The New Ownership Revolution

Summary

Summary of "The New Ownership Revolution" Episode of Money And Wealth With John Hope Bryant

Money And Wealth With John Hope Bryant, produced by The Black Effect and iHeartPodcasts, delves into the crucial topic of wealth-building within the Black community. In the episode titled "The New Ownership Revolution," released on May 29, 2025, John Hope Bryant presents a compelling narrative on leveraging the impending wealth transfer from baby boomers to empower underserved communities. This detailed summary captures the key discussions, insights, and conclusions of the episode.

---

1. Introduction and Gratitude ([02:30] - [03:30])

John Hope Bryant opens the episode by expressing profound gratitude to his listeners for propelling his podcast into the top ranks of business and entrepreneurship shows globally.

John Hope Bryant ([02:35]): "I want to first thank all of you for making my weekly pulpit of finance, money and wealth a top 100 business podcasts on Apple Podcasts and top 50. Actually, it's really top 40 entrepreneurship podcasts, not just here in the US but increasingly around the world."

Key Points:

• Acknowledgment of the podcast's growing global reach.
• Emphasis on spreading the movement and inviting more listeners to join.

---

2. The Silver Rights Movement ([03:31] - [06:00])

Bryant introduces the concept of the "Silver Rights Movement," framing financial literacy and economic empowerment as the next phase of civil rights.

John Hope Bryant ([04:15]): "Financial literacy as a civil rights issue of this generation in my opinion. No one's ever taught us capitalism and how the system works."

Key Points:

• Expansion of Civil Rights: Transitioning from traditional civil rights issues to economic empowerment.
• Inclusivity: Emphasizing that the movement includes all demographics, including rural and middle-class individuals.
• Legacy Building: Highlighting the importance of not just making money but building legacy and wealth that can be passed down.

---

3. The Impending Wealth Transfer ([06:01] - [09:30])

Bryant discusses the massive wealth transfer expected from the baby boomer generation to younger generations, estimated between $84 to $100 trillion by 2045.

John Hope Bryant ([07:45]): "This is a once in a lifetime opportunity for Black America in underserved communities to advance through strategic acquisitions of aging businesses ownership through."

Key Points:

• Scale of Transfer: Baby boomers control about 55% of U.S. wealth, equating to roughly $75 to $90 trillion.
• Demographic Shifts: The aging population presents opportunities and challenges, including labor shortages and increased healthcare demands.
• Disparities in Transfer: Predominantly, the wealth transfer is expected to remain within white families, highlighting the need for strategic intervention to ensure equitable distribution.

---

4. Empowering Black Entrepreneurs through Business Acquisition ([09:31] - [12:30])

Bryant advocates for the Black community to seize the opportunity by acquiring existing businesses owned by aging baby boomers who lack succession plans.

John Hope Bryant ([10:50]): "There’s something happening right now. And again I keep saying the color is not black or white or red or blue, it's green. It's economic."

Key Points:

• Reducing Self-Employment: Moving from single-owner businesses to scalable enterprises with employees to enable wealth accumulation through compounding.
• Scalability: Emphasizing the need for businesses that can grow beyond the owner's direct involvement.
• Community Impact: Ownership leads to job creation, community anchoring, and local economic growth.

---

5. Accessing Capital for Business Acquisition ([12:31] - [16:00])

Bryant outlines various strategies for acquiring businesses, focusing on leveraging existing financial tools and community resources.

John Hope Bryant ([15:10]): "You have to use other people's money in a responsible way. So you want to buy a $500,000 business... You may just need a little bit of cash from family's friends, bank, whatever."

Key Points:

• Seller Financing: Negotiating terms where the seller finances a portion of the purchase, reducing the need for upfront capital.
• SBA Loans: Utilizing Small Business Administration loans, which offer favorable terms and lower interest rates.
• Community Development Financial Institutions (CDFIs): Engaging with mission-driven lenders that support underserved communities.
• Partnerships and Syndicates: Collaborating with trusted partners to pool resources and share the financial burden.
• Role of Operation HOPE: Providing financial literacy coaching and access to resources necessary for successful business acquisition and ownership.

---

6. Valuation and Acquisition Process ([16:01] - [18:41])

Bryant details the methodologies for valuing businesses, emphasizing the importance of understanding seller’s discretionary earnings (SDE) and applying appropriate market multiples.

John Hope Bryant ([17:25]): "The most common valuation method for small businesses is called a multiple seller discretionary earnings valuation."

Key Points:

• Seller’s Discretionary Earnings (SDE): Calculating SDE by adding back owner salary and discretionary expenses to net income.
• Market Multiples: Applying industry-specific multiples (typically 2x to 3.5x SDE) to determine a fair business valuation.
• Factors Affecting Valuation:
  • Owner Dependence: Businesses heavily reliant on the owner are valued lower due to transition risks.
  • Recurring Revenue: Businesses with stable, recurring income streams are valued higher.
  • Operational Efficiency: Well-managed businesses with strong systems and brand reputation command higher valuations.
• Strategic Acquisitions: Encouraging the purchase of businesses with existing customer bases, cash flows, and growth potential to ensure sustainability and profitability.

---

7. Conclusion and Call to Action ([18:42] - End of Main Segment)

Bryant concludes by reiterating the importance of economic empowerment and inviting listeners to take actionable steps towards business ownership.

John Hope Bryant ([18:20]): "This is capitalism with capacity. So let's go change the world together."

Key Points:

• Economic Empowerment as Unity: Stressing that economic growth and empowerment benefit the entire community.
• Action Steps:
  • Research Local Businesses: Identify businesses with aging owners and lack of succession plans.
  • Engage with Financial Institutions: Utilize SBA loans, CDFIs, and other financial tools to secure capital.
  • Leverage Operation HOPE: Take advantage of available resources, training, and financial coaching.
• Vision for the Future: Envisioning a landscape where Black-owned businesses drive community prosperity and create a lasting legacy for future generations.

---

Notable Quotes with Timestamps

1. On Financial Literacy as Civil Rights ([04:15]):

   "Financial literacy as a civil rights issue of this generation in my opinion."

2. On the Silver Rights Movement ([05:45]):

   "This has always been about people at the bottom trying to get to the top. That's what's made this country."

3. On the Opportunity of Wealth Transfer ([07:45]):

   "This is a once in a lifetime opportunity for Black America in underserved communities to advance through strategic acquisitions of aging businesses ownership through."

4. On Leveraging Capital ([15:10]):

   "You have to use other people's money in a responsible way."

5. On Business Valuation ([17:25]):

   "The most common valuation method for small businesses is called a multiple seller discretionary earnings valuation."

6. On Changing the World Together ([18:20]):

   "This is capitalism with capacity. So let's go change the world together."

---

Key Takeaways

• Massive Wealth Transfer Opportunity: The impending transfer of $84 to $100 trillion from baby boomers presents a unique chance for economic empowerment within the Black community.

• Economic Civil Rights: Financial literacy and business ownership are positioned as modern civil rights, necessary for achieving economic equality and building lasting wealth.

• Strategic Business Acquisition: Acquiring existing businesses with established cash flows, customer bases, and infrastructure is a viable path to scalable wealth creation.

• Access to Capital: Utilizing seller financing, SBA loans, CDFIs, and partnerships can overcome capital barriers, making business ownership attainable.

• Valuation Expertise: Understanding business valuation methods, such as SDE multiples, is essential for making informed acquisition decisions.

• Community Impact: Business ownership not only fosters individual wealth but also stimulates community growth through job creation and enhanced local economies.

---

Final Thoughts

John Hope Bryant's "The New Ownership Revolution" emphasizes that economic empowerment through business ownership is pivotal for the Black community's progress. By strategically acquiring existing businesses and leveraging available financial tools, Black entrepreneurs can navigate the anticipated wealth transfer, build enduring wealth, and uplift their communities. The episode serves as both a motivational call to action and a practical guide for listeners aspiring to transform their financial futures.

---

For further engagement and resources, listeners are encouraged to visit Operation HOPE's website, access business plans tailored for various demographics, and participate in upcoming training programs focused on mergers and acquisitions.

Transcript

[iHeart Podcast Team]

This is an iHeart podcast.

[Will Pearson]

In a world of economic uncertainty and workplace transformation, learn to lead by example from visionary C Suite executives like Shannon Schuyler of PwC and Will Pearson of iHeartMedia. The good teacher explains the great teacher inspires.

[Shannon Schuyler]

Don't always leave your team to do the work that's been the most important part of how to lead by example.

[Will Pearson]

Listen to leading by Example executives making an impact on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

[Dexter Thomas]

Are there any pictures of you online? Then you could already be in a massive police database without even knowing it.

[Clearview Representative]

Clearview scrapes together images from Facebook, from LinkedIn, from Venmo accounts.

[Dexter Thomas]

I'm Dexter Thomas, host of Kill Switch, a podcast about how living in the future is affecting us. Right now.

[Clearview Representative]

Police, they are trusting this software with this magical ability to lead them to the right suspect.

[Dexter Thomas]

In this episode, we dive into how cops are using AI and facial recognition and sometimes getting it wrong and putting innocent people behind bars.

[Clearview Representative]

So if your accuser is this algorithm, but you're not even being told that it was used, let alone given any of the details about how it works.

[Dexter Thomas]

Listen to Kill Switch on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

[iHeart Podcast Team]

We love learning about this extraordinary universe.

[Daniel Wienersmith]

And we love sharing what we've learned.

[iHeart Podcast Team]

And on our podcast, Daniel and Kelly's Extraordinary Universe, that's what we're gonna do.

[Daniel Wienersmith]

I'm Daniel. I'm a particle physicist and I think our universe is absolutely extraordinary.

[iHeart Podcast Team]

I'm Kelly Wienersmith. I study parasites and there's just endless things about this universe that I find fascinating.

[Daniel Wienersmith]

Basically, we're both nerds.

[iHeart Podcast Team]

Each Tuesday and Thursday we take an hour long dive into some science topic.

[Daniel Wienersmith]

Learn all about our amazing and beautiful universe on Daniel and Kelly's Extraordinary Universe every Tuesday and Thursday, Thursday on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts.

[Will Pearson]

Hear insightful, entertaining discussions on today's important health and wellness topics on the Health discovered podcast from WebMD. Through in depth conversations with experts, Health Discovered covers everything from tips for healthier living to the latest on therapy and mental health. My goal is to really destigmatize mental health treatment and looking at it from a whole health perspective, physical health and mental health can be intertwined. Listen to WebMD Health discovered on the iHeartRadio app or wherever you get your podcasts.

[John Hope Bryant]

Welcome to Money and Wealth with John o' Bryant, a production of the Black Effect Podcast Network and iheartradio. Yo this is John Hope Bryant. And this is Money and Wealth, the podcast series on Black effect network on iHeartradio. I want to first thank all of you for making my weekly pulpit of finance, money and wealth a top 100 business podcasts on Apple Podcasts and top 50. Actually, it's really top 40 entrepreneurship podcasts, not just here in the US but increasingly around the world. South Africa, the UK, Chile, number of places around the world is really quite inspiring. The Middle East, Saudi Arabia, TB and Toad. So thank you and spread the word and tell folks to follow the movement. This is the silver rights movement. From the streets to owning the sweets, there's not. There's a room for all. There's enough room for all of us. That's what this podcast, this episode today is actually all about. We, we're not trying to replace anybody in this conversation. Be very clear. This is about expanding the table. To quote my friend Stephanie Rule, to expand the table and add a chair. Expand the table and add a chair. We have a fiscal crisis in this country, meaning that we owe a lot of money, the federal government does. But you can't just cut yourself out of this crisis, you cannot, without destroying America itself, in my opinion, because America's not a country, she's an idea. And we can make her anything we want, or we can destroy her and depress her and uninspire the aspirants within her who want to be part of this American dream. This has always been about people at the bottom trying to get to the top. That's what's made this country. It's just that the people at the bottom trying to get to the top look a little different in this generation than they did in the early 20th century, when it was mostly European strivers from struggling European countries, whether they were Poland, Polish or Irish or Italian or then Jewish or whatever. They were white and European and all good, by the way. And there was a desire to get them from the bottom to the top. The New Deal after the war, the programs put in place that helped folks to get a mortgage and a trade, the Marshall Plan, et cetera. They rebuilt Europe and Japan in Germany, but also invested in the GI Bill, et cetera, invested in returning GIs that built the middle class, which was primarily Caucasian, and again, all good. There's nothing wrong with that. No problem with the Z whatsoever. In fact, women, white women benefited from black people striving in the civil rights movement because what was designed as affirmative action turned into the first broad based women's rights movement in 1972. 1974, when affirmative action from Nixon said Abraham Lincoln, President Nixon, a Republican who codified affirmative action, by the way. By the way, Republican also created the minority, the NBDA Minority Business Development Agency, which is interesting. No one ever mentions that he was a woman's rights president, an environmental president. This is President Nixon, by the way. I'm not advocating for Nixon, he was a crook. I'm just saying it's odd that something that was created by a Republican president is now being vilified in some way. But anyway, the, the efforts there to empower women, which included white women, black women, Latino women, Asian women, you know, but it started with white women. That effort is now a third of the US economy. A third of the US GDP are women. Fantastic. And if we hadn't done that and hadn't gotten that right, we be an also ran country today. We would not be the largest economy in the world. The sole superpower in the world. $30 trillion of GDP, about 7 trillion of that is or comes from women. So we got that right and we've got to get that right again. So there's something happening right now. And again I keep saying the color is not black or white or red or blue, it's green. It's economic. Right. I want you to learn a new language. This is the Silver Rights Movement. S I L V E R People going to correct me? No, John, don't you mean civil rights? Mean civil rights. Civil rights was, was, was. Those rights were secured and we needed it. Racism and discrimination. Bias is real problems in this country. Slavery. My second great grandfather, second great grandmother were both slaves. Hurts me even say it. My grandfather. What? My. Yeah, my grandfather, my dad's side was a sharecropper. RB Smith, George Young was on my father's side. The second great grandfather was a slave who fought in the Civil War responding to Abraham Lincoln's Emancipation Proclamation calling. And so he escaped slavery, went to go fight for the Union cause. I guess where I get my social justice bones. My second great grandmother on my mother's side, Juanita Smith, my dad's Johnny Smith, she owned a home. If she escaped, she left slavery. She ended up owning a home with no mortgage on it. Hello. It had a border. Somebody rented from her. So she was self reliant. So you know, we're a country that unevenly does reward people, has rewarded people from going from the bottom to the top, right. And with all our problems, it still can produce somebody like me, who started in Compton, California, South Central A with nothing, homeless when I was 18 years of age. That's in my book up from nothing, if you want to read about that. And now is the top 0.05% of all wealth in an income in this country, legally paying my taxes, doing it straight. And that's because I embrace financial literacy as a civil rights issue of this generation in this new moon of civil rights, Silver rights. And you have to say it slowly, silver rights in what I call the third reconstruction, this period between 2020 and 2030. First reconstruction was civil war. Second reconstruction was a civil rights movement. Third reconstruction is now, and it involves all of us, including my poor white brothers and sisters in rural America. But it also includes middle class people. If you're listening to this and you're middle class, you're college educated or whatever, irrespective of your age or race or whatever, you probably have too much month at the end of your money. Hell, can I get an amen? Right. So we're all in this thing together and we're all looking for an exit door and an aspirational door. How do we come up? Right? You can't cut yourself out of this crisis. You have to grow yourself out of it. Yes, there's some, there is some government waste and yes, that, you know, President Bill Clinton had a whole commission on government waste. And this president should approach, you know, looking for any government waste he can. Fantastic. No problem with it whatsoever. We do it. We should do it in a thoughtful, intelligent way. We all agree on that. But you, you can't just cut yourself out of a crisis. You have to find new forms of revenue. And I think I've tripped on one. I am going to share it with you in this episode and I'm going to, in less than one hour's time, give you a roadmap for you to frame this out for your own life. And I want you to tell everybody about this. This is open source empowerment. I've written business plans. On the 57th anniversary of Dr. King's assassination, which was April 4, we had a Dream Forward event and I issued business plans. I encourage you go to Dream Forward on the operational website or just type in Dream Forward in my name. It'll come download the business plans I wrote for rural America, which includes, by the way, poor struggling whites that I wrote for women, that I wrote for Asians. I wrote business plan. I wrote for Latino Americans. I want a business plan I wrote for Native American Indians. A business plan I wrote for Asian Americans. Right. And I wrote one for African Americans. Because we're at the bottom of the Economic pyramid and we were the only ones enslaved on American soil. And when you read that business plan for African Americans in particular, if you're African American, listening to this, by the way, I think I mentioned I wrote one for women also, by the way, whatever business plan you read, you're going to see an opportunity for you that's going to jump out at you. From what I'm about to share with you, this hundred trillion dollar wealth transfer, all the stuff's going to start connecting and tying in. What am I doing at Operation Hope, by the way? Way I founded the largest financial literacy coaching organization in America. Why? Because we need economic plumbing. I mean, I, I have a private banker, me, right? But the poor, the struggling class, the working middle class do not have a private banker. They don't have people they can call, systems that they can lean on. I just signed, just now, earlier, before I did the podcast, I signed a line of credit for a few million dollars. It's unsecured. Essentially it's on my name. And yes, I guarantee it is through a limited liability corporation, but I'm the guarantor. But it is not tied to business or real estate or a cash flow situation or. I mean, it is literally on the credibility of my name. The word credit comes from the Latin root word credit up, which means credibility has nothing to do with money. Capital comes from the Latin word capitas, which is loosely translated, again, Latin, knowledge in the head. I'm trying to get you knowledge in the head so you can fight this battle from the shoulders up, not the shoulders down. You don't have to fight with your hands, civil rights anymore. Walk with your feet. You can, you can win this battle. You can become dangerous. And my friend Tim Burt would say, dangerous from the shoulders up, from the neck up. And I want you to master this game. That's why this game of capitalism, which we're not dumb and we're not stupid. It's what we don't know, that we don't know. This killing is what we think we know because no one's ever taught us financial literacy, which is a civil rights issue of this generation, in my opinion. No one's ever taught us capitalism and how the system works. So my last book, Financial Literacy for All, which is number one for the last 14 months plus, now it's out in paperback. Please go get it at Walmart, which is a big partner and supporter of ours. I want to support them. Go get it at a black or minority bookstore. You can also get it at Amazon, where it's number One listed. It's been listed. But, but, but go to Amazon. I mean, go to, you know, for ease, go to Walmart and go to Amazon. It's a little bit more work. But if you can't get it at a small bookstore, business bookstore, black bookstore, minority bookstore, then you're helping that, that, that small business, by the way. So I'm trying to create economic plumbing for the bottom half of this country so they can plug into an economic system and come up from nothing. Let's get into the deep, to the depth of this. If you're talking to somebody, if you're passing this on to somebody and you don't, and they have limited time, tell them just to start. Admitted 11. Okay, so here we go, the baby boom demographic bomb. Let's start with the the what and why before we get to the how and where and when. Well, the wind is right now. The baby boom demographic bomb. There's a, there's 100 million. Sorry, the number so big I screwed it up is $100 trillion. Trillion with the T. There's $100 trillion wealth transfer that's about to happen. It's happening right now. As we're talking, as you're listening to this, it represents one of the most significant economic, social and demographic shifts in modern history, certainly modern American history. America is the largest economy in the world, the sole superpower to this day in the world. Other people want to be us, which is part of what's going on here and why there's so much friction in the world. They're trying to get us to fight with us the best way that if you can't win in a fair fight, if you're North Korea, you're China, you're Russia, you're Iran, and you want to take America's seat in the world, you can't win in a fair fight. Then you get us to fight with ourselves. Right, and win because we lose, not because you won. So they've got a cheated capitalism. And I'm trying to get you to understand the Bible says that a house divided cannot stand. So if we stand together, we realize we're better together and we're one country and we reset the American Dream 2.0. And then we figure out how to grow in the next iteration of this, this country's aspirational growth. Then we, we, we, we surge again forward and continue to be the light on the hill for the world. And there'll be an op ed coming out soon called the bottom third, where I really believe we need to take the bottom third of this country and turn them into capitalists. Okay, I'm so excited about this topic. I'm getting, I'm getting unfocused. Let me get back so I can. The substance of this, Whether you're riding a bike or driving to work or jogging or working out, I want you to be able to get through a weekly topic with me where I go deep and you're smarter at the end of that hour. And if you're not, you let me know. Who are the baby boomers? I like math because it doesn't have an opinion. So my friend Melody Hobson, quote, who are the baby boomers? Born 1946 to 1964. I'm not a baby boomer. The size is about 70 million Americans. The age range between 61 and 79 years of age, give or take. The wealth ownership. Baby boomers control about 55% of U.S. wealth, roughly 75 to 90 trillion dollars. The great wealth transfer is between 84 trillion and 100 trillion of dollars. This is U.S. dollars, not pesos, not Russian rubles. Right. U.S. dollars. The flight. The flight quality in the world, the US Dollar. By the way, the whole purpose of many folks in crypto is to get to cash out with US Dollars. So don't discount the US Dollar. And no, that was not a dig at crypto. Okay? So I don't want to start another fight. So. 84 to $100 trillion is expected to be passed down between now in the year 2045, mostly from baby boomers to millennials and Gen Xers. Of that, $16 trillion is projected to transfer by 2033. Now, just to be just. This is 2025. That's eight years from now. This is like happening right now. Why is this a demographic bomb? Because it's massive, it's uneven, and it's disruptive. The population in America is aging. You've got more people under over 65 than under age 18. And this is unprecedented. And the folks who are under 8 over age 65 are mostly Caucasian, wealthy in this particular case. And, you know, in trying to retire, they're all trying to go play golf at the same time. Right. And the ones are under 18 are all. A lot of them have a tan. They're diverse. They're, they're from different places. They, they're strive or they want to be strivers. Right, Right. You starting to see the picture here. There's going to be a health. So there's an aging population. Tens of millions will retire or die in a short spirit span of time. There's a health care strain. More seniors will need care than workers can support them. Right. By the way, this is an opportunity for you guys. I'm coming into that in a minute. There's a labor shortage is coming. Key sectors will lose skilled workers again. You cannot have a rainbow without a storm first. So a problem is also an opportunity. All capitalism is is which I call a gladiator sport, by the way. All capitalism is, is solving problems. Well, really, entrepreneurship is solving problems. Which is. Which feeds into a capitalist model.

[Dexter Thomas]

Are there any pictures of you online? I'm not just talking about Google. I'm talking anywhere.

[Clearview Representative]

Clear View scrapes together images from Facebook, from LinkedIn, from Venmo accounts.

[Dexter Thomas]

That database is now being used by police departments all across the country to match criminal suspect photos. And sometimes it makes mistakes.

[Clearview Representative]

So in this one case, two of their search results that I think were in the top 10 of the search results were. Michael Jordan. A picture of Michael Jordan.

[Dexter Thomas]

But cops are still using it to make arrests.

[Clearview Representative]

Police, they are trusting this software to lead them to the right suspect. But you're not even being told that it was was used, let alone given any of the details about how it works.

[Dexter Thomas]

This is not Minority Report. This is happening right now. People are getting arrested and doing actual time in jail after being picked out by a computer. I'm Dexter Thomas, host of Kill Switch, where every Wednesday we explain the right now of living in the future. You can turn off the computer, but do not let the computer turn you off. Listen to Kill switch in the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

[iHeart Podcast Team]

Hey, everyone, we want to tell you about our podcast.

[Daniel Wienersmith]

Hi, I'm Daniel. I'm a particle physicist and I think our universe is absolutely extraordinary.

[iHeart Podcast Team]

Hello, I'm Kelly Wienersmith. I study parasites along with nature's other creepy crawlies. And there's just endless things about this universe that I find fascinating.

[Daniel Wienersmith]

All right, well, basically, we're both nerds. We love learning about this extraordinary universe and we love sharing what we've learned. So that's what we're going to.

[iHeart Podcast Team]

And on our podcast, Daniel and Kelly's Extraordinary Universe is all about the mind blowing discoveries we've made about this crazy beautiful cosmos.

[Daniel Wienersmith]

From the tiniest particles to the biggest blue whales.

[iHeart Podcast Team]

Each Tuesday and Thursday, we take an hour long dive into some science topic, during which time I try to suppress my biologist training and keep the poop jokes to a minimum.

[Daniel Wienersmith]

Learn all about our amazing and beautiful Euphrates universe on Daniel and Kelly's Extraordinary Universe. Every Tuesday and Thursday on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts.

[Shannon Schuyler]

I know a lot of cops and they get asked all the time, have you ever had to shoot your gun? Sometimes the answer is yes. But there's a company dedicated to a future where the answer will always be no.

[Dan Flores]

Across the country, cops call this Taser the Revolution.

[Shannon Schuyler]

But not everyone was convinced it was that simple.

[Dan Flores]

Cops believed everything that Taser told them.

[Shannon Schuyler]

From Lava For Good and the team that brought you Bone Valley comes a story about what happened when a multi billion dollar company dedicated itself to one visionary mission. This is Absolute Season one, Taser Incorporated.

[John Hope Bryant]

I get right back there and it's bad. It's really worse. Really, really bad.

[Shannon Schuyler]

Listen to new episodes of Absolute Season 1, Taser Incorporated on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts. Binge episodes 1, 2 and 3 on May 21 and episodes 4, 5 and 6 on June 4 ad free at Lava for Good plus on Apple Podcasts.

[Dan Flores]

The American west with Dan Flores is the latest show from the Meat Eater Podcast Network. Hosted by me, writer and historian Dan Flores and brought to you by Velvet Buck, this podcast looks at a West available nowhere else. Each episode I'll be diving into some of the lesser known histories of the West. I'll then be joined in conversation by guests such as Western historian Dr. Randall Williams and best selling author and meat eater founder Stephen Rinella.

[Unknown Speaker]

I'll correct my kids now and then where they'll say when cave people were here. And I'll say it seems like the Ice Age people that were here didn't have a real affinity for caves.

[Dan Flores]

So join me starting Tuesday, May 6th where we'll delve into stories of the west and come to understand how it helps inform the ways in which we experience the region today.

[John Hope Bryant]

Listen to the American west with Dan Flores on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts. A housing supply shot. You know older homeowners will downsize, sale or pass away. This can be business succession crisis. That's what this podcast is about. Millions of small businesses and trillion dollar trillions of dollars in value are owned by boomers with no secession plan. Hello, Please write this down. That was at minute number 16. The opportunity for young Americans is to inherit assets, buy businesses or enter new markets. The risk is that there's a potential concentration of wealth. Especially if most of this wealth is passed down to those who are already wealthy. There's going to be an ownership shift in stocks, real estate, retirement accounts, privately held businesses will change hands. Boomers will sell assets to fund retirement, possibly impacting economic markets. 80 to 90% of this transfer is expected to stay within white families. Don't get angry about it. It's an is, right? And folks who made it legitimately and honestly can do with it as they will. If you made your own money, you'd like to do with your money as you will, right? People say, oh, I, I hate rich people. No, you don't. You hate rich people until you become rich. What you hate is a game system, right? What you hate is a system that no matter how hard you try, no matter how hard you work, you can't get ahead. But, you know, I'm not black in this conversation. I mean, I am black and I'm proud of it. I'm green. That's why I told you about this line of credit that I just inked, literally before I got on the podcast, because I'm going to position myself to do some of the stuff that I'm telling you to do. I'm creating my own private equity effort and go buy some companies that I'm getting ahead of myself. So there are 12 million privately held businesses in the US that are owned by baby boomers. About 31 million, 32 million businesses Overall, by the way, about 12 million privately held businesses that are owned by baby boomers. They value between 10 and 12 trillion dollars. And the heirs don't want them. The people who. So baby boomers are going to, again, they're all trying to get to the exit door at the same time. They're all trying to go play golf and travel at the same time. God bless them, they've earned the right. They're gonna give the stocks, the cash, the bonds, the homes, the real estate to their wives. Husbands, husbands, in the case that the wives made the money. The husbands, wives, the children, the lovers, whatever, but the kids and the. And the mates don't want the businesses. That's work, right? They're like, no, I'm good. By the way, there's a joke. First generation makes it, second generation spends it, third generation loses it. So a lot of people who don't, they pass down their assets, but they don't pass down their hustle. And that's a whole nother podcast for another day. But essentially, that's what this podcast series, and we're on season two now, has been about, is about, is really passing down how to demystifying capitalism, telling you what good capitalism looks like and training you so you can become a good capitalist. You know, the joke would be in social empowerment circles, it's not Black lives Matter, it's black capitalist matter. Or not just black lives matter, black capitalist matter. But this is, again, this is, this is a universal conversation for everybody. But I am supersizing this conversation for black America because we're at the bottom of the economic pyramid and we need to come up and this is a brilliant way of doing it. So let's now talk about, let's get into the actual opportunity. So this is $100 trillion that will transfer in the next 10 to 20 years. It's a once in a lifetime opportunity for black America in underserved communities to advance through strategic acquisitions of aging businesses ownership through. So there are, give or take, you know, 96% of black owned businesses in this country. 96%, 96% don't have an employee. And Operation Hope has created, inspired, advanced about 450,000 black businesses through the 1 million black business initiative. And of the 31, 32 million businesses in America, there are not enough that are able to do what, what I call compounding, which is, well, you build wealth and you're slipping, you sleep, you do that through compounding. So if you only have one employee, which is 96% of businesses, then you're a self employment project essentially and you're just making a living, maybe making a good living. But as soon as you stop that effort, the business stops. But if you have employees, you have systems, you have, you have, you have real estate, you have infrastructure, then when you're asleep, that business is, is growing and you have technology, it's orders are coming in, things are happening when you're on vacation, things are happening, so on and so forth. So clearly you stop, it stops. So we gotta find a way to create black businesses that have the ability to scale. Now you can start a business and if you want to start a business, I'm an entrepreneur, I've started 50 of them. I can't be mad at you. In fact I would encourage that. Generally speaking, 1 MBB 1 million black business initiative, our partnership with Shopify is encouraging that around E Commerce as an example. But there may be a smarter way for you to go about this. And I'm going to commit right now that I'm going to get operational to start training you in mergers and acquisition investment banking, sort of. This, this next, this thing I'm talking about in this podcast, I'm actually going to get Operation HOPE to do training around that. So I'm walking my talk so, so stay tuned, stay tuned for that. Let's get into $100 trillion in. Why should you care? Let's get to the meat of it. 10 to 12 trillion dollars in small, medium sized businesses of this going to be, be sort of orphans. Nobody wants them. Now keep in mind, I've just said most black businesses are self employment projects. They don't have infrastructure, they don't have systems. Take your finger off the economic button. Stop selling things. They just stop, they stall. So, so you, you've got cash flow, maybe you have riches because you have a contract for income. But as soon as you stop that, the, your outflow sees your inflow and now your overhead will be your downfall. You don't, you've not built any wealth. You haven't built anything you can sell. You're building anything that you, you, you can leverage up, franchise, whatever, right? So you can go start a pizzeria yourself or whatever business you want to start and raise the GoFundMe campaign or whatever, fifty thousand, a hundred thousand dollars or you can go buy something that already exists. Okay, here's the, drop the mic. I'm talking about businesses that have cash flows, that have customer lists, that have real assets, that have infrastructure, that have systems, that have a brand name, right? They, they, they have reputation, they have credit lines and they have an owner that doesn't want it anymore. I'm so excited about this. So again, 10 to 12 trillion dollars in small medium sized businesses that are going to transition into new hands. The children in the family really don't want them. Over 4 million businesses are owned by baby boomers. And again, 70% of these don't have succession plans, no place to put them. Okay? And they're great businesses. Baby boomers are retiring it hold on now. 10,000 a day. There are 10,000 people a day saying I'm out of here, I'm going to play golf, I'm going to shop, I'm going shopping, I'm going to go travel the world and you know, just say 10% of those, a thousand of those, 15% of those a day, 1500 of those have a business that has no place to go. So Black America currently own just 2% of U.S. businesses with employees. This is not charity. I'm talking about, I'm talking about capitalism with capacity. So we're talking about Black Wall Street 2.0 moment, if you want to call it that. It's nationwide and it's inclusive. This is about ownership, which is wealth, influence, jobs and community anchoring. This is if you want to call it Tulsa, you know, or black Wall Street. This is Tulsa in every community in America. And this is not a black business we're talking about. These are great businesses happen to be owned by black people, okay? And when you create wealth, you can then create. You can pass down philanthropy and you can start your own schools if you like, and give, give charity to whoever you like. You can created an entrepreneurship charter school in your neighborhood. You can give to charities. You can be enormously philanthropic and support your family and friends. You're paying your taxes now. All of a sudden, lights are staying on in your neighborhood now. Now you have services. You have the credit scores going up. You have better grocery stores replacing convenience stores. You have banks replacing check cashers. The whole community changes. The tax base goes up. Police are starting to protect you, not. Not prey on you. It's a whole new situation when you turn green from just being poor in whatever. And this is a way again to do this at scale. So let me get very specific now. We're at minute 26 again. You tell somebody, go to minute 26. You have a local dentist in Detroit with a thriving practice. Kids don't want it. Again, you thought I was going to talk about some high tech thing or some startup business? No, no, no. A local dentist. That's a business, by the way, in Detroit. Thriving practice. Customer lists. If you're living in dentist, think about if you live in dentists. If you live in Detroit, think about the dentist that you go to, right? You live in Maryland, you live in Baltimore, you live in Washington, D.C. you live in Hawaii somewhere. You live in. I was just in Arizona just yesterday, speaking at a CNBC CEO conference. You're in Tucson, where I just flew out of the. You're a dent. You go, who's. What dentist do you go to? Okay, they have a thriving practice. You're looking at the owner. You know, you, you can tell who an owner is when you're in a. With a business, by the way, you're looking at the owner because, you know, folks don't wash rental cars. Like, so there's a whole mindset with somebody owns something. You come in my business, you can tell I own something. I've had people tell me, like, you're the owner, aren't you? Right. So that owner, you see that owner, that owner looks 60, 65, 70. They try to get the heck out of there, right? Make an offer. Okay, I'm getting ahead of myself. Family run H Vac air conditioning business. Heating and air conditioning business company in Charlotte. No succession Plan architecture firm in Los Angeles looking for a buyout. A regional black led investment group can buy these businesses and keep jobs local and scale it up. It doesn't be a black led investment group. It can be a limited liability corporation with three friends that get together. I mean, I'm going to get the capital in a minute. Okay. But you know, it does, it doesn't have to be this sophisticated thing, although you have to go about it in a sophisticated way. You need to go get you some business training because there's a difference between business and business. Right? Right. And so go to Operation Hope. Go to the Urban League or whoever you like or the sba. Get yourself business trained. And, and we will scholarship you into that as long as we continue to do well at Operation Hope. And we're doing pretty good right now. Thanks for all the support. To our, from our partners, we will scholarship you into at least one year of consumer credit training. If you're a small business owner, you tend to use your own consumer credit in the short term because your business doesn't have credibility. Or we'll get you business training and entrepreneurship training if you want that, in E commerce training, et cetera. So think about these local businesses as you're driving down the street. You're listening to this podcast, right? Look up, there's an office building, right? There are hundreds of little businesses in there. Look to the right of you, look to the left of you, there's storefronts, right? Grocery stores, convenience stores, gas stations, nail salons, barber shops. Help me out here. You guys are watching this. Grocery stores, I've always said convenience stores, shoe stores, boutiques, medical offices. Yes, that's a business. They're everywhere. Literally they're everywhere. I mean, this is unbelievable opportunity I'm telling you about here. So the common barriers of people saying, this sounds great, John, but how do I access capital? I don't have these relationships. I don't have the know how. If you hang around nine broke people, you'll be the tenth. I've told you that you can change what you hang around. But these barriers are, are, are overcomeable. So I want you to look up all this sba, Small Business Administration, lenders, right in your area and go see them, go get to know them. Look at the FDIC insured banks in your area. They have banks have a CRA requirement, Community Reinvestment act requirement. Go see them. If you don't, you're too intimidated. Intimidated to go to the bank directly or you don't know who, who to approach because the Branch manager is not going to be able to help you too much in this what I'm talking about here. You need to get to a level above that to the corporate level at the bank. You can go to Operation Hope and we'll bridge you relationships. But I want you to go to banks and talk to them about CRA Community Reinvestment act and how you might fit in. I want you to go to the to ask them about their did they have any venture capital arms or private equity arms inside of their banks? Go to the sba Small Business Administration. Look for lenders and investors in your area. Look for small business investment corporations in your area. Look up CDFIs, Community Development Financial institutions in your area. If you if I'm going too fast, just rewind the podcast and write it down. Financial education and credit score improvement that's through Operation Hope. That is a form of credit. Yes, sorry, that is a form of capital. Actually if you have a 500 or 600 credit score, I don't care how good your idea is, you're not getting a loan, you're not getting an investment because your credit's toe up in the flow up and no one's going to loan you money because you don't pay it back. But if you get your credit score up 100 points, which is what Operation Hope is doing in 18, 24 months. Get your credit score up 54 months in 6 months, which is what Operation Hope is doing, we're raising credit scores 54 points in six months, lowering debt 32, 33, 34, increasing savings $1,200 for somebody making $48,000 a year. We just made you bankable at prime rates. I'm going to do a whole podcast just on the toolbox called Operation Hope and walk you through the how and the what. Do you like that idea by the way? If you do, let me know in the comments. So I call this the opportunity, the Ownership opportunity pipeline. Identify target industries, healthcare trades, real estate services, whatever you love. Educate Young Entreprene is about M and A, not just startups, mergers and acquisition. Again I'm going to tell you Operation Hope is going to do that, but you can if you know about this, do it in your area. This is a form of financial literacy. More sophisticated form launch acquisition apprenticeships for 25 to 40 year olds. Encourage investors to to back community led buyouts. Right? Use tax incentives and policy tools to support transitions of these small businesses. So go to your mayor, go to your county officials and ask them are there any tools in place to help these businesses transition. Maybe they'll put something in place for you. Local mobile gdp. Most gross domestic product income for this nation comes from cities. Not from the federal government, not nationally. It comes from cities. I mean, Atlanta right now, 10th largest economy in the entire country, right? 580 billion. Billion. Which is the same size economy as Singapore. And it's built on diversity, inclusion, and dynamic economic small businesses. So imagine what I want you to do is imagine 1 million new black businesses by 2035. They're at scale. Not what we're doing just right now with one MBB. Imagine something by 20 that are at scale. These are big businesses or businesses with employees, with pro, with profit centers, cash flows, brands, the next iteration of business. Communities shifting from being renters of their future to owning parts of it. Hello, Can I get an amen?

[Dexter Thomas]

Are there any pictures of you online? I'm not just talking about Google. I'm talking anywhere.

[Clearview Representative]

Clear View scrapes together images from Facebook, from LinkedIn, from Venmo accounts.

[Dexter Thomas]

That database is now being used by police departments all across the country to match criminal suspect photos. And sometimes it makes mistakes.

[Clearview Representative]

So in this one case, two of the search results that I think were in the top 10 of the search results were Michael Jordan. Just a picture of Michael Jordan.

[Dexter Thomas]

But cops are still using it to make arrests.

[Clearview Representative]

Police, they are trusting the software to lead them to the right suspect. But you're not even being told that it was used, let alone given any of the details about how it works.

[Dexter Thomas]

This is not Minority Report. This is happening right now. People are getting arrested and doing actual time in jail after being picked out by a computer. I'm Dexter Thomas, host of Kill Switch, where every Wednesday we explain the right now of living in the future. You can turn off the computer, but do not let the computer turn you off. Listen to Kill switch in the iHeartRadio app, Apple Podcast, or wherever you get your podcasts.

[iHeart Podcast Team]

Hey, everyone. We want to tell you about our podcast.

[Daniel Wienersmith]

Hi, I'm Daniel. I'm a particle physicist. And I think our universe is absolutely extraordinary.

[iHeart Podcast Team]

Hello, I'm Kelly Wienersmith. I study parasites along with nature's other creepy crawlies. And there's just endless things about this universe that I find fascinating.

[Daniel Wienersmith]

All right, well, basically, we're both nerds. We love learning about this extraordinary universe and we love sharing what we've learned. So that's what we're gonna do.

[iHeart Podcast Team]

And on our podcast, Daniel and Kelly's extraordinary universe is all about the mind blowing discoveries we've made about this crazy beautiful cosmos.

[Daniel Wienersmith]

From the tiniest particles to the biggest blue whales.

[iHeart Podcast Team]

Each Tuesday and Thursday we take an hour long dive into some science topic during which time I try to suppress my biologist training and keep the poop jokes to a minimum.

[Daniel Wienersmith]

Learn all about our amazing and beautiful, beautiful universe on Daniel and Kelly's extraordinary universe every Tuesday and Thursday on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts.

[Dan Flores]

The American west with Dan Flores is the latest show from the Meat Eater Podcast Network. Hosted by me writer and historian Dan Flores and brought to you by Velvet Buck, this podcast looks at a West available nowhere else. Each episode I'll be diving into some of the lesser known histories of the West. I'll then be joined in conversation by guests such as Western historian Dr. Randall Williams and best selling author and meat eater founder Stephen Rinella.

[Unknown Speaker]

I'll correct my kids now and then where they'll say when cave people were here. And I'll say it seems like the Ice Age people that were here didn't have a real affinity for caves.

[Dan Flores]

So join me starting Tuesday, May 2nd where we'll delve into stories of the west and come to understand how it helps inform the ways in which we experience the region today.

[John Hope Bryant]

Listen to the American west with Dan Flores on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts.

[Shannon Schuyler]

I know a lot of cops and they get asked all the time, have you ever had to shoot your gun? Sometimes the answer is yes. But there's a company dedicated to a future where the answer will always be no.

[Dan Flores]

Across the country, cops called this Taser the Revolution.

[Shannon Schuyler]

But not everyone was convinced it was that simple.

[Dan Flores]

Cops believed everything that Taser told them.

[Shannon Schuyler]

From Lava for good and the team that brought you Bone Valley comes a story about what happened when a multi billion dollar company dedicated itself to one visionary mission. This is Absolute Season one, Taser Incorporated.

[John Hope Bryant]

I get right back there and it's bad. It's really, really really bad.

[Shannon Schuyler]

Listen to new episodes of Absolute Season 1, Taser Incorporated on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts. Binge episodes 1, 2 and 3 on May 21 and episodes 4, 5, 5 and 6 on June 4 ad free at Lava for Good. Plus on Apple podcasts.

[John Hope Bryant]

Rebuilding the American middle class from the bottom up so ownership is the new civil rights. This isn't just about making money, it's about building legacy. So I want you to before I get down to the capital and where to get it and all that stuff, I want you to Tell your friends to subscribe and share this pocket or subscribe to the podcast. Share this episode. And I want you to start asking around from folks you know, who do you know that owns a business. I'm nosy. A guy gives you two ears and one mouth. You listen twice as much as you talk. I literally would go walk into an office complex. I go walk into an office building. I'd look at the register on the wall and I would see a business, an industry that I think I'm interested in. I go up the elevator. If it was. If. If the security guard downstairs did not protect access and most places do not. I'd go up. I'd look professional, wear a suit or dress or look professional so you don't look like you're trying to steal, like you're trying to, to like you're, like you belong there, right? And go up and go into that office and be a little nosy, right? Do some research. If you can beforehand figure out. If you can figure out who actually owns that business, you can do it in real. The Internet. You make your phone a smartphone, not a dumb phone. Hello. Use it for something other than concert tickets. Or use artificial intelligence to try to figure out who owns that business you're identifying on that registry and get a little background on that business owner. That business owner is over 65. Hello. They may want out. Okay, And I'm gonna get to what that means in a minute. So I'm gonna do a whole masterclass series on how you come up, right? And what this means for you and all that. But now let me just. In this podcast, let me get to 10 accessible industries for business ownership through succession or acquisition. I know you're asking like, well, John, well, what businesses? Okay, here's some easy ones. Home services industry sector number one, plumbing. H Vac. By the way, there's a plumbing crisis in this country. Plumbing crisis. There's a plumbing tradesperson's crisis in the country. There's a need for tens of thousands of new plumbers every year, if you can believe that, that electricians do. So you can't AI yourself out of a. The, the pumping, the, the pipes have burst. You can't AI yourself by the fact that, you know, your air conditioning has gone out. So plumbing's going to always be involved. Air conditioning and heat's gonna always be involved. Electrical, landscaping, pest control. Right? Environments running around your house like you just. Okay, how sophisticated you are, how rich you are. Get that thing out my house. Call somebody right now. So these are businesses, and they're owned by somebody. Does that interest you? High recurring demand. These businesses have a high recurring demand. They're often family owned. These businesses generate between $500,000 and $5 million on average in annual revenue. This is so, this is, you know, you can have a nice lifestyle in this situation for you and your family. Second industry, dental or medical practices. These are solo or small group offices. Typically dentists, podiatrists, chiropractors. Right. They often have stable cash fl they have high value, often turnkey businesses. They have tend to be, tend to be a very good loyal customer base. Number three, funeral homes. And by the way, this is an industry that was largely created by black America because no one wanted to bury us. It's really sad to say, but anyway, that's another podcast for another day. But funeral homes, they're recession proof. Hello people. I don't know how you gonna, how long you're gonna live, but I dang sure know you're gonna die. What's the mystery? Recession proof. Strong ties to community and culture tend to be very local. They have brands you trust. Many owners want to keep it in local hands and if you're in the black community, they typically wanted to keep it black owned in family feeling. So if I tried to, you may think I'm ruthless here. My mother passed on to glory and the people who took care of her did a really good job and I was so impressed that after the ceremony was all this stuff was over, I actually asked the lady who took care of us, do you know the owners this business, I like to buy it from them. Now I didn't push on that because timing was sort of bad but I was serious, like I saw opportunity. But my mother stayed in the senior living facility, very nice one, about 15 minutes from our house and it was like a resort and I wanted to buy that too so I could also ensure my mother was well taken care of while she was there. But it was also, I realized a good business. And, and with what I'm telling you now, it's a growing one. Daycare number four daycares in early childhood centers. High demand, especially in urban centers. Opportunities for mission driven ownership and community wealth. 5 Auto repair and body shops. This is still essential in a car dominated society. And even if you have robotic cars, they still need to, they're going to break down, right? So they're still going to need to be fixed. They still going to break. They have a flat tire and the brakes going to fail and the axle is going to fail. They still need to be repaired. AI doesn't have to take you out of your job or business. You need to master AI and you run the machines that run the AI. You run the free machines and service machines, run the robotics. I did a whole piece on AI. Go back and watch that. If you want me to go deeper, just let me know on that topic. So they're still essential. They're brand loyal. People have a lot of brand loyalty in auto repair and body shops. I know I do. And word of mouth and they're word of mouth driven. So they're really good businesses. The folks I do business with in my car, those are the only folks I call because my life depends on it. I'm driving around in something, I need to know it's dependable. The people are not cutting corners and risking my life. Number six, accounting and tax services. So baby boomer accountants often want to retire. It's a business that can wear you out. It's very good business but it is very detailed and wear people out over time. So folks want to retire and want to get rid of it. It's very profitable. Many are ready made for client, many have ready made client bases. They cross sell financial literacy, our planning services along with accounting services. So you can upsell and cross sell people. So it can grow it. You can franch not franchise, you can scale it all the way. You can have multiple offices for accounting and tax services. Number seven, beauty salons and barbershops. But this, this is a natural black and brown folks cultural cornerstone in black and brown communities. Right? Easy to expand with retail and online bookings, et cetera. This is why I want you to do shopify and operation Open one mbb. Because even if you have an existing business, we can sidecar that with an e commerce business. Just growing the existing business into something that involves efficiency of e commerce. I'll cover that when I do the operation Hope podcast in some detail. Number eight, logistics and delivery services. So, so freight brokers, local courier companies, last mile delivery fleets. Booming. These are booming with E commerce, right? But you know you gotta really love logistics and this is sort of something you gotta really just be into like somebody it has an engineering mind. We really love this. Number nine, cleaning and commercial janitorial companies. Big business, low startup overhead. You can do it with a high school education, steady cash flows, recurring contracts. In fact you can go from the streets to the suites and back to the streets with this, with this business you can be, you can do the local schoolhouse, the local, you know, liquor store as a contract. You could also be doing the local stadium in, in the same business in the same city. Number 10 franchise resale. So think Subway, UPS stores, home health care, fast casual restaurants, fast food restaurants. Many franchises offer financing support and seller financing, by the way. Okay, so now let me get into accessing capital. Owning a business doesn't mean you have to have all the cash up front, right? Or buying one. Now here's how to make the math work. People are like, okay, finally, minute 41, this brother finally got to how do I finance this thing? On thing. I'm broke. So broke I can't pay attention. So poor. I got, I don't, I don't. It's not spelled poor, just po, po. I'm just poor, right? What do I do? You're not poor, by the way. There's a difference between being broken, being poor. Being broke is economic. Being poor is a disabling frame of mind, a depressed condition of your spirit. And you must vow never ever, ever to be poor again. Right? So you just don't have any money, right? Or not enough. It's okay. I'm going to show you how to use other people's money OPM in a responsible way. So you want to buy a $500,000 business. Okay, the seller may. So this is the first example, okay? And I love this example. This, this goes right in line with go find an office building, go into it, or go see a business. Or even better, it's a business that you are a client of so you have a relationship with the folks and maybe even own the owner seller financing. This is very common, very common. Now this is a drop the mic at minute 42, right? This is this. Please pay attention. A seller lets you pay 30 to 70% of the price of their business over time. You define the terms. It's between fair exchanges, no robbery. So you, this is a quote from my friend Robert Root. You and seller agree on what the terms are. As long as it's legal, it's ethical, it's honest. You're not breaking any laws. Then there's your contract. I, I've often told you that a good negotiation is where you have two people, there's a table. Well, a good negotiation is where everybody leaves negotiations slightly irritated, slightly annoyed because nobody got everything they wanted. And, and, and so the, the seller wants to get all their cash up front and you, you would like to, to finance 100% of the business. You, neither one of you going to get either that. But, but you can find some common ground. Seller gets an exit strategy, they get some liquidity. Some cash right now, plus promise of cash in the future. And if you default on the business, they get the business back. They default on the debt to them, the contract, they get the business back because that's only fair. But they let you pay 30 to 70% over time. You may only need 10 to 20% of the cash up front and you might be able to, okay, get this, you might just need a little bit of cash from family's friends, bank, whatever, because you might be able to sell or finance it with the seller's business. The rest of that cash, even part of the 20%, once you get into that business, you're going to get cash flow. It's an existing business you can take if you don't need that cash to live on, you can take some of that cash after you pay the business the bills of the business to finance your obligation to the seller. Number two, SBA, Small Business Administration 7A loans. So this is up to $5 million. 10 to 20, sorry, 10 to 15% cash payments. Cash down payment required from you. It's two very favorable terms from the SBA operational by the way. Started with an SBA 7J grant of $61,000 and now we're the largest in our category in the country. So the SBA really a lot of Fortune 500 businesses came from the SBA, by the way, so favorable they could be favorable terms, 10 year repayment, typically 10%. I mean, you know, less than 10% interest in some cases. It's down in the, in the 1 and 2, 3% range. It's just unbelievable rates. Banks love lending for businesses with proven revenue. You're buying a business with proven revenue and this SBA financing would come through with a bank. Number three CDFIs, community development financial Institutions. I really want to applaud Robert Smith here, the billionaire black businessman who has been very, has been leaning in doing a lot of great work in the community. And I become new friends and he's now trying to support CDFIs, particularly those in the southeast region. And we're trying to figure out whether Operation Hope and what he's doing can, can come together in some way. But I really commend him here supporting CDFIs that are supporting communities. So just a little shout out for him is these are. So CDFIs are mission driven lenders. They're more flexible than big banks. They are great for black entrepreneurs and Latino entrepreneurs and poor, you know, poor rural community, you know, strivers, whatever. They're great folks. At the bottom of the pyramid are folks who don't have access to relationship capital essentially is what I'm saying. You'll see them on Native American Indian reservations or serving those communities. You'll see them and look at a list. Look for a list of CDFIs. They're great for those who are credit challenged or first time buyers. When I say credit challenge, I got your attention, didn't it? 4 CRA Community Reinvestment act from banks. They must lend in underserved communities. Many have programs for small business transitions. There are 4,500 FDIC insured banks in this country. All of them have this obligation. They're not going to give you the money, but if you're smart about how to do it, they will work with you. And the CRA conversation at least opens the door where they'll listen to you. I have arranged, facilitated and invested about 4.5. Really $4.8 billion when I can include my private businesses of capital in underserved neighborhoods. A lot of it has been through banks. Five partnerships are syndicate buyouts. So team up with two to three trusted friends or partners. Not pookie and them. Not the homeboy shopping network. Not your cousin you're going to argue with, not your financially literate uncle. Right? I'm talking about business. Business, not personal. You make an emotional decision is going to be a bad one. Make sure that you know who you're partnering with and that these people are competent. Right. Team up with two to three trusted friends and our partners pull capital and divide labor, finance operations, customer service, figure out who's good at what and divide. Divide and conquer. You don't need to do this solo. If you do this, by the way, do it through an llc, a limited liability corporation or another structure. Don't do it just like the, you know, handshake and things like that because people are really friendly when the money's coming in and get really nasty when the money's going out or things go south. So make sure it's structured and make sure it's documented and not emotional. Business is not personal.

[Dexter Thomas]

Are there any pictures of you online? I'm not just talking about Google, I'm talking anywhere.

[Clearview Representative]

Clear View scrapes together images from Facebook, from LinkedIn, from Venmo accounts.

[Dexter Thomas]

That database is now being used by police departments all across the the country to match criminal suspect photos. And sometimes it makes mistakes.

[Clearview Representative]

So in this one case, two of their search results that I think were in the top 10 of the search results were Michael Jordan, a picture of Michael Jordan.

[Dexter Thomas]

But cops are still using it to make Arrests, police.

[Clearview Representative]

They are trusting this software to lead them to the right suspect. But you're not even being told that it was used, let alone given any of the details about how it works.

[Dexter Thomas]

This is not Minority Report. This is happening right now. People are getting arrested and doing actual time in jail after being picked out by a computer. I'm Dexter Thomas, host of Kill Switch, where every Wednesday we explain the right now of living in the future. You can turn off the computer, but do not let the computer turn you off. Listen to Kill switch in the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

[iHeart Podcast Team]

Hey, everyone, we want to tell you about our podcast.

[Daniel Wienersmith]

Hi, I'm Daniel. I'm a particle physicist and I think our universe is. Is absolutely extraordinary.

[iHeart Podcast Team]

Hello, I'm Kelly Wienersmith. I study parasites along with nature's other creepy crawlies. And there's just endless things about this universe that I find fascinating.

[Daniel Wienersmith]

All right, well, basically, we're both nerds. We love learning about this extraordinary universe and we love sharing what we've learned. So that's what we're gonna do.

[iHeart Podcast Team]

And on our podcast, Daniel and Kelly's Extraordinary Universe is all about the mind blowing discovery discoveries we've made about this.

[Daniel Wienersmith]

Crazy beautiful cosmos, from the tiniest particles to the biggest blue whales.

[iHeart Podcast Team]

Each Tuesday and Thursday, we take an hour long dive into some science topic, during which time I try to suppress my biologist training and keep the poop jokes to a minimum.

[Daniel Wienersmith]

Learn all about our amazing and beautiful universe on Daniel and Kelly's Extraordinary Universe every Tuesday and Thursday on the iHeartRadio app, Apple Podcasts, or wherever you hit your podcasts.

[Shannon Schuyler]

I know a lot of cops and they get asked all the time, have you ever had to shoot your gun? Sometimes the answer is yes. But there's a company dedicated to a future where the answer will always be no.

[Dan Flores]

Across the country, cops called this Taser the revolution.

[Shannon Schuyler]

But not everyone was convinced it was that simple.

[Dan Flores]

Cops believed every everything that Taser told me.

[Shannon Schuyler]

From Lava for good and the team that brought you Bone Valley, comes a story about what happened when a multi billion dollar company dedicated itself to one visionary mission. This is absolute Season one, Taser Incorporated.

[John Hope Bryant]

I get right back there and it's bad. It's really, really, really bad.

[Shannon Schuyler]

Listen to new episodes of Absolute Season 1, Taser Incorporated on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts. Binge episodes 1, 2 and 3 on May 21 and episodes 4, 5 and 6 on June 4 ad free at Lava for Good. Plus on Apple podcasts.

[Dan Flores]

The American west with Dan Flores is the latest show from the Meat Eater Podcast Network. Hosted by me, writer and historian Dan Flores and brought to you by Velvet Buck. This podcast looks at a West available nowhere else. Each episode I'll be diving into some of the lesser known histories of the West. I'll then be joined in conversation by guests such as Western historian Dr. Randall Williams and best selling author and Meat Eater founder Stephen Rinella.

[Unknown Speaker]

Oh, correct my kids now and then where they'll say when cave people were here and I'll say it seems like the Ice age people that were here didn't have a real affinity for caves.

[Dan Flores]

So join me starting Tuesday, May 6th where we'll delve into stories of the west and come to understand how it helps inform the ways in which we experience the region today.

[John Hope Bryant]

Listen to the American west with Dan Flores on the iHeartRadio app, Apple podcast or wherever you get your podcasts. Number six, private investor or local angel investor group. So retired executives and local investors looking for steady returns. You want to pitch it like Main street private equity deal. So you know you want to have a pitch deck. You want to have a professional presentation. You're just doing it on Main street versus Wall Street. Lastly, you can get a home equity loan or a retirement rollover. Rob, robs, robs. Use retirement funds from your 401k or your IRA without penalty under a legal structure which is common in the franchise world. Okay, so those were some examples of how the industries you can go into and how you can finance. Now I'm going to teach you very quickly in the last few minutes we have together. If you enjoyed this, by the way, let me know when you see see pieces of this on social media. Let me know what you think. I'm gonna tell you how to how to value a business. Again, I don't want you feeling unintelligent, like you didn't know this stuff because no where would you learn it? No one teaches you financial literacy. No one teaches you capitalism. How would you ever learn? This is what we don't know, that we don't know. That's killing is what we think we know. There's nothing wrong with not not knowing something. Be nosy. God give you two ears and one mouth so you listen twice as much as you talk. So I'm gonna tell you now how to value the business that you find. Okay, so average revenue ranges for mature businesses in the 10 accessible categories of industries that I just told you about. Now these are ballpark figures for healthy Established businesses operating, you know, in succession targeted buckets, meaning that these are folks who are in an age range that they want to sell their business. Right. So, and these are sort of, you know, traditional markets where there's a vibrant economy. So home services industry that I've already covered, the average revenue range is going to be 500,000 to 3 million on average. Dental and medical practices, 800,000 to 2.5 million. Funeral homes, 700,000 to 2 million. Daycares, 300,000 to 1.2 million. Auto repair shops, 400,000 to 1.5 million. These are individual locations. Hello, we're talking, we're not talking about insignificant enterprises here. This is, you'll be, you know, you can, you'll have a million dollar business with one well run location. Accounting and tax firms, 300,001.5 million. Barber shops. And these typically have, you know, 3 to 5 to 10 employees. Barber shops and salon, 150,000 to 800,000. This is a multi chair salon. Has $800,000 in revenue annually. Logistics and delivery, 500,000 to 3 million plus. Commercial cleaning. Get this. 250,000 to 2 million on average. Franchise. So you ain't, you're not. So you ain't too proud to clean now, are you? $2 million a year. Million dollars a year. I'll take, take it. Franchise resales, 500,000 to 1.5 million on average. Now, the most common valuation method for small businesses is called a multiple seller discretionary earnings valuation. So it's an sde, seller's discretionary earnings valuation. So it's a multiple of an sde. Right. And essentially the profit the owner takes plus any discretionary expenses like personal care, you know, travel, et cetera. So here's how you do this. How you calculate an sde, you start with the net income of the business. You add back owner salary, depreciation, amortization, non recurring expenses, personal expenses. So if the company has a revenue of $800,000, a net profit of $150,000, you'd add back owner salary and perks, $100,000. The SDE there is $250,000. Got that? If you don't understand what I'm saying, just roll back the podcast and listen to it again and pull out something so you can write this down. Second step, I want you to apply a market multiple. Okay? For most Main street businesses, the multiple ranges are between 2x and 3.5x of the SDE. So it depends on the industry, the risk profile, the growth potential and dependence on the owner. The more dependent on the owner the business is, the person's selling it, the less valuable it's going to be. For obvious reasons, the owner's leaving. So if you have a. So the valuation is SDE times multiple. So $250,000 SDE times 2.5 in this example is a $625,000 business valuation. Got that? That's, that's what, that's what you're going to buy the business for in this example example. So if an SDE has is $150,000. Right. A multiple of 2.5. The business valuation is 375. Okay. 253x multiple 750k value. 350 SDK SDE. I'm sorry. 350. 300,000 3x multiple 3.45 multiple 3.5x multiple multiple 1.225 million. So things that decrease value, heavy owner involvement, customer concentration, outdated tech, increasing value, non recurring revenue. I'm sorry, no recurring revenue. That's very important. That was my mess up. It's important that you get this one right. Increased value is recurring revenue revenue naturally. And if it's just sort of rinse and repeat, if it does on its own, like a membership, my God, that's so good. So if you have a dentist, a dental office and you have some kind of a membership program, that's just passive. Great income. I love that. That's making money, building wealth in your sleep. Turnkey operations, great tech, you know, management, great, you know, automation management's in place. Strong brand that gives you a, an increase value. You might pay more for that. Okay, so. So profitability and operations determine the value, not size alone. So you can have a $1 million business losing money. It isn't worth much, but a $600,000 business netting $200,000 a year, that's a gold mine. Okay, so let's now look at. There's another. Somebody who's an accountant or investment banker is going. John, we talking about sde, right? No, we're talking about ebitda. That's for a bigger business. So I'm gonna cover that in the last part of this podcast. EBITDA is earnings before interest, taxes, depreciation, amortization. So SDE sellers, discretionary earnings, ebitda, big bigger businesses, earnings before interest, taxes, depreciation and amortization. So how do they differ? Right, so I said an SDE seller, discretionary earnings is best for small owner operated businesses. Less than $5 million in revenue, includes owner's salary plus personal perks. Shows total benefits to a single owner. First time typical buyer is a first time buyer, individual entrepreneur buying a local H VAC company or salon or small accounting firm. Okay, but EBITDA earnings before taxes, interest, taxes, depreciation and amortization. That's, that's really mid size or larger businesses or $5 million dollars or more. This excludes owner salary and add backs shows true operating performance. Okay. Because basically you have a bigger business. It does. The owner's salary, whatever, is almost irrelevant. You have to pay somebody to be the CEO of the company anyway. It's just sort of, you know, where it's not, it's not, it's not all that material to a business running, you know, the owner's salary is not that material. In fact, you assume that you're going to have a CEO in place with a $10 million business and so you just, it's just the cost of doing business. So this excludes owner's salary and add backs. It's typically bought by a private equity firm, institutional buyer or strategic buyer. Acquiring a $10 million logistics company or regional medical group is an example here. Right. So if you're. Now here's multiple valuation differences. If you're buying a company, small one, with an SDE approach, you'll have a multiple of between 2.0 to 3.5 of the net profit of the business. If you're buying a business based on EBITDA, it could be 4.0 to 7.0 and sometimes 10x the revenue of the real revenue, the profitability of that business because it has much more potential because you can scale a larger business. If you're buying a local business that runs well and with one owner, think a barbershop, a dental office, an H Vac. You use sde. If you're looking for at something with a management team or investor and the investors involved, that's where EBITDA comes into play. I hope this has been helpful to you. I hope I've broken down for you the how, the what, the who and the where and where do you start. And I even pointed you to a starting place. Like literally just drive down the street street and look, you just go crazy with opportunity. It's literally everywhere. And these companies, the owners want to go. They want to go. And you may meet a new friend along the way. You may break down racial barriers and create new social circles. Because now you're talking about business and now you're talking about something that is a language which, that wealthy folks understand. So now you're being invited to different country clubs and private meetings and different conferences and your whole world expands. And then they get a sense of culture and community and they get to understand that these black people are really smart, like, and they're reasonable people. And so they start listening to you and not looking at some crazy news article that suggests that you are. You got five arms and three legs and you're not smart, which is just, of course, not true. True. We built this country for free. They didn't go get us from Africa. We were dumb. They got us because we were agricultural geniuses of the land and they needed us to be able to bring that land back to, to life. Now what we're going to do is go from, from, from being being worked by the land and being owned by people to owning the land and, and charting our own future and sharing that opportunity with all of God's children. Children are having this opportunity to share with all of God's children. That's full circle. Rainbows after storms. You cannot have a rainbow without a storm first. It's a scientific fact. And good philosophy, too. This is the civil rights movement. This is John o' Brien. This is the Black Effect Network. Podcast. Money and wealth. I'm glad that you spent this hour with me. I hope that you felt it was worth it. I don't want you to get mad. I want you to get even. I want you to succeed is where I'm at. I don't want you to be spending your time getting angry. It's just going to make you old and ornery and unhappy. Right. I want you to be optimistic whether the glass is half full or the glass half empty. Depends who's looking at the glass, whether you believe you can or whether you believe you can't. You're absolutely right. An entrepreneur works 18 hours a day to keep from getting a job. Like, I don't even work. I do what I love. I do it for free. Give this world good energy. That's what my T shirt says. And I. That's what your, your life should be about. Remember that disease is often dis ease, right? So I want you to put good energy in this world. I want you to put love into this world. I want you to put positive vibes in this world. We're not human beings having a spiritual experience. We're spiritual beings having a human experience. Yes, this is a money podcast, but it's also about wealth. And wealth is spiritual. Wealth is energy. Because if I don't like me, I'm not going to like you. If I don't feel good about me. I'm not going to feel good about you. If I don't respect me, don't expect me to respect you. I don' if I don't have a purpose in my life, I'll make your life a living hell. Whatever goes around comes around. There's not enough police to save you from somebody who has no hope. The most dangerous person in the world is a person with no hope. We all have an interest. I believe in enlightened self interest. Whether you're white and wealthy listening to this or black and struggling. Whether you're a billionaire millionaire, somebody trying to buy some air. Hello, can I get an amen? We all have an interest in making sure that anybody who wants to succeed can can. All of us have an interest in giving people a reason for hope. And that's what this podcast is about. It's good capitalism at scale. Let's go change the world together. I'm out. John o' Brien Buy the book. Subscribe to the podcast Money and Wealth and go to Operation Hope. Tell them I sent you. They'll give you $1,000 initial scholarship for coaching and counseling and get your credit score up, your debt down, your savings up. And I will do a special podcast and just on breaking down all the empowerment things going on at Operation Hope to give you the tools that you need to lift yourself up. As I know that I assume you know what's going on at Operation Hope, but I should not assume because when you do that, you make a you know what out of you and me to assume. I mean. Okay, bye. Foreign wealth with John o' Brien is a production of the Black Effect Podcast Network. For more podcasts from the Black Effect Podcast network, visit the iHeartRadio app, Apple Podcasts, or wherever you listen to your favorite shows. SA.

[Will Pearson]

In a world of economic uncertainty and workplace transformation, learn to lead by example. From visionary C suite executives like Shannon Schuyler of PwC and Will Pearson of iHeartMedia, the Good Teacher explains the great teacher inspires.

[Shannon Schuyler]

Don't all always leave your team to do the work that's been the most important part of how to lead by example.

[Will Pearson]

Listen to Leading by Example executives making an impact on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

[Dexter Thomas]

Are there any pictures of you online? Then you could already be in a massive police database without even knowing it.

[Clearview Representative]

Clearview scrapes together images From Facebook, from LinkedIn, from Venmo, across accounts.

[Dexter Thomas]

I'm Dexter Thomas, host of Kill Switch, a podcast about how living in the future is affecting us right now.

[Clearview Representative]

Police, they are trusting this software with this magical ability to lead them to the right suspect.

[Dexter Thomas]

In this episode, we dive into how cops are using AI and facial recognition and sometimes getting it wrong and putting innocent people behind bars.

[Clearview Representative]

So if your accuser is this algorithm, but you're not even being told that it was used, let alone given any of the details about how it works.

[Dexter Thomas]

Listen to Kill Switch on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts.

[iHeart Podcast Team]

We love learning about this extraordinary universe.

[Daniel Wienersmith]

And we love sharing what we've learned.

[iHeart Podcast Team]

And on our podcast, Daniel and Kelly's Extraordinary Universe, that's what we're gonna do.

[Daniel Wienersmith]

I'm Daniel, I'm a particle physicist and I think our universe is absolutely extraordinary.

[iHeart Podcast Team]

I'm Kelly Wienersmith. I study parasites and there's just any endless things about this universe that I find fascinating.

[Daniel Wienersmith]

Basically, we're both nerds.

[iHeart Podcast Team]

Each Tuesday and Thursday we take an hour long dive into some science topics.

[Daniel Wienersmith]

Learn all about our amazing and beautiful universe on Daniel and Kelly's Extraordinary Universe. Every Tuesday and Thursday on the iHeartRadio app, Apple Podcasts or wherever you get your podcasts.

[Will Pearson]

Hear insightful, entertaining discussions on today's important health and wellness topics on the Health discovered podcast from WebMD. Through in depth conversations with experts, Health Discovered covers everything from tips for healthier living to the latest on therapy and mental health. My goal is to really destigmatize mental health treatment and looking at it from a whole health perspective. Physical health and mental health can be intertwined. Listen to WebMD Health discovered on the iHeartRadio app or wherever you get your podcasts.

[iHeart Podcast Team]

This is an iHeart podcast.