footprint or at least know what your digital footprint is serse Amiya at least have a digital presence on linked in if you're looking for new career opportunities and that you're going to update your resume right. Those are the things we've talked about today so as always if you need some help advice about a specific situation go to trial and B. A. Dot com slash coaching to schedule. A thirty minute strategy. Call with me to walk through your specific work situation. Now I'M GONNA. It'd be honest. I probably should quit saying thirty minutes. I strive for thirty minutes but I really do. Let my spirit lead me on these calls and sometimes it takes a little extra time so plan for your our but I do try to keep it short and sweet into the point at at the same time and get you the information or connections that you need to further your journey and work yourself out of of that particular situation now if you have a quick question or concern and some y'all be sending me some stuff and then it's just not quick like I had a listener. Send me an email. About what should they do. They're on a pip and they have until like the middle of December her and that's GonNa be their last day and I was just like I have to think about this like I still like trying to think like what's the way to do that. Actually have kind of Ping some of my personal board of directors on that one. Because it's like like my first instinct was to be like girl This get out of there like just look find you something else. But what's hard is during this time of year. Everything shuts down people have holiday on the brain. People aren't really hiring in December like either. They're trying to hurry up and fill a position so they won't lose the money or the head. How you might be able to find that? But that's a scary proposition. Right like people rushing to fill a role is be he cautioned. You guys take your time. You don't want to run from something you wanna run towards the opportunity so when you send me letters sometimes if there's a delay 'cause I gotta think about it but most times I get back to you within like two days or so but yeah you can always email me the at ask a trillion. Ba Dot com. If I can't answer your question are connected to the right person so again. That's true be dot com slash coaching to schedule A thirty minute career strategy call with me and those are forty dollars and I use that money to reinvest in the show. Ya not making any money off this not right now when you hear real commercials real sponsors then you know guys that I have monetize this podcast but for now. Well it's just me and my personal funds than make this show tick but I'm happy to do that though because I know this show is helping so so many of you are as you've told me so. I'm excited about that. And I know that as we grow this show will pay for itself in dividends. So I'm not worried about the money but I do need some help. So the calls are held. Just know that and questions ask a chilling. Ba Dot com and so as always please subscribe rate review on your favorite podcast APP. especially if it's tunes that helps as people learn about the show especially when you leave a review. I love your reviews is thank you so much further reviews. They remind me on the days. It's tough to get the podcast done that this is bigger than me and it's bigger than all of us and it's important work so I love you guys have a great month. I'm not sure about new episodes and be honest with you. The move. Put a monkey wrench in my planning schedule. So just keep riding with me. Okay just keep rolling with me and I promise you I won't try bring you anything. That won't be helpful right every week. If you tune in you're gonNA get something that's GonNa speak to you a little spirit and help you in your week right. That's goal so until next time keeping the TRILL. Mba Show is a fair WORLDCORP CORP LLC production executive produced by FELICIA AMBROSE IN NUHA sound design and editing by Chris Man Dan with pods shaper fame. Music is kick push by Brian. Little key patrol every day wanted.

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Florida Is Delivering The Drama To Election Junkies

P&L With Pimm Fox and Lisa Abramowicz

28:18 min | 1 year ago

Florida Is Delivering The Drama To Election Junkies

"Bloomberg peon L is brought to you by Heimer funds. Oppenheimer funds has almost fifty years of experience investing beyond borders to find tomorrow's opportunities. The horizon isn't a boundary. It's an invitation find out more at oppenheimerfund dot com slash global. Welcome to the Bloomberg piano podcast. I'm Pimm FOX along with my co host Lisa Abramowicz. Each day, we bring you the most important note worthy and useful interviews for you and your money. Whether you're at the grocery store or the trading floor. Find the Bloomberg P and L podcast on apple podcasts. Soundcloud and Bloomberg dot com. Wanna introduce al-hut? Bloomberg of Pinon columnists an expert in all things Washington to tell us a little bit about what we should pay attention to on this election day, Al hunt. Always a pleasure. Thanks for being with us. I want you to just tell us a little bit about Katie hill. Now, this is not a name that many people may be familiar with. She is running in California's twenty fifth and you've written about, Katie hill. And why this is an election to watch tell us. Well, it's a it's a basically a Republican leaning district is represented by incumbent name Steve Knight who is one of the stronger income is running for reelection. It's a district north of LA it's Ventura seamy valley home of the Reagan library, and suddenly this thirty one year old woman who is the daughter of a cop and a nurse. Ran a large homeless organization. Didn't have a lot of connections or anything has run this dazzling campaign. And come from clearly behind to the point where she is at least and even bed. She raised in the last quarter three point eight million dollars me repeat that three point eight million dollars. Even Bloomberg terms. That's pretty big and she's got two thousand volunteers every last weekend. At least fanny now. So it's really kind of exciting to see that kind of grassroots enthusiasms. So when you look at the race specific details right now. And from what you're hearing with respect turn out. What are you expecting for today's results a huge turn out to begin with and huge turnout on their conventional standards would be an advantage for Democrats and think it still might be. But one doesn't know whether Trump rallied people with his what I consider racist demagoguery on the caravan and other issues the last couple of days, so it's a little bit uncertain. I think the big turnout in suburban areas is clearly going to advantage Democrats. There's a huge turnout in red. Rural areas that may help Republicans on balance. I think it's going to help Democrats more Al hunt. Are you looking to the Indiana Senate races? Well, big I six o'clock post, close in Kentucky and Indiana. And there are two meeting really huge races one and a half and one in the Senate Senate that you just mentioned Joe Donnelly is probably one of the three or four most endangered democratic income. This is a really bad map for Democrats this year, and if Joe valley survives that means the Democrats, you know, have a shot at taking control of the same. It's a long shot. But it's one of the Republicans think they have to win. It's a very Republican state. Joe Donnelly's, a one term Senator he voted against Brad Kavanagh, and they have really I think I think Obama's excuse me. I think the Trump has been there. Four times Kentucky any McGrath marine combat pilot. Amy McGrath is running against Republican incumbent Andy bar and the district. It's about plus ten GOP. And I think. She's got a real chance to win. It's a very exciting race. And that'll be an indication of a of a wave of interesting candidates winning this year a lot of them women and a disproportionate number of them veterans young. Do you think that Ted Cruz will no longer be part of the Senate? Come I guess? Extremely so we know I'm I I'm not saying I'm not weighing in one way or another better orchestra. I'm not a better worker, certainly run a competitive campaign. And it seems like there is some uncertainty there though, the leaning toward Ted Cruz. Right. He's a rockstar two thousand eighteen not not that groups, but Beto Rourke, it's a really tough state. It's a really really tough state to Wednesday wide. If you're a democrat. It's probably moving that way. But slowly, I think the only the only reason Democrats think may be an upset is because there is a massive surge of early voting there. And the question is is do the polls in them and the modeling are they able to reflect back because they all show crews winning by about three or four. I don't know the answer that question, but it will be cutting their watch polls closed in Texas at eight. So stay tuned then next door. You said that better Rourke is the rockstar of this election cycle. So, you know, one sort of speculation is if he wins he'll be considered a candidate for the presidency at some point, perhaps even as soon as twenty twenty do you think that that's feasible and do you think it's feasible even if he doesn't win? Well, I think all the Sanders change when Donald Trump won. So therefore, you know, experience and gravitas and all that kind of stuff used to count for something doesn't count much anymore. But I think that would be early Barack Obama. They said was early, but Barack Obama had spent you know, what eight years in the state legislature for years in the Senate. I think more of a, you know, more ready say than Beto would be in twenty. But I'll tell you there's an awful lot of of of really movement. Democrats who would put their hand the fire for better work, Al hunt. Tell us about the races in Florida. And I don't just mean the Senate race between. Clean Bill Nelson. And his it said it, it's it's it's really if you if you're looking for a operation central tonight. It's Florida because it's the one state that has everything huge Senate race, which you just mentioned Bill Nelson running against an incumbent governor, Rick Scott, I mean, and and the men and money spent is just has been colossal same time. You have a fantastic governor's race with a Trump supporting right wing Republican congressman Ron to Santa's running against the African American mayor of Tallahassee Andrew gillum. He has really been a it's been a very tough race. I was down there a couple of weeks ago. And I think to the surprise of some Democrats in Washington at least kill him is just one heck of a candidate. And I think the is now favor him, and that would be huge because it would be the first time the Democrats control the state half in eight years, it affects redistricting after the two thousand twenty cents and. Those two races at the top of Democrats win those by three or four or five points and something they will. That's that's gonna affect the number of house these two I think they're right now. Democrats think they're going to pick up to house each in Florida. They have a chance to pick up as many as four or five if they have any kind of a Blue Wave night. So we're talking a lot about a potential blue waiver Democrats picking up seats, but there is the alternative here. Which is that Republicans pick up both they win they keep control over both houses, but has presented as well as the Senate, and what's the likelihood of that? And what would that do for President Trump? Well, be likelihood of that. I think is probably you know in the fifteen, you know, sixteen seventeen percent range. I think you know, far greater than fifty percent. They'll keep control the Senate, but a but a reach in the house, but if they do it's, you know, it's a free license for Donald Trump. Donald Trump can do anything he wants to. It'll be the end of of the Affordable Healthcare Act. I he can really get done almost anyone. He dominates his party and his party will dominate Washington. Al hunt. Thank you so much for being with us. Al hunt communist with Bloomberg opinion, talking about the mid-term elections. There certainly has been a lot of hype around financial technology fintech firms a number of startups have Berge the surface over a number of years. There is a question, though, how much more room is there for startups at a time when the big banks are all trying to plow into financial technology fintech. Joining us now to talk about that as she work such Vullo. He is a general partner of at trinity ventures in San Francisco work. Thank you so much for being with us. So let's start there. I mean, do you see a lot of good potential opportunities out there with respect to fintech firms that you are interested in investing in obstinately. I think fantastic's is a pretty broad category. There's a lot of different kinds of opportunities up and down the financial services spectrum. I do think the the levels of innovation in fact are just getting started. You had mentioned the big bang flying in. More. If anything I think that actually creates a whole bunch of new opportunity because as big banks, effectively try to create new products and services, there's a whole bunch of new technology platforms, and sort of assistant it'll be necessary in order to deliver them a lot of opportunity there. And part of the reason why a lot of the large national stations are getting more aggressive is because there's a whole bunch of new upstarts that effectively pushing the boundary and kind of forcing a lot more innovation faster. So all in all I think there's still a lot of opportunity across the spectrum flora fintech innovation. Now, you yourself are a serial entrepreneur in the world of fintech you've created companies that have been been acquired by MasterCard. For example. How is it possible that on the consumer level you're able to take an Uber or to transact business completely on your phone instantly without any friction you can pay for things? But when it comes to the world. Of wholesale banking banks, moving large amounts of money. Why is that still a challenge? And why is it still expensive? It's an excellent question. And I think the the simple answer is the stakes are higher, and and the infrastructure that is necessary to be built up in order to play in those spaces is higher simply because the regulatory acquire moments that required to play in those spaces are substantially more stringent. So you have a larger number of regulations that control, you know, things like KYC and ammo that all our multiple three letter words, but effectively are things that need to be done to make sure that the consumer and all the participating parties, and our transactional protected and to make sure that all of those things are done is a much higher bar and a lot of cases, actually, quite boring stuff. So when you think about financial innovation innovation first starts with the easier. Things things that are easier to get done. But we've recently invested in a company, that's. Really making that a lot easier to do company called synopsis. I that's actually creating API's almost make access to wholesale banking. Almost as easy as stripe has made payments services to be integrated into an overall left, for example, and just to do the acronym. Definition KYC means know your customer and a m L for those in the financial world know, it means anti money laundering rule. Sorry. No, no, no worries. It's good to point that out because these acronyms do have purposes for for the regulators in for the banks short. I'm wondering you mentioned payments, and that was an area that you have expertise in yourself. I'm looking at square shares, for example, and they're up more than one hundred twenty percent so far year to date is the payments sector still ground zero. When it comes to innovation in, financial technology. What is the frontier for the next wave of innovation? Absolutely. I think it's definitely the early days sweater. And of course, there's been innovating almost in and around the payments sectors. They're actually kind of getting into things like lending and marketing and all other kinds of services from payroll, and so and so forth. So the the number services they can offer that existing customer base is still they're still scotching the surface. I think there's a lot more upside there, and, but if you look at broadly more fantastic, I do think the the amount of innovation is almost poised to accelerate because one of the things that almost limits innovation in financial services is in fact regulatory strength. If you may so if the the regulators are are being very very cautious. Then it almost limits innovation because people are scared to kind of push the boundary a little bit to kind of make sure figure out what it is that actually can be done. But when the regulators tend to be a little bit more lax than it tends to become. A little bit more encouraging of innovation so lending, for example, has in innovated on many many times over the last ten years because regulators were a little bit more friendly towards innovation in the lending space. So as regulators look favorably upon innovation in different areas. Those actually tend to come alive, it's a lot more innovation. So I think lately, I think that regulars have been a little bit more encouraging innovation and they'll see us, for example, creating things like the fintech charter. So they're they're starting to think about innovation as part of the realm of the things that they want to encourage and push. And so as regulator start to kind of look at this a little bit more favorably. I think innovation is only going to accelerate. Can you just tell us quickly about branch because we talked about the developed world and branch is a company that you've invested in that works in emerging markets. That's exactly right. I think if you really think what financial services, we tend to kind of almost always on fintech, especially we tend to think about that as a very US phenomenon. But if you really talk look at fintech innovation actually happening across the world. In fact, because again regulation is a little bit more friendly innovation in Europe, you actually find D-I-N-O-V-I-T-E banks that have actually been created from scratch actually driving in Europe, which is not quite played out almost the same way in the US yet. But if you really think about consumers and consumer demand financial service in the US is almost one of the most well developed sectors. But across the rest of the world actually services has very very little penetration. So very few consumers actually even have access to financial services of the fraction of the entire population. And what brand just trying to do is kind of taking the the device that is does actually does have very high. Penetration, which is the smartphone, which is rapidly increasing, and it's been attrition rates across the developing world and using the the access and information that a smartphone provides you know, or to be able to create underwriting decisions in order to give access to both loans and going forward even savings products to consumers directly off of their phone so branchless banking if you may delivered by a smartphone into the very deepest parts of Africa, India, and Mexico and a bunch of other countries as as they go along. Thank you very much for spending time with us and talking about financial technology and the challenges and the opportunities Schwab such of alot is the general partner for trinity ventures. Joining us from San Francisco, Bloomberg PNL is brought to you by Oppenheimer funds. What percentage of global GDP is the United States half two-thirds? Guess again America is just. Four percent, which means that seventy six percent of global GDP comes from outside the United States Oppenheimer funds believes opportunity. Look similar in every language with almost fifty years of experience investing beyond borders to find tomorrow's opportunities up and Heimer funds knows the horizon isn't abound dri, it's an invitation find out more at oppenheimerfund dot com slash global. The energy and pharmaceutical industries stand to potentially be disrupted depending on the outcome of today's midterm elections in the United States joining us now Brian rice in your healthcare policy analyst, four Bloomberg intelligence coming to us from our ninety nine one studios in Washington DC, Brian thank you so much for joining us. Let's start with the pharmaceutical industry. What is the sort of range of outcomes from today's election, the potentially affect this industry. Sure. And I think the the one that pharmaceutical industry would be most concerned with is if you have the they true Blue Wave where Democrats can show not only the house, but also the Senate and in that instance, they would have the ability to that only hold a lot of hearings that would create a lot of noise and headlines, but then also potentially since legislation to President Trump's desk. And I think the concern for the industry is that if you've listened to President Trump over the past couple of years, you know, his personal leanings from time to time appear to be more aligned with the Democrats on. Things like giving the federal government more direct influence over the prices of prescription drugs in the part D program, for example. Now, if it's just a split where gridlock situation where Democrats maybe when control of the house, but Republicans retained control of the Senate. Then I think those more draconian things are taken off the table. But again, the democrat controlled house would have the the ability to dictate a number more hearings and things that would put pharmaceutical companies in more of a spotlight, then they all are already Brian riot. Just want to let you know that we have a group of future voters of America. Joining us here in our Bloomberg interactive brokers studios, we have all the members of girl scout troop nineteen fifty-six from edge Mont in scarsdale. So they're all listening to you because they want to understand how the midterm elections figure into not just this election cycle. But the twenty twenty cycle are these the same issues you believe are going to dominate the neck. Election. Or is this something that is specific to this midterm because typically you think oh how ever the economy goes? That's how the vote goes. Well, first of all, I'm honored to be speaking in front of us such a distinguished group. Welcome girls. And Secondly, I think the healthcare situation is one that will continue to be of particular interest to voters not only drug pricing. But then also starting tomorrow probably will cycle very quickly into the twenty twenty presidential campaign in particular, the intra Democratic Party fight about how far left do you want to go? Are we going to nominate someone who believes in the Bernie Sanders Medicare for all perspective? Or is it maybe not quite that far down that stretch? So, you know, I think twenty nineteen is going to be a very interesting year from a healthcare perspective, and that obviously sets up the battle versus President Trump in twenty twenty depending on the outcome of these midterm elections tomorrow, and what policies emanate from there that will obviously drive a lot of the conversation. In heading into twenty twenty and certainly, you know, healthcare, so one that I think both parties will be forced to talk about even if they don't want to Brian one thing that I'm struck by is that no matter who wins we're going to probably deepen the US deficit right with spending possibly either with infrastructure spending or more permanent tax cut. I would you say that that's an accurate statement. And what are the most likely spending scenarios? Should we see a Blue Wave or red wave yet? I think in certainly history suggests that's a pretty safe bet. No matter what the what the outcome of election is certainly if you have either a Blue Wave or a split congress. I think infrastructure is an area where the president has expressed a lot of interest in and Democrats also would want to to maybe provide more stimulus in that standpoint. I think the political question that the Democrats would then have to ask though is do they want to hand the president? They win. Do. They want to be seen on stage at a Bill signing ceremony. For example, where the president is getting something that he wants. And then for the president would he be willing to to cave in on some democratic demands how much would he ask for in return? Whether it's the wall or other infrastructure priorities that perhaps the Democrats, you know, aren't aligned with. But that I think is an area that investors are gonna wanna focus on. But that's certainly that certainly not a a deficit cutting program that we're going to see Brian. There are a lot of ballot initiatives that voters are going to have to decide on tell us the ones that you believe are the most relevant. Well, a couple of that. I think are in our various analysts are focused on here at Bloomberg intelligence out in California prop eight I think has a lot of a lot of interest within the healthcare community in particular dialysis providers. I know davita in particular has been very keen on on that one several ballot initiatives could could I guess further the trend towards cannabis legalization, I think Michigan is upstate in particular that on that our animals. Are focused on given the the potential market in that state. So those are couple, but yeah. Cross the country and number ballot initiative. This is much more than just the battle for control of congress. Thank you so much for being with us. Brian Ryan shaved a long night ahead of you. We may not even know the results. Right. Come tomorrow morning. There might be some pretty Harry racist there. That's right. You know ballot. I guess the polls close at around eleven o'clock tonight eastern time, and in California and a number of those races could ultimately decide which way the the the congress goes next year. Well, Bryan ri- have a wonderful time drinking coffee from now until tomorrow this time, Brian rice and your healthcare policy analyst for Bloomberg intelligence coming to us from the capital of the United States, Washington DC. Creditors of Sears are asking the court to probe transactions that involve the Bank retailers. Biggest shareholder Eddie Lampert. And here to tell us about it is no Hiebert director of credit research for Bloomberg intelligence. No just set out for us. Exactly. What kinds of transactions today want investigate it? Well, pretty much all of them. I mean over the last several years in order to keep Sears afloat at he's done a number of things to basically inject capital into the business. The biggest one being the twenty fourteen transaction where they spun out a bunch of real estate into what's called Syra Taj, which is a real estate investment trust that took on a bunch of the stores owned by Sears. But then more recently there's been a number of teeth heels, which were more direct lending. Where's Eddie Lampert through his ESL investment fund would basically lend dollars? Secured by new real estate or intellectual property or some of the other assets of the company, so what's at stake here. I mean could Eddie Lampert have to pay the creditors something or with. He just stand to recover less. Great question. I wish I knew the answer. You know? I think realistically I it's a tactic by creditors to try and extract more from Eddie Lampert to kind of move the process along because if it doesn't happen quickly. The problem is as we saw with toys R us is that you end up in a situation where you risk moving from chapter eleven into a chapter seven at he doesn't want that because of his hero Taj, worship stay can. Because your ties still collects a lot of rent from Sears, sit to be chapter seven means the whole place just liquidates and it's done whereas chatty dot restructuring who are the creditors. I mean, these are these mostly hedge funds it's going to be predominantly hedge funds because you had to remember, you know, ESL controlled you know, fifty percent of the equity. He also controlled fifty percent of you know, the the the lending part of the portfolio so between him and fair home before they had equity exited much of their equity stake. I mean, those two collectively own three quarters of the capital structure almost Noel. How far back will this? Are they looking for this investigation to go? So they're they're trying to roll up everything going back until twenty twelve which is when you saw Sears hometown spun out as well as some of the deals done with Sears, Canada, those I mean because a lot of those deals including land's end as well, which was twenty fourteen a lot of those deals for just done as distribution spun out pro rata or everybody all the shareholders had equal right to participate. So those look like a tough lift I would think from the creditor standpoint same with zero ties because I got a fairness opinion and Eddie Lampert in ESL paid an extra forty million a couple years after that deal was done to settle shareholder litigation at that point. So. So you know, I it's a good reach for them. I think the more recent deals where you know, they lent directly against specific assets of last call two years or probably more doable. For for the hedge funds and the people on the other side of the ledger here, but but they're going after everything and just wondering there have been some kinks some people who are looking to lend to Sears. I while they're in bankruptcy debtor and possessions long have sort of balked at the idea of Eddie Lampert being overly involved. Where is that? How much are they going to be able to actually borrow to keep themselves afloat during this whole process? Well, it sounds like at least the the latest ration- is that the other creditors are willing to put up another three hundred million which is what petty ESL were trying to do as a second leaned that are in possession financing loan. So it looks like they're willing to take on that liability, which is okay. From the standpoint of you still have plenty of coverage from your your working capital. So you're. Tori, etc. And basically they were trying to keep from getting more engaged because if he had gone into the debtor possession role that he would leapfrog, right? The other term loan lenders. And some of the other first leans, which are still out. There is creditors. So I think the banks and a lot of people who've sort of bought into this process over time. And you know, kind of maybe seeing the silver lining on the gray cloud that kept building. Or maybe now feeling a little more disenchanted with the whole thing in less inclined to sort of let the have a bigger say and just quickly no time you mentioned time. Did they have time to let this happen while the company still operates? I know would be my my gut answer hair. Right. I mean, the reality is if you don't have something in place in a real firm plan by the very early part of next year. Call it mid February early March, it'll be very hard to keep this thing from spiraling into liquidation because a company consumes so much cash. So you need to be able to wipe away all the incremental costs. Whether you're talking just the cost of running a bankruptcy, the cost of incremental stores, etc. So it's going to be an interesting interesting road as it has for the number of years ongoing. No hiebert. Thank you so much for being with us. Noel Hiebert director of credit research for Bloomberg intelligence. Thanks for listening to the Bloomberg PNL podcast. You can subscribe. And listen to interviews at apple podcasts. Soundcloud, or whatever podcast platform, you prefer. I'm Pimm FOX. I'm on Twitter at Pimm FOX. I'm Twitter at Lisa Abramowicz. One before the podcast. You can always catch us worldwide on Bloomberg radio. Bloomberg PNL is brought to you by Oppenheimer funds. Oppenheimer funds has almost fifty years of experience investing beyond borders to find tomorrow's opportunities. The horizon isn't a boundary. It's an invitation find out more at oppenheimerfund dot com slash global.

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WHY DOES THAT EVEN MATTER? | Warrior Week: Parables From the Pit | EP 063

WARRIOR WEEK

42:45 min | 1 year ago

WHY DOES THAT EVEN MATTER? | Warrior Week: Parables From the Pit | EP 063

"All right. All right. All right. Welcome to this episode of worry week parables from the pit my guest is Brandon, Brandon, welcome to the show, bro. Thanks for having me. I will you flying from Phoenix Phoenix, not along flight but still a commitment to be down here. Interesting. Very interesting story. Brendan look forward hearing updates on what has happened. And what is going on inside of your life? We're going to have one hell of a show, sit down, relax and enjoy. What is coming at you? Man. That didn't know how lost I was in. In in the way. While you're. And we are back. We are back Brennan were week fifty two. What was your first experience knocking at the door of warrior where where at started man? I didn't interesting ride, when it came to war actually thought about that a lot win. I actually I got introduced to warrior, and it was probably about four years ago, actually, now, I, I learned about it probably early first quarter twenty fifteen and I was sitting around one day and the same guy that, you know, introduced me to warrior week posted something about it started watching it and got intrigued by it at that point. And you know looked into it a little bit more trying to figure out what it was about. And honestly, I had no clue what it was even about at the point. I thought it was something to do with fitness, or wasn't sure and kept looking at them, like us looks like a lot of fun. Go check this out, I filled out the application of that point. And then for some reason, never finished, it never finished filling out the application to actually come in something, you know, got in my way, and then I never went back to it. So I think about that now like almost like that was that was supposed to happen because at that point. I don't think I was in the right place. I was in the right mindset for it so something something in the universe. Stop that from happening. Sure. And. Allowed allowed warrior to actually come into my life. When I actually needed the most. So talk to us when when when was that time, and what was happening in your life and that time and how that message came to you? So it was it was July of twenty eighteen I had a, you know, it'd been getting in, you know, multiple arguments. My wife left and right. Nothing was seeming to go right in anywhere in my in my life. I wasn't feeling fulfilled in my business wasn't feeling fulfilled with my family with my wife. I was I was around my kids a lot. But I, I refer to it as you know, I was I spent a lot of time with them. I had a lot of quantity, but I didn't have a lot of quality time with them. I wasn't really present even though I was there a lot with them. I wasn't actively engaged with them. And just the general disconnect from everything. And I remembered, I just me and my wife gotten a you know, a big huge blowout fight. And for the first time I looked at her. And so I'd always made like cowardly cowardly threats before, like I wanted divorce. I'm gonna leave you this and that, and I never meant it, and I just said it to be spiteful or mean or for whatever, you know, fucked reason at that point. But I looked at her, you know, and for the first time, I, you know, I said, like I this isn't working, I think, I think we need to divorce and for the first time I meant it in after I said it, you know, I didn't say anything else who the rest of the night, she went to bed crying. And I sat there on my computer on the kitchen table for probably. Six hours or something like that. I just I was refusing to go to bed. I didn't sleep that whole night. And for some reason, at that particular point, you know, something for warrior came popping across my screen, and I clicked on it, and I watched the, you know, the, you know the, the quick little. Quick little video. And then, you know, click here to watch more of that, and it just resonated with me. And there was a particular part in the video that resonated with me. And I had seen it before. But it's funny how when you when you see something in the right mindset, it could be the same. It could be same thing, but completely different message. And I forget, what point in the video was. But you know, Garrett, you know, looks at looks at one of the guys on the beach, and he asks him, why does that even matter? And so I, I couldn't figure out any part of my life. I couldn't figure out anything mattered in my life. Like why do I have all the stuff? Why do I have his business? Why do I have this family? What really matters in my life. And follow the steps in click click on the link signed up. And I think I sent you a text message at, like three clock in the morning or something saying, hey, my interview. Yeah. And it's on the phone with you the next day. Sign up for worry. We fifty two man. It's crazy how the the universe operates and inside of that, how as a man, we, we offered. I I've, I've, I've often wonder about this idea of when, you know, you get into a relationship and it started like Bowie friend girlfriend relationship, and it is threat about, you know, I'm going to leave you. I'm wanting to end this and then that grows into marriages and inside of marriages, as somebody, you know, we get somebody hurts us, right? We wanna hurt him back and one of the ways to slightly hurt them back or to get significance or attention back on us is, is to continuously repeat this, I've done multiple dines myself, which is repeat this, this threat that in reality is fucking bullshit, but. You, you say it out there in order for it to, to change something. And, and often it doesn't do shit because it's not true. So it doesn't have any fuck in power, and it comes out. But I wonder if that was not an option. If you are in a marriage where divorce was not an option. Just just thinking about this Inara, right? You get married. And, and when you marry a woman is like listen to the voice is not an option like it's not an option. Right. Unless there is like physical threats and like unless you're talking about, like a you know, like abused. Right. Right. But as an as a soft option, it's not an option. You don't even have the option of divorce. Right. The only way you have an option of divorce is. If you know is physical abusers mentally abused. There's all kinds of craziness they can place but normal arguments. And the fact that, you know, okay, we argue about this. We argue about that. I don't like this about you. You don't like this about. Me and inside of that we separate them we go our way because we formulate an idea that we kinda don't like each other. Right. I'm just saying in an imaginary world if that was not an option, and we could not use that. What would happen to a lot of marriages, I think a lot of marriage. I mean they would learn to work with each other. Learn each other's differences. And and grew to accept them. And actually, you know, the funniest part about the whole thing is the more I come to accept, you know, my wife's differences, the more I come to appreciate her differences, how they actually complement me. And if I stopped seeing them as a threat against me. Yes, and I can utilize them. You know, to help our relationship to help our families even help our businesses. She complements me more than any, you know, anybody I've ever partnered with and business. She complements me more than any of those. Yes, because her strengths are my weaknesses. She's organized. She loves paperwork. She does all the stuff that I hate and, and she was just compliment every aspect of my life in the more I'm going down this path, and the more I'm actually just opened to the concept of that. There's there seem to be breaching new levels and going there and farther man, I truly believe that there's there could be a reframing of this entire game of marriage, and I'm not coming at from an angle of religion or all if you diverse you'll, you'll burn in hell. I'm just coming in eliminating the fucking option. The easy way out right? Because a lot of fucking couples out there, this, I will divorce you all get a divorce is just the easy way out and it's much easier. When kids are not involved in when kids are involved. It's still a fucking easy way out. It is. Yeah. It's definitely the easy way out. And, you know, I think one of the hardest things for me was, I was I've been surrounded by, you know, my business partner got a divorce multiple random me getting divorce, then I partnered on another business with somebody else, next thing you know, he's getting a divorce. And it's just it's a difficult thing to, to be around and bleeds into your life. Yeah. It gets projected on. You don't know. It gets projected on you by the surrounding society and deep down inside. If everybody if we have people sitting here and say, you know what? I got a divorce, but I truly never went to war for my wife because that's exactly what happened that night when you were sitting pissed off. There was an invitation for you to wage war against yourself, and go to war not against her. But for her, this was the first time and I think we talked about is on your interview, we said, you know, have you truly ever gone to war for her. Right. Not I love her not that, you know, you know, obviously I care for her. But have you actually went to war for her and fought for her fought for keeping her fought for the next forty years of your life, and building that and you'll be surprised most Bama be saying, no, I haven't done that. Well, that's the way we experience created for them, which was an opportunity for them to go for war for the people that meant the most for them. And so, I truly believe that, like you said four years ago, you Kim across it, and then two thousand eighteen. Eighteen there was an imitation for you to go to war for what you truly love and felt talk to me about. Talk to me how this resonates this invitation to wage war against yourself and against what old beliefs it's, it's actually it's interesting when you know, I find myself, you know, in a situation with my wife now that, you know, I've been in a million different times, you know, we, we've had these exact same conversations dif- different subjects. Whatever may be. But it's the exact same scenario over and over again. And the more. The more I'm going down this path. And, you know, like you said, I'm able to to trade war against and I'm able to like to fight for her. I'm just completely different in those conversations, I still have my moments where I slept all and fall my face, but I'm able to interact with her on a different level, and we're able to grow not only me grow, but also us grow as a couple to where we're understanding more about each other. Yes. And it's has been actually kind of amazing to to to witness that. And you know, she'll see she started with them personal coaching about just over a year ago. And when down past figured out some stuff about herself. And then when you know when I came to warrior week so we've been cones this process now for starting with her about a year and looking back on where we were a year ago. It's, it's just nine-day. So you stepped into the gates of warrior, really truly wanting to find the question the answer to the question of why does it even matter like, why does it even matter that I have this business. Why does even matter that a have this family? I have this wife WADA's enemy of matter that I find myself in this physicality and talk to me about the first night into the pit I warrior what you had to face because it's in. It's in that space that for the first time ever, you had to kind of accept that, you know, this is what's real, this is the facts. This is the pit that I've dig myself into and tomorrow's. Next day. We'll, we'll talk about tomorrow. But ultimately, what was it that you faced faced a lot of, you know, things that I've been holding onto for my past things between, you know, how I was raised, you know, so, you know, my father left when I was seven my, my mother and stepfather had a very unhealthy marriage. My whole life growing up. And just dealing with all that, you know, them, you know, them going through all their issues, they basically basically left me as a kid on my own. When I was fifteen years old. So I wasn't this, you know, kind of fragile state, they were fighting all the time traveling all the time, you know, and basically, they were running away from their issues the they were constantly at each other. They were either at each other's throats or life is great. And we're gonna go off Italy for three weeks. Yeah. So I was never really shown a constructive manner, and how you actually deal with the situation. So I had a lot of resentment built up from that, that I had to deal with that first night and just just racing. All those stories that, that for some reason, has to be my life. And that, that allowed you to knock at the door of, you know, what we call purpose and meaning and which is the second chapter of, of the experience here. Worry we and, you know, towards the end of it, what, what has opened up for you, in terms of the answer to why does it even matter what, what started to formulate 'cause worry week is a life changing experience and. What doors started opening up for you, right? Then the doors that started opening for me, right? Then it was it was actual genuine love. I actually felt a deeper love for my wife and my kids, and I had ever experienced before at that point. Until that point, it was always felt kind of like a show to me, it felt like I was living somebody else's life or I was watching television series. It wasn't. It wasn't really never really felt connected. And after that, like just this immense appreciation opened up. And I was able to actually feel something that I hadn't felt in a long time like just true deep love and connection. Yes. So you gain that. And you gain that perspective and awareness, it's always been there. But you are now much more aware of it. So therefore you much more depreciate it and it feels you more than more than ever. And so you come back home talk to us about how did you start at, like injecting that love into your family into your wife and what you know what are you today with that? Was able to just inject it by communication. You know, actually listening, actually being, you know, attentive when my kids talk, listen to them, don't just, you know, go through the auto responses when my wife talks actually, listen to her communicate with the reciprocate with her. Show her how actually feel about her rather than just expecting her to understand it based on the words that I'm telling her, you know, you know before it was, hey, I love you. Yes. But there was nothing really there, I wasn't ever trying to actually show her that I actually loved her show, my kids that actually love them and care about them. And I thought that just by me being there, all the time that should be good enough, and it wasn't it wasn't even close. But and so that fueled, you also inside of discovering, you know, the purpose for your business at that time, which you were confused around your business, not knowing how it's going to grow, whether you're going to, you know, let it go and burn it all down to the ground. I remember he was almost like dude, I feel completely disconnected with this business. I don't see any identity in there. I, I like I'm just ready to just let it go and start something else. And, you know, you're sitting here with days away from just like selling your business and a tremendous amount of growth, what? It has changed your perspective, instead of inside of debt for you. The idea of actually expanding and going farther beyond what we were, you know, my current business partner. He was just so complacent with where we were in the business, and you never really wanted to grow, and you never wanted to take to the next level, where so it kind of stunted me at the same point because if I can't get him on board, you know, me investing one hundred percent of the money to grow this business for him to reap the rewards. It just didn't make sense for me at some point. So for the last, you know, two and a half years, I've just felt stuck in this business, and I make good money. And you know there was nothing wrong with that. But I just came to realize it doesn't matter what the dollar figures at the end of the day, if I'm not growing, and I'm not trying to expand the business and take it to that next level than what am I even doing this full, and that would bleed over into all other areas of my life, you know, if I if I don't feel fulfilled here, I'm not going to get the fulfilment here or there or anywhere. And it just a reach more than ever thought it would. And you know, in the beginning, it was, you know, for the first couple of months once we hit a certain level of sales. Income? It was okay. Maybe I'll take a month or two and go easy for this month. Yeah. And then it was two and a half years later, same exact place, same situation, nothing better. And so he made some changes into that. And what do you find yourself today in, in terms of expansion? So right now, what we're currently doing is like, like you said, we're, we're, we're days, hope, we're supposed to close about two weeks ago business, but just lawyers being lawyers, the whole process. So currently what we're doing is we're looking once we get the sale go through actually in four days, we moved to Saint Louis. Okay. Open up some new shops air gopher some licenses there and expand into that space and just keep that ball moving forward. Never be complacent with where we are just keep going forward. You know so find myself in position where I owned half of one business here. Yes. And now we're gonna own possibly multiple in different ended for market when was the last time you were excited about business like this, like you are right now the last when I opened this one, so that was eight years ago now when right when we first launched this one, I was, I was extremely excited. It was palm do something new every single day. It was an up and coming industry. Everything about it was new and learning constantly, constantly learning. Something new. And so it's, it's been eight years, eight years, man, which means you know, finding joy in finding silent and that also that, that you bring that at home, right? You bring all that energy, and, and also vice versa. You borrow from their home. So it's a vicious circle now that functions in your favor. Yeah. And the hidden gem behind the whole thing is now my, you know, my kids don't remember, restarting that one. Now they get to see from scratch your business, and they get to see what that process looks like so I get to constantly, explain to them and work with them, and teach them what it is. We're doing why we're doing it. And so they're, they're learning a lot as we go through the whole dare engage holiday kids right now ten eight to ten and two. So if you look at the ten the ten year old an eight year old and you engage them. Now, right. They're involved in the process of understanding what businesses if you'd realistically look at the business at the, at the school system, the system that you and I were brought into the system that you and I were brought into broiler never fucking Donaldson about money like literally, there was no fucking class on how to make money. There was no class on, on how to run a business there was there was nothing on that. And you sit down here and you wonder why? Why even in our college classes, all some generic conversation studying other businesses, but there was no clear entrepreneur classes in showing you skills and mindsets of business owners. No, it wasn't like that should be forged outside of it. Right. And systematically, systematically. We were cornered in a place to have a job. Yeah. I mean, that's honestly, that's what you know, me. And my wife, we always talk school teaches us how to have a nine to five job, you know, and just how to go somewhere and teaches us to be a doctor, which is very successful. Right. Teaches you to be an engineer teaches you be a lawyer. Those are the top three top three an astronaut. Right. But those those are like the top position and after that, it's any other position. That is a job. Right. Right. No nothing wrong with the job. But the system systematically, doesn't want the mindset and the skill sets of business owner. But the question is why, why do I want my kids? Not to have the skills than the mindsets of a business owner today. Right. Yeah. We actually made the decision I think it was last December. Definitely. So what about a month after a warrior week once we decided, hey, we're gonna go out and sell the business. We're going to do all this, get all the process up and going, you know, my wife and I are having a conversation about school and just how we just didn't agree with, you know, sending our kids off. Basically, seemed like a daycare for. Yeah. So we actually and they were in a good school. They're in a private school. We pulled them out and side the home school. Yeah, how's that going? It's going good. It's got its ups and downs on it. Sure. And is a learning curve, because again, I, I don't know how to be a teacher. I've never you know, taught math or science, or any of this stuff. But thank goodness online programs for some of the basics and then the home school does someone come to the house, or you have to do it now we're doing right now. Yeah. Okay. So you have the option somebody coming to the outs. Yeah. We can private teacher. Okay. Which I've definitely looked into hiring a private teacher for the dude. I'm telling you. That's not a bad idea at all like years years ago, you would talk to me about that. I would I would say no that is insane. Weird people would do that today. I'm in totally different. Place. I look at I look at the school systems, and like the teachers are overwhelmed with task and underpaid. Right which affects the quality of energy, they're going to be putting into a kid never mind, whether they're going to teach them energetically. They're fucking drain men. They are. Yeah. For sure. So we're, we're excited about that. And I get to work with them, and they get to actually, you know, they're in my office with me. Yeah. They're actually we. So we set him up their own desks, everything at our office where we really have. And so they could actually see the process. He what we do in their day in and day out. You know, just the glean kids live changes glean, all this stuff, life changing, and as so smart because they are, they are sponges, right. So when you utilize that sponge at ten dude, by the time, does sponges fifteen. He's fucking lethal in business. Like knows PNL. Imagine if a fourteen year old fifteen year old kids knows piano knows PNL knows marketing and sales and advertising system is -ation gets to know people. Gets to know processes, like dude, you're talking about you're talking about someone that you forged from a businessman tally to be successful. Now it doesn't mean that he should learn about math and science and biology, because I truly believe what school that's for me, personally, is that a trained my mind on how to think, right? That's a fundamental thing that is very important. The constant training on how the mind will think there is a problem. How do I think to solve it? So prob prop I, I, I years in school, train me on problem, solving, you, and right. And so, in addition to showing the, how of the money and what money is because money is ultimately the component of the business, right? And in, in addition to showing that, but also showing person how tank that could help them become what they want because, you know, we still need scientists right? We still need people, doctors and engineers and we still and the passion of. A kid is always found. They know what they want, like, no matter how much you train them, you teach them. They'll ultimately choose what they want because the calling is very clear. It. Yeah. And it's funny because I even see that in my, you know, my ten year old, and I see what they naturally go for. And, you know, ten year olds very artistic, she's like science that kind of stuff and the eight year old is all about business. She comes with different ideas, all the time, some of them are just absolutely ridiculous. But it's the funniest thing in the world to see her a little mind, work and actually put together a business plan that might actually work, and this is great. I mean that's the whole point of the podcast here. He's to have real conversation, real parenthood and real situation with dads and moms, and like, when you're when you're an adult forty forty two and you've got three kids and life is happening. And yet you don't feel happy. You don't feel fulfilled. And you don't you don't know why all this things are there and the questioning becomes the worst thing you can do is, is not have an answer for it, which ultimately bids builds exile. And puts you in a place where you worrying and as you worry, and then you have exonerates you start doubting. You're not you're not a powerful man when you have doubt. And you have, you know, you start like having all these piled up questions in which you don't have the answer for or you don't have the answer for, or you're not willing to do the work to find the answer. You start losing power and in that plays you start questioning a lot of things things don't grow right? You end up eight years spot stuck in the same place doesn't mean as bad doesn't mean as good, but it hasn't grown. Right. And you take that same fog of weakness into other places of your life because that becomes life. Yeah. Right. So you check the checklist of being a dad of being a husband of, you know, managing your body and take care of your body. And also like spirituality is another component. Right. Like dude, like, how do you how do you develop that? And how's it been for you? How has been the your spiritual development inside of this journey is been good. I've, you know, I've always been a spiritual person by nature. You know, wasn't raising to church. My mom my mom gave me a couple of different guidelines. She's like you can go try any church, you want brand. We don't care what you do. Go walk to any. Do whatever. My stepfather you know, he was raised in a Catholic boarding school over in the United Kingdom. So he was anti-religion from ago, but that was never me. So I was always open to the idea of it and just didn't know where I fell in the whole thing. But since warrior week, it's been, you know, the meditation and, and listening to the voice in my head that, you know, some call God's call, you know, it doesn't matter what you call it, and here's the voice in your head that's calling you to do the different things and. I felt so much more connected. Just even with my own voice, my own thoughts my own opinions my own knowing, knowing what I know. Yeah. And feeling how I feel? I'm being okay with that. Yeah. That's been, you know, the, the whole process on it's the all around has been just just life changing for me. If you if you would talk through these microphone to through guys hearing you out. Right. Is fuck. Man. This guy's talking right now, sees talking to me. 'cause like dude, I'm the guy that was stuck in the business for eight years. And still am I'm the guy. That's making a good living. But I feel that I don't know why it all matters right. Or just like, ultimately, I'm I don't know. Like I my wife my kids, my family. Why does it all fucking matter? If you're talking right now through this microphone tour guide at feels that feeling it or at one point felt in his fucking ignored it. Right. And it's and it's, it's, it's smacking him in his face in this conversation. What would you say to him directly meant? Somebody that like, felt this conversation. It felt this conversation where you were at in July where I was at in July. I'd say listen you know, you got to listen to that voice in your head. You gotta, you gotta trust your gut instinct, if your gut instinct is telling you to do something, you gotta just be able to jump all in and go into that. And just be willing to commit to wherever it takes you which exactly what I ended up having to. And I didn't like it at first, you know, the, the lead up to warrior week, you know, halfway through it I'm looking at my wife, like what did I get myself into this is this for me? Miss. And even after the first day second day, the hallway through, you know, even even after we started questioning the whole thing is for me and it wasn't until I started seeing those changes. My until my wife acknowledged the changes within me that it all kind of came full circle for me saying, like, oh, Mike this it's actually works. You know, started started actually witnessing myself reactively certain thing, you know, that's when it all came to me, like, yeah, this is this is this is worth it. This is everything I needed, and then some, and then just process. What is the, the value of association of the brothers inside of your life today and, and truly like being associated no longer operating on fucking island alone? Not that you socially alone. But simply like fucking operating alone making decisions, but having having a group of other men that you can fully trust and considered Emma's bottle, your sociation. There's no vow dollar value could put on that association that alone feeling that I had prior to warrior week was one of the one of the worst things looking back on a now. And I didn't even know what at that particular point that anybody can ever. Experience. You know, when you have a good business, and you have a healthy family, and you have a beautiful wife and you're not happy that feeling of just what's wrong with me. Why am I not happy over this? Like I should be static. I have I have a great life. And that feeling of just shame and guilt. That comes over you. You can't explain that to anybody. Because if you go, you know, you if I walked to, you know, somebody else that has, you know, a basic job, and their wife just less left them. And I tell them I'm not happy. They're gonna look at me. Like what's wrong? We will. Yeah. Right. Yeah. You have a great life. What you get all do all these things you guys go on vacations. You do all this stuff. Everyone in your family's. Healthy, you have nothing to be upset about or miserable about shut up. Stop crying true. But coming here and just the association with, with the other the other guys and knowing that they go through the same stuff I go through, you know, their wives, their kids, their businesses, the whole the whole dynamic, and you, you can just understand. Everything about them, and they understand everything about you and just the trust in the bond, that's formed between that. There's no, there's no dollar value. There's no any value can put on that. And you know, bring an interesting thing is that too often the guy that has things working out for him. But doesn't feel happy, the minute he expressed himself shut down he shut down, and he's, he's he's, he's made to feel guilty for for, for not being appreciative or not being grateful often is that's you know, shut up motherfucker. You're not grateful. You should be grateful like okay. That check grateful check. I am grateful. Right. But at the same time, I am that I am, which is I am my totality, and I am not happy right now. And if I'm not happy, there's a source of this happiness, that I have to go seek, and find them figure out what is fueling this. And maybe it's a story, whatever that is. But I cannot deny it, right. I have to find where to source of the story is. And that's what were your. Does it brings it to the source? It, it questions, the story that I'm not happy, not in a way that says, fuck off men don't be ungrateful. But in a way to says while you said you're unhappy, let's go and figure out why right? Are you willing to go figure out and you're like okay, and then you're halfway through it and you like, well, maybe this is not for me? Maybe maybe, you know like that's the easy answer that I just had a guide. I quit this weekend through the process. Greg got great fucking. I exactly where you are where you are today. Same thing, do I'm telling you same fucking thing, but he quit because two days into his like, same thing is that for me. She takes me coach, Sam, I'm not sure is that for me. So I invite him on the phone conversation. We had a thirty minute conversation, and he had made a decision a few days later and e Joe's out, and that's fine. Because at the end the day this is a choice a role here is a guy and, you know, guide and. Light in a direction for a man to make a choice to take that choice bond is not to control anything and ultimately the story this story of this is not for me actually dominated his decision. Now it doesn't mean in the future. He won't be here or that he won't find another way to deal with the source, but that's source comes from somewhere. Right. An often is, and I say this often is often is that we start looking for shiny objects outside where deep down inside the fucking diamond is there, right? Yeah, definitely. Yeah. I was you know, I was miserable in the current state that I was. And, you know, I filled a lot of those voids with material items. Yeah. Essentially, as buying stuff I didn't want to impress people, I didn't like, and it was stupid. I didn't couldn't figure out. Why was doing it and as actually kind of funny when I got home from work week, I went on like a purge and I'm like, I'm going to sell all this shit. I don't like and I had to get to the point. My my wife's taught me. She's like. Take inventory of what you actually like before you just sell everything. And so that thing guys, she stopped me on a couple of those things because some of them were for me. But. Yeah. I just that does that emptiness that, you know, you feel on the inside. And it was with me. It was it was. It was guilt guilt, that, I knew people out there had real problem. But yet I wasn't happy. And I didn't know why I didn't know why wasn't happy. I didn't know why you know anything. I couldn't answer the question with Gary s you know, ask the question the video, why does that even matter? Yeah. Had no answer. For why does any of this matter? And like often labeled this as midlife crisis and eighteen like when a dude, you know, buys a car, or vise a gadget or another material. He's, you know, he's unhappy. He may be very happy. And he's buying those, and he may be actually unhappy in his buying those, and it may have nothing to do with the fact that he's happy or an unhappy. But the reality is, there is a lot of guys when they hit certain age with certain amount of kids, married and owning business that the end up being in a place where they're questioning their happiness, and it's no matter what their wife says, because your wife was giving you compliments all the time, no matter what their wife doing says, they still can't hear it. They as almost as they have to witness the fact that they are not alone in this, because not being happy is translation, too. I feel alone and this loneliness has nothing to do with my wife and my kids, but I feel alone as a man, and like some will link it back to feeling of abandonment back in the days, but most will look at it and say, why do I. Feel alone, and ultimately is because of the mask that we have to put on right by shit for people by show that you don't want for people that you don't like what is the best example of that buying around drinks, but you don't even like drinking. Right. Right. You start buying rounds of drinks for fucking guys. You don't give a fuck about and you, you find yourself in a weird fuck and plays like am I fucking clown? Am I clown because that's, that's how I painted myself to be. I've become a fucking clown. Yeah. I can pretend that I'm not. But at the end of day, my patterns of behaviors are showing me them fucking clown. I'm not a fucking I'll fucking pussy. I'm, I'm a I'm a I'm a guy that is that he's entertaining. Other guys for the hope of significance and being liked their significantly something wrong in that image. And that's the image that breaks away. Right. When that image breaks away. And when all that fantasy land that we create for ourselves to give ourselves significance when that goes away. Way inside in that place. We become face to face the fact of who we really are. And who we really are maybe really fucked up? But that's exactly who we are right? All of it all of it. There's a beauty that we see ourself, the totality of herself when we step away from the false lifts that we created were self the false lift of belonging. The false left of I'm this person because I have this, or I have this status when we let go of all that, and we say, dude, I'm just me, but I'm looking for bunch of friends. I'm looking for bunch of dudes, just like me. I'm me, but I'm alone and I don't wanna be alone because I remember back in the days, I wasn't lot when things were not complicated when I was younger, I would make friends, I would make friends, and that's it announcing have become super complicated. The other day might my son is having interaction over the text would this kid and this kid is I'm going to beat you up because, you know, you were mean to my brother. And my, you know, my son is like you know, obviously affected by this. I figured us out. And now I find myself getting engaged on the text with this eleven year old, right? And, and so back and forth. I'm like your dad needs to know about this, but you're not going to beat anybody up in the subjects in my son. But our engagement is in such that in a world, that we're so connected, right? Using mobility and, and technology. We are yet extremely disconnected. My son is disconnected to his, his friends, because they're using fucking at ten or eleven using phones to text each other. I disconnected to my son, and I am disconnected to that person because I, I, I don't find myself involve, but I rather trying to control the situation up. That's what I'm doing right now. I'm controlling this situation. And in fact, I shouldn't be controlling this as you I should be involved in this situation. And there was. Ways back in the days to get involved in this situation. Right. You go to something, you know, where do they live, who is this person? I have patience to deal with them the next day. But yet because I have access to these technology, I use it for disconnection I- Texan eleven year old. And I what I do is that I, I create disconnection immediately to satisfy is situation that needs to be solved right back in the days was on like this. You know, you find out where the parents is you go meet up the parents, you have a conversation. Right. And you take your time to solve a problem that is not supposed to be as threatening as this motherfucker telling my son is going to send them in the hospital. Well, you're not gonna fucking Dr ignite, the my son, right. I get engaged, but at the same time this happened to be an eleven year old which means like what the fuck am I doing talking to an eleven year old? And what a fuck. Is that right? What if fuck is that because I'm here, but then I can't blame they Levin your old. I can't blame the dad and I can't blame the system under society. What I what I can look at is my patterns and behaviors is that why do I need to solve a problem immediately when I just need to slow down, and this reaction may be a completely different reaction? The point of this is this is what happens when we start operating alone. Like, the, the, the society environment and conditions are favoring men to operate alone. Yeah. They, they definitely are favoring we operating alone. Yeah. And we ended up not trusting not too many people know, nobody just nobody that, that was where I found myself not trusting single person out there. And I couldn't you know, tell anybody any any of this. I was I, I was just an island. I was I was my own little self. You know, the was cliche thing. No, I'm alone wolf is what they always. Yeah. They're always refer to it as and I never wanted to be that person. But that's where I found myself, you know, cousins, you know, brother, my whole life. Yeah. Couldn't talk to any of them about anything that was going on instead, when we get together, it'd be just a bunch of bullshit, like how great our life was. Yeah. I couldn't go to them and level with them and tell them these feelings. I was having at that particular point. Correct. And as we get conditioned place and today, you're in a place where, you know, you don't want to be around people that don't wanna be like, you know, I that was the most, you know, one of the most revolutionary things for me is that these people that I used to want to associate with even though I had nothing in common couldn't level with them, or tell them anything that was going on. I found myself not wanting to be around them anymore and only wanting to be around people of a like mind, which in my life. Honestly, ended up just being my wife. Yeah. So now when it comes like we're moving halfway across the country in four days and. That's fine. Because I have her there, I don't even care to, you know, I haven't even told my cousin nobody knows I'm moving because I doesn't even matter to me. I don't like I'll tell them when I get there when they text me randomly. Hey, do you wanna go out live two thousand miles away from you? Sorry. So things are growing excited for you to move four days four days from now, bro. Yeah. Released Sunday shit is everything packed my wife's home doing that right now kale. Well, dude, that's commitment. You being on the show. I wanna thank you for your time being here. I'm excited for you in new adventure in San Louis. You're gonna be a little bit further from us. But you know it's just an hour an extra hour to our flight. Yeah. Just ads on a actually, I always typically ended up, this is the first time I normally drive out here. So okay, normally takes me, six hours. So it's the same time for same time. Right. Well, thanks for being on the call. And if you're watching the show, you can find more details about this show on warrior week now dot com will you'll find transcript of the conversation. There's be some coats and questions. That also be audio and video on worry week now. Dot com. This is also available on I tunes and all the other carriers of podcast device, and as well as recordings, thank you again for being on the call and gentlemen. We'll see you on the next one. Getting how lost I in. While you're.

marketing and sales business owner partner engineer fucking island Brandon Brendan PNL Brennan WADA Garrett Inara United Kingdom Bowie Bama Kim Italy
Julia Aquino Pt. 2: Know Your Numbers to Grow Your Numbers

Business Scale Insights

25:54 min | 1 year ago

Julia Aquino Pt. 2: Know Your Numbers to Grow Your Numbers

"Welcome to business scale. Insights with Kimberly. Marie bonner. Listen for commentary interviews and information on how to grow your business for all the details. Contact business scale insights network dot com. So empire builders are you ready? Here's Kimberly Marie Bonner. Hello, empire builders and welcome back to another episode of business scale insights, and I have the honor of interviewing Julia Aquino Serano, who has spent twenty years in finance strategy and operations. You don't look at day over eighteen girlfriend. She has her bachelor's degree in finance and an MBA with a specialization in accounting. She also understands how to simplify the complexity of finance so we can utilize the power of our financial information and reports to both manage and build our businesses. I've brought Julia onto the show. I consider her a friend, but I also wanted her to share her expertise with the listening audience because I think financial industry is just a big area for business owners. That's just missing. I, I see it over and over again. It's gonna like groundhog day when I deal with the new client lake their basic pieces of their financial life of their businesses. Financial life that they don't understand. And I don't have an accounting background like you. And so I many times point them to their CPA, but unfortunately, there CPA's not like Julie. I wish I could clone you. So I'm trying to do that through this show. Many CPA's do not know how to teach these concepts or they don't care to teach these concepts. And hopefully you know this show for those who are listening, listen to part one because Julia goes over so many wonderful concepts financial concepts. And then also you can visit our website business Gill insights network dot com for a replay of the show. But before I go any further if people want to take a course from you, if they want to learn from you, they wanna follow you and be just become like, you know, just a follower devoted of Julia. How can they contact you? So I have a few Email addresses. Start with the main, too. So my consulting company all systems grow dot CO gives you formation about the consulting side. And then she defined dot com is my work workshops, retreats and coaching for women in on she defined calm. We actually have a really cool workshop going on right now called the zen of finance in. So if you go to she defined com type in zen, the workshop will come up, and you can take a look and see if it's something that you would enjoy. I highly highly highly encourage anyone who's listening to this broadcast to sign up for that. Although if you're a guy can you sign up for the him? Absolutely. Same everybody same concepts. I have to ask, because I know some guy was a kid, I'd do it to of course. But really I again I love my CPA's out there. But unfortunately, I have. I've not come across that many CPA's that teach their clients. So you're giving an invaluable service to everyone out there. And so, before we started recording, we were talking about this concept and you've talked about it with me. Many times of paying yourself. I if you're an entrepreneur of you're starting your own business paying yourself first. What's that? What's that all about? And why do you believe that so so passionately that that's very important? Sure. So I'm sure many listeners have or may have heard of the lean startup all kinds of books about bootstrapping, and, and we all start, you know, I have three companies we all start with really tight budgets and making sure that we can get the company off the ground. And I totally respect that in bleed that's necessary in an entrepreneurial environment. However, what happens with many entrepreneurs is if they have any money in the. Bank or any ability in the Bank to pay themselves to keep their their life running at some level, they won't pay themselves at all. And so what happens is everyone around them gets a paycheck, and they don't until such time as they quote can. But what happens is they keep hiring and keeping others. Never pay themselves to three years in their burnt out, and they're resentful in their done, or worse. They don't have any money in the Bank, but they can't pay themselves, and they're just so busy, keeping their head above water that they're throwing money out there to do everything that everyone's telling them to do instead of really looking at what paying themselves something even if it's small to begin with, and then utilizing the money that's coming in to obviously move the company forward. But if you don't pay yourself, something at some level, first of all, there's IRS implications. At some point. And you know, but really getting to the point that you value, what you're doing. You're working sixty. Seventy eighty hours a week. It's, it's very, very difficult. If you not get your company to a point that you can pay yourself something. Now, you can grow that something to the point that it makes sense. You don't have to take every penny out of the company, you need to reinvest, but really getting clear on not only what you wanna pay yourself. But then creating your sales plan to make sure that you can pay those around you and yourself create the sales goal from that place. It's so funny because in my experience, I've seen two types of business owners kind of like bipolar business owners on the one hand. They're the people who don't want to touch anything. They don't wanna give Alary. They're just petrified of that for whatever reason, and then the other people who are, greedy, is out. They don't care about really reinvesting in other than themselves and a car, and, you know, have you seen that kind I see it all the time on. Fortunately, and so, you know, you've talked to the, the business owner who doesn't want to take salary. One out of the people who are just like me me me. Me me. Offering. They're pilfering your own company. So neither business owner is going to be probably, I agree. And so you need to sort of meet in the middle. And I think in, in the first show we did talk about people that take everything to all the profit out, right? And that's dangerous. You have to reinvest in the company, so really it's understanding what you wanna get paid within reason what others around you need to get paid to do their jobs. Right. We need to operate the business and scale it. And then really start to decide what that looks like from a budget perspective and build your company that way. Absolutely absolutely. Well, and these issues also go to two concepts that you talk about in your courses being bankable, or is it lendable Lennon's, I'm sorry, Linda ble, and my Mansell. What are those concepts all about? Well, this is this is actually. A great conversation to be. And I'm sure you've run across this where entrepreneurs start making money and they start didn't have a positive bottom line, and then they're like, what I gotta pay taxes. So, so then they're like, well, I don't wanna be types. And so I'm gonna run some more stuff through here. So I don't show a profit. No, no. I I made a profit night. I made some money over here. But I'm gonna show that I didn't make a profit and so I didn't have to pay taxes. Well, guess what? They start growing two three years down the line. They go to a Bank to get financing in the banks. Like, will you never made any money then? No, I did. I did I made money. But I took it all. Now that doesn't work. It doesn't work. So you, you have to really your bottom line, your net income is so important to being lendable or financial and also cash flow. So again, remember, we talked about that net income of one hundred thousand dollars on your profit and loss from on the first show. But yet, you don't have any money in the Bank rate, your cash flows negative, because you're spending it on the balance sheet side, you have to pay attention to that as well, because the Bank doesn't just look at whether or not you have a positive net income rate, I made money, they also want to know that you have cash flow to cover the debt payments, and so you have to pay attention to how, and where you're spending your money and you have to strive to pay taxes. You have to strive to be profitable. So true. So true. Well, people think that they're getting away with it, and I can understand particularly in the early early early stages of a company, you don't want to people want avoid writing big checks. However, you know I've dealt with companies at been have been in existence for ten fifteen years. And, you know, I asked immediately to see I always no, it's not gonna go. Well, when I asked to see the PNL and the if if the business has been in existence for over ten years, and it takes it. I get well. Let me talk to this EPA, and I'm like, oh, it's just so funny, because they come to me, and they wanna they wanna let say franchise, their business. And all I see is. For lack of a better word, you know, accounting jujitsu. That makes them look legacy. Are not profitable, but it's clear that they are profitable. Right. But it's just all over the place. And it just looks like they're not profitable, and I say to them, honestly, you're not going to get any one who's really saying investing in this business because at some point someone is going to ask about profit. Yep. And the financials. Yeah. Some- somebody somebody and I, if and if you're not prepared to I like to use the word open the KOMO, no. And get some somewhat naked with people, then there is you might get your cousin, get you might get, you know, member, the, and it's not a bad thing. You know, they're BFF from college or whatever like that. That, that might be your first few franchisees. But beyond that, you're not gonna get a really talented savvy. Franchise invest. Or because they're just not. It just doesn't add up not saying that they're gonna use the same calculus as a Bank. But the there are the are going to be looking at the kind of the basics, the financial basics of your enterprise, and they're going to ask you questions. They're going to ask you pointed questions and any franchise developer that tells you. Oh, well, you know, you should hide that none of the in my opinion. That's very short sighted. I try to disclose kind of financial information in the financial of the, the, the franchise disclosure document. And I just basically say, let's, let's put as much information out there in that item, nineteen as possible, if it's good, right? Yeah. If it's not good. Maybe you shouldn't be right now. And, you know, a sitting it out a few years until that gets kind of cleaned up. Not everybody believes, like I do, but to me, one of the greatest ways to get buy in from any. Anybody not just a Bank. But however you wanna angels these sees franchisees is to really not to have to have to have a financial kind of. Statements that are readable and past the past the I'm not be Essen test. And then people are like, okay, this is this is a sound business because how else can anyone really tell if it's a sound business, right? Why think too, that it's really comes down to whether or not you wanna lifestyle business or a scalable biz agree. I agree. And people say they want scalable. Big not behave they're like a lifestyle business. You know, if you want a scalable business, you have to treat it with care and do the right thing, no matter what. And that includes pay taxes. It is so absolutely absolutely important. But I don't know you know, but this EPA's go kind of go along for the ride with that. What's up with that? So I think a lot of times, and I can't speak for other. I know. But I do think that a lot of times, they will follow the lead of their client. They won't do anything illegal, but they will help them to maybe manage their taxes. Right. But to your point, and this is again, why I have you on the program. CPA's and I love all you CPA is out there. I'm not beating you up. I'm just telling you sharing my own personal story. You gotta do more than just what the client is saying, when, you know, long-term, if they share with you, I have a vision or scaling the business, you gotta sit there and say, you know, if this is what you wanna do on term, and it's not a lifestyle to your point business. You know, we gotta pay some taxes at some point, but you also know that CPA's face the same stuff you and I face, which is the give him the opinion. And then then by the person goes they want to do. So that's the other side of this. I know. All right. Well, we will be right back after this break. If you already have a proven business model, but have concerns about the best way to grow and scale, then you should contact the experts at new day consulting systems. New day uses innovative techniques to ten times the impact of your business. Your local business can become a regional national or international enterprise. New day consulting systems will show you how for more information and to get started with new day. Visit the website at new day consulting systems dot com. One one new day consulting systems dot com to get your business off the ground and into orphaned, contact new day to day Kimberly Marie Bonner helps millions make millions. I'm business scale insights, Thursdays, at twelve thirty pm on WSB business scale insights, helps your business move from startup to scale and his sponsor by new day consulting systems. New day consulting systems can help turn your business. Into a franchise and scale globally interested don't their website, new day consulting systems got calm and don't forget, the tune in Thursdays at twelve thirty for business Gail insights with Kimberly. Marie bonner. And we're back. Thank you guys for coming back. I am interviewing Julia Aquino Serano, and we're talking about financial literacy for business owners. And so hopefully, you have been you've stayed tuned. We're in the final stretches at this episode. And I wanted to talk to Julia about issues related to women business owners because she's done a lot of work in that space, and we kind of scratched the surface, a little bit when you talked about women in numbers and kind of being a little paranoid about it. And so share with the listening audience your work experience. I know your past presidents of Nabo, and you'll explain that acronym, and just is there a difference between the genders when it comes to business owners and how they approach finances. Thank you. Sure is so I am past president of novel Broward, Palm Beach, which is the national association of women business owners. It's. Forty five year old organization based in Advocacy's for women business owners, so work. They've done is amazing. And I've been in on multiple stages. Speaking about women in business, and fear, and all those things that makes us unique, and I'm really really knowledgeable because I happen to be a woman. And so as much as I may seem like I got it all together. I haven't plenty of moments. I get it. And so what I find really working with, and why I really have moved into a niche of working with women. Business owners is we do things differently. We sell differently think differently. We allow things to stop us, that may be your male. Counterpart may not and we have different fears and a lotta times we allow them to hold us back. We're all sit in front of a room of two hundred women and say, how many of you have a big vision or a dream in less than half? The hands will go up, well less than half. You gotta be kidding. No. And I literally stand on the stage, heartbroken in the moment. And then, but my job on that stage is really to get them to embrace the fact that they get to have a vision. They get to have a dream. And so in the business world, what I see is women. A lot of times, you know, valid or not will. Will start their business so that they can have a lifestyle business. So they cancel or pick up the kids from school, but they still want to do something really amazing in the world. So kudos to them in you build your business based on that knowledge. And then I have women who have their feet in two different boats. They're building lifestyle business, but they talk about scaling, and so really helping them to move into the scaling side, actually requires them to walk through some fear stuff because in the lifestyle business, they're able to their thriving their surviving. They're making enough in their having time with their family, but now they're like, oh, I might actually wanna build and scale this, but you have to move that other foot that steady foot into the rocky boat of scaling and growth in that is very scary. So really working with women to get through to that big dream. Why is it so scary for women in particular? I think the failure. Actor, you know, when, when we're building a quote lifestyle business, we don't have to prove anything, anyone only, we know for making money or not only, we know if, if this is successful or not when we actually get to the point that we wanna grow in scale you've really stepping into a big big big role, many times, you're really taking a leap and responsibility and responsibility. And then when you start hiring now you're responsible for other people's salary, and you're responsible for making sure they have the work and women, and I include myself and almost every woman, I know there's a perfectionism and you can't be a functioning entrepreneur business. You, you will die. Missile die. You'll die you'll ever nervous breakdown talk about that, because that's, that's massive it. I. I'm going to use. I was dealing with a. A person. And she had this issue related to possibly taking a leap of faith, and scaling that, and it was related to not having all the is dotted and the. And I was I and I tried I tried very hard to explain to her, that this is normal in the business world as long as the people that you were doing the scaling with appreciate everyone is disclosed. These are the risks involved, and we do this, and there is obviously Orissa this is gonna take. Right. We've done all part both parties of dumb their due-diligence. But if we shirk back. There is there's, there's possibly a greater risk that you're going to be left behind in the market. So can you talk about that whole perfectionism thing when it comes to scaling because to scale you just you're gonna break a lot of stuff you're gonna make a ton of mistakes? You're gonna miss fire, you're gonna miss higher. You're gonna it's gonna be. It's like, oh my God. It's not it's not pretty when you're growing. Well, so Kim really think about what perfectionism really is. Okay. Fear of making a mistake. Yeah apps. Here of people seeing you as less than perfect fear of, you know, messing something up fear of the world not being successful. And I was one of those I was one of those chicks, I really was, we all were we all were because in perfectionism we get to stay stock. You have to step out of perfectionism and be willing to fail to succeed, and that's here. And that's why we get stuck in. Oh, when I have a hundred thousand dollars when this happens when that happens now I can tell you from living life for all these years, the win is never gonna come in exactly the package. We think it should. So we will never have that perfect moment to do the thing, we say, we need to do, so you need to let go of it. You need to literally let go and be okay with failure with falling with making mistakes within not turning out, exactly as you envisioned because what how it does show up in the lessons. We learn along the way in our ability to grow in scale comes from learning to fall. How do you learn to fall by falling? All right. Philosopher. Financial philosophy by. Well, I mean but falling is just not cute. It's not pretty. I know as girls were taught to be sugary might hand. And we did it cat us. We know. Oh, my word tot serves us at some level until it doesn't. Yes. And if you're gonna sit in your little box in your little perfect life in your little perfect house in risk. Nothing it will serve you. But if you want something greater, and bigger, you have to risk you have to fall, you have to fail. You have to be okay with getting back up and trying again. Wow. Did you guys hear that? Did you ladies here? That, that's a lot that's a lot. So if, if people wanna hear more of the philosophies. Again where can they see you? I know you're doing so many different things you're active in Nabo. You've got all of your workshops, you've got your clients, you're also doing a lot of philanthropic work so pick one and plug it hard to the audience. Okay. So, well, I'm gonna go philanthropic. Okay. So I was just named event chair for American Cancer society's making strides against breast cancer for southern Palm Beach county and I am a breast cancer survivor. I am six years cancer free. And so the walk is going to be an October. And I would love to see everyone there. But if they want to learn more about me, she defined dot com, also grow dot co. Follow me on Instagram Facebook Twitter. Look, up my name, I'm there and love to talk to anyone that has questions. Definitely reach out to Julia. It'll be more than worth. It will change your life. Not only your business life, but your life trust me. She's done that for me. Read the book she strategy. She strategy book. Yes. Thank you. All right. Will that is up. Our time is, is over and come back next week on business skill insights, thank you Bye-bye. You have been listened to business scale insights with Kimberly Marie Bonner to get her personal attention to use in your go-to business scale insights, network dot com. That's business scale insights network dot com and tune in again next week or more from Kimberley Reid bond with business scale insights.

business owner Julia Aquino Serano CPA Kimberly Marie Bonner Marie bonner Gill insights EPA Nabo Instagram Julie WSB American Cancer society cancer IRS Alary lendable Lennon PNL KOMO
Navigating the Numbers

a16z

27:04 min | 4 months ago

Navigating the Numbers

"The content here is for informational purposes. Only should not be taken as legal business tax or investment advice or be used to evaluate any investment or security and is not directed at any investors or potential investors in any a sixteen Z fund. For more details please see a sixteen Z DOT com. Slash disclosures hi and welcome to the Sixteen Z podcast. I'm DOS and this episode is all about with the numbers both financials and KPI's do and don't tell you about your business. Our guests for this episode are a Sixteen General Partner and managing partner Jeff Jordan who previously ran several businesses and took a company public right after the two thousand eight financial crisis. David George who runs our late stage venture operation and Caroline Moon who leads our financial operations. Practice helps companies with their own best practices. She's also a former CFO. In conversation we cover the most common mistakes people make when it comes to understanding numbers one investors think when they look at a company's profit and loss statement and why how investors use metrics to determine if a business is healthy and how some founders may use them to navigate times of crisis we begin though with the basics of the three core financial statements the incomer. Pnl's statement the balance sheet and the cash flow statement. The first voice you'll hear after Caroline's and mine is Jeff's followed by David's especially in the early days of a startup. They'll just trying to do cash accounting and that's just literally how much cash it had the beginning of the period. How much do I have the cash at the end of the month? And that's not the same thing as what a piano Show because you're pl paints the picture of how your business did in a particular period of time measurement whether that's quarterly yearly or the cash statement then reconciles that with. What did you actually collect? And then everything that happens on. That cashless statement then ends up on your balance sheet and the reason why it's important to be able to present it in that fashion. It's called generally accepted accounting principles so gap accounting is because that's how everyone understands that. The comparisons are apples to apples when you look across companies so when you are trying to figure out how a business is doing. What are the financials that you look at? Typically the early investing. You don't emphasize financial metrics of that much. Because usually there is an immature market. I tend to focus much more on. Kpi type metrics users daily to monthly users engagement and things along those lines and then the financials tend to emerge over time. Yeah I would say I care most about to very high level topics that the later stage the first is. Can you demonstrate that you can have very persistent growth? And then secondly how profitable will you be when you reach scale? But I spend less time for later. Sage high-growth companies staring at their balance sheet than I do. Kpi's income statements and cash flow in the main thing. I look for the balance. Sheet is the comparison for how much traction they have on the income statement and the cash flow documents relative to the amount that's been invested in the company. So for me. The most important balance sheet metric early is how much capital is. The company deployed to get to where they're going. So how do you guys know when a business is truly profitable? You know I do think you go to the unit economics and really understand them but this is often a lot of art as well as a science. Some of the most frustrating interaction I've had with companies are where they're presenting that their unit economics work but the business isn't working and so I had one where okay we're capitol efficient. The unit economics are working. We acquire users. They're profitable in three months and the company was hemorrhaging cash. It turns out the unit economics actually working the cash flow statement was the arbiter of truth and the analysis that the company had done unit economics is wrong. Yeah I agree. I think lifetime value is one of those traps. People fall into you. Know they're assuming. Oh you know. Our customers are going to stay with us for five years three years so we've got plenty of time to do the pay back but that's the key driver to whether or not you're unique on work. There's nothing that's less consistent in the market than how lifetime value to cost of acquisition of the customer. Ltv GAC is defined. What I always council companies and I like to see is very transparent calculations of what goes in to. Ltv Side Macaque Saad so the LTV decak metric that I like to look at is for the. Ltv The lifetime value side. I always use gross profit not revenue in an I like to use a shorter duration and founders typically like to use so. I like to use three years often. Founders present five years and the point I make on that is that five years is too uncertain a long period of time whereas three years is much more visible use actual retention statistics that you've experienced in the past two project. Those three years the thing that I really try to emphasize founders when they talk about these kinds of metrics is look this is not about necessarily showing investors. This is how you have to run your business. What am I spending on marketing? What am I spending on my rnd? And how much is spending on Gina? And and is that the level of investment that actually making in my company. So you need to be as honest with yourself as possible as to what all these things cost you in what you're really generating in terms of revenue. Because if you can't be honest with yourself you can't run your business. What are some of the other really common mistakes or things that founders do in presenting numbers that you'd want to help them correct? He'd like to see them do differently. You know one. Tell me where business probably struggling is when they come up with northstar metrics KPI's and then when they come back to report on a quarter later they've changed and then they come back a quarter later and they've changed again and what I found a little bit of pattern recognition is when the KPI's change all the time it's largely because they're not working and the company's trying to navigate through it for me you pick your metric report on it and ideally your understanding of the business improves over time as your metric in your models are either validated or invalidated. That leads this interesting question. I think of the psychology. And how you look at your numbers. So how do you manage your own psychology? So that the numbers are a tool. Not this obsession. Where it's like my obsession. Is I wanNA reach my KPI. So I'm going to keep adjusting my KPI. So I do you know the reason. They so defined the three financial statements is. It's kind of truth seeking and trying to fool your investors or for lack of better word or you're bored. I don't want to let them know how bad things are by. Not Telling the truth to your key constituents. You often run the risk of not telling the truth to yourself and so I've had a couple founders. Where sometimes they fall prey to it themselves where they believe their own machination nation and then the board investors can't help them based on the truth. What do the best founders do especially in challenging moments like win the finances and the numbers? Maybe aren't going your way or you know that you do have to tell a difficult truth. They typically knowledge it they take it adds. The truth isn't what I wanted it to be. So now what can I do to change the business to improve the truth? The only thing I would add to that that I've observed from some of the best founders of later stage companies is. They're very careful not to drown themselves in. Kpi's so you can actually inundate yourself KPI's but the very best ones take out of very few handful of metrics that they think are the most important drivers of their business and if they see those divert from where they would like them to be they dig it in from there. So for example Ali from data bricks always focuses on the productivity of sales rep because he believes that indicates health the business in many different ways. So how well is the sales organization actually functioning? What are the market dynamics? What's competition how is the product performing? And you do get a real forest for the trees. I have companies that will present you fifty pages of metrics based on the last quarter and you'd just drown versus. What in here is really important. What are the key? Ones are the one or two that matter the same for every company or does it depend on the nature of the company and the stage that they're at. I think to some degree some of them are the same for instance retention should matter to any business model spent money to acquire your customer base. How long are you hanging onto them find? They are consistent by type of business so workplace. Metrics typically have a lot in common with each other. But they're very very different than ECOMMERCE metrics. The key commerce metrics typically center around the efficiency of customer acquisition and LTV Macaque. A lot of marketplaces. I work with. Don't spend a penny on customer acquisition. So it's got organic distribution or something like that so comparing across models can be challenging comparing within models can be very helpful so for beat. Abi Companies for example the efficiency with which you spend a sales dollar whether it's on a rap or marketing or bottoms up sales inside sales outside sales is always one of the most important things that you look to things. Change markets are unpredictable. Which is something. I think we're seeing now more than ever. How do you use finances to make better faster decisions especially in uncertain times you know? I started by career in finance ended up. Cfo At the Disney store. So it's near and dear to my heart. The typical finance function is conceived of as kind of keeping score. The accounting control function. Just reporting back for me that was necessary but not sufficient. The finance function has access to all of the key data and so I look at them not only to keep score but to score points to make the business better by leveraging their access to the information and to the trends and to the unit economics to improve the business good finance leader needs to work with the CEO to make sure that the company has enough money to not just survive but thrive so that is becoming super intimately familiar with the business not the financial statements not the accounting that goes into developing these things because those records on what's happening at the business level. They really need to understand how everything works. And then where are the levers that you can change that you can pull on? You can push China to accomplish the things that you WANNA do as a business in the timeframe that you need it all backstopped by with the cash. You have on hand. When I was managing businesses I always had a mental model of how physician at mental model typically ideally was consistent with the financial model Ebay at the time back when I managed it was a perfect economy and Ebay is a platform attracted every leading finance professional. Who's into micro because it was one of the most pure examples of a perfect economy if there was an increase in supply. Prices fell if you change the fee structure behavior change and so it's when businesses diverged for my mental model. That you really needed to pay attention. It's like why is the conversion rate going down my God. I've never seen it go down like that. That's a big warning indicator for me so I would typically be pretty comfortable running the business until anomalies emerge and then. I just would need to understand the driver of the anomaly. Yeah I can't say enough how important it is for. Companies to understand their bottoms up for revenue generated. I see a lot of people do tops down forecasting last quarter. We had whatever a million dollars in revenue to Minos revenue and then you go okay historically. We've grown fifty percent or one hundred percent and so we're going to model something similar to that for the next year. And so that's our number and that's got known intelligence built into it whatsoever which is double click on that and go okay so we made whatever ten million dollars last year. How was it made? What was the makeup of that customer base? Who's likely to still be here? Who's going to spend more with Nakazawa? Who's GonNa completely the platform it's in marketplaces? You often get two shots at bottoms up as you typically can build a model based on the supply or you can build a model based on the demand good example at Ebay. We would look at the behavior of sellers and we had this many sellers growing this fast doing this kind of behavior and then you just kind of rolled them together and come up with a revenue estimate. Then we'd sanity check it with. We have this many buyers buying this frequently spending this much and coming onto the platform at this rate. And then you'd run up that number. And ideally the two would inform each other. So one of the best CEOS who I worked with light bartered with was George Kurtz from crowd strike. He had an exceptional business. One of the things when we were working together that we came to realize was his gross margins were a little lower than most other software companies that we were working with. He actually made the decision in one quarter based on that to try an experiment where he made gross margin actually part of the Calculus for sales compensation for the reps in that quarter and his gross margins over the last three years have actually gone from thirty five percent to seventy percent so a very operational tactical decision can have a massive impact on the value of the business. So I wanted to go back to a point. I think Jeff that you brought up of having this mental model of Your Business and hoping that that matches the financials and how then you had those red flag moments and I think a lot of companies right now are having a red flag. Moment because of a lot of circumstances vary beyond their control. I'd love to hear. What are you telling founders right now when it comes to how to think about their financials you know? This is one of the most significant disruptions. I've experienced that. I've long enough career that I've experienced a bunch of them. The bubble bursting in ninety nine two thousand financial crisis. Jude eight two thousand nine. Which by the way we took open table public in. May Two thousand nine so the future is dictated but a couple of things come to mind one is cash is king the income statement. Throw it away. Just look at the cash flow statement. How much cash you have housed the burn. How are you adding using cash over time so cash becomes completely king? Throw at your forecast because the forecast now meaningless. It was based on a bunch of assumptions at no longer. Hold throw the financial print out and start looking really hard things like year over year which typically doesn't lie and then just do tons of sensitivities. And you've got to do it decisively. I always liked this thought. Exercise of how bad could this possibly get? Just let's take the absolute worst. How bad could it get? And I think people tend to do the opposite. They either rate down of like okay. I'M GONNA we're down five percent. I'M GONNA plan down ten percent but if it's going down five percent per day plenty down ten percent just met your plans obsolete in two days and so I found it helpful both from a business. Prut and cash management perspective also from a mental perspective. Don't let this just continue to a road and I get more and more depressed every day. Get really depressed. One day look at reality and then tried to change it. Yeah I agree with the CFO. At a company called ad right in two thousand nine. And I think that what I didn't WanNa believe that you get that bad but we were an advertising network and so unless you were Google and even they were impacted by this. Your customers weren't gonNA advertise the marketing. Departments were decimated so there were situations where we were like. This is just gonNA become zero contracts. That were signed now. Just getting outright cancel so we made a decision to cut really deep and as quickly as possible because we knew that even if we got it wrong at least we could then rebuild the company and do it only once and then your employees are told. Hey we made this big decision. Here's what we based on. Here's our cash position. Here's what we've turned expecting. In terms of worst case scenario you bring them into that circle of trust of what's happening at the company but there's asymmetric potential issues. If you underestimate how bad it's going to get and don't deal with the situation. Quickly the outcome is very well. Be You lose your company. Yeah definitely thousand cuts. Yeah and if you overreact and it doesn't end up being as bad as it would have been. You might have sub optimize your company for some period of time. But it's alive so for me. Mistake is to underestimate the potential of versus overestimating. I WANNA go back to the draft. Said which was this notion of three or four cast out the window very much agree with that. On the top line on your revenue. But you have this whole base of costs that are under. Your control is your operating expenses. And so we've spent a lot of time focused with our companies running sensitivities of. Hey this is your operating expense budget in. What's an operating expenses? Are Your salespeople. Your marketing people your. Cfo function your HR function your engineers product. Those are all people and costs that you have is a base what happens to that cost base in order to preserve cash under various scenarios of revenue. Decline it so. I think that's the way that you have to be managing your business on a very very granular level and especially since companies especially startups. They staff in advance of growth. So you have to really be honest with yourself. I WanNa just also China. Just say look. These are all very very hard decisions and I think Carolina Jeff especially because you've been in the seat of operators during really really trying times. You're probably pretty diagnostic about it but suffice to say it's hard decisions you know people's jobs decisions not to be taken. There are cases where eight at the death by a thousand cuts because people are reluctant to do those layoffs. Make those cuts and believe me. You don't sleep when you have to make these decisions. It's so tough so I don't take that lightly at all but when you're running a company number one is making sure the company can make it through to the other side and so you have to make these really tough decisions and believe me. I understand how difficult that can be. But you can't kick the can down the road. Some of these things everyone in the organization knows that the proverbial shit hits the fan and so if the leader is unwilling to acknowledge that with the team that for me creates a crisis of competence. I always found it way. Better just to call it what it is share it. Try to enlist the team in. Do you agree with this version of reality and try to get agreement and then it's like okay. What do we do but denial and trying to hide it from? Your team is a failing strategy completely. Understand the human psychology around that. Because I think people don't like to give bad news and so I think the natural impulses to hide those things but these are the moments where you have to actually be the most transparent talk about why you're doing what you're doing. How much cash. You've got left how much you want to preserve and what I find is when you do that when you bring everybody into the fold they all become part of the solution so they understand that cash is king and bell figure out ways to be even scrappy than they might have been otherwise. Jeff you've lived through some crises already. Go back to a time when you were facing a crisis where things were rapidly. Changing you were having to make some of these difficult decisions. What was a day in a life like then? And what were you doing? Especially with regards to the financials got a good one for you. So open table in mid two thousand eight at the Board decided. It's time let's go public. The market wasn't good but for a variety of internal reasons for the company. We decided. Okay. We have to get the puck on the ice and so we got ready for the IPO and we did our bake off in August. Two Thousand Eight and did it like on a Thursday and Friday. We inform the six banks whether they got on the offer or not. We told Liman on Friday. They didn't get the offer. They went out of business on Saturday. We told Merrill Lynch they did get the sinement table public and they traded to Bank of America on Sunday so over that weekend. The number of people dining in fine dining restaurants in America went down by fifteen percent in one weekend so we have the ORG meeting Monday morning. I Walk in. Sit Down all the bankers. They're all the lawyers are. This is not going well. You know our businesses in free fall. The bank just changed. The consumers terrified at so it was pretty clear we could not proceed with the IPO at that point because we couldn't predict it but then we just said okay. What can we predict? And so we put it on hold for three or four months and it turned out that the consumer gap dining in restaurants at eighty five percent of what they had the prior year and all of a sudden. We got competent. The business was predictable at that point and we restart the process and went out and ended up being successful offering. How were you looking at the financials? During that time. How did those come into play as you went through that we were watching the year-over-year change in reservations people? Dining reservations made daily. Just like okay. Where's this business going? Because if it kept falling one of the scenarios we concern by his more and more people would stop eating. They got more and more nervous about the economy and we'd go from revenue of extra revenue point three x and the business would have been hugely stressed at Revenue Point Three X. So we were watching that the one key norstar metric of diners per night year year maniacally and that ended up giving us the confidence to restart the offering how does a startup founder. Right now approach contingency planning around their finances especially if you're a high growth startup that's been going through cash quickly and been pretty aggressive with your risk taking until now for me yield scenario plan constantly but when a shock hits the system like this shock has hit this system hit the world. Is You WANNA clan quickly? Even if it's bluntly if I was running a business environment I would get the expected outcome. Maybe it won't go. There quickly outcomes a slightly better but also just what is the worst case where could just go and then you build your response if each of those comes true and for me. You put much more time into the plan. What if Ben you do? In the building the sensitivity scenarios one of the less productive activities is making that sensitivity beautiful and accurate and it takes two months to come out within the companies out of business. Yeah just take the bluntest assessment. David and his team has done this for a few of our internal companies. Yeah what we did is. We basically took every company's financials and started with revenue and said okay. Let's start with your budget. Let's run since Tivi analyses for your revenue. Let's assume you hit your budget that you're flat that you don't grow that you declined by twenty five percent or that. She declined by fifty percent in then we compared that with companies operating expense budget and across all those different scenarios. If you run your current budget of operating expenses if you assume you don't grow your operating expenses and then if you assume you declined your operating expenses by twenty five or fifty percent. What is your cash runway in each of those scenarios and we plugged in for each of our companies and gave him. I think it's just a helpful way for them to put some parameters around. Hey if things get really bad. This is what our runway is and often. It helps them just to start thinking about okay. How do I contingency plan in the event of flat revenue? I had never even thought about that before if that happens. I only have this much runway. Maybe I should take action and that I was getting a Lotta Times. Companies are building things as plain is in the air and they solve their problems linearly by throwing bodies at it this is an opportunity to be able to potentially repack your code base to shore up infrastructure to build internal tools to make your team's more efficient. So that when you do come out on the other side that you are primed and ready to just hit the ground running and running a million miles an hour because you have now built the foundation that you need to be able to really scale your business. A company called Ad Bright. We were an AD network. This was before Amazon web services was really a big thing. And so you had to have your own data centers which means you have to buy equipment that we were a very capital intensive business and what. We realized that we weren't going to be able to afford any more to be constantly replacing our drivers. We just did not have the money to do it and our CTO had been playing around with this thing called aws brought it to us and say one. We can't afford to upgrade our server. Even though we need to end to this is gonNA probably in some ways improve our gross margins because now we can flex up and down when we need the capacity. So can we give it a try? This was you know cloud-based anything was still pretty new. This was two thousand eight I think. Aws Launch of two thousand and six so we became data customer of theirs at the end of the day. When we came out of the crisis we were pretty much cloud ad serving company. We deprecated all of our data centers when we just moved everything to aws. So what bottom line advice right now are you giving to founders one anecdote about the two dozen credit crisis when housing prices dropped? Thirty to forty percent. If you were to interview people on the street who own homes you ask them. Hey what do you think the? Us residential market is uninformed real estate values. They would across the board say. Oh it's down thirty to forty percent and would be asked. What do you happen to the value of your own home? And they say oh nothing nothing at all. It's so fine it's not down at all. It's like well. That's not how average is actually work in south. No one believes that it's going to happen to them but believe me. It is happening to them. And that is the thing that I want to understand. You are not going to be impacted asymmetrically compared to everybody else. You're not going be that outlier more likely than not so. We've had a lot of advice in here on like confront reality decisively plan for the worst case scenario. Plan worst-case Sake logically that is pretty darn challenging on the founder. I mean I've lived. I understand there so that brings the point that it's just incredibly important for the founder to manage their own psychology and I think probably the best resource I've read on that events book. Hard things about hard things you flip from time to time people are looking for you to lead. And you've just got to take the horn but I always was most uncomfortable with my personal psyche. Things were going great. I mean when open table is trading for like twenty one times forward revenues which is an absurd valuation. I was jumping out on my skin. But once you confront the fact that okay. We're in one of those moments and I need to lead out of it. I actually found it after an absolutely miserable X. Hours I found it motivating. We can get over this show what we can do for me. Founder needs to confront reality quickly and then they need to lead and you can lead your company through these things and get to the other side then. Things will get better again. But the biggest thing is manager psychology actively. I just want to thank you David. Thank you jeff thank you caroline for joining us on the podcast today. Thank you thank you.

founder David George Carolina Jeff Cfo Ebay Board Caroline Moon China Jeff Jordan aws CFO Sage Pnl Sixteen General Partner Abi Companies
Jamil Damji shares how his dream became a reality. How a few friends created KeyGlee

Real Estate Disruptors

1:08:45 hr | Last month

Jamil Damji shares how his dream became a reality. How a few friends created KeyGlee

"Everybody the thanks for joining us for today's episode of Real Estate Rough Thursday. We have Djamil Damti four time. Repeat offender amazing. I mean I'm honored you I'm honored. Thank you Steve. I appreciate you having me on again and It's been a journey. It's been a journey so today Jamila GonNa. Share how an idea became a dream. And then became a reality the story. How quickly became a franchise? visit First Time Journey, and I'm Steve trink founder of the fast homes out the only off market, wholesale properties and I hope entrepreneurs business support their family, lifestyle and goals through mentorship. I'm on a mission to create one hundred millionaires and we'd better workshop in actually two weeks so if you want to check that out, disruptors dot com slash workshop. The feedback we've gotten is. Way more information than they expected and way more transparent than they thought really possible because they've never seen him when exposed their business that much. It out disruptors DOT com slash workshop. If you're excited for today, show, please give me a wave. Give me a thumbs up as a friendly reminder. I don't charge a die for the show I. Don't make any money doing this series all I. Ask would cost you listen to this show. If you get value today, please tell a friend. You can share this episode right now. Tiger from below or telling your best takeaway from the show later on that way we can all grow together, and this is a live show, so please ask your questions for Djamil to answer. Ready. Born ready, Bro all right so number four talk about it. What's going on man? It's A. Lot of a lot has happened right since the last time I was on the show actually the last time I was here I was with pace. and that was amazing. We we went on tour. It was beautiful I mean my brother. You know he's just that pace jamile. Do America was probably the most fun I had because I got to get out into the country and see and meet people that are watching us and watching the show, and and freeing the Gospel and preach the Gospel, version, collaboration and It was life changing and then covert happened. And we'll minor little, minor inconvenience, global pandemic and but you know I I. I was I'm really thankful for that time and you know paces going on tour again with Laura. They're going to be writing. There are RV around the united. States and visiting or whatever the Yup Yup there airstream and you know I'm sure he'll be cooking Korean barbecue in there But guys if any of you. Know Pace follow pace Go Out and meet him. He's going to be in in America and wanting to meet everybody. Him Up on instagram and catch him when he's in your town. Yeah, so. I think that a lot of people know your story Rather Watch episode before, but I just wanted really really quick recount. Right so Can. I posted this? I think on on on instagram. Og? Mentor right. You're the one that coached me. Kinda showed me what was possible even though I. had you know someone else I knew doing it as like. Some really work. I don't know. But you were the one that helped me. You know Kinda see this well. You know it really you know. A lot of people say that The first one do is the ones like man. This is real right, so you're the first one to help me make. I. Love it right and so kind of walk me through so. We met. One like two thousand and thirteen. Yeah, doesn't I thought, but yeah, twelve, thirteen, twelve thirteen, and so when we first met. You were on your own right. I was as little broker. Right a not a little broker scary broker. Right but then you know kind of evolve to a friendship, and then at some point you had this idea i. did yeah, what was his idea. Well the idea was for something big right, and so I remember it very clearly jokes I and I had been hunter. My sister included so the four of us. We had been loosely doing deals with each other for about six months, and just I, and I met at kitchen, fifty four in Phoenix and right I said look, I WanNa talk to you got an idea and you know. Hear me out and so. I said I want to build a national wholesale company that is doing deals all across the country that has a branded name that everybody knows everyone trusts and everyone works with. and. I want to call it home Max. I remember that. Yes, yeah, and 'cause. You're like well. That sounds Karma. Point. December. Right Great, the point wasn't wanted it to sound like carmax that was biting. Carmax for sure right, and so I I go register home x Dot. COM CA cost me like ten grand to do it. Yeah I was really ambitious and so just being Joe Cya. He's like I. Love It. This is amazing. Yes, we can do this. Let's go and he contacts a trademark attorney and the trademark attorneys like yeah, no, the trademarks taken so just I caused me so your idea about growing something big national. That's branded. That's everywhere can't with home, Max not original I don not original and be like It's already taken so so i. Mean for a loss, and then we literally batted back and forth. Hunter decided myself my sister trying to figure out what to call this thing. And after meditating when when evening my wife and I were laying around, and we came to the conclusion that we needed to have a word that wasn't a word right in order to get domain dot com. We needed something that we mashed together, but really was the essence of what our business was in the the essence of our businesses, trading keys for happiness, right, and so the concept of key glee came out of that, and so I, floated the name to sign, Hunter and Reema, and all of them were like that is the cutest name I've ever heard in my life, it's super neat and and that was it. That was the birth of the idea and. I mean our first office was not even just is living. Room I. It was SIP coffee shop on Indian school in thirty, six street like that was that was the og office of of where things really began, and thinking back to the fact that it was just a few guys hanging out in a coffee shop, doing deals, which then morphed into a few. Few more people in just is living room doing deals which morphed into a few more people in a small office, doing deals which morphed into taking over the next office with more people doing deals, and then now doing deals across the country, helping people do and learn this business I'm I'm I? Wake up every day. I can't believe it right, so when was this? You probably remember what when exactly he has incorporated. When exactly what he has incorporated December seventeenth, two thousand and Sixteen I believe so twenty sixteen, so, but it was an idea for how long. I, mean you know I had been meditating on growing the most successful wholesale company for about a year prior to that? Where that was what my focus was in, you know in my mind when I would meditate in the morning. That was my goal. was to to build to create and build the most successful wholesale operation in the United. States and that was my mantra. I'm not joking like that's what I would say to myself with. My eyes closed every single day. Yeah, And so I would say a year before that was when the idea really started to take hold of me and then. Know the universe conspires to make your dreams real. It's amazing. If you think about it and you dream about it, you can make it happen you now I'm GonNa make us low personal Sharon of the early. You guys don't make right Christ. I'm not going to be. The goal is to make you feel guilty. Remember Gay so so you guys have heard wash shows I'm totally against you know partnerships. Right, and when united talking. We're talking about is going to be part of this. Not Keegan at time was like. Hey, let's join forces. Raise me. You were human, Vic. We're at the big. Yes, right a with Natalie yes right and so we're talking about you know. the five of US combining forces and I got greedy right so 'cause also you guys weren't the first one and we share this right. We're talking about open door, offerpad Ray, and he's other companies like you know. How do we compete against these guys? And so for me like I said I've always been opposed. The party shows like. You know split in this as many ways. I don't know this. Make sense for me and I've shared with you. Personally I've never shared this publicly, but like I was also recruited by OFFERPAD GONNA. Give me part of it and I was like. Two small. Hindsight. Offer Pass, I'm pretty well. He was doing pretty well a little bit of like. You know like the girl that got away. Yeah, right so just I think I don't know if there's a lesson there, but you know for. People are listening. You know like sometimes. He is not a lot opportunities sometimes wrong. Would you live with it right right, but I don't know just I and hundred. No the Alice this conversation but they they absolutely do In fact everybody was really open to to Steve. Trang round and and being a part of US right You're likable person. You do business honest. They're all of the things and the the characteristics that make somebody a viable choice to do business with. It'd be a partner with you have right in, so yes, by all means that. Everyone will remember that and I'm sure. Just sign hundred watching right now. It'd be like Oh. I can't believe that. You know so I will say that Greek, and that's what I'm getting away, but just sometimes you know. You make the best as you can make. Any with it by something I wanNA share because this is a big part. A big part, but as part of the story. Right and Alexander says is screaming your name here on facebook so. Twenty six scene is awesome guy so twenty sixteen. Russain, okay we want to be the biggest. What did it start? What did it look like? When you guys. I kind of vimy has doing i. mean our first month so in December. think we seven deals so it was like you know. Don't don't the wrong right, but not bad. Deals is respectable. People would want that. A lot of people want that and and I don't WanNa, minimize or or like you know be. Weird about that like seventy is a lot right and. And that's great, but it wasn't exciting at the time for me right and so we did seven deals we. We made some good money, but then like Christmas happened. And the break happened, and then we got back to it in January. January was just like I think we might have done like twenty five and then February done like thirty or thirty five and it was like we got when we got to a point where we're doing a deal dealer day because I remember, that was the mantra in the office. Right? Guys Delay Delay Delay and everybody was screaming that we gotta do a deal a day and we did it right when we hit that dealer day mark it was. It was amazing, right? We Thought Wow, the pinnacle we've we've broken through. We broken through volume record. We're doing things that people aren't doing and this is amazing. And then we started to understand that there was no record. That there was no ceiling that we were really paving a path right and that. We were really just competing against our own numbers in ourselves. Really are competing against yourself. Yes. Yes, so then you start to get weird about it right, so it's like you're really trying to like. Beat your neck your last record or your last record and then. That became the the culture right? There became. What we're trying to do was just excelled in. We'll get more efficient and. Again I can't. I can't give enough gratitude and. And thanks to my business partners because you know each of us brings something different to the table i. mean you know as a like an on the streets problem-solver she'll, she'll deal with tenants and terrible things, and you know horror houses and craziness nothing we would do. Hunter deals with the math and making sure that our numbers lineup in that that were efficient, and beyond that making sure the systems that if each department are efficient and that people are doing the things that they're supposed to do and like. That's not something I wanNA do. A metrics Guy Right. Yep, just I is a world class visionary right? He is the man who who sees tomorrow. And that's incredible, and I am a streetfighter. Like I'm on the front line doing deals like that's my Love I. Love doing deals so much that that it's become a part of my DNA. I I I still do deals. I I love it right. I I remember when Kobe did happen. Pre covert I was traveling around, and I had kind of gotten away from doing deals for like six months or whatnot and then when Cogan happened I was like you know what I'm not. GonNa just sit on the back burner here and let my team kind of look around and see what's happening. I'm going to get out and do deals. I'm going to be the one on my team. That's GonNa Post in slack. That I sold a deal today right and because we have our weekly conversations. Some of the guys that don't know like Jamila and I have sunny ability call and. Talking. You know we're talking about what's going on. What are you doing? I'm I'm hustling William Your. Husband's I'm calling ages I'm calling other wholesalers like Jamila, prospecting. Yes, and no one thinks about Alagoas. We'll have his goal like we want to get bigger. Want to hire people in you want Harvey as the co- call, which is great I'm not saying anything wrong about that. But isn't your Da, it really is you're wired for if your wife for it then. You're you're? You're never gonNA. Lose that you're never gonNA. Wonder what's going on with your business per se right because I can always just know that I can pick up my phone and make money. Yeah, right, I can pick up my phone. And there's power in that right. It's it gives me it really just makes me feel like I can always control my destiny. Yeah, and I'M NOT GONNA. Let it pandemic affect at night in the way, not at all, so I want to come back real quick because we're talking about a culture. Yes, so some people. Have said when you go to visit keithly. kind of feels like a cult. Right. and. I look at that as a compliment, it is right in fact. I gave a presentation Houston about how to build your own Colt. and. The reason why I say that is if you look at the root, word and culture exactly. Right if you don't have a cult like atmosphere where everyone's drinking the Kool aid. Things can get Kinda Outta hand so like. Having a Colt. Means rowing the boat in the same direction. Everyone is bought in on the vision. So you talk about how you guys are building a culture maintaining your culture. Yes, so it always goes back to the core foundation of the company culture, and it's the foundation of love right? There's two things in the. We believe there's two things in this world that are real fear in love. and. You can build a company based on fear because we're we're. It happens. You know Wolf of Wall Street for instance. If you've watched that movie, and you think of the way that that atmosphere looked, it was fearful, although was scared of something, it was scared not to win scared not to make money scared not to this cared to look bats. Get you know the fear, fear, fear fear fear. It's a driving force in. It's very powerful, but it's negative. Right and at the end result of fear isn't what you want. No, and and so we looked at it and think want you think you want it because it does come with the cars, the house and the things the material things that that success says you have. You're supposed to look like. Yeah, but inside you feel like. right and that's what happens with fear on the other side love. Is a more powerful much more powerful and universally binding emotion, and and I might opinion the only thing that's real we start there, and so everybody in the company comes to their job every day, and they say how can I support? How can I love the people that I work with my the people that work for the wholesalers that were selling deals for the sellers that are behind that deal and the buyer. That's buying that deal. How can I bring my best to the office every day? So that I can show them I. Love Them Right and. That is where the business happens and I think you absolutely need to have this because you've got thirty people. And then I'll believing in the same thing, right? This is gonNA utter chaos, utter chaos that and then you know there isn't. There is an abandonment of like this sense of I can't do this right. Look There's there's a guy on my team Andrew Right He's one of my best friends. He moved here from L. A.. On on a hope, certificate that I signed right I said he was. He was needing a change in life fee was out of a leaving situation leaving a job and it was like I. You know if you know anybody in property management because that's what he was doing like luxury property management Beverly Hills. And know of anyone, property management I could use a change of scenery. I'd like to come out and see stuff and I was like drop everything. Sell Your Shit and come work with me. And he did. And this first months were terrible for him right. He wasn't making the money he wanted. He wasn't having the things sexy. The success he wanted it didn't look the way he expected it to look. And he called me, and he said let's chat and we met at Native New Yorker because I, love chicken, wings, and I, and I just said to Andrew I. I want you to do me a favor. For the next little, while even though this may be something that you don't WanNa. Do I want you to wake up every day and I want you to meditate on what you want. Like how much money do you WANNA make? What do you want your life to look like and I want you to forget that that feels weird to you and may might sound stupid and crazy and his and his complicated. As you think that can be, do it. Do It for me. Do It for you. And I and I'm telling you know word of a lie everything that he wanted to transpire. He is living right now as awesome, and and that is is so powerful to me that I can. Tell somebody. This is what I did. They do it. And they and they achieve right right that that. That is what the culture is. The culture is that we're not trying to Have anybody sell their dreams to come and work for us? It's hot. What do you dream of? What do you want? Come work with us and make them happen right together exactly so I'm to take a quick detour here. Because you on. Also hotline part of paces marathon crazy. Yes, marathon and there was something he said there someone asks you about the legalities of wholesaling. Appropriate topic for this. PODCAST, Scher you want to elaborate on way. Someone's asking you. Do you think wholesalers will ever be illegal? I don't believe that because I believe in the inherent. Value of a contract and America's built on contracts right. The declaration of Independence is a contract. All of these are contracts. These are ideas signed and ratified by people who say that we are believing in this contract, and those contracts can always be assigned right right and so. I can assign my interest in the contract, and that is just what I am allowed to do as an American as a capitalist as somebody who believes in in what we do here, I can always have that. To me I do believe that regulation is around the corner. We we've seen in Illinois. Yes, potentially in Oklahoma. Yeah I believe that regulation is around the corner and I'm not opposed to it. I really am not. As you know because you're a broker, everybody I keep these licensed. And we did it that way from the beginning because of that because we wanted to have our team be cognizant of the rules, the regulations the way to. Do this business in the most genuine and and and really. Above board way as possible right and if you do that, and if you come with that spirit I think that. There should never be a fear of regulation. Regulations Are Fawn, right but no. I don't believe wholesaling will ever be illegal I think it'll be regulated and I think that will will all have to get licensed but guys like getting your real estate licenses, not rocket science, right? It's I wish it were, but it's not. It's not it's. It's like getting your driver's license. Maybe even easier, yes. Yeah I mean it's like passing a breathalyzer. Yes, well, you know there's there's either you pass or fail out A. With with with the real estate exam is is is. Passable and you can do it, and it doesn't take a lot. You just gotTA study. It gets in practice tests. Learn the practice tests, and and get your license and then don't think about it anymore. Right and I'm just so just a quick plug for everyone wasn't in case he hasn't here. Keegan's licensed at stunning homes real because studying realty is the best brokerage in Arizona. Fans down country, but I don't have words in your mouth. country. So let's take A. Step back again, so you guys partnered up twenty sixteen and your vision that they bought into biggest wholesale operation in the country. Correct while everyone's happy in the process. So, what was the? Were like you know like having an idea is great. But. You have to execute it. You have to have a plan. What that plan look like you know. It started with really just iron hunter in the beginning, wanting to extract the things that were in my mind, and in hunters minded in their mind, and then systematize it because they were doing a lot of great things, but they were. You know really rudimentary systems at the time right like copying pasting texts, and like not things that you could really scale with myself included and so after really interviewing ourselves and getting a taking a an account of what we did all day. Just hunter then thought about ways to systematize it and I have to again. That wasn't me. That's that is not me. Right I didn't do that. That was all them and so they systematize it and they built it, and then we started hiring, and then people were plugging into those systems, and then they'll system started to work and that was. Good and we felt success from that, and then we just continued that and over and over again and as we've. Grown just CYA has by far taken on the role of of really. Taking the initial idea, and giving it this like brilliant vision, right franchising wasn't me. right that that that didn't come to my heart that came to his yeah, and and I believe it came to his heart from God. Like that's what I truly believe in. Does he and so? He. He approached the hunter in myself and my sister and said I. have this idea of of how we can expand this nationwide because it was an idea that we wanted to do, we wanted to do deals across the country that was one of my goals was to do a deal in every major city in the united. States. Yeah, right. How are we going to do that? So there's the offerpad open for path where you get venture capital and you scale that way you lose bunch of money for many many years and try to. You Know Capture. Market share and win. And that's cool. but when I was with you in Dallas I had an opportunity to talk to Gary v Right and I. Ask that question I remember you asked him that question I said. How do you feel about? US, keithly, taking venture capital, and he said don't. Don't do it unless you want your company to be fixed and flipped. Don't do it because that's exactly what venture capitalists will do, I mean he said, don't sell out well that, but really like 'cause he he knew that he was talking to an audience of flippers right and so I I remember the analogy, and it hit me right in the chest that he literally would come into our company. The culture not care about anything that we built and drive towards their ultimate profits, not ours, but the investors profits right, and then what happens to all of us in the process is not their business or ours anymore. Yeah, and and there was a fear that nine hundred had that bringing in outside funding, even though we didn't need, it was going to happen right and so. He validated it. And so we're well-capitalised, right? We don't spend our money. We don't take our money home. We take paychecks, but all of us, but you know We've kept a lot of the funds in the company, and so we looked at it and said well our PNL's are. Amazing Yeah Right. Arbogast balances are great. This is a very replicable model. And I think that's what we should do right and so just. I brought to the table in so franchising became an idea and then I. Don't know if you've ever looked into what it takes to become a franchise I've looked into ideas of buying a franchise, so you know for a while. This is pre real estate. You know I was like well I need to. As an engineer w income I can't rely on this to get wealthy so I looked at franchises. And every franchise was like a hundred and fifty three hundred thousand guests. Before you sell your first smoothie, right and I remember like the application I went to look at geometry's. I'll say okay, so part of application is you have have had to have had. Sony, five successful businesses prior, yes. Right, there's a lot of there's a lot of. That you have to jump through as an applicant right but for Jamba juice to become a franchise. It is like dude, though it is a complete checkup, right? It's federally regulated first of all the governments involved this at a state level that are involved your your finances are audited. Your Business model is audited your You have to create what's called an FD, which is a two hundred page document that outlines everything we do from basic. You know from start to finish. We have to provide are are. PNL's. And then we're not allowed to make any projections. Right so if somebody calls me and says Hey, I'm interested in the franchise. How much can I make on this? My answer is I am I am unable to give you that answer based on federal law, and that is the truth, this absolute and then when somebody wants to buy a franchise, so say we're on a conversation. They I want to buy a franchise I'm ready. I can't sell it to them for fourteen days. Because for fourteen days they have to take time and think about it and read the fd talk to their attorney, and talked to their lawyers, and talk to their wife and talk to God, and if all of those things line up in fourteen days we might be business partners, and so it's a complete. Shift from what you know, partnerships or you know traditional businesses look like or this is this is. Real and but it's. Yeah. So. When the dress I have this vision. A Franchising You know I think that he it was probably always in his head like there is a seed there that was that was planted It's been about a year. Right since we started the process so I'd say he probably have that thought or that inspiration about a year ago and And it was just like all of us were like. Why number. You or so Giddy, yes, you couldn't even keep it. A secret knows like CCC. Guys as of. Close the door and you whisper K.. We're GONNA franchise. Right but that's awesome. Yes, and I it was great so. I think this is a really important story to share because. A lot of people there listening right there might be trying to defer steel, or they've gone a couple of deals, and they're trying to figure out what the future holds what it looks like where they can get to right. And the reason why it is important store for me to share is that? Anything's possible. You know it's a thinking right. Whatever man can conceive, he can achieve. And so you have this vision of being the biggest wholesaling company in the country. And you just moving towards it and yesterday has the vision a franchising a year ago, but that's part of. The original dream right right and so I think everyone needs to understand like. Yes Sir struggles. Yes, there are a lot of days that suck and business debt like ninety five percent of the business times business. Just socks are absolutely it can. It can't but. Man, when things are going great? What you can achieve that that five percent. Like most people never even be able to conceive it. Dream about it right, and we can actually live it right, so it's amazing You know you know I love to walk right. He has a song staring at the world through my rear view right and so that's exactly what that was and what he was trying to tell people is that you gotta look at the world from it being behind you? Right and and that never really made sense to me until I was like Oh my God. If behind me, that means I have what I want, and if I'm living in, that means I'm living in faith. And if I'm living in face, I can do anything I want. Right and that's the power because when you live in faith. Who God's got your back right like you can walk off the you can walk off a building. I don't do that, but like you know what I mean like. That's how you feel. We've got all the. Faith. Confidence you've got belief. And when you've got belief, anything is possible. Hundred percent, yeah. So. We've talked about the journey to franchising. If someone who wanted to be a Franchisee. What is even look like so Rafer, I still want to be the first franchise in Phoenix wants to put that out there. I've got your name written down link on the list. I I think pace a second, okay? So so what it looks like is. We start off by having a conversation right so well. Actually it starts off by emailing franchise at Keithly DOT COM. And in the subject line, right, I, WanNa talk. About the franchise. And you'll get an application and that application ask some fundamental questions just about your your past your history, not your like pass past, but like your past in business right your history and business what you're what it looks like for your successful businesses before him. Not It's not. That's not necessarily. We're not that robust. But we'll get get an understanding of if we think just on paper, you make a year the right fit, and then I hop on a call with you right and we chat for about an hour and I I ask you questions, and you ask me questions and and I try to. I, try I I start off those conversations by saying. Ask me the most uncomfortable questions that you think you can ask me. You're not going to offend me. If you offend me. We shouldn't be business partners right. I can confirm it's. It's nearly impossible to Benjamin it I I've been offended. I have to once I. Start to realize offended by something. I have to understand why I am finding myself. because. It's my reaction anyways right like you can't do anything to me I do it to me right to happen. Allow it to happen and so but I, but I have that conversation because I want people to understand and feel open to just say what they want or ask what they want. And we have a conversation, and we determine whether or not we're good for each other. And if we are a good fit for each other, and you can meet the financial requirement, which is one hundred grand We then make us off commitment right so a person would make a soft commitment and say I'm interested in moving forward. and I'd like a copy of the FDA. And then we. There's some things that they have to sign It's a soft commitment again. They can back out right. get the FD and then over the next two weeks. There's things that they have to do right, so they gotta talk to their attorney and we're checking in with them continuously. See how that's looking but it's really a a time to ponder time to think about really take inventory of. This is really what you want because I don't WanNa have partner right we don't we? We want successful partnerships. We're putting our all into it and I want the person who's sitting on the other side. One hundred grand is nothing US I don't mean to sound. Sound that's you know I. Don't mean that in a in an arrogant way I'm just saying that's not the the the root of this the root of why we're doing. This is our partnership, right? That's where we're all GONNA. GET MONEY as we're. We're all GONNA change our lives, and and feed our families and grow the value in the worth of the company right, and so that's what I'm interested in is. How will you do as a partner? And and in that fourteen days you have to make that self determination of am I going to be a good partner in this and I've got to think. Is this person going to be a good partner and you know? Unfortunately we've turned people away in fact when I first announced that we're franchising. Two hundred people raised their hand and said I have the funds I'd like to to be a part of this and you know. That, unfortunately, we didn't. We didn't allow a lot of people even to the the phone. Call Stage Right? Yes, it's it has to be the right fit. And It goes back to the culture. Talking about one hundred percent and so you, you get to that point and say for instance you know you're. You're in fourteen days and things looked great. You talked to your attorney. They love it. Talk to your accountant because they have to look at the PNL's, they love it. You know accountants lower pianolas because hunter is so good, right and their real, so that's awesome. Right so you're counting loves it. Your wife loves it or your husband loves it, and then you pray on it, you know, and if and if you feel good about it, and we decided to become partners I mean it's amazing, right? The next step then is is the deliverables things that we have to do? Do in order to ensure that our franchise is going to be successful. What are some of those deliverables? Well glass so the first is as a franchise owner. You operate as the brand in your town or your city or market right, and so that's power in itself. We've done a very good job of building the brand, and there's an inherent goodwill of incoming leads that come just being keithly right, and so there's that leads, and there's that there's the there's that asset there. The second asset which in my opinion is the tangible asset? Is that keithly actually builds your list? Right, so, what we're known for our core competency is our ability to build buyers lists better buyers less than anybody can build. Not only the list, but the training and the capacity to be able to get the depth of relationship required in order to sell those deals to those people. And so that second deliverable is evergreen meaning that month after month we add to that list. The third deliverable is who do you do businesses where the deals come from, and so every month we delivered to you new lead sources on where the deals come from. The fourth deliverable is is access to our entire office right, and so they come in the shadow. Everything that goes on in Keatley corporate and then we send them home with on boarding for their team in order for them to replicate. Down version of what key corporate looks like in their own Home Office right or in their own office the fifth deliverable is that they plug into key creative, which is a nationwide distribution of creative deals, and then there personally trained by our friend pace, yeah, right and so does a thing or two about he absolutely does right and so. Just within that the deliverables are are stacked in in order for you to do volume and tremendous business, and then if you're also one of those home, bester types. I'm not. Talking any home busters here. But if you're home bester. And you like belly to belly sales. You want seller direct leads. There is an ad. Spend component that you could. TAP into but that's not key core model right right, so that is a side deliverable that we offer and and you could get. Seller leads that way through a monthly at spent, but we believe that all that you require in order to do the business at the highest level possible will be available to you through those Ford Allure through those five deliverables. Yeah, yes, amazing, amazing all right, so we're GONNA go to some questions here. Awesome One is asking one be K. W. as well and I can answer that question. a lot of people really resonate with you I love it. Say Thank you. Fog town king wants to know. How do you find? institutional buyers to buy deals from you. great question right so we do a lot of deals with institutional buyers and Really it's about reverse engineering where the deals are going right so institutional buyers can come in different packages. They're not just hedge funds, also portfolio, owners and portfolio owners as as sophisticated as sounds and as an as. Deep as those portfolios can get there, really just regular people right for instance that keeps. He's an individual. You had on the show here and that would be somebody I would call a portfolio owner, right and So how would you meet Zach keeps? It's not as hard as it is meeting somebody from a hedge fund right now. You can do business with hedge funds. Hedge funds are a little more difficult because they're buying. Requirements are a lot. Harder stringent stringent than portfolio owners right, and so we do both we reverse engineer to find the hedge funds that are buying, and then we reach out to their representatives. We build relationships with them, and we sell them deals fortunately they will buy a high volume of deals, unfortunately as wholesalers or small wholesalers. They're buying requirements will typically involve inspection periods longer than your inspection period, refundable ernest deposits, and and sometimes closing shenanigans right, and so if you're. Shenanigans, you might have to take one hundred percent They may require it right, and so and I when I say shenanigans. Let me let me rephrase that closing day surprises. Challenges Challenges Right because they're not shenanigans. They're real right, but but there's challenges closing. That's tough book the portfolio guys those those individuals that own deep deep real estate portfolios, but they're managed by a really accessible person we're really good at uncovering who those people are through our multitude of outreach messages or outreach avenues and verticals, some of its social media, some of its tax records some of its other proprietary channels, but but ultimately we like to focus on portfolio owners at a higher degree because selling properties to an individual like Zach keeps is a lot simpler. When you make a relationship with someone like that. They buy from you for good right. Human Element is not that a computer correct. I had Zach over at my house. Two weeks ago and we were chatting and having a nice time when tie was in town and He was saying you know he had bought. A, house off Doug Hopkins Right, and so you know I had a twinge of a little bit of like Foam Oh because I'm like Oh, what doesn't? Why can I sell fifty five houses Zach right? You're in my. You're in my kitchen right now. But but it's cool, right? It's like 'cause. There's a depth of relationship there now. I have a great relationship with Zach. We've sold them many houses and but I didn't tell them fifty six last year. No me, neither right and so So that's it right? You find who they are and the reason why Zach from Doug as often Z. he does is, he loves duck. Right, they get along. They know each other. They trust each other, and so the answer to that question is you can uncover who they are based off of what they own but you can keep them by building a deep relationship and so so depth of relationship is really the key to to being able to make that work got it. Has, follow question is I. Don't know if you know the answer to. This question is who whereas Kiwi licensed in Florida. which brokerage hide? We are licensed, but I don't know yeah. I didn't think you're the person that. Saria. Dan Wasn't. What is your morning routine? Oh, I love that, so my morning routine is still the same I wake up. I meditate. And then I have some coffee pet and love my dogs. And I go to the gym. And I work out with a trainer. I Don after that I come back. I sit down and hang out with my wife for a little while and Chitchat. And then you know those are. In. Meanwhile, I'm doing deals and talking to people I'm on my phone I'm in business, but the meditation the gym and that conversations with my wife and that time where we're all fresh, those are non-negotiable for me right so you'll know and other people. No like you don't schedule a meeting with Jill. Before Eleven Am I. Know Well I didn't know that I just knew everytime I said nine am. It was always a hard no. And you know it's it's because. For me to be at my optimal. All Day I have to make sure that those things are are taking care of yeah and so. That's what it is right and my morning routine is. It's non-negotiable. It is what I do everyday day. The pandemic did throw me through a tailspin a little bit. I slept law later I slept a little bit longer. I didn't meditate every day I. Even though I had all the time in the world, I more time. Does not help more time makes things worse. It was weird I definitely. saw myself kind of hold a little bit but that was also fun. It was also fun to see. How I can tailspin or the things that I could do, but again I saw a lot of people like really drink a lot over. Over, the pandemic time during the lockdown and I didn't do that so i. feel good about that so good I. WanNa hit. You mentioned the The Gym. So you're on my up, you WANNA. Talk about why you're the gym. You're on my show the first time what happened. Well what my doctor said to me or what are you talking about There's another investor in town that calls you. and. Tim. So yeah, so Tim Tim has been like that you know in movies. Where were you know somebody like an angel or God comes shows up as the janitor or something like and kind of you know moves you along in the right directions, so for those of you who know my story Tim Win is the first person who brought me to Phoenix to do deals with, and then, and then invited me to hang out with him for a week, showed me around town open my eyes to Phoenix, and then did deals with me for a year after that until struck out on my own so tin win is someone I truly dearly love because because he changed my life. And so. What happened is I run into Tim again and I'm fat. Right? I'm like I mean I'm Chubby. Guys like let's not let's not beat around the bush. You right I'm not a skinny man, but I was like ultra fat rhinos about forty pounds heavier than I am right now. Really Yeah and I was unhealthy. I didn't feel good. It was harder to move. I was. was breathing heavy, and he saw me and he was like. Hey, Bro, what's up how you doing where you been? And he actually also sold me the lot on the how the House that I just built so tim is weird like he brought me to Phoenix. He sold me my house and he made me go to the started going to the gym right so like. Tim's awesome everyone should know Tim. Yeah, so or have him and so. Tim, said. Hey, we should do some deals together. And being Jamile and being deal junkie, and always wanting to find deals and do deals I'm like sure When do you WANNA meet? Let's let me see what you got right. He's like well. This is what we should do. Why don't you meet me at this address at eight adm on Monday, and will work together, and then we'll. We'll meet up afterwards. Have Breakfast and. And do some deals and I'm like Hey, right so I have no idea what tim is doing right where he's going to send me or what? This is GonNa look like I. Think we're going to go to a gym. We're GONNA PUTZ around. You know, do some machine weights and you know. I might be on the elliptical machine and like half ski for you know twenty five minutes and call it a day. So so I show up at a high intensity interval training studio. And I'm for the next forty five minutes murdered right? I feel like I'm so mad at him I'm so mad at the person yelling at me to. Move I'm so mad at myself for being so out of shape. And at the end of the workout, all of the anger that I was feeling was gone. I was exhilerated I could breathe well and I felt alive. And I was like. Wow, you know like. Thank you him for doing that. And what he did then is went to the reception while I was still trying to get myself up off the ground and bought me a pass for the rest of the month he just bought it and he's like. Hey, so I just bought you a pass for the rest of the month. So now you're gonNA come here every day. And I did that's. That's a friend, right and so. He got me into. It and I haven't looked back since like I. I'm addicted the exercise now. I love the endorphins. I love all of that the feeling. It's amazing you know. health is is great and it. Health is not how you look ice. health is how you feel. Yeah, how is absolutely how you feel? It's awesome. Mr Jackson wasn't. It wasn't too key differences between the Kiwi franchise and the Astra Flipping Program. Great questions well, so astros flipping is our education program which I had now And and we in that program. Teach you what to do. But, we're not doing it for you We're not building you your list. We're not bringing you the leads right. We're not building your systems and were and you're and you're not in our office. Replicating our our systems, replicating stretcher and so I would look at it like Astra. Flipping is the blueprint. A franchise is the house Next sets YEP. Perfect. let's see. Warner, how'd you get so good at Meditating Oh my God? I was not so good at meditating, so I started off by doing five minutes a day with a hangover every morning. Just being real. We all star somewhere and and I wasn't in the best place right like I was not in the best place, and but I, but I had read Jensen Sarah's book. Your Bad S. And she talked about how everyone she knew that was successful meditated. And she didn't know why and she didn't know. How or what was it about what it was about? But when she started meditating her life changed, and so she literally says in the book like I. Don't understand it I. Don't know why don't know what it's all about, but everybody who has anything or doesn't anything good. Does this so I've done it and now I'm doing good things so based on empirical evidence. I can say you should do this right. Essentially Empire phrasing what she said, but I I bought it. is I thought okay, I'll take that. And, so I downloaded an APP called head space. And they start you off, when in five minute intervals, and and so I started off, really just doing that the five minutes of meditation with a pounding headache. but what happened was the the length of time increased, and my drinking stopped. It naturally fell off right. Everything in my life started to naturally find its right path finds right frequency on where it needed to be, and this was without me having to force it. And I think the that's the thing like so I started off really small, and it started off really forgiving myself because it's a hard thing to do, controlling your thoughts. And then removing them, is. Is what ascended masters do right. That's the work of masters. And so don't beat yourself up that you can't do it because we have a subconscious that keeps US alive, but it's the loudest thing in our lives. Matthew Berry. Who is a coach mindset coach? He calls it the drunk monkey. Right and and I wholeheartedly ascribed that. Don't know who matthew fears. Look him up. He's a great dude What's up? Matthew So Matthew Talks about the drunk monkey and. The monkey is real. It's your subconscious. It's your subconscious telling you know. Don't be an entrepreneur. It's not safe Don't take that risk. It's not safe. Your nine to five is safe. I love that that's great it. It literally does all the things that can keep you small. And alive keeps you safe and safe right. And I I'm thankful to my subconscious because I still don't know how I get to work every morning. Right because I'm so distracted while I'm driving. I also know what got me from my house to my office but I'm there no one's dead So my subconscious serves its purpose, but when it comes to my hopes and my dreams, it needs to sit in the back seat. Shut up because now I want my spirit to take the driver's seat, and that's what I think drives it, so that was a long answer to that question, but how I got good at it was just doing it and being forgiving of myself for not doing it well right. You need to be perfect at it. You just need to do it, guess. Is there an APP that you prefer? So now. I I'm really into insight timer. It's an APP that I I use, and there's a a subgroup inside. It's a free APP. Guys, so download it today if you can and there's a subgroup within inside time recalled stress fit, and it's all one word stress fit, and they have guided meditations in there that range anywhere between eight minutes and an hour. And I'm really digging them. I think that there's a lot of power there, so if any of you are looking to embark on that as something that you're looking to try or do. I'd start their. Awesome. See what else is there? What would you say you'd be highly beneficial? I WANNA get a license if you're in the business of wholesaling, yes. I. Do I think that having a license opens many doors for you I? Think that when you're in Selah appointments that you can wear a different hat when you're in the seller appointments that you can go for the the cash by but you can also, if you, if you walk into a retail house trying to buy give them a cash offer. It doesn't work. Could be offensive. It could be offensive right, and it's not the right thing to do. It's not the right solution. You WanNa find a highest and best solution for your seller, not for you right right and so having a license gives you the opportunity to choose another path that could be the highest and best solution for your seller so I I highly recommend doing it. Yeah, and even if. If you don't WanNa listed, you can refer and get paid legally. Yes, yes, stay out of jail is one of those priorities right, but you need a license to refer it in your license to get laid legally right, and so that's something that you know. I still see all the time you know, people talk about bird, dogging fees, and and so on like paying your mailman at thousand dollars. I'm of the opinion. That's highly illegal. It is not an opinion. It's the truth, but everyone preaches that everyone pushes it and you know we're talking regulations coming down like we don't regulations that law already exists right, but nine forced today until it is until it is someone's main example of hip. see what else is there? wonder what's what's your biggest Ruggeri? No, Oh, my biggest. Right now. Finishing my book. I already talked of. Jemil's writing a check for twelve thousand dollars to me. August thirty first twenty twenty, because his book won't be done so I've talked about it as well and I'm bringing in bigger guns to help me as well not bigger than you, but I'm bringing in other additional guns backup to help back up to help me make it happen, and so I hope so actually I kind of hope. You don't because I need my. I'm going to write the book. I'm GONNA finish it. It's I mean it's the skeleton. Is there I'm filling in the pieces right now? it's called the energy of money. Awesome and you guys are GonNa love it, yeah. But if you don't, everyone needs to know August I send Jamila Message And whether he's finished a book row check. Well the reckoning. Other questions guys don't be afraid to ask questions. I W assault I'm guessing that's not their own Would you recommend finding buyers searching records? For big wholesalers are and. Quick combing their deals. Quickly meaner deal soon. So. Is He asking buyers? Would you recommend searching records for big wholesalers? Sure I recommend that I also recommend getting onto wholesalers lists I gave I I did a youtube video the other day where I give it to tip about that I got a text message about last night where a student of mine made a forty seven thousand five hundred dollars fee. How much forty seven thousand five hundred dollar assignment fee on on a tip that I gave him where? He needed to find a buyer and and so I'm GONNA. Share it with your audience as well so the tip is guys. If you're looking for a buyer for your deal right now right and that's right now, not not a buyer who's ready tomorrow or a buyer? Who's ready last week? Because there still real buyers, but timing is huge on a in a buyer's life right, and so, how do you find? Find the buyer that wants to buy today. And so what I do and what I've been and this is one of one hundred things that are intake team does the Meyer so I can share it right because we got ninety nine others, but Here's one, so we'll. We'll look at the daily listings on the MLS so brand new properties that are listed on the MLS that appear to be flips. And why that's important, because usually people would skip pass those they'd say. Oh, that's a flip I don't care and they keep looking. They look for the garbage house. because that's the one they WANNA buy. but the reason why it's important to look for the flip. Is that investor who listed his property today? Is Ready to buy two day. Yeah, and how do you know because I just got beat out by a smaller wholesaler who sold to my buyer because he actually was looking at the taking my advice and looked at the MLS saw his listing got listed, reached out, sold Emma deal, and so it works. The timing there is the timing hack, right? You are literally getting in front of them the day. They need the deal the right time the right time, so so that's what I do. And how do you find if it's a flip or not? you look at the pictures of the professional photos? She right? Are you know hasn't been greatly updated and are the closets empty? If. There's no clothes in the closet. That's a flip if they're closing the closet, it's just a nice house, right? So what I do then is I find the owner. Skip trace them. Call Them I also reach out to the real estate agent, because if she's representing one flipper, she's representing five. or He's representing five, and I reach out to them and I say. I know that you represent Rehab. I have a property and actually one very close to the one that you're seller. It just listed today, and would you like to do another deal, or would you like to send them the opportunity and guys? It is gold. You Know Curtis Harvey Shutout to you and your assignment. That's so dope, Bro, but forty, seven, forty, seven, thousand five hundred bucks off that tip right so I hope all of you can start building your cash. Buyers list that way. You know it's awesome. We're not in every market right now, but I still want you to sell your deal. So so be proactive and build your list. Awesome very cool. Jason Toledo wasn't no other the meditation. What would you recommend for people that are trying to get it together? I think how you speak to. Yourself is really important. You know How how you talk to yourself and how you talk to. even other people, but mainly yourself is is really an indication of of where things are right now, so are you hard on yourself a lot? Do you say negative things to yourself? Do you say Oh, you're so stupid. I'm so stupid I'm so I'm so fat worthless. Nobody likes me. I have no friends. I'll never be able to do this. This is so hard I don't understand. My brain doesn't work if you if any of those things I just said right now are phrases or or feelings that you have about yourself. I would take inventory of them I would. Make make yourself aware of them I. Because a lot of us aren't aware, right? so awareness is the first thing because it's dark place right, so shine light on it with awareness. And then I would start really chipping away at trying to change that so when you. Catch yourself, saying something to yourself, that's negative. That's hard. Change it. Change it up. say the exact opposite, and it doesn't need to be believed at that time. But when you start changing the internal dialog that you're having with yourself, you'll start to change how you feel about yourself. When you start changing how you feel about yourself, you'll start changing how you feel about others. Yeah, when you start changing how you feel about others. You'll start tracking them to you right when you bring them to you, you bring opportunities and those opportunities become. What you're looking for yeah. I love it and one thing I'll add on. Top of that is just having a gratitude journal. Does writing down one five things. You're grateful for everyday love that love that Um because you can't be. You can't be grateful unhappy. I. Don't think it works you can't it's like what was it? Daniel Tosh like you've never seen anyone on a jet ski like frowning. Right. It's awesome Warner Kroger wants to know from wholesaling. Do you hotel? Hotel. We don't. And then the follow up. Question is if not how? Fast Jack Maybe. You know I. whole tailing is is a totally different thing. It requires cash. It requires not that we don't have it, but it requires so much. You got to buy it. Close it. Hold it sell it listed. Wait for the flip roll like there's so many things it ties up money for so long, and there's opportunity costs to that money right for us. Also. We're a B. Two B. Wholesaler right where a business to business wholesaler we're. We're not a business to consumer wholesaler, business business, and so because we're business a business, we have to be in alignment with our deal partner and if their goal is not a hotel, their goal is to take their assignment fee and move it then our goal is to take the assignment fee and move it right and so the opportunities don't present themselves as often as you might think they do, and secondly I personally love the burden hand ideology. So, if I can wholesale a deal and get my ten grand now I'm way way more likely to do that than to. Look for maybe a higher profit margin waiting. Yeah, and I I subscribe to the same, but even though we are taking more deals down now. Yes I'd rather take five thousand today than twenty thousand and in three months right? Right because the amount of time you spend to get that twenty thousand. It's a lot and there's things brain damage in retailing. You know there's been there's inspections. There's agents. There's lenders. There's title there's so many things are a lot of pieces. I WANNA. This is the last question in this from Fox town king. How can you find out how much a wholesaler made on a deal looking public records, or is there some other way to find out how much a they made? So far can I'm going to challenge that thinking and I'm going to say. Why does it matter? Yeah it doesn't. It doesn't matter how much wholesaler made and you shouldn't be looking at what other people are making on things now it's not for us if that's not your money, it's not your money, right and so you know I, don't I? Don't focus on that I. Focus on what I can make. I focus on what I can do, and so I would. I would suggest fall town that change focus off of others off of what they've made. Try to find who they are. If you're focused, is finding them. That's great, but finding out what? They made a little bit intrusive. Right irrelevant and it's irrelevant to the to what we're doing, so I would I would stay focused on the important things who they are how you can connect and how you can do business, and then focus on how much you make. Yep, awesome so I'm willing to take a minute think about what message WANNA. Leave everyone with and a couple of quick announcements. Guys Workshop is June. ten to twelve, so I think that's that's away at two weeks away. June tenth through Twelfth I've you guys want to see if it makes sense for you go to? DISRUPTORS DOT com slash workshop, and like I, said every everyone has gone to feedback has been overwhelmingly positive I don't think anyone ever gone all. That was terrible so if you guys WANNA learn how we build our business, we're GONNA. Share anything and everything on those two and a half days and then two weeks. Ryan Pineda's coming back. Yeah, and he's GonNa talk about I. mean all sorts of different things but I think it'd be Tiktok. Hobby Liaison Tiktok yes. was going on the market and what his team did there covert and how? They're crushing it in Vegas while everyone else thought. The world is crashing guess. He crushes in Vegas, so I love Ryan, Pineda, he is, he is such a cool dude. When were in Vegas? He was the best host we chat every once in a while, but we just had a couple of weeks ago and he's working with our vegas franchise pre- pretty closely He's also a new dad. And again and I just think he's the coolest guy so follow and that can I just double down on the workshop. Because I attended the first part of it and I'm telling you guys in terms of value? There is nothing that I've seen that matches that it's a it's a powerhouse situation. Steve has the the connections to bring. The brightest minds in the business into one room, and then he makes it all about you, yeah! Right and I witnessed it, and it was special, and so I highly recommend it to anybody that is on the fence or thinking about it. I endorse it and I think it's great what you're doing I. Applaud you for it. Awesome, thank you. and for either so watching, make sure you guys sent a message to rampant Them know that Steve Things. Has Tesla looks okay? Awesome starting a little bit of beef, trying to raise her followers love it. All right. Last message so My last messages guys Your dreams can be real. Yeah. I mean it's dreams. Come true, do contribute. They do and It's really starts in your heart starts in your your mind and beyond that you just say yes to the world, and it happens If you're interested in a franchise, reach out to us. Please at franchise keithly dot com send an email again. A subject line I want to talk Djamil. I WanNa talk to you. Personally I. Don't want to have a salesperson. Speak to you. I want to speak to you if I resonate with you if if for whatever. Anything I'm saying is is hitting you in a way that that feels right. Let's chat and I look forward to being your partner, and if not I look forward to the conversation. But I just think everybody who supported us all this time and. I can't wait to see what tomorrow brings awesome, so let's get hold of you besides email i. want to get a hold of you. You can find me on instagram at at J., damned at J., d., a. m., y. and guys give me some love on my youtube. Channel put out some fire content there. I'm I have a video. That's that's done really well where I trained people how to come and I think that knowing how to compounds is probably the foundation of being a good wholesaler. Wholesaler because if you can know what value is, then you don't make mistakes. Credibility is so important. Yes, and you can be dismissed. Yes, as unrecoverable you make a baffert impression, hundred percent hundred percent, so if you if you feel inclined, go to you to write my name. Djamil Damn G. J. A. M. I. L.. Dam J I in Youtube in the search. Field and subscribe to my channel and watch the videos. You'll make me happy. yes, they are July tenth to Twelfth I. Don't know what I said earlier of, but guys. Thank you for watching. Thank you thank you? Thank you know handshakes man. Scenery! Disrupt this. Remote, body. Guilty. Train.

Hunter US Phoenix attorney partner Tim Tim America PNL The Gym Steve trink Jamila Zach instagram carmax Keegan engineer Djamil Damti
199: Best of Trading Psychology, Pt. 1

Chat With Traders

1:24:18 hr | 2 weeks ago

199: Best of Trading Psychology, Pt. 1

"Chat with tried. His podcast is sponsored by Crypto. Derivatives Exchange Queen Flex. A hinted recently coin flex with busy cooking up some new features in products, well two hundred and fifty x leverage has arrived pretty wild, and the coin flakes spread market has launched. Get more far and register fray at coin flex dot com slash chat. Also top step fx. Supporter of chat with traders, and an even greater supporter of four x tried is because top step, do one thing and have done one thing for many years. Fund for X. Tried is prove you can profit Cape Risk taught get funded start today at top step, fx dot, com, and use the code chat to get ten percent of. Market speculation and risk. This is the chat with traders podcast hosted by Aaron Fifield. Tried his and welcome to episode, one hundred and ninety nine. This year is another compilation episode so just like the best of risk management episodes from a few months back except this time of compiled some of the best clips on trading psychology. Again. I dug up white much from the back catalogue of almost two hundred episodes to pack into one episode. So this is only part one apart to follow shortly. Besides creding Goto trading psychology resource our hurt. This might also highlight past episodes that you've not yet heard, said before each clip you here I mentioned the episode number and Casey wants to go back and listen to the full interview, plus all episodes can be as located in the Sharon arts at chat with China's dot com slash one nine nine. Now to get things started. This first clip is a gem from the very early days of chat with traders. It's taken from episode. And it's options. Madman and and saying the AKA Lucci Lucia has been on the podcast a couple times and given some of the lodge panel swings. He experiences. It's always a trait to him talking psychology. What some of your best tips to sort of Cape a handle on your emotions? Do you have any sort of advice on the subject that you wish someone shade with you when you're starting out? Yeah Yeah, and that's the thing like you go through so many different emotional stages of your life. You know so, so you gotta remember like whatever whatever environment that you have around you. That's what's going to influence your decisions, and that's what's going. Influence your emotion so for example when I was twenty three twenty four. You know. I just had I just had a baby You know my thing was all about you know. How do I? I. How do I make sure I got rent and all? That kind of stuff covered every single day. You know so so when I went about trading, it was all about okay. How do I make four thousand a month? How do I make four thousand a month? How do I make you know? How do I make this kind of money a month and I wasn't looking at the big picture I was never looking at the big picture. simply because like what my environment decided and decided how I was going to live how I was going to make decisions. You know so whatever you're going through at the time. You always have to be bigger than that. You know you always have to take a step outside and look at what you're going through and realize that in trading. None of that shit matters none of it matters, and it's so difficult to do this. It's so difficult to do this to step away from having to make money to step away from you know living living a certain lifestyle or requiring a certain lifestyle. It's so difficult to step away from all this stuff. And I would say the one most important thing that I wish. Somebody told me was that to not think about the money. When I'm treating you know and and again you know this is not something that you learn overnight, but it's something that you have it in the back of your head. When you're starting, you know. Get your closer to the bigger picture than I. was you know so? It took me years to figure that out you know. And it was all always about to your your your lifestyle like trading can consume you and does consume a lot of people to the point where they don't leave their houses. You know they don't go out, they don't they? Don't talk to people you know they. They become very secluded and lonely and loaners. You know simply because their slaves to their PNL. Every single frigging day you know and that's all it's about, and that's not what it's about. You know so living a healthy lifestyle, and and you know enjoying time with friends whether you're down on your account or down on the year, or you're up whatever you know having a life is so important to being on an even Keel. Sitting there in front of the in front of the computer in front of the trading screen. You know so always thinking about that big picture which again most people stop thinking about it the second they have problems trading the second day of problems in their environment that they have to deal with, and then subsequently those problems affect their trading decisions, and that's all it is most of the most of the bad decisions that you make are a direct result of of your environment or youth you projecting the problems that. That you're having in your environment or in your life onto the market onto a market, which doesn't give a shit about what does talking pure probabilities. Market doesn't care. If you've got issues, you know doesn't give a damn, but you're going to project that onto the market. Simply because that's what's going on your life. That's what you're thinking about. You know you're thinking about rent. You're thinking about this. You're thinking about you. Know How you life is maybe at that time or how great you life is at that time. Thinking about all those things and you're projecting this onto a probability mechanism, a market, which doesn't give a shit. You know so that's that's the biggest thing I can say you know. Keep thinking about the big picture. Don't don't fall into the day to day. Hustle and bustle of the market. All the time realized that the market's not going anywhere. There's going to be money to make tomorrow the next day the next day the day after that you know, so, don't don't get too wrapped up in every tick of of the markets you know. Still together that emotions in psychology thing heavy. Kate confidence up to push on and pull the trigger. After Ron of losing trades. This wants to. This was the tough man. It's tough. It's like it's like. It's like taking a bad be. It's always like taking a bad it takes time. Everything is about time you know, so, let's say you. You get to run a bad cars. You get a couple shitting months where you take a bunch of losses, you know it just takes time. It takes time for you to step back and realize what happened. And then it takes time for you to stop being a depressed like humans. Have this this this innate sort of ability to to to what is it? What does the word I'm thinking of self doubt or to beat themselves up? You know after something bad happens like humans always go through a period of time where? Where they beat themselves up about it, they're like dude. I shouldn't a done this I shouldn't have done this. I shouldn't have done this right. They kick themselves in. There s too hard, and it takes a while to to to work out of that process, and to start feeling more confident about yourself to start feeling. You know like you actually can do this. You know what I mean. I mean you know during a period of bad losers? You know there's nothing in the world that feels spills as bad I mean again. There's worse situations everywhere, but you know it's a horrible feeling in the pit of your stomach. You're just like dude. Can I even do this anymore? And it takes time. It always takes time to come back out of that scenario, and that's again why it's so important to stay on that even Keel to continue to live your life and enjoy your life, and to continue to have other things around you that you're motivated by as well. It can't just be about the markets all the time you know, so that will those you know? Those periods of self doubt and you're beating yourself up depression, and all that kind of stuff you know that will help make in those periods a lot smaller, so you can automatically bounce back and jump back into the game you know for me, it's like. It's like two months or three months. where I sort of like size down I'm like quiet. Know and then finally once I get once, I get a couple of winners I'm I'm ready to get back in there? Next up jarred tendler from episode eighty six jarred is a mental game. KARCH works with world. Champion Park applies professional golfers and pull pies and tried is to with the aim to reduce negative and excessive emotion from decision making. And I understand that one issue that affects traders or park applies of old Abel's is something you refer to as tilt. Would you mind sort of describing what is tilt and how to recognize when you actually as you're cool it on tilt. Sure, so so tilts. There's there's kind of a couple of definitions for one was the definition that that was there before I came into poker which was. tilt was pretty much any reason for you to play suboptimal right, so you're. You're making decisions that are less than what you consider to be your best. And so upon studying. Poker players in their descriptions of tilts for several years. I really realized that. Eighty plus percent of their descriptions tended to be about them getting angry and making bad decisions, and so for me tilt is just another word for saying anger for poker players. They'll say you know tilted anything as I said less than plan your best, but but what if you're drunk, you know what if you're tired? fearful, you know. All of those reasons are gonNA be are going to need unique solutions Tim so you know anger is is really the biggest one. In trading. I would call the equivalent greed and fear. And maybe to a lesser degree. of discipline. They tend to be the place. The words that traders use most often. To describe their mental game issues when I don't think that they're actually experiencing greed, nor fear or or lack of discipline that it's something more than that, but within poker. What I did was breakdown seven different types of of tilt or several different types of anger that would exist. One was running bad tilts. Which meant you know? Players were losing for several days in a row with sometimes weeks or months, and and they were just getting crazed as a result of it. And the the solution to running bad tilt has to do with the understanding that emotion accumulates over time. The brain has a mechanism by which it can an essence digest the motion right so you have a stressful day. You got angry one day, and so you know you go to bed, not in the greatest moods, but you wake up the next morning. You feel fine. Nothing bothering. You feel it's like a normal day. Where where did the emotion go right in essence? Brain has like a stomach that digests the emotion much like it would. The actual stomach digests food. But what happens is when there's a a really emotional day. Or then you might go to bed and your sleep might even be disrupted. In part because your brain is digesting all that and then when you wake up the next morning, you know you don't feel quite right. It's almost like an emotional hangover, so to speak, and so when you start that trading day or the poker players goes on, insists play poker again. You know they're not starting with like a like an empty cup in a sense, right there tilt threshold the threshold by which the anger is going to affect their decision making has. Has has been lowered right or their emotional level is already risen. However you want to think about it, and so in essence it's going to take West tilt inducing stuff to get them pissed off to the point where they're gonNA make bad decisions, so so dealing with that accumulated emotion becomes really really important, and so for traders who have this particular issue one of the best ways that you can start to break apart that accumulate emotion is to do some journaling. is to write and the writing the purpose of first and foremost is to get out of your head with those emotions are right. You Go have a couple of beers at the end of the day, right? You're going to feel better right, but are you going to actually get rid of the emotion? Probably not right so venting to other people you know has a way of getting the emotion out, but it's also not as productive so. Keeping things inside is not a great thing when you vent on paper. What you, what you do is you give yourself a record of the emotional reactions that are occurring, and that becomes helpful when you go back and look at it a day or two later, and you see like what the Hell is going on here. Why am I getting so pissed off? And that's an important question, asked regardless of the mental game issue that you're doing in particular. We're talking about tilt. Tilt? Why is it that I'm getting so pissed off your? Is it because I just can't deal with losing this many days in a row, and so then you're able to start to solve things, but at a minimum you could start to deal with running bad by by getting the emotion out and minimize the accumulation day by day so that you can give yourself a chance to kind of reset. The next tilts I. Talk About is called hate losing till. I should have actually called a competitive till in retrospect, because you know like traders poker players. Lose A lot. And and for people who were competitive. Especially those athletes or we're in any kind of forms of competition earlier in their life. They they have more control in those other avenues. They've been more successful and there have more control over winning and losing, so not only do they hate losing? But now they've entered a profession where losing his built into the fabric of it, and it just pisses them off. There's no way around it right there. There's a lot of competition well what you have to do. There is have to really start to understand exactly what it is that you're competing for. And that's how you can start to correct and reframe the nature of the competition right, and and so you know you can look at your goals as being something that you're competing for sometimes confidence or good feelings emotions. Competing for. When you start to understand exactly what with the nature of the competition is, you can search around out some of the edges that will create those problems injustice till entitlement or to ones that I've mentioned already today. mistake till. Revenge, still kind of always a fun one. You know in in poker that would be a particular player is is just constantly beating you. Or? They say something or do something that Kinda just annoys you. Then they beat you. or a particular player who has just gotten the best of you time after time after time and they. You know now just hearing there that person's name gets. You pissed off. As I mentioned trading is is a little bit less personalized than poker is a but revenge. Trading definitely exists. You know and in a way of trying to get the market back for screwing you right so maybe about a person and more about getting the entire market back and then the last one is called desperation till and this is where. I would say there's there's a line drawn between a performance issue. Right versus an actual gambling problem, and this is a very important distinction to make for some traders poker players to make. A performance issue means that that what you're doing. actually won't be destroyed. I so desperation till basically means that. When when you are so desperate to recapture your lost. Your losses that you'll pretty much do anything right? You'RE GONNA. Increase your bet sizing. You'RE GONNA end enter trades that you have no, you're GONNA start placing bets in industries or in names that you don't even know anything about right. It becomes more pure gambling in a sense. That desperation to win. Overrides all logic and you do a lot of stupid shit that you're regretful of. The next day or even later in the day. When it's a performance issue, you can handle those losses. You can handle all the dump stuff you've done when it's a gambling issue now you're betting with life savings now. You're betting with with money that you borrowed from friends. Now you're now, you're your wife is becoming impaired, and that's where you've got to really look in the mirror and say. Do I actually have the skill in this game or am I just a degenerate Gambler, and fortunately most of my clients. have been in the in the former category where it's a performance issue, and we are able correct it, but if somebody has you know a gambling problem I refer them to somebody locally because it's not something that I I work on. Now like to share with you, what I think is a pretty fascinating segment for Michael Samuels on episode one hundred and sixty five markle's equities guy with the prop trading background, who now predominantly trades news floor around mergers and acquisitions and other major events. Can you tell us a little bit about this situation? with QUALCOMM and I can't remember who come. He mentioned was You said. This deals Kinda fallen apart at the moment I mean how you how you try and around that. In one of the mistakes that I've made is the I'll call it the cost of time being sunk in time some cost. The more time that I put into something. The more money I invested it. More research. I do with it the harder it is for me to change my mind I if that makes any sense. So. The short story in this. Again this is nineteen months I'm going to try to sum up in two minutes. The short story is qualcomm tried to buy this company and EXPI-. They needed nine different comes. They need nine different countries to approve this deal. Eight of the nine countries agreed and one country did not and that was China. And what ended up happening was they got got very wound up in wrapped up and all sorts of different international conflicts that are currently happening between the United States in China and trump, and you know the prime the. Chairman she. And I have found myself. At points you know, head spinning over this thing and I've gone to drastic measures to try and gain in edge in this, and the only result has been that. It just made me crazy. And we know if you want to tell you about some of these drastic measures. Show yeah. So. Again you have to stay within the confines of legality. Right so the you know. There was a point in this story. where? The Wall Street Journal broke a story that said that qualcomm executives were waiting for the ten four from China to fly over there finalize the deal. So in my mind at that point the signal that I wanted to see. Was the QUALCOMM plane taking off from San Diego? California going to China. And now there's various services that track these sort of private planes. But in this case wasn't possible and the reason that wasn't possible. Because qualcomm themselves blocks the town number on their plane. So the next thing that the only other option you have been at this point is and again. This was a story. That I had made up in my head. was that the only way to track? This plane is to physically be out there in San Diego and watch it. Take off. And so I literally just posted a. we have something called task. Grab it, I. Don't know if you guys have that there, but we've got something similar. Yeah! Okay, so I posted something on task rabbit and the task grabbed it post. Read something like. Go to this airport an watch this plane takeoff and send me a video of it. And and I got a response in about fifteen seconds and this woman who was Just a mother of three would drop her kids off at school and she would go to the airport and she sat there at the airport for me day after day after day after day, she'd probably there for like a week and I had to deal with her and the deal. Was this I'm GonNa pay you X.. Much Day and if you get a video of this plane taking off, I'll give you this bonus. Money this big bonus money. And she calls me a week later. She says it's happening. And, you know you're probably wondering. How did I know where the plane was going, right? That's the big question. They have this plane. How would I know? And the thing is you don't but the way that. I was making a lot of this up perhaps. QUALCOMM has two planes one is. For short distances and one is for long distances, and so I was tracking the big one, and the big one took off, and she sent me a video of this, and of course she sent me video of this at like three forty five on a Friday where I have fifteen minutes to make up my mind of what I want to do with this situation and you know it's that's the kind of stuff that can make you crazy and 'cause. You think you have this piece of information that no one. One has you think well what if it happens this weekend? And I don't take advantage of it, so I had better do that now, and not only that, but I was so mentally wrapped up in this thing. I was so emotionally committed to it like it was a person this trade that I that I wasn't thinking rationally and of course I ended up putting on the large position. Deal is still happening and you know it's. It's probably taken a few years off my life as watching this situation unfold. Man That's crazy story. Have you. Have you done things like that in the past? Like other situations where you've done some. stike excess excess of due-diligence yeah, yeah. Let's call it the. Nothing that extreme. You know nothing to that extreme. I mean a lot of this job in my opinion is. You know you could call it getting lucky, but you have to be on these conference calls. You have to be in the game like don't be lazy. You know one of the one of the best trade I ever had I was. I happened to be lucky, but I happen to be on this. Lumber liquidators which sort of like a lumber supply company. Conference call, and in two, thousand, fourteen or two, thousand fifteen, and they happened to mention in the call for you know at complete random that they were going to be on the show called sixty minutes, which is an investigative journalism show that Sunday and and it was like a grenade went off in the middle of this call and one of the analysts is an earnings conference calls suddenly. No one cares about the earnings, and and they said well. What's you know what what's the deal? Why are you going? BE ON SIXTY MINUTES? He said well. I can't really describe the contents of it, but I will say this I I I stand by the safety of our would. You know which implies Shit, well whole segments going to be that the woods not safe. And you probably had. Five to six minutes before this hit the Bloomberg wires, and all of the major news wires, and you know in trading. That's an eternity virus. Six minutes is an eternity and you know it's. Great but you look back and you say we'll man right I could have done this I coulda done that, but I guess what I'm trying to say is. One of the things to always remember is just don't sit on your hands like get in there I beyond every call the get on league. Just just be there. So when you got that information. How did you actually build a tried around that? Did you just instantly go short? The stock or would was this something? In that situation and again I've replayed this in my head or I should have done this or I should have done that I mean at that point. The stock was trading for sixty. Nine You could assured it all you wanted down to let's say. It was unlimited. You know there was unlimited amount of liquidity name till you know sixty five. And at that point I think it was still like maybe. On the day and just so you know on Monday after that segment. The stock opened its thirty. So you know. There's lots of things I could have done. You know I could have brought puts that. We're GONNA expire the following Friday before the ball puts, it exploded. There was lots of things I could have done. What I did was. Distort the stock outright in the moment when it's happening. You just think what's the easiest way from exposure. This, following clip was recorded at a live event which Ed on episode one hundred and sixty three with the legend John Maltin best known as Ram by a nickname and reputation, earned or throwing around huge volume spread. Try to in the pits if the Sydney Futures Exchange. Let's go back to the point. UNITE US out how? To lose. A few things. Cy about that. Well. It's observation the last couple of years of my life that Society in general doesn't really teach people how to lose a teach you how to win winnings easy. Everybody knows how the win. See Lebron James Win, a basketball game. Making the last shot knows win. He's a winning. Winning's easy, but is there anything in society? The teaches you how to lose their course at university you take that says hey, come, take this course. We wouldn't teach you how to lose. In. There is there is one thing they'll teach you looseness or sport because an organized sport, you will lose. Okay. That's the only thing I can think of. The teaches you how to lose that. You have to figure out yourself. You really do. And losing is in how you deal with. Losing is extremely important in trading. As winning I'm telling you is easy. That's easy takes care of itself. The key trading learning and figuring out I'll take a loss and how you deal with that appear. To hang onto it and let it bother. You already release it. Let it go. All I can say is is that you need to learn from the when you're trading, you have to learn. and. You can learn from being correct and say I did that correct. You learn from that. It can also learn when you lose when you lose. You have experienced the loss. Feel it. Learn from it. And Spit it out and let it go and focus on extreme. Hang on the loss to long Caluzu. It will not allow you to make the next trade, and you have the focus always on the next. The next trade is the most important trait in the world. Not The last trade the trade before that the trade before that. The trades happen. And focus on the now of trading. Dean of the belief that age tried is individual of itself like they might be times where you're actually going through a rough period, do sil trait. Another lizzy hairs. Yet. The Way I've always treated I. DON'T WANNA. Use The word high frequency because you guys have algorithms that are high frequency trading algorithms. And I'm more of a hands on trader and. What I'm always doing I'm focusing on the next day. I don't think about the training before and I'm analyzing the risk I just took what that previous trade. It's just fucking. Try I. don't care. You're just put in the books. Let's get on to the next trade. And because a mainly a spread traders I'm buying him on I'm trying to twenty different things. All the time in the didn't offer Blah Blah Blah brought at times. I've no idea what I'm doing I'm just trying to make the traits. Closes and I wonder what my position is. Sort of that position cochlear. Mizuko well okay I'll get I'll get that up on the charts and see if that looks good. Spent on the charts I liked that position I. Keep that for to. You know. What motivates me to make trades is when I'm looking at the markets is a lot of different things. It has to do with relative value. it has to do. Is there a by program in the ten years so broken? The tenures are these spreads reaching historic levels. Are we getting their expiration now? These spreads historically have tendency to move a certain way going to expiration so the lot I'm thinking about when making tribes. But it I don't dwell on what I've done I've never dwelling with done. Ever. About learning how to lose, I know you. Her hair is trading as I. Listen To you is. And he's been trading for more than ten. Who Cool young crowd at school! So I imagine especially the new tribes is very strange concept to put forward. Learning how to lose how that? She know if you look at how to lose? You stop doing it. You don't lose as much and you lose less frequently and then you say I. Maybe I'm getting this now, okay? But you're going to lose, so I. I don't dwell I once again. I'm repeating myself but I I I'm so focused on the next trade. This is Roseanne shipment man. This is like living in the now and spitting out what's happened in the past few zimbalist these Buddhist, here you'll make a fortune trading. So what are you trying to do? Here is trying to focus on the absolute moment of the price information that you're getting off the screen. Netra focused on and everything that's happened before that you can look at it ladder, but it in an active market when you try to, you won't be focused on the now of the price action that you're looking at. And if you're dwelling on, other things have happened in the past. It's GonNa. It's GonNa keep you from from doing that. It's a simple as far as losing as concerning. You know like when he really actually realize that you've lost money. When you get your statement the next day, and you look at the total equity at the bottom. You say fuck. I lost money yesterday, but I don't do that gone months and months without looking at my same and see if I've made a loss in the money I've gone months with that. One of the things. When I first started trading like a lot of guys, new traders I had to keep track of how much money was making daily basis I used to go from Chicago Chicago northwestern trade up to lake forest every day slot forty five to an hour train ride depending whether I'm taking the express train or not I might sit down account. Every trade I made in exactly how much money amid a loss on the day. I did that for a few years? So it's a level Lucien everything when I first started trading I really wanted to see how it was doing on a daily basis, right? It was important to me. Then, I realized that period time wasn't so important. Then I got to a point where I said actually if I can completely divorce myself from money. I'm going to be much better trader. I know it's hard to do. From Tony now if you can, if you can get away from the money aspect of trading, and just focus on the market and making good trades, you have you'd be distracted by less things. I just I'm GONNA point now on a heaven for about fifteen twenty years where I just don't care about the money. I get a monthly statement now a look, a monthly chart equities Ben, and that said and what the daily segments. On my position in the Trades WanNa make the trades. The lessons. This is a really clear sort of thing. But give someone like yourself. Who's been doing this for years? I think it might be an interesting subject. Go into. Why some the lessons when she walked a puzzle to a younger group of it is believing yourself. Self belief real big. Real real big! Don't quit. And never lose all your money cycle again. You lose all your money to leave the room. Go Away. Come back when you have some more money. So, yeah doesn't very simplistic things aside, but it's. It's really true. Stay in the game and really believe in yourself. It's it's. It's a real balancing act between having too big of an ego, not having enough of an ego. You know and You gotTa Know Yourself Really Well? You know what your strengths are, and you have to know what your weaknesses are. And it's a real game of inner exploration here. I find it interesting now. We're all trading from screens. The screens over there and I'm here. You want to externalize the experience of trading, releasing the screens over there and I'm here. Shouldn't be doing that. Usually internalizing experience zee on that screen into here internalizing it. It's not you against the machine. Machine part of you. Metaphorically. The one thing that I found and about trading, and it's the greatest gift. A trading ever gave me. and has nothing to do with money. It has to do with freedom appear. I knew early in my life I wasn't the type of person who's GonNa. Be told what to do. I realize it was going to find something that I could do for myself. I wasn't very good at taking orders or working for somebody. And initially it was like okay. To to do that I need to make some money on my own I'll become a traitor. Down the track. And I made mistakes I started. I got some money started buying stupid things buying simple things then. I realized that owning physical possessions. Is this going to be a burden to someone like myself? No good can't look at the things. I don't know how to change oil. I can't do this candy that only physical possessions a complete burdens. I stopped doing that. And then a little bit further down the track I realized that the greatest thing that training was going to do for me was free my mind. Free me up up here. I can look at any situation in my life and treated honestly fairly without having to accept anybody else's dog mom being shoved down my throat. And I like that. I love having freedom up here. It's a really beautiful feeling and. I, wouldn't trade for the world and that's that's what money's done for me. Let's enhanced my my existence on a lot of different levels, and has nothing to do with fast cars, fast women or any other nonsense. I was watching golf over the weekend, and there were at the memorial tournament in Ohio and Jack Nicholas was they're giving a little speech wrote down what he said he was because I think golf is very similar to trading so one sport that. Draws a lot of perils to trading and he said the following. He was talking about Hayler. Was Another Golfer of his era was just saving big price. And he referred you said Hayler when a great manager of himself. And the course. The analogy here. Is that a golf? Course is like the market. On the first t will you up against up against how you GonNa Swing the club. What would what do you think had? How am I going to play today? It's very internal. The Course House the wind blowing. HOW FAST THE GREENS! How thick is the rough? That's the marketplace you can't. That's what you have to deal with on. A Professional Golfer tees off. Here's the deal, not only with himself at the golf course every time you turn that machine on the deal with yourself and you deal with the market. Very close parallels anyway, he said Hayler wants great manager of himself in the course. And, then he just said this to anybody WANNA. Hear, he said No, who you are! No your game play within yourself. I wrote it down because this is just, this is trading. This is trading. And he's a believe in yourself, said not guys leaving yourself. And another thing. He said that I thought was very fascinating. He's talking on the TV. He said and he's the greatest Golfer ever you know. He's one dominated the sport during his era. And he said I never thought I was the best. I never thought I was the best. He's ever started thinking that way I was. Absolutely doesn't screw up. Take a triple bogey. Lose the tournament, not make the cut. So I never thought about being the best to me was always a challenge to try to be the best. I thought that was interesting. I thought I'd pass it on to you guys. Great support for chat with traders comes from top step. F X who provide even greater support to the community of rising for extras via a two step funding program, giving you able to one demonstrate profitability and to Cape Risk, taught top step ahead to provide live chiding capital, so this is ideal, if you don't have sufficient power, or if you need someone to control your risk limits. Once becoming a funded trader after passing steps one and two, you have no personal risk of losses, and you'll take a generous prophet split of positive returns. You could think of it much the same as like a remote prop trading type of deal. Specifically lower the top step deal you Cape One hundred percent of your first five K. and prophets and eighty percent, after that had stopped today at top step, F x Dot Com and use the card chat to get ten percent off. Chat tried. His podcast is also sponsored by Coin Flex, which is now one of the biggest crypt art derivatives exchange is out there. FLACCO hinted recently coin flex of Bain head down in inviting working on new features products. This includes the arrival of two hundred and fifty x leverage the highest of any exchange. It is kind of wild somewhat even say it's a bit excessive. All Si-. Make sure you have a handle on your risk. Coin? Flex have also launched a spread market. This is a form of interest rate trading that takes advantage of the juicing. Volatile rights may generated by punches in the CRYPTO. Market Spread trading is huge in traditional futures as many of you already know, but coin flex first I bring the strategy mass market through CRIP. Dr Get more informed on new developments and the multitude of benefits of trading on coin flex visit coin flex dot com slash chat and registered fray. Next are few snippets from the two interviews of done with Mike Balfour fury see episodes, twenty, two and one hundred and sixty two mark is the CO founder of SNB capital at proprietary trading firm in New York City. What was some of the hurdles you had to cross like things that you really struggled with early on. Just Edge. that. Lots of times, people mistake psychology with a lack of edge. People think Oh, there's something wrong with me. There's something wrong with my mind. I think a lot of times. Just people don't understand the reds, and they don't have edge and in a look. If you make a tray and there's no edge in the trade of course get upset. Because you'RE GONNA probably lose money. Whereas if you're gonNA trade where you have edge and you make money. You'RE GONNA necessarily struggle with a lots of the psychological issues. Because you're going to have made money so I, think that edges hard and I think people don't even understand how hard it really is. Out Great traders can barely be right. More than fifty percent of the time and still be legendary traders. Can we just go back in pick up on I. Think it was the first part of that formula you described. You mentioned about having a gross mindset. Can you go into that a little more? What does a growth mindset main? What's that referring to? So, there's a really great book that we recommend. Traders read before they actually show up. At our firm and it was written by Carol Dewick who. Is a professor and she wrote this book. Called Mindset and A really really great book and The book essentially. Hypothesis is that. If, you come into I'll trading if you come into trading and you think. that. Your talent and your talent alone is going to dictate how you do as a traitor. That's called a fix mindset. If, you come into trading and think. Well. How I'm doing right now is how I'm doing right now, but I can be better tomorrow. And if I do ABC, I can be a lot better than that's a growth mindset, and we found at our firm that the traders who have a growth mindset become. Very very successful traders, and a great example of that is at the end of the year this year. We ask our traders to come up with their yearly goals. And and two thousand and sixteen one of our traders. Who I'm going to talk about their yearly goals in two thousand and eighteen four, this particular traitor earned a green shirt and at our firm. If you net a million dollars and trading profits for a year, you get a green shirt to it's a it's a big honor to be able to. Hit this hit this level. And in two thousand seventeen, this traitor earned a black shirt. And, a boxer is when a trader nets two million dollars. Plus. In trading profits for the year, and so a trader was successful in two thousand sixteen, and got even better in two, thousand and seventeen and when. He sat down to come up with his yearly goals for two thousand seventeen. He said bigger picture also thinking about making the incremental steps to be a ten million dollar a year trader. That's what he wants to be and so. He's not settling for being a black shirt trader he is. Starting to think about the things that he needs to do and starting to do the work that he needs to do. To. Hit that next level. And has development that's somebody who has a growth mindset. Deformed that most people in trading naturally have what you would call a gross mine, sir. Absolutely not really Yeah, I! I definitely think. There are a lot of traders that that have a growth mindset, but No I don't think everyone has a mindset. I. I also think while it's preferable that people. Have a growth mindset. That people are traders that are so talented that the fact that they don't have a growth mindset. Also doesn't stop them, but it's, but it's highly preferable. Getting to a seven figure, try to how much of it. Is a mindset factor, and we spike about having a growth mindset earlier in that probably ties into this, but. DC think that some people they want to make a million dollars, but I can say that it psychologically. Doubt, there aren't ability, or it seems too far beyond the realm of possibility. If that's the case. How do you overcome that? So I've written about this in the past I call it small wins. And so you don't want to think about going from zero to a million dollars. You WanNa. Think about going from zero to being able to fifteen hundred dollars a month. Actually would take a step back when I started trading a very common step is you lose too much money? And real step in progress is to lose less real step in progress in a real step in progress is to trade flat. And a real step and progresses to make fifteen hundred dollars and so After you make fifteen hundred dollars, you'd set the next goal. Maybe I want to make four thousand dollars in a month, and then maybe I wanna make ten thousand dollars a month. And so. You you WANNA. Be Thinking about what are the things you need to do? To get to that next realistic step. In your development. And and it's it. It is a process. We find that our desk that it takes. Until year three before traders are going to make substantial being out and. You want to come into this game. Being realistic about you're learning curve, you can make some money in year one and you can make good money in your too but. What we're seeing at our guys have all these resources they get to work with esteemed steam bargar they get and the best technology in the space both on the front end side. You can't use our technology unless you traded firm and on the automated side and get all the coaching and mentoring and. Plenty of capital to use at the firm. And it still, and you have these experienced traders you can learn from and watch them trade in real time, and it still takes time to get to get good at it and. you get the firm backing to make sure you can support yourself through those through those years, but but it's still take some time, so I don't think about. I. Don't think about China go from. The one yard line to cross the. From from the twenty yard line to all the way across the field to the other team's goal line I think about. How do I go from the twenty to thirty at Oh? I get from the thirty to the forty. Third and and just keep plugging away and catch Pete. Put your head down and keep working and. It's easy to get from twenty yard line to the thirty yard line. Really almost impossible to go from the twenty yard line to growing and touchdown. so that's what that's. What our guys. Doing and that example that I used. With one of our top traders, who wants to be a ten million dollar, your trader and he was a seven figure trader two years ago before that. He went from a zero to a four thousand. I remember pushing him. When he was about A. Eight to ten thousand dollar a month trader I remember pushing him and challenging him to make thirty thousand dollars a month. And getting him to commit to that and I remember him then and then doing that. And then I got to the point where he. Netted a million dollars in got to the point word you netted over two million, and now he's. Pushing himself to to make even more, but he's he's taking those incremental steps and Tim at ten million dollars a year trade, or he knows he has to take these incremental steps so. Focus on his incremental steps that you need to take to get to that next level. Coming up now a clip from. One hundred and seventy four with no. Shan't Porbandar. Walla Niche is April. TRY TO AT KIRSCHNER trading group in Austin Texas now. This clip is an awesome comeback story and applies in perfectly with the SAUK logical challenges associated with trading. In other story, I was telling you that you know I I should. Del-, everyone is is the story in two thousand fourteen. And it was, it was a great wrote for me to stocked with that was up. I was up in all. I think it was up to three hundred thousand in the first three months, and was great. It was great started. The I was happy I was having my first full Shyla. No, my wife was like Oh. WE NEED TO BUY A. As by the Best Rolla. When you buy this by the best you know, listen, it's going to be good. Year looks great and then. I was playing imbalanced trade. Just like I do, but I. didn't I for some reason? I didn't my clothes imprint on it, so I was ten thousand. Amgen Amgen. And I was shot ten thousand Amgen Joseph's cover. The clothes and I just something happened in covered. and. Alexandria. And I can cover it and and why am I gonNA? Get out both market of. Ackman came and said that he wants to buy the stock four, hundred, fifty, one, hundred and forty dollars a share. And the stock was trading that that might about ninety, bucks. And, so even it took me less than I think. In Todi, seconds I was down three on thousand in in the stock. Yeah, it was just it was crazy, sitting at home in trading, and basically lost everything I made for that. And and I mean just losses. Self was was really hard, psychologically I just had a child. You know it was just I. Think it was fifteen days after that and I couldn't believe what happened I was still in a daze. I came down. I thought of quitting trading because I was like I. Don't know if I could ever come back from a loss that big. Oil How long would it take? You know it was just like in on my whole life is like. Coming in front of me and I was like I. Don't know what to do. At that moment. It was used stuff timeless pretty much deal as a quarterback, my old coach and he kind of told me like no just stick in there. Just don't lie about it just all. Just hanging. Okay finding what this is. The reason I started trading was because I love trading, and for the passionate trading. Because this is what I do every day of my life. If I had a chance if I would. I would walk on weekends if doesn't. Short of trading on weekends so. Let's go back to the love of trading internal. Forget everything else and I started. To make a small comeback, think I remember. The next month lost fifteen thousand dollars because I was just not detrimentally than slowly adding inside making. To me like five thousand dollars, a ten thousand dollars, seven, thousand ten thousand kind of slowly slowly slowly started chipping in on that loss and then. Acting in in about three or four months I found. My father had cancer. So I'll have to go back to India. Three or four times to India and I was like Florida's. Can you know the world's? who had me now? It's like this laws I just had a child. My child father had cancer. So he bought away in December and by that time. I was I was flying in and out of Austin door to Bombay. Second have enough time to trade properly. You know I was. Still so much happening at that moment second of. The end of the year I. Think this this loss happened. In April and by December I think I had I had had covered about half my loss. I was downstairs one hundred and fifty and make a paycheck nothing. And then comes two thousand and fifteen so. A take. It was twenty foot. All Twenty First Twenty first of August the twenty first of August. Twenty first of August as Vin I I, I finished my loss of one hundred and fifty thousand. That's when I covered all my losses, and then twenty foot is when the flash crash happened. Okay. So you can imagine the emotions that I was going through at that moment in life, because I had this clearly lost took me about a year and a half to recover, and then just recovered about three days before the biggest day in my life. That's crazy man. There's like a the something is something to that story like you. Would you have very close to giving up? But you know twelve months. This massive win on the flash crash, which is like just makes your whole career pretty much. Yeah I mean, don't you? Have enough money to. Survive in trading because you know I. Mean if you don't have money in the bank, it's just so hard to trade. The way you wander prayed. So people people like listening. Get a second job. Do whatever you want, but keep some money in the bank so that you have that confidence psychologically your strong. And you don't rely on trading income in know because. While it's so hot trading a hard thing because psychologically mentally. Everything in order to screw you up pretty badly Utah. And for me. It was like that, was it. I mean for me. He was like that whole fifteen sixteen months ordeal ended up with the high of my life. You know are so. Large all add because I'm like I was pretty much anti-us after that after that big big day in two thousand and fifteen I called my wife and I'm like you know. What a circle! This has been an watered. Start me you know, and you know had some big days before that I. Remember like my my fullest big day at. Two. Thousand and Seven! I think two thousand seven as a big day because I made like a teammate one hundred thousand dollars in a in one day. And don't on my friends, guys. You'RE GONNA party tonight, This I was like twenty, twenty, four, twenty. Five like this is like showed. WHO MAKES HUNDRED IN DAY? This is like ethic. You know then you. Hiding secretary under trading forgets I can see that got money in my life so I'm like listen body, guys. Let's go out and let's drink so I got into a restaurant. Just order champagne this you know whatever people weren't August auto is. Drunk and this and that I think spend like like I think twelve hundred dollars that night. Just you know buying things all my friends, and then you know my biggest losses, obviously in two thousand and two thousand fourteen, when I lost three hundred thousand and I'm just like you know obviously your friends are there for you, you know no one is giving it a thousand dollars back when you want to attack. So doesn't work. Yeah, you kind of learn in life that listen, let's celebrate the laws. We celebrate the highs, and that's not. It'll frown about the laws. Everything will come when diamond correct, just work hard, and you know have passion for trading, which I think is the number one thing for trader. If. You have passion your little world. The money will come automatically, and I've always believed in that so so and I had this big deal so I didn't celebrate I just went home, and I says I said. Let's have a drink and that's it. Oh! Now play a pot from episode one hundred sixty nine featuring Jack Ma. Jack is a proprietary futures trader and head of men capital. While he tried to government bonds around contract expiry time, he mostly tried in bank bills working structures across the yield curve. Earlier awesome about psychology in terms of believing in sort of the uncertainty, rather anything happen. You kind of got to believe that now, because if you do believe it, you'd think you're not going to be Stephen when you have seen like okay fly was a it was ninety five five percent trade. The five percent happened. Bucket it happened. And you can pace with it now. I say the next step is, you should reward yourself. In weight US consistent in in how how you sort of want to? Hell where you want psychology to be right, for example you don't WanNa. Be just jumping for joy when you make money and. Go into a deep depression the corner when you lose money rights because. On the money amount of money you've made. It's actually Bedoya to reward yourself based on the quality of the trade. because that will make your actions is. Consistent with were trying to beat right. You don't WanNa. Be The guy who just celebrate making money. You want to celebrate making good trae if that means losing less money unique celebrated. You know whereas if you make money. On a ship trade that's that's where that's where it's really dangerous. So how do you? How do you differentiate between the two? Because that can be that can be quite difficult. I've got a good one. It's been so long I. Don't think the firm. Okay will, but I never told anyone earlier, so for example we trade t one Australian domestic data, right? We try to jump on the first second. So when I first started, and an them a fly monthly in there was one time where we were all waiting food employment figure out the largest figuring Australia right now. You don't want to go into that. Win An outright. Crazy it's back. Danny would get ten points each way, and that's huge seeing that moisturizer trying to make one or two. I apparently. I jumped in. Right when I thought the data was out, okay. So the market market gaps three prices down right though it's out. We're going already in all now wasn't in yet right so I'm waiting for the food. Come Out, and then the mocking diesel within seconds obviously right. The market move got three prices down Yup. It's out so like women sold impose for what seemed like an intern. It was only probably not a second because it was. I was a wise opposed. And a collapse like there's no tomorrow, right? it class so much demon though we'll press golden. Chick because my dome was refreshing, so couldn't even see the price. Now. Owes lucky because right so I made ten takes an instant trade. Like probably a second. Well actually I've been is I Placed a ten grand fifty fifty bit. That's a sheet trader I made money off. So. Always they're very clear on show is funny. I mean. Hear about now in the firm. That won the other way I'm be talking to you anymore Yay. Honest man! That's crazy. You're very lucky that win in your favor or are absolutely to this day. I recognize this two things in my career could have ended my career. I'm just. So it takes a little luck to get to not get complete crushed, but I mean said also had a lot of bad luck I. Just don't remember that is because these are the better stories. But that's it is like you do also have a lot of bad luck as it tried. It seems like you have a lot of padlock that when you do have some good luck with enjoying. Why not you know. I couldn't tell anyone that story. Look unfavourably, but now I'm pretty sure it's fine now. Let's hope so because a little paper was soon to hear. What about an examples where it's, it's. It's not so obvious just online sort of day today trading. Are outside the probably rule number one and obviously on assumed the people who's going to take A. Relatively new to trading right is falling, not falling your plan. Because in the beginning old old hub that is Gospel and if you have a plan. Where you entering. What needs to happen for you to enter trait and then were you taking profit, were you? Taking the PUKE. And why and what for whatever anything these happened right? All of these should be planned out before you enter trae now if you ended a trade fall at plan, that's the shit. Trade doesn't matter how much money you've just made, right? Now the reason I say is because in the beginnings more often than not that. Mead, trade decisions I usually not good ones right whether you're under the pump right and typically example would be you you. You get what would seem like a short-term trade. I mean starting to come close to you stop. On a timeframe is Luke's all right so this now is turned into long-term no-one changes a short trade into launch trade when they're winning. They get to take more of your great. Happy days are made money to trade workout. You only do that when it's complete going against you, so that's really good, example you. Re in the beginning. Don't really WANNA be changing your plan now. If your plan is crap. That's fine, then you still need to follow through because disciplines really important as well having that discipline to follow your plan, Dan when a trades over in the hated among anymore, you can objectively assess your plan. Maybe it was flawed. That's fine. This is why he you're learning. You know it's not about making money in the beginning anyway. Yeah, and as we're con- of on the topic of psychology. Here I did want to ask you. How do you deal with? Periods where you're perhaps underperforming, not doing as well as you'd expect to be doing. From peon view from a from. I guess we gotTa talk about both, but mostly from a pain point of view like. Let's say you just don't a bad ron and you know what you'll bad runs in the past like, but let's just say it's been two months. Go by and you, you know. You're not really up. On. I think. I think. I read this in one of these books car. Remember. What was it? It says success is perishable mastery, not being a book called the trading, Athlete or something. off off on a really important. Because you know we, we value ourselves, and then this could even go to date life. Right on something. You probably sell in something, right? Know whether it's. Money whatever you looks could be anything right. How will we dance now? Now if you, if you if you value silv- based on something that's. Perishable, because you think it's not, but you know it can like any physical thing is perishable whether it's it's. It's a house. It's your money. To. Gilford or something right? Then when that Parishes Yoga, you're going to be in a deep state of distress, or whatever it is, so I've always looked at myself and prided. Trial. Tell. Say Yeah Yeah. What's the? Truth I pry myself obviously. So. Yeah, let's go with it. pry myself in. My abilities right and both the ability to climb out of holes like Pena hose as. That will okay I've had to some bad runs. If I? Wasn't really a my really doing the wrong thing, and that's why I asked you to clarify. You know that question now if I'm doing the right things by my edge and assists, that does nothing much rights is just. Taking on. Two months of eighty twenty trays and they've given me two months twenty percent outcomes. Didn't actually. Affect me as much. I really enormous when I do the wrong things, the traits so so Def on. Okay. I've lost money or whatnot, but I'm the same trader defoe. Arkansas wholesome ahead up high. Again and just go. That was twenty percent, whereas if I if I was pride myself my account, then maybe not so much of that, too, so I think that's that's how I deal with from psychology. A really focus on. Sort of what I can control, which is my skill and how trade? Not The market. Next up short clip from my interview with Tom Sosnov, which was episode eighty, seven Tom is a former trader. He's also the guy who co-founded think swim, and then sold it to td Ameritrade before going on to launch the tasty trade network. Pretty, much I'm just throwing this clip in the mix, because it's an opposing view and Tom's reaction, when asked about psychology is Kanda hilarious. One of the things that a Lotta tried is a very much into, and some even say that it's you know. Maybe ninety percent of the challenge is trading psychology. Understand you feel very differently about this. Can you give us? A one hundred percent bullshit. It's people like to were in our society is. Is You know we? We've created a society of enablers, and so we make people feel feel good about their inept financial abilities, their lack of know how it's. It's not because they don't have the right. You know trader psychology, or or they're not seeing the right trader psychologists. It's because most people are trained psychologists that I've ever run across. Have have would have zero value in my world. This is not a you know. Right? Brain left brain type thing. The reason people aren't successful is because they don't take the time and the commitment. To Be Successful. That's all it is, and I'm tired of a neighbouring people and making trying to make everybody feel good. When the industry is conflicted by by the by the true sense, this industry makes money by managing other people's money by selling people money by selling fear and the only way to get around that and to change that culture is to develop the know how yourself and ninety nine percent of the people are. Are Unwilling to develop that. Know How so the idea that there are some traders psychology out there it's complete bullshit, but I mean even operating like a mechanical strategy obain very quantitative in your approach, a decent think that there is a certain degree of psychology, even though it's not knowing in ninety percent Do you think that is a small part of it that that does? Come down to your psychology? No I think that's mechanics. It's like anything else. It's almost like breathing. I think there is a I mean. Listen if you're talking about ego. That's fine because you know. Everybody has egos. If you're talking about, you know risk-taking things. I don't consider that part of your quote. Psychology I consider that all part of your mechanics now if you WanNa, if you WANNA, consider psychology mechanics than then sure, but I don't and and I think this is a this is a. This is a game that you know that comes down to come down to mechanics. You said before you didn't play blackjack. I don't believe blackjack is a game that has there's there's a psychological element to black. Just like I don't even believe there's a psychological element to you to to any card game. Even poker or you know or craps or anything else. I mean I know people argue that there isn't poker, but if you've ever watched poker players, most of 'em play by the book, and and when you're playing, any other kind of game is straight by the book so. Now we're starting to see even sports has become a game of mechanics. We used say all this. This head coach or this manager is a genius. Because he pulled the right stringer made the right move at this time, and the reality right now is everything is becoming part of sabermetrics in statistics, and of course it's going to go that way because ninety ninety five percent of the time. That's GONNA win every time. So no I'm pooh-poohing the whole psychology aspect to it and I'm suggesting that it's a lack of know how it's a lack of desire, and until we get people willing to take on intellectual challenge, you know rule we'll. We'll give ourselves crutch and call it psychology. To take us out here. In concluding the best trading psychology pot one is Dan Shapiro and this segment comes from episode thirty, two, having come up as a prop trader in New York City Dan now trades independently and with a focus on high Beta nines. He's also encountered a fair share of setbacks during his career seeking really appreciate the ruinous when he speaks on psychology matters. We've talked about how you lost money. You know throughout that two year period. In quite debt so. Let's talk about how you go. Through losing periods days dies shortly. Not Quite as dramatic is two years at a time, but you still go through losing periods. I mean everyone does so. How do you stay in? Good spirits heady. How do you keep your head up through losing periods in? How do you break out of that? Yeah, that's a great. That's a great question. Erin, as we previously discussed I get tons of all the time, and they're never. They're never asking me. What do you think about this chart again? What I think about a chart as irrelevant? The question always is how do you make through? How how do you do it? How do you mentally stay afloat? And there's a there's a great answer to that number one and here's my advice number. One guys. Turn off your. Turn it off. Turn it off I I. Completely I don't even know my piano boxes on. My platform turned off and the reason why you have to turn off your pianolas number one. This whole business is or or all. Emotion versus reality right the more your emotionally committed to a trade, the more chances than not you're gonNA. Completely it and everything do the is wrong, and everything is going to happen after the trade is over is probably gonNA. Make you angry or angry. Because eventually the trade will probably work out your way. Okay, so the first thing to do is turn off your piano. Okay, number one in here's kind of relevant advice here. Also you WANNA. Turn off your pl, because if you're having a good day and I hear this all the time Dan I have a thirty thousand dollar account. Okay, what should be my goal for the day? And my answer to that is your goal for the day is to make it the next day. Okay, which has nothing to do with your piano? And what happens is when you're trading your trading wealth, okay? If you look at European L. and you say well. My goal is a thousand bucks for the day. Okay, you hit your goal within the first. Hour, so and then I know a lot of traitors. They'll shut off. They'll shut off their day. They'll shut off their day right now. Completely shut off the day in the leaves. Here's the problem the day that you can make their thousand, two, thousand, three, thousand, five grand, whatever it is whatever interval you trade whenever to your size trade the day you can make money really really quickly. You don't realize it, but you're playing a premium hand. You're playing the Kings. You're playing the Jacks you. You playing aces, you play the Queens, okay so that day is turning out to be a premium hand. It were you doing is you're taking a pair of aces and you're putting in a bet a fifty bucks? That's basically what you're doing, and you're telling the guy on the that's playing against you I'll all in for fifty bucks, and once you hit that pot. You say okay I'm done for the day, so you're losing out on a premium Han. Every professional trader will tell you. What we're looking for is premium we're looking for. Those pocket aces. Okay, so the day that you can make two three, four, five grand for the first thirty minutes forty five minutes. You're in a very very bullish scenario planner premium hand, so the last thing you want to do is say to yourself well. I'm a grand for the day I'm done, and you don't realize you that one grand could turn into three thousand could turn into six thousand turn at the ten thousand. Because you're writing that you for euphoric. Can you're writing? Those pocket aces and I don't care. How you know how misguided you are, everybody eventually plays pocket aces, and the most important part is if you remove European L. Box, those pocket aces really turn out the something. On the way down, it's even more important a turnoff you pl I already know on my tear size unless you know your size. LSU's any any issues. Thousand show lots just make it easier. Iranian the if I'm putting on a trade in the stock goes a dollar against me. I know I know mentally I. Mean I know I can do the math? Thousand shares the Dow Down You. Grand, okay, but mentally if you see it visually. Thousand turns into one hundred might as well turn into one hundred thousand. Because you're next trade, you don't WanNa. Get Down Twelve hundred. You don't WanNa. Get Down Fifteen, so you're going to do is you're going to trade the PNL and not trade the setup. Okay, so you could be looking at a five star set up. A stock comes out of a two-month range comes out takes twenty thirty cents. Spike comes back into your turn comes back into your entry goes down ten fifteen cents. You're ready down a grand. You're mentally already distraught. You sell the position ten fifteen cent. Cent loss next thing you know thirty five seconds later, the stocks of the Heiser today, so you're mentally already destroyed. You're done. You're done once you're once. You're trading your piano. Instead of the setup in might as well. You might as well wrap it up for the day, because nothing good is ever going to happen trading the piano, and the more deeper and deeper you get into the day. The more erratic mistakes doing the more eager you are, the more you're. You're man in more to Saas. Levels are rising. Okay, and all you're doing is committing further and further. Into emotionally protect your panel and not trading. Trading the set up the proper way, so that's my Kinda. My I tip everybody goes through slumps. Okay. Everybody goes through slumps I've had I had a week Two months ago, okay two months ago, I, went from having one of my top three biggest weeks prior prior prior week to just not getting anything going I mean I went through Monday through Thursday I could make a dime I wasn't really losing any money. I just couldn't make dime like everything was wrong. Right everything is one stocks were snapping back out of breaking down out of bottom channels on shorts, stocks again rejected on long's. There was reload sellers on my lungs. They were reload buyers my shorts. Just nothing went right. Nothing went right. And I sat there I sat. There are a couple of days. I started laughing. isn't the eventually. Start laughing. You can't. You can't take this business. You can't take this business the heart. Okay. You can't think that this is this. Is You know every bad thing point at you? Okay? You'll go through these horrific times that you can't get anything going. You'll go through these horrific times like perfect example I will last year about a year ago I. Don't know if any listeners remember. There was a huge run into clothes on clothes on these ads stocks, these a potash and intrepid potash, stupid things and I took. Intrepid potash overnight, and the whole group was like down twenty five percent the next day the next day. Mean it was just like what you told me. There's no. Specific Company News Down Four Bucks on the straight, which is insane. And mentally I was like while. I could try to make the money back today. Okay, let me see what the market gives me today. Okay, let me say because I've learned long enough. The revenge trade does not work. Okay any time you have any type of role motion going into trade. You're going to mess it up. Okay, so what I learned a long time ago is there's not one event bad event in your trading career. That should be able to take you out of your game. Okay, things happen all the time. Stocks Get downgraded. Bad FDA news. I try not to trade a lot of biotech, especially overnight because they blow up all the time. But the most important part of everything is I understand the highs and lows business because what I went through. AFT, after nine eleven so. For me when I go on a really big hot streak. I I'm not impressed because I expect to make money obviously every trade that I put on I feel like I'm GonNa make money I feel this certain days. I can walk on water, and then there's days. I can't get anything on. You know what I mean. Those as you say to yourself, you know what it just wasn't meant to be. You don't need to keep on piling oppositions. I could feel I could figure out within the first thirty minutes if I'm going to have value in the day. Saddam rolling in the first couple of trades. What's the point of me? Keep on piling it on bright because it escalates it. ESL Very very quickly. You could go from being down three grand to be down Akron. Fourteen fourteen turns at the twenty one. What's the point? Cut Yourself off on. The stand is you're not getting premium hand? Okay, emotionally. There's nothing you can do. You can't cry money back to okay so you know, but the most important part when you go through a slump. Okay, just realize they know sometimes. The easiest thing to do is just take a step back. Take a step back. Just watch the market. Watch the watch. The order flow sometimes order flow won't translate into what's going on the surface. It's just won't because order flow. Most of the time will not be organic. Okay, and that's where social media that a lot of these people know tout hype. These stocks for everybody to jump in. You know all that stuff so you got to take a step back and just say. Hey, look, you know it's just not my day. Maybe it's not my two days, but you know what I know. What I know what I need I know what I want, and until I get those premium has there's no point to do it. The problem a lot of traders have just they can't accept defeat. Okay, and there's a bigger you know. There's a big. There's a big picture. Okay, and you go back into the theory of war right? There's plenty of battles that are lost right plenty of battles. Battles lost all the time. The most important thing is to win the war so I could lose a battle right I could fight with Tesla and there's a reload seller sitting there at the top of the range and it. Just the guy won't let go. The Guy won't go and you know what. I'll figure that part out you know. The range, get out. I'll take my loss, but I'm not going to lose the war on one trade and I see all the time that many traders are so fixated about being right instead of fixated about trading properly, and that snowballs into day after day after day until they realize you know what this is just not for me and the saddest part about the whole trading cycle is people will most people. People will never a trade up to their potential. Okay, because they won't give themselves a chance to playing those premium hands, and they take everything to heart, and they believe that everything they do is the result of bad things. Everything bad, you know some summer just has evil eye on you and the reality. Is You know what the market of the Times won't get? You will give you what you want. Most of the times it won't celebrate your existence low. The market wants to do is take your money and take your confidence because remember I could go on, and this is. This is a very important point I could go on a run three weeks in a row right three weeks have a magnificent run, and this is how fragile our Australia's are. You can go two days without making money and you completely lost confidence. Think about that think about how many times traders of them that you could go on a three week. Run doing the same thing everyday, everyday everyday everyday. You lose money two days in a row. You start questioning everything you did for your whole career guy and I say this all the time. You don't lose your confidence. It gets transferred to another trader. K It gets transferred to another trader. Because! You can't lose something that is obviously shown you. Promise or prosperity in the past you're just a product of what's happening in the moment and just sometimes we can't control what we see in the markets, so instead of snowballing it letting go out to three five days. Take a step back, you know. Do Something Nice for yourself. Okay, get a massage. Okay, go to the beach. Go to the pool. Go to Sauna. Do Something Nice for yourself? Okay and when you clear your head, you come back, just watch. The order flow is telling. Telling you the same thing that it told you two weeks ago is telling you the same thing held at its hold you two days ago once different about this tape today that was in different from week ago. Okay and little by little. When you take the setback, you finally Kinda, see it in a weird way. You kind of see it, and once you see it. You can start making adjustments and remember at the end of the day. Everything we do is just. It's one big just. You've reached the end of this episode of Chat with traders, but rest assured there are more episodes loaded with real market, insight and zero hype on the way soon so to stay updated with each new release. Subscribe to the podcast. Tonight's and we'd love it. If you leave a rating and review, we'll catch you next time on chat with traders.

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How to Win Your First 100 Days as CIO

IT Visionaries

40:25 min | Last month

How to Win Your First 100 Days as CIO

"The first one hundred days for any executive are a whirlwind. You're learning a new job and wrapping your head around your new responsibilities now imagine those first three months when you're the CEO of we pro, a company with a net worth of eight point, five billion dollars, and more than one hundred sixty thousand employees. The urgency hits a little quicker. That's Reheat Avocados story, and on this episode of it. Visionaries reheat heat details. What those early days as CEO were like and the protocols his team put in place to be successful. Enjoy this episode. It. Visionaries is created by the team. At Michigan Dot Org brought to you by the salesforce customer, three sixty platform, the number, one cloud platform for digital transformation of every experience build connected experience, empower every employee and deliver continuous innovation with the customer at the center of everything you do learn more at salesforce dot com slash platform. This podcast is created by the team at mission dot Org. Welcome to another episode of it. Visionaries I mean phase on chief content officer and host of it visionaries. I'm joined by special guest on location at we pro. How's it? Absolutely good so. We have jam packed episode forever today. We're GONNA be talking about three roles within the company which touch on I. Think really the State of what a CIO is today I mean it's so indicative So i WanNa get into that. We're going to get into a little bit of your background so i. how did you get started in technology? So it's another funny. I would say that I was born in technology. My father was an engineer I. Did my Bachelors of Technology which is called engineering back in, India. and. From being an side in influence of bringing technology into allies, the current role is all about how Dr. Life two, zero forever pro employees, and how Dr. a fantastic new expedients on bought by technology, and I'm curious you know. It's. kind of hybrid role, there's not a lot of folks that have you know. Chief digital on one side, chief, information and then you know obviously homes is is your own thing, but I'm curious. Do you think that a lot of CEO's that are out there? Probably have certain types of those roles, anyways because it seems like with the blending of CIO and CTO changing so rapidly that you know it seems like. Most people should Kinda have that kind of natural convergence. So on the lighter note, I have the maximum model for six or designations in the company. I think a unique combination. You're right. Adultery roles are interrelated. Driving agility speed digital experience with the bottle of technology and automation binding both of them I think it's been aboard step by a company to put all those three roles together under one umbrella. And I frankly haven't seen any other company going in this direction of. These three facets of life under one umbrella, so I think it's a real hot seat for me and hopefully the journalists being good to know. I A- I. I think it is high I think it's something that I think a lot of CEOS Kinda see that sort of thing kind of happening. Do you think earlier near career You know if you were to go back and sit down with little row hit wherever? At whatever point your career and say, Hey, this was something that you were going to be doing. Do you think that would have made sense? Was this part of the career trajectory Franklin join reproof I was the youngest employee down I was most ragged fish from college, and I was not sure that evidently password of college in a move to another joint enterprise electro. And I would have never imagined a you know having been in front and rules in domes of business and BNL and leading sales. People think that the CIO function is very inward-looking people moving around with screwdrivers trying to. Restore something. But as I accepted this all about seven months back I think it's been a fantastic journey. I see this as a role which can transform lives. It's not just inducing new technology or keeping the lights on, but whatever the experience and the consumer word. How'd you bring all fantabulous technology to upscale capability upscale people's aspirations? And really make a happier place of living in your workplace. If you come reduc mindset, and like I said earlier, C., O. Chief Experience Officer, I think you can really take this little, too many notches higher. Yes, so for our listeners who don't know tell a little bit about the company out imagine most of our our CIO and technology audience are familiar for those who don't know share a little bit uncompetitive Midgioni in Alabama joined the pro bowl twenty five years back. We were about five thousand employees and less than hundred million. And speak read about eight and a half billion dollars USD. We had about one hundred eighty seven thousand employees that resolve, I've seen denuded of Cecil's in my own broke as while it's been quite fascinating evolution for me. We predominantly focused on still experiences technology and services. For. The would and you've got a real grit heritage. You know as a company, our parent group. We started in nineteen, forty, five more than seventy as back. Prior to even Indian independence. Via the great culture in terms of sustainability, giving so much so that sixty seven percent of the company's fortunes are already pledged to. An Inuit kibble money that has been given to a trust for sustainable and social causes itself, so it's council heritage deeply embedded into technology. and. It's definitely a a privileged to have been part of the journey for the last quarter of a century. That's incredible. I didn't know that I didn't know that the the roots were that old. That's amazing. How the forties Do you feel like you know with that scope with that amount of of folks in obviously, we talked to so many people here in the valley. That got their start in India Do you feel like that? You kinda have this ability to kind of straddle both the cutting edge in India the cutting edge silicon valley in and kind of do both of those things actually for me, personally for the company through the whole world is a canvas. And we really don't stick ourselves in terms of talent geography culture. v believe in diversity and inclusion. And in terms of thought process of the future workplace gone on the days venue district, people who audio employees sitting in your offices like I said. The world is a canvas. Potentially seven billion people on this planet could end up focusing on what does through what we call crowd sourcing to what we call Digital Labor I. think that's a differentiation that we bring on the table. And release getting ourselves beyond the boundaries of the place to see what larger impact we can make on society through the capability that we have earlier. You're talking about how you don't think you would have necessarily. Known! How much! Of the business side, you'd be doing. How much of the PNL's how many things like that? You know doing sales doing things like that It seems like a lot of the CIO CTO we talked to that. Are you know that Graham quote? Unquote have the the biggest seat at the table are folks that are really tied into the business? How did you go about doing that? like what were some of the things that you did throughout your career to make sure that you were closer to the business side I firmly believe that we have to keep balance First of all have a clear grounded access to its customers because they are of prime importance. But I also feel that the employees that we have need adequate attention attention in terms of keeping them happy satisfied capability heard redeeming them retraining them. And whichever companies are built this balanced between employees and customers have by far been most successful so I've always kept constant. Dutch it of my role with customers. And this indictment boy Dutch time Daly doesn't matter in terms of water level. What Age I love, coaching myself even though I spent twenty five years in the company and people fresh from. Doing dipstick Gwen address them and otherwise they won't even born when I joined a pro. Yeah, so it's it's a different paradigm shift on this whole millennial culture. You feel young from heart and in the mind. If you're able to imbibe, Zach than age doesn't really matter, so the people touch time is of paramount importance. You get them motivated and get the best outcome coming and all the financial bottom. He doesn't domes of revenue profitability customer differentiation is just a question of implementation than. So there's video about your first hundred days as CIO, and for for our listeners I kind of want you to paint the picture. What did you as you were going into the role? What were you doing before that hundred days to prep yourself? And then we'll go into to the actual hundred days, so frankly The said. Yes to the rule, I became a veteran in the rule. And it was absolutely a sprint from. Days Zito itself. I took the first few days and I really thought about what is that I'm going to do differently from traditional cio and perhaps for my predecessor. And with the help of my team before littered four minutes of success. The first in it operas collared. Is All about moving from operational stability to use her experience, which means how did still can you get so the whole battered? I'm off anytime any device anywhere. A combination of what we call human labor and it's deliver. And Council sing value breakaway silos and boundaries beyond your offices. How do you make sure that you make your systems intuitive? How do you make sure that are personalized? They have the speed, the agility communication collaboration, and without the physical touch of one hundred seven thousand people. How do you make sure that you collaborate effectively as one team itself? If you have that paradigm any toast in your mind, then it's all about the experience and happiness and ones that is in planned. You know absolutely execution is not a problem. Yes, you're talking about the employee experience piece because You know it's A. It's a hot topic for us on the show. Because of you know how many CEO's traditionally. Have worked. You know on on the inside of the company, but it's something that you know. Some folks have never measured. They've never really tried to figure out. What is our KPI's for success like not. We have a you know, employee, satisfaction, rating, do we have? Is it just trying to get the best places to work thing you know like a lot of things? Go into that obviously How did you look at you? Know improving employee experience so at the most Stove Abkhaz, that are did to my team. The thing that I told them. Is that the? Put yourself in the shoes of formula serving and imagine you being sold, and then look inward whether you serving yourself correctly or not, so it was about being responsive being sensitive. And the moment that shift happening people's minds. I think the whole idea about customer service was just keeping the lights on that shift actually happen. Yeah, the second is all of us are in the Consumer World v C. Great Technology all around us. But when you switch onto the enterprise, world, a new comeback into the company Sit in your in your campus. Why is it that Experience Judas wiser the bit as a droppin? Dick -nology adoption. So we just wanted to make sure that seamless experience of the same awhile phone that accesses a Sabato Youtube. And the same mobile on which you access your self, service, applications or European. All your mailing application. If you can keep the same consistent expedients in mind and your systems at a giant enough scalable enough. I think half the buckles already one. Yeah, so an I interrupted your four pillars, so so that's the fuss like I said is all about audition stability and use it expedience. The second pillar is about the business alignment. You know you made this point. W. That hotline entrenched. HOW IMPORTANT OVER THE BUSINESS! and. My benchmark is that. Does the sea oil have a seat at the board? If, the board feels that. You're important enough where you can impact customer and the company's fortunes. For example, if I dig an impact, the revenues improve profitability. Improve differentiation. And you're able to link your business as celestial operation peers. I think that's a great journey to be in saw them coming back and saying you know what? I have managed up time of three nines. I've reduced the number of incidents great, but does that give you sit on the board I? Don't think so, but if you come back and said that because of how assailant it still my systems are. I've been able to grow the pro top line two percent quarter-on-quarter. Board will be all the way you. Because of more efficient systems bringing in better decision-making I've improved profitability by one percentage points. That's an absolute. If I go to the head of finance and as saying that Because of my it systems, I've reduced a financial closing at the end of the month from. Let's say three days to twenty four hours. That's going to be a wall if I go to my HR head and say that listen you know. Ten thousand employees joined last quarter, and I gave them Dave. Delight in terms of the fuzzy experience, and I was able to onboard them within the first one instead of waiting for one week. That's the Waldorf you WanNa bring in, so you really shift gears and domes of business KPI's operational KPI's. And drive technology for their experience rather than them coming back and saying this is what I wanted to the mighty system new follow so from being a follower to a leader from digging orders to defining what the company's Johnny should be. That's the second hills. I love that you said you know. The CIO has to have a place on the board. The I mean. It's like from some folks. We talked to you behind the scenes that. You know said that they've had those conversations, and they didn't go well and you know the CEO again you know. Do we sure. Do we need that? Like? Why do we need that? Why like you know I mean it's a pretty pretty amazing thought that you know the person in charge of the employee experience at accompany potentially or the technology. Whatever wouldn't you know wouldn't be wouldn't have that seat so given example A. Lot Of companies by a lot of new laptops and desktops, it seems mundane. You know four years over. You should do fresh go by footed. Said, how do we get this good warm, fuzzy feeling of getting a brand new laptop in front of you to a wall, so we thought that token me bringing that gene experience can gift wrapped a laptop. The Nick coming in a cardboard box can give back. You know box of chocolates along with that GonNa. Give a nice little car assist. Thank you for joining the pro, and this is how you should go, both in terms of installation and usage itself. Can you give them? They want support where someone Bosley comes and hands it over to them and tell them how to use it. You know with all of the pro security procedures out there. Is, just pushing the body of customer service, beyond providing, service. and. Office at whatever we did today, even if a notch higher bitter tomato than that's a success month of us, the classic like you know, get one percent better every day at the end of the year you've cat leaps and bounds, the thought is all about security and trust you know with the. With the GIG economy and Internet literally all pervasive in our company. And in the DIA, would. How do you make sure that everything is secure? If I'm putting my personal data in domes of my address, my age, my boss information into the. Ecosystem which is what we call Peo- personal information, hold on, it's absolutely secure. But I'm sending an email internally to ordering laptop ordering a financial transaction, security and process is one of the biggest. Provider. Diaz will be joined the industry. And we had but I. Think Something Goals Zito Trust framework, which means trust nothing. So. How'd you manage my identity? How'd you manage minute? How'd you manage my transactions? Everything's securely without having A. Is What you plan to do so so none of hardware lot of plumbing to be done. Users absolutely opaque to that, but ultimately they should sleep a peaceful light, saying yes, the procedure function there whatever Amadou is trustworthy, the fourth and I think one of the most important writers pride of the function. If you ask someone on the street that would like to Beep customer facing organization. The CIO function nine out of ten people say customer facing. So you WANNA. Make sure that the. The CIO function is. A showcase that is brandon it. We should become the defacto employer of choice for them and in the industry and do that. You have to keep innovating yourself. So, for example a challenge the team. Why can't we build an factory and ideation factory? Every month we should have a new idea back into the ecosystem. What good partner does woke within Donald? Community what with leaders every month I want to launch a new team directly impact us at experience. For example. We've got lots campuses campuses with twenty five thousand people for anyone who's new. How do you get from Point A. TO POINT B.? It could take you literally fifteen minutes to walk the campus itself. All of us use Google maps concept can been something called Google maps for April. Small example but a great impact. We. Are really focusing on diversity and inclusion. There awed close to five hundred plus people who have physically challenged. Do, we have the right experience in terms of from getting the right laptop information sharing. Them onset is yes. We focused on sustainability. Employee Health and safety. Can Use recognition. To. Get a person into the campus rather than just an ID badge, which can be fixed or can be stolen. And how do you look at the physical presence of someone and their Dan campus from a health and safety perspective? Small things go along way so the moment you become a showcase, the moment to become a new technology people will come to. Your loved. That have you seen any a? Any Anecdotes. Stories are things you know back from employees about you know feeling empowered or her feel excited about those types of projects, one is A. Brand. Off. Of Fluids? That's me myself. In the moment joined the CIO function. A lot of people are surprised in all your show. You want to do this. Item but employees some customers coming back and saying you know what's former CIO. I said Yeah. This career. And I really challenge them of saying that you know this is the most differentiated rule that can, you can have in the company itself. And the Eiffel One took a very non traditional route. You know I could take a larger dose from a penal perspective, but I took something different. And I think it's really paid dividends itself so first step is that people say that it has joined US little I'm sure he'll bring a difference. We should go in for that. And I brought an at least five leaders woke me in the past These rules who actually performing business functions humidifier switch because of the brand equity that I had in the company itself. The second is. V. Been Very very active in the social. Media Lincoln you know twitter on WPRO DOT COM website itself and people are seeing that change happening in terms of the thought process the ethos. What we're. Doing on the ground itself. And I can see more and more people interested in vitro, and the CIO function from outside, saying I think there is a silent evolution happening out here, we should come and enjoying itself. The tortoise that the the other hack that were which is the home automation in the AD capability. We've had some fantastic, you know. Kissed Wake on Ripon with pro bringing those. Case Studies on successive beaded for customers. Back And I think it's threatened just. A massive change in the way people look so right from hiding new. Bouvier dating them upskilling them to move from operational transformation I think the last seven months I've been absolutely. Action packed in very very fruitful yet. That's really fun I love that. I love that that idea I'm curious. What are some of those Those Lincoln and and twitter tactics just being more just like engaging more. Is it like how is that an it function like sometimes as marketing. Sometimes it's social pr like how I'm curious how you look at that funding that someone just made a comment here illegally. and. If, you're familiar with Bollywood, which is the? Hollywood. She says that you're the shadow connell of of. Over pro-. he's like one of the biggest megastars there. I think it comes from within the confidence capability in the leadership that we've been able to bring in all marketing team is on hyper drive right now, so this shocked. Four videos CDs of mine two minutes each. and. This is the third video which has just come in on Lincoln. And I'm pleasantly surprised myself that I don't know that people have so much fun following. But the impact it's made through just a simple narration of this. A Johnny has been. Just a waffle meatless nearly so it's all. VIP Pro. IMAGE UPLIFTMENT! for. Defense action that we've been able to bring in. And You know hats off to the marketing team to actually bring in the difference to social media itself. You know it's funny. You say that, so the Wiz way back like episode like six or five of it. we had someone on who is we're talking about being a startup, CIO or CTO, versus being like a larger company CIO and CTO, and like of the advantages and disadvantages. You have of each one of the things that they saw it was A. Company that basically allows you to hire faster and one of the things they saw that made a huge difference, was the cio sending personal email to the candidate and specifically when it comes to engineers, if the CIO of the company reached out like DM the person on link dinner, twitter that that person is like a huge spike in that person taking the interview and ultimately accepting the job. It's I should. The CIO reached out then once in. In the organization like this means something like what like and again we were talking about fighting for talent all the time, so if you can have a leg up and it takes you, you know whatever thirty five minutes on Fridays and hey, here the list of candidates that you know here's our top. You know twenty five candidates rip through and send a message like that's a pretty good. It's pretty good insight. Absolutely need idea that mass no lead area. Unfolded there I. WanNa talk about homes, so share what this is for our listeners who don't know so as a company. We Love acronyms. Homes brings together the three days of this industry. We. Call them a analytics. And Automation. and. It's like the human body. Analytics is like your sensory organs taken information. Airs like your brain will do all the thinking. And automation is like motor skills acted out I like that is great. I haven't heard it like that. That's sinked. I like slow. Three is is what home stands for. It's been de Niro Johnny us in. Homes all about reimagining customers business, bringing them more efficiency, bringing them economics and bring them expedience, so he pushed the on from just a cost reduction. Saying hit US something. Thousand people are doing, and you know I can do with seven hundred because of automated processes. We are pushing it in saying that the can make humans more productive, so let's say fight dictate. GAVE ICU annoying customer a banking? And he will. She is able to do two to three gave day. Give me make it five getting. Make It ten, so augmenting human capability is a second thing that we do. The hardest. Can me enhance the customer service so if you're running, let's say conversation chat engine for customer service and good able to dissolve three out of five queries that come in and I can push it to four and five five on five imagine what a wall I can give do end customers itself. So homes is three is. Is Three days. and. You know what started off as a as a small team and a good to have has now become one of the biggest game changes of the company and the industry itself and I, really I love it when we hire people from outside the come back and say that you know what home such a strong brand presence, and I came in only because of that it's a sense of pride so back to your first hundred days. You have the framework. You have the four pillars. Over some things that. surprise you in those first hundred days. or things that you feel like. You know. Other CIO's or other people that are going into the role, definitely would need to know about not this role because you're in this role, but in other roles, frankly everyday is a big learning for me and I just feel that there are no boundaries in this role. You know it's very funny that someone wrote an email to me. Saying that you know what with. The air quality in Iraq. Conditioning is not too great can look into it. And, I, first response to him. was you know what ideas hasn't reached so far, but it struck me that why not in ultimately? It's all technology. You know just the way monitor it systems. We look at the air conditioning equality, the heating the lighting. It's all the same basic principle itself, so it's just the boundaries every set in our mind. And the bottom of the CIO function of that technology function is absolutely you know unlimited, so that'd be my first surprise learning that every day you push the boundary and literally the whole. The whole company is is as yours, so if you start feeling like a C., you start feeling like a C. E. O., which is chief experience officer, and of course the CIO can effectively the second is. Science Gillan complexity of operation. This is so high that sometimes you feel really get into the depths of managing things on your honor roll up sleeves. It's a very large organization. That I manage I can easily said that you know thousand people here. Let them go and do the job, but if you don't keep the basics in place, sometimes, roll up your sleeves like are done right now and jump into things you know are directly, so the second learning or surprise has been that the amount of hands on that. You need to get into this role. You know you really have to prep yourself up for that. You have twenty five years. Obviously, you may have been a great stop formal. You may have been A. Fantastic business leader, but when you have to get into depth zone yodeling and pushed the boundaries of you individually I think that's been the second learning itself. That's a great. It's a great point. And he really did roll up his Sleeves Aso. Apparently we're getting to the meat of the PODCAST here but no, it's a great point that I think a lot of people. Especially Executives come into a role and you know I. Joke about is like iphone leadership now like cell phone leadership where? You don't really need a computer you don't need. A tablet. You don't need anything anymore as leader, all you need. Is your phone 'cause most of the stuff you're not making you know. Slide show presentations. You're not working on Dr not doing that sort of stuff a lot of time because you have folks do that, but there's a time in a place for you to be able to get in the trenches with with with the folks on your team like put your head down and do the work because I think a lot of times. Either your skills kind of deteriorate a little bit or the potentially the people on your team like you couldn't. You couldn't code. You can create a you know whatever basic web page if you needed to or whatever it is. What are some of those things where you were you? Roll up sleeves, is it? Certain projects is at certain like? Is it a sprint? Is it certain initiatives Soviet running one of the largest transformation Johnny's in pro wavier revamping our entire ecosystem. That's one of the largest transformation I seen in my twenty five year journey. And It had a sluggish start. And the big challenge for me. Is that something which has been running for almost two years? How do you jump started and get it back into action? Sort of ICAN Ling, getting, into depth. Literally having daily stand up meetings on the board in my office. Making sure that every aspect every person, every part of the project planners is monitored so closely. And everyone. Works in it as a team. That's been one hell of an experience for me. The second is that there is the bottle transmission all around. You know when you look at an Amazon I'm sure all of you do shopping on the net. If you look at an AIRBNB or an Uber. If you look at Google, specially alphabet, the parent company where the keep having project x switches. Innovation. Can you actually emily at Darden lift the entire capability of your company? and. The mild goal is able to bring an Amazon model into. Bed You haven't. Platform everyone just consumes and everything else is behind the scenes on spedding zero touch. I think that's a great place to be in so inspiration from. Technology does around you being able to imbibe that and implementing within? I think those have been big learnings from me, so tink big. TINCA? have no boundaries at all. In the same breath, be able to move onto the literally the depths of implementation where you start literally coding, bringing up systems on your own managing the diversity of Hisen Lewis has been another learning from in the last seven months back to. For a little bit. We I think collectively all know. A has a ton of different capacities. Even the term AI is so There's so many different types in different things in machine learning I'm curious. What are some of the kind of like earliest use cases that you're seeing now that people are using to have a real impact so I'll start with personas over the CFO's my favorite, because that's where the money comes from Lake, any of the CFO. We had this challenge Cole. Much predictability is there in the company. Predictability in terms of revenues predictability in terms of profitability. And we want to move away from. Traditional Microsoft Excel sheet based prediction do more scientific way. So we brought in homes and machine, learning and machine reasoning in for this entire predictability. Really pushed the boundaries from not just historical data. But looking at how much of a Windsor we've had in the quarter in the year. How many people will be able to add on from a company perspective? What's the health of Augusta was in terms of revenue profitability of potentially even bankruptcy? All this was available, but it was limited by human capability, because we just didn't have the budget and skill for that. The moment you bring in homes any I. There's no doubt of capacity. So food aim would look at instead of five me does hundred does in sort of websites who can scouting died internet and you can do that in literally near real time. I think it brings in as a game changer for you, so we're deployed homes follow. Don't see if Asian. Within the first six months we've been able to get an accuracy of ninety nine point seven percent domes of predictability, and that's a wall which means you go to the street with a better estimate? Respect you in the stock does will because you're in line with estimates of what you commit, and the was happy, because he or she doesn't really need to have tons and tons of people doing their. Job for you. That's one great example for our head of HR uniform, size, and skin that we have ten thousand people in a quarter at any given point of time that could be a thousand people joining in. How do you make sure that right from screening candidates? To on boarding expedients to managing the training. To looking at a appraisal cycle eventually deployed homes in all of this. Small examples. Viva. In you alone, there are twenty two different countries. Review to process payroll now that may seem mundane, but imagine the number of simone dances. Compliance look at what kind of of taxes that for you know the number of that make? If, you'll run this battle process. You'd need a few hundred people with able to with air seamlessly. BILL GETS UP PROCESS ON. Time people get salaries on diamond self. We had this big issue with the. Legal Counsel. In legal people are far and few. Debt important people that bandwidth is always a constraint. Is a salesperson to give them a quitting Canada even the contract is expiring for my customer. That's a simple critic can read the contract, but if I come back and say that, can you tell me what the non higher close on about? How what does IP INFRINGEMENT CLAUSE IF I do more than ten million dollar business? What kind of discounting need to give that needs? Some won't of legal interpretation. If I wrote bewigged for legal person, it could take anywhere between eight to twenty four dollars, which means my productivity is gone. The broaden homes. which does what we call smart extracting NLP reading, which is natural language processing. Bringing in capability of comprehension, which is what humans? Lynn and then come back and answer queries very simplistically. We were able to bring down a critic from eight hours to a few seconds. While that is so the dependency on legal people comes down. Productivity actually goes up. And simple things like contract remediation with sticks, days and days. We were actually able to do it in minutes, so it's unlimited. Pardon, what the capability is! You just need to imagine and bring homes in. And I. Think with the little bit of training with a little bit of right data. You can transform yourself. All right, it's time to get into our lightning round. These questions are fastened easy just like digital transformation with the salesforce customer, three sixty platform, the number one cloud platform for digital transformation of every experience. You can go to salesforce dot com slash platform to learn more lightning round questions rotary writing go. Number one what APP on your phone is the most fun what's up? What is your favorite book or podcast that you've read or listened to recently I? Believe a lot on Mytalk Legiti and that is a very famous autocell. Back in India. and. Then at three main gods in Hindu Matala Aji. It's called the Trinity, so I finished the first cities for Shiva. the second one is on visual, and I'm on that, so it's a great storyline and. On a long flight of twenty two hours from Bangalore to San, Francisco I read about one hundred pages. I'm told that. Nice do you have a hidden talent or passion apart from singing in the bathroom? I've recently become a little more soil such. If I miss you so a little more spiritual. So I have rehashed my day. I spend about thirty five minutes thumbs of medicine, I think it's really helped me in terms of being a better version of myself finding a highest self of me being able to concentrate more. And I have loads of energy. No, so I won't call it a hidden passion, but something that originated in myself and Israeli me a part of the last year and a half ever since I started. Best advice for first time CIO. Keep smiling. Don't get bogged on careers over. Be Willing to learn. Listen to employees. And do what a heart says. What question do you never get asked, but you wish your asked more often. Do you WANNA increase in salary. If I could give you on, I would That's it. That's all we got. Thanks so much for joining us this is this has been awesome. We gotTA. We gotTA. Have you back soon? next? I'm urinetown. Any final thoughts anything to plug anything. People should check out. Keep watching us on. Lincoln hopefully shuttled Is. GonNa do more than more. But. It's been a fantastic journey in fantastic seven months and a fantastic interview Ian and I'll wait for my gifts for all that up at five. So, much lots of gifts. Coming I got shit coming in the mail. Take care. Take you. Thank you so much. It visionaries is created by the team at mission dot. Org brought to you by the salesforce customer, three sixty platform, the number one cloud platform for digital transformation of every experience build connected experience, empower every employee and deliver continuous innovation with the customer at the center of you do learn more at salesforce dot com slash platform.

CIO CEO CIO CTO Johnny India. executive cio Michigan Dot Org chief content officer Officer BNL Franklin CTO engineer twitter PNL Alabama India
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Special Announcement

"Hey everybody we're back yes sir. So Maxima. We were just in New Orleans. Chris Roosevelt as skill thon which which is pretty cool And we had a lot to take waste remit So you WanNa talk about one of your biggest takeaways from that event. Yeah I think For me personally anyways I think just being around individuals that are doing lean higher level stuff right. Not only are they doing harry higher level stuff but how genuinely they are and what they're doing to give back to the community and for me personally you know being around them. Kinda you know wasn't eye opening experience experience because even though you're at a certain level like there's other levels that you can go to to have success in impact more people at the same time I I think that was that was very encouraging to see and then how well you know uniformly everybody. You know Flow together right. There was no different messages. Especially get those Individuals that are up in that higher echelon you know enduring total totally different stratosphere. Yeah exactly and so. I think that's one of the things that you know. I've I've been able to enjoy so I've been licensed I've been real since two thousand seven I didn't really get into coaching until around. Two thousand eleven right and so for me you know once I got into coaching. That's that's when my business took off that's when I went from being What I thought was sold for Noor? I wasn't but I thought that it was right That's when I took it took me from going from someone that had to chase the next the next the next deal ramp to holy crap. I own a business And I only do I want to business. I have people that are responsible audible for me and so for me back then. When I got in the coaching does Wanna get to see like the real real big players do what they're doing and the massive kind of volume volume of transactions? They were doing and so I think that was the first time that You were an event where I'm not trying to take with you. Know anywhere friends like our friends are doing really really. Yeah Right. And they're kicking nuts right hands that But we got to see like another echelon guys are like one of the guys who sold his business for a hundred million dollars right correct correct and I think that's really not like you said not to take away from other events went to like you're saying our friends are doing really well kicking our butts but just to see different point point of views from because this was not all real estate. That's GonNa you know we want to. We want to emphasize that it wasn't all real estate. So right yeah And so one of the things that Takeaways from me one is. I got to start thinking bigger than I already thought about. Pretty big thinker thought visionary and so on but I gotta think even bigger so the biggest takeaway if you guys washed washed the roundtable At the mastermind after the event have you guys had a chance to watch it like my biggest takeaway is that we have an opportunity to help even more people correct. Yeah right we can do big big things and set bigger impact. Because if we can help more wholesalers entrepreneurs become successful Like if we can help you know twenty thirty fifty people at a time right each person that we help get help even more people. Yeah Help Twenty people and they hope twenty people. That's four hundred people. Yeah that we can directly impact. That's huge that's Paying it forward and so that's one of the reasons that we started the that we that we we we made the workshop but now is a great reminder wise so important that we do and well you know one of the things I do. Want to add You know because you've been to more than I have and the couple that I've been to you know have slingshot me. You know forward every single time because each one to provide something different argument example born again to real estate late two thousand fourteen into twenty fifteen I went to one particular him Phoenix and kind of share this with you. How the next six months? After that event I went anti completely You know a mode of just Tuned everything out right so those six. I think we're talking about this yesterday and You know that slingshot got me to get into self-development more than ever had you know the event Second hand that we went to you know same thing every time you go it gives you a different perspective where you need to level up. Yeah so they do help and they've helped me slingshot my my my career. You know an push me and I think you can probably attest that to his well one hundred percent so I want So when we're talking about announcement we just WanNa talk what we're going to be going over because after those the for those of you that don't know We're doing our workshop. Jerry Jerry twelve in Scottsdale right And the things. We're going to go over things that have helped us with our business and again. We're not gonNA sit here and tell you we're doing a hundred thousand. Were not right right. what we can tell you there were doing really well in arguably the toughest market in the country. And we're GonNa tell you what were doing. Howard hauer able to close as many deals as we're doing so the first thing is And you guys probably heard me say before. Marketing is not the hard part today right. Every business sales marketing marketing is not the hard part today. Right if you want to pull a list you have to go all you have to us today is just go to bash the stack or stream probably radar source right. You can get the data giddy. The data's not the hard part right and you can skip tracing data so Year and a half ago maximum partner we created a debt collection company so we can do bulk skip tracing Yup yup today. He's basket chasing DOT COM. And Yeah it's there and you got it causes. These systems are incredible. I mean we batch lead soccer. I mean you know Y- it's a one stop shop right now. Yeah it wasn't like that before right exactly so marketing is not the hard part you can get the marketing done. You can watch these videos and and get you know become like an eight eight eight or nine out of ten level yet in marketing watching podcast but was separating you today and what separating us today is closing the appointments because it's so expensive to get the data bright the source it to get a hold of it and get get in the door and is you cannot afford to not close those appointments exactly and so for that reason what we're focusing on verse day is how to make sure you let your winning the appointments because it's not just what you say because a lot of people what you know the book of Magic Words what you need to say. This instance to win to overcome become the objection. And so it's not what you say it And it's not even how you say on how you say is really important too but why are you saying that way because this is is a fine edge business is and what's helping US win Have you got to watch them. Are Stories is these little things that we do. If you understand why we do that way. It's it's going to really set you apart and I think you and I talk about what about this. Is that when we share things right on instagram. And I know you joke around and it's all in fun like a you giving away all our stuff and and and and and you know we love doing that by the way and we just around between each other and my one of my thing is what I usually say is like we can give away the farm but its execution right. Yeah at the end of the day and it's a very good point that you bring that up you know and you can have the the book of magic words but now when are you going to say those words how are you going to say him and then at would you know pretty much what time so. And that's the thing that we do go over the workshop. You know it's not just systems like you're saying in marketing but also once you get the Sims marketings going you know. How do I close these appointments? How do you know where to what do I say what you know what I need to say? What time all right? So that's actually cool. Yeah which I don't see a lot of workshops doing so it's not just you know having the screwdriver and is not. How do you turn? Screwdriver is knowing Y. The screwdriver is the right tool at the moment. Correct and so. That's what we're talking about day one and day two. We're GONNA show you everything in our business. We're talking about every tool every system. Everything we do. You know one of these. We're going to break down as our as our profit and loss statement. Yeah for twenty nineteen right so we're going to show you. Here's our line items. Here's what we did. You mean a balance sheet often loss statement right. So we're we're going to show you know we're we're forty percent profitable company. You can hear a lot of a lot of guys how much they're making. We're GONNA show you how we're keeping forty percent of everything we have everything we make So you know going through overlying like how to be a true business owner looking. PNL's recruiting recruiting keeping your talent because getting your talent in there is not is is just half the equation yet key chorale it. Yeah so we're GONNA show you everything there is yeah and our business from ABC and and that's a good point. You know what I know. Some of our friends share with us that you know. We're the we're the only company that they see with the where where the rt our team members have stayed with us the longest and the retention. And we're going to talk about that right. How do we create that culture? How to create that culture and how to motivate the guys? Because that's a big big issue and a lot of companies were that you know that revolving door right and when you find killers and they either leave or things happen. So that's the thing. That's that's really huge. That a a lot of these events don't actually break down. You know how to create that culture and how to motivate guys individually understand their personalities. And you know would you know how to look at that. So that's awesome And then the third day we're going to do is we're going to show you how to implement it if you're having any challenges implementing because I've Gone I've gone to seminars. I've gone to conferences where I've got three pages five pages and pages of notes And it's so overwhelming that I get home in the pages just the nose. Just collect us there on the desk top of the desk collecting dust so before for you leave. We're going to help you implement all of this so anywhere you're stuck as far as integration between this tool and that tool. You're not gonNA leave with like. How do I do this again? You're you're gonNA leave with the your your Ferrari bill I know a lot of Lamborghinis a Lotta love their lamborghinis. We're GONNA have a Ferrari sports car right then you're GONNA have to run your business at a high level when you get back home. Yeah that's that's And that happens. That's just the half day by itself helping you implement so the key point here is that even even though you know this it's coming up here in January Ten Eleven and twelve Is that we're not just trying to create an event like everyone else right. We want to create a more intimate workshop workshop. Where you come in with your laptop garrity learned sell skills you know And then we got some really Ninja guests that are gonNA come as well all too and so. It's not just me just even I you know And you're gonNA come with your laptop in honestly for me. I feel like it's one of those things where you come in and you leave your your implementing a lot of this. I think last workshop guys doing deals with some of the things that we talked about on the south side. You know some of the systems to see I recorded my story But that's the beauty of it right you come you participate and then you leave and you got a business in the boxing. Implement everything that you learned that three days. Yeah I mean the thing that I love hearing guys are leaving our workshop. They're and they're doing thirty. Thousand Fifty Thousand One guy did eighty thousand. I think in the month after after office or after a workshop I was like man. That's like that's why we do what we do. Yeah and what's cool just to kind of wrap this up a little better. Know if we have any more to tell. But you know some Philip. Somebody affiliate Phillies that we have. You know you know we got got some people that just that's just started using their programs and they're already killing it you know. We got a couple of members that I think one. He's got what a one of our one of the ten Turner Workshops Optus. He's just gotTa what thirty or forty was locked up. Thirty four thousand dollars time fee or something. Oh I mean one guy. I know we were just talking. We're actually talking on the phone before I got here Also locked up something off for two hundred and he's GonNa Hotel it for three times cheese that's awesome and yeah yeah Yup Kuhlman sounds so that was that was announced. We just want to share. That was you know it was really important to us. And we're even more inspired to do an even better not that we would ever take it easy but after coming to the event This past weekend with Chris. Route Roots Guillebon Orleans. Just like man. We have a responsibility to help as many people as we can. And that's that's that's our mission also You know just comma below if if you wanna find out more and then we'll see some more information sounds good. Thank you guys thanks.

Chris Roosevelt New Orleans Noor Jerry Jerry US soccer Phillies Phoenix Scottsdale business owner Howard hauer Guillebon Orleans Ferrari partner Philip Lamborghinis PNL ABC garrity
962: Developing the X Factor Part 2

The Dentalpreneur Podcast with Dr. Mark Costes

23:39 min | 2 weeks ago

962: Developing the X Factor Part 2

"The dental for Noor podcast. Okay, Doctor, it's time to put down that hand piece. You're listening to the show. Dedicated to helping dentists get their lives back. It's time to decrease your stress. Increase your ability and regain your passion now introducing your host Dr Mark Costas. Loa run welcome to another episode of the Dente podcast on your host Dr. Marcus skies this as part two of developing. The X factor where we highlight one of our most successful members of all time who is now a black belt coach, and that his doctor X and we go through his journey. This is part two of his journey. into becoming a black belt coach and achieving black belt status in his dental practice. Hope you guys enjoy if you haven't listened to part one. Make sure you stop this recording right now. Go back and listen to part one. It'll make a lot more sense. This episode is being brought to you by the dental success. Network Dallas Success Network dot com Ford Slash Free forty-five. Come check us out the most positive. Educational Network in Dentistry today, one of the largest buying groups in dentistry as well as a huge incredible continuing education library is have a wonderful day. We'll talk to you very soon all right so now. We're going to be talking about a scorecard this is. A simplifies. PNL simplified PNL that we use for all of our clients. This is kind of the basis of what we build everything on as far as the money quadrant. Or constantly talking about overhead categorization. calibration with your CPA. And your bank accounts. And this is the simplified scorecard that Jacob came up on the back of a bar coaster eight years ago. I could not stand reading else from non dental. And or the person I think we only had like five clients at the time I was poring through PNL's. And it's just it was maddening for me I. couldn't read them I didn't like him. I wanted something on one piece of paper where I can ensure that the categorization was clean and I could compare. Their current spending with industry averages at a glance and I can see where they are overspending. I know you can't see that in the back. You probably can't see it in the front. I can barely see it. But you can see in the back you see in the back row that fourth column, one, two, three, four, five, the fifth com. There's some red in the fifth column. That in the very back. It's all you really need to see. The red is bad red means. You're overspending in that particular category. So. The first thing you have to calibrate with the CPA go through line by line. Make sure that all of the expenses are being categorized correctly once. You're sure that that's happening then. You know that this program will categorize those expenses and automatically compare them to what we consider. The industry standards now remember. Our overhead is shifting down. Per Face. You have sixty percent overhead. Then you have fifty five, then you have fifty and you have below fifty five zero phase, one phase, two three, and then face for every time you shift down, and you're shooting for the next classification. The next belt level the next phase. We increase or decrease those industry standard numbers, so we make it more difficult for you to get there. We game a fi this. So before when it was okay to have. Five percent of your total revenue goto dental supplies at the next stage it'll be four and a half, and it'll be four, and then maybe three and a half, or maybe we'll take that percentage point for your overhead from different variable expense depends on your situation. Okay all the while after phase one. We're also working hard to ramp up revenue. Okay so let's go through the scorecard. Really quick and we're GONNA do a little expose. On Dr X. Dr X. Gets One hundred twenty four new patients per month. His net production is five hundred, a five hundred ninety six thousand dollars per month. and. Those revenue is one hundred, ninety, five thousand so pretty much one hundred percent production collections ratio. That part is good. That part of his department is tight. His total overhead expenses though four hundred and fifty four thousand to ninety. That seventy six percent overhead. Seventy six percent overhead the average overhead. In the United States Sixty eight seventy two percent are one starts at sixty percent just to be a phase one white belt. He needs to lose sixteen percent of his overhead, somehow two different ways to do that. We all know what are the two ways to decrease overhead. Increase Increase, revenue and. Decrease expenses. Are. We going to be able to decrease expenses in six hundred thousand dollars practice enough. To get to sixty percent overhead. Yes, no, probably not. In a six hundred thousand dollars practice. There's probably not sixteen percentage points that we can drop by counting by twos. But there is a I lost it. Lost my confidence mater. But there is. A certain percentage that you can. Drop and the rest. We're going to have to count on ramping up that revenue. Does that make sense? There's only so much you can squeeze out of overhead, but we want to make sure that we're maximizing the savings first plugging all the holes in the bucket. Remember that analogy before we start ramping up revenue. Okay so he's at seventy six percent overhead. We want get him to sixty. If. You go down the expense. Column here. We have payroll taxes and fees. We have fringe benefits. We have total payroll. We have lab and. And dental supplies. We have associate doctor salaries. We have advertising. We have other expenses. We Have Legal Accounting Insurance Office, expenses, facility, and equipment and telephone. Those are those are the categories. That's it. That's really all you have to track in the second call. It shows exactly how much he spent. Himself this practice spent in that particular category. The. Next column says what percentage that was of his total revenue. The next column says Industry Standard. The next column is called variants. That is the column where we're looking for black or read. If you see red in the various column, they are overspending in that particular category as simple as that. Simple as that if it's read your higher than the industry standard. If you're black, you meet it or you're below simple as that so you can check. Your overhead that quickly. With this expense report, and then we came a fight even more. You're shooting for zero a score zero. Just like golf scored ideally. Par Zero or less than par means. You're underspending based on the industry averages. If you have a positive number. That's not good. Jay and how positive the number is! Is Dependent on how well and how efficient your practices doing expire as far as expenses and overhead. Okay, so if you're doing exceptionally well, you have a zero score total score when you add up the variants column. A negative two zero score you get an A.. K. It's called cruise control. If you have zero two point three, then you're ahead of the game. That's a be if you have two point five to four point six. You're getting by to see if you have a four point six to a six point Oh needs improvement. That's a D if you have six plus points above the variants according to our scorecard, you're out of control. That's F. Dr. X. was at a sixteen point, four or five F. triple minus. Really really high overhead. He was out of control. Times three. All Right? Here's a quick at how hygeine department was doing once again just off the bat. What should the hygiene department it'd be? Be producing in comparison to overall revenue? Ideally thirty percent. Does it always happen? Even if you have a great hygiene department, if you have a super producing Dr side, they're doing all on fours doing full mouth rehabs. To kill her doctors in there. Even if you have three full-time hygienists, they will have a difficult time. Keeping up with the doctor side production for some practices will be difficult. To produce thirty percent of overall revenue for some hygiene departments. If you have a kick ass Dr Side just happens. It's hard to do. What is the default? What else are we looking for? If they can't keep up with the doctor side, does anybody know? Kerio, yes, that's part of what goes into it. If you are not producing thirty percent of overall revenue as a hygiene department, the default is to look at each individual hygienist and make sure they are. They are producing at least three times their pay. So if you have a forty dollar an hour. I jest, And they're producing one hundred and twenty dollars per hour than breaking even on that. I- Jenness Jay. We like to say three point three times. Be a little buffer there. Okay, so thirty percent. Of the total revenue should come from the hiking department unless you have a bad ass. KICK ASS! High Volume, Dr Side. In which case you're going to default to tracking each hygienists to three times their pay cool. Based on that we'll. We'll talk about incentives later. Okay, so here's Dr XS. Breakdown hiding department. The payroll percents shoot for forty five percent. He was at eleven percent. Fluoride percentage that we shoot for his eighty percent of the patient base topical fluoride. He was at twenty two sealants. Thirty five percent of the patient base getting sealants. They were doing eight percents total. hygienists. Optimally producing three point three times their pay per hygienist. They're averaging two point one times their pay. Their underproducing hygiene us. You may be asking yourself. How do you get each individual hygienic to produce three times their pay in? Medicaid, practice, yes. Is it a fairy tale. Is it absolutely impossible? Depends on your perspective. What are you offering adjunct services? What is your percentage? If your peril percentages six to eleven percent? In the hygiene department. In your under diagnosing. Then three times pays going to be impossible whether it's a fee for service, practice or practice or a Medicaid practice. But if you're percentages ideal. Thirty five to forty five percent. You're closing. Some of those services like flora topical. Fluoride and sealants I. Know this is boring guys. Hygiene is a huge opportunity for the vast majority of practices that we walk into. If, you're at twenty percents. Overall revenue and your hygienist is producing two point one time her pay or their pay. You have a huge opportunity to ramp up high team. A huge part of profitability? Comes from the Hygiene Department. Most of our culture performing dental offices in the mastermind that are black belt. Have Hygiene departments that are producing at least thirty percent, sometimes forty percent of overall revenue. And if they're not doing that than the hygienic producing three to four and a half times their hourly pay. That's a big part of this equation. Can. Going backwards. All right, so let's talk about Dr XS baseline than where was he in comparison to all these ideal numbers that we've been talking about? Thirty ten. We talked about that thirty percent for Haute for total payroll. He was at thirty two point eight six percent for total payroll. That's not the end of the world. We can work around that as long as we can control that second number which is fixed and variable expense. Is, fixed and variable expense. Forty three dollars or sorry forty three point one four percent, forty three point, one four percent of his overall revenue was going to fixed and variable expenses, not good. That's thirteen point one four percent high. Right there. And then the third thirty percent is the one that you want as close to thirty as possible and he was underpaying himself. He's paying himself twenty five point five five percents. He had zero profitability. Because as overhead was too high. Take, it's get into real numbers, practice revenue, five, ninety, four, his income for two, thousand, sixteen, hundred and fifty, one, thousand, eight, hundred and fifty six, so he hit it right on. The Bulls is far what US News and world reports say we should be making. However. Is Debt Service Was Sixty thousand two fifty two, so we superimpose the balance sheet over the top of the PNL. For how MUCH SPENDING ON LONG-TERM DEBT! And he's making. He's taking home ninety, one thousand, six Oh four this doctor. The doctor's sitting in his room in two thousand, sixteen to call ninety, one, thousand, six, hundred and four dollars per year. That is neither here, nor there because there's nothing to compare it to. When we get a little bit deeper into this presentation. You're going to see what a huge deal that number is. So his summary part okay. This is fun. Remember Systems Ation score remember we talked about the belt classification to get to white belt status. You had to have a forty percent on your system as ation score. He had a seventeen percent on his systems score. He had zero systems in place in his practice like none. Reverend. He inherited that really difficult staff, those toxic people. Ungrateful People People that rolled their eyes laughed at him when he tried to instill a new system. That's why the system ization score was seventeen percent. The culture was off. His practice practice cultural assessment score was forty percent. We actually have a self assessment that compares your core values. To how well each of your team members are doing with each core value. They rate themselves on a score of one to five for each core value. You read them on a score of one to five in that core value you compare. And you get a really really accurate way to measure whether or not. They're good culture fit for your practice. So, if you have a bunch of ones and twos. On the Cultural Assessment Score, and you can't figure out why your your system is scores seventeen percent while there's the problem right now. You have a culture problem. They do not embrace your core values. They do not embrace what you want your practice to stand for, and that's either your fault, or it's their fault. Usually, it's your fault. Usually, it's a leadership problem. And I'm only saying that because I've made that problem over and over and over again in my career. Looking out the window, instead of mere. Looking for whose fault it is that the systems are in place, instead of looking in the mirror and saying. It's a leadership problem. Have I given them all the resources necessary for them to be successful. Have I defined exactly in black and white? What success looks like? Have I held them accountable when they strayed from the left or right of ideals. And if you answer no to any of those questions, you have a leadership problem, not necessarily a system as Asian or a culture problem. Annual production collections five, ninety six. We knew that is overhead was seventy six percent new patients. One, hundred, twenty, four about ten per month is high teen percentage multiple pay. Twenty two percent of total practice revenue was coming from the Hygiene Department two point one times their pay. Four Futures Assessment Score. You guys all took it. His four futures assessment score went like this mindfulness routine zero percent. He wasn't doing it. No Gratitude Journal, No guided meditation, no quiet reflection. Of Scripture no connection with a higher power zero on his mindfulness is meaning. He had a good relationship with his kids and his wife. And his friends. His relationships meaning score was about seventy percent is movements. Admittedly when we talked recently, he said back then. He's always been a fit guy, but back then. He was so stressed out that he was not getting to the gym. And then is money. Of course it's going to be below fifty percent because he's struggling. Ninety one thousand dollars is not a lot of money. When you came debt load and you're trying to raise a family. Doctor XS top three priorities. We know this. He wants a team, not a staff. He wants to develop into a stronger leader. He wants one million dollars in production so he can be happy. Foundational phase. This is where we are with him. We're in the foundational phase. There are two phases that we work through. We work through foundational facing. We worked through growth phase. He's in the foundational phase right now. Here's. His customized foundational phase plan I one increase, overall business, awareness and acumen. He needs to understand categorization. He's key performance indicators and the language of business. He was a novice at the time, but that's okay. We're all novices in one thing or another and we were not taught this stuff. I graduate well. I didn't graduate I almost finished my MBA. Then I finally got accepted into dental school. And I was a novice at dental practice ownership when I got out, and I didn't speak the language of dental business. That's okay, no judgment here. You just need to find somebody. That's a little bit further in the time line of their career, somebody who speaks the language to mentor you and explain to you how it works. Step to clean up categorization and control non payroll related expenses. We need to work on the read column. What's read? How can we fix it simple? As that first, we start with non payroll related expenses. It's okay it's a little bit over. We're GONNA. Find that read inside the fixed and variable expenses, non payroll related expenses I. Number three team, culture and leadership development one clearly define our expectations. I just talked about this. We wanted to find what success looks like. We want to provide the team with the resources. They need to be successful. We need for them to know what our definition of success is, and then we need with them to put a plan in place for them to bridge the gap between where they are right now. And where you want them to be. And if they don't want to bridge that gap, and there are down with your plan and their ones and twos in the cultural assessment score, then you have a real reason to start shopping around for a new team member. But until you've checked off all those boxes, it's your fault, not theirs. Everything that happens in your business and your life, according to Jaakko willink and extreme ownership is who fault. Your fault everything that happens in your business in your life. Hundred percent of the time is your faults. Step four systems ation jump-start. Okay, our operations manual. Are finished completed operations. Manual is over six hundred pages looks like this. We, have one. That we now give our mastermind member I. If you guys don't have it yet, we have for you. Your has just finished it six hundred pages and we go through and we customize that her position. We customize it for the particular procedures in your particular practice, it becomes the Bible. It becomes the Journal and the definitive answer of how we do things here. Operations Manual is hugely important. But it's intimidating because at six hundred pages, and it takes months to put together. Does that mean that you can't get through it pretty much. Everybody that's a black belt in our organization is one hundred percent done with our operations manual, and they reference it every single day. It's a fluid document that changes from week to week month to month year to year. It becomes part of their culture to rely on this document. Because if you don't rely on this document, what you? If you're not systems dependent, what are your? Your? Staff and team dependent if your staff and team dependent then you're dependent on. A human being. Who is connected to another human being who could get a job transfer? You're connected to a human being that could get sick or pass away. You're connected to a human being. Who could decide that? They're not down with your culture anymore. And create a toxic work environment. Too many variables if your team dependent. If you're systems dependent on the other hand, if you're relying on the six hundred page document and Susie decides to leave and she's your everything. And you know how she does. Because it's contained in this document. Then you can recruit somebody else. Plug them into the systems onboard them exactly the way that you onboard Susie and you can have the next best thing to Susie. Maybe not the exact same thing. In that wraps it up for another episode of the Dental Poor podcast forward to reconnecting on the next episode. Thank you so much for joining us today. On the dental for Noor podcast check out true dental success dot com for full recaps of every show, a schedule of our live events, free video tutorials and a whole host of practice building resources.

Hygiene Department PNL CPA United States Jenness Jay Jacob Dr Mark Costas Dr Side Susie Dr. Marcus Dallas Kerio Noor F. Dr. X. Medicaid Journal Bulls Gratitude Journal Jaakko willink
502: What Does Case Acceptance Really Mean? With Michael Lomotan and Kevin Rossen

The Dentalpreneur Podcast with Dr. Mark Costes

21:06 min | 1 year ago

502: What Does Case Acceptance Really Mean? With Michael Lomotan and Kevin Rossen

"This up sodas being brought to you by two great live events being held at our brand new dental success network campus in Indianapolis, Indiana event, number one scheduled for February fifteenth is the one hour Muller root canal build up in crown top by my buddy. Dr Aaron nNcholas all of the advanced clinical tricks and techniques to be able to confidently complete molar root canals predictably inefficiently slid derail your schedule and cause unnecessary stress. If you're looking for a hands, on course that will finally allow you to keep more canals in house with less stress and frustration than this is the course for you are second course is scheduled for the next day. February sixteenth at our Indianapolis campus, and is being taught by K dog herself. Cure dent are traveling implementer, and yours truly Dr Mark Costas. The treatment coordinator masters class is all about case acceptance and getting your schedule filled wanna get your case acceptance above ninety percent, get more comfortable. Confident talking about money and learn the verbal skills necessary to grow your practice exponentially. If so this course is for you. So to register for either or both of these courses simply go to the dental success network dot com. That's the dental success network dot com and click on live events. Use the coupon code Indy. Nineteen to get a four hundred and fifty dollar discount of each individual course. All right, guys. So that is it. We're hoping to see you there at the Indianapolis facility for these two great events and help us cut the ribbon and get this spring new campus up and running. The dental for Noor podcast. Okay. Doctor. It's time to put down that hand piece. You're listening to the show dedicated to helping dentists get their lives back. It's time to decrease your stress increase your profitability and regain your passion. Now. Introducing your host, Dr Mark Kostas. Hello everyone. Welcome to another episode of the dental podcast. I'm your host, Dr Mark Costas. Well, good news guys, a metric geeks are back on today's show. We have Mr. Kevin Rawson who is the founder and owner of divergent dental. We have Michael Lamontagne a fellow metrics. Geek analytics geek, and then myself today today, we're gonna be talking about case acceptance, and this is one of those things that has some people scratching their heads as far as what the true definition of case acceptances, some people like to know when the first procedure is actually scheduled and performed from a treatment plan. Some people wanna go even more in depth and talk about the percentage of dollars that were actually accepted in a case presentation so Kevin because he has his fingertips in. Entrenched in data all day long took a sample size of two hundred practices over three hundred twenty eight thousand patients analyzed, and he's got some new really really interesting data when it comes to case acceptance, first of all how you doing. It's been way too long since we've been on the podcast together. Yeah. We've been you know, not disappeared. We've been heads down in in actually, actively DS identity. So we've been around, but we just haven't had a chance to fully catch up on a podcast them. Glad to be back. This is so is so fine. This is one of the more popular strings of guests that we have and people love to talk about analytics people love to talk about data. And there's no more person. There's no person more qualified to talk about that than Kevin. Because of what you do for a living in the types of numbers that you analyze on a daily basis. So how are you today? Kevin man, doing great two nodes been way too long. So glad to be back and basically had my head down and development, revamping, stuff and tweaking things to make them run more, smoothly and scale as we've been growing. You know, it's been a been a great great while working. But also great to be back on with you, Mark. Yeah, there's blessings and curses to growth. All right. So you basically doubled size this year. And that leaves that leaves you feeling good about your product and your reputation it stellar in the industry, but at the same time it presents certain challenges as far as infrastructure growth and further development of the software. So congratulations. And and I hope that you double again this year. That's my hope. Yeah. That'd be awesome. You know, what what's interesting about being able to look at all these numbers. It's you have a good enough sample sized or make really informed conversations and decisions both from a micro level within a practice. But then also on a macro level looking across the industry. One of the things that really frustrates me about the dental industry specifically with management and consulting type things as that their terms that are thrown out that number one don't have a uniform universal accepted definition of it for the number two. Aren't counted. The same way you can say you can say the word case acceptance in. Six people in the room and five might be thinking something different from how they describe cases. You've talked about that with overhead too. I think case acceptance people track differently. If you're tracking manually you'll it's bound to have some errors and emissions or things added that were incorrect. So for me, there's two different ways to look at case acceptance, you can talk about the percentage of patients saying yes to at least one newly treatment plan procedure code or you can look at the percentage of fees that are being accepted in being accepted. Again, let's define that. Some people say it's accepted once you change the status in your practice management software. And I know some of the authors, you can Mark Otis patient accepted the treatment and for him. I don't care what the status says in the software. I care is scheduled or as a completed, and that's it. That's really what accepted means to me. And honestly acceptance ultimately comes down to they've done it, you know, and they've paid for it too. So Michael thoughts on like death. Finishes of case acceptance. Yeah, I mean, it's the same one thing we have to remember case it separates as well. As the timeframe associated with measuring that metric, and we see it pop number of times both India fan in the open dental. Forums were a how do I calculate case acceptance and people forget that if they say, okay, my case, it's was seventy five percent. Well, what does that relate to you could have one hundred percent cases in one day? But by the time you end the month, you're only at forty percent or fifty percent. So that's when you wanna do this yourself their different ways to do it. It's actually a lot more lung say it's difficult, but it's tedious to do it yourself. I gotta give shot to Dr Anthony dough. So he actually posted in the DNA really cool spreadsheet that he's able to track with, and it it's a very manual process. But you're going to see over time your cases, this will change based on the time from that you apply that metric to. Yeah. I mean, it is one of those tricky things I have. I stumble. When people ask me that question, we typically in my practices, and our group we count a case an accepted case as when a the first procedure is scheduled and actually the patient shows up. So that's that's how we actually calculated. But there's a lot of flaws to that. Because we have you know, a couple pages of people who have gotten halfway through a treatment plan and have stopped for one reason or another. So that really right be a completed case. That's just a started case. So so Kevin tell us about your study of these two hundred practices and three hundred twenty eight thousand patients, and and what it is you found Sherm so defining how're count in them. I the big thing that we're looking at is. When was the procedure added to the patient's chart or treatment plan? So that's what we use. We don't use when it was necessarily presented because that. Is really first of it's a manual entry that would have to happen anyway. And then on top of that it's hit or miss on. Whether that's going to be accurate, but what's going to be accurate is when was it entered into the patient's chart, so I was looking at actually all of the year two thousand eighteen this data's so cross all the practices three hundred twenty eight thousand ninety nine patients that had treatment plan procedures of basically, restored nature. Reserve a little bit of a filter to mix we're not coming like xrays or exams in that type of thing, and we do count Perry while scaling route planning. So that's that's a patient for looking at out of those three hundred twenty thousand two hundred twenty six thousand accepted, at least one thing from that treatment plan, which acquaints to a sixty nine percents case acceptance percents, and that's on the patient level meeting seven out of ten essentially patients are saying yes to at least one thing it doesn't matter. If you told them they need eighteen crowns in one ACLU composite filling and the only scheduled that filling we would count. That as as accepted treatment plan if that was all treatment plan on the same day, simply for the patient. Acceptance cites sixty nine percent is what we're seeing as an average across the industry, which when you hear that number. I think some people in the con- that's kinda low cause some consultants say they get ninety percent case acceptance, and again, I think I might come back to housing's or being counted, or or you know, is is it less trim and being actually entered into the computer. There's a lot of things about that may marked you does that number seem low you sixty nine percent. No that actually sounds pretty good for a lot of the practices that I have the privilege of working with you know, between seventy and eighty percents. We think is pretty darn good. Actually. Yeah. What did I tell you? What's your thought? Michael on on what you strive for in your practice or our goal is seventy percent for two thousand eighteen we ended up at sixty five. So when I hear that number like, okay, wait a minute. What is is that an and that begs the question, what is the industry standard? So we're going to take that call the industry standard. You know? There are things that we need to make a proven Saen but looking at that number. It's even more dismal. When you say, well, what was the dollars treatment plan accepted, and it becomes a much smaller number, then you wonder okay, now wear my at the grand scheme of things here. You want me to relate? Let's do it. So let's see for winning or failing. All right. So this in your twenty eight teen five hundred fifty million dollars in treatment plant procedures accepted as again scheduled or completed hundred eighty million which means a fees. Acceptance percents of thirty two point eight percents. Down. Let's let that sink in for a second. So here's just comment on that for me. Yeah. That seems seems terrible. When you first hear that number like, wow, that's horrible. There's a lot going into that number because this could very well be a thing of how how dream it is actually added a start specifically as a doctor. You might be telling a patient. You've got the option of extraction implant Regina, build up crown extraction bridge. You might put all that on the computer because you're presenting it as options. Well, there's no way patients can accept all three of those. So in that scenario, very well could be thirty three percent is a great acceptance. And then on top of that if you're comparing this baseball hall of fame all time elite player is only successful one out of three times. And if you get if you get a hit one out of three times, you're going to be in the hall of fame. If you get a hit one of four times, you're just another average player in the league. And so for me, the thirty for me, you know, bigger than just even like is that? Hire low. I just rather know like what's the reality? What's the benchmark? Let's use that first and foremost to to use as a here's an industry standard for fees, and then we can dive down more if we really want to look at specific exceptions because that number does vary pretty substantially on a lot of different variables. So can I ask you this question? Kevin. What what do you suggest then say, for instance, I have a patient that is presented and online for full mouth extraction. Say say upper arch full mouth full arch extraction on top for implants. With a bar, and I don't know a hybrid. That's that's placed in there. Okay. So you have a twenty five thousand thirty thousand dollar case there, and they opt for and then also in addition to that there is the option to have full arch extraction for implants and an implant retained denture. So it's removable. So there's a difference in the dollar amount. But everything ends up on the treatment plan. They proceed with the extractions implants and implant retained denture. So obviously, they're not doing the hybrid case. What would you do in your practice management software to keep that accurate? You leave the hybrid in there as unconverted treatment or do you remove that? Personally. I would I would remove it. I would probably check with your state board before you do that. If there might be some legal reasons, he can't. But honestly almost every software even if you delete it from the software end it self, you can still find the fact that it was deleted. If you needed to I don't really feel like you could really get in too, many legal issues. But I would definitely say check with your state board regulations or check with someone who consults on the legal side of that. But from a practical side, I would say the leading it would be the way to hang up. Because other example, would be let's say a patient says they are interested in orthodontics. You present them, you know, whatever five thousand dollar the number. What might be? They just okay. Well, not interested in that. At all at some point. You would probably want to go ahead and to leave that out of their treatment plan because they're not going to do it. So I mean for me, especially in the scenario where there's options, deleting the treatment that is completely irrelevant and never going to be done makes a lot of sense to me, and I will say, you know. In in our practices. Something that comes up often is okay, you have a to that needs a root canal. The there's not going to be a whole lot to structure left. So I feel pretty good about the prognosis of this tooth. If we do a root canal build up crown on it. But you can also opt for a relatively straightforward procedure of extracting that tooth bone graft implant placement and crown on top of that many times in our practices. They say, you know, what I'd rather not take the chance extract the tooth bone graft an implant so that that often happens where they're saying no to the root canal. But they're actually saying yes to a higher value procedure happens for sure. Right. And you know, when I just obviously Mark you're aware and Kevin where I just left like two decade-long career in biotech, right? And part of that was business development sales. And when you look at opportunities one of the most misleading metric look at is the forecast opportunities and often dental when I look at our practice. You look at the numbers. Hey, what's the unscheduled plan? Let's look like total and will say you have I don't know two million dollars in opportunities that you can possibly capitalize on. And that's not real goes into Spacey points direction that you went. We're talking about right now was should you delete it and actually keep a real sort of forecasted numbers you can properly apply resources to practice and possibly close opportunities. But, you know, seeing one point five two million dollar to between the inure sort of funnel may or may not be real. So take a closer look at that. Yeah. Along those lines than Michael is a practice owner and you Kevin as as somebody that works in practice every single day. What is your preference for track? Working are you tracking dollar amount accepted or you tracking. I procedure completed as acceptance. I mean, I only really pay attention to the patient percentage. Because I think that that tells you that tells you people actually trusting to do anything. So I think that's where you base most of the number, and then honestly on the other side of things, I don't really I don't put as much stock in the dollars dollars treatment because he's the dollars accepted, but I do pay attention to the dollar treatment planned for another reason we should have another conversation because that could that could turn into longer than but as far as what number do, I pay attention to for sure the patient percentage. I think gives you a better indicator of lots of things in your practice. And we look at both right. So like him saying, it's important to look at cases epi- rates because you wanna know how. Well, the front desk performing when it comes to treat implants, I personally looked dollars. Because that's where we're gonna make changes on figure out one could be treatment planning better should be divide up ship plan. So there's a higher acceptance. So on what in cases, a higher number makes you feel good that you do. Doing something. But at the same time lower number on the treatment plan accepted. Just makes you want to do you need to change anything with the practice or the waste presented. So that the patient says yes to a larger amount or tries to complete everything in one shot. So it I look at both numbers personally. Awesome. Well, this this was really enlightening. This gives me a little bit more ammo and a little bit better of script to explain case acceptance, there are two definitive ways to do it the way that I track it is I accepted procedure that's actually scheduled and performed. And and the dollar amount is also an important factor as well. But thanks guys. I appreciate it. These things are intended to be short and informational, and as usual you didn't to disappoint. So anything further to add Michael or Kevin before we adjourn on this particular topic. Well, thank you for making geek sound cool again and to be here. Kevin. Oh, you know. I say no your numbers, whether you didn't manually or using a service like divergent just case, except it's one of those big numbers. I think everybody should pay attention to because of how much it can impact your bottomline of production collection. Yeah. You know, there's there's standard KPI's where we're looking at expenditures for each line item of the PNL calculating overhead and then we have production. We have collections we have production collection ratio. We have new patients, but then there's certain things that are very cumbersome to track like attrition rate. Like case acceptance like reappointment rate, those sorts of things aren't super easy, and you have to do a little bit of digging in your practice management software. If you have an affordable solution to tracking those that gets kind of shot to you every single night. I really believe that the convenience of that is worth a minor expense. So that's why like divergent so much and this isn't intended to be commercial. But that's why I give you so much airtime. Kevin I really really. Believe in your product. I thank you so much. All right, lazing, gentlemen, like Aloma tone and Kevin Russian. That sound is that is a procrastination if you haven't purchased your tickets for dental success summit, what do you win for the seventh annual dental success summit is just around the corner from now until February a you can still pick up your tickets for forty percent off the regular ticket price. Come join us, March twenty eighth and twenty nine in Scottsdale. Arizona for some of the most respected and sought after speakers our profession tactical information that you can immediately implement on Monday morning. Perfect weather and beautiful. Then Mondat what else could you looking don't success dot com? Get your forty percent ticket. But only until February two thousand nineteen dental success summit dot com. And that wraps it up for another episode of the dental podcast. Thank you so much for joining us this week. And we'll talk to you next week take care Bye-bye. Thank you so much for joining us today on the dental for Noor podcast. Check out true dental success dot com for full recaps of every show a schedule of our live events free. Video tutorials and a whole host of practice building resources.

Mr. Kevin Rawson Michael Lamontagne Mark Otis Dr Mark Costas Indianapolis Dr Mark Kostas Dr Aaron nNcholas Indiana coordinator Kevin man root canal Kevin Russian ACLU Scottsdale Arizona India Dr Anthony dough PNL
944: Profit, Loss and Team Bonus Structures

The Dentalpreneur Podcast with Dr. Mark Costes

20:42 min | Last month

944: Profit, Loss and Team Bonus Structures

"The dental for Noor podcast. Okay, Doctor, it's time to put down that hand piece. You're listening to the show. Dedicated to helping dentists get their lives back. It's time to decrease your stress. Increase your breath ability and regain your passion now introducing your host Dr Mark Costas. Hello everyone welcome to another episode of the Demo podcast on your host Dr Mark Costas. How are you guys today? Today is a good tactical episode. If you guys want to talk about numbers if you're in the mood to talk about profitability EBA. Team bonuses, and that sort of thing in this action packed to fifteen minutes. That I took from a keynote presentation that I gave in front of a couple of thousand people in Scottsdale last year. Then you're in for a treat today. In today's episode, we talk about. How To. Calculate revenue swings within your dental practice how to take significantly more money home from an income standpoint obviously pretax. without having to produce more dentistry and the correct way to structure team bonuses without getting yourself into trouble because many staff bonuses can be disincentivising, and also they can cut significantly into. The owners profitability, so there's a nice trick to. Structuring them the correct way? I. Hope You enjoy this episode. This episode being brought to you by the dental success network dental success network dot com slash free forty-five. User probably sick and tired of hearing me talk about the dental success network, but interestingly enough over the last couple of weeks. I've gotten more calls. And social private messages than I have. In months maybe years there are a lot of people that are looking for coaching. There are a lot of people that are looking to buy their first practice or to merge into another practice or To make the strides into multiple practice ownership, and made people are just asking if I have some advice, or if I have some great coaching tips or how to go about getting private coaching with me. And you know depending on what stage of your career in if you're a brand new dentist, if you're an associate, that's trying to get more. Educated as far as how to make that I practice our first purchase, or if you are a young dentist young in your life cycle in your career. Perhaps you're looking to. Significantly grow your operation. typically I will I recommend that people joined the dental success network. Take a look around in their learn. Vocabulary learned the basics of practice management. Get some tips on how to increase your clinical efficiency and your clinical sweet. Get some good discounts in the buying group and just look at the archives, and how much incredible continuing education. We have inside our document vault in our C E library. So, if you're interested in that sort of thing, make sure you go to. DONALD SUCCESS NETWORK DOT com slash free forty five for your free forty five day membership. That's a great first place to start. If not, you can always email me Info, at Tru Donald Success. And I am always willing to hop on a call. With anybody that's interested in any advanced coaching or anything of the sort. Okay guys enjoy this episode. If you have any questions with this episode, email me or private message me. Out To me one way or the other, but I'll tell you I'm most responsive, because they spend the vast majority of my time inside dea, said so go ahead and start your free forty-five day membership normalization at all. Okay guys have a great day and we'll talk to you soon just here. This is the scorecard. Remember how this works expenses on the left column, the actual dollar amount that we've spent the expense percentage, the industry standard, and then the variance between what he's actually paid and the industry, Standard Okay we down with that very very simple way to read a PNL. Red is bad. Black is good. So hygiene stats. We covered that this is the divergent report. We're looking at advanced analytics in the divergent report. Typically the biggest thing that I look at in the divergent report is the reappointment rates the case acceptance okay. That should come to every single day. Divergent, it could be some other analytics company, but make sure you're capturing those advanced analytics very important. Okay just to review attrition, versus new, patients, okay. And Attrition Patient has been in your practice or been gone from your practice eighteen months and one day they count as an attrition patient. Okay. There's a lot you can do with that data. First of all you can determine if your practice shrinking or growing. I, ventured to guess that a lot of you guys out there. That think that your practice is actually doing. This is actually this or this depending on the attrition rate. Okay, it's just a good bit of data to know. And with an advanced analytics program. It will spit out the actual number of people that have attrition out that particular month. So your team can take action on that. If you guys don't have a reactivation program, it should be something like a letter post guard phone. Call some special offer to re engage maybe an email, maybe a text. Some sort of reactivation campaign because. Just because somebody hasn't come into your practice for eighteen months in one day. That does not mean they're mad at you. Necessarily, that does not mean they're dead. That does not mean they've moved. In most cases life just got away from them. They just need a gentle nudge to come back to your office and calling thirty two patients on an attrition list. Is Much easier and less expensive than sending ten thousand postcards. SCATTERSHOT! To an area within five miles of your practice. Or spending sixteen hundred dollars on pay per click. Or doing a radio AD. So try. The easy stuff I the low hanging fruit relation. And referral generation internal marketing. Okay, this is very very important graph. Remember Dr Glenn Current Financial Picture he was producing a million collecting nine fifty, so he had eight percent. Opportunity. To collect. Total expenses eight hundred eight. Total overhead eighty-five percent. Dr Glenn Baseline Expense, Ratios Thirty thirty thirty ten. He was actually thirty one point nine off. Totally forgive that all day long. Two percent over staff salaries all good. We can find that somewhere else. The, problem was the second one. Expects is at forty eight point three seven percent. If, you have double offenders here. Two percent for the staff eighteen point three percent. For fixed and variable expenses. We're in trouble or in trouble. You look at the optimal compensation for the doctor. Thirty percent. He's at twelve point. Six Percent Dr Glenn owns a million dollar practice and he's paying himself. One hundred thirty two thousand dollars per year is a real case before debt. Tom talked about the balance sheet when we superimpose the balance sheet on top of the PNL. His one hundred thirty two thousand dollars looks more like seventy five thousand dollars. And if you add a mortgage, two cars private school. And groceries. That doesn't leave. A whole lot left from somebody that owns a million dollar asset. K.. In twenty five years, he'll be able to sell that. Million Dollar Asset for seven hundred fifty thousand dollars, but it's probably not a bad idea to get that overhead down right now and realize the true value and cash flow that a million dollar practice generating. Okay. Dr Glenn, Total Take Oh, man hunt come one hundred and thirty two thousand revenue swing opportunities when I. Talk About Revenue Swing on talking about increased revenue and I'm talking about decreased overhead. Okay, so revenue swing if we decrease overhead, incidentally, here's here's some stats that you might be interested. The typical new mastermind increases revenue. Thirty four percent in the first year and drops overhead eight percent in the first year, so the revenue swing for our masterminded the first year. Forty two percent. Forty two percent more money that's coming into their bank account at the end of every month for producing this much more. Zero? Zero more time at the chair, zero more time away from the family. Becoming a sophisticated business owner and they're getting forty-two percent and more out of their practice. That's powerful so revenue swing. Dr Glenn. Remember Phase One thirty, thirty, thirty ten. He has a collection shortfall of eight percent. No biggie I've seen much worse. That is a potential of collecting eighty, six, thousand, seven, hundred twenty four dollars. Over John overhead eighty five percent versus sixty percent. The difference there is twenty five percent twenty five percent on his nine hundred and fifty thousand dollars. Is Two, hundred, thirty, five, thousand, four hundred sixty dollars. Potential revenue, swing opportunity for Dr, Glenn Three, hundred and twenty, two, thousand, one, hundred, eighty, four, plus the one thirty two that he's paying himself now. He could potentially give himself for three hundred twenty two thousand dollar raise in twelve months. If he learned how to control his overhead and collect money. Zero more production. No more production. Okay, this is the stuff that Jake and I in our black belt trainers. Do every single day we put a plan together to go find that three hundred and twenty two thousand dollars, but we have to know that it's there i. Right so we're still in the financial baseline phase here. Let's go find this three hundred twenty two thousand dollars. Let's put a plan to to go get it. That doesn't include spinning the hand piece more and sitting at the chair, longer and go and going to get really exotic training that comes in phase two and three, but for right now the lowest hanging fruit is to fix the business and recapture the three hundred twenty two. Google Action, item number one decrease non payroll. Related expenses remember I'm not touching payroll. Human capital, the most valuable thing for your dental practice. Take Pride in having your team. Be the highest paid team in the area. And go find those extra percentage. Point somewhere else. And let them know that they're the highest paid in the area. and. Go find those percentage point somewhere else. Lab Fees. Ideal nine percent. He was plus a one point eight eight percent I will tell you this right now. Unless. You're a super aesthetic practice like doctor. You shouldn't even be anywhere. Near nine percent. Nine percent is probably one of those percentages where we have the most leeway most of our mastermind there's. And some have very high end practices. Come in at four percent or lower there, so we can pick up five percent there right away, but he. He's at ten point eight percents. Which means that we can find at least six percent there six percent on one hundred thousand dollars a month. Practice is six thousand dollars. Find a better lab or negotiate with your lab and give yourself a six thousand dollar raise. Without picking up the hand piece or doing anymore production. That's one line item. Six thousand dollar potential they're. Down supplies ideal five percent. Less than five percent. He's paying ten point eight percent for his dental supplies. That is not acceptable. And not necessary. I've been to many and I love my suppliers. Love, them. Because we work really really well together, and they know that I'm watching every single item every single month. So we have a great relationship. But, I've been to so many conferences were a supplier will get up and say Dr. Dental supplies are five percent of your total revenue. Don't waste time. Concentrating on dental supplies. Tiny amount of your revenue. What are you going to be counting the number of two by twos? You put on a tray. You GonNa. Be Measuring the amount of flossy. Put on a tray. Are you gonNA try to squeeze every little drop out of the light body when you're doing an impression. Don't worry about that. Worry about big stuff by Sarah for one hundred fifty thousand dollars. And you can save sixteen dollars per unit on your crowns. And we buy it all day long. That kind of Philosophy on dental supplies leads General Dennis. It's great general dentists like you and I two five point eight eight percent over on one category area, and again around numbers that's fifty eight hundred and eighty dollars on one hundred thousand dollar practice because you didn't want to count the number of two twos that you're putting on your tray more importantly, you weren't paying attention to how much each individual item costs. Powerful to line items eleven thousand dollars. To Line Items, eleven thousand dollars, no more production. Skip Yourself and eleven thousand dollar raise. Office expenses ideal one point two percent. He was overpaying for paper and ink and pens by two point, four percent, two point, four percent, two grand to grand too much paper. And expensive pens. Advertising I have no problem. Raising advertising budget if you can justify the Roi. If you can justify the ROI and you're really keeping track of which campaigns are bringing in at least minimum three to one Roi. Then you can justify an right here, but until you can do that can't justify it. Total potential overhead correction twelve point zero five percents. That is a big number. Fixing the overhead by twelve percent is a big big number that's without touching any of the fixed expenses. This just variable expense. Action item number two. Redesign staff incentives. Dr Glenn because he's a good guy. And he agreed with my philosophy that human capital is the most important thing. decided that he was going to incentivize team based on production. How many people have incentivized their team in the past based on production? It's okay safe place, right? incentivizing your staff based on production comes from a good place. It comes from sound logic. That if you incentivize your team to produce more dentistry. They will be motivated. To close more cases. They'll be motivated. To do more same day treatment. And they will be motivated to increase the revenue because they're going to get rewarded for it. Dr? Glenn is a perfect example of why that could be misguided logic. Because if you're incentivizing based on production. And you have an eight percent lag in the collections ratio. and. Your overhead has to be eighty five percents. Then who's making the money when you produce more dentistry? The team, not you. That's increasing your overall overhead. and. That's not benefiting the practice or the doctor. I see more misguided incentive plans with doctors that are coming from a really good place, and the logic is sound. But incentive program has to be a percentage of profit if the doctor is making zero profit. Like Dr Glenn There is no room for instance for the staff. You guys already know how I feel about staff I wanNA take care of them, but the business has to be taken care of first because if you bleed the business dry, no matter what your intentions are. The nobody has a job and you're going out of business. So the incentive has to be based on production of profitability, no profit. No incentive for the team. If you get to fifty percent profitability. You're paying yourself thirty percent of the total revenue. Of the practice of total production and revenue of the practice, and you have twenty percent overhead. Would it be cool to give your team one or two percent of that twenty percent profit? Yeah There's no downside to that. So you're making eighteen percent profit plus thirty percent of your production. You're doing great. Two percent goes back to the to the staff to split evenly amongst themselves. And what does that do? That gives them looking at production. That gets them making sure that there are submitting the billing statements and following up on the collections correctly that make sure that that makes sure that they are collecting hundred percent of the copays at the time of service. Right that makes sure that the inventory is an out of control and that every single line item. On the dental supplies is being watched like a hawk. That's what happens to your team. When you incentivize based on a percentage of profit, instead of a blind number of production in that wraps it up for another episode of the dental podcast. Look forward to reconnecting next episode. Thank you so much for joining us today? On the dental preneurs podcast, check out true dental success dot com for full recaps of every show, a schedule of our live events, free video tutorials and a whole host of practice building resources.

Dr Glenn Dr Mark Costas PNL Scottsdale Tru Donald Success Glenn Three Google industry standard DONALD business owner Tom Jake John Sarah General Dennis eight percent five percent million dollar
How to Synchronize Patient Engagement with Modern Lifestyles with Chris Nicholson, CEO and Co-founder at mPulse Mobile

Outcomes Rocket

26:40 min | 7 months ago

How to Synchronize Patient Engagement with Modern Lifestyles with Chris Nicholson, CEO and Co-founder at mPulse Mobile

"Welcome to the outcomes rocket podcast where we inspire collaborative improved outcomes and business success with today's most successful and inspiring healthcare leaders and influencers. And now your host Sal Marquez. Welcome back to the outcomes rocket today have the privilege of hosting Chris. Nicholson he's the chief executive officer and Co founder of EM pulse. It's mobile the leader in conversational. Ai Solutions for the healthcare industry. It's an incredible work that Chris and his team does over there. They're are driving to improve. Health Outcomes and business efficiencies by engaging individuals with tailored and meaningful dialogue. Chris has over two decades of healthcare and technology algae leadership experience from prominent fortune. One hundred companies such as Humana and verizon prior to joining impulse. Chris spent over a decade in strategic leadership ship roles at Humana most recently as the VP. And a C O of wellness with responsibility for managing two hundred million plus PNL and integrating degrading five acquired companies to build the second largest wellness company in the US. Previously Chris Lead Humana strategic consultancy. Division and enterprise shared services team focused on accelerated business transformation and cross departmental collaboration as leader of product development and innovation teams. Chris developed a patented communication solutions that received industry-wide recognition and awards and more importantly improved a healthcare experience of millions of consumers mors. Today it's it's more important than ever in this increasing. Healthcare consumer focused health life. That we're all living that we we do pay more attention and get better at these. Communications and Chris has a ton of insights. That were going into today about the conversational. A and the innovations that they're doing over there at impulse mobile so with that introduction. I just WANNA welcome to the podcast Chris. Pleasure to have you here. Excellent really appreciate it. Thank you so much for The intro and sharing some of the background and then more importantly thank you or you know creating a forum where leaders later and Qiantang collaborate and share information with others. So thank you for doing that. Person Foremost Hey. I really appreciate that Chris yet. It's it's been a lot of fun and man. I'm so excited the to dive into the wonderful work that you guys are doing and so if I miss something about the company that maybe you WanNa highlight before we get into the content here. I love for you to do that just so that listeners could get to know you and the the company better absolutely no thank you for that and I think the only additional comments I would add you know really worth highlighting is you mentioned the focus on conversational. I you know the technology and really Howard so by bridging that in a way to improve engagement and really Wider access for different healthcare populations were servicing today members there's across segments in Medicare Medicaid Commercial Med supply you know farm. Up Pop. Health and wellness A really wide array of companies in the sector are focused on enterprise scale and we are fully compliant Hydra certified and all of the wonderful things that we need to do operate in healthcare setting. And we're doing this at scale which I think is most important as we talk about. IRRELEVANCY is that actually deliver over two hundred million digital engagements in twenty nineteen. And so when you think about you know reach and access we're learning a lot to each of those interactions that makes our platform better smarter and improves the engagement with our health plan and provider partner. So yeah thank you for that initial background than being Chris. That's impressive two hundred million per year and just at the core of these technologies it takes data right and lots of it to get better so I can't imagine the improvements you guys are making every year absolutely. Yeah got a lot about that. I can share with you Across the board and I think I Is the palm does get smarter right through each interaction That's the beauty of a I. Is that every time we have a dialogue with an individual. We learn about the sentiment of that response. Learn about the preferences of the individual you know ah using that. Across healthcare use cases such as driving arts retail rate improvements for diabetes populations and had over fourteen percent. Looks there were reducing unnecessary emergency or relocation by iberson driving twenty one percent improvement in HR completions interactive messaging. And so all all the data that comes in to the platform in forms not only that particular conversation but then builds a profile around that individual that says I know how to communicate indicate better with solve the next time we have an interaction And then that creates wisdom within the platform allows us to continue to improve as we go forward just like you and I would have a conversation or dialogue. The law is we're GONNA take back and remember important notes about that and bring that back into future conversations as well. That is just brilliant and it's that type of precision care air that I think a lot of people are looking for and getting access to that is key. So what is it that inspires your working in healthcare. Chris Yeah great question. I talk about it a little bit on the inspiration side and I think it goes all the way back to when I was a kid. I've always been obsessed with communications technology. My father actually. She works for a Telco with Cincinnati Bell telephone and I remember just being so excited when like cordless phone came you know. The cordless phone came out or video conferencing or for mobile phones. And and you know those are big innovations at the time right. And so then you know through my career as I move through healthcare and at work companies like Humana. Hannah are always connecting those things back together. That just says there's gotta be a better way to communicate and engage this population In technology becomes that enabling in capability to do so and so for me inspiration as always just come from you know and seeing people adopt and leverage technology for the better good and so I've just been blessed. Take my career that I've been able to see a lot of successes where companies partners that we worked with have been able to Get bits from that. That's so great and and you've had a really interesting career Chris. I mean you've had senior roles and you just you just you've done such a great job. What would you say is one thing saying that held you back in the past that you've conquered? Yeah I think there's a lot of urban legends or myths around Communications and engagement a lot of people. So you know you heard that you know they tell themselves a story right and then once you've told yourself that story you believe it and miss around you know what you can and can't communicate over mobile for example so many people are following guidelines from when fax machines. Were the new technology thirty years ago. Around what you can send out over those communications Modalities and so. We've spent the last several years really focused on just educating companies around the true guidelines. What are the regulations? How our populations engaging there are a lot of myths that we've had to conquer around populations where people say you know low income members? Maybe in a Medicaid plan don't have back to the mobile and the reality is that they actually engage over mobile to rate to two one compared to other socioeconomic factors or people say you know seniors over sixty Steve Five. Don't engage over a mobile communications and the reality is eighty seven percent. Do and so you know. Those are the types of things we deal with a lot of Again though sort of urban legends that that we need to illustrate through data and illustrate through outcomes. What the successes actually on? Yeah it's a good point Krissy. There's a lot of assumptions. That's a good way to put it the thumbs right. Yeah yeah and I was going to say is that there's one thing that I always tell. My teams is. What are the first three letters of assumption function you gotTa dig deep and that data is is critical? It's critical. Aw Yeah and having the the experience and the success that you've had Chris I mean you're a great example of why everybody listening to this should question assumptions options and and dig deep and your career. WHO's a mentor? That's made a big impact in your life. And what did they teach you a great question. And and and Appreciate the context. I think the person that stands out for me. I had the pleasure meeting once for probably only about twenty minutes but was Jon Potter. Who is a Harvard professor and has written several books on leadership and Change Management and has been really I think a good guide is. I've read a lot of his books as well. Well to me. I think one of the things that we all need to learn from them is a village and I really understanding change management regardless of what business. You're in personal life professional life etcetera is the fact that things are going to continue to change and the more resilient you are the more agile you are about Accepting really understanding how that can be used to your advantage. I'm as key and I think John Kotter. He wrote a simple book. which is a fable called? Our iceberg is melting. And I require it for for all of my leaders because it's talking talking about we need to really think about how change impacts us and what we can do to be really proactive and actually playing pool knowing that coming as well so yeah. That's one that I think will love Taller and the work that he's done over the years man that's a great recommendation are iceberg is melting. Agility is key. It's a great one to take away appreciate that Chris you bet. So what do you believe is one of the biggest challenges in healthcare today. You know I hate to use sort of a common one but it really comes comes down to a cost to the consumer you know they continue to pay more and more each year but the quality and access to services continues to be more limited and less effective. And so you know I think the strategy that we all need them boy to improve the quality of care at you know more efficient rate we spend more per capita in the US on healthcare than virtually any our country in the world but our health outcomes actually are comparably higher right so you would think if we spent five times as much on healthcare outcomes would be five times better. The reality is that actually in infant mortality rate Diabetes Weight Issues Smoking Cessation Challenges. Like all of these things are actually at a much higher right here in the US than other markets. So you know we're missing something we're spending more but we're somewhat getting out said we knew drive. Yeah it's interesting and I mean and and and the question is why why is it happening and why why do you think yeah. I think that as I've been inside large health systems and large organizations and I think there's so much legacy work that's been built and it's just so hard to away from those I think about proven technology process that should eliminate a lot of that price esscalation those of the intent of these different tools. You know billions of dollars are invested each year in integration. Were and and just really try connected. These older legacy systems companies will sign up to Put in a new. HR system for example and spend billions of dollars to do that. And so you you know. The capital requirements to sort of move to new. Technology is just daunting and then the life span of how long it takes to actually implement that is so long that people really lose decided what the actual benefits are so. It's interesting to see some of these new health plan. The newer companies that are being created. Because they're not caring all that baggage that has to get undone and they seem. I'm to be moving much more quickly and getting results that people are looking for so it seems like a space where you almost have to wipe the board off and start from scratch to be able to be successful and and Braggart outcomes. So you know you've obviously been working to increase that customer satisfaction and I'm wondering what you think is the what holds people back from overcoming this or businesses. I think the thing that holds people back is fear of failure. Honestly I oh I can't tell you how many people in my career that I connected with that that really I think feel and have the invite that what they're about to do the right thing but they're braid from a career perspective or they're afraid you know making a decision that may not be as effective. is they believe and so they don't do anything right. A great analogy is the The people talk about there's three types of people in this world right. There's the people that make things happen right by yourself and hopefully myself right is we we get out there and we dry change. We try to make things Tappan. Then there's the people that watch what happens right minimum wonder of observing and and sort of you know slightly participating and then there's the people that really I don't know what's going on. They basically just would they. They wonder what happened right. And so to me yeah. That's the thing that you know is holding them back is people are just sort of putting putting themselves these categories but just aren't willing to step up and actually drive the chains and see it through to completion so I hate I hate to put it on ourselves but people now it is is. Yeah I I I love that and so you guys are obviously doing a good job of helping folks overcome this challenge. Give us an example of how you and your company. Chris have have worked with organizations to improve on this problem. Yeah thank you I'll give a couple for example of how we're leveraging this conversation capability coupled with what we call natural language understanding and then the mix of you know talented did people right. You know to help develop strategies and and April workflows to build communications right and so it's the science behind the communication Drive Bat and so a couple of examples. I mentioned a little bit. which is in you? Know Diabetes Management for example or we saw rates. Is You know we're helping. Barge partners like Kaiser Permanente. Nda Humana and others work on DIABETES PREVENTION PROGRAMS FOR MEDICATION ADHERENCE rate. And because we're leveraging those two interactive conversations nations we've driven over a fourteen percentage point lift and improvement there And thank you and you know things like HR eight completions which is very significant for for Medicaid and Medicare population. I'm getting members to take that survey so that the whole thing can actually capture data back about a particular individual learn. Learn about you know how believes the learn about health conditions that they may have and it's really a tough thing because they were sending letters that people would fill in by hand trying to ally phone call. We actually shifted over to digital morality. Do that over a secure messaging interaction with our acted intelligence product. And you got a twenty one percent lift left in. Hr Eight completions which is significant revenue driver for others health plan. We've also helped focus on the operational side with until could we call engagement console that allows for customer service agents to interact directly and have one to one conversation with an individual driving about a fourteen. Thirteen percentage point improvement in operations costs and the subtleties. All sort of breakdown for you in that from a tax perspective is if I'm having a dialogue along with you over for example and the old responses can you will you make your appointment you know yes or no and you know text one for Yasser to for no what we learned over time with. The individuals actually respond in a wide array of topics. So they may say I'm. I'm running twenty minutes late. My dog got out or my car broke down now or you know. I can't afford a cab to get there today and so we weren't all these things from a social determines the health perspective about a simple question which is hey can can you make your appointment right. And so those are data points that we bring back into the platform to learn and to grow on the medication. Here inside imagine you know somebody says yes. I took the medication but I feel depressed right. So it's more than just a yeah. You have to really understand the context and the relevancy of the conversation and not be so oh machine based on those responses and so that's what we've tried to do is really add the human element to the conversation. You know outside of just the technology itself and that's what we're saying in gripe such wonderful outcomes and lived in particular programs that's really interesting and so with the messaging that you guys sent out send out it's not just Binary yes or no. Do you leave it. A little more open ended to try to get more background absolutely Lee. Yeah and because that's what we we learn so much what I called between the lines right In the context of the conversation. And so you know. We'll try to sort of guide the dialogue I log right or the conversation but where somebody comes back and they may ask an open ended question or have an open ended response and really tell you a lot about the plan you know. We're helping helping people to her medication. Here and to get to pick up their prescriptions from Kaiser or you know a facility like gas or someone like that and what people people are doing is they're telling you you know well. They don't have transportation or they can't afford the medication and then we're able to respond back through the platform in an automated passionate says. Did you know there's lower cost alternatives available. You know you should speak with clinician about any side effects. All those are happening in real time over the conversation we even accept things like emojis that they respond back with a thumbs up. Or you know they say it's like Or sure or whatever. The context may be even profanity. You know it's funny about fourteen percent of people people For different programs actually responding for profanity. But it's not a bad thing. It's just the vernacular and how they're communicating. Yeah they made the hell yes correct right so but we just need to communicate on the level that consumers are engaging today so yeah now that's that's brilliant and being open minded about using conversational Ai. Understanding that there's partners like Chris's company to be able to make a difference in in what everybody's doing today is is is inspiring so if you had to summarize your solution to the listener maybe it's a three step plan. What what is that solution? Oh great question I would probably frame it as realtors right for three step plan would be Communicate engage and activate and by that I mean communicating by developing a strategy. What we actually need to engage in two for the engage? Layer layer is actually building a two way interactive dialogue and then lastly activating which is getting the consumer to do the desired behavior. If you're right you know not by forcing now more. But more steering them and providing the appropriate guidance and so it sort of steps up from the the core communication layer ear to creating interactive engagement to. Then you know what is the activation strategy that desired outcome. You're trying to get to so I think building those three things if you can do that with any any particular program. I think you're going to have pretty good success. Chris a brilliant and so obviously to every plan there's also pitfalls also what what would you say is the most common pitfall that listeners should be careful to avoid yeah. I would come back to your event earlier about assumptions Simpson's about segments. I think is really critical. We know that the data actually supports a wider view. But again the pitfall is leveraging. Maybe what we learned Five years six years eight years ago We have to be open and listened and really listening. Look at data that that we're getting on a daily basis. So what action would you. You want to make the listener steak today. I mean what. What would you say you you have to do this? I would shift to a topic around preferences I don't think we spend enough time. And I think all the listeners on the podcasts could benefit from a focus around consumer preferences and by that I mean what what is the desire channel that a consumer wants to be communicated. In what language do they wanna be communicated and often should we be engaging what topic so they interested interested in. And there's really great ways to ask those questions and learn and then be able to shape the dialogue the conversation but so often we. We sort of make assumptions options. Broadly that these things are interested in because of their age or their segment. Or you know where there's a code or something like that but I think the the call of action to me would be within. An APP would be simply stated a love that. Yeah it's It's a great call out and we do assume all the time and and I think just take a moment to pause and think about what those pitfalls could be will really help us shape that and and maybe you could highlight a couple of those does those pitfalls Chris. I mean what could happen. I mean if people don't take the time to listen and and do as you as you're suggesting testing I think they just waste a lot of money right and what we've seen you know in the partners that we've worked with and helping them shift is that you know billions of dollars. Spent each year just on out brown letters or bound statements. Or things that are essential communicated to members and so I think that redirecting you know those dollars. There's two things that are more effective again by asking those questions and listening and learning becomes really relevant. And that's GonNa be area that I think it's not route spending on top of existing. The budget were really just redirecting things. What consumers are looking for today? Chris Ed such a great point and I think everybody listening today does not want to waste a bunch money actually so we can't. We need to be efficient. We need to grow our businesses and We need to help each other. I'll make good decisions android maps -olutely and and so you you know as you think about the things that people could gain from a program like this. What's the biggest first thing that is most promising? Yeah I think The learning aspect of understanding who your consumer population is the fact of leveraging these bashing channel digital in is all real time right you have the ability to get feedback immediately about a program about a product you know about a service providing then we need to really take advantage of that right and so you know people. Today are very much vocal and social and other channels and we need to make sure that we're really supporting them across the board. And so you know I think you know leveraging that real time information reducing friction for consumers is will will really help us. Backed by the outcomes are all trying to drive. Love that some great recommendations here. Chris what what would you say is the best book that you'd recommend to listeners listeners. I'M GONNA come back to John Kotter again because I do a little bit of the promotion for him and Support iceberg melting and. I'll give you just the teaser in there is that the primary characters in the book are penguins and I bird penguins. I'll let you kind of build your story are your vision on your head But hopefully that'll be intriguing enough to get some listeners to take a peek. That is interesting. I love it. Great recommendation now definitely be picking it up. I sat down the book the first time but You know I'm definitely victim it up now. You say is an Internet resource that you'd recommend the listeners. uh-huh evernote or something like that. Yeah one that I've actually really enjoyed is Slide share dot net. If you've ever used that before no fi I cherish fabulous because it's sort of an open source where Individuals thought leaders professors teachers can post presentations and so it all powerpoint point you know slides effectively on different topics. And so you can say. I'm curious how black holes work and you literally type in black holes inside share dot net right and you can get resources and that if you said guy for about conversational a and there's people that are at presentations on conversation. I so Yeah IT'S A. It's a wonderful resource resource. Where people just say? Hey I put something together. I was proud of it and I posted it. I'm a lot of conferences and events will post content after sessions And put it inside shared sure dot net. So it's a great resource to search Presentations by topic and get some insights robbers. Wow Do you do you have any of your stuff up there. I just a few. I need to do a better job. You'd have just a few nice nice say that's a good resource. Did Not know about it folks if you didn't know about it. Slide share dot net for your next research projects. You're not assuming you're you're doing your research. It's a great great resorts. Chris this has been a ton of fun. I love if you could just share closing thoughts and the best place for the listeners. Could continue the conversation excellent I'M GONNA come back to the comments around around Communicate engage and activate leverage that three-set plan for how to engage your population and how to drive the outcomes that you're looking for and then lastly just want to say thank you again for hosting such a wonderful forum to bring leaders together and share insights. Thanks much for that's all. Hey It's a pleasure Chris and again just really want to thank you for that. And where can the listeners. Continue the conversation with you. Can they check out your website. Email you what. What's the best way to to do absolutely all of the above So I'm easy to find on Lincoln as well or you can go to. WWW DOT impulse mobile dot com. Bob and that's just the letter M. P. U. S. E. M. O. B. I. L. Dot Com so feel free to swing by and check out capabilities. Love it Chris. Thanks so much again for sharing your insights here on conversational. Ai We can improve outcomes with that Really appreciate your time. Great wonderful thank thank you for hosting and Appreciate it. Thanks for listening to the outcomes rocket podcast be shoot. visit us on the web at W._W._w.. Dot Outcomes Rocket Dot Com for the show notes resources inspiration and so much more.

Chris Humana Chris Lead Humana US John Kotter Sal Marquez Qiantang product development PNL Steve Five Cincinnati Bell Nicholson Jon Potter verizon Kaiser Permanente VP Chris Ed communications technology
964: First, Fix The Machine

The Dentalpreneur Podcast with Dr. Mark Costes

39:52 min | 2 weeks ago

964: First, Fix The Machine

"The dental for Noor podcast. Okay, Doctor, it's time to put down that hand piece. You're listening to the show. Dedicated to helping dentists get their lives back. It's time to decrease your stress. Increase your profitability and regain your passion now introducing your host Dr Mark Costas. Hello and welcome to another episode of the data podcast on host. Dr Marcus and this one. We are talking about the elite practice blueprint. guys dentistry as many of you are very aware of can be a very isolating profession. It's kind of sad when we graduate from. Dental school, we have this incredible. support system of fellow de one D two D, three and d four students people that you study with people that you socialize with and people with a common goal of doing as good as they can on their tests and quizzes and board exams. and you're there to support them. And once we graduate from dental school. Has Many of you know that are out now? it can be very isolating when we get out and we're doing our own thing either associating in a small practice where we don't have a whole lot of interaction, other people specifically people that are also you know. Dental providers. or we go out and we buy one of our own practices right away. In which case it's not isolated from the from the fact that you're the only person on the team. You have a support team, but nobody else really knows how you feel and. I I you know in the years of having the privilege of being able to coach, hundreds of dentists from all over the world. And being able to speak to thousands of dentists of the world. There are certain themes that are is, and it has. Become very apparent to me that most of the challenges that dental practice owners face are one of six main challenges, and we're GonNa talk about those main challenges as we. Discuss what I call. The elite practice blueprint. There are six pillars that we are going to discuss specifically on this episode and. I would say ninety nine percent of the challenges that dental practice owners face fall within one of these six main topic areas so I. Hope you get some value from this episode and I hope you take some notes and are able to implement some of the tips. Within this episode this. Audio is actually taken from a live pre keynote presentation that I gave in Las Vegas last year. Okay this episode is being brought to you by the the dental success network dental success network dot com slash free forty five come join us for the most positive and educational network in all of dentistry. Join US for a free forty five day membership. Give it a try. COME CHECK US out. Meet some of our incredible black belts in their some of our incredible members. Inside the network that are from all over the country it is you guys be shocked about how much collaboration and positively takes place within this network, and if you don't feel like you need it, just give it a try, you would. You will be very pleasantly surprised. I promised. We also have one of the largest buying groups in the world, so if you are a solo dentists. You own one two or three dental practices. You just don't have the power to negotiate with the big dogs like we do here at dental success network, because we represent over nine hundred demo practices with a gross revenue of over a billion dollars, so vendors are anxious to do business with us and to negotiate with us to get a piece of our network so. You can check that out, and also we have a great continuing education library. Okay, guys. I hope to see over the network DONALD SUCCESS NETWORK DOT COM for slash free forty-five and I. Hope You enjoyed this episode. We'll talk to you bye-bye. Okay, so this is our blueprint. This is what we work through. Remember I was telling you guys that they're six or eight major challenges that ninety percent ninety nine percent of dental dental practices face that are in crisis or struggling or want to get to the next level. It's all right here on this blueprint. Oh, by the way I will send. I will email this. powerpoint to anybody that wants it. I'll give you guys a code to text me and all have it sent to you because there's going to be lots of charts with small writings, so don't worry about it if you WanNa to take some pictures. That's fine, but I'll send it to you today. Here's our blueprint. I there's foundational principles you gotTA. Have a mission vision. Core value. Piece to your practice very very important to have this. I know a lot of us left. brainers just want to kind of skip over this or Google for like what Southwest Airlines Mission Vision Core. Values can change airplane dental I know. It's I know it's very very. Tempting to do that, but actually it's very important to sit down and do the exercise. We have lots of great exercises for putting together mission vision values. Operational system is. That all goes through the core values. All of your systems have to travel through your core values. How do we treat one another with in team? How do we treat? Our patients. How do we treat our vendors have? Do we want to be viewed by the community? Everything that we put in place as a system has to travel through the that that filter. We have foundational principles, Protocol Sheets Accountability Agreements Organizational Charts and so so much more I mean. There's not enough room on there for all the boxes that you need for for operational systems and your op manual. What we call your operations, manual! Lifetime, patient, experience, you guys understand of course, the importance of that new patient acquisition. We need to track return on investment for everything. that. We spend on as far as marketing dollars. Internal external recall reactivation that all falls under that category human resources. How do we? How do we recruit? How do we onboard once? We recruit a good person. How do we fire them? It's not working out. How do we hold them accountable? How do we know it's time to hire? Fire Them? How do we know if they're a good culture fit or not? How do we know if they're living up to their expectations? Have we define their expectations? Do they know what success looks like. Have you given them all the resources to be successful in their position? All of these things happened under human resources, overhead and cash flow control. KPI, analysis, profitability, analysis, historical analysis, debt, analysis, benchmarking, and growth metrics. Okay. That is our blueprint. Any problem that you have should fall somewhere on there and we have a process for it. Let's talk about Dr, Steve Cash flow and overhead control like cash flow and overhead control in general and how we actually. Designate where your practices according to phases. In our organization so. Phase one. If you guys listened to the podcast. You know that we have we. We do this based on belt levels. And the belt levels. Are granted or. Designated based on. Based on certain parameters. The first one is overhead. The second one is a system score. We figure out how system is. You are and where the holes are in your systems ation plan. Your leadership. Give you leadership scores well. We give you a cultural assessment store score. K. So cultural assessment your leadership score. Your systems -Ation Score. And your overhead. Those four things. Where you fall in our rating system either a white belt Blue Belt Brown, belt or black belt. there's a couple black belts in the room doctor stemware. Who's going to be speaking later today? The gorgeous bald headed guy with the. Bowtie Dr Stetler. From a Roklin. He's one of our black belts. So a phase one practice. Is a practice that has sixty percent overhead overhead target. And then the other the other scores are. Between forty and sixty percent, so that means your leadership scores between forty and sixty percent, your systems ation scores between forty and sixty percent. Your cultural assessment scores between forty and sixty and your overhead is around sixty percent, so the the overall overhead average in the United States it has been said is between sixty eight and seventy two percent of dental practices, hundred, eight, five, thousand down practices in the United States. About. Sixty eight to seventy two percent is the overhead excluding doctor salaries K. so to get to white belt status phase, one status India cy. You have to be at sixty percent, which is at least six points lower than the national average, so we start as white are white belts, trying to get them to phase one trying to get them to white belt status so to get to phase one. We want to focus on business. Overall business awareness systems, ation, overhead control, and we want to control variable expenses in phase. One notice that nowhere on there does it say that we need to acquire more new patients or that? We need to ramp up revenue. Okay. If, your overhead is greater than sixty percent. You have a system problem. You have a leadership problem. You have a culture problem. You have a problem, but that's okay because we are never taught this stuff. But now is not the time pre phase one. To spend two hundred fifty thousand dollars. On three new OPS. Or Device Sarah AC or to spend ten thousand dollars on a marketing plan to drive more people and do more services and throw them into this broken machine. Fix the machine I until you get to face what? We have checks and balances to make sure that you're ready to start ramping up spending more money on marketing. And hire another associate or hiring. A second or third hygienist or building a new opportunity or taking an advanced surgical course. None of that stuff needs to happen in phase one I. You need to get to phase one fix the machine I build good infrastructure that you can pile all of the new stuff on top a foundation that can support all the growth that you intend for your practice. People do it all wrong. How how many times have you guys thought this way and I'm not casting stones because I used to think this way, too. But there's no money in the bank at the end of the month working so hard I'm working my ass off. We got even more new patients than we did last month. Our productions going up. Where is the money going? I know. I'm GonNa take a twenty five thousand dollars surgical plus. That's GONNA fix everything. I need to hire another associate. Clearly, we need to produce more. Do you need to produce more if there's no money in the bank at the end of the month? Will Yeah but not until you fix the machine. Okay. this lady up to me one time after after meaning, she was loved your talk. It was amazing life changing. But you are so mad they're. So Mad. Not Mad I'm passionate. Love you up. There's a smile under here somewhere. Okay face to over you focus is increased revenue and increased patient flow. Okay, so now we fixed the machine the overhead of stabilized. We've identified the variable costs that need to be that needs to be adjusted. Our leadership scores going up slowly. Our system is scores going up slowly fixing a toxic culture slowly. All of that stuff is happening were stabilized. We're ready for growth. It takes time to prepare for growth. Don't assume that you just need growth my big problem with a lot of the consulting companies out there who shall remain nameless. There's lots of great ones, but some of them are just because they've never been a dentist and they know marketing, so if they have a hammer, the whole world is a nail so your problem. Miss Dr Jones is that you need more new patients, your problem. Dr Jones is that you need to produce more. Not, even looking or analyzing, even taking a look at the piano, everybody needs new patients. Everybody needs to convert more new patients on the telephone. Everybody needs to market more. Everybody Needs Seo. Could be the case, but fix the machine I so now. The machine is on its way to being mended in face to focuses on increased revenue and patient flow. Further empha- emphasis on creasing hygiene production percentage I've talked about hygiene yet. It's a huge opportunity. We work in TV. Incentives now More advanced data analysis. This is when we start calculating cost per procedure a big joke that McDonald's knows. How much sesame seed costs. Toyota knows how much one screw one bolt one three inch piece of wire cost. But does a dentist no hope not how much to gos- or a six inch, pizza, floss, or a temporary round or impression material for one crown or a burr. Do they not like that? Do they to the degree that they know exactly how much it costs to produce their production. Do, you know how much it cost to produce a crown, not your lab feet. How much does it cost to run that room for utilities and Support Staff Up Front? Assistant. How much are those two by twos? How much is that temporary material? How much is one drop of prime bought? All that stuff needs to be spreadsheet it out and we need to know exactly how much it costs to produce your production. Once you know how much it costs to produce your production. You can make sophisticated decisions about what to do your business. I have three practices out of six that accept Medicaid. People. How do you make a dollar on Medicaid I know exactly how to make a dollar on Medicaid. 'cause I know exactly how much it costs associated produce the production. I know exactly. Fee for service man. It's not worth the to right through thirty percent off for Delta. But have you ever done the math though? Like. If you squeeze your overhead down to fifty percent. And you're writing off thirty percent. And you would, you would have paid ten percent to get that patient to to sit in your chair anyway if there are a fee for service patient. You're about equal I am no fan of PPO's. I'm just saying the more information you know about your practice. The more sophisticated you become about running a dental practice, the more informed decisions you can make the greater likelihood that you will have a wildly successful practice, and there's no bitching if you don't know all the information. I can get to somebody immediately when they say I've tried it. All is consulting does not work well. Have you done this this this? This will no, but. No I haven't. Internal and external marketing. We're talking about Roi again. Expenses and overhead targets here now didn't talk about this last time, but the thirty twenty, five thirty fifteen indicates the first thirty percent is payroll. The second twenty five percent is fixed and variable expenses. The third thirty percent is Dr Salary, and the fourth number is is. Is Profitability. The other people were not production, but profitability so those are the numbers that we need to focus on. I'll go over this again, but this is a fifty percent fifty five percent overhead practice now, okay, payroll fixed variable expenses Dr Pay and prophets. Face three hour getting into black belt status here focuses on further revenue, increase and overhead decrease. Increase your clinical sweet in this phase increase capacity, which means expansion or maybe picking up another practice. If it's right for you, increase the number providers working in your practice. Increase the number of specialty services in your practice. Maybe multiple location expansion, expenses and overhead targets are twenty, five, twenty, five, thirty and twenty. Notice that in this phase the payroll goes down to twenty five percent. That is not because we're paying our people less. That is because we are producing more in phases, one and two I am not in favor of cutting anybody salary or eliminating anybody on in your practice unless you were grossly over stout. Human capital is the most valuable thing in your practice. Perhaps more valuable than you. If you put the right team in place, so it's very very important. That? You don't underpay your people. Get sophisticated enough you can find percentage points to shave off of your overhead in the second thirty percent, which is fixed and variable expenses. If you insist on buying the most expensive impression material and you insist on three hundred dollar. Crowns. And you insist on. Six hundred dollars implants when there are alternatives, there is a give and take. You have to cut that somewhere else, and if you're losing on the quality of human capital that you have because you. On, not compromising. On variable expenses then your practice is going to pay the price. So when you have to have that impression material, or you have to have that implant, or you have to use the ceramicist over here. You know you're overpay. Just be aware that you're taking that from somewhere else in the practice and usually you're taking that away from the human capital that you deserve to spend it on. All right. So for him, he was way above Dr Steve was way above a phase one, so he wanted to establish his financial baseline. We needed to figure out what his average toll revenue was what his allocations on his PNL? Look like what is overhead. Profitability was where his Ar was incidentally is era was about two hundred percent of an average months collection and what his cash flow and debt service looked like. So we're looking at production collection new patients overhead payroll labs Donald Supplies. So what is payrolls fixed variable? Fixed expense. What is what is lab fees extra variable? Variable what our dental supplies fixed variable. Facility equipment. Break even point is the amount of money that it takes. Some people called bare ass. Minimum Bam. We call it break-even. Point doesn't matter. It's the amount of money. It takes to run the practice. Without Dr, pay. What is your break? Even point. How much do you have to produce and collect before you make that first dollar? Good all right so here. Is kind of the framework and the the backbone of. Our financial coaching this scorecard. Conway you guys get here from J. Conway about advanced practice analytics. He's our. He's our financial analyst at Dental Success Institute he and I. Drafted this up on the back of a bar coaster on after about three beers because I was frustrated that I was having to go through and re categorize all of our clients. PNL's every single month, and I don't like doing that, so we created this thing. That is super duper easy to read for me. It has all the information that I need to know about a client on one piece of paper, so this is Dr Steve's two thousand seventeen scorecards, so we give these out every single month with lots of other reports, but this was his his year in a snapshot. Okay, if you can't read it, get you copies of this. He had two hundred eighty eight new patients, which was twenty. Four per month is net. Production was one point zero four one for the year eighty six thousand dollars per month is revenue was two, hundred, nine, hundred, fifty, four, thousand, which was seventy nine dollars per month. You guys might be seeing a discrepancy. There is collection. Percentage was only ninety two percent. That's a big problem. Is Hygiene production was one hundred and eighty seven thousand dollars for the year, which was fifteen thousand a month, which was only eighteen percent of the total practice revenue. HOW MUCH WE SHOOT FOR! At least thirty percent, right? That's the ideal. Jake and I have a lot more to talk about. As far as that goes when you get way more sophisticated if that goes over and above thirty percent, some people think well great thirty percents good over thirty percents, even better for hygiene, not necessarily. Not necessarily that means that we could have an undiagnosed problem on underdiagnosis problem on the doctor side or the doctor actually may be underproducing in comparison to hygiene department, so we like to see between twenty five and thirty percent. If he gets up to thirty four thirty, six thirty eight percent, the doctors diagnosing the doctors underperforming okay. Overhead excluding doctor in Doctor? Steve Case Eighty five percents. So as overhead variances plus twenty five. We need to somehow shave twenty five percent off of his overhead to get him to be a white belt. He's got no belt are falling down. Poor guy he's got no belt eighty five percent. This is not super uncommon. We see this a lot. I think the biggest overhead we've ever seen one hundred and sixty two percent or something in Houston, remember that client is still weather down like sixty percent overhead now, but that was a two million dollar practicing at one hundred sixty two percent overhead crazy. His net profit, basically zero his debt service ninety. Thousand Dollars, which was seventy five hundred dollars per month, so there's no payment with seventy five hundred bucks per month and his available funds, which means after debt payment. How much money does he have at the end of the month? Negative, six, thousand, three, hundred seventy seven dollars. So. He's losing. Six, thousand, three hundred seventy seven dollars per month. Which is why he called me in a panic or emailed pan. Very very common. We see so if you look down here at the variants line. You look down here at the various line. Even if you can't read the numbers, you guys see that there. There are some red numbers there. Okay, so the red numbers mean that there's something bad happening. On financial reports red means bad. Lack means good. Okay, so if you're GONNA, go straight down the columns here here. All the expense categories here's everything. Is, broken down just like a pl specific to a dental practice. Okay, the practice expense here is how much in dollars we spent per category expense for Senate here's how much we spent per percentage in each category and here in this Blue Line. This is what we consider. The industry standard now are industry standard gets more and more rigid as you go up in phases right so. For, instance are loud fees. In phase one is seven percent we allow. We is nine percent. We allow seven percent as a black belt phase three, so it gets harder and harder to qualify for these ideal industry standards as you drop your overhead, and your overhead gets tighter and tighter, so here are all the areas where he has overspending according to industry standards. He's overspending on staff. Salaries hygiene salaries. He's overspending on total payroll. He's overspending on lab fees. He's overspending on dental supplies so. He has an eighty six thousand dollars a month practice. He's overspending by five point eight percent dental supplies in one point eight eight percent on on on labs, so that's seventy seven and a half percent overage on variable expense categories. K. If you multiply eighty six thousand times seven and a half percent. He's overspending by about six grand every month on two categories. So without spending another dime in two seconds by looking at that scorecard in two seconds if he just started negotiating prices with the suppliers control, his inventory found a new lab. which there's a lot of great ones that are reasonable. He could give himself a seventy two thousand dollar raise without. Having to produce another dollar that is almost as much as he is negative, so we could fix things without fixing anything else, and we could fix negative cash flow problem. We still have a break, even casual problem. Right, but that's how easy it is to analyze the stuff. If you have all the information, right in front of you. At. Patient attrition all of these these are all divergent reports Kevin Ross great great guy. He owns divergent uses reports for all of my practices. All of our clients get a subscription to divergent goes into the back. Thank you, ten minutes goes up to the back of your tax software and impose all these events analytics out the dark Blue Line is new patients and the light. Blue Line is attrition. So you can see that of the two hundred and forty four new patients that he had, he lost two hundred forty five, so he's actually shrinking, and that's actually not bad. I've when I first started tracking my Tristesse I was stoked because I was like. Yeah, that practice is solid. They get like eighty between eighty and one hundred new patients a month and I started pulling these reports and I was like Shit. I'm losing one hundred and twenty month. Some practices are actually retracting. Important information to be able to track no. K. Hygiene stats kind of just another bar graph example of what we were talking about. We like to see the two parameters. We like to measure for hygiene. We like to see them produce three times their pay, actually three point three times their pay. Or is close to thirty percent as possible. As a department of the overall height of the overall production and collections of the office, okay. So. This particular hygiene department was doing one point eight times their pay their producing six hundred fifty five dollars per day, which was eighty nine dollars per patient, not good. Their payroll percentage was only thirteen percent in their floride. Percentage is only twenty four percents. Lots of opportunity, just minor tweaks that need to be done. This happens in face to. So I got five minutes and I'm going to buzz through this really fast, so for Dr Steve His net production was a million collections was nine fifty four. His collection percentage was only ninety two percent. His total expenses were eight hundred eight thousand dollars per year is ahead was eighty five percent, not good. Looking next to this matrix of thirty, thirty, thirty ten, his payroll was thirty one point nine. Forgive that all day long if we could find it somewhere else. Do you think we can find it somewhere in the fixed and variable expenses? Is Fixed and variable expenses are forty eight point three seven percent. He's got eighteen point three seven percent to play with. And then guess what the the one point. Nine percent in the total payroll becomes irrelevant because we just found eighteen percent in overhead. And Look. How much Dr Steve is paying himself twelve point six percent versus. What he would be making. As thirty percent in his associate that he alluded to. Zero profit. Is Total income. In Two thousand sixteen was one hundred thirty two thousand dollars on a million dollar practice. That's not good. Not, good like see it a lot higher than that. Okay Ray Revenue Swing opportunities. So we want to get him to phase one if we got him to phase one. Just phase one white belt status. We need to fix that collection shortfall. Something is happening in his billing department. We need to analyze that billing department and see what they're doing wrong. Or they not following up with denied claims they not you filing in time, there's something happening. Are They not verifying insurance correctly before the patient goes back to be seated, something has happened. So. There's an eighty six thousand dollars per year problem. Right there you fix that once again. You fix a little bit of the overhead. You fix a little bit of that. You can see how quickly you can get one hundred thousand plus dollar return on couple tiny little tweaks. The origin overhead eighty-five versus sixteen. You have a two hundred and thirty five thousand dollar opportunity. If we fix that, we drop is overhead by twenty five percent. That's what it looks like. K Eighty six thousand plus to thirty five is three, hundred, twenty, two thousand, if he didn't produce another dollar of dentistry. Not one other dollar of dentistry we fixed a few things that we collect the money that patients already. Oh Him. He gets a check for three, hundred, twenty, two, thousand, one, hundred and eighty four dollars without producing another dollar of dentistry. But, once you get to face to. We're going to ramp up production to about. Three hundred and fifty, four hundred and fifty thousand dollars. In cash flow swing. In Sixteen to twenty months totally doable. Changed this guy's life. He's been struggling for thirteen years making one hundred thirty thousand dollars because he doesn't know how to run the business correctly. He's producing just fine. Great practice. Just needs to fix a few things. Okay, so here's where he was. He was over loud fees like I said. He's over in dental supplies over an office expenses. He has a twelve point zero five percent. Potential correction overhead Justin variable expenses. He was paying his. How many people have done this before? And I'M GONNA. Raise both hands because I've done this. In probably six of my practices, how many people have ever done an incentive program based on production or collections only? Raise them high. Join my club, okay, what does that do? He grew every year for the last six years, and he was incentivizing all of his employees based on production and collections and every month. You're losing more money. What has to be rolled into the incentive program. There has to be an overhead components. In order to qualify for the staff incentive program. If the doctors making negative, sixty five hundred dollars per month. Can. He afford a staff incentive. No. You can't afford a staff incentive. Frankly, he needs to get them on board. To help him control the overhead. To help shop for new labs. They need to shop for the most cost effective dental supplies. They need to not by the eighty two dollar. INC! For the jet printer. They need to help. And they'll be rewarded for it with team incentives. Okay so! I'm going to click through this. So all right data mining and advanced analytics production breakdown proprietary code. We all know that that's really important to do. What's you get into kind of associate driven multiple practice model? This becomes really really important and enlightening, because you can have to doctors in the same practice or two doctors with in similar practices and one is doing. Sixty two three surface. Compulsory composites per month, and was doing one and one is doing sixty two crowns, and one is doing one right so there's got to be happy medium, and you have to be able to kind of look and see and make sure that your philosophies for treatment planning and producing and diagnosing are calibrated really really important. Average revenue per exam revenue per visit, reappointment rate percentage. That's something that we track every single day. Reappointing rate should be above eighty five percent on scheduled treatment opportunities, case acceptance percentage. We like to see it over seventy percent missed appointment. Percentage should be under ten percent. Attrition rates. Depends on the practice. Active patients active hygiene. Okay, here's something I. I would love to talk guys about just for a second I forty eight seconds. Okay so active patients active in the hygiene department. This is really enlightening. If you own your own practices, go back home. Calculate how many active patients you have the number of people that have been through your doors in the last eighteen months. Then calculate how many people have been into the hygiene department unless six months. That percentage is your your total of active patients that are actually active in the hygiene department a lot of times. We don't even realize that. The vast majority of our patients are not coming in for cleanings. They'll come in for the restorative work. They'll finish their work then. You won't see him for three years or ever again. It just kind of get lost in the shuffle, so do that little. Run that little report, it could be very enlightening. Okay! Let me go to the end here. Okay, so we worked on a bunch of stuff with with Dr Steve. We worked on his systems ation. We started with what we call. The system is Asian jumpstart. We started with three very simple systems. It was end of day protocol downtime protocol, and they am office. Manager Protocol three very simple systems. When we finish the operations manual for practice. It's five hundred seventy five pages. That is really intimidating to do so we like people to start in the system is world by slowly dipping their toe into the process, so we just give them three simple systems that are going to move the needle very very quickly as downtime protocol. and. Update Protocol and am. Office Manager Protocol I can talk more about that After I'm off stage if anybody wants to hear more about that. We started that with him. We eventually got him completely systemized. He got his operations manual done. We fixed incentive program. We fixed his marketing. We We tightened up his his overhead and here's what happened. His net production went up slightly one point one five million to ninety five thousand dollars per month. His revenue that he collected. In the next year one hundred three percent. What happened there? Finally went and got some of that stuff from last year. So, he one hundred and three percent collections is hygiene. Production was three hundred and ten thousand, which is twenty, five thousand for much month ten thousand per month increase, which was twenty seven percent of the overall revenue. Good spot to beat. His total expenses were six, hundred, sixty, one thousand, so he's producing more and spending less. That gap is where is increased revenue personal. Take home revenues. Coming from is overhead dropped all the way down to fifty six percent, so he actually dropped twenty nine percent in overhead. We see this all the time once people get that ball rolling that snowball rolling downhill. It just keeps on rolling and. It's a beautiful thing on the other side of it dropped twenty nine percent overhead. Kay. He raised his salary to two hundred, seventy thousand. which was twenty two thousand dollars on average? That's the salary not as prophets. And his net profit turned into from negative to twenty thousand dollars per month. Is Service stayed at seventy five hundred dollars? And is available funds at the end of every month with was thirteen thousand. Three sixty four after he paid himself. His salary. An after he paid himself the profit, so that's leftover money. OCCA- so, let's take a look and see what that looks like. The bottom line is this. Is Collections increase from ninety two percent to one hundred and three percent from seventeen to eighteen, which was a twenty four percent growth, two hundred twenty eight thousand dollars is overhead, decreased by twenty nine percent, which was a plus one hundred forty six thousand dollars his. His hygiene increased by sixty six percent from eighteen to twenty seven percent. Which, Equal One hundred twenty three thousand dollars. K? Is Total revenue back to the practice was three, hundred, seventy, four, thousand, eighty eight. So in two thousand seventeen, he made one hundred thirty two thousand dollars take home. Two thousand eighteen. He May to seventy on salary was two hundred fifty thousand dollars in profit, which equals five, hundred, twenty, one, thousand, one, forty, four, which was three, hundred, eighty, nine, thousand, one, hundred and forty four dollar increase from the previous year. This happened in twelve months. Twelve months with Dr Steve because he went after it. Kicks enough. So. That's all I have for you guys today much more if you show up tomorrow at two forty Saturday at eight. and Saturday at five so tomorrow I talked just about cash flow more of this. Saturday morning I talk about all this stuff in greater depth. and Saturday afternoon I speak just about leadership and how to increase your cultural assessment score within your practice. Okay? I'll good. I'm available all weekend. Guys, thank you so much. Reps it up for another episode of the Dental podcast? Look forward to reconnecting next episode. Thank you so much for joining us today on the dental preneurs podcast. Check out. EXCEPT DOT com for full recaps of every show, a schedule of live events, free video tutorials and a whole host of practice building resources.

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JP Morgan Coin 101

CRYPTO 101

42:15 min | 1 year ago

JP Morgan Coin 101

"Yoyo welcome to quarter win one the consumer's guide to cryptocurrency. This is Matthew Aaron and the CEO of J P Morgan is notorious for bashing blockchain and bitcoin. He was the king of fud in the bull of twenty seventeen in twenty eighteen nobody said more bad things and probably influenced the market more than Jamie diamond. And then J P Morgan comes out with cryptocurrency J P Morgan coin on the blockchain took us all by surprise. But what is it is it the next bitcoin? Is it just the next ripple? Is it me there? Well here today, we're going to go through one a one on GP Morgan coin and figure out what it is what it isn't. And what it's going to be used for and what it could possibly be used for in the future. But before that, please wherever you're listening to this podcast. Make sure you're subscribed. Leave a rating Anna comment, also go over itunes and leaves a rating and comment there. They helps us stay visible. I tunes is wonderful for keeping people visible as long as there's engagement. So help us out. Get engaged and leave us rating, Anna comment on I tunes. Also, if you like this episode, please share it on your social media with your friends, your family and help spread the show. Crypto one on one also can use your support. So if you would like to donate the crypto one on one good or a patient page, you can find our patriots page on crypto one to one podcast dot com. Oath at the support button. Click patriot and donate to the show and help support these podcasts and don't forget this isn't that financial advice. Trading advice person vice or legal advice and thank you to Lincoln for sponsoring this episode. Without further ado, was known about J P Morgan coin, and I wanna say thank you to Helen for editing. This episode was you have to the show. Ben Justo head of growth for Kadena. Welcome to cripple one-to-one, sir. Matthew, thanks. We took tape, sir. Before we get into this conversation today about J P Morgan's coin the rise of institutional cryptocurrency could you please briefly introduce yourself show us. Oh, I head up Greif at today now, which is blockchain company that was founded by the founders GB Morgan's Juna blockchain. We'll talk about later. So we all right organization that's has been going since about twenty sixteen and in my role. I am predominantly focused on a growing up Friday of enterprise clients today. My history that I've been working at mainly consultancies. Helping them understand mcclain's on the stand and how to tackle rather amorphous technologies and concepts such as much technology and blockchain they come predicts elected in the past have included wool street crossing of equity derivatives using the blockchain a large syndicated lending blockchain project, which should be getting. Live this year, which address two trillion dollars of national lending in the marketplace as well as the most strategic projects helping on the planning business case, and then also the execution of and that's what led me to join Kadena where I'm really going to helping on building enterprise poll Friday by taking the business strategy in technology and put them together. Thank you, sir. You said that the genome blockchain was developed by JP Morgan, why would a Bank or J P Morgan develop a blockchain. So if you think about all of these major banks, they do spend a certain percentage of the panel on our indie because they need to look for ways to be more efficient because the context of capital markets is there is an increasing move to criticize Asian within investment banking particular that means that the cost of becoming on the pressure, and in particular, not just cost but the ability to use balance-sheets in a way, which is far more efficient than before. We'll take with a lot of these new rules around basil three Frank cetera. Banks con use that balance sheet in the way, they used to before that full the ability to improve aspects such a settlement means that they can use it balance-sheets better ways, and that full effectively lend the money they have on that books may be tied up through long settlement processes in the fall more efficient way. So Jimmy will suddenly looking at this Roman efficiency play by from operational efficiency blow balance-sheet play as well. And you know, they are looking to continue to be leaders in financial technology, and they have a real history of breaking the mold on on on new products Newton allergies. You mentioned the banks are able to use their balance sheet as before what does that mean? So radio stem back to the financial crisis, the gloss steagle act, for example, and really banks crowds. The financial crisis. Had a an ability to be into southern positions, which may have a higher risk profile. So what I mean by that is they able to hold a little quality assets on take more risks with the money of retail customers, for example through deposits and increasingly as new the full out from the mortgage crisis. The financial crisis leads to review of some of the risk crosses of these large banks and a number of requirements were put on these institutions which limiting factor in will could do with that money. So they had to prove for example, they had sufficient reserves in the case of a second crisis narrow a number of simulations it performed for these these events to determine what stress event would look like, you know, if institutions and individuals pulled them money, do they have enough reserves that are liquid that they can actually use to actually resolve some of these challenges. And that means that you can't be exposed was risky asset liquid positions as he can the post, which means that you have to have a fall better understanding way, your money is a point in time and William money is being tied up in a settlement process. And if you look at for example, syndicated lending where you want it can be tying up full an average of nine days, that's an awful lot of money sitting on the sidelines that Kant be used and also commissary put towards your your the Quincy ratio targets that are being mandated increasingly today that seems like a practice. I wish that some of these cryptic stages head that would be good wouldn't it would it would the history JP Morgan bitcoin slash blockchain is controversial Jimmy diamond has been quoted many times calling bitcoin a scam. It seems as though the whole time bitcoin was starting to jump in ramp up in two thousand seventeen to about twenty thousand maybe not JP Morgan, but Jamie diamond was verbally attacking insulting the criminal space. Why would he do that? If we're gonna was. -veloping on the black chain behind the scenes that is a very good question is certainly makes for a very good headline. But I think this is very much something that's being misconstrued. Because the actual reality is little move Monday than than the story of you know, JP Morgan one side in crypto Annika Stanley other may may provide any kind of put it into context, you have to think about when these statements may J of Jimmy demo these these statements really at the height of crypto mania, you know, when bitcoin was hit saying, I think it was affecting fourteen thousand dollars and had a very large willia- speculative run-up in. If you think about who Jamie Dimon is even his running an organization with in significant amounts of assets on the management. He has really a not just a fiduciary requirements, but also, you know, in terms of running business, he has a responsibility about how he communicates around things. So when you think about it if. You're ask the question of a man that is running a Bank with two point seven three trillion dollars on the management, and he was asked him about a highly speculative asset class that has seen retail investors being brought into the market when one of your largest parts of your business is a high net worth individual organization of private Bank in a wet decisions recommendations being made by bankers daily basis. It's probably the rights prudent in cautionary approach for Jamie. So actually can have reflect about how bitcoin is certainly an asset cloth has some some real developmental problems because it was immaturity. And then at the time, it was purely speculative for many policies in actually was born out to be true in so far is you know, one could argue that were in the reasons that there was a run up on. This was speculation ahead of the launch of the futures on the CBO a so I mean, I think that's the more the reality. I there's a lot of narrative about how you know one. Jamie Dimon has ramped up or suddenly he's been he's he's set barrack speculations on bitcoin. But the same time to be Morgan has been seen to have another bitcoin as well. So the accusation is effectively he's been speaking out of his two sides of his mouth for some kind of prophets related game. To subscribe to that theory. You have to subscribe to the belief that Jamie would be really putting the whole reputation of P Morgan at risk in order to make a quick buck from from profiting in bitcoin, and I think that's November's ever done that. It just it being strange asset costs for him to pick given this as a rounding error on on J P, Morgan PNL mole likely what you have to think about is actually because of a little bit banking rose organizations onto loud to do proprietary trading. The Muth allowed to effectively make trades casino. So it's more likely that a large organization like P Morgan is managing on Hof bits clients, some allocation of bitcoin, probably under a private banking relationship. And it just so happens that there was a cell that was performed on the instruction over climb within the marketplace. I think that's probably a little bit more believable than JP Morgan is out to somehow hijack bitcoin because it's worried about how that's gonna make inroad into its business. You know, I think that's gonna more than a believable story that Jamie has remarked about. Setton situation around bitcoin has been wanting off people dabbling, and then also have to have a position through a client relationship is. Well, I want to touch a little bit of what you said that it's a strange asset class to pick. I don't think it's a strange asset class at all. Because of how it seen by the SEC at the time. It wasn't recognized by the SEC the security. It was still up for debate. And if it was apples bananas or bitcoin. Those all don't follow him as he sees oversight regulations. What does it matter? Then if Jimmy diamond said apples, we're going to the moon or bananas. We're going to get wrecked or bitcoin. So my question is to you. Then if it's not fun under- SEC's oversight, and it's not under the responsibilities of a Bank to act prudently. And Jamie's diamonds opinions and comments did infact move the price of bitcoin, then JP Morgan or Jamie Dimon was found to have either bitcoin personally or invested for their clients. That sounds like price manipulation to me. Is it not? I dunno saying that I wasn't. I think if if you're gonna pull off the scam of a lifetime that you will go up publicly and trying to hijack something that is. So clearly being talked about in guiding attention. I think that'd be quite a foolish move of someone to do with say much to risk in a I think, you know, banks a finding other ruses less public than that on this baby time will tell I mean, it's you could also argue that the run up over the bitcoin price correspondents to the low to futures on the CBO e which is actually went into money could actually shoot bitcoin. So that's not to say that financial institutions are not somehow profiting from main street through using you know, the advantageous positions. They have. I just don't necessarily subscribe to the belief that in J people are going to be running this kind of roller case coaster, really for the purposes of profiting benefiting of this asset class and using Jimmy demon as the mouthpiece to do that. I think that's that's a little bit of a stretch for me just based on mine mine's, dining array, just my two sons Joe, and I want to move from this but to play it off as a rounding error of billions and billions of dollars as Mark cap at the time was reading four hundred billion dollars. It is not a rounding error or a little bit of money. I think the call it a little bit of money just because it's bitcoin not a mainstream currency or store. Value is to downplay how much money was really invested in really involve. In this. But let's move into the contradictory nature of dipping Morgan for a moment. Show. Bitcoin verse blockchain I will entertain that bitcoin does not mean blockchain, and that when they made their stable coin on the black team that does not mean a volatile or speculative asset such as bitcoin, and they want to do something more stable was her comments on that. First of all, I wanna say that this is a great development for the industry and Michigan be absolutely applauded. Look Chaim in any setting is difficult in terms of implementation. And even so within a an innovation Greek within a Bank innovation group, so notoriously stalled the funding attention. So that JP Morgan was able to innovate get something out there and be able to really link it into the overall strategy in operating is no small feat whatsoever. I think it's good for the industry has been a lot of attention that's being attracted based on this announcement. You know, I was recently in a conversation with the head of blockchain of one of the the lodge international. Thanks. You said that that fund has been running off the hook ever since his announcement from senior executives wanting to understand exactly what's going on here. So that's that's that's a sensitive. Good because that means that senior exact saw gonna pay attention and banks and that also helped move on the debates now intends. What J P Morgan is trying to do here. They are trying to do a number of things. And it's something that's reflected not just purely JP Morgan all organizations, and that is how you improve settlements which is a large problem in the market when you look at supplement what we're really talking about is the exchange of a financial instrument for money and the getting the money to the right people in a way, we managing the risk. And that's the a very centralized approach because he needed someone to take the risk of Mon delivering, and that's why we have central settlement policies today. That's why we have. Lodge institutions like JP Morgan. And while you have the DTCC that processes over quadrille dollars of instruments every year. So really what can shaping Morgan is trying to do is solve a number of those challenges around settlement. Because that's in many cases is slow because of all Cain systems and processes, and they're really looking at a number of areas. They're looking at it from the perspective of institutional investors, where they want to have institutional payments made more quickly for example, securities transactions. They're also the king to help organizations with very large treasury services is while and you can imagine that subsidiaries across the world on any to mention that money is being up to minds on the balance sheet funny. They went to work with international payments as well. Whether logical rations have large payments that have moved around the world and all of these processes suddenly aspects of financial services tend to be occasions. Before and slow. So what J P Morgan is looking at is to use this technology to speed up aspects of settlements in. This isn't something that's new for example, the Juno blockchain that was one of us Blockchain's that suggesting Morgan attempted was actually used in a settlement process to move money around between different areas of JP Morgan itself. So we'll be talking about hair is a next iteration of this the settlement in the end of the day is really about updating accounts is about updating are you what the balance held with you. And with me. Now, the challenge with this is that when you're in the realm of digital cash you need to think about who is going to be using that digital cash. A what that really represents? You know, digital cash is fine intended actually need to get your hands on the real money itself. And that's gonna read the lost mile of settlement. Now, the reason that's important is it's one thing to have an account balance digitally updated. It's another thing. To actually have that money in your account. And this is something the number of organizations have been struggling with for a while on the number of initiatives already in motion. For example, utility settlement coin that trying to solve a about eighty to one hundred million dollar problem with settlement. And that's what the moving of at the end of the day money that is H which other in terms of institutions into real money. So that part of the challenges you get with settlement today is that usually the settlement occurs in the day, which means that you did not necessarily know how you owe accounta- policy until rights at the end of the day when you find a cash out, what's mole with very complicated sophisticated investment banks, you may actually be loan to secular clients in one asset class short another asset class, then that could be completely different all over the world, but it could be the same counterparty. So if you think about it from a balance sheet efficiency perspective, you might beholding a hundred million dollars in reserves. Because JP Morgan may be willing to settle with golden because it knows that it does Goldman amount of money. However that just might be a purely product driven, Jill driven view, it might be possible to Goldman actually does a hundred million the different asset class that's being settled in a different country to imagine the efficiency play here. JP Morgan actually knew any point in time. Exactly what the net balance was that means they wouldn't be holding collateral. Reserve to be able to then settle some of those debts that actually beg in out. Anyway. So that's gonna really the opportunity the ability to get a real time view across products on a cross geography against a counterparties with that you can do some significant optimisation as to how you call your money, effectively the treasury management, and because you holding this in a digital way, you can settle not necessarily at the end of the day or under the tea plus tweak cycle. You can do that intraday. Which means that you can any point in time. Not exactly how much you need to settle and then full manage your your balance sheets. So that's gonna bring the opportunity if you're a Bank from about she perspective, then he can multiply some these benefits across the clients JP Morgan has as well because they can settle will quickly for payments. And now a word from our sponsor Lincoln when I find it's time to make a higher for my small business naturally. 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That's Lincoln dot com slash crypto Lincoln dot com slash C, R Y PTO and now back to the show. I think a lot of people in the crypto spaces skeptical of J P Morgan. However, when I was in Denver, a lot of people were happy that JP Morgan came into the blockchain space in they felt that having a big institution such as J P Morgan getting into spaces validation to what they have been working on for so long. But I want to go into something else. You said here shelf, you said real time view, and you said that a lot of transactions are settled with swift at the end the day. Let's go into for minute. A one on one on a couple of systems that are currently used in the mainstream transaction such as swift and are three and also talk about what J P Morgan's blockchain is designed to do. I want to know about J P Morgan blockchain and TPS of their blocking. I want to know about this because button is notoriously slow how can there black chain manage in have real time data as you said, if blockchain technology is inherently slow tech. Now, there's there's a really great questions. So let's take a look at the landscape of. Organizations today both in times of existing technology. That's being present within the infrastructure of today as well as some of the new players looking at blockchain so on the one hand you have off three which is a consortium of one hundred banks that have developed a distributed ledger, which is driven of a blockchain technology, and that was developed in collaboration with financial institutions to to build a rail that would allow these financial institutions to perform blockchain transactions. But in a way that transaction rail was built in collaboration with over needs of the institutions themselves. Another notable posse is swift not stunts with society of worldwide interbank financial telecommunication is founded fully six years ago. An has about eleven thousand financial institutions across two hundred countries and territories today, and they send about fifty million messages per day. This is really the backbone of help. Comments made unsettled across the world today. So all three recently linked up with a swift to to provide a settlement rail which allows actual transaction. Messages to be sent to settle in counts. Let's go really goes to the heart of the the settlement discussion hair, which is is one thing to message between posses the facts that each posse whose each other some full of money is another thing to actually fettle bats in real money within the council, guys Asians themselves. So you'll see a number of announcements whether it's all three whether it's J P Morgan of organizations licking plug in some of the plumbing to physically allow the accounts which have been held by Sydney stations to be updated with actual Fiat currency. And that's the big trend is how you translate the. Digital world of digital cash into the physical one moving into second part of that question. We were talking about the settlements. And we were also talking about keeping up to date panels and checking your balance in real time during the day and since blockchain is slow tag. How can it actually do that in? Also, you had a blog with the title JP Morgan coin, a feat of engineering or marketing. So if we could can we talk about why or how it would be engineering or marketing end does that have to do with anything with transaction speeds or the inherent qualities of this blockchain, Greg rice gin? So as we think about swift, for example, as we said, this is known as I should not processes fifteen million messages day now some of the fosters Blockchain's, which contain a claims to have the faucets. One can process about eight thousand transactions a second. So you you're still going to struggle around. You know, they could demand that swift has at the moment. And I think it was worth bearing in mind is that both chains have a very specific part to play in the ecosystem today is not necessarily full fully high-volume transactions. But it certainly plays a role in demonstrating to a range of participants exactly the balances any point in time, the consolidated balances across many organizations, so while we may not be able to get a pu- second view of balances. You can at least batch off a lotta this into a snapshot at a given point in time. There's a snapshot is former real time than end of the day. So there's always a balance with blockchain of using it for what best at which is a ledger of all transactions with full history. Full full divinity across all parties will parties can see. So with it. Is it engineering or marketing because like you just said with some of the fastest Blockchain's? They still can't keep up with swift. And like you said earlier SWIFT's use case is different than J P Morgan's intended use case and still it needs to be closed at the day with faster throughput. So is this just marketing or do they really have a solution for institutional users? So let's talk a little bit about. Well, the J P Morgan coin is that it's two paces. The first one is settlement the second one is a stable coin. And I think on the first point there is absent value and utility in the coin insofar as we know that settlement is a very important piece of the jigsaw to resolve and quorums technology as it's been set out. He will do that. The second point which is around the stable coin. You know, I think can be misconstrued. Exactly what the stable coin is if thinks about stable coin from the traditional sense, I'm show. Some of your colleagues Eastender of being customers in stable coin is crooked currency at anyone can vile, Sal, and it will maintain its value. So for every one dollar of USD stable coin, I can redeem not for one dollar certain so far as any of JP Mogens clients when deposited money received cleans ton are able to go back to J P Morgan and redeem a coin for a dollar. That's not really clear that they sense of how stable coins have been talked about in the wider area of the of the market and the way that I like to to explain this a little bit like you go into a casino. We change your dollars for chips. And then you can you can use those chips interchangeably on any. Of the tables, blackjack, roulette, etc. The stable coin is the piece says whatever you haven't chips at the end of the day. You could tell his back into real dollars the same amount as you have chips. And as we've seen in crypto the moment. Crypto is notoriously volatile which means that it's unlikely that will happen unless you have a stable coin and volatility is just not appropriate full institutional clients because they need to have some custom built into hedge that market risk around on the exchange risk. So that was the intention of stable coins is to provide that stability now, what J P Morgan is effectively done hair as they have indeed provided a mechanism where you can turn your real money into digital cash. A coin if you will and then peg that. So there's always that leaned that if you get to JP Morgan, you can always redeem that, but the problem is because this is a enterprise technology. It's permission technology. You can only do this with J P Morgan and only within the full of J P Morgan if your client. So you have to have an account with J P Morgan you have to have a quorum blockchain compatibility, and then you have to have that business relationship with J P Morgan as well and deposit at money in the first place to get coins. Instead. So I think that's going to some the limitations that you have now. Whereas I think, you know, the purest around stable coins with say that the point is the state will coin is that this is generally accepted by all parties. Redeemable what will pot is any point in time. So effectively really what we're talking about hair is an API or an API is a digital service that you can cool programmatic Lii, and it will perform a business transaction as part of cooling it. So really gonna vote. We're talking about here is API cool, not necessarily a currency in the true sense of the world, and I didn't that necessarily diminish his what JV Mogens done a tool. You gotta start somewhere a wine stop by affecting change with your clients with your PIN, L, and your technology. But in. Terms of a stable coin. I think it's not entirely, correct. To talk about it in the same guys. We would do with other stable coins such as the work that has done and Jiminez done around that stable coins. What are the threats the ripple extra p because isn't this? What ripple coin was supposed to be doing? It was interesting to see from a market perspective. Whether this coin would affect the price of exile pay which is an affiliation of ripple token that season the network and surprisingly there wasn't much from debate mock market, this note, significant change in price, and I think that's because you know, the they're preaching problems from two different ends. If what ripple is trying to do is to create a network that any organization conjoined and affectively transact by providing a an exchange profile between two currencies and the ability to route to it. Which if Morgan is really doing is to say, if you Bank with us, and you have account with us at business relationship, you're able to deposit money with us, and we will represented as a digital token that you can use with us, and then increasingly within network of other organizations of Bank with us. So there's a two different sides of the coin if you will the trying to get to that simmer can place, but the JP Morgan is very much taking from perspective of bay all the product in which is that banking relationships and the accounts, whereas replid saying the product is the network anyone can join that's agnostic to you know, one Bank in particular. Now is a big question as to how this will play out over time. Because there the swift is being around for longtime survived many different challenges in particular recent hacks, but because have to so embedded engrained in the. Oh system, and it does work will be at being slow and clunky. I think it's be very difficult to pull them out because there's a lodge risk in hoping from incompetent -nology. There are some recourse challenges around technology such as replicas. Well, you know, I would say that you money could be lost in the mail. But there are certainly some some some questions about what happens in on the sentence second stances as as transaction flows through. So I think you know, we're still very early on in the whole development of the ecosystem, which is why I think you've seen a negative reaction from from Whipple. At the moment. Okay. So, but why now because we are each headed already JP Morgan was not friendly to blockchain in two thousand seventeen two thousand eighteen so why release the technol- into dozen nineteen in that twenty twenty or twenty twenty one not a good question. You know, there's very much hot of that. Right. Matt. It just say happens that as the technology has matured the question now is less about the base time all g the pipes. If you will. It's now about taking what's being built nearly these blockchain platforms getting adoption, and then connecting it into the existing infrastructure. So I think that's why it's just the right time because that base layer is now which level of maturity, adoption, just my two cents. Again. I am always under the belief that bitcoin coin ethereal stable coins, such as die are not going to be the driving force to cryptocurrency integration. That's gonna be institutions like maybe P Morgan or Facebook. That's going to lead the charge by putting cripple currency or some sort of way to transact monetary value or value across their ecosystems by putting some sort of coin on black teens or work within their ecosystems allowing for faster message opposite and then bitcoin ethereal like when die will hop on board, and you'll be able to atomic swap between the institutional coins and these other crypto currencies. Do you think J P Morgan coin will have BTC or L C or extra integration? And do you think that JP coin ever go public for consumer use as an interesting question? I mean, this this there's always been a little bit of a standoff between this commissioned blockchain. Well, this this will garden if you will and the public network United clearly you have bitcoin maximum he believe that in a part of mission network has no more than a database. I'm believe that really the the troop off of digital currencies can only be in public. With you see the nominee and full access to everybody. I think in the reality of what was saying. I agree with you. Matthew is is it starts off with institutions saying we're gonna make it easier for our clients to do business with us because in the end it has to start with a very specific business case. Now, we're gonna save money or reducing sentiment time, we're going to consolidate all your positions. So you have trade, compression, and but about she management not begun to optimize your treasury management capabilities. Things of that nature. We is gonna come fuss. Because that's where the money is. That's where the pain is with the institutional investors of Mogo now from that that want to expand that wants to have some kind of interoperability with other organizations within the ecosystem most likely adjacent to J Mogens current interests. So think oh seek will buy side more exchange providers, then eventually. That is going to have to reach out in an incorporate additional aspects now as to kind of when it will go fully public in. I think is anyone's guess probably what you'll see is as it could be more of a secondary Malkin aspect where you're gonna find that the organizations that are providing a path of J P M coin again, if they're in for example, rather than JP Morgan saying, you know, we're now going to provide, you know, this this this past, you know, an supported trading so nothing it'll always gonna be on the on the adjacency of J P Morgan's existing business whether really focusing on making it easier to do business between the clients themselves. Do you think there ever be smart contract integration with J P? Morgan coin. I wouldn't rule it out. I mean, if you look at that frequently off questions as a question as Feddie similar, which is is is mentioned on this topic and their responses, effectively, you know, this is something that could be considered later. So I think it's not outside the realms of possibility it, I think if you look at where the direction of blockchain is going, it is clearly getting into this hybrid model on what I mean by that is that there is a public element and a private backoffice elements of emission elements, and that really the tree utility blockchain is the ability to marry the two components together. So I think it's it's an inevitability that is hybrid technology platform is what will get to not gonna wind contain has both a private technology in chimney to to launch public. China's well is that we do believe that you do need to have that crossover because there's a lot of value that you get from providing the full utility to everyone in the world, but then also protections the institutional organizations require from permission chain as well signals question. The day's gonna be more of a general question before asked that I want to say thank you for giving us a one on one on G P M coin JP coin. JP Morgan coin whatever is going to be called. And I feel that JP Morgan coming into the space right on a building on black is what we needed at this moment. We needed a confidence boost we needed the builders to see that what they're doing isn't always wasn't always in vain. And I didn't the space needed this during the bear market has this is the push to that's gonna keep us moving forward to say. Hey, what we're doing is important because look if JP Morgan is going to build on it. We have it right here. We are doing important work. But my question is what do you think of the crypto space at the moment? Are you bullish Sunday? I think a lot of the folks in in space looking at winds from the mex- recent run up, and then the rundown of prices and valuations, but I think overall we're actually in a better place in of another people would necessarily can give credit full in a clearly we're seeing a move towards the classification of toy. John's against rid of a lot of gray that we've seen before in terms of things like you. Tennessee titans. You know, we're saying imagine. So this security asset class of a beginning to see a major players starting to really end to this in a deliberate considered way and the SEC providing fall, clear guidance around the treatment of Sutton asset classes in within the digital space. Now Clinton ran a cash constrained environment as well. So I loaded the projects the may have funding before certainly will struggle in terms of end next round was gonna why looking at Oganization have enterprise use cases because that's the really difficult parts of this whole piece says how do you make a statement this clear to enterprise, which is around minimizing risk. Optimizing about sheets making aegypti business with them and improving. The ability to to settle and I think he can count in your hands the amount of blockchain companies that are solving this with real world use cases today. So that that's how I'd I'd categorize days really was seeing a movement towards quality stratification. So I'm a bull because I believe we have many of those components ready in place that thank you very much for that. Don't wanna want his position to be one of the first stops for people on their journey into the crypto space hints named crypto one to one. If somebody was listening to this episode in this was their first episode. There are listening to on their journey into space. What would you want them to know, sir? So certainly the way that I became educated in space was to voraciously read everything I could in this space a little times it stems from real idle curiosity reading from one article that takes to another takes to another. So in this can be from following a on on Twitter, you know, encourage the private enterprise blockchain side of things as well as on, medium polices. Well, and also attending may tops the information is certainly out there and there's a little discourse as well. So as part of this, you're gonna form an opinion, bitcoin maximalist, you're gonna be at missions blockchain maximalist another. It's going depend on where you know, you started life in in your career. You know, we're on the technology side in mill. So I think courage just ready to to use the resources that exist in the moment. Whether physical the jewel and make you curiosity take you down on and fully weather information is tonight benches will head growth at Kadena. Thank you very much for coming on crypto one one, sir. Thank you very much. The reach of it. Thank you very much for listening to this episode with Ben I want to say, thank you very much for coming on. And giving us a one JP Morgan coin in our next episode of crypto wanna win. I want to ask the question. Very simple question. Why should we continue to trust smaller exchanges or startup exchanges? When it seems. As though every smaller exchange loses funds eventually through the hacks poor upset internal disruptions for death. So I sat down with the founders of two smaller exchanges. Mike crypto wallet out of all strata and Agora trade a non-custodial decentralized exchange, and I asked them basic questions one how you work, and how do you plan to create confidence? So people use your platform, though, the two very interesting conversations, and I can't wait to share those with you. So look forward to the next episode of crypto at one end before we go like always checkout apogee crypto, that's a P O G E crypto dot com. The best place for your real time. Prices. That's the place. I use the check my bags your bitcoin. Light coin does coin ripple or. Whatever else you're holding. It's a place to check your praises in so much more. And thank you again for listening, and we'll see you in future episodes of crypto one who one.

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