Why 99% of Entrepreneurs Fail to Exit (And How Not To) | Eddie Wilson DSH #1094

Summary

Digital Social Hour: Why 99% of Entrepreneurs Fail to Exit (And How Not To) | Eddie Wilson DSH #1094

Release Date: January 12, 2025
Host: Sean Kelly
Guest: Eddie Wilson, "The King of Exits"

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Introduction to Eddie Wilson

In this compelling episode of Digital Social Hour, host Sean Kelly engages in an in-depth conversation with Eddie Wilson, a renowned entrepreneur known as "The King of Exits." With over 100 successful company exits under his belt, Eddie shares his unique insights into why most entrepreneurs fail to exit their businesses and how to successfully navigate the complexities of selling a company.

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Eddie's Journey and Philosophy

Eddie begins by discussing his approach to building and selling companies, emphasizing operational efficiency and community building. He explains, "All I'm doing is taking something that already exists that's good, making it better... I’ve gotten really good at seeing the small guy for what he can be" [00:00]. His strategy revolves around enhancing existing businesses to maximize their value, making them attractive to larger entities.

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The Role of Community and Events

Eddie highlights the importance of building a strong community and leveraging events to foster educational and inspirational growth. He mentions, "Most of my exits were tied to community... Lately we've gotten more inspirational. Self-help, aspiring entrepreneurs, stuff like that" [00:53]. The shift towards more inspirational content caters to entrepreneurs seeking positivity amidst economic and political challenges.

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Shifts in the Market and the Power of Podcasts

The discussion delves into the rising influence of podcasts in shaping public opinion, especially in political arenas. Eddie asserts, "I think podcasts are gonna be huge in the next election" [02:34], drawing parallels to their significant impact during previous election cycles. He underscores the control podcasts offer over messaging, making them a powerful tool for engagement and influence.

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Navigating the Red Ocean: Challenges in Saturated Markets

Eddie explains the concept of "red ocean" versus "blue ocean" strategies. "Red ocean, you have a ton of sharks, a ton of competition... it's a constant fight" [08:19]. He shares his experiences in the highly competitive health and wellness sector, where influencer dominance makes market entry challenging. This saturation necessitates innovative approaches to stand out and succeed.

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Eddie's Success in Acquisitions and Operational Efficiency

Eddie details his methodology for acquiring and scaling businesses. "I roll up insurance companies, tax firms, so on and so forth... they pay top because you give them a good company with a manual, my operating system" [03:54]. His focus on operational efficiency and a standardized operating system ensures that businesses are not only attractive for acquisition but also poised for sustained growth.

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From Materialism to Altruism: Finding True Fulfillment

A pivotal moment in Eddie's narrative is his transition from pursuing financial success to seeking fulfillment through humanitarian efforts. Reflecting on his first major exit, he shares, "I decided I was going to learn that game as good as anyone, and then I was going to do it right... I'm an altruist at heart. I want everyone to win" [16:23]. This shift drives his current endeavors in philanthropy, including building orphanages and feeding centers worldwide.

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The Psychological Toll of Success

Eddie touches on the often-overlooked mental health challenges faced by the wealthy. He recounts the tragic loss of a friend who, despite apparent success, struggled with depression: "He had everything anybody would ever want, but he was just really depressed" [23:02]. This underscores the importance of genuine fulfillment over material wealth, a theme that resonates deeply throughout the conversation.

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Building Sellable Businesses: Key Factors for Successful Exits

Eddie outlines the critical elements that make a business attractive for acquisition:

1. Revenue Growth and EBITDA: "Majority are still sold on EBITDA" [26:01].
2. Intellectual Property (IP): Unique technology or processes that differentiate the business.
3. Operating System: Standardized operations that provide continuity and efficiency, ensuring smooth transitions post-acquisition.

He emphasizes that focusing on these areas not only increases business value but also attracts multiple potential buyers, leading to better exit opportunities.

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Eddie's Track Record and Due Diligence

Boasting a 78% positive track record, Eddie contrasts his success rate with the national averages of venture capital and private equity firms. "The average PE firm is in the 30s... I'm in the high 70s" [28:11]. His meticulous approach to due diligence, operational structuring, and defining clear exit paths sets him apart, ensuring consistent success in his ventures.

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The Future and Ongoing Projects

Looking ahead, Eddie expresses excitement about expanding his tax firm and continuing the momentum with Aspire, his renowned event series. "Aspire hit right off the bat... it's real. This is the exact exactly who we marketed to" [09:33]. Despite scaling rapidly, Eddie remains passionate about inspiring others and making a substantial impact through his nonprofit initiatives.

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Final Thoughts: Authenticity Over Flashiness

Eddie concludes by advocating for authenticity in personal and professional lives. He reflects on his own experiences with materialism and the superficial allure of success, stating, "If you have success, then enjoy it fast because you're going to realize that that really is not where you're going to find fulfillment" [21:56]. This philosophy drives his efforts to create meaningful, impactful businesses and inspire others to seek true fulfillment beyond material gains.

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Key Takeaways

• Operational Efficiency: Streamlining business operations is crucial for scalability and attractiveness to buyers.
• Community Building: Establishing a strong community fosters loyalty and creates a foundation for business growth.
• Authenticity and Fulfillment: True success lies in authentic fulfillment and giving back, rather than chasing material wealth.
• Strategic Exits: Focusing on revenue growth, unique IP, and standardized operations increases the likelihood of successful business exits.
• Mental Health Awareness: Success does not equate to happiness; prioritizing mental well-being is essential.

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Notable Quotes

• "I'm an altruist at heart. I want everyone to win." [16:23] – Eddie Wilson
• "If you have success, then enjoy it fast because you're going to realize that that really is not where you're going to find fulfillment." [21:56] – Eddie Wilson
• "We create these milestones and then it's a massive letdown." [22:32] – Sean Kelly

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Eddie Wilson's insights offer a profound understanding of the entrepreneurial landscape, emphasizing the importance of operational excellence, community engagement, and authentic fulfillment. His journey from navigating the challenges of business exits to dedicating himself to humanitarian efforts is both inspiring and instructive for aspiring entrepreneurs seeking not only financial success but also meaningful impact.

Transcript

[Eddie Wilson]

Mid cap space, and then I serve it up to the big guy. So with operational efficiency, all I'm doing is taking something that already exists that's good, making it better and making it, you know, a piece of, like, something that they can actually enjoy, take advantage of and run. And so what I've gotten really good at is seeing the small guy for what he can be.

[Unknown Host]

All right, guys, Eddie Wilson is here today. We've. We've had this on the books for a while. Thanks for coming in, man.

[Eddie Wilson]

Yeah, glad to be here.

[Unknown Host]

Yeah, I think we scheduled a year ago because you're so busy traveling.

[Eddie Wilson]

Long time.

[Unknown Host]

Where you been lately?

[Eddie Wilson]

Everywhere. Nashville, Chicago, Louisiana, you name it. London, Egypt. I mean, wow. Yeah, all over.

[Unknown Host]

And you're having events in every city.

[Eddie Wilson]

You know, I have a nonprofit on the international stuff, so I don't do a lot of events internationally. I'll speak four or five times a year, but for the most part, the events are in the U.S. got it.

[Unknown Host]

And you have over 100 exits. So did you start doing these events after you were selling companies?

[Eddie Wilson]

I did. You know, I've always built community, and then as I built community, I would actually build or buy companies to serve that community. So most of my exits were tied to community. So I've been doing events for a long time. But they're more educational than inspirational. Lately we've gotten more inspirational. Self help, aspiring entrepreneurs, stuff like that.

[Unknown Host]

So you're seeing that thing in the market where people want more inspiration these days.

[Eddie Wilson]

They do. You know, they get beat up on everything. They get beat up on the economy, they get beat up on politics. They get beat up on everything. And it's like. And then you find this source of positivity and inspiration. They kind of flock to it today.

[Unknown Host]

I could see that. Yeah. I've been to like five Aspire tours.

[Eddie Wilson]

Really?

[Unknown Host]

Yeah.

[Eddie Wilson]

Wow.

[Unknown Host]

I will say some of them are very emotional.

[Eddie Wilson]

Yeah.

[Unknown Host]

I remember vividly some speakers crying.

[Eddie Wilson]

Sure.

[Unknown Host]

Like back to back to back. I'm like, damn.

[Eddie Wilson]

This is one of the big pushes that we have, is for them to be authentic and open and real. You'll see the people that come back over and over again on our stage is somebody that's willing to open up. Because if you can't open up, if you can't get vulnerable with our crowd, you're really not going to give them a pathway to success. And so we have had a lot of emotional moments there because we ask them to be vulnerable. And then all of a sudden you're sharing your, you know, soul to three, 4,000 people. And it can be emotional for sure.

[Unknown Host]

People like that authenticity these days. That's why podcasts are taking off. You how instrumental they were with the election.

[Eddie Wilson]

Yeah, they're huge.

[Unknown Host]

I was just watching Patrick Bet David was on Graham Stephan's show and he was saying how next election cycle people will be debating on podcasts.

[Eddie Wilson]

I think they will. I think Rogan kind of created that entryway and it was so funny because I felt like all of us were like, why wouldn't you go? I mean, look at it. Look at the eyeballs on these shows versus mass media. And you can control your message, you know, and super powerful. I think podcasts are gonna be huge in the next election.

[Unknown Host]

I think so too.

[Eddie Wilson]

I think the way that we saw meta back maybe in the Obama admin then get, you know, hyper used during the Hillary, you know, Trump election. I think the same thing you're going to see like that natural, like inroads this past one and then you see massive digital media. Yeah, I actually do a lot with my. I used to have an ad agency that we primarily consulted big election. We, you know, promote a lot of election.

[Unknown Host]

Oh, really?

[Eddie Wilson]

Process. Yeah. And ran some campaigns. And what you see is like an earmarking of the budget early. So as these big organizations start running all of their ad spend to try to gain dollars, they're already earmarking. And I was talking to an election official about two weeks ago, and he said he believed that over 60% of all spend would go into digital in the next election. Huge. Because you think about today, I mean, probably 70% on national TV, radio, so on and so forth. It's going to be a massive shift.

[Unknown Host]

Yeah, I see. I was seeing billboards everywhere when Kamala was running. Even Trump had a lot of billboards. They Both raised over $1 billion.

[Eddie Wilson]

It's wild.

[Unknown Host]

Crazy, right?

[Eddie Wilson]

But think about that. 60% of essentially $2 billion now moving into mass, you know, into digital media. Some of these podcasts are going to do very, very well financially if they position themselves well specifically to one side or another.

[Unknown Host]

Yeah. Would you ever acquire a podcast?

[Eddie Wilson]

I would. I actually love the idea of aggregating people eyeballs data. Right. And so again, it goes back to if you have a community that knows, likes and trusts you, then you can serve them with products and not products they don't want, but products that already exist on their P. Ls. That's why I roll up insurance companies, tax firms, so on and so forth. Because if you can give them a better option, what they already have. They'll naturally migrate over and then the stickiness is incredible because they're in a community that you're curating, right?

[Unknown Host]

Yeah, they have very loyal fan bases. Exactly like Sean Ryan show. I read all the comments of these shows. I mean these guys love them. It's crazy. Are you still actively acquir companies?

[Eddie Wilson]

Right now I am. We have gone more in the service based space, in the financial space. As of late we have exited out of all of the we, we've, we sold Fitcon and a few of those brands that were tied to more health, wellness and fitness.

[Unknown Host]

You saw that kind of phasing out the health stuff.

[Eddie Wilson]

It's so red ocean, you know. I want to play in a space where I can innovate, where I have a community that I can advise, you know, curate. And that was just one of those ones where Nerds Listeners as we go.

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[Eddie Wilson]

To make inroads there. We had a big show and we had a big community, but it was, it was tough. It was really tough. Very. It was probably the most red ocean experiences I've had where it seemed like there was people everywhere and I've been in banking, mortgage, you know, insurance, you know these places that are very, very difficult. But it was tough.

[Unknown Host]

Interesting. What does red ocean mean?

[Eddie Wilson]

Red ocean, you red ocean, blue ocean. So you got blue ocean which is like there's, there's no sharks in the water. Red oceans, a piece of meat got dropped in, right? And like all the sharks come and feed. That's, that's the business culture, right? Is like where you are jumping in, where there are a ton, a ton of sharks, a ton of competition and, and you You. It's. It's a fight. It's a constant fight.

[Unknown Host]

So there was a lot of those events in the health space.

[Eddie Wilson]

It's the events. It's also the influencer. So the influencers really control that space, you know, so in health and fitness, you know, you've got massive influence from digital influencers, and if they don't show up to your show, if you don't play ball with them, you can't just, like, run nuclear media. You can't just, like, run ads and try to get people there. You have to play with the people who have influence, and they really control it. And most of them have their own shows, their own, you know, digital outlets, their own communities. So they don't necessarily want to bring them into a community that they could access. Maybe, you know, a hundred influencers that, you know, would begin to create attrition to their own list in their own, you know, community.

[Unknown Host]

Makes sense. So you're kind of at their Mercy.

[Eddie Wilson]

You are 100. Yes.

[Unknown Host]

So you'd rather be in full control of your companies.

[Eddie Wilson]

100.

[Unknown Host]

Where you're making all the decisions. Yeah, that makes sense. That's why Aspire's crushing it.

[Eddie Wilson]

It is, yeah.

[Unknown Host]

I mean, you go to every major city and thousands of people.

[Eddie Wilson]

Every time we do, we've hit. Well, that was never really our intent. We thought we'd do three or four and see how it goes. We sold out the first three and knew we were onto something. Felt like our messaging hit. And how rare is that to actually, like, try something and then your messaging hits immediately? Usually it's like you're testing, trying, you know, growing and modifying. And for us, Aspire hit right off the bat. I think it's the first time in all my companies where something just hit immediately.

[Unknown Host]

Wow. And you've had hundreds of companies.

[Eddie Wilson]

Yeah, hundreds. But the resonance was crazy. Like, you felt it, like, the moment you got there, the people walk in and you're like, wait a minute. This is the exact. Exactly who we marketed to. They showed up, and then they like the resonance with the actual speaker and the content.

[Unknown Host]

Right.

[Eddie Wilson]

You knew. We knew we had something. It felt like lightning in the bottle the very first show.

[Unknown Host]

Yeah. It's energetic, man. That atmosphere, it's inspirational. You're changing lives, and I feel like that's. You can monetize that with all those emotions involved.

[Eddie Wilson]

Sure, Absolutely.

[Unknown Host]

Yeah. And you guys are having, what, an.

[Eddie Wilson]

Event a month or an event a month. And we're scheduled out through all of 2025 already.

[Unknown Host]

Wow.

[Eddie Wilson]

We already have all 12 markets picked. I think we got probably 11 or 12 of the venues already locked down. Nice seekers already, you know, building. It's. It's been an interesting thing in the beginning when you're trying to get all these celebrities, you know, it's like you're trying to convince them. And the first time we ever went after Kevin hart, we threw 500 grand at him.

[Unknown Host]

Holy crap.

[Eddie Wilson]

For 30 minutes, and he wouldn't even pick up the phone. You know, it's like. And then he ends up coming in later for a lot less because the show had so much notoriety. You know, we tried calling everybody, man. Like, Mark Cuban said no, O'Leary said no. And then they see the notoriety, and then all of a sudden their agents start calling us and saying, do you think that we should be on your stage? So it just puts you in a position of strength, you know, now. But in the beginning, it was tough trying to get those people to align with us. And they don't want to align with somebody that's like, selling stuff or, you know, monetizing their brand or, you know, their. Their audience 100%.

[Unknown Host]

Yeah. It's a risk for them when they speak at certain events. So I understand that perspective. Same with the show, though. I couldn't get any of those guys on at first. I didn't have the viewership.

[Eddie Wilson]

And now you have everyone, right?

[Unknown Host]

Yeah. Now more people reach out to me than I hit up.

[Eddie Wilson]

That's great.

[Unknown Host]

But before it was the complete opposite.

[Eddie Wilson]

That's awesome.

[Unknown Host]

So you got to start somewhere. You have to, you know, but when you.

[Eddie Wilson]

Then you hit critical mass, and then all of a sudden you start, you know, playing downhill versus uphill.

[Unknown Host]

Absolutely. Are you doing anything in the AI space?

[Eddie Wilson]

I'm doing a little in the AI space. It's one of the big curiosities for me right now because I'm a hardcore operator. I buy businesses, but I love to operate the business. And to the degree that you can create efficiency in a business is the degree you create both success, longevity, but also enterprise value. What you're going to ultimately sell it for. Where AI really creates a gap is the efficiency side. So, like, I have operating system empire, operating system that I put on all my businesses. But it's like that AI, we're messing with AI, trying to determine how to make even our operating system more efficient so that we can get to better success metrics, you know, faster. And so I'm not necessarily necessarily building tech that I'm going to sell the public for AI. I'm using AI to try to maximize my operational efficiency in my company.

[Unknown Host]

Got it? Yeah. I couldn't tell if that was a bubble or not, so I kind of stayed out for now.

[Eddie Wilson]

I don't think it's a bubble. I mean, I think the early investments, early adopter type stuff is a little bit of a bubble. But not enough money moved into it, you know, like the crypto space or did.com boom. I mean you didn't see massive money moving in early, but what you saw was massive adoption by the big brands, you know, like Microsoft, IBM, Apple. And so I think that was a good indicator that it's a direction that the country is going to move.

[Unknown Host]

How did you get so good at selling? Because that's something everyone struggles with, selling their companies.

[Eddie Wilson]

You know, that's probably what I get asked. I get asked two questions all the time. Number one, how do you operate so many companies simultaneously? Number two, how do you sell so many? My theory is this. You know, there's what I call like three fish in the ocean. You've got this minnow, right? That's the small mom and pop business. That's the guy that's doing, you know, a million, 2 million, $3 million. You got this mid cap space of guys that are doing 8, 58 to 15 million. And then you have these big private equity firms that only buy companies at 100 million. There, there, there's a trillion dollars sitting over here liquid ready to buy. There's 15 million baby boomers over here that don't know how to sell their business. And less than 1%, they're 15 million that will sell their business in the next seven years, walk out and less than 1% of them will actually sell. So the problem right now is, is getting this minnow to this whale. The whale can't feed on minnows. So it has to happen is as guys like me go in, roll up 2 or 3 or 5 or take something that I can 10x, I move it into the mid cap space and then I serve it up to the big guy. So with operational efficiency, all I'm doing is taking something that already exists that's good, making it better and making it, you know, a piece like something that they can actually enjoy, take advantage of and run. And so what I've gotten really good at is seeing the small guy for what he can be. And then really it's operating the company efficiently and effectively to get it to the highest value. And then I have all these relationships. I mean I have PE firms that call me every month saying, what do you have to sell us. Because if you can give them a good company with a manual, my operating system of how to run it, they'll pay. They'll pay top.

[Unknown Host]

Wow. You just package it, present it nicely to them. Interesting.

[Eddie Wilson]

Yeah, I mean, I get a lot of flack for, like, you know, corporate raider. I'm taking. It's like, that's not the case. Like, I'm not actually, like, coming in and destroying companies. What I'm actually doing is coming into a company that's got 10 employees with a million bucks and turning it into a company that has 17 employees, that's doing 5 million, but his value is 10x, you know, now I can oftentimes take that owner that's willing to partner with me and make him an exponential return on that business.

[Unknown Host]

Right. Did you have a mentor show you how to do this?

[Eddie Wilson]

No. You know, it was. It was interesting. I stumbled into this by accident. My first company I sold, I got taken advantage of by a bunch of corporate executives. And I was sitting across the table, super frustrated, being taken advantage of, and knew that I just was outmatched. I knew that they were playing a game I did not understand.

[Unknown Host]

Right.

[Eddie Wilson]

And I decided that day I made good money, but I didn't make the money I should have. I probably lost 30 million on that sale. Whoa. Yeah. My first big exit. And should have had 30 million more in my pocket. And I walked out of there that day. My mom always taught me when I was a kid, you know, find gratitude in any moment. It's a catalyst for success versus, like, putting a ceiling in your life. And I walked out of there like, okay, what can I be grateful for? I have some money in my pocket. I get to go, you know, live out my life without the, you know, need to manage this company. And I decided that day I was like, I'm going to get as good at this game as they are, but I'm going to play it in a very proper way where both sides win. I'm not going to sit across the table and take advantage of somebody. I'm not going to do that. They took advantage of me that day. And so part the impetus of a lot of what I'm doing is really based on I decided I was going to learn that game as good as anyone, and then I was going to do it right. I was going to make sure that people could win with me. You know, like, I'm an altruist at heart. I want everyone to win.

[Unknown Host]

I love that. So when you say taking advantage, what did that look like? From their end.

[Eddie Wilson]

So from there. So what happened was, is I was sourcing capital. I had a big ad agency. We. That was when I was dealing a lot in the political scene. But we were the ad agency of some big. Big sandwich chains across the nation and some sports bars and stuff like that. And I had contracts, and I was offered another contract to take another 30 million in ad spend for a big sandwich chain. And. But I didn't have the capital they would make. You essentially, like, if you're buying radio and TV and billboards for them, you had to put it out there and spend and then wait for 30 to 60 days to get your money back from the advertiser. Wow. And that's just how it worked. Well, I didn't have $30 million to just put out there and sit on for 30 to 60 days. So I was sourcing capital. Was young, didn't know what I was doing. Went to Merrill Lynch. This investment banker said, hey, I'll get the. I'll get a group of guys that'll do this for you. Cool. We go to the closing table. I just thought, it's a group of investors. And what it was was the lawyers for the largest advertising agency in the world that I had stole the account from. So they were like, hey, by the way, that account that you have today, we're going to get it back. We're going to buy your company. I was like, you're not buying my company. And they were like, well, we already know that you signed the contract expecting the capital today. And they were like, we're not giving you capital, but we are going to buy your business. Business. And they're like, we're gonna give you 24 hours to sign this doc, or else we'll let you go out of business and we'll take it anyways. Whoa. Yeah. It was like. I mean, that. That was the moment that you're sitting across the table from three lawyers and a, you know, Wall street shark, and I'm looking at my guy going, why didn't you tell me this? He was like, I didn't know. I was like, well, how am I supposed to know? I was in my 20s, you know?

[Unknown Host]

Yeah.

[Eddie Wilson]

So I ended up getting seven times EBITDA, which is a great return of my business, but I left a lot of money on the table. You know, I was. I was actually lucky that they did what they did because they really. They could have bled me out, and. And I would have went bankrupt.

[Unknown Host]

Damn. What a story.

[Eddie Wilson]

Yeah.

[Unknown Host]

That's one of those moments in your Life where you look back and you're like, that was a life changing moment.

[Eddie Wilson]

Yeah. You know, now I have this moniker, the king of exits. Well, it, it happened because of that moment. You know, it wasn't like I had some mentor that said, I'm going to teach you how to do this. You know, it was me sitting there going, I'm not, I'm not gonna let that happen to me again.

[Unknown Host]

Nice. You got a taste of that first one and you wanted more.

[Eddie Wilson]

Absolutely.

[Unknown Host]

Is there an end goal for you?

[Eddie Wilson]

The end goal has moved into more of an altruist motive. You know, you get to a place where, you know, if you make 3, 4, 5 million bucks a year and then you go to 10, your lifestyle just doesn't change. There's not another house you want, there's not another car jet, you know, so, so. And there's a lack of fulfillment. Right. So you're climbing this mountaintop and you realize like, well, the next mountaintop that looks cool really doesn't do anything for me. So you like lack all this fulfillment. And so a few years back when I had the big exits, I really turned towards humanitarian good and started building orphanages feeding centers around the world. And really my goal today and the reason I still do it, our private equity firm today has a give back motive. Everything we do, we build aspire, everything is tied to how much more can I endow to this nonprofit, this foundation, to just, you know, empower it for long term success. And so, you know, we feed about 4,300 kids a day. Feed and educate them around the world or just feeding centers, I want to get that to 10,000 in the short term. And I just want to make massive impact. And we're building clinics around the world, we're building sustainable businesses, digging water wells, you know, it's like that. That's where my real fulfillment comes. And so every motive I have today in buying and selling companies, growing companies, is tied to that, like, because I don't need, you know, so you get to that point where it's like another car, like what does it do for you? You know, but you go change 10 orphans lives and it does everything.

[Unknown Host]

Oh yeah, yeah. Feels great about it.

[Eddie Wilson]

Feels amazing.

[Unknown Host]

Have you always been pretty giving growing up?

[Eddie Wilson]

Yeah. You know, my dad was, and I watched my father, who is extreme at giving. Even though he's an entrepreneur and didn't always have much, he still gave. I was taught that as a value and I, and I would find little glimpses of it. But then when I started doing at A bigger level, you know, that's why Dan Fleischman and I do a lot together. Others. It's like, because you know, people with that same heart, you get that feeling and then. Then you crave that feeling. Then all you want to do is, is continue with it and get bigger at it, you know?

[Unknown Host]

That's super cool, man. Yeah, I try to give as much as I can.

[Eddie Wilson]

Awesome.

[Unknown Host]

I went through that materialism phase. I'm not going to lie.

[Eddie Wilson]

We all do. I mean, especially when you're first finding success because you think it's the payoff, the reward for all the hard work you've done. Right. And you're like, you kind of convince yourself like, I deserve it. You're like, I did all this work. And then you get there and then you're driving in your Lamborghini. You're like, I mean, this is cool. People are smiling, the waving, but kids are taking photos. But it's like you pull that in the garage and then it's like you can only drive it for so many days, you know, it's really not that interesting. You know, I went from. You go from a 5,000 square foot house to a 10,000 square foot house and it's like, it's still just as empty, you know, like, you know, I think we all go through it and I think the materialism phase is honestly necessary. So I never. You'll never see me give someone a hard time that goes out and buys a jet. I don't care. Take a selfie with your jet and your roles and pull up to it. Who cares? Right? Like, because I think what happens is the people that experience that faster get to emptiness faster, which then allows them to find success faster, which true success with helping others. So I do a lot of time, I get to do a lot of work where I take entrepreneurs to the field with me, like, hey, let's go do something together that impacts other people. And you watch that truly change their life.

[Unknown Host]

Wow.

[Eddie Wilson]

Them pulling up to their jet and their roles, that doesn't change their life.

[Unknown Host]

Yeah, it doesn't at all.

[Eddie Wilson]

You know, it gives them a sense of, you know, it gives them a euphoric hit when they. Somebody on social tells them how big they are. But, you know, it's like it's empty. There's no faster they get there, the faster they can actually get the true to, true to success.

[Unknown Host]

Right. Plus, there's no limit to the spending. No, you'll just keep buying the next thing.

[Eddie Wilson]

Never.

[Unknown Host]

Yeah, that's a dangerous game about it. Yeah. Even chasing, like, just money in the bank, too. It's kind of a risky mindset.

[Eddie Wilson]

It's a risky mindset, but again, I go back to. I don't throw shade at people that, you know, are going through that phase of their life, you know, like, I don't care. Like, if you have success, then enjoy it. But I will tell you, enjoy it fast because you're going to realize that that really is not where you're going to find fulfillment. Moment.

[Unknown Host]

Absolutely. Yeah. I remember the day I became a millionaire. I was like, my life's gonna change. And then it happened. Nothing. And it's five minutes of happiness.

[Eddie Wilson]

Still just a Tuesday.

[Unknown Host]

Yeah.

[Eddie Wilson]

You still eat the same food.

[Unknown Host]

It was crazy. But I committed years to that mindset of my life's gonna be amazing.

[Eddie Wilson]

We all do. And we. We create these milestones and then it's a massive letdown. Yeah.

[Unknown Host]

Yeah.

[Eddie Wilson]

Most of the conversations I have today, because I'm. I spend my time with a lot of the kind of uber wealthy because of the circle I'm in.

[Unknown Host]

Yeah.

[Eddie Wilson]

And that's the conversations we have.

[Unknown Host]

All the mindset.

[Eddie Wilson]

Yeah. Mindset. It's, you know, because it's not about another company or another idea. It's about your perception and experience of what you're building, you know?

[Unknown Host]

Yeah. So, yeah, the uber wealthy is an interesting topic because their suicide rate is actually higher than average.

[Eddie Wilson]

Very high.

[Unknown Host]

Isn't that crazy?

[Eddie Wilson]

I had a friend that was doing really, really well a year ago and took his life. Whoa. And it was a massive shock because, you know, his social look like he was on top of the world. He is. Companies are big. He has this big investment firm. Everyone was like, he must have had some bad days coming or invested in some bad stuff, you know? And then everybody, like, when they actually got into. They're like, no, he's just super depressed. Like, he had everything anybody would ever want, but he was just really depressed.

[Unknown Host]

Interesting.

[Eddie Wilson]

He's lonely.

[Unknown Host]

He didn't tell you at all?

[Eddie Wilson]

No.

[Unknown Host]

Wow.

[Eddie Wilson]

Didn't. There was one guy out of our kind of circle of friends that said, yeah. He kind of showed some signs of that, you know, like I. He was happy on top of the world. Every time I talked to him.

[Unknown Host]

Damn.

[Eddie Wilson]

But again, it's that. It's that facade. It's that Persona. Because we believe that money is going to give us happiness so much that when we have it, we feel like we have to pretend that it does.

[Unknown Host]

Right.

[Eddie Wilson]

Because if not, then you've worked your whole life for something that's not real. And and it, it's not right. Like that's the reality of it is if you're chasing money and you're chasing happiness through money, it will always elude you.

[Unknown Host]

Yeah. It's easy to put on that facade on social media too.

[Eddie Wilson]

For sure.

[Unknown Host]

That's why I try not to post anything flashy or anything. I know some people do it to get like attention and customers, which is fine.

[Eddie Wilson]

Yeah.

[Unknown Host]

But for me, I did it once and I regretted it. Oh my God. I posted 100k cash. Yeah. On my story. I was, I was dumb. I was like 21. I just sold a lot of sports cards to a card shop. Next day people are at my apartment. Yeah, I had to move out of L. A.

[Eddie Wilson]

Asking for money or what?

[Unknown Host]

Trying to rob me. I had to move out of L. A. I got out of L. A because of that.

[Eddie Wilson]

Wow, that's 100 grand. A body bodyguard, you know, I know I needed one.

[Unknown Host]

I almost got kidnapped. It was crazy. Yeah, I don't flex anymore.

[Eddie Wilson]

I, you know, that is the hardest thing. I get asked that all the time, like, why don't you show more of your lifestyle? I show just enough to show the people that are following that it's real. And that's the hard, that's the hard line. Because oftentimes the 22 year old, the 25 year old, they're looking at what I'm doing and they want to know is, is it authentic? Because they see social and nothing is real.

[Unknown Host]

Right.

[Eddie Wilson]

So I have to show enough that they're like, okay, this guy actually has sold something for a billion. Like they, they need something to anchor into. And that's hard because I don't ever want to show them that that's actually where true success is. So it's like we really focus hard, especially on my social, like showing glimpses of it, like, so it's real. You can validate it, like, check it out. But let me show you what I really love. And so we spent a lot of time posting stuff with impact others and businesses and coaching and stuff like that. Because that's really where you find.

[Unknown Host]

Yeah, I think you do well, you show the speakers you're interviewing on stage, you show the thousands of attendees. It's all real people.

[Eddie Wilson]

Yeah.

[Unknown Host]

You know, some people are just. Yeah. A little too flashy with it.

[Eddie Wilson]

Yeah.

[Unknown Host]

But it works for them, so.

[Eddie Wilson]

It does. And I just, I don't know that I'd ever feel good about myself if I sold a bunch of courses or things based on what, what the output of my life was. Versus what my life truly is. That makes sense.

[Unknown Host]

Yeah.

[Eddie Wilson]

You know, I don't want to sell something based on the output or the, the accoutrements, the things that I have. I want to sell it because of the content of my heart.

[Unknown Host]

Right.

[Eddie Wilson]

Or my mind, you know.

[Unknown Host]

So would you make a course on how to sell a business?

[Eddie Wilson]

Yeah, I've been asked that a ton of times. You know, I probably send more to Cody Sanchez than any.

[Unknown Host]

She has one.

[Eddie Wilson]

Yeah, she does. Buying and selling businesses. I ask all the time. And really, you know, like Cody Sanchez, Hormozi, like, those guys are really the ones that are teaching it right now. I like teaching business operations because if you operate your company well, the exit is imminent. Right. Like, they will chase you. And that's the problem is, like, I think it's more important to teach what I teach at Empire, the operational side make your business valuable than it is to try to teach you how to exit your business. If you make your business valuable, people chase you for that, you know, Then you have five buyers versus one you're trying to convince to buy.

[Unknown Host]

And is that mainly done through revenue growth or how does that work?

[Eddie Wilson]

Three areas. Number one, revenue growth or ebitda. Right. Like, you have to you, your bottom line matters. Right. Like, there's so very few companies that are sold just on top line revenue majority are still sold on ebitda. Right. Number two is your ip. What do you do differently than everyone else? It's either your technology, it's how you process data, it's the communication structure. That's where, you know, O'Leary will say on Shark Tank, you know, why should I pay a million bucks for your company when I can buy? I can just create it for 500,000. Right? It's because it has no IP, right. There is nothing that separates this, this, this thing. And. And so then thirdly is an operating system. The reason I built the operating system was because to the degree that you can create efficiency and standardization, when you go to sell the company, what they want to know is, is can I continue to do it the way you've done it and do it better? And with an operating system, it gives them that. It gives them that, you know, confidence that that can happen. It also prevents you from getting locked up in the business. So many businesses sell, but then the, you know, the owner gets golden handcuffs for two or three years and gets stuck, right? And that's a miserable time of life when you've built something and now you're working for somebody else still operating, you know, under their. Their desires. So those are the three areas I focus on in selling a business. When I buy or I'm creating, it's always those three areas. Ebitda. How do I do something unique? Right. Ip. And lastly, the operating system.

[Unknown Host]

Nice. What's your track record on failures and wins?

[Eddie Wilson]

78% positive, right?

[Unknown Host]

Wow.

[Eddie Wilson]

Yeah. The average VC firm right now, venture capital is less than 10%. I think the national average is like 8 to 9%. The average PE firm is in the 30s right now. But because of the way I do it, I'm, you know, in the high 70s.

[Unknown Host]

That's incredible.

[Eddie Wilson]

Yeah.

[Unknown Host]

So eight out of 10 times.

[Eddie Wilson]

Yeah, eight out of 10 times. I mean, I. I have had my losses. Right. Like, there are times where I'll sell a business and it doesn't bring some positive roi, but for the most part, I'm, you know, batting well.

[Unknown Host]

That's super impressive, man. So you really do that. Due diligence and that, that's kind of what separates you, you think?

[Eddie Wilson]

Due diligence, operational structure, and the right exit path.

[Unknown Host]

Right. How important are the founders, the founding.

[Eddie Wilson]

Team, the jockeys, everything, you know, always been on the jockey versus the horse. Now the founding team is important. However, half the time I don't retain them, they'll want to exit. So I always have to have a bench of good operators that I can plug in. And that, that's my strength, is continuing to cultivate operators that are willing to come with me and grow. That's the secret sauce. You know, it's like business is science, People are the art. You know, you have to have good people that understand the system, the science, and can build the right culture and take it, you know, to where I need to.

[Unknown Host]

Yeah, I mean, you must have great people to replace the C suite like that.

[Eddie Wilson]

That's impressive. We have amazing people. That is the strength of the organization by far.

[Unknown Host]

What's the hardest position to replace?

[Eddie Wilson]

You think the hardest position is typically, you know, most businesses play one of two sides well. They either play the defensive side well or they play the offensive side well. You have to understand that going into business. So every business has offense, defense. Offense would be more like your vision, your sales, your marketing. Defense would be more like operations, human resources, finance. So really, very few of them do well. So it's a hard question to answer because what happens as I acquire? I'm looking at the deficiency. Are they playing offense well or defense well?

[Unknown Host]

Got it.

[Eddie Wilson]

So in the defensive side, the hardest person to replace is the coo, the operational brain. Right. Like how Do I use the resources effectively? In the, in the offensive side, the hardest person to replace is typically like somebody that's in charge of revenue, a chief revenue officer, or somebody that's really focused on driving sales and conversions.

[Unknown Host]

Got it. Yeah. Because you got to be sort of.

[Eddie Wilson]

Dialed in with the market, dialed in with the product. Like, there's so many components. It's tough.

[Unknown Host]

That makes sense. What, what are you excited about these days?

[Eddie Wilson]

I'm excited about a lot. We're rolling up a tax firm right now and that one's just. It's going super fast. But, you know, I'm still excited about Aspire. You'd think we've been. We've done 20 shows in a row and you think it would start to wane.

[Unknown Host]

Yeah, no burnout yet.

[Eddie Wilson]

Pumped. You know, like, I didn't think I'd ever enjoy it. I don't always enjoy the stage. My business partner Andrew does. I don't really. It's a means to an end for me, but inspiring. I spend a lot of time talking about purpose and anchoring into purpose and, you know, what fulfillment comes from. And there's something about that messaging that still fires me up. So the business side, I'm excited about our tax firm. You know, I'm excited about our Empire operating system where we're helping businesses grow and scale. We've got close to 3,000 companies on that. That's really exciting right now. And then impact others. You know, my nonprofit is where my heart really is.

[Unknown Host]

I love it. Yeah, we'll link all that below. Man.

[Eddie Wilson]

Where else can people find you on social? You know, I got pushed this year to respond to all my dm. That has not been a really easy task and there may have been a lot of copies and pastes in there, but. But I try my best. So. Eddie Wilson officials easy on all the platforms.

[Unknown Host]

Perfect. Thanks for coming on, man.

[Eddie Wilson]

That was fun.

[Unknown Host]

Thanks for watching, guys. Check out the stuff below. See you next time.

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