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This show was not planned.
We were supposed to do a different show and we couldn’t hold back. We’re very passionate about this subject and we decided to just let it be its own episode.
If you think a million dollars is a lot of money, you might get $100,000. If you think $100,000 is a lot of money, you might get $10,000.
This episode is all about upgrading your mindset. Don’t worry, we get practical too. We give you the advice you need to hear, it just may not be what you want to hear.
If there’s one thing you’ll take away it’s the critical importance of NORMALIZING the things that feel big to you. We tell you how to do that.
Highlights, Takeaways, Quick Wins
- Normalize what is big to you if you want to be able to attain it.
- Don’t get scared of large numbers.
- Once you understand that a million dollars is not a lot of money, you’re on the journey toward being able to achieve it.
- Failures are course correction.
- If you have something to invest in, you won’t see $100,000 as a lot of money.
- Get your spouse on board with your mindset.
- Money amplifies who you are now.
- Satisfaction comes from the journey, not the destination.
- Entrepreneurship isn’t easy but it is doable if you dedicate yourself.
- There are employees making a million dollars, but there are many more entrepreneurs making a million dollars.
- We all have something inside of us that can help someone else.
- You don’t have to create new technologies to be an innovator; innovate where you are.
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- 03:13 Sean: Just this morning, I posted a video on seanwes tv called Stop Trying to “Make It Big” On YouTube. There are all these people saying, “There are all these YouTube stars! I want to be the next big YouTube star.” There are all kinds of problems with this. YouTube is really big right now, and I’m not saying that it’s going away, but people thought the same thing about similar platforms. If you built your empire on MySpace, you aren’t looking so great right now. Build your own platform rather than going all in on YouTube, because they change the rules and that’s your livelihood. That’s one part.
- 03:53 The other part was that if you look at the top 20 earners of everyone on YouTube, which is over a billion users, the 20th person made just over a million dollars. This is 0.000002% of all of the YouTube users. I said this in the video, and one of the commenters said, “Haha, just over a million dollars. The poor guy.” Everyone was liking his comment, but I said, “Upgrade your mindset. If you think a million dollars is a lot of money, you might get $100,000.” The guy came back and said, “$100,000 is three times my annual salary.” I said, “If you think $100,000 is a lot of money, you might get $10,000.”
- 04:53 I think he started to get it, but a lot of people don’t. They think, “Oh my gosh, this is so big.” There’s a reason we talk this way and that we’re thinking at this level. The way we got here wasn’t by thinking that a million dollars is big or by thinking that 100K a month is impossible.
Money Is Relative
- 05:32 Matt: I always throw around numbers as a joke.
- 05:38 Sean: Not even as a joke, but sometimes Matt will say, “Two or three hundred dollars or whatever.”
- 05:42 Matt: I do that without even thinking about it, because whenever you get to the point where you stop looking at the numbers as money and you look at it as a tool, you can do so many powerful things.
- 06:04 Sean: People think in relative units. They base things off of the smallness of their imagination. When you live in a bubble, in a tight knit space, you think small. This guy is thinking, “$100,000 is three times my annual salary.” To him, that’s big. As long as it remains big, it will remain unattainable for him. We see big things and we go, “Oh no. I can’t do that.”
You have to normalize what is big to you to be able to attain it.
- 06:41 That’s what this show is about. It’s about normalizing. The way we got where we are was by learning from other people who talk about millions of dollars as if it’s nothing, because they’re units of measurement with bigger base blocks. Some people think in XBoxes. Some people think in MacBook Pros. Some people think in Honda Civics. It’s all relative. Money is relative, numbers are relative, but when you have small base units, then big things can seem unattainable to you. For people who have hundreds of millions of dollars, they think of a million as something that’s very small. That’s a dollar bill, a base unit.
- 07:22 Matt was talking about getting an apartment complex, which is probably a few million dollars. When you start scaling and getting bigger, you start thinking in those terms. You think, “A few million dollars here, a few million dollars there. We could get a few more apartment complexes.” That’s the level you start thinking at. When you start listening to people thinking at that level, it helps you normalize bigger numbers.
- 07:56 Matt: I remember when people were telling me that I couldn’t afford a $30,000 home because “That’s an entire salary.” It broke me down. Once you start breaking down the numbers, it’s a lot easier to swallow. You think, “I could do this. I can do that.” Before you know it, you have 30K. Now, I’m trying to acquire this $2.5 million apartment building. People automatically assume that I have money. I don’t have money, but the business figures out how to put together the money for this deal. I was talking to my dad about this yesterday, and I’m still trying to work on him and this bigger mindset thing.
- 08:42 He said, “$2.5 million! If it doesn’t work out, you could lose a ton.” I said, “Yeah, I could. There’s always a chance. But after I’m done with it, I know it will be worth at least $4 million. I’m not expecting to make $4 million off of appreciation, but I’m going to build it up to make it worth that much.” He still didn’t get the concept, how behind the scenes I’m thinking beyond $2.5 million. He was stuck at the price tag. I said, “No, dad, stop looking at that. Look at the end result once it’s done.” The principle is to break it down.
Don’t get scared of numbers, but think of them piece by piece.
- 09:46 Now, I always think of $5 million deals. I’m doing $2.5 million right now, so I’m not doing $5 million deals, which is fine. Some people think that’s decent. My friends are saying, “Matt, you’re getting into JV!” Others might think, “Holy cow, the dude’s made it!” I think it’s important not to get emotionally attached to the number. Be careful when you get to higher numbers. When you throw a football, you’re going to give it all you have. It’s going to land wherever it’s going to land.
$100,000 Is Not a Lot of Money
- 11:38 Sean: $100,000… is that a lot of money? For a lot of people, it is. For a lot of people, they’re thinking in units of their salary. The biggest unit they’ve ever thought in is what they make in a year. That’s the most they’ve ever thought of, so everything else is a multiple of that. If I make $33,000 a year, then $100,000 is three times my annual salary. When you think of three times the biggest number you’ve ever thought about, that’s going to feel really big to you. That’s why you have to normalize things. If you’re listening to this episode, write one word. Write it on a whiteboard, a piece of paper, or the back of your hand: normalize. Everyone has this stigma with money. If you’re talking about a lot of money, they push it away.
- 12:41 One of the other commenters on this video I mentioned earlier said, “I think we don’t think in these terms, and that’s fine. We’re not in this group, and he’s on a whole different level here. Good for him.” That’s the polite way of writing people off, but that’s the reason she will be stuck there. I don’t hope that for her, but as long as she has that attitude towards it and she’s limiting herself and capping her potential, that’s where she’ll stay.
- 13:26 Matt: People have to want to better their situation. Whenever I ask people, “What would you do if I gave you $100,000 tomorrow?” Automatically, they start thinking of all the fun stuff—stuff that isn’t going to bring back a return. I’m not saying that if you make money, you shouldn’t spend any of it. I’ve noticed that whenever you tell someone a large amount, if they don’t have a business or don’t know how to invest, they assume, “That’s a lot of money.”
If you have something to invest in, you won’t see $100,000 as a lot of money.
- 14:23 If I go to a family member and they don’t have any investments and I say, “Here’s $100,000. Try not to spend it—make some money off of it,” they’re going to look at me weird. They’re going to say, “I’m going to go and have fun. This is my salary for three years. I’m going to upgrade everything and have some fun.” That’s what I would hear. I’ll ask my employees lots of times, especially the new ones. The veterans might say, “We’ll invest, build up our businesses, or buy real estate.” They know to invest in it. If you have something to invest in, $100,000 isn’t a lot of money. It doesn’t get you that far. If I were to come to Sean and say, “Here’s $100,000,” he would say, “Sweet. That’s going to help my runway get a little bit longer.”
- 15:22 Sean: It’s not a lot.
- 15:22 Matt: He isn’t going to jump for joy and give me a hug. Depending on where people are in their situation and their mindset, they think, “I don’t have anything to invest it in. $100,000 is a ton of money.” If you have something to invest it in, you think, “This will help. It’s a good starting point.”
- 15:50 Sean: I’m not going to stop saying it. If you think a million dollars is a lot of money, you might get $100,000. If you think $100,000 is a lot of money, you might get $10,000. I’m going to say it until it’s Magic of 7 for people, and that is the biggest favor we’re doing for people on this show. When you hear us talk about these numbers and you think, “I can’t relate to that,” at the very least, I want you to take away that this is not a lot of money.
The moment you understand that a million dollars is not a lot of money is the moment you start on the journey toward being able to achieve it.
- 16:31 You have to see it as a small amount of money. That’s the only way to get there. The only way you’ll make a million dollars is when you don’t think it’s a lot of money. Wrap your head around this. Everyone is freaking out about the Powerball and the lottery, but it’s just play money. It’s a joke to them, because they can’t wrap their minds around it. A lot of people think that way about a million dollars. A million dollars is not a lot of money. Some of our listeners have seven figure businesses and they know that they could last a few months off of that. That’s great. It’s just like if Matt gave me $100,000. I would think, “We can breathe. Cory, we can take lunch breaks. That’s good.” I would say thank you, but I’m not going to freak out.
- 17:22 That’s where you need to be. To get there, you have to change your mindset about this. If anything, think about the money relative to you as a little amount, whatever you’re making. Take your annual salary and multiply it by ten. Multiply that by ten. It starts to get a little bit scary, but you need to familiarize yourself with that number. Normalize that number. Get around people who are talking about that number like it’s a normal thing, and that’s how you’re going to get there.
- 17:59 Matt: I can’t wait to put out our course. It really helps people easily think that a million dollars is not a lot. It’s going to be so helpful.
- 18:13 Sean: We have an avatar for that course. The avatar is someone who has four employees and they’re making $10,000 to $30,000 a month. I said, “Matt, I don’t like ranges. Tell me what it is. No one has three to six employees, they have four. They have real numbers.” Matt’s like, “No, it fluctuates. That’s the problem. They could be making $10,000 or $30,000 the next month, and they have payroll to meet.” They’re struggling, meddling with their employees, and making sure they get their work done. The boss shouldn’t be doing this. He should be growing the business, and he wants to be getting to that 100K a month level, so he can think about scaling or bringing on more help, but he’s constantly bogged down and stressed out. He’s doing a bunch of things but not getting anything done.
- 19:13 Meanwhile, his income is not sustainable. It’s unpredictable. This is the person that the course is made for. I purposefully made us niche down, because I want this person to feel like we’re reading their mind and this is exactly tailored for them. Of course, we know that a lot of people, even if they don’t have employees or they’re starting their own business, could get value out of this. We narrowed it down on purpose. That’s enough teasing on the course, Matt.
Reality Aligning With Your Mindset
- 20:00 I really want to help people think bigger and get to their big goal. What would you say to the person who makes $50,000 a year, and they would like to be making at least $100,000, maybe even $200,000, but that feels like a ton of money to them? A million is out of the question. What is your advice to them as far as how they should be thinking about their goals and numbers beyond their goals? What is the mindset they need to have?
- 20:36 Matt: I would tell them, “You need to wrap your head around telling yourself that you’re going to make this $100,000 and believing in it, truly. Get your mindset around it. Do whatever it is you need to do. Listen to videos, podcasts, and wrap your head around bigger numbers. Think of $100,000 as your $50,000.” Secondly, I would tell that person that they need to have a plan. You can’t just say, “I’m going to make $100,000,” and expect it to show up in your bank. It doesn’t work that way, unfortunately. If it did, we would have Lambos outside.
- 21:28 Sean: Earlier, I mentioned that we had about $100,000 in the bank, but we have less than that. We don’t even have six figures in the bank. I want to tell Matt where I’m at, because long time listeners know that the Lambo Goal is to buy a Lamborghini Aventador in cash, a $400,000 car, but only when it represents 10% of our money. That means that we have a $4 million goal. I want you to see where we’re at and where that goal is, realize how much farther away that is, and understand my mindset. As far as I’m concerned, the Lambo is out there in the garage. I’m jut not driving it because I’m busy.
- 22:13 It is as done as done for me. It’s already there. I already have it. That is my mindset. You need to have that kind of mindset. It needs to be done for you. You want to make $100,000? You want to make $200,000? If this is your goal, it needs to be done, no question. It’s a matter of how you’re going to get there and taking the steps. It’s a matter of learning. Failure is hitting you left and right like branches while you’re going through this jungle. You’re hacking away with your machete, but nothing is going to stop you. Every branch in the face, every scratch, that’s failure. Are you going to stop, or are you going to keep going? You know you’re going to get to the other side.
- 23:15 Failures don’t matter—it’s course correction and feedback. Failure says, “This is not the direction you want to go. Watch out for the branches on your right.” That’s all it is. That’s how you have to think. It doesn’t matter if you try something, if you launch something and it doesn’t go well. Don’t cry about it. What didn’t go well? Dissect it. Figure it out. Learn from it and go on to the next thing. Keep going, keep going. My Lambo is out there, it’s done. That’s where you need to be. Because it’s done for me and I’m set on achieving this, it’s just a matter of reality aligning with my mindset, it’s just time.
My level of happiness and satisfaction right now is identical to what I will have when reality aligns with my mindset.
- 24:15 It’s already done. I’m under no impression that my level of happiness will change when I reach this goal, and neither should you be. When you make your revenue goal, your happiness level will not change. There will be a little bump, a shot of dopamine, and maybe a crash if you weren’t prepared, and then you’re going to level out to where you were. How happy you are now and the way you think about money now isn’t going to change. Reality is only going to align with the mindset you have right now.
- 25:12 Matt: Once you get to that point, if you’re thinking that $100,000 is a lot of money but you’ve already accomplished that huge goal in your mind, that $100,000 is nothing. That’s the point. Wrap your mind around getting to your big goal. Honestly believe that goal is done, and like Sean said, you just have to wait for reality to align with your goal.
- 26:22 Sean: Adina said, “Once you have the mindset how do you proceed? You still have to find the work and the clients or buyers that will fulfill your mindset.” Do you just think your way to a million dollars and that’s it? There’s no work?
- 26:55 Matt: One step at a time. You have to make the money. It’s not just going to show up.
- 27:06 Sean: You have to get creative. Let’s work backwards. I’m going to make $100,000, and we’re trying to normalize this. For us, a million isn’t a lot, but some people are still thinking that $100,000 is a lot. Step one? Normalize it. How do you normalize it? Repeated exposure. Where does that exposure come from? Go find it. There are books, YouTube videos, courses, conferences, meetups, groups of people who think at this level, and podcasts like this one. Listen to it and listen to it again. Normalize it.
Getting Your Spouse On Board
- 27:30 Brien says, “How do I help bring my wife along for the ride? I feel like I’ve made the mental switch with how I think about money and success, but I can tell my wife doesn’t quite get it yet.” Repeated exposure, repeated exposure, repeated exposure.
- 27:53 It’s the Magic of 7. It takes hearing new information seven times to internalize it. For some people, it’s way longer than that. If she doesn’t like the podcast, you have to find another way. Take personal responsibility for it. If you can get your spouse to listen to the podcast, that will do the work for you. That’s the awesome part, but a lot of people will say, “What’s this stupid business podcast? I don’t care about Lambos.” 80% of our listeners don’t care about Lambos, but they’re smart, because they get it. The Lambo is just a picture of thinking bigger. You don’t have to care about supercars, it’s just a picture. This show is about business.
If your spouse doesn’t want to listen to the show, find something where people are thinking bigger and talking bigger that resonates with them.
- 28:43 If you can’t find that, that’s got to be you. How much do you care? You’ve got to get your spouse on board with your mindset. If you’re a team and you’re pulling in different directions, it’s going to slow you down or worse. You have to get them on board and you have to think, “Do I care about this to take the time to get their mindset aligned?” Maybe that means every single night having a talk with them. Maybe they don’t want to talk about it. Guess what that means? Maybe it means that every single night you do something they love to do first and then say, “Hey, I’d like to talk about this. This is important to me.”
- 29:27 If you have a good relationship, you should each care about what’s important to the other person. In places where the interests don’t overlap, do something for them and then talk about this. You’re going to have to invest your time, invest your time, invest your time.
- 29:44 Matt: I have a lot of family members and friends that are still on the fence because they’re fearful, and they don’t want to adapt to the mindset we’re talking about. In the beginning, it used to really frustrate me. I said, “Guys, you want to get in this yacht! Get out of the pea boat you’re on and get on the yacht.” I thought people would jump on, that it was a no-brainer, but people are so fearful. They say, “I can’t walk on water.” I’m not asking them to walk on water, we have a ladder. You can’t really get it through their heads. With my spouse, like Sean was saying, if you can’t communicate it by aligning similar interests, then lead by example.
- 30:48 In the beginning, I didn’t have the money and the sales to show what my mindset was. As I continued to grow, I was putting what I was learning into practice and showing them the real life results. Maybe, in the beginning, they’re going to say, “You’re just blowing out smoke.” Keep reinforcing with, “This person is doing this, and they used to be at this point. I’m going to try and take some of those nuggets and apply it in my business and my journey, and these are the results we should expect to get.” They might say, “Good luck,” but you can take that as a positive. Come back around to them and say, “Look, I applied those nuggets, and here are the results! They aren’t quite as much as I wanted, but we still got results from them.”
- 31:42 Continuing to believe in yourself and surrounding yourself with like-minded people is going to help you. Also, practice what you preach. If you’re telling people about what you’re doing, show them results and they’ll start to believe. It took my wife a very long time to wrap her head around me being an entrepreneur, because I was good at my day job and it was comfortable, so in her mindset, that was good enough. If you’re listening to this podcast, you know that “good enough” isn’t good enough for you. Dream bigger and do bigger things.
- 32:26 Sean: We have a concerned listener right now. Erin says, “Are you ever allowed to just be satisfied with your life? I’m afraid by always setting huge goals, I’ll never get the chance to relax and enjoy what I’ve achieved.” The goal is already done. I already have the Lambo. My level of happiness now is identical to what I’ll get when reality aligns with my mindset. This is how you have to think. Your goal is done, and now it’s a matter of following the steps and doing the work. A moment ago, Matt said that “good enough” is never good enough, and some people are getting the wrong impression from that, that we’re never happy with our lives.
- 33:31 No, we are happy with our lives. It’s about enjoying the process and the climb, as Gary Vee says. He says that the saddest day of his life is when he will achieve his goal. When he buys the New York Jets, it will be the saddest day of his life, because he’s about the climb. I’m happy for reality to align with my mindset, but I love the climb. I’m not living for the moment when something is actualized, I’m living for the process. Even when it is actualized, I still enjoy the process. You can bet that I’ll find a way to still apply myself to the process.
Satisfaction comes from the journey, not the destination.
- 34:21 Matt: I was just listening to a group of real estate investors, and one of them is a newbie. He has a desease, and he was talking about how he doesn’t really like real estate, but it was the most practical thing he could do that would make him the return he wanted, just in case he passed away. It would be a business where the cashflow would keep coming in, and if for whatever reason they needed to sell it, they would get a bonus out of the work he accomplished. It blew my mind, because they all set a goal. One of them called it “the Freedom Number.” The Freedom Number was the minimal amount you need to pay all of your bills and have a little extra to live comfortably, to do a few things. You’re happy.
- 35:27 They all worked extremely hard to get to this Freedom Number, and they enjoyed the climb. They enjoyed the knowledge they got out of their failures. Once they got to their Freedom Number, they said, “We’re done. But we have a system now. We’ve gotten to this point where it’s not that hard. We have our number, the income that we want, but now it’s easy. We’ll just keep going a little bit.” Their Freedom Number was $10,000 income a month, which is pretty decent. Once they hit that number, they decided to keep on going. Now, after taking it easy, still having fun, enjoying life, and reaching their goal, they’re now at 100 properties. They make shy of $100,000 a month.
- 36:25 They weren’t trying to get to $100,000 a month. They didn’t want that. They just needed $10,000, and they were happy with $10,000. That’s the point. You have this goal, this goal you need. Let’s say your goal is to make $100,000 a month. You have to believe in it, but don’t get so caught up in that, like if you don’t get there you won’t be happy.
You need to be happy along the way to your goal.
- 36:55 Sean and I don’t have our Lambos yet, but we’re still happy in the moment. We’re enjoying the journey, the results we’re getting right at this moment. That’s huge. Once we do get to the Lambos, we’re going to be happy. We aren’t going to say, “This is it?”
- 37:12 Sean: If I’m hearing Matt correctly, and I’ve talked before about this, but money is an amplifier. You’ll only ever be as happy as you are right now, in this moment. Money only amplifies who you are now. It’s a sobering thought, but it’s also empowering. If money is an amplifier of who I am now, what can I control? I can control who I am now, and that’s empowering. Matt’s saying that you need to find satisfaction, fulfillment, and happiness with where you are now, in your circumstances. Maybe you have your Freedom Number goal, where you’ll feel comfortable and not be stressed about money. Beyond that, you have a bigger goal, but it’s not about having your happiness tied to that goal. It’s about setting a goal so you have something to strive towards. The process and the doing of the work is where you find that fulfillment.
- 38:25 Matt: It seems like a really awesome framework, the way they put this together, the Freedom Number. They weren’t trying to get to a Lambo Goal, from what I understood. They were just trying to make ends meet and have a little bit extra to enjoy life.
- 38:55 Sean: I want to go back to what Adina was saying. Once you have the mindset, how do you actually proceed? She said, “I sell a $5 product. That’s a lot of sales I’m going to have to make.” I did the math. It’s funny that she brought this up, but this is the whole point of the 100K framework. I wish we had the domain name for our course, but if you haven’t gone to LamboGoal.com and signed up for the newsletter, you need to do that, because that is the first place you’re going to hear about it.
- 39:40 Matt: We will show you how your $5 is crucial!
- 39:43 Sean: Here’s the nice thing. Even if they don’t get the full course, for free, we’re going to teach the framework part. The course will be the “how,” but this will open your eyes. You will have “aha” moments, and you will be able to take it and make money. It’s incredible value. If you sell a $5 product, I’m not going to say that you won’t make $100,000 a month, but you will almost certainly not. Here’s why—for a $5 product, that’s 20,000 sales you need to make a month. That’s 667 sales a day, but it’s not just 667 sales or people, because you have to go by the conversions. A decent conversion on your website is that 2% of your visitors will buy. You know what that means? You need 33,350 visitors a day to convert to the number of sales you need. That’s a million visitors a month.
- 40:49 I’m not saying that it’s impossible, but I’m saying that it’s highly improbable without this framework when you’re selling a $5 product. She was joking with someone else and said, “Do you want to buy a $50 letterpress card?” You have to start thinking outside the box!
- 41:57 Matt: Range, it’s all about the range. Look at your business, whether it’s $5 or $1—I have a business with $40 services making $250,000—so don’t make excuses that $5 can’t be more. I have two words for you: range and creative. Put those words together with whatever products or services you have, and figure out how, with range and being creative, you can make that 100K a month. If I say anymore, I’m going to give the whole thing away.
Can You Make a Million As an Employee?
- 42:54 Sean: Christopher says, “Could this $1,000,000 mindset be hard to grasp with an employee mindset vs. an entrepreneur mindset?” There are employees making a million dollars and there are more entrepreneurs making a million dollars. That’s the answer. You need to attach yourself to a Fortune 500 or some startup in the very early days, where you invest a ton and hope. It’s that or attaching yourself to somewhere big. It’s not common to be making that as an employee. It’s easier to make that as an entrepreneur.
- 43:56 Matt: I don’t want people to think that we’re against being an employee. I love my employees, and I couldn’t do what I do without them. I don’t want people to think that, by being an employee, you can’t do great things. I think one of the huge takeaways from this show is how much easier it is to accomplish your dreams by being an entrepreneur.
We all have something inside of us that can help someone else, and that’s priceless.
- 44:27 You can’t do that by being an employee because you’re not able to control the price tag. As an entrepreneur, you don’t have to limit the quality or the value you’re providing your customer or client. You can go all out. That’s what we’re trying to do. We go all out and give them what they need to get where they want to go. As an entrepreneur, you can control the price tag, which is great, because you should be paid for what you’re putting out. You didn’t wake up with this great mindset. Anyone with great knowledge has gone through some stuff, failed, and succeeded at some things.
- 45:13 You will get paid for your value you put out there. By being an entrepreneur, you can control whether it’s $1 or $10,000 or $100,000. I’m all for being an entrepreneur, but I’m biased. If you look at the facts, there are more millionaire entrepreneurs than there are million dollar employees. If you look at the climb, you get different value being a million dollar entrepreneur vs. being a million dollar employee. You wear so many hats as an entrepreneur that you learn so much. From being an employee and making good money, I didn’t learn nearly as much as being an entrepreneur.
- 46:02 Sean: You have to have what it takes. You have to be willing to fail repeatedly. You have to be willing to work hard and long. People don’t want to hear this. They say, “Entrepreneurs are always talking about working hard. You have to have balance, you have to have sleep.” That’s fine. If you want to make a million dollars by the time you’re 60, that’s fine. Maybe that’s not a fun answer, but if you want to do this, it needs to be your life. Your business will be your life. If it isn’t, you’re going to have a hard time. Let’s be honest. Most businesses fail. Something like 50% fail in the first four years, and I would say that you need three to five years, in most businesses, to get to the million dollar mark sustainably. Think about that.
- 46:57 You’re going to have to work hard and long for five years. Some businesses get to the million dollar mark, but a lot of them stagnate. The trait you need is adaptability, because leveling your business from five figures a month to six figures a month and beyond, all of those level-ups involve different challenges. You need different mindsets. Usually, you need different people. Businesses stagnate at the six figure level, and if you want to get to the next level, you need different people who understand key things to help you level it up. The only way to do it yourself is if you have the trait of adaptability.
- 47:39 Let’s say you work really hard, and you get there five years in. You’re making a million dollars. You have to decide if that was worth it to you, because it is going to take a lot of your time, effort, and life. Not everyone wants that. That’s why Matt and I don’t say that no one should be employees. There are plenty of people who say, “I value being able to spend time with my family. I want to go home at this time, I want to have my weekends,” and that is fine.
Entrepreneurship isn’t easy, but it is doable if you dedicate yourself to it.
- 48:17 Matt: You have to weigh out the pros and cons. Look at where you want to be. That’s what it comes down to. So many people do what they need to do for right now, which is fine. We have bills and kids we want to put through college, but you have to take a step back at some point and think, “What is my life going to look like when I hit 50? 60? 70? 80?” Your needs and wants are going to change as you get older, so make sure the way you’re living and the income you have coming in is going to align as you get older. I’m healthy now, but I think, “What is my life going to look like when I’m 60, 70, or 80?” I might need to go into a home, and I know it’s early to be researching this, but this is how far ahead I think.
- 49:13 If I wanted to go into a really nice retirement community to be taken care of, I’m trying to save enough money to where I can live in my nice house and have servants, but if I had to, I’d like to be able to afford it, still help my family, and have my businesses going. Apparently, it runs anywhere between $9,000 and $12,000 a month. Ouch! You look at most people’s income and what they get after they quit their jobs with retirement and Social Security, and it’s nothing near $9,000 to $12,000. Okay, maybe I should plan. When I get to that point, am I going to be able to pay that without burdening my kids? Nobody wants to burden their kids. You have to plan. Think creatively now to plan for that.
Solve Real Problems
- 50:39 Sean: What do I actually need to do? I’m on board with the mindset thing. Normalize the big numbers, I got it. What do I actually need to do? This is where a lot of people get disappointed, because they look to the millionaires and they say, “Tell me how to get there. Tell me, ‘Go to this website, call this number, buy these things, sell it to these people, and sit back, relax, and enjoy the income streams.'” Everyone wants this step-by-step process, but that’s not how it works. You get these kinds of answers from people who are wealthy, and a lot of people dismiss them because they aren’t the answers they’re looking for. If there was a proven way to always buy this inventory and sell it to these people, why wouldn’t we help people? No one is holding out on you. The reason they’re not giving you this perfect step-by-step is because not everything works the same way all the time in every industry.
- 51:48 There are principles you have to distill down to, and you have to be creative from that. That is entrepreneurship. The kinds of answers you get back can feel less than satisfactory, because it won’t be a step-by-step guide. It’s about the principles. I would say that the best thing you can learn, if you want to achieve your goals and make a lot of money as an entrepreneur, is to shift your mindset from, “How do I sell this product I want to make?” to, “What person am I serving, what problems do they have, and how can I solve those?” That’s it. That’s entrepreneurship in a nutshell. You go out and solve real problems in the world. Here’s someone looking for retirement homes when he’s 20 years old. What are his struggles?
- 52:50 What are the reassurances he needs? Look for the problems. Look for where someone is running into an issue, where are they wasting time? Where would this person, with where they are currently and their family situation, their number of kids, their age, their household income, and where they live, where would they be willing to trade money for time, and how can I give that to them? Once you understand that, it opens up a new way of looking at the world. It opens up problems to solve instead of saying, “Why can’t I get 20,000 people to buy my $5 product this month?”
You can sell what you want successfully only if that product is giving people exactly what they’re looking for.
- 53:38 But if it’s just the thing that you want to make, it’s an uphill battle. “Hey everyone, buy my thing!” Why not make something for which you don’t have to say, “Buy my thing,” and people are saying, “Where can I get it?”
- 54:02 Matt: We all have tons of great ideas, but you have to take a second (Related: e002 Validating Your Business Idea). The people that don’t take a second go bankrupt. Validate that idea and make sure that people want it. If they want your $5, $50, $100, or $50,000 product, they’ll pay. They’ll come seeking you. You want to create a service or a product where people will come looking for you. If you build a product that serves what you think is a great need, you might make some sales, but it won’t be near what you want it to be. That’s what it comes down to.
- 54:50 Sean: I’m remembering being in that situation and hearing these kinds of answers, and feeling like they aren’t satisfactory. This isn’t what I want to hear. I remember that. I want to give people what they need. I want to help them. That’s why I want to give away this framework that we need to work on a little bit more. It’s not, “Buy this product and give it to these people,” but it’s the concepts and principles you need and how you might be able to apply them in your industry. That is really the best we can do, but I’m giving it away. I want to help people with that.
- 55:39 Know that when these answers feel less than satisfactory to you, it’s not because we don’t want to help you. It’s because those are the answers. The problem is your mindset right now. You’re not in a place where you can comprehend that those are the answers. Don’t reject them. So many people have an averse reaction and say, “That’s dumb, I’m going to look elsewhere,” and they end up going into some short term thing to try and make money quick. You’ve got to come back to these principles.
Entrepreneurs Are Innovators
- 56:14 Matt: As an entrepreneur, what is our job? Our job is to be innovators. Our job is to solve problems. That’s how we make our money. We aren’t showing up and saying, “We do the exact same thing as our competitor.” No, we’re different. We have to figure out how we’re going to be different. How are we going to be better? How are we going to solve this problem in the best possible way? Be creative. You have to be an innovator. That’s what an entrepreneur does. You come up with a creative solution, and that’s why people flock to you.
- 56:51 Sean: I think a lot of people hear that and think, “I’m not an inventor. I can’t come up with new technology.” That’s not the point. The point is, be creative in your letterpress card business, your hand lettering business, as a filmmaker, selling T-shirts, or selling beauty products.
- 57:28 Matt: There are tons of people that sell those things, but there has to be a need for a certain target audience that you’re going to fill.
- 57:35 Sean: Whatever your business is, maybe you teach people productivity, you work with businesses, you have a course on teaching productivity, or maybe you consult with startups, you need creativity in your realm.
You don’t have to create new technologies to be an innovator.
Innovate where you are.
- 58:00 Matt: I met a lady the other day who’s a teacher, and she wants to make 100K a month. She doesn’t like her salary. In the beginning, she didn’t like entrepreneurship because she thought it was all about the money. I explained Lambo Goal to her and gave her a little bit of the framework and how she could apply that within being a teacher, and later on, she called me and said, “I’m interested.” I told her, “You’re a teacher. Who could you help that would require your services?” She said, “I could help kids.” I said, “Think a step further. Who else could you help?” She said, “I don’t know, parents?”
- 58:56 I told her to keep thinking. I asked, “How could you help teachers?” She explained different things, and I said, “Do you see what you did there? You didn’t invent an Apple watch, the fastest computer in the world, or something that rolls you around without you having to walk, but you are figuring out problems people are having and you’re figuring out solutions. Ultimately, you’re an innovator. You’re an entrepreneur! You just did it, without even having started!” Those are the core principles.