(suspenseful music)
- Last profit maximizer.
My favorite strategy, write this down,
no overhead growth.
No overhead what?
Growth, okay.
No overhead growth.
Think of every dollar you spend
as money that you're investing in your business
and all investments must produce a return.
A what?
A return.
Now I know it's getting late.
Stay with me.
I just need another 10 minutes or so,
is that okay?
Give me 10 minutes.
Produce a what?
- [Audience] Return.
- Some high energy, a what?
- [Audience] Return!
- Thank you.
A return, yes.
After this, you can always go back and be like,
for now have some energy.
Every dollar spent, a return.
Berkshire Hathaway, you can actually buy
an ebook from Kindle which it's all a letter
to shareholders from Warren Buffet.
Read that ebook, phenomenal.
In 2010 annual report, Berkshire Hathaway
were at the time worth about $200 billion in value.
Is that a little bit of money or is that a lot of money?
Employs over 260,000 people worldwide.
And you look at the expenditures in Warren's office,
his office where he manages his empire,
make all those investment, expenditure on office equipment,
$301,263.
That's Warren's expenditures, and here's the kicker.
It's not per year, it's in 40 years combined.
In 40 years combined, Warren Buffet expenditure
office equipment, 300 grand.
I know companies that's making only two million dollars
in revenue spend more than that per year.
Because Warren looks at every dollar,
and say, "Am I getting a return?
"Am I gonna get return with that?"
The reason most business owners pimp their office car,
computers, because they let the emotions
and ego dictate expenditures.
Yes?
(audience mumbles)
Yes, yes.
You can pull it from the websites as well.
I'm just lazy, I like the Kindle version
so I can flip through it.
But you can go to the website and see that as well.
- [Audience] They are free?
- Yeah they are free as well.
You could do that, absolutely.
Absolutely.
Ego dictates expenditures.
By the way, I'm guilty of this.
I've been there, I've done that.
And I like nice things.
I like nice things.
So now I used to, you'll notice,
but I used to have an office,
like a big office right across the street, up there.
Some of you knows.
Same office floor.
I never use it, it's a big fucking stupid mistake.
(audience laughing)
I'm telling you, right?
It's not necessary.
Now I run everything from home.
Lean and mean, Bruce Lee.
Lean and mean.
Ask yourself, is that $3,000 pimped out Mac computer
going to produce more revenue?
Does it help you reduce your cost or drive profit?
Is it gonna produce a greater return on investment
than a Dell?
Do you actually need it?
Fancy offices, hot car, lots of staff,
high overhead, not the definition of success.
I always say, spending money to look like a big deal
is not the same as being a big deal.
You wanna look rich or you wanna be rich?
Most people they want, yeah, fancy,
doesn't mean anything.
It doesn't mean anything.
Spending money to look like a big deal
is not the same as being a big deal.
So do you wanna look like a big deal
or do you actually wanna be a big deal?
Hello?
Be a big deal.
Not a bargaining bay, not a bargaining bay.
So how you run your business during the good times
is a great indicator and how will you survive
when that bad times come.
So nowadays, what I've learned my lesson,
I'm paranoid.
I expect things would turn.
Especially things are going well,
something is gonna happen.
I wanna have cash in the bank in case something happens.
So what would be a good number?
How much cash, maybe operating cash as you have
in your bank account.
Is it a month?
Is it two months?
Is it three months?
Is it six months?
A year?
So depends on your risk tolerance
and how conservative you are.
(audience laughing)
Just because you believe in something,
it doesn't make it true.
It does not make it true.
Quick question, look at business A, look at business B.
Look at business what?
Business B, let's say the revenue is $100.
It's how much?
Same.
And expenses are also $90.
How much?
Make it a profit of how much?
10 bucks, profit 10.
The goal, I wanna increase my profit by 30%
to $13.
How much profit?
I wanna meet my goal.
So what's my strategy?
I have two ways I could go.
I can increase revenue, right?
So let's see what that looks like.
Business A decides their strategy to increase the revenue
from $100 to $125.
How big of a jump is that?
What percentage?
Is that a lot, a little?
It's a lot.
Even within a year, yes.
Business B has a different strategy.
Business B takes a hard look at all the expenses
of the business and that's my recommendation for you.
Go back, look at your expenses,
look at your recurring expenses,
look at all those subscription,
look at all those things you're spending money on.
Do you actually use it?
Do you need it?
Because let me show you the impact of this.
Do I need this?
Do I want this?
What do I need it for?
(audience mumbles)
No, 'cause I'm not a cheap guy.
I'm saying being smart with,
example, I like nice things.
How many have seen my red suit?
Yeah, in my red suit, I bought it from Vegas,
I bought it in October when it's actually on sale.
So the suit, it is expensive suit,
but also when I go buy it, it's 35% off.
So I'm buying nice things but I'm not being stupid
with my money, does that make sense?
And whatever I'm spending, here's how much I make,
this is how much I'm spending on luxury stuff.
Is that okay?
Not, I'm making this much, and I spend this much.
That's not okay.
Buying a car I couldn't afford, buying a (mumbles)
I couldn't afford, does that make sense?
Being financially intelligent.
So do I need this, do I want this?
Look at this.
Revenue by 25% to $125, it's a big increase,
you can see expenses also gone up
because it services revenue.
$112 to create a profit of $13, 25% in revenue.
Or, I can manage, lower my expenses by only 3.5%
to 87% to get the same 30% increase in profit.
How soon I can do that?
For some of you maybe days.
Versus that.
You're getting this?
It's very easy.
Look at, take a hard look in all the expenses.
One thing I can tell you I'm never cheap on,
I'm never cheap on is education.
That's why I spend a 10 grand, that's $7,500
to go see Keith, spend it four, five days.
Because I know that one strategy,
how much that would be worth to me.
Thinking time.
I'm never cheap.
For advisors, just like this month,
I spent a few thousand dollars,
I hire, I paid a YouTube consultant
to look in my channel.
I pay a person from TV talking about
if I was to do some kind of a TV show,
what would that look like, the pilot.
I pay the consultant fee.
Those things, because it saves me what?
Time.
It saves me time.
So when it comes to those, I never,
I would gladly invest in my own education.
The fastest path to profit maximization
is reducing the drag of expenses.
Not building a bigger sales engines
or pushing the growth expenses.
Always, always, always,
pick the low-hanging fruit.
Always pick the low-hanging fruit.
Are there expenses within your business right now
that you can cut?
Yes?
Very easy.
How soon can you do that?
Tonight.
Tomorrow morning.
You could do it.
Might not seem like a lot,
you cut a few hundred dollars here and there,
when you add it up, it'll blow your way.
Because you think in terms of how much revenue
you have to generate to make that profit,
to make that cash, to pay for that.
That couple hundred bucks, you look at it,
shit, actually to pay the 500 bucks a month,
I need to generate 2,000, 3,000, $5,000 in revenue
to have that 500 bucks cash to pay for this thing.
You will look at expenses very carefully.
My primary maximization, profit maximization strategies,
how do you grow top line revenues
and maintain or reduce expense?
Is that a good question to ask?
How can I grow top line revenues
and maintain or even reduce our expenses?
That's what I mean, no overhead growth.
No overhead growth.
And that's why I prefer a lot of strategies,
a lot of stuff that I do, my mentees know,
I made money out of thin air.
No overhead.
Don't even need much infrastructure.
Maybe let's say, example, let me give an example,
let's say you have business A, business B,
they have a list, they've got a product,
I'm like I say, let's say a broker of a deal,
put the deal together, just get a little percentage,
for every sell that they make,
or a profit sharing structure.
Is this my business? Is this my list?
Do I have to spend money to service this list?
Is this my product?
Do I have to spend money to manufacture this product?
Yeah, but I can get some earnings from that.
With null in money invested.
That's one way that you can make money.
Just like, a few days ago, I was talking to
a publisher from Italy,
that they're gonna publish some of my books.
I'm gonna sell the rights to them,
and they're gonna buy, they'll pay me an advance
in royalty and not intellectual property.
Also they're gonna pay me, about a dollar per book
and they're gonna print about, I don't know,
10,000 books each, with a few so,
you know from there, might make 30, 40 grand,
with something I already have.
That I don't have to invest money into.
So my return is good.
So that's an example.
I want you to get, just think outside the box.
Optimize before you grow.
Optimize before you?
- [Audience] Grow.
- Optimize your expenses, not just grow,
but look at your expenses.
Are you being as efficient as possible?
Last one, can I give you a bonus?
Can I give you a bonus?
Very last one.
Meet with an accounting professional
and review your financials every month.
Because you can't improve something you don't?
- [Audience] Know.
- Yeah, you don't measure it, you don't know.
At least every month, or maybe for some of you,
maybe every quarter.
And if your accountant is good, they would be happy,
'cause they wanna see you do well.
They wanna see you do well.
Not, they wanna see you do well.
We do it, ask question.
Let me ask you a question.
Listen to this, if you meet with accountant,
let's say once every month,
you ask these questions, you look at the financials,
in let's say three months or six months, a year,
are you gonna be smarter?
Would you have a better understanding of your numbers?
That's like free education.
They're doing your books anyway.
You might as well ask them some questions.
That's what I'm talking, it's free education.
That's awesome!
That is so awesome.
- [Narrator] 10 times your finances,
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