Do you have student loans or other loans but still have the dream to start your own business? If you do then check out these trainings with Clay Clark as he shows you how to start your business even with loans.Sign Up to Watch
-All right, Thrivers, today we are talking about something that I'm super passionate about. It's this concept of big vision. However, big student loans, finding more money in your couch-- the idea here is my main man, Augustine, is one of our Thrivers of the month. Which means he scored a ton of points, had a great month on the Thrive15 platform. And he has this question which I love, my friend, so I'm going to read it.
You said, "I have insanely high student loan payments due each month. However, these loans are paid in full in two to three years, which will reduce our home expenses dramatically at that time. I am looking to line up opening the business as well as possible with the paying off of the debt, so that if additional capital investment in the business may be required, it will be easier to access capital through our personal finances and/or reducing my hours, quitting the day job would become an easier decision."
So unpack that for me. Really, just trying to figure out how we're going to find the money we need to fund our business?
-Yeah, yeah. Basically I've got massive payments. It's like having another mortgage payment that I'm trying to--
-What did you study?
-My undergrad degree was in meteorology, of all things, so--
-Yeah, I was a weather forecaster, but not on camera. I don't have a face for camera. So I was behind the scenes doing commercial meteorology in the early 2000s for various utility clients and railroad clients, things like that. So that was my undergrad. And then I wound up going back for a MBA. I hope you won't hold that against me.
-No, no, actually. And Thrivers, just so we're clear, because everybody kind of feels this way. I did not graduate from college. I don't have anything against the college. I will just say that I find that a lot of people do have big loan payments, and not necessarily the big income that came with the big payment.
So what's going to happen is you have this-- I'm just going to draw it because I'm a very visual guy. But you have this big vision here. You go, I have this huge vision for my life, right?
And we're going to view this as the energy it takes. This is the energy it takes to make your big vision possible. This is the big vision, this is the energy it requires. I say energy. Money is energy. You think about the time you have to put in to make some money. I mean, eight hours of your time creates this much money. So you're talking about your energy.
Well, then you have these loans. I mean, how much energy does it take to pay for those loans? Look at all the energy. Look at all the energy that goes into paying for these loans. We've got the loans over here. This is your big business idea, this is your vision, and this is the energy it requires just to pay your-- I mean, you look here, I mean mean, it's going to take a lot of energy just to pay those loans.
So my argument on the whole student loan deal is that moving foward-- we can't go back and change things if we already are where we are. But we really, really, really, really, really, really don't want to have to spend a lot of our energy just paying student loans. We want to put that into starting the business.
But we are where we are. And in about two or three years, you'll be done paying those loans, and we'll get through it. But in the meantime, in the cycle of growing a business, there are some things that don't require a ton of money that absolutely need to be done.
OK, so the first thing to do is we need to build a business model. And Augustine, the great thing about this is this costs almost $0. This is a no money concept. This is where you want to make your pro forma. And we have trainings on Thrive15 about how to make pro formas, break even points, we've talked about it.
But you really want to define your business model. Specifically, I'm talking about, you want to figure out on paper your income, the expenses. You want to figure out your break-even point, and you want to figure out the number of deals to achieve your goals. Those are the big four you want to figure out.
And figure out what kind of income can you generate with your business? What kind of expenses are associated with that? What will the break even point be? How many transactions do you need just to break even? And how many what's the number of deals you'll need to do to achieve your goals? You can figure all that out, and it doesn't cost you anything.
[MUSIC PLAYING] -Now the second you need to be doing-- OK? The second thing you need to be doing is, you need to build a reputation. Oh, and this is-- this is tough. This is something that people don't want to hear. But unless you're crazy, I'm not going to invest in you if I don't know you. I mean, unless I'm crazy, I'm not going to invest in you if I don't know you. If you don't have-- if I don't know you, we haven't met each other before, if I haven't-- come to me and say, hey Clay, would you investment in my business. If I've never met you? No! But you know what? If I've seen you be diligent and work hard at your job, and I work with you close quarters for the for two years and I go, man Augustine's awesome. You pull me aside one day at the water cooler and you say hey man, I'm thinking about starting this business, would you want to team up with me? Yes. Why? Because you're diligent, you're kind, you're honest, I've seen you work hard. And then you say, hey can I show you my business model? And you have that? Now you're there. So the business model is something you can define. You can go ahead and build your reputation, right? You can do that. Then, once you have your compensa-- your reputation, then we need to focus on raising that capital. And so these are things that can be do-- and I know some people might go, that sounds discouraging. But what I'm saying is that if you don't have a business model, well defined, nobody with the sound of mind is going to lend you money. Two, if you right out of college and you don't have a business model-- let's say you do a business model. So you're right out of college and you have a business model, but you don't have a reputation? People-- it's also insane if they want to lend money to you. So you're like, what do I need to do to build my reputation? I'm going to focus on this first. So to build that reputation, what we have to do is we have to become a master of networking. So what you want to do right now is I want you to dream. I want you to think big, and we're going to come with a list of the dream 100 people. These are the contacts that know the people you want to know. I'll give you a fun example. This just happened, it was like three days ago. A guy named Nabie calls, and Nabie is an Olympic trainer. He was from Guinea, he was in the Olympics for Guinea, and he trains Chris Paul. And Chris Paul is the NBA basketball player who is the the-- probably one of the best point guards in the league. He plays for the Clippers. Well Nabie says, hey, I'd like free to work with me on something. Well, who are the Nabies of your life? I mean for me, I really-- we do some work with some NBA people. These are connections that I need to have. I need to be able to know these kinds of people. The other day I got a call from a guy who's super, super successful and he says, hey, I want to connect you with this person here who has access to some huge venture capital they'd like to put into Thrive 15. Well, you have to build that relationship. So what I want you to do is I want you to make a list of 100 contacts, OK? This is your Dream 100. Make a list of 100 contacts that you believe if you know person A, B, C, D, that they know who you need to know to get where you want to go. These are the people who know the people that you need to know. These are the people-- and again, when you reach out to people, how long does it take to build a relationship? In my mind, it takes a couple years. So what you want to do is you want to contact this person, OK? So you're going to make that contact. And when you contact them, what you want to do is you want to over deliver. You want to never ask them for money, you want to never ask them for compensation, you sincerely want to just reach out to them and say, how can I help you. So I'll give an example of a real call I actually made. Years ago, I reached out to a mentor, who's now on Thrive15.com, and I called him and I said, hey, you're you're a best selling author and I really would like to write books, and I've never done it before, and I would like to spend some time with you. And he was like, well, are you looking for a job? And I'm like, no, I would just like to get to know you because I feel like I could learn a lot from you. So I reached out to the man, I did some work for him for free after hours, I did some manual work, I did some just grunt work around the office. But after a given period of time, what did I get? MAN: You got a new connection. -I did. MAN: That led to additional connections after that. CLAY CLARK: That's right. -Yeah. CLAY CLARL: And this, right here, is how I met Paul Pressey. And Paul Pressey. Is a guy who's a wonderful, wonderful man. He's an assistant coach with the Los Angeles Lakers, and Paul has a mentor on Thrive 15. And through Paul, that's how I got connected with David Robinson, who's one of our Thrive 15 mentors as well. He's a partner in the company and a great guy. So how do you go f-- here, I was at my apartment. Right? I was in my apartment and didn't have air conditioning and I reached out here to Clifton Taulbert. And from Clifton, I was able to build that relationship here being over delivering to Paul to get to David.
-So let's think about your life for a second, and think about the people that you want to meet. And two years from now when you have the capital ready to go and you're going to launch this thing, who are the 100 contacts that you'd love to have? Well let's think of one. One would probably be a venture capitalist. Wouldn't it be awesome if you had a guy who's your best friend who has access to $500 million?
MAN: That'd be great.
-Now wouldn't it be awesome if you had two guys like that?
MAN: That'd be better.
-What if you had three? In real outings, if you reach out to 100 people, probably only four or five are going to connect with you. But make that list, those venture capitalists. What if you had a buddy of yours who's an architect who designs restaurants? You know? What if you had a buddy who's very, very well connected in the franchise business?
What if you had a buddy who honestly has already franchised his company, he knows how to do it, and says, hey buddy, come along with me and I'll do it, and I'll give you an example.
There's a guy that I met about two weeks ago at a conference I was speaking at. He did this. He reached out to a guy who owns one of the most successful franchises in the United States. And he called him and said, I would like to work for you for free. He got blown off, the guy never called him back, he couldn't get through a secretary, he couldn't get return calls, he couldn't get-- and he started mailing him every day. I swear to you.
He mailed him every single day, these letters. Mailing him, mailing him, mailing him. Finally, his assistant's like, you're getting letters every day from this guy. Could you at least call him? So he calls the guy and he says, guy what do you want. The guy says, I just really want to build a relationship with you because I want a franchise my business and I know you're an expert of that.
I'd like to see if I can serve you, work for you for free, do some things. He sets a meeting, as God as my witness, now they are business partners. Now there are guys who are working together and their franchises has taken off, it's great. They have just a hair under 20 franchises sold now together. It's awesome.
So what do-- so right now you say, I got these student loans, what am I going to do. Well I'll tell you what you're going to be doing. This is a good-- this is actually a blessing. We can't view this as a-- we can't get bitter, we've got to get better. We've got to say, look here. I can take this time right now and focus on defining my business model. I can begin building these relationships here. I can build that reputation.
And then I will have the reputation and the business model needed to go out there and get that capital.
-That's how we've got to do it. That make sense?
MAN: That makes-- makes lot of sense. I did have one question--
CLAY CLARK: Yeah, sure.
--about the Dream 100. Is there-- is there a point at which you-- and maybe it's just a total I'm not going to talk to blah, blah-- I mean, is there a point at which you make a decision to replace somebody on the Dream 100 with somebody else?
CLAY CLARK: Yeah, and I'm going to tell you how you do this.
MAN: Because you've talked about getting down to, you know, probably four or five people that you might actually work with. But, you know--
CLAY CLARK: That's a really good question.
MAN: There's some-- sometimes there's just, for whatever reason, somebody just says yes. Screw you buddy, I'm not going to deal with you.
So let's say you had a list right here, OK? And on your list you had contact one, venture capitalist one, venture capital two, architect three. These are just-- so you have 100 rows of these folks, and I'm just going to say here we have 100. This-- we're just showing four. What you do is you want to come up with, in advance, the steps you're going to take, and you want to go 10 steps. OK?
So you want to figure out in advance what are the 10 steps you're going to take? You-- literally, Thrivers-- you literally want to make a board, a whiteboard, and do this. So step one, what are we going to do for every single person. What's the first thing? What's the first way we're going to contact them? So I would say with a letter because no one sends letters anymore. I'd write a hand written note.
Two, I'd send another letter. Three, call them. Four, email. Five, gift. Go all the way through all 10 steps. And when you get to the 10th, if you haven't established traction I would blow them up. So let's say we went through this mock scenario. We go through this, we go boom, boom, boom, boom. Right here, bingo. That guy calls back, you set a meeting with him. This person. Boom, boom, boom, boom, boom, nothing. Blow him up.
Next one. Boom, boom, boom, boom, boom-- he responds. Keep him. Right?
CLAY CLARK: So now you'd say I blow this one, I'll replace him with something new. That's how we do it.
-Now the book "The Ultimate Sales Machine" by Chet Holmes? That's the book I'd recommend to really get into this.
-And the chapters six, seven, eight, and nine. That's the chapters I would dive into. OK? Chapters six, seven, eight, and nine of that book.
-OK? Fabulous book by Chet Holmes, "The Ultimate Sales Machine." But you have to be either dumb or numb to implement this system. But I have seen it work so many times. The thing is, you get paid based on what you can do and who you know. And if you don't know the right people, you're never going to be able to have those big contacts. Think about how your business-- imagine this, though.
Let's say that you did get one venture capitalist who totally buys what you're selling. How easy is it going to be a grow your business and to turn your dreams into reality?
MAN: It's going to get a lot easier.
-You just need one contact. So, awesome?
-Hey, I appreciate it, my friend.
-Can I get a little boom here?
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