There's a lot of entrepreneurs that message
me and say, "Pat, one day I'm running a billion dollar company." And I'll send a message back and say, "How?" And they say, "That's why I need your help,
to build a billion dollar company." You see, saying that statement is exciting
because you know, it's very similar when we're excited and we're inspired, we watch a video,
we watch a movie, maybe a documentary and say, "I'm going to be the next this, I'm going
to be the next. . . I'm going to build a billion-dollar company. Then comes the how-to, the logic later. Then we're stuck. And then we give up. It's like, it's important you need the emotion,
it's like when you fall in love with a girl and you say, I love you so much. This is great! And then the emotion leads to sex and then
you have a baby, then you say, how do I raise this kid? Well, that's the real work. The same exact principle. I'm going to build a billion dollar company. How am I going to build this company? So, that's one thing to keep in mind. There's nothing wrong with that. We need more inspiration, more motivation. But today I'm going to give you a little bit
of logic to be thinking about. First of all, before I build a billion dollar
company, I got to build a million dollar business. And how do I get to a million dollar business? How do I get to a 10 million dollar? And how many companies are there that are
really doing this, and how do they think? I can tell you for myself, I went from starting
the company, and from scratch, nothing, 100% my savings. Didn't get a loan from anybody. Didn't go raise capital. Nothing. 100% all my savings was put into it. Every single penny I had was put into the
business. And we took that from there now to, you know,
we're getting offers of $100 million for the company. And I went from zero to $100 million in seven
years. And so, I'm going to talk about some of those
principles for you to be thinking about. Then at the same time, I want you to be seeing
this here on how many billion dollar companies are out there. So here's what it is. There are 30 million companies in America,
that are registered in America, 30 million companies. 96% of them gross less than a million a year. Keep that in mind. 96% of them do less than a million dollars
per year. Only 4% do more than a million dollars per
year. That's 1.2 million companies do a million
dollar a year or more in revenue. .4% which is 120,000 companies do more than
10 million. Out of 30 million, only 120,000 do over 10
million dollars a year in revenue. Let me explain to you what that means. Out of all the people in America, to make
six figures, you're in the 20th percentile. 20% of Americans household make a six figure
income. Now, the 1% number, "I want to be a one-percenter,"
- a one-percenter is shy of $400,000 a year income. We're talking about .4% of companies do $10
million or more per year. Then .0006, that's 18,000 companies do more
than 50 million. This is like a prime. If you're here, you're good. If you get over 10 million, you have respect
now from peers. 50 million, there's only 18,000. If you want to get to .00009%, 2500 companies
do more than 500 million dollars of revenue per year. And then you have the ultimate Fortune 500
companies. That's .00002%, you're doing more than 5 billion
per year. And this is the top 10 currently right now
of Fortune 500 companies. #10 is AT&T, then it's Ford, then GM, then
CVS Health, the United Healthcare Group, then McKessan, then Berkshire Hathaway, then it's
Apple, then it's Exxon, then Wal-Mart, number one, in America, 2.2 million employees in
the world, I think 1.6 million in America is what they have. So, now, what is the biggest difference between
these guys [more than one million] and these guys [less than one million]? The majority's under a million. How do I even get to a million dollar business? What's the difference? What's the difference between these guys [more
than 10 million and more than 1 million] , because that's 4% and that's .4%. What is that? That's what we're going to talk about. So first things first. When I had a group of these entrepreneurs
that flew in a couple of weeks ago from all over the world, they came from all over the
world, they won the contest for us getting to 100,000 subs, and I'm, you know, most likely
when we get to a quarter million subs we'll put the same contest again for people to fly
in and we'll do the same structure, maybe at a different place. But we went for hours after hours dissecting
businesses. And the first question I asked all the entrepreneurs
was the one thing that most people don't have in mind. The first question I asked. I said, I need you to tell me clearly what
your vision is with your business. What is your business with your business? Because in reality, most of them, 96 percenters
don't have any idea what they're doing. They don't even know why they started a business. It's generally just pure excitement, enthusiasm. I hate my boss. I hate my job. I don't ever want to work for anybody else. I want to start a business. That's pretty much how it starts, right? But if you want to get to the higher level
and build a billion dollar company or something that maybe one day will be valued at a billion
dollar company, you need to be very clear about what you want. What is your vision? What is your long-term vision? What are we doing? What are we doing five years from now? What are we doing 10 years from now? What do you want to be? Who do you want to be? Where do you want to be? Is it clear to you? Do you know exactly where you're going? Do you know exactly what you want to do? I did a video last week and it was called
the biggest mistake marketers make. And in this video, the biggest mistake marketers
make, I explained how everybody wants everybody to be their customers. They want to appeal to every single person. If you haven't watched it, you've got to watch
this video. But the ones that do very well, they understand
exactly what clear vision they have, who's their customer and they stay in that lane
the entire time. So the first thing I will tell you to build
a big company is you've got to have a vision. I remember the night when we had a meeting,
September 23, everybody talks about it all the time. And I pulled in the agents and I told them,
we are starting a new company. This is the first thing I told everybody that
night. Till today, everyone talks about it. I got up, and I said, "There's a 90% chance
we're going out of business within six months." That was my opening line. This is recorded. There's a 90% chance we're going out of business. My wife was standing in the back. We've just been married for three months. My father's telling me, "Don't do it!" I said, "I'm putting every single dime I've
ever worked for and saved into this deal. 100% of it. Because I'm crystal clear of the vision of
what we're gonna be doing." I don't know what it is, but this is very
crystal clear. Here's what we got to do. This is what the industry needs. This is what we're going to be doing. And I cast the vision. And you can cast the vision and try to motivate,
but if it ain't clear, everyone knows it. This was a very clear vision. And we had some that didn't want to take up. And I told them, if you don't want to do anything
like this, I fully understand it because we're going to have a lot of problems the first
year, two years. And if you can't handle that, go with a bigger
company. If you do want to go with us, mark my words. Every day, every night, we're going to bust
our tails til this thing becomes a reality. There's a certain sense of vision and clarity,
the bigger the business is being built, and there's something that's deeper than just
let's build a business together. #2: Patience. You've got to have patience. But not patience, because there's two different
types of patience that are sold to people. There's one patience that's like, "Listen,
be patient. Everything's going to be okay. Be patient, everything's going to be okay. Be patient. You're young. Just be patient. Just be patient." I don't believe in that. Here's why. My father, who raised me and I would give
him credit to helping me become a leader - there's a lot of great men in my life that have impacted
me, many of them. And one day I'll do a video and I'll list
them. My father's at the top of the list, but I'll
list these men, not in any order, how they impacted me. But my father was always the opposite. My father wasn't saying, "Be patient. Be patient." My father was, "You're going to be 65 years
old tomorrow, what are you doing? How many times do you need to go to the nightclub? Let's go already!" I'm like, "Leave me alone, man. I'm 22 years old! I'm 21 years old! I've got to live it up!" How many more girls you want, Pat? How many?! How many more girls do you need? I mean what do you need to feed your appetite
already? Dad, what is wrong with you? Right? There is that part where people say, "Just
be patient." My dad wasn't that. My dad would say, "Let's go. What are we waiting for? Let's go. Let's go." And by the way, he was like this since I was
a kid. He'd wake me up in the morning with water
spraying on my face. Let's go wake up! And he was never in the military. Wake up! I'm like, Dad, I want to sleep five more minutes. Oh really? No problem. I knew what that meant. He would go and bring the spray. No hesitation [spray, spray, spray]. He would wake me up. You say, "that's abusive!" He taught me to be aggressively patient. There's a big difference between patience
and aggressively patient. What's patience? Man, it's going to be okay. Just relax. Oh, I'm just going to go home. I had a bad day today. Because I'm going to be patient. Oh, it's all good, man. Tomorrow it's another day. It's another day! It's another day! You know how many times you can say it's another
day until you're 80 years old? That's about 18,000 times. I don't know how many days it is. However many times. Eventually you're 68 years old. What? Another day? It's another day. It's another day. It ain't another day. No, no. It's another day, once I come home I'm so
tired, I don't even make it to my bed. I sleep on the floor. Yes. You can be patient. That's aggressively patient. So not just be patient. Be aggressively patient. #3, adapting and adjusting. Here's why. On this list I wanted to put product. I didn't put product on here. Here's why I didn't put product. There's a lot of companies that don't have
the best products in the world that are multi-billion dollar companies that we use regularly. They don't have the best product. How did they do it? It's adapting. It's adjusting. It's seeing what the market demands today. It's seeing what's needed five years from
now. It's knowing as the quarterback you're playing
and all of a sudden you notice it's third down and three, and you know they know what
they're calling. They're going to call a blitz. And you notice that the two linebackers step
up, maybe corners came in a little bit. Safety backed up. You look at one of your guys and you say hey,
I'm calling audible. You change it up. Fullback comes to the back. You go to the back, you go this way, and the
next thing you know, this guy opens up. Boom, he runs. You throw it. You've got a touchdown. And you have to call an audible because you
caught something, you read something, right? You're looking at everything that's moving. Same exact energy. You've got to have if you want to build a
bigger billion dollar company, or even a 100 million dollar company. You've got to have that eye set to know that
you got to adapt and you've got to adjust. Point #4, sticking to your philosophy. Sticking to your philosophy. Listen. Everyone says the greatest college basketball
coach of all times is John Wooden. It took him 29 years to win a championship
after coaching for 29 years, without winning a single thing. Then he won, what is it? 11, he won. 29 years he was just an average coach. Let me say that one more time. 29 years he was just an average coach. 29 years. Then he's John Wooden. I was there the night he passed away at Ronald
Reagan hospital. His pastor's a good friend of mine, Dudley
Rutherford. We were there, when he passed away, at the
Ronald Reagan hospital. 99 years old. Everybody's coming to visit this guy. He was everyone's father figure. People loved this guy. 29 years he was just a regular coach, until
he became a champion at 29, 30 years of coaching. Then he's considered the greatest. But for 29 years he was a nobody. Why? What happened? He stuck to his philosophy. By the way, his philosophy is completely different
than others. No cursing. There was no cursing with him. He is not about the best player type of guy. He's about the team, and give me your best. I want you to try your hustle, rebound, all
this stuff. He had very basic principles. Improve. Beat your prior best. Focus on how you can improve. I need you to play defense. I need you to hustle. I need you to give the best screen. I need you to be a good teammate. I need you to be a good man. I need you to focus on your character. I need you to. . . That was his philosophy. Then you've got a coach like Jimmy Johnson,
Dallas Cowboys. And before Dallas Cowboys, he was coaching,
was it the Miami Hurricanes? You know what kind of players he liked? Here's what Jimmy Johnson liked. He liked tough guys. Give me Michael Irvin trouble makers. Give me crazy cursing ladies and Jimmy had
a reputation as well. Give me those guys is what I want. Give me a Leon Lett, give me a Michael Irvin,
give me an Emmett Smith. Give me some crazy players and let's go to
war against the enemy. And he won championships. And it hasn't happened since him, even though
people say, "Well, Switzer won a champion. Well, it's really not him. It was really him. And Switzer was a good coach as well in college,
when he had different people he was doing. What is the point? Stick to your philosophy. You got a philosophy, you stick to it. The more you change your philosophy, in your
business and your company, you're not giving it enough timeline to create momentum. Philosophies need time to create momentum. Constantly changing philosophies, then you
ruining your long-term possibilities of having high returns on your business. #5, leadership. You know what's crazy? You know what's crazy? I want you to think about this. I went on YouTube about a year ago, a year
and a half ago, and I typed in the word, "leader." And then Mario and I did it again just recently. I said, guys, look how insane this is. Look how insane this is. Go on YouTube and type in the word leader,
or leadership. There is no one even cares to want to study
leadership online. We did videos and we put title leaders, how
to be a great leader and all this stuff. It would always be, people wouldn't click
on it because the title's not attractive. It's like, whatever. I know what it is to be a leader. Set an example and all this other stuff. Listen. Let me tell you. I did a meet at Oheka Castle this past week. We rented the entire place. It's $150 million property. Gary owns it. Very classy man. We rented out the entire place, 32 rooms. And I brought 60 people in with their spouses. A total of 60 people. We had dinner, food, all this stuff we did. And one of the nights, while we're there,
I said, Look, there are a lot of great speakers from stage. There are a lot of people that do very good
jobs speaking from stage. But you don't build big companies because
of how great you speak from stage. You build big companies because of how great
you are behind closed doors. That's how you build a big company. When you say, you know what? John, in my office, let's talk. What's your problem? What's going on? What's bothering you? You're not the same. What is going on? Did I do something? We need to talk about it. What's up? I don't like your behavior, man. This is effecting other people, and I heard
you're talking negatively about somebody. Are you okay? I don't remember you being like this. Oh, Pat, you just. . . that's leadership. And if you think this is just being on the
cover of a magazine and I'm going to be cool and I'm going to be a celebrity, and my cousins
and my guys that I went to school with, I'm going to be Mr. Cool, you've completely confused
the concept of building a big established company. Because it has nothing to do with you. It has all to do with the team you're building. And if you don't know how to lead a team,
you're not going to recruit the right talent. You're not going to keep the right talent. You're not going to drive the right talent. You're not going to know how to push the people,
competition, overcoming enemies, lawsuits, this is all leadership. Negotiation. It's all leadership. It's all leadership. So, you better believe Steve Jobs was a great
leader. Eventually. Maybe oh, the first time he was. . . I still think even though he was at that
time because he was chippy, he just wanted it so bad and nobody understood him. You know, it's like a younger Tony Lorusso
for some of you guys that follow sports. Next, number six. Marketing and positioning. I'm going to do a video on positioning to
explain positioning a little bit more because I don't want to. . . that's a whole episode by itself. Marketing and positioning. It's a little bit on what I talked about in
the last episode when I said the biggest mistake marketers make, with who do you want to be,
market yourself and position yourself and stay there. How are you going to market yourself? You know, Apple was very big on how they marketed
themselves. Think Different. This is who we are. We are not like everybody else. But man, your computer keeps giving you problems. It doesn't matter. We're different. I'm telling you, computer gives problems. We're different. It sucks! We're different. Eventually, guess what we bought? We're different. And now they're the third I think biggest
company in America because we finally bought the fact that Apple is simply different. They market different. They launch different. they position different. Their computers were $3,000 and you can buy
a $1,000 computer and guess what they said? I don't care. Don't buy our computer. And what do we do? We bought their computer. I don't care, I'm not going to put Microsoft
Word and all this stuff on here. Don't buy our computer. We still bought it. I don't care, I'm not putting flash on our
computer. We still bought it. We still bought it. Because it's positioning and marketing. Next, #7, discipline. So what's discipline? Discipline is personal discipline, personal
life discipline, your financial discipline, how you handle your money discipline, when
you buy the bigger items for yourself discipline. I remember the first thing I told my wife
when we started the company, I said, "For five years we're not buying a house." Babe, what are you talking about? I said, for five years, I don't even want
to talk about buying a house. Zero. Nothing. We have money. We're not buying a house. 100% in the business. That took discipline. It wasn't easy, because we could afford to
buy a house. But it's discipline. Five years, we put all money into the business. Discipline. Discipline is coming in, working, after big
victory, you had something great happen. You want to say, oh, man, I am King Kong. You got to come in and be disciplined. Discipline is every day coming to work. I can't tell you how many people just say,
Well, you know, I don't come to work. I work from home. Really? If you want to be a four-hour workweek, all
good. That's your MO. All good. But I don't know who you want to be. I'm talking to people that want to build some
companies. And by the way, Pat, have you ever. . . I've never ran a billion dollar company. You know, I was part of a billion dollar company. But I started a company and took it to 100
million. And that's what we've done. A valuation of around 100 million dollars. But hey, what's the goal? I'm talking to people that want to be on this
conversation here. Some of you guys could be a 15-year-old guy
watching this that studies religiously all these Valuetainment videos. Seven years from now he could build the next
billion dollar company. You. I'm talking to you. Not to the other guy. To you. To you, who I'm talking about. That's who I'm talking to. I'm not talking to the four-hour work week
audience. The four-hour work week audience, there's
plenty of YouTube guys for you. I'm not the guy for four hour workweek audience. When I say entrepreneur, to me entrepreneur
is somebody that starts a business with employees and there's a product involved, that we're
selling. The product is not a book or a video on YouTube
for me to make money with. No, there's a real, legitimate business that
we're running. Real, legitimate business that we're running
is what I'm talking about. #8, Opportunistic. You've got to be opportunistic. You know, certain things will come up. What is opportunistic? Look at industries that have problems. Don't be like everybody else and follow the
curve. You know, I got involved in an industry that
nobody wanted to touch. You know, when I would tell my friends, I
said, Hey, what are you going to do? And my friend would say, I'm starting a startup
that's for online dating. That's sexy. What are you doing? I'm starting an online app for nightclubs. That was a very cool idea. That was sexy. What are you doing? I'm starting an online app for people that's
like Uber for dentists. And it's only $99. You don't need any. . . I mean, that's a cool idea there. Okay, Pat, so what are you doing? I'm selling life insurance. I'm sorry, come again. What are you doing? I'm selling life insurance. And then all of a sudden, everybody disappears. You see, but I love it. It drives people crazy, doesn't it? Like even right now some of you are, Pat,
what do you sell? I chose to be part of the life insurance industry. Here's why. The industry needed help. Nobody was wanting to revolutionize this industry
that's been doing business as usual for the last 40, 50 years. And we have disrupted the industry. And we're okay with that. We were opportunistic. We saw an opportunity, and we said, we're
going to make a difference in this industry. It's benefited a lot of people. You've got to figure out a way to be opportunistic. Next point, number nine. You need luck. There's luck involved. Fully luck involved. A lot of people say, ah, you know, luck. . . there's luck. You got to be at the right place, right time,
you meet the right people. You bring them on board, you recruit them. They become an executive. They do well. They bring an investor that comes in and introduces
you to a technology guy, and another guy that's a great coder, who builds a software for eBay
that they bring on board and next thing you know, you create this app, it speeds up everything,
boom, it takes you from a $50 million company to a $3 billion company. You need some luck. Now all that stuff still needs aggressively
patient, you're working. But there's luck involved in there. There's nothing wrong with getting lucky. And I'm going to say something here that may
sound crazy. You know, when, this year, this is going to
be a crazy comment to make. Look at 2016 and see how strange it is. Chicago Cubs won the world series. I mean, that's like, you know when's the last
time Chicago Cubs won the world series? The last time Chicago Cubs won the world series,
Alexander the Great was alive. I mean, it's been 1500 years. I'm being sarcastic. But you get the idea. You know who else won the championship this
year? Cleveland Cavaliers. Do you know when's the last time the city
of Cleveland won anything? A long time ago. Do you know what else happened this year? A guy named Donald Trump is a president. What the hell is going on in 2016? Very simple. You know what's going on in 2016? This is the year of the underdog. I don't know what's going on up there, the
gods of success, or the man upstairs, is watching, saying, I'm going to shock everybody in America
this year! Everyone in America is going to shocked this
year. If I told you the beginning of the year, January
1st, guess what, this year, Cubs are winning the World Series, Cavs are winning the championship,
Donald Trump's going to win the presidency, I'd tell you I'm going to bet a million dollars,
I bet a million, if I win, you give me a million, if I win, you give me a hundred dollars, if
you win, I give you a million dollars, would you take that bet? I would take that bet. We got Trump, Cubs and Cavs. What happened? Sometimes, sometimes, when the gods of success
want somebody to win, and there's some magic, destiny stuff - I believe that 100%. I really believe there's people watching down
and they're saying, "this person's been busting his or her tail, without anybody seeing it. Guess what? Here's a sprinkle of miracles happening. Put the right people around them and look
what happens." And all of a sudden, everything you touch,
gold. Gold. Gold. Gold, gold, gold, gold, gold. Man, this thing is so easy. No, no, no. You have favor, is what you have. There's something that's going on. In 2016, there was a strange energy in the
world. So you need a little bit of luck in business. #10, long-term thinking. You can't just be thinking right now. Long term. Billion dollar company, long term. 100 million dollar company - long term. You want to build a 10 million dollar company
- long term. You want to make a million a year? Long term. You can't just say, I'm going to be a millionaire
in six months. No, you can't. I'm going to be. . . I'm not saying you cannot. It does happen. How about this guy, Pat, the guy on the magazine
said he made a million dollars at six years old because he came out with. . . I get it. There's exceptions. Michael Jordan jumps 49 inches. I can go do calves and quads for the rest
of my life, I'll be lucky if I can jump 24 inches. I'm not jumping 49 inches. But the point I'm trying to make to you is
this. If you think long-term, and you're constantly
improving and adjusting, you eventually are going to have a shot at the big times, if
you do your part. Number 11, lots of battle scars that you've
got to handle. Now here's the difference between battle scars. Some will heal, some are healing, some may
never heal. Okay. You need to know that about battle scars. When you go in the ring, and you decide to
go at it with some fighters, they're also pros, you're going to have somebody who's
going to punch you, boom. You got a scar and that one healed. Then you got one, you get hit, boom. That one still takes a couple of weeks to
heal. And then sometimes you're going to get hit,
and you may break a bone that forever stays a little bit. You can heal, but it's got a little bit of
thing that changes. In the world of business, you're going to
have to slay a lot of dragons. In the world of business, you're going to
have to face with some heavy weight battles, maybe you're only a middle weight going to
a guy twice your size, and you've got to be able to hang with them. That's the big boy club, the big girl club. This is not the friendly ward. The negotiation rooms up there are not, how
are you? How you doing? How's your family? How's your wife? How's your husband? How's your kids? No. How much money is this going to make us? That's the negotiation. Things change a little bit. You've got to be able to hang in those rooms. And last but not least, last but not least,
and this is the confusing one for most people. Here's last but not least. It cannot be about the money. Crazy, huh? It cannot be about the money. If it's about the money, you'll stop at some
point, if it's about the money. If it's simply about I'm going to build a
billion dollar company. I'm going to put it in their face! You'll stop at some point. Then what? Then there's emptiness. What is it about? But it can't be about the money. I can't wait to be a millionaire! And then what? It's got to be about improving something. It's got to be about a vision. It's got to be about changing something. It's got to be about correcting an injustice. It's got to be about finding a way that's
going fill a need that another person is not doing as good as you are. it can't just be about the money. And I've got two books to recommend you, right
now. When I saw Dennis writing on his hand, that
pen was the marker for me. I got two books to recommend, that I want
you to read. One of them, one of them is by Andy Murray. He wasn't the founder of Intel, but this guy,
he just passed away, and I've recommended this book in a couple of videos in the past
before. You've got to read this book, if you haven't
read it. It's an older book. Some of the concepts, stories are older. But you've got to read it. It's called Only the Paranoid Survive. Only the paranoid - the higher you go, you
got to be a little more paranoid, Only the Paranoid Survive. Because when you have success, sometimes you're
so confident, and you believe in yourself, and then all of a sudden you're Mike Tyson
facing Buster Douglass, and oh my gosh, I just got knocked out. Okay, because everybody at that level is a
pro for a reason. Right? When you see these best teams in the NBA,
they typically lose to who? You know who they lose to? The worst teams. You know why? Because they came out like, "we're going to
kill them. I'm going to score 50 points tonight." Those guys that are the worst team, they're
still better than everybody else who are amateurs. They're the worst professionals. But they're still professionals. You're facing professionals, you need to be
ready for it. So one is Only the Paranoid Survive. The other one is called Competition by Michael
Porter. It's about strategy. I think it's called Strategy Execution, something
like that, by Michael Porter, that you've got to read. He's a Harvard professor, good content that
he has. Because you need strategy. You need to be paranoid, and all them will
pretty much give you some concepts on what to do for you to build a company that maybe
one day could be valuated at a billion dollars, which is kind of cool to be a part of that. But it can't be about the money. Alright, here we go. This pillow's going to retire here in 2016,
and we'll bring a new pillow. If you haven't subscribed to this channel,
because somebody shared this video with you, please do so. And if you're one of these people that watch
these videos week after week and you haven't subscribed yet, c'mon, man. You got to subscribe to this channel. We've got to get to a million subs and we
need your help. You know who you are. Take that mouse in your hand, and go wiggle
it all the way down to the subscribe button. Click on that, and click on the alert button
right next to it to be notified every time we do a video. And by the way, I love all your comments. Do comment. I read your comments. I don't know what time, typically it's 2:00
in the morning or 4:00 in the morning that I read the comments, but do post your comments,
questions you may have, on the bottom as well, and again, if you're watching this video on
a complete different website, and you want to come back to find this video, find other
content, you can always come back to PatrickBetDavid.com. Boom, I haven't done this. . . [ding] it still works. Let's try it one more time. [ding] It still works. I thought it was broken for a while. Apparently it still does work. Anyways, thanks for watching everybody, take
care, bye bye.
