Should I Use My First Business to Fund My Second? — Transcript

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1. 0:00If you had one profitable business
2. 0:01funding another business, my god, this
3. 0:03is going to This is such a common
4. 0:04question. If you had one profitable
5. 0:06business funding another business with
6. 0:08much greater exit potential, how would
7. 0:10you allocate your time, capital, and
8. 0:11attention between them?
9. 0:13Dude, or do that.
10. 0:18It's one of the hardest things, man.
11. 0:19Everybody
12. 0:21everybody thinks I mean like the call I
13. 0:23was just on, right? Is you get into a
14. 0:25business, you do it for a while, it
15. 0:27doesn't grow as fast as you want, you
16. 0:28realize all the crap that's inside of
17. 0:30it, and then you think to yourself,
18. 0:31given everything I've learned, I thought
19. 0:32there's a better business than the one
20. 0:34I've got.
21. 0:36And then you're like, well, I don't want
22. 0:37to start there from scratch cuz this is
23. 0:38my cash flow. So, you know, I should
24. 0:41take this cash flow to put in this other
25. 0:42thing.
26. 0:43I will just tell you from experience
27. 0:46that the new thing will grow five times
28. 0:48faster if you go all in on the new thing
29. 0:50than if you try and straddle two. Like,
30. 0:53it's it's it's it's virtually impossible
31. 0:55to run two businesses well,
32. 0:57right?
33. 0:59And one of the one of the most
34. 1:00unfortunate things that I've seen is
35. 1:02people are like, well, what about Elon?
36. 1:04You're not Elon.
37. 1:06You're not.
38. 1:07If you were, you would already had an
39. 1:09exit for whatever a hundred million
40. 1:11dollar thing that it was his first
41. 1:12company when he was like 24. You're not
42. 1:14Elon, right? It's the same people who
43. 1:16are like, hey, I'm trying to be like
44. 1:16Warren Buffett. I'm like, well, dude,
45. 1:17you're 30, and you're buying your first
46. 1:19stocks. He bought his first when he was
47. 1:20seven. You're not Warren Buffett. Like,
48. 1:23hey, I want to get into music. I'm going
49. 1:24to be like Mozart. Well, did you write
50. 1:25your first concerto at whatever nine?
51. 1:28Probably not,
52. 1:29right? And so, it's like some level of
53. 1:31self-awareness is useful.
54. 1:33Most people cannot be CEO of more than
55. 1:35one company. Now, you can own more than
56. 1:37one company, very different, right? I
57. 1:39can own shares in Apple, not a big deal.
58. 1:41I don't run Apple, right? So, if you if
59. 1:44you buy something and it runs and you
60. 1:46have an operator, that works. If you are
61. 1:49the operator of two businesses, there's
62. 1:51just not enough bandwidth. There's too
63. 1:53many things going on. And
64. 1:56you have to make a call, and I think
65. 1:58that part of the reason that people who
66. 1:59try to split their attention
67. 2:01um don't succeed in either is because
68. 2:02there's actually a larger character
69. 2:03trait that they're lacking, which is
70. 2:05decisiveness.
71. 2:07Because somebody who is very decisive
72. 2:08would be able to make the call and say,
73. 2:09"This is what I'm going to do." And then
74. 2:11that character trait, that behavior
75. 2:12pattern, would repeat throughout the
76. 2:13business because that lack of
77. 2:14decisiveness also carries through each
78. 2:17of those now two businesses that
79. 2:19decisions are not made fast enough,
80. 2:20they're not made decisively enough, and
81. 2:21as a result they do not grow. And so, I
82. 2:22will tell you this, the speed of the
83. 2:24company is based on the speed of
84. 2:26decision-making of the boss. I'm going
85. 2:28to say that again, the speed of growth
86. 2:30in your business is based on the speed
87. 2:31of your decision-making.
88. 2:33So, it's not like you're going to move
89. 2:34faster, it's not like you're going to
90. 2:35type faster, you're going to be more
91. 2:36erratic. Like, we all have the same
92. 2:38number of hours, but the things that
93. 2:39take the longest time in business are
94. 2:41the decisions that you delay.
95. 2:43That is what is taking your time. And
96. 2:45the thing is is that you can do
97. 2:46something slowly and you'll always get
98. 2:47it done faster than somebody who delays
99. 2:48the decision to begin with because you
100. 2:49can delay and sit in a decision for
101. 2:51years.
102. 2:52And some of you guys are in this
103. 2:53situation right now. So, what I would
104. 2:54encourage you to do is burn the boats.
105. 2:56Like, I have had many different
106. 2:57businesses, but what you will notice is
107. 2:59that at each of the punctuated periods
108. 3:01of transition in my life I I burn the
109. 3:02boats and get rid of the one that I had
110. 3:03before. And it's usually because uh
111. 3:06I might have started them at the same
112. 3:07time, but then they still it they take
113. 3:09off when I make when I go all in. So, go
114. 3:12all in. All right, next call, let's do
115. 3:13this. If you like this video and you're
116. 3:15business owner who wants to break
117. 3:16through your current revenue ceiling, I
118. 3:17distilled every lesson from scaling 10
119. 3:19businesses past 10 million and three
120. 3:21businesses past 100 million into a
121. 3:23completely free scaling road map that
122. 3:24I've used to go from zero to one, zero
123. 3:26to 10, and zero to 100 plus. And so, you
124. 3:28can click here and you can check it out.
125. 3:30Again, absolutely free, and since you're
126. 3:31business owner, I appreciate you and uh
127. 3:33enjoy.