Mike Minutes Mastermind 07/20/2023

What's up, Augustination? This entire mastermind is just gonna be education. I spent the last.

29 minutes typing something up that disappeared. So I figured I'd just make a video about it. Let me just drop this into the Facebook group real quick.

Cool. All right. So there was no questions that came in. So I'm just gonna go ahead and jump right into education, which is personal musings. All right. And education. Some stuff I talked about with Lee the other day. So let me pull this up. Cool. All right, so I had this all typed up very beautifully. Really nice article. I was gonna send everyone and it crashed. And I am not gonna spend another 30 minutes typing it up. So let me try to do this in 10 minutes and just get my thoughts out. Okay, so first musing was amusing. The second one's education. Really the first thing, it was.

Kind of looking at.

This new thing which is throwing out big numbers of, you know, the one billion dollar CEO, the hundred million dollar business owner, the guy that does $100 million in sales, etc. And I think the thing that you gotta be careful of is like, these numbers are obviously for cliff bait. It's something I am now avoiding dramatically.

And using it about my, you know, to gain authority, basically. And I understand the reasoning is like, hey, if you have a big number, it gives more authority to your name and people will listen. I get it. However, the problem is this. That number can be dictated by a lot of different things. For example, is it net worth? Is it revenue? Is it revenue of a portfolio of companies that they own a minority stake ownership in? Is it the valuation of the real estate that they hold? Is it profit? Right, so it's extremely liquid in terms of what that, in Mercury, what that number really means. And so I say this because I am seeing it being more, more used mostly due to the fact that creating funds around real estate has become very popular as well as portfolios where influencers or people have been very successful by minority stake ownership in companies. They'll buy 5, 10, 15, 20, 30% of a business and they'll have 10, 15, 20 businesses in their portfolio. And then they'll claim, when they talk that like they'll say, my, my, you know, our business, our holding company does a billion dollars in revenue. It's like, no, no, no, no. Your holding company owns 15 to 20% of 10 different businesses. And all combined, those businesses do a billion dollars in revenue. And if they're 10 to 20% profitable, really you're extrapolating about 3 to 7% of profit from that number. And yes, 30, 50, $70 million a year is still a lot of money. But it's not like you don't equate that to billionaire. Right? And so just be careful of that. I'm seeing it more and more especially around people like the definition of millionaire and billionaire because tied to net. It also very subjective. If someone does $100,000 and they in revenue and they somehow think that their business is 10x multiple in revenue, which there are businesses that are worth 40x multiple on revenue, well then they can just say that they're a millionaire because on paper they own a company that's worth a million dollars. Well, you should say, well they should, they should have a million dollars in cash. Okay, well what if they're just growing a massive hundred million dollar business and they just don't keep any cash? So they, these numbers are super vague. I understand why they are using that as to create authority. I personally do not want to use these. This would be the equivalent of me saying that my business at Augusta does 30 plus million dollars in revenue because I just like associate, okay, the franchisor and all the franchisees underneath me, all their revenue. I'm going to throw that together and say I'm a 30 million plus dollar CEO of just Augusta. That's false. From Augusta. I make less than a fifth of that. And so.

It is, it is a very murky to show those numbers and furthermore it shows me something about that person because you don't see Warren Buffett hop on a, on an interview and say hey, Berkshire Hathaway has 2.4 million, $2.4 trillion worth of revenue this past year. He doesn't say that. Berkshire Hathaway owns 5, 10% of a company like Apple which has hundreds of billions of dollars in revenue. He doesn't like bring that in along with Geico and along with the railroads and all this revenue and then hop on a show and be like we, we, our portfolio does $2 trillion in, in revenue. He doesn't do that. So in my opinion, the people that use those numbers typically the only people they are trying to.

Attract other people below them. The people that are above them see right through it. And so it's just something I've been thinking about. That's my musings. I have pledged to myself to not use those because I think they kind of show to the people above you that you are playing small boy games and you are only impressing the people that are below you. And so I'm a big believer in Letting other people do the talking when it comes to your success. And so like if someone ever asked me what I do for a living or whatever, what I do for work, I say I own a lawn care business. And if I'm with no one else, that's fine. I am totally cool with them thinking I own a low lawn care business in Bellingham. That's all I need. If someone else wants to go and brag and say all the stuff I'm doing, that's fine, that's great. But I do not want to be the person saying that. So I feel like based upon, I have seen the people that are the most successful, that's how they handle their success is they let other people read the history books instead of trying to create their own narrative.

The real greats do that. The elite of the elite. That's how they operate everyone else. That is like trying to become something. They ruin their reputation by trying to become this number.

Machine. Anyways, that was my musings. More importantly, education. Three stages of stress. We've always talked about zero to 200,000 in annual revenue being where you have a lot of physical stress. As you're growing the business, getting it off the ground, 200,000 to 800,000 more of where you have financial stress. As you're beginning to increase overhead, your margins get compressed because you have employees now, you have shop space, insurance goes up, you are no longer a revenue producing team member.

That puts mass amount of margin compression, financial stress happens. Then the third stage of stress is psychological stress. That's 800,000 plus in annual revenue. But I was talking with Lee and he had a good point. He's like, what mindset is required during each of those stages is different. He said the mindset during 0 to 200,000, that first stage of stress, when you have physical stress, your mindset needs to be that of a labor. You're doing labor. Like that is why you are. What is going to get you through that stage is being a really good laborer. Because if you're a really good laborer, you could literally produce 150 plus thousand revenue by yourself. So if you're really good laborer, you'll be able to get to that stage. The second stage, the financial stress part from 200,000, 800,000, that mindset is an operator. Now you gotta have an operator's mindset. And that is like you're in the grind of the daily. You're in the grind of hiring and firing. You're in the grind of operational efficiencies. Figuring out your marketing strategy, you an operator. That third stage again, this is from Lee, from 800,000 plus. When you. The psychological stress now is required as a mindset is that of an entrepreneur. Right. Strategy, really thinking about future locations, different investing, where do you put your money? And I think the part that we were talking about is getting ahead of yourself will actually slow you down. You'll spin your wheels out. You'll get really frustrated because you're like, I'm an entrepreneur, I'm an entrepreneur, I'm an entrepreneur. And it's like you a hundred thousand revenue and you need to be a really good laborer right now. You just need to work as hard as you possibly can. And so basically what he was talking about is like the mindset required at each stage of stress in order to be successful in that stage. I think that was really important. So. All right, that's all I had for the day. That's the education. Feel free to comment. Your opinions are about that.

And yeah, we'll see you guys tomorrow. There was no questions today, so I figured I'd just do an education. One that replaced my 30 minute long article that I wrote that got wiped out. All right, guys, we'll see you.