And for those who don't understand QLA,
maybe can you give us a one minute version
of what exactly is QLA. How does it work?
QLA stands for Quantum Leap Advantage.
An advantage where you can take an idea,
a thought process, a dream and turn it into reality.
But the basis of it is that right now,
we have been in a free money environment
for almost 10 years.
Meaning the bank interest rates are low,
and when bank interest rates are low,
the opportunity to buy revenue,
and it's easier to buy revenue than create it.
Because when you buy revenue, you're de-risking it
because if a guy's got a million dollars in revenue,
he may have spent three million dollars
creating that million dollars.
And when we buy a company from a motivated seller,
where free cash flow covers debt service,
with no equity involved,
it's like a bird's nest on the ground, it's Pandora's box.
And for the last several years,
because of the free money that's been in existence,
because of the almost depression from 2008 and 9,
we flourished.
But QLA works in an up market down market,
but we're buying revenue from motivated sellers
because, for example,
we passed a Chinese restaurant here a few blocks ago.
That guys kids,
don't wanna have anything to do with a Chinese restaurant.
So he's got no right of succession,
he's got nobody to leave it to.
The kids don't want it.
He's not going to be able to buy it because there's what,
40,000 Chinese restaurants in Vancouver.
And so, we help them with his retirement plans, so to speak.
And we are his, end result to be able to buy him out,
not just him but anybody.
And then we roll up five or 10 or 15 or 20 of these
kinds of restaurants, and then we sell it to, you know,
a big conglomerator that has big restaurant chains,
and we hit the cash register.
And the model is built to do this
every three to seven years.
Three years if you do everything perfect.
Which we both know, hardly anybody does anything perfect.
No, never.
In six or seven years,
If you're good. If you're good.
You don't have a lot of mental bullshit, if you're good.
Yeah, yeah, and but even if you're dumb
it's eight or 10 years.
Yes, and now for those who are watching this,
they may be thinking, cus now everybody's talking about
I'm starting, I'm an entrepreneur, right?
Anyone can put it on Instagram.
Correct. Right?
Yesterday they were unemployed, today they are entrepreneur.
Correct.
So, it's kind of funny to see that.
When I first heard about the concept
internal growth verses external growth,
which internal is growing through marketing,
basically a bunch of marketing.
Organic. Organic right?
External which is like you said buying revenue.
Back then, again I couldn't appreciate the genius of it.
Cus I was like ah, I had a lot of like, just lower self,
mental barrier where I don't have money to buy company.
Why would they sell it to me?
Why would they sell to a young guy?
How would that work? How will I manage these people?
Like I had all of this bullshit in my head right?
But, what I realize is even now with baby boomers,
a lot of them want to sell the business.
There are a lot of opportunities,
and you could actually acquire business
with none of your money.
I know it's hard to believe
if you don't fully understand QLA,
you're like oh that's impossible.
No, it's very very possible.
Maybe talk to us about the, about money.
Well first of all, on my website,
we developed something last year called QLA for dummies.
[Dan Lok] (laughs) That's beautiful, that's awesome.
Because as you well know,
I've been giving away all my product for almost 10 years.
Yes, yes.
But everybody, they come and say
but Mr Pena where do we start?
Because there's like
almost eight gigs of free material on my site.
Which a lot of it is on your site.
Yes, yes. On youtube too.
Okay, so we developed this QLA for dummies.
And it takes you step by step,
how to work through the site and how to do it.
But money right now is, the system is built on
OPM other people's money and other people.
Those are the two biggest levers in life that you have.
And right now, as long as the company is cash flowing,
meaning as long as it's making money.
If it's losing money, if it's losing 10,000--
There's a turn around right?
Yeah, yeah, yeah. Turn arounds is another thing.
After you've bought five or 10 companies that are profitable
then you can go find turn arounds.
But turn arounds is another level of sophistication,
as far as management's concerned.
Like, you know enough to turn around businesses now
cus you've been at it.
But when you first started,
You don't wanna do that. You don't wanna do that.
You're not good enough to do that.
No, no. Even the guys that've been at it a while,
aren't good enough to do it.
But right now,
the idea of buying companies that have cashflow
and that are in other words they're paying taxes
on some earnings that they have.
It's quite simple.
And again, it's all free on my website
and I challenge you to look at it.