- This is a two folded question.
First of all, do I encourage people to start a business
or buy an existing business?
I do encourage for most people buying a business
is actually better, is a better idea, I'll explain why.
(upbeat music)
Just imagine this, let's say pretend that you want to fly
to somewhere far away, and you go to the airport,
and imagine you go to the airport and the person,
the flight attendants at the gate saying to you,
hey, you know what sir, you wanna fly to let's say Hawaii,
great, look out just in the runway there,
you see all those parts there?
You see the engine, you see the wings, you see everything,
yeah go ahead, just put that together,
put the plane together and then you can fly.
That's pretty much what starting a business is like,
when you don't know what you're doing, you don't know
if it's gonna work, you're not even sure of your destination
and you're not sure if you're gonna get there,
and you don't really know how to fly,
you gotta put the whole thing together, put a team together,
put a system together, and put fuel into it, gas it up,
and hopefully it would go and hopefully it doesn't crash
before anything goes wrong, that's starting a business.
Now buying into an existing business, on the other hand,
is a different story.
So imagine, same scenario, but now this time you
are actually on a plane with a pilot,
that's your existing business owner, that you're sitting
as a copilot seat and you're observing
and he's showing you the ropes.
He's like okay, you know, learn this
is how the business works.
The plane that has already been flying for two, three, five,
10 years, it's cruising, it's very comfortable,
so chances of that plane crashing is a lot less,
and you know it works because it's already going some place,
and then you're slowly taking over
and the owner's showing you the ropes,
and by the time you finish the transaction,
you took over the business and now you're flying the plane.
Well, the chances of succeeding is much much higher.
Now I'm not gonna get into the whole how to buy the business
without a lot of your own money or your starting out,
how should you do that?
I'm not gonna get into all of that,
but I'm just saying if you think of that scenario,
that's buying a business versus starting your own.
I think most people underestimate what it takes
to actually start a business from nothing,
from just an idea, that from execution, marketing, sales,
system, teamwork and people, raising capital,
all these things that people don't think about,
and most of the time they don't have the business skills
to do any of those parts or they only have the skill
to do one of the parts, and that's the challenge.
So it's not the business that's the issue,
it's the business person, the business man
or business woman, that's the issue.
Now, going back, going to your second question,
second part of your question is do I recommend investing
in real estate?
I invested in real estate, that's what I like,
but you shouldn't invest in things that I like to invest in,
you should invest in stuff that you like to invest in,
and by you asking that question, it tells me
that you haven't done your research or due diligence.
You're looking for okay, if so and so, if Dan invested
in stocks, I should do stocks, if he doesn't invest
in stocks, I don't invest in stocks personally,
then I shouldn't do it.
It has nothing to do with that.
It has to do with you, how educated you are as an investor,
how sophisticated you are as an investor,
that's why there's no such thing as oh,
that's the perfect investment.
It all depends.
The perfect investment for me
may not be a perfect investment for you.
You have people, let me ask you this question,
are there people makin' a lot of money with stocks?
Absolutely.
Are there people losing a lot of money with stocks?
Yes.
Are there people making a lot of money with real estate?
Yes.
Are there a lot of people losing money with real estate?
Yes.
Are there people making a lot of money with oil and gas?
Yes.
Are there people losing a lot of money with oil and gas?
Yes.
So it all depends.
It depends on how educated you are as an investor
and how much you know about the investment, so no such thing
as a risky investment, there's only risky investor.
There's an element of risk when you are driving,
but if you're driving without training
and you blindfold yourself and you stick a knife
in front of you and you go 100 miles an hour on a highway,
that's being stupid, that's dangerous.
Unfortunately, that's how a lot of people invest.
Just like now people jumping into the whole cryptocurrency
and the Bitcoin and all this bullshit,
and all these people oh they're raving about it.
"I don't want to miss out,
"I gotta jump into this Bitcoin thing."
You know when it's all over social media,
when everybody's jumping into it,
that's the time to get out.
That is the time to get out.
So, and how much do you actually understand
how all that works, right?
Most people don't, they just buy into the whole hype
or they buy into what the media's telling them
and then they just invest, that's not what sophisticated
or intelligent investor does.
We know what we invest in, we stick with what we know,
and we don't get distracted, and we are very very focused.
We are very very focused.
So it's not just investment or should I start a business,
all of that, all those questions Chris,
it tells me you don't know what the fuck you want
and you don't have a foundation yet.
When you do have a foundation, you don't ask those type
of questions because you would know
are you a business person, are you not.
If you're gonna invest, you know your criteria,
you know the investment type,
you have your what I call the investing principle
that you follow that you don't vary.
All of the successful investors, Warren Buffet,
you look at anybody, they all have their own principles
that they follow and they never vary,
that they just follow that
and that's how they get those returns.
So that's the answer, a long answer, to your question.
If you have a question for me,
and you wanna ask me a question, comment below.
If it's a good question and I think it's applicable
for a lot of my viewers, I will take the time and answer it
kind of like this in the new show, Boss in the Bentley.
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you might see your question just pop up
in one of these future videos.
So stay tuned.
Until next time, I'll see you in my Bentley.