00:00:00:00 - 00:00:25:13
Unknown
Cool. All right, maybe, Mike, this one's going to be business. So you want to ask anything? Because I think, yeah, it would go into business because I feel business is a very important sport. Like we said, it's a gladiators sport. The more we play the more chances of getting killed. But maybe. Is there anything that you want to ask Mike or even Ahmed?
00:00:25:14 - 00:00:55:11
Unknown
Yeah, obviously. Cool. All right, cool. I'll talk about some stuff. Right. So, Yeah, so I think in business, it's important to understand this seven forces that I've learned, and I want to share that with the audience, Right. I feel these seven forces have been the critical questions to kind of change my business, whether it's from a startup business all the way to like a multimillion dollar business.
00:00:55:11 - 00:01:16:02
Unknown
Right. And the first one that we need to cover is the following, right? there's actually five questions that I don't know if you know Apple, right? Steve Jobs ask themselves on the verge of bankruptcy. Right. The first question is, what business are you in? Right. And we constantly assess of like you might go, hey, I'm a D.J. or I am a broker.
00:01:16:05 - 00:01:38:14
Unknown
I might. Sally Sara, Right. You need to identify yourself more than just, hey, what is it that I do? I think you know, Steve Jobs as himself. What business we're really in, right? So for those there, no audience, right? Apple would think, hey, in the beginning, what basis are they in? Andrew? I'm just asking, what do you think business, Apple is in?
00:01:38:14 - 00:02:05:18
Unknown
In the beginning. The beginning? Yeah, I. I recall you, starting up and selling, like, electronics and computers. Computers, Right. Excellent. That's a great question, But then Steve Jobs asked himself, like, what business we really in? And more importantly, the third question, which is the deeper level, what business he really should be in. Right? It's like my may I ask you like, hey, you know, if you were to know what, what would it be?
00:02:05:18 - 00:02:22:14
Unknown
Right? So it's just not that normal QUESTION Hey, how much do you need to start up a business? I'm not sure. Right. That's the general question. How are you? I'm good. Right? That's the normal like answer, because it's just on the surface level. But when you get to the deep in your subconscious, you may know. And that's why I ask you, if you were to know, what would it be?
00:02:22:14 - 00:02:42:24
Unknown
Or is that easy for you to work out? That's when you get deep in your psychology. And same in relevance in here with Steve Jobs. What business are you really in and what business should you be in? Right. I ask that even today, hence why, you know, in this podcast I know Andrea and my you went there and before we left we talked about SMSF.
00:02:43:01 - 00:03:02:14
Unknown
For those that know in the audience, it's self-managed super fund because we're adapting to change, right? That's a business that we really need to be in. And in fact adding more value. You talked about value than any other mortgage broker, that consultancy firm, right? You probably can feel. Mike and I'm really passionate about business, right? So they're the three.
00:03:02:14 - 00:03:21:09
Unknown
So what business are you in? What business are you really in? What business should you be in? Right. And then the next one is why are you in business? The bucket, right? In tech. I love terms, right? You need to know your why. Right? We talked about the table and having enough reasons. Right? Money is not enough. I want to do my podcast because I want to make money.
00:03:21:09 - 00:03:40:21
Unknown
So that's one way, right. But you know, if you'll really believe that message. Right. Or what you're going to share, of course there's more pillars, right? Or in a business, you're doing it because of the family or you want to provide them a better lifestyle. I don't know what it is for yourself, but if you really write down your why not just one multiple reasons, right?
00:03:40:23 - 00:04:00:13
Unknown
Then I'll keep that. you know, sustainability. You talked about it, whether it's wealth creation, whether it's business creation, whether it's passing your HSC, right, your ETA, right. You need to know your reason. Why is it I need to get a good mark now, unfortunately, I don't know. Your parents may put some great pressures and hopefully they're listening to this podcast.
00:04:00:13 - 00:04:22:03
Unknown
It's like, Hey, you need to be a lawyer. Unfortunately, the ATO, you need to get certain marks to get into the uni and to get into a degree before you can practice law. You're right. What's the data that you need? I'm just curious, you know, average wise, can you get in if it's 89 plus or 90 plus? Good.
00:04:22:05 - 00:04:42:08
Unknown
I'm trying to get to do it still the high, but I'm sure if I don't even the optimal exam. Yeah, sure. Okay. So you need a set of marks to get into there, Right. So again, why is it that you want to go in there? And then lastly, who are you? Right. We talked about for those business owners like myself, you start off as an artist, right?
00:04:42:10 - 00:05:02:08
Unknown
So artists is when you're creating the craft and then, yeah, you're good at lending. That's what I was. And then a banker and mobile banker and then starting my own business. And then you evolve to a management position or manage a leader. And lastly, entrepreneur people when they start a business, right, they think they are entrepreneur by entrepreneur.
00:05:02:08 - 00:05:21:23
Unknown
The definition in this case is that someone that's got a love of money, right? Someone like a Richard Branson, he's an entrepreneur because he puts in $1,000,000 on like every, you know, grow like seed business, which hasn't taken off, right? Ten of them, $10 million, right? One of them becomes 100 million. That's how he makes his money. He may or may not care about the culture.
00:05:21:23 - 00:05:41:02
Unknown
The key thing is or entrepreneur is what return on investment. All he cares about is the return, right? And they manage and manage a leader. So and then the artists. So I think of it as like, you know, basketball, right? So you're LeBron James is the artist, right? You make heaps of money because you're playing the basketball, right?
00:05:41:04 - 00:06:01:09
Unknown
But then the next one is manager leader right? So maybe what team does he play now or I don't even know LeBron Is anyone note What? No, but just say, Hey, go. The manager of Golden State Warriors, right? So that's a manager leader. Not as much pay as the artist himself, Right. Playing the basketball. And then lastly, who's the owner of the Golden State Warriors?
00:06:01:09 - 00:06:18:19
Unknown
Right. So I think they the three into the definition you need to identify why because they're are the artists is different skill set right So if I am a manager leader can I be an artist? Not really, because I can't be doing those deals when I'm if I'm doing this podcast right. So I need a team of people, right?
00:06:18:21 - 00:06:38:17
Unknown
So your psychology needs to change. You need different skill set. You need to look at people skills, right? Management skills right, and the skills goes on. And lastly, entrepreneur is a bit more easier probably, but it's more like a profit loss and a balance sheet. But again, it could be losing, It could be winning, right? So there's different risk, right?
00:06:38:19 - 00:06:55:21
Unknown
What has more control? Definitely. If you are an artist, you have more control, but then you can't scale yourself because you're the all the other artist. So people will see you, right? You're like the celebrity, right? You may not have like personal time, right. Where it's very different to manage a leader because they may not be the face of the business.
00:06:55:23 - 00:07:20:11
Unknown
Right. So that's seven forces. What business are you in? Right. you need to understand the life stage. We talked a little bit about that, right? So, you know, we at large, we talk about a business is born, right? It's a baby, right? It's going to cry, right? So if you're saying, hey, you want to have not in terms of business, just a normal baby, if you want to have a baby and think you have all the time in the world, think again.
00:07:20:11 - 00:07:35:11
Unknown
Right? You're not going to be flying to Fiji and sipping on pina coladas. Right. So therefore, same thing as a business when it's at the birth of the business, is that chewing up a lot of money or chewing less? What do you think? A lot less. A lot, right? Yeah. So it's going to chew a lot of your cash flow.
00:07:35:13 - 00:07:53:16
Unknown
It's going to chew a lot of your time. It's going to like you're the artist running around. So until you become a newborn, you become a toddler. So it's not crawling around. You know a little bit about business. You start knowing the assets and liabilities in a balance sheet. But not really because you're still reading the cash flow statements.
00:07:53:16 - 00:08:12:02
Unknown
Am I making a profit? Am I drinking when it's losing money on my drinking, when it's making money? But then you evolve because you get more sales, right? You start to run a team, right? You become a teenager. So that's when the growth in sales and and you've been like kind of like hiring a sales team or management team.
00:08:12:02 - 00:08:34:03
Unknown
So there's a roles and responsibilities this person is doing marketing, this person's doing sales, this person is managing, right? So then the common problems is that, hey, you got more people, but where's the systems? What's the CRM? So for those that don't know CRM, it's the customer relationship management. All right. And then what is after teenager is then young adult, right?
00:08:34:05 - 00:08:58:10
Unknown
So what happens? Teenage a young adult, just like, you know, Andrew, I'm sure you you're having a concern, right? You got your peas and you call your peas. What do you do? They tend to speed, right? Compared to me, you're right. I want to be safe. Right? So I want to be safe and get to my destination. But, you know, for young adult, more opportunities to kind of like love to step on that pedal and go a bit fast.
00:08:58:11 - 00:09:20:04
Unknown
Right. So therefore, after the young adult, you become optimized, right? So your maximization optimization, that's when your your your business is really turning over cash flow. You no need to worry about it as well as well. It's like what we define business. Operator Now you become business owner I'm not there yet, so I'm working towards that and then business go for aging, right?
00:09:20:08 - 00:09:39:18
Unknown
So what's an aging business? So we all know Netflix, but you know, it's a business that we all know when we're kids. Maybe not Andrew, because he's too young, is a company called Blockbuster or Video Easy, right? It got through the aging right because at one stage Netflix offered Blockbuster how much to buy them out? Millions of dollars.
00:09:39:18 - 00:10:00:22
Unknown
I couldn't remember exactly. But what they blockbuster say, It's like no, right. There's no way people going to stream look at the Internet speed. Yeah, we still have DVDs and we'll watch it right If you has no way, it'll be extinct. And guess what happen right As that technology evades from one megabits per second to ten megabits to 50 or now 100.
00:10:00:22 - 00:10:23:24
Unknown
Right. Like HD is very possible with five devices in your house. Right. So blockbuster video easy. What are they. They never to be found so therefore I don't care any business there's this life stage and you need to understand the patterns and before it gets aging. So there are some. Right. You know, Kodak is another one, right again And you may not know because it's all digital.
00:10:24:01 - 00:10:44:20
Unknown
It's on your phone. Do you remember my late Kodak, right. Or camera? Yeah. With the film that you delivered, they even had that slogan, right? It's the Kodak moment. But where's Kodak now? Right at one stage. Kodak didn't want to be the dominant in what, digital camera. It's true story. So they want to be dominant in films. So they said that's all we wanted to do.
00:10:44:20 - 00:11:07:18
Unknown
But guess what? Again, same thing. What? The cameras have three megapixels, right? And then they got to five, ten, 20. How many megapixels? Now it's all your phone, right? We Google iPhones and so forth. Right. So therefore, it got not just aging, institutionalized and then bankrupt, red dead. Right. So therefore I feel it's understanding the life stages. So you can play a bit better.
00:11:07:20 - 00:11:33:01
Unknown
So another thing in business is anticipate the road ahead, right? I don't know for the audience. Some of you guys, Tony talks about Uncle Tony, playing video game, right? What's the favorite video game of that you play? Andrew If you were to choose one, I just have Minecraft, right? Yeah, you play Minecraft, it's not that competitive. You say like, is it is it can it be competition between two people or.
00:11:33:03 - 00:11:51:22
Unknown
Yeah, it's called play was a player. Yeah. Yeah. So I think if I was to play Andrew right I'll be gone straight away. Right. So hey, I'm glad you go first, right? Mycroft Well firstly, what are the buttons, right? What are the rules of the game? Shit, I don't even know, right? What does the why does the Xbox is a Xbox that you play or what?
00:11:51:22 - 00:12:12:04
Unknown
What system do you play on Minecraft? I just use my computer. A computer so I don't even know what control is. So I say, Hey, to let you go first. Right? You play, we'll have birds, right? 2 seconds. Boom. There I get shot by the enemy and I'm dead. And then Andrew's like, Hey, you did really well. I'm calling my turn right?
00:12:12:06 - 00:12:33:24
Unknown
And then it's like that Tick tock, Right. 10 hours later, it's still going on there. Well, he's shooting the enemies and he's going there now. Is that Andrew? That he's smarter, right? Or any better? Stronger, right. He's got like muscles in his fingers on on his keyboard. No. Right. What's the difference between Andrew and Uncle Allen is the fact that he played it.
00:12:33:24 - 00:12:53:22
Unknown
How many times? How many times I play Minecraft, I it's right. This is my first time playing Minecraft ever, right? So therefore what we're trying to get at is that in business, the same thing is a sport you need to play it a few times, you need to practice, you need to fail, right? But it's about anticipating the road ahead.
00:12:53:24 - 00:13:16:05
Unknown
So hopefully this first fourth, which is the business map, right? Tony talks about map, not a plan. Right? Why is it not a plan? Because if Coda had a business plan and they followed it, they're really dead. Right. So that's why we talked about the, you know, autopilot. Hey, the map is we here from Parramatta to get to Bondi.
00:13:16:05 - 00:13:35:17
Unknown
How many ways are there two to get to Bondi? Andrew Like how many ways you might get by train, what else you can cause by us? Helicopter, airplane, right. Multiple ways, right? That's why business. It's not about a business plan. This one way we're going to get there and we're going to get all the goal in the treasure.
00:13:35:19 - 00:13:55:06
Unknown
The map is X, but you can go different ways, right? Different methods. So therefore, I feel, yeah, you need to navigate and assists. You talked about, hey, how often do we assess? Do you remember? Not every month because sometimes, like, expenses don't come every month. I'm just jumping a little bit with your budget, so it's like three months is a six months.
00:13:55:07 - 00:14:17:19
Unknown
Is it a year? Right. That's why, you know, if you're measuring yourself, especially in business, right. Your profit and loss and balance sheet, you should have different timeframes. So you can look at, hey, am I really making money right in my following my map and my out of the map? no. I mean Ingleburn, I need to turn around and go back to, you know, my ex is laughing because you're going the wrong way, right?
00:14:18:00 - 00:14:43:02
Unknown
You need to change your approach and go back to hopefully the highway and make it back to one day. I know we laugh, but I think, yeah, we get stuck on that because we we get lost in is say, hey, no, it's the roads, man. They led me to nowhere. So if you take responsibility and accountability in business and understand these sort of, you know, messages and knowledge, then hopefully it gives you a better chance in playing the game.
00:14:43:04 - 00:15:05:19
Unknown
So that's number one. Any questions? First one? No. Okay. Second question, Ready for that? Right. Constant and strategic innovation, right. So talk about business. You should be writing this down, right? So you got hey, what business they are in, right? Tourism or AI or whatever it is was energy you know Albury what business should we be in is to create raving fans, right?
00:15:05:19 - 00:15:28:17
Unknown
So we can help them at different life stages of their finance journey. Right? So whether it's home loans or our business partners creating the wealth, that's what we're really about now, constant and strategic innovation. So you need to look at ways to deliver your product or service, right? So you know, what is strategic innovation now? Why is it strategic?
00:15:28:19 - 00:15:51:11
Unknown
Because your company may have money, but if you spend all your money innovating right, and then not make profit, right, therefore you're going to go broke. What's a perfect example, Right? A competitor that's in the mobile phone industry is Nokia, right? Nokia was great at one stage, right? Remember, we were playing snakes and it was like different covers, right?
00:15:51:11 - 00:16:13:02
Unknown
They did this strategic innovation. But what was missing, because Nokia was created by a bunch of engineers, So what did they do to the phone? They always wanted to make it better, right? How did they make a better? It got smaller. You got a flip phone, right. But then what they didn't do was anticipate the road ahead, like, you know, that Minecraft game.
00:16:13:04 - 00:16:36:03
Unknown
So what happens in the screen? I remember when I was in high school, it's like, no way it could be color, no way it could be touch screen. Guess what? All phones a touch screen, right? Because what came in the market, Apple right. Because of that strategic and constant strategic innovation. So in fact, like you know we talk about what business Apple is in like they're into connecting people's passions.
00:16:36:03 - 00:16:59:11
Unknown
Right. That's what Steve Jobs asked the question the first one and answered it. Why? Because yeah, what happened in the beginning after the computers, he remembers a show of hands, iTunes, remember? Yeah. It was a big block, right? I mean, what does it grab when you're with? You're like, bored. Yes. So, yes. Okay. But Cdmo walkmans. What? There your time.
00:16:59:11 - 00:17:17:02
Unknown
Have you seen a CD or Walkman before? Right. Okay. I'm just trying to see my age. Okay, So I've seen a CD and a Walkman, but you got iTunes, right? We got some deejays in the house. We're not exactly. So Apple had the iTunes and then what did they get better. So they they had different sizes. It got smaller.
00:17:17:04 - 00:17:42:03
Unknown
Right. And also change what the color. Right. So then it was not only five songs in a cassette type which what we had. Andrew in our time, they had thousands of songs. MPEG three right? And then you can choose that any time you could stop, you can skip, you can fast forward right now, cassette tape. We need to use a, you know, pencil and rewind before it could start again.
00:17:42:03 - 00:18:09:11
Unknown
Sorry, it was very ancient for us in the eighties and nineties, right? So I tunes got better with different sizes, different colors, but they went into what, Macintoshes iPads and you know they, they kept developing because the iPhone and then it led into iPhone so why am I saying that is you need to constantly innovate right. If you can't deliver your product better than your competitor, then you will lose, right?
00:18:09:13 - 00:18:31:14
Unknown
So therefore, like even for us as mortgage brokers or as investors, right, you mention Maya about investing in property, but it no longer is going on the website and buying a property. Maybe. Hey, is that in a grove suburb? Is there any added value we can do to the property? Now that's more advance, but I'm giving you a context into the strategic innovation.
00:18:31:14 - 00:18:50:18
Unknown
Is it a house that I can renovate or is it a house that I'm buying now at the bank? I can build a granny flat, right? I'm just talking about different ways because if you do build it, it's a different return altogether. Is that making sense? Yeah. So that's number two. All right. Any questions? Number two, No questions?
00:18:50:20 - 00:19:14:18
Unknown
No. Okay. Good to you. All right. So number three, okay, not in particular order, but I'll talk about so financial and legal analysis, right. So hopefully we all know now and Andrew should know now, Maya, what's the free scorecards that we should have? Right. Profit and loss cash flow statement. Right. Andrew, do you know what profit loss means?
00:19:14:20 - 00:19:38:07
Unknown
Yes. Yeah. Business studies. Right. So what is it? Yeah. So what, what's the statement talk about? Yeah, I'm just curious. It's not it? I'm not. All right. You know, I get wrong. That's it. Yeah. Profit loss. Yes. Do you know what goes into a profit loss or not? Sure. I'm just, you know, this is actually ironic because I just learned about finance.
00:19:38:13 - 00:20:03:14
Unknown
The finance part of it. Yeah, just now. But. Yeah. Okay. So what's your understanding of profit loss? Maybe a better question. Yeah, because it just isn't just a bunch of them lost. Yeah. Okay. Another way. Yeah. So for a business, the profit loss, right? Profit is your income, right? So income comes from running the business. Are you selling something a product for providing a service.
00:20:03:14 - 00:20:21:09
Unknown
Right. I know you guys are providing a service. You're going to get income, right? And then minus you expenses. Right. So what did it cost you? Right. You know, is it tape? Is it like those sort of expenses? And then that's your profit, right? So you need to measure that even though your salary owner I encourage because that's the first thing we need to do.
00:20:21:09 - 00:20:38:20
Unknown
Right, baby, Step right even for yourself. Do you have pocket money? Yeah. Yeah. That's your income, right? Do you have expenses? Of course. Yeah. Yeah, But not a lot. Because you don't have to pay rent. Do you? Have to pay rent? Why? We don't have to. Because we worked out with most young people living at home that financial security was zero.
00:20:38:20 - 00:20:58:00
Unknown
Right. That's not expenses. Very good. Live at home most of the time. Right. You're going to build your wealth, right? That's number one to you. So yeah. So you need to have that. Why? Because we talked about what is the remaining so your income from a job minus you expenses of it's a business and expenses you have net profit.
00:20:58:02 - 00:21:18:06
Unknown
So therefore there's two ways you ought to put it all in savings, your security bucket, where you might have a percentage in savings and a percentage in your gross pocket. Right. Which is investing in property shares, whatever it is. Right. And I figured have a percentage to give, right? So I spend, save, invest and give. Right. That's the purpose of the money.
00:21:18:12 - 00:21:40:00
Unknown
But what happens? People spend more than they earn, right? So they earn a like they spend 110, 120. So that's never a way to build wealth, right? Because you don't have any excess. Right. And worst thing is like they go or get a credit card, I'm going to borrow the extra 20 or 30 to live my lifestyle. Your lifestyle is not 130.
00:21:40:02 - 00:22:05:19
Unknown
You're earning 100 right? So that's why the mindset. Right. And why they tie it to the balance sheet, because we need to look at assets. I'm not asking you. I'm just we we're talking about assets. So a car, is it an asset or liability? Andrew It's a luxury. Okay. Sure. Yeah. If you're if you are if you are getting a car loan, yes, there's a liability the color But that the car itself, right.
00:22:05:21 - 00:22:25:22
Unknown
It's still an asset in the balance sheet, right? Yeah. It's like you can still sell for value. Now let me ask you, is that an appreciating asset or depreciating asset? Right. It's a depreciating. Okay, great. Awesome. Right. So that's what we want to clarify. Right. So hopefully you're learning some stuff, right? So house right. I'm not talking about unoccupied, just like an investment property, right?
00:22:25:22 - 00:22:50:13
Unknown
Is it an appreciating asset overall in general or a depreciating asset? most definitely, yeah. Yeah. Is it going to go up appreciating or. Yeah, appreciating. Right. So therefore I think a balance sheet and this is where you're going to create your wealth, right? I mean one aspect which is this money because your, your assets and it's your liabilities is your own, it's equities, what you're worth, right?
00:22:50:15 - 00:23:09:05
Unknown
So therefore if I have all my assets, right. Yeah. Because sometimes I don't tell my parents like how heavily properties I own, Right. Because of other reasons. Right. But then at the same time if I minus the liabilities, I have the net. Well, because if I tell them hey I have X amount of properties, but I tell my parents, hey man, I got a lot of debt too, right?
00:23:09:07 - 00:23:30:24
Unknown
I love liabilities to service, but I was they sell everything today minus my liabilities. Yeah. Okay. Right. So there's good net worth, right? So if it's $1,000,000, great. If it's Tamerlan's. Excellent. Right. If it's 100, still good. But you can measure it. Right. Your assets minus your liabilities. Right. But there's another asset class. I know you invest a bit.
00:23:31:02 - 00:23:56:11
Unknown
Tell us what's another asset class that you invest in? Great. Awesome. Okay. So, I mean, you don't need to tell me what shares is. No tips in anything, right? But you know where. So. So I mean, you're buying it for the long term or you're buying, selling, trading. What what are you doing at the moment? I'm curious. I'm I'm using a kind of like an alternative to just an easy to find shop.
00:23:56:11 - 00:24:14:16
Unknown
Yeah. So I'm trying to get some sort of passive income going. As we talk about passive, It does it. Yeah. So it's got a bit of education about that. So it's good that you weren't at that session and you're mentioning some jargon, right? So active versus passive, right? So it's a passive income because shares give you what I think call dividends.
00:24:14:22 - 00:24:33:13
Unknown
So dividends is kind of like your interest on your savings account, right? And that could change. It could be more, could be less right and so forth. Right. You don't need to tell me all your shares. What's one company that you invest in? I'm just curious. I would say the one I have so far is New Hope or I did.
00:24:33:15 - 00:25:02:15
Unknown
What industry did I do like energy, energy or renewable energy or any energy, right? So just like light power, Right. Okay, great. And what's the dividends as a percentage? Do you know what? It's 11% return. Yeah. So what Andrew is saying that if you invested 100 K right into this new hope, right? So 10% is 10,000. So there will be a dividend of 10,000 that it will go into your income statement, profit loss, right.
00:25:02:16 - 00:25:27:05
Unknown
By assets. It's the share. Right. And you bought it at what price. I'm just curious not testing you to you know do remember I, I, I think is remember it's was like okay well how much is it worth now. Approximate five points. Okay so imagine he did, you know, purchased there for $4. So now it's $5. It's gone up.
00:25:27:05 - 00:25:47:07
Unknown
How much per cent. So it's gone up 25%. So if he was to realize that shares today at $5, whatever, just $5 is 125,000. Right. So it's may 25 grand. Right. If he decides to keep it, he still gets the dividends. Right. So that's an asset on your balance sheet, right? Very important. Right. Not cars. I'm glad you don't have a car.
00:25:47:07 - 00:26:04:13
Unknown
You don't have a car. Will be. I got good my friends have I've only five but they might transfer. Yeah. As long as there's no car loan. Right. Because the biggest thing for any young person, you're saying, hey, all right, I've got a job. Great. I'm working, right? I'm going to go to a bank and give me a what?
00:26:04:13 - 00:26:25:23
Unknown
A car loan. Right. So because the car loan is, say, 50,000, you get the latest Mercedes or the DTI, right? Whatever it is. Right. Then as soon as you drive it, what happens to that 50,000, Your asset goes daddy value because if we to resell it is 45 grand, but you still have a loan of 50 grand, right?
00:26:26:04 - 00:26:43:20
Unknown
Yes. It's going to pay down, but slowly, usually a car loan is five or seven years. Right. But it decreases. Right. But if you were to sell the next day, you're lost money because it's negative equity. Right. But of course, as time goes by, it doesn't decrease as much. It's still a bit of value of this car. Right.
00:26:43:22 - 00:27:03:22
Unknown
You know, 25,000. And then hopefully by seven years you paid a down and zero, then, yes, it's to an asset, but it's a depreciating asset. Right. Whereas if you leverage on a property right. Uncle T.K. was talking about. Yes. You borrow if it's a 500 K asset. Right. So then you borrow 400. Right. And then the assets are going to go up.
00:27:03:22 - 00:27:26:20
Unknown
Right. So five years, ten years and we recalibrate. We talked about it's $1,000,000 after five, ten years. Right. But your debt still at 400. Then you made 600,000. So your net equity increases. So the type of assets is important. Now, can you lose money in real estate? Yes. If you emotional about it and go out there and buy on real estate, I'll come to you.
00:27:26:22 - 00:27:47:23
Unknown
The properties were in Paramount at 1 million and then you bid for 2 million. You're going to lose money. You definitely get the property right, but you will not do so well on financial analysis. Is this making sense? Yeah. Sorry, I'm just putting you where am I going to just go to podcast to get away. So yeah, that's financial and legal analysis.
00:27:47:23 - 00:28:09:17
Unknown
So lastly is cashflow. For those business owners out there, you need to know three types of cash flow, right? One operating cash, right? So you're operating, you get income, right for our services is great. You invoice, you get the money in the banks, we get our commission income, we get that from operating the business. What's the second type of cash, right.
00:28:09:17 - 00:28:41:08
Unknown
If your business invested right, just imagine it wasn't a enjoy, it was S.G. and had all these shares and the dividends. It's investing cash, right? So he's coming back through investments. So it could be a savings account that you have, could be term deposit. Right. And then lastly is what I love is open financing cash. So that's why, you know, you borrow money and some people may be depending on the beliefs they may not want to borrow because they don't want to live rich.
00:28:41:10 - 00:29:03:09
Unknown
But there's times that you need to borrow because business could be tough, right? Y because let's say you invoice all these people and they didn't pay, right? They call it accounts receivable, right? So therefore it's already on my basis and I know some of you guys know right in the audience, I don't have cash to pay. So they need to finance for the business that they, you know, get some unsecured loans.
00:29:03:09 - 00:29:27:18
Unknown
Right. And then to pay for that cashflow and hopefully they'll get the money from the receivables. And these are the three things. It's the cash flow that cues you. It's never the profit, right? Because you can go on profit loss. Guess what? You know, we were saying we just had mamic write downs. This if I said to the owner of Mamic after having that Malaysian beautiful ruddy, I said, Hey man, how would you like to pay for that?
00:29:27:20 - 00:29:48:00
Unknown
Look, I'm going to pay it through my net profit. Do you think they would accept it? Yes or no, Right? No. Right. They don't care. You're net profit they just want is a cash credit, right? Or the other right. So therefore you need to manage your cash flow because sometimes operating cash may not be there. So if you're not investing, you don't have invest in cash.
00:29:48:00 - 00:30:08:11
Unknown
And lastly, financing cash. And if your business cannot finance or your personal right can not inject money into the business, then that's how it's going to go bankrupt. Is this making sense? Right. Yeah. So the three again, you know, the scorecard, profit loss, balance sheet and then cash flow statement. All right, the fourth one. But it should be the most important one.
00:30:08:13 - 00:30:41:16
Unknown
Right. Any questions for the third one? No. All right. Four One is World class marketing, Right? So I need to market. Right. And then I'm going to talk about a story that Andrew gave to me and then I'm going to talk about it in a very interesting way, because you mentioned about, you know, I studied business studies just like yourself 20 years ago and you mentioned what's the pitfall piece in their business when you're asking it products, price, product price, place and promotion, right?
00:30:41:18 - 00:31:04:00
Unknown
So promotion, these marketing places, you know, where you're like, you know, operating and then what's the first two product and price is it okay shop right. So that's the way it is a business that is right. We need to evolve right? Why if I relied on place, how many walk routes do I get to get a home loan?
00:31:04:00 - 00:31:25:23
Unknown
No one's going to buy me a can I come to level 49 just to get a home loan? What do you think? Yes or no? No, never. Right. I'm not. I like a Westfield's right and I won't be investors. Why? The rent is going to be so expensive, right? Promotion. I can tell you different ways of promoting, but price every broker sells the same stuff, so you need to do things different and product you need to differentiate yourself.
00:31:26:01 - 00:31:49:09
Unknown
Just like I said, with Apple constant inch strategic innovation, right? So these are outdated, right? Well, I have not backing the system because it needs to be relevant right now. I think the teams create it. Right. What's the key thing in business? Number one, you were to start a business to write this down. You should know your purpose number one, Pete Right.
00:31:49:11 - 00:32:06:20
Unknown
Why is that? That you need to have the purpose? Because you don't have the purpose. It's not going to. When business gets hot, you don't know what to do. Right? This too hard. I'm not going to do it anyway. Right. Number two, you need to have is passion, right? You need to love what you do. Doesn't matter, right?
00:32:06:21 - 00:32:26:01
Unknown
If you don't love business, you don't love like money you can love the money is okay. But that's one aspect, right? You need to love the journey. You need to love the people. You need to love the challenges, the mistakes and stuff. If you don't have that passion, no way. Right. And then number three is what people write when you grow your business.
00:32:26:01 - 00:32:42:05
Unknown
Unless you're an artist, you don't need to worry about people, you don't need to worry about yourself. But if you are growing your business and managing your business, you need to have people right. Even your subcontracting. You need to work with relationship. That's people, right? And you have a lot of people. That's great. And I do. Right. And then what's the fourth thing?
00:32:42:07 - 00:33:00:07
Unknown
Processes, right? You need to have process. How are you going to like, do a loan? Right? We better have a process that's ten people in a team who is going to go first? He's going to go second, who's going to strike? What's the roles and responsibilities right? If you don't have a process, they walk into the store. It's like, you know, kids soccer, right?
00:33:00:09 - 00:33:26:22
Unknown
The boss, they all the kids go in there, right, and kick the ball. Right. So you need to have a process. And lastly, what what's the key purpose in all of these is to make a profit, right? Business is there to make a profit. We talked about I think we Mike and I'm like a bit before people go into business, maybe for certain reasons and some maybe not the right reasons because they want to be feel significant or special.
00:33:26:24 - 00:33:45:20
Unknown
So therefore they want to start a business and say, Hey, I have a business, but it's losing money. but I've got a business. Look at me right now. I'm really cool, right? You need to make a profit. Right? And the other five, because you talked about sustainability. If you're not profitable, why are you still in business? So therefore it comes back to the first fourth.
00:33:45:22 - 00:34:06:18
Unknown
Why are you doing this right? Are you as passionate now as you are before? Hopefully I can. You know, you can feel my passion that I'm more passionate about business than ever before, right? Because I had a stage where I wasn't passionate about. Right. And I know Mike met run certain things with men. And then because you go through different cycles, you can't be always Monday.
00:34:06:18 - 00:34:22:23
Unknown
Monday. Yeah, I'm kind of, you know, you go to the world and it just makes a massive profit and I my God, there's so many things to do. I'm got to pick up my kids. You got to do that, right? You don't feel as excited sometimes, but they feel, you know, you find your purpose and you're back again.
00:34:22:23 - 00:34:45:02
Unknown
Hey, Tuesday, my podcast, right? You're here, right? It's fantastic. So all of this last thing is profit. Okay, so it's a bit different to your business study. Is this helping? Andrew But don't don't write that in your essay. You might get here. Okay? So please make sure you stick to your no obis. But I say like, that's the difference between studying and you talk about financial literacy.
00:34:45:04 - 00:35:08:07
Unknown
So he's learning business studies. But what I'm talking about this is the real business studies, right? Because you making a profit and then next thing, are you investing your money? Are you taking the money off your table? Right. Those sort of things are really important. Okay. Questions. I would like some questions. You know, no questions. Okay. All right.
00:35:08:07 - 00:35:31:20
Unknown
What's off the marketing is sales systems, their mastery. Right? So I talked about processes, right? Marketing is like the beginning. So I'm going to use like. So it's like Woolies, right? What's the favorite like product that you like buying from Woolies? Is it a chocolate? What's the chocolate that you like to eat? Chocolate. Yeah. So yes. Ferrero Right.
00:35:31:20 - 00:35:48:12
Unknown
Okay, great. Okay. So usually is that in the top aisle, is it in the bottom aisle that you have been like, it's in the middle? What, what, what's the placement? It's based in the height of their challenge so that they could see all the chocolate they want to make that shot. so it's a bit they like of being on your hip hide right.
00:35:48:12 - 00:36:07:16
Unknown
That you're pegging. Right. So therefore why am I sharing this is the marketing unfortunately I know you do. So marketing is that so the sexual sell first but the substance laid out. Right. So their position in a way that my God, I need to buy that. Right. It's visually appealing, right? And it's packaged in a very like selling way, right?
00:36:07:16 - 00:36:27:05
Unknown
So you're picking that product. But when you eat the Ferrero, which is the sales process, so markings first it attracts you. Second, it's the sales process. I don't know if you had an experience. Ferrero is obviously good, right? It tastes good. So you come back again and again, right? So your raving fan, right? No other chocolate? Just we were.
00:36:27:07 - 00:36:48:01
Unknown
And anyway the same game of dairy milks the second row but not as good because not positioned in your hip high right. Okay cool. So yeah the sex the sell by substance is later right. Tony talks about that. So therefore we need to get better on the psychology of their clients and how do we do that? There's a 60 Minutes which I'd touch on very briefly.
00:36:48:03 - 00:37:09:08
Unknown
Certainty, variety, connection and love, significance, growth and connection. If you really understand psychology, then you can get them in, but you better have a good process because that's the sales process. So it's like you need to make sure they're ready to buy. Then you take them through that journey so someone's like, Hey, I know you're not ready to buy a house.
00:37:09:08 - 00:37:27:12
Unknown
Buy We did. Then I've got a team to kind of like, Hey, what do we need to do with Andrew? We need to sell him this Privacy consent settings are easy dogs, right? I'm just doing some technical stuff with this. Documents he needs to provide for you. Buying a home, by the way. No, I'm just checking that he's going to upload documents.
00:37:27:18 - 00:37:49:10
Unknown
Your mum will facilitate that. The, you know, the conveyancing, right? And then the law and the clauses. So that's the sales process. So you need to have a good client journey, right? So, you know, working with Mike's great, you know, he's, you know, just doing this podcast, he did send something a read up on this. It can help you with your podcast, right?
00:37:49:12 - 00:38:09:13
Unknown
This is what we're going to do, doing half invoicing now, have invoicing later, that sort of thing. So it's managing that expectation rather than what's happening, what's next, right? So it's really important business to kind of map every journey along the way. Okay, The better that you do it, like who he loves to shop at Amazon. I'm just curious.
00:38:09:13 - 00:38:26:21
Unknown
I mean, I love shopping at Amazon. I'm sure you do, Mike. You have to write because wife works there. So it's like, man, a few clicks, I've got that shipped and it's tomorrow. Why am I going to Woolies and Ferrero? And in there we're not going to get a box. Well, I could get a repeat order, right. I'm just saying.
00:38:26:21 - 00:38:52:07
Unknown
Right. But I still love going to Woolies because I can. You know, which one's good one? Which one's not good. Right? Right. Because people meet sort of needs, right. Rather than shopping online. Okay. I hope. Is this useful? Andrew Yeah. Okay, great. All right. So we have a13, four, five, six, six write maximization and optimization. Okay, so what's maximization and optimization?
00:38:52:07 - 00:39:15:09
Unknown
So you've got your sales process sometimes like you need to measure, right? So you can't manage anything if you don't measure, right? So for example, for us in terms of our business, how many leads that we get, how many interest do we get, how many conversions, how many buying a new home, how many buying investment. You need to know that optimization and well, firstly capturing that data, then you can optimize, right?
00:39:15:11 - 00:39:36:18
Unknown
So for example, if you were to hey qualify a bit better faster than we may optimize, right. In terms of more conversion, if we were to train more like poor Maia and Andrew yourself, you can help us qualify. So therefore I can market more and get more leads and then filter through and then go for that sales process and make more money.
00:39:36:18 - 00:39:56:12
Unknown
Right. Why is that important in terms of maximization? Right? Because if you don't maximize, you can't really scale, right? So if you don't scale, right, you're not really maximizing the purpose of a business if you're not an artist, right? So what do I mean by that? So why do I recruit more people is not because, hey, I want more people.
00:39:56:14 - 00:40:20:21
Unknown
It's because we deliver a bit more value, right? More clients we can serve, right? Because one person in terms of home loans, maybe a mum, I can service full clients. Right? But if I've got a team of ten, how many can I service? Maybe 40, maybe 50. Right. So I don't make as much is an artist when you're managing, but that's how you learn to optimize in a business and that's why there's no limit potential, right?
00:40:20:21 - 00:40:40:11
Unknown
Like cafes, right. You could have a few but optimize it maximization when it comes to that, you need to have good people, right? If it's no good people to run the business, it doesn't matter how well you optimize it, maximize it. That's why it also could be some limiting belief with some business leaders and owners in expanding. So that's why you see Mamic, right?
00:40:40:11 - 00:41:02:15
Unknown
You know, the restaurant that we ate for a few franchises, but not 100 stores, right? There's one in Temasek, right? You know, they just said artistry because they don't want to share. And, you know, produce more compared to another restaurant paper. Rich Right. So over but they did franchise what happened to the quality may not be as good right so I'm just looking at business real concepts in terms of how we optimize and maximize.
00:41:02:17 - 00:41:28:06
Unknown
And lastly, raving fans, what's raving fans? So raving fans is the most important because they'll stop telling others about your business. So Uncle T.K. was actually a client of mine, right by Some of you guys know his story. I helped him extract his equity or OPM. Other people's money, bought a few assets, became a raving fan. To be honest, he was the best referral partner I ever had.
00:41:28:07 - 00:41:52:14
Unknown
Right. Telling about. You must talk to Alan. Okay, relax. But he's showing really real intensity. He wasn't a client. It was rain fed more. If you haven't. If you talk to one broker and you talked. Alan, you know the difference, man. You must talk to him. Right? So. And as a result, he became a mortgage broker, right? So raving fans, why clients will not stay right?
00:41:52:14 - 00:42:11:09
Unknown
If clients is driven on your P, which is price, if a home loan is much cheaper, guess what? They'll go. They'll go somewhere else. But they knew Alan and Energy and the T.K. team did Smith air for Hey Really grow with you or the knowledge in business that they have and I could really add value, right? Like you mentioned.
00:42:11:11 - 00:42:33:01
Unknown
Do you think they'll stay still will buy go buy less likely, Right. Is that makes sense. So you need to work on hey, how to get more skills, how to add more value, how to create raving fans. Right. So that's the seven forces. Okay. But it's yeah, you cover it with Tony on like probably five or six days, right.
00:42:33:03 - 00:43:00:19
Unknown
Because it goes into depth. Right. What are some of the learnings, what are the breakthroughs and so forth. Right. yeah. Any questions now? Like maybe no questions, but just comments. Comments about each other's points. That makes sense. It's like, you know, we're fans of each other's work. Yes. And that's what I would do. Yeah, of course. And we learned a lot right through communicating and things like that.
00:43:00:21 - 00:43:19:13
Unknown
And, you know, because Mike does, you know, he he's done all the corporate photos in the website, so that's him. But also he's doing this podcast, a lot of videos working with different partners like Ahmed. I met for the first time, but you know, a lot of good value. But I feel is we need a team of experts, right?
00:43:19:13 - 00:43:35:10
Unknown
So we hope that adds energy. We create wealth through a group of trust that experts have with you guys. I feel the social and the digital is a it's a bigger game, right? So I want to appeal to audiences like yourself, right? Not to say, hey, there will be raving fans, but hopefully you'll get your home life with me.
00:43:35:10 - 00:44:03:10
Unknown
Right? Right now I'm taking no pressure. I'm not selling. So yeah, no, I want to appeal to different audiences because I feel like this work that I'm doing. So I'm really grateful to share this knowledge. And there's a few other things I think it's important we talked about is, you know, in constant and strategic innovation, you need to have that point of difference and unique selling proposition, right?
00:44:03:12 - 00:44:22:06
Unknown
So we talked about, hey, there's eBay before. Why is Amazon doing better? Because they have a better proposition, right? Point of difference because they're easier to pay, man. Or log in. Right. They have more products. Right. And what's their unique selling proposition? Right. So they make it so easy that a few clicks of a button and you get what you want.
00:44:22:08 - 00:44:42:10
Unknown
So therefore in any business that you do, you need to think about what is that difference? So Apple right point of difference is that the creative brain and a culture, when there's a new product that comes out, guess what? People are lining up for it. Do you see people lining up for a knock? You know, you see people lining up for an Apple device right before its launch.
00:44:42:12 - 00:45:02:19
Unknown
It's got all these features right. This is going to do X, right? They have raving fans, right? I mean, I'm raving fan in a sense, for Tesla. Not because, you're driving a you know, a crazy car or something. It's the innovation, right. Like did you know you can update it just changes right. It's just gets games and all that stuff right.
00:45:02:19 - 00:45:24:04
Unknown
Even the kids love it, right? So there's a lot of point of difference and unique selling proposition versus a boring Toyota lite. Sorry, I shouldn't say Toyota, but just like normal car, right. Because it doesn't have those features. Right. So therefore, you need to understand now business is forever more competitive and even marketing, we're talking about how you can go take Instagram, right, and all that stuff.
00:45:24:06 - 00:45:44:01
Unknown
But now working with like after this podcast, it's not just, hey man, like it's it's great visually, like they see my face and your face, but hey, what's the captions? What's emoticons, what's the colors? I need to be standing out right for them to catch their attention like I said, the marketing or the sex sells. But you need to create the substance because it's later on.
00:45:44:01 - 00:46:05:18
Unknown
Hey, you're interested. Come to an event, right? Talk to us. We can teach you a bit more. Right? Or let's do a podcast, right, those sort of things. So I think it's really important that we understand that, and that's the most important business. Once you have the marketing for it, then you have the right people and the right to to, you know, chew up the business, then you can make profit.
00:46:05:23 - 00:46:43:21
Unknown
This is making sense. Cool. Bit of a break otherwise a lot. and then it's over to you. Yeah. Andrew is the questions that you want to ask and so forth. this is this question. you do you have. Yeah. Yeah. It's because. Yeah, I'm still doing the case study. Okay, cool. All right, let's record demos. Well, okay, cool.
00:46:43:23 - 00:47:11:24
Unknown
You can ask. Yeah, actually. All right, so what's the brief history of the business? Is that a history? Yeah. I think it started. That's how you guys may know. Through ads like Aussie Home Loans. John Simons Right, because they don't want the banks taking majority of the business and John allowed like, you know, different lenders to be on the pan, also provide a people choice.
00:47:12:01 - 00:47:40:15
Unknown
I think it's in the nineties and then leading up to the 2000, right I mean I entered the industry already I feel a bit later because I started in 2012 but there were already mortgage brokers well in the early 2000 and now it's become more competitive. Why? Because more become people become mortgage brokers. Now, I in fact I think over 70% of a mortgage in 2024 is facilitator through a broker and.
00:47:40:15 - 00:48:05:02
Unknown
The reason is that the good bankers usually in banks come out and be a broker. I'm not saying, Hey, all mortgage brokers are good. You can see that some are still focusing on cheaper price, which is important, but we don't rely on just price because, you know, I condition myself to learn and absorb and run other businesses. So I do have this one, outsourcing businesses investments, right?
00:48:05:04 - 00:48:24:24
Unknown
Because I want to add more value and I don't sell myself enough. I feel right. That's why we're doing this podcast is adding value to clients. I really care about developing their wealth. So wealth, not just money, as you can tell, right? Different areas. We do charity stuff and we go and help the poor, right? That's the way of fulfillment and wealth money wise.
00:48:24:24 - 00:48:45:18
Unknown
Right. Buying assets, commercial, residential. But also I walk the talk. So I do have a number of properties like me and my wife have double digit properties and just bought one today. But also you need to manage your balance sheet because your assets and liabilities because of your psychology is not right. Then you feel like you know, sometimes overleverage and am I doing the right thing?
00:48:45:18 - 00:49:18:22
Unknown
Right? You doubt yourself, right? Which is again, the mindset. So yeah, I think in a nutshell, going a bit off track right back to here is yeah, mortgages being around or mortgage brokers, but we're doing things a bit differently. Does that answer your question? Because the you say so yeah but is it all right so along with the economic influences that affect your growth, what's what's the second one?
00:49:18:24 - 00:49:48:04
Unknown
So that's the second most important one. growth. Yeah. Okay. I think you touch on that because you're asking economic factors. so economics, interest rates is important, I think. I don't think it's a major factor because we were discussing some business owners, you know, created their multimillion dollar or billion dollar business in recession. So Tony, he talks about you need to be in control of your psychology and your mindset.
00:49:48:06 - 00:50:08:10
Unknown
So if you believe that financial winter is here, which it is, because, you know, sometimes inflation is this cost of living is going up. But, you know, in a snow feel. What do you see sometimes in the snow for you? Right. It's people that are freezing to death, right? They don't have fire or heating devices. What will happen?
00:50:08:10 - 00:50:26:11
Unknown
Some people are going out to the snowfields, snowboarding and skiing. Right. Having the time of their life. Right. So it's your choice in terms of what you choose to believe. Right. So therefore, I feel the second thing is your psychology, right? So your mindset, what you choose to believe. Henry Ford said if you believe you're right, you're right.
00:50:26:13 - 00:50:43:00
Unknown
If you believe you're wrong, you're wrong, right. So choose the side that you're going to believe. Now, does that mean, hey, yeah, I need to have positive thinking all the time? No. Right. I think as a business owner like myself, and I don't do that. When I was a kid, my mom, I posted something. Maybe Mike saw it in Facebook.
00:50:43:00 - 00:51:04:01
Unknown
I said, Hey, man, I'm really proud of myself. I made my bed today. It's like I make it every day. And my mom was like, Hey, man, you never used to make your bed when you were a kid. Hey, I'll change it if because I'm break it down that elephant psychology. If I can bite the nails and I can make my bed, that's one successful thing that I done today, Right?
00:51:04:01 - 00:51:24:02
Unknown
So that's really micro, but I love it, right? I fix the bed, my wife's happy, I'm right. And then you got to get kids. How come, you know, fixing the bed, right? They haven't got that learning yet. So therefore, going back, I don't believe in economic external because what you can control dream, right? Because that's what you can control.
00:51:24:02 - 00:51:57:12
Unknown
Right. But break it down into little bite sized pieces and keep yourself. And if it's not with someone else, write a buddy to make sure you progressing to the way that you want it to go. It's kind of question. Yeah, I'm ready. So what's the kind of target market you would go for? It's very good, Yeah. So we have different target markets and free to be exact.
00:51:57:14 - 00:52:20:04
Unknown
Why the free You don't want to have like, you know, two, four, six, eight. Right. Sometimes it's odd numbers and it's three steps to success. Five steps. Right. What the three first time buyer like yourself like starting out or getting ready. Right. We want to educate them because we want to hold the hand and nurture them. What are the potential hints and tips and challenges when investing in property?
00:52:20:08 - 00:52:39:11
Unknown
I know exactly the process. I talked about this buy buyer, right, and I'm not putting you on the spot, but you may need very little deposit to get into the market because there's so many government incentive if you're PR or citizen to get into the property market. So I would love working with them right, because they they become our target market.
00:52:39:15 - 00:52:59:19
Unknown
It's one of our target markets, but ultimate target market. Why they get married, right? You may get married, right. So life stages may change. You may have a kid, you want more finances, you want to buy an investment, you want to look for retirement. So first time buyer is definitely a key. Second market will be those mom and dad's that pay off their home loan.
00:52:59:21 - 00:53:17:17
Unknown
What they don't know? Don't know. What do I mean by that? They don't know that I could buy an investment property and create my wealth. Right? They don't know that I can actually leverage or borrow money in my self-managed super, which is a better process to set up, you know, to buy and leverage on their next investment property.
00:53:17:19 - 00:53:46:06
Unknown
So or they don't know they have they've been paying down and true story I had a client and it's GK network yeah the charity that I volunteered they were thinking that they were like not doing so well financially, but they were really disciplined. Right? Every day paying their principal an interest. They pay down the debt. They were like, you know, not buying a car because thinking that, hey, you know, they don't want to like, accumulate that collar.
00:53:46:07 - 00:54:05:19
Unknown
I've got to you guys are doing exceptionally well. Right? You know, you've got so much equity. Have you thought about buying your dream home? Right. Really? Can I do that? Yeah, you could do it. And true story. They build their dream home and they rented one property. They bought some property in their self-managed super fund, so really helped them.
00:54:05:19 - 00:54:25:02
Unknown
And they got Allianz, the best raving fan. Right. Don't talk to anyone. Talk to Alan. Right. Because they really like change and made a difference to their life. Right So that was the second target market. And lastly, the ones that are complex, right? So I feel like not developments, but you know, at that level, like if you were to say, Hey, I want to buy in family trust, right?
00:54:25:02 - 00:54:49:15
Unknown
We talked about family trusts, different structures, right? How to buy commercial, residential, right. I've been there, done that. So therefore I can provide as a mentor that guided service structure. So you might be going, why am I structuring interest only in certain structures? Is principal an interest Well, we're helping you maximize your taxation, right? So remember one of the first financial and legal analysis.
00:54:49:17 - 00:55:09:21
Unknown
So yeah, so it's really accelerating that. So I always say to them, Hey, you've got a Ferrari. And you're right, imagine you're a complex investor, you're just on second gear. But you know, if I was to look at your situation and help you go to the third and fourth gear, right. What would your finances look like? Of course you run a faster Ferrari and please don't drive a Ferrari.
00:55:09:23 - 00:55:39:01
Unknown
You're getting a license to slow down. Okay, cool. All right. Does that answer your question? Yeah. And more questions. yeah. So what other kind of operations strategies or business operations strategies? Are you going to keep me good? Well, tell me, what's the definition? I haven't studied that for 20 years. What's a gotcha it like? To me, this is like a timeline of what?
00:55:39:01 - 00:55:55:17
Unknown
Upper of what to operate on in the business. So let's say you want to grow this house. You have to find that. You have to find like the planning for this that would be at the top of the chart. This it would go for this long in the mine. It'd be the second one would be like, you have to find the tools in this.
00:55:55:17 - 00:56:18:11
Unknown
The second line that we can seize on to pitch the house like a project map and stuff like that. Yeah. So operations. Yes. So in a nutshell, they have different process flows. If it's a first time buyer, investor all the way to the self-managed super fund. Yes, we do. But I think the operations, what we've done really well is I think the culture piece, right?
00:56:18:12 - 00:56:41:17
Unknown
So which in business is very important because even Uncle Tony talks about culture, it's strategy for breakfast, right? It's never any strategy. So when we talk about mindset as an individual, culture is very important when it comes to leading a team. So that's why I was very proud. Like, you know, we had lunch and, you know, so the team members and business partners, they know exactly how we think we're aligned right.
00:56:41:19 - 00:56:57:21
Unknown
And why is it that we align? Because we catch up regularly. So like, you know, we're catching up, you know, once a week. I do spend time with our staff. That's why I really busy. So all the way to the people in the Philippines or our sourcing team, right? I give them that time to voice out. So I'm listening to you, right?
00:56:58:00 - 00:57:30:21
Unknown
I'm listening to everyone's ideas, right? So they're not develop a new version. So not the gain chart specifically, I work a bit more on culture and values and strategy and then the business will flow. Because why? I don't deal with many clients anymore. Fortunate. Unless it's an escalated client, right. You know that yesterday. So then it all forces just I, I'm just elaborating on the ways.
00:57:31:23 - 00:58:04:21
Unknown
So what else do they help with other than getting more, what them and more people with more people come to visit. More challenges man. So like spending enough time, I'm sure like, you know, running a café, different dynamics, right? But I think the key thing in having more people is, yes, there's more workers, but at the same time is, you know, you need to make sure we align in terms of values and adding value, Right?
00:58:04:23 - 00:58:31:08
Unknown
So I don't want to my time's very valuable. So I don't spend time just, hey, we waste time because we way life's too short. I believe that anyway. So everything that I do, I want to have an impact or I want to have that leverage of training like it's what we're doing at the moment. So when it comes to more people, yeah, it's really identifying what well firstly they, they, they're hungry to learn, right when I'm looking for people.
00:58:31:08 - 00:58:49:15
Unknown
So if you're not hungry to learn, you feel your privilege. You expect the ace and stuff. I'm not I'm not going to be teaching you, right, because I want to train leaders that I have that ripple effect. So, you know, hopefully you learn something and then you start sharing with your community, right? it's like that. And first day was amazing, right?
00:58:49:15 - 00:59:06:06
Unknown
I'm saying as you. That's why you're back, right? And you come a long way. I know that. So therefore, there's hopefully some value that I'm bringing. So when you're talking about getting more people, it's not about the number. I think it's the quality of the people, right? So and then are you aligned with what our mission is about?
00:59:06:06 - 00:59:31:21
Unknown
So is energy is about we grow with you, right? So I go to talk about creating wealth requires a group of trusted experts. So are we adding value to our clients? That's the key. Yeah. All right. That's great. We got enough for your piece. Business study assignment. You got more? yeah. I keep asking. I think they're good, right?
00:59:31:23 - 00:59:58:00
Unknown
He's. He's prepared. I didn't even ask you. He's already got these courses ready. All right? Yeah. Yeah. Good. Don't be shy. Yeah. Just how. What's. How can you show the effectiveness of, like, these? Like these, like, what did you say with people, like, adding value? You know how you mix. It's like, you know, how is it.
00:59:58:00 - 01:00:20:15
Unknown
How can you show that? How does it show that you're going? You're really going, okay. Whoa, whoa. You know the answer to it, right? What do we look at? Right. We look at free reports. First one is so well, first report, right? You know, Right. Profit loss. Right. So profit loss. Second is balance sheet and lastly, cash flow statement.
01:00:20:15 - 01:00:42:12
Unknown
Right. So when I look at my profit loss and it's a bit healthier, right? It means like there's more profit, it's a result we're doing something well. Right? So we talked about active and passive income, right? So the amount of money that you're earning active as a broker versus now I'm a bit semi active or semi passive is at the same level if not growing.
01:00:42:12 - 01:01:00:08
Unknown
It just shows that my leadership and the growth is working right. So then what happens is that I'll take that money. Right? And for those business owners out there, you need to take money off the table, right? Unless you reinvest in your business. So you're buying assets that you're buying properties, that you're buying other shares. Are you buying other businesses?
01:01:00:08 - 01:01:25:16
Unknown
Right. So fortunately, in a business because you're doing well, that income minus expenses, if it's a fixed income, unfortunately it's fixed. It's like the 100 minus what your number was, 70 or 80 and then 20,000. But in a business it could be five X that or could be ten. So it's $1,000,000 and then you got 800 expenses you got to pay.
01:01:25:18 - 01:01:45:22
Unknown
Then you got a bigger nest egg to kind of do your percentages, right? So half is 100 K in growth bucket, half is in that security. So business allows you to magnify right a bit faster or better because can you save that? Yes, you can. In a job. Not saying job is good or no good. Is this a choice?
01:01:45:24 - 01:02:09:24
Unknown
It demands more from you, right? In the business, right. Mentally, spiritually, everything. Right. Timelines. So therefore, going back to your question, Right. So how do I know the success I without fail. Right. It's like, for example, if you buy a car, what do you usually buy according to that? Like in addition to the car? Yeah. What would you buy?
01:02:09:24 - 01:02:32:23
Unknown
The next thing you are going to buy a car. So later on. So what should you be buying as well? Right. The first thing that comes into my flow that I know you guys love cars. What's the first thing before hit the road, Right. You need to buy an insurance, right? Right. So, you know, insurance is you need to buy to protect your car, right.
01:02:32:23 - 01:02:53:13
Unknown
Case you smash it. So in here in a business, right. I looked at my financials every month with a bookkeeper because that's my insurance policy. Right. Remember that auto pilot? Am I on track? And I've. I'll try some months. If it's in a financial year, you're spending more, right? We're in this month. You should be buying. If you're making a profit, buy your computers by your laptops.
01:02:53:13 - 01:03:14:16
Unknown
Right. No advice. I'm just saying you can expense it by your equipment, by your lights, by your camera, because you can expense if you're making a profit. Right. Because you're reducing your tax liability. Right. Rather than next year. So therefore, like I meet up with a bookkeeper every month, I we doing well. We have a drink if we're doing well, if we're not doing well, we're reflecting, hey, what can be better?
01:03:14:22 - 01:03:38:05
Unknown
I can guarantee you four years, five years ago was, not at that position before COVID would like, I'm glad. Let's like growing. But growing requires capital, requires effort, requires energy and it wasn't at that level. So therefore, always assess your business is not going to be profitable forever. It may not be like losing forever. You need to adjust.
01:03:38:07 - 01:04:00:22
Unknown
And that's why every month if you do that, it might add a better success than if I was to review my financials less. Ideally, do you think I'm have better success reviewing it monthly or do you think I have better successes reviewing it annually? What do you think? yeah, because you're just watching out what, what's happening. So yeah, in I look at the reports, I know whether I'm growing, I'm not growing.
01:04:00:24 - 01:04:35:08
Unknown
Is that effective? Is that making sense? You have last one right is a personal question. You can ask. You can ask personal questions. Yeah, that's fine. It's okay. I'll answer it. So what I want to elaborate on the royal commission affecting the profit margins you're talking about like the numerator and like, was it good money, like profit?
01:04:35:10 - 01:04:57:04
Unknown
Okay, sure. Royal Commission. So it's a B, so it was a debt to royal commission was to look at the lenders and the banks, but somehow it got deflected. And that's what politics does to mortgage brokers because they think and feel that we earn a bit of money. Right. But there's good mortgage brokers that earn money. There's no like not earned that much.
01:04:57:06 - 01:05:23:08
Unknown
But part of it, how it affected us is because of the trailing commission. Right. So for having a a client that still have a loan, we still get paid a little bit of commission. So therefore, you know, that's the passive component. So they were going to stop that. But then it's no different to sales. And if we did that, the banks would suffer a lot because there's no longer the brokers going to like the saying, Hey, just the interest rate review or to some other matters.
01:05:23:10 - 01:05:41:17
Unknown
You said, All right, so put a lot of pressure on the banking stuff. So the royal commission did stop and didn't remove our trailing commissions. And but there's other things that I put in that jeopardized their business. But one thing in business I need to let everyone know is that government policies, things may change and they may not be forever.
01:05:41:19 - 01:06:08:03
Unknown
So you need to constantly look at, hey, what are the changes? Right? What business are you in? Your business? Are you really in what business should you be in? Right. So you need to assess all the time. Yeah. So just remember that. Let's see, what are some examples of government influences? Government influences. So if it's a Liberal Party versus a Labor Party, they may give different policies to affect your business.
01:06:08:05 - 01:06:33:03
Unknown
So therefore I think if it's like for mortgages, like if the bank decides to change something, it can impact us a lot. So for example, one lender would go in specific, launch their online lender, and it's really competitive each into some interest rate. But I said, look, clients can go there if it's one. I'm not looking for those sort of cartel because if you are driven on price, they will always lose, right?
01:06:33:03 - 01:07:02:12
Unknown
So therefore, for us, it's not on that price, it's about work creation. So I'm deflecting from that focus, even though there's banks trying to kill our industry, it's natural, it's competition, right? Because they don't want you to make as much money. That's the reason. Okay. Wow. You're very prepared. I like it. Even though I didn't ask you for anything.
01:07:02:12 - 01:07:28:18
Unknown
Yeah, cool. But you talk about how in your legal structure, you have, like, like 5% goes to a family trust of your, like, your shares in the company. Yeah. Like you like real family trusts. What? What? What? Specifically in the family trust? Is it more What is it exactly? family trust. good for the two girls.
01:07:28:20 - 01:07:51:16
Unknown
So Family trust is a structure that allows you to distribute income, right? Legally, Yeah. So? Well, firstly, you need to make money for you to distribute, because if it's not making money, what is it to distribute? Nothing. Right. So family trusts can hold. So we do remember the structure, family trust. There's like there's a trustee. So someone that controls the trusts.
01:07:51:18 - 01:08:15:02
Unknown
Do you remember what the two types? One is a corporate which a company or individual usually is company because yeah, they can. It's different flexibility with having a company, right? So therefore if that would happen, if I did, then my wife would take over or if something happened to her, then we can assign the directorship to one of the two girls right to run it and control it.
01:08:15:02 - 01:08:41:07
Unknown
That's us getting very animated that you need to know your percentages and know how to control because it's a Ferrari, right? Yeah. Otherwise, if you can't drive the Ferrari, I'm going to donate it away. Right. So therefore you need to know certain levers and all that stuff. And if it's got properties and shares and businesses, they'll have an income and this income needs to be distributed and you can distribute it to certain people.
01:08:41:07 - 01:09:03:15
Unknown
I'm not sure your structure, but for example, if the two girls are 18, I can legally distribute with the actual funds transferred to them like a distribution. So family trusts, right? So we're building these assets under my name. You can sue me, but you can't find anything because I don't have anything in my name. But I do have a directorship so I can control the family trusts.
01:09:03:17 - 01:09:23:14
Unknown
And it's the company that owns that. And they can invest in shares in different vehicles. So that's probably the next chapter because we talked about the simple stuff and then what's the right structure to it in to be more tax effective. But firstly, focus on baby steps. Let's make money first, right? Because we're not making money. Doesn't matter what to trust because sometimes they can't come to me.
01:09:23:16 - 01:09:51:10
Unknown
Hey, I should. Your body's in a family trust. Are you making money? Are you like, you know, like, what's your is your property positively or negatively geared? Right? So And then the ownership from the trusts into the in whether it's energy or another company, it just means that dividends like no different to shares that you're buying like there's a profit gets just channeled into the like you know like a bucket right So and then distribute for taxation makes sense.
