Latest / Money And Wealth With John Hope Bryant / The New Ownership Revolution

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The New Ownership Revolution · Money And Wealth With John Hope Bryant

• 0:00
  Speaker 1: Welcome the Money and Wealth with John Hobryant, a production
• 0:03
  Speaker 1: of the Black Effect Podcast Network and iHeartRadio. Yo, this
• 0:15
  Speaker 1: is John O'Bryant and this is Money and Wealth, the
• 0:19
  Speaker 1: podcast series on Black Effect Network on iHeartRadio. I want
• 0:23
  Speaker 1: to first thank all of you for making my weekly
• 0:28
  Speaker 1: pullpit of finance. I'm Money to Wealth, a top one
• 0:32
  Speaker 1: hundred business podcast on Apple Podcasts and Top fifty. Actually
• 0:39
  Speaker 1: it's really top forty entrepreneurship podcasts, not just here in
• 0:44
  Speaker 1: the US, but increasingly around the world, South Africa, the UK, Chile,
• 0:49
  Speaker 1: number of places around the world is really quite inspiring,
• 0:51
  Speaker 1: the Middle East, Saudi Arabia, I'm to even told, so
• 0:54
  Speaker 1: thank you and spread the word and tell folks to
• 0:56
  Speaker 1: follow the movement. This is the silver rights man, from
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  Speaker 1: the streets to owning the suites. There's a room for all.
• 1:05
  Speaker 1: There's enough room for all of us. That's what this podcast,
• 1:07
  Speaker 1: this episode that today is actually all about. We're not
• 1:10
  Speaker 1: trying to replace anybody in this conversation. Be very clear.
• 1:13
  Speaker 1: This is about expanding the table. To quote my friends
• 1:15
  Speaker 1: definite rule to expand the table and add a chair.
• 1:19
  Speaker 1: Expand the table and add a chair. We have a
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  Speaker 1: fiscal crisis in this country, meaning that we owe a
• 1:26
  Speaker 1: lot of money the government, federal government does. But you
• 1:29
  Speaker 1: can't just cut yourself out of this crisis. You cannot
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  Speaker 1: without destroying America itself in my opinion, because America is
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  Speaker 1: not a country, She's an idea, and we can make
• 1:38
  Speaker 1: her anything we want, or we can destroy her and
• 1:41
  Speaker 1: depress her and uninspire the aspirants when in her who
• 1:45
  Speaker 1: want to be part of this American dream. This has
• 1:48
  Speaker 1: always been about people at the bottom trying to get
• 1:50
  Speaker 1: to the top. That's what's made this country. It's just
• 1:53
  Speaker 1: at the people at the bottom trying to get to
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  Speaker 1: the top. Look a little different in this generation that
• 1:59
  Speaker 1: they did in the earliest early twentieth century, when it
• 2:03
  Speaker 1: was mostly European strivers from struggling European countries, whether they
• 2:09
  Speaker 1: were Poland, Polish or Irish or Italian then Jewish or
• 2:15
  Speaker 1: whatever they were, you know, white in European and all
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  Speaker 1: good by the way, and there was a desire to
• 2:22
  Speaker 1: get them from the bottom to the top. The New
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  Speaker 1: Deal after the war, the programs put in place that
• 2:34
  Speaker 1: helped folks to get a mortgage in a trade, the
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  Speaker 1: Marshall Plan, etc. They rebuilt Europe and Japan in Germany,
• 2:44
  Speaker 1: but also invested in the gi built, etc. Invested in
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  Speaker 1: returning gis that built the middle class which was primarily Caucasian,
• 2:54
  Speaker 1: and again all good. There's nothing wrong with that, no
• 2:56
  Speaker 1: problem with the these whatsoever. In fact, women, white women
• 3:01
  Speaker 1: benefited from black people striving in the Civil rights movement
• 3:04
  Speaker 1: because they was designed as a firmative action turned into
• 3:09
  Speaker 1: the first broad based women's rights moving nineteen seventy two
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  Speaker 1: nineteen seventy four when a firm reveaction from Nixon and
• 3:16
  Speaker 1: most of Abraham Lincoln. President Nixon, a Republican who qualified
• 3:19
  Speaker 1: a firm reaction, by the way, By the way, Republican,
• 3:23
  Speaker 1: also created the Minority NBDA Minority developed Minority Business Development Agency,
• 3:28
  Speaker 1: which is interesting. No one ever mentions that he was
• 3:31
  Speaker 1: a women's rights president an environmental president. This is President Nixon.
• 3:34
  Speaker 1: By the way, I'm not advocating for Nixon. He was
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  Speaker 1: a crook. I'm just saying it's odd that something that
• 3:40
  Speaker 1: was created by a Republican president is now being vilified
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  Speaker 1: in some way. But anyway, the efforts there to empower women,
• 3:50
  Speaker 1: which included white women, Black women, Latino women, Asian, Indian,
• 3:53
  Speaker 1: you know, but it started with white women. That effort
• 3:56
  Speaker 1: is now a third of the US economy, a third
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  Speaker 1: of the US GDP are women. Fantastic And if we
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  Speaker 1: hadn't done that and hadn't gotten that right, we be
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  Speaker 1: an also ran country today. We would not be the
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  Speaker 1: largest economy in the world, the soul superpower in the world.
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  Speaker 1: Thirty trillion dollars of GDP. About seven trade of that
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  Speaker 1: is or comes from women. So we got that right,
• 4:20
  Speaker 1: and we've got to get that right again. So there's
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  Speaker 1: something happening right now. And again I keep saying. The
• 4:26
  Speaker 1: color is not black or white, are red or blue,
• 4:29
  Speaker 1: it's green. It's economic right. I want you to learn
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  Speaker 1: a new language. This is the silvil rights movement. Silv
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  Speaker 1: e R. People are going to correct me. No, John,
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  Speaker 1: don't you mean civil rights. No, I mean civil rights,
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  Speaker 1: civil rights. Those rights were secured and we needed it.
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  Speaker 1: Racism and discrimination, bias is real problems in this country. Slavery.
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  Speaker 1: My second great grandfather, second great grandmother were both slaves.
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  Speaker 1: It hurts me even say it. My grandfather what Yeah,
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  Speaker 1: my grandfather my dad side was a sharecropper. RB Smith.
• 5:02
  Speaker 1: George Young was on my father's side. The second great
• 5:05
  Speaker 1: grandfather was a slave who fought in the Civil War
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  Speaker 1: responding to Abraham Lincoln's emancipation Proclamation calling and so he
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  Speaker 1: escaped slavery and went to go fight for the Union cause.
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  Speaker 1: I guess where I get my social justice bones. My
• 5:21
  Speaker 1: second grade grandmother on my mother's side, Winnia Smith, my
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  Speaker 1: dad's Johnny Smith. She owned a home if she escaped,
• 5:27
  Speaker 1: she left slavery. She ended up owning a home with
• 5:30
  Speaker 1: no mortgage on it. Hello, and had a border. Somebody
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  Speaker 1: read it from her, so she was self reliant. So
• 5:37
  Speaker 1: you know, we're a country that unevenly does reward people,
• 5:43
  Speaker 1: has rewarded people from going from the bottom to the
• 5:45
  Speaker 1: top right, And with all our problems, it still can
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  Speaker 1: produce somebody like me who started in Common, California and
• 5:51
  Speaker 1: South Carola with nothing, homeless when I was eighteen years
• 5:55
  Speaker 1: of age, as in my book, up from nothing if
• 5:57
  Speaker 1: you want to read about that. And now's the top
• 5:59
  Speaker 1: point zero five percent of all wealth and income in
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  Speaker 1: this country legally paying my taxes, you know, doing it straight.
• 6:08
  Speaker 1: And that's because I embrace financially recy as a civil
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  Speaker 1: rights issue. This generation, in this new mood of civil rights,
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  Speaker 1: silver rights and you say it slowly, Silver rights right,
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  Speaker 1: And in what I call the third reconstruction, this period
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  Speaker 1: between twenty twenty and twenty thirty. First reconstruction with Civil War,
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  Speaker 1: second reconstruction with the Civil Rights movement. Third reconstruction is
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  Speaker 1: now and it involves all of us, including my poor
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  Speaker 1: right brothers and sisters in rural America. But it also
• 6:34
  Speaker 1: includes middle class people. If you're listening to this and
• 6:37
  Speaker 1: you're middle class, you're cont educated or whatever. Irrespective of
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  Speaker 1: your age, your race, or whatever, you probably have too
• 6:42
  Speaker 1: much month at the end of your money. Help, can
• 6:44
  Speaker 1: I get an AMA? Right? So we're all in this
• 6:47
  Speaker 1: thing together, and we're all looking for an exit door
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  Speaker 1: and an aspirational door. How do we come up? Right?
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  Speaker 1: You can't cut yourself out of this crisis. You have
• 6:55
  Speaker 1: to grow yourself out of it. Yes, there is some
• 6:59
  Speaker 1: government waste, and yes that's you know, President Bill Clinton
• 7:04
  Speaker 1: had a whole commission on government waste. And this president
• 7:07
  Speaker 1: should approach, you know, looking for any government waste. He
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  Speaker 1: can fantastic, no problem with it. Whatsoever we do it.
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  Speaker 1: We should do it in a thoughtful, intelligent way. We
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  Speaker 1: all agree on that. But you can't just cut yourself
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  Speaker 1: out of a crisis. You have to find new forms
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  Speaker 1: of revenue, and I think I've tripped on one. I
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  Speaker 1: am going to share it with you in this episode,
• 7:30
  Speaker 1: and I'm going into in what less than one hour's time,
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  Speaker 1: give you a roadmap for you to frame this out
• 7:37
  Speaker 1: for your own life. And I want you to tell
• 7:39
  Speaker 1: everybody about this. This is open source empowerment. I've written
• 7:43
  Speaker 1: the business plans. On the fifty seventh anniversary of Doctor
• 7:47
  Speaker 1: King's assassination, which was April fourth, we had a dream
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  Speaker 1: Forward event and I issued business plans. I encourage you
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  Speaker 1: to go to dream Forward on the operational website, or
• 7:55
  Speaker 1: just type in dream Forward in my name. It'll come
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  Speaker 1: up and download the business plans I wrote for rural America,
• 8:02
  Speaker 1: which includes by the way, poor struggling whites, that I
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  Speaker 1: wrote for women, that I rode for Asians, a business
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  Speaker 1: plan I wrote for a Latino Americans want, a business
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  Speaker 1: plan I wrote for Native American Indians, a business plan
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  Speaker 1: wrote for Asian Americans right, and I wrote one for
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  Speaker 1: African Americans because we're at the bottom of the economic
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  Speaker 1: pyramid and we were the only ones enslaved in American soil.
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  Speaker 1: And when you read that business plan for African Americans
• 8:30
  Speaker 1: in particular, if you're African American listening to this. By
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  Speaker 1: the way, this I think I think I mentioned I
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  Speaker 1: wrote one for women. Also. By the way, whatever the
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  Speaker 1: business plan you read, you're going to see an opportunity
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  Speaker 1: for you that's going to jump out at you from
• 8:45
  Speaker 1: what I'm about to share with you. With this one
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  Speaker 1: hundred trillion dollar wealth transfer, all this stuff's going to
• 8:50
  Speaker 1: start connecting and tying in what am I doing at
• 8:52
  Speaker 1: Operation Hope. By the way, I founded the largest financial
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  Speaker 1: literacy coaching organization in America. Why because we need economic plumbing.
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  Speaker 1: I mean I have a private banker me right, But
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  Speaker 1: the poor, the struggling class, the working middle class do
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  Speaker 1: not have a private banker. They don't have people they
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  Speaker 1: can call, systems that they can lean on. I just
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  Speaker 1: signed just now earlier before I did the podcast, I
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  Speaker 1: signed a line of credit for a few million dollars.
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  Speaker 1: It's unsecured. Essentially, it's on my name, and yes I
• 9:26
  Speaker 1: guarantee it's real limited liability corporation, but I'm the guaranteur.
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  Speaker 1: But it is not tied to business or real estate
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  Speaker 1: or a cash flow situation or I mean it is
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  Speaker 1: literally on the credibility of my name. The word credit
• 9:38
  Speaker 1: comes from the Latin root word credit dump, which means
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  Speaker 1: credibility has nothing to do with money. Capital comes from
• 9:44
  Speaker 1: the Latin word copy toss, which is loosely translated again
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  Speaker 1: Latin knowledge in the head. I'm trying to get you
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  Speaker 1: knowledge in the head, so you can fight this battle
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  Speaker 1: from the shoulders up, not the shoulders down. You don't
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  Speaker 1: have to fight with your hands civil rights anymore, walk
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  Speaker 1: with your feet. You can win this battle. You can
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  Speaker 1: become dangerous, as my friend Tim Burd would say, dangerous
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  Speaker 1: from the shoulders up, from the neck up. And I
• 10:07
  Speaker 1: want you to master this game. That's why this game
• 10:10
  Speaker 1: of capitalism, which we're not done and we're not to do.
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  Speaker 1: But it's what we don't know that we don't know.
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  Speaker 1: This killing is what we think we know because no
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  Speaker 1: one's ever taught us financial literacy, which is a civil
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  Speaker 1: rights issue of this generation. In my opinion, no one's
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  Speaker 1: ever taught us a capitalism and how the system works.
• 10:24
  Speaker 1: So my last book, Financial Liucy for All, which is
• 10:26
  Speaker 1: number one for the last fourteen months plus. Now it's
• 10:29
  Speaker 1: out in paperback. Please don't get it at Walmart, which
• 10:32
  Speaker 1: is a big partner in support of ours. I want
• 10:34
  Speaker 1: to support them. Go get it at a black or
• 10:37
  Speaker 1: minority bore bookstore, you know, also get it at Amazon
• 10:39
  Speaker 1: where it's number one listed. It's been listed. But but
• 10:42
  Speaker 1: go to Amazon. I mean, so go to you for ease,
• 10:45
  Speaker 1: go to Walmart and go to Amazon. It's a little
• 10:48
  Speaker 1: bit more work. But if you can't get it at
• 10:49
  Speaker 1: a small bookstore, business bookstore or black bookstore, minority book bookstore,
• 10:53
  Speaker 1: then you're helping that that small business. By the way,
• 10:56
  Speaker 1: so I'm trying to create economic plumbing for the bottom
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  Speaker 1: half of this country so they can plug into an
• 11:02
  Speaker 1: economic system and come up from nothing. Let's get into
• 11:05
  Speaker 1: the deep, to the depth of this. If you're talking
• 11:07
  Speaker 1: to somebody, if you're passing this on to somebody and
• 11:10
  Speaker 1: you don't and they have limited time, tell them just
• 11:11
  Speaker 1: to start at minuty eleven. Okay, So here we go,
• 11:15
  Speaker 1: the baby boom demographic bomb. Let's start with the what
• 11:20
  Speaker 1: and why before we get to the how and where
• 11:23
  Speaker 1: and when. Well, you know, the wind is right now,
• 11:25
  Speaker 1: by the way, the baby boom demographic bomb. There's a
• 11:30
  Speaker 1: there's one hundred million. Sorry, the number is so big.
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  Speaker 1: I screwed it up. Is one hundred trillion dollar trillion
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  Speaker 1: with the tea. There's one hundred trillion dollar wealth transfer
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  Speaker 1: that's about to happen. It's happening right now as we're talking,
• 11:45
  Speaker 1: as you're listening to this. It represents one of the
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  Speaker 1: most significant economic, social, and demographic shifts in modern history,
• 11:52
  Speaker 1: certainly modern American history. The American is the largest economy
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  Speaker 1: in the world, the sole superpower to this day in
• 12:00
  Speaker 1: the world. Other people want to be us, which is
• 12:02
  Speaker 1: part of what's going on here and why there's so
• 12:04
  Speaker 1: much friction in the world that they're trying to get
• 12:06
  Speaker 1: us to fight with us. The best way that if
• 12:09
  Speaker 1: you can't win in a fair fight, if you're in
• 12:11
  Speaker 1: North Korea, you're China, you're Russia, you're Iran, and you
• 12:14
  Speaker 1: want to take America's seat in the world, you can't
• 12:16
  Speaker 1: win in a fair fight, then you get us to
• 12:18
  Speaker 1: fight with ourselves right and and win because we lose,
• 12:24
  Speaker 1: not because you want. So they've got a cheated capitalism.
• 12:28
  Speaker 1: And I'm trying to get you to understand. The Bible
• 12:31
  Speaker 1: says that the house divide, it cannot stand. So if
• 12:34
  Speaker 1: we stand together, weally we realize we're better together and
• 12:37
  Speaker 1: we're one country, and we reset the American dream two
• 12:40
  Speaker 1: point zero, and then we figure out how to grow
• 12:44
  Speaker 1: in the next iteration of this country's aspirational growth. Then
• 12:49
  Speaker 1: we we we we surge again forward and continue to
• 12:53
  Speaker 1: be the light on the heel for the world. And
• 12:57
  Speaker 1: there'd be an OpEd coming out soon called the Bottom Third,
• 12:59
  Speaker 1: where I believe we need to take the bottom third
• 13:01
  Speaker 1: this country and tournament the capitalists. Okay, I'm so excited
• 13:04
  Speaker 1: about this topic. I'm getting I'm getting unfocused. Let me
• 13:07
  Speaker 1: get back so I can get you through within an
• 13:09
  Speaker 1: hour the substance of this, whether you're riding a bike
• 13:14
  Speaker 1: or driving to work or jogging or working out. I
• 13:17
  Speaker 1: want you to be able to get through a weekly
• 13:19
  Speaker 1: topic with me where I go deep and you're smarter
• 13:23
  Speaker 1: at the end of that hour. And if you're not,
• 13:25
  Speaker 1: you let me know. Who are the baby Boomers? I
• 13:29
  Speaker 1: like math because it doesn't have an opinion, And so
• 13:30
  Speaker 1: my friend Melody House in quote who are the baby
• 13:32
  Speaker 1: boomers born nineteen forty six to nineteen sixty four. I'm
• 13:36
  Speaker 1: not a baby boomer. The size is about seventy million Americans.
• 13:41
  Speaker 1: The age range between sixty one and seventy nine years
• 13:45
  Speaker 1: of age. Give or take the wealth ownership baby boomers
• 13:51
  Speaker 1: control about fifty five percent of US wealth are roughly
• 13:56
  Speaker 1: seventy five to ninety trillion dollars. The great wealth transfer
• 14:02
  Speaker 1: is between eighty four trillion and one hundred trillion of dollars.
• 14:06
  Speaker 1: This is US dollars and i'd pay soose and i'd
• 14:08
  Speaker 1: Russian rubles right, US dollars the flight the flight calling
• 14:12
  Speaker 1: in the world. The US dollar. By the way, the
• 14:14
  Speaker 1: whole purpose of many folks in crypto is to get
• 14:17
  Speaker 1: to cash out with the US dollars. So don't discount
• 14:20
  Speaker 1: the US dollar and know that was not a dig
• 14:23
  Speaker 1: at crypto. Okay, So I don't want to start another fight.
• 14:28
  Speaker 1: So eighty four to one hundred trillion dollars are expected
• 14:30
  Speaker 1: to be passed down between now and the year twenty
• 14:33
  Speaker 1: forty five, mostly from baby boomers to millennials and Gen xers.
• 14:39
  Speaker 1: Of that, sixteen trillion dollars is projected to transfer by
• 14:43
  Speaker 1: twenty thirty three. Now, just to be just this is
• 14:46
  Speaker 1: twenty twenty five, that's eight years from now. This is
• 14:49
  Speaker 1: like happening right now. Why is this a demographic bomb?
• 14:53
  Speaker 1: Because it's massive it's uneven and it's disruptive. The population
• 14:58
  Speaker 1: in America's agent. You've got more people under over sixt
• 15:01
  Speaker 1: sixty five than under age eighteen, and this is unprecedented.
• 15:04
  Speaker 1: And the folks who are under eight the over eight
• 15:06
  Speaker 1: sixty five for mostly Caucasian wealthy in this particular case,
• 15:12
  Speaker 1: and you know, and trying to retire. They're all trying
• 15:14
  Speaker 1: to go play golf at the same time. And the
• 15:17
  Speaker 1: ones that are under eighteen are all a lot of
• 15:20
  Speaker 1: them have a tan. They're diverse there, they're from different places.
• 15:23
  Speaker 1: They they're striver, they want to be strivers. Right right,
• 15:27
  Speaker 1: you're starting to see the picture here. Uh, there's going
• 15:29
  Speaker 1: to be a health So there's an aging population. Tens
• 15:32
  Speaker 1: of millions will retire or die in a short spirit
• 15:35
  Speaker 1: span of time. There's a healthcare strain. More seniors will
• 15:39
  Speaker 1: need care than the workers can support them. Right by
• 15:42
  Speaker 1: the way, this is an opportunity for you guys, and
• 15:44
  Speaker 1: come into that in a minute. There's a labor shortage
• 15:47
  Speaker 1: is coming. Key sectors will lose skilled workers. Again, you
• 15:50
  Speaker 1: cannot have a rainbow without a storm first, So a
• 15:52
  Speaker 1: problem is also an opportunity. All capitalism is is what
• 15:57
  Speaker 1: I call it gladiator sported. By the way, all capitalism
• 15:59
  Speaker 1: is a problems were really entrepreneurship is solving problems, which
• 16:03
  Speaker 1: feeds into a capitalist model. A housing supply shop. You know,
• 16:17
  Speaker 1: older homeowners will downside, sell or pass away. There's gonna
• 16:22
  Speaker 1: be a business succession crisis. And that's what this podcast
• 16:24
  Speaker 1: is about. Millions of small businesses and trillion dollars trillions
• 16:28
  Speaker 1: of dollars in value are owned by boomers with no
• 16:32
  Speaker 1: succession plan. Hello, please write this down. That was at
• 16:37
  Speaker 1: at minute number sixteen. The opportunity for young Americans is
• 16:43
  Speaker 1: to inherent assheads, buy businesses or inner new markets. The
• 16:49
  Speaker 1: risk is that there's a potential concentration of wealth, especially
• 16:54
  Speaker 1: if mostly most of this wealth is passed down to
• 16:57
  Speaker 1: those who are already wealthy. Just I mean an ownership
• 17:01
  Speaker 1: at shift in stocks, real estate, retirement accounts, Privately held
• 17:04
  Speaker 1: businesses will change hands. Boomers will sell assets to fund retirement,
• 17:10
  Speaker 1: possibly impacting economic markets. Eighty to ninety percent of this
• 17:15
  Speaker 1: transfer is expected to stay within white families. Don't get
• 17:19
  Speaker 1: angry about it. It's an is right and folks who
• 17:22
  Speaker 1: made it legitimately and honestly can do with it as
• 17:25
  Speaker 1: they will. If you made your own money. You'd like
• 17:27
  Speaker 1: to do with your money as you will. Right, people say, oh,
• 17:31
  Speaker 1: I hate rich people. No, you don't. You hate rich
• 17:35
  Speaker 1: people until you become rich. What you hate is a
• 17:39
  Speaker 1: game system, right, What you hate is a system that
• 17:42
  Speaker 1: no matter how hard you try and how hard you work,
• 17:45
  Speaker 1: you can't get ahead. But you know, I'm not black,
• 17:48
  Speaker 1: and this is a conversation. I mean, I am black,
• 17:50
  Speaker 1: and I'm proud of it. I'm green. That's just why
• 17:52
  Speaker 1: I told you about this line of credit that I
• 17:53
  Speaker 1: just inked literally before I got on the podcast, because
• 17:57
  Speaker 1: I'm going to position myself to do some of the
• 18:02
  Speaker 1: stuff that I'm telling you to do. I'm gonna create
• 18:04
  Speaker 1: my own private equity effort and go buy some companies
• 18:08
  Speaker 1: that I'm getting ahead of myself. So there are twelve
• 18:14
  Speaker 1: million privately held businesses in the US that are owned
• 18:17
  Speaker 1: by baby boomers, about thirty one million, thirty two million
• 18:20
  Speaker 1: businesses overall. By the way, about twelve million privately held
• 18:25
  Speaker 1: businesses that are owned by baby boomers the value between
• 18:27
  Speaker 1: ten and twelve trillion dollars. And the heirs don't want them,
• 18:31
  Speaker 1: the people, so baby boomers are going to again. They're
• 18:34
  Speaker 1: all trying to get to the exit door at the
• 18:35
  Speaker 1: same time. They're all trying to go play golf and
• 18:38
  Speaker 1: travel at the same time. God bless them. They've earned
• 18:40
  Speaker 1: the right. They're give the stocks to cash, the bonds,
• 18:43
  Speaker 1: the homes, the real estate to their wives, husbands, husbands
• 18:52
  Speaker 1: in the cases that the wives made the money, husbands
• 18:55
  Speaker 1: and wives and children, the lovers, whatever it's in. The
• 19:01
  Speaker 1: maids don't want the businesses that's work right, and they're like, no,
• 19:06
  Speaker 1: I'm good. By the way, there's a joke. First generation
• 19:08
  Speaker 1: makes it, second generation spends it, third generation loses it.
• 19:12
  Speaker 1: So a lot of people who don't They pass down
• 19:15
  Speaker 1: their assets, but they don't pass down their hustle. And
• 19:18
  Speaker 1: that's a whole other podcast for another day. But essentially
• 19:22
  Speaker 1: that's what this podcast series, and we're in season two now,
• 19:25
  Speaker 1: has been about. Its bout is really passing down the
• 19:28
  Speaker 1: how to demystifying capitalism, telling you what good capitalism looks like,
• 19:33
  Speaker 1: and training you so you can become a good capitalist. Uh,
• 19:37
  Speaker 1: you know, the joke would be in social social social
• 19:41
  Speaker 1: empowerment circles, it's not black lives matter, it's black capitalists matter.
• 19:45
  Speaker 1: Not just black lives matter, Black capitalist matter. But this
• 19:47
  Speaker 1: is again, this is this is a universal conversation for everybody,
• 19:50
  Speaker 1: but I am supersized in this conversation, uh, for Black
• 19:54
  Speaker 1: America because they're they're we're at the bottom of the
• 19:56
  Speaker 1: economic pyramid and we need to come up. And this
• 19:59
  Speaker 1: is a brit a brilliant way of doing it. So
• 20:04
  Speaker 1: let's now talk about let's get into the actual opportunity.
• 20:12
  Speaker 1: So this is one hundred trillion dollars that will transfer
• 20:17
  Speaker 1: in the next ten to twenty years. It's a once
• 20:20
  Speaker 1: in a lifetime opportunity for Black America and underserved communities
• 20:24
  Speaker 1: to advance through strategic acquisitions of aging businesses, ownership through
• 20:31
  Speaker 1: so there are give or take, you know, ninety six
• 20:40
  Speaker 1: percent of black owned businesses in this country ninety percent,
• 20:45
  Speaker 1: ninety six percent don't have an employee. And Operation Hope
• 20:52
  Speaker 1: has created inspired advanced about four hundred and fifty thousand
• 20:56
  Speaker 1: black businesses through the one Million Black Business Initiative and
• 21:02
  Speaker 1: other thirty one thirty two million businesses in America. There
• 21:06
  Speaker 1: are not enough that are able to do what I
• 21:13
  Speaker 1: call compounding, which is well you build wealth in your slip,
• 21:18
  Speaker 1: your sleep, and do that through compounding. So if you
• 21:20
  Speaker 1: only have one employee, which is ninety six percent of businesses.
• 21:24
  Speaker 1: Then you're a self employment project essentially, and you're just
• 21:28
  Speaker 1: making a living, maybe making a good living. But as
• 21:30
  Speaker 1: soon as you stop that effort, the business stops. But
• 21:31
  Speaker 1: if you have employees, you have systems, you have real estate,
• 21:37
  Speaker 1: you have infrastructure, then when you're sleep that business is
• 21:42
  Speaker 1: growing and you have technology. It's orders are coming in,
• 21:45
  Speaker 1: things are happening. When you're on vacation, things are happening,
• 21:48
  Speaker 1: and so on and so forth. So clearly you stop,
• 21:52
  Speaker 1: it stops. So we've got to find a way to
• 21:55
  Speaker 1: create black businesses that have the ability to scale. Now
• 22:01
  Speaker 1: you can start a business, and if you want to
• 22:04
  Speaker 1: start a business, I'm an entrepreneur, I start fifty of them.
• 22:07
  Speaker 1: I can't be mad at you. In fact, I would
• 22:09
  Speaker 1: encourage that. Generally speaking, one MBB one million Black Business Initiative,
• 22:12
  Speaker 1: our partnership with Shopify is encouraging that around e commerce
• 22:15
  Speaker 1: as an example. But there may be a smarter way
• 22:18
  Speaker 1: for you to go about this. And I'm going to
• 22:19
  Speaker 1: commit right now that I'm going to get Operation Hope
• 22:21
  Speaker 1: to start training you in mergers and acquisition and investment
• 22:25
  Speaker 1: banking sort of. This next this thing I'm talking about
• 22:28
  Speaker 1: in this podcast, I'm actually going to get Operation Hope
• 22:30
  Speaker 1: to do training around that. So I'm walking my talk.
• 22:35
  Speaker 1: So so stay tuned, stay tuned for that. Let's get
• 22:40
  Speaker 1: into one hundred trillion dollars and why should you care.
• 22:46
  Speaker 1: Let's get to the meat of it. Ten to twelve
• 22:48
  Speaker 1: trillion dollars in small medium sized businesses of this one
• 22:51
  Speaker 1: hundred trillion are going to be sort of orphans. Nobody
• 22:56
  Speaker 1: wants them. Now, keep in mind I've just said most
• 22:59
  Speaker 1: black businesses are self employment projects. They don't have infrastructure,
• 23:01
  Speaker 1: they don't have systems. Take your finger off the economic button.
• 23:04
  Speaker 1: Stop selling things. They just stop. They stall. So you've
• 23:07
  Speaker 1: got cash flow. Maybe you have riches because you have
• 23:10
  Speaker 1: a contract for income. But as soon as you stop that,
• 23:13
  Speaker 1: your altfhlox eat your inflow and that you're overhead, it
• 23:15
  Speaker 1: will be your downfall. You've not built any wealth. You
• 23:18
  Speaker 1: haven't build anything you can sell. You're building anything that
• 23:20
  Speaker 1: you can leverage up, franchise whatever. Right, so you can
• 23:29
  Speaker 1: go start a pizzeria yourself or whatever business you want
• 23:32
  Speaker 1: to start and raise the GoFundMe campaign or whatever fifty
• 23:35
  Speaker 1: thousand dollars or you can go buy something that already exists. Okay,
• 23:40
  Speaker 1: here's the drop of the mic. I'm talking about businesses
• 23:42
  Speaker 1: that have cash flows, that have customer lists, that have
• 23:45
  Speaker 1: real assets, that have infrastructure, that have systems, that have
• 23:52
  Speaker 1: a brand name right, they have reputation, they have credit lines,
• 24:00
  Speaker 1: have an owner that doesn't want it anymore. I'm so
• 24:03
  Speaker 1: excited about this. So again, ten to twelve trady dollars
• 24:07
  Speaker 1: and some all medium sized businesses that are going to
• 24:09
  Speaker 1: transition into new hands. The children in the family really
• 24:12
  Speaker 1: really don't want them. Over four million businesses are owned
• 24:16
  Speaker 1: by baby boomers, and again, seventy percent of these don't
• 24:19
  Speaker 1: have succession plans, no place to put them. Okay, and
• 24:22
  Speaker 1: they're great businesses. Baby boomers are retiring it. Hold on now,
• 24:28
  Speaker 1: ten thousand a day. There are ten thousand people a
• 24:32
  Speaker 1: day saying I'm out of here, I'm going to play golf,
• 24:34
  Speaker 1: I'm going to shop, I'm going shopping, I'm going to
• 24:36
  Speaker 1: go travel the world. And you know, let's just say
• 24:42
  Speaker 1: ten percent of those a thousand, of those, fifteen percent
• 24:44
  Speaker 1: of those a day, fifteen hundred of those have a
• 24:47
  Speaker 1: business that has no place to go. So Black America
• 24:52
  Speaker 1: currently own just two percent of US businesses with employees.
• 24:58
  Speaker 1: This is not charity I'm talking about. I'm talking about
• 25:01
  Speaker 1: capitalism with capacity. So we're talking about Black Wall Street
• 25:05
  Speaker 1: two point zero moment. If you want to call it that,
• 25:08
  Speaker 1: it's nationwide and it's inclusive. This is about ownership, which
• 25:12
  Speaker 1: is wealth influence, jobs, and community anchoring. This is if
• 25:16
  Speaker 1: you want to call it Tulsa, you know Black Wall Street.
• 25:20
  Speaker 1: This is Tulsa in every community in America. And this
• 25:23
  Speaker 1: is not a black business we're talking about. These are
• 25:25
  Speaker 1: great businesses happen to be owned by black people. Okay.
• 25:28
  Speaker 1: And when you create wealth, you then create You can
• 25:30
  Speaker 1: pass down philanthropy and you can start your own schools
• 25:32
  Speaker 1: if you like, and give charity to whoever you like.
• 25:35
  Speaker 1: You can create an entrepreneurship charter school in your neighborhood.
• 25:38
  Speaker 1: You can give to charities, your you can be enormously
• 25:41
  Speaker 1: philanthropical and support your family and friends. You're paying your
• 25:45
  Speaker 1: taxes now all of a sudden, lights are staying on
• 25:47
  Speaker 1: in your neighborhood. Now, now you have services, you have
• 25:50
  Speaker 1: credit scores going up. You have better grocery stores replacing
• 25:56
  Speaker 1: convenience stores. You have banks replacing check cashers. The whole
• 25:59
  Speaker 1: community chaines the tax pace goes up. Police are starting
• 26:02
  Speaker 1: to protect you, not prey on you. It's a whole
• 26:05
  Speaker 1: new situation when you turn green from just being poor
• 26:09
  Speaker 1: and whatever. And this is a way again to do
• 26:12
  Speaker 1: this at scale. So let me get very specific. Now
• 26:16
  Speaker 1: we're at mim of twenty six again. You tell somebody
• 26:18
  Speaker 1: go to minute twenty six. You have a local dentist
• 26:21
  Speaker 1: in Detroit with a thriving practice. Kids don't want it again.
• 26:26
  Speaker 1: You thought I was going to talk about some high
• 26:28
  Speaker 1: tech thing or some startup business. No, no, no, a
• 26:31
  Speaker 1: local dentist. That's a business, by the way, in Detroit,
• 26:34
  Speaker 1: thriving practice customer list. If you're living in dentist things
• 26:37
  Speaker 1: about if you live in dentists. If you live in Detroit,
• 26:40
  Speaker 1: think about the dentists that you go to. Right, you
• 26:42
  Speaker 1: live in Maryland, you live in Baltimore, you live in Washington,
• 26:45
  Speaker 1: d C. You live in Hawaii, somewhere you live in
• 26:49
  Speaker 1: I was just in Arizona. Just say yesterday speaking at
• 26:52
  Speaker 1: a CNBC CEO conference. You're in Tucson, writers flew out
• 26:56
  Speaker 1: of you're a dentist. You go what dentists do you
• 26:59
  Speaker 1: go to? Okay, they have a thriving practice. You're looking
• 27:03
  Speaker 1: at the owner. You know you can tell who an
• 27:05
  Speaker 1: owner is when you're in a win a business. By
• 27:07
  Speaker 1: the way, you're looking at the owner because you know
• 27:12
  Speaker 1: Bolkes on Wash rental cars. Like said, there's a whole
• 27:14
  Speaker 1: mindset with somebody owned something. You come in my business,
• 27:16
  Speaker 1: you can tell I own something. I've had people tell
• 27:18
  Speaker 1: me like, you're the owner, aren't you right? So that owner,
• 27:22
  Speaker 1: you see that owner, that owner looks sixty sixty five seventy.
• 27:25
  Speaker 1: They're trying to get that gu out of there, right,
• 27:29
  Speaker 1: make an offer. I kept getting ahead of myself. Family
• 27:31
  Speaker 1: run HVAC air conditioning business heating and air conditioning business
• 27:36
  Speaker 1: company in Charlotte, no succession plan architecture firm in Los
• 27:42
  Speaker 1: Angeles looking for a buyout. A regional black lead investment
• 27:48
  Speaker 1: group can buy these businesses and keep jobs local and
• 27:54
  Speaker 1: scale it up. Does to this is to be a
• 27:56
  Speaker 1: black lead investment group. It can be a limited liability
• 28:00
  Speaker 1: corporation with three friends that get together. I'm going to
• 28:03
  Speaker 1: get the capital in a minute, Okay, But you know
• 28:04
  Speaker 1: it doesn't have to be the sophisticated thing, although you
• 28:07
  Speaker 1: have to be going by it in a sophisticated way.
• 28:08
  Speaker 1: You need to go get you some business training, because
• 28:11
  Speaker 1: there's a difference between business and busyness, right right, and
• 28:14
  Speaker 1: so go to Operation Hope, go to the Urban Legal
• 28:16
  Speaker 1: or whoever you like, or to the SBA, get you
• 28:19
  Speaker 1: get yourself business trained, and we will scholarship you into
• 28:23
  Speaker 1: that as long as we continue to do well at
• 28:24
  Speaker 1: Operation to Hope, and we're doing pretty good right now,
• 28:27
  Speaker 1: thanks for all the support to our from our partners.
• 28:29
  Speaker 1: We will scholarship you into at least one year of
• 28:33
  Speaker 1: consumer credit training. If you're a small business owner, you
• 28:36
  Speaker 1: tend to use your own consumer credit in the short
• 28:38
  Speaker 1: term because your businessesn't have credibility or you well, you know,
• 28:43
  Speaker 1: we'll get you business training and entrepreneurship training if you
• 28:46
  Speaker 1: want that, in e commerce training, et cetera. So so,
• 28:49
  Speaker 1: think about these local businesses as you're driving down the street.
• 28:52
  Speaker 1: You're listening to this podcast. Right, Look up, there's an
• 28:55
  Speaker 1: office building. Right, there are hundreds of little businesses in there.
• 29:00
  Speaker 1: Look to the right of you. Look to the left
• 29:01
  Speaker 1: of you, there's a storefronts right, grocery stores, convenience stores,
• 29:07
  Speaker 1: gas stations, nail salons, barbershops. Help me out here. You
• 29:13
  Speaker 1: guys are watching this. You know grocery stores have already said,
• 29:17
  Speaker 1: convenience stores, shoe stores, boutiques, medical offices. Yes, that's a business.
• 29:28
  Speaker 1: They're everywhere, literally, they're everywhere. I mean, this unbelievable opportunity
• 29:35
  Speaker 1: I'm telling you about here. So the common barriers of
• 29:38
  Speaker 1: people saying this sounds great, John, but how do I
• 29:40
  Speaker 1: access capital? I don't have these relationships. I don't know that.
• 29:43
  Speaker 1: I don't have to know how you hang around nine
• 29:45
  Speaker 1: bro people, you'll be the tenth. I've told you that
• 29:46
  Speaker 1: it's going to change what you hang around. But these
• 29:48
  Speaker 1: are these barriers are are are overcomeable. So I want
• 29:53
  Speaker 1: you to look up all this SBA Small Business Administration
• 29:56
  Speaker 1: lenders right in your area and go see them. Go
• 29:59
  Speaker 1: get the know them. Look at the FDI C insured
• 30:01
  Speaker 1: banks in your area. They have banks have a CRA
• 30:04
  Speaker 1: requirement Community Reinvestment Act requirement, Go see them. If you don't,
• 30:09
  Speaker 1: if you're too intimidated to go to the bank directly,
• 30:11
  Speaker 1: or you don't know who to approach because the branch
• 30:13
  Speaker 1: manager is not going to be able to help you
• 30:14
  Speaker 1: too much. And what I'm talking about here, you need
• 30:16
  Speaker 1: to get to a level above that to the corporate
• 30:19
  Speaker 1: level at the bank. You can go to Operation and
• 30:21
  Speaker 1: Hope and we'll bridge you into these relationships. But I
• 30:23
  Speaker 1: want you to go to banks and talk to them
• 30:25
  Speaker 1: about CRA Community Reinvestment Act and how you might fit in.
• 30:28
  Speaker 1: I want you to go to the to ask them
• 30:29
  Speaker 1: about their did they have any venture capital arms or
• 30:32
  Speaker 1: private equity arms inside of their banks? Go to the
• 30:35
  Speaker 1: SBA Small Business Administration. Look for lenders and investors in
• 30:39
  Speaker 1: your area. Look for small business Investment corporations in your area.
• 30:42
  Speaker 1: Look up CDFIs Community development financial institutions in your area.
• 30:47
  Speaker 1: If I'm going too fast, just rewind the podcasts and
• 30:51
  Speaker 1: write it down. Financial education and credit score improvement. That's
• 30:55
  Speaker 1: through Operation to Help. That is a form of credit. Yes, sorry,
• 30:58
  Speaker 1: that is a form of capital. Actually, if you have
• 31:00
  Speaker 1: a five hundred or six hundred credit score, I don't
• 31:02
  Speaker 1: care how good your idea is. You're not getting a loan,
• 31:04
  Speaker 1: you're not getting an investment because your credits tow up
• 31:06
  Speaker 1: in the flow up, and no one's going to loan
• 31:08
  Speaker 1: your money because you don't pay it back. But if
• 31:09
  Speaker 1: you get your credit score up one hundred points, which
• 31:11
  Speaker 1: is what Operation Hope is doing in eighteen twenty four months.
• 31:14
  Speaker 1: Get your credit score up fifty four months and six months,
• 31:16
  Speaker 1: which is what Operation Hope is doing. We're raising credit
• 31:18
  Speaker 1: score is fifty four points in six months, lowering debt
• 31:22
  Speaker 1: thirty two thirty three, thirty fourhundred dollars, increasing savings twelve
• 31:26
  Speaker 1: hundred dollars. For somebody making forty eight thousand dollars a year.
• 31:29
  Speaker 1: We just made you bankable at prime rates. I'm going
• 31:31
  Speaker 1: to do a whole podcast just on the toolbox called
• 31:34
  Speaker 1: Operation Hope and walk you through the how and the
• 31:38
  Speaker 1: what do you like that idea? By the way, if
• 31:39
  Speaker 1: you do, let me know in the comments. So I
• 31:43
  Speaker 1: call this the Opportunity the ownership Opportunity Pipeline. Identify target industries, healthcare, trades,
• 31:49
  Speaker 1: real estate services, whatever you love. Educate young entrepreneurs about
• 31:53
  Speaker 1: M and A, not just start ups, mergers and acquisition. Again,
• 31:56
  Speaker 1: I'm gonna tell you the Operation Hope is going to
• 31:57
  Speaker 1: do that, but you can if you know about this
• 31:59
  Speaker 1: dude in your area. This is a form of financial literacy,
• 32:01
  Speaker 1: more sophisticated form. Launch acquisition apprenticeships for twenty five to
• 32:06
  Speaker 1: forty year olds. Encourage investors to back community led buyouts
• 32:12
  Speaker 1: use tax incentives and policy tools to support transitions of
• 32:15
  Speaker 1: these small businesses. So go to your mayor, go to
• 32:17
  Speaker 1: your county officials and ask them, are there any tools
• 32:19
  Speaker 1: in place to help these businesses transition. Maybe they'll put
• 32:22
  Speaker 1: something in place for you local. Most GDP, most gross
• 32:26
  Speaker 1: domestic product income for this nation comes from cities, not
• 32:30
  Speaker 1: from the federal government, not nationally, it comes from cities.
• 32:32
  Speaker 1: I mean Atlanta right now, tenth Lar's economy in the
• 32:35
  Speaker 1: entire country right five hundred and eighty billion billion, which
• 32:39
  Speaker 1: is the same size economy as Singapore, and it's built
• 32:41
  Speaker 1: on diversity, inclusion and dynamic economics small businesses. So imagine
• 32:47
  Speaker 1: what I want you to do is imagine one million
• 32:49
  Speaker 1: new black businesses by twenty thirty five. They're at scale,
• 32:52
  Speaker 1: not what we're doing just with right now with one MBB.
• 32:55
  Speaker 1: Imagine something by twenty thirty five that are at scale.
• 32:57
  Speaker 1: These are big businesses, are busines. This is with employees,
• 33:00
  Speaker 1: with profit centers, cash flows, brands, the next iteration of
• 33:05
  Speaker 1: business communities shifting from being renters of their future to
• 33:09
  Speaker 1: owning parts of it. Hello, can I get an amen?
• 33:21
  Speaker 1: Rebuilding the American middle class from the bottom up. So
• 33:25
  Speaker 1: ownership is the new civil rights. This isn't just about
• 33:28
  Speaker 1: making money, It's about building legacy. So I want you
• 33:33
  Speaker 1: to before I get down to the Capitol and where
• 33:35
  Speaker 1: to get it and all that stuff, I want you
• 33:37
  Speaker 1: to tell your friends and subscribe and share this poor,
• 33:42
  Speaker 1: subscribe to the podcast, share this episode, and I want
• 33:45
  Speaker 1: you to start asking around from folks you know. Who
• 33:49
  Speaker 1: do you know that owns a business? I'm nosy. A
• 33:53
  Speaker 1: god gives you two ears in one mouth if you
• 33:54
  Speaker 1: listen twice as much as you talk. I literally would
• 33:56
  Speaker 1: go walk into an office complex. I go walk into
• 33:59
  Speaker 1: an office building, I'd look at the register on the wall,
• 34:02
  Speaker 1: and I would see a business in the industry that
• 34:04
  Speaker 1: I think I'm interested in. I'd go up the elevator
• 34:07
  Speaker 1: if it was if the security guard downstairs did not
• 34:11
  Speaker 1: protect the access, and most places do not, I'd go up.
• 34:14
  Speaker 1: I'd look professional, wear a suit or a dress, or
• 34:16
  Speaker 1: look professional so you don't look like you're trying to
• 34:18
  Speaker 1: steal it, like you're trying to like you belong there, right,
• 34:22
  Speaker 1: and go up and go into that office and be
• 34:27
  Speaker 1: a little nosy. Right, do some research if you can beforehand,
• 34:30
  Speaker 1: figure out if you can figure out who actually owns
• 34:32
  Speaker 1: that business. You can do it in real time with
• 34:34
  Speaker 1: the internet. Make your phone a smartphone, not a dumb phone. Hello,
• 34:37
  Speaker 1: do use it for something other than concert tickets? Or
• 34:40
  Speaker 1: use artificial intelligence to try to figure out who owns
• 34:43
  Speaker 1: that business you're identifying on that registry and get a
• 34:46
  Speaker 1: little background on that business owner. And that business owner
• 34:48
  Speaker 1: is over sixty five. Hello, they may want out, Okay,
• 34:53
  Speaker 1: And I'm gonna get to what that means in a minute.
• 34:56
  Speaker 1: So I'm gonna do a whole masterclass series on on
• 35:00
  Speaker 1: and how you come up right and what this means
• 35:04
  Speaker 1: for you and all that. But now let meet just
• 35:06
  Speaker 1: in this podcast, let me get to ten accessible industries
• 35:10
  Speaker 1: for business ownership through succession or acquisition. I know you're asking,
• 35:14
  Speaker 1: like John, well, what businesses? Okay, here's some easy ones.
• 35:17
  Speaker 1: Home services industry sector number one plumbing HVA C. By
• 35:21
  Speaker 1: the way, there's a plumbing crisis. In this plumbing crisis,
• 35:24
  Speaker 1: there's a plumbing trades persons crisis a country. There's a
• 35:29
  Speaker 1: need for tens of thousands of new plumbers every year.
• 35:31
  Speaker 1: You can believe that electricians too. So you can't ai
• 35:36
  Speaker 1: here yourself out of the plumbing the pipes have burst, right,
• 35:41
  Speaker 1: you can't ai yourself by the fact that you know
• 35:43
  Speaker 1: your air conditioning shut has gone out. So plumbing is
• 35:46
  Speaker 1: going to always be involved. Air conditioning, heats can always
• 35:49
  Speaker 1: be involved. Electrical landscaping, pest control, right environments running around
• 35:54
  Speaker 1: your house like you just don't care howse fiscated you are,
• 35:56
  Speaker 1: how rich you are. Get that thing out of my house.
• 35:59
  Speaker 1: Call somebody right out. So these are businesses and they're
• 36:02
  Speaker 1: owned by somebody. Does that interest you? High recurring demand?
• 36:07
  Speaker 1: These businesses have a high recurring demand. They're often family owned.
• 36:11
  Speaker 1: These businesses generate between five hundred thousand and five million
• 36:14
  Speaker 1: dollars on average in annual revenue. This is so this
• 36:17
  Speaker 1: is you know, you can have a nice lifestyle in
• 36:19
  Speaker 1: this situation for you and your family. Second, the industry
• 36:22
  Speaker 1: dental or medical practices. These are solo or small group offices,
• 36:27
  Speaker 1: typically dentists, pedietrists, chiropractice right. Uh. They often have stable
• 36:32
  Speaker 1: cash flows, They have high value, often turnkey businesses. They
• 36:37
  Speaker 1: have tend to be tend to be a very good
• 36:39
  Speaker 1: loyal customer base. Number three funeral homes And by the way,
• 36:44
  Speaker 1: this is an industry that was largely created by Black
• 36:47
  Speaker 1: America because no one wanted to bury us. It's really
• 36:52
  Speaker 1: sad to say, but anyway, that's another podcast or of
• 36:55
  Speaker 1: the day. But funeral homes their recession proof. Hello people,
• 36:59
  Speaker 1: I don't know how you're going to long you're gonna live,
• 37:00
  Speaker 1: but I dang sure know you're gonna die. What's the mystery?
• 37:03
  Speaker 1: Recession proof? Strong ties to community and culture tend to
• 37:07
  Speaker 1: be very local. They have brands you trust. Many owners
• 37:11
  Speaker 1: want to keep it in local hands, and if you're
• 37:16
  Speaker 1: in the black community, they typically wanted to keep it
• 37:18
  Speaker 1: black owned in family feelings, so I tried to You
• 37:23
  Speaker 1: may think I'm ruthless here. My mother passed on the
• 37:26
  Speaker 1: glory and the people who took care or did a
• 37:28
  Speaker 1: really good job, and I was so impressed that after
• 37:31
  Speaker 1: the ceremony it was all this suff was over. I
• 37:33
  Speaker 1: actually asked the lady who was taking care of it,
• 37:35
  Speaker 1: you know, do you know the owners of this business?
• 37:37
  Speaker 1: I like to buy it from them. Now. I didn't
• 37:39
  Speaker 1: push on that because timing was sort of bad, but
• 37:44
  Speaker 1: I was serious, like I saw opportunity. But my mother
• 37:47
  Speaker 1: stayed in the senior living was a very nice one.
• 37:50
  Speaker 1: About fifteen minutes from our house, and it was like
• 37:53
  Speaker 1: a resort, and I wanted to buy that too, you know,
• 37:58
  Speaker 1: so I can also ensure my mother was well taken
• 38:00
  Speaker 1: care of while she was there, which is also I
• 38:02
  Speaker 1: realized a good business. And with what I'm telling you now,
• 38:05
  Speaker 1: it's a growing one daycare number. Four daycares in early
• 38:11
  Speaker 1: childhood centers, high demand, especially in urban centers. Opportunities for
• 38:16
  Speaker 1: mission driven ownership and community wealth. Five Auto repair and
• 38:22
  Speaker 1: body shops. This is still essential in a car dominated society.
• 38:26
  Speaker 1: And even if you have robotic cars, they still need them.
• 38:28
  Speaker 1: They're just going to break down, right, so they're still
• 38:30
  Speaker 1: gonna need to be fixed. They still going to break
• 38:31
  Speaker 1: They have a flat tire and the brake's going to fail,
• 38:34
  Speaker 1: and the axle is going to fail. They still need
• 38:36
  Speaker 1: to be repaired. AI doesn't have to take you out
• 38:39
  Speaker 1: of your job or business. You need to master AI,
• 38:42
  Speaker 1: and you run the machines that run the AI. You
• 38:44
  Speaker 1: run the free machines in service, machines who run the robotics.
• 38:49
  Speaker 1: I did a whole piece on AI. Go back and
• 38:50
  Speaker 1: watch that. You want to go deeper, just let me
• 38:52
  Speaker 1: know on the topic. So they're still essential, They're brand
• 38:57
  Speaker 1: loyal people. It's going to be brand have a lot
• 38:59
  Speaker 1: of brand loyalty. All repairing body shops I know I
• 39:01
  Speaker 1: do UH and word of mouth and they're word of
• 39:04
  Speaker 1: mouth driven, so they're really good businesses. The folks I
• 39:06
  Speaker 1: do business with my cars, those are the only folks
• 39:09
  Speaker 1: I call because in my life depends on it. I'm
• 39:11
  Speaker 1: driving around in something I need to know it's dependable
• 39:13
  Speaker 1: and that people are not are not cutting cutting corners
• 39:18
  Speaker 1: in risking my life. Number six Accounting and tax services.
• 39:21
  Speaker 1: So baby boomer accountants often want to retire. It's it's
• 39:26
  Speaker 1: a business that can wear you out. It's very good business,
• 39:28
  Speaker 1: but it is very detailing and wear people out over time,
• 39:31
  Speaker 1: so folks want to retire and to want to get
• 39:33
  Speaker 1: rid of it. It's very profitable. Many are ready made
• 39:36
  Speaker 1: for client that many have ready made client basis. They
• 39:39
  Speaker 1: cross self financial literacy, are planning services along with accounting services,
• 39:43
  Speaker 1: so you can upsell and cross seale people. So if
• 39:46
  Speaker 1: you can grow it, you can franchise, you can scale
• 39:48
  Speaker 1: it all the way. You can have multiple offices for
• 39:50
  Speaker 1: accounting and tax services. Number seven beauty salons and barbershops.
• 39:54
  Speaker 1: But this is a natural black of brown folks, cultural
• 39:58
  Speaker 1: cornerstone and black communities right. Easy to expand with with
• 40:01
  Speaker 1: retail and online bookings, et cetera. This is why I
• 40:04
  Speaker 1: want you to do Shopify and Operation Open one MBB
• 40:06
  Speaker 1: because even if you have an existing business, we can
• 40:09
  Speaker 1: sidcar that with an e commerce business. Just growing the
• 40:14
  Speaker 1: existing business into something that involved efficiency of e commerce.
• 40:21
  Speaker 1: I'll cover that when I do the Operation Hope podcasts
• 40:23
  Speaker 1: in some detail. Number eight Logistics and delivery services. So
• 40:28
  Speaker 1: freight freight brokers, local courrier companies, last mile delivery fleets. Uh. Booming.
• 40:35
  Speaker 1: These are booming with e commerce, right and but you
• 40:39
  Speaker 1: know you got to you gotta really love logistics and
• 40:41
  Speaker 1: this is the sort of something you got to really
• 40:43
  Speaker 1: just be into. Like somebody has an engineering mind. We
• 40:46
  Speaker 1: really love this. Number nine cleaning and commercial janitorial companies.
• 40:50
  Speaker 1: Big business uh, low startup overhead. You can deal with
• 40:54
  Speaker 1: a high school education, steady cash flows, recurring contracts. In fact,
• 40:59
  Speaker 1: you can go from this streets to the suites and
• 41:01
  Speaker 1: back to the streets with this. With this business, you
• 41:03
  Speaker 1: can be you can do the local schoolhouse, the local
• 41:07
  Speaker 1: you know, liquor store as a contract. You could also
• 41:09
  Speaker 1: be doing the local stadium in the same business in
• 41:13
  Speaker 1: the same city. Number ten franchise resales, so I think
• 41:18
  Speaker 1: subway ups stores, home healthcare, fast casual restaurants, fast food restaurants.
• 41:25
  Speaker 1: Many franchises offer financing support and seller financing by the way, okay,
• 41:31
  Speaker 1: so now let me get into accessing capital. Owning a
• 41:36
  Speaker 1: business doesn't mean you have to have all the cash
• 41:39
  Speaker 1: up front, right or buying one. Now here's how to
• 41:42
  Speaker 1: make the math work. People are like, okay, thank finally
• 41:45
  Speaker 1: John manute forty one, his brother finally got the how
• 41:47
  Speaker 1: do I finance this thing on a thing? I'm broke
• 41:49
  Speaker 1: so broke up, can't pay attention? So poor I got?
• 41:52
  Speaker 1: I don't. I don't. It's not spelled p o R
• 41:55
  Speaker 1: just poh poh. I'm just pop. Right, what do I do?
• 41:58
  Speaker 1: You're not poor, by the way, is it infers doing
• 42:00
  Speaker 1: being broken? Being poor? Being broken economic? Being poor is
• 42:03
  Speaker 1: a disabling the frame of mind, a depressed condition of
• 42:06
  Speaker 1: your spirit. And you must vow never ever ever to
• 42:09
  Speaker 1: be poor again. Right, So you just don't have any money,
• 42:11
  Speaker 1: right or not enough? It's okay, I'm going to show
• 42:14
  Speaker 1: you how to use other people's money OPM in a
• 42:16
  Speaker 1: responsible way. So you want to buy a five hundred
• 42:20
  Speaker 1: thousand dollars business. Okay, the seller may so this is
• 42:25
  Speaker 1: the first example. Okay, and I love this example. This
• 42:28
  Speaker 1: goes right in line with go find an office building,
• 42:30
  Speaker 1: go into it, or go see some a business or
• 42:33
  Speaker 1: even better, so business that you are a client of.
• 42:36
  Speaker 1: So you have a relationship with the folks and maybe
• 42:38
  Speaker 1: even own the owner seller financing. This is very common,
• 42:45
  Speaker 1: very common. Now this is a drop to Mike admitute
• 42:48
  Speaker 1: forty two. Right, this is this, Please pay attention. A
• 42:53
  Speaker 1: seller lets you pay thirty to seventy percent of the
• 42:57
  Speaker 1: price of their business over time. You just the terms.
• 43:00
  Speaker 1: It's between fair exchange is no robbery. So you this
• 43:04
  Speaker 1: is a quote from my friend Robert Rue. You and
• 43:07
  Speaker 1: the seller agree on what the terms are. As long
• 43:09
  Speaker 1: as it's legal, it's ethical, and it's honest. You're not
• 43:13
  Speaker 1: breaking any laws. Then there's your contract. I've always told
• 43:18
  Speaker 1: you that a good negotiation is where you have two
• 43:21
  Speaker 1: people is a table. Well, a good negotiating is where
• 43:25
  Speaker 1: everybody leaves negotiation slightly irritated, slightly annoyed because nobody got
• 43:30
  Speaker 1: everything they wanted, and so the seller wants to get
• 43:34
  Speaker 1: all their cash up front, and you would like to
• 43:37
  Speaker 1: finance one hundreds of the business. You neither one of
• 43:39
  Speaker 1: you going to get either to that, but you can
• 43:42
  Speaker 1: find some common ground. Seller gets an exit strategy. They
• 43:45
  Speaker 1: get some liquidity, some cash right now plus promise of
• 43:49
  Speaker 1: cash in the future, and if you default on the business,
• 43:51
  Speaker 1: they get the business back. They default a debt to
• 43:53
  Speaker 1: them the contract, they get the business back because that's
• 43:56
  Speaker 1: only fair. But they let you pay thirty to seventy
• 43:58
  Speaker 1: percent over time. You may only need ten to twenty
• 44:01
  Speaker 1: percent of the cash up front, and you might be
• 44:03
  Speaker 1: able to get this. You might just need a little
• 44:07
  Speaker 1: bit of cash from family's, friends, bank, whatever, because you
• 44:10
  Speaker 1: might be able to seller finance it with the seller's business.
• 44:13
  Speaker 1: The rest of that cash, even part of the twenty percent,
• 44:16
  Speaker 1: once you get into that business, you're going to get
• 44:18
  Speaker 1: cash flow. It's an existing business. You can take if
• 44:21
  Speaker 1: you if you don't need that cash to live on,
• 44:22
  Speaker 1: you can take some of that cash after you pay
• 44:25
  Speaker 1: the business the bills of the business to finance your
• 44:29
  Speaker 1: obligation to the seller. Number two SBA Small Business Administration
• 44:35
  Speaker 1: seven eight loans, So this is up to five million
• 44:37
  Speaker 1: dollars ten to twenty sorry ten to fifteen percent cash payments,
• 44:42
  Speaker 1: cash down payment required from you. It's two very favorable
• 44:46
  Speaker 1: turns from the SBA. Operation Helpe, by the way, started
• 44:49
  Speaker 1: with an SBA seven J grant of sixty one thousand
• 44:51
  Speaker 1: dollars and now we're the largest in our category in
• 44:54
  Speaker 1: the country. So the SBA really you know, a lot
• 44:57
  Speaker 1: of fortunately five hundred businesses came from the SBA, by
• 45:00
  Speaker 1: the way, so favorable they could be favorable terms. Ten
• 45:03
  Speaker 1: year repayment typically ten percent, I mean, you know, less
• 45:07
  Speaker 1: than ten percent. Interests in some cases it's down in
• 45:09
  Speaker 1: the one in two to three percent range. It's just
• 45:13
  Speaker 1: unbelievable rates. Bank banks love lending for businesses proven revenue.
• 45:21
  Speaker 1: You're buying a business with proven revenue, and this SBA
• 45:24
  Speaker 1: financing would come through with a bank. Number three CDFIs
• 45:28
  Speaker 1: Community Development Financial Institutions. I really want to applaud Robert
• 45:32
  Speaker 1: Smith here, the billionaire black businessman who has been very
• 45:36
  Speaker 1: has been leading in doing a lot of great work
• 45:37
  Speaker 1: in the community. And I become new friends and he's
• 45:40
  Speaker 1: now trying to support CDFI's particularly of those in the
• 45:43
  Speaker 1: Southeast region. And we're trying to figure out whether operas
• 45:46
  Speaker 1: hope and what he's doing can come together in some way.
• 45:49
  Speaker 1: But I really commend him here supporting CDFIs that are
• 45:52
  Speaker 1: supporting communities, so which is a little shout out for him.
• 45:55
  Speaker 1: These are so CDFIs are mission driven lenders. They're more
• 45:59
  Speaker 1: flexible the big banks. They are great for Black entrepreneurs
• 46:03
  Speaker 1: and Latino entrepreneurs and poor you know, poor rural community,
• 46:08
  Speaker 1: you know, strivers, whatever. They're may folks at the bottom
• 46:11
  Speaker 1: of the pyramid of folks who don't have access to
• 46:13
  Speaker 1: relationship capital. Essentially is what I'm saying. You'll see them
• 46:16
  Speaker 1: on Native American Indian reservations or serving those communities. You'll
• 46:20
  Speaker 1: see them in look at the list, look for lists
• 46:24
  Speaker 1: of CDFIs. They're the great for folks who are credit
• 46:27
  Speaker 1: challenged or first time buyers. I say credit challenge. I
• 46:30
  Speaker 1: got your attention, didn't it. Four CRA Community Reinvestment Act
• 46:36
  Speaker 1: from banks. They must lend in underserved communities. Many have
• 46:40
  Speaker 1: programs or small business transitions. There are forty five hundred
• 46:43
  Speaker 1: FDIC insured banks in this country. All of them have
• 46:46
  Speaker 1: this altercation. Then I can give you the money. But
• 46:49
  Speaker 1: if you if you're smart about how to do it,
• 46:51
  Speaker 1: they will work with you. And the CIRA conversation at
• 46:56
  Speaker 1: least opens the door where they'll listen to you. I
• 46:58
  Speaker 1: have arranged, foracilitated, and invested about four point five really
• 47:04
  Speaker 1: four point eight billion dollars include my private businesses of
• 47:09
  Speaker 1: capital and underserved neighborhoods. A lot of it has been
• 47:12
  Speaker 1: through banks. Five partnership with partnerships are sending it. Buyout.
• 47:18
  Speaker 1: So team up with two to three trusted friends or partners,
• 47:21
  Speaker 1: not pookying them. Not the homeboy shopping network, not your
• 47:24
  Speaker 1: cousin you're going to argue with, not your financially literate uncle. Right,
• 47:28
  Speaker 1: I'm talking about business. Business is not personal. You make
• 47:30
  Speaker 1: an emotional decisions going to be a bad one. Make
• 47:32
  Speaker 1: sure that you know who you're partnering with and that
• 47:34
  Speaker 1: these people are competent. Right, Team up with two to
• 47:36
  Speaker 1: three trusted friends and our partners, pull capital and divide labor, finance, operations,
• 47:43
  Speaker 1: customer service, figure out who's good at what, and divide
• 47:46
  Speaker 1: and conquer. You don't need to do this solo. If
• 47:49
  Speaker 1: you do this, by the way, do it through an LC,
• 47:51
  Speaker 1: a limited library of the corporation or another structure. Don't
• 47:53
  Speaker 1: do it just like the handshake and things like that
• 47:56
  Speaker 1: because people are really friendly when the money is coming
• 47:58
  Speaker 1: in and get really nasty when the money it's going
• 48:00
  Speaker 1: out or things go south. So make sure it's structured
• 48:03
  Speaker 1: and make sure it's documented and not emotional. Business is
• 48:06
  Speaker 1: not personal. Number six Private investor or local Angel investor group,
• 48:21
  Speaker 1: So retired executives and local investors looking for steady returns.
• 48:26
  Speaker 1: You want to pitch it like main Street private equity deal,
• 48:31
  Speaker 1: So you know, you want to have a pitch deck,
• 48:33
  Speaker 1: you want to have a professional presentation. You're just doing
• 48:36
  Speaker 1: it on Main Street versus Wall Street. Lastly, you can
• 48:39
  Speaker 1: get a home equity loan or a retirement rollover rob
• 48:44
  Speaker 1: r obs robs I use retirement funds or from your
• 48:47
  Speaker 1: four one K or your IRA without penalty under a
• 48:50
  Speaker 1: legal structure, which is common in the franchise world. Right, Okay,
• 48:56
  Speaker 1: So those were some examples of how the industries you
• 49:00
  Speaker 1: can go into and and and how you can finance.
• 49:03
  Speaker 1: Now I'm going to teach you very quickly in the
• 49:05
  Speaker 1: last few minutes we have together. If you enjoyed this,
• 49:07
  Speaker 1: by the way, let you do let me know when
• 49:09
  Speaker 1: you see pieces of this on social media, let me
• 49:11
  Speaker 1: know what you think I'm gonna tell you how to
• 49:14
  Speaker 1: how to value a business again, I want I don't
• 49:16
  Speaker 1: want you feeling unintelligent, like you didn't know this stuff,
• 49:19
  Speaker 1: because no where would you learn it. No one teaches
• 49:21
  Speaker 1: you financial literacy, No one teaches you capitalism. How would
• 49:23
  Speaker 1: you ever learn this is what we don't know. That
• 49:26
  Speaker 1: we don't know it is killing is what we think
• 49:27
  Speaker 1: we know. There's nothing wrong with not knowing something. Be nosy.
• 49:31
  Speaker 1: God give you two years and one mouth, so you
• 49:33
  Speaker 1: listen twice as much as you talk. So I'm going
• 49:36
  Speaker 1: to tell you now how to value the business that
• 49:38
  Speaker 1: you find. So average revenue ranges for mature businesses in
• 49:43
  Speaker 1: the ten accessible categories of industries that I just told
• 49:46
  Speaker 1: you about. Now, these are ballpark figures for healthy, established
• 49:50
  Speaker 1: businesses operating uh you know, in in succession targeted bucket.
• 50:00
  Speaker 1: It's meaning that these are folks who are in an
• 50:03
  Speaker 1: age range that they want to sell their business. Right. So,
• 50:07
  Speaker 1: and these are you know, traditional markets where there's a
• 50:11
  Speaker 1: vibrant economy. So home services industry that I've already covered,
• 50:17
  Speaker 1: the average revenue range will be five hundred thousand and
• 50:20
  Speaker 1: three million. On average, dental and medical practices eight hundred
• 50:22
  Speaker 1: thousand and two point five million, funeral home seven hundred
• 50:26
  Speaker 1: thousand to two million, daycares three hundred thousand to one
• 50:30
  Speaker 1: point two million, Auto repair shops four hundred thousand to
• 50:34
  Speaker 1: one point five million. These are individual locations. Hello, we're
• 50:39
  Speaker 1: talking about We're not talking about insignificant enterprises here. This
• 50:43
  Speaker 1: is the you know you can. You'll have a million
• 50:46
  Speaker 1: dollar business with one well run location, accounting in tax
• 50:53
  Speaker 1: firms of three hundred thousand and one point five million.
• 50:56
  Speaker 1: Barber shops and these typically have you know, three to
• 50:58
  Speaker 1: five to ten employees. Barber shops and salon one hundred
• 51:02
  Speaker 1: and fifty thousand, eight hundred thousand. This is a multi
• 51:05
  Speaker 1: chair salon, has eight hundred thousand dollars in revenue annually.
• 51:09
  Speaker 1: Logistics and delivery five hundred thousand to three million, plus
• 51:15
  Speaker 1: commercial cleaning get this, two hundred and fifty thousand to
• 51:18
  Speaker 1: two million on average. Franchise So you ain't you're not,
• 51:23
  Speaker 1: So you ain't too proud to clean? Now? Are you?
• 51:25
  Speaker 1: Two million dollars a year? Million dollars a year, I'll
• 51:27
  Speaker 1: take it. Franchise resales five hundred thousand to one point
• 51:31
  Speaker 1: five million on average. Now, the most common evaluation method
• 51:35
  Speaker 1: for small businesses is called a multiple seller discretionary earnings valuation,
• 51:41
  Speaker 1: So it's an SDE UH seller's discretionary earnings valuation. So
• 51:47
  Speaker 1: it's a multiple of an SDE right and essentially the
• 51:52
  Speaker 1: profit the owner takes plus any discretionary expenses like personal care,
• 52:00
  Speaker 1: et cetera. So here's how you do this. How you
• 52:02
  Speaker 1: calculate the SDE. You start with the net income of
• 52:06
  Speaker 1: the business. You add back owner's salary, depreciation, amortization, non
• 52:12
  Speaker 1: recurring expenses, personal expenses. So if the company has a
• 52:16
  Speaker 1: revenue of eight hundred thousand dollars a net profit of
• 52:19
  Speaker 1: one hundred and fifty thousand dollars, you'd add back owner's
• 52:22
  Speaker 1: salary and perks one hundred thousand dollars. The SDE there
• 52:26
  Speaker 1: is two hundred and fifty thousand dollars. Got that. If
• 52:30
  Speaker 1: you don't understand what I'm saying, just roll back the
• 52:32
  Speaker 1: podcast and listen to it again and pull out something
• 52:35
  Speaker 1: so you can write this down. Second step, I want
• 52:38
  Speaker 1: you to apply a market multiple. Okay, for most main
• 52:41
  Speaker 1: street businesses, the multiple ranges are between two x and
• 52:45
  Speaker 1: three point five x of the SDE, so it depends
• 52:48
  Speaker 1: on the industry. The risk profile the growth potential and
• 52:52
  Speaker 1: dependence on the owner. The more dependent on the owner
• 52:54
  Speaker 1: the business is the person selling it, the less value
• 52:57
  Speaker 1: is going to be for obvious reasons, the owner's leaving.
• 53:00
  Speaker 1: So if you have so, the valuation is SDE times multiple,
• 53:09
  Speaker 1: So two hundred fifty thousand dollars SDE times two point
• 53:13
  Speaker 1: five in this example is a six hundred and twenty
• 53:16
  Speaker 1: five thousand dollars business valuation. Got that, That's that's what
• 53:19
  Speaker 1: that's what you're going to buy the business for. In
• 53:21
  Speaker 1: this example, So if an SDS is one hundred and
• 53:26
  Speaker 1: fifty thousand dollars right multiple to two point five, the
• 53:30
  Speaker 1: business valuation is three seventy five K two fifty three
• 53:35
  Speaker 1: x multiple seven to fifty K value three fifty s
• 53:40
  Speaker 1: DK SDE. I'm sorry, three fifty three fifty thousand, three
• 53:46
  Speaker 1: x multiple three point four five multiple, three point five
• 53:49
  Speaker 1: x multiple one point two two five million. So if so,
• 53:54
  Speaker 1: things that decrease value, heavy owner involvement, customer concentration, outdated tech,
• 54:02
  Speaker 1: increasing value, non corecurring revenue. I'm sorry, no recurring revenue.
• 54:08
  Speaker 1: It's very important. That was that was my mess up.
• 54:11
  Speaker 1: It's important. Did you get this one right? Increased value
• 54:15
  Speaker 1: is recurring revenue naturally, and if it's just sort of
• 54:19
  Speaker 1: rents and repeat, if it does on its own like
• 54:20
  Speaker 1: a membership, my god, that's so good. So if you
• 54:23
  Speaker 1: have a dentist, a dental office and you have some
• 54:25
  Speaker 1: kind of a membership program, that's just passive. Great income.
• 54:28
  Speaker 1: I love that. That's making money, building wealth in your sleep.
• 54:31
  Speaker 1: Turnkey operations great tech, you know, management great, you know automation.
• 54:36
  Speaker 1: Management is in place. Strong brand that gives you an
• 54:39
  Speaker 1: increased value, might pay more for that. Okay, So profitability
• 54:44
  Speaker 1: and operations determine the value, not size alone. So you
• 54:47
  Speaker 1: have a one million dollar business losing money, it isn't
• 54:49
  Speaker 1: worth much. But a six hundred thousand dollars business netting
• 54:52
  Speaker 1: two hundred thousand dollars a year, that's a gold mine. Okay,
• 54:56
  Speaker 1: So let's now look at that. There's another somebody who's
• 54:59
  Speaker 1: an accountant or or investment bankers going down. We're talking
• 55:01
  Speaker 1: about SDE right now. We're talking about EBADA. That's for
• 55:05
  Speaker 1: a bigger business. So I'm gonna cover that in the
• 55:08
  Speaker 1: last part of this podcast. EBADA is earnings before interest, taxes, depreciation, amortization.
• 55:15
  Speaker 1: So SDE sellers discretionary earnings ebadah, bigger businesses earnings before interest, taxes,
• 55:25
  Speaker 1: depreciation and amortization. So how do they differ? Right, so
• 55:29
  Speaker 1: I said an st seller. Discretionary earnings is best for
• 55:33
  Speaker 1: small owner operating businesses less than five million dollars. Revenue
• 55:37
  Speaker 1: includes owner's salary plus personal perks. Shows total benefits to
• 55:41
  Speaker 1: a single owner, first time typical buyers at first time buyer,
• 55:45
  Speaker 1: individual entrepreneur buying a local HVAC company or salon or
• 55:51
  Speaker 1: small accounting firm. Okay, but EBADA earnings before taxes, interests, taxes,
• 55:57
  Speaker 1: depreciation and amortization. That's that's really mits or larger businesses
• 56:01
  Speaker 1: or five million dollars or more. This excludes owner's salary
• 56:07
  Speaker 1: and ad backs shows true operating performance. Okay, because basically
• 56:12
  Speaker 1: you have a bigger business, it doesn't. The owner's salary
• 56:15
  Speaker 1: whatever is almost irrelevant. And to pay somebody to be
• 56:17
  Speaker 1: the CEO of the company anyway, it's just sort of
• 56:20
  Speaker 1: you know where it's it's not it's not all that
• 56:23
  Speaker 1: material to a business running. You know, the owner's salary
• 56:25
  Speaker 1: is not the material. In fact, you assume that you
• 56:28
  Speaker 1: have a CEO in place with a ten million dollar business,
• 56:32
  Speaker 1: and so you just it's just the cost of do business.
• 56:34
  Speaker 1: So this excludes owner's salary in ad backs. It's typically
• 56:40
  Speaker 1: bought by a private equity firm, institutional buyer, or strategic buyer.
• 56:45
  Speaker 1: Acquiring a ten million dollars logistics company or regional medical
• 56:49
  Speaker 1: group is an example here, right, So if you're now
• 56:54
  Speaker 1: here's multiple valuation differences. If you're if you're buying a company,
• 57:01
  Speaker 1: a small one with an SDE approach, you gonna have
• 57:03
  Speaker 1: a multiple between two point zero to three point five
• 57:06
  Speaker 1: of the of the net you know, the net profit
• 57:09
  Speaker 1: of the business. If you're buying a business based on ebada,
• 57:13
  Speaker 1: it could be four point oh to seven point zero
• 57:16
  Speaker 1: and sometimes ten x the revenue of the real revenue
• 57:20
  Speaker 1: the profitability of that business because it has much more
• 57:24
  Speaker 1: potential because you can scale a larger business. If you're
• 57:27
  Speaker 1: buying a local business that runs well and with one owner,
• 57:32
  Speaker 1: think a barbershop, a dental office in HVAC, you use
• 57:35
  Speaker 1: ste If you're looking at something with a management team
• 57:39
  Speaker 1: or investor in the investors involved, that's that's when ebada
• 57:43
  Speaker 1: comes into play. I hope this has been helpful to you.
• 57:48
  Speaker 1: I hope I've broken down for you the how, the what,
• 57:52
  Speaker 1: the who and the where and where do you start?
• 57:55
  Speaker 1: And I even pointed you to a starting place, like
• 57:58
  Speaker 1: literally just drive down the street and look, you're you
• 58:02
  Speaker 1: just go crazy with opportunity. It's literally everywhere. And these companies,
• 58:09
  Speaker 1: the owners want to go. They want to go, and
• 58:12
  Speaker 1: you may meet a new friend along the way, you
• 58:14
  Speaker 1: may break you may break down racial barriers and bring, bring, bring,
• 58:18
  Speaker 1: create new new social circles. Because now you're talking about
• 58:22
  Speaker 1: business and people, and now you're talking about something that,
• 58:25
  Speaker 1: ever is a language that that that wealthy folks understand.
• 58:28
  Speaker 1: So now you're you're being invited to different country clubs
• 58:32
  Speaker 1: and private private meetings and different conferences, and your whole
• 58:36
  Speaker 1: world expands and and then they get a sense of
• 58:39
  Speaker 1: culture and community and they get to understand that these
• 58:42
  Speaker 1: black people are really smart like and they're reasonable people,
• 58:45
  Speaker 1: and so they start listening to you and not looking
• 58:49
  Speaker 1: at some crazy news article that suggests that you are
• 58:52
  Speaker 1: you know, you got five arms and three legs and
• 58:55
  Speaker 1: you're not smart, which is just of course not true.
• 58:57
  Speaker 1: We built this country for free. They didn't go get
• 59:01
  Speaker 1: us from Africa. We were dumb. They got us because
• 59:03
  Speaker 1: we were agricultural geniuses of the land, and they needed
• 59:05
  Speaker 1: us to be able to bring that land back to life.
• 59:08
  Speaker 1: Now what we're going to do is go from being
• 59:11
  Speaker 1: worked by the land and being owned by people to
• 59:15
  Speaker 1: owning the land and charting our own future and sharing
• 59:21
  Speaker 1: that opportunity with all of God's children. Are having this
• 59:24
  Speaker 1: opportunity to share with all of God's children. That's full circle.
• 59:27
  Speaker 1: Rainbows after storms. You cannot have a rainbow without a
• 59:31
  Speaker 1: storm first. It's a scientific fact and good philosophy too.
• 59:35
  Speaker 1: This is the civil rights movement, this is John O'Brien,
• 59:38
  Speaker 1: this is the Black Effect Network podcast Money and Wealth.
• 59:41
  Speaker 1: I'm glad that you spent this hour with me. I
• 59:43
  Speaker 1: hope that you felt it was worth it. I don't
• 59:46
  Speaker 1: want you to get mad. I want you to get even.
• 59:50
  Speaker 1: I want you to succeed what I'm at. I don't
• 59:53
  Speaker 1: want you to be send your time getting angry. It's
• 59:55
  Speaker 1: just going to make you old and honoree and unhappy. Right,
• 59:58
  Speaker 1: I want you to be optimst Whether the glasses half
• 1:00:01
  Speaker 1: full of the glass half empty depends what was looking
• 1:00:03
  Speaker 1: at the class, Whether you believe you can, whether you
• 1:00:05
  Speaker 1: believe you can't. You're absolutely right An entrepreneur works eighteen
• 1:00:10
  Speaker 1: hours day to keep from getting a job like I
• 1:00:13
  Speaker 1: don't even work. I do what I love. I do
• 1:00:17
  Speaker 1: it for free. Give this world good energy. That's what
• 1:00:19
  Speaker 1: my t shirt says, and that's what your life should
• 1:00:22
  Speaker 1: be about. Remember that disease is often disease, right. So
• 1:00:26
  Speaker 1: I want you to put good energy in this world.
• 1:00:28
  Speaker 1: I want you to put love into this world. I
• 1:00:31
  Speaker 1: want you to put positive vibes in this world. We're
• 1:00:34
  Speaker 1: not human beings having a spiritual experience. We're spiritual beings
• 1:00:38
  Speaker 1: having a human experience. Yes, this is a money podcast,
• 1:00:41
  Speaker 1: but it's also about wealth, and wealth is spiritual. Wealth
• 1:00:45
  Speaker 1: is energy. Because if I don't like me, I'm not
• 1:00:47
  Speaker 1: gonna like you. If I don't feel good about me,
• 1:00:49
  Speaker 1: I'm not going to feel good about you. If I
• 1:00:50
  Speaker 1: don't respect me, don't expect me to respect you. I
• 1:00:52
  Speaker 1: don't have If I don't have a purpose in my life,
• 1:00:55
  Speaker 1: I'll make your life a living hell. Whatever goes around
• 1:00:57
  Speaker 1: comes around. There's not enough police to save you for
• 1:01:00
  Speaker 1: somebody who does who has no hope. The most dangerous
• 1:01:02
  Speaker 1: person in the world is a person with no hope.
• 1:01:05
  Speaker 1: We all have an interest. I believe in enlightened self interest.
• 1:01:09
  Speaker 1: Whether you're white and wealthy listening to this or black
• 1:01:11
  Speaker 1: and struggling, whether you're a billionaire and millionaire, somebody trying
• 1:01:14
  Speaker 1: to buy some are hello, can I get an a man?
• 1:01:17
  Speaker 1: We all have an interest in making sure that anybody
• 1:01:20
  Speaker 1: who wants to succeed can. All of us have an
• 1:01:23
  Speaker 1: interest in giving people a reason for hope. And that's
• 1:01:27
  Speaker 1: what this podcast is about. It's good capitalism and scale.
• 1:01:31
  Speaker 1: Let's go change the world together. I'm out O'Brien by
• 1:01:35
  Speaker 1: the book. Subscribe to the podcast Money and Wealth and
• 1:01:38
  Speaker 1: go to Operation Hope. Tell him I sent you. They'll
• 1:01:40
  Speaker 1: give you one thousand dollars initial scholarship for coaching and
• 1:01:43
  Speaker 1: counseling and get your credits, grow up, your debt down,
• 1:01:45
  Speaker 1: your savings up, and I will do a special podcast
• 1:01:48
  Speaker 1: just on breaking down all the empowerment things going on
• 1:01:51
  Speaker 1: at Operation Hope to give you the tools that you
• 1:01:53
  Speaker 1: need to lift yourself up. As I know that I
• 1:01:57
  Speaker 1: assume you know what's going on at Operation Hope. Should
• 1:02:00
  Speaker 1: not assume, because when you do that, you make a
• 1:02:02
  Speaker 1: you know what out of you and me to assume
• 1:02:04
  Speaker 1: I mean, okay, by Money and Wealth with John O'Brien
• 1:02:21
  Speaker 1: is a production of the Black Effect Podcast Network. For
• 1:02:24
  Speaker 1: more podcasts from the Black Effect Podcast Network, visit the
• 1:02:27
  Speaker 1: iHeartRadio app, Apple Podcasts, or wherever you listen to your
• 1:02:32
  Speaker 1: favorite shows.