← Living The Red Life
Loading summary
Transcript31 lines
- [00:00]
David Meltzer
You're either humble or you're about to be. And that was the lesson I learned from losing everything. But today, I want to share this triple A strategy that I implemented that I wish somebody would have helped me learn instead of me paying the $100 million in dummy tax in my first half of my career. Remember, behavior has one instant result that we don't know or understand. It's called progress. So good behavior creates good progress. Bad behavior interferes with it or creates negative progress. That's why the triple A strategy is so important.
- [00:31]
Rudy Moore
My name's Rudy Moore, host of Living the Red Life podcast, and I'm here to change the way you see your life in your earpiece every single week. If you're ready to start living the red life, ditch the blue pill. Take the red pill. Join me in Wonderland and change your life.
- [00:45]
Unknown Host
What's up, guys? Welcome back to another episode of Living the Red Life. Today's a rare occasion because we have a return guest. But you probably know why, because this man is a legend. You know who he is? Dave Meltzer. He is a very famous entrepreneur. We bump into each other a lot, and he's done a lot of amazing things in his life. And today we're going to talk about something most entrepreneurs need. Okay. I mean, David, talking about this offline, this triple A method that will really break down how to actually run your business more effectively. So, buddy, welcome back to the show.
- [01:22]
David Meltzer
It's an honor. I feel like Saturday Live being a repeat, a repeat offender, but there's nobody I'd rather revisit than someone like you that's really pouring in to the entrepreneurial community. And my mission of empowering others, to empower others is aligned with what you're doing, Rudy. And I really want to tell you how proud I am of you and appreciate what you're doing for the community of people and excited to talk about some of the corporate philosophies and principles that entrepreneurs can use to aggregate their business, accelerate their business, and compound exponentially the outcomes that they desire in their entrepreneurial journey.
- [02:04]
Unknown Host
Yes. And so let's dive in. I mean, let's just give a bit of a background. I know that most people know who you are, but if they don't, can you just talk about, you know, your kind of growth through more corporate and in the entertainment space and how you kind of got here today?
- [02:21]
David Meltzer
Yeah, I grew up poor, wanted to be rich, so I went to law school because my mom, you know, always told me, doctor, lawyer, or failure. But when I graduated law school, the only type of lawyer I wanted to be was a rich lawyer. So I went into oil and gas law because it paid the most money. But at the same time, my maritime mentor, my maritime professor at my law school had a job opportunity, believe it or not, in the Internet, selling legal research online in 1992. And he said, dave, if you want to make money, you think oil and gas pays well? The Internet's going to pay a ton. This is 1992. Ironically, my mom told me the Internet was a fad. It never was going to work. So she made me actually take the bar. And in the aspect of that taking the bar, I took the sales job in the Internet. And so to. To hold on one second. It is edible, right? Yeah, I just want.
- [03:31]
Unknown Host
All right.
- [03:32]
David Meltzer
So my mom told me the Internet was going to be a fad. But despite the fact that just because someone loves you, especially as an entrepreneur, doesn't mean they give you good advice, because sometimes the people that love us are too afraid to allow us to make good business decisions. And so, at a very young age, I became a salesperson. And nine months out of law school, I made my first million dollars selling legal research online. And by 1995, we exited for 3.4 billion with a B in 1995. And so I really leveraged corporate experience in an entrepreneurial way. And so I learned a lot of lessons from the corporate world, then became an entrepreneur, went up to the Silicon Valley, raised hundreds of millions of dollars, ended up being the CEO of Samsung's data division in America, their first convergence device in 99, which led me to being the CEO of Lee Steinberg Sports Entertainment, the most notable sports agency in the world, where they made the movie Jerry Maguire about our firm. Warren Moon, the Hall of Fame quarterback, and I started a global marketing company. And for the last 18 years, I really followed the entrepreneurial journey. And so what I really like to share is what secrets, what cheat codes have I learned from the corporations that I've learned from and put them into my entrepreneurial journey over the last 18 years? By the way, I did get the great entrepreneurial award of losing everything. So in 2008, worth over $100 billion, I was honored with a bankruptcy. Losing everything. I have a saying, you're either humble or you're about to be. And that was the lesson I learned from losing Everything. But today, I want to share this triple A strategy that I implemented in humility as an entrepreneur that I wish somebody would have helped me learn. Instead of me paying the $100 million in dummy tax that I had to pay in my first half of my career.
- [05:46]
Unknown Host
Well, and I love that because you, you know, and the reason I wanted to talk about it with you because you've got that perfect blend of both, right. Like you know, obviously a lot of time in high level companies managing big teams, working under, you know, some of the most famous brands and they have obviously crazy systems and structure. And then you've seen the other side and now obviously present day you're hanging out with, with, with people like me and, and scrappy entrepreneurs and speaking at big events like we see each other at, where pretty much the whole room doesn't really know what an SOP is or an org chart. Right. So it's like the opposite ends of the spectrum. And I was very lucky because I worked at Marriott Hotel, my first job at 18 and it taught me the respect of SOP systems frameworks and I really for some reason was fascinated by it. So I think I got an advantage coming into entrepreneurship because I've always tried to build my business like the Marriott was built with the entrepreneurial QuickStar element. And I think that is the secret is combining those two. So I would love to dive into how do you combine the two best parts of corporate and entrepreneurship?
- [07:03]
David Meltzer
Yeah, I think first just having an overall framework in which you were excited to learn when you were 18 and have utilized in your successful career. And the first is that most entrepreneurs miss the fact that most successful businesses not only started with an entrepreneur and have evolved to a multibillion dollar corporation like Marriott for example, they started as a small entrepreneurial venture and what they started with is called a strategy of alignment. And in order to align your business with where you want to be or better, you have to take inventory of a few things. You have to take inventory of capability based off of the skills that are necessary for each component of the business. The knowledge that's necessary meaning the knowledge of what? Accounting, sales, human resources. Because it's all going to fall under one hat usually when you start or a few hats when you're an entrepreneur. And then of course the understanding of how am I going to sustain my desire? Because nobody gets punched in the face more in a day than an entrepreneur. And I'm talking about no matter if you're Elon Musk, Bomber Meltzer, Vaynerchuk B. Rudy, it doesn't matter. Nobody gets punched in the face more than an entrepreneur. So if you take your skills, your knowledge into of your desires and each day align it, spend the majority of your time aligning it with what's doing well today, what's stable today, and what you think will be doing well in the future. Then take action according to the circumstances of the day by deriving the lessons from the past and aligning it with your new self image of those skills, knowledge and desires. So the first step, the first a is alignment. But in order to align, we have to know our own skills, knowledge and desire. We have to align it with our timing and risk tolerance. Then we have to align it with the circumstances of today and the lessons of the past and our self image of the future. And if we take our time and we apply this alignment now, we can start to create these SOPs, standard operating procedures. We can start taking the clues from the alignment and taking and looking at the patterns that we now can take action with. And we're continually staying aligned with what's doing well, what's stable and what we think is going to do well, which adds to our statistical success. And so in the alignment phase we have all of those steps. The second one is action. And we only take action day to day. And the way that we take action is we, we're aligned with what's important to us, who we can help and who can help us and how best we can get it done within the 24 hours of today. But the key to action is actually prioritization because 100% of the things we do now and do next get done. The antidote to the biggest problems that entrepreneurs have that corporations don't have is procrastination and feeling overwhelmed. Because in a corporate setting you're told, hey Rudy, show up at 9:00, here's what you need to do today and here's when you can go home. None of that is true. As an entrepreneur, no one's telling you, hey, show up at this time, here's what you do today and here's when you can go home. And so most entrepreneurs, they create resistance in their journey of action because they feel overwhelmed because they have so many options, opportunities and touches a favor. And they then procrastinate because they don't know what to do now or next. We're in a corporation, they have standard operating procedures, task duties and responsibilities, time cards, pay grade, all the different things that exist in the corporate world. So what we want to do is blend that SOP by taking action by defining what we're going to do now and what we're going to do next, utilizing our calendars or a time management system in order to facilitate staying aligned with that alignment of the skills, knowledge and desire, circumstances of the day, lessons of the past, self image of the future. And so go ahead.
- [11:58]
Unknown Host
No, no, I was just going to say, and I mean you have to also know that it changes over time, right, as you get more successful in this.
- [12:05]
David Meltzer
Yeah, yeah.
- [12:06]
Unknown Host
Because like when I started, I was doing everything super scrappy. And then even when I got to 10, 15, 20 employees or staff, it was still wearing lots of hats, covering lots of things. And it was just funny as you were saying that about, you know, when you're more corporate, you come in at a set time, have your meetings, your day job and then you leave. And now I would actually say like 80%, 85% of my staff. It's kind of like that because the way we build it is they actually have, you know, the roles and responsibilities, how much everything takes what they're doing each day, even blocks on their calendars. And then there's probably like my top people, my executives and a couple of my kind of jackable trade guys I call them, where we like, you know, the on. For those people, they're just tackling problems. Right. And that's where it changes every day. And they're working longer hours. But I think you have to understand, like you can't, you have to believe you will get there one day and it doesn't always have to be this way. And obviously that's hard to see when you're starting out.
- [13:10]
David Meltzer
Yeah. And I think that's the third A, so alignments the first day, actions the second. And you nailed it without me even having to teach it. Preparing for adjustment. Adjustment is the third A. Because here's the interesting thing about being an entrepreneur versus the corporations. In a corporation, you don't have to worry about the time, emotion and value changing each day because they have such a huge glacial system in place that they're dealing with quarters in annual numbers where entrepreneurs are up and down every single day. What, what, what do I mean by that? By when we're an entrepreneur and we make a decision or we come to an agreement, the instant we come to an agreement or make a decision, whether it's verbal, implied, written, or even with payment, which is called consideration, any of those circumstances, the minute it happens, time changes, emotions change and value change. Now these changes don't have a significant impact on a multimillion or billion dollar business, but when you have a few employees, they have significant impact. When interest rates go up, it has a significant impact on you as an entrepreneur. It does not have a significant impact on a major Corporation. And so we need to adhere not only the alignment phase, the action phase, with prioritization and doing it now and doing it next, the antidote to feeling overwhelmed and procrastinating. But we have to prepare for adjustment. We have to understand that time, emotion and value will change with the circumstances of the day exponentially impacting us comparatively to bigger businesses. And I think the reaction you had is indicative of why you're successful as an entrepreneur. Because as I was speaking about alignment in action, you were nodding your head like a jury, but you were thinking about, oh, wait a second, there's so much adjustment in what he's saying. That's where the AAA strategy and the AAA really comes into effect, which allows us to have the right behaviors of good behavior, good progress. Remember as an entrepreneur, good behavior, individual good behavior is aligned with behavior where you want to be or better, bad behavior interferes with it. That's not necessarily true in the corporation. The good behavior is where the company wants you to be better. And your behavior has to align with where the company wants to be or better, not where you want to be or better. And bad behavior is that which interferes with it. Remember, behavior has one instant result that we don't know or understand. It's called progress. So good behavior creates good progress, bad behavior interferes with it or creates negative progress. That's why the triple A strategy is so important.
- [16:18]
Unknown Host
Yeah, and I live with, you know, how you're breaking it down. It's kind of great to reflect on like my personal growth and lifestyle, like life as an entrepreneur. And you know, this is why I get a lot of enjoyment coaching it now. And I always say a lot of people hire me for like marketing, ads, social media, but half of what we teach on the back end with our year long members in the mastermind and stuff is all of this other stuff, you know, because a lot of them are less than 10 or 15 or 20 employees. And there's so much like, I think breakaway advantages in not only like the latest funnel or ad, but like how are you spending your time? Like we have every single one of them do a kind of grid exercise, like you know, high value, high roi, high value, you know, high time. And we kind of break it down low, low value, high time. And we do this with our employees every quarter too because you only have so many hours in the day. And entrepreneurs, I think one of their biggest curses, which I used to have too, is mistaken. Busy, you know, busy work for like productive work. Right? And I think, you know, corporate's Pretty good at. The downside score is they might take sometimes weeks to approve an email. Whereas an entrepreneur loads of mailchimp or active campaign and sends it out, you know, a minute later. But they're pretty good at analyzing projects and really looking at like success metrics and is this going to work? Whereas I think entrepreneurs just do everything and often and I still make that mistake, you look back and you, you took on a lot of things that didn't really help you. So can you talk a little about that? Because I'm really interested in how you see that change between corporate and entrepreneurs.
- [18:08]
David Meltzer
Yeah. In a corporation, people get so busy working they forget to make money. Yeah. And especially today in a hybrid or remote approach, we have to be very aware of how engaged and accessible people are. Not only accessible to others, but how they access information, how they access receivables, how they access other people. And so utilizing engagement and accessibility in the facet of an entrepreneur is far greater of an asset than that in a corporation. And so we actually want to determine what type of activity we have with three different lenses that are different than if we were working for a company or a corporation. The first lens is the one that you adhere to very well, which is productivity. So if we're very intentional about being productive, we're looking at what are we thinking, saying, doing, believing and feeling about this activity. Is it aligned with where we think we want to be or better? The second one is the accessibility of it. What am I going to access from this activity? Notice I say activity because busy means unavailable to me. I want to be very active, productive and accessible. And I want to work with definite purpose or intentionality that's aligned the actions, words, thoughts, feelings and beliefs with where I want to be or better, but also open minded enough to adjust to a different circumstance that's just around the corner. And so for me, the third lens is the most critical as an entrepreneur and it's not even critical within a corporation. And it's a lens that you have used before you were an entrepreneur. And it's the lens of gratitude. Let me explain that to you. The most successful entrepreneurs, one of the SOPs that is inherent in their nature is to find the light, the love and the lessons in the mistakes, failure, setbacks, successes in their life. It takes an entrepreneurial mind to say I'm being protected, promoted and loved by this contract, not going through by me losing a million dollars by whatever circumstances exist in the day in a corporate setting. To be honest, there's nothing personal about it. To have to have some, you know, lens of gratitude. If you're working for a company and the deal doesn't go through, even if you're commission based, you don't have to have the gratitude lens like you do as an entrepreneur every day. Remember, entrepreneurs get punched in the face more than any other human beings a day. No matter whether or not you're successful, it doesn't matter. So if we don't have a lens of gratitude, we're going to literally live our lives in punishment. We're going to be victims our entire lives. So the three lenses of gratitude, accessibility and productivity, are much more necessary as entrepreneurs than in the corporate world.
- [21:21]
Unknown Host
Yeah, yeah. It's funny you say that last box. I was talking the other day and posted about running because I do a lot of running and triathlon and I find running fascinating because at least for me, every second a minute sucks. And it doesn't matter how much faster or better you get, it always sucks. And entrepreneurship, like, you know, no matter how big you get, like, there's gonna be lots of times it sucks whether you're Elon Musk, right. Getting sued by the government or Mark ZUCKERBERG or having 2,000 employees or Twitter.
- [21:53]
David Meltzer
Or Twitter being worth 80% less than.
- [21:56]
Unknown Host
Yeah, yeah, or yeah, that sucks. Yeah, it's going to suck. And I find a lot of the beginner entrepreneurs, like, they don't get used to this. Right? And that's what I mean. Makes and breaks a lot that get to like the tens of millions versus most I see stay at like the 1, 2, 3 million or less is, is that mindset side and it's like the mindset of failure and handling this and then the mindset of building beyond themselves as an entrepreneur, which is what we've talked about on today, today's episode, which is all the systems and you know, this AAA kind of system you've broke down, which I love. So yeah, I just, I find it fascinating as I watch more entrepreneurs and coach so many more. Like how everyone is so different and then the few that grow to 10 million and beyond and all of our peers and mutual friends, like the distinct characteristics and traits that we all have. Like, it's kind of like watching pro NBA players, like they all have, they all look a similar, certain body size and shape, can jump and can dribble well and shoot well. It's, it's just interesting to see those traits again and again and again. So, yeah, I just have a couple of rapid fire questions to finish real quick.
- [23:10]
David Meltzer
One distinction just for everyone. If you want to distinguish between corporations and entrepreneurs, remember this. Look for who's in charge of the employees and the overhead. If you're in charge of employees and overhead, then you're an entrepreneur. If you have no, if you're not in charge of the employees in the overhead, meaning a company is, you're much better off in that respect. Go ahead, Rudy. Sorry.
- [23:33]
Unknown Host
I like that. So, last couple of rapid fire questions I always like to ask. So I'll put you on the spot here. So first one, one of your most controversial beliefs that you believe to be true in the world of business or.
- [23:46]
David Meltzer
Success in life, that it takes not just wisdom, but faith. You. I believe you need to believe in something bigger than you, that loves you more than your mom. I believe if you don't, you can't be an entrepreneur.
- [24:01]
Unknown Host
Love it. And you probably already mentioned this. The biggest failure ever.
- [24:07]
David Meltzer
I lost over a hundred million dollars and went bankrupt.
- [24:10]
Unknown Host
Yeah, that's. That's a good one.
- [24:13]
David Meltzer
Next one.
- [24:15]
Unknown Host
Next. Next one. If you could go back to your younger self and teach one, two or three things that would stay with you forever and change the outco your life, what would they be?
- [24:26]
David Meltzer
Show me your friends, I'll show you your future and ask for help. Those two things you're. You surround yourself with the right people, the right ideas and ask for help. Good.
- [24:37]
Unknown Host
And last one's a bit easier if people want to learn more about you, obviously. Do you have great podcast shows, social content, you're speaking a ton. Where do they go and find more of you and get more of you?
- [24:51]
David Meltzer
Well, you can google me, David Meltzer, but email me directly. I'd love to give your whole community. I have a workbook with Jack Canfield who wrote Chicken soup for the soul called creating the life you love. And so if you want that for free, I'll pay you for the book. Pay for shipping. Just email me david meltzer.com. i'm on every platform at my name David Meltzer, but David Meltzer.com email me. I answer personally myself. Thank you so much.
- [25:20]
Unknown Host
Love it. Thank you for that generous gift. And we'll add all that to the show notes too. There we go. Well, that was a blast. We covered a lot and again, super grateful for your time and your wisdom and every time we chat and hang out in the hallways of events, I really enjoy it and I love today's conversation. So thank you so much. Guys. That's a wrap. Go check out more of his stuff if you've not already. And as always, keep living the red life. See you guys soon. Take care.