Podcast Summary
The cycle of wealth accumulation and desire for more: Wealth accumulation can lead to a never-ending cycle of seeking new ways to acquire and spend, potentially leading to an endless deficit in wealth.
Wealth accumulation and the desire for more can lead individuals to continually seek new ways to acquire and spend, creating a cycle that can be hard to break. For example, one might enjoy the luxuries of private travel, high-end accommodations, and fine dining, but may still desire to buy a skyscraper or a large company, leading to a new deficit in wealth. This is a common theme among those who enjoy the "game" of wealth creation. In this conversation, the topic shifted to the speaker's current focus on clarifying the mission of Acquisition.com and the upcoming release of his leads book. He also shared that his media business currently loses money but generates around $1.1 million in profit annually, and that he enjoys the recognition that comes with his public persona but also deals with the cons, such as dealing with unwanted attention.
In-person marketing offers unique benefits despite potential negatives: Marketers can leverage in-person events for access to top talent and proprietary deal flow, while staying informed on marketing trends through reports like HubSpot's 'State of Marketing'.
While the digital world offers incredible opportunities for marketing trends and engagement, the in-person experience continues to provide unique benefits, such as access to top talent and proprietary deal flow. However, the downside includes increased recognition and potential negative attention. HubSpot's "State of Marketing" report offers valuable insights into the most effective marketing trends, helping businesses stay competitive. Ultimately, the pros of in-person interactions and staying informed on marketing trends outweigh the cons for some individuals and companies.
Unexpected paths to success: Becoming exceptional in any area can lead to unexpected rewards. Identify opportunities and seize them to achieve success.
Success can come from unexpected places. The speaker shares stories of interacting with idols and celebrities, some of whom reached out to him, and the surreal experience of it all. He emphasizes the importance of becoming so good at something that you can't be ignored, regardless of what that thing is. The speaker also reflects on his own experiences, from building businesses and selling them to starting a new venture in acquisitions. He shares how he's made successful investments by being good at identifying opportunities and seizing them, and how this approach has led him to new heights. Ultimately, the message is that success isn't limited to traditional paths and that being exceptional in any area can lead to unexpected rewards.
Seizing opportunities during challenging times: Build trust, foster meaningful connections, and be open to new opportunities to expand your business during tough times.
During challenging times, like the COVID-19 pandemic, entrepreneurs can seize opportunities to expand their business by building trust and fostering meaningful connections. The speaker shares an example of how he took advantage of a chance encounter with a photography studio owner, who had read his book and admired his business strategies. They struck a deal, and the photography business grew significantly, leading to the acquisition of multiple locations and the expansion of their partnership. However, the speaker chose not to publicly disclose all of their acquisitions due to the potential impact on his personal brand and the size of the deals. Instead, he focuses on building trust and delivering value to his audience, which has contributed to the growth of his business. This story highlights the importance of being open to new opportunities, building strong relationships, and maintaining a strong personal brand.
Building value in minority investments: Patience and effective communication are key in building value in minority investments, where the investor uses soft influence and deals with half-listened advice to make the business sellable.
Building value in businesses with a minority investment involves using soft influence and dealing with the challenge of half-listened advice. The investor, Hermozi, shared that he uses his face to bring deals in but the goal is to build value in the business to make it sellable. He mentioned that the most difficult part is dealing with half-listened advice, which can hinder progress. Hermozi also mentioned that he enjoys having complete control of a business more, as the speed to action is faster. The investment cycle for deals is lengthy, taking 90 days to 6 months to close and possibly a year to see preliminary results. Despite this, Hermozi feels that they are still in the infancy of deal structures and that there are deals where they put money in and deals where they don't. Overall, the process of building value in minority investments requires patience and effective communication.
Business investment strategies: Growth over distribution of funds: Investment strategies vary based on business needs, with a focus on long-term growth and compounding returns, rather than distributing funds widely.
The use of funds in business investments depends on the specific business requirements. For instance, opening a brick-and-mortar chain requires significant capital, while a national service business may only need recruiting expenses. The goal is to grow the business, not just distribute funds. Regarding deal structure, it has evolved from a grand slam offer to a more straightforward equity holding approach. The inspiration for this shift came from the realization that the potential for growth lies in larger markets, as opposed to better systems, marketing, sales, or products. The investment strategy can be described as a merger of a family office and a conglomerate, with a long-term holding approach and a focus on compounding growth.
Finding and recruiting top talent for long-term growth: Recruiting the right people for specific roles leads to long-term business success. Focus on building a strong team and business for the long term, rather than solely selling for financial gains.
Building a successful business involves finding and recruiting top talent. The value of this talent stays within the business, leading to long-term growth. This process requires significant effort and resources, but the long-term benefits are worth it. The speakers emphasized the importance of finding the right people for specific roles at each stage of a company's growth. They also shared their experience of taking a majority stake in a business by recruiting an entire executive team, which led to a friendly sale. The idea that "rich people sell their companies, but wealthy people never sell" highlights the importance of focusing on building a strong team and business for the long term. While selling a business can provide financial gains, the speakers suggested that the ability to continue growing and developing a business is a valuable asset.
Selling a business for less than its potential value: Understanding when to let go and trusting instincts for growth can lead to new opportunities and better decisions
Sometimes letting go of something, even if it seems successful, can create space for new opportunities and growth. The speaker in this conversation shared his experience of selling a business for less than its potential value because he was emotionally done with it and wanted to move on to something new. He acknowledged that the sale wasn't a source of pride for him, but he saw it as a necessary step in his journey. He also learned that understanding financial complexities, such as debt and leverage, can lead to better decisions in the future. The speaker emphasized the importance of trusting one's instincts and making space for change when needed, even if it means leaving behind what seems good for something potentially even better.
Understanding business tactics and strategy is key to success: Deep knowledge of tactics and strategy, including finance options and the value of finance professionals, can lead to successful business growth and effective navigation of transactions.
Understanding both the tactics and strategy of business is crucial for success. The speaker shares his past experience of selling a company and regretting not knowing enough about financial options like asset sales and debt refinancing. He also mentions how he used to underestimate the importance of finance professionals, but later realized their value in understanding the strategic side of business. The speaker emphasizes that growing a business organically and strategically, through tactics and debt financing, can lead to significant returns. He also highlights that the acquisition of multiple businesses by private equity firms is a common practice, and it's important to be aware of these strategies to navigate business transactions effectively. In essence, having a deep understanding of both the tactical and strategic aspects of business can lead to better decision-making and ultimately, success.
Finding Joy in the Process of Wealth Creation: The speaker derives pleasure from the wealth creation process itself and creating a deficit keeps the game interesting, while having a clear mission for a company is essential for success
Wealth and personal satisfaction are interconnected, and the desire to continue growing wealth is often driven by the enjoyment of the process rather than the end goal itself. The speaker, who considers himself comfortably rich, finds joy in the game of acquiring more wealth and businesses, even if he doesn't necessarily need the money for personal comforts. He also mentioned that creating a deficit, whether financial or related to personal goals, keeps the game interesting and motivates him to continue playing. Additionally, the speaker discussed the importance of having a clear mission for a company, and how they shifted the focus of Acquisition.com from making business knowledge accessible to everyone to building a company based on praise rather than punishment.
Creating a Positive Work Environment: Praising and supporting employees leads to better performance and satisfaction, contrasting toxic work cultures that rely on punishment. Dedicated leaders aim to prove this through their companies, inspired by successful figures and their ambitious missions.
Creating a positive work environment through praise and support can lead to better performance and employee satisfaction, as opposed to relying on punishment. The speakers, who have experienced both toxic and positive work cultures, believe that the latter approach is not only more effective but also essential for building successful companies. They plan to dedicate their lives to proving this through their company, Acquisition dotcom. The speakers draw inspiration from their past experiences, including their mission to improve the gym industry, and they admire figures like Elon Musk who have successfully articulated and executed on ambitious missions. They argue that the narrative we tell ourselves about work can significantly impact our motivation and the success of our endeavors.
Entrepreneurs' initial motivations may not align with mission statements: Entrepreneurs often start businesses for personal reasons like pleasure, pain avoidance, and status. Mission statements may evolve over time to reflect growth and changing priorities.
The initial driving force behind starting a business may not always align with the publicized mission statement. The speaker shares his personal perspective, which is skeptical of mission statements and believes that entrepreneurs often have more primal motivations such as seeking pleasure, avoiding pain, and desiring status. He uses examples from Snapchat and Uber to illustrate how their early goals were more about creating value and satisfying personal desires, but later evolved into more noble-sounding mission statements. The speaker acknowledges that the truth can change over time, and as individuals or businesses grow and evolve, their missions may need to adapt as well. Ultimately, the speaker encourages embracing the truth, understanding human nature, and recognizing that it's okay to have more self-serving motivations when starting a business.
Creating a Positive Work Culture is Key to Business Success: Starting a business based on personal passion is important, but shifting focus towards a positive work culture benefits both the bottom line and employees. Inspiring examples include Panda Express and Coke Industries.
Starting a business based on personal passion is important, but as the business grows, the focus should shift towards creating a positive work culture that benefits both the bottom line and the employees. The speaker's passion for business led him to start Acquisition.com, but he later realized that the success of the business was due to the strong company culture. He now sees the bigger picture and is inspired by businesses that prioritize empowering their employees and creating jobs, even if they are not tech or Silicon Valley companies. The speaker admires entrepreneurs like the Panda Express founder, who elevates hourly wage workers, and companies like Coke Industries, which prioritize freedom and autonomy for their employees. The speaker believes that finding a new goal for the business, one that benefits both the business and society, can be a powerful motivator.
Finding Inspiration from Successful Individuals: Successful people draw inspiration from various sources like business acumen, long-term vision, visionary leadership, and personal branding. Staying true to one's values and doing things uniquely can lead to success.
Successful people draw inspiration from various sources, whether it be individuals who have built successful businesses, investors with a long-term vision, or innovative visionaries. The speakers in this discussion admire individuals like Andrew Patron from Panda Express for their business acumen and employee focus, Warren Buffett for their long-term investment strategies, Elon Musk for their visionary leadership, and even YouTubers like Mr. Beast for their personal branding. By looking to these figures and learning from their successes and unique approaches, individuals can gain valuable insights and motivation to build their own businesses and achieve their goals. Additionally, the importance of staying true to one's values and doing things one's own way, even when competing with others, was emphasized as a key to success.
Consistency and Discipline in Fitness and Business: Applying fitness principles of consistency and discipline to business can lead to success, while rewarding good behavior in relationships strengthens bonds.
Simple concepts, whether in fitness, nutrition, marriage, or business, can be hard to implement despite their apparent ease. Alex shares how he applies the idea of consistency and discipline in fitness to business, and the importance of rewarding good behavior rather than punishing in relationships. The speaker also mentions the concept of "simple not easy" and the different relationship styles, with unconditional love being the most beneficial but also the hardest to practice. Through these various topics, the conversation highlights the importance of persistence, understanding, and giving in different aspects of life.
Unconditional love and personal branding: Unconditional love and personal branding can stem from consistent actions, obsessive improvement, and embracing unique aspects of oneself.
Love comes in various forms, and the highest form is the unconditional love of a monk towards their enemies. This spiritual love is an aspiration for individuals to love and forgive those who cause harm. Regarding personal branding, it can result from consistent actions and obsessive improvement, rather than a conscious decision. For instance, Patrik's "Darwinian" persona and his never-skipping dessert mantra stemmed from his content team's suggestion and his own personal habits. The key is to embrace these aspects of oneself and refine them to create a unique and authentic brand. Additionally, Patrik's obsession with finding the perfect outfit and shoe stems from his desire to optimize his environment and minimize decision-making, ultimately resulting in a uniform that suits his lifestyle and comfort.
Finding joy in deliberate choices: Individual values intentionality and experimentation to enhance daily life experiences, seeking optimal fit in wardrobe and personal comfort
This individual values deliberate choices in his daily life, especially when it comes to his wardrobe and personal comfort. He enjoys experimenting with different products and brands to find the best fit for his needs, whether it's a flannel shirt, gym bag, or pair of shorts. This meticulous approach brings him joy and a sense of satisfaction, as he believes that small details can significantly enhance one's experience. The concept of finding what works best within a specific range, like his flannel's ideal temperature, is a recurring theme. This mindset encourages him to be intentional and not settle for anything less than optimal, even in seemingly mundane aspects of life.
Finding the right gear and organization system: Investing in cargo pockets and a functional backpack can improve productivity and convenience in daily life. Consider personal needs and affordability when choosing tools and systems.
Having the right gear and organization system can significantly enhance one's productivity and convenience in various aspects of life. The speaker shared his preference for cargo pockets in his shorts and a specific backpack for traveling, which allows him to carry essentials such as mic packs, water bottles, and personal items. He emphasized the importance of having a system that caters to one's needs and makes the packing process more manageable. The conversation also touched upon the topic of personal spending and the speaker mentioned his investment in semi-private flying through JSX as a way to save time and enjoy the benefits of private flying at an affordable price. Overall, the discussion highlighted the importance of finding the right tools and systems to streamline one's life and make the most of their resources.
Traveling privately for short trips saves time, interviewee's investment portfolio and recent real estate purchases discussed: The interviewee values efficiency for short trips via private flying, maintains a diversified investment portfolio, and recently bought a house and office space.
For short trips, flying private can significantly reduce travel time, while for longer trips, the time saved is minimal. Regarding their financial situation, the interviewee mentioned that they still hold about half of their portfolio in treasuries, a quarter in indexes, and the other quarter in private companies. They also mentioned that they recently bought a house and are in the process of setting up an office in it. The interviewee also shared a funny anecdote about how they have kept the same background in their videos as a way to signify significant life changes. Despite their success, they expressed a preference for keeping a low profile and not trying to hide their identity. The interviewee's work ethic was also emphasized, as they mentioned that they enjoy working and are not bothered by people asking why they work all the time. Overall, the conversation touched on various topics including travel, investments, and personal preferences.
Expressing gratitude and appreciation: Expressing gratitude and appreciation can build strong relationships and create positive experiences.
Importance of appreciation and gratitude. The speaker expressed his gratitude towards the hosts and the audience for having him on the podcast and for their positive reception. He emphasized the significance of being appreciated and acknowledged, and how it means a lot to him. The speaker's words serve as a reminder that expressing gratitude and appreciation can go a long way in building strong relationships and creating positive experiences. Additionally, the speaker's positive attitude and enthusiasm were contagious, making for an enjoyable and engaging conversation. Overall, this discussion highlights the importance of expressing gratitude and appreciation in our interactions with others.
