Latest / Financial Survival Network / AI, Aviation, and Franchising - Cliff Nonnenmacher #6191

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AI, Aviation, and Franchising - Cliff Nonnenmacher #6191 · Financial Survival Network

• 0:00
  Speaker 1: Right now, I am hypersensitive, and I know you love
• 0:03
  Speaker 1: using AI, and I don't blame you.
• 0:06
  Speaker 2: I think it is a remarkable tool.
• 0:08
  Speaker 1: However, it is going to be the single greatest disruptor
• 0:13
  Speaker 1: of a lot of businesses, like accounting, like legal debt. Absolutely,
• 0:18
  Speaker 1: all these folks hiring all these third world country call centers,
• 0:22
  Speaker 1: all these folks are done.
• 0:24
  Speaker 3: They just don't know it yet.
• 0:25
  Speaker 4: You are listening to Carrie Letz's Financial Survival Network, where
• 0:29
  Speaker 4: you get valuable information you just can't find anywhere else
• 0:33
  Speaker 4: to thrive in today's trying times. You need the Financial
• 0:36
  Speaker 4: Survival Network now more than ever. Go to Financial Survivalnetwork
• 0:42
  Speaker 4: dot com and get your free newsletter and gift. Financial
• 0:45
  Speaker 4: Survival Network now more than ever.
• 0:52
  Speaker 3: And welcome.
• 0:53
  Speaker 5: You are listening to and watching the Financial Survival Network.
• 0:58
  Speaker 3: I'm your host, Carrie Letz. Well, if you thought about brand.
• 1:02
  Speaker 5: Lizing, if you thought about you're tired of working for
• 1:07
  Speaker 5: a corporation, you want to go go out and do
• 1:10
  Speaker 5: it on your own, then you want to hear from
• 1:12
  Speaker 5: my next guest. His name is Cliff Nnnenmacher. Hope I
• 1:17
  Speaker 5: got that right, Cliff.
• 1:18
  Speaker 3: Now though, now, now, hey, that's good.
• 1:20
  Speaker 5: Usually I asked first, but I forgot because we were
• 1:24
  Speaker 5: so engrossed in what you were doing. So you had
• 1:26
  Speaker 5: a career basically working for Morgan Stanley and investments, and
• 1:32
  Speaker 5: something happened in two thousand and three and you just
• 1:35
  Speaker 5: said no, mos tell us, tell us about your journey.
• 1:39
  Speaker 2: So that I appreciate it and thank you for having
• 1:41
  Speaker 2: me on the show.
• 1:42
  Speaker 3: I appreciate. I like listening in.
• 1:44
  Speaker 2: So going back, I've been an entrepreneur most of my life.
• 1:48
  Speaker 1: I was I've been an entrepreneur at a very young
• 1:50
  Speaker 1: age by mainly small businesses things that I've created, whether
• 1:54
  Speaker 1: it be food delivery or water sports, parasol boats, all
• 1:58
  Speaker 1: that type of stuff. And then I was making money
• 2:02
  Speaker 1: at a young age and I bought a satellite trading
• 2:05
  Speaker 1: system and I started trading stocks. I fell in love
• 2:08
  Speaker 1: with the concept, took my portfolio to Wall Street and
• 2:12
  Speaker 1: got jobs from all member firms, and I ended up
• 2:15
  Speaker 1: taking a position with At the time, it was Solomon
• 2:19
  Speaker 1: Solomon Smith Barney, as you know is now Logan Stanley.
• 2:23
  Speaker 1: So I was with a team we were managing back
• 2:26
  Speaker 1: in the Asian contagion. I know you're a very astute
• 2:30
  Speaker 1: with financial market, so I'm going back a while y
• 2:33
  Speaker 1: two k Asia Gatasian, I was manager on two hndred
• 2:36
  Speaker 1: and fifty million. I was with a group. It was
• 2:39
  Speaker 1: called Comprehensive Wealth Management, and I had one of those
• 2:43
  Speaker 1: bad boss moments and I really always wanted to go
• 2:47
  Speaker 1: back out on my own. I love financial services, don't
• 2:49
  Speaker 1: get me wrong, I love it. But I realized that
• 2:52
  Speaker 1: I think I might want to go back out on
• 2:54
  Speaker 1: my own. Had a bad boss moment. He made a
• 2:57
  Speaker 1: silly decision, in my opinion, I asked for a printer.
• 3:01
  Speaker 1: This is not a big deal. I asked for a
• 3:03
  Speaker 1: printer to be on my side of the building. There's
• 3:06
  Speaker 1: about fifty brokers. We were all share in one printer,
• 3:09
  Speaker 1: one leg smart network printer. Who's absurd? Yeah, sorry about that?
• 3:14
  Speaker 1: Yeah problem? So yeah, go ahead. Do you need to
• 3:17
  Speaker 1: tune something?
• 3:18
  Speaker 5: No, No, that's okay, go ahead, I'll just make a
• 3:20
  Speaker 5: note here, will edit accordingly.
• 3:22
  Speaker 3: Don't worry about it. Sorry, no problem. That was fun.
• 3:25
  Speaker 1: So we had this one printer networked with fifty brokers.
• 3:28
  Speaker 1: Every time I'd walk across the building and get my stuff,
• 3:30
  Speaker 1: it was gone. So I asked them for a printer. Said,
• 3:33
  Speaker 1: if you want one, get one yourself.
• 3:35
  Speaker 3: So I did.
• 3:36
  Speaker 2: The printer was two hundred and fifty dollars.
• 3:38
  Speaker 1: I figured out how to refill and re manufacture a
• 3:43
  Speaker 1: used empty toner cartridge and I actually started looking into
• 3:47
  Speaker 1: it and I found a company in Australia that reverse
• 3:50
  Speaker 1: engineered the toner, the inks I am agenta yellow right,
• 3:54
  Speaker 1: all of them, and the chips, even the secret handshake
• 3:57
  Speaker 1: chips at chip Resetters.
• 3:58
  Speaker 3: And I bought. I'm I'm like, you know what, I'm
• 4:00
  Speaker 3: going to buy.
• 4:01
  Speaker 1: This company from Australia, and I'm going to scale it
• 4:04
  Speaker 1: in the entire state of New York and Connecticut. And
• 4:07
  Speaker 1: that's what I did. I ended up leaving financial services.
• 4:10
  Speaker 1: That was my entrance into franchising. I scaled thirty six units,
• 4:16
  Speaker 1: sold it, moved to Florida with my wife, Nicole, and
• 4:22
  Speaker 1: my business partner and I justin came down here and
• 4:25
  Speaker 1: we started buying other small businesses, and we mainly bought failure.
• 4:31
  Speaker 1: We looked for blood in the street, like Warren Buffett says,
• 4:34
  Speaker 1: if you're not going to kick them when they're down,
• 4:36
  Speaker 1: when do you kick them?
• 4:37
  Speaker 3: Right?
• 4:37
  Speaker 1: So we ended up looking for failure. We would pay
• 4:41
  Speaker 1: the failed business, let's say, ten cents on the dollar,
• 4:44
  Speaker 1: immediately implement the franchise methodology, turn it around profitability, and
• 4:50
  Speaker 1: then sell it for a nosebleed multiple and do it
• 4:53
  Speaker 1: again and again and again. And we did it and
• 4:56
  Speaker 1: obviously generated millions of dollars in profits, and we created
• 4:59
  Speaker 1: a insulting company. From that came this revelation that most
• 5:05
  Speaker 1: people you know this better than anyone. Most people lack
• 5:09
  Speaker 1: investment discipline. They have no restrict adherence to anything, They
• 5:15
  Speaker 1: have no real due diligence process. They are highly emotional,
• 5:19
  Speaker 1: they're irrational, illogical, and they end up investing in things
• 5:22
  Speaker 1: they know nothing about. When it goes down, may sell
• 5:25
  Speaker 1: it and panic and lose money they never viewed as
• 5:27
  Speaker 1: a sale and buy more. If you think about the
• 5:30
  Speaker 1: average investor in the way they behave and why most
• 5:33
  Speaker 1: people are not wealthy, that attitude is in small business
• 5:37
  Speaker 1: and we basically found opportunities by buying those family businesses
• 5:42
  Speaker 1: and then growing them and selling them.
• 5:44
  Speaker 6: You still buying small businesses now at this point, now
• 5:48
  Speaker 6: we invest in the franchise, or so we make investments
• 5:52
  Speaker 6: in the franchise concept.
• 5:54
  Speaker 1: We try and find brands that are in that embryonic
• 5:58
  Speaker 1: phase where we could get a lot of value or
• 6:01
  Speaker 1: a significant percentage of ownership in the brand.
• 6:04
  Speaker 3: We'll do that.
• 6:05
  Speaker 1: But our core competency is our franchise consulting company called Frenocity,
• 6:11
  Speaker 1: and we help investors navigate this very daunting process and
• 6:16
  Speaker 1: help them identify what should I buy, what franchise should
• 6:21
  Speaker 1: I purchase, what should I invest in? What should I
• 6:24
  Speaker 1: be doing in this next phase of my life. Most
• 6:26
  Speaker 1: people just hate corporate America. I've been doing this twenty years.
• 6:30
  Speaker 1: I've never heard more hatred for corporate America than I
• 6:34
  Speaker 1: do today. And I think vaccine mandates and just culture
• 6:38
  Speaker 1: and DEI and all this.
• 6:40
  Speaker 3: I'll call it horseshit. You could edit it if you want.
• 6:43
  Speaker 3: I thank you. We're a family show.
• 6:45
  Speaker 5: But I just cursed for this second time in fourteen
• 6:48
  Speaker 5: years on my prior interviews, So don't worry about it.
• 6:52
  Speaker 3: All right.
• 6:53
  Speaker 2: It's just like it's nonsense. It's absolute nonsense. Thankfully, it's dying,
• 6:57
  Speaker 2: which it should.
• 7:00
  Speaker 3: Coin.
• 7:00
  Speaker 2: DEI is death to every industry.
• 7:02
  Speaker 1: It's the kiss of death, and you're starting to see
• 7:05
  Speaker 1: it now, so thankfully that's starting to fall apart.
• 7:08
  Speaker 2: But I think a lot of people just tired of it.
• 7:10
  Speaker 6: I thought DEI stood for didn't earn it, didn't That's
• 7:15
  Speaker 6: my fave too. I love that one.
• 7:17
  Speaker 3: Yeah, they didn't earn it.
• 7:18
  Speaker 1: It's yeah, it's just based on nonsense. There's really no metric. Yeah,
• 7:22
  Speaker 1: it's not a merit system.
• 7:23
  Speaker 5: Well, you know one thing though, I always like to
• 7:26
  Speaker 5: see a DEI pilot when I got on the airplane,
• 7:29
  Speaker 5: you know, because it just makes me feel good about
• 7:31
  Speaker 5: my country and myself.
• 7:34
  Speaker 3: Right, it's right. I always look in the cockpit. It's
• 7:37
  Speaker 3: so true.
• 7:38
  Speaker 2: That's the one area that I want to know.
• 7:41
  Speaker 1: It's like, it's like this guy asked me years ago,
• 7:44
  Speaker 1: back when I was in financial service. He goes, does
• 7:46
  Speaker 1: it really you talk about expense ratios? One percent, two percent?
• 7:51
  Speaker 1: Does it really matter? And I said, I have two
• 7:55
  Speaker 1: parachutes in my hands. One of them has a ninety
• 7:58
  Speaker 1: seven percent success rate and the other one has a
• 8:01
  Speaker 1: ninety eight percent success rate. Which one are you going with?
• 8:04
  Speaker 1: It's only one percent?
• 8:06
  Speaker 7: He's like ninety eight Of course, of course, why would
• 8:09
  Speaker 7: anyone shoot exactly, why would anyone choose a parachute that
• 8:12
  Speaker 7: has less reliability than the other one. So it's like,
• 8:16
  Speaker 7: percentages do matter, right, these things do matter? This whole
• 8:20
  Speaker 7: who's up in the cockpit. Where did you graduate? How
• 8:22
  Speaker 7: many flight hours? It all matters.
• 8:25
  Speaker 5: Oh yeah, yeah, it's so true, and it seems it
• 8:28
  Speaker 5: should be self evident, but not the purpose of us
• 8:33
  Speaker 5: talking together. But really it fits in will right. It
• 8:37
  Speaker 5: is very relevant that you got to have the right training,
• 8:42
  Speaker 5: and because you have to acknowledge your failings, you know
• 8:46
  Speaker 5: you don't have the discipline that you should because you
• 8:49
  Speaker 5: weren't trained to have it, So you better get it right.
• 8:52
  Speaker 3: That's right.
• 8:53
  Speaker 2: Look at Sully.
• 8:54
  Speaker 1: Look at this guy that land I mean, come on,
• 8:56
  Speaker 1: this guy is like a rock star landing this plane
• 8:59
  Speaker 1: in the US, and it's just remarkable what he's done.
• 9:02
  Speaker 1: I'm afraid that the lion's share of pilots could not
• 9:06
  Speaker 1: achieve that water landing.
• 9:08
  Speaker 2: I'm sorry, I don't I don't.
• 9:10
  Speaker 3: Yeah, I agree with you. I don't buy it, Carrie.
• 9:13
  Speaker 5: Hey, I have a friend who's a pilot for major
• 9:16
  Speaker 5: airline for forty five years, and you know, they just
• 9:21
  Speaker 5: don't make them like that anymore. Although you know the
• 9:25
  Speaker 5: art evolves in business too. Right, you want the Sully
• 9:29
  Speaker 5: to teach you what to do. I don't want the
• 9:31
  Speaker 5: guy who basically Sully fired, that's right.
• 9:36
  Speaker 1: Right, I want someone with battle scars. I like older doctors.
• 9:40
  Speaker 1: I take all that stuff I like. Yeah, I like experience,
• 9:45
  Speaker 1: and this is why people are trying to erase our
• 9:47
  Speaker 1: past so they can control our future.
• 9:50
  Speaker 2: I don't go for it. I want to learn from that.
• 9:53
  Speaker 3: Yeah it is. I think I's over now, but I'm
• 9:56
  Speaker 3: with you.
• 9:57
  Speaker 5: Yeah, you know that old joke, what do you call
• 9:59
  Speaker 5: the guy who graduated last in his class in medical school?
• 10:03
  Speaker 2: The best doctor?
• 10:04
  Speaker 3: Doctor? Right? Doctor?
• 10:08
  Speaker 1: Right?
• 10:08
  Speaker 3: So true? So you know, like you want to go
• 10:12
  Speaker 3: to the best.
• 10:13
  Speaker 5: So when you're looking at a franchise, okay, you get
• 10:16
  Speaker 5: in on them early.
• 10:17
  Speaker 3: What do you look for?
• 10:18
  Speaker 5: And what should a franchise e someone who's looking to
• 10:21
  Speaker 5: buy a franchise, what should you look for?
• 10:25
  Speaker 3: Yeah, that's it, that's great.
• 10:26
  Speaker 1: Now, most people don't ask that those specific questions. When
• 10:29
  Speaker 1: I'm looking at a brand, I'm starting with proof of concept.
• 10:33
  Speaker 2: How many locations do you have?
• 10:34
  Speaker 3: Two?
• 10:34
  Speaker 1: You have proven nothing, even though that location might be
• 10:38
  Speaker 1: doing a million. And let's say you know some area
• 10:42
  Speaker 1: of California with average household income of two point fifty,
• 10:45
  Speaker 1: you haven't proven that that concept can work well in Austin,
• 10:49
  Speaker 1: Texas or Tampa, Florida. So I really don't have proof
• 10:53
  Speaker 1: of concept with a small number of units operating in
• 10:57
  Speaker 1: a very specific geographic market. I then look at the founders.
• 11:00
  Speaker 1: I look at the executive team. I look at their
• 11:03
  Speaker 1: ability to support the franchisees. I look at the FDD,
• 11:06
  Speaker 1: the franchise Disclosure Document. I'm looking for background lawsuits, bankruptcies.
• 11:12
  Speaker 1: I'm looking for failure rate. I'm looking for the growth
• 11:15
  Speaker 1: of the model. And I'm looking at the financials of
• 11:17
  Speaker 1: the franchise or, which must be audited and included as
• 11:21
  Speaker 1: an exhibit in the FDD every single year that they
• 11:25
  Speaker 1: make their offering.
• 11:26
  Speaker 2: So I'm looking at a multitude of things.
• 11:29
  Speaker 1: Enfranchising support, support, support, proof of concept, the ability to
• 11:35
  Speaker 1: scale it in any market is important to me. But
• 11:38
  Speaker 1: then I have to match it up with the investor.
• 11:41
  Speaker 1: Who's the investor. The investors' high net worth will define that.
• 11:45
  Speaker 1: Let's just say they have a net worth of a
• 11:46
  Speaker 1: million and they're an engineer. I don't want to put
• 11:50
  Speaker 1: them in a sales organization unless they have more capital
• 11:53
  Speaker 1: to hire the skill sets that they don't have, which
• 11:56
  Speaker 1: is a big issue in franchising. People get attracted to
• 11:59
  Speaker 1: business says they don't belong in and That's how I
• 12:02
  Speaker 1: created wealth in the beginning, buying the failure you didn't
• 12:05
  Speaker 1: belong here, That's how we created fernocity. They bought businesses
• 12:09
  Speaker 1: they never belonged in to begin with, and because they
• 12:13
  Speaker 1: lacked discipline, they weren't really matching themselves with the right
• 12:16
  Speaker 1: brand or culture, and they didn't execute properly.
• 12:19
  Speaker 5: All right, So if I'm looking for a business, now,
• 12:23
  Speaker 5: what are the best areas? Do you think franchises?
• 12:28
  Speaker 3: Right now?
• 12:29
  Speaker 1: I am hyper sensitive and I know you love using AI,
• 12:32
  Speaker 1: and I don't blame you.
• 12:34
  Speaker 2: I think it is a remarkable tool.
• 12:37
  Speaker 1: However, it is going to be the single greatest disruptor
• 12:41
  Speaker 1: of a lot of businesses, like accounting, like legal. Absolutely,
• 12:46
  Speaker 1: all these folks hiring all these third world country call centers,
• 12:50
  Speaker 1: all these folks are done.
• 12:52
  Speaker 2: They just don't know it yet. So I am old
• 12:54
  Speaker 2: they're gone.
• 12:56
  Speaker 1: Oh they're going to be. They're not gone yet, but
• 12:57
  Speaker 1: they'll be one of the first to go. The systems,
• 13:01
  Speaker 1: the AI systems are so intuitive now they could route
• 13:04
  Speaker 1: calls and they could do basic tech support, basic answering.
• 13:09
  Speaker 1: I mean, look, look what you and I are able
• 13:11
  Speaker 1: to do right now on the fly. You could ask
• 13:14
  Speaker 1: me nearly any question, I'll have an answer to you
• 13:16
  Speaker 1: pretty quickly. It's remarkable. So when you ask me, yeah,
• 13:20
  Speaker 1: when you ask me that question, I'm looking for businesses
• 13:23
  Speaker 1: that are basically AI proof, and they're Amazon proof, They're
• 13:27
  Speaker 1: tried and true, and the services are performed locally. So
• 13:31
  Speaker 1: I love all things home services, non brick and mortar
• 13:35
  Speaker 1: home service brands, because I believe that people who can
• 13:40
  Speaker 1: use their hands and tools are going to be the
• 13:44
  Speaker 1: most protected asset class in a world of AI.
• 13:48
  Speaker 2: I believe that those but absolutely I do believe that.
• 13:50
  Speaker 1: I think that your average plumber is going to have
• 13:53
  Speaker 1: the income of today's attorney.
• 13:56
  Speaker 3: If you're not.
• 13:57
  Speaker 1: If you're a trial attorney, you'll be okay because again,
• 14:00
  Speaker 1: your feet on the street in the courtroom, if you're
• 14:03
  Speaker 1: a desk attorney doing basic evictions and basic legal work,
• 14:07
  Speaker 1: your toes. I use AI for free to evict a
• 14:10
  Speaker 1: tenant in the state of Florida. It gave me step
• 14:12
  Speaker 1: by step instructions. I didn't even need a lawyer, and
• 14:15
  Speaker 1: the guy was gone.
• 14:16
  Speaker 5: I gotta tell you a funny story about a This
• 14:19
  Speaker 5: is when I learned started learning the power of it.
• 14:22
  Speaker 3: Cliff.
• 14:23
  Speaker 5: So I used to pay somebody to write show notes
• 14:26
  Speaker 5: to all my podcasts because you know, it's time consuming.
• 14:31
  Speaker 5: It was a job I really did not enjoy. And
• 14:36
  Speaker 5: you know, then they came out with these note takers
• 14:39
  Speaker 5: for Zoom and it would basically build a transcript of
• 14:43
  Speaker 5: your conversation and it would summarize it. So I was
• 14:47
  Speaker 5: using that and then I said, wow, if I combine
• 14:49
  Speaker 5: it with chat GPT, what would happen then? And let
• 14:54
  Speaker 5: me tell you, Like, basically I let that person go.
• 14:59
  Speaker 5: I felt really bad because she was a very talented individual.
• 15:03
  Speaker 3: She was amazing. But you know, money is money, and
• 15:09
  Speaker 3: you know you got to you know, you're always.
• 15:12
  Speaker 5: Looking at control costs, right, so so I know exactly
• 15:17
  Speaker 5: what you're talking about here.
• 15:19
  Speaker 2: We're doing it right now.
• 15:20
  Speaker 1: Yeah, like right now where the transcript is being created
• 15:26
  Speaker 1: by AI as we speak every this machine is hanging
• 15:30
  Speaker 1: on our every word and we'll transcript this entire episode.
• 15:34
  Speaker 1: I mean, come on, we I agree with you. We
• 15:37
  Speaker 1: were paying a guy at John. I love you, I
• 15:38
  Speaker 1: think you're phenomenal. Just like Kerry said, we love the
• 15:41
  Speaker 1: people we work with an employee, but at the end
• 15:44
  Speaker 1: of the day, we're running a business. We were paying
• 15:46
  Speaker 1: John around fifty thousand dollars a year to be a
• 15:50
  Speaker 1: creative writer. Well, guess who is more creative than John
• 15:54
  Speaker 1: chat gptgpt right.
• 15:57
  Speaker 5: The most creative ever. And I've just written a book
• 16:00
  Speaker 5: I've used the AI. The books is based on a
• 16:03
  Speaker 5: series of interviews with this gentleman named Martin Armstrong, Leading
• 16:07
  Speaker 5: Economists in the world, leading forecaster, and I had fourteen
• 16:14
  Speaker 5: years of recorded audio with him, and you know it
• 16:20
  Speaker 5: was it would have been impossible to do it any
• 16:25
  Speaker 5: other way, but I summarized them and then I used
• 16:31
  Speaker 5: it to summarize right, and that was that so amazing stuff.
• 16:37
  Speaker 3: It really is so in my world.
• 16:40
  Speaker 1: I want to embrace it for productivity and of course
• 16:43
  Speaker 1: cost savings. I'm but as I'm advising clients, I want
• 16:48
  Speaker 1: them to be invested in businesses that will not be
• 16:51
  Speaker 1: disrupted by AI. I mean liberty tax. I think like
• 16:55
  Speaker 1: liberty tax, H and ur Doc I think they're toast.
• 16:58
  Speaker 6: I Kerry, I believe they're dead. Yeah, I know, yeah,
• 17:02
  Speaker 6: I think done even a question. No, I couldn't agree
• 17:05
  Speaker 6: with you more. You know Handyman franchise, though there's a
• 17:10
  Speaker 6: shortage of Handyman, so we wanted to create something called
• 17:14
  Speaker 6: Handyman University.
• 17:15
  Speaker 3: You know that you're exactly right. I want to be
• 17:19
  Speaker 3: so one.
• 17:19
  Speaker 1: I have four themes that I like in business enfranchising
• 17:24
  Speaker 1: right now that I think have let's say, a ten
• 17:27
  Speaker 1: to twenty year runway before really being disrupted. The first
• 17:31
  Speaker 1: one I like is I believe that we have feminized
• 17:34
  Speaker 1: men in America. When I say that, totally okay, preach
• 17:38
  Speaker 1: into the choir here more. Yeah, the audience. Some people
• 17:41
  Speaker 1: get offended, and that's fine. There are things that I
• 17:43
  Speaker 1: believe it and I say it. So I believe that
• 17:46
  Speaker 1: we have feminized them, not only with the foods they eat,
• 17:49
  Speaker 1: lowering their testosterone levels, lowering their sperm count.
• 17:52
  Speaker 3: Boy, what right, right there you go? You said it?
• 17:56
  Speaker 1: So with that, in addition, excuse me, In addition into that,
• 18:00
  Speaker 1: we've also, as dads, not taught our children how to
• 18:04
  Speaker 1: use their hands, how to be independent. Fire at Bengo
• 18:07
  Speaker 1: absolute light switch. First thing I did with my son.
• 18:11
  Speaker 1: He got his car driveway, jacked it up, took all
• 18:15
  Speaker 1: four tires off, put them all back on again, right
• 18:18
  Speaker 1: and then and then he actually needed it. He's sixteen.
• 18:21
  Speaker 1: He actually needed to remove a tire because he had
• 18:25
  Speaker 1: hit a curb and got a flat and it was
• 18:27
  Speaker 1: like that, I can't believe it, Like we just did
• 18:29
  Speaker 1: this and the average person, to your point, doesn't even
• 18:33
  Speaker 1: know how to do that. So I do believe that
• 18:35
  Speaker 1: people could use their hands, people who can be a
• 18:38
  Speaker 1: handy man. People could do basic drywall work or plumbing
• 18:41
  Speaker 1: or electrical or roofing or sighting a window replacement in flooring.
• 18:46
  Speaker 2: I believe that these people will be in high demand.
• 18:48
  Speaker 1: I believe that we have shit on the trades for
• 18:52
  Speaker 1: so long that we have created this, this gap, this
• 18:56
  Speaker 1: major deficiency, right absence of people could use tools because
• 19:01
  Speaker 1: we told them all to go to college to study
• 19:03
  Speaker 1: things that they really don't want to study about and
• 19:05
  Speaker 1: go into debt for one hundred and fifty grand.
• 19:07
  Speaker 5: Pubdactory in English history, you know, and gender studies, right
• 19:13
  Speaker 5: fender studies and humanist studies. So so how do you
• 19:19
  Speaker 5: learn how to become a handymanned?
• 19:21
  Speaker 2: Yeah, I mean what? So we had we have a
• 19:23
  Speaker 2: podcast as well.
• 19:24
  Speaker 1: It's called Pursuit of Profit in the guys, it's all
• 19:26
  Speaker 1: franchised discussions. It's nothing like your show. Your show is
• 19:31
  Speaker 1: very unique. So when you talk about that, we had
• 19:36
  Speaker 1: a guy in the show and say, hey, how are
• 19:37
  Speaker 1: you scaling your HVAC company? He ended up buying an
• 19:41
  Speaker 1: HVAC company for four million and scaled it to three
• 19:44
  Speaker 1: hundred and fifty million. How he went straight to the schools,
• 19:48
  Speaker 1: went after the guidance counselors who were the kids that
• 19:51
  Speaker 1: you know are not going to college. I want to
• 19:54
  Speaker 1: train him. I want to give him a skill set.
• 19:56
  Speaker 1: I want to have them monetize a skill for the
• 19:58
  Speaker 1: remainder of their life.
• 20:00
  Speaker 2: Want them to work for me. And that's what he did.
• 20:02
  Speaker 1: He created little little schools and four states where he
• 20:05
  Speaker 1: operated his HVAC company, recruited him straight out of high school,
• 20:09
  Speaker 1: gave him a skill set.
• 20:10
  Speaker 2: So right now it's all about mentoring.
• 20:13
  Speaker 1: It's it's like Mike rowe stop insulting the trades, right stop.
• 20:19
  Speaker 1: We have to stop that nonsense where we've made fun
• 20:23
  Speaker 1: of people who said, I'm not going to college, I'm
• 20:25
  Speaker 1: going to vocational school, I'm going to trade school.
• 20:28
  Speaker 2: I want to be a journeyman. Like, we have to
• 20:31
  Speaker 2: stop that.
• 20:31
  Speaker 1: Not we need these people driving over bridge exist. I
• 20:36
  Speaker 1: know it exists. I mean it's crazy to me, so
• 20:41
  Speaker 1: I think that I think that after and you know
• 20:43
  Speaker 1: what I'm talking about, All these presidents of the Ivy
• 20:46
  Speaker 1: League schools testified in congress. Each one looked like an idiot,
• 20:50
  Speaker 1: one after the other after the other, look like a show.
• 20:53
  Speaker 3: To run a hot dog stand.
• 20:55
  Speaker 5: Those more absolutely, they were disgusting their.
• 20:59
  Speaker 1: Antswer, We're disgusting. Their view of the world is running
• 21:03
  Speaker 1: the out book. Yes, yes, I completely agree. I was
• 21:06
  Speaker 1: completely disillusioned. I said, how the heck did she get
• 21:12
  Speaker 1: to run the U OFP and mit, you know and like.
• 21:16
  Speaker 3: All this crap.
• 21:17
  Speaker 5: I mean, I just I know, we believe it, Cliff,
• 21:19
  Speaker 5: I mean I was in shock. So let's get back
• 21:22
  Speaker 5: to our topic. Befre here. So physical trades, guys who
• 21:26
  Speaker 5: do tile, guys, kitchens, redo kitchens, bathrooms.
• 21:32
  Speaker 3: What else. Yeah, you're not going to hook to fix
• 21:35
  Speaker 3: cars soon.
• 21:36
  Speaker 1: No food, So you don't hear me pushing food. I'm
• 21:39
  Speaker 1: not pushing fitness. I like four categories. Number one, use
• 21:43
  Speaker 1: your hands. Men's health. There's a war on men. I
• 21:46
  Speaker 1: talked about it. Sperm count for Western male down fifty
• 21:49
  Speaker 1: percent in last decade.
• 21:51
  Speaker 3: That is by design.
• 21:52
  Speaker 1: As you introduce socialism, you introduce low t right, it's
• 21:56
  Speaker 1: it's all coordinated.
• 21:58
  Speaker 3: Second can making me now?
• 22:02
  Speaker 1: Second category is so the humanization of pets and animals.
• 22:07
  Speaker 2: We humanize them. We're not repopulating.
• 22:10
  Speaker 1: We humanize pets in what way?
• 22:14
  Speaker 3: Like talk to me. I mean it's like, how do
• 22:17
  Speaker 3: you like your pets? Not your dog?
• 22:20
  Speaker 5: Isn't You might love them the pieces, but it's not
• 22:22
  Speaker 5: a substitute for a person, right.
• 22:24
  Speaker 3: Oh right?
• 22:25
  Speaker 1: That part is the illness part, right, Dressing them up
• 22:28
  Speaker 1: and calling them your furry baby and not being able
• 22:31
  Speaker 1: to function in society without petting your cat, dog or alligator.
• 22:36
  Speaker 3: This is where it's.
• 22:36
  Speaker 1: Now becoming a mental illness or a human being running
• 22:40
  Speaker 1: around thinking they're a cat or a fox is.
• 22:45
  Speaker 3: Let's be clear here.
• 22:46
  Speaker 5: We're not saying is anything wrong with having pets. We
• 22:50
  Speaker 5: love pets, you and me both. I could tell you're
• 22:52
  Speaker 5: a dog guy, but it's not a substitute for human interaction,
• 22:57
  Speaker 5: which it's been positive Pushkaz, right totally.
• 23:03
  Speaker 1: We humanize them, and you're exactly right. So I'm only
• 23:07
  Speaker 1: saying I'm not talking about the humanization. I'm saying, as
• 23:10
  Speaker 1: an investment thesis, the humanization of pets and animals is
• 23:14
  Speaker 1: a huge opportunity for boarding, training, grooming, retail anything involving
• 23:20
  Speaker 1: these animals where you capitalize off of it. My third
• 23:24
  Speaker 1: category is the agent graying of America. Where we're not repopulating,
• 23:30
  Speaker 1: there's a lot of work to do, whether it's mobility,
• 23:32
  Speaker 1: whether it's assisted living, whether it's a real estate play,
• 23:35
  Speaker 1: whether it's a state sales and auctions or a state planning.
• 23:41
  Speaker 1: Franchising offers a lot of avenues to deal with the
• 23:44
  Speaker 1: elderly and not just care for elderly. You could do
• 23:48
  Speaker 1: a lot of just mobility. I have brands that deal
• 23:50
  Speaker 1: with scooters, wheelchairs, striker beds, chair lifts and stare lifts
• 23:55
  Speaker 1: and all that stuff. And my fourth category that I
• 23:59
  Speaker 1: like is everything around biohacking, which is becoming a huge
• 24:03
  Speaker 1: move right now. I mean, I have lymphatic drainage brands
• 24:07
  Speaker 1: that do over a million a year on average revenue.
• 24:10
  Speaker 1: We have testosterone therapy brands that do over a million
• 24:13
  Speaker 1: a year in revenue, which ties back to the number
• 24:16
  Speaker 1: one category that we discuss. So there's a lot in
• 24:19
  Speaker 1: the biohacking space, whether it be peptides or nacs or
• 24:23
  Speaker 1: just you know, wanting to focus on things other than
• 24:28
  Speaker 1: just cardio and strength training, to get balanced, to get centered,
• 24:32
  Speaker 1: and to get healthier. So and beauty and vanity. So
• 24:36
  Speaker 1: I put that all into category four biohacking, beauty, vanity
• 24:40
  Speaker 1: to the desire to feel youthful, the desire to feel whatever,
• 24:44
  Speaker 1: beautiful or sexy, whatever you're looking to be.
• 24:48
  Speaker 3: That's right.
• 24:48
  Speaker 2: Those are my four categories.
• 24:50
  Speaker 1: And I believe that clients that work with us, my
• 24:53
  Speaker 1: business partner, Justin and I in those categories end up
• 24:57
  Speaker 1: seeing clarity and realize I'm Ai proof, I'm Amazon proof.
• 25:01
  Speaker 1: What we're talking about cannot be done through Amazon or Temo.
• 25:05
  Speaker 1: Temo is becoming popular now taking.
• 25:08
  Speaker 5: Care from scam. Temo is a total data mining scam Chinese.
• 25:14
  Speaker 5: That's what I'm hearing. Yeah, not a fan of Timo,
• 25:16
  Speaker 5: but uh and I bought some stuff from them. It's
• 25:20
  Speaker 5: they make their thing addictive. It's kind of like Amazon,
• 25:23
  Speaker 5: but it's like Amazon on the cheap. It's like right,
• 25:27
  Speaker 5: So all right, well, Cliff, So to sum it up,
• 25:30
  Speaker 5: your average client, what's their age demos?
• 25:34
  Speaker 1: Yeah, well, we're seeing younger people, but I think the
• 25:36
  Speaker 1: average is going to be like forties and fifties. They
• 25:38
  Speaker 1: have a little of that money put aside. They have
• 25:42
  Speaker 1: they have the liquidity, they have the ability to say
• 25:45
  Speaker 1: I quit, or they have the ability to keep their
• 25:48
  Speaker 1: job and enough skill set and bandwidth to run a
• 25:51
  Speaker 1: business on the side by managing the manager. Average networth
• 25:55
  Speaker 1: for a client is probably five hundred to seven hundred
• 25:57
  Speaker 1: and fifty thousand net worth. The average liquidity requirement that
• 26:01
  Speaker 1: I need is around one hundred hundred and fifty.
• 26:04
  Speaker 5: That's almost not that much, really much, yeah, one hundred
• 26:07
  Speaker 5: Now did they get SBA loans or what do they do?
• 26:10
  Speaker 1: That's exactly what we do to bridge the assets will
• 26:14
  Speaker 1: go to well, do SBA Small Business Administration loans or
• 26:19
  Speaker 1: on scured lines of credit?
• 26:21
  Speaker 5: How much usually cost? I should say how much they
• 26:24
  Speaker 5: usually have to borrow? What's the total all in cost?
• 26:27
  Speaker 1: So in a non brick and mortar brand, your total
• 26:30
  Speaker 1: investments between one hundred and one hundred and fifty thousand
• 26:33
  Speaker 1: on average. In a brick and mortar brand, you're starting
• 26:37
  Speaker 1: investments really three three fifty and up quickly. Right, There's
• 26:41
  Speaker 1: not a lot at that three three fifty range, but
• 26:43
  Speaker 1: it does start in there. But to your point, you
• 26:45
  Speaker 1: quickly could get to a half a million. Yeah and yeah,
• 26:49
  Speaker 1: And you know, for the folks listening, it's like, well,
• 26:51
  Speaker 1: how do I buy a half a million dollar brand?
• 26:53
  Speaker 1: You would put up thirty percent of the size of
• 26:56
  Speaker 1: the deal. So if you're looking at a five hundred
• 26:58
  Speaker 1: thousand dollars brick and mortar brand, you would be putting
• 27:01
  Speaker 1: up one hundred and fifty thousand dollars of your own capital,
• 27:04
  Speaker 1: and then we would get you an SBA loan for
• 27:06
  Speaker 1: the balance our underwriter require might be thirty percent cash injection.
• 27:10
  Speaker 5: Really interesting. We're definitely going to have you back on.
• 27:13
  Speaker 5: You're our official franchise expert appointed by the Financial Survival Network. Cliff,
• 27:20
  Speaker 5: just tell us how do we find you on the web?
• 27:22
  Speaker 5: How do we connect with you?
• 27:24
  Speaker 1: I'm name of the consulting companies for Anocity, so it's
• 27:27
  Speaker 1: f r A n ocity dot com.
• 27:32
  Speaker 5: All right, excellent links in the show notes, this interview
• 27:35
  Speaker 5: on Financial Survival Network dot com. And while you're there,
• 27:39
  Speaker 5: we just ask that you sign up for your free newsletter.
• 27:42
  Speaker 5: Over sixty thousand of you have already and hopefully more.
• 27:47
  Speaker 5: We're shooting for one hundred. Cliff, really appreciate you coming on.
• 27:50
  Speaker 5: We'll talk to you again soon.
• 27:51
  Speaker 3: Thanks for having me, Carrie, Thanks.
• 27:53
  Speaker 4: For listening to Carrie Lets's Financial Survival Network. Your solution
• 27:58
  Speaker 4: to today's trying time for the latest go to Financial
• 28:02
  Speaker 4: Survivalnetwork dot com. Financial Survival Network now more than ever