Short summary:
How To Control Your Mindset:
Controlling your mindset is crucial for personal growth, success, and overall well-being. Your mindset determines how you perceive and respond to situations, challenges, and opportunities. Here are some key steps to help you gain control over your mindset: 
Awareness: Start by becoming aware of your current mindset. Notice your thoughts, beliefs, and attitudes towards different aspects of life. Recognize any negative or limiting patterns that might be holding you back.
Positive Affirmations: Use positive affirmations to reprogram your mindset. Repeat empowering statements about yourself, your goals, and your capabilities. Replace negative self-talk with positive and encouraging thoughts.
Gratitude and Positivity: Cultivate gratitude and focus on the positive aspects of your life. Practice gratitude daily and train your mind to see the good in every situation. This shift in perspective can transform your mindset from one of scarcity to abundance.
Goal Setting: Set clear and meaningful goals that align with your values and aspirations. Break them down into smaller, achievable steps. When you have a sense of purpose, it becomes easier to maintain a positive mindset and overcome obstacles.
Self-Reflection and Growth: Regularly reflect on your thoughts, emotions, and actions. Identify areas for improvement and embrace personal growth. Seek feedback, learn from setbacks, and adapt your mindset accordingly.
How Elon Musk Solves Problems:
Elon Musk, the visionary entrepreneur behind companies like Tesla and SpaceX, is known for his innovative problem-solving approach. Here are some key strategies he employs:
First Principles Thinking: Musk employs a first principles approach, which involves breaking down complex problems into fundamental truths and building solutions from scratch. Instead of relying on existing solutions, he questions assumptions and seeks fundamental understanding.
Diverse Perspectives: Musk values diverse perspectives and encourages interdisciplinary collaboration. He brings together experts from different fields to gain insights and approaches problems from multiple angles. This interdisciplinary approach enables him to find creative and effective solutions.
Boldness and Risk-Taking: Musk is not afraid to take bold risks and push boundaries. He embraces failure as a learning opportunity and encourages his teams to think big. This mindset allows him to tackle ambitious projects and achieve groundbreaking results.
Rapid Iteration and Feedback: Musk believes in rapid iteration and quick feedback loops. He encourages a culture of experimentation and learning from failures. By iterating and refining ideas quickly, he accelerates the problem-solving process and increases the chances of success.
Long-Term Vision: Musk maintains a long-term vision and is driven by a desire to solve significant global problems. He prioritizes the greater good over short-term gains and aims to create sustainable solutions that have a positive impact on humanity.
By incorporating these problem-solving strategies into his approach, Elon Musk has demonstrated remarkable success in revolutionizing industries and pushing the boundaries of innovation.
Long summary:
In our journey towards personal growth, success, and fulfillment, one of the most powerful tools at our disposal is the ability to control our mindset. Our mindset shapes how we perceive and respond to the world around us, and it can either propel us towards greatness or hold us back. In this blog post, we will explore effective techniques for controlling your mindset and delve into the problem-solving approach of visionary entrepreneur Elon Musk.
Part 1: How To Control Your Mindset
Awareness: The first step towards controlling your mindset is developing self-awareness. Take the time to observe your thoughts, beliefs, and attitudes. Identify any negative or limiting patterns that may be hindering your progress.
Positive Affirmations: Harness the power of positive affirmations to reprogram your mindset. Replace self-doubt and negative self-talk with empowering statements about yourself, your goals, and your abilities. By consistently reinforcing positive beliefs, you can transform your mindset and boost self-confidence.
Gratitude and Positivity: Cultivating gratitude and focusing on the positive aspects of your life can profoundly impact your mindset. Practice gratitude daily and train your mind to seek the good in every situation. This shift in perspective from scarcity to abundance fosters resilience and optimism.
Goal Setting: Set clear and meaningful goals aligned with your values and aspirations. Break them down into smaller, achievable steps. Having a sense of purpose fuels motivation, making it easier to maintain a positive mindset and overcome obstacles.
Self-Reflection and Growth: Regularly reflect on your thoughts, emotions, and actions. Identify areas for improvement and embrace personal growth. Seek feedback, learn from setbacks, and adapt your mindset accordingly. Continual self-reflection fosters a growth mindset and enables you to navigate challenges with resilience.
Part 2: How Elon Musk Solves Problems
Elon Musk, a renowned visionary and entrepreneur, is known for his revolutionary ideas and problem-solving prowess. Let’s explore some key strategies he employs:
First Principles Thinking: Musk embraces a first principles approach, which involves breaking down complex problems into fundamental truths and building solutions from scratch. By challenging assumptions and seeking fundamental understanding, he revolutionizes industries.
Diverse Perspectives: Musk recognizes the value of diverse perspectives and encourages interdisciplinary collaboration. He brings together experts from various fields to gain insights and approaches problems from multiple angles. This diversity of thought leads to innovative solutions.
Boldness and Risk-Taking: Musk’s fearlessness in taking bold risks and pushing boundaries sets him apart. He views failure as a valuable learning opportunity and encourages his teams to think big. This mindset allows him to tackle audacious projects and achieve groundbreaking results.
Rapid Iteration and Feedback: Musk believes in rapid iteration and quick feedback loops. He fosters a culture of experimentation, learning from failures, and refining ideas swiftly. By embracing this iterative approach, he accelerates the problem-solving process and increases the likelihood of success.
Long-Term Vision: Musk maintains a long-term vision and prioritizes solving significant global problems. He is driven by a desire to make a positive impact on humanity. By aligning his goals with the greater good, he finds purpose and motivation to overcome obstacles.
Conclusion:
Mastering your mindset is a transformative journey that can unlock your true potential. By implementing the strategies discussed in this blog post, you can gain control over your mindset, cultivate positivity, and overcome challenges with resilience. Similarly, by adopting Elon Musk’s problem-solving approach of first principles thinking, embracing diversity, taking risks, iterating rapidly, and maintaining a long-term vision, you can foster innovation and drive meaningful change. Embrace the power of mindset control and problem-solving, and unleash your potential to. Want to learn the secrets to becoming a highly paid coach or consultant? Check out at Focused.com and also check out our podcast on Spotify today!
Transcription:
Intro 00:02
Welcome to Business Coaching secrets with Karl Bryan. If you want to attract new high-end coaching clients, fill live events and build a wildly profitable coaching practice where business owners pay, stay, and refer? You come to the right place! In this podcast, Karl provides his keys to the kingdom for finding and signing high paying clients and building the coaching business of your dreams. Here we go!
Karl Bryan 00:37
Hey, hey, hope everybody’s doing good. Karl Bryan coming atcha, fans, RodeDog, RodeDog’s away with his family so we gave him a pass today. And I told him I’d, I’d take it from here. So he sent me in some questions. And I’m just gonna riff. So just me and you here today! I’m going to start with ah, so last week, we were talking like internal, you know, big brain versus little brain? So the answer to the question, how do you help someone control? You know, I’m not, you know, you’re good enough, I’m not good enough, like that kind of frame. So I just want to expand on that if I could? So look, I answered it this way. It’s your monkey-brain. There are two parts of your brain that was big you and little you, hopefully you remember, if not encourage you to go back and maybe listen, had some positive feedback. But the question is, if you have big you versus little you as in Jekyll versus Hyde, at any given moment, my question is who’s winning? Who’s winning. And as a frame, little brain wants to argue about nothing. Big brain wants to change the world, right. So it’s just like your pre-frontal cortex sparring with your amygdala. Thinking, like, think of it as…. so we all have, you know, Jekyll and Hyde, and again, it’s Jeff Bezos, he retired at 57 with a cool, you know, 200 billion or 197 billion, I think, to be exact. I believe, I don’t know that. But anyways, he’s if, if he’s got it beaten him up, I want you to be forgiving of yourself. If you’re doing that high achievers tend to do it. But remember, you like your new one of the things I also said your new life is going to cost you your old one. That’s a tough realization for a lot of people. And by the way, I think that’s some popular quote that’s out there. I’ve got no idea who said it. But again, your new life is going to cost you your old one, not to mention.
So again, are you spending time controlling you know, your emotions, are you controlling that little brain that’s trying to dominate, and not allowing you to tap into your intelligence? So, so anyway, so that’s what I kind of said last week. So therefore, I kind of want to just close the loop like more solution based is that, you know, if you’re, it’s not your fear of failure, that’s going to stop you. It’s your fear of other people watching you fail, that will stop you, right? So there’s that, maybe solution in plain English, you must not let your need to be right, overpower your need to find what’s really true in this situation. So again, you know, don’t let being right overpower, understanding, and getting to the realization of what’s true in any given situation, right? So, so what is really true in the situation that you might be dealing with what’s really true in the situation that your client is dealing with, right? You got to slow down and search for that. And I gotta tell you, that life will be a million times easier, you know, stop and think, stop and think, stop and think and, by the way, bonus point for life is a mirror, so as you start to use big brain more, and allow it to overpower that little emotional brain, those around you wives, husbands, clients, staff, kids, etc., guess what they do? They start to do the same, because life is a mirror. So never forget that your life is a mirror of what you’re putting out there.
So we all know that guy or gal that’s just a constant. They’re just constantly challenges constantly, you know, constant issues. Like if that’s the case, like basically, they’re the gasoline and you go in and they’re really good person is what you say to yourself. They are but they’re just letting little brain dominate. Right? So like that overpowering I want to be right, the bottom line, what I’m trying to get at here is the biggest hater you need to overcome is probably named you, and it’s not, it’s not you. It’s a little emotional and irrational you. That’s the person we need to dominate. That’s the person we need to start to learn to control. That does a lot of damage and haters will come, by the way, you know, you’re going to take market share, you’re going to take sales, you’re going to start hearing the names of… your competitors are going to start hearing the names of you, right? And like, what are you going to do? You know, what do you do when you hear the names of your competitors? Do you start like what people do when they’re trying to sell they start trash talking the competition. Like is that a good idea, and the credibility that you lose is massive when you do that, so no, that’s a little brain stuff, like you’ve got a seminar, and then they’ve got a seminar, you start taking people away from them, and they’re coming to your seminar, or they start taking people away from you. you know, these types of things, you get a unit deal with this in a very rational way. Kind of like, okay, you want to be concentrating on becoming the number one business coach in the city, in the state in the country? That’s higher level, bigger brain thinking, as opposed to oh, no, this one individual didn’t show up or went with this coach over me. You know, so that’s, remember, little brain wants to argue about little nothings, big brain wants to change the world, right? I said, I do like these random posts on like, random thoughts on Facebook, every once in a while, send that out to my email list as well. But like, everybody wants to change the world, but nobody wants to change the toilet paper. Right? So we all know that person. And, and by the way, speaking of that person, a super ambitious, lazy person that doesn’t follow through, can be dangerous, that might be a little bit of a dramatic word, calling them dangerous. But I gotta tell you, somebody that’s ambitious and lazy.
A lot of the time frankly, those people will fall into the quote unquote, influencer category, you know, when you’re flowing through Facebook, and it’s the Lambo with the doors up and the perfectly framed photos in front of a house, or sorry, in front of a plane, right that they rented, or, you know, just managed to get some photos in front of that they can never afford in a million years, even get on it, let alone buy it. You know, those are the types of people that I have, my experience is that they’re super ambitious, and then lazy, you know, late for everything. etcetera. So whatever. You know, let’s just think you want to avoid those, if you have a client who falls into that category want to be a little bit careful. Next thing, you know, you know, everything’s all your fault, right? And he has let’s carry on from that ambitious, lazy people can be a little bit on the be-careful-side. So your biggest enemy is you. And that’s little you who’s winning little or big lecture, make sure that big is overriding. And as our emotions go up, or intelligence goes down, we want to be operating with a high level of intelligence, we want our coaching clients to be operating with a high level of intelligence, right? So and, and by the way, think about this, like, give yourself some grace and forgiveness, right? You just make the goal. Rather than solve the world tomorrow, it’s just a little bit better every day, a little bit better every day, a little bit better every day, I talk about it all the time, whereby you double a penny every day on day 31, what you got $10 million, right? The problem is it day 12, 13, 14, 15 16, 17 for such a long time, and it’s very unexciting at that point, right?
So maybe the goal for you, it’s 1% better every day, and then 365 days, you won’t even recognize yourself because remember, you’ll get that compounding effect. On day 31 you got $10 million. But on day 30, 29, 28, 27, 26 when you get about day 25, the numbers aren’t exciting at all, but they spike in a hockey stick way. The same thing will happen with your life, with your relationships, with your business, with your marketing, with your successes with your, you know, coaching clients successes with the number of referrals with your events, your ability to do the events, your ability to get people to your events, etc, your webinars, your live trainings. And remember, you get like at your funeral, they’re not going to talk about your accomplishments. They’re going to talk about what kind of person you we’re in the process of achieving those accomplishments. So always be in really, really careful and cognizant of the fact that we’re going to, you know, taking the high road versus the low road is kind of where I’m trying to go with that. And the last thing you should be worried about is the haters, right? Worry about if you don’t have haters, that would be a bigger problem. So anyways, here I’ve got, so I’ve got some questions from RodeDog. He’s, what he does, you know, he takes these these questions and he kind of, you know, isolates them a little bit. I’m just gonna go and so, so I got a few questions here with the name Elon Musk. So I’m just gonna talk about Elon, like he’s the alien trying to get home. He’s a genius in my opinion. The end. I think that he’s demonstrated that. His big masterstroke, if you wanted to be a look at Elon, my gosh, this guy is changing the world. He’s amazing, so many different categories. So many different businesses, you know, billions and billions and billions of dollars. Probably ended up being you know, the world’s first trillionaire. Or the opposite, by the way, and don’t think for a second, it couldn’t go sideways with them the way that he’s got some very, very, very big bets out there. Twitter. But anyways, he look what he does remember talking about this a lot. But the problem business owners have the mistake that your clients are making, the mistake your kids might be making, if they’re trying to get into business. It’s like Dad, is this a good idea? Is this a good idea? Is this a profitable idea where this idea make money? And what do I say? No, you’re going to change your spidey senses and go to problems, start using your spidey senses to identify problems and then solve them. And by the way, the bigger the problem, the more people that have the problem and easier to find those people like throw a net overtop of them, I’ll be able to tell you how big of a company that you’re going to be able to solve, right? So what does Elon Musk do? He looks at big problems and then solving them or solves them, right? Like, one of the things people don’t talk about with Elon is like, I believe that he’s changing the face of real estate right now. Right? Like how you ask, I don’t know if you’d know this, but like 65%, roughly, of the USA doesn’t have internet access. So 65% of North America, even probably 70, it could be more than that. But they don’t have internet access or cell access, right. And that number possibly blows you away. You know, and it’s, and it’s the same number in in countries, like, you know, Australia, and whatnot. Germany is like different because it’s almost completely covered. But that’s about population density, but a huge portion of the US is empty with no cell phone or internet access, right. So just think mountain ranges ever gone for a long drive, you spent a lot of time where your phone didn’t work, right? So he’s got a little company like Starlink, right? And it’s a business that shoots satellites into the sky. And then the satellites provide internet access in regions where you can’t otherwise get it, right? So his goal is to have 100%, internet access, you know, available, and he believes, by the way that is going to make the world a better place. Because the problem he sees is, some people want to live in the mountains, you know, or, you know, wherever out in the middle of nowheres-Ville, you know, and have their horses and have their cows and their farms, whatever it might be. But they wouldn’t be able to, you know, they wouldn’t be able to communicate as the ways of this, so they can’t do it, right? You buy a place in the middle of nowhere, drill a well, get a satellite, and you’re living in the middle of nowhere for next to nothing and total access that otherwise unattainable like, like think about like, nobody’s really talking about that. But tell me that’s not going to change real estate in quite a, like you know what I mean, I don’t know that’s, that’s going to change. It’s not going to happen tomorrow or next week.
Again, it’s going to have that compounding effect. Where remember, remember, when you’re playing Monopoly properly, halfway through, you feel like you’re losing, right, and it’s going to, but then you get that hockey, hockey stick type, you know, growth. And then the reason halfway through, you get all your cards flipped over. And you’re borrowing money lending and other people’s stuff, etc. Having to borrow money, borrow money, but if you play Monopoly properly, you buy everything in sight. That’s the way you, you win at Monopoly when it’s all said and done. But anyway, so Elon has said a few questions about Elon. So there’s some thoughts on Elon and he just he looks at big problems. And he solves big problems. And he makes gobs and gobs of money. Again, another question, how do I get my coaching clients out of a funk? And then he’s put in brackets life and the business question work. Out of a funk, like your greatest strength is going to be having your greatest strength, well, no, the greatest strength of the uber successful I’m going to say, is a muscle called urgency. You want to be strengthening that muscle in a very real and tangible way and consistently. How do you do that? You got to manufacture deadlines. Like if you’ve ever gone on a holiday on, you’re leaving on Saturday, on the Friday the amount that you got done, blew your mind. Okay? And I’m the same, year the same. Our loved ones are the same, or staff are the same. Our coaching clients are the same. So a bit of a hack is the manufacturer that urgency, how do you manufacture events where you have to get things done? You got deadlines? So, it no doubt you can think of a million ways that you can do that. But are you doing that with your client? Are you facilitating that with your clients? One of the ways that I do this is I have a an alarm that goes off four times a day 8, 10, 12, and 2, throughout the day. Truthfully, I think that it used to jog me that that’s been going on so long now I maybe need to change something up whereby you know what I mean? Like I hear it, and I can kind of continue to stay in beta mode. But often it doesn’t. But you know, but it does jog me a lot of the time. And I just think, again, am I being productive? Am I working on, you know, problems? Am I moving? I have a, you know, I have a productive couple of hours. And sometimes I do and sometimes I don’t, if I don’t, I don’t want to have another two hours that I can’t be, you know, look back and think I’m a bit as productive. That’s how you get a lot done. Anyway, so manufacturing urgency, I think that’s like, super important. And I think that that will help folks get out of a funk because if you introduce me to a child who is getting a lot of, into like getting into a lot of like trouble, they’ve got too much time on their hands, right? Gotta keep kids busy, they got to be playing football, playing soccer, playing, you know, sports, etc.
You know, hanging out with friends, good, productive friends, you know, going swimming, volleyball, whatever, you keep them busy, they don’t have time for their their mind to wander, like a business owners, you know, keep them busy, keep them moving in a positive direction. And I don’t think they’ll fall into that funk. And, you know, attracting people is about energy. And people with bad energy tend to repel people. But interesting, you, you know, people wonder why they’re alone. Or they pretend, no, I said differently. They pretend like they like to be alone. But in reality is they just, you know, pretend that they prefer it. But in reality, what they, you know, they’re just just negative people. You don’t I mean, they’re, I would refer to that as a funk. So if you’re in a state where everything is going wrong, your clients in a state where everything’s going wrong, you know, how do you get out of it? How do you start attracting positive people into your life, positive experiences in your life, positive business relationships, you know, be realistic, is what I would say like, you’re not going to go from uber depressed to joy. If you’re an insane introvert, scared to speak to people, you’re not going to go to mega extrovert, at the drop of a hat, right? And frankly, it’s a bad idea anyways, in a lot of dynamics, but what you could do is aspire every day to get a little bit better, a little bit better, a little bit better, like lean into something that’s positive, like, right? If you’re really in a really low place. You know, taking your business or just personally leaning into optimism could be a positive step forward. And then you could, you know, lean into the next step forward. Think of it like, hey, I’m trying to, like, metaphor, you’ve got an elevator. Okay, if you’re Warren Buffett, Tony Robbins, Michael Dell, Jeff Bezos, if you need to get to the 100th floor, there’s one way to do it 1, 2, 3, 4, 5, 6, 7, you got to go past floor 10, 20, 30, 40, 50, etc, in order to get there. A little bit the same. So, so set some goals with yourself, for your clients, that just you know, make sure that you’re celebrating successes, each 10 flowers, instead of setting the goal of the 100th floor and having to have so much work in between where you’re at to where you want to go, that you have. I mean, they they just don’t quite get there.
Said differently, the closer you are to the finish line, the faster you go. So I want you to think about somebody running a marathon. What do they do for the last, you know, 50 meters? They kick it into high gear, whether they’re in last middle of the pack or towards the front of the leader. The same thing happens they kick it into gear at the last minute, right? So make sure that you’re setting your targets so that they’re within you know, eyesight, and then they’ll go a little bit quicker, and then they’ll get there quicker and quicker and quicker. So one of the things when I work out I do boxing every morning. And it’s a whole heck of a lot of fun. Gary Lightbourne is the guy that I work out with and he’s fought Tyson and Holyfield and George Foreman and Larry Sphinx and like just the sparred with everybody. It didn’t fight them for a title, he, you know, he was the guy that was sparring with him. Anyway, so whenever we do some we’re doing push ups, we’re doing squats. He always counts in 10s. Right, so I’ll do push ups. And he goes, you know, he counts one through 10. And then we start again. And the goal is to kind of you know, so rather than trying to do 100, push ups, you know, one through 10, one through 10, one through 10, one through 10, one through 10. And then all of a sudden, guess what, I’ve got the 50 significantly easier than I might have if I laid down trying to knock off 50 pushups, right? So it was by the way, I had the high school record in, I had that high school record for push ups when I went to high school back in the day and then my best friend so here’s a good one. So my best friend, so you know how like in high school you got two semesters. So I just rolled up one day laid down and you know, broke the record for pushups, which is pretty cool, quite frankly, didn’t practice laid down but I would just smile and strong and then to my best buds so he knew so he had like, you know, five months to practice and he’s doing push ups every night. Guess what, boom. He rolls up and knocks over my school record so, so there you go. So anyways, push ups. I don’t know why I said that. There you go. That was kind of lame, possibly but a I don’t have my, I don’t have RodeDog here to keep me in line anyway. So there you go getting out of a funk. I don’t know, there’s people much better than I, at that speaking of things, that people are much better than I. There’s was a question here about my faith. But again, I think RodeDog probably just been here for a bit and never asked, there’s people significantly better, and I that can help you with faith, truthfully, that’s just something that I’m in the, you know what I mean, I’m a work in progress there. And, you know, working on it, and where I fit, you know, I’m a Christian, and I try to live that way. So I don’t want to pretend like I got it all worked out. But hey, question is here. I do know this, a great faith is a faith with a foundation of forgiveness, that I know, a great faith is a faith with a foundation of forgiveness. And that’s forgiveness to yourself. That’s forgiveness to your family and your loved ones. It’s forgiveness to those close to you, you know, your coaching clients.
Remember, the world is a mirror. So if you’re more forgiving of yourself, and others, guess what they’re going to do for you, they’re going to be more forgiving, you know, the world is a mirror, and I think was saying that though, you should be a little bit careful, don’t be going to be careful to be too forgiving. And then we don’t get anywhere, right? Like, again. You know, I’ve got a nine-year-old daughter and I whip her on the butt a little bit I mean, I, I am absolutely forgiving of anything related to a shortcoming. But that being said, sometimes, you know, I gotta I gotta kick her in the butt, little bits. And I’m not shy to do that. So I think that there’s going to be a little bit, you know, you get what you tolerate, be a little bit careful to tolerate too much, right? Remember, and forgiveness, a really powerful, saying around forgiveness is that forgiveness is for you. Forgiveness, yes, for the other person, I guess, right. But significantly more important than that. Forgiveness is for you. On the subject of faith, you know, I know that the, the poorest countries in the world are the most religious. Think about that. Is there’s something there, right? Like, I think it is, and again, I do I have the answer? No. But I think what they’re doing is like, almost like they’re sacrificing this life, for bliss in the next and I don’t know, it just feels to me a little bit like they’re giving their power away a little bit too much. So again, I you know, I, I’m not I’m not a believer in giving away my power, that’s for sure. And I think some of the, again, let’s just go to the poorest countries in the world and the most religious, I think they give too much power away to God, to Allah to, you know, the higher power versus going out and bloody you know, fortune favors, you know, the person that decides what they want, and bloody well goes after it. That’s what I believe. And again, you may disagree, this is a touchy subject for some, and I’m cool with that. So, let’s say insane speed requires immense clarity, get really, really clear on what you want. And the can go and get it. And I think you do it in a faith based way, and remember what, what I believe is the, you know, the greatest faiths worked around on a foundation of forgiveness. So, I think you should we’ve talked about that in different weeks. Semi recently, it’s just like can be forgiving yourself. It’s when you’re lying on your deathbed, one of the things that you’re going to say, you wish you were most you were more forgiving specifically to yourself. Right? Moving on, I got another question here. Why am I no longer the CEO of my company? And there you go, why am I no longer the CEO of my company? Um, long convoluted answer that I could give you a state look, the CMO of Apple made about $25 million last year. But he’ll pay about 50% tax, that’s earned income. Okay, so 12.5 schmil, not bad if you can get it per annum. But Warren Buffett invests in Apple and he took home about 250 million last year and didn’t roll up for a single day at work. You know, so again, that the next level is becoming an investor. So there’s entrepreneurs and then the next level is investor something to think about, you know, and you know, that everybody wants to be the CEO. Everybody wants to get interviewed, you know, like I’m not CEO of my own company. And I haven’t done an interview in like over three years right. So, that’s the problem or that I don’t know that’s the problem but if that’s the dynamic you want to grow from CEO to investor. And by the way feel free to be the CEO and I think that that the, you don’t do that early on. You have to mean you need to get company established,
Yeti, Yeti, Yeti. But, but understand that billionaires make their money owning and investing in assets, not working for a wage kind of thing, right? Like, they find what is what professional investors do they find a great jockeys with excellent horse on, excellent horses, let’s say. And by the way investors, what they don’t do, and a mistake that I see out there is that you don’t look for a company that’s in trouble and then buy it. You look for a good company with great people, great management that a fair price, or at least people a million times more intelligent successful than myself, that would be Warren Buffett and Charlie Munger. And that’s what they do. And you can see there’s a zillion interviews out there where they talk about that. So that might be a better frame, than trying to find somebody that’s in a little bit of trouble, right? And, and by the way, they also look for leaders in a category, that’s an important framework, important part of their rules, like, you know, Coca Cola, Apple, etc. And, Charlie Munger, or sorry, Warren Buffett was, he was interviewed, and he said something to the effect of, he never invested in it, when he decided that he’d invest in Apple was when he saw the magic of iTunes and the recurring, the recurring revenue, there’s two things in a company, there’s a lot of things that are important, with a company, great management, etc. But I gotta tell you, a high margin and recurring revenues are so important and not understood at the level that it should, you know, on that note, like, okay, Steve Jobs, if you follow anything, you know, like, I’m here, I love Steve Jobs I get in my office, if you see it, you know, I got photos of you know, my family and my best friends and holidays. And to do to do and up with my family, I’ve got a picture of Steve Jobs in my office, which might tell you that I’m a little bit strange, not sure. But I realized just I believe that Steve Jobs is just inspirational times a million and the way that and by the way, had his shortcomings for sure. But you can’t argue with his success in the business world. But, but, okay, let me tell you this. Think back in the day, in the 80s, right?
Steve Jobs invented what, everybody invented the personal computer, but let’s just say, you know, he’s out there flogging personal computers, one of the only people doing it, and let’s assume that he’s selling what I think was the best one of its time, right? How many times did he make the computer? And that’s once? And then how many times? Did he sell it? That’s once, right. And then he had to build another computer to sell it once. And what happened? Get fired from his job, right? He got kicked out of Apple. And then he ended up, you know, going on to other things. Bill Gates comes along, and they were arch rivals for a good period of time. How many times did Bill Gates build the software? You know, think Word, Excel, etc. Think Microsoft Office. How many times did he build it? Once? How many times the sell it, like a billion times became the richest man in the world? And nobody fired Bill Gates, right? So like, that’s leverage on steroids, right? How many times you write a book once? How many times can you sell a book forever? You build a course how many times you build it once? How many times can you sell it? No limit, which by the way, a little word called entropy needs to be talked about there whereby, you know, is your course you know, evergreen courses and whatnot, you know, over time, the same way that you age, your courses age, your products age, your books age, your information ages, so you got to make sure entropy, you gotta you got to step in, and, you know, improve it, like that. Think of Microsoft Office, you know, it’s like, you know, version 10, version 11, etc, right? Like, they kept upgrading and upgrading it every year, they improve it, but they improved it. And basically, you’d upload it to your computer. You know what I mean? Like, so again, they still built it once, and then sold it an infinite number of times. And Bill Gates never got fired. Right. So and then by the way, Steve Jobs went on when he learned something when he built Pixar, which is basically the movie business and he learned about leverage, whereby you do a movie once and then you go to leverage it at McDonald’s with the characters you get licensed to patent their the characters and put them on blankets and put them on pillows, put them on posters, you know, do it you know, you know rides at Disneyland, etc. But at the end of the day, he learned a thing or two about leverage and then that was iTunes. So iTunes, that’s how I got off that tangent iTunes was very powerful, which by the way, okay. I’m just thinking how am I gonna explain this, but he I have it now.
Okay, so I think another thing very, very powerful that Steve Jobs learns whilst leaving Apple, coming back, but the power of the platform. So, Steve Jobs you know the story he worked at Atari back in the day, okay, so might be aging myself here you may or may not be you know, familiar with the Atari probably are if you’re listening to this. But the Atari see, you weren’t a addicted to Atari. You were addicted to Pac Man. And you were addicted to Donkey Kong and you were addicted to Centipede, you are addicted to the games, right? So, so basically what am I saying there so then go iPhone versus Blackberry. And like I was one of the last people standing with them Blackberry, I just, I love that keyboard. I didn’t want to let it go, you know, the touching of the thumb and just, I just wanted I mean, I had an old blackberry and I loved it. And I just even with my iPhone, if you saw it, you’d be, you know, I mean, it looks a little ratty, tatty, whatever, because I just don’t want to upgrade. I don’t want a new phone because then I gotta learn new stuff. And I can’t be bothered, right? It doesn’t mean that much to me. And I certainly, it’s not an optics thing for me. I really don’t care if I’ve got the new latest greatest phone couldn’t give a rat’s backside, right? But anyways, okay, with that being said, why am I using an iPhone? Why are you probably using an iPhone? And if you’re not using an iPhone, you’re using Android or something similar? Maybe Samsung, but the foundation of it, is this, is the Pac Man, Donkey Kong, Centipede, the equivalent of that. You went from BlackBerry, and you were probably like me where you didn’t want to let it go. And you went to iPhone, why? The App Store! The App Store killed Blackberry, not the iPhone. So the iPhone is the Atari platform. But the apps or the equivalent of Pac Man, Donkey Kong Centipede, etc, right? So you are addicted on checking the weather, checking your emails, checking your stocks, your addicted, you know, using, you know, Google calendar, using, you know, the, you know, maps like your lost and trying to get somewhere that will ultimately that’s an app. So the app store, the App Store killed Blackberry, the iPhone didn’t. I think that there’s some power on that little word called integration. So these are the types of things that and that’s why Steve Jobs came back, and then ended up eating Bill Gates’s lunch to a certain degree. But I think there’s a big business lesson in there, you know, again, but thinking butcher, baker, candlestick maker, I think these macro concepts are very important. But again, you gotta get granular with those examples to be able to help the local small businesses, but again, margins, recurring revenue etcera, you know, memberships? Are they you know, like, Amazon reason Amazon, like Amazon is just killer business. But make no mistake, Amazon Prime when they introduced Amazon Prime with free shipping, etc. I mean, that changed the game entirely. So instead of marketing and buying advertising, they took all that money into the customer experience, basically, right? So yeah, so there you go. So there’s that, that is the answer, why, I don’t know. So no longer CEO of my own company, you know, that’s, that’s the answer. I don’t know if that’s a good one? But that’s the answer.
I’m trying to help my clients invest as they earn more any recommendations? Okay. Yes, I think it’s a good question. Some of you that that might not be the most impactful question, but I gotta tell you, you should always, what you’re, you should be encouraging your clients to take a percentage of everything that they earn, and putting it in and investing it on a weekly or monthly, at a minimum, but weekly is way better than monthly and monthly is way better than quarterly and quarterly is way better than annually. Your clients don’t invest enough I can almost categorically guarantee it’s what’s a good asset a good assets got two things, cash flow and capital gains. If it’s only got one of those, it doesn’t fall into the, you know, like ideal asset category. So like domain names, I own like hundreds of domain names. There’s hockey cards. There’s like paintings and art. There’s old vintage cars, there’s crypto, which by the way, you may love crypto and you might I’m not getting into a crypto conversation there’s people that are you know, Bitcoin is holding steady at where it’s at right now. Who knows that may or may not be an asset anything you invest in crypto by the way I would expect or be at least prepared to see it go to zero. Be careful is what I’m saying there. Not having that conversation today. But at the end of the day, Cryptos got no cash flow. It’s got capital gains, as do vintage cars, as a painting, as those hockey cards, right? Versus real estate. Real estate stocks with a dividend and then business ownership for sure have got cash flow and capital gains, right like I love Rich Dad Poor Dad. I was the guest speaker of the Rich Dad Poor Dad Canadian super conference way back in, I’m gonna say 2006, a long time ago. There was a time when I had read every single word that he had written. And I was a big fan. I love this stuff. But what he says is about real estate as a general rule is that it’s the cash flow that matters. And the reality is that the capital gains is where the real magic is in, in real estate, right, like it takes 10 years, unfortunately, but the returns that you will make in capital gains will blow you away by where if anything you’d make off of a rent payment, like I own a house in a, in a Port Moody, sorry, Vancouver. And, you know, I bought the house for a little bit under a million way, way, way back when right before the crash of 2008.
And this is what it looked like, where it wasn’t exciting, it wasn’t exciting, it wasn’t exciting, like by where, like, I literally lost like, I bought the house and then it went down in value because was 2008, held steady there. But it didn’t do anything, didn’t do anything, didn’t do anything, didn’t do anything, didn’t do anything. And now, you know, like, you know, it spiked up to 3 million bucks, right? But let me tell you, what most people would have done is they would have sold, and old money equals never sell. So the only reason that we took a million dollar asset and turned it into a $3 million asset is following that old money rule of old money equals never sell. You introduce me to a family with old money and I’ll introduce you to a great grandmother and a great grandfather that never sold. Right. So then that it will ultimately have that hockey stick growth. Remember, when you’re playing Monopoly halfway through, if you’re playing it properly, it feels like you’re losing, right? It’s at the end or your crush it. It’s the same thing with a lot of your investments, you’re gonna see that it’s not exciting, not exciting, not exciting, not exciting. And then you get that hockey stylist’s type growth. But at the end of the day, anything that I made on rent payments on that house are trumped dramatically, by the $2 million of capital gains, hopefully you’re picking that up. But the book, let’s get back to investing, the book will say you should invest 10%, I want to encourage you to invest 20%, and I would like for your aim to be investing 50%, weekly, monthly, quarterly of your income over time. Okay, so you’re 50% of what you earn is going into investment, investing in business, investing in stocks, investing in real estate, right, like domain names, I own hundreds of them, like, you know, marketingplan.com focused.com, turnkeys.com, and lots around coaching. I’ve also invested in a buddy who does collectibles, like cards, baseball cards, basketball cards, hockey cards, and you know, I invested a very small amount early on, and he just did a, was it a five to $600,000 card deal. By the way, don’t quote me on that. But it was a, it was a baseball card. It was huge, huge number. I was like, wow, wow, there’s one card by the way. But so, there’s like the end goal of investing is to have your capital gains and cash flow from your assets to fund your lifestyle. Okay, so the end goal for your client, my end goal for you, would be the money that you’re putting into your investments, like your assets, that the capital gains from them, and the cash flow from them would allow you to fund your lifestyle, like really quick, let me give you case, let’s say we buy a house for 500 grand, right?
And let’s assume that that house is going to go up 10% per year, by the way, it will be high, you get a that’s a rule of seven, if you get a 10% increase, your assets will double every 7.2 years, the rule of seven, right but so if you get a 10% year-on-year, you’d be doing better than historically. But that being said, I just want some easy numbers here. Okay, and let’s assume that your cash flowing $1,000 a month, let’s say that your mortgage payment was three grand and you’re getting four grand a month in rent or your mortgage payment is two grand, and you’re getting three grand a month in rent, there’s $1,000 of slush money there. So that would be 12 grand a year. And then if you bought a $500,000 asset that increased by 10% in a year, that would obviously be 50 grand, how much do you got? So now you got $62,000 a year. And if your burn is less than 62 grand a year, guess what? You’re doing? Well, there’s a there are some nuances here little thing called tax. Okay, so I don’t want to get granular, but what I want to do is help you create a frame that might, I’m hoping that you’re gonna see that it’s not as hard as you might have thought it was. Like imagine if you had three of those houses. The mistake people make is they buy a house, sell a house, buy a house, sell a house as a stupidity, right, buy a house and then draw down on the capital gains like you know what I mean, like you, it’s borrowings instead of earnings so you can borrow money from the house that you own and the capital gains use that to put as a down payment on your second house, right? So none of your own cash down. And then allow your own assets to help them you know, turn its monopoly. One house into two houses into three houses, right, and then hopefully you’re gonna go hotel at some stage, but you know, like, multi, multi-family, but three so quickly, I don’t want to confuse you, or I don’t want to lose you, right? If you did it three times on those $500,000 houses, again, with my very loose numbers, you’d have 180 grand a year, if they were increasing by 10% and you are cash flowing, you know above your mortgage $1,000 a month, which is highly, highly improbable. Okay, so like on the outer if you invest in real estate, in the hot beds, LA, New York, Toronto, Vancouver, Melbourne, Sydney, London, Singapore, these types of markets, you know what I mean? Like markets that you’ve heard of, 10% could be highly probable in different years. Think of the United States, if you invest in the center of the country, as a general rule, certainly in Canada, you’re not going to nearly get the capital gains that you’re going to get in, in the the other spots, right? So again, you gotta know you make money when you buy, not when you sell as a frame. And they are tax implications. And so it’s not that easy. But if you own three houses, in good markets, during the right times, and again, the right time, you got to own it for 10 years. So you’re going to have to for years are going to be down. But then you’re going to have maybe six years that are going to be on the right side of the ledger, right? So but financial, if you were to accomplish that financial freedom would be yours, whereby your assets and your own cash flow would be what you’d be living off of, right? Oh, frame I’m trying to give you there’s it might be a little bit easier than what you were thinking. It’s like, you know, being worth a billion dollars doesn’t mean that you have a billion dollars in your bank account, right? You become worth a billion dollars off of your assets, not your cash. Right? So let’s say get a business that does $5 million a year. So a different example, I went so read that was a real estate example. Let’s use a business example, right? So you got a business that does $5 million a year, and it’s got 20% margins.
Real simple, you got a million dollars of profit. And let’s assume I’m going to give you a 5x Multiple on that. So guess what, you’re now worth $5 million on that business alone, assuming you owe no real estate, no stocks, no other assets, which by the way, would be probably a bad idea. But you know what I mean, like you got to, but you’d be worth 5 million bucks. Right? So now let’s increase that company. Let’s assume that we could go over time, we’re going to try if you didn’t, you know, the hardest million is your first million. So you managed to get a business to 5 million, you know, getting it to 10 million wouldn’t be an impossible task. By any stretch of the imagination, let’s assume you continue to have 20% margins, I think there’s a good chance going from 5 to 10, that you’d be increasing your margins versus lowering them. But again, if you’re not staring at them, your client isn’t staring at them, you’re not helping your clients stare at them, there’s a good chance 20 would become 15. And that would be that would be very bad. You know, remember their scale and growth scale is when you grow and your expenses stay the same. And then growth is when you grow and your expenses come with you. You want to be able to maintain, you know, keep your expenses under control while still growing the company. Translation increasing your margins as you’re growing. Okay, but back to my example, $5 million a minute ago, with 20% margins. Now we’re doing $10 million a year with 20% margins. Guess what, you’re now worth 15 million you were worth five a minute ago, now you’re worth $15 million, your net worth from that business only. And by the way, it’s possibly worth 150 million. As in 100x, multiple, which be again on an unrealistic side. So, the risk gets a thinking how deep I want to go here, the multiple will increase probably like from 6 to 10. The reason that it would increase is for five words: predictability, sustainability, growth opportunities, and risk. Okay, and scale. Sorry, is the last one, right? So it’s predictability, sustainability, growth opportunities, and risk and scale. If all of those things were moving in a positive direction, the multiple that you’re getting your company would go from 5 to 10. So anyway, so that question if your company is doing 5 million, and now it’s doing 10 million, do you think it’s more predictable? Do you think it’s more sustainable? Do you think there are new growth opportunities and you think the risk diminish, diminishes as you get bigger and are around for a longer period of time? And the answer is absolutely! And that’s how you can go from, you know, getting, you know, a $15 million valuation to getting $150 million valuation which you’ve seen all those with Facebook and Instagram and YouTube back in the day, etc. Those are like growth stocks, right? So moral of the story is you need to build assets if you want to be wealthy, along with cashflow.
People think that cash flow, when people are thinking cash flow, you want to be thinking of cash flowing assets. And I’m trying to say and it’s the asset that is critical. So again, buy vintage cars and rent them out, the problem you’re then going to have is that the vintage cars will diminish in value. So you need to maintain them and make sure that you’re controlling anything that would resemble, you know what I mean, like, you want to maintain those vintage cars, you’re not maintaining them, you’re going to remember your because the net worth is going to be more from the asset than it is the cash flow. The two of them, you know, obviously piggyback one another. But if you’re ruining all your cars, going to have to replace them all the time. This is a this is a bad company, your your capex is going to kill you. Anyway, so and then I might just explain this, like whereby, okay, we’re in business coaching mastery in Mexico. I’ve explained this a few times and explain it again. I think there’s total magic in this, in it. I go on day two, who wants to sell their company for $5 million? Pretty much all the hands go up, right, including mine. And it’s like, okay, like, who wouldn’t? Okay, well, let’s reverse engineer the dynamic of a company that sells for $5 million. Let’s assume that you’re gonna get a 5x Multiple to get your 5 million, right? Well, reverse engineer, that means that you had a million dollars of ebitda. Okay, which fancy word for profit? Basically, you’re making a million dollars a year, you’ve now got 5 million, but guess what, when you get the $5 million check, you think you keep it all? No, there’s a little thing called tax, wipe off a million, it’s a little thing called brokerage fees, right, you’re gonna pay 10%, let’s assume that’s 500 grand, a little thing, you know, there’s going to be debt, there’s going to be some staff that will probably be let go, and you’re gonna have to, you know, pay them, there’s going to be some debt. So the moral of the story, or what happened is I basically took $5 million, and it came down to about 2.75. Now, let me tell you, let me ask you a different question. If you were making a million dollars a year ago, or a minute ago, and now you got 2.75. But no business, is this a positive step forward? And the answer is, look, I need to know more. What’s the state of your health? What’s the state of the industry? What’s the state of the business? How over are you? Are your kids not interested in taking it over? Are you wealthy in other areas, like you have other investments, and this is just play money to go and, you know, tour around in Europe. You know what I mean? But let’s assume not, because I’m going to tell you, we have a client that I just spoke to him within the last probably 10 days. And he just oh my gosh, I wish I would have spoken to you earlier. Because my gosh, I sold my business for a couple million bucks. And he, you know, didn’t end up with a good portion of that. And he’d love to have his business back.
So hang on. So I’ve just identified if that’s, I don’t know that it’s a problem. But it’s certainly a dynamic that I’d like to understand, I want you to think of it as 1, 2, 3 options. Option number one is keep going with your business and running it and showing up day to day. Option number two is to sell it. What’s option number three? And option number three is to go, okay, hang on, we’re making 5 million bucks a minute ago, or a million dollars of profit. Why don’t I bring somebody in pay him 150 grand a year plus incentives to get them to 250 grand, and their job is to grow it and see a lot of the time the guy that sold that company would end up with us at focus.com and become a consultant. What’s he doing? He’s consulting other businesses, I say, well, consult your own company, hire a CEO, have him come in, you consult him, his job is to grow the company. And you’re now making a million you know, you’re gonna be making 750 grand, assuming that he’s going to realize all of his incentives, and he’s going to make a cool 250. You’re making 750 grand, and you’re consulting your own company, I’ll let you decide if that’s a good idea. And if anything, I’m gonna go sideways, or anything where to me if it went, you know, the train derailed a little bit for a period of time, guess what you could do? You could come in and do a 3, 6, 9, 12 month stint, and then you know, fix it up and then again, step back into semi retirement, consulting your own company, and a few others like it, like wouldn’t that be a better right? Like, wouldn’t that be something worth considering? And again, we need more information. We need more information on the individual, but my goodness, that’s a bad, you know what I mean? Not that, a lot of folks out there, the dynamic that I just gave you sold their company and they do anything, anything, anything, anything to get it back. And again, this is a macro concept. But as I’m consulting coaching, the butcher, the baker, the candlestick maker, this is the kind of stuff that I’d like to know that I’d like to be armed with, to make sure that, you know, I am able to give my client the absolute best advice, guidance and macro level, macro level guidance, gotta get way more granular and micro with, you know, some of the advice to get there. And another option, option number three, remember, option number one is to keep going and keep working in the business option number two is to sell it, what’s option number three, and maybe that’s franchising it, right?
Bring in somebody, the CEO, that you’re going to bring in, the boss that you’re going to bring in, the consultant, not the consultant, but the employee that you’re going to bring in, is going to be an expert in franchising, and you’re going to give them, you know, one to three years to basically frame this thing up and franchise it. Do you think that might be a good idea? Do you think that might be, you know I mean, better than selling it. And by the way that might you know, the dynamics of that, let’s say that you’ve got a process within your company that’s really unique works really well. And the your competitors would love to have? Well, guess what, you’ve got something that’s licensable, you could do that instead, you know, versus sell it. Fair enough. So these are just types of things that I’d be thinking about. But as far as investing, I would absolutely be, you know, encouraging your client to invest only invest in things that they understand like day trading, forget it, it’s gambling. And, you know, most day traders have a real horrible period, and they make profit, make profit and give it all back. The same way. People flipping introduced me to somebody who flips houses. And if they continued to do it over, you know, a body of time they normally make profit, make profit, make profit, give it all back in one shot. That’s what I’ve seen. Not at that’s sweeping generalization on the dynamic, but I just, again, is that a good idea, you what you need to do, you got to ride a boom, you got to have a year, which means luck, a translation, right? A boom, luck, the best time to buy real estate is during a boom because you buy it. And then it spikes in value immediately. And you can go back to the bank re-draw and use some of that equity to go buy a second, and then potentially a third and then potentially a fourth, without paying any tax on that money. Remember, it’s borrowings. It’s not earnings. What am I getting at how your clients should not only be earning money, they should be investing money. That’s what I’m trying to say here. So there you go, folks, that is all I have got for today. Miss my boy RodeDog! I hope that provides some value for you guys. He will be back on site, next week. But, but yeah, that’s all I got for you folks. Thanks so much. And we’ll chat you next podcast. Bye bye.
Karl Bryan built profit acceleration software 2.0 to train business coaches how to find any small business owner more than 100 percent $100,000 in 45 minutes without them spending an extra dollar on marketing or advertising. This becomes a business coach’s superpower. So as a business coach, you’ll never again have to worry about working with business owners that can’t afford your high-end coaching fees. Check us out at Focused.com. You may also see our Business Coaching Secrets with Karl Bryan: How To Control Your Mindset + How Elon Musk Solves Problems .