- Now let me give you a model.
A what? A model.
There are four levels of business up.
If I get into it, this is interesting.
Actually check out this from Iman.
The Facebook. I love it.
I gotta read this out loud.
So this is from Iman.
So Entrepreneurs dream, okay.
Here's entrepreneur.
I'm going to start my own business
so that I can create my own schedule
enjoy unlimited earning potential
do what I love and make all my own decisions.
It's going to be awesome!
Well, entrepreneur's reality.
Sure, I can meet you at 6:15am, no problem.
Because if I don't make this sale,
I may be homeless in two months.
(audience laughter)
Which would suck because then I would have
to do all of the minute business administrative tasks
that take up 95% of my time at a broken desk
in a shelter.
I wish someone would just tell me what to do
so that I don't have to keep making
all of these hard decisions.
Look how relaxed that check out person looks.
Grocery bagger, right?
Maybe I should give up and get a job in a supermarket.
I was just laughing out loud when I saw that.
Wait, I would get bored. Never mind.
I'm gonna keep working on my business
and it's going to be awesome.
I will create my own schedule,
blah blah blah.
How many of you relate to this?
Yeah, that's fine.
Let me ask you a question.
Why are you in business?
Tell me, why are you in business?
Just yell the answer.
Why are you in business?
Okay, good.
Why are you in business?
- [Audience] It allows me to achieve my life's purpose.
- Achieve your life purpose. Very nice.
- [Audience] The future is not in somebody else's hands.
- So you're in control of your own destination.
Very good. Destiny.
What else?
- [Audience] Freedom.
- Freedom. You want freedom. Very good, very good.
So how many of you got into business
because you want more freedom?
But how many found that when you actually
get into business, it's the opposite?
You actually have less freedom and make less money.
So what's going on here?
So we can see other people making a lot of money
and have this dream ...
How many of us feel like something is missing there?
That something is missing?
Yes?
I'm gonna tell you what exactly is missing.
There are four levels of business.
How many?
- [Audience] Four.
- The first level is what I call Technician Tammy.
What is it called?
Technician Tammy.
So Technician Tammy, she focused on survival.
What does she focus on?
Survival.
So as Technician Tammy, you are trading hours for dollars.
So a bookkeeper, a consultant, an accountant, a lawyer.
You could be making, you can trade, make a high income.
But at the end of the day, if you stop working,
your income stops.
If you stop working, your income stops.
The most common thing that a Technician Tammy would say
is I'm exhausted.
I need a day off.
I don't want to work on weekends.
I haven't taken a vacation in three years.
I'm not making enough money.
I'm burned out.
Most common thing.
And here's what, let me demonstrate.
Here's what Technician Tammy looks like, okay?
It's a seesaw. Okay?
You do the work, do the work, do the work, do the work,
do the work, and you chase the work, chase the work,
chase the work. And you do the work, do the work,
do the work, and then,
huh, catch your breath.
And you chase the work, chase the work, chase the work.
That's what it is.
Incomes ups and downs. Ups and downs.
You're getting paid for your time,
and not for results.
Getting paid for time, not for results.
Technician Tammy. That's level one.
Level one.
And that's what a lot of entrepreneurs,
they stay in that level one.
And they don't understand why.
And they're doing all these things.
And then they're level two,
and so much of entrepreneurs you know often
they get to level two.
Level two is what I call, you have,
Manager Michelle.
What is she called?
- [Audience] Manager Michelle.
- Sorry, what's it called?
Manager Michelle.
As a Manager Michelle, you focus on security.
What do you focus on?
- [Audience] Security.
- Security. Security.
The most common thing that I imagine Michelle would say
is if you want something done, you ...
- [Audience] Do it yourself.
- There you go. You want something done, do it yourself.
I say it's better to have 1% of 100 people's effort
than 100% of my own.
The most common thing as a Manager Michelle.
Manager Michelle values independence.
Doing things her way.
Wanting to be right.
The most common thing that common Manager Michelle would say
is I can't find good people these days.
I can't find good people these days.
How come they don't care just like I do?
I told her a million times,
but she never gets it.
They're so stupid, these employees.
As a Manager Michelle, you're running a business,
you've got some people working for you,
or with you,
and here's what Manager Michelle looks like.
Watch.
It's this.
That's what Manager Michelle looks like.
You are running in circles.
Putting out fires.
Fixing from all the mistakes there from
the people you employ,
thinking that they work for you,
but in reality, they don't work for you,
you, you work for them.
So as a Technician Tammy,
you don't have a business, you have a job.
You might think you have a business,
no you have a job.
As a Manager Michelle, you don't own a business,
you're business owns what?
You.
You're business owns you.
And that's 97% of the entrepreneurs operate on this side.
97% of the entrepreneurs operate on this side.
And they don't even know why,
and they don't understand how come my business doesn't work.
Because the business model doesn't work.
The intention right from the beginning doesn't work.
Because you're doing the work,
you're doing the work,
or you hire some people and you make a little bit of money.
As a Manager Michelle, you have some leverage,
but you have no freedom.
You have no freedom.
If you cannot walk away from the business.
You cannot walk away from the business.
And that's on this side.
And now, let's talk about the 3%.
The small percentage of entrepreneurs, they graduate,
and they move up to the next level.
Level number three.
You have what I call Owner Olivia.
What is it called?
- [Audience] Owner Olivia.
- Now Owner Olivia, she focuses on growth.
What does she focus on?
Growth.
Now you are not doing the work,
but you have to be physically there in the business.
You're not actually doing the hands on technical work.
But you have to be there monitoring the business.
There's a big difference.
Now you might be, so the most common thing
that an Owner Olivia would say is this.
How can I empower my team?
How can I put some systems in place
so my business runs more smoothly?
How can I maybe put in a marketing
or client attraction system that consistently
and predictably attracts clients to my business?
How many can see there's a shift in mindset?
It's very, very different.
You are not just focusing on I wanna make a few more bucks.
I wanna make more money.
No, you're thinking, you're way more strategic.
Is what I'm doing today gonna lead to where I want to go?
It's, here's my goal,
you reverse engineer,
and say this is what I want to create,
and this is what the business looks like.
Now the biggest difference between an Owner Olivia
and a Manager Michelle is this.
Now if Owner Olivia ...
If Manager Michelle.
If Manager Michelle takes a two week vacation,
how long?
- [Audience] Two weeks.
- Her income would drop significantly.
Or when she comes back, it would be a mess.
Okay?
Owner Olivia takes a two week vacation, she would come back
and business is just fine.
Income stays the same. Revenue is the same.
The employer doesn't even know you were away.
That's the difference.
And that's level three.
That's level three.
Then level four, you have what I call,
level four, Entrepreneur Eva.
What's it called?
- [Audience] Entrepreneur Eva.
- Entrepreneur Eva.
Now as an Entrepreneur Eva,
your focus is totally different.
As Entrepreneur Eva, you're focus is freedom.
What do you focus on?
- [Audience] Freedom.
- Freedom.
The most common thing that an Entrepreneur Eva would say is
what's my next big idea?
What's my next big idea?
How can I find someone to run my company?
How can I leverage my contacts,
my resources, my capital,
and get the highest return?
It's a totally different in focus.
It's a different in mindset.
It's not even on the same planet.
As an Entrepreneur Eva,
you have total leverage and you have total freedom.
Now you're not doing the work
and you don't even have to be physically there.
You're not doing the work,
and you're not physically there.
The people ask me the question,
well Dan how can you run 16 companies?
I tell them, because I don't run 16 companies.
Every single company, I've got a partner,
an operator, running the companies.
I can't manage.
I learned that many years ago.
I'm a lousy manager.
I suck at management.
It's not my thing.
I'm a concept guy.
I'm a strategic thinker.
That's the highest and best use of my time.
And you have to ask yourself the question,
what is the highest and best use of your time?
And most entrepreneurs cannot run
one measly business they have.
And they can't grow in this,
a lot of them can't even make a profit,
they don't know why.
They don't even know why.
How many follow what I'm saying so far?
Yeah?
How many are a little bit shocked?
Okay, good.
Shocking is a good thing.
Because I can see the look.
I can see the look.
Okay. So you're at the four levels.
Different levels, in fact,
I wanna give you two minutes.
How many minutes?
- [Audience] Two.
- Find someone to discuss where you're at right now,
be honest, and where do you want to be?
Where are you at now, and where do you want to be?
Two minutes, find a partner,
preferably someone you don't know.
Two minutes, go.